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Ruffer ’50 cent’ makes $2.6 billion, as Coronavirus strikes financial market

The fear of Coronavirus has enriched Ruffer, a London investment fund, with $2.6 billion amidst a sell-off caused by the COVID-19 outbreak. 

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Ruffer, alias 50 Cent, makes $2.6 million in a month as Coronavirus strikes financial market

Ruffer, a London investment fund, has joined the league of the few benefitting from the Coronavirus lockdowns, as it gained $2.6 billion in a month.

The investment company, nicknamed “50 cent”, made the gain after involving in a series of trades amidst a sell-off caused by the COVID-19 outbreak.

Ruffer has a history of taking advantage of volatilities in the financial market; it had profited from a volatility trade during a milder bout of turmoil, a few years back. The latest development started in 2018 when the company had bought Vix derivatives contracts costing half a dollar each at the time.

In a recent report by Financial Times, while offsetting losses in March 2020, Ruffer first made $800 million from a $22 million purchase of derivatives contracts that track the Vix and profit if it rises, which typically happens as stock prices fall sharply.

The investment fund then made $1.8 billion gain from other equity, gold and credit derivatives that protected Ruffer from the financial crisis borne out of the Coronavirus pandemic. The firm, which has $23 billion under its management, saw its Total Return fund drop 0.8% at the end of the first quarter.

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(READ MORE: Covid-19: World Bank discloses when Sub-Saharan will fall into recession)

Ruffer’s profits had been achieved on the back of uncertainties surrounding the stock markets due to disruptions in business activities caused by the COVID-19 pandemic. Investors’ confidence has been shaken as the global economy continues to drag; with no possible vaccine in sight, things might drag till the end of the second quarter.

Nairametrics had reported that new research on vaccines might take the end of 2020 to produce a result.

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Ruffer, alias 50 Cent, makes $2.6 million in a month as Coronavirus strikes financial market

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This has sparked a global sell-off in the global market. In the US, S&P 500 index, an equity index that measures the stock performance of 500 large companies listed on stock exchanges in US, declined by more than 30% at its nadir.

It pushed the Vix volatility index—also known as Wall Street’s “fear gauge”—higher than levels seen during the financial crisis that occurred between 2008-2009. But Ruffer made a mouth-watering sum of $2.6 billion owing to its habit of purchasing cheap protection against sharp falls in stock prices. 

Olalekan is a certified media practitioner from the Nigerian Institute of Journalism (NIJ). In the era of media convergence, Olalekan is a valuable asset, with ability to curate and broadcast news. His zeal to write was developed out of passion to shape people’s thought and opinion; serving as a guideline for their daily lives. Contact for tips: [email protected]

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Coronavirus

Covid-19: Oxygen demand in Lagos State has risen 5 times – Sanwo-Olu

Governor Sanwo-Olu has lamented the rising second wave of the pandemic in Lagos as the demand for oxygen increases by 5 times.

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The Lagos State Governor, Babajide Sanwo-Olu has warned that the rising second wave of the pandemic in Lagos has seen the demand for oxygen rise 5 times from 70 six-litre cylinders per day to 350 six-litre cylinders at Yaba Mainland Hospital alone.

The Governor also urged that all malaria-like symptoms should henceforth be considered as COVID-19 virus infection unless and until proven not to be so.

This was disclosed in a statement released by the Lagos State Government on Tuesday.

“Over the last few weeks, the demands for oxygen has risen from 70 six-litre cylinders per day to 350 six-litre cylinders in our Yaba Mainland Hospital. This is projected to more than double to 750 six-cylinders, before the end of January 2021,” the Governor said.

He added that the State Government has decentralized provision of oxygen and other services needed for Covid-19 patients, citing provision of oxygen kiosks.

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“ln addition to providing oxygen at our isolation centres, the Lagos State Government has decentralized the availability of oxygen across the State through the provision of 10 oxygen and sampling kiosks. Oxygen therapy and other related services will be provided to patients that require them.

