Why The U.S. Is Failing At Its Economic Goals

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="546" src="https://cms.cnbcafrica.com/wp-content/uploads/2023/06/107196916-1676693580855-gettyimages-109822847-63840101-820x546.jpeg" alt="" class="wp-image-425424" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/06/107196916-1676693580855-gettyimages-109822847-63840101-820x546.jpeg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2023/06/107196916-1676693580855-gettyimages-109822847-63840101-300x200.jpeg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/06/107196916-1676693580855-gettyimages-109822847-63840101-135x90.jpeg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2023/06/107196916-1676693580855-gettyimages-109822847-63840101-768x511.jpeg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2023/06/107196916-1676693580855-gettyimages-109822847-63840101-1536x1022.jpeg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2023/06/107196916-1676693580855-gettyimages-109822847-63840101-scaled.jpeg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">A statue of George Best, Denis Law and Bobby Charlton standing outside Old Trafford, home of Manchester United in Manchester, England. Mike Hewitt | Getty Images Sport | Getty Images</figcaption></figure>



Manchester United shares surged as much as 30% in premarket trading on Tuesday, before paring gains, after Qatari media suggested Sheikh Jassim bin Hamad al-Thani was likely to succeed with his takeover bid.



Qatar’s Al-Watan newspaper reported Tuesday evening that Sheikh Jassim, a son of the country’s former prime minister, is poised to be announced as the preferred bidder of the Premier League soccer club. Al-Watan is co-owned by Hamad bin Jassim bin Jaber al-Thani.



A spokesperson for Manchester United was not immediately available to comment.



Shares of Manchester United, which exclusively trade on the New York Stock Exchange, were nearly 24% higher at 6:45 a.m. ET.



The reports come after seven months of negotiations, with British petrochemicals billionaire Jim Ratcliffe also in talks to buy the club.



Sharing the news via Twitter, the social media account of the Al-Watan newspaper said, “The success of Sheikh Jassim bin Hamad bin Jassim’s acquisition” would be announced soon.



Fahad al-Emadi, editor of Al Watan newspaper, shared a similar message.



“All the news received indicates the success of Sheikh Jassim bin Hamad bin Jassim’s acquisition of Manchester United, and the announcement of the deal will be very soon,” he said.



Zaid Al-Hamdan, chairman of Doha-headquartered political consultancy Aramsite Group, congratulated Sheikh Jassim shortly thereafter, despite the absence of an official announcement.



“Congratulations to Shaikh Jassim Bin Hamad Bin Jassim on his acquisition of @ManUtd,” Al-Hamdan said on Twitter.



The Glazer family, Manchester United’s American owners, announced the formal sale process late last year, saying in a Nov. 22 statement that the company’s board of directors would start exploring “strategic alternatives” for the club.



Sheikh Jassim on June 7 was reported to have submitted an improved fifth and final offer of around $6.3 billion for total control of Manchester United. Ratcliffe, meanwhile, was said to have wanted to purchase around 60% of the club.

107196916-1676693580855-gettyimages-109822847-63840101

Shares of Manchester United pop in premarket trade after Qatar media hints at takeover bid ‘success’

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="462" src="https://cms.cnbcafrica.com/wp-content/uploads/2023/06/107254786-1686544079782-gettyimages-1493977567-dsc_4402-2_labpzngl-820x462.jpeg" alt="" class="wp-image-425398" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/06/107254786-1686544079782-gettyimages-1493977567-dsc_4402-2_labpzngl-820x462.jpeg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2023/06/107254786-1686544079782-gettyimages-1493977567-dsc_4402-2_labpzngl-300x169.jpeg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/06/107254786-1686544079782-gettyimages-1493977567-dsc_4402-2_labpzngl-160x90.jpeg 160w, https://cms.cnbcafrica.com/wp-content/uploads/2023/06/107254786-1686544079782-gettyimages-1493977567-dsc_4402-2_labpzngl-768x432.jpeg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2023/06/107254786-1686544079782-gettyimages-1493977567-dsc_4402-2_labpzngl.jpeg 929w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">Women fill water from a municipal tank on May 26, 2023 in the Peth Taluka village in India. Ritesh Shukla | Getty Images News | Getty Images</figcaption></figure>



Water scarcity is seen as the most significant and potentially most impactful component of the wider climate crisis, and researchers say that large Asian economies like India and China will be the most affected from these water shortages.



