<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="2048" height="1365" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/07/GettyImages-2160673037-scaled.jpg" alt="" class="wp-image-504199" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/07/GettyImages-2160673037-scaled.jpg 2048w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/GettyImages-2160673037-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/GettyImages-2160673037-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/GettyImages-2160673037-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/GettyImages-2160673037-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/GettyImages-2160673037-1536x1024.jpg 1536w" sizes="auto, (max-width: 2048px) 100vw, 2048px" /><figcaption class="wp-element-caption">LONDON, ENGLAND &#8211; JULY 05: Labour Leader Keir Starmer celebrates winning the 2024 General Election with a speech at Tate Modern on July 05, 2024 in London, England. Labour is on course to win a landslide victory in the 2024 General Election. Starmer addresses the nation promising Country first, Party second. (Photo by Ricky Vigil/Getty Images)</figcaption></figure>



LONDON — The U.K.’s opposition Labour Party won a huge parliamentary majority in the country’s general election, unseating the incumbent Conservatives after 14 years.



Early on Friday morning, Labour passed the threshold needed to govern alone as outgoing PM Rishi Sunak conceded defeat. Keir Starmer, leader of the center-left Labour, will become the country’s next prime minister and declared victory in the early hours.



“We did it,” he said, addressing his Labour colleagues. “You campaigned for it, you fought for it — and now it has arrived &#8230; change begins now.”



Some projections show Labour will gain its second-largest majority after former Prime Minister&nbsp;Tony Blair’s 179-seat majority in 1997.



Millions of people across England, Scotland, Wales and Northern Ireland on Thursday voted for their local representatives in the 650-member House of Commons, the U.K.’s lower house of parliament. Ballots are still being counted, with constituencies announcing their winning candidate as soon as votes are tallied.



Here are the seats that have been declared so far:



<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="794" height="746" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/07/UK-Elections-Graph.png" alt="" class="wp-image-504197" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/07/UK-Elections-Graph.png 794w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/UK-Elections-Graph-300x282.png 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/UK-Elections-Graph-96x90.png 96w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/UK-Elections-Graph-768x722.png 768w" sizes="auto, (max-width: 794px) 100vw, 794px" /></figure>



<h2 class="wp-block-heading" id="h-what-labour-s-win-means-for-uk-markets">What Labour’s win means for UK markets</h2>



The arrival of a new Labour government hasn’t moved markets all that much yet but analysts expect U.K. assets to become more attractive from here on out.



In a note Friday, analysts at Jefferies said, despite concerns raised by a strong showing for the right-wing Reform UK Party, the Labour Party’s U.K. election win would help make the U.K. appear “relatively stable.”



This, in combination with regulatory reform, “could raise the attractiveness of UK assets,” Jefferies’ analysts wrote in a research note.



Beata Manthey, European equity strategist at Citi, noted that history shows U.K. markets tend to trade flat on average six months after Labour wins, but “meaningfully higher one year later.”



“On a relative basis, the UK market has tended to underperform 1-2 months after Labour wins, while tallying decent relative performance 12m post-election,” Manthey said.



“The domestically oriented FTSE 250 has typically outperformed the FTSE 100 following Labour victories. Sterling and Gilts will be key to watch,” she added.



“FTSE 250 over FTSE 100 is our preferred post-election trade.”



&#8211; Ryan Browne

Labour Leader Keir Starmer Celebrates Winning The 2024 General Election

Labour Party wins UK election in a landslide

<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="2048" height="1341" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/07/107357803-1705027006499-AP24012015065200-scaled.jpg" alt="" class="wp-image-503927" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/07/107357803-1705027006499-AP24012015065200-scaled.jpg 2048w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/107357803-1705027006499-AP24012015065200-300x196.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/107357803-1705027006499-AP24012015065200-820x537.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/107357803-1705027006499-AP24012015065200-137x90.jpg 137w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/107357803-1705027006499-AP24012015065200-768x503.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/107357803-1705027006499-AP24012015065200-1536x1005.jpg 1536w" sizes="auto, (max-width: 2048px) 100vw, 2048px" /><figcaption class="wp-element-caption">Britain’s Prime Minister Rishi Sunak, left, and U.S. President Joe Biden speak at the start of the meeting of the North Atlantic Council (NAC) during the NATO Summit in Vilnius, Lithuania, July 11, 2023. Paul Ellis | AP</figcaption></figure>



The U.K. and U.S. have a lot in common — a shared language, history, democratic ideals and values. But when it comes to politics, us Brits do things very differently from our American friends.



Those differences are plain to see as election campaigns ramp up in the U.K. and U.S., ahead of the British vote on July 4 and the U.S. ballot on Nov. 5.



Of course, our political systems encompass different electoral procedures and processes, but there are other nuances to how the Brits and Americans do political races differently. Here are a handful of them:



<h2 class="wp-block-heading" id="h-1-campaigns"><a></a>1) Campaigns</h2>



By the time a presidential election takes place in the United States, the electorate will have already endured months of seemingly endless electioneering — with the entire election campaign process from candidacies and the campaign trail to the actual presidential election and inauguration taking up to two years.



In the U.K., the time frame between a prime minister calling a general election to the actual vote is just six weeks. American readers might, very reasonably, read that and weep.



With such a tight window in which to win voters’ support, the leaders of Britain’s political parties dash about the U.K. on campaign “battle buses” as they try to visit as many constituencies as possible to persuade voters to elect the local party candidate as a member of Parliament (MP).



The party that wins the most seats in the House of Commons (the British Parliament) usually forms the new government and its leader becomes prime minister. It sounds simple, and usually is, unless there’s a “hung parliament” in which no political party wins a majority of seats. In that case, the largest party can either form&nbsp;a minority government or enter into a&nbsp;coalition government of two or more parties.



Bobby Duffy, director of the Policy Institute at King’s College London, told CNBC that there are many historical and structural differences between the countries when it comes to politics, and reasons why American campaigns are so much longer.



“The hugeness of the election in the U.S. is a function of the massive amounts of money at play to some degree. You do have to have these long periods of fundraising alongside campaigning and we just have completely different rules and structures around that.”



<h2 class="wp-block-heading"><a></a>2) Election spending and ads</h2>



Money is certainly one of biggest differences between U.K. general elections and U.S. presidential elections. Stateside, billions of dollars can be fundraised and spent on campaign activities and political ads, far above that spent in the U.K. (after all, the parties in Britain only have six weeks in which to spend the money!).



For a Brit, the money raised and spent by Republicans and Democrats during election campaigns is eye-watering. In April, the U.S. Federal Election Commission released data that showed that during the first 12 months of the 2024 election cycle (covering 2023), presidential candidates collected $374.9 million and disbursed $270.8 million, while political parties received $684.5 million and spent $595 million, and political action committees raised $3.7 billion and spent $3.1 billion, according to campaign finance reports filed with the commission.



A number of political action committees, or PACs, raise money and make direct contributions to candidates’ campaigns or parties. In the case of “super PACs,” committees raise and spend an unlimited amount of money in support of their preferred candidates, often funding large-scale ad campaigns.



In the U.K., meanwhile, the Electoral Commission sets out strict rules on spending limits for political parties contesting the general election in Great Britain (made up of England, Wales and Scotland). In England, for example, the limit is whichever the greater is of £1,458,440 ($1,845,098) or £54,010 times the number of seats the party is contesting in each part of Britain. Parties can be fined, and often are, for breaching those limits.



In the U.K., political advertising&nbsp;on TV and radio is not allowed, so U.K. voters are subjected to the somewhat quaint “party political broadcasts” during election campaigns. That’s where parties are allocated broadcast slots, free of charge, on radio and TV channels in which they can set out their election pledges. The broadcasts are sporadic, however, and easy to miss, unlike the thousands of ads in the U.S.



<h2 class="wp-block-heading"><a></a>3) ‘We don’t do God’</h2>



You will never hear a British politician — at least not a mainstream one — mentioning God in a political speech or campaign. Ever.



Religion, in general, is kept separate from politics in the U.K., a multifaith country but also one in which religious belief is declining, particularly among younger generations. Just under half (49%) of Britons surveyed in 2022 said they believed in God — down from three-quarters (75%) in 1981, according to a study by King’s College London published last year.



While it’s common to hear U.S. politicians proclaim “God bless America,” jaws would drop in the U.K. if a British politician made such an expression of faith in a political speech. Political aides say the subject is better left alone.



Alastair Campbell, who served as the Labour Party’s director of communications and strategy under former Prime Minister Tony Blair, reportedly interjected with the now famous phrase&nbsp;“we don’t do God,” when Blair, then a member of the Church of England, was asked about his faith while in power.



