Download September 2016

Monthly Economic News and Views
Understanding the ‘R’ Word
Recession: how deep and for how long?
Presented by B.J. Rewane
Financial Derivatives Company Limited
Lagos Business School
Executive Breakfast Meeting
Sept 7, 2016
2
Understanding the ‘R’ Word
When your neighbour loses his job = Slowdown
When you lose your job = Recession
When an Economist loses his job = Depression
Outline
3
August Break or Give me a Break
Global & Regional Context
Recession Economics and Nigeria
Lessons from other Countries
Business Proxies & the Stock Market
Prescriptive Policy & the Recovery Path
Political Analysis
Outlook
Recession is not a Depression
Albino no be half cast
5
August Break or Give me a Break

Nigeria enters into a mild recession

Q2 GDP growth slips further into negative territory (-2.06%)

Cumulative negative growth approximately 2.4%

Output contraction spurred by

Oil production fall

Manufacturing slump

Confidence sinking

Investment paralysis
6
August Break or Give me a Break

Headline inflation year-on-year surges to 17.1%

An 11-year high, close to hyper inflation territory

The monthly inflation declined sharply to 0.6%

Annualized the inflation rate down to 7.44%

Unemployment is up at 13.3%

Underemployment also up to 19.3%

Misery index is now up to 49.7%
Revenues Slump
7

Federal revenue shared with state (FAAC) down 20% to N443.63bn

Negative impact of crude oil production sabotage

PMI down 4.8% to 42.1 according to CBN

Stanbic PMI reading also shrank

FBN Quest reveals an expansion

Average opening position of banks is N97.3bn long
T/Bills Rate Stratospheric
8

Primary T/bill auction totals in August of N570bn

OMO auction is at N1.13trn

Interest rates far higher than dividend yields

Disrupting the deposit base of banks and financial institutions

Together with CRR, deposits have sterilized 25% of M2

Thereby compounding the reduction in aggregate demand
9
August Break or Give me a Break

The naira traded in a tight range in the IFEM between 314 and 322

In the export proceeds market the naira traded between 345 and 375

In the IFEM, unofficial sources report a N50 under the table premium

External reserves is approximately $25bn

Net reserves after discounting swaps and forwards approximately
$20bn

30 and 60 day forward deliveries were settled by the CBN
10
August Break or Give me a Break

9 banks suspended from forex market

For failing to remit NNPC dollars back to the CBN

Driving the naira way above the 400 resistance level

The announcement also undermined confidence in the banking system

The banks have all been readmitted into the market

After a most disruptive week
Global & Regional Context
13
Global Highlights - US Growth Slows

US added 151,000 jobs in August

Not strong enough nor weak enough to nudge the Fed to increase rates
in September

Unemployment rate now 4.9% - down from 10% in 2009

The non-manufacturing PMI fell to 51.4 in August from 55.5 in July

Lowest level since early 2010

New orders and inventories slumped into contraction territory

This forecloses the possibility of a rate hike this month
14
US - Banks are Strong

Fed stress test clears 31 of 33 banks

Hypothetical scenario:


Unemployment at 10%

50% loss in stock markets

Negative treasury rates
Banks that would normally struggle – Bank of America Corp. and
Citigroup Inc. – pass test
15
US - Banks are Strong

Morgan Stanley passes marginally with a caveat requiring a revised
capital plan

Due to weakness in the internal capital risk management process

Deutsche bank AG and Banco Santader SA fail for the second and
third year consecutively

Poor ability to measure risk cited as the main cause

Banks in a more resilient state than leading up to 2008
16
Global Highlights

Brazil economy shrank by 3.8% in Q2

Worse than expected and the ninth quarter of decline

Brazil Central Bank left interest rates unchanged at 14.25% p.a.