Asia is an industrialization hub that is experiencing the most rapid rates of urbanization, and this would require a copious amount of water, Arunabha Ghosh, the CEO of the Council on Energy, Environment and Water, told CNBC on the sidelines of Singapore’s annual Ecosperity Week last Tuesday.&nbsp;



“It’s not just the old industries like steel making, but newer ones like manufacturing semiconductor chips and the transition to clean energy that are going to require a lot of water,” Ghosh said. “Asia is the growth engine of the world, and these industries are new drivers for its economic growth.”&nbsp;



Global fresh water demand is expected to outstrip supply by 40% to 50% by 2030. Ghosh warned that water scarcity must not be viewed as a sectoral issue, but one that “transcends the entire economy.”



Asian economies “must understand that it is a regional common good and it is in their own interest to mitigate the risks that come their way in order to prevent the economic shocks that severe water scarcity will impose,” he said.&nbsp;



India, now the world’s most populous nation, will be the hardest hit from water scarcity. Despite holding 18% of the world’s population, it only has enough water resources for 4% of its people, hence making it the world’s most water-stressed country, the World Bank said. 



The South Asian nation relies tremendously on its monsoon season to meet its water demands, but climate change has caused more floods and droughts to hit the country, and has exacerbated its water shortage.&nbsp;



<h2 class="wp-block-heading" id="h-china-is-in-the-same-rocky-boat"><a></a>China is in the same rocky boat</h2>



According to independent think tank the Lowy Institute, approximately 80% to 90% of China’s groundwater is unfit for consumption, while half of its aquifers are too polluted to be used for industry and farming. Fifty-percent of its river water is also unfit for drinking, and half of that is not safe for agriculture as well.&nbsp;



Although the world’s second-largest economy has made progress in its transition toward clean energy, its power system remains largely dependent on coal. And if there is no water, there will be no coal. 



“Water is an essential input for the generation of coal power plants, and if water becomes scarcer or is not available for power generation, that plant becomes ineffective,” Ghosh highlighted.&nbsp;



Other developing countries in the region are in similar situations, but their water crises could be harder to solve. Countries like the Philippines are not as privileged and resilient, so there’s a “huge imbalance in the water crisis that we’re facing,” Shanshan Wang, a Singapore water business leader at sustainability consultancy Arup, said. 



India and China are close to seas and rivers, and are more threatened by rising sea levels, but they can afford technology and innovation for better water storage systems, Wang told CNBC on the sidelines of the Singapore International Water Week last Tuesday.&nbsp;



Meanwhile, Wayne Middleton, the Australasian water business leader for Arup said that “we need to stick our hand up and say that we have not recognized the value of our river systems and we have exploited them for industry uses and agriculture.” “We have only recently seen the damage that we have done,” he said.



Countries in the West won’t likely remain unscathed by the risks associated with this water crisis. Europe’s water problem is expected to get worse as resources grow increasingly scarce due to the deepening climate emergency. The region saw temperatures go through the roof in spring, after experiencing a winter heatwave that took a toll on its rivers and ski slopes. 



<h2 class="wp-block-heading"><a></a>Sectors most affected</h2>



Taiwan, home to Asia’s largest semiconductor industry, has once again succumbed to water shortages less than two years after battling the worst drought it had seen in a century. Huge amounts of water are needed to power the plants and manufacture the semiconductor chips that go into our digital devices, and supply can be hindered if shortages occur. 



“Taiwan is a big user of hydropower and it always faces a dilemma on whether to store water for its semiconductor industry to utilize, or if the water should be released so they can have more hydroelectricity power,” Wang highlighted.



“Droughts and floods are both a problem for Taiwan, so the industry is unlucky and vulnerable,” she added. 



However, Wang noted that although many manufacturing industries do need water to function, water is not actually being used up and could be recycled.&nbsp;



“Water scarcity is not particularly problematic to these industries because a lot of the water can be recycled. The process pollutes the water, and many industries might just want to dump the water directly back into the ecosystem instead of purifying and reusing it,” she said.&nbsp;



“Now that there is a crisis, there are opportunities for businesses to think about how to close the loop … They cannot just take whatever is available in abundance for themselves.”&nbsp;



Water is also playing a huge role in the planned energy transition, and the lack of water could impede countries’ transition to net-zero. In 2022, China experienced its worst heatwave and drought in six decades. Blistering temperatures dried up areas of the Yangtze River, impeding its hydroelectricity capabilities — the country’s second biggest power source. 



