<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="728" height="484" src="https://cms.cnbcafrica.com/wp-content/uploads/2022/11/4LUGRCGHSJNDZGLHXDIKTQRNZA.jpg" alt="" class="wp-image-421101" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2022/11/4LUGRCGHSJNDZGLHXDIKTQRNZA.jpg 728w, https://cms.cnbcafrica.com/wp-content/uploads/2022/11/4LUGRCGHSJNDZGLHXDIKTQRNZA-300x199.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2022/11/4LUGRCGHSJNDZGLHXDIKTQRNZA-135x90.jpg 135w" sizes="auto, (max-width: 728px) 100vw, 728px" /><figcaption>A small toy figure and gold imitation are seen in front of the Gold Fields logo in this illustration taken November 19, 2021. REUTERS/Dado Ruvic/Illustration/File Photo</figcaption></figure>



JOHANNESBURG, Nov 7 (Reuters)&nbsp;&#8211;&nbsp;The board of South Africa&#8217;s Gold Fields&nbsp;GFIJ.J&nbsp;will not change the terms of its offer for Yamana Gold&nbsp;YRI.TO&nbsp;after a surprise rival bid from Agnico Eagle&nbsp;AEM.TO&nbsp;and Pan American&nbsp;PAAS.TO, it said on Monday.



Gold Fields&#8217; decision reflects &#8220;commitment to capital discipline&#8221; and the &#8220;fairness&#8221; of its offer for shareholders in both Gold Fields and Yamana, the South Africa-listed miner said on Monday.



The joint&nbsp;<a href="https://www.reutersconnect.com/all?search=all%3AL4N3203GK&amp;linkedFromStory=true" target="_blank" rel="noreferrer noopener">cash and stock offer</a>&nbsp;from Agnico Eagle and Pan American on Friday trumps the Gold Fields bid, which valued Yamana at a little more than $4 billion at Thursday&#8217;s close.



&#8220;Gold Fields believes in the highly complementary fit of Yamana&#8217;s operating assets,&#8221; the company said.



Shares in Gold Fields shares slumped after it announced the&nbsp;<a href="https://www.reutersconnect.com/all?search=all%3AL4N2XN10P&amp;linkedFromStory=true" target="_blank" rel="noreferrer noopener">all-stock deal</a>&nbsp;in May, denting the deal&#8217;s value for Yamana shareholders.



Some investors have criticised the proposed acquisition and Gold Fields shares jumped by 11% on Friday as the market adjusted to the possibility that the deal may be off.



(Reporting by Helen Reid; Editing by David Goodman)

4LUGRCGHSJNDZGLHXDIKTQRNZA

Gold Fields will not make counter-bid for Yamana Gold

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="542" src="https://cms.cnbcafrica.com/wp-content/uploads/2022/11/POBJFU6SKBNANBIAFFY6LPUHTM-820x542.jpg" alt="" class="wp-image-421057" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2022/11/POBJFU6SKBNANBIAFFY6LPUHTM-820x542.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2022/11/POBJFU6SKBNANBIAFFY6LPUHTM-300x198.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2022/11/POBJFU6SKBNANBIAFFY6LPUHTM-136x90.jpg 136w, https://cms.cnbcafrica.com/wp-content/uploads/2022/11/POBJFU6SKBNANBIAFFY6LPUHTM-768x507.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2022/11/POBJFU6SKBNANBIAFFY6LPUHTM.jpg 960w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption>Russia&#8217;s President Vladimir Putin and Turkey&#8217;s President Tayyip Erdogan meet on the sidelines of the 6th summit of the Conference on Interaction and Confidence-building Measures in Asia (CICA), in Astana, Kazakhstan October 13, 2022. Sputnik/Vyacheslav Prokofyev/Pool via REUTERS/File Photo</figcaption></figure>



ISTANBUL, Nov 4 (Reuters)&nbsp;&#8211;&nbsp;Turkish President Tayyip Erdogan said on Friday that he had agreed with&nbsp;counterpart Vladimir&nbsp;Putin that&nbsp;Russian grains&nbsp;sent under the Black Sea export deal should go to poor African countries for free.



&#8220;In my phone call with Vladimir Putin, he said &#8216;Let&#8217;s send this grain to countries such as Djibouti, Somalia and Sudan for free&#8217; &#8211; and we agreed,&#8221; Erdogan said in a speech to businesspeople in Istanbul.



The comment came after Moscow&nbsp;resumed on Wednesday its participation in the U.N.&nbsp;and Turkey-brokered grain agreement,&nbsp;ending four days of non-cooperation that still saw exports continue from Ukrainian ports.



Earlier this week, Putin said even if Russia withdrew from the deal again, it would substitute the entire volume of grain destined for the &#8220;poorest countries&#8221; for free from its <a href="https://www.reutersconnect.com/all?search=all%3AL8N31Y3JS&amp;linkedFromStory=true" target="_blank" rel="noreferrer noopener">own stocks.</a>



This is a developing story&#8230;



(Reporting by Nevzat Deranoglu and Yesim Dikmen; Writing by Daren Butler;Editing by Ali Kucukgocmen and Jonathan Spicer)

Erdogan, Putin agreed to send Russian grains to poor African countries for free

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="546" src="https://cms.cnbcafrica.com/wp-content/uploads/2022/11/JTYTMAYTYRINPM3UJHYLDGEFX4-820x546.jpg" alt="" class="wp-image-420966" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2022/11/JTYTMAYTYRINPM3UJHYLDGEFX4-820x546.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2022/11/JTYTMAYTYRINPM3UJHYLDGEFX4-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2022/11/JTYTMAYTYRINPM3UJHYLDGEFX4-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2022/11/JTYTMAYTYRINPM3UJHYLDGEFX4-768x511.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2022/11/JTYTMAYTYRINPM3UJHYLDGEFX4.jpg 960w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption>A person shows U.S. dollars at a currency exchange store in Manila, Philippinens, October 21, 2022. REUTERS/Lisa Marie David</figcaption></figure>



LONDON, Nov 2 (Reuters)&nbsp;&#8211;&nbsp;The pace and scale of rate hikes delivered by central banks around the globe in October slowed down dramatically following September&#8217;s historic peak.



Central banks overseeing four of the 10 most heavily traded currencies delivered 200 basis points of rate hikes between them last month,&nbsp;while the remaining ones held rates.&nbsp;Policy makers at the&nbsp;<a href="https://www.reutersconnect.com/all?search=all%3AL8N31S3HE&amp;linkedFromStory=true" target="_blank" rel="noreferrer noopener">European Central Bank</a>, the&nbsp;<a href="https://www.reutersconnect.com/all?search=all%3AL4N31W006&amp;linkedFromStory=true" target="_blank" rel="noreferrer noopener">Reserve Bank of Australia</a>, the&nbsp;<a href="https://www.reutersconnect.com/all?search=all%3AL1N316026&amp;linkedFromStory=true" target="_blank" rel="noreferrer noopener">Reserve Bank of New Zealand</a>&nbsp;and the&nbsp;<a href="https://www.reutersconnect.com/all?search=all%3AL1N31R0TD&amp;linkedFromStory=true" target="_blank" rel="noreferrer noopener">Bank of Canada</a>&nbsp;raised lending rates.



By comparison, eight of the same 10 central banks raised rates by a combined total of 550 bps in September, the&nbsp;<a href="https://www.reutersconnect.com/all?search=all%3AL8N3151UQ&amp;linkedFromStory=true" target="_blank" rel="noreferrer noopener">fastest pace of tightening in at least two decades</a>.



The latest moves have brought total rate hikes in 2022 from G10 central banks to 2,050 bps.



&#8220;The pace of central bank tightening has likely peaked,&#8221; said Marko Kolanovic at JPMorgan in a note to clients.



&#8220;More dovish rhetoric from the ECB, BoC, Fed and RBA recently indicate the pace of central bank tightening is likely to slow in the coming months, though it is early to assess whether this means a lower terminal rate.&#8221;



Markets had recently taken heart from indications that rate hikes from major central banks &#8211; especially the U.S. Federal Reserve &#8211;&nbsp;were&nbsp;slowing down.



However, any optimism on that front might be premature, said Jean Boivin, head of the BlackRock Investment Institute.



&#8220;We see central banks on a path to overtighten policy,&#8221; said Boivin on Monday in a weekly outlook note from the world&#8217;s largest asset manager.



&#8220;We think the Fed, like other developed market central banks, will only stop when the severe damage from rate hikes is clearer. Rates have already hit levels that may trigger recessions, in our view.&#8221;



Policy makers and&nbsp;<a href="https://www.reutersconnect.com/all?search=all%3AL4N31Q13K&amp;linkedFromStory=true" target="_blank" rel="noreferrer noopener">analysts</a>&nbsp;have&nbsp;<a href="https://www.reutersconnect.com/all?search=all%3AL1N31T0F6&amp;linkedFromStory=true" target="_blank" rel="noreferrer noopener">warned of a rising risk</a>&nbsp;of recession, especially in Europe.



Data from emerging market central banks painted a similar picture. Five out of 18 central banks delivered 325 bps of rate hikes in October &#8211; less than half of September&#8217;s tally and well below the monthly tally of 800-plus basis points in both June and July.