India’s GDP grew by 7.1% in Q2

Down from 7.9% in Q1 but ahead of China

Uber now most valuable start-up company: worth $70bn

Objective to make ride hailing so cheap and convenient that people
will forgo car ownership altogether
17
SSA

Inflation forecast for region hiked up to 12.2%,

Influenced by big players in the region (e.g. Angola at 38.3% , Nigeria at
17.1%)

Inflation expected to recede to 9.6% on average in 2017
18
SSA

Countries reliant on domestic demand like Kenya are expected to perform
well

Kenya to achieve GDP of 5.9% from 5.7% in Q2

Inflation: 6.3% MPR: 10.5%

IMF revisits Ghana’s fiscal outlook for 2016 to reevaluate US $ 918 million
assistance program

A positive outcome is dependent on an improvement of the macroeconomic
projections
19
SSA - Demand for African Eurobonds weak

Ghana has scrapped plans to sell its Eurobond

Balking at the price demanded by investors

IMF concerned that monetary reforms and budget targets may be
abandoned in run up to elections

Kenya, Nigeria and Ivory Coast have delayed their issuance of euro
bonds

South Africa and Mozambique are the only two countries that have
sold their dollar securities
Recession Economics
21
Rule Of The Thumb
A recession is two consecutive quarters of negative GDP growth
Potential GDP growth > Real GDP for an extended period
Marked by widespread contraction of business activity
High unemployment rate
Declining inflation
22
The ‘R’ Word: Consequences
Widespread Banking Failure
Stock Market Crash
Currency Depreciation
High Unemployment
and Retrenchment
Real Estate Delinquency
Political & Social
Unrest
Suicide Rates Increase
23
Types of Recession
Full year GDP
contraction of
0 - 3%
GDP
contraction of
4 - 7%
GDP
contraction of
7 - 9%
GDP contraction
of 10% and above.
Precedes a
Depression
Mild Recession
Deep Recession
Severe Recession
Chronic Recession
24
Is Nigeria in a Recession ?
GDP Growth (Q2’16)
-2.06%
Inflation
17.1%
Unemployment +
Underemployment (Q2’16)
32.6%
Misery Index (Q2’16)
49.7%
Vacancy Factor Index (Q2’16)
172
Manufacturing PMI
42.1
Consumer Confidence (Q2’16)
-24.2
Aggregate consumption (%GDP)
29%
Yes, a mild one
25
The ‘R’ Word: The Recovery Path
V – SHAPED
U – SHAPED
L – SHAPED
W – SHAPED
Brief economic decline followed by rapid and sustained
recovery
GDP shrinks for several quarters and slowly
returns to growth
Severe recession that stays for many years i.e
depression
Double dip recession, economy recovers and
then falls back before recovering finally
26
Way out of a Recession
To get out, we need to stimulate and target
Aggregate consumption
$340bn
Gross fixed investment
$66bn
Consumer confidence
9.5
Manufacturing PMI
53
27
Recovery Path & Way Out for Nigeria
Given the fall in oil revenues
Increased deficit financing plan is crucial for recovery
$4 – 5 billion external borrowing
Asset sales to raise more dollars
Nigeria needs to raise money with a Eurobond issue
28
Recovery Path & Way Out for Nigeria
Minimum wage review and social safety net
Reduce interest rates
Reduce and refund CRR
Create liquidity in the forex market
Curb abuse and arbitrage of the forex
29
Recovery Path & Way Out
Investor enthusiasm is weak
Recession must be combated with a powerful stimulus package
Turning a U curve into a V curve
Year-on-year inflation of 17.1% forced CBN to raise rates
Choking the economy of funding
30
Recovery Path & Way Out
MPC under pressure to cut rates
Force T/bill rates lower to single digits
The abuse of the intervention fund programs will be curbed
Prevalent forex market abuse may erupt into a scandal
International and domestic investors will be looking for
policy direction & consistency alignment
31
Outlook and Prognosis
Doing nothing will lead to atrophy
Interest rate reduction to stimulate consumption
Increase public works and civil construction
Incentivization of investment
Lower unemployment
Increasing inflation
Weaker naira in the short term
32
The ‘R’ Word: Types
Recessions are classified by the speed of recovery

V-shaped: brief economic decline followed by rapid and sustained recovery

U-shaped: GDP shrinks for several quarters and slowly returns to growth

L-shaped: severe recession (depression) that stays for many years

W-shaped: double dip recession, economy recovers and then falls back
before recovering finally
33
Schools of Thoughts: Keynesian

Paradox of thrift: in a recession, people tend to save more because of the
threat of unemployment.

