<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>



June 17 (Reuters)&nbsp;&#8211;&nbsp;Emerging market stocks were set to end Friday with their biggest weekly declines in more than three months, while other assets posted sharp falls on mounting fears of a global recession as central banks aggressively tighten monetary policy.



The MSCI&#8217;s index for EM equities&nbsp;.MSCIEF&nbsp;fell 0.2%, down 4.6% for the week, its worst performance since March. Emerging market assets have taken a hit from developed world central banks hiking their policy rates, with the U.S. Federal Reserve delivering its largest rate hike in more than a quarter of a century to combat inflation.



This set off worries about tipping the world&#8217;s largest economy into a recession, and when combined with renewed COVID lockdowns in China starting to impact its economy the hike sparked a flight out of riskier emerging market assets, as investors turn towards safer bets and become more defensive.



&#8220;The more aggressive line by central banks adds to headwinds for both economic growth and equities. The risks of a recession are rising, while achieving a soft landing for the U.S. economy appears increasingly challenging,&#8221; Mark Haefele, global wealth management chief investment officer at UBS.



&#8220;The expected fall in inflation has been delayed by the surge in energy and food prices resulting from the war in Ukraine, while disruptions arising from the pandemic are also lingering longer than forecast.&#8221;



J.P.Morgan said weekly emerging market outflows increased substantially to $3.5 billion from $1.5 billion, as hard currency fund outflows touched the highest level since early March, and local currency fund outflows increased in size.



Worries also remained about high levels of credit default swaps of countries like Egypt, Pakistan, Tunisia, Kenya and Turkey.



Turkish stocks&nbsp;.XU100&nbsp;fell 1.4% for the week, while South African equities&nbsp;.JTOPI&nbsp;dropped 2.5%, both bourses were set for their second weekly fall.



Emerging market currencies struggled to make headway for much of the week, with the MSCI&#8217;s index&nbsp;.MIEM00000CUS&nbsp;posting weekly declines of 0.6%. The index is headed for its second week lower.



Turkey&#8217;s lira&nbsp;TRY=&nbsp;shed 0.2% and was on track to record its ninth straight weekly decline &#8211; worst losing streak since a currency crisis in December 2021, which was triggered by unorthodox monetary policy amid sky-high inflation.



The Russian rouble&nbsp;RUBUTSTN=MCX&nbsp;opened lower against the dollar, while South Africa&#8217;s rand&nbsp;ZAR=&nbsp;firmed as much as 15.91 against the greenback.



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>



(Reporting by Shreyashi Sanyal in Bengaluru, Editing by William Maclean)

World map with charts and graphs as symbols of global finance

Pummelled by recession blow, stocks see worst week in 3 months

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2022/06/AW745HFCMNPMPBYXOZR4TP65XE-820x547.jpg" alt="" class="wp-image-417892" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2022/06/AW745HFCMNPMPBYXOZR4TP65XE-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2022/06/AW745HFCMNPMPBYXOZR4TP65XE-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2022/06/AW745HFCMNPMPBYXOZR4TP65XE-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2022/06/AW745HFCMNPMPBYXOZR4TP65XE-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2022/06/AW745HFCMNPMPBYXOZR4TP65XE.jpg 960w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption>A logo is pictured at the World Trade Organization (WTO) headquarters ahead of the Ministerial Conference (MC12) in Geneva, Switzerland, June 12, 2022. REUTERS/Denis Balibouse</figcaption></figure>



GENEVA, June 16 (Reuters)&nbsp;&#8211;&nbsp;WTO members reached a provisional deal on Thursday to extend a moratorium on applying duties to electronic&nbsp;transmissions&nbsp;until the next ministerial meeting, likely to be in 2023,&nbsp;two trade&nbsp;sources involved in the discussions told Reuters.



The prospect of ending the moratorium, which has exempted data flows from cross-border tariffs since 1998, had raised major concerns among businesses. Backed by major players like the United States, the United Kingdom and the European Union, they argued that letting it expire would undermine a global recovery already threatened by spiralling prices.&nbsp;<a href="https://www.reutersconnect.com/all?search=all%3AL1N2Y22HH&amp;linkedFromStory=true" target="_blank" rel="noreferrer noopener">Read full story</a>



&#8220;We agree to maintain the current practice of not imposing customs duties on electronic transmissions until MC13 which should ordinarily be held by 31 December 2023,&#8221; the agreement showed, referring to the next ministerial conference. It specified that the moratorium would expire in March 2024, should the next conference be postponed.



The provisional deal&nbsp;was reached in a negotiating room of the WTO&#8217;s Geneva headquarters between a group of major members and still&nbsp;needs to be backed by the&nbsp;body&#8217;s 164&nbsp;members.



India, Indonesia, Sri Lanka, Pakistan and South Africa had threatened to block an extension earlier in the five-day ministerial conference, where deals are also being sought on fishing, vaccines and food security. It was not immediately clear what might have made them change their minds.&nbsp;<a href="https://www.reutersconnect.com/all?search=all%3AL1N2Y30KU&amp;linkedFromStory=true" target="_blank" rel="noreferrer noopener">Read full story</a>



(Reporting by Emma Farge; Editing by Philip Blenkinsop)

AW745HFCMNPMPBYXOZR4TP65XE

WTO provisionally agrees to extend e-commerce tariff moratorium – sources

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



June 15 (Reuters) &#8211; Emerging market currencies were unchanged on Wednesday against a towering dollar, as markets wait to see the size of an interest rate hike that the U.S. Federal Reserve will deliver later in the day, while stocks attempted a cautious recovery.



Following a steep selloff earlier in the week on worries of rising inflation and slowing growth, markets are now pricing in an 87% chance of a large 75 basis point (bp) rate hike, which has buoyed the dollar but hurt riskier assets.&nbsp;<a href="https://www.reutersconnect.com/all?search=all%3AL1N2Y11G3&amp;linkedFromStory=true" target="_blank" rel="noreferrer noopener">Read full story</a>



The MSCI&#8217;s index for emerging market currencies&nbsp;.MIEM00000CUS&nbsp;was flat but traded just above one-month low levels it had hit on Monday.