“Five of these 10 oxygen centers have been commissioned while the remaining five will be ready for use within the next four weeks. It is our expectation that these sampling kiosks would be easily accessible to residents that require oxygen therapy at the level of LGAs as stabilization points prior to onward transmission to our Isolation centres, if required.

“This strategy is to further increase the fighting chance of Lagos residents that have contracted the virus and require immediate oxygen therapy,” he stated.

The Governor said that Lagos is closely monitoring plans by the FG to acquire vaccines and said the State has also resumed discussion with potential manufacturers. He also said the State is building its own regulatory framework for vaccine distribution.

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“We are closely monitoring ongoing action by the Federal Government to procure COVID-19 vaccines for use in Nigeria. We have also opened discussions with vaccine manufacturers so that when the vaccine comes eventually we can ensure that Lagosians are catered for.

“In the meantime, we are developing a strategy that will articulate the criteria, guidelines and regulatory framework for providing and monitoring vaccinations in Lagos.

“The Lagos State Government is actively partnering with the private sector in the management of the COVID-19 pandemic, in the areas of testing, oxygen deployment, as well as the clinical management of moderate to severe cases. These partnerships have helped enhance the State’s response to the ever-changing circumstances of the pandemic,” Sanwo-Olu added.

What you should know 

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  • The Lagos State Government earlier disclosed that its bed occupancy levels at its public and private COVID-19 care centres increased to 51 per cent.
  • The Federal Government also alerted Nigerians that hospitals across the country are running out of facilities to handle more serious cases of coronavirus infections as the virus is spreading fast with mild symptoms in some victims and severe illnesses and death in others.
  • Nairametrics recently reported that the Federal Government, through the Ministry of Finance, announced the sum of N10 billion for the production of vaccines in Nigeria, to fight the coronavirus.

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COVID-19 Update in Nigeria

On the 19th of January 2021, 1,301 new confirmed cases and 15 deaths were recorded in Nigeria

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The spread of novel Corona Virus Disease (COVID-19) in Nigeria continues to record significant increases as the latest statistics provided by the Nigeria Centre for Disease Control reveal Nigeria now has 113,305 confirmed cases.

On the 19th of January 2021, 1,301 new confirmed cases and 15 deaths were recorded in Nigeria.

To date, 113,305 cases have been confirmed, 91,200 cases have been discharged and 1,464 deaths have been recorded in 36 states and the Federal Capital Territory. A total of 1.19 million tests have been carried out as of January 19th, 2021 compared to 1.17 million tests a day earlier.

COVID-19 Case Updates- 19th January 2021,

  • Total Number of Cases – 113,305
  • Total Number Discharged – 91,200
  • Total Deaths – 1,464
  • Total Tests Carried out – 1,191,866

According to the NCDC, the 1,301 new cases were reported from 22 states- Lagos (551), FCT (209), Oyo (83), Plateau (65), Kaduna (64), Enugu (61), Rivers (44), Ondo (39), Benue (37), Akwa Ibom (31), Kano (19), Delta (18), Gombe (18), Ogun (16), Edo (15), Kebbi (10), Ebonyi (9), Jigawa (4), Osun (3), Zamfara (3), Borno (1) and Nasarawa (1).

Meanwhile, the latest numbers bring Lagos state total confirmed cases to 41,951, followed by Abuja (14,909), Plateau (6,896), Kaduna (6,389),  Oyo (4,778), Rivers (4,473), Edo (3,335), Ogun (2,928), Kano (2,636), Delta (2,140), Ondo (2,109), Katsina (1,723), Kwara (1,697), Enugu (1,644), Gombe (1,518), Nasarawa (1,336), Ebonyi (1,284), Osun (1,263),  Abia (1,134), and Bauchi (1,107).

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Borno State has recorded 868 cases, Imo (857), Akwa Ibom (698), Benue (694), Sokoto (677), Bayelsa (619), Adamawa (573), Niger (547), Anambra (515), Ekiti (473), Jigawa (429), Taraba (294), Kebbi (261), Yobe (211), Cross River (169),  Zamfara (165), while Kogi state has recorded 5 cases only.