Leading to a reduction in spending which depresses aggregate demand and
GDP

When an economy has spare capacity, increasing aggregate demand will
have an impact on real output and only minimal effect on the price level
34
Schools of Thoughts: Keynesian

In stabilizing the economy, fiscal policy is the primary tool, while monetary
policy is complementary

Government should reflate the economy through deficit-stimulus policy in
order to get out of recession

Spurring consumption is key

Tackle unemployment rather than inflation as wages become rigid during
recession
35
Schools of Thoughts: Monetarists

Monetary philosophy is a direct criticism of the classical Keynesian
economic theory.

Fiscal policy is ineffective and potentially destabilizing

The crowding-out effect

It advocates for the control of the supply of money in the economy as an
instrument to influence or tackle inflation

In the long run, the market will fix itself
Nigeria in a Recession ?
38
Nigeria in a Recession???

Potential GDP has been greater than Real GDP since 2012
Real GDP vs Potential GDP growth
6.6
7
5.9
6
4.9
6.3
5.2
5.4
5
4.3
3.8
4
3
2.7
2
1.4
1
0.3
0
2011
2012
2013
Growth of Real GDP (%)
2014
Growth of potential GDP (%)
2015
2016*
Recession and its fallout
The Nigerian Case: What the figures say?
40
Causes of the Recession
Exogenous




Oil price
Weak global demand
International flow of capital
Terrorism
External

Investment level

Oil production

Monetary conditions

Monetary policy

Governance & accountability

Subsidies

Competitiveness

Productivity
Negative Growth
41

Negative growth of -2.06% in Q2’2016


Compared to forecast of -1.5%
Economy has found its bottom and only way
is up
Real GDP Growth Rate (%)
5
4
3
2
1
0

Pace of recovery is dependent on pace of
-1
policy response
-3

Q3 growth of -1.0 % and Q4 of 0.5%
-2
Oil Price
GDP Growth (%)
Q2' 2016
Q1' 2016
Q4' 2015
Q3'2015
Q2' 2015
Q1' 2015
Q4'2014
Q3' 2014
Q2' 2014
Q1' 2014
Q4' 2013
Q3' 2013
Q2' 2013
Q1' 2013
Q4' 2012
Q3' 2012
Q2' 2012
Q1' 2012
Q4' 2011
Q3' 2011
Oil Prices
140.00
10
120.00
8
100.00
6
80.00
4
60.00
2
40.00
0
20.00
-2
0.00
-4
GDP Growth
GDP & Oil prices – Positively Correlated
42
Sector Performance
43
Growth Rate
Sectors
 Fastest
Oil Refining
Sector Contribution to Job creation
growing vs Worst49.19%
performers
N/A
Water supply & Waste Management
8.46%
0%
Agriculture
4.53%
5.3%
Insurance
3.72%
0.7%
Education
2.88%
60%
Information and Communication
1.35%
1.3%
Manufacturing
-3.36%
7%
Construction
-6.28%
1.3%
Accommodation & Food Services
-6.39%
4%
Financial Institutions
-13.24%
4.5%
Crude Oil & Natural Gas
-17.48%
0
Sector Performance
44

Top four fastest growing sectors account for only 6% of new jobs in Q1.

