In real terms, are there really risk-free assets? It is common practice to view treasury bills as risk-free asset, because by virtue of its power to tax and control the money supply, only the government can issue default-free bonds. Even the default-free guarantee by itself is not sufficient to make the bonds risk-free in real terms. The only risk-free asset in real terms would be a perfectly price-indexed bond. Moreover, a default-free perfectly indexed bond offers a guaranteed real rate to an investor only if the maturity of the bond is identical to the investor’s desired holding period. Even indexed bonds are subject to interest rate risk, because real interest rates change unpredictably through time. When future real rates are uncertain, so is the future
price of indexed bonds.



Dear Investor,

Please be informed that Unilever Nigeria Plc rights issue of 1,961,709,167 ordinary shares of 50 kobo each at NGN30 per share opened on Monday the 31st of July 2017 in the ratio of 14 new shares for every 29 shares held by shareholders whose name appeared in the register of members of the company as at 28 June 2017.

Acceptance list opens: Monday, 31 July 2017

Acceptance list closes: Friday, 08 September 2017

The company plans to raise NGN58.85 billion at NGN30 which is a 25.00% discount from the NGN40.00 it closed on Wednesday the 2nd of August 2017.

FOREX NEWS – Euro Rises Against Most Majors – 25 July 2017, 11:44

* Euro Rises Against Most Majors – 25 July 2017, 11:44
The euro strengthened against most major currencies in the Asian session on Tuesday. The euro rose to 1.1663 against the U.S. dollar and 0.8952 against the pound, from yesterday’s closing quotes of 1.1639 and 0.8935, respectively. Against the Swiss franc, the euro edged up to 1.1039 against the Swiss franc, from an early 5-day low of 1.1007. If the euro extends its uptrend, it is likely to find resistance around 1.17 against the greenback, 0.90 against the pound and 1.11 against the franc

*U.S. Dollar Edges Down To 1.2491 Against Canadian Dollar – 25 July 2017, 10:55

The euro dropped against its most major counterparts in European deals on Monday ahead of the European Central Bank policy meeting later this week, with economists expecting it to keep its interest rates and asset purchase program unchanged. The ECB Governing Council will meet in Frankfurt on July 19-20, with investors awaiting the policy statement for any changes in language towards tighter monetary policy. The bank is expected to keep its refi rate at zero percent, marginal lending facility at 0.25 percent and the deposit rate at -0.4 percent. The central bank is expected to continue the monthly bond-buying program of ?60 billion. Analysts expect an announcement on winding down asset purchases to come as soon as September, as Draghi’s remarks at the ECB forum in Sintra appeared to have hinted at possible tweaks to ECB policy in the coming months. Final data from Eurostat showed that Eurozone inflation slowed to a 6-month low in June as estimated. Inflation eased slightly to 1.3 percent in June from 1.4 percent in May. The rate came in line with the flash estimate published on June 30. This was the weakest rate seen so far this year. The European Central Bank targets inflation ‘below, but close to 2 percent’. Meanwhile, European stocks fell slightly despite another record close on Wall Street Friday and positive cues from Asia after Chinese GDP data beat estimates. The euro held steady against its major counterparts in the Asian session. Reversing from an early high of 1.1055 against the Swiss franc, the euro edged down to 1.1025. Continuation of the euro’s downtrend may see it challenging support around the 1.08 zone. The single currency weakened to 1.1435 against the greenback, off its early 5-day high of 1.1475. The next possible support for the euro-greenback pair is seen around the 1.13 mark. The euro edged down to 128.74 against the yen, from a high of 129.15 hit at 6:30 pm ET. If the euro-yen pair extends decline, 126.00 is likely seen as its next support level. The euro hit a 4-day low of 1.4484 against the loonie, off its early high of 1.4515. The euro may challenge support around the 1.43 area. On the flip side, the euro rose to 0.8769 against the pound, from an early low of 0.8745. The euro is seen finding resistance around the 0.885 area. Survey by the Confederation of British Industry showed that British firms said ‘Brexit’ has affected their investment decisions. Over 40 percent of respondents said ‘Brexit’ influenced their decision and 98 percent of them said that the impact has been negative. Looking ahead, Canada existing home sales data for June and New York Fed’s Empire manufacturing index for July are slated for release in the New York session.