To alleviate energy risks, the country approved the highest number of new coal-fired plants since 2015 last year. Beijing authorized 106 gigawatts of new coal power capacity in 2022, four times higher than a year earlier and the equivalent of 100 large-fired power plants. 



“We need a big energy transition to renewables to power our new water supplies, and we need our water supplies to be available for energy security,” Middleton said. “We need to start bringing those two conversations together a lot more.”



Economies that are heavily dependent on agriculture could also see output drop significantly and food security would be at further risk.&nbsp;



According to Australia’s Department of Agriculture, Fisheries and Forestry, the value of agricultural production is expected to fall by 14% to reach $79 billion in 2023 to 2024. This is due to drier conditions that are expected to reduce crop yields from record levels in 2022 to 2023. 



“We can certainly build new water supplies and provide water to industries, customers and cities in Australia, but we’re not really able to sustain enough water in longer periods of drought,” Arup’s Middleton pointed out.&nbsp;



“Of course we we have to make water available for our cities and our big economies and our communities, but it leaves behind a growing risk for&nbsp;food production and the agricultural sector,” he said.&nbsp;

107254786-1686544079782-gettyimages-1493977567-dsc_4402-2_labpzngl

The scarcity of water is emerging as a global economic threat. With China and India looking the most at risk

How 3M And DuPont Are Being Sued Over ‘Forever Chemicals’ In Water

90% of investors don’t understand the demand for this $1 trillion industry – here’s why

Why Airlines Are Bringing Back Jumbo Jets (Sort Of)

How To Convert A Gas-Powered Car To An Electric Vehicle

Can Nvidia And The AI Boom Save The U.S. Stock Market And Economy?

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="462" src="https://cms.cnbcafrica.com/wp-content/uploads/2023/06/107253873-1686269612716-gettyimages-1497002008-kd_29327_flbbuz6s-820x462.jpeg" alt="" class="wp-image-425343" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/06/107253873-1686269612716-gettyimages-1497002008-kd_29327_flbbuz6s-820x462.jpeg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2023/06/107253873-1686269612716-gettyimages-1497002008-kd_29327_flbbuz6s-300x169.jpeg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/06/107253873-1686269612716-gettyimages-1497002008-kd_29327_flbbuz6s-160x90.jpeg 160w, https://cms.cnbcafrica.com/wp-content/uploads/2023/06/107253873-1686269612716-gettyimages-1497002008-kd_29327_flbbuz6s-768x432.jpeg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2023/06/107253873-1686269612716-gettyimages-1497002008-kd_29327_flbbuz6s.jpeg 929w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">President Joe Biden and Prime Minister of the United Kingdom Rishi Sunak arrive for a joint press conference in the East Room of the White House on June 08, 2023 in Washington, DC. Kevin Dietsch | Getty Images News | Getty Images</figcaption></figure>



Despite a U.S.-U.K. trade deal remaining very much elusive, British Prime Minister Rishi Sunak and President Joe Biden signed a new “Atlantic Declaration” aiming to bolster economic security in the face of threats coming from Russia and China.



The agreement, announced Thursday at a joint press conference in the East Room of the White House, is a series of mini deals looking artificial intelligence, critical minerals, clean energy and security.



Sunak, coming to the end of his U.S. trip this week, lauded the deal as a “new economic partnership for a new age, of a kind that has never been agreed before.” He highlighted £14 billion ($17.5 billion) of new U.S. investment that has been committed into the U.K., with the two sides also undertaking joint research in areas like quantum, semiconductors and AI.



A document outlining the deal on the U.K. government website said that Britain and the U.S. would start talks on an agreement that would allow electric vehicle minerals mined in the U.K. to receive the tax benefits under Biden’s Inflation Reduction Act. The same document said Biden would ask Congress to label Britain as a “domestic source” within the U.S. Defense Production Act, giving suppliers in the country more favorable terms.



“We face new challenges to international stability — from authoritarian states such as Russia and the People’s Republic of China (PRC); disruptive technologies; non-state actors; and transnational challenges like climate change,” the document read.



Sunak, still fairly new in the role after being installed following the market turmoil of his predecessor Liz Truss, was quizzed on a possible U.K.-U.S. trade deal that was promised to his Conservative Party under Donald Trump’s tenure.



