Business & Tech News
Suez Canal Revenue Crash for Egypt:
Egyptian President Abdel Fattah al-Sisi, on Thursday confirmed that pirate activities and ship attacks, in the Red Sea and other regional geopolitical challenges, had cost Egypt around $7 billion in revenues from the Suez Canal in 2024.
Egyptian water portage revenues in the Suez Canal, were down by over 60% of the canal’s revenues in 2024 compared with 2023. Houthi fighters in Yemen have carried out nearly 100 attacks on ships crossing the Red Sea since November, apparently in solidarity with Palestinians in Israel’s more than year-old war in Gaza. The attacks have forced shipping companies to divert vessels from the Suez Canal and to utilise longer and costlier routes around Africa, that has disrupted logistics in global trade by delaying deliveries and pushing up transport costs.
Egypt Holds Interest Rate:
The Central Bank of Egypt has kept its benchmark interest rate unchanged at 27.25%. This was announced after its December 2024 meeting, making it ten consecutive months of record-high borrowing costs in the Egyptian monetary system. The move, while expected, aligns with efforts to control inflation, which has declined to 25.5% in November from 26.5% in October, supported by falling food prices and restrictive monetary policies. Core inflation also eased to 23.7% in November from 24.4% in October. Despite these improvements, inflation remains well above the bank’s target rate of 7%. The Central bank of Egypt (CBE), together with government have introduced fiscal consolidation measures, including higher fuel prices and other administratively priced items such as energy, that have exerted upward pressure on inflation. The CBE extended its inflation target horizon to the fourth quarters of 2026 and 2028, aiming for the 7% inflation rate.
Toyota Production Dips Again:
Global Production for Toyota, decreased for the tenth consecutive month in November, the Japanese carmaker announced on Wednesday. While it has seen an increase in global sales for a second consecutive month, based on higher demand in the United States and China, the ongoing decrease in production is concerning. Toyota produced 869,230 vehicles globally in November, a decrease of -6.2% from November 2023. This is greater than the fall in October of -0,8%. Toyota’s U.S. output was down 11.8%, making a slow recovery, while production in China dropped by -1.6%, which was however an improvement on the -9% decline seen in October.
Market News
Markets:
Indices in the US, closed pretty flat yesterday with the NASDAQ closing down by –0,13%, the S&P 500 was marginally down -0,04% and the Dow Jones closing slightly up by 0,07%. Asian markets this morning have seen Nikkei close up by almost 2% and is at 40281 currently, while the Hang Seng is Closed today.
Currencies:
The US Dollar is currently trading upwards at 1.040 against the Euro, at 1,252 against the Pound, and at 157,79 against the Yen. The Rand value dropped further this morning, with the currency currently trading at R18,68 to the US dollar.
Commodities:
- Gold has continued its upward trend, with the price currently at $2,635 per ounce
- Platinum prices have been flat this morning, and is currently trading at $945, while Palladium prices dropped overnight and are currently at $909.00
- Brent crude is currently trading at $73.25 currently with WTI trading at $69.65 currently.
- Cocoa has seen a drop in prices, and is currently selling at $10,876 per ton.
- Coffee prices have also dropped and is at $3.22 per pound currently.
Crypto Currencies:
- Bitcoin has remained below $100,000, and is currently trading at $95900
- Ether also saw prices drop this week and is trading at $3374 currently
(All prices quoted at approximately 09H15 – Central African Time)
Other News in Africa Today
Mozambique Prison Break Amidst Protest Chaos:
According to reports thousands of prisoners have escaped from the central prison in Mozambique. The prisoners took advantage of ongoing political unrest triggered by disputed election results, according to local police. Details released by the Police Chief, Bernardino Rafael, indicate that 33 people were killed and 15 injured in clashes with the prison guards.
According to Rafael, 150 fugitives have since been recaptured. Protests erupted on Monday in the capital, Maputo, and other towns, in response to Mozambique’s highest court giving its confirmation of the winner of the Presidential elections, being the ruling Frelimo party. Chief Rafael stated that groups of protesting dissidents, had approached the prison in the capital Maputo on Wednesday. Prisoners used the unrest to knock down a wall and escape, he said.
