Global News: Google tipped to start charging users for AI search results
FGN to begin sale of domestic FX-denominated bonds in Q2 2024
Google is rumored to be considering charging a fee to get access to its AI-powered search results in the future.
Our thoughts
This is quite interesting. Google makes a ton of money from Ads revenue (whooping $175billion last year). Ad revenue is calculated based on clicks. ie you see the ad and click to go to the website.
If Google AI (ie Gemini) is as good as we expect it to be, you will have all the info you need without clicking! For businesses, the need to push out ads will also reduce! So basically, there's a chance that releasing their AI search tool will destroy their Ads business. Wahalurrr
To make up the lost revenue? Put it behind a paywall!
Why is google thinking this way? They own over 90% of the search engine market. No one else has this size of a problem.
We mentioned last week that AI is evolving- there will be wins, losses and litigations. It will be a fight to supremacy but investing in tech focused ETFs like ****š makes a lot of sense as we canāt predict the winners or losers in this AI race
African News: Kenya opts to cut spending by 12% to achieve budget balance
In line with the Kenyan president's plan for its national budget, Kenya has opted to lower its expenditure plan for the fiscal year beginning this July by 12 percent to Ksh3.7 trillion ($28.35 billion).
Our thoughts
This is laudable! We don't have history of cutting budgets in Africaš.Ā
President Ruto was quoted as saying 'we are shedding off fat"! We agree! Prudence is key to a growing and sustainable economy. However shedding 12% is significant and should be done with caution.
What sectors will be affected by this cut? What impact will it have on the general economy and people's livelihood? For a country coming out of shaky economic waters, there needs to be a balance between government spendingĀ and frugality.
Why? Government spending drives the economy!
But truly the news out of Kenya is quite hope rising for the East African region and the continent. A couple of recent wins
They are planning to issue Chinese/ Japanese bond (Currency/ reserves diversification).Ā
Despite stock market gains so far, Black rock still thinks Kenya is a buy (Positive investment returnsĀ
For residents, gas prices have come down along with inflation (social stability).
We hope they keep up the energy.
Apartments still available for sale in Nairobi. To get on the train, join the Money Wit Club
Nigerian News: Nigerian Government to begin sale of domestic FX-denominated bonds in Q2 2024
The federal government plans to begin the issuance of domestic bonds denominated in foreign currency starting from the second quarter of this year.
Our thoughts
Quite creative. Currently, Nigerian eurobonds aren't directly accessible to locals in the primary market. ie at the initial sale by the federal government to investors. Local asset managers and investors have to go through their offshore partners as it was important for the funds to be seen as 'coming from offshore'.
This is targeted at attracting diaspora investments to the country, but including domiciliary account balances as a funding option signals a good step in acknowledging the force of capital Nigerians are driving. African funding Africa!
We are curious to know the terms of the first issue- tenor, rate etc. I suspect it would be somewhat structured like the NGN savings bonds- retail sizes (definitely less than $200,000 minimum investment), issued periodically! We wait and see!
I guess this kinda nullifies the rumours of the government converting domiciliary bank balances to Naira doesn't it?
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