Eurozone Growth Likely To Accelerate In Q2 On Wider Trade Surplus – 17 July 2017, 18:13
The rise in the euro-zone’s trade surplus in May indicates that GDP growth likely accelerated in the three months to June and trade is set to continue boosting growth in the coming quarters, Jennifer McKeown, an economist at Capital Economics, said. Official data released on July 14 showed that the seasonally adjusted trade surplus grew to EUR 19.7 billion in May from EUR 18.6 billion in April. The increase in May was mainly driven by a 2.1 percent monthly rise in exports, which outpaced the 1.6 percent increase in imports and left the annual growth of export values at a healthy 9.4 percent, the economist observed. Among countries, the German trade surplus climbed to EUR 20.3 billion in May from EUR 19.8 billion in April, while the French deficit narrowed from EUR 5.6 billion to EUR 4.9 billion – its smallest this year. McKeown noted that the Eurozone trade surplus in June was still smaller than it was this time last year, partly reflecting the rise in oil prices. “Monthly trade volumes data, which are less timely than values data, have shown annual export growth outpacing that of imports this year, in stark contrast to the situation in 2016,” the economist pointed out. Though the monthly goods trade values data are not a great guide to the goods and services trade volumes data used to construct GDP, the latest monthly industrial production and retail sales data suggests that GDP growth may have exceeded Q1’s 0.6 percent rise in the second quarter, the economist said. McKeown expects export growth to rise further in the coming months, with global demand in good health and the euro exchange rate still at a fairly low level by past standards. “Net trade should therefore boost euro-zone GDP growth over the next year or so, although that support is likely to fade by 2019 as the euro appreciates and growth slows elsewhere,” McKeown predicted.
New York Manufacturing Index Falls More Than Expected 17 July 2017, 18:42 – Activity in the New York manufacturing sector grew at a notably slower pace in the month of July, according to a report released by the Federal Reserve Bank of New York on Monday. The New York Fed said its general business conditions index dropped to 9.8 in July from ‘19.8 in June, although a positive reading still indicates growth. Economists had expected the index to fall to 15.0

Crude Oil Holds $46 After Rig Count 17 July 2017, 18:16 – Crude oil futures continued to inch higher Monday morning amid signs of strong demand from China. China’s economy expanded at a steady pace in the second quarter on domestic spending and exports despite measures taken to rein in financial risks. Gross domestic product grew 6.9 percent year-on-year, the same pace of expansion as seen in the first quarter, the National Bureau of Statistics said Monday. The annual growth was forecast to slow to 6.8 percent. Crude oil extended recent gains despite Friday’s report from Baker Hughes data showing the number of active U.S. rigs drilling for oil edged higher by two to 765 rigs this week. WTI light sweet oil was up 8 cents at $46.55 a barrel, staying well away from June’s yearly lows near $42. Among the few economic reports on tap, the New York Federal Reserve’s Empire State Manufacturing Survey for July will be released at 8:30 a.m. Eastern Time today.

Treasury Bills Auction for 19/7/2017 (Enjoy Upfront Interest)

Please be informed that there will be a primary auction of Nigerian Treasury bills on Wednesday, 19th July, 2017 for the following maturities:

91 DAYS 19-OCT-17 36,786,994,000 36,786,994,000
182 DAYS 18-JAN-18 39,175,905,000 39,175,905,000
364 DAYS 19-JUL-18 129,000,000,000 129,000,000,000

Below are the rates in the secondary market obtained from the FMDQ OTC Securities Exchange as at 13th of July, 2017:

Rates in the secondary market in the last one week have remained slightly stable from previous weeks. Due to current market conditions, rates at the primary auction may close around what we have in the secondary market.
Following the table above, the rates at which Capital Bancorp Plc (CBP) will bid at this auction through a licenced Primary Dealer and Market Maker (PDMM) are as follows:

91 days – 13.00%
182 days – 16.50%
364 days – 17.50%

NOTE: Settlement for this auction will be on Thursday, 20th
Contact your Primary Dealer and Market Makers (PDMMs).

Happy to share this: “The ‘Deity’ and ‘Humanity’ of Christ….. “If we diminish either His deity or his humanity, we damage the gospel”.

Romans 1.3

“Concerning His Son Jesus Christ our Lord, who was born of the seed of David according to the flesh,”

“concerning His Son Jesus Christ our Lord,”

The Scriptures are about Jesus Christ our Lord. They are Christ-centered. The gospel is about the person and work of Jesus. The word “concerning” means around. This is the Greek word peri (around) from where we find part of the English words “perimeter” and “periphery.” The gospel not only concerns Jesus Christ but it surrounds Him. It’s all about Him; He is the very substance of the gospel.

Jesus was both God (Lord) and man. The title “Son” shows the unique relationship between the Father and Christ as the Son. This title places Him within the Trinity. This passage reflects God’s estimate of His Son.

“who was born of the seed of David according to the flesh,”

Christ was not only God but also genuine humanity. This phrase demonstrates the weakness of Jesus’ earthly life. Jesus entered into time and space by human birth. We call this His humiliation. He was born in the lineage of David. He was a true human being. This verse declares the humanity of Christ. He was more than human, as we will see in the next verse.