On another occasion, Blair was reportedly keen on ending a speech with the phrase “God bless Britain” but later said he was advised against it, noting that “one of the civil servants said in a very po-faced way ‘I just remind you prime minister, this is not America’ in this very disapproving tone, so I gave up the idea.” Blair converted to Catholicism on leaving office in 2007.



An aversion to mixing politics and personal belief still runs deep in British public life, Dan Stevens, professor of politics at Exeter University, told CNBC, unlike in the U.S.



“They’re just a much more religious society than we are. The U.K., along with much of Western Europe, is just so secular it’s just not even something worth talking about. Whereas in America, although it is secularizing, particularly among younger people &#8230; there is still this need for political candidates, including people like Donald Trump, to espouse some kind of religion to earn the electorate’s trust.”



<h2 class="wp-block-heading"><a></a>4) Age is just a number</h2>



U.K. voters have been hearing a lot in the press about how U.S. election debates have focused on incumbent President Joe Biden’s age. Indeed, British politicians look like whippersnappers when compared with the 81-year-old president and 78-year-old Republican candidate Trump.



Incumbent British Prime Minister Rishi Sunak is a youngster in comparison, at a mere 44 years old while Keir Starmer, the leader of the Labour Party and, polls suggest, the man likely to become the next prime minister, is “only” 61.



“There are so much older candidates in the U.S.,” the Policy Institute’s Duffy told CNBC, describing it to a “gerontocracy trend” in which society is governed by old people. “It’s very different from around the world where we’re actually seeing a decline in the age of world leaders.”



In the U.S., the age of the candidates reflects the decades it takes to build “political capital and connections,” Duffy said. With support for Biden shaken by his poor performance in a televised debate with Trump, it’s that political capital and connections that appear to be keeping Biden’s election campaign alive.



<h2 class="wp-block-heading"><a></a>5) ‘Culture wars’</h2>



Another point of difference in British elections, and politics in general, is that “morality issues” are not prominent points of debate, dissent or divergence. Unlike the U.S., where the abortion debate, gun control and gay marriage are sources of contention, those debates are not hot topics in the U.K. where abortion is legal, gun ownership is rare and heavily restricted (critics would argue the U.K. has a knife crime problem instead), and gay marriage is (aside from among some members of the clergy) uncontested.



Similarly, “identity politics” and “culture wars” — the umbrella term for conflicts between often opposed political groupings with different cultural values and beliefs — are not so prominent in the U.K. But the U.K. does have our “moments” — the topics of immigration, transgender rights, the U.K.’s relationship with the European Union (yes, Brexit is still “a thing” eight years after a referendum on EU membership) and assisted dying are hot topics where divisions are evident among the British press and public. Still, such issues are seen as “more of a personal rather than a party issue” in the U.K., according to John Curtice, a top U.K. polling expert who has studied British social attitudes extensively.



“Moral issues of life and death are indeed taken out of our party politics, but other aspects of the argument between social liberals and social conservatives are not taken out, and it’s become more important,” he told CNBC.



<h2 class="wp-block-heading"><a></a>6) ‘Absurd’ diversions</h2>



British political experts note that, unlike in the U.S., where broad political debates tend to remain the key focus, U.K. election campaigns can see more minor or fringe issues dominate the short election campaign.



A betting scandal has erupted in Britain in recent weeks, for example, after several candidates for the Conservative Party, and a candidate for the opposing Labour Party, were found to have placed bets on the date of the general election before it was officially announced, and its outcome, leading to accusations of impropriety in public office. It’s uncertain what amounts were staked, and those accused deny wrongdoing, though investigations have been launched by the U.K.’s gambling watchdog and the police.



Before the gambling debacle, Prime Minister Rishi Sunak’s decision to skip the main D-Day commemorations in France also caused a massive stir in the British press, who questioned his judgment. Such “diversions” during British election campaigns are common, and often pertain to issues that start as “matters of principle” that are then “taken to absurd lengths,” according to Stevens.



“There’s a tendency for our campaigns to veer off in these strange directions where we just lose the big picture,” Stevens said. “I don’t think that happens in America where the stakes are just higher,” he said.



“There, the stakes are just massive.”

107357803-1705027006499-AP24012015065200

No God, no big ads and no age debate: The UK election race is very different to America’s

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="462" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/07/108001628-1720062067145-gettyimages-814141990-kidsunset-820x462.jpeg" alt="" class="wp-image-503924" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/07/108001628-1720062067145-gettyimages-814141990-kidsunset-820x462.jpeg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/108001628-1720062067145-gettyimages-814141990-kidsunset-300x169.jpeg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/108001628-1720062067145-gettyimages-814141990-kidsunset-160x90.jpeg 160w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/108001628-1720062067145-gettyimages-814141990-kidsunset-768x432.jpeg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/108001628-1720062067145-gettyimages-814141990-kidsunset.jpeg 929w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">A little boy with his mother and grandmother, watch the sunset scenery at Beijing international airport.  Zhang Peng | Lightrocket | Getty Images</figcaption></figure>



China’s population is shrinking, and the demographic shift will ultimately hurt its economy, shrink the labor force and put pressure on fiscal policy.



“The working age population [in China] will fall so rapidly over the next decade, that the Chinese economy will need to deal with 1% drag in GDP growth per year for next 10 years,” Darren Tay, head of Asia country risk at BMI Country Risk &amp; Industry Analysis, told “Squawk Box Asia” in June, referring to estimates gathered by evaluating world population data released by the United Nations.



“The fiscal strain as a result of ageing is immediate and concerning,” the Economist Intelligence Unit has warned.



“Economic growth hinges on productivity, capital accumulation and labour inputs. The negative effect of an adverse demographic landscape will manifest primarily through a shrinking workforce,” according to the report published in January.



Raising the retirement age is “one of the few viable options” to maintain long-term fiscal balance, the EIU said.



“Our calculations suggest that&nbsp;if the retirement age is raised to 65 by 2035, the pension budget shortfall could be reduced by&nbsp;20% and received net pension can be increased by 30%, suggesting relief of both government and household burden,” according to the report.



Birth rates are falling around the world as women choose to have children later, or not at all.



Fertility rates have halved across OECD countries — some of the world’s richest nations — falling from about 3.3 children per woman in 1960 to about 1.5 children per woman in 2022, according to the OECD, or Organisation for Economic Co-operation and Development.



“This is significantly below the ‘replacement level’ of 2.1 children per woman needed to keep population constant in the absence of migration,” according to the&nbsp;June&nbsp;report.



<h2 class="wp-block-heading" id="h-china-s-shrinking-population"><a></a>China’s shrinking population</h2>



China’s population fell for a second consecutive year in 2023 to 1.409 billion people — dropping by 2.08 million from the previous year, according to data from the National Bureau of Statistics of China.



That’s more than the population decline of about 850,000 in 2022 — the first year deaths outnumbered births in the country since the early 1960s during the Great Famine.



“This is a consequence of the one-child policy [set] in place [in] the 1980s,” Erica Tay, director of macro research at Maybank, told CNBC.



China’s population is expected to shrink to 1.317 billion by 2050, and drop by nearly half — to 732 million — by 2100.



Fertility rate in the country is dropping more quickly than its regional peers like South Korea and Japan, Tianchen Xu, a senior economist at The Economist Intelligence Unit (EIU), told CNBC.



He said the three countries are disproportionately impacted by&nbsp;a rapidly aging population,&nbsp;largely due to&nbsp;improved standards of living,&nbsp;which&nbsp;have&nbsp;a “very strong inverse relationship with fertility rates.”



China, in particular, has been “growing at a very high rate for nearly three decades.” and its economic expansion has been “rapid and extended,” he added.



The country’s&nbsp;welfare system has also “lagged” and fiscal support for childbearing is “quite low by international comparison,” according to Xu.



Surging home prices are not helping.



“The government has largely been incapable of managing the significant rising housing costs,” according to Xu, who pointed out that as housing becomes increasingly costly, people may find it difficult to purchase homes and delay starting a family.



<h2 class="wp-block-heading"><a></a>Falling birth rates</h2>



The rapid economic expansion seen in recent decades in developed nations has brought about rising income levels and the broadening of educational and career opportunities for women.



These improved conditions have led to a greater opportunity cost for having children, Xu said.



“In more developed societies, the tendency is that parents face a much higher cost of raising children, and that tends to be a deterrent to having [them],” said BMI’s Tay.



“The more developed an economy is, the more skills the actors in the economy have to have, and thus, the required investment in each [child] rises by that amount,” he said.



The work culture in Asia can also&nbsp;play a part.



“Among the Asian countries, there’s the entrenched mindset of working long hours,” said Xu, which is “particularly an issue in China, South Korea&#8230; [and] other parts of East and Southeast Asia.”



