Business & Tech News
Egyptian Economic Growth Slows:
Operating conditions in Egypt’s non-oil private sector deteriorated in December, according to the latest economic data, showing output and new orders falling at the sharpest rates in eight months amid inflationary pressure on prices. The headline S&P Global Egypt Purchasing Managers’ Index (PMI) dropped to 48.1 in December from 49.2 in November, its fourth consecutive month of contraction. A reading below 50 indicates a decline in activity. David Owen, a senior economist at S&P Global, commented that: “The non-oil private sector’s anticipated recovery is unlikely to be without its setbacks in 2025.” Businesses faced higher prices and lower demand, leading to the fastest decline in economic operating conditions since last April according to Owen.
This news comes as Egypt is set to receive its first tranche of $1.2 billion from the International Monetary Fund this month as part of an $8 billion funding, according to a statement by Finance Minister Ahmed Kouchouk on Sunday.
Asian Market Update:
The Japanese yen weakened beyond 157.5 per dollar on Monday, close to its lowest levels since July 2024. This has been driven by uncertainty over the timing of Bank of Japan interest rate hikes continues. Bank of Japan’s Governor has stated that the timing of any rate adjustments will depend on Japan’s economic outlook, and has emphasised the need for sustainable wage increases within the economy. The central bank has also taken into account both domestic and global uncertainties. Data released shows Japan’s composite and services PMIs for December were lower, reinforcing a conservative outlook in BOJ policy.
China’s 10-year government bond yield has stabilized above 1.6%, coming within range of record lows, as strong services activity data and expectations of further economic stimulus boosted the outlook. Economic data released indicated that China’s services activity rose to 52.2 in December, up from 51.5 in November, surpassing forecasts of 51.7. This marked the fastest expansion since May, driven by strong domestic demand.
Ghana Averts Government Shut-Down:
A provisional budget has been narrowly passed by Ghana’s parliament that provides for 68.1 billion Ghanaian cedis ($4.65 billion) in funding till end of March 2025. This was confirmed by the Parliamentary Speaker, Alban Bagbin. John Dramani Mahama is set to take office as the West African country’s president next week after winning the Presidential election in December 2024. This will be his second term as President after serving as Ghana’s president from 2012 to 2016.
Commodity Winners and Losers:
Cocoa and coffee were the biggest winners in commodities for 2024 for a second year on a global supply deficit, while steel-making coal ended the year as the worst performer. Looking ahead, global trade tensions are likely to continue to dominate the commodities landscape in 2025. A strong dollar and gold’s appeal as a safe haven for investors are also likely to continue its support of precious metals prices, while oil supply issues will continue to influence prices due to slow down in China’s Economy
. In bad news for chocolate lovers, cocoa nearly tripled in price over 2024, far outpacing gains in other commodities. It hit a record high of $12,931 a metric ton in New York in December due to lower supply expectations for a fourth successive season in West Africa following dry weather. Top cocoa producers Ivory Coast and Ghana have suffered crop losses due to adverse weather, bean disease, smuggling and reduced plantations in favour of illegal gold mining.
Market News
Currencies:
The US Dollar has gained momentum this morning and is currently trading at 1.030,92 against the Euro, at 1.244,38 against the Pound, and at 157.69 against the Yen. The Rand is currently trading a little weaker against the stronger US Dollar, with the currency currently trading at R18.76
Commodities:
- Gold has dropped slightly, with the price currently at $2,630 per ounce.
- Platinum prices have maintained levels above the $920 mark, and is currently trading at $924.80, while Palladium prices have remained below the $900 level and currently trading at $892.00
- Brent crude continues to trade upwards, and currently trading at $76.18 currently with WTI also trading upwards at $73.71 currently.
- Cocoa futures have continued its momentum above the $11000 mark, with prices currently at $11 568.81 per ton.
- Coffee prices are at $3.19.83 per pound currently.
Crypto Currencies
- Bitcoin has seen continued upward direction in prices over the weekend, and seems to be looking to break through the $100 000 level again, and is currently trading at $99559, up 1,31% today.
- Ether prices have also gained almost 1% this morning and is trading at $3675.09 currently.
(All prices quoted at approximately 08H40 – Central African Time)
Other News in Africa Today
M23 Rebels Invade DRC Town:
Reports out of the DRC indicate that the M23 Rebel group, backed by Rwanda, have seized control of the town of Masisi, which is approximately 8-km north of Goma, in eastern Democratic Republic of Congo (DRC). This is the second town captured by the M23 group in just two days, in the North Kivu province region. Since 2021, the M23 rebels have taken control of large parts of eastern DR Congo, displacing hundreds of thousands of people and creating a refugee crisis in the process. Efforts to mediate the ongoing conflict have been led by Angola, with talks between Congolese President Félix Tshisekedi and Rwandan President Paul Kagame recently. However, the negotiations collapsed last month, leaving the region in a state of terror and instability. There has been no official statement released by the government of the DRC on the matter.
Ethiopian Earthquake and Volcano Eruption over one Weekend:
A magnitude 5.8 earthquake struck Ethiopia, in the Afra region, near to the capital “Addis Ababa,” on Saturday (4 January). The epicentre of the earthquake was at a depth of 10 kilometres, according to the Ethiopia Geological Institute (EGI)and the US Geological Survey (USGS). Meanwhile, the Mount Dofan Volcano in the Afar region in Ethiopia has started erupting, with large cracks in the ground also appearing according to the EGI.
Ethiopian authorities have urged thousands of residents to evacuate and move to temporary shelters. Egyptian Geologist at the Cairo University Abbas Sheraqi said on his Facebook page that the seismic activity in Ethiopia could intensify, with tremors potentially serving as precursors. He also warned that volcanic activity might produce more lava and could spread to neighbouring volcanoes such as the Fentale volcano to the south, which is located in a densely populated area. Concerns have also been raised about the safety of several large dams in the region that not only supply water locally but to Egypt as well.
