IMF says global public debt to top $100 trillion, growth may accelerate
==========

Global public debt is projected to exceed $100 trillion in 2024; IMF forecasts debt to reach 93% of global GDP by end of 2024 and approach 100% by 2030; Debt levels could rise due to political sentiment favoring increased spending; U.S. presidential candidates promise new tax breaks and spending, potentially adding $7.5 trillion (Trump) and $3.5 trillion (Harris) to federal deficits; IMF warns that actual debt outcomes may exceed projections by 10%; A 'severely adverse scenario' could push global debt to 115% of GDP in three years; Current fiscal consolidation efforts are deemed insufficient; U.S. fiscal 2024 deficit expected to be $1.8 trillion, over 6.5% of GDP; Countries like Brazil, Britain, France, Italy, and South Africa may face costly consequences from rising debt.

#Imf #GlobalDebt #Gdp #UsEconomy #FiscalPolicy #Spending #Deficit #Politics #EconomicForecast #FinancialStability

https://www.cnbcafrica.com/2024/imf-says-global-public-debt-to-top-100-trillion-growth-may-accelerate/


South African rand rises after U.S. data fuels Fed rate cut bets
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South Africa's rand strengthened to 17.4575 against the dollar on Oct 11, 2024, up 0.4% after U.S. inflation data raised bets for a Federal Reserve rate cut next month. Jobless claims increased, leading to moderated expectations for larger cuts. Adam Phillips from Umkhulu Treasury noted that jobless claims helped the rand recover. The local focus is now on an inflation-linked bond auction scheduled for later that day, which Andre Cilliers from TreasuryONE indicated will provide insights into inflation expectations. The Top-40 index rose 0.4%, and the yield on South Africa's 2030 government bond fell 7 basis points to 9.07%.

#SouthAfrica #Rand #FederalReserve #InterestRates #Inflation #Economy #Currency #Bonds #JoblessClaims #FinancialMarkets

https://www.cnbcafrica.com/2024/south-african-rand-rises-after-u-s-data-fuels-fed-rate-cut-bets/


South African Markets - Factors to watch on Oct 11
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Scheduled economic event includes South African inflation-linked bond auction; South African rand firmed against the dollar on Oct 10 after U.S. inflation data showed a slight decline in September; Johannesburg Top-40 index closed little changed; Asian shares headed for first weekly loss in five; Wall Street main indexes closed lower on Oct 10; Gold prices climbed on Oct 11 amid expectations for a Federal Reserve rate cut; Key stories include township malls thriving despite high rates, Exxaro targeting manganese assets, and warnings of disruption at OR Tambo due to SARS delays.

#SouthAfrica #Markets #Economy #Inflation #Stocks #Gold #Currency #BondAuction #Exxaro #Sars

https://cnbcafrica.com/2024/south-african-markets-factors-to-watch-on-oct-11/


South African Markets - Factors to watch on Oct 3
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Scheduled economic events include S&P Global Whole Economy PMI for September; South African mining executives gather for an annual industry conference; SPAR appoints Moegamat Reeza Isaacs as CFO effective Jan. 1, 2025; South African rand weakened against a stronger dollar; Johannesburg Stock Exchange's Top-40 index closed about 0.6% higher; Japanese stocks rose as monetary policy tightening risk faded; S&P 500 ended little changed amid Middle East tensions; Gold prices stable ahead of U.S. economic data.

#SouthAfrica #Economy #Markets #Spar #Pmi #Rand #StockExchange #Gold #S&p500 #Mining

https://www.cnbcafrica.com/2024/south-african-markets-factors-to-watch-on-oct-3/


East and Gulf Coast ports strike, stranding billions in trade and threatening U.S. economy
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Approximately 50,000 ILA union longshoremen began a strike at East Coast and Gulf Coast ports at 12:01 a.m. ET on October 1, 2024, marking the first strike since 1977; the strike affects 14 major ports from New England to Texas, handling 43%-49% of U.S. imports; the ILA rejected a nearly 50% wage hike offer over six years from USMX; the strike could cost the U.S. economy $3.78 billion for a one-week duration; the ports handle $3 trillion in annual trade; the Biden administration is involved in negotiations; the strike impacts critical industries including pharmaceuticals and retail; the last ILA strike in 1977 saw support from the ILWU union; the Teamsters expressed solidarity with the ILA.