“These countries are where the aggregate working hours are the longest in the world,” and as a result, workers have less time to build a family, Xu told CNBC.



<h2 class="wp-block-heading"><a></a>Shrinking workforce</h2>



A decline in fertility rate puts pressure on the economy and&nbsp;the society at large&nbsp;as the working population shrinks.



“A country’s birth rates will translate into its working age population growth, some two decades down the road,” said Tay from Maybank..



Additionally, falling fertility rates can impact the ratio of elderly folks who need support from younger generations, which can put “excessive burdens on a country’s health care and pension systems,” Maybank’s Tay told CNBC.



Ultimately, the&nbsp;burden on younger&nbsp;generations will grow as they need to care not only for their own children, but for their elderly parents as well.



This demographic shift in parts of Asia is a structural issue that will require “determined and holistic government effort,” on both fiscal and monetary policy, she said.



<h2 class="wp-block-heading"><a></a>China’s policy shifts</h2>



In China, policymakers have been putting a big emphasis on “productivity growth,” Xu told CNBC.



“They have [seen] that there’s a very big decline in the labor contribution to GDP, [which] cannot be mitigated via any sort of policy intervention in the short term,” he said. “That’s why they have been focusing on their productivity growth.”



The country has invested heavily into shifting to digital solutions and developing technologies such automation and advanced chips, said Xu, with the goal of making traditional industries more efficient, and overall, improving productivity.



Looking ahead, Chinese policymakers are encouraged to do more about the labor environment. “That probably entails tighter enforcement of the labor law and promoting work-life balance,” said Xu.



Economists also agree that Chinese policymakers should also work to raise the retirement age in the country, create more aggressive tax rebates for costs associated with child-rearing, and step-up its efforts in constructing affordable housing in the country.



Despite the slowdown in growth expected in China due to its demographics issue, the country’s GDP has grown an average of 9% per year since 1978, according to the World Bank.



Ultimately, “the fact remains that growth of even around 3% would not be, by any stretch of the imagination, a disaster for the Chinese economy,” Tay from BMI told CNBC.



“If they would continue to grow at that pace, which probably would be more sustainable, the average Chinese citizen would be in real terms, better off in income by 13% by 2033,” he added. “So living standards would still continue to rise.”

108001628-1720062067145-gettyimages-814141990-kidsunset

China faces economic headwinds as it grapples with an aging — and shrinking — population

<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="800" height="525" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/07/LYNXNPEE8A12W-OZABS.jpg" alt="" class="wp-image-503921" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/07/LYNXNPEE8A12W-OZABS.jpg 800w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/LYNXNPEE8A12W-OZABS-300x197.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/LYNXNPEE8A12W-OZABS-137x90.jpg 137w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/LYNXNPEE8A12W-OZABS-768x504.jpg 768w" sizes="auto, (max-width: 800px) 100vw, 800px" /><figcaption class="wp-element-caption">Trafigura logo is pictured in the company entrance in Geneva March 11, 2012. REUTERS/Denis Balibouse</figcaption></figure>



July 4 (Reuters)&nbsp;&#8211;&nbsp;Trafigura and engineering company Promarks have signed a memorandum of understanding (MOU) with the government of Angola to develop a regional power transmission and supply project, the commodities trading company said on Thursday.



The project under consideration is a 2,000 megawatt high-voltage electricity transmission line to take power produced by hydroelectric dams in the north of Angola to the DRC copper belt and Zambia, integrating with the Southern Africa Power Pool, Trafigura said.



(Reporting by Brijesh Patel in Bengaluru; Editing by David Goodman)

LYNXNPEE8A12W-OZABS

Trafigura and Promarks sign preliminary agreement on Angola power project

<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="929" height="523" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/07/108001664-1720074872647-gettyimages-2159858100-UK_STARMER.jpeg" alt="" class="wp-image-503819" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/07/108001664-1720074872647-gettyimages-2159858100-UK_STARMER.jpeg 929w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/108001664-1720074872647-gettyimages-2159858100-UK_STARMER-300x169.jpeg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/108001664-1720074872647-gettyimages-2159858100-UK_STARMER-820x462.jpeg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/108001664-1720074872647-gettyimages-2159858100-UK_STARMER-160x90.jpeg 160w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/108001664-1720074872647-gettyimages-2159858100-UK_STARMER-768x432.jpeg 768w" sizes="auto, (max-width: 929px) 100vw, 929px" /><figcaption class="wp-element-caption">Keir Starmer, leader of the Labour Party, campaigns ahead of the general election, in Redditch, UK, on Wednesday, July 3, 2024. Bloomberg | Bloomberg | Getty Images</figcaption></figure>



LONDON — The U.K. heads to the ballot box on Thursday, as the incumbent Conservative Party seeks to defy months of polls that suggest it will suffer a historic defeat at the hands of the center-left Labour Party.



Prime Minister Rishi Sunak announced the vote six weeks ago, taking politicians and the public alike by surprise. Most had expected the election to take place later in the year, giving more time for the recent decline in inflation and anticipated reduction in interest rates to hit voters’ wallets.



A number of smaller parties are vying to win seats in the 650-member House of Commons, the U.K.’s lower house of parliament, including the Liberal Democrats, Greens, Scottish National Party, Plaid Cymru, the Democratic Unionist Party and Nigel Farage’s Reform UK. Votes will be cast across England, Scotland, Wales and Northern Ireland.



Within the U.K. political system, a party increasing its share of the popular vote does not necessarily translate to winning more parliamentary seats — and it is all but guaranteed that either the Conservatives or Labour, led by Keir Starmer, will receive the reins of power. That could either be through winning an absolute majority or by forming a coalition government.



Convention says the leader of the party with the most seats in the Commons becomes prime minister



Political surveys have for nearly two years pointed to a resounding Labour victory, even though the party will require a historic gain of nearly 13% in the national vote to win even a narrow parliamentary majority, according to Hannah Bunting, lecturer in quantitative British politics at the University of Exeter. That would be a bigger swing than the one achieved by Labour’s Tony Blair over John Major in 1997.



A strong Labour lead was reinforced in a major aggregate poll released by YouGov earlier this week.



However, politicos and Labour itself caution that no outcome is guaranteed and that the polling can be inaccurate. More than 100 seats are considered very close to call, including those currently held by high-profile Conservatives, including Finance Minister Jeremy Hunt and Sunak himself.



The Thursday ballot is the first U.K. general election since 2019, when then-Conservative leader Boris Johnson clinched the party’s biggest majority win since 1987 over Jeremy Corbyn’s Labour. That was on a platform promising to complete the “Brexit” process of leaving the European Union, which had become mired in a political gridlock.



Johnson’s administration was then marked by several public scandals, including the “Partygate” case in which senior politicians broke lockdown rules during the Covid-19 pandemic, leading to his reluctant resignation in July 2022.



He was succeeded by Liz Truss, who lasted just 44 days in office before resigning over the so-called mini-budget crisis, which rocked financial markets.



Sunak, a former finance minister for the Conservative Party, has since overseen a period of relative political stability; but one in which the country has been grappling with a severe cost of living crisis and sluggish economic growth.



The legacy of 14 years of Conservative rule — with the party winning power through a coalition arrangement under David Cameron in 2010 — has been a key theme on the campaign trail.



Sunak and Starmer have sought to convince the public that their party can address critical issues spanning housing, the National Health Service and defense.



Sunak claimed during a debate in early June that Labour’s policies would lead to a £2,000 ($2,553.73) tax rise for “every working family” over the course of the next parliament. Starmer said the figure was “made-up,” while the party has laid out tax increases targeting only specific groups.



The public has from 7 a.m. to 10 p.m. local time to cast a vote for their local parliamentary candidate, shortly after which a closely-watched exit poll will be released.



Ballots will be counted overnight, with a result expected out on Friday morning.

