New Petrol Price: A Shift From Subsidy To Profit Making

WITH the newly adopted modulation model for the pricing of petroleum products nationwide, government has ‘stylishly’ deregulated the downstream sector.

In the new pricing model, Premium Motor Spirit (PMS), otherwise known as petrol, is sold at N86.50, kerosene at N83 and diesel at 74.99 per litre at filling stations.

From all indications, government is believed to be making a profit of N3.83 per litre of PMS, but the Petroleum Products Pricing Regulatory Agency (PPPRA) regard what is perceived as profit as ‘over-recovery.’

Over the years, government has been selling the idea of fuel subsidy removal to Nigerians, communicating how immensely beneficial the measure would be for everyone.

It argued that savings from not paying subsidy could be channeled to the provision and improvement of infrastructure such as roads, schools and hospitals, among others.

In the last few years, subsidy debate has polarised the country. Envisioned as a people-oriented policy to help reduce the price of fuel for Nigerians, it has become a cash cow for the cabal involved in PMS importation.

Watchers of events in the petroleum sector believe that with the plummeting price of crude globally, the commodity ought to have gone below the recent pump price released by the price regulatory body, the PPPRA.

They said from the new pricing template, government has gone into the petroleum business with the sole aim of profit making. And instead of paying subsidy on the commodity, it is angling to make marginal profit, as the Estimated Open Market Price (EOMP) for the commodity is lower than the pump price.

This is even more worrisome, when the price template is compared to prices in fellow oil-producing countries. Nigeria is the biggest producer of oil in Africa, yet it was gathered that the same fuel that sells for N86.50 per litre (without payment of subsidy) in Nigeria goes for between N4 and N5 in Venezuela and N22 in Libya.

According to the template, government would be making about N3.83 profit on every one litre of the product. The PPPRA template states that that the EOMP of petrol is N82.67 with a retail price of N86.50 at filling stations nationwide.

The EOMP is the total landing cost of PMS and sub-total margins, including transporter’s cost, dealer charges, bridging fund, administrative charges and a handful of other variables to make it the true cost of the product.

By the end of 2014, the official pricing template for petrol by PPPRA indicated that government was paying N6.45 per litre as subsidy, as the EOMP then was N94.45, which was N6.45 higher than the pump price of N87 per litre.

The difference between the EOMP and the retail price was what the government was paying as subsidy. This difference has now been removed with the new template, and government is now set to make profit instead of using public resources to pay for what has not been beneficial to majority of Nigerians.

Speaking on the development, Senator Lee Maeba said the Minister of Petroleum is still shy to announce a complete deregulation of petroleum products. The Senator, who represented Rivers South East in the Senate and initiated the Petroleum Industry Bill (PIB), told The Guardian that the type of modular prices system the Minister introduced cannot guarantee adequate pricing system of petroleum products.

Said he: “the Federal Government is shy to announce full deregulation and without deregulation, the price is still what the minister feels. He fixes it, and you cannot get adequate pricing system without full deregulation. When you deregulate, everybody would sell how he/she produces. In fact, there would be so many refineries producing. But the situation now is that we are still in price fixing.

“Whether you remove subsidy or not, as long as you are doing price fixing, you are regulating. So, the government should not shy away from deregulation. Yes, I agree that the first set of product that comes out is diesel, while the second set is kerosene, petrol and the last is jet fuel, and it goes down. So, these products are cheaper from concentration. So, as long as the price fixing is still going on, and as long as you have PPPRA, they will continue to fix price. When you deregulate, you disband all these institutions, so the market forces now control prices. Until market forces control pricing, you cannot have adequate price.”

However, the organised labour believes that government is moving from petroleum subsidy to that of petroleum tax collection. The General Secretary of Nigeria Labour Congress, Dr. Peter Ozo-Eson, said the new pricing regime is fraught with ulterior motives.

Ozo-Eson told The Guardian that the process of arriving at the new template should have been transparently executed, with the consultation of the PPPRA board empowered by the laws of the land to fix price of petroleum products.

“We need to have a transparent re-working of the template. The PPPRA, by law, is saddled with that responsibility, but it also by law constituted in a stakeholders’ context, which stipulates that engagement takes place before a change in template is effected,” he said.