&#8220;As we hit this big day, markets now fully price in a 75 bp hike today. So that actually incorporates a small risk of 100 basis points,&#8221; said Jim Reid, managing director at Deutsche Bank.



Further adding to the wariness, the European Central Bank will hold a rare, unscheduled meeting on Wednesday to discuss the turmoil in bond markets, underscoring official concern around a blowout in borrowing costs for some euro zone nations.&nbsp;<a href="https://www.reutersconnect.com/all?search=all%3AL1N2Y20BH&amp;linkedFromStory=true" target="_blank" rel="noreferrer noopener">Read full story</a>



Against a now stronger euro, most Central and Eastern European currencies dipped.&nbsp;EURPLN=,&nbsp;EURCZK=,&nbsp;EURRON=



Turkey&#8217;s lira&nbsp;TRY=&nbsp;failed to make much headway in the early hours of trading, while South Africa&#8217;s rand&nbsp;ZAR=&nbsp;eked out gains of 0.2%.



The Russian rouble&nbsp;RUBUTSTN=MCX&nbsp;dipped slightly at the start of trading, shielded from the widespread global sell-off of recent days by Moscow&#8217;s capital controls.&nbsp;<a href="https://www.reutersconnect.com/all?search=all%3AL1N2Y20GK&amp;linkedFromStory=true" target="_blank" rel="noreferrer noopener">Read full story</a>



The MSCI&#8217;s index for emerging market stocks&nbsp;.MSCIEF&nbsp;edged 0.1% higher, mainly boosted by China shares&nbsp;.SSEC,&nbsp;.CSI300&nbsp;after data showed signs of recovery in May after slumping in the prior month as industrial production rose unexpectedly.&nbsp;<a href="https://www.reutersconnect.com/all?search=all%3AL1N2Y203D&amp;linkedFromStory=true" target="_blank" rel="noreferrer noopener">Read full story</a>



However, consumption was still weak in China and underlined the challenge for policymakers amid the persistent drag from strict COVID curbs.



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>



(Reporting by Shreyashi Sanyal in Bengaluru; editing by Uttaresh.V)

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

Currencies subdued as dollar rises on big Fed hike bets

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2022/06/GettyImages-1237649604-820x547.jpg" alt="" class="wp-image-417697" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2022/06/GettyImages-1237649604-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2022/06/GettyImages-1237649604-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2022/06/GettyImages-1237649604-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2022/06/GettyImages-1237649604-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2022/06/GettyImages-1237649604-1536x1024.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2022/06/GettyImages-1237649604-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption>euThe seal for the International Monetary Fund is seen near the World Bank headquarters (R) in Washington, DC on January 10, 2022. (Photo by Stefani Reynolds / AFP) (Photo by STEFANI REYNOLDS/AFP via Getty Images)</figcaption></figure>



LONDON, June 7 (Reuters)&nbsp;&#8211;&nbsp;The IMF said on Tuesday governments fighting soaring food and fuel prices should target aid to vulnerable citizens rather than issue across-the-board aid that risked adding to strains on public finances.



Over half of 134 countries surveyed said they had introduced subsidies or tax cuts to soften the blow of soaring price rises triggered by the war in Ukraine, the International Monetary Fund said in a blog.



Russia&#8217;s invasion of Ukraine has led to sharp spikes in food and fuel prices, compounding global economic woes, especially for developing economies that have been struggling more than richer ones to recover from the COVID-19 pandemic.



&#8220;Policymakers should allow high global prices to pass through to the domestic economy while protecting vulnerable households affected by the increases,&#8221; the IMF blog said.



&#8220;That&#8217;s ultimately less costly than keeping prices artificially low for all irrespective of their ability to pay.&#8221;



<h3 class="wp-block-heading" id="h-read-more-imf-says-malawi-requests-four-year-credit-facility">Read more: <a href="https://www.cnbcafrica.com/2022/imf-says-malawi-requests-four-year-credit-facility/">IMF says Malawi requests four-year credit facility</a></h3>



The IMF often makes removing subsidies a condition of giving aid.



Pakistan on June 2 slashed fuel&nbsp;subsidiesfor the second time in a week&nbsp;to secure a bailout from the IMF. Tunisia said on Tuesday it would start cutting energy and food subsidies next year alongside financial transfers to poor families, as it seeks a $4 billion IMF loan.&nbsp;<a href="https://www.reutersconnect.com/all?search=all%3AL1N2XP1PI&amp;linkedFromStory=true" target="_blank" rel="noreferrer noopener">Read full story</a><a href="https://www.reutersconnect.com/all?search=all%3AL1N2XU0YO&amp;linkedFromStory=true" target="_blank" rel="noreferrer noopener">Read full story</a>



The IMF blog noted that governments had passed less of the rise in oil prices onto consumers in the first four months of this year than they had in 2021, adding that subsidies encouraged more energy consumption and thus fed the price rises.



Food security concerns may mean that some governments have no option but to introduce subsidies and even hand out basic staples, the blog said, but it advised that &#8220;clear sunset clauses&#8221; for their termination were needed.



(Reporting by Rachel Savage; Editing by Mark Heinrich)

US-ECONOMY-FINANCE-IMF-WORLD BANK

IMF urges countries to support vulnerable, avoid blanket subsidies as food, fuel prices soar

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



LUANDA, June 1 (Reuters)&nbsp;&#8211;&nbsp;The initial public offering (IPO) of a 10% stake in Angola&#8217;s largest private bank BAI, seen as a test case in a far-reaching privatisation push, has been priced at the top of an indicated range, BAI said on Wednesday.



The southern African country is trying to modernise its economy and attract private investment, and the local stock exchange hopes BAI&#8217;s listing will set the stage for many more.&nbsp;<a href="https://www.reutersconnect.com/all?search=all%3AL5N2X236R&amp;linkedFromStory=true" target="_blank" rel="noreferrer noopener">Read full story</a>



BAI said in a statement that the final price of the shares offered by state-owned oil and diamond companies Sonangol and Endiama had been set at 20,640 kwanzas (roughly $50) per share.