108001664-1720074872647-gettyimages-2159858100-UK_STARMER

Landmark UK election kicks off as center-left Labour seeks return to power after 14 years

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="581" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/07/https___cloudfront-us-east-2.images.arcpublishing.com_reuters_YEGVQ7V2ORNN3AV3IRZ2GEW6UM-820x581.jpg" alt="" class="wp-image-503034" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/07/https___cloudfront-us-east-2.images.arcpublishing.com_reuters_YEGVQ7V2ORNN3AV3IRZ2GEW6UM-820x581.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/https___cloudfront-us-east-2.images.arcpublishing.com_reuters_YEGVQ7V2ORNN3AV3IRZ2GEW6UM-300x213.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/https___cloudfront-us-east-2.images.arcpublishing.com_reuters_YEGVQ7V2ORNN3AV3IRZ2GEW6UM-127x90.jpg 127w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/https___cloudfront-us-east-2.images.arcpublishing.com_reuters_YEGVQ7V2ORNN3AV3IRZ2GEW6UM-768x544.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/https___cloudfront-us-east-2.images.arcpublishing.com_reuters_YEGVQ7V2ORNN3AV3IRZ2GEW6UM-1536x1088.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/https___cloudfront-us-east-2.images.arcpublishing.com_reuters_YEGVQ7V2ORNN3AV3IRZ2GEW6UM.jpg 1920w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">Excavators and drillers at work in an open pit at Tenke Fungurume, a copper and cobalt mine 110 km (68 miles) northwest of Lubumbashi in Congo&#8217;s copper-producing south. Picture taken January 29, 2013. REUTERS/Jonny Hogg//File Photo</figcaption></figure>



NEW DELHI, July 2 (Reuters)&nbsp;&#8211;&nbsp;India is in talks with&nbsp;countries in Africa&nbsp;and Latin America&nbsp;to get critical&nbsp;mineral blocks on a government-to-government basis, Veena Kumari Dermal, joint secretary&nbsp;of the&nbsp;Ministry of Mines, said at an industry event on Tuesday.



The official&nbsp;said that&nbsp;India is&nbsp;also in discussions&nbsp;with Australia for critical&nbsp;minerals.



The South Asian country may&nbsp;have to&nbsp;fast-track&nbsp;clearance for domestic critical minerals blocks,&nbsp;she added.



&#8220;We are having lots of discussions with many other resource-rich countries both in Africa as well as in Latin America for getting a block on a G2G basis or on a priority basis&#8221;, the joint secretary said.



Indian state-owned firm Khanij Bidesh India Ltd (KABIL) is in&nbsp;the&nbsp;process of setting up in Argentina to start exploration, the joint secretary said.



In January, KABIL signed a $24 million lithium exploration pact for five blocks in Argentina.



V.L. Kantha Rao, India&#8217;s secretary of mines, said at industry event in March that India was exploring opportunities in Africa for minerals such as copper, cobalt, and other critical resources, while also pursuing lithium blocks in Australia.



(Reporting by Neha Arora in New Delhi, Writing by Ashna Teresa Britto; Editing by Mrigank Dhaniwala and Sonia Cheema)

https___cloudfront-us-east-2.images.arcpublishing.com_reuters_YEGVQ7V2ORNN3AV3IRZ2GEW6UM

India in talks with Africa, Latin America countries for critical mineral blocks, official says

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/06/GettyImages-2017194273-820x547.jpg" alt="" class="wp-image-500666" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/06/GettyImages-2017194273-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/GettyImages-2017194273-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/GettyImages-2017194273-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/GettyImages-2017194273-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/GettyImages-2017194273-1536x1024.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/GettyImages-2017194273-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">JP Morgan headquarters at Canary Wharf financial district at the heart of Canary Wharf financial district on 6th February 2024 in London, United Kingdom. Canary Wharf is an area located near the Isle of Dogs in the London Borough of Tower Hamlets and is defined by the Greater London Authority as being part of London&#8217;s central business district. Along with the City of London, it constitutes one of the main financial centres in the United Kingdom and the world, containing many high-rise buildings including the third-tallest in the UK, One Canada Square. (photo by Mike Kemp/In Pictures via Getty Images)</figcaption></figure>



June 25 (Reuters)&nbsp;&#8211;&nbsp;India&#8217;s imminent inclusion in the world&#8217;s most widely followed emerging market bond index, JPMorgan&#8217;s GBI-EM, is expected to draw a combined $11 billion away from South Africa, Poland and Thailand&#8217;s local markets, the bank&#8217;s analysts have estimated.



The Wall Street lender said India&#8217;s entry, which starts on Friday and will take 10 months to complete, was likely to pull $4.7 billion from South Africa, $3.3 billion from Poland and $3.2 billion from Thailand.



It will also pull $2.9 billion and $2.5 billion from the Czech Republic and Chile respectively, it added.



&#8220;For EM-dedicated investors, we view India&#8217;s index inclusion as a zero-sum game and expect outflows from other EM local bond markets to accommodate,&#8221; JPMorgan&#8217;s strategists led by Michael Harrison said in a note.



On a broader level, the Europe, Middle East and Africa (EMEA) area is estimated to see the largest regional hit to index weight.



EMEA EM&#8217;s aggregate weight is expected to drop to 26.2% by March when India&#8217;s inclusion is complete compared to around 32% at the start of this month and 40% in 2021, before Russia&#8217;s 2022 exclusion from the index following its invasion of Ukraine.



International investors have bought more than $10 billion of Indian government bonds in the nine months since India&#8217;s inclusion was announced in September, taking their ownership to a record high.



&#8220;Index-related inflows to date&#8230; suggest 32-40% of the expected total of $20-25 billion of index-related inflows to India have already played out,&#8221; Harrison added.



Bond indexes like JPMorgan&#8217;s are influential because investment funds and other types of money managers use them as performance benchmarks which effectively informs what they tend to buy and sell.



In contrast to South Africa and the others, China, Indonesia and Mexico are not expected to see any reductions in their 10% GBI-EM index weights &#8211; the maximum one country can have, and the level India will have reached by March.



Latin America is expected to see a modest decrease, while EM Asia&#8217;s index weightage is estimated to increase, JPMorgan added.



(Reporting by Siddarth S and Johann M Cherian in Bengaluru and Marc Jones in London; Editing by Jan Harvey)

JP Morgan Headquarters At Canary Wharf

India’s JPMorgan bond index entry to suck $11 billion from S.Africa, Poland and Thailand

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/06/IDQEFEBXZ5P77DRBHHFL7D5QSI-820x547.jpg" alt="" class="wp-image-500343" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/06/IDQEFEBXZ5P77DRBHHFL7D5QSI-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/IDQEFEBXZ5P77DRBHHFL7D5QSI-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/IDQEFEBXZ5P77DRBHHFL7D5QSI-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/IDQEFEBXZ5P77DRBHHFL7D5QSI-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/IDQEFEBXZ5P77DRBHHFL7D5QSI-1536x1024.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/IDQEFEBXZ5P77DRBHHFL7D5QSI-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">FILE PHOTO: U.S. currency is seen in this picture illustration taken March 6, 2020. REUTERS/Mike Segar/Illustration/File Photo</figcaption></figure>



WASHINGTON, June 25 (Reuters)&nbsp;&#8211;&nbsp;The U.S. dollar remains the world&#8217;s primary reserve currency, and neither the euro nor the so-called BRICS countries have been able to reduce global reliance on the dollar, a new study by the Atlantic Council&#8217;s GeoEconomics Center shows.



The group&#8217;s &#8220;Dollar Dominance Monitor&#8221; said the dollar continued to dominate foreign reserve holdings, trade invoicing, and currency transactions globally and its role as the primary global reserve currency was secure in the near and medium term.



Dollar dominance — the outsized role of the U.S. dollar in the world economy — has been strengthened recently given the robust U.S. economy, tighter monetary policy and heightened geopolitical risks, even as economic fragmentation has strengthened a push by BRICS countries to shift into other international and reserve currencies.



The Atlantic Council report said Western sanctions on Russia imposed by the Group of Seven advanced economies after Moscow&#8217;s invasion of Ukraine had accelerated efforts by the BRICS countries to develop a currency union, but the group had been unable to make progress on its de-dollarization efforts.



BRICS is an intergovernmental organization made up of Brazil, Russia, India, China, South Africa, Iran, Egypt, Ethiopia, and the United Arab Emirates.



The council said China&#8217;s Cross-Border Interbank Payment System (CIPS) added 62 direct participants in the 12 months to May 2024, an increase of 78%, bringing the total to 142 direct participants and 1,394 indirect participants.



Negotiations around an intra-BRICS payment system were still in the nascent stages, but bilateral and multilateral agreements within the group could form the basis for a currency exchange platform over time. However, these agreements were not easily scalable, since they were negotiated individually, the report said.



It noted that China has actively supported renminbi liquidity through swap lines with its trade partners, but the share of renminbi in global foreign currency reserves dropped to 2.3% from the peak of 2.8% in 2022.



&#8220;This is possibly because of reserve managers’ concern about China’s economy, Beijing’s position on the Russia-Ukraine war, and a potential Chinese invasion of Taiwan contributing to the perception of the renminbi as a geopolitically risky reserve currency,&#8221; the report said.



The euro, once considered a competitor to the dollar&#8217;s international role, was also weakening as an alternative currency, with those looking to reduce their risk exposure turning to gold instead, the report said.