<a href="https://www.reutersconnect.com/all?search=all%3AL1N31L0GM&amp;linkedFromStory=true" target="_blank" rel="noreferrer noopener">Indonesia</a>,&nbsp;<a href="https://www.reutersconnect.com/all?search=all%3AL4N31B0FJ&amp;linkedFromStory=true" target="_blank" rel="noreferrer noopener">South Korea</a>,&nbsp;<a href="https://www.reutersconnect.com/all?search=all%3AL1N31412Q&amp;linkedFromStory=true" target="_blank" rel="noreferrer noopener">Israel</a>,&nbsp;<a href="https://www.reutersconnect.com/all?search=all%3AL1N31T26M&amp;linkedFromStory=true" target="_blank" rel="noreferrer noopener">Colombia</a>&nbsp;and&nbsp;<a href="https://www.reutersconnect.com/all?search=all%3AL1N31D2KT&amp;linkedFromStory=true" target="_blank" rel="noreferrer noopener">Chile</a>&nbsp;all raised interest rates with the hiking cycle also nearing its end though there are some differences in near-term trajectories. While policy makers in Chile indicated that no more rate hikes were in the offing for now, Israel&#8217;s central bank said it saw rates rising to&nbsp;<a href="https://www.reutersconnect.com/all?search=all%3AL1N3170M8&amp;linkedFromStory=true" target="_blank" rel="noreferrer noopener">levels above current levels</a>.



Meanwhile outlier Turkey, where President Tayyip Erdogan is pushing for lower interest rates, delivered a&nbsp;<a href="https://www.reutersconnect.com/all?search=all%3AL8N31L47Y&amp;linkedFromStory=true" target="_blank" rel="noreferrer noopener">bigger-than-expected 150 bps benchmark cut</a>&nbsp;despite inflation&nbsp;<a href="https://www.reutersconnect.com/all?search=all%3AL8N31S3HE&amp;linkedFromStory=true" target="_blank" rel="noreferrer noopener">at above 80%.</a>



&#8220;The extent of the cost-of-living pressures are highly de-synchronised across the EM complex, with clear winners and losers,&#8221; said Ehsan Khoman at MUFG.



In total, emerging market central banks have raised interest rates by a total 6,765 bps year-to-date, more than double the 2,745 bps for the whole of 2021, calculations show.



G10 interest rates<a href="https://tmsnrt.rs/3Wxixp5" target="_blank" rel="noreferrer noopener">https://tmsnrt.rs/3Wxixp5</a>



Emerging markets interest rates<a href="https://tmsnrt.rs/3Uaicqc" target="_blank" rel="noreferrer noopener">https://tmsnrt.rs/3Uaicqc</a>



(Reporting by Karin Strohecker and Vincent Flasseur; Editing by Alexandra Hudson)

JTYTMAYTYRINPM3UJHYLDGEFX4

Central banks ease off on rate hike push in October

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="524" src="https://cms.cnbcafrica.com/wp-content/uploads/2022/10/WVFLV5ODJ5LQPPTDIYI7AHQZYI-820x524.jpg" alt="" class="wp-image-420922" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2022/10/WVFLV5ODJ5LQPPTDIYI7AHQZYI-820x524.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2022/10/WVFLV5ODJ5LQPPTDIYI7AHQZYI-300x192.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2022/10/WVFLV5ODJ5LQPPTDIYI7AHQZYI-141x90.jpg 141w, https://cms.cnbcafrica.com/wp-content/uploads/2022/10/WVFLV5ODJ5LQPPTDIYI7AHQZYI-768x491.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2022/10/WVFLV5ODJ5LQPPTDIYI7AHQZYI.jpg 960w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption>The Sierra Leone-flagged cargo ship Razoni, carrying Ukrainian grain, is seen in the Black Sea off Kilyos, near Istanbul, Turkey August 2, 2022. REUTERS/Yoruk Isik/File Photo</figcaption></figure>



SINGAPORE, Oct 31 (Reuters)&nbsp;&#8211;&nbsp;Russia&#8217;s weekend backtrack from a U.N.-brokered deal to export Black Sea grains is likely to hit shipments to import-dependent countries, deepening a global food crisis and sparking gains in prices.



Hundreds of thousands of tonnes of wheat booked for delivery to Africa and the Middle East are at risk following Russia&#8217;s withdrawal, while Ukrainian corn exports to Europe will get knocked lower, two Singapore-based traders said.



Russia on Saturday&nbsp;<a href="https://www.reutersconnect.com/all?search=all%3AL1N31U08Z&amp;linkedFromStory=true" target="_blank" rel="noreferrer noopener">suspended participation</a>&nbsp;in the U.N. grain deal for an &#8220;indefinite term&#8221;, after what it said was a major Ukrainian drone attack on its Black Sea fleet in Crimea.



&#8220;If I have to replace a vessel which was due to come from Ukraine, what are the options? Not much really,&#8221; said one Singapore-based grains trader who supplies wheat to buyers in Asia and the Middle East.



Chicago wheat futures on Monday jumped more than 5% and corn rose over 2% from the fears over supplies.&nbsp;GRA/



Earlier this year global wheat prices&nbsp;Wv1&nbsp;jumped to an all-time high and corn&nbsp;Cv1&nbsp;hit a 10-year top as Russia&#8217;s invasion of Ukraine added fuel to a rally set off by adverse weather and COVID-19 supply disruptions.



Australia, a key wheat supplier to Asia, is unlikely to be able to fill any supply gap, with shipping slots booked right up to February, traders said.



Shares in Australia&#8217;s Graincorp&nbsp;GNC.AX&nbsp;&#8211; which posted a five-fold jump in H1 profit due to supply constraints arising from the Russia-Ukraine conflict &#8211;&nbsp;<a href="https://www.reutersconnect.com/all?search=all%3AL4N31W0RS&amp;linkedFromStory=true" target="_blank" rel="noreferrer noopener">rose</a>&nbsp;more than 7%.



No ships moved through the established maritime humanitarian corridor on Sunday. The United Nations, Turkey and Ukraine, however,&nbsp;<a href="https://www.reutersconnect.com/all?search=all%3AL8N31V108&amp;linkedFromStory=true" target="_blank" rel="noreferrer noopener">pressed</a>&nbsp;ahead to implement the Black Sea grain deal and agreed on a transit plan for Monday for 16 vessels to move forward, despite the withdrawal of Russia.



&#8220;We have to see how the situation unfolds. It is not clear if Ukraine will continue to ship grains and what happens to Russian exports,&#8221; said the Singapore-based grains trader.



<h2 class="wp-block-heading" id="h-wheat-corn-vegoils">WHEAT, CORN &amp; VEGOILS</h2>



Asian buyers booking Ukrainian wheat cargoes include Indonesia, the world&#8217;s second-largest importer of the grain, although the region typically relies on Australia and North America.



In recent deals, Indonesian millers bought four cargoes or around 200,000 tonnes of Ukrainian wheat for November shipment in deals signed over the last few weeks, traders said. Some Vietnamese feed mills that bought Ukrainian wheat are also likely to suffer.



Last week, a government agency in Pakistan&nbsp;<a href="https://www.reutersconnect.com/all?search=all%3AL8N31V08Z&amp;linkedFromStory=true" target="_blank" rel="noreferrer noopener">bought</a>&nbsp;about 385,000 tonnes of wheat in a tender likely to be sourced from Russia and Ukraine.



&#8220;We are not sure if Russia will continue to export wheat or it will be safe for vessels carrying Russian wheat to ship from the Black Sea even as Ukrainian exports remain blocked,&#8221; said a second Singapore-based trader at an international company.



Ukraine&#8217;s corn exports to Europe booked for November are likely to be hit as well.



&#8220;As far as Europe is concerned, corn is a bigger issue than wheat as we are getting into peak season for Ukrainian corn in November,&#8221; said the second trader.



Russia&#8217;s decision is expected to support world vegetable oil prices as it threatens Ukraine&#8217;s sunflower oil exports to key destinations, including top edible oil importer India.



Malaysian palm oil futures jumped more than 4% on Monday.&nbsp;POI/



Under the U.N.-brokered grains deal, a Joint Coordination Centre (JCC) made up of U.N., Turkish, Russian and Ukrainian officials agrees on the movement of ships and inspects the vessels. More than 9.5 million tonnes of corn, wheat, sunflower products, barley, rapeseed and soy have been exported from the Black Sea since July.



Although global agricultural commodity prices have come off record highs in recent months, local retail food prices remain high and now face further upside.



&#8220;Typically, it takes about two months for higher grain prices to filter through the supply chain and impact consumers at the retail level,&#8221; said a Sydney-based analyst.