Britain left the European Union on Jan. 31, 2020, and a recent cost-of-living crisis in Britain as well as current opinion polls suggest that public sentiment has turned against Brexit amid a cost of living crisis accentuated by supply chain issues.



“I know some people have wondered what kind of partner Britain would be after we left the EU,” Sunak said Thursday. “I’d say: judge us by our actions. We’re as committed to our values as ever, as reliable an ally as ever, as attractive an investment destination as ever.”

107253873-1686269612716-gettyimages-1497002008-kd_29327_flbbuz6s

Biden and UK’s Sunak sign ‘Atlantic Declaration,’ pledging agreements on A.I. and critical minerals

The Untold Story Of Samsung’s Growing Chip Business

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="462" src="https://cms.cnbcafrica.com/wp-content/uploads/2023/06/107183744-1674657315783-gettyimages-1245722337-AFP_334U4DF-820x462.jpeg" alt="" class="wp-image-425316" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/06/107183744-1674657315783-gettyimages-1245722337-AFP_334U4DF-820x462.jpeg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2023/06/107183744-1674657315783-gettyimages-1245722337-AFP_334U4DF-300x169.jpeg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/06/107183744-1674657315783-gettyimages-1245722337-AFP_334U4DF-160x90.jpeg 160w, https://cms.cnbcafrica.com/wp-content/uploads/2023/06/107183744-1674657315783-gettyimages-1245722337-AFP_334U4DF-768x432.jpeg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2023/06/107183744-1674657315783-gettyimages-1245722337-AFP_334U4DF.jpeg 929w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">Sundar Pichai, CEO of Alphabet, speaks during an event in New Delhi, December 19, 2022. Sajjad Hussain | AFP | Getty Images</figcaption></figure>



Google plans to crack down on employees who haven’t been coming into its offices consistently, CNBC has found.



The company updated its hybrid work policy Wednesday and it includes tracking office badge attendance, confronting workers who aren’t coming in when they’re supposed to and including the attendance in employees’ performance reviews, according to internal memos viewed by CNBC. Most employees are expected in physical offices at least three days a week.



Google’s chief people officer Fiona Cicconi wrote an email to employees at the end of the day on Wednesday, which included doubling down on office attendance, reasoning that “there’s just no substitute for coming together in person.”



“Of course, not everyone believes in ‘magical hallway conversations,’ but there’s no question that working together in the same room makes a positive difference,” Cicconi’s email read. “Many of the products we unveiled at I/O and Google Marketing Live last month were conceived, developed and built by teams working side by side.”



Her note said the company will start including their three days per week as a part of their performance reviews and teams will start sending reminders to workers “who are consistently absent from the office.”



Cicconi even asked already-approved remote workers to reconsider. “For those who are remote and who live near a Google office, we hope you’ll consider switching to a hybrid work schedule. Our offices are where you’ll be most connected to Google’s community.”



A separate internal document showed that already-approved remote workers may be subject to re-evaluation if the company determines “material changes in business need, role, team, structure or location.”



In the U.S., the company will periodically track whether employees are adhering to the office attendance using badge data and executives are currently reviewing local requirements to implement in other countries, one of the documents states. If workers don’t follow the policy after an extended period of time, HR will reach out about “next steps.”



Going forward, Cicconi said, new fully remote work will only be granted “by exception only.”



Google did not immediately respond to CNBC’s request for comment.



These policy updates represent the company’s most stringent attempt to bring employees back into physical offices.



In 2021, after facing backlash for returning to offices, the company relaxed remote work plans and said it expected to let 20% of employees telecommute. However, most employees have been expected in physical offices at least three days a week as of April 2022 and at the time, the company tried to woo workers by throwing a private Lizzo concert, hiring marching bands and bringing in city mayors to celebrate the returns.



In April, CNBC reported Google dropped its Covid vaccine requirement to enter buildings.



The crackdown comes as the company is in the middle of an AI arms race by which the company has at times called all hands on deck to rapidly position itself against rivals like Microsoft and its backed ChatGPT, whose success has grown in recent months. The company has also made more attempts in recent weeks to crack down on leaks coming from within the company.



However, the crackdown also comes as the company downsizes its real estate footprint amid broader cost-cutting. In April, CNBC first reported the company’s cloud unit in March told employees that it will transition to a desk-sharing workspace in its five largest locations. CNBC also reported the company indefinitely paused construction on its massive San Jose campus.