“PPPRA Executive Secretary, who is appointed by government and is directed either by the Minister or the President, cannot, on his own, fix the template. This is because the stakeholders have not met or reconvened for a long time. Therefore, there is a violation of the law by government. We need to be careful as a mono-economy country.

“The N3.83 government is making now would not make sense, unless the price remains excessively depressed over a long period of time. This cannot be the basis of building up the kind of fund that is needed. Though a modulation scheme in itself can have economic logic, the way we have it now is not sustainable, if prices were to go up,” he added.

The Chairman of Trade Union Congress in Rivers State, Chika Onuegbu, described the price of diesel as very exorbitant. He argued that government is making money from the diesel, because, “there is no how petrol will sell at N86.50 per litre without subsidy, and diesel will sell for N125 or N130, also without subsidy, which is a difference of about N40 per litre.

He said, “obviously, government has not reviewed the PPPRA template for diesel and AGO and that shows that a lot of money is being made from people. Government needs to review the template and bring it down. What is more painful is that these products are actually what most businesses use, as a result of poor power supply in the country. Companies use diesel to power their generators and that increases the cost of doing business in Nigeria. From hotels to hospitals, banks and telecom operators use diesel and that increases the cost they charge.”

Onuegbu asked, “How could government reduce the price of PMS this time, and did not do anything to the price of diesel? Government should reduce price of diesel to around N80 per litre, because without subsidy, it should not be more than N80 given the current price of crude oil.”

According to the labour leader, government should prove that it is concerned about people’s welfare and generating employment.

On his part, the Rivers State Chairman of Independent Petroleum Marketers Association of Nigeria (IPMAN), Sunny Nkpe, said the answer to the whole issue is deregulation following the dwindling of foreign exchange.

“We have all seen that government can no longer sustain this thing anymore. The main thing is deregulation. Price of diesel was deregulated long time ago. NNPC sells at N90 per litre, while pump price of diesel fluctuates between N120 to 130. What determines the prices is the loading from government depot. If you load from government depot at less than N75 and the man that buys from private depot for N95, they cannot sell at the same price. So, deregulation is the solution to encourage competition and level playing ground for everybody.”

The President, Association of Petroleum Explorers, Mr. Afe Mayowa, said government was collecting a form of tax from petroleum consumers. He agreed that government, through the differences in the landing cost and pump price, is collecting petroleum tax from consumers, but advised that the profit be ploughed back into the society for the benefit of Nigerians.

“Government is collecting tax with the price differential. But my advice is that the proceed should be invested in infrastructure such as roads, hospitals and schools for the education of the people, especially those in the North and Niger Delta, where illiteracy is prevalent. With education, there will be peace and security because people will not be deceived to imbibe false doctrine.

“The landing cost for PMS is supposed to be lower than the pump price, because government is now in business. The government has to make profit from what it is doing. The subsidy was a fraud, which has no justification. They should now allow market forces to determine the pump price of petroleum products. There is no way you can subsidise consumption, because that subsidy has no way of getting to the generality of the people. In my opinion, the difference is not too much. People paid as much as N150 per litre in Akure during the Christmas season,” he said.

He added, “We should invest in the youth, create opportunity for the people to be educated and exposed. It is a lot of money the government is going to make. So, they should put the money to fix power infrastructure. The money is being taken from us and should be spent on the people. It is a tax being collected from the people. They should, therefore, not share it. I don’t blame the people for not willing to pay such tax, because government had in the past disappointed them, such that the fund ended up in private pockets.”

Commenting on the disparity in the prices of PMS, diesel and kerosene, he said the forces of demand determine their prices, supply and preferences, which have to do with the population, technology, economics and usage.

In his view, the demand for kerosene and diesel is very low, so is the supply, hence the rise in price.

Commenting on the price enforcement for the product by the government, Mayowa said the regulation is necessary for marketers not to become “shylock.”

“In a market like this, you need some form of regulation (Cap) to prevent emergence of shylocks in the downstream sector. It is like what Lagos is doing to housing. Government says you cannot charge beyond certain limit. In this case, the government says you cannot sell PMS beyond N86.50, but you can sell below the price. If there is no such control, marketers will team up to fix pump price arbitrarily,” he said.

The Assistant General Manager, operations at the PPPRA, Victor Shidok, said the agency has created a template that is normal and would prevent frequent changes of pump price.

He said government is yet to make official pronouncement on subsidy, hence it would be incorrect to say it has discontinued subsidy payment or petroleum products.

