Business & Tech News
The Global Sovereign Debt Roundtable Meets This Week: Debt defaults, from the aftermath of unnecessary Covid lock-downs, that created economic disasters in many African developmental states has finally crested, with the likes of Ghana, Sri Lanka and Zambia concluding years of painful debt reworks. However, the International Monetary Fund (IMF) and other international financial structures are concerned that a dangerous liquidity shortfall could take its place in many emerging economies – setting back development, and potentially fuelling distrust in governments and Western institutions. The issue, and what to do about it when western countries are increasingly loath to send money overseas, is a key topic at the IMF World Bank autumn meetings taking place in Washington, D.C. this week. Top U.S. Treasury’s Staff have called for new ways to provide short-term liquidity support to low- and middle-income countries to head off debt crises.
Egyptian Fuel Price Spike: The Egyptian government has raised fuel prices this past weekend, by between 10% and 17%, in a move likely to impact the economy and drive price inflation of goods. The decision was made in order to reduce the gap between the selling prices of petroleum products and their high production and import costs, according to a government released statement. The north African State has been gripped by rapidly increasing inflation rates with consumer prices rising daily including a previous 10% increase in fuel prices, and a hike in subway fares and the local currency rate sliding against foreign currencies.
China Cuts Rates Again: The Peoples Bank of China’s (China’s Central Bank), announced today that it had cut two key interest rates to historic lows. This is the latest move by Beijing aims to boost slowing consumer spending in efforts to kick-start the world’s second-largest economy. The cuts follow days after the country released GDP growth numbers indicating its slowest quarterly growth in a year and a half. The Chinese government is targeting annual growth of five percent this year, but that goal is being challenged by weak consumption and a prolonged and debilitating debt crisis in the colossal property sector. The one-year Loan Prime Rate (LPR), which constitutes the benchmark for the most advantageous rates lenders can offer to businesses and households, was cut from 3.35 percent to 3.1%, with the five-year LPR, the benchmark for mortgage loans, cut from 3.85% to 3.6%. Data released on Friday indicated the economy grew 4.6 percent in the third quarter, its slowest rate in a year and a half.
Market News
Markets: Indices in the US closed slightly up on Friday, with the NASDAQ up by 0,09%, the S&P 500 0,66% up and the Dow Jones closing 0,4% up. The Nikkei closed -0,07% up today at 38954, while the Hang Seng has jumped 3,61% this morning after the Central bank cut rates to new lows and is currently at 20804.
Currencies: The US Dollar is currently trading at 1.085 against the Euro, at 1,303 against the Pound, and at 149.61 against the Yen. The rand has weakened slightly today, and is currently trading at R17.64 to the US dollar.
Commodities:
- Gold prices have maintained above the $2700 mark and is currently trading at $2,730
- Platinum prices have gained momentum above the $1000 mark and is at $1020 currently, with Palladium also gaining momentum and trading at $1085 currently
- Brent crude is currently trading lower at $73.41 with WTI also trading lower at $69.11 currently.
- Cocoa prices have dropped more than 4% this morning and is currently trading at 5591 pounds,
(All prices quoted at 09H00 CAT)
Other News in Africa Today
Mozambique Opposition Murders: Suspicions presidential candidate Venancio Mondlane, died alongside party official Paulo Guambe. They were gunned down late on Friday night by attackers chasing the car they were travelling in. Their deaths come as the Eastern African country waits for the results of the contested 9 October election. They are due to be released on 24 October, with provisional results showing a likely outcome of a win for the incumbent ruling party Frelimo, which has governed Mozambique since its independence from Portugal in 1975. Doubts about the integrity of the election as not complying with expectations of being free and fair have been raised by international election observers. The action has caused further tensions ahead of planned protests against the recently held election results.
Tanzanian Opposition Attack: In what seems to be a growing trend in African political elections, the leading Tanzanian opposition party, CHADEMA, saw one of its senior officials, Aisha Machano, their Publicity Secretary abducted by several unidentified people, over the weekend. Machano was severely beaten and injured before being dumped in a local forest, according to a statement by her party on Sunday. This is the second political abduction incident to occur after a similar abduction and murder of another of its party leaders barely a month ago. The reported cases, are hurting the reformist image of President Samia Suluhu Hassan. Rights campaigners say Hassan’s government is deliberately targeting opponents ahead of local elections in December this year and a national vote in 2025. The government has denied these accusations.
South African – Taiwan Tension: The South African ANC government, has instructed Taiwan to move its unofficial embassy out of the administrative capital of Pretoria, in a move that’s seen as appeasing it’s ally China. The South African foreign ministry said on Friday that it had given Taiwan a “reasonable” timeframe of six months to relocate its “liaison office” to the commercial hub of Johannesburg. The decision was communicated to China last month by South African Foreign Minister Ronald Lamola when he was in China for the China-Africa summit, the ministry said in a statement. South Africa had severed formal diplomatic ties with Taiwan — over which China claims sovereignty — in 1997, but has an unofficial diplomatic relationship with it, as do many countries.