&#8220;But food processors do not have much forward coverage, so it is likely to be a lot quicker.&#8221;



Rising futures<a href="https://tmsnrt.rs/3TRBO2C" target="_blank" rel="noreferrer noopener">https://tmsnrt.rs/3TRBO2C</a>



Food worries<a href="https://tmsnrt.rs/3WfikGF" target="_blank" rel="noreferrer noopener">https://tmsnrt.rs/3WfikGF</a>



(Reporting by Naveen Thukral; Editing by Tom Hogue)

WVFLV5ODJ5LQPPTDIYI7AHQZYI

World food supplies at risk as Russia withdraws from Black Sea deal

<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>World map with charts and graphs as symbols of global finance</figcaption></figure>



Oct 26 (Reuters)&nbsp;&#8211;&nbsp;Emerging market currencies and stocks rose on Wednesday as the dollar weakened and wider risk sentiment improved on hopes of a less aggressive Federal Reserve, while the South African rand strengthened ahead of a budget speech later in the day.



The MSCI&#8217;s index for emerging markets currencies&nbsp;.MIEM00000CUS&nbsp;gained 0.9%, while stocks&nbsp;.MSCIEF&nbsp;added 2.2% on boost from 0.8% rise in heavyweight China shares&nbsp;.CSI300,&nbsp;.SSEC. Romanian&nbsp;.BETI, South African&nbsp;.JTOPI, Polish&nbsp;.WIG&nbsp;and Turkish&nbsp;.XU100&nbsp;stock indexes also gained between 0.1% and 1.1%.



The dollar index&nbsp;=USD&nbsp;fell 0.7% and U.S. Treasury yields eased after weak U.S. economic data suggested that the Fed&#8217;s aggressive policy to tame inflation is beginning to bite.



Emerging market currencies are highly exposed to global factors such as U.S. monetary policy tightening, which has pressured them by bolstering the dollar.



&#8220;We definitely see another revival of some Fed pivot hopes. Every time we are seeing the smallest signs that the Fed may be getting a little less hawkish &#8211; the market jumps at it,&#8221; said Witold Bahrke, senior macro strategist at Nordea Asset Management.



&#8220;In order for us to get more long term bullish on EM rather than tactically constructive here, we also need signs of capitulation, we are closer to a bottom in economic momentum and it&#8217;s too early for that.&#8221;



The South African rand&nbsp;ZAR=&nbsp;rose 1.2% to trade at 17.9898 against the dollar. The finance minister is expected to&nbsp;<a href="https://www.reutersconnect.com/all?search=all%3ARR:5877&amp;linkedFromStory=true" target="_blank" rel="noreferrer noopener">update economic forecasts</a>&nbsp;and make emergency changes to spending.



Hungary&#8217;s forint&nbsp;EURHUF=&nbsp;gained 0.9%, trading at 410.47 per euro, a day after its central bank left its&nbsp;<a href="https://www.reutersconnect.com/all?search=all%3AL1N31Q10H&amp;linkedFromStory=true" target="_blank" rel="noreferrer noopener">base rate unchanged</a>, while committing to its targeted emergency measures, including an 18% quick deposit scheme, to stabilize markets.



Elsewhere, the Polish zloty&nbsp;EURPLN=&nbsp;and the Czech crown&nbsp;EURCZK=&nbsp;dipped 0.1% each.



The Czech National Bank&#8217;s board member Tomas Holub said&nbsp;<a href="https://www.reutersconnect.com/all?search=all%3AL8N31Q2Q3&amp;linkedFromStory=true" target="_blank" rel="noreferrer noopener">higher interest rates were needed</a>&nbsp;to anchor inflation expectations. The two-week repo rate has stayed at 7.00% since June, while inflation has accelerated to 18%.



While emerging markets started their monetary policy tightening cycles well before developed economies, inflation has consistently exceeded expectations in those countries.



Brazil&#8217;s central bank decision is also due later in the day, where rates are expected to remain unchanged at 13.75%.



Meanwhile, the Chinese yuan&nbsp;CNY=CFXS&nbsp;snapped a four-day losing streak to log strongest close since Oct. 12, after it was&nbsp;<a href="https://www.reutersconnect.com/all?search=all%3AL4N31R0Q4&amp;linkedFromStory=true" target="_blank" rel="noreferrer noopener">reported</a>&nbsp;that some Chinese state-owned banks had sold dollars in onshore and offshore markets to curtail the beaten-down currency&#8217;s fall.



Chinese assets had sold off sharply in recent sessions after President Xi Jinping unveiled a leadership team of loyalists that heightened fears economic growth will be sacrificed for ideology-driven policies.



For GRAPHIC on emerging market FX performance in 2022, see&nbsp;<a href="http://tmsnrt.rs/2egbfVh" target="_blank" rel="noreferrer noopener">http://tmsnrt.rs/2egbfVh</a>



For GRAPHIC on MSCI emerging index performance in 2022, see&nbsp;<a href="https://tmsnrt.rs/2OusNdX" target="_blank" rel="noreferrer noopener">https://tmsnrt.rs/2OusNdX</a>



For TOP NEWS across emerging markets&nbsp;<a href="https://www.reutersconnect.com/all?search=all%3AR:.XU100&amp;linkedFromStory=true" target="_blank" rel="noreferrer noopener">Read full story</a>



(Reporting by Devik Jain in BengaluruEditing by Tomasz Janowski)

World map with charts and graphs as symbols of global finance

EM stocks, FX climb on hopes of less hawkish Fed; South Africa’s rand firms ahead of budget

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="558" src="https://cms.cnbcafrica.com/wp-content/uploads/2021/05/GettyImages-459296780-820x558.jpg" alt="" class="wp-image-403905" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2021/05/GettyImages-459296780-820x558.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2021/05/GettyImages-459296780-300x204.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2021/05/GettyImages-459296780-768x523.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2021/05/GettyImages-459296780-1536x1045.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2021/05/GettyImages-459296780-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption>An embossed logo of South Africa&#8217;s Reserve Bank sits on a document folder during a news conference with Lesetja Kganyago, governor of South Africa&#8217;s reserve bank, in Pretoria, South Africa, on Thursday, Nov. 20, 2014. Reserve Bank Governor Lesetja Kganyago kept South African borrowing costs unchanged in his debut policy meeting as Reserve Bank governor, reinforcing his pledge for continuity. Photographer: Dean Hutton/Bloomberg via Getty Images</figcaption></figure>



LONDON/JOHANNESBURG, Oct 19 (Reuters)&nbsp;&#8211;&nbsp;Sub-Saharan African banks are increasingly worried about funding costs, an annual survey published on Wednesday found, as soaring interest rates both on the continent and globally make financing more expensive.



The cost of local currency funding was now the top worry for Sub-Saharan Africa&#8217;s banks, according to a survey by the European Investment Bank of 70 institutions that account for 30% of the African continent&#8217;s assets.



Central banks from Nigeria to Kenya, Ghana and South Africa have aggressively raised interest rates in a bid to tame inflation and give some support to currencies that have been hammered by the U.S. dollar this year.



&#8220;The main concerns for banks are the cost of local currency funding, competition from the non-banking sector and deteriorating asset quality,&#8221; the EIB&#8217;s report said.



Banks were surveyed between April and June, meaning that the impact of the war in Ukraine had already begun to shape perceptions.



The most significant deterioration in asset quality was reported in small and medium enterprise (SME) loan books whereas loans given to larger firms were holding up better so far.



The percentage of banks with a significant share of nonperforming corporate loans (NPLs) is close to 21% overall but 37% of banks have a significant share of NPLs in their SME loan books.



Headline NPL figures do not tell the whole story either as there are now significant amounts of loans under moratoriums or restructuring which do not necessarily get counted in NPL figures.



More than one-third of banks have more than 10% of their loan book for small and medium firms under moratoriums. Two-fifths of banks have more than 10% of their SME book restructured although for many of those it is more than 20%.



Central Africa, which includes countries like Cameroon, Central African Republic, Chad, Democratic Republic of Congo, and Gabon, the region with the greatest existing issues with nonperforming loans at 19% of gross loans, is roughly 10 percentage points higher than the other regions, each of which have NPL ratios of 8–9%.



Central Africa (13%) and West Africa (16%) also have lower capital to risk-weighted asset ratios than East Africa (19%) or Southern Africa (19%), meaning they have less capacity to absorb any new problems related to asset quality.



&#8220;The concerns regarding non-performing loans cited by a large share of responding banks could mean that they expect NPL ratios to increase, even before this is reflected in official data,&#8221; the report said.



African banks&#8217; main concerns<a href="https://tmsnrt.rs/3VyT7GS" target="_blank" rel="noreferrer noopener">https://tmsnrt.rs/3VyT7GS</a>



African NPLs<a href="https://tmsnrt.rs/3CJZNJD" target="_blank" rel="noreferrer noopener">https://tmsnrt.rs/3CJZNJD</a>



(Reporting by Marc Jones in London and Rachel Savage in Johannesburg; Editing by Matthew Lewis)

South Africa’s New Reserve Bank Governor Lesetja Kganyago

African banks increasingly worried about funding costs, survey shows

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="542" src="https://cms.cnbcafrica.com/wp-content/uploads/2022/10/SB5JR63TYNIERG4MS3UFEWLWKU-820x542.jpg" alt="" class="wp-image-420525" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2022/10/SB5JR63TYNIERG4MS3UFEWLWKU-820x542.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2022/10/SB5JR63TYNIERG4MS3UFEWLWKU-300x198.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2022/10/SB5JR63TYNIERG4MS3UFEWLWKU-136x90.jpg 136w, https://cms.cnbcafrica.com/wp-content/uploads/2022/10/SB5JR63TYNIERG4MS3UFEWLWKU-768x507.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2022/10/SB5JR63TYNIERG4MS3UFEWLWKU-1536x1014.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2022/10/SB5JR63TYNIERG4MS3UFEWLWKU-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption>A street trader arranges fresh vegetables and fruit on a street in Pietermaritzburg, South Africa May 21, 2017. REUTERS/Rogan Ward</figcaption></figure>



JOHANNESBURG/LONDON, Oct 14 (Reuters)&nbsp;&#8211;&nbsp;Africa&#8217;s central banks are walking a tightrope trying to curb inflation that is mostly out of their control and causing &#8220;horrifying&#8221; food insecurity, the International Monetary Fund&#8217;s Africa head warned.