He said, “The government has not made public pronouncement on petroleum subsidy. It has not said it has stopped. Under Petroleum Support Fund (PSF) guidelines, there is what we call under and over recovery scheme. None of them is a permanent state.

Source:Guardian Newspaper.

Nigeria seeks buyers for 15 oil cargoes

As the country is preparing to load about 62 crude oil cargoes for March 2016 delivery, over 15 cargoes of February-loading are still looking for buyers, according to trade sources.

Qua Iboe crude was offered by Exxon at a premium to dated Brent of $1.50 a barrel, steady to higher than offers heard on Tuesday. The value was pegged closer to dated plus 80 cents.

Loading delays continued on a number of Nigerian crude grades including Bonny Light, Qua Iboe, Brass River and Forcados, say traders.

Nigeria’s March exports, already at 62 cargoes, were on track to show an increase from February before the release of several loading programmes.

Data from the Organisation of Petroleum Exporting Countries (OPEC) showed that despite tenders from Asian buyers, such as India, having helped clear more than 20 million barrels of West African (WAF) crude oil in early December and open arbitrage to the US, WAF crude differentials remained near multi-year lows amid a glut of unsold cargoes with the number expected to rise further.

According to OPEC, the values of the Brent- related West and Northern African light sweet Basket components – Saharan Blend, Es Sider, Girassol and Nigeria’s Bonny Light, decreased by $6.59, or 14.8 per cent, to $37.95 per barrel in December.

Traders, who spoke with Reuters said” “Offers are higher, but I’m not sure how much is going through at these levels,” a trader said, referring to the Nigerian crude market.

Shell reopened the Trans Niger Pipeline “in recent days”, according to a spokeswoman. The pipeline had been closed since late November, creating loading delays for Bonny Light crude of up to 10 days, which made traders more wary of purchasing it.

Loading delays continued on Bonny Light, Qua Iboe, Brass River and Forcados crude, which traders said were limiting upward movement in their differentials to dated Brent.

Light grades such as Akpo, Agbami and Amenam were trading more quickly due to firm margins for light ends.

Angola’s March exports were selling faster than expected, traders said, with just over half the programme already matched with buyers.

High freight rates, dampened interest in distillate-rich crudes and fierce competition for Asian buyers had stymied Angolan oil during the February programme.

But with freight rates easing and several refiners and traders eager to move Angolan oil into the United States, March cargoes have sold quickly, and at higher premiums to dated Brent.

“Angola is clearing quite well,” one trader said, noting the improved arbitrage movements both east and west.

Traders have said roughly 14 February-loading cargoes from Nigeria and Angola were booked into the United States, where sellers of a variety of Atlantic Basin crudes were keen to get a foothold now that the U.S. export ban has been lifted.

The United States is drawing about 500,000 barrels per day of imports from producers such as Norway and Nigeria in a rapid revival of flows that had dwindled to nearly nothing in 2014 to 15 after the U.S. shale oil revolution.

Source: Guardian Newspaper.

Oil steadies above $33 on chance of production cut

Oil steadied above $33 per barrel on Thursday, well off a 12-year low set earlier in the month, supported by the possibility that major producers may cooperate to cut production.

Russian officials have decided they should talk to Saudi Arabia and other OPEC countries about output curbs to bolster oil prices, the head of Russia's pipeline monopoly said.

Members of the Organization of the Petroleum Exporting Countries such as Nigeria and Venezuela have called for cuts to bolster the oil price, which has halved since last May.

Until this week, however, there were few signs that the biggest producers were ready to make such a move.

"The fact that the bigger oil producers are talking in these terms is limiting the downside," Michael Hewson, chief market analyst at CMC Markets, said.

Brent crude was 18 cents higher at $33.28 a barrel by 0856 GMT, after ending up 4.1 percent in the previous session.

It was around $6 higher than the 12-year low set earlier in January, but still down around 11 percent so far this month.

U.S. crude rose 4 cents to $32.34 a barrel. It settled the previous session up 85 cents, a 2.7 percent gain.

Saudi Arabia's deputy minister for company affairs at the Ministry of Petroleum and Mineral Resources said on Thursday in Tokyo that OPEC estimates global oversupply to be around 2 million barrels per day (bpd).

