Charlesnerd:

Well,ECB cut interest rates and announced a stimulus plan,but not QE in the strict sense of the word.

Just culled below from telegraph.

"Draghi announces programme to buy asset-backed securities (ABS) and covered bonds in Oct, but stays away from conventional QE"

Oga, this is Quantitative Easing. 99% purity.

Agbalowomeri:

Bear no fit near elastic stocks na. So u better buy the ones wey u wan buy. Otherwise while waiting na so boom............... bull don enter. I hope una see QE don commence for EU?

True sir.

But it's unlikely it'll spur significant inflows to sub-saharan markets generally due to the improving economic conditions in the US and the UK. Speculative capital will more likely be deployed in these improving developed markets than shaky African markets going through a thousand and one transitions.

^^^^^ Maybe....but I think it is about buying private assets first, which is not really QE, when you buy traditional assets, particularly short and long term bonds, that is conventional QE.

ECB is still trying to adopt conventional monetary policies at the moment.

Anyway, all join, it will have a very big impact on emerging markets, the fact is this, one or two rounds of QE wont help, check out US, they did it twice before there was improvement in their economy, that was responsible for the major bullish trends in emerging economies in 2012 and 2013.

Make we dey watch.

Dexterax:

Oga, this is Quantitative Easing. 99% purity.

I dont think QE has taken on a new meaning or definition.

Dexterax:
True sir.
But it's unlikely it'll spur significant inflows to sub-saharan markets generally due to the improving economic conditions in the US and the UK. Speculative capital will more likely be deployed in these improving developed markets than shaky African markets going through a thousand and one transitions.

You need to consider the fact that you will get lower returns in the US, the fact is this HFs, PEs and AM firms will fly to Africa to make good money, more risk, more return.

These guys don't care about the risk, check out distressed debt investing and others, case of NML (Elloit Capital), Aurelius Capital Management and others vs Argentina comes to mind.

Yem0350: The way skyebank is going, it is likely going 2 reach #2.00. Make I stop mopping up for now till that time.

I don´t see it dropping less than N2.60. I go mop my last batch at this price.

nitrogen:

You need to consider the fact that you will get lower returns in the US, the fact is this HFs, PEs and AM firms will fly to Africa to make good money, more risk, more return.

In spite of the new 2000 point high of the S&P 500?

I guess you're referring to fixed income my oga. There's no doubt that the interest rate differentials favour African markets and Nigeria in particular. But as our country continues to earn most of her debt-service revenue from crude oil sales where commodity prices are printing downwards in the near term, an international investor would even worry about our country's solvency abilities.

Growth has really slowed in Europe.America is estimated to grow at about 4.2% in 2014 while Nigeria's projection stands at 6.2% -6.77%.

It makes more sense to invest interest free "hot money" in Nigeria or rapidly growing economies, than elsewhere.

nitrogen: These guys don't care about the risk, check out distressed debt investing and others, case of NML (Elloit Capital), Aurelius Capital Management and others vs Argentina comes to mind.

The international speculators are currently biting their fingers from a trustee-issuer case involving sovereign debts that were supposed to be redeemed even during Argentina's default in 2001. George Soros, my oga, is even caught in the mix.

Charlesnerd: Growth has really slowed in Europe.America is estimated to grow at about 4.2% in 2014 while Nigeria's projection stands at 6.2% -6.77%.

It makes more sense to invest interest free "hot money" in Nigeria or rapidly growing economies, than elsewhere.

My oga, I think you underestimate the risks to our dear economy, which I'd assume the foreign investors won't overlook.

A major one is exchange rate risk. On the upside, exchange rate risks contributed substantially to Nestlé Nigeria's reported earnings for FY 2012. Imagine what's possible on the downside.

The growth rate of a country (which, for starters, is a complex population statistically) is too simplistic a metric to be used to determine whether money should go there or not really. A lot of investors are still reeling from their Chinese adventures...

Dexterax:

In spite of the new 2000 point high of the S&P 500?