Jesus was born into the royal family of David. This was affirmation of Jesus as Messiah. The words “was born” come from a term meaning to come into being. The idea is that He became something He was not previously. These words imply prior existence. They imply transition from one state to another. The Son of God became the Son of Man without divesting Himself of His deity. Jesus at His birth came into a new condition—membership in the human race. He was eternal God trillions of years previously ad infinitum, but at His birth He became a human being. John used this term in the important verse 1:14
“14 And the Word became flesh and dwelt among us, and we beheld His glory, the glory as of the only begotten of the Father, full of grace and truth.”

“Of the seed of David” means that Jesus had a legal mother and father. He had a real mother but not a real earthly father. Mary was a descendant of David through Solomon’s younger brother Nathan.

“Flesh” refers to the physical body of Christ. “Seed” refers to the genealogy of Jesus. His genealogy harks back to David in ancestry.

God portrays the gospel by both a Person and His work. This Person from eternity was born of a Jewish family of royal lineage. He was also God almighty. If we diminish either His deity or his humanity, we damage the gospel. We value Jesus’ work by His person. If I were to expound on physics, it would be of little value, for I know very little about physics. Jesus’ credentials as Savior rest on His person.

PRINCIPLE: We should not confuse the deity with the humanity of Christ.

We must be careful not to confuse the humanity with the deity of Christ. We cannot mix the two. They stand as genuinely separate categories. Deity is not humanity nor is humanity deity. However, the same Person exists in both the humanity of Christ and the deity of Christ. Christ is one in person.

The reason Jesus came as man was to die in his body for our sins. He became the true mediator between God and man. As man he represents man and as God he represents God in the mediating process.

1 Tim 2: 5 For there is one God and one Mediator between God and men, the Man Christ Jesus . . .

…. There is a difference between “divinity” and “deity.”…… A wonderful piece from Dylnne!

…”Divinity is that which pertains to God. Deity is the state of being God. We can know divinity by perceiving creation. Those who know special revelation (such as the Bible) can know His deity. Divinity does not specify an attribute but the sum of His invisible attributes.”

Romans 1.20

1.20 “For since the creation of the world His invisible attributes are clearly seen, being understood by the things that are made, even His eternal power and Godhead, so that they are without excuse,”

Verses 19 and 20 explain why God reveals His wrath. God provides sufficient evidence of Himself to hold people accountable to revelation. Verse 20 shows how we can perceive God’s “invisible attributes.”

1.20a “For since the creation of the world His invisible attributes are clearly seen,”

God is a spirit (John 4:24) and that makes His attributes invisible. We can see something of the effects of God’s invisible attributes in creation.

Since God is the Creator, we can see those marks of His work “clearly.” What we can see is the reality of His divine essence in general revelation. “Clearly” leaves no doubt about its reality; there is no equivocation here but rather certainty of knowing. Creation cannot show us His love, but it can clearly show His power and order.

1.20b “being understood by the things that are made [material creation],”

We can understand some of God’s attributes by creation—a source of our knowledge, albeit this understanding is limited because it does not give specific information about the gospel. This general revelation not special revelation.

The word “understood” means perceived or comprehended by the intellect. This understanding is the result of the thinking process.

1.20c “even His eternal power and Godhead,”

Two things we can understand about God are His “eternal power” and His “Godhead.” The word “eternal” occurs only here and in Jude 6. God is everlasting, along with all His attributes. Creation is limited, perishable, and contingent (uncertain). God is not limited, perishable, or contingent.

We can translate “Godhead” as divine nature. This is the only occurrence of the Greek word in the New Testament. His divine nature is what makes up what we call God; this includes His personality. God’s essence is the sum of all His attributes.

There is a difference between “divinity” and “deity.” Divinity is that which pertains to God. Deity is the state of being God. We can know divinity by perceiving creation. Those who know special revelation (such as the Bible) can know His deity. Divinity does not specify an attribute but the sum of His invisible attributes.

Revelation of God in creation is more than a pantheistic “spirit in nature”; it is, rather, God’s divine nature.

1.20d “so that they are without excuse,”

People can see God in creation so clearly that to ignore it is indefensible. They are culpable to the light they see in nature. People have no defense for unwillingness to believe.

The Greek word for “without excuse” suggests legal culpability. No one has a defense against the justice of God. There is no exception to this culpability because it is impossible for anyone to look at creation and not see God’s creative power and attributes manifest in creation. No one can plead ignorance of God. They have no apologetic against God. This is stronger than “without excuse.” The idea is that people have no legal defense to justify rejecting the God of creation. All people of all time are defenseless in their argument for atheism or agnosticism.