"So it will take some time for the market to rebalance," said Aabed A. Al-Saadoun. But he added: "We feel that the market will begin to come into balance in 2016 and that demand for energy in all forms will continue to increase".

The Energy Information Administration said on Wednesday that U.S. crude inventories climbed by 8.4 million barrels last week, higher than analyst expectations for a rise of 3.3 million barrels.

That brought crude inventories to the highest level since the EIA began tracking the data.

However, investors overlooked this seemingly bearish data and focused on crude stocks at the Cushing, Oklahoma delivery hub, which fell by 771,000 barrels. [EIA/S]

"The fact the oil price didn't fall after the inventory build suggests that the risk now is to the upside and I see oil forming a short-term base around $35 to $38 per barrel," Hewson at CMC said.

Source: www.reuters.com

Wall Street sinks after Fed fails to impress

Wall Street dropped sharply on Wednesday after the U.S. Federal Reserve frustrated stock investors hoping for a strong sign it might scale back future interest rate hikes because of recent financial and economic turmoil.

In a widely expected decision, the Fed kept interest rates unchanged and it said it was "closely monitoring" global economic and financial developments, but it maintained an otherwise upbeat view of the U.S. economy.

With plummeting oil prices and fears of slower economic growth in China sending the S&P 500 down 8 percent in 2016, investors saw the Fed's conciliatory comments as a step in the right direction.But some on Wall Street had hoped an even stronger indication that policymakers might scale back the pace of future interest rate hikes.

"It sounds like they are unimpressed with what has happened in the markets, that it has been insufficient to change their plans. That's the takeaway and it's why the market is going down," said Stephen Massocca, Chief Investment Officer of Wedbush Equity Management LLC in San Francisco.

That was enough to reverse earlier gains driven by a jump in crude prices after Russia said it was discussing the possibility of cooperation with OPEC and U.S. data showed an increase in short-term demand.With fourth-quarter corporate reports pouring in, earnings of S&P 500 companies on average are expected to drop 4.9 percent, according to Thomson Reuters data. Excluding energy, earnings are expected to grow 1.3 percent.

The Dow Jones industrial average ended down 1.38 percent at 15,944.32 points while the S&P 500 lost 20.68 1.09 percent to 1,882.95. The Nasdaq Composite dropped 2.18 percent to 4,468.17.

Eight of the 10 major S&P sectors fell, led by the tech sector's 2.46-percent descent.

Apple's shares fell 6.57 percent after the iPhone maker reported its slowest-ever rise in shipments on Tuesday, while Boeing lost 8.9 percent, its biggest fall since August 2011.

Textron slid 13.36 percent while Tupperware sank 14.8 percent. Both companies' revenue missed estimates.

A weaker-than-expected 2016 forecast helped push VMware shares down 9.82 percent.

Among the few gainers, Biogen rose 5.15 percent after its profit and revenue beat expectations.

After the bell, Facebook posted fourth-quarter revenue above expectations and its stock rose 4.7 percent.

Declining issues outnumbered advancing ones on the NYSE by 1,900 to 1,145. On the Nasdaq, 1,943 issues fell and 816 rose.

The S&P 500 index showed three new 52-week high and seven new lows, while the Nasdaq recorded 10 new highs and 89 lows.

About 8.8 billion shares changed hands on U.S. exchanges, below the 8.5 billion daily average for the past 20 trading days, according to Thomson Reuters data.

Source: www.reuters.com

Asian stocks struggle as oil falters, China weakens

Asian stocks held near the day's lows on Wednesday as a relapse in oil prices and fresh drops in Chinese stocks made sentiment even more fragile before a U.S. Federal Reserve policy statement due later.

European shares are expected to have a mixed start. Spreadbetters are expecting Britain's FTSE and France's CAC 40 to to open flat to slightly higher and Germany's DAX to open broadly unchanged.

Technology giant Apple Inc's forecast of its first revenue drop in 13 years signalled a risk of diminishing corporate profitability and more downgrades.

MSCI's broadest index of Asia-Pacific shares outside Japan was near the day's lows with meagre gains of 0.2 percent. Australian shares dropped 1.2 percent.

With Chinese stocks falling more than 3 percent after a 6.4 percent tumble in the previous session, Asia failed to draw much support from an overnight bounce on Wall Street led by upbeat earnings results and a bounce in crude oil. U.S. stock futures were pointing to a weaker start.

