<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="612" height="357" src="https://cms.cnbcafrica.com/wp-content/uploads/2021/04/istockphoto-1030878162-612x612-1.jpg" alt="" class="wp-image-400669" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2021/04/istockphoto-1030878162-612x612-1.jpg 612w, https://cms.cnbcafrica.com/wp-content/uploads/2021/04/istockphoto-1030878162-612x612-1-300x175.jpg 300w" sizes="auto, (max-width: 612px) 100vw, 612px" /><figcaption class="wp-element-caption">World map with charts and graphs as symbols of global finance</figcaption></figure>



Oct 30 (Reuters)&nbsp;&#8211;&nbsp;Most emerging markets stocks edged up and currencies were muted on Monday in cautious trade ahead of a widely-anticipated interest rate decision by the U.S. Federal Reserve, while investors kept a wary eye on developments in the Middle East.



Following a broadly in-line inflation reading the previous week, traders expect the U.S. central bank to leave borrowing costs on hold on Wednesday, while continuing to assess possibilities of a rate hike towards the end of the year.



&#8220;A hawkish hold should be a rather neutral outcome, as it is widely expected,&#8221; said Bartosz Sawicki, market analyst at Conotoxia fintech.



&#8220;The EM space might feel the pain if the U.S. economy continues to outperform and wage pressure comes in above markets&#8217; expectations.&#8221;



Asset classes in developing markets have recently come under pressure from rising U.S. Treasury yields and a strengthening dollar as market participants price in interest rates remaining elevated for much longer than previously expected.



MSCI&#8217;s index tracking emerging markets stocks&nbsp;.MSCIEF&nbsp;was up 0.4%, underpinned by a 0.6% gain in China&#8217;s blue-chip stocks&nbsp;.CSI300.



Investors took comfort from fresh signs that Beijing was undertaking measures to put a floor under a sliding stock market.



Meanwhile, Hong Kong stocks .HSI closed the session flat, weighed down by a 9.8% loss in China Evergrande Group 3333.HK after a domestic court gave the embattled property developer a five week reprieve to come up with a deal with creditors or face liquidation.



Meanwhile, a basket of emerging markets currencies&nbsp;.MIEM00000CUS&nbsp;edged up 0.1% against the dollar by 0914 GMT.



Keeping a lid on gains was the war between Israel and Hamas as investors were on edge about the potential of a widening Middle East conflict and its repercussions on oil supply from the region as Israel expanded its ground offensive in Gaza.&nbsp;O/R



The Russian rouble RUBUTSTN=MCX extended its climb and traded at 93.2 to the dollar after the local central bank&#8217;s surprising key rate hike by 200 basis points to 15% on Friday.



The South African rand ZAR= added 0.5% with focus on the government&#8217;s mid-term budget statement on Wednesday for clues on the health of Africa&#8217;s most advanced economy.



Among eastern and central European currencies, the Hungarian forint&nbsp;EURHUF=&nbsp;led gains against the euro, adding 0.4%, while the Czech crown&nbsp;EURCZK=&nbsp;was muted ahead of a monetary policy decision due later in the week.



Elsewhere, Pakistan&#8217;s rupee PKR= strengthened 0.6% ahead of a central bank rate decision, where economists broadly expect the bank to keep borrowing costs on hold.



(Reporting by Johann M Cherian in Bengaluru; Editing by Emelia Sithole-Matarise)

World map with charts and graphs as symbols of global finance

Stocks rise, FX tepid ahead of Fed rate decision

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="535" src="https://cms.cnbcafrica.com/wp-content/uploads/2023/10/I5K234HO4VOUPOJTON2S7WH5ZU-820x535.jpg" alt="" class="wp-image-428594" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/10/I5K234HO4VOUPOJTON2S7WH5ZU-820x535.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2023/10/I5K234HO4VOUPOJTON2S7WH5ZU-300x196.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/10/I5K234HO4VOUPOJTON2S7WH5ZU-138x90.jpg 138w, https://cms.cnbcafrica.com/wp-content/uploads/2023/10/I5K234HO4VOUPOJTON2S7WH5ZU-768x501.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2023/10/I5K234HO4VOUPOJTON2S7WH5ZU-1536x1002.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2023/10/I5K234HO4VOUPOJTON2S7WH5ZU-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">FILE PHOTO: A worker prepares products at copper and silver giftware manufacturer Copperwares&#8217; workshop in Harare, Zimbabwe, August 4, 2021. Picture taken August 4, 2021. REUTERS/Philimon Bulawayo/File Photo</figcaption></figure>



WASHINGTON, Oct 30 (Reuters)&nbsp;&#8211;&nbsp;African countries are less likely to follow East Asia&#8217;s development model of expanding manufacturing to pull people out of poverty, according to a study that shows a declining share of factory jobs for most countries by mid-century.



The new paper released on Monday by the Center for Global Development shows there will be fewer factory workers in 2050 globally than there are now, and that even in poor countries with abundant cheap labor, manufacturing job growth will stagnate.



China may be an exception, further expanding its share of manufacturing output among 59 countries modeled in the study to 43.8% in 2050 from 30% in 2018 and 10.5% in 1975.



The study&#8217;s authors say that China will continue to dominate global manufacturing, moving into higher-value segments.



While this may create some space for other developing countries in Africa, Southeast Asia and Latin America to move into lower-end manufacturing in low-end sectors abandoned by China, it won&#8217;t be enough to replicate the transformative East Asian development model of moving from Agriculture to manufacturing.



Instead, CGD senior fellows Charles Kenny and Ranil Dissanayake say that many countries will move straight from agriculture to services, where jobs will expand rapidly, especially because of new technologies &#8212; even in countries such as Bangladesh and Ethiopia.



&#8220;There’s still a popular idea that low-income countries will progress naturally from being dominated by agriculture to manufacturing-led growth, but mounting evidence suggests that’s not going to happen,&#8221; said Kenny. &#8220;We think that farms are going to empty out across Africa and Asia in the coming decades, but people are likely to flood into offices and shops, not factories.&#8221;



The study projects global growth through the year 2050 and models changes in the economies of 59 countries accounting for about three quarters of the world’s GDP and population.



It projects that even for the lowest-income countries, the number of factory jobs will barely keep pace with population growth over the next 30 years, and manufacturing is likely to remain a small part of most of these countries’ economies.



Across all low-income countries, manufacturing jobs are projected to hold steady at below 8% of total employment, the study finds. It projects the share of manufacturing jobs in high-income countries will continue to fall, to 8.3% by 2050 from 11.4% currently.



It said that private service sector jobs will make up roughly 37% of global jobs by 2050, and 26% in today’s low-income countries, up from about 12% currently.



(Reporting by David Lawder; Editing by Simon Cameron-Moore)

FILE PHOTO: Staff work at copper and silver giftware manufacturer Copperwares workshop in Harare

Africa unlikely to follow East Asia’s manufacturing growth path -study

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2021/05/Stock-value-rising-and-falling-820x547.jpg" alt="" class="wp-image-404443" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2021/05/Stock-value-rising-and-falling-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2021/05/Stock-value-rising-and-falling-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2021/05/Stock-value-rising-and-falling-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2021/05/Stock-value-rising-and-falling.jpg 1254w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">Macro view of a screen of trading terminal with abstract financial graph and digits. Trading and forex concept. 3D Rendering</figcaption></figure>



Oct 27 (Reuters)&nbsp;&#8211;&nbsp;Emerging market stocks and currencies broadly recovered on Friday, ahead of a highly anticipated U.S. inflation print that could set the tone for monetary policy in the world&#8217;s biggest economy.