It said Russian sanctions had made it clear to reserve managers that the euro was exposed to similar geopolitical risks as the dollar. Concerns around macroeconomic stability, fiscal consolidation, and the lack of a European capital markets union also hurt the euro’s international role, it said.



(Reporting by Andrea Shalal; Editing by Andrea Ricci)

FILE PHOTO: U.S. currency is seen in this picture illustration

US dollar’s dominance secure, BRICS see no progress on de-dollarization -report

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="552" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/06/107361656-17056708822024-01-16t100740z_243850206_rc2yi5adu5sj_rtrmadp_0_davos-meeting-820x552.jpeg" alt="" class="wp-image-500325" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/06/107361656-17056708822024-01-16t100740z_243850206_rc2yi5adu5sj_rtrmadp_0_davos-meeting-820x552.jpeg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/107361656-17056708822024-01-16t100740z_243850206_rc2yi5adu5sj_rtrmadp_0_davos-meeting-300x202.jpeg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/107361656-17056708822024-01-16t100740z_243850206_rc2yi5adu5sj_rtrmadp_0_davos-meeting-134x90.jpeg 134w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/107361656-17056708822024-01-16t100740z_243850206_rc2yi5adu5sj_rtrmadp_0_davos-meeting-768x517.jpeg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/107361656-17056708822024-01-16t100740z_243850206_rc2yi5adu5sj_rtrmadp_0_davos-meeting-1536x1033.jpeg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/107361656-17056708822024-01-16t100740z_243850206_rc2yi5adu5sj_rtrmadp_0_davos-meeting-scaled.jpeg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">China’s Premier Li Qiang speaks during the 54th annual meeting of the World Economic Forum in Davos, Switzerland, January 16, 2024.  Denis Balibouse | Reuters</figcaption></figure>



DALIAN, China — Chinese Premier Li Qiang on Tuesday defended the country’s technological development while criticizing efforts to restrict global cooperation.



His remarks, at the opening of the World Economic Forum’s “Summer Davos” meeting in Dalian, China, came amid rising tensions with the EU over imports of Chinese electric cars.



“The rapid rise of China’s new industries is rooted in our unique comparative advantages,” Li said via an official English translation of his Mandarin-language remarks.



He noted the country’s large market, industrial network, labor force, diverse application scenarios and receptive consumers.



“That is how China’s emerging industries get their competitiveness,” Li said.



Earlier this month, the EU announced plans for tariffs on imports of Chinese electric cars. The U.S. has said it will raise duties on the vehicles to 100%.



China and the EU have reportedly agreed to discuss the potential tariffs.



“In many ways the depth of international cooperation determines the height of human development, so it’s essential that we embrace each other with open arms,” Li said, noting the need to “reject” confrontation.



Andrzej Duda, president of Poland, and Pham Minh Chinh, prime minister of Vietnam, gave remarks after Li.



The Chinese premier held state-level meetings in China with the two leaders ahead of the “Summer Davos.” Li had said in his meeting with Duda that China hoped the EU would view the country’s development objectively and create a fair market, according to state media. Poland is part of the EU.



At the Forum’s annual conference in Davos, Switzerland, in January, Li had said in a speech that technological innovation shouldn’t be used as a way to restrict other countries.



Beijing has repeatedly asked Washington to remove restrictions on Chinese companies that prevent them from buying advanced technology from U.S. firms.



<h2 class="wp-block-heading" id="h-economic-outlook"><a></a>Economic outlook</h2>



Li on Tuesday said China’s economic growth would remain “steady” in the second quarter, and that he was “confident” the country was “capable” of achieving the official growth target of 5% for this year.



China earlier this month reported data for May that showed retail sales grew by 3.7% from a year ago, beating expectations, while figures on industrial activity grew less than forecast. Real estate’s drag on the economy persisted, the data showed, while exports have held up as a supporter of growth.



When asked by World Economic Forum founder Klaus Schwab on stage about China’s economic policy, Li drew analogies from traditional Chinese medicine and boxing for explaining why Beijing was pursuing a more targeted and compilation-of-parts approach.



“In the past years we’ve been taking a lot of measures and done a lot that are aimed at keeping the [economic] roots healthy,” Li said, noting Beijing’s efforts to support technological innovation and businesses.



He said that China was adding support for its aging population and looking to it as a new driver of growth. Li did not elaborate on efforts to boost consumption beyond a previously announced trade-in policy.

107361656-17056708822024-01-16t100740z_243850206_rc2yi5adu5sj_rtrmadp_0_davos-meeting

China’s premier defends national competitiveness as trade tensions simmer

<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="1600" height="900" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/06/107430853-1718793840829-gettyimages-1998366297-20240210_city_thames_sunset_004.jpeg" alt="" class="wp-image-498426" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/06/107430853-1718793840829-gettyimages-1998366297-20240210_city_thames_sunset_004.jpeg 1600w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/107430853-1718793840829-gettyimages-1998366297-20240210_city_thames_sunset_004-300x169.jpeg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/107430853-1718793840829-gettyimages-1998366297-20240210_city_thames_sunset_004-820x461.jpeg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/107430853-1718793840829-gettyimages-1998366297-20240210_city_thames_sunset_004-160x90.jpeg 160w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/107430853-1718793840829-gettyimages-1998366297-20240210_city_thames_sunset_004-768x432.jpeg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/107430853-1718793840829-gettyimages-1998366297-20240210_city_thames_sunset_004-1536x864.jpeg 1536w" sizes="auto, (max-width: 1600px) 100vw, 1600px" /><figcaption class="wp-element-caption">Photo: via CNBC</figcaption></figure>



LONDON — The U.K. had some cause for celebration on Wednesday morning, as headline inflation hit the Bank of England’s 2% target for the first time in nearly three years.



But the print only served to further convince&nbsp;traders that an interest rate cut is not imminent.



Money market pricing by 11 a.m. in London implied just a 5% probability of a reduction of the Bank Rate during Thursday’s BOE meeting — after recording stronger odds&nbsp;earlier in the week. Bets on an August cut were also trimmed to roughly 30%.



While the 2% inflation reading is a significant milestone — not least as British politicians set out their stalls ahead of a general election in just over two weeks — it has been anticipated for some time and was largely driven by the sharp year-on-year decline in energy prices. Fluctuations in the rate over the coming months are expected as the drag from energy fades.



Policymakers are equally focused on services inflation, key to understanding domestic price pressures in the country’s services-oriented economy, which came in at 5.7% — higher than the 5.5% forecast by economists in a Reuters poll.



Core inflation, excluding the volatile components energy, food, alcohol and tobacco, remained well above the central bank’s long-term average at 3.5%.



“We’ve seen some good stuff in terms of seasonality, food prices are coming down as well,” James Sproule, chief economist at Handelsbanken, told CNBC’s “Street Signs Europe” on Wednesday.



“But looking over the rest of the year, even the Bank of England itself is expecting inflation to start to creep up a bit again over the course of the autumn,” he said.



“I think the most disturbing thing lots of economists like myself are looking at right now is what’s happening in services inflation. That’s largely about people’s salaries and earnings. And those numbers have been proving a good deal stickier than we would like,” Sproule said, with the BOE targeting services inflation of around 3%.



Whether the BOE cuts rates in August or September remains a close call, he added.



Average U.K. wage growth excluding bonuses held uncomfortably high for the BOE at 6% in June, though there were signs of a loosening labor market.



At its last meeting in May, the central bank said that recent inflation readings had been “encouraging,” but that the chance of a rate cut would be assessed at each meeting and based on the latest data.



<h2 class="wp-block-heading" id="h-august-in-play"><a></a>August in play?</h2>



Members of the BOE’s Monetary Policy Committee, including Governor Andrew Bailey, will be more tight-lipped than usual on Thursday due to the upcoming national vote. The institution is politically independent and has stressed it would be willing to enact a rate cut if it believed one was required, irrespective of an election.



But both the ruling Conservative Party and its main opposition Labour have centered their platforms on the U.K.’s economic performance, meaning that central bank action — or lack thereof — will be closely watched.



Two members of the MPC voted to cut rates at the May meeting, versus seven who voted to hold.



James Smith, developed markets economist at ING, expects a repeat of&nbsp;that split on Thursday.



“That may be hard to square against the idea that the committee is very close to cutting rates. But the key thing to remember is that the five internal committee members, who hold the key to the first cut, tend to move as a pack,” Smith said in a note on&nbsp;Tuesday, meaning an August rate cut would remain firmly on the table.



A BOE decision to hold rates would come after the European Central Bank began its own path of reductions at its June meeting. Headline inflation in the euro zone came in higher than in the U.K. at 2.6% in May, but the core figure has cooled further.