"There are concerns Apple is reaching the limits of iPhone growth and China won’t make up for a slowdown in the rest of the world," Mark Matthews, head of Asia research and a managing director at Bank Julius Baer & Co. in Singapore wrote in a note.

"Having said that, U.S. stocks are still expensive on the whole. But there are really interesting opportunities elsewhere, in select bombed-out bonds and currencies."

Benchmark indexes fell sharply on Wednesday taking losses over two sessions to nearly 10 percent with both the mainland and the Hong Kong stock markets worst performers globally.

Valuations had taken quite a beating. The benchmark Hong Kong stock market index was trading at a price to earnings multiple of 7.4 times, a post 2008 crisis low while the China enterprises index was being quoted at a multiple of less than 6 times, its cheapest since December 2001.

"The Hang Seng China Enterprises index is currently priced for a credit event which we think is slightly extreme," said Michelle Leung, CEO of Xingtai Capital Management, a hedge fund focused on Chinese consumer stocks.

"If we see broad macro data stabilizing in the coming weeks, we should be able to break out of this spiral lower."

Risk appetite was also subdued as crude oil prices resumed falling and ahead of the closely-watched Fed policy meeting outcome later in the day. Correlations between oil and U.S. stocks have risen sharply to 0.9 percent.

"With only a short statement, we expect the Fed to repeat that normalization will proceed as data allows in 2016, though markets will be watching for any shift to a more dovish stance," wrote Sean Callow, senior currency strategist at Westpac in Sydney.

Widening credit spreads suggested growing concerns about slowing growth.

Prospects of the two-day Fed meeting concluding with a dovish statement nudged U.S. Treasury yields down. The benchmark 10-year Treasury note yield dipped about 2 basis points overnight. Futures were implying roughly one more rate hike this year, lesser than the Fed's own projections.

U.S. crude surged 3.7 percent on Tuesday after OPEC renewed calls for rival producers to cut supply alongside its members.

But the bounce proved fleeting for the volatile commodity, which struck 13-year lows this month as a global economic slowdown, led by China, is expected to curb demand. U.S. crude was last down 1 percent at $31.13 a barrel.

Signs of more pain was evident in the credit markets.

Widening credit spreads suggested growing concerns about slowing growth.

Spreads on Asian non-investment grade debt pushed higher in recent days relative to investment grade paper.

Moodys's Investors Service, a ratings agency, said last week the negative pressure on Asian high-yield ratings was increasing this year thanks to limited financial flexibility.

The drop in commodities and the ongoing weakness in stocks burnished gold's appeal with the metal trading at a 12-week high.

In currencies, the dollar held on to gains made against the safe-haven yen following the ebb in risk aversion during the U.S. trading session. The greenback stood a shade higher at 118.26 yen after bouncing overnight from 117.65.

The euro was nearly flat at $1.0862. The Australian dollar dipped 0.1 percent to $0.7031.

Source: www.reuters.com

Unilever to explore local sourcing, backward integration in Nigeria

In a bid to increase its investment portfolio in the country, Unilever Nigeria Plc has unveiled plans to set up new plants in the country while exploring options of local sourcing of raw materials as well as backwardly integrate on products being imported.

According to the firm, the plans to backwardly integrate would drive complete local sourcing of its production materials while enhancing local manufacturing.

In separate meetings with the Senate President, Dr. Bukola Saraki and the Minister of Industry, Trade and Investment and the Minister for State for Trade and Investment, Prof. Okey Enelamah and Mrs. Aisha Abubakar, the President, Africa-Unilever, Bruno Witvoet unveiled the firm’s plans to further increase its investment in the country.

“We are pleased and very confident to state that we are a Nigerian company and we are here to stay. We have been in the country for 92 years and will be here for another 92 years and more. Our plans for increased investment will also bring about employment opportunities in the country as workers will be recruited for the new production line, and in the farms for the production and sourcing of local raw materials”, Witvoet stated.Speaking on the initiative from Unilever, Saraki assured that the present administration is serious about its policy on diversification of the economy, while the National Assembly is also reviewing some extant laws to make the country a business-friendly destination.

The local sourcing of the raw materials he stated will help provide a ready market for some of the products produced by local farmers and thus provide them with the needed encouragement and empowerment.