Sector activity does not mean job creation and employment

Therefore, growth does not translate into increased consumption and
income
The Slump-o-meter: The Recession Scorecard
45
FAAC(N'bn)
Real GDP Growth (%)
Unemployment (%)
Q3'16
Q3'16*
Q2'16
Q2'16
Q1'16
Q1'16
-3
-2
-1
Q3'16*
Q2'16
Q1'16
0
200
400
600
800
11
Vacancy Factor Index
0
13
14
15
FBN PMI
Q3'16
Exchange rate ( N/$ )parallel)
12
Q2'16
Q3'16*
Q3'16*
Q1'16
Q2'16
55
Q1'16
60
65
70
75
Gross Fixed Investment as % of GDP
0
200
400
600 15
14.5
14
13.5
13
Q2'16
Q1'16
48
2015
2016
2017
2018
50
52
54
56
Inflation loses steam
46

Year-on-year inflation rate of 17.1% is the result
of the base year effect


Month-on-month inflation of 0.6%

Shows inflation is slowing down from 0.8% in June

Annualized rate of 7.4%
Inflation (%)
2.00
1.80
1.60
1.40
1.20
1.00
0.80
0.60
0.40
0.20
0.00
20.00
18.00
16.00
14.00
12.00
10.00
8.00
6.00
4.00
2.00
0.00
Thus, inflation does not pose a potent threat to
stability and growth
M-o-M (primary axis)
Y-o-Y (secondary axis)

Y-o-Y inflation to reach 17.5% in August
Exchange Rate
47

Spread between the parallel market and IFEM
increased by 58.8% in August

Driven by the 10.2% depreciation at the parallel
market.

Rates to appreciate marginally in September

Parallel: N410/$ and IFEM: N312/$ by Sept end
Exchange Rate (N/$)
440.00
420.00
400.00
380.00
360.00
340.00
320.00
300.00

Forward contract of $1.57 billion due this month

At N275/$

CBN will pay up - by hook or by crook
Parallel Market Rate
IFEM Rate
Unemployment
48


Unemployment at 6-year high of 13.3%
Highest in 15-24 age group




Underemployment rate is flattening
out: 19.3%
Misery Index now 49.8%


Unemployment 24.0%
Underemployment 34.2%
Expected to reach 53% by Q3
5,726 jobs created in Q1

8,764 jobs lost
25
60
20
50
40
15
30
10
20
5
10
0
0
Q2'15
Q3'15
Q4'15
Q1'16
Q2'16
underemployment
unemployment
inflation
misery index (secondary axis)
Q3'16*
Recession – Lessons from History
Other Cases of Recession
51
The Asian Crisis (1997)

Originated from Thailand before spreading to other East Asian economies

South Korea, Indonesia, Malaysia, Philippines

Foreign Debt-to-GDP ratios rose to 167% for the top ASEAN economies

Prior to the crisis was the Asian economic miracle when economies
experienced high levels of growth of about 8-12%

The economic bubble was however fuelled by hot money
52
Thailand – Crisis to Recovery

Maintenance of a fixed exchange rate regime (i.e. pegging to the dollar)
resulted in stronger domestic currencies which slowed exports

Lower exports reduced forex earnings and which led to a misaligned
currency exchange policy

This led to excessive exposure to foreign exchange risk in the financial &
corporate Sector

Making these economies vulnerable to external shocks such as sudden
capital outflows
Thailand – Crisis to Recovery
53

Thailand’s economy grew at an average of over 9% between 1985-1996

The highest economic growth rate of any country at the time

Inflation was kept reasonably low within a range of 3.4–5.7%

The baht was pegged at ฿25/$

In 1997, the Thai Baht was hit by massive speculative attacks but Thailand
lacked the foreign reserves to support the USD–Baht currency peg
Thailand – Crisis to Recovery
54

The government was eventually forced to float the Baht, on 2 July 1997,
allowing the value of the Baht to be set by the currency market

This caused a chain reaction of events, eventually culminating into a regionwide crisis