The MSCI&#8217;s gauge for emerging market stocks&nbsp;.MSCIEF&nbsp;rose 1.1%, while a basket of regional currencies&nbsp;.MIEM00000CUS&nbsp;crawled 0.1% up against the dollar by 0843 GMT.



All eyes are on U.S. September personal consumption expenditure (PCE) data, the Federal Reserve&#8217;s preferred inflation gauge, that could determine the outlook for Treasury yields and the dollar. The data is expected at 1230 GMT, ahead of the Fed&#8217;s interest rate decision next week.



&#8220;If the U.S. PCE data are in line with expectations, market expectations that the tightening cycle is over in the U.S. will be cemented,&#8221; said Piotr Matys, senior FX analyst at In Touch Capital Markets.



&#8220;That said, sentiment towards EM is unlikely to improve significantly and sustainably until the Fed adopts a dovish rhetoric and geopolitical tensions ease markedly.&#8221;



Caution also loomed with crude prices spiking as reports that the U.S. military struck Iranian targets in Syria raised concerns of a widening of the Israel-Hamas conflict that could impact supply from the Middle East.&nbsp;O/R



Trade in currencies of top oil importers like India&nbsp;INR=, Thailand&nbsp;THB=&nbsp;and Philippines&nbsp;PHP=&nbsp;was lacklustre.



Giving sentiment a boost was China local data which showed profits at industrial firms extended gains for a second month in September. Chinese top stocks .CSI300 closed 1.4% up and the Hang Seng index .HIS ended 2.1% higher.



Weekly performances are mixed among EM assets, with stocks looking set for a decline of 0.6%, while currencies are headed for gains.



Reports of a $137 billion stimulus plan by China aided risk-taking earlier in the week, amid pressures by U.S. Treasury yields and Middle East jitters.



Portfolio outflows from local currency bonds have also continued and while not accelerating, would limit scope for any rally, Barclays analysts wrote in a note.



Meanwhile, Turkey&#8217;s lira traded 28.1 to the dollar after the local central bank said it was taking fresh steps to simplify the macroprudential framework and increase the share of lira deposits, a day after lifting borrowing costs as expected.



The Russian rouble&nbsp;RUBUTSTN=MCX&nbsp;traded at 93.55 to the dollar ahead of a rate decision, where economists largely expect a 100 basis points rate hike, according to economists polled by Reuters. The decision is due at 1030 GMT.



Elsewhere, a poll of analysts expects Pakistan&#8217;s central bank to hold rates steady at a meeting next week, as the country awaits its first review following a loan from the International Monetary Fund. The rupee PKR= gained 0.6%.



(Reporting by Johann M Cherian in Bengaluru; Additional reporting by Krain Strohecker, editing by Emelia Sithole-Matarise)

Macro view of a screen of trading terminal with abstract financial graph and digits. Trading and forex concept. 3D Rendering

FX inches up ahead of US inflation data, China stocks boost EM

<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="612" height="350" src="https://cms.cnbcafrica.com/wp-content/uploads/2021/04/istockphoto-1040865674-612x612-1.jpg" alt="" class="wp-image-400879" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2021/04/istockphoto-1040865674-612x612-1.jpg 612w, https://cms.cnbcafrica.com/wp-content/uploads/2021/04/istockphoto-1040865674-612x612-1-300x172.jpg 300w" sizes="auto, (max-width: 612px) 100vw, 612px" /><figcaption class="wp-element-caption">Stock market report. 3d illustration</figcaption></figure>



Oct 26 (Reuters)&nbsp;&#8211;&nbsp;Worries about U.S. interest rates remaining higher for longer sparked a selloff across most emerging markets on Thursday, sending stocks to a fresh 11-month low, while investors awaited Turkey&#8217;s interest rate decision.



MSCI&#8217;s index tracking EM stocks&nbsp;.MSCIEF&nbsp;dropped 1.2% as yield on U.S. 10-year tenors, a mark for interest rate expectations, edged up by 0909 GMT.



Equities across developing markets have been hovering near lows last seen in November as investors price in higher borrowing costs amid signs of a resilient U.S. economy.



Such expectations have bolstered the dollar, driving a basket of emerging markets currencies&nbsp;.MIEM00000CUS&nbsp;down 0.2% to a near one-week low.



Turkey&#8217;s monetary policy decision will be in close focus on Thursday, as economists&nbsp;<a href="https://www.reutersconnect.com/all?search=all%3AL1N3BW0KX&amp;linkedFromStory=true" target="_blank" rel="noreferrer noopener">broadly expect</a>&nbsp;a 500 basis points increase, in keeping with the recent pivot to orthodox policy.



The lira&nbsp;TRYTOM=D3&nbsp;traded 28.1 to the dollar ahead of the verdict due at 1100 GMT.



&#8220;It&#8217;s clear that authorities are weighing in the trade off between some legacy issues from the previous economic machine, in terms of the banking sector, and pressures (on) the lira from the rise in U.S. yields, which means that the relative interest rate differential is moving against them,&#8221; said Jakob Ekholdt Christensen, senior EM strategist at BankInvest.



Market participants are also keeping a close eye on the Israel-Hamas conflict, and the repercussions a widening strife could have on oil supply from the region, a key resource for developing markets.&nbsp;O/R



In central and eastern Europe, Poland&#8217;s zloty&nbsp;EURPLN=&nbsp;was little changed against the euro after rate-setter Joanna Tyrowicz said domestic inflation will be higher in November and December, adding that she still hopes a majority can be found&nbsp;<a href="https://www.reutersconnect.com/all?search=all%3AL8N35326P&amp;linkedFromStory=true" target="_blank" rel="noreferrer noopener">to support more restrictive monetary policy</a>.



Hungary&#8217;s forint&nbsp;EURHUF=&nbsp;recovered 0.4% following two straight sessions of losses.



Meanwhile, South Africa&#8217;s rand&nbsp;ZAR=&nbsp;inched 0.2% lower ahead of September producers inflation (PPI) data, where economists expect it to rise to 4.7%.



The country&#8217;s top index&nbsp;.JTOPI&nbsp;fell 1.0%, overshadowing a 6.1% surge in Clicks Group&nbsp;CLSJ.J&nbsp;after the pharmacy chain reported a&nbsp;<a href="https://www.reutersconnect.com/all?search=all%3AL1N3BW0JD&amp;linkedFromStory=true" target="_blank" rel="noreferrer noopener">jump in annual earnings</a>.



Elsewhere, Zambia&#8217;s international dollar bonds rose as much as 2.5 cents, as per Marketaxes, after the finance ministry said it had reached an in-principle agreement on&nbsp;<a href="https://www.reutersconnect.com/all?search=all%3AL1N3BW0PT&amp;linkedFromStory=true" target="_blank" rel="noreferrer noopener">debt restructuring terms</a>&nbsp;with a creditor group holding the bonds.



(Reporting by Johann M Cherian in Bengaluru; Editing by Varun H K)

Stock market report. 3d illustration

Stocks retreat to 11-mth low on rate jitters; Turkish rate decision on tap

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2023/05/Investment-management-820x547.jpg" alt="" class="wp-image-424734" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/05/Investment-management-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2023/05/Investment-management-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/05/Investment-management-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2023/05/Investment-management-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2023/05/Investment-management.jpg 1200w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">Stock</figcaption></figure>



Oct 25 (Reuters)&nbsp;&#8211;&nbsp;Most equities across emerging markets were steady on Wednesday as investors took some comfort from latest spending plans by the world&#8217;s second-largest economy, China, while geopolitical uncertainties in the Middle East remained a concern.



