Akintunde Oyedokun
Research Analyst
Oil prices slid on Friday, with Brent down 1.1% to $68.44 and WTI dropping 1.3% to $65.16 — their lowest closes since early July and late June. The weekly decline was about 1% for Brent and 3% for WTI.
The drop followed weak economic indicators from the U.S. and China, and the possibility of increased Venezuelan oil supply as the U.S. considers easing sanctions. While optimism over trade talks and potential Fed rate cuts offered slight relief, growing supply and softer demand outlook kept pressure on prices.
German Business Sentiment Improves Slightly, But Economic Fragility Lingers
Germany’s Ifo business climate index edged up to 88.6 in July — its highest in 13 months — but still below the expected 89.0, signaling limited improvement in business confidence.
Despite a €500 billion stimulus package and renewed corporate investment from firms like Siemens and Deutsche Bank, analysts warn the economic rebound lacks strength.
Ifo officials say uncertainty remains high, with Q2 growth likely flat after a 0.4% Q1 expansion. The outlook for the rest of 2025 remains modest, with little sign of strong momentum.
Tokyo Inflation Slows to 2.9%, Keeping Rate Hike Debate Alive
Inflation in Tokyo eased to 2.9% in July from 3.1% in June, slightly below expectations, yet remains above the Bank of Japan’s 2% target. The drop was largely due to last year’s high energy costs dropping out of the base, but food inflation climbed to 7.4%, and core inflation excluding food and fuel held steady at 3.1%.
With the BOJ meeting on July 30–31, the data supports a potential upward revision of inflation forecasts. However, analysts caution that slowing price momentum and soft wage growth could delay any near-term rate hike.
South Africa Targets $500m in Alternative FX Funding After Budget Deadlock Ends
Following the resolution of a budget impasse, South Africa’s Treasury is seeking to raise at least $500 million for 2025/26 through non-traditional foreign currency financing. The plan, open to select financial institutions, aims to reduce reliance on Eurobonds and manage debt more efficiently. ESG instruments are encouraged, with submissions due by August 6. This move reflects broader challenges African nations face in accessing affordable global credit.
Tinubu: Diaspora Sent $20.93bn in 2024, Outshining FDI
President Bola Tinubu has applauded the Nigerian diaspora for sending home $20.93 billion in 2024—four times more than the country’s foreign direct investment (FDI). Represented by SGF George Akume at the 2025 National Diaspora Day, Tinubu said their impact in sectors like healthcare, ICT, housing, and education is vital to national growth. IOM’s Sharon Dimanche added that beyond remittances, Nigerians abroad are helping drive global innovation, especially through youth. She noted Nigeria received 37% of Sub-Saharan Africa’s remittance inflows, with an 8.9% increase from 2023. NiDCOM Chair Abike Dabiri-Erewa praised the diaspora as “pacesetters,” citing initiatives like the Diaspora Investment Summit and the Door of Return Festival that reconnect them with their roots.