Saraki noted that the National Assembly is resolved to give its support to ensure that policies are made consistent and also to provide all the incentives that are required to ensure that business and investors are encouraged to make the kind of investments promised by Unilever.

“What we are trying to do as much as possible is to see how we can diversify and increase the supply side for import substitution and the demand is huge. One of the concerns being raised is whether these policies are going to be consistent. And I say, yes, It will”, he noted.

Corroborating the words of the Senate President, the Minister for Industry, Trade and Investment, Enelamah stated that the current administration prides itself high on integrity, good governance, provision of a secured environment, economic progress and commitment to sound policies and is ready to provide a fertile environment for investors to do legitimate business in the country.

Source: Guardian Newspaper.

Apple iPhone sales flatline as growth falls well short of expectations

Apple’s iPhone sales are flatlining, the tech company said on Tuesday, as it announced a sharp slowdown in sales growth for its top-selling mobile device.

The company sold 74.8m of its flagship devices in the final three months of 2015, below analysts’ expectations. In the same period in 2014 the company sold 74.46m iPhones, meaning sales were essentially flat.

Sales of the iPhone account for about two-thirds of Apple’s revenues, which worries some investors. “Apple is a one-product company,” declared Berenberg’s Adnaand Ahmad last year, when the German bank downgraded the company’s stock to “sell”.

The Cupertino-based company posted record quarterly revenues of $75.9bn and record quarterly profits of $18.4bn but warned the revenues would fall this quarter.

As well as slowing iPhone sales Apple reported it sold far fewer iPads in the last three months of 2015, 16.1m, down from 21.4m tablets in the same quarter last year. Mac sales, too, were off, though less drastically: the company sold 4% fewer, for a total of 5.3m.

Revenues at its “other products” category, which includes Apple Watch, grew sharply to $4.4bn, up from $2.6bn in the third quarter of 2015 (when the company first reported Watch sales). Other products in the category include Beats accessories, Apple Pay and Apple TV.

The slowdown in mobile sales is not confined to Apple. Worldwide smartphone growth has declined to its lowest rate since 2013, according to research firmGartner, but signs that consumers may be tiring of new iterations of iPhones could have a profound impact on Apple and the wider US stock market.

Since Apple entered the smartphone market in the third quarter of 2007, the company has sold 821m iPhones. Sales of iPhones have been a fundamental force behind making Apple the world’s largest company.

In the past eight and a half years, the tech giant upended the mobile market, devastating the then-dominant BlackBerry and forcing the entire industry to reckon with innovations like a touchscreen interface, haptic feedback and an integrated music store.

The company is so large at this point that where Apple goes, the stock market often follows – and Apple shares are going down. “Apple comprises about 7% of the total S&P 500 earnings,” said Angelo Zino of S&P Capital IQ. “It’s going to have huge implications not only for Apple but for Apple’s supply chain. That 7% number is just for Apple. There are a lot of other companies like Best Buy that are tied to them.”

While the iPhone has been a phenomenal success, Apple has had less luck with its new products. Sales of iPads have stalled and the Apple Watch has yet to prove its mass market appeal.

No one is counting Apple out, but the news puts immense pressure on Tim Cook to make sure the iPhone 7 has a successful debut later in 2016. “Even with a miss or lower guidance, the stock has the potential to even trade higher,” Zino said. “We’ll see; people ask if this is the peak in iPhone sales, and I say no.”

The company’s introduction of the iPhone 6 Plus a year earlier makes comparisons look particularly dire; Zino said that the market and Apple’s associated businesses will expect a rebound – and then some – from the announcement of the iPhone 7.

Smartphone penetration is slowing in the US as the market matures – fewer and fewer Americans are adopting the technology for the first time, and so some growth is coming from undercutting competitors, rather than making converts.

In China, where Apple has used the nation’s economic boom to keep iPhone sales booming, the future looks even less certain. The last time Apple reported earnings, Cook told shareholders that revenue in China had nearly doubled year-over-year (and predicted more growth to come).

Ramon Llamas of tech analysis firm IDC points out that Apple is playing for wealthier consumers in China. “Apple isn’t the out-and-out leader [in China],” he said. “If you take a look at all these other vendors outside of Apple, they’re building share going into that low-cost Android market. It’s a market where a lot of people are willing to settle for good enough.”