Economists will be listening out for BOE messaging on liquidity conditions and their impact on the economy, as well as any hints that the Bank’s confidence has been shaken by the latest data, ING’s Smith said.



“But listening to Governor Andrew Bailey back in May, it sounded like he was keen to get on with the job of cutting interest rates. And a bit like the European Central Bank, the BOE seems more confident in its inflation predictions than it had been over the past couple of years,” he added.

107430853-1718793840829-gettyimages-1998366297-20240210_city_thames_sunset_004

Bank of England set to hold interest rates despite inflation hitting 2% target

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="461" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/04/107385958-1710210089452-gettyimages-1868370670-THAILAND_GOLD-820x461.jpeg" alt="" class="wp-image-477062" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/04/107385958-1710210089452-gettyimages-1868370670-THAILAND_GOLD-820x461.jpeg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/04/107385958-1710210089452-gettyimages-1868370670-THAILAND_GOLD-300x169.jpeg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/04/107385958-1710210089452-gettyimages-1868370670-THAILAND_GOLD-160x90.jpeg 160w, https://cms.cnbcafrica.com/wp-content/uploads/2024/04/107385958-1710210089452-gettyimages-1868370670-THAILAND_GOLD-768x432.jpeg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/04/107385958-1710210089452-gettyimages-1868370670-THAILAND_GOLD-1536x864.jpeg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/04/107385958-1710210089452-gettyimages-1868370670-THAILAND_GOLD.jpeg 1920w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">An employee handles one kilogram gold bullions at the YLG Bullion International Co. headquarters in Bangkok, Thailand, on Friday, Dec. 22, 2023. 
Chalinee Thirasupa | Bloomberg | Getty Images</figcaption></figure>



The gold mining industry is struggling to sustain production growth as deposits of the yellow metal become harder to find, according to the World Gold Council.



“We’ve seen record first quarter mine production in 2024 up 4% year on year. But the bigger picture, I think about mine production is that, effectively, it plateaued around 2016, 2018 and we’ve seen no growth since then,” WGC Chief Market Strategist John Reade said.



According to data from the international trade association, mine production inched up only 0.5% in 2023 compared to a year ago.



In 2022, the growth was 1.35% year on year, the year before it was 2.7%, while in 2020, global gold production logged the first decline in a decade, sliding 1%.



“I think the overwhelming story there is: after 10 years of rapid growth from around 2008, the mining industry is struggling to report sustained growth in production,” said Reade.



New gold deposits are becoming harder to find around the world as many prospective areas have already been explored, he elaborated.



Large-scale gold mining is capital-intensive, and requires significant exploration and development, taking an average of 10 to 20 years before a mine is ready for production, according to WGC.



Even during the exploration process, the likelihood of a discovery progressing into the development of a mine is low, with only about 10% of global gold discoveries containing sufficient metal to warrant mining.



Around 187,000 metric tons of gold has been mined to date, with the majority coming from China, South Africa and Australia. Gold reserves that can be excavated are estimated at around 57,000 tonnes, according to the United States Geological Survey.



Aside from the discovery process, government permits getting harder to secure and requiring more time to come through have made mining more difficult, Reade added. Securing licenses and permits needed before mining companies can start operations can take several years.



Additionally, many mining projects are planned for remote areas that require infrastructure such as roads, power, and water, resulting in added costs in building these mines and financing operations, Reade said.



“It’s getting harder to find gold, permit it, finance it, and operate it,” he said.



Gold prices are taking a breather after rallying to record highs in recent months bolstered by strong demand led by China. Spot gold is currently trading at $2,294.3 per ounce.

107385958-1710210089452-gettyimages-1868370670-THAILAND_GOLD

Gold is getting harder to find as miners struggle to excavate more, World Gold Council says

<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="675" height="380" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/05/1675956289-63dd4efae33c4000193ae0c2copy-1.png" alt="" class="wp-image-483480" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/05/1675956289-63dd4efae33c4000193ae0c2copy-1.png 675w, https://cms.cnbcafrica.com/wp-content/uploads/2024/05/1675956289-63dd4efae33c4000193ae0c2copy-1-300x169.png 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/05/1675956289-63dd4efae33c4000193ae0c2copy-1-160x90.png 160w" sizes="auto, (max-width: 675px) 100vw, 675px" /><figcaption class="wp-element-caption">Picture Alliance | Picture Alliance | Getty Images</figcaption></figure>



AI use is fast becoming the norm in the workplace, but some workers are still worried that they’ll receive flak if their colleagues find out.



AI firm Anthropic and work management platform Asana released their new 2024 State of AI at Work report on Wednesday, which surveyed 5,007 knowledge workers in the U.S. and U.K. about their view of AI adoption in the workplace. Knowledge workers can be roughly described as expert white-collar workers who use analytical skills.



It found that over a quarter of workers surveyed were concerned that they’d be perceived as “lazy” if they used AI at work. Another 23% said they were afraid of being labeled “frauds” for using AI at work.



And a third said they’re worried that AI will replace humans altogether.



This is partly because companies are not providing clear guidelines around AI use in the workplace, Rebecca Hinds, head of Asana’s Work Innovation Lab, told CNBC Make It in an interview.



“That’s where we start to see the fear of the perception of laziness, the fear of the perception of feeling like a fraud most significantly, because the organizational context is not conducive to facilitating an environment where people feel empowered to use AI,” Hinds said.



Overall, generative AI adoption in the workplace is up, both in the U.S. and the U.K., according to the survey.



In the U.S., 57% of workers are using generative AI tools weekly, a jump from 46% just nine months ago. In the U.K., 48% of workers are using generative AI tools weekly — compared with 29% nine months ago.



Around 60% of workers across the U.S. and U.K. expect to use generative AI even more in the coming six months.



The high adoption rate is largely because workers are seeing improved productivity with 69% reporting higher productivity gains as a result.



There’s growing enthusiasm among workers to incorporate AI in their work, but they don’t feel particularly supported by their companies.



An overwhelming 82% of workers say their organization hasn’t provided any training for employees on using generative AI. That lack of communication could be driving workers’ worries about whether it’s acceptable for them to use AI at work.



In addition to incorporating policies around AI, companies also need to explain how AI will change workers’ roles, according to Hinds.



“Companies are not looking closely enough at the importance of principles as well, so not just what are you allowed to do with the technology but also, what’s the technology fundamentally aimed at doing, and what is the value of the technology for our specific work?” she said.



“How do we envision our new role as a human alongside this new transformative technology? That gives employees confidence.”



Meanwhile, there’s also a gap between executives and individual workers on perceptions of AI use.



Nearly a quarter of executives said their company has a designated budget for investing in generative AI tools for employees, according to the survey, but only 9% of workers said the same.



Additionally over two-thirds of executives feel enthusiastic about AI use in the workplace but only half of workers say the same — with concerns about being replaced driving these apprehensions.



Hinds explained that these fears are most present in companies in the early stages of incorporating AI.



“The stage four, and stage five companies that have started to implement guidelines have started to position AI as a teammate, not a tool. That’s when we see that the perceived threats really lessen in any organization,” she added.



Ultimately when companies provide more resources and training, workers can use AI in a more “psychologically safe” environment, according to Hinds.

1675956289-63dd4efae33c4000193ae0c2copy-1

Some workers using AI are worried that colleagues will see them as ‘lazy’ and ‘frauds,’ survey finds

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="461" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/06/107402021-1713288153679-gettyimages-648951146-dsc_7546-820x461.jpeg" alt="" class="wp-image-494337" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/06/107402021-1713288153679-gettyimages-648951146-dsc_7546-820x461.jpeg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/107402021-1713288153679-gettyimages-648951146-dsc_7546-300x169.jpeg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/107402021-1713288153679-gettyimages-648951146-dsc_7546-160x90.jpeg 160w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/107402021-1713288153679-gettyimages-648951146-dsc_7546-768x432.jpeg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/107402021-1713288153679-gettyimages-648951146-dsc_7546-1536x864.jpeg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/107402021-1713288153679-gettyimages-648951146-dsc_7546.jpeg 1600w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">Photo: via CNBC</figcaption></figure>



Median CEO pay hit $16.3 million in 2023, or nearly 200 times the typical worker’s wages for the year, according to data analyzed for The Associated Press by Equilar.



Typical compensation packages for chief executives who run companies in the S&amp;P 500 rose nearly 13% last year, the AP reports. And roughly two dozen chief executives in the survey saw a pay bump of 50% or more.



Workers, on the other hand, saw wages rise by 5.2% in the last year, just above the rate of inflation, with some of the biggest gains going toward the lowest-paid workers. The median S&amp;P 500 employee earned $81,467 in 2023.