A prospectus had earlier indicated the price range was between 17,200 and 20,640 kwanzas.



At 20,640 kwanzas, the 10% stake sale will raise over $97 million, according to a Reuters calculation.



OPEC member Angola plans to privatise more than 60 state assets this year, though the sale of a 30% stake in Sonangol, seen as the crown jewel of the privatisation drive, could take another two years.&nbsp;<a href="https://www.reutersconnect.com/all?search=all%3AL8N2U43AC&amp;linkedFromStory=true" target="_blank" rel="noreferrer noopener">Read full story</a>



BAI said more details about the IPO would be disclosed on Thursday, ahead of the listing planned on the BODIVA exchange on June 9.



BODIVA was founded in 2014. But with Angola&#8217;s economy dominated by state-owned companies &#8211; a legacy of its socialist past &#8211; the exchange has mainly served as a market for government bonds, trading debt of around $2 billion in 2020.



($1 = 411.7300 kwanzas)



(Reporting by Miguel Gomes; Writing by Alexander WinningEditing by Barbara Lewis)

Test-case Angolan bank IPO prices at top of range

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="615" src="https://cms.cnbcafrica.com/wp-content/uploads/2021/05/17086765822_14c89cd230_b-820x615.jpg" alt="" class="wp-image-403062" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2021/05/17086765822_14c89cd230_b-820x615.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2021/05/17086765822_14c89cd230_b-300x225.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2021/05/17086765822_14c89cd230_b-768x576.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2021/05/17086765822_14c89cd230_b.jpg 1024w" sizes="auto, (max-width: 820px) 100vw, 820px" /></figure>



June 1 (Reuters) &#8211; The Turkish lira extended losses on Wednesday after factory activity contracted for a third straight month in May, while emerging market stocks started June lower as Chinese shares remained under pressure on concerns over a economic slowdown.



The lira&nbsp;TRY=&nbsp;fell 0.2% against the dollar, after losing 9.5% in May, as a survey showed Turkey&#8217;s Purchasing Managers&#8217; Index (PMI) for manufacturing stood at 49.2 in May as output and orders slowed amid muted demand and ongoing price pressures.&nbsp;<a href="https://www.reutersconnect.com/all?search=all%3AL1N2XO0BN&amp;linkedFromStory=true" target="_blank" rel="noreferrer noopener">Read full story</a>



In central Europe, data showed Poland&#8217;s manufacturing sector contracted for the first time in almost two years in May as supply-side delays, high inflation and market instability linked to the war in Ukraine led to a sharp drop in output and orders. The Polish zloty&nbsp;EURPLN=&nbsp;edged 0.1% lower.&nbsp;<a href="https://www.reutersconnect.com/all?search=all%3AL1N2XO0BI&amp;linkedFromStory=true" target="_blank" rel="noreferrer noopener">Read full story</a>



&#8220;The PMI print from Poland this morning isn&#8217;t necessarily instructive that the central bank will have to end or change its hawkish stance on inflation and it&#8217;s not necessarily suggestive that the Polish economy is in a sharp contraction,&#8221; said Simon Harvey, head of FX analysis at Monex Europe.



&#8220;We&#8217;re looking at a kind of a breakout in the CEE region from macro policy perspective. We&#8217;re not seeing the whole region moving in tandem and we are looking at zloty as the golden child.&#8221;



The Hungarian forint&nbsp;EURHUF=&nbsp;was flat after a fall in its May PMI offset first-quarter growth figures that showed the economy grew by an annual 8.2%, the same as the preliminary figure.&nbsp;<a href="https://www.reutersconnect.com/all?search=all%3AS8N2WO0HB&amp;linkedFromStory=true" target="_blank" rel="noreferrer noopener">Read full story</a><a href="https://www.reutersconnect.com/all?search=all%3AS8N2VB00X&amp;linkedFromStory=true" target="_blank" rel="noreferrer noopener">Read full story</a>



Emerging market stocks&nbsp;.MSCIEF&nbsp;fell 0.8%, with the Shanghai Composite Index&nbsp;.SSEC&nbsp;and the Hang Seng Index&nbsp;.HSI&nbsp;down 0.1% and 0.6%, respectively, as excitement faded about Shanghai coming out of its two-month lockdown amid lingering concerns over the economy.&nbsp;.SS



Data showing factory activity in Asia slowed in May, as China&#8217;s COVID-19 curbs continued to disrupt supply chains and dampen demand, also weighed on the region, along with a firm U.S. dollar and rising Treasury yields.&nbsp;<a href="https://www.reutersconnect.com/all?search=all%3AL1N2XO07T&amp;linkedFromStory=true" target="_blank" rel="noreferrer noopener">Read full story</a>EMRG/FRX



The Russian rouble&nbsp;RUBUTSTN=MCX&nbsp;was flat in Moscow trade, lacking momentum but retaining support from capital controls. The dollar-denominated RTS stock index&nbsp;.IRTS&nbsp;and the rouble-based MOEX&nbsp;.IMOEX&nbsp;rose 1% each after the central bank lifted a ban on short selling of securities.&nbsp;RU/RUB



Russian manufacturing activity also expanded in May after three months of contraction and price pressures eased notably, but sanctions continued to dent client demand, a survey showed.&nbsp;<a href="https://www.reutersconnect.com/all?search=all%3AL4N2XO15A&amp;linkedFromStory=true" target="_blank" rel="noreferrer noopener">Read full story</a>



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>



(Reporting by Bansari Mayur Kamdar in Bengaluru; Editing by Shailesh Kuber)