#Strike #Ports #Economy #Trade #Labor #Union #Ila #Usmx #Biden #Shipping

https://www.cnbcafrica.com/2024/east-and-gulf-coast-ports-strike-stranding-billions-in-trade-and-threatening-u-s-economy/


Where Are Laid Off Tech Employees Going? | CNBC Marathon
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Mass layoffs in the tech industry are ongoing, with 42,324 tech employees laid off in 2024, surpassing 2023 figures; Jeff Shulman from the University of Washington notes a dramatic shift in the sector; a booming AI market saw over $12 billion in investments in Q1 2024, up from $4.5 billion in 2023; Canada opened a pilot program on July 16, 2023, allowing 10,000 H-1B visa holders to apply for a three-year open-work permit, providing relief for those facing deportation after layoffs.

#TechLayoffs #H1bVisa #AiMarket #CanadaImmigration #JobMarket #2024 #UsEconomy #ForeignWorkers #BusinessNews #Migration

https://www.cnbcafrica.com/2024/where-are-laid-off-tech-employees-going-cnbc-marathon/


Why Men Are Leaving The Workforce
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10.5% of men aged 25-54, approximately 6.8 million men, are not working or seeking employment; this is a significant increase from 2.5% in 1954; the article explores reasons for this trend and its potential economic impact; chapters include reasons for non-participation (1:29), economic impact (6:05), and proposed solutions (8:02); produced by Juhohn Lee, edited by DeLon Thornton, with animation by Mallory Brangan and supervising producer Lindsey Jacobson.

#Workforce #Economy #Employment #Men #Trends #Statistics #Us #LaborMarket #Nonparticipation #Solutions

https://www.cnbcafrica.com/2024/why-men-are-leaving-the-workforce/


African Markets - Factors to watch on Sept 19
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U.S. Federal Reserve announced a 50-basis-point rate cut on Sept 19, 2024; South African rand reached a near 14-month high on Sept 18, 2024; Kenyan shilling fell against the dollar on Sept 18, 2024; Standard Bank Mauritius to support small to mid-sized businesses; Botswana awarded Giyani Metals a 15-year mining license; Ghana's economy grew by 6.9% year-on-year in Q2 2024, the fastest in five years.

#AfricanMarkets #Economy #FederalReserve #SouthAfrica #Kenya #Botswana #Ghana #StandardBank #Mining #Currency

https://www.cnbcafrica.com/2024/african-markets-factors-to-watch-on-sept-19/


Kenyan shilling unchanged against dollar, LSEG data shows
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On September 11, 2024, the Kenyan shilling remained stable against the U.S. dollar, quoted at 128.50/129.50, according to LSEG data; this stability has persisted for about a month; the currency had previously rallied in early 2024 due to reduced default concerns on a $2 billion Eurobond maturing in June; however, it lost momentum starting in April; reporting by Hereward Holland, editing by Alexander Winning.

#Kenya #Currency #Shilling #Dollar #Lseg #Eurobond #Finance #ExchangeRate #Nairobi #Stability

https://www.cnbcafrica.com/2024/kenyan-shilling-unchanged-against-dollar-lseg-data-shows/


South African Markets - Factors to watch on Sept 9
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Scheduled economic events on Sept 9 include Treasury bill auction, offshore trading in bonds and equities, Sun International half-year earnings, Avi annual results, and Land Bank briefing on default agreement; South African rand slipped on Sept 6 after U.S. data indicated no major Fed rate cut; benchmark government bond reached almost three-year high; Asian share markets declined on Sept 9 due to U.S. economic downturn concerns; U.S. stocks fell on Sept 6 amid labor market slowdown; gold prices remained flat as investors awaited U.S. inflation data; notable South African news includes Transnet's 11 bln rand tender accounting hurdle and JSE's main board split approval.