The baht devalued swiftly and lost more than half of its value

Reached a record low of ฿56/$

The stock market dropped 75%
55
Thailand – Crisis to Recovery

The IMF unveiled a rescue package for Thailand which was subject to
conditions such as:

Establishing strong regulation frameworks for banks and other financial
institutions

By 2001, the economy had recovered

The increasing tax revenues allowed the country to balance its budget
and repay its debts to the IMF in 2003

Four years ahead of schedule
56
The US – The Recovery
US Growth rate
US Unemployment rate

The financial crisis triggered the worst recession since The Great Depression

The economy contracted by as much as 8% and unemployment soared to 10%

The severity of the crisis resulted in a dramatic fall in household net worth

Today, unemployment is down to 4.9% and GDP growth is positive at 1.2%
57
The US – TARP Program
$298bn
October 2009
$0bn
Outstanding
January 2015

TARP bank investment programs helped stabilize the financial system

Provided capital to more than 700 banks

Banks paid back funds within 7 years

Treasury realised gain from dividends, warrants and other income
Business Proxies
Income falling and markets shrinking
59

FAAC down on lower oil production
Monthly allocation moved contrary to expectations

Down 20.65% to N443.6bn from N559.03bn last
month.


Driven by lower crude oil production and export.
FAAC expected to rebound this month
Monthly FAAC Allocation
800
700
600
500
400
300
200
100
0

To reach N500bn.

On improved revenue collection, higher oil prices in
June.

Average crude oil price increased to $49.87pb in June
from $47.5pb in May.
700
600
559.03
370
443.6
345
299.75 281.5 305.12
Monthly FAAC Allocation
Ships Awaiting Berth Down
60

Ships awaiting berth decreased to 41 from 45
last month.

This is attributable to higher customs duties,
bottlenecks and forex shortages
60
Ships Awaiting Berth
50
40
30

Importers are diverting cargoes to neighbouring
countries to avoid undue restrictions at Nigerian
20
10
0
ports and high custom duties

Smuggling activities expected to increase

Ships awaiting berth expected to decline further
Ships Awaiting Berth
Parallel Rate (N/$)
450
400
350
300
250
200
150
100
50
0
61

Rig Count Set to Increase
Shell Nigeria declared force majeure on
Bonny Light

Niger Delta Avengers declare conditional
ceasefire

Nigerian oil rig count remained flat at 5 for
July

Down by 50% year-on-year
Rig Count
1000
800
600
400
200
0
US
Canada
Nigeria
Stock Market
Stock Market in a Recession Environment
64
Scott-Free BC 30
NSE Index
31,000
29,000
27,000
25,000
23,000
21,000
Source: NSE, Scott-Free, FDC Think Tank
Market in August
65

Stock declined in the month of August by 1.47%

Bringing YTD return of the index to -3.64%

Attributable to crowding out effect of government securities and
weak investor’s sentiments

August’s Market capitalization declined 1.46% to N9.47trn

The average daily turnover increased 2.18% to N2.56bn

Best performing sector in the index was Oil & Gas with 2.35%

Worst performing sector was Banking with -2.79%

Average market PE ratio currently at 10.6x
Market in August - Scott-Free Index
66

SFNG Total Share Index down 0.97%



Monthly volatility 10.54%
BC30 index lost 0.98% in August
The SFNG Blue-Chip 30 Index (USD) was up 2.08% while the SFNG
Blue-Chip Index (EUR) was up 1.42% for the month of August

30 day volatility of 11.84% (down from 17.52% in July)

Sharpe ratio of -1.48

1 year return of -8.45%

Trailing P/E 7.38
Impact of Recession in Stock Market
67

Lower sales

Declining profitability

Higher P/E ratio

Consolidation in most industry

Attractive to international investors
Corporate Profit Growth Still Negative
68
Revenue (%)
PBT (%)
GDP (%)
Q1’16
-2.55%
-13.84%
-0.36%
Q2’16
5.24%
-29.4%
-2.06%