Turkey Lira, photo via Flickr

Stocks slip in downbeat start to June; Turkish lira extends slide

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2022/06/6QK4U5GIVRJNTEK5HLFA2PRVSA-820x547.jpg" alt="" class="wp-image-417491" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2022/06/6QK4U5GIVRJNTEK5HLFA2PRVSA-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2022/06/6QK4U5GIVRJNTEK5HLFA2PRVSA-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2022/06/6QK4U5GIVRJNTEK5HLFA2PRVSA-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2022/06/6QK4U5GIVRJNTEK5HLFA2PRVSA-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2022/06/6QK4U5GIVRJNTEK5HLFA2PRVSA.jpg 960w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption>Workers walk past storage tanks at Tullow Oil&#8217;s Ngamia 8 drilling site in Lokichar, Turkana County, Kenya, February 8, 2018. REUTERS/Baz Ratner/File Photo</figcaption></figure>



June 1 (Reuters)&nbsp;&#8211;&nbsp;Tullow Oil&nbsp;TLW.L&nbsp;and Capricorn Energy&nbsp;CNE.L&nbsp;agreed to merge in an all-stock deal worth 656.9 million pounds ($826.7 million) that will deliver dividends after a payout drought and improve cash flow to allow investment in higher output.



Investors in Capricorn, formerly known as Cairn Energy, will receive 3.8068 new shares in Tullow, the bigger of the two companies, for each share they hold, the companies said on Wednesday. Reuters calculated the $827 million value of the deal based on Tuesday&#8217;s closing share price.



Tullow boss Rahul Dhir will lead the combined group, which will be majority-owned by Tullow shareholders.



It is expected to have an output of around 100,000 barrels of oil equivalent per day, with reserves of 343 million barrels of oil equivalent.



Oil companies&#8217; earnings have been spurred by high energy prices as demand has returned following COVID-19 lockdowns and markets have surged in response to oil producer Russia&#8217;s invasion of Ukraine on Feb. 24, which prompted sanctions on Moscow and disrupted supplies.



The merged group, which will have a new name that has yet to be announced, is focused on African energy and should be able to invest in expanding production, potentially capitalising on higher energy prices.



&#8220;What would the combined company do that we can&#8217;t do independently? One is we would have a different capital programme, which would&#8230; have acceleration in it,&#8221; Dhir told a conference call.



The merger, backed by the boards of both companies, would result in savings of $50 million and investors in the new group will get an annual base dividend of $60 million. Tullow shareholders last received a dividend in 2019.



Capricorn&#8217;s cash will also help Tullow to cut its leverage ratio of net debt to core profits to less that 1x, allowing the combined group to spend more on increasing output.



&#8220;This fixes Tullow&#8217;s balance sheet problem,&#8221; Stifel analysts said in a note.



Shares in Tullow traded 2.1% higher by 0945 GMT. Capricorn Energy shares were up 3.6%. The wider oil and gas index&nbsp;.SXEP&nbsp;fell 0.6%.



Tullow&#8217;s flagship offshore oilfields in Ghana will make up the biggest share of the new group&#8217;s reserves and production, three-quarters of which will be oil and one quarter gas.



The second biggest will come from Capricorn&#8217;s Egyptian onshore gas fields.



Separately, energy services provider Wood Plc&nbsp;WG.L&nbsp;said on Wednesday, it agreed to sell its consulting unit for $1.9 billion.&nbsp;<a href="https://www.reutersconnect.com/all?search=all%3AL4N2XO180&amp;linkedFromStory=true" target="_blank" rel="noreferrer noopener">Read full story</a>



($1 = 0.7946 pounds)



(Reporting by Pushkala Aripaka in Bengaluru and Shadia Nasralla in London; Editing by Shailesh Kuber, Edmund Blair and Barbara Lewis)

6QK4U5GIVRJNTEK5HLFA2PRVSA

Tullow Oil merges with Capricorn in $827 mln all-share deal

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="440" src="https://cms.cnbcafrica.com/wp-content/uploads/2022/06/O5T5OX7HLBIIPFG4KPWOM2DKNM-820x440.jpg" alt="" class="wp-image-417487" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2022/06/O5T5OX7HLBIIPFG4KPWOM2DKNM-820x440.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2022/06/O5T5OX7HLBIIPFG4KPWOM2DKNM-300x161.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2022/06/O5T5OX7HLBIIPFG4KPWOM2DKNM-160x86.jpg 160w, https://cms.cnbcafrica.com/wp-content/uploads/2022/06/O5T5OX7HLBIIPFG4KPWOM2DKNM-768x412.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2022/06/O5T5OX7HLBIIPFG4KPWOM2DKNM.jpg 960w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption>The chimneys of the Total Grandpuits oil refinery are seen just after sunset, southeast of Paris, France, March 1, 2021. REUTERS/Christian Hartmann/File Photo</figcaption></figure>



CAPE TOWN/LAGOS/DAKAR, June 1 (Reuters)&nbsp;&#8211;&nbsp;A shortage of oil refineries across sub-Saharan Africa coupled with soaring crude prices because of the war in Ukraine has left countries dangerously short of fuel supplies, disrupting airlines and causing queues at filling stations.



The surge in prices comes in tandem with a spike in the cost of food after Russia sent troops into Ukraine, hitting tens of millions of people already living in precarious conditions, as well as government and aid agency budgets.&nbsp;<a href="https://www.reutersconnect.com/all?search=all%3AL2N2XG20K&amp;linkedFromStory=true" target="_blank" rel="noreferrer noopener">Read full story</a>



Refineries across sub-Saharan Africa combined can process 1.36 million barrels of oil a day (bpd), in theory, but with many out of action, only 30% of that capacity was used last year, according to independent consultancy CITAC.



Refineries in Cameroon, Ghana and Senegal are shut, as are four in South Africa. Africa&#8217;s biggest oil producer, Nigeria, pumps over 1.3 million barrels a day, but the two privately owned plants still running there can only process 1% of that.



The African Export-Import Bank and the African Petroleum Producers&#8217; Organization signed a deal in May to create a multi-billion-dollar &#8220;energy bank&#8221; to boost private investment in the sector but analysts say there a few quick fixes on the horizon.