Still, Lamas and Zino agreed: any sell-off in Apple stock is a bargain. The company is already trading at the lowest multiples of price-to-earnings in recent memory. Provided the phone’s next version doesn’t fail to impress, any further decline, the analysts said, is an opportunity to buy.

Source:The Guardian(UK.)

Wall Street rebounds, helped by oil, earnings

Wall Street rebounded over 1 percent on Tuesday, driven by a surge in oil prices and strong quarterly results from 3M, Johnson & Johnson and Procter & Gamble.

The Dow Jones industrial average .DJI rose 282.56 points, or 1.78 percent, to 16,167.78, the S&P 500 .SPX gained 26.52 points, or 1.41 percent, to 1,903.6 and the Nasdaq Composite .IXIC added 49.18 points, or 1.09 percent, to 4,567.67.

Source: www.reuters.com

5 Ways to Dramatically Explode Your Income

Why do people settle for an extra few thousand dollars each year?

Mike gets excited when his boss gives him a raise from $70,000 per year to $75,000 per year. He immediately plans his 10-day vacation with his wife overseas. Total cost: $5,000. He's excited and delighted at this opportunity. After all, his wife has been begging him to go on a European tour for years--and this is the perfect time to please her since the kids just left for college.

However, the $5,000 promotion is not enough for Tom, who is looking to dramatically explode his income for him and his family. He'll take the extra $5,000, but will invest it in a project more worthwhile than self-indulgence. He knows he can become a millionaire if he works his side business on evenings and weekends, which will prepare him for a full-time launch within a matter of months.

Both men are given the same opportunity, yet they react differently. Mike goes on vacation with his wife, but worries the entire time about why and how his money has rapidly dissipated. Tom, on the other hand, continually grinds on his business, even using his vacation time to work on his business full-time.

This kind of situation happens all the time: One man settling, while another man is pedalling. Abraham Lincoln once said, "It's not the years in the life that count, but the life in the years." While many people are relaxing and waiting for success to happen to them, others are pushing hard to create success in their life. 

Soon enough, the "relaxer" will start making excuses and go around preaching his blame list about why he couldn't succeed. Usually, this happens at the same time that the successful person speeds past them. Truthfully, if the "relaxer" could have committed himself to his dream early on, he would have realized that the world was already his. 

The old saying is true: Life doesn't happen TO you, it happens FOR you. 

How are you doing in the "success" department? Are you feeling inspired? Could you use a little boost of confidence? What about your income? Do you like where you stand financially? Money is the greatest way to measure your success. Therefore, let's discuss five ways to dramatically increase your income:

1. Give Voluntarily

Since the universe is always giving to us, it readily demands that we give. Those who do not give voluntarily will be forced to give involuntarily, whether they like it or not. By not giving of your time, money, and efforts, you're robbing other people, causing you much grief and despair in the process. 

For instance, Monica tells herself, "I can't give since I barely have anything." Because of this thought, the universe forces her to give her time, money, and energy to causes she didn't approve, such as working a job she doesn't like. However, the best time to give is when you don't feel like you can do it. When you constantly give, you constantly receive. 

2. Act Your Wage

I'm sure you'll agree with me that the majority of people wouldn't mind becoming millionaires. However, the problem is that they have a $100,000 work ethic. If your mindset is not allowing you to make your dream come to fruition, you need to act your wage, showing the world what kind of value you are ready to deliver.

This means that you're showing up every day willing and able to work at least 12 hours per day. However, that isn't enough. You need to take on tasks that give you the biggest profit. For example, it wouldn't make much sense to give up a $1,000,000 opportunity to fixate on a $100 idea. It might seem obvious, but people are constantly majoring on minors, failing to act their wage.

3. Visualize Your Success

All that you have envisioned will be given to you. Everything you've imagined for yourself can come alive once you visualize the result of what you want. The key to doing this is by writing out in clear details the exact picture you have in your mind. We think in pictures and your mind is the kingdom of your accomplishment. It conforms to what you want. 

However, many people focus on what they don't want. They think about losing their jobs, crashing their cars, or offending their friends. When they do this, they repel the success that they want, instead of attracting it. What kind of future do you see for yourself? Do you see poverty or do you see prosperity? You'll get whichever one you see in your mind.

Here is the secret to realizing all of your visions: When you see disharmony, see love. Where there is deficiency, see abundance. Where there is ill health, see wholeness. Where there is confusion, see peace. 