MSCI&#8217;s index tracking emerging markets stocks&nbsp;.MSCIEF&nbsp;rose nearly 1% in early trade, and was last up 0.1% amid volatile trading.



Heavy-weight China stocks .CSI300 bolstered early gains and closed 0.5% higher after China&#8217;s government approved a $137 billion bond issue, adding that the new fiscal stimulus will help bolster economic recovery.



&#8220;The additional fiscal support approved today is the intervention we had been expecting and that was needed to prevent an abrupt fiscal tightening in China in the closing weeks of the year,&#8221; said Mark Williams, chief Asia economist at Capital Economics.



&#8220;These new steps will keep it supportive but not deliver any additional boost.&#8221;



Keeping a lid on optimism were developments in the Middle East as investors were concerned about the conflict widening in the region and involving larger players like Iran, that could threaten oil supplies, a crucial resource to emerging markets.



Crude prices pared early losses and were marginally higher, while major crude importer India&#8217;s rupee&nbsp;INR=&nbsp;edged 0.2% lower and Turkey&#8217;s lira&nbsp;TRYTOM=D3&nbsp;traded 28 to the dollar.&nbsp;O/R



A basket of emerging markets currencies&nbsp;.MIEM00000CUS&nbsp;dipped 0.2% against the greenback by 0925 GMT.



Meanwhile, the Israeli shekel IL= traded tepidly after S&amp;P Global revised Israel&#8217;s outlook to &#8220;negative&#8221; from &#8220;stable&#8221; overnight, citing risks that the conflict could spread more widely with a more pronounced impact on the economy and security situation in the country.



More broadly, risk sentiment improved since the last session as yields on longer-dated U.S. Treasury notes retreated. U.S. economic data this week could determine the outlook for monetary policy in the world&#8217;s largest economy.



Among currencies in eastern and central Europe, Hungary&#8217;s forint EURHUF= led losses dipping 0.5% against the euro after the local central bank&#8217;s bigger-than-expected cut to its base rate on Tuesday.



In Poland, the benchmark index .WIG added 0.2% with Santander&#8217;s SAN.MC Polish unit gaining 0.9% after posting a more than a five-fold rise in its quarterly net profit and beating market expectations.



In Russia, the rouble RUBUTSTN=MCX strengthened to a more than six-week high at 93 to the greenback as exporters increased sales of foreign currency revenues.



Elsewhere, a representative of the International Monetary Fund said the lender&#8217;s mission will visit Pakistan in the following week to discuss the first review of the country&#8217;s current $3 billion standby arrangement. The local rupee PKR= climbed 0.6%.



(Reporting by Johann M Cherian in Bengaluru; Editing by Mrigank Dhaniwala)

Investment-management

Stocks steady after China stimulus, FX inch down amid geopolitical jitters

<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="612" height="357" src="https://cms.cnbcafrica.com/wp-content/uploads/2021/04/istockphoto-1030878162-612x612-1.jpg" alt="" class="wp-image-400669" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2021/04/istockphoto-1030878162-612x612-1.jpg 612w, https://cms.cnbcafrica.com/wp-content/uploads/2021/04/istockphoto-1030878162-612x612-1-300x175.jpg 300w" sizes="auto, (max-width: 612px) 100vw, 612px" /><figcaption class="wp-element-caption">World map with charts and graphs as symbols of global finance</figcaption></figure>



Oct 24 (Reuters)&nbsp;&#8211;&nbsp;Most equities and currencies inched up on Tuesday as the greenback and U.S. treasury yields eased after a recent surge, while investors awaited an interest rate decision by the Hungarian central bank.



MSCI&#8217;s basket of emerging market currencies&nbsp;.MIEM00000CUS&nbsp;added 0.2% as the dollar retreated, mirroring a dip in U.S. treasury yields ahead of a slew of economic data due later in the week that could determine the outlook for monetary policy in the United States.&nbsp;USD/



Equities&nbsp;.MSCIEF&nbsp;also gained 0.2% by 0904 GMT, snapping a four-day losing streak.



However, Chris Turner, global head of markets and regional head of research for UK &amp; CEE at ING, said unless sharply weaker U.S. data starts coming in, it is hard to see the long end of treasury yields coming a lot lower.



EM stocks had dropped to near 11 month lows in the previous session, while investors stayed clear of currencies amid concerns about U.S. interest rates, China&#8217;s ailing property sector and geopolitical uncertainties.



In eastern and central Europe, Hungary&#8217;s forint&nbsp;EURHUF=&nbsp;inched up 0.2% against the euro to a two-month high ahead of a central bank policy rate decision due at 1200 GMT. Most economists polled by Reuters expect a 50 basis point rate cut.



&#8220;If the Hungarian central bank decides to cut interest rates more than expected, this could trigger a sell-off in the currency, which has weakened markedly since the series of interest rate cuts began,&#8221; Grzegorz Drozdz, market analyst at Conotoxia, said.



Drozdz expects a 100 basis point cut.



A poll showed economists expect Turkey&#8217;s central bank to deliver another hefty rate hike of 500 basis points later in the week, as it continues to tighten policy against rising inflation. The lira TRYTOM=D4 traded a nudge over 28 to the dollar.



The Russian rouble RUBUTSTN=MCX strengthened to a six-week high past 94 to the dollar, supported by higher oil prices and increased foreign currency sales by exporters as a month-end tax period approached.



Elsewhere, World Bank President Ajay Banga said that geopolitical tensions pose the biggest threat to the world economy, but that risks &#8220;tend to move around&#8221; fast, so others should not be ignored.



Meanwhile, Argentinian 2046 dollar bonds extended previous session declines, falling more than 5 cents on the dollar, as per Marketaxess.



(Reporting by Johann M Cherian in Bengaluru; Editing by David Holmes)

Stocks, FX steady amid US bond yields relief; Hungarian rate decision due

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2023/10/46OGH4XFANJW7OJEEG3THQTVQM-820x547.jpg" alt="" class="wp-image-428459" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/10/46OGH4XFANJW7OJEEG3THQTVQM-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2023/10/46OGH4XFANJW7OJEEG3THQTVQM-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/10/46OGH4XFANJW7OJEEG3THQTVQM-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2023/10/46OGH4XFANJW7OJEEG3THQTVQM-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2023/10/46OGH4XFANJW7OJEEG3THQTVQM-1536x1024.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2023/10/46OGH4XFANJW7OJEEG3THQTVQM-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">FILE PHOTO: Ajay Banga, World Bank president, participates in global infrastructure and investment forum in New York, Thursday, Sept. 21, 2023. Seth Wenig/Pool via REUTERS/File Photo</figcaption></figure>



LONDON, Oct 24 (Reuters)&nbsp;&#8211;&nbsp;Geopolitical tensions heightened by the Middle East conflict pose the biggest threat to the world economy right now but other risks are also at play, World Bank President Ajay Banga said on Tuesday.



&#8220;The U.S. 10-year Treasury (yield) just crossed 5% briefly yesterday, these are areas we haven&#8217;t seen. So yes, that is right there lurking in the shadows,&#8221; Banga said, referring to a rise in the benchmark for borrowing costs around the world which further threaten an economic slowdown.