107183744-1674657315783-gettyimages-1245722337-AFP_334U4DF

Google to crack down on office attendance, asks remote workers to reconsider

Why GM Is Killing The Chevy Camaro After 57 Years

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="462" src="https://cms.cnbcafrica.com/wp-content/uploads/2023/06/107251535-1686039444457-GettyImages-1258388175-820x462.jpg" alt="" class="wp-image-425300" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/06/107251535-1686039444457-GettyImages-1258388175-820x462.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2023/06/107251535-1686039444457-GettyImages-1258388175-300x169.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/06/107251535-1686039444457-GettyImages-1258388175-160x90.jpg 160w, https://cms.cnbcafrica.com/wp-content/uploads/2023/06/107251535-1686039444457-GettyImages-1258388175-768x432.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2023/06/107251535-1686039444457-GettyImages-1258388175.jpg 929w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">DAKAR, Senegal &#8211; June 2, 2023: Supporters of jailed opposition leader Ousmane Sonko protest in the Senegalese capital following his two-year sentencing for “corrupting the youth.” Annika Hammerschlag/Anadolu Agency via Getty Images</figcaption></figure>



The criminal conviction of a populist opposition leader in Senegal has triggered widespread unrest that threatens the West African country’s long-established political stability.



Days of violent clashes erupted late last week between security forces and supporters of Ousmane Sonko, the 2024 presidential candidate and leader of the opposition PASTEF party sentenced in absentia on Thursday to two years in prison for “corrupting the youth.” He was acquitted on an accompanying rape charge.



As of Monday, at least 16 people had reportedly been killed and hundreds of others were injured, while police had arrested around 500 people across several cities. Internet and social media access was restricted, and roadblocks were erected on key transport routes.



“The recent deaths and injuries of protesters set a worrying tone for the 2024 presidential elections and should be thoroughly investigated, with those responsible held accountable,” said Carine Kaneza Nantulya, deputy Africa director at Human Rights Watch.



“The authorities should end the repression against protesters and critics, and guarantee freedom of assembly.”



This condemnation and call for restraint were echoed in recent days by the spokesperson for United Nations Secretary-General Antonio Guterres, by the regional bloc of the Economic Community of West African States (ECOWAS) and by African Union Commission Chairman Moussa Faki Mahamat.



“The Senegalese authorities should end the arbitrary arrests, release those wrongfully held, including children, and respect the rights of Senegalese people to peacefully demonstrate and protest,” said Kaneza Nantulya.



“The African Union and ECOWAS should use their influence to press Senegalese authorities to end their repression of protests and critics.”



The unrest comes after a turbulent couple of years and is the worst seen for decades in a country often held up as a beacon for democracy and stability in the region.



<h3 class="wp-block-heading" id="h-triggers-for-unrest">Triggers for unrest</h3>



Sonko has staunchly maintained that the multiple criminal cases brought against him in recent years are politically motivated and part of an effort by President Macky Sall’s government to derail his 2024 candidacy. The conviction could bar him from running.



He was first indicted on rape charges in March 2021 and faces separate defamation charges. His various trial dates over the last two years have often been accompanied by flare-ups of violence from supporters.



Broader tensions among the public were already simmering of late, amid speculation that Sall will seek a third term in office despite the country’s two-term limit and his rapidly deteriorating popularity since the last election in 2019.



The underlying roots of the unrest are both political and socio-economic, according to analysts at African specialist intelligence company Pangea-Risk. Consumer price inflation has slowed since late 2022, but hovers at around 9%, with food prices up more than 11% year-on-year.



“Transportation costs, rents, electricity tariffs, and fuel prices are also still unaffordable for many Senegalese. Even while the country’s economy has been growing at record rates on the back of sizable investments in extractive sectors and infrastructure projects, including both renewable and gas-fired power plants, living conditions for many people have not noticeably improved,” Pangea-Risk said.