Fuel shortages are also hitting Western nations, but the impact in Africa is expected to be longer lasting as governments and companies are generally less able to afford the sky-high cost of imported fuel, or come up with the millions of dollars needed to get refineries running again at full tilt.



&#8220;It is likely that the situation may get much worse in the short term,&#8221; Anibor Kragha, head of the African Refiners &amp; Distributors Association (ARDA), told Reuters.



Big Western oil companies have been withdrawing from refinery projects in Africa in recent years and local investors and governments have largely failed to plug the gap, leading to a chronic lack of investment in modernising facilities.



The upshot is that despite the continent&#8217;s estimated 125 billion barrels of oil reserves and 600 trillion cubic feet of natural gas, African countries rely almost exclusively on imported petroleum products to power their economies.



Even major crude oil exporters, Nigeria and Angola, depend on imports for almost 80% of their domestic fuel needs, government officials say.



<h2 class="wp-block-heading" id="h-dangote-refinery">DANGOTE REFINERY</h2>



Governments are now scrambling to get refineries up and running in the face of growing discontent over price spikes.



Ghana&#8217;s 45,000 bpd Tema refinery, for example, has been out of action since an explosion in January 2017. Ghana&#8217;s President Nana Akufo-Addo said &#8220;intense efforts&#8221; were now being made to rehabilitate the refinery to help address soaring fuel prices.



However, getting the refinery online would require $40 million in new investment, industry sources said, which the country can ill afford as it contends with a growing mountain of debt and a double-digit fiscal deficit.



It&#8217;s a similar story in Cameroon.



The 42,000 bpd Limbe refinery has been shut since a fire in 2019, but a directive from the president&#8217;s office seen by Reuters asked the finance minister on April 22 to put plans in place quickly to revamp the heavily indebted plant.



Africa&#8217;s richest man, Aliko Dangote, a businessman who made his fortune in cement, is building a vast refinery in Nigeria that will have a capacity of 650,000 barrels a day, putting it just outside the top five refineries in the world.



But its much-anticipated launch has been pushed back to next year and the overhaul of Nigeria&#8217;s Port Harcourt refinery which will take years has only just started after two decades of discussion.



Angola, which is Africa&#8217;s second-biggest oil producer pumping about 1.1 million bpd, has plans to build more refineries in addition to its sole 65,000 bpd plant in Luanda.



Diesel and jet fuel in particular have been in short supply as refiners drastically scaled back output during the pandemic when travel restrictions grounded planes while Russian diesel volumes have fallen since the Ukraine war began.&nbsp;<a href="https://www.reutersconnect.com/all?search=all%3AL2N2X70BN&amp;linkedFromStory=true" target="_blank" rel="noreferrer noopener">Read full story</a>



Nigeria&#8217;s airlines threatened to suspend domestic flights due to soaring jet fuel costs before backtracking. The country subsidises gasoline at a high cost, but not diesel or jet fuel.&nbsp;<a href="https://www.reutersconnect.com/all?search=all%3AL2N2X11MY&amp;linkedFromStory=true" target="_blank" rel="noreferrer noopener">Read full story</a>



Scheduled maintenance is also curtailing supplies.



Senegal&#8217;s 27,000 bpd SAR refinery in Dakar has been offline since November for repairs and the country&#8217;s gasoil supplies were down to just three days at the end of April, triggering long waits for motorists at pumps.



In South Africa, where four refineries are down including one of the region&#8217;s biggest, the 180,000 bpd Sapref plant in Durban, some airlines were forced to re-route away from one of Africa&#8217;s busiest airports due to jet fuel shortages.



While some countries in North Africa are particularly exposed to the slump in grain exports from Ukraine, refineries in the region are in better shape than south of the Sahara, running at 80% capacity last year, CITAC data showed.



<h2 class="wp-block-heading">SANCTIONS NOOSE</h2>



In the absence of refining capacity, oil majors and commodities trading firms have for years sent oil products from the Middle East and Far East to float in large tankers off the shores of Togo in West Africa, where they can then be split up into smaller volumes for last-minute deliveries.



But with prices for immediate delivery so high and the market unusually volatile, big players have pulled back. Higher trade costs and extra outlays due to credit concerns with small, independent African importers are compounding the problem.



In recent tenders to buy diesel or jet fuel, traders said only two or three companies responded, compared with six or more before the Russian invasion of Ukraine, which Moscow calls a &#8220;special military operation&#8221;.



Ghana has so far been spared shortages, but importers say daily price increases mean each purchase is more expensive than the last. Retail diesel prices were up more than 90% year-on-year in April, according to Ghana&#8217;s statistics service.



&#8220;These conditions mean you effectively need double whatever credit you would have needed last year,&#8221; said Senyo Hosi, head of the Ghana Chamber of Bulk Oil Distributors.



With prices for immediate delivery so high compared with future months &#8211; a market phenomenon known as backwardation &#8211; there is little incentive to store products for future sale.



&#8220;High outright prices and steep backwardation reduce the incentives to hold discretionary or unsold inventory, leaving spot or short-notice buyers vulnerable to shortages,&#8221; said Jamie Torrance, head of distillates and biofuels at commodities trading firm Trafigura.



Physical jet fuel prices hit record highs in April in Europe and the United States while stock levels fell to their lowest in two years at Europe&#8217;s key ARA oil hub in the week to May 12.&nbsp;ARA/



Russian diesel, fuel oil and other products were previously stored and re-blended in ARA (Amsterdam-Rotterdam-Antwerp) for transport to Africa, but Russian crude and products can now only be sold to European buyers in certain cases.



&#8220;This is unfortunately likely to further exacerbate the current shortages,&#8221; Trafigura&#8217;s Torrance said.



(Reporting by Bate Felix in Dakar, Julia Payne in Lagos, Cooper Inveen in Accra and Wendell Roelf in Cape Town; Additional reporting by Amindeh Blaise Atabong in Yaounde; Editing by by Mike Collett-White and David Clarke)

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Shortage of oil refineries haunts Africa as fuel prices rocket

PRETORIA, May 31 (Reuters) – South Africa’s unemployment rate fell to 34.5% in the first quarter of 2022 from 35.3% in the final quarter of last year, statistics agency data showed on Tuesday.