&#8220;And then, how long before the next pandemic?&#8221; Banga said during an event at the annual Future Investment Initiative (FII) in Riyadh.



&#8220;There is so much going on in the world and geopolitics in the wars that you&#8217;re seeing and what just happened recently in Israel and Gaza. At the end of the day, when you put all this together, I think the impact on economic development is even more serious,&#8221; he said.



Risks tend to move around, he said. &#8220;So I would be very careful of fixating on one and ignoring the others right now.&#8221;



Banga said that while everything in the developed world looks better than had been expected some time ago, &#8220;I think that we&#8217;re at a very dangerous juncture.&#8221;



He said private sector investment is needed in developing economies but political risks in some of these countries remain a barrier.



&#8220;One trillion of dollars is needed just for renewable energy in the emerging markets. There is not enough money in government coffers or even in the multilateral development banks, we need to involve the private sector with their capital,&#8221; he said. &#8220;And that is the biggest task we have ahead of us.&#8221;



(Reporting by Jorgelina do Rosario; Editing by Karin Strohecker, Mike Harrison and Susan Fenton)

FILE PHOTO: Global infrastructure and investment forum in New York

World Bank’s Banga says geopolitics pose biggest, but not the only, risk to world economy

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2021/05/Stock-value-rising-and-falling-820x547.jpg" alt="" class="wp-image-404443" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2021/05/Stock-value-rising-and-falling-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2021/05/Stock-value-rising-and-falling-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2021/05/Stock-value-rising-and-falling-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2021/05/Stock-value-rising-and-falling.jpg 1254w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">Macro view of a screen of trading terminal with abstract financial graph and digits. Trading and forex concept. 3D Rendering</figcaption></figure>



Oct 23 (Reuters)&nbsp;&#8211;&nbsp;Risk sentiment in most emerging markets took a hit on Monday, amid lingering geopolitical uncertainty and expectations of U.S. monetary conditions remaining tighter for longer.



MSCI&#8217;s index tracking emerging markets equities&nbsp;.MSCIEF&nbsp;slipped 0.9% to its lowest level in eleven months by 0948 GMT.



Closely-watched crude prices dipped as diplomatic efforts to contain the Israel-Hamas war intensified, even as the conflict raged on into a new week.&nbsp;O/R



The basket of emerging markets currencies&nbsp;.MIEM00000CUS&nbsp;was little changed,&nbsp;even as&nbsp;the dollar was underpinned by elevated U.S. Treasury yields, an indicator of interest rate expectations.



&#8220;Widening conflict in the Middle East would most affect global markets through sharply higher oil prices,&#8221; UBS analysts wrote in a note.



&#8220;We would expect greater asset price swings in the event of a regional escalation that draws in other nations, such as Iran.&#8221;



The shekel&nbsp;ILS=&nbsp;was muted ahead of a central bank rate decision due at 1300 GMT, where economists expect it to stay pat on borrowing costs.



Elsewhere, Argentina&#8217;s sovereign dollar-denominated bonds fell as much as 4 cents on the dollar after Sergio Massa emerged as the frontrunner in the presidential vote on Sunday, setting the stage for a polarized run-off vote between the Economy Minister and far-right libertarian radical Javier Milei.



&#8220;Milei&#8217;s surprise win will only add to uncertainty ahead of the election proper in October, as investors consider what a Milei government would mean, and it appears to dent the JxC&#8217;s chances,&#8221; said Stuart Culverhouse, chief economist and global head of fixed income research at Tellimer.



Meanwhile, Chinese equities were a drag, with the blue-chip index&nbsp;.CSI300&nbsp;closing down 1.0%, its lowest in over 4-1/2 years amid lingering property sector worries.



Goldman Sachs&#8217; preferred gauge of foreign exchange flows showed September capital outflows from China rose sharply to $75 billion, the biggest monthly figure since 2016, underscoring intensifying depreciation pressure on the yuan.



More broadly, EM currencies have remained range-bound as investors were wary of riskier foreign exchange markets amid geopolitical uncertainties, while keeping an eye on the outlook for U.S. monetary policy.



In central and eastern Europe, Czech&#8217;s crown EURCZK= inched down 0.1% against the euro after central bank board member Jan Prochazka was quoted saying market expectations for two interest rate cuts this year are overdone.



In northern Africa, S&amp;P became the latest ratings agency to downgrade Egypt&#8217;s long-term sovereign credit rating by one notch to &#8220;B-&#8220;, citing the country&#8217;s mounting funding pressures.



(Reporting by Johann M Cherian in Bengaluru; Editing by Varun H K)

Equities tumble as rate worries, geopolitical tensions wear on

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="419" src="https://cms.cnbcafrica.com/wp-content/uploads/2023/10/2023-10-20T095534Z_1_SP6_RTRLXPP_2_LYNXPACKAGER-820x419.jpg" alt="" class="wp-image-428397" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/10/2023-10-20T095534Z_1_SP6_RTRLXPP_2_LYNXPACKAGER-820x419.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2023/10/2023-10-20T095534Z_1_SP6_RTRLXPP_2_LYNXPACKAGER-300x153.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/10/2023-10-20T095534Z_1_SP6_RTRLXPP_2_LYNXPACKAGER-160x82.jpg 160w, https://cms.cnbcafrica.com/wp-content/uploads/2023/10/2023-10-20T095534Z_1_SP6_RTRLXPP_2_LYNXPACKAGER-768x392.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2023/10/2023-10-20T095534Z_1_SP6_RTRLXPP_2_LYNXPACKAGER.jpg 1370w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">Credit: REUTERS/STRINGER</figcaption></figure>



CAPE TOWN, Oct 20 (Reuters)&nbsp;&#8211;&nbsp;Africa is at the forefront of a global wave of new floating gas facilities as countries on the continent seek to meet surging demand in Europe as quickly and cheaply as possible, analysts and energy companies told Reuters.



Eni&nbsp;ENI.MI, BP&nbsp;BP.L&nbsp;and smaller independent players such as Nigeria&#8217;s UTM&nbsp;Offshore&nbsp;are driving the surge with projects on Africa&#8217;s east and west coasts.



Floating Liquefied Natural Gas (FLNG) vessels shipped Mozambique&#8217;s first-ever gas exports last November, and the Republic of Congo is preparing for its first LNG exports in December.



Africa currently exports 40 million tons per annum (mmtpa) of gas, and Westwood Global Energy group expects the continent to add 10.2 mmpta in new FLNG capacity by 2027, with projects in Mozambique, Nigeria, Senegal, Mauritania and Republic of the Congo.



&#8220;We believe FLNG will be a nice tool of developing gas in a quicker and more efficient way,&#8221; Luca Vignati, Eni&#8217;s upstream director told Reuters.



Over the next five years Westwood forecasts $13 billion in spending on FLNG, with Africa accounting for just under 60% of the 18.3 mmpta of added FLNG capacity by 2027. It expects a further 36.5 mmpta to start up after 2027 valued at $22 billion.



<h2 class="wp-block-heading" id="h-taking-to-the-sea">TAKING TO THE SEA</h2>



FLNG facilities are ships that can pump, liquefy, store and export gas directly from offshore fields. They bypass extensive – and costly – infrastructure needed to process gas onshore, and keep a distance from communities who often protest against having projects nearby.