<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="720" height="405" src="https://cms.cnbcafrica.com/wp-content/uploads/2023/06/107251537-1686039807640-GettyImages-1257796610-1.jpg" alt="" class="wp-image-425302" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/06/107251537-1686039807640-GettyImages-1257796610-1.jpg 720w, https://cms.cnbcafrica.com/wp-content/uploads/2023/06/107251537-1686039807640-GettyImages-1257796610-1-300x169.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/06/107251537-1686039807640-GettyImages-1257796610-1-160x90.jpg 160w" sizes="auto, (max-width: 720px) 100vw, 720px" /><figcaption class="wp-element-caption">ZIGUINCHOR, Senegal &#8211; May 24, 2023: Opposition leader and 2024 presidential candidate Ousmane Sonko meets supporters protesting against his rape trial. Muhamadou Bittaye/AFP via Getty Images</figcaption></figure>



“Many young residents in cities feel socio-economically marginalised and are increasingly frustrated by a government that they say is led by aging and distant leaders, who have been too slow to soften the economic blow from the pandemic and the impact of the war in Ukraine.”



It is this demographic that has gravitated towards Sonko, a former tax inspector and whistleblower who rose to prominence by exposing offshore tax havens used by members of the Senegalese elite. He founded PASTEF in 2014.



After the failure of his first presidential bid in 2019, he was elected mayor of the southern city of Ziguinchor in 2022. He has since established a strong base in the south of the country and among socio-economically disillusioned voters in cities and industrial regions.



Sonko has fanned the flames of recent protests, with PASTEF issuing a statement Thursday urging citizens to “stop all activity and take to the streets.” Last month, he initiated a procession for his motorcade between Zinguinchor and Dakar, encouraging protestors to join him.



Whether police plan to detain Sonko imminently to commence his prison sentence remains unclear, though such a move would likely throw fuel on the fire of recent tensions. From apparent house arrest, Sonko has advocated for a “national resistance movement” to defend civil liberties.



<h3 class="wp-block-heading">A critical election</h3>



If last week’s conviction sticks, Sonko could follow other opposition leaders such as Khalifa Sall (unrelated to the president) and Karim Wade, both of whom were convicted on charges of fraudulent use of funds ahead of the 2019 election and barred from running.



Some commentators have speculated that, in order to split the opposition vote in the 2024 election, President Sall may grant amnesty to some previously-disqualified political leaders, after the government’s apparent suppression galvanized opposition parties in recent years.



Pangea-Risk suggested in its Monday report that, as the 2024 election approaches, the threat of civil unrest will increase and be exacerbated by Sall’s government’s efforts to curtail opposition and freedom of expression.



Although recent violence appears to have been contained by internet restrictions and the mass deployment of the military, they added that “widespread incidents of unrest” in major urban centers are likely in the event of Sonko’s physical arrest, or of Sall’s announcement that he will run as the ruling APR’s candidate for a third term in office.



“A popular backlash to [Sall’s] power extension ambitions could scupper relations with international investment partners, foreign donors, and the IMF, whose support is needed to maintain fiscal stability, finance subsidies, and service debts,” Pangea-Risk said.



<h3 class="wp-block-heading">Economic prospects</h3>



Senegal’s medium-term economic growth prospects have improved on the back of a massive influx of new hydrocarbon investments, with several major liquefied natural gas (LNG) and crude oil projects due to come online later this year.



“In the short-term, debt sustainability will remain a primary concern as costly energy subsidies place the public budget under sustained pressure,” the report projected.



“The government is unlikely to heed IMF advice to cut subsidies and is instead ramping up spending on socio-economic relief that is aimed at boosting its appeal ahead of the 2024 elections.”



<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="720" height="405" src="https://cms.cnbcafrica.com/wp-content/uploads/2023/06/107251678-1686055171768-GettyImages-1258273678-1.jpg" alt="" class="wp-image-425304" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/06/107251678-1686055171768-GettyImages-1258273678-1.jpg 720w, https://cms.cnbcafrica.com/wp-content/uploads/2023/06/107251678-1686055171768-GettyImages-1258273678-1-300x169.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/06/107251678-1686055171768-GettyImages-1258273678-1-160x90.jpg 160w" sizes="auto, (max-width: 720px) 100vw, 720px" /><figcaption class="wp-element-caption">DAKAR, Senegal &#8211; May 29, 2023: A Senegalese gendarme stands near a smoke billowing from burning tyres during a protest over the arrest of opposition leader Ousmane Sonko, ahead of the final verdict in his rape trial. JOHN WESSELS/AFP via Getty Images</figcaption></figure>



The IMF and Senegalese authorities agreed last month on a new 36-month financing arrangement of around $1.526 billion under the institution’s Extended Fund Facility and Extended Credit Facility, combined with a Resilience and Sustainability Facility of $327.1 million.