Statistics South Africa said the number of unemployed totalled 7.862 million people in the three months to end-March, compared with 7.921 million people in the previous three months.



According to an expanded definition of unemployment that includes those discouraged from seeking work, 45.5% of the labour force was without work in the first quarter, from 46.2% in the prior quarter.



South Africa’s economy rebounded quicker than expected from the COVID-19 pandemic last year, but growth in 2022 is expected to slow to a meagre 1.7% according to the central bank’s latest forecast.



Analysts say Africa’s most industrialised nation needs higher rates of growth to make a meaningful dent in poverty and unemployment.



In the first quarter, job gains were recorded mainly in the community and social services sector, followed by manufacturing. The trade sector also had job gains.



Despite the dip in the headline unemployment rate, it remained near record highs as other key sectors like finance, construction and agriculture recorded job losses in the quarter. (Reporting by Olivia Kumwenda-Mtambo Editing by Alexander Winning and James Macharia Chege)

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South Africa’s Q1 unemployment rate falls to 34.5%

May 27 (Reuters) The U.S. Securities and Exchange Commission (SEC) is looking into Tesla Chief Executive Officer Elon Musk&#8217;s disclosure of his stake in Twitter Inc (TWTR.N) in early April, according to a letter the agency sent to him in April.



In the letter, now made public by the SEC, the regulator asks Musk why it appears he did not file required paperwork within 10 days of the acquisition, and to provide more information on his public statements on the platform regarding whether Twitter adheres to free speech principles.



Specifically, the SEC asked Musk to explain why he opted to ultimately file a &#8220;13G&#8221; disclosure form, which is meant for investors who plan to hold their shares passively instead of a &#8220;13D&#8221; form, which is for activist investors who intend influence management and policies of the company.



Spokespeople for the SEC and Musk did not immediately respond to requests for comment.



Outside experts had previously said Musk&#8217;s late filing, and that he may have used improper paperwork, could attract the attention of the SEC, which has sparred with Musk in the past.



The SEC&#8217;s letter is dated the same day Musk disclosed a 9.2% stake in Twitter. The billionaire, who has since offered to the Twitter private for $44 billion, has been sued by investors claiming he manipulated the company&#8217;s stock price downward.



The Tesla Inc (TSLA.O) chief executive officer has landed in trouble with the SEC before, when the agency sued him in 2018 after he tweeted he had &#8220;funding secured&#8221; to potentially take the electric car company private at $420 per share. In reality, a buyout was not close.



Reporting by Nivedita Balu and Sweta Singh in Bengaluru, Svea Herbst-Bayliss and Pete Schroeder in Washington Editing by Shinjini Ganguli and Mark Potter

Elon Musk

U.S. SEC looking into Musk’s Twitter stake purchase

LONDON/NEW YORK, May 27 (Reuters)



The International Monetary Fund (IMF) has received $40 billion in pledges for its new Resilience and Sustainability Trust to address challenges such as climate change, IMF head Kristalina Georgieva said on Friday, close to their target set last month.



Building resilience to the effects of climate change will cost trillions of dollars over the next decade, she said in a pre-recorded speech broadcast to the Ibrahim Governance Forum, an Africa-focused conference.



Climate investment globally needs to increase by up to six times from the roughly $640 billion spent in 2020, to keep global temperatures from rising more than 1.5 degrees Celsius above pre-industrial levels, the latest Intergovernmental Panel on Climate Change report said in April.



&#8220;The devastating effects of climate change are robbing Africa of lives and livelihoods,&#8221; Georgieva told the conference, which was scheduled to mark six months until the COP27 climate conference in Cairo.



The IMF launched the new financing facility for low and middle-income countries in April, with the goal of raising at least $45 billion.



Its finance director had said it would need to receive &#8220;a substantial fraction&#8221; of the total before starting operations of the new trust by the time of the meetings of the IMF and World Bank in October.



Georgieva said at the conference that many African countries were dealing with droughts that were increasing food and political insecurity.



&#8220;Now the surge in food, fuel and fertiliser prices have dramatically raised import costs, all in the context of already high sovereign debt and limited fiscal capacity,&#8221; Georgieva said.



&#8220;African countries cannot face these overlapping crises &#8211; climate, food, pandemic &#8211; alone,&#8221; she said, adding that IMF lending to African countries in the last year was 13 times the annual average.



Reporting by Rachel Savage and Rodrigo Campos; Editing by John Stonestreet and Edmund Blair

IMF story

IMF secures $40 billion so far for new sustainability trust

WASHINGTON (Reuters) &#8211; World Bank President David Malpass on Wednesday suggested that Russia’s war in Ukraine and its impact on food and energy prices, as well as the availability of fertilizer, could trigger a global&nbsp;recession.



Malpass told an event hosted by the U.S. Chamber of Commerce that Germany‘s economy, the world’s fourth-largest, has already slowed substantially&nbsp;due to higher energy prices, and said&nbsp;reduced production of&nbsp;fertilizer could worsen conditions elsewhere. 



“As we look at the global GDP … it’s hard right now to see how we avoid a&nbsp;recession,” Malpass said.&nbsp;He gave no specific forecast.



He said the economies of Ukraine and Russia were both expected to see a significant contraction, while Europe, China and the United States were seeing slower growth.



Developing countries were being hit even harder given shortfalls of fertilizer and food stocks and energy supplies, he said.



“The idea of energy prices doubling is enough to trigger a&nbsp;recession&nbsp;by itself,” he said.



In China, he said the relatively sharp slowdown in growth was based on the COVID-19 pandemic, inflation and the pre-existing real estate crisis the country had been facing.



The World Bank last month had already cut its global growth forecast for 2022 by nearly a full percentage point, to 3.2% from 4.1%, due to the impacts from Russia’s invasion of Ukraine.



Malpass gave no details on when a global&nbsp;recession&nbsp;could begin.