Operators, energy companies and bankers say improvements in vessel technology and turnaround times have hastened demand since Shell&#8217;s&nbsp;SHEL.L&nbsp;pioneering but delayed FLNG vessel Prelude, anchored off Australia.



&#8220;A typical FLNG can be done for a fraction of the cost of a traditional (LNG production) train,&#8221; Fola Fagbule, senior vice president with the African Finance Corporation, which has helped fund FLNG projects in Africa.



Illustrating potential savings, one analyst said capex costs for Cameroon&#8217;s Golar FLNG facility, a repurposed vessel, could be as low as $550 a ton, compared to $900-$1,100 for a new onshore terminal on the U.S. Gulf Coast.



Africa has struggled to pump its gas despite record prices following Russia&#8217;s invasion of Ukraine as the energy transition focus hit fossil fuel financing.



The energy transition has also made investors cautious about multi-billion-dollar projects with 20-30-year investment cycles. FLNG has a quicker turnaround, with Eni targeting new-build ships to produce just four years after investment.



&#8220;You don&#8217;t need to have a 25-year plateau for huge reserves. You may be there for five or 10 years, and then you move to the next field, and this is the flexibility we want,&#8221; Eni&#8217;s Vignati told Reuters.



<h2 class="wp-block-heading" id="h-at-the-centre">AT THE CENTRE</h2>



Africa currently has more than 50% of the world&#8217;s FLNG capacity. The offshore ships also bypass safety issues, such as those that delayed TotalEnergies&#8217; $20 billion Afungi terminal in northern Mozambique &#8211; adding to their appeal.



&#8220;Africa is the centre right now &#8230; and its going to grow,&#8221; Gavin Thompson, vice chair research at Wood Mackenzie told Reuters on the sidelines of an African energy conference in Cape Town.



&#8220;Interestingly it&#8217;s not one single country or one single region, we are seeing around both East and West Africa,&#8221; he said, adding, &#8220;they are competing against each other&#8221;.



The lower costs are also crucial. Wood Mackenzie data showed that the total amount of upstream capital expenditure across Africa is falling.



Eni is deploying two vessels, one repurposed and another larger new vessel, to the Republic of the Congo for a total expected output of 3 mmtpa by 2025.



It also plans to make a final investment decision with its JV partners regarding a second 3.4 mmtpa FLNG project in Mozambique&#8217;s Rovuma Basin by June next year.



Bruno Itoua, hydrocarbons minister for Congo Republic, told the Cape Town energy conference that its first exports would come by December 2023.



&#8220;It&#8217;s not only an investment opportunity but also an extraordinary chance to build a legacy,&#8221; he said.



African gas exports can be controversial, as around 600 million people, half of those on the continent, lack access to electricity.



But governments, some of which are in debt crises, are under pressure to rake in royalties and taxes while prices are hot.



Fagbule of the AFC said it was not unusual for governments to earmark some gas from FLNG facilities for domestic consumption, but that full-scale projects targeting domestic markets are tough to finance due to a limited amount of customers able to pay.



&#8220;They see the amount of demand for seaborne natural gas that can be delivered across the globe, and they are trying to get that as soon as possible,&#8221; he said.



(Reporting by Wendell Roelf and Libby George; editing by Jason Neely)

2023-10-20T095534Z_1_SP6_RTRLXPP_2_LYNXPACKAGER

Amid gas scramble, Africa leads a boom in nimble export facilities

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2023/05/Investment-management-820x547.jpg" alt="" class="wp-image-424734" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/05/Investment-management-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2023/05/Investment-management-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/05/Investment-management-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2023/05/Investment-management-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2023/05/Investment-management.jpg 1200w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">Stock</figcaption></figure>



Oct 19 (Reuters)&nbsp;&#8211;&nbsp;Sentiment was fragile on Thursday, with risky emerging markets stocks and currencies in the red as interest rate worries gathered steam and tensions in the Middle East showed little signs of easing.



MSCI&#8217;s gauge for emerging markets equities&nbsp;.MSCIEF&nbsp;had dropped 1.2% to a near two-week low by 0904 GMT.



The currencies index&nbsp;.MIEM00000CUS&nbsp;also fell 0.2%, pressured by rising U.S. bond yields on both long and short-dated tenors which hit multi-year highs.



With latest U.S. data hinting at a resilient economy, traders are pricing in restrictive monetary policy for a while as they await Federal Reserve Chair Jerome Powell&#8217;s remarks at 1600 GMT.&nbsp;US/



&#8220;As much as (EM central banks) like to keep up with the Fed, many of them had pushed rates into restrictive territory and do need to dial back a bit in order to support growth,&#8221; Jonathan Petersen, senior markets economist at Capital Economics said.



&#8220;It could keep rates elevated a little bit longer than maybe we had anticipated in emerging markets but ultimately this is a negative.&#8221;



Meanwhile, worries about China&#8217;s embattled property sector mounted, with Country Garden&#8217;s 2007.HK bondholders seeking urgent talks with the troubled property giant after it missed a $15 million coupon repayment, sources said.



Hong Kong&#8217;s Hang Seng&nbsp;.HIS&nbsp;tumbled 2.5%, bogged down by a 2.5% drop in property stocks&nbsp;.HSMPI.



Separately, data showed China&#8217;s September new home prices fell, dashing hopes of a turnaround in demand during a traditionally peak home buying period despite efforts to revive the crisis-hit sector.



Furthermore, the Israel-Hamas conflict continued to be factor for the mood across markets over the past couple of sessions as investors watched out for any signs of escalation.



The Israeli shekel ILS= held steady against the dollar, while the cost of insuring Israel&#8217;s debt against default shot over a 10-year high, according to S&amp;P Global Market Intelligence.



Bringing some relief to inflation worries, oil prices eased after OPEC showed no signs of supporting Iran&#8217;s call for an oil embargo on Israel and as the U.S. planned to ease Venezuela sanctions.&nbsp;O/R



In eastern and central Europe, Polish September industrial output fell by 3.1% on an annual basis, missing a forecast of 3.6% decline. The zloty EURPLN= inched up 0.1% against the euro.



Romania&#8217;s leu EURRON=R was little changed ahead of the publication of central bank&#8217;s minutes on monetary policy issues due at 1200 GMT.



(Reporting by Johann M Cherian in Bengaluru; Editing by Alison Williams)

Stocks tumble and FX slide as eyes on Powell’s Fed remarks

<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="612" height="350" src="https://cms.cnbcafrica.com/wp-content/uploads/2021/04/istockphoto-1040865674-612x612-1.jpg" alt="" class="wp-image-400879" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2021/04/istockphoto-1040865674-612x612-1.jpg 612w, https://cms.cnbcafrica.com/wp-content/uploads/2021/04/istockphoto-1040865674-612x612-1-300x172.jpg 300w" sizes="auto, (max-width: 612px) 100vw, 612px" /><figcaption class="wp-element-caption">Stock market report. 3d illustration</figcaption></figure>



Oct 18 (Reuters)&nbsp;&#8211;&nbsp;Equities and currencies across most emerging markets came under pressure on Wednesday as investors stayed clear of big bets as oil prices spiked following intensifying tensions in the Middle East.



Oil prices jumped after hundreds were killed in a blast at a Gaza hospital, sparking concerns that the conflict could widen into the broader region and involve big oil suppliers like Iran. O/R



Adding to jitters, Jordan cancelled a summit with U.S. President Joe Biden, Egyptian and Palestinian leaders.