The IMF&#8217;s twice-yearly Regional Economic Outlook released on Friday warned that 123 million people, or 12% of sub-Saharan Africa&#8217;s population, face acute food insecurity &#8211; where the lack of access to adequate food puts someone&#8217;s life or livelihood in immediate danger &#8211; by the end of the year.



That compares to around 82 million people affected before the COVID-19 pandemic, but the hammer blow of the virus, spillovers from the war in Ukraine as well as worsening unrest and drought in parts of the continent have seen the numbers spiral.



&#8220;What worries us really is the fact that this is coming on top of all of the dislocation caused by the pandemic,&#8221; the IMF&#8217;s Abebe Selassie told Reuters this week.



&#8220;I was in&nbsp;<a href="https://www.reutersconnect.com/all?search=all%3AL4N3181HU&amp;linkedFromStory=true" target="_blank" rel="noreferrer noopener">Chad</a>&nbsp;(in May) and really the conditions that you saw there in terms of food security really are very, very horrifying.&#8221;



Ethiopia, Somalia and parts of Kenya are also on track for a&nbsp;<a href="https://www.reutersconnect.com/all?search=all%3AL8N30226N&amp;linkedFromStory=true" target="_blank" rel="noreferrer noopener">fifth failed rainy season</a>, with famine&nbsp;<a href="https://www.reutersconnect.com/all?search=all%3AL8N30K206&amp;linkedFromStory=true" target="_blank" rel="noreferrer noopener">looming in Somalia</a>.



Annual food price inflation in sub-Saharan Africa has stood at over 10% since the second half of 2021 and the IMF&#8217;s new economic forecasts this week revised up its regional inflation projection by 2 percentage points to 8.7% for this year.



It also cut the GDP growth forecast by 0.2 percentage points to 3.6%, a significant drop from the 4.7% expansion in 2021, and has said Nigeria, Ghana, Ethiopia, Malawi, and Zimbabwe may all need to raise interest rates faster or more decisively.



&#8220;It&#8217;s a delicate balancing act that central banks face,&#8221; Selassie said. &#8220;Inflation is this insidious, insidious tax on the poorest.&#8221;



Rapidly rising global interest rates mean that sub-Saharan Africa&#8217;s most heavily-indebted countries have effectively lost access to the international capital markets.



That has pushed countries including Ghana to request IMF bailouts and Selassie said work was still ongoing to determine if the West African country now needs debt relief.



Ethiopia, Zambia and Chad, meanwhile, had long been seeking to restructure their debts under the G20 Common Framework initiative established in 2020 in response to the COVID-19 pandemic.



Progress has been painfully slow. Ethiopia&#8217;s restructuring has been delayed by ongoing civil war, although IMF managing director Kristalina Georgieva has&nbsp;<a href="https://www.reutersconnect.com/all?search=all%3AL1N31B163&amp;linkedFromStory=true" target="_blank" rel="noreferrer noopener">said</a>&nbsp;this week she hoped both Zambia and Chad&#8217;s processes would now be finished by the end of the year.



Chad&#8217;s bilateral creditors said late Thursday that the country&nbsp;<a href="https://www.reutersconnect.com/all?search=all%3AL1N31E2WE&amp;linkedFromStory=true" target="_blank" rel="noreferrer noopener">now did not need debt relief</a>, given the surge in the price of crude oil, one of the country&#8217;s major revenue earners. Oil trading and mining firm Glencore&nbsp;GLEN.L, Chad&#8217;s largest commercial creditor, declined to comment.



&#8220;Is everything working as timely, as speedily as we hoped? No,&#8221; Selassie said, in an interview before the statement from Chad&#8217;s creditors. &#8220;But I also want to stress that there&#8217;s been quite a lot of cooperation from members of the G20, China and others.&#8221;



He said&nbsp;<a href="https://www.reutersconnect.com/all?search=all%3AL8N3183N3&amp;linkedFromStory=true" target="_blank" rel="noreferrer noopener">Zambia</a>&nbsp;and&nbsp;<a href="https://www.reutersconnect.com/all?search=all%3AL1N31B0LR&amp;linkedFromStory=true" target="_blank" rel="noreferrer noopener">Chad&#8217;s</a>&nbsp;restructurings now rely on the private firms and funds that provided the country with loans and that the IMF had been &#8220;very frustrated&#8221; the required debt relief for Chad had not been finalised.



&#8220;Anything that exceeds what is a reasonable ask of the Zambians would be unfair to the people of Zambia,&#8221; Selassie added.



He warned that more African countries might need to restructure their debt.



&#8220;If global conditions persist,&#8221; he said, &#8220;There will be some countries that will require debt reprofiling.&#8221;



Food prices rising again<a href="https://tmsnrt.rs/3yxJWwo" target="_blank" rel="noreferrer noopener">https://tmsnrt.rs/3yxJWwo</a>



(Reporting by Rachel Savage, Marc Jones and Jorgelina do Rosario, editing by Deepa Babington and Louise Heavens)

A street trader arranges fresh vegetables and fruit on a street in Pietermaritzburg

Global inflation causing ‘horrifying’ food insecurity, says IMF Africa head

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="575" src="https://cms.cnbcafrica.com/wp-content/uploads/2022/10/5N475JQ5NJLL7DWIG4KSBTEZAY-820x575.jpg" alt="" class="wp-image-420472" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2022/10/5N475JQ5NJLL7DWIG4KSBTEZAY-820x575.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2022/10/5N475JQ5NJLL7DWIG4KSBTEZAY-300x211.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2022/10/5N475JQ5NJLL7DWIG4KSBTEZAY-128x90.jpg 128w, https://cms.cnbcafrica.com/wp-content/uploads/2022/10/5N475JQ5NJLL7DWIG4KSBTEZAY-768x539.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2022/10/5N475JQ5NJLL7DWIG4KSBTEZAY-1536x1078.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2022/10/5N475JQ5NJLL7DWIG4KSBTEZAY-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption>A man prepares cocoa beans for sale in Daloa, which produces a quarter of Ivory Coast&#8217;s national cocoa output, File. REUTERS/ Thierry Gouegnon/File Photo</figcaption></figure>



ABIDJAN, Oct 12 (Reuters)&nbsp;&#8211;&nbsp;Cameroon and Nigeria have requested to join the Cote d&#8217;Ivoire-Ghana Cocoa Initiative (CIGCI), a joint body spearheading the interests of the two countries in the international cocoa trade, its top official said on Wednesday.



The initiative was set up after a 2018 declaration by Ivory Coast and Ghana, the world&#8217;s two largest cocoa producers, to define a common sustainable cocoa strategy that would raise prices paid to farmers.



It aimed to include other African countries.



Representatives from Nigeria and Cameroon, the world&#8217;s fourth- and fifth-largest cocoa producers, were invited to a CIGCI meeting in Abidjan to begin the process of joining the initiative, its Executive Secretary Alex Assanvo said.



&#8220;It is also the start of the accession process that will eventually allow their integration into our initiative,&#8221; he told reporters after the meeting.



A special assistant to Nigeria&#8217;s ministry of agriculture, Akeju Olagbaju, said the country was ready to join the initiative to improve farmers&#8217; revenues and create a &#8220;single voice to face the cocoa industry&#8221;.



Ivory Coast and Ghana accuse cocoa buyers of negotiating down so-called origin differentials &#8211; the premium for the coming month that chocolate-makers and cocoa merchants will pay for high-grade cocoa.



The CIGCI in May&nbsp;<a href="https://www.reutersconnect.com/all?search=all%3AL1N2XN1Z9&amp;linkedFromStory=true" target="_blank" rel="noreferrer noopener">took a drastic step</a>&nbsp;to publish these differentials in a bid to bring greater transparency to the process.



&#8220;With Cameroon and Nigeria we are going to represent around 75% of global cocoa production,&#8221; Yves Brahima Kone, chief executive of the Ivory Coast Cocoa and Coffee Council, said at the meeting.