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World Bank’s Malpass says war in Ukraine may trigger global recession￼

JOHANNESBURG, May 25 (Reuters)&nbsp;&#8211;&nbsp;Africa risks sliding into stagflation &#8211; a cycle of slow growth and high inflation &#8211; as it battles the lingering effects of the pandemic and rising fuel and food prices caused by the Ukraine conflict, the African Development Bank (AfDB) said on Wednesday.



Despite experiencing relatively low death rates compared to more developed regions, Africa was dealt a heavy economic blow by the COVID-19 pandemic.



While 2021 saw a continent-wide rebound, with gross domestic product (GDP) growth estimated at 6.9% after a pandemic-induced contraction of 1.6% the previous year, the Bank projects real GDP growth to slow to 4.1% this year.



&#8220;The deceleration in growth highlights the severity of the impact of the Russia–Ukraine conflict on Africa&#8217;s economy,&#8221; the AfDB wrote in its 2022 African Economic Outlook.



&#8220;If the conflict persists, Africa&#8217;s growth is likely to stagnate at around 4 percent in 2023.&#8221;



Inflation is meanwhile expected to accelerate to 13.5% this year, from 13% in 2021, due to a sharp rise in energy and food prices linked to the war in Ukraine.



The AfDB estimates around 30 million Africans were pushed into extreme poverty and 22 million lost their jobs last year alone as a result of the pandemic.



Vulnerable populations, particularly in urban areas, will bear the brunt of rising prices, the report said, adding that economic disruptions stemming from the war could tip nearly 4 million more into extreme poverty this year and next.



&#8220;In the absence of measures to cushion the impact, this could stoke social tension across the continent,&#8221; the report stated. &#8220;But in many African countries, fiscal space remains constrained by the effects of the pandemic.&#8221;



The AfDB forecasts Africa&#8217;s debt-to-GDP ratio to stabilise at around 70%, down slightly from 71.4% in 2020, due to last year&#8217;s growth recovery and debt relief measures, but will remain above pre-pandemic levels.



(Reporting by Joe Bavier, Editing by Louise Heavens)

AFDB_Logo

Africa risks stagflation due to pandemic, Ukraine war – AfDB￼

ABUJA, May 25 (Reuters)&nbsp;&#8211;&nbsp;The bid-ask spreads on Nigerian bond yields widened up to 15 basis points on average on Wednesday from 5 basis points before a surprise central bank rate hike a day earlier.



The benchmark 2042 bond bid-ask spread widened as much as 35 basis points, as yields also rose, traders said.



The central bank raised benchmark interest rate by 150 basis points to 13% on Tuesday, its first hike in more than two years, to combat rising inflation, sending markets tumbling.<a href="https://www.reutersconnect.com/all?search=all%3AL5N2XG3P9&amp;linkedFromStory=true" target="_blank" rel="noreferrer noopener">Read full story</a>



Traders said the central bank sold the one-year Treasury bill at 6.49% after investors demanded the debt at a rate as high as 10.25%. This compares with a yield of 4.75% the one-year maturity fetched at a previous auction.



The main share index&nbsp;.NGSEINDEX&nbsp;gained 1.24% on Wednesday, recovering from a two-week low triggered by the rate decision. The index has been rising this year as local investors pile into equities in the wake of double-digit inflation.



(Reporting by Chijioke OhuochaEditing by James Macharia Chege and Sam Holmes)

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Nigerian bond spreads widen after surprise rate hike

DAKAR, May 25 (Reuters)&nbsp;&#8211;&nbsp;Senegal&#8217;s president and African Union chairman Macky Sall said on Wednesday that when he visits Russia and Ukraine in the coming weeks he will push them to unblock exports of grains and fertilizer to avoid widespread famine.



Africa is suffering from disruptions in food supply and soaring prices of basic goods and risks &#8220;disastrous consequences&#8221; if the situation endures, Sall said during a conversation with philanthropist Mo Ibrahim at the Ibrahim Governance Forum.



Nearly half of Africa&#8217;s 54 countries rely on Russia and Ukraine for wheat imports, according to the United Nations Food and Agriculture Organization. Russia is also a major supplier of fertilizer to at least 11 countries.<a href="https://www.reutersconnect.com/all?search=all%3AL5N2WV5UH&amp;linkedFromStory=true" target="_blank" rel="noreferrer noopener">Read full story</a>



&#8220;We have pleaded for a ceasefire, for an end to the war and for the release of all food products &#8230; so that the world doesn&#8217;t know a famine after two years of COVID and almost three months of war,&#8221; said Sall. Russia invaded Ukraine in late February.



&#8220;There are multiple initiatives to call on countries that have (grain) stocks to liberate them &#8230; and to ensure that Russia can authorize the export of cereals from Ukraine and can also export itself. This is the African position,&#8221; he said.



Parts of Africa are already facing record hunger levels, driven by insecurity, climate shocks and the economic downturn caused by the COVID-19 pandemic.L5N2W23Z3



If food supply blockages were to continue and there was a famine, Sall said: &#8220;The world would not be able to contain the consequences because it would be massive on immigration. It would be dramatic for African countries.&#8221;



Sall said on Sunday he would visit Moscow and Kyiv in his capacity as chairman of the African Union, which wants peace in Ukraine through dialogue between the two sides.<a href="https://www.reutersconnect.com/all?search=all%3AL5N2XE0BP&amp;linkedFromStory=true" target="_blank" rel="noreferrer noopener">Read full story</a>



(Reporting by Bate Felix; Writing by Nellie Peyton; editing by Grant McCool)

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African Union head to push Russia, Ukraine to unblock grain exports￼

ABUJA, May 23 (Reuters)&nbsp;&#8211;&nbsp;Nigerian GDP grew 3.11% in the first quarter, slower than in the previous quarter as a fall in oil production hit the rest of the economy, the national statistics office said on Monday ahead of a central bank interest rate decision on Tuesday.