Currencies of large crude importers like Turkey&#8217;s lira&nbsp;TRYTOM=D3&nbsp;hit a record low of 28.05 against the dollar, while India&#8217;s rupee&nbsp;INR=&nbsp;was flat.



&#8220;The conflict in the Middle East does provide an upside risk to monetary policy in emerging markets,&#8221; said Shaun Murison, senior market analyst at IG Markets.



&#8220;Oil prices have renewed an upward trajectory which if extended or maintained will provide significant cost pressures to these economies.&#8221;



MSCI&#8217;s gauge of emerging market equities&nbsp;.MSCIEF&nbsp;fell 0.5%, while the currencies index&nbsp;.MIEM00000CUS&nbsp;was flat by 0900 GMT.



In some relief, a set of China data suggested a recent flurry of policy measures was helping to bolster a tentative recovery in the world&#8217;s second-largest economy.



The spot yuan CNY=CFXSstrengthened after data signalled gross domestic product (GDP) grew in quarter three, while September industrial production and retail sales rose and beat expectations.



However, caution loomed as Country Garden&#8217;s 2007.HK $15 million coupon payment deadline expired without word of payment and Hong Kong&#8217;s property sector .HSMPI closed 0.7% lower.



Riskier emerging markets currencies have seen little action recently as investors stayed wary amid a spiralling Israel-Hamas conflict, while keeping an eye on the U.S. monetary policy outlook and signs of a China recovery.



Israel&#8217;s shekel ILS= shed 0.1% and government bonds ticked lower after ratings agency Fitch placed its sovereign debt rating on watch negative and warned of negative rating action in case of major conflict escalation.



Meanwhile, Saudi Arabia&#8217;s sovereign wealth fund started taking orders for its debut dollar-denominated, dual-tranche Islamic bond.



Elsewhere, South Africa&#8217;s rand ZAR= added 0.3% after data showed September consumer inflation rose to 5.4% year-on-year from 4.8% in August.



Murison said the figures were unlikely to change the path of monetary policy in South Africa and expectations are that the central bank will maintain lending rates at current levels until the end of the year.



(Reporting by Johann M Cherian in Bengaluru; editing by Robert Birsel)

Stocks slide, FX flat as Middle East conflict rages on

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="575" src="https://cms.cnbcafrica.com/wp-content/uploads/2023/10/ESTA5AKTRBK5THV6C5GSBJUMNQ-820x575.jpg" alt="" class="wp-image-428255" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/10/ESTA5AKTRBK5THV6C5GSBJUMNQ-820x575.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2023/10/ESTA5AKTRBK5THV6C5GSBJUMNQ-300x210.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/10/ESTA5AKTRBK5THV6C5GSBJUMNQ-128x90.jpg 128w, https://cms.cnbcafrica.com/wp-content/uploads/2023/10/ESTA5AKTRBK5THV6C5GSBJUMNQ-768x538.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2023/10/ESTA5AKTRBK5THV6C5GSBJUMNQ-1536x1077.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2023/10/ESTA5AKTRBK5THV6C5GSBJUMNQ-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">FILE PHOTO: African Development Bank President Akinwumi Adesina attends an inteview with Reuters at the COP27 climate summit in the Red Sea resort in Sharm el-Sheikh, Egypt, November 12, 2022. REUTERS/Emilie Madi/File Photo</figcaption></figure>



MARRAKECH, Morocco, Oct 16 (Reuters)&nbsp;&#8211;&nbsp;The African Development Bank is planning to issue its first hybrid capital bond before year-end if financial markets are stable, its chief financial officer told Reuters.



The bond will be a &#8220;benchmark&#8221; size, Hassatou Diop N&#8217;Sele told Reuters in an interview on the sidelines on the International Monetary Fund (IMF) and World Bank Annual Meetings in Marrakech, Morocco.



She declined to specify an amount or pricing, but said the AfDB note will have &#8220;100% equity content&#8221;.



Hybrid capital bonds are debt-like equity instruments that have a lower credit rating than more senior bonds.



Multilateral development banks are under pressure to maximise their balance sheets and adopt innovative forms of financing in order to lend more for development and tackling climate change.



&#8220;We are just looking for the right window in the market, to come in,&#8221; N&#8217;Sele said.



&#8220;It could be as soon as next week. We just need stability in the markets,&#8221; she said, adding: &#8220;It&#8217;s something that we would want to do this year, and I&#8217;m sure that there&#8217;s going to be a market for it.&#8221;



S&amp;P Global, which gave the upcoming notes an AA-minus credit rating compared to the bank&#8217;s AAA rating, said it expects the issuance to be between $250 million and $1 billion &#8220;subject to market conditions&#8221;.



As multilateral development banks try to meet demands for reform, the World Bank last week laid out ambitious plans to speed up and boost lending.



Meanwhile, IMF member countries failed to agree on a U.S.-backed plan to boost IMF funding without giving more shares to China and other big emerging markets.



(Reporting by Rachel Savage and Jorgelina do Rosario; Editing by Jan Harvey)

FILE PHOTO: African Development Bank President Adesina attends inteview at the COP27 in Sharm el-Sheikh

African Development Bank to issue first hybrid capital bond by year-end – CFO

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2021/05/Stock-value-rising-and-falling-820x547.jpg" alt="" class="wp-image-404443" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2021/05/Stock-value-rising-and-falling-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2021/05/Stock-value-rising-and-falling-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2021/05/Stock-value-rising-and-falling-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2021/05/Stock-value-rising-and-falling.jpg 1254w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">Macro view of a screen of trading terminal with abstract financial graph and digits. Trading and forex concept. 3D Rendering</figcaption></figure>



Oct 16 (Reuters)&nbsp;&#8211;&nbsp;Most emerging market stocks and currencies fell on Monday with investors jittery as tensions escalated in the Middle East, but Poland&#8217;s zloty jumped after a weekend election with the opposition looking set to oust the ruling nationalists.



MSCI&#8217;s gauge for emerging market equities&nbsp;.MSCIEF&nbsp;slid 0.7% to a near one-week low on concerns that the war between Israel and Hamas could spread to other areas in the region and pose a threat to oil supplies.



The currencies index&nbsp;.MIEM00000CUS&nbsp;had eased 0.1% by 0904 GMT.



Oil importer Turkey&#8217;s lira&nbsp;TRYTOM=D3&nbsp;was at 27.8 to the dollar as crude prices eased from Friday&#8217;s nearly 6% surge but remained above $90 a barrel.&nbsp;O/R



Traders in India, also an oil importer, said the Reserve Bank of India is likely selling dollars to ensure the rupee INR= does not fall to a record low against the dollar.



&#8220;Typically, such periods of risk-off are quite short-lived,&#8221; Commerzbank analysts wrote in a note, but they added that it is still &#8220;far too early to abandon risk-off&#8221; while it is unclear how Arab states will react to the conflict.



The Israeli shekel ILS= slipped 0.2% to its lowest levels in more than seven years even as central bank Governor Amir Yaron said on Sunday that the impact of the clash with Hamas on the country&#8217;s budget will be manageable.



Investors are also still concerned about U.S. monetary policy remaining tighter for longer as oil prices stay high, fuelling fears of a resurgence in inflation pressures.



In central and eastern Europe, Poland&#8217;s zloty EURPLN= spiked 1.3% and hit a nearly two-month high against the euro as the ruling Law and Justice party appeared to have lost their parliamentary majority, opening the way for the opposition to take power.



The local stock market&#8217;s benchmark WIG index .WIG also surged 2.7%, led by banks.



