Business & Tech News
Suez Canal Extension Completed Boosting Shipping potential:
In a new development on the Suez, that Egypt hopes will boost more cargo volumes, Egypt announced over the weekend that they had successfully tested a new 10 km channel near the southern end of the Suez Canal. Egyptian President Abdel Fattah el-Sisi, had this past week, stated that its revenue from the waterway had plunged due to Yemen’s Houthi militants attacking vessels in the Red Sea, causing shipping companies to select longer more expensive routes due to security concerns.
The Suez Canal Authority said in a statement that during a trial run two ships passed through a new stretch of the canal’s two-way section without incident. The new development was initiated following the 2021 grounding of a container ship, the Ever Given, that blocked the key water transit waterway for almost a week, creating serious backlog of ship traffic. Egypt advanced their planned extension and widening of the second channel in the southern reaches of the canal.
Tunisia Holds Interest Rate:
The Central Bank of Tunisia has announced over the weekend, its decision to maintain its key interest rate at 8%. The current rate being the highest since at least 2006, has been held, amid further easing of the inflation rate and in line with the inflation outlook. Inflation slowed slightly in November to 6.6%, marking the lowest level achieved since December 2021. Meanwhile, the economy grew 1.8% year-on-year in Q3 of 2024, accelerating from a 1% expansion in the previous quarter, marking the highest growth since Q3 of 2022, mainly boosted by agriculture, forestry & fishing output increases. Inflation is expected to average 7% for 2024 and is anticipated to declining to an average of 6.2% in 2025, according to the statement released by the central bank.
Gold Makes Steady Gains:
Gold traded above $2,620 per ounce in early trade this morning with low volumes amid holiday trading. Investors are closely watching the U.S. Federal Reserve’s monetary policy outlook that had turned hawkish but with projections now being challenged by a soft PCE inflation data, suggesting more reductions may well be on the cards, which in turn would benefit non-yielding gold investments. Markets are also preparing for significant policy changes in the coming year, including tariffs, deregulation, and tax reforms, as Trump prepares to take office next month. Meanwhile, gold’s safe-haven appeal remained supported by geopolitical risks from the ongoing Russia-Ukraine conflict and tensions in the Middle East. The precious metal has risen over 27% so far this year, marking its best performance since 2010. Continued buying of gold by central banks is also driving demand and steadily increasing price.
Market News
Markets:
Indices in the US, were closed for the holidays while Asian markets this morning have seen Nikkei close down on its final day of trading for 2024 at 39932, down -0,87% currently, while the Hang Seng fell 49 points or 0.24% to close at 20,041 on Monday, following a muted performance in the prior session. Losses were led by tech, property, and consumers as traders adopted a cautious stance ahead of China’s official PMI data for December, scheduled for release Tuesday.is also Closed.
Currencies:
The US Dollar is currently trading upwards at 1.042 against the Euro, at 1,258 against the Pound, and at 157,77 against the Yen. The Rand is currently trading flat against the US Dollar, with the currency currently trading at R18,67.
Commodities:
- Gold has continued its overall upward trend, with the price currently at $2,622 per ounce after dropping to as low as $2612 on Friday (27 Dec)
- Platinum prices have been trending lower this morning, and is currently trading at $918.80, while Palladium prices have dropped to below $900 and are currently at $895.00
- Brent crude is currently trading at $73.91 currently with WTI trading at $70.74 currently.
- Cocoa futures dropped significantly on Friday to below the key $10000 mark, the lowest prices seen since December 9, and is down around 15% for the week with prices currently at $9,876.08 per ton.
- Coffee prices have also dropped slightly and is at $3.21.72 per pound currently.
Crypto Currencies
- Bitcoin has remained below $100,000, and is currently trading at $93077
- Ether prices have gained some momentum this morning and is trading at $3392.40 currently
(All prices quoted at approximately 07H15 – Central African Time)
Other News in Africa Today
Chad Election Concerns:
Chad’s first parliamentary election in 13 years occurred yesterday with the government claiming as a key step towards ending a military rule. Voting stations closed at 6:00pm local time yesterday and final results are expected to be released only on 31 January 2025. the Central African nation of 18 million people have voted for a new parliament, provincial assemblies and local councils in one of the world’s poorest countries, with the opposition partiesboycotting the vote, claiming concerns over vote rigging. Voter turnout was very low in the capital N’Djamena when polling stations opened on Sunday according to reports, while Election officials put voter apathy down to the “cold weather”.
Opposition parties have urged Chad’s eligible eight million voters to shun elections whose results they said had been decided in advance. The boycott left the field open for candidates aligned with President Mahamat Idriss Deby Itno, who was brought to power by the military in 2021 and then legitimised in a presidential election in May 2024.
DRC Christmas Holiday Attacks Leave Scores Dead:
The Islamic State group-linked ADF rebels have reportedly killed at least 21 people this past week in the conflict-riven eastern Democratic Republic of Congo. The attacks all took place close to the town of Manguredjipa, in an area rich in mineral deposits and regularly targeted by the ADF. Local officials also reported attacks in the village of Robinet, and at the neighbouring village Kodjo in the North Kivu province before Christmas, and then on Christmas Day, ADF fighters “arrived seven kilometers from Manguredjipa in Makele village and killed people. The North Kivu province faces continuous separate rebel insurgency further south, with the Rwanda-backed M23 movement and the DRC’s army locked in fighting all week following the failure of a peace summit in mid-December. Home to vast mineral resources, the eastern DRC has been plagued by infighting between various armed groups for decades.