Weakness in macroeconomic condition translating to profitability decline

Earnings and profitability fell short of expectations

Worsen investor’s confidence

Low dividend yields turning investors to government securities

August dividend yield vs T/Bills yield (6.01%:14.29%)

Profits from quoted companies have fallen by about N178 billion
Banking Industry
69






Steady asset growth of 9.9% (3 years CAGR)
74.6% of industry revenues amounting to N1.21trn (H1’16)
concentrated in Tier I banks
Industry’s profitability is slowed by high loan loss charge offs and
rising operating costs
Impairment charge continues to record high credit losses of
N218.9bn for H1’16 from N41.3bn in H1’14
Size matters as Tier II banks struggles to grow PBT
Tier II PBT for H1’16 was N50.3bn as against N59.2b recorded in
H1’14
70
Banks Stressed Test… What Does it Signify?







CBN conducts stress tests as well as routine examinations on banks
In light of growing NPL’s and deteriorating asset quality due to naira
weakness
Raises apprehension on the state of Nigerian banks
Last released financial stability report was May 2016 for – December
2015
Divulge bank’s asset quality decline
Industry ratio of non-performing loans (net of provisions) to capital
increased to 7.4% from 5.5%
Attributable to unfavourable macroeconomic environment and
exposure to the oil and gas sector
Real Estate Industry
72
Recession Taking its Toll

VFIX up 4.2% from 165 in Q1’16 to 172 in Q2’16

A lagging indicator – yet to respond to policy changes

Lekki has the highest vacancy rate at 65%

Affordable rents 6-10% above asking rents of $780psqm in Victoria Island

Residential index rose by 6.8% q-o-q, commercial index remained flat at
148

Prime office rent drop by 6% to $810 per sqm per annum
73
VFIX up to 172 in Q2 2016

Vacancy rates trend upwards in prime areas

Expected to decline gradually from December 2016 onwards
200
180
160
140
120
100
80
60
40
20
0
Source: FDC Think Tank
VFIX up to 172 in Q2 2016
74
Month/Year
VFIX
Residential Index
Commercial Index
Jan 2015
100
100
100
Jan 2016
160.2
169.2
148
Mar 2016
165.3
176.9
148
Apr 2016
165.9
180.8
143
May 2016
170.5
188.5
143
June 2016
172.2
188.5
148
Nigeria in Recession means High Vacancy Rates
75

Nigeria in recession increases vacancy rates further

Carrying cost of properties is excruciating

Landlords reduce rental payment to annually

Previously collected 2 to 3 years payment

Pedigree of tenants remains important
Nigeria in Recession means High Vacancy Rates
76

Headline inflation at 17.1% is negative for real estate

Replacement cost far in excess of market value

Home prices cut, payment plans extended

Smaller commercial spaced quickly occupied- deemed more affordable
Aviation Update
Nigerian Airlines are bleeding
Aviation Update
78

Global air passenger traffic up 6% in H1 2016

Passenger load factor at 79.2% in H1 2016

0.2% marginally lower than 2015

Premium class traffic lagging economy

Airline profitability up marginally in 2016

Airline share prices up by 5.9% in July

In Nigeria global network carriers are cutting back frequencies and
capacity
79
Aviation Update

Emirates cut 50% of flight frequency to Lagos

United and Iberia exited the market

Lufthansa reducing Abuja & PH frequency to 4 per week from 7 this
month

May cut Lagos to 5 flights per week from December

Meridian now operating 1 flight per week from Milan to Lagos

Delta cutting frequency from 6 per week to 5 on Lagos-Atlanta route
Aviation Update
80

Round trip economy fares to New York now N450K – N600K

Passenger load factors declining compared to 2015, now average 80%
inbound

Outbound load factors falling much faster

Fares, more expensive dollars and declining income impacting demand

Nigerian airlines cancelling flights to New York and London
81
Aviation Update

Domestic aviation is consolidating

Aero and First Nation suspended operations

Mounting bills, declining revenue and static demand

Minister of State of Aviation assures market that Aero will return

Nigerian carriers are cutting back on maintenance and training
82
Aviation Update