It was the sixth consecutive quarter of growth, with non-oil sectors helping Nigeria bounce back from a severe recession caused by the COVID-19 pandemic. The full-year GDP figure for 2021 showed the fastest growth in seven years.&nbsp;<a href="https://www.reutersconnect.com/all?search=all%3AL1N2US0UR&amp;linkedFromStory=true" target="_blank" rel="noreferrer noopener">Read full story</a>



Gross domestic product grew by 3.98% in the fourth quarter of 2021. In the first three months of last year, the growth rate was 0.51%.



&#8220;After the recession experienced by the country in 2020 occasioned by the COVID-19 pandemic, the economy has been on the path of growth,&#8221; the National Bureau of Statistics (NBS) said.



It said non-oil sectors such as financials, communication, trade and healthcare were among the fastest growing.



However, oil refining, crude petroleum and natural gas, road transport, quarrying and other minerals were lagging.



The naira&nbsp;NGNP=, hit a record low of 609 against the dollar on the black market, where it is freely traded, as the GDP data was announced.



The oil sector shrank by 26.04% in the first quarter, compared with an 8.06% contraction the previous quarter. Crude production fell to 1.49 million barrels per day in the first quarter from 1.50 million barrels in the previous three months.



Frequent vandalism and illegal refining in the oil-producing Niger Delta region have kept the sector under pressure. Nigeria has struggled to meet its production targets, partly missing out on the effects of the global surge in oil prices.



The weak growth could prompt the central bank to keep its dovish stance at a policy meeting on Tuesday despite double-digit inflation, analysts say.&nbsp;<a href="https://www.reutersconnect.com/all?search=all%3AL2N2VO1JM&amp;linkedFromStory=true" target="_blank" rel="noreferrer noopener">Read full story</a>



($1 = 415.00 naira)



(Reporting by Chijioke Ohuocha; Editing by Estelle Shirbon, Jan Harvey and Tomasz Janowski)

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Nigeria Q1 GDP growth slows Q/Q ahead of rates decision

May 20 (Reuters)&nbsp;&#8211;&nbsp;Ratings agency S&amp;P&nbsp;<a href="https://disclosure.spglobal.com/ratings/en/regulatory/article/-/view/type/HTML/id/2842888" target="_blank" rel="noreferrer noopener">revised</a>&nbsp;South Africa&#8217;s outlook to &#8220;positive&#8221; on Friday, saying it reflects favourable terms of trade and a path toward contained fiscal expenditure for the country.



S&amp;P upgraded its outlook from &#8220;stable&#8221; and affirmed the &#8220;BB-/B&#8221; foreign currency as well as &#8220;BB/B&#8221; local currency ratings on South Africa.



&#8220;Recent favourable terms of trade in South Africa have improved the external and fiscal trajectory, while the country&#8217;s reasonably large net external asset position, flexible currency and deep domestic capital markets provide strong buffers against shifts in external financing,&#8221; S&amp;P said in its report.



S&amp;P said it expects South Africa&#8217;s fiscal deficit to remain elevated, but gradually narrow to 5% of GDP by fiscal 2025.



The economic growth of Africa&#8217;s most industrialised country is expected to slow to 1.7% this year, according to the central bank&#8217;s forecast on Thursday, from a 4.9% expansion last year, as it recovers from a contraction in the wake of the COVID-19 pandemic.&nbsp;<a href="https://www.reutersconnect.com/all?search=all%3AL5N2XB4IH&amp;linkedFromStory=true" target="_blank" rel="noreferrer noopener">Read full story</a>



(Reporting by Ahmed Farhatha in Bengaluru and Olivia Kumwenda-Mtambo in Johannesburg; Editing by Amy Caren Daniel)

Economy

Pummelled by recession blow, stocks see worst week in 3 months

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Currencies subdued as dollar rises on big Fed hike bets

IMF urges countries to support vulnerable, avoid blanket subsidies as food, fuel prices soar

Test-case Angolan bank IPO prices at top of range

Stocks slip in downbeat start to June; Turkish lira extends slide

Tullow Oil merges with Capricorn in $827 mln all-share deal

Shortage of oil refineries haunts Africa as fuel prices rocket

South Africa’s Q1 unemployment rate falls to 34.5%

U.S. SEC looking into Musk’s Twitter stake purchase

IMF secures $40 billion so far for new sustainability trust

World Bank’s Malpass says war in Ukraine may trigger global recession

Africa risks stagflation due to pandemic, Ukraine war – AfDB

Nigerian bond spreads widen after surprise rate hike

African Union head to push Russia, Ukraine to unblock grain exports

Nigeria Q1 GDP growth slows Q/Q ahead of rates decision

S&P raises South Africa’s outlook to ‘positive’ on trade terms, fiscal discipline

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Economy

Pummelled by recession blow, stocks see worst week in 3 months

WTO provisionally agrees to extend e-commerce tariff moratorium – sources

Currencies subdued as dollar rises on big Fed hike bets

IMF urges countries to support vulnerable, avoid blanket subsidies as food, fuel prices soar

Test-case Angolan bank IPO prices at top of range

Stocks slip in downbeat start to June; Turkish lira extends slide

Tullow Oil merges with Capricorn in $827 mln all-share deal

Shortage of oil refineries haunts Africa as fuel prices rocket

South Africa’s Q1 unemployment rate falls to 34.5%

U.S. SEC looking into Musk’s Twitter stake purchase

IMF secures $40 billion so far for new sustainability trust

World Bank’s Malpass says war in Ukraine may trigger global recession￼

Africa risks stagflation due to pandemic, Ukraine war – AfDB￼

Nigerian bond spreads widen after surprise rate hike

African Union head to push Russia, Ukraine to unblock grain exports￼

Nigeria Q1 GDP growth slows Q/Q ahead of rates decision

S&P raises South Africa’s outlook to ‘positive’ on trade terms, fiscal discipline

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World Bank’s Malpass says war in Ukraine may trigger global recession

Africa risks stagflation due to pandemic, Ukraine war – AfDB

African Union head to push Russia, Ukraine to unblock grain exports