&#8220;I do expect that the better outlook for local and foreign investment and unlocking European Union funds could give the economy great potential and be positive for the currency in 2024,&#8221; said Rafal Benecki, chief economist at ING Bank.



Elsewhere, China&#8217;s central bank ramped up liquidity support as it rolled over medium-term policy loans in a latest effort to buttress investor confidence.



However, the country&#8217;s blue chips index .CSI300 and Hong Kong stocks .HSI both closed down 1.0%, tracking the broader weakness in global markets.



(Reporting by Johann M Cherian in Bengaluru; Editing by Kirsten Donovan)

Stocks, FX slide on geopolitical tension; zloty up on possible political shift

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="462" src="https://cms.cnbcafrica.com/wp-content/uploads/2022/09/107004870-16427966702022-01-21t201709z_969185203_rc2w3s99wb9o_rtrmadp_0_argentina-imf-mexico-820x462.jpeg" alt="" class="wp-image-420118" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2022/09/107004870-16427966702022-01-21t201709z_969185203_rc2w3s99wb9o_rtrmadp_0_argentina-imf-mexico-820x462.jpeg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2022/09/107004870-16427966702022-01-21t201709z_969185203_rc2w3s99wb9o_rtrmadp_0_argentina-imf-mexico-300x169.jpeg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2022/09/107004870-16427966702022-01-21t201709z_969185203_rc2w3s99wb9o_rtrmadp_0_argentina-imf-mexico-160x90.jpeg 160w, https://cms.cnbcafrica.com/wp-content/uploads/2022/09/107004870-16427966702022-01-21t201709z_969185203_rc2w3s99wb9o_rtrmadp_0_argentina-imf-mexico-768x432.jpeg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2022/09/107004870-16427966702022-01-21t201709z_969185203_rc2w3s99wb9o_rtrmadp_0_argentina-imf-mexico.jpeg 929w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">The new economic measures laid out by the U.K. government “will likely increase inequality”, according to a spokesperson from the International Monetary Fund.
Yuri Gripas | Reuters</figcaption></figure>



MARRAKESH, Oct 13 (Reuters)&nbsp;&#8211;&nbsp;Germany will inject an additional 80 million euros ($84.27 million) into the International Monetary Fund&#8217;s low-income trust for poor countries, Finance Minister Christian Lindner said on the sidelines of the IMF&#8217;s meeting in Marrakesh on Friday.



The IMF has been urging member countries to fill a $1.2 billion gap in the $3 billion subsidy account.



Japan already made a &#8220;very impressive pledge&#8221; this week, according to IMF Managing Director Kristalina Georgieva.



The IMF expects further funds for the Poverty Reduction and Growth Trust (PRGT), which provides subsidies to enable zero-interest rate loans to the poorest countries, on Saturday.



The PRGT, created in 2021 to mitigate the effects of the coronavirus pandemic, has helped over 50 countries, including Haiti and Nepal, with loans worth around $29 billion.



($1 = 0.9493 euros)



IMF&#8217;s Georgieva lauds Japan&#8217;s contribution to low-income trust, sees more coming.



(Reporting by Andreas Shalal and Christian Kraemer; Writing by Miranda Murray; Editing by Rachel More)

107004870-16427966702022-01-21t201709z_969185203_rc2w3s99wb9o_rtrmadp_0_argentina-imf-mexico

Germany adds extra 80 mln euros to IMF pot for poor countries

<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="612" height="350" src="https://cms.cnbcafrica.com/wp-content/uploads/2021/04/istockphoto-1040865674-612x612-1.jpg" alt="" class="wp-image-400879" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2021/04/istockphoto-1040865674-612x612-1.jpg 612w, https://cms.cnbcafrica.com/wp-content/uploads/2021/04/istockphoto-1040865674-612x612-1-300x172.jpg 300w" sizes="auto, (max-width: 612px) 100vw, 612px" /><figcaption class="wp-element-caption">Stock market report. 3d illustration</figcaption></figure>



Oct 13 (Reuters)&nbsp;&#8211;&nbsp;Risk sentiment across most emerging markets soured on Friday, with stocks and currencies tumbling as evidence of China&#8217;s wobbly economic recovery depressed sentiment and concerns about U.S. interest rates resurfaced.



MSCI&#8217;s index tracking emerging markets equities&nbsp;.MSCIEF&nbsp;slid 1.0%, with China&#8217;s blue chip index&nbsp;.CSI300&nbsp;and Hong Kong&#8217;s Hang Seng&nbsp;.HIS&nbsp;dropping 1.1% and 2.3%, respectively.



Data showed consumer prices in China faltered in September, showing persistent deflationary pressures, though a narrowing trade slump offered some hope of stabilisation in the top consumer.



&#8220;Trade data suggests the situation is improving, though soft developed market demand underscores that China may need to rely more on domestic demand to sustain its recovery,&#8221; UBS analysts wrote in a note.



&#8220;We think a bottom is near as policy support kicks in and more signs suggest a turn in the economy.&#8221;



Emerging markets currencies&nbsp;.MIEM00000CUS&nbsp;fell 0.2% by 8:47 GMT against the dollar.



Worries that the U.S. Federal Reserve will stay restrictive on monetary policy for longer than previously expected were also an overhang following a hotter-than-expected headline inflation number on Thursday.



A rise in crude prices on Friday clouded the outlook for inflation while traders were also nervous as the conflict in Middle East raged on for another day ahead of Israel&#8217;s credit rating review by Moody&#8217;s.



Israel Bonds, the Israel government&#8217;s vehicle for diaspora bonds, said the country raised $200 million from diaspora bond sales since the conflict began, while iShares MSCI Israel exchange-traded fund (EIS) EIS.N suffered substantial outflows this week after its price hit a three-year low.



But currencies and stocks in the region remain on course for their first weekly gain in four weeks, helped by dovish comments from U.S. policymakers in the days leading up to the U.S. inflation report.



Emerging markets-focused fund manager AshmoreASHM.L said assets under management fell in the third quarter, with net outflows of $2.9 billion, amid subdued market conditions due to weaker China economic data and high interest rates.



In central and eastern Europe, Poland&#8217;s zloty&nbsp;PLN=&nbsp;inched lower against the euro. Final data confirmed September consumer prices were at 8.2% year-on-year.



Romania&#8217;s leu RON= shed 0.1% and Czech&#8217;s crown CZK= added 0.2% ahead of an S&amp;P Global&#8217;s credit rating review.



(Reporting by Johann M Cherian and Amruta Khandekar in Bengaluru; Editing by Krishna Chandra Eluri)

Stocks, currencies slide as China data, rate concerns weigh

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2023/02/F4TO3YKQWNK6NCNXZJUQ2UEGC4-820x547.jpg" alt="" class="wp-image-423316" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/02/F4TO3YKQWNK6NCNXZJUQ2UEGC4-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2023/02/F4TO3YKQWNK6NCNXZJUQ2UEGC4-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/02/F4TO3YKQWNK6NCNXZJUQ2UEGC4-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2023/02/F4TO3YKQWNK6NCNXZJUQ2UEGC4-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2023/02/F4TO3YKQWNK6NCNXZJUQ2UEGC4-1536x1024.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2023/02/F4TO3YKQWNK6NCNXZJUQ2UEGC4-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">FILE PHOTO: A man walks past the International Monetary Fund (IMF) logo at its headquarters in Washington, U.S., May 10, 2018. REUTERS/Yuri Gripas/</figcaption></figure>



MARRAKECH, Morocco, Oct 11 (Reuters)&nbsp;&#8211;&nbsp;Support increased on Wednesday for the U.S.-backed call to&nbsp;boost&nbsp;the International Monetary Fund&#8217;s&nbsp;quota lending resources without shareholding changes, according to statements from various countries issued at the IMF&#8217;s annual meeting in Morocco.