&#8220;This will allow us to have more leeway in discussions with the industry on imposing a decent price for our cocoa farmers.&#8221;



(Reporting by Ange Aboa; Writing by Sofia Christensen; Editing by Jan Harvey, James Macharia Chege and Emelia Sithole-Matarise)

FILE PHOTO: Man prepares cocoa beans for sale in Daloa, which produces a quarter of Ivory Coast’s national cocoa output

Cameroon, Nigeria request to join Ivory-Ghana cocoa initiative

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="542" src="https://cms.cnbcafrica.com/wp-content/uploads/2022/10/KPE2GK5ZVJJHZB57EL2JIIY7FU-820x542.jpg" alt="" class="wp-image-420459" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2022/10/KPE2GK5ZVJJHZB57EL2JIIY7FU-820x542.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2022/10/KPE2GK5ZVJJHZB57EL2JIIY7FU-300x198.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2022/10/KPE2GK5ZVJJHZB57EL2JIIY7FU-136x90.jpg 136w, https://cms.cnbcafrica.com/wp-content/uploads/2022/10/KPE2GK5ZVJJHZB57EL2JIIY7FU-768x508.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2022/10/KPE2GK5ZVJJHZB57EL2JIIY7FU.jpg 960w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption>Economic Counsellor and Director of the Research Department at the International Monetary Fund (IMF) Gita Gopinath speaks during an interview with Reuters in the Alpine resort of Davos, Switzerland May 23, 2022. REUTERS/Arnd Wiegmann/File Photo</figcaption></figure>



LONDON, Oct 11 (Reuters)&nbsp;&#8211;&nbsp;Emerging markets do not face a systemic sovereign debt crisis, though many poorer nations do face big challenges, Gita Gopinath, the International Monetary Fund&#8217;s (IMF) first deputy managing director told a panel in Washington on Tuesday.



Speaking at an event during the annual IMF World Bank meeting, Gopinath said some 60% of low income countries were either already in debt distress or in high risk of debt distress.



&#8220;To be clear, it&#8217;s not as though we have a systemic sovereign debt crises there,&#8221; Gopinath said.



&#8220;The vast majority of emerging market economies are nowhere near there, but on the other side, we do have many countries, several of whom, for instance, are in Sub-Saharan Africa, where this is a major challenge.&#8221;



Speaking at the same event, Elena Duggar, managing director of credit strategy &amp; research at ratings agency Moody&#8217;s, also said she did not expect a widespread debt crisis across emerging economies, but predicted more countries would have to overhaul their debt burdens.



&#8220;Emerging markets are looking at a less supportive, external environment in terms of tighter financial conditions and slower growth,&#8221; said Duggar. &#8220;And we&#8217;re looking at high uncertainty and high risks in the economic environment and the possibilities of much deeper economic contractions, which normally translates into financial market volatility and episodes of stop and go market access &#8211; so this will mean an elevated default rates.&#8221;



(Reporting by Karin Strohecker; editing by David Evans)

KPE2GK5ZVJJHZB57EL2JIIY7FU

IMF’s Gopinath: Poorer nations do face big debt challenges

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="580" src="https://cms.cnbcafrica.com/wp-content/uploads/2022/10/WCZPBBHVQVN7XDXOEYM5ASUOUE-820x580.jpg" alt="" class="wp-image-420439" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2022/10/WCZPBBHVQVN7XDXOEYM5ASUOUE-820x580.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2022/10/WCZPBBHVQVN7XDXOEYM5ASUOUE-300x212.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2022/10/WCZPBBHVQVN7XDXOEYM5ASUOUE-127x90.jpg 127w, https://cms.cnbcafrica.com/wp-content/uploads/2022/10/WCZPBBHVQVN7XDXOEYM5ASUOUE-768x544.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2022/10/WCZPBBHVQVN7XDXOEYM5ASUOUE-1536x1087.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2022/10/WCZPBBHVQVN7XDXOEYM5ASUOUE-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption>David Malpass, president of the World Bank Group, arrives for a meeting with Japan&#8217;s Prime Minister Fumio Kishida (not in picture) at Kishida&#8217;s official residence in Tokyo, Japan September 13, 2022. REUTERS/Issei Kato/Pool</figcaption></figure>



WASHINGTON, Oct 10 (Reuters) &#8211; World Bank President David Malpass and International Monetary Fund Managing Director Kristalina Georgieva warned on Monday of a growing risk of global recession and said inflation remained a continuing problem after Russia&#8217;s invasion of Ukraine.



&#8220;There&#8217;s a risk and real danger of a world recession next year,&#8221; Malpass said in a dialogue with Georgieva at the start of the first in-person meetings of the two institutions since the COVID-19 pandemic.



He cited slowing growth in advanced economies and currency depreciation in many developing countries, as well as ongoing inflation concerns.



The IMF chief last week said the global lender would <a href="https://www.reuters.com/markets/us/imfs-georgieva-sees-darkening-outlook-global-economy-rising-recession-risks-2022-10-06/">downgrade its forecast</a> for 2.9% global growth in 2023 when it releases its World Economic Outlook on Tuesday, citing the shocks caused by the COVID-19 pandemic, Russia&#8217;s invasion of Ukraine and climate disasters on all continents.



On Monday, she noted that economic activity is slowing down in all three major economies &#8211; Europe, which has been hit hard by high natural gas prices, China, where housing volatility and COVID-19 disruptions are dragging down growth, and the United States, where interest rate hikes &#8220;are starting to bite.&#8221;



Slowing growth in advanced economies, rising interest rates, climate risks and continuing high food and energy prices are hitting developing countries particularly hard, both leaders said, calling for concerted action to help emerging markets.



Georgieva, the first IMF chief from an emerging market economy, said advanced economies needed to &#8220;get the big, scary danger of debt crisis under control&#8221; because it would affect all countries, not just those with high debt burdens.



&#8220;Not the rosy picture. But if we joined forces, if we act together, we can reduce the pain that is ahead of us in 2023.&#8221;



Georgieva said the IMF will be advocating this week for central banks to continue their efforts to contain inflation, despite the negative impact on growth.



If they don&#8217;t do enough, she said, &#8220;we are in trouble. &#8230; We cannot afford inflation to be a runaway train.&#8221;



Fiscal measures should be &#8220;well targeted&#8221; to ensure they did not add more &#8220;fuel to the flames of inflation.&#8221;



Malpass, who&nbsp;<a href="https://www.reuters.com/business/environment/world-banks-malpass-faces-calls-resign-after-climate-change-doubts-2022-09-21/">came under fire</a>&nbsp;last month for declining to say whether he accepts the scientific consensus on global warming, said officials at the bank were working hard to free up more funds to address climate problems facing so many developing countries.



Georgieva said the world needed a staggering $3 to $6 trillion to address climate change and it was essential to increase collaboration with the private sector and leverage funds &#8220;on scale&#8221; to help meet the needs.



Reporting by David Lawder and Andrea Shalal; Editing by Chizu Nomiyama and Andrea Ricci

David Malpass, president of the World Bank Group, arrives for a meeting with Japan’s Prime Minister Fumio Kishida in Tokyo

World Bank’s Malpass, IMF’s Georgieva see rising risks of global recession

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="546" src="https://cms.cnbcafrica.com/wp-content/uploads/2022/10/GettyImages-522825460-820x546.jpg" alt="" class="wp-image-420402" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2022/10/GettyImages-522825460-820x546.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2022/10/GettyImages-522825460-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2022/10/GettyImages-522825460-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2022/10/GettyImages-522825460-768x511.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2022/10/GettyImages-522825460-1536x1022.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2022/10/GettyImages-522825460-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption>Traders and clerks at work at the London Metal Exchange on July 22nd 2011 in London, United Kingdom. Benchmark copper on the London Metal Exchange traded at $9,719 a tonne in official rings from $9,685 a tonne on Thursday, when the metal used in power and construction fell to its lowest level this week. (photo by Paul Hackett/In Pictures via Getty Images Images)</figcaption></figure>



Oct 10 (Reuters)&nbsp;&#8211;&nbsp;Prices of most base metals in London fell on Monday, as better-than-expected U.S. jobs data raised concerns the Federal Reserve would stick&nbsp;to its&nbsp;rate-hike narrative to tackle inflation.



U.S. employers hired more workers than expected in September and the unemployment rate dropped, giving the Fed more ammunition to continue with its aggressive monetary policy tightening path.&nbsp;<a href="https://www.reutersconnect.com/all?search=all%3ARR:2050&amp;linkedFromStory=true" target="_blank" rel="noreferrer noopener">Read full story</a>



Rising interest rates in the United States are likely to strengthen the dollar and could hurt global economic growth and metals demand. A stronger dollar makes greenback-priced metals more expensive to holders of other currencies.



&#8220;NFP (nonfarm payrolls) were still ahead of expectations so the market sold off &#8230; We should get more relief rally after this NFP sell off is over,&#8221; said a metals trader, adding that the Chinese market is likely to be supported ahead of the country&#8217;s party congress later this month.&nbsp;<a href="https://www.reutersconnect.com/all?search=all%3AL4N30T14Q&amp;linkedFromStory=true" target="_blank" rel="noreferrer noopener">Read full story</a>



Three-month aluminium on the London Metal Exchange&nbsp;CMAL3&nbsp;was down 1.2%&nbsp;at $2,272 a tonne, as of 0716&nbsp;GMT, lead&nbsp;CMPB3&nbsp;lost 2% to $2,029&nbsp;a tonne and zinc&nbsp;CMZN3&nbsp;declined 0.2% to $2,986.50&nbsp;a tonne.