PRINCIPLE: All people, not only those who know the Bible, are culpable (blameworthy) before God.


All people have a revelation in nature. For every effect, there must be an adequate cause. We are forced to conclude that the tremendous effect of the universe demands a Creator of eternal power and divine attributes. We can trace God from the world around us; we can see His power and majesty in creation. God is justified to deliver His wrath on those with culpability to revelation.

Ps 19:1 “The heavens declare the glory of God; And the firmament shows His handiwork. 2 Day unto day utters speech, And night unto night reveals knowledge. 3 There is no speech nor language Where their voice is not heard. 4 Their line has gone out through all the earth, And their words to the end of the world. In them He has set a tabernacle for the sun, 5 Which is like a bridegroom coming out of his chamber, And rejoices like a strong man to run its race. 6 Its rising is from one end of heaven, And its circuit to the other end; And there is nothing hidden from its heat.”

Western philosophical reductionism shuts out God, purpose, meaning, and value from the “real” world. There is no defense for this if we look at creation. Every effect must have an adequate cause greater than the effect itself.

Happy to share with you this lesson!

Here is the next lesson in the Book of Romans. Enjoy and God bless! Dlynne

Romans 1.18

1.18 “For the wrath of God is revealed from heaven against all ungodliness and unrighteousness of men, who suppress the truth in unrighteousness, ”

Verse 18 introduces the first major section (of Romans 1:18-32). This passage reviews why God’s judgment fell on human beings and why they are under judgment. God never judges without evenhanded process. Verse 18 presents a summary statement of the following argument.

18a “For”

In verse 17 Paul explained how God’s righteousness was revealed; he went on in verse 18 to explain how God’s wrath is revealed.

18b “the wrath of God”

This wrath of God is a universal indictment (formal charge against), as we shall see in future verses. God does not view sin passively. God’s love does not preclude His wrath. The opposite of love is hate, not wrath.

God’s wrath is not loss of self-control for selfish reasons. He never loses his temper. God’s wrath is His opposition to anything contrary to His nature. His wrath, therefore, has a personal dimension. That is why forgiveness is not cheap from God’s viewpoint; the cost of forgiveness was the cross.

People who see the love of God without a proper emphasis on the wrath of God are out of balance biblically. We should never leave the impression that sin does not matter to God. God is not benign about sin. He does not tolerate it.

18c “is revealed from heaven”

God’s wrath is currently being revealed from heaven. Wrath is a matter of revelation. This wrath comes from the presence of God—“from heaven.”

18d “against all”

God’s wrath is against all sin; it is universal with no exceptions.

18e “ungodliness and unrighteousness of men,”

God directs His wrath against two areas: (1) ungodliness and (2) unrighteousness. He points this wrath not against men per se but against their sin. God hates the sin but loves the sinner.

“Ungodliness” (impiety) is lack of reverence towards God. This is sin against God. This sin disregards God. Ungodliness results in unrighteousness.

“Wickedness” is literally unrighteousness. The effect of sin against God results in acts that are not right with God.

Note God’s wrath is against “all” sin, no exceptions. God does not overlook any violation of His character.

18f “who suppress the truth”

The word “suppress” comes from two words: to hold and down. The truth comes to people but they hold it down from affecting their lives. They do not want anything to do with God’s revelation; they have negative volition (act of will) towards truth.

The “truth” here is general truth in creation. It is not the saving knowledge of Christ and His work. However, God revealed enough of Himself to lay blame against those who have negative volition towards the truth that they know.

18g “in unrighteousness,”

This verse uses “unrighteousness” twice, placing more emphasis on the key words in Romans—“right,” “just,” “righteousness,” “to justify,” and “unrighteousness.” “Unrighteousness” here is set in antithesis (opposition) to “righteousness of God” in verse 17. People are not right with God. Their motivation for rejecting revelation is that they do not want to be right with God. They prefer their own way, not God’s way.

PRINCIPLE: God’s wrath is against those who reject revelation.


The fundamental reason God’s wrath comes against man is that he rejects revelation. The underlying principle is that God wants man to know Him. To reject God’s desire to be known causes His wrath.

God’s wrath does not contradict His goodness but it is a natural consequence of it. If God were not angry at sin, He would not be righteous. It would be impossible for God to love us apart from the work of Jesus on the cross (paying for our sin). This is how God keeps His righteousness intact. God never offers us love without justice. His justice was fulfilled at the cross. The gospel is about more than love.

This verse also answers the question “Why are those that never heard the gospel lost?” Every person who has ever existed has received God’s revelation, even if it is only basic truth about God in creation. If people go positive willfully towards God in the truth that they know, then it is God’s responsibility to take the specific gospel message to them.