Associated policy requirements include a fiscal consolidation, strengthened governance and a framework for anti-money laundering and terrorism financing measures, along with delivering “more inclusive and job-rich growth,” the IMF’s mission to Dakar recorded last month.



The D.C.-based organization projected that non-hydrocarbon GDP growth in Senegal will hit 5.3% in 2023, down from an initial forecast of 6%. Total GDP growth could exceed 8% this year, should the aforementioned oil and gas production begin in the fourth quarter.



Government debt is also expected to drop from 75% of GDP in 2022 to more sustainable levels in the coming years. The country’s debt position is widely considered stable, with the outlook viewed as sustainable due to the new hydrocarbon revenues due onstream from later this year.

107251535-1686039444457-GettyImages-1258388175

Senegal, one of Africa’s bastions of stability, faces its gravest threat of unrest in decades

Why It Costs Up To $30 Million To Convert A Passenger Plane To Cargo

Turkey at a crossroads: Will it turn to the East or West?

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="553" src="https://cms.cnbcafrica.com/wp-content/uploads/2023/06/107152567-1668602820538-GettyImages-1244424369-820x553.jpg" alt="" class="wp-image-425276" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/06/107152567-1668602820538-GettyImages-1244424369-820x553.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2023/06/107152567-1668602820538-GettyImages-1244424369-300x202.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/06/107152567-1668602820538-GettyImages-1244424369-133x90.jpg 133w, https://cms.cnbcafrica.com/wp-content/uploads/2023/06/107152567-1668602820538-GettyImages-1244424369-768x518.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2023/06/107152567-1668602820538-GettyImages-1244424369-1536x1036.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2023/06/107152567-1668602820538-GettyImages-1244424369-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">The CEO of the largest online exchange for trading cryptocurrency, Binance, said he is establishing a recovery fund to help people in the industry, while saying the sector “will be fine.” Ben McShane / Contributor / Getty Images</figcaption></figure>



The Securities and Exchange Commission filed 13 charges against Binance, the world’s largest crypto exchange, and its founder, Changpeng Zhao, alleging both comingled billions of dollars worth of user funds and sent them to a European company controlled by Zhao.



The U.S. regulator alleged on Monday that Zhao and his exchange worked to subvert “their own controls” to allow high net worth U.S. investors and customers to continue trading on Binance’s unregulated international exchange.



One senior executive allegedly told a compliance officer that the company was operating as a ”[f&#8212;ing] unlicensed securities exchange in the USA bro.”



The complaint alleges Binance created Binance.US as a shield for the main company and Zhao, to “reveal, retard, and resolve” law enforcement targets and insulate Binance.



Two successive Binance.US CEOs expressed deep concern over Zhao’s level of control, according to the SEC. Both testified before federal regulators: Neither were named, but its first and second chief executives were Catherine Coley and Brian Brooks.



“I’m not actually the one running this company, and the mission that I believe I signed up for isn’t the mission. And as soon as I realized that, I left,” a former Binance.US CEO identified as “BAM CEO B” testified to the SEC.



Binance earned $11.6 billion in revenue, most of which came from transaction fees, from June 2018 through July 2021, the complaint said. Since its inception, the exchange has “at first overtly and later furtively” worked to entice U.S. customers, at the direction and control of its founder Zhao, the SEC alleged.



Binance knew that tens of thousands of customers were in the U.S. but chose not to act, the SEC alleged, despite federal law barring the unregistered offer and sale of securities. Binance’s ultimate compliance, in 2019, was largely a public show, the SEC complaint continues.



The SEC alleges Zhao ordered the creation of an evasion plan for high net worth customers, using a VPN service to hide their U.S. location and submitting compliance documents to obscure their country of origin.



CNBC previously reported on how Binance employees encouraged users to evade the exchange’s “know your customer” systems through VPNs.



“We do need to let users know that they can change their KYC on&nbsp;Binance.com&nbsp;and continue to use it. But the message, the message needs to be finessed very carefully because whatever we send will be public. We cannot be held accountable for it,” Zhao allegedly told his top team in 2019.



The SEC also alleged that Binance and Zhao used market-making companies that they controlled to inflate trading prices and profit off their customers.