The most-traded November nickel contract on the Shanghai Futures Exchange&nbsp;SNIcv1&nbsp;dropped 3.1% to 179,200 yuan ($25,183.39) a tonne and tin&nbsp;SSNcv1&nbsp;shed 1.4%&nbsp;to 175,160&nbsp;yuan a tonne.



Meanwhile, copper prices rose after Chile, the world&#8217;s top producer of the metal, announced the permanent closure of copper mining stopes related to a giant sinkhole in the northern part of the country.&nbsp;<a href="https://www.reutersconnect.com/all?search=all%3AL1N3182UZ&amp;linkedFromStory=true" target="_blank" rel="noreferrer noopener">Read full story</a>



LME copper&nbsp;CMCU3&nbsp;rose 0.8% to $7,518.50&nbsp;a tonne and ShFE copper&nbsp;SCFcv1&nbsp;advanced 0.3% to 61,260&nbsp;yuan a tonne.



Other metals on the ShFE rose to catch up with gains in the London market as Chinese traders returned from a one-week holiday.



ShFE aluminium&nbsp;SAFcv1&nbsp;rose 1.6% to 18,565 yuan a tonne, zinc&nbsp;SZNcv1&nbsp;increased 1.8% to 24,305&nbsp;yuan a tonne and lead&nbsp;SPBcv1&nbsp;was up 1.5% at 15,245 yuan a tonne.



For the top stories in metals and other news, click



TOP/MTL&nbsp;or&nbsp;MET/L



($1 = 7.1158 yuan)



(Reporting by Mai Nguyen in Hanoi; Editing by Subhranshu Sahu, Sherry Jacob-Phillips and Louise Heavens)

Traders At London Metal Exchange In City Of London

Base metals fall as U.S. jobs data asserts rate-hike concerns

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="541" src="https://cms.cnbcafrica.com/wp-content/uploads/2022/10/MAYTHJVQABORJKORIVGBMJGKNE-820x541.jpg" alt="" class="wp-image-420345" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2022/10/MAYTHJVQABORJKORIVGBMJGKNE-820x541.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2022/10/MAYTHJVQABORJKORIVGBMJGKNE-300x198.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2022/10/MAYTHJVQABORJKORIVGBMJGKNE-136x90.jpg 136w, https://cms.cnbcafrica.com/wp-content/uploads/2022/10/MAYTHJVQABORJKORIVGBMJGKNE-768x506.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2022/10/MAYTHJVQABORJKORIVGBMJGKNE.jpg 960w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption>U.S. one dollar banknotes are seen in front of displayed stock graph in this illustration taken February 8, 2021. REUTERS/Dado Ruvic/Illustration</figcaption></figure>



JOHANNESBURG/BENGALURU, Oct 6 (Reuters)&nbsp;&#8211;&nbsp;Central bank intervention via U.S. dollar sales won&#8217;t strengthen emerging market currencies against an ever-dominant greenback, a Reuters poll found, and many analysts expected authorities to sit this round out or hike rates more aggressively.



Most emerging market currencies have hit their lowest levels in at least a decade and will probably remain around there or sink deeper as the dollar is yet to reach an inflection point, according to currency strategists polled by Reuters Sept. 30-Oct. 5.



After the U.S. Federal Reserve turned to an uber-hawkish stance earlier this year to tame stubbornly high inflation, a few emerging market central banks began selling dollar reserves to stem capital outflows and defend local currencies. However, the sell-off has not abated.



&#8220;Selling the U.S. dollar might help limit the depreciation of emerging market currencies, but it won&#8217;t be enough to stop it as risk aversion will continue to increase,&#8221; said Hendrix Vachon, a senior economist at Desjardins.



In response to an extra question, around one third or 14 of 45 strategists said nothing could be done to strengthen emerging market currencies over the coming six months.



About 40% said hiking interest rates more aggressively was the best approach to stem the downturn, while 13% proposed continuing selling dollars.



The decision by OPEC+ at a Vienna meeting on Wednesday to&nbsp;<a href="https://www.reutersconnect.com/all?search=all%3AL1N3152O3&amp;linkedFromStory=true" target="_blank" rel="noreferrer noopener">cut oil production</a>&nbsp;by the deepest level since the 2020 COVID pandemic is set to steamroll emerging market currencies and intensify the gnawing investor sentiment.



The most traded currency in emerging markets &#8211; the tightly controlled Chinese yuan&nbsp;CNY=&nbsp;&#8211; was expected to hover around 7.13/$ after hitting 7.25/$ last week, a level last seen during the&nbsp;<a href="https://www.reutersconnect.com/all?search=all%3AL1N30Z054&amp;linkedFromStory=true" target="_blank" rel="noreferrer noopener">global financial crisis</a>&nbsp;of 2008.



That weakness was despite&nbsp;<a href="https://www.reutersconnect.com/all?search=all%3AL4N30Z2C0&amp;linkedFromStory=true" target="_blank" rel="noreferrer noopener">interventions</a>&nbsp;by Chinese authorities in recent weeks to slow the yuan&#8217;s slide, showing relative success compared with other battered currencies. But analysts said they face long odds against an unstoppable dollar.



The yuan was expected to recover marginally to 7.03 per dollar by end-March.



&#8220;China&#8217;s trade and basic balance&#8230;is expected to deteriorate more sharply going into 2023-24FY at a time when policy rates will remain unchanged and its widening negative rate differentials with the U.S. could continue to exert more depreciation pressure,&#8221; noted Johanna Chua, chief economist for Citi Asia-Pacific.



Like other smaller EM currencies, South Africa&#8217;s rand &#8211; heavily reliant on China&#8217;s appetite for its commodities &#8211; was unlikely to mimic its biggest single country trading partner&#8217;s currency. The rand was expected to lose another 0.5% to 17.92/$ within a month and trade near those levels by year-end.



Mark Cus Babic, macro research analyst at Barclays, noted the rand should remain affected by global risk sentiment.



Terms of trade have deteriorated in Africa&#8217;s biggest economy and the current account was expected to swing to deficit in the coming year, according to a separate&nbsp;<a href="https://www.reutersconnect.com/all?search=all%3AKBN2QG0BD&amp;linkedFromStory=true" target="_blank" rel="noreferrer noopener">Reuters poll</a>.



The Russian rouble, which has also been artificially propped up since the invasion of Ukraine was expected to lose 7% to 65.00/$ in six months. Barclays said in a note the rouble no longer seemed to react to economic developments.



Asia&#8217;s third largest economy, India, was likely to see its battered currency&nbsp;INR=IN&nbsp;trading around its current level of 81.5/$ by end-year, vulnerable to a worsening trade balance and aggressive U.S. Federal Reserve rate-hiking.



(For other stories from the October Reuters foreign exchange poll:&nbsp;<a href="https://www.reutersconnect.com/all?search=all%3AL4N3152FQ&amp;linkedFromStory=true" target="_blank" rel="noreferrer noopener">Read full story</a>)



Reuters Poll- Emerging market currency outlook: <a href="https://tmsnrt.rs/3fFOJFE" target="_blank" rel="noreferrer noopener">https://tmsnrt.rs/3fFOJFE</a>



(Reporting by Vuyani Ndaba and Arsh Tushar Mogre; Polling by Anant Chandak, Devayani Sathyan and Veronica Khongwir; Editing by Elaine Hardcastle)

MAYTHJVQABORJKORIVGBMJGKNE

Aggressive rate hikes best option but unlikely to quell EMFX sell-off

<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="640" height="360" src="https://cms.cnbcafrica.com/wp-content/uploads/2021/03/istockphoto-1250489640-640x640-1.jpg" alt="" class="wp-image-400524" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2021/03/istockphoto-1250489640-640x640-1.jpg 640w, https://cms.cnbcafrica.com/wp-content/uploads/2021/03/istockphoto-1250489640-640x640-1-300x169.jpg 300w" sizes="auto, (max-width: 640px) 100vw, 640px" /><figcaption>World Bank on glass building. Mirrored sky and city modern facade. Global capital, business, finance, economy, banking and money concept seamless and loopable 3D rendering animation.</figcaption></figure>



WASHINGTON, Oct 5 (Reuters)&nbsp;&#8211;&nbsp;Shocks related to the COVID-19 pandemic and Russia&#8217;s war against Ukraine mean the world is unlikely to meet a longstanding goal of ending extreme poverty by 2030, the World Bank said in a new report released on Wednesday.



The COVID-19 pandemic marked a historic turning point after decades of poverty reduction, the report said, with 71 million more people living in extreme poverty in 2020.



That meant 719 million people &#8211; or about 9.3% of the world&#8217;s population &#8211; were living on just $2.15 a day, and the ongoing war, reduced growth in China and higher food and energy prices threatened to further stall efforts to reduce poverty, it said.



Barring sharp growth gains, an estimated 574 million people, or about 7% of the world&#8217;s population, would still be subsisting at that same income level by 2030, mostly in Africa, it said.