#SouthAfrica #Economy #Markets #FederalReserve #Rand #Bonds #Gold #Inflation #Transnet #Jse

https://www.cnbcafrica.com/2024/south-african-markets-factors-to-watch-on-sept-9/


The peak interest rate era is over. Here’s what investors are watching
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In September 2024, the U.S. Federal Reserve is expected to cut key rates, joining other central banks like the European Central Bank and the Bank of England; Analysts predict three 25 basis point cuts by the Fed before year-end; Fed Chair Jerome Powell indicated a shift in policy focus at the Jackson Hole symposium; European stocks have rebounded nearly 10% in 2023; The S&P 500 index is up 17% in 2024; Market volatility is expected due to geopolitical factors and corporate earnings; Analysts suggest equities will be the preferred asset class moving forward; Currency markets will focus on inflation and rate expectations; Rabobank forecasts four Fed rate cuts between September and January; The outcome of the U.S. election could impact Fed policy.

#InterestRates #FederalReserve #Equities #CentralBanks #Inflation #CurrencyMarkets #EconomicGrowth #MarketVolatility #Investors #FinancialNews

https://www.cnbcafrica.com/2024/the-peak-interest-rate-era-is-over-heres-what-investors-are-watching/


South African Markets - Factors to watch on Sept 2
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On Sept 2, 2024, South Africa's Johannesburg Stock Exchange will release data on foreign bond and stock transactions from the previous week; the government will hold its weekly Treasury bill auction; the manufacturing sector's purchasing managers' index for August will be published; RCL Foods reported a 31% increase in full-year profit; Transnet will release its full-year financial results; AVI Ltd will report its full-year results. The rand remained stable against the dollar, which was buoyant, and the Top-40 index closed down 0.64%. Wall Street saw a rise with the Dow reaching an all-time high, influenced by expectations of a modest interest rate cut by the Federal Reserve in September. Gold prices dipped as the dollar strengthened, with investors awaiting U.S. jobs data.

#SouthAfrica #Economy #StockMarket #TreasuryBills #RclFoods #Transnet #AviLtd #Rand #GoldPrices #FederalReserve

https://www.cnbcafrica.com/2024/south-african-markets-factors-to-watch-on-sept-2/


South African rand softens, focus on Fed rate path
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The South African rand weakened to R17.90 against the dollar, down 0.4% in early trade on August 22, 2024; Andre Cilliers, a currency strategist at TreasuryONE, noted the rand's decline amid expectations of U.S. economic data and Federal Reserve Chair Jerome Powell's speech at the Jackson Hole Economic Symposium; Federal Reserve minutes indicated a likely interest rate cut in September; South Africa's benchmark 2030 government bond yield remained unchanged at 9.12%.

#SouthAfrica #Rand #FederalReserve #InterestRates #Economy #Currency #JacksonHole #BondYield #EmergingMarkets #EconomicData

https://www.cnbcafrica.com/2024/south-african-rand-softens-focus-on-fed-rate-path/


South African rand firms on improved sentiment, focus on US data
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The South African rand firmed in early trade on Wednesday, trading at 18.41 against the dollar, about 0.45% stronger than its previous close. Risk sentiment improved and EM currencies all show some gains. The U.S. jobless claims number on Thursday will be in focus for confirmation of the weakening U.S. labor market. South Africa's net foreign reserves rose to $59.165 billion at the end of July. South Africa's benchmark 2030 government bond was also firmer in early deals, with the yield down 2.5 basis points to 9.35%.

#SouthAfricanRand #UsData #RiskSentiment

https://www.cnbcafrica.com/2024/south-african-rand-firms-on-improved-sentiment-focus-on-us-data/


EM stocks recover after bruising selloff, dollar recovery weighs on currencies
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Emerging market stocks recouped losses after a selloff, but gains were limited due to a stronger dollar and concerns over global economic growth. MSCI's index of emerging market stocks rose 1.2% after its worst day in over two years. Investors are pricing in an 80% chance of a 50 basis point interest rate cut from the Federal Reserve in September. The Japanese yen slipped, but the U.S. dollar rebound continued to weigh on emerging market currencies. Turkey's lira touched a record low against the dollar. Saudi Aramco rose after reporting a second-quarter net profit of 109.01 billion riyals. Central European currencies weakened against the euro. The International Monetary Fund expressed commitment to Bangladesh after Prime Minister Sheikh Hasina resigned and fled the country. Kenya's shilling edged down ahead of a monetary policy announcement.