Merit Peak and Sigma Chain allegedly acted as “market makers” for Binance’s two platforms, meaning they were always available to fill a customer order to buy or sell a crypto asset. But the SEC complaint highlighted multiple issues with the two companies’ roles: They were both beneficially owned by Zhao and collected “tens of billions of dollars” of customer money. The firms also mixed customer funds with Binance’s money, similar to allegations against bankrupt crypto exchange FTX.



Most damaging to investors, they allegedly engaged in “wash trading,” trading with themselves to artificially prop up the price of crypto assets.



Sigma Chain collected $190 million for its beneficial owner Zhao, the SEC alleged. The “proprietary trading firm” then spent $11 million to purchase a “yacht,” the complaint said.



Zhao dismissed the charges on Twitter by saying “4,” a popular refrain in Binance’s community urging users to ignore fear, uncertainty and doubt, or “FUD.”



The complaint comes after the Commodity Futures Trading Commission filed similar charges against the crypto exchange, alleging it failed to prevent U.S. customers from accessing it.



“We will issue a response once we see the complaint,” Zhao said on Twitter. “Media gets the info before we do.”



In a blog post that followed, Binance wrote, “We are disappointed that the U.S. Securities and Exchange Commission chose to file a complaint today against Binance seeking, among other remedies, purported emergency relief.” The company added that it has “actively cooperated with the SEC’s investigations” and “engaged in extensive good-faith discussions to reach a negotiated settlement to resolve their investigations.”



The defendants showed a “blatant disregard” for federal law, the SEC alleged. The complaint included a “high-level” breakdown of Binance’s ownership structure, with Zhao and his holding vehicles allegedly controlling 100% of Binance and Binance.US’ various entities.

107152567-1668602820538-GettyImages-1244424369

SEC sues Binance and CEO Changpeng Zhao for U.S. securities violations

CNBC

Why The U.S. Is Failing At Its Economic Goals

Shares of Manchester United pop in premarket trade after Qatar media hints at takeover bid ‘success’

The scarcity of water is emerging as a global economic threat. With China and India looking the most at risk

How 3M And DuPont Are Being Sued Over ‘Forever Chemicals’ In Water

90% of investors don’t understand the demand for this $1 trillion industry – here’s why

Why Airlines Are Bringing Back Jumbo Jets (Sort Of)

How To Convert A Gas-Powered Car To An Electric Vehicle

Can Nvidia And The AI Boom Save The U.S. Stock Market And Economy?

Biden and UK’s Sunak sign ‘Atlantic Declaration,’ pledging agreements on A.I. and critical minerals

The Untold Story Of Samsung’s Growing Chip Business

Google to crack down on office attendance, asks remote workers to reconsider

Why GM Is Killing The Chevy Camaro After 57 Years

Senegal, one of Africa’s bastions of stability, faces its gravest threat of unrest in decades

Why It Costs Up To $30 Million To Convert A Passenger Plane To Cargo

Turkey at a crossroads: Will it turn to the East or West?

SEC sues Binance and CEO Changpeng Zhao for U.S. securities violations

Why The EV Industry Is Betting On This Lithium Mining Breakthrough

News Tips

Advertise With Us

CNBC

Why The U.S. Is Failing At Its Economic Goals

Shares of Manchester United pop in premarket trade after Qatar media hints at takeover bid ‘success’

The scarcity of water is emerging as a global economic threat. With China and India looking the most at risk

How 3M And DuPont Are Being Sued Over ‘Forever Chemicals’ In Water

90% of investors don’t understand the demand for this $1 trillion industry – here’s why

Why Airlines Are Bringing Back Jumbo Jets (Sort Of)

How To Convert A Gas-Powered Car To An Electric Vehicle

Can Nvidia And The AI Boom Save The U.S. Stock Market And Economy?

Biden and UK’s Sunak sign ‘Atlantic Declaration,’ pledging agreements on A.I. and critical minerals

The Untold Story Of Samsung’s Growing Chip Business

Google to crack down on office attendance, asks remote workers to reconsider

Why GM Is Killing The Chevy Camaro After 57 Years

Senegal, one of Africa’s bastions of stability, faces its gravest threat of unrest in decades

Why It Costs Up To $30 Million To Convert A Passenger Plane To Cargo

Turkey at a crossroads: Will it turn to the East or West?

SEC sues Binance and CEO Changpeng Zhao for U.S. securities violations

Why The EV Industry Is Betting On This Lithium Mining Breakthrough

News Tips

Advertise With Us

Newsletters