World Bank President David Malpass said the new Poverty and Shared Prosperity report showed the grim outlook facing tens of million of people, and called for major policy changes to boost growth and help jumpstart efforts to eradicate poverty.



“Progress in reducing extreme poverty has essentially halted in tandem with subdued global economic growth,” he said in a statement, blaming inflation, currency depreciations and broader overlapping crises for the rise in extreme poverty.



To change course, the World Bank said countries should boost cooperation, avoid broad subsidies, focus on long-term growth and adopt measures such as property taxes and carbon taxes that could help raise revenue without hurting the poorest.



It said poverty reduction had already slowed in the five years leading up to the pandemic, and the poorest people clearly bore its steepest costs. The poorest 40% of people saw average income losses of 4% during the pandemic, twice the losses experienced by the wealthiest 20%, it said.



Government spending and emergency support helped avert even bigger increases in poverty rates, the report showed, but the economic recovery had been uneven, with developing economies with fewer resources spending less and achieving less.



Extreme poverty was now concentrated in sub-Saharan Africa, which has a poverty rate of about 35% and accounts for 60% of all people in extreme poverty, the report said.



(Reporting by Andrea Shalal; Editing by Kim Coghill)

istockphoto-1250489640-640×640

World Bank says goal of ending extreme poverty by 2030 won’t be met

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2022/09/GettyImages-1240090144-820x547.jpg" alt="" class="wp-image-419915" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2022/09/GettyImages-1240090144-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2022/09/GettyImages-1240090144-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2022/09/GettyImages-1240090144-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2022/09/GettyImages-1240090144-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2022/09/GettyImages-1240090144-1536x1024.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2022/09/GettyImages-1240090144-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption>The World Bank Group headquarters in Washington, D.C., U.S., on Tuesday, April 19, 2022. The International Monetary Fund (IMF) slashed its world growth forecast by the most since the early months of the Covid-19 pandemic, and projected even faster inflation, after Russia invaded Ukraine and China renewed virus lockdowns. Photographer: Al Drago/Bloomberg via Getty Images</figcaption></figure>



JOHANNESBURG, Oct 4 (Reuters)&nbsp;&#8211;&nbsp;Sub-Saharan Africa&#8217;s economy is set to grow 3.3% this year, down from 4.1% in 2021, the World Bank said on Tuesday, due to slowing global growth, drought, increased risk of debt distress and rising inflation made worse by Russia&#8217;s war in Ukraine.



The 2022 forecast was cut from a prediction of 3.6% made in its last biannual update&nbsp;<a href="https://www.reutersconnect.com/all?search=all%3AL5N2W92MW&amp;linkedFromStory=true" target="_blank" rel="noreferrer noopener">in April</a>, as the bank slashed projections for Nigeria and South Africa, two of Africa&#8217;s largest economies, plus Ghana, which is battling an economic crisis.



Chinese lockdowns disrupting supply chains and depressing demand for African commodities, the war in Ukraine and wealthy countries hiking interest rates were all to blame for the forecast downgrade, the bank said.



&#8220;Elevated food prices are causing hardships with severe consequences in one of the world&#8217;s most food-insecure regions,&#8221; the World Bank said in a statement accompanying its latest Africa Pulse report.



&#8220;The interconnected crises come at a time when the fiscal space required to mount effective government responses is all but gone.&#8221;



Of 33 countries with available data, 29 had inflation of over 5% in July, while in 17 it was in double digits. The number of countries in debt distress was little changed, the World Bank said, but noted that borrowing costs were rising.



In Ghana, which has sought help from the International Monetary Fund, amid inflation hitting 33.9% in August and the cedi weakening, growth is forecast to slow to 3.5% this year, compared to a prediction of 5.5% in April.



The World Bank also cut its growth forecasts for Nigeria and South Africa, from 3.8% and 2.1% to 1.9% and 3.3% respectively. The outlook for Angola, which has benefited from high oil prices, was upgraded to 3.1%, from 2.9% in April.



It said Ivory Coast would be west Africa&#8217;s fastest-growing economy this year at 5.7%, but that Senegal is set to overtake it &#8211; expanding 4.8% year before speeding up to 8% in 2023 and 10.5% in 2024.



The forecast for Kenya, east Arica&#8217;s largest economy, was kept the same as in April, at 5%.



(Reporting by Rachel Savage, Editing by William Maclean)

IMF And World Bank Headquarters During Virtual Spring Meetings

Sub-Saharan Africa’s growth to drop to 3.3% this year, World Bank says

<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="728" height="485" src="https://cms.cnbcafrica.com/wp-content/uploads/2022/10/T4DS7YV6WNJ5JEQSRB4HEUXYCU.jpg" alt="" class="wp-image-420300" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2022/10/T4DS7YV6WNJ5JEQSRB4HEUXYCU.jpg 728w, https://cms.cnbcafrica.com/wp-content/uploads/2022/10/T4DS7YV6WNJ5JEQSRB4HEUXYCU-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2022/10/T4DS7YV6WNJ5JEQSRB4HEUXYCU-135x90.jpg 135w" sizes="auto, (max-width: 728px) 100vw, 728px" /><figcaption>A staff member works at the reception of the paystack online payment company in the government reserved area in Ikeja, in Lagos, Nigeria, June 21, 2018. REUTERS/Akintunde Akinleye</figcaption></figure>



JOHANNESBURG, Oct 4 (Reuters)&nbsp;&#8211;&nbsp;African startups attracted a record $3.5 billion in venture capital investment in the first half of this year, bucking a global decline in dealmaking linked to worldwide economic turmoil, data released by an industry group showed on Tuesday.



The funding, raised by 300 different companies, represents growth of 133% compared to the same period last year, according to the African Private Equity and Venture Capital Association (AVCA), which promotes private investment on the continent.



&#8220;This impressive growth in startup funding, which goes against the grain of global trends this year, demonstrates the depth of opportunity as well as the potential the continent has to offer,&#8221; the AVCA said.



The financials sector continued to dominate the African startup space in the first half of 2022, accounting for 44% of total deal value.



Payments platform MFS Africa, Kenyan fintech and solar firm M-Kopa and e-commerce company Wasoko all secured funding of $75 million to $125 million during the period.



The success of companies like Nigeria&#8217;s Paystack, acquired in 2020 by U.S. payments firm Stripe, and fellow fintech unicorn&nbsp;<a href="https://www.reutersconnect.com/all?search=all%3AL8N2UQ313&amp;linkedFromStory=true" target="_blank" rel="noreferrer noopener">Flutterwave</a>&nbsp;has fuelled international interest in up-and-coming businesses on the continent.



Startups bounced back from a pandemic-induced dip in 2020 with a&nbsp;<a href="https://www.reutersconnect.com/all?search=all%3AL5N2WH0NG&amp;linkedFromStory=true" target="_blank" rel="noreferrer noopener">nearly five-fold increase</a>&nbsp;in venture capital investments in 2021, though Africa still attracts a fraction of the funding levels destined for more developed markets.



Globally, after hitting record levels last year, venture capital funding contracted in the second quarter of this year, with Latin America, Europe and North America hardest hit by the exodus of spooked investors.



While venture capital funding in Africa increased during the second quarter, the rate of growth was slashed by more than half to 78% from a first quarter increase of 171%, according to the AVCA data.



(Reporting by Joe Bavier; editing by David Evans)

A staff member works at the reception of the paystack online payment company in the government reserved area in Ikeja, in Lagos

Africa sees record venture capital investment, bucking global decline

<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="728" height="485" src="https://cms.cnbcafrica.com/wp-content/uploads/2022/09/WRGTZ2ALJFPGVMLV76JYZWAXGI.jpg" alt="" class="wp-image-420065" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2022/09/WRGTZ2ALJFPGVMLV76JYZWAXGI.jpg 728w, https://cms.cnbcafrica.com/wp-content/uploads/2022/09/WRGTZ2ALJFPGVMLV76JYZWAXGI-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2022/09/WRGTZ2ALJFPGVMLV76JYZWAXGI-135x90.jpg 135w" sizes="auto, (max-width: 728px) 100vw, 728px" /><figcaption>Nigerian naira notes are seen in this picture illustration March 15, 2016. REUTERS/Afolabi Sotunde/Illustration/File Photo</figcaption></figure>



JOHANNESBURG, Sept 26 (Reuters)&nbsp;&#8211;&nbsp;Nigeria and Kenya are likely to hike interest rates by a modest 50 basis points in the coming days after months of heavy lifting from other African central banks to try to calm rampant inflation, a Reuters poll found, while Ghana will hold fire.



This week&#8217;s benchmark interest rate decisions remain a very close call without any clear majority by analysts.



A scarcity of dollars is fuelling inflation in Ghana and Nigeria, as well as other parts of the continent like Ethiopia, and all are still licking their wounds from waves of rate increases in the United States that have siphoned away greenbacks and weakened domestic currencies.



&#8220;Tightening global financial conditions and continued dollar appreciation will set the tone for upcoming sub-Saharan Africa central bank decisions,&#8221; said Razia Khan at Standard Chartered, who expects action in both Nigeria and Kenya.