#EmergingMarkets #Stocks #Dollar #GlobalEconomy #InterestRates #Currencies #Lira #SaudiAramco #Euro #InternationalMonetaryFund #Bangladesh #Kenya

https://www.cnbcafrica.com/2024/em-stocks-recover-after-bruising-selloff-dollar-recovery-weighs-on-currencies/


The popular ‘carry trade’ is unwinding — and economists fear Fed rate cuts could make matters worse
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Economists at TS Lombard warn that rapid interest rate cuts from the Federal Reserve could worsen the global 'carry trade' unwind; Carry trades involve borrowing in a currency with low interest rates and reinvesting in higher-yielding assets; Market participants are aggressively rolling back on carry trades following a global sell-off in risk assets; Stock markets in Europe are unsettled amid concerns of a US recession and the unwind of carry trades; Traditional safe haven assets like the yen and Swiss franc have surged as investors seek to unload carry trades; HSBC strategists warn of a 'triple whammy' of concerns: carry trade unwind, AI monetization, and a US recession; Economists hope for a coordinated message from the Bank of Japan and the Fed to soothe market nerves; The Japanese yen has risen sharply against the US dollar in recent weeks; Economists at TS Lombard say global assets look exposed and the carry trade has reawakened with a vengeance.

#CarryTrade #FederalReserve #InterestRates #MarketParticipants #RiskAssets #StockMarkets #Yen #SwissFranc #UsRecession #BankOfJapan #Hsbc #GlobalAssets

https://www.cnbcafrica.com/2024/the-popular-carry-trade-is-unwinding-and-economists-fear-fed-rate-cuts-could-make-matters-worse/


South African rand, stocks sink as US recession fears hit riskier assets
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South African stocks and the rand sank in early trade on Monday as global investor sentiment soured towards riskier assets due to growing fears that the United States could be heading for recession; At 0723 GMT, the rand traded at 18.50 against the dollar, more than 1.2% weaker than its previous close; On Johannesburg Stock Exchange, the Top-40 index was down about 2.5% in early trade, mirroring a sell-off on global stock markets; Markets have been hit by Friday’s weak U.S. July payrolls report, which showed the unemployment rate had risen to 4.3%, driving concerns that the world’s biggest economy could be heading for a recession; Traders are pricing in a more than 70% chance that the Federal Reserve will cut interest rates by a full 50 basis points in September to rescue growth, compared with an 11.5% chance a week earlier, according to the CME FedWatch tool.

#SouthAfricanRand #Stocks #UsRecession #GlobalStockMarkets

https://www.cnbcafrica.com/2024/south-african-rand-stocks-sink-as-us-recession-fears-hit-riskier-assets/


South African rand gains, focus on US inflation data
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The South African rand gained in early trade on Friday, trading at 18.26 against the dollar, about 0.6% stronger than its previous close. The U.S. personal consumption expenditure data for June, the Fed's favored measure of inflation, is due later on Friday and could give hints on the timing of interest rate cuts in the world's biggest economy. Data out of the U.S. on Thursday showed that the economy grew faster than expected in the second quarter, but inflation pressures subsided, leaving intact expectations of a September rate cut. The rand often takes cues from global drivers such as U.S. economic data and monetary policy in addition to local factors. On the Johannesburg Stock Exchange, the blue-chip Top-40 index was little changed in early trade. South Africa's benchmark 2030 government bond was slightly stronger in early deals, as the yield slipped 2.3 basis points to 9.452%.

#SouthAfricanRand #UsInflationData #FederalReserve #InterestRate #UsEconomicData #MonetaryPolicy #JohannesburgStockExchange #GovernmentBond

https://www.cnbcafrica.com/2024/south-african-rand-gains-focus-on-us-inflation-data/


South African rand weaker, focus on US economic data
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The South African rand weakened in early trade on Thursday, trading at 18.42 against the dollar, about 0.2% weaker than its previous close. Investors are awaiting U.S. economic data readings, including gross domestic product and personal consumption expenditure data, which could provide hints on the future interest rate path of the U.S. economy. Andre Cilliers, currency strategist at TreasuryONE, expects the rand to possibly test the R18.50 mark in the current market conditions. Locally, investors will also be watching South Africa's producer inflation figures for June. South Africa's benchmark 2030 government bond was slightly stronger in early deals, with the yield slipping 0.2 basis point to 9.5%.

