corona virus Archives - Inside Business Africa

May62020 by Joshua OlotuNo Comments

Oil collapse wipes out profits at Total

Oil & Gas

Total said Tuesday its quarterly profit fell by 99 percent because of dropping oil prices and announced it would slash investments in response to the ongoing turmoil in crude markets. The French oil major reported a net profit of $34 million for the first quarter, against $3.1 billion a year earlier. Oil prices suffered a sharp drop in the first quarter due to overproduction and a price war between Saudi Arabia and Russia, falling to $50.1 from $63.1 a year earlier.AdvertisementAdvertisement The sharp fall in oil and gas prices depressed Total’s cash flow from operations by nearly two thirds. Since the end of March, oil has been hit further by a collapse in demand due to the economic impact of the coronavirus, even going negative at one point last month, when sellers had to pa...

May62020 by Joshua OlotuNo Comments

World airlines set for new sitting arrangement in post-restriction era

Aviation

The coronavirus pandemic may have changed the face of social interactions, including how we travel and the sitting arrangement aboard commercial aeroplanes. Unlike the pre-COVID-19 period, the airlines that survived the crisis may have fewer passengers onboard, or have the economy cabin passengers shielded from each other by plastic screens. Not left out in the paradigm shift are the local airlines that are already considering new safety measures, though at an extra cost amid cash crunch. One of the airlines, Dana Air, has disclosed plans to keep the middle seats on its entire aircraft empty upon resumption of flights in line with the social distancing guideline on Covid-19. The Accountable Manager of Dana Air, Obi Mbanuzuo, said Dana Air would commence this initiative when fl...

May32020 by Joshua OlotuNo Comments

Apple boosts revenues, profits dip in pandemic-hit quarter

Business

Apple on Thursday reported profit slipped as it boosted revenue from services and wearables in a pandemic-cobbled start to the year for the iPhone maker. Profit dipped to $11.2 billion on sales of $58.3 billion in the fiscal second quarter, compared to net income of $11.7 billion on revenue of $58 billion in the same period a year earlier. “Despite COVID-19’s unprecedented global impact, we’re proud to report that Apple grew for the quarter, driven by an all-time record in services and a quarterly record for wearables,” chief executive Tim Cook said in an earnings release. Apple shares were down more than two percent in after-hours trades that followed release of the earnings figures. Revenue from iPhones — the big earnings segment for Apple in recent years — dropped some seve...

Apr182020 by Joshua OlotuNo Comments

Virtual Conferencing Seen Limiting Air Travel Post COVID-19

Aviation

Before the global lockdown of socio-economic activities due to coronavirus (COVID-19) pandemic, corporate organisations and other businesses often engage in virtual conferencing, where officials connect to each others through the internet and hold virtual meetings. Some of the officials could be at different parts of the world but connected together through the virtual platform. This used to be alternative choice for organisations, but it became inevitable for some businesses since the COVID-19 lockdown because there is restriction on movement and there are no scheduled international flights, so internet conferencing has become the choice. Aviation experts have predicted that this method of meeting would continue after the pandemic and it would cut down air travel, which would ov...

Apr172020 by Joshua OlotuNo Comments

OPEC expects recovery in Q4, fall in demand to 19.73 mil b/d in Q2

Oil & Gas

OPEC is banking on global oil demand recovering by more than 10 million b/d from the second quarter to the fourth quarter of 2020 as it embarks on a global supply pact along with allies and rivals to provide relief for a coronavirus-stricken oil market. OPEC’s analysis arm, like many other agencies, severely cut back its demand forecast for 2020 as the COVID-19 pandemic has spread fast globally, jolting an oil market with a historic shock described as “abrupt” and “extreme.” Meanwhile, the International Monetary Fund (IMF) has said the outlook is subject to exceptionally high uncertainty, reaffirming that extraordinary macroeconomic action, and working together, will contribute to a faster recovery. “Targeted and sizable fiscal support is critical to provide a safety net for the ...

Apr162020 by Joshua OlotuNo Comments

Stock market index rises further by 2.32% despite lockdown extension

Capital Market

Despite government’s decision to extend the lockdown in Lagos, Abuja and Ogun states by additional 14 days, the Nigerian equities market commenced trading in an upbeat yesterday, as index appreciated further by 2.32 per cent. The market re-opened for transaction yesterday after the one –day public holidays declared by the federal government to mark the Easter celebrations. Specifically, the All-Share Index (ASI) gained 495.92 absolute points, representing a growth of 2.32 per cent to close at 21,879.95 points. Similarly, the market capitalisation gained N259 billion to close at N11.403 trillion. The upturn was largely boosted by capital appreciation recorded in the shares of the following mid and large capitalised stocks, Dangote Cement, MTN Nigeria, Stanbic IBTC Holdings, Nigeri...

Apr82020 by Joshua OlotuNo Comments

Tackling economic recession in COVID-19 era

Appointments

The rampaging Coronavirus, otherwise called COVID-19, crept into the consciousness of the world without much fanfare. The initial response was lackadaisical as the world thought a simple containment in the quiet, yet busy town of Wuhan, a province in China, would be sufficient to keep the virus at bay. About 12 weeks of announcing its arrival, COVID-19 has shown enough potency of wreaking phenomenal havoc on the global economy as British, United States, Spain and Italy economies are presently on a shaky ground. With the super-power economies under immense threat close to nothing seen in the history of the world, the time to roll back the frontiers of the epidemic is now. Indeed, the world is unanimous that a global action is urgently needed. The International Labour Organisation (ILO) ...

Apr12020 by Joshua OlotuNo Comments

Experts want government to create intervention funds for essential industries, others

Economy

To alleviate pains of COVID-19 on the citizenry, financial experts have urged the Federal Government to consider the provision of intervention funds to support essential industries/commodities such as rice, vegetables and related products. According to them, the measure would also enhance outputs and efficiency. The experts, while suggesting key fiscal measures that the federal government should consider within this period, said government should also develop economic stimulus packages for essential industries and commodities in their respective states. Specifically, experts from FSDH Securities Limited, said there is need to target specific non-oil products and industries for exporters to take advantage of the devalued exchange rate. “Key fiscal measures that Federal Governm...

Apr12020 by Joshua OlotuNo Comments

Supporting Fight against COVID-19

Health

The Covid-19 epidemic is no longer just a public health crisis, but a huge threat to the world’s economy which Nigeria is part of. Stock markets across the world have been hit hard just as prices of commodities such as crude oil have declined raising fears of a possible recession. Based on this, relevant international organisations such as the Organisation of Petroleum Exporting Countries (OPEC) and International Energy Agency (IEA) have projected that resource-dependent countries like Nigeria will find it hard to cope with the decline in commodity prices. In a joint review of the situation, the OPEC and IEA explained that the income of countries like Nigeria from oil and gas will fall by 50 per cent to 85 per cent in 2020, reaching the lowest levels in more than two decades. Thi...

Mar262020 by Joshua OlotuNo Comments

IMF proffers initiatives to mitigate economic impact of pandemic in SSA

Economy

The International Monetary Fund (IMF) has stated that what began as a health crisis and now a major global economic crisis, may have substantial economic impact on Nigeria and other sub-Saharan African countries. According to the IMF, many countries in sub-Saharan Africa have limited room in their budgets to increase spending, as they have had rely more on global capital markets since the financial crisis a decade ago. Already, it has stated that growth forecast in April’s regional outlook would be significantly lower, as slowdown will mean revenues take a hit, just as countries face additional public spending needs.AdvertisementAdvertisement The IMF had on Monday, warned that the world might witness a global recession that is as bad as 2008 financial crisis, as a result of t...