READ ALSO: COVID-19: Western diplomats warn of disease explosion, poor handling by government

Lock Down and Curfew

In a move to combat the spread of the pandemic disease, President Muhammadu Buhari directed the cessation of all movements in Lagos and the FCT for an initial period of 14 days, which took effect from 11 pm on Monday, 30th March 2020.

The movement restriction, which was extended by another two weeks period, has been partially put on hold with some businesses commencing operations from May 4. On April 27th, 2020, Nigeria’s President, Muhammadu Buhari declared an overnight curfew from 8 pm to 6 am across the country, as part of new measures to contain the spread of the COVID-19. This comes along with the phased and gradual easing of lockdown measures in FCT, Lagos, and Ogun States, which took effect from Saturday, 2nd May 2020, at 9 am.

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On Monday, 29th June 2020 the federal government extended the second phase of the eased lockdown by 4 weeks and approved interstate movement outside curfew hours with effect from July 1, 2020. Also, on Monday 27th July 2020, the federal government extended the second phase of eased lockdown by an additional one week.

On Thursday, 6th August 2020 the federal government through the secretary to the Government of the Federation (SGF) and Chairman of the Presidential Task Force (PTF) on COVID-19 announced the extension of the second phase of eased lockdown by another four (4) weeks.

Governor Babajide Sanwo-Olu of Lagos State announced the closed down of the Eti-Osa Isolation Centre, with effect from Friday, 31st July 2020. He also mentioned that the Agidingbi Isolation Centre would also be closed and the patients relocated to a large capacity centre.

Due to the increased number of covid-19 cases in Nigeria, the Nigerian government ordered the reopening of Isolation and treatment centres in the country on Thursday, 10th December 2020.

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READ ALSO: Bill Gates says Trump’s WHO funding suspension is dangerous

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Macro-Economic News

Price Watch: Nigerians paid less for Kerosene in December 2020

NBS Report shows that consumers paid less for Kerosene in December than they did in November 2020.

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Average prices of Kerosene, Diesel and Cooking Gas in Nigeria

The latest National Bureau for Statistics (NBS) Price Watch report for the month of December 2020 indicates that the average price per litre paid by consumers for National Household Kerosene reduced by 0.17% from N353.38 in November 2020 to N352.79 in December 2020.

Also according to the report, the average price per gallon paid by consumers for National Household Kerosene reduced by 3.52% from N1,218.50 in November 2020 to N1,175.59 in December 2020.

Price variations across states

  • In the month of December 2020, States with the highest average price per litre of kerosene include; Benue (N436.81), Ebonyi (N425.83) and Taraba (N423.33).
  • However, consumers in Bayelsa (N235.95), Rivers (N302.04) and Delta (N307.69) enjoyed the lowest average price per litre of kerosene.
  • Consumers in Kebbi (N1,534.21), Nasarawa (N1,488.00) and Benue (N1,450.00) paid the highest average price per gallon of kerosene.
  • While consumers in Sokoto (N733.33), Bayelsa (N773.75) and Adamawa (N822.00) on the other hand, paid the lowest average price per gallon of kerosene.

Prices across zones

  • Consumers in South-East zone paid the highest average price for a litre of Kerosene (N377.53), followed by North East (N370.13), North West (N354.66), North Central (N354.44) while consumers in South West(N337.57) and South South (N325.96) paid the lowest average price for a litre of Kerosene.
  • In respect of the average price paid for a gallon of Kerosene, consumers in North West zone paid the highest (N1,197.54), followed by North Central (N1,305.68), South East (N1,220.66), while consumers in South West (N1,161.00), North East (N1,113.25) and South-South(N1,037.60) paid the lowest average price of a gallon of kerosene.

Why this matters

Kerosene has remained an important source of energy for cooking for most families, both in the rural areas and cities. Kerosene is mostly used in rural areas as a source of lighting.

Considering that food and lighting are very essential to life, it is therefore important that the price paid for Kerosene is quite reasonable and as well as affordable for most Nigerians.

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