France,&nbsp;Britain, Ghana, Switzerland, Finland and Belgium said in statements to the IMF&#8217;s steering committee that they supported an equi-proportional increase, under which countries would contribute money in proportion to their current shareholding in the IMF.



Brazil&#8217;s finance minister,&nbsp;Fernando&nbsp;Haddad, who has pushed for an increase in shareholding for itself, China and other fast-growing emerging markets, said in a statement that Brazil would support such a quota increase if it were coupled with&nbsp;an &#8220;ad-hoc&#8221; share increase for the most &#8220;blatantly underrepresented&#8221; IMF members.



The IMF said on Tuesday that it was seeing &#8220;substantial support&#8221; for the U.S. proposal, aimed at bolstering the IMF&#8217;s $1 trillion in lending firepower and keeping it at the center of the global financial safety net.



IMF Managing Director Kristalina Georgieva said the extra resources were needed to ensure the IMF can respond to another large-scale crisis. With momentum growing behind the U.S. proposal, she has called for a deadline to realign voting power to reflect the growth of big emerging markets and preserve the fund&#8217;s political legitimacy, adding that without an adjustment, &#8220;we are stuck.&#8221;



Quota contributions, which are based on member countries&#8217; shareholdings, now account for only about 40% of the IMF&#8217;s total resources, with emergency capital pledges and bilateral borrowings making up the rest.



The last increase in quotas took place in 2010, when China&#8217;s GDP was one third its current level. China would be the biggest winner in any share realignment, with 6.08% of the IMF&#8217;s voting power and roughly 18% of global GDP.



But with anti-China sentiment running high in the U.S. Congress, any IMF funding increase that increases Beijing&#8217;s influence would face stiff opposition.



U.S. Treasury Secretary Janet Yellen proposed the money now, shares later plan as a way to sidestep the China issue and speed resources to the IMF.



She said in her statement to the International Monetary and Financial Committee that the U.S. was committed to a &#8220;fair and simple&#8221; share realignment based on economic size, but &#8220;we regret&#8221; that one has not been reached.



&#8220;In the absence of a new formula, an equi-proportional increase is the only viable outcome that avoids arbitrarily picking winners and losers,&#8221; she said.



Ghana&#8217;s central bank governor Ernest Addison, in a statement also representing host country Morocco and Algeria, Iran, Libya, Pakistan and Tunisia, said that the U.S. proposal &#8220;is not our first option&#8221;



&#8220;For the sake of reaching a compromise in the coming weeks, we support a substantial equi-proportional increase in quotas of at least 50%,&#8221; an amount he also said was inadequate to meet developing countries&#8217; needs.



A 50% quota increase would be equivalent to about $312 billion at current exchange rates.



(Reporting by David Lawder; Editing by Alex Richardson and Andrea Ricci)

FILE PHOTO: Man walks past the IMF logo at HQ in Washington

Money now, shares later: more IMF countries voice support for pragmatic IMF funding boost

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2021/05/Stock-value-rising-and-falling-820x547.jpg" alt="" class="wp-image-404443" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2021/05/Stock-value-rising-and-falling-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2021/05/Stock-value-rising-and-falling-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2021/05/Stock-value-rising-and-falling-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2021/05/Stock-value-rising-and-falling.jpg 1254w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">Macro view of a screen of trading terminal with abstract financial graph and digits. Trading and forex concept. 3D Rendering</figcaption></figure>



Oct 11 (Reuters)&nbsp;&#8211;&nbsp;Emerging market equities and currencies hit a two-week high on Wednesday as hopes of fresh stimulus from China and a dovish shift in tone from several Federal Reserve policymakers eclipsed geopolitical concerns in the Middle East.



MSCI&#8217;s index for emerging market equities&nbsp;.MSCIEF&nbsp;rose 1.2% by 0902 GMT, extending a 1% jump from the previous session.



Stocks in China .CSI300 and Hong Kong .HSI rose on a report that Beijing is preparing new stimulus to meet growth targets. The International Monetary Fund had on Tuesday cut its growth forecast for China amid a real estate crisis.



South Korea&#8217;s benchmark stock index .KS11climbed nearly 2%, posting its biggest gain in nine months as shares of chipmakers and battery manufacturers, including Samsung Electronics 005930.KS rallied on robust earnings reports.



The currencies index .MIEM00000CUS advanced 0.2%, with the dollar =USD rangebound after a number of top Fed officials suggested that a rise in U.S. Treasury yields could have reduced the need for further policy tightening.



Optimism around China and easing jitters around the Fed&#8217;s rate trajectory have lifted sentiment towards risk-sensitive assets and pressured U.S yields following a jolt on Monday from the conflict between Israel and Palestinian Islamist group Hamas.



Israel launched a diaspora bond campaign on Tuesday to raise money amid a war with Hamas, according to posts on social media sites linked with Israel Bonds.



&#8220;Investors are struggling to assess how that conflict may develop, because obviously the key question is whether it&#8217;s going to escalate or not,&#8221; said Piotr Matys, senior FX analyst at In Touch Capital Markets.



&#8220;We&#8217;re going to have key U.S. data and that will provide fresh clues on how long the Fed may have to maintain that tight monetary policy. And that data probably is going to be a short distraction from the main focus on geopolitics.&#8221;



Later in the day, investors will assess minutes from the Fed&#8217;s rate-setting meeting last month when it held interest rates steady, with Thursday&#8217;s data on consumer prices also on the watchlist.



The South African rand&nbsp;ZAR=&nbsp;rose 0.7% while the Turkish lira&nbsp;TRYTOM=D3&nbsp;was flat at 27.273 to the dollar.



Central and Eastern European currencies also firmed against the euro with Hungary&#8217;s forint EURHUF= up 0.3% ahead of the release of minutes from the central bank&#8217;s last rate-setting meeting.



(Reporting by Amruta Khandekar; Editing by Varun H K)

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Economy

Stocks rise, FX tepid ahead of Fed rate decision

Africa unlikely to follow East Asia’s manufacturing growth path -study

FX inches up ahead of US inflation data, China stocks boost EM

Stocks retreat to 11-mth low on rate jitters; Turkish rate decision on tap

Stocks steady after China stimulus, FX inch down amid geopolitical jitters

Stocks, FX steady amid US bond yields relief; Hungarian rate decision due

World Bank’s Banga says geopolitics pose biggest, but not the only, risk to world economy

Equities tumble as rate worries, geopolitical tensions wear on

Amid gas scramble, Africa leads a boom in nimble export facilities

Stocks tumble and FX slide as eyes on Powell’s Fed remarks

Stocks slide, FX flat as Middle East conflict rages on

African Development Bank to issue first hybrid capital bond by year-end – CFO

Stocks, FX slide on geopolitical tension; zloty up on possible political shift

Germany adds extra 80 mln euros to IMF pot for poor countries

Stocks, currencies slide as China data, rate concerns weigh

Money now, shares later: more IMF countries voice support for pragmatic IMF funding boost

China stimulus hopes, dovish Fed tone lead EM assets to two-week high

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