#SouthAfricanRand #UsEconomicData #InterestRates #Inflation #GovernmentBond

https://www.cnbcafrica.com/2024/south-african-rand-weaker-focus-on-us-economic-data/


South African Markets - Factors to watch on July 25
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Statistics South Africa will publish the country’s producer inflation figures for June; The South African rand recouped some losses against a weaker dollar on Wednesday; The Top-40 index on the stock market was last down 0.2%; Asian shares were hammered on Thursday as a slump in global tech stocks sent investors fleeing into less risky assets; Gold prices fell nearly 1% on Thursday; Some of the main stories out in the South African press include SA's bid to hang on to its Agoa trade benefits and the slowly turning tide for distressed SA household finances

#SouthAfricanMarkets #EconomicEvents #EquityMarket #CurrencyMarket #ProducerInflation #InterestRateCut #StockMarket #AsianShares #TechStocks #GoldPrices #SouthAfricanPress

https://www.cnbcafrica.com/2024/south-african-markets-factors-to-watch-on-july-25/


African Markets - Factors to watch on July 24
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Zambia Finance Minister Situmbeko Musokotwane to present the country’s mid-year budget review; Asian stocks were subdued on Wednesday after lacklustre earnings from U.S. tech behemoths Tesla and Alphabet dented sentiment; Oil prices rebounded on Wednesday, snapping three straight sessions of decline, as falling U.S. crude inventories and growing supply risks from wildfires in Canada boosted prices; The South African rand weakened on Tuesday, as investors looked towards June inflation data due on Wednesday and markets watched for developments in the U.S. presidential race; Nigeria’s central bank raised its benchmark interest rate for the fourth time this year; Nigerian lawmakers passed legislation to more than double the minimum wage to 70,000 naira ($44.16) a month; Nigeria’s police chief warned against Kenyan-style protests on Tuesday; Kenya’s shilling weakened against the dollar on Tuesday; Kenya expects the International Monetary Fund to review its revised fiscal repair plan at the end of August; Kenya’s police fired tear gas to prevent scuffles between groups of protesters and government supporters in the capital Nairobi on Tuesday; Ugandan security forces detained dozens of young people on Tuesday, as they took part in a banned protest rally in downtown Kampala against official corruption and alleged human rights abuses; Australia’s Peak Rare Earths said on Wednesday Chinese miner Shenghe Resources would acquire a 50% stake in an U.K.-based firm that owns 84% of its Ngualla project in Tanzania; Ghana’s finance minister raised the country’s 2024 growth forecast on Tuesday and said the West African nation was rebounding faster than expected from its worst economic crisis in a generation; Botswana is proposing a law that will ask mining companies, once granted a licence, to sell a 24% stake in mines to locals if the government does not exercise its option to acquire the shareholding

#AfricanMarkets #Economy #Finance #OilPrices #SouthAfrica #Nigeria #Kenya #Uganda #Tanzania #Ghana #Botswana

https://www.cnbcafrica.com/2024/african-markets-factors-to-watch-on-july-24/


South African Markets - Factors to watch on July 24
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Statistics South Africa will publish the country’s June inflation figures; Vodacom Group reported a 1.5% rise in its quarterly revenue; The South African rand weakened on Tuesday; On the Johannesburg Stock Exchange, the blue-chip Top-40 index closed 0.24% higher; Asian stocks were subdued on Wednesday; Wall Street’s main indexes ended slightly lower on Tuesday; Gold prices inched higher on Wednesday; Some of the main stories out in the South African press: SA banks stage multibillion-rand rally; Ramaphosa signs Climate Change Bill into law

#SouthAfricanMarkets #Inflation #VodacomGroup #SouthAfricanRand #JohannesburgStockExchange #AsianStocks #WallStreet #GoldPrices #SaBanks #ClimateChangeBill

https://www.cnbcafrica.com/2024/south-african-markets-factors-to-watch-on-july-24/