I guess you're referring to fixed income my oga. There's no doubt that the interest rate differentials favour African markets and Nigeria in particular. But as our country continues to earn most of her debt-service revenue from crude oil sales where commodity prices are printing downwards in the near term, an international investor would even worry about our country's solvency abilities.

Oga mi, true, it will, but Africa should enjoy the effect of ECB rate cut the most, statistics will enhance this, do you think they will worry about our country's solvency abilities? no sir, we are healthy, maybe that of Ghana. Most of our banks are trading on the NSE at a discount to their counterparts abroad, there are opportunities in Nigeria, reforms are there to lift the NSE, they will attract investors, Qatar National Bank just bought a certain percentage of ETI's shares, watch out for the best. Just got informed that some other offshore investors will follow suit.

Though, election is on the way, but that shouldn't affect inflows, at worse, the inflows will go to South Africa, Kenya and others, but a spiral effect is expected.

Since the last financial crisis, the number of African-focused funds (many domiciled in Africa too), PE and the like, have increased geometrically. This will be the major source of inflows I guess.

Dexterax:

My oga, I think you underestimate the risks to our dear economy, which I'd assume the foreign investors won't overlook.

A major one is exchange rate risk. On the upside, exchange rate risks contributed substantially to Nestlé Nigeria's reported earnings for FY 2012. Imagine what's possible on the downside.

The growth rate of a country (which, for starters, is a complex population statistically) is too simplistic a metric to be used to determine whether money should go there or not really. A lot of investors are still reeling from their Chinese adventures...

Strike that off. exchange rate fluctuations have been managed well. Nothing to be worried about.

Baba, hotel rates in Nigeria are high, why are intercontinental hotels and others in Naija, they will charge us well, though costly to operate, but they will make money, infrastructures are seriously needed in Naija, these guys are coming, from Asia, America, even Europe, they want to feel us, US neglected Africa before, but when they discovered that they were lacking behind, they developed plans to invest in Power and infrastructures in Naija, transcorp wants to list its hotel business on the NSE, after Tony will ensure that their power business is listed, other firms will be listed, ETFs will increase, stanbic just started one, more REITS on the exchange, all these will take place in the next two years......... forget bros, Africa is the next place to invest your cash.

I talked about Fidson two days ago, now fidson is doing 3.64, me sef missed the party o. I can still enter sha!

Dexterax:

My oga, I think you underestimate the risks to our dear economy, which I'd assume the foreign investors won't overlook.

A major one is exchange rate risk. On the upside, exchange rate risks contributed substantially to Nestlé Nigeria's reported earnings for FY 2012. Imagine what's possible on the downside.

The growth rate of a country (which, for starters, is a complex population statistically) is too simplistic a metric to be used to determine whether money should go there or not really. A lot of investors are still reeling from their Chinese adventures...

Dexter I quite agree with you that investing in emerging economies comes with attendant risks of which exchange volatility and currency devaluation tops the list - South Africa,Argentina ,India and even next door neighbor,Ghana comes to mind.

Of course investors do their DD as we always say here. But in my lay opinion, based on current economic realities, investing in Nigeria is not in any way riskier than any of the above emerging economies listed - Foreign reserves is still sufficient, Oil exports has improved steadily in the last quarter and the CBN has allayed fears of currency devaluation in the near term. All these factors,added to growth rate (even though simplistic,which I agree to) should be sufficient to convince any hesitant investor that investing in Nigeria is a risk worth taking.

We don't need Draghi to tell us he just started a QE before we know it.

Plus the submission that Africa is going to benefit is academic and lacks practical substance. The stoppage of QE, not the beginning of it, is what causes panic in frontier and emerging markets.

The events that activated the risk on mode in global equities market in 2012 are; the announcement of QE infinity by the Fed in September 2012, Mario Draghi's 'the ECB will do whatever it takes' comment in July 2012, and the victory of Abe, a pro QE leader in the Japnese election of Dec 2012. Confidence returned to the major economies and hence, the world.

