Business & Tech News
Uganda to Receive World Bank Funding: In what seems a turn of policy, the World Bank and the French Development Agency (AFD) have announced funding of over $600 million that will be utilised for infrastructure development and waste management in the Ugandan capital of Kampala. In August, a Landslide at a landfill site just outside Kampala, destroyed a settlement killing 35 people after heavy rains. The loan however is an interesting development as just a little over a year ago, in August 2023, the World Bank had announced that it would freeze any loans to Uganda due to their laws prohibiting gay relationships in the country.
Central Bank of Egypt – Rate Unchanged: Egypt’s central bank left its overnight interest rates unchanged, as was anticipated by markets yesterday. The bank stated that inflation pressures had subsided but that economic growth had not yet improved. The lending rate will remain at 28.25%, while the deposit rate is at 27.25%, the bank said in a statement. This was the third central bank meeting in a row where it was decided to leave rates unchanged since a 600 basis point (bps) hike on March 6, that coincided with an $8 billion financial support agreement with the International Monetary Fund. The bank has been trying to improve the stability of the currency via an international asset purchase program that has recently seen some gains.
Telegram Responds to CEO’s Arrest: In his first public statement since he was detained, Telegram founder and CEO Pavel Durov has denied claims that Telegram is “some sort of anarchic paradise” as “absolutely untrue”. Durov called his arrest last week in relation to allegations of insufficient moderation on the messaging app “misguided”. In Mr Durov’s statement, which he published on Telegram, he said holding him responsible for crimes committed by third parties on the platform was both a “surprising” and “misguided approach”. “If a country is unhappy with an Internet service, the established practice is to start a legal action against the service itself.” “Building technology is hard enough as it is. No innovator will ever build new tools if they know they can be personally held responsible for potential abuse of those tools,” he commented in a statement published on Telegram yesterday. “The claims in some media that Telegram is some sort of anarchic paradise are absolutely untrue. We take down millions of harmful posts and channels every day,” he stated.
Chip Makers in Possible Deal: According to a report by Reuters, Qualcomm is in the process of exploring a possible acquisition of part of Intel’s PC design business, this according to two sources familiar with the company. While Qualcomm is mostly known for their mobile chip design and production, they have recently, in collaboration with Microsoft, also produced new super-efficient and powerful processor chips for Microsoft’s new CoPilot+ range of laptops. This may have been the catalyst for Qualcomm to explore the acquisition of PC manufacturing businesses.
Intel, has not seen the expected growth it had forecast and is currently not cash flush and may see this as an opportunity to offload some of its business units in order to create liquidity for further expansion.
Market News
Markets: The US markets were flat yesterday with the NASDAQ and S&P 500 hardly moving on the day while the Dow Jones closed just over half a percent down at 40755. This morning, Japan’s Nikkei continued its downward trend and was down by -0,74%. The Hang Seng in Hong Kong dropped by -0,07%.
Currencies are trading in narrow ranges again this morning, The Dollar is currently trading at 1.1116 against the Euro, at 1,318 against the Pound, and -0,82% softer against the Yen at 142.27 against the Yen. Emerging Market currencies are trading flat against the Dollar this morning, with the rand currently trading at R17.67
Commodities: Gold has gained some momentum again this morning, breaking above the $2500 level and is at $2,519 currently, while Platinum has also gained a bit and is trading at $936 and Palladium also trading upwards at $946. Brent crude is currently at $73.00 while WTI continues to trading below the $70 mark at $69.47 currently.
Other News Today
Tunisian Presidential Election Chaos Continues: Ayachi Zammel, one of only three candidates permitted to stand in next month’s presidential elections in Tunisia, was re-arrested by police yesterday afternoon, only minutes after he had been released from jail by order of a Tunisian Court. President Kais Saied, seems determined to undermine any opposition in the run-up to the 6th October election. Zammel had been arrested on what appears to be trumped-up charges of suspicion of falsifying voter forms. Zammel, in a statement said he faces “restrictions and intimidation” because he is a serious competitor to Saied. He has promised voters that he would rebuild democracy in Tunisia, guarantee freedoms and fix Tunisia’s collapsing economy. Tunisian legal scholars have warned, in a statement on Thursday that the legitimacy of the presidential election will be in jeopardy if the electoral commission does not respect court decisions last week to reinstate three disqualified candidates. They accused President Kais Saied of undoing the democracy that was introduced after the Arab Spring.
Beijing Loans Not a Debt Trap: According to South African President Cyril Ramaphosa, Chinese investments into Africa should not be considered to be a debt trap, but should be seen in the context of a mutually beneficial relationship. The remarks came during the currently ongoing China –Africa Summit where over 50 of African leaders are gathered in China for the summit. China has pledged over $50 billion in new funding to various African nations and developments. It is no secret that Africa’s mineral wealth is of great interest to China, who’s large scale manufacturing relies on for growth. There have also been developments with the establishment of BRICS, where several African countries have joined the association Including South Africa, Egypt and Ethiopia. Ramaphosa said in a statement that “I don’t necessarily buy the notion that when China (grants loans), it is with an intention of, in the end, ensuring that those countries end up in a debt trap or in a debt crisis,”