Unable to service debt and pay salaries

Chinese airlines are paying huge salaries for pilots

Paying top dollars for experienced pilots to meet rising traffic demand

Senior pilots annual salaries:
Xiamen
Qing Dao
Sichman
$
332K
318K
302K
American
Delta
United
South West
$
280K
252K
245K
223K
Political Update & Risk Analysis
Political Risk Analysis
85

APC leveraging on incumbency to consolidate hold on power

The languishing economy, increased Misery Index & weak naira are
challenges

The favourability ratings of the FGN are sliding

Recent comments show a sense of urgency, determination and
understanding

Reality and expectations gap is high
86
Political Risk Analysis

The public is hurting and anxious about the naira

The statements and signals on monetary policy are mixed

Edo election and postponement indicates jitters

PDP remains in complete disarray

Defectors and disgruntled APC leaders will form a new party

The economic downturn and the absence of rent will impede funding
87
Political Risk Analysis

In spite of economic decline, opposition politics in Nigeria is not
lucrative

Ondo state is a slippery terrain and is in play

An opposition win with support of outgoing governor is possible

The NASS crisis and the Senate trials will impede legislation

Flashpoints remain in the Niger Delta and the amnesty
88
Political Risk Analysis

The Chibok Girls situation is also a potent source of concern

The naira weakness in the forex market and the abuse is a ticking political
time bomb

Buhari is now visiting the States of Nigeria

He is beginning to respond to the economic crisis by engagement with
the private sector

Monetary policy changes & direction are now imperative
OUTLOOK
September Outlook
90

The Economic Management Team will announce a step up in the stimulus
package

Inflation in August will increase marginally to 17.6%

T/Bill stop rates will be allowed to decline sharply to 12% p.a. for 90
days and 14% p.a. for 180 days

MPR will be cut to 13%p.a.

CRR will be reduced to 20% to ease monetary conditions
91
September Outlook

Capex spending and disbursement to contractors will increase sharply

The naira will appreciate marginally in the parallel market to N415/$

The CBN will increase the funding of the forex market

APC will retain power in Edo state

The legislator/executive infighting in the APC will continue

PDP squabbles will intensify, leaving the party in shambles

GDP growth for Q3 is likely to be negative
92
Corporate Humour
Anger is only one letter short of
Danger - Anonymous
He who conquers others is strong; he who
conquers himself is mighty – Lao Tzu
93
Corporate Humour
Humility is like underwear,
essential but indecent if it shows
– Helen Nielsen
Our vanity is the constant enemy
of our dignity – Anne-Sophie
Swetchine
94
Corporate Humour
Opportunities multiply as they are
seized, they die when neglected –
John Wicker
Consistency is the last refuge of
the unimaginative – Oscar Wilde
95
Corporate Humour
The man who makes no mistakes
does not usually make anything –
Bishop Magee
The lesser evil is also evil –
Naomi Mitchinson
96
Corporate Humour
Vice is nice, but a little virtue will
not hurt you – Felicia Lamport
Why do they put Bibles in the
bedrooms, where it is usually
too late – Chris Morley
97
Corporate Humour
Using Viagra in old age is like
erecting a new flagpole in front
of a condemned building –
Harvey Korman
Good girls go to heaven,
bad girls go everywhere –
Helen Brown
Corporate Humour
98
Married couples are separated at
dinner parties so that each one can
tell stories without contradiction –
Judith Martin
A bachelor is like a good
detergent : works fast and
leaves no ring – Terry
Carterbury
Bismarck J. Rewane, MD/CEO
Financial Derivatives Company Ltd.
Lagos, Nigeria
01-7739889
© 2016. “This publication is for private circulation only. Any other use or publication without the prior express consent of Financial Derivatives Company
Limited is prohibited.”