The benefit to us for now is that the Euro zone will not cause any panic in the global equities market that will spiral in to another crash. Think confidence in the market.

mercylicious: May d miracle of premier breweries share price happen to ftncocoa and iaa.

It seems na only ftncocoa waka come today

Portable123: Good morning everyone,please I need help from anyone who can.i just want to find out which year did nigerian government start to issuing birth certificates in nigeria.


Thanks

1991

passwelle:
It seems na only ftncocoa waka come today

With over 15 million on bid at 0.52, this might be the beginning of good .....

feelamong:

so what does this imply?

meanwhile did anyone see that advert on news pares on FTN Cocoa shares being bought by an American company so for 75kobo?

These American Monkey Hunters are really enjoying themselves now...

bnsitl. why is NSE ASI higher than FTSE, DOW JONES, S&P 500 etc. ours is 41000+ why most of these foreign markets are less than 10000

feelamong:

These American Monkey Hunters are really enjoying themselves now...

guy, an truth in d american news?
source?
i have over a million units here. .75k wont be bad
.
Please tell me wat u know here.

omaojo1: We don't need Draghi to tell us he just started a QE before we know it.

Plus the submission that Africa is going to benefit is academic and lacks practical substance. The stoppage of QE, not the beginning of it, is what causes panic in frontier and emerging markets.

The events that activated the risk on mode in global equities market in 2012 are; the announcement of QE infinity by the Fed in September 2012, Mario Draghi's 'the ECB will do whatever it takes' comment in July 2012, and the victory of Abe, a pro QE leader in the Japnese election of Dec 2012. Confidence returned to the major economies and hence, the world.

The benefit to us for now is that the Euro zone will not cause any panic in the global equities market that will spiral in to another crash. Think confidence in the market.

I have 'liked' your comment my oga, not because it stresses my opinions but because every time we think the future of the financial markets has become clear, linear and completely figured out, reality upsets our expectations, providing contrarians opportunities for unusual profits.

bigass: bnsitl. why is NSE ASI higher than FTSE, DOW JONES, S&P 500 etc. ours is 41000+ why most of these foreign markets are less than 10000

It depends on the denominator (base figure) being used. The ASI uses 100 as its base and the ref year is 1989.

mercylicious:

guy, an truth in d american news?
source?
i have over a million units here. .75k wont be bad
.
Please tell me wat u know here.

Yes, they are buying 40% of the coy.

mercylicious:

guy, an truth in d american news?
source?
i have over a million units here. .75k wont be bad
.
Please tell me wat u know here.

I googled it when he posted it. It is a long story but something is brewing. Got nothing on the price tag quoted though. Partnership ish. I want out jare.
But Mercilicious, you try for this bus o. You wey sabi JIJO wella,you for don use the money do something else na.....sorry I forgot nobody wan buy my tasere units sef.

mercylicious:

guy, an truth in d american news?
source?
i have over a million units here. .75k wont be bad
.
Please tell me wat u know here.

yes very True!!! its on the pages of some newspapers..

kotlass:

I googled it when he posted it. It is a long story but something is brewing. Got nothing on the price tag quoted though. Partnership ish. I want out jare.
But Mercilicious, you try for this bus o. You wey sabi JIJO wella,you for don use the money do something else na.....sorry I forgot nobody wan buy my tasere units sef.

Very soon some Chinese will come Monkey Hunting on Multiverse...

feelamong:

Very soon some Chinese will come Monkey Hunting on Multiverse...

[size=14pt]AMEN OOO!!!!![/size]
I get more than a Million units here oooo

Dexterax:

I have 'liked' your comment my oga, not because it stresses my opinions but because every time we think the future of the financial markets has become clear, linear and completely figured out, reality upsets our expectations, providing contrarians opportunities for unusual profits.

Thanks boss D.

Yes, reality will sure do its own. That is why it s always said that the market has a mind of its own.

After checking with friends that have the relevant info, I make a decision on the line of argument to follow.

I fit explain later...