How AI And Automation Are Taking Over Grocery Stores And Drive-Thru Lanes
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The food industry is investing in AI technology to lower labor costs and improve sales. The American consumer is pulling back on spending, and rising food and labor costs are driving the need for automation. The industry is shifting to stay competitive and take advantage of changing consumer tastes. The article discusses the digitization of food retail, the risks and rewards of using robots, and what the future holds. The changes include fully autonomous fast-food chains and smart carts in grocery store parking lots. The article also mentions the production team and provides additional footage credits. The article was published on Mon, 15 Jul 2024 16:01:01 GMT.

https://www.cnbcafrica.com/2024/how-ai-and-automation-are-taking-over-grocery-stores-and-drive-thru-lanes/


South African rand stable as markets await US interest rate hints
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The South African rand was little changed in early trade on Tuesday, trading at 18.1300 against the dollar. Markets are awaiting Federal Reserve Chair Jerome Powell's testimony in Washington and U.S. June inflation data for clues on the country's future interest rate path. Analysts are already pricing in two rate cuts this year in response to softer U.S. economic and labor data. South Africa's benchmark 2030 government bond was slightly stronger in early deals, with the yield down 1 basis point at 9.74%.

#SouthAfricanRand #UsInterestRate #FederalReserve #JeromePowell #InflationData #EconomicPolicy

https://www.cnbcafrica.com/2024/south-african-rand-stable-as-markets-await-us-interest-rate-hints/


South African Markets - Factors to watch on July 5
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The South African rand extended its gains against the dollar on Thursday. The Top-40 index closed more than 0.4% higher. Asian share markets scaled new highs on Friday. The S&P 500 index and Nasdaq rose on Wednesday. Gold prices firmed on Friday. Bank of America says GDP to grow 2% if Eskom maintains momentum. Former Tongaat CFO denies responsibility for accounting fraud.

https://www.cnbcafrica.com/2024/south-african-markets-factors-to-watch-on-july-5/


South African Markets - Factors to watch on July 4
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South African assets gained on Wednesday, lifted by optimism over comments by the Federal Reserve chair that reinforced expectations that U.S. interest rate cuts were not far off. Asia stocks hit 27-month highs on Thursday as softer U.S. data narrowed the odds on a September rate cut there, boosting bonds and commodities while dragging on the dollar. Gold prices eased on Thursday but hovered near a two-week high hit in the previous session after softer-than-expected U.S. economic data fuelled hopes that the Federal Reserve could cut interest rates as soon as September. Some of the main stories out in the South African press: Bidvest to end 26-year bank journey, Leon Schreiber extends temporary concession for foreign nationals, Global giants are ditching SA’s massive gas find amid frustration with govt, insiders say.

https://www.cnbcafrica.com/2024/south-african-markets-factors-to-watch-on-july-4/


South African Markets - Factors to watch on June 14
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South Africa's National Assembly will hold its first sitting after last month's election. South Africa's government will hold its weekly auction of inflation-linked bonds. The South African rand edged lower on Thursday. The Top-40 index closed 1% lower. Japanese shares rose on Friday. The S&P 500 and Nasdaq registered record closing highs. Gold prices edged up on Friday. Some main stories out in the South African press: S&P says lack of consensus in ANC to govern with DA risks an unstable government. ANC pushes to secure Ramaphosa's re-election ahead of parliament sitting.

https://www.cnbcafrica.com/2024/south-african-markets-factors-to-watch-on-june-14/


African Markets - Factors to watch on June 4
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Zambia's bondholders to vote on $3 billion restructuring deal. Uganda's central bank announces benchmark lending rate decision. Asian share markets weaken as U.S. manufacturing activity weakens. Oil prices ease amid cautious demand outlook. South Africa's rand, stocks, and bonds gain on coalition deal prospects. Kenya's shilling steady supported by hard-currency inflows. South Korea to cooperate with African nations for critical minerals supply. Britain plans to deport asylum seekers to Rwanda. Nigeria's main labour unions begin indefinite strike over minimum wage. Somalia threatens to expel Ethiopian troops over disputed port deal. Nigeria's central bank revokes banking license of Heritage Bank. Tanzania and Ethiopia sign loan accords with South Korea for access to Africa's mineral resources.