For Nigeria, a median of 10 analysts suggested rates would increase by 50 basis points (bps) to 14.5% on Tuesday. But while four respondents agreed with the median the rest were divided between no change and up to a 150 basis points lift.



The Central Bank of Kenya has been one of the least active in the continent in an&nbsp;election year&nbsp;that saw William Ruto sworn in as Kenya&#8217;s fifth president. Rates were expected to be hiked for a second time by 50 bps on Thursday, taking them to 8.0%.



But again, the outcome was a close call with the breakdown of 11 analysts showing five predicted no change, four saw a hike of 50 bps and two expected a 100 bps increase.



Like in South Africa, inflation has been high in Kenya although not as fast as in west Africa. South Africa increased its repo rate by 75 bps last week and similar hikes&nbsp;are expected&nbsp;in the next two quarters.



A median of nine analysts said rates would be held at 22.0% in Ghana. Five respondents said no change while the others expected a lift of between 100 and 300 bps.



The Bank of Ghana has hiked rates by 850 bps in the past year but that has not helped stop a slide in its currency which has been one of the worst performing emerging market currency, having lost over half its value this year.



&#8220;We expect inflation to peak in Q4, before starting to recede, while the cedi has started to move sideways in recent weeks,&#8221; said Pieter du Preez of Oxford Economics.



Consumer inflation in Ghana&nbsp;raced to&nbsp;33.9% in August, its highest since 2001 and in the same month as a&nbsp;300 basis point hike&nbsp;in interest rates to 22.0%, the largest lending rate increase in the country&#8217;s history.



Khan said given Ghana&#8217;s tightening was still feeding into the economy, &#8220;we no longer expect further imminent rate changes&#8221;.



Ghana&#8217;s central bank rescheduled its upcoming interest rate decision to Oct. 7 from Sept. 26 to coincide with the end of an International Monetary Fund mission to the country.



(Reporting by Vuyani Ndaba; Editing by Alison Williams)

FILE PHOTO: Nigerian naira notes are seen in this picture illustration

Modest rate hikes seen for Nigeria, Kenya; Ghana to hold

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="461" src="https://cms.cnbcafrica.com/wp-content/uploads/2021/04/1x-1-2-820x461.jpg" alt="" class="wp-image-400641" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2021/04/1x-1-2-820x461.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2021/04/1x-1-2-300x169.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2021/04/1x-1-2-768x432.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2021/04/1x-1-2-1536x864.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2021/04/1x-1-2-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption>A collection of mixed denomination South African rand coins sit in an arranged photo in Johannesburg, South Africa, on Thursday, June 22, 2017. South Africas inflation rate rose for the first time this year in May after food-price growth quickened from the slowest pace since December 2015. Photographer: Waldo Swiegers/Bloomberg via Getty Images</figcaption></figure>



Sept 22 (Reuters) &#8211; South Africa&#8217;s rand inched higher on Thursday ahead of a large rate hike expected from the country&#8217;s central bank, while emerging market stocks hit near 28-month lows after an aggressive view for U.S. rates from the Federal Reserve.



The rand&nbsp;ZAR=&nbsp;gained 0.4% to trade at 17.6 to the dollar, with investors eyeing a likely 75 basis points hike by the South African central bank in a bid to help bring inflation back within its 3%-6% target range.&nbsp;<a href="https://www.reutersconnect.com/all?search=all%3ARR:5877&amp;linkedFromStory=true" target="_blank" rel="noreferrer noopener">Read full story</a>



Data on Wednesday showed August inflation eased to 7.6% year on year from 7.8% in July, still well above the target, although it suggested that inflation may have passed its peak.&nbsp;<a href="https://www.reutersconnect.com/all?search=all%3AL1N30T0C0&amp;linkedFromStory=true" target="_blank" rel="noreferrer noopener">Read full story</a>



Meanwhile, the Fed on Wednesday lifted its policy rate by 75 basis points for the third time and projected raising rates further and faster than investors had expected.&nbsp;<a href="https://www.reutersconnect.com/all?search=all%3AL1N30R1F1&amp;linkedFromStory=true" target="_blank" rel="noreferrer noopener">Read full story</a>



&#8220;The message was more hawkish than expected, so the market is taking in the information and you may see volatile sessions till end of the week,&#8221; said Cristian Maggio, head of portfolio and ESG strategy at TD Securities.



The dollar surged to a fresh two-decade high and Asian stocks hit a two-year low, while EM stocks&nbsp;.MSCIEF&nbsp;fell 1% to their lowest since May 2020.



Shares are now down more than 25% so far this year and eye their worst year since the 2008 financial crisis, as markets digest a deteriorating global growth outlook due to surging inflation, aggressive tightening cycles and geopolitical risks.



Turkey&#8217;s central bank&#8217;s decision is also due later in the session, with analysts expecting the bank to hold rates at 13% after surprising with a rate cut last month.&nbsp;<a href="https://www.reutersconnect.com/all?search=all%3AL8N30L3K5&amp;linkedFromStory=true" target="_blank" rel="noreferrer noopener">Read full story</a>



&#8220;If you exclude Turkey, the direction of travel is for higher rates&#8230; In Turkey, there is a risk of cuts, which will be a nonsensical decision. It would be even more difficult to understand a decision of that kind today, given inflation has moved beyond the 80% mark,&#8221; Maggio added.



The lira&nbsp;TRY=&nbsp;slipped 0.2%.



Brazil&#8217;s central bank on Wednesday held rates unchanged after 12 consecutive hikes, as expected, while the Philippine central bank raised rates by half a percentage point, also in line with expectations.&nbsp;<a href="https://www.reutersconnect.com/all?search=all%3AP9N2YT016&amp;linkedFromStory=true" target="_blank" rel="noreferrer noopener">Read full story</a><a href="https://www.reutersconnect.com/all?search=all%3AL1N30S33H&amp;linkedFromStory=true" target="_blank" rel="noreferrer noopener">Read full story</a>



Indonesia hiked rates by a surprise 50 basis points, in a bid to control inflation after the government raised fuel prices earlier this month.&nbsp;<a href="https://www.reutersconnect.com/all?search=all%3AL4N30R169&amp;linkedFromStory=true" target="_blank" rel="noreferrer noopener">Read full story</a>



The rupiah&nbsp;IDR=&nbsp;shed 0.2%, while Philippine&#8217;s peso&nbsp;PHP=&nbsp;fell 0.8%. Other countries&#8217; central banks expected to announce decisions on Thursday include Taiwan, Egypt and Paraguay.



For GRAPHIC on emerging market FX performance in 2022, see&nbsp;<a href="http://tmsnrt.rs/2egbfVh" target="_blank" rel="noreferrer noopener">http://tmsnrt.rs/2egbfVh</a>



For GRAPHIC on MSCI emerging index performance in 2022, see&nbsp;<a href="https://tmsnrt.rs/2OusNdX" target="_blank" rel="noreferrer noopener">https://tmsnrt.rs/2OusNdX</a>



For TOP NEWS across emerging markets&nbsp;<a href="https://www.reutersconnect.com/all?search=all%3ATOPEMRG&amp;linkedFromStory=true" target="_blank" rel="noreferrer noopener">Read full story</a>



Rising EM interest rates<a href="https://tmsnrt.rs/3Uwfv3i">https://tmsnrt.rs/3Uwfv3i</a>



(Reporting by Anisha Sircar in Bengaluru; editing by Uttaresh.V)

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Cameroon, Nigeria request to join Ivory-Ghana cocoa initiative

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World Bank’s Malpass, IMF’s Georgieva see rising risks of global recession

Base metals fall as U.S. jobs data asserts rate-hike concerns

Aggressive rate hikes best option but unlikely to quell EMFX sell-off

World Bank says goal of ending extreme poverty by 2030 won’t be met

Sub-Saharan Africa’s growth to drop to 3.3% this year, World Bank says

Africa sees record venture capital investment, bucking global decline

Modest rate hikes seen for Nigeria, Kenya; Ghana to hold

South African rand firms ahead of cenbank move; stocks slide

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Economy

Gold Fields will not make counter-bid for Yamana Gold

Erdogan, Putin agreed to send Russian grains to poor African countries for free

Central banks ease off on rate hike push in October

World food supplies at risk as Russia withdraws from Black Sea deal

EM stocks, FX climb on hopes of less hawkish Fed; South Africa’s rand firms ahead of budget

African banks increasingly worried about funding costs, survey shows

Global inflation causing ‘horrifying’ food insecurity, says IMF Africa head

Cameroon, Nigeria request to join Ivory-Ghana cocoa initiative

IMF’s Gopinath: Poorer nations do face big debt challenges

World Bank’s Malpass, IMF’s Georgieva see rising risks of global recession

Base metals fall as U.S. jobs data asserts rate-hike concerns

Aggressive rate hikes best option but unlikely to quell EMFX sell-off

World Bank says goal of ending extreme poverty by 2030 won’t be met

Sub-Saharan Africa’s growth to drop to 3.3% this year, World Bank says

Africa sees record venture capital investment, bucking global decline

Modest rate hikes seen for Nigeria, Kenya; Ghana to hold

South African rand firms ahead of cenbank move; stocks slide

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