4. Receive Your Blessing

Many people have the habit of downplaying their blessings. They act modestly to appease the minds of their critics. However, this isn't the most abundant way to live. The truth is that your wealth is constantly awaiting you, seeking your recognition and appropriation. The main reason why people don't receive their wealth is because they don't even know it exists! 

Many people cannot receive their blessings because they're too busy condemning and belittling themselves. Self-condemnation causes more failure, poverty, and ill-health than anything else. You cheat yourself when you believe that you are worth less than you are. While most people believe it's an act of humility, it's actually an act of stupidity! In short, realize your blessings if you want to receive more of them.

5. Stop Settling

It's time to stop settling for your current position in life. To do this, you must solemnly declare that you want to change (and mean it!). Many times, you must change your old habits in order to supplant new ones. You need to also get rid of old people, places, and things if you want new and better ones.

Complacency is the biggest killer for those seeking to dramatically increase their income. Some people think they can quit when they have a little money in their pockets at the end of the month. This stops them from pursuing more success since they are "enjoying" themselves. While one person is at the movies for the night, another is reading an entire book! Never be complacent.

Dramatically increasing your income isn't hard at all. Just look at what the masses are doing and do the opposite. It will almost always guarantee your success. If you're willing to do the work and stay committed to your purpose, you can do anything you can imagine for yourself. When you pay the price of success, you'll have a lot more fun in the end!

Source: wwwentrepreneur.com

Pangs assailing forex reserves, by CBN

Nigeria’s foreign exchange reserves took a turn for worse from October 2015, when foreign exchange earnings hit new lows and the demand from authorised dealers of foreign currencies, together with regular interventions at the Bureau De Change segment left the country with little balance.

Foreign exchange inflow and outflow through the CBN in October 2015, were $2.82 billion and $2.34 billion respectively, which resulted to a balance of $0.48 billion, while the reserves had already fallen to $30.2 billion from more than $37 billion one year earlier.

With the fall in foreign exchange earnings and demand from currency dealers put at $2.19 billion during the period under review, the plans to boost national reserves suffered a renewed setback even till date.

According to the Central Bank of Nigeria (CBN) in its October 2015 Economic Report just released, though a month-on-month comparison of foreign exchange inflow (income) through the CBN rose by 28.2 per cent, while outflow (spending) fell by 21.6 per cent, the developments are not totally healthy for the economy.

The CBN Governor, Godwin Emefiele, said that fall in oil prices has reduced CBN’s monthly foreign exchange earnings from as high as $3.2 billion to the current level, which is as low as $1 billion, while the demand for foreign exchange by domestic importers has risen significantly.

“The net effect of these combined forces unfortunately is the depletion of our foreign exchange reserves. As of June 2014, the stock of Foreign Exchange Reserves stood at about $37.3 billion but has declined to around US$28.0 billion as of today,” he said.

However, the fall in the level of foreign exchange outflow by 21.6 per cent and 55.8 per cent, which is below the levels in September 2015 and the corresponding period (October) 2014 respectively, was due to the decline in CBN’s foreign exchange interventions.

Still, the total foreign exchange inflow into the economy, which include those from CBN and from other sources (autonomous sources), was estimated at $7.03 billion in October 2015 and represented a decline of 8.7 per cent and 50.2 per cent below the levels at the end September 2015, and the corresponding month of 2014, respectively.

The non-oil sector inflow contributed $1.67 billion (23.8 per cent of the total), representing 47.5 per cent increase, above the level in September, but the autonomous inflow, which accounted for 59.9 per cent of the total, declined by 23.4 per cent, below the level in September 2015.

The development may not be unconnected with the planned delisting of Nigerian bonds from the JPMorgan’s Government Bond Index, which also reduced the participation of foreign portfolio investors in the country’s financial market.

On the other hand, at $2.60 billion, aggregate foreign exchange outflow from the economy reduced by 22.5 per cent and 51.8 per cent, below the levels in the preceding month, and the corresponding month of 2014 respectively.

Thus, foreign exchange flows through the economy, resulted in a net inflow of US$4.43 billion in the review month, compared with  $8.71 billion a year earlier. The invisible (services) sector accounted for the bulk (37.7 per cent) of total foreign exchange disbursed.

Source: Guardian Newspaper.