#AfricanMarkets #Zambia #Uganda #AsianShareMarkets #OilPrices #SouthAfrica #Kenya #SouthKorea #Rwanda #Nigeria #Somalia #Tanzania #Ethiopia

https://www.cnbcafrica.com/2024/african-markets-factors-to-watch-on-june-4/


Fed's Waller sees some progress on inflation, no rate hike needed
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Federal Reserve Governor Christopher Waller stated that the latest inflation data is "reassuring" and that the U.S. central bank's policy rate is set appropriately. Waller believes that further increases in the policy rate are probably unnecessary as the data suggests that inflation isn't accelerating. He noted that the labor market remains strong and while consumer price inflation slowed in April, the progress was modest. Waller also mentioned signs of moderation ahead, such as flat retail sales in April and rising delinquencies on credit cards and auto loans. However, he stated that he would need to see several more months of good inflation data before supporting an easing in the stance of monetary policy. The Fed has kept its benchmark policy rate in the 5.25%-5.50% range since last July. Traders expect the central bank to deliver a first rate cut in September and see better-than-even odds of a second cut in December.

#FederalReserve #Inflation #InterestRates

https://www.cnbcafrica.com/2024/feds-waller-sees-some-progress-on-inflation-no-rate-hike-needed/


Why the Fed keeping rates higher for longer may not be such a bad thing
==========

Higher interest rates are not having a substantially negative impact on the economy. The Fed is not expected to cut rates in the near future, but there may be potential for additional rate hikes if inflation doesn't ease. The impact of higher rates on profit margins and consumer behavior will be revealed during the current earnings season. Higher rates can be a good sign if associated with growth. The Fed's monetary policy may not have as much influence on the economy as believed. Rates do matter in financial markets and can affect economic conditions. The Fed's current projection of a 'neutral' rate at 2.6% is unrealistic, and the neutral rate could be as high as 3.5%. The national debt has increased significantly since the COVID-19 pandemic, but fiscal largesse has masked the impact of higher rates. However, higher rates are starting to affect consumers, particularly low-income earners. There may be a need for the Fed to eventually lower rates to alleviate the burden on consumers.

#UsFederalReserve #InterestRates #Economy

https://www.cnbcafrica.com/2024/why-the-fed-keeping-rates-higher-for-longer-may-not-be-such-a-bad-thing/


Fed Chair Powell says there has been a ‘lack of further progress’ this year on inflation
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Federal Reserve Chair Jerome Powell stated that the US economy has not seen inflation return to the central bank's goal of 2%. Powell mentioned that recent data shows solid growth and strength in the labor market, but there has been a lack of further progress on inflation this year. He indicated that the current level of policy is likely to remain in place until inflation gets closer to the target. The Fed has kept its benchmark interest rate between 5.25% and 5.5% since July 2023. Powell added that until inflation shows more progress, the current level of restriction can be maintained. Inflation data for the first three months of 2024 has been higher than expected, with the consumer price index showing inflation running at a 3.5% annual rate in March. Treasury yields rose as Powell spoke, and financial markets have had to reset their expectations for rate cuts this year.

#FederalReserve #JeromePowell #UsEconomy #Inflation #InterestRates

https://www.cnbcafrica.com/2024/fed-chair-powell-says-there-has-been-a-lack-of-further-progress-this-year-on-inflation/


Apple announces its big annual conference, where it could reveal its AI strategy
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Apple announced that its annual developers conference, WWDC, will take place from June 10 to June 14. The conference will be livestreamed on Apple's website, but some software makers will be invited to the campus on the first day. At the conference, Apple could reveal its long-awaited artificial intelligence strategy and consumer features. Apple typically reveals the latest versions of its iPhone, iPad, Mac, and Apple TV software at WWDC. This year, Apple also plans to reveal the first major software update to the Vision Pro, the virtual reality headset it launched earlier this year.

#Apple #Wwdc #ArtificialIntelligence #Software #Conference

https://www.cnbcafrica.com/2024/apple-announces-its-big-annual-conference-where-it-could-reveal-its-ai-strategy/