<h2 class="wp-block-heading" id="h-a-widening-ceo-to-worker-pay-gap">A widening CEO-to-worker pay gap</h2>



The CEO-to-worker pay gap grew in the last year as company boards scrambled to keep executives from quitting and businesses fared well in the stock market. In 2022, CEOs made roughly 185 times their typical worker; with the jump in 2023 numbers, CEOs now make roughly 196 times their employees.



The disparity is largely driven by the fact that many top executives are paid based on how well their company performs, and stock awards make up roughly 70% of their total compensation packages.



CEO pay is generally decided on by shareholders, who in the last four years have overwhelmingly voted in support of executive compensation plans, according to Equilar data.



Top bosses haven’t always made so much more than their workforce.



CEO pay has increased by 1,209% since 1978, compared with an 15% bump for the typical worker over this time period, according to the left-leaning Economic Policy Institute.



Typical worker wages have not increased as fast as CEO pay for a number of reasons, says Lawrence Mishel, a distinguished fellow at the EPI: high unemployment, globalization, the erosion of unions, low labor standards, the increase in noncompete clauses and domestic outsourcing, like shifting to a workforce of freelancers. Notably, the Federal Trade Commission recently voted to ban noncompete clauses, which impacts some 30 million American workers, though the move is facing legal action from business groups.



Whether CEOs are overpaid is “really up to shareholders to decide,” says Amit Batish, the senior director of content and communications at Equilar.



“One may argue that paying a CEO adequately is critical to the success of an organization, ensuring long-term stability and growth, particularly during economic downturns,” Batish tells CNBC Make It. If certain performance goals, especially financial growth, aren’t met, shareholders might express their dissatisfaction by cutting compensation.



As it stands now, Batish expects CEO pay to continue to outpace growth in median worker pay but notes that CEO stock compensation isn’t a guarantee — CEOs may not be able to cash in on their stock awards for years, if at all, unless they meet certain targets in their stock value or operating profits. Meanwhile, median employee pay is in cash salaries and bonuses, “making the comparison difficult at times.”



That being said, “the value of stock awards can also appreciate over time, bringing even more value to executives, while the value of cash for employees contends with inflation,” Batish says.



This widening gap could be a reason why Americans are dissatisfied with the economy, says Sarah Anderson, who directs the Global Economy Project at the progressive Institute for Policy Studies.



“Most of the focus here is on inflation, which people are really feeling, but they’re feeling the pain of inflation more because they’re not seeing their wages go up enough,” Anderson told the AP.



<h2 class="wp-block-heading" id="h-the-highest-paid-ceos"><a></a>The highest-paid CEOs</h2>



The highest-paid CEOs are concentrated in the communication services industry, the consumer defensive industry and health care. The CEO-to-worker pay gap is highest for retailers and other businesses where employees earn lower hourly wages.



The top-paid CEOs in the S&amp;P 500, according to the AP survey, include Hock Tan of Broadcom Inc., with a compensation package valued close to $162 million; William Lansing of Fair Isaac Corp, or FICO ($66.3 million); Tim Cook of Apple Inc. ($63.2 million); Hamid Moghadam of Prologis Inc. ($50.9 million); and Ted Sarandos, co-CEO of Netflix ($49.8 million).



Of the 341 CEOs included in the data, 25 are women. The highest-paid female CEOs include Lisa Su of Advanced Micro Devices ($30.3 million); Mary Barra of General Motors ($27.8 million); and Jane Fraser of Citigroup ($25.5 million).

107402021-1713288153679-gettyimages-648951146-dsc_7546

The typical CEO makes nearly 200 times more than their workers

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="462" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/05/107420495-1716891456938-gettyimages-2151869385-ef_11330_laasronv-820x462.jpeg" alt="" class="wp-image-491637" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/05/107420495-1716891456938-gettyimages-2151869385-ef_11330_laasronv-820x462.jpeg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/05/107420495-1716891456938-gettyimages-2151869385-ef_11330_laasronv-300x169.jpeg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/05/107420495-1716891456938-gettyimages-2151869385-ef_11330_laasronv-160x90.jpeg 160w, https://cms.cnbcafrica.com/wp-content/uploads/2024/05/107420495-1716891456938-gettyimages-2151869385-ef_11330_laasronv-768x432.jpeg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/05/107420495-1716891456938-gettyimages-2151869385-ef_11330_laasronv.jpeg 929w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">Labour’s Shadow Chancellor of the Exchequer Rachel Reeves gives a speech on the British economy ahead of the Bank of England monetary policy release on May 07, 2024 in London, England. Dan Kitwood | Getty Images News | Getty Images</figcaption></figure>



LONDON — More than 100 business leaders on Tuesday voiced their support for the U.K.’s center-left opposition Labour Party, nearly five weeks before the country heads to the polls.



The group, which includes Wikipedia founder Jimmy Wales and former vice-chairman of JP Morgan Cazenove Charles Harman, said in an open letter to The Times newspaper: “We, as leaders and investors in British business, believe it is time for a change.”



The writers of the letter claim that the U.K. economy has suffered from a decade of stagnation amid a lack of both political stability and a long-term, consistent economic strategy. The country has been “denied the skills and infrastructure it needs to flourish,” the letter says.



The Labour Party has “shown it has changed and wants to work with business to achieve the UK’s full economic potential,” they said.



Signatories also include WPP’s U.K. President Karen Blackett, JD Sports and British Retail Consortium Chair Andrew Higginson, and the former CEOs of Tesco Bank and Heathrow Airport. Few current FTSE 250 chief executives appear on the list.



The right-wing Conservative Party has been in power since 2010, initially as part of a coalition with the smaller, centrist Liberal Democrat Party. The U.K. has had five prime ministers during that period.



The last U.K. general election was held in 2019 and resulted in a decisive victory for the Conservatives under former U.K. Prime Minister Boris Johnson, who resigned in 2022 following a series of controversies.



Political polls for the last two years have pointed to a likely Labour victory, despite the major turnover in the national vote that will be required.



Incumbent Prime Minister Rishi Sunak last week called a surprise election for July 4. In his speech and in comments to media, Sunak said his government had overseen a fall in inflation and a return to economic growth.



The U.K. economy expanded by 0.6% in the first quarter, after falling into a shallow recession last year.



Labour has placed a major focus on committing to fiscal discipline in the party’s campaign messaging. In a release Tuesday, Labour said its pledges include establishing a new publicly owned energy company and bringing train operators under public ownership.



Labour’s shadow finance minister and former banker Rachel Reeves, has meanwhile made a long-running effort to woo business and finance executives.



In a speech on Tuesday, Reeves said the Labour Party would cap corporation tax at its current level, work with the private sector to drive U.K. investment and publish a business tax roadmap within six months of taking power, the BBC reported.



Delivering his own speech on the campaign trail, Sunak said that Labour would not bring financial security to people, according to the BBC.



CNBC has contacted the Conservative Party for comment.

107420495-1716891456938-gettyimages-2151869385-ef_11330_laasronv

More than 100 business leaders including Wikipedia’s Jimmy Wales sign open letter backing Britain’s center-left opposition

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="462" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/05/107068685-gettyimages-1371981344-_sol2164e-820x462.jpeg" alt="" class="wp-image-489283" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/05/107068685-gettyimages-1371981344-_sol2164e-820x462.jpeg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/05/107068685-gettyimages-1371981344-_sol2164e-300x169.jpeg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/05/107068685-gettyimages-1371981344-_sol2164e-160x90.jpeg 160w, https://cms.cnbcafrica.com/wp-content/uploads/2024/05/107068685-gettyimages-1371981344-_sol2164e-768x432.jpeg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/05/107068685-gettyimages-1371981344-_sol2164e.jpeg 929w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">The war between Russia and Ukraine — both major producers of food commodities and energy — has disrupted global production, trade and supply in these areas, leading to a surge in prices. Solstock | E+ | Getty Images</figcaption></figure>



U.K. inflation came in hotter than expected with a drop to 2.3% in April, the Office for National Statistics said Wednesday, prompting traders to pull back from bets on a June interest rate cut from the British central bank.



The headline reading declined from 3.2% in March. The April print marked the first time inflation has been below 3% since July 2021 and came within touching distance of the Bank of England’s 2% target.



Economists polled by Reuters had nevertheless expected a steeper drop to 2.1% in April.



Services inflation — a key measure being watched by the BOE because of the dominance of the sector in the U.K. economy and its impact on domestically-generated price rises — eased only slightly to 5.9% from 6%. That missed a forecast of 5.5% from both a Reuters poll and the British central bank.



Core inflation, excluding energy, food, alcohol and tobacco, dipped to 3.9% in April from 4.2% in March.



A dramatic drop in the headline rate was widely expected because of the year-on-year decline in energy prices. Investors were instead set to focus on core and services inflation, after BOE policymakers indicated they would be willing to cut interest rates some time in the summer, but stressed that the timing would depend on fresh data.



Following the print, money markets slashed the probability of a June rate cut to just 15%, down from 50% earlier in the day.



<h2 class="wp-block-heading" id="h-june-cut-unlikely"><a></a>June cut ‘unlikely’</h2>



Both core and services were “disappointing,” said Suren Thiru, economics director of the Institute of Chartered Accountants in England and Wales.



“Lingering concerns over underlying inflationary pressures mean a June rate cut is unlikely. However, these figures may convince more rate setters to vote to ease policy, providing a signal that a summer rate cut is still possible,” Thiru said in a note.



That positions the European Central Bank as the next major central bank likely to start bringing down rates, as its policymakers continue to suggest it would take a major shock to prevent a June cut. Members of the U.S. Federal Reserve have meanwhile struck a significantly more hawkish tone in recent weeks, pushing back market expectations for a cut statesside until after September at the earliest.



Paul Dales, chief U.K. economist at Capital Economics, said the latest inflation data has made a June rate cut from the Bank of England unlikely, and “casts some doubt over August too.”



That is particularly due to the high services figure, Dales said in a note, which “suggests the persistence in domestic inflation is fading even slower than the BOE had assumed.”



U.K. Prime Minister Rishi Sunak said on social platform X that “inflation is back to where it should be.”



Sunak’s ruling Conservative Party has been hoping for signs of an improving economic environment, as it lags in the polls ahead of a national election that must take place before the end of January 2025. The U.K. economy exited a shallow recession in the first quarter of the year, recording 0.6% growth.



BOE Governor Andrew Bailey has stressed that the central bank will remain politically independent in deciding the timeline of the next rate cut, irrespective of the forthcoming election.

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UK inflation comes in hotter than expected, slashing June rate cut bets

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="615" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/05/Feds-Waller-sees-some-progress-on-inflation-no-rate-hike-needed-820x615.jpg" alt="" class="wp-image-489053" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/05/Feds-Waller-sees-some-progress-on-inflation-no-rate-hike-needed-820x615.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/05/Feds-Waller-sees-some-progress-on-inflation-no-rate-hike-needed-300x225.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/05/Feds-Waller-sees-some-progress-on-inflation-no-rate-hike-needed-120x90.jpg 120w, https://cms.cnbcafrica.com/wp-content/uploads/2024/05/Feds-Waller-sees-some-progress-on-inflation-no-rate-hike-needed-768x576.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/05/Feds-Waller-sees-some-progress-on-inflation-no-rate-hike-needed-1536x1152.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/05/Feds-Waller-sees-some-progress-on-inflation-no-rate-hike-needed-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">FILE PHOTO: Federal Reserve Governor Christopher Waller poses before a speech at the San Francisco Fed, in San Francisco, California, U.S., March 31, 2023. REUTERS/Ann Saphir/File Photo</figcaption></figure>



WASHINGTON, May 21 (Reuters)&nbsp;&#8211;&nbsp;Federal Reserve Governor Christopher Waller on Tuesday put a pin in speculation that interest rates may need to rise again, saying the latest inflation data is &#8220;reassuring&#8221; and the U.S. central bank&#8217;s policy rate is set appropriately.



After three months of stronger-than-expected price pressures that raised concerns progress had stalled, &#8220;more recent data on the economy indicate that restrictive monetary policy is helping to cool off aggregate demand and the inflation data for April suggests that progress toward 2% has likely resumed,&#8221; Waller said in remarks prepared for delivery to the Peterson Institute for International Economics. &#8220;Central bankers should never say never, but the data suggests that inflation isn&#8217;t accelerating, and I believe that further increases in the policy rate are probably unnecessary.&#8221;



Fed policymakers have turned cautious on the outlook for inflation and monetary policy in recent months, and Waller, like many of his colleagues, did not repeat his view from recent speeches that a rate cut is likely later this year.



The labor market remains strong, he said, and while consumer price inflation slowed in April after the first three months of the year, the progress was &#8220;modest,&#8221; with core inflation as measured by the personal consumption expenditures price index likely running at an annualized 3.4% in the recent three months.



But he also said he sees some signs of moderation ahead, citing flat retail sales in April, rising delinquencies on credit cards and auto loans, and a widely followed survey of non-manufacturing businesses suggesting a deceleration in activity.&nbsp;<a href="https://www.reutersconnect.com/all?search=all%3AL1N3H5367&amp;linkedFromStory=true" target="_blank" rel="noreferrer noopener">Job creation</a>&nbsp;also has slowed, and the unemployment rate ticked up to 3.9% in April.



&#8220;The economy now seems to be evolving closer to what the Committee expected,&#8221; Waller said, referring to the central bank&#8217;s policy-setting Federal Open Market Committee. &#8220;Nevertheless, in the absence of a significant weakening in the labor market, I need to see several more months of good inflation data before I would be comfortable supporting an easing in the stance of monetary policy.&#8221;



The Fed has kept its benchmark policy rate in the 5.25%-5.50% range since last July.



Traders expect the central bank to deliver a first rate cut in September, and see better-than-even odds of a second cut at the Fed&#8217;s final meeting of the year in December.



(Reporting by Pete Schroeder, Ann Saphir, Lindsay Dunsmuir; Editing by Paul Simao)

FILE PHOTO: Federal Reserve Governor Christopher Waller poses before a speech at the San Francisco Fed

Fed’s Waller sees some progress on inflation, no rate hike needed

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="462" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/05/A-Singapore-Airlines-Boeing-777-300ER-passenger-aircraft-pictured-above-London-in-August-2022-820x462.jpg" alt="" class="wp-image-489003" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/05/A-Singapore-Airlines-Boeing-777-300ER-passenger-aircraft-pictured-above-London-in-August-2022-820x462.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/05/A-Singapore-Airlines-Boeing-777-300ER-passenger-aircraft-pictured-above-London-in-August-2022-300x169.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/05/A-Singapore-Airlines-Boeing-777-300ER-passenger-aircraft-pictured-above-London-in-August-2022-160x90.jpg 160w, https://cms.cnbcafrica.com/wp-content/uploads/2024/05/A-Singapore-Airlines-Boeing-777-300ER-passenger-aircraft-pictured-above-London-in-August-2022-768x432.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/05/A-Singapore-Airlines-Boeing-777-300ER-passenger-aircraft-pictured-above-London-in-August-2022.jpg 929w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">A Singapore Airlines Boeing 777-300ER passenger aircraft, pictured above London in August 2022. Nurphoto | Nurphoto | Getty Images</figcaption></figure>



One person died aboard a Singapore Airlines flight which encountered severe turbulence and diverted to Bangkok, the airline said Tuesday.



The flight had left London for Singapore. The aircraft was rerouted to land at the Suvarnabhumi Airport in Bangkok, according to Flightradar24 data.



“We can confirm that there are injuries and one fatality on board the Boeing 777-300ER. There were a total of 211 passengers and 18 crew on board,” the company said on the Facebook.



“Singapore Airlines flight&nbsp;#SQ321, operating from London (Heathrow) to Singapore on 20 May 2024, encountered severe turbulence en-route. The aircraft diverted to Bangkok and landed at 1545hrs local time on 21 May 2024,” it added.



This is a breaking news story, please check back for updates.

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More than 100 business leaders including Wikipedia’s Jimmy Wales sign open letter backing Britain’s center-left opposition

UK inflation comes in hotter than expected, slashing June rate cut bets

Fed’s Waller sees some progress on inflation, no rate hike needed

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News Tips

Advertise With Us

International

Labour Party wins UK election in a landslide

No God, no big ads and no age debate: The UK election race is very different to America’s

China faces economic headwinds as it grapples with an aging — and shrinking — population

Trafigura and Promarks sign preliminary agreement on Angola power project

Landmark UK election kicks off as center-left Labour seeks return to power after 14 years

India in talks with Africa, Latin America countries for critical mineral blocks, official says

India’s JPMorgan bond index entry to suck $11 billion from S.Africa, Poland and Thailand

US dollar’s dominance secure, BRICS see no progress on de-dollarization -report

China’s premier defends national competitiveness as trade tensions simmer

Bank of England set to hold interest rates despite inflation hitting 2% target

Gold is getting harder to find as miners struggle to excavate more, World Gold Council says

Some workers using AI are worried that colleagues will see them as ‘lazy’ and ‘frauds,’ survey finds

The typical CEO makes nearly 200 times more than their workers

More than 100 business leaders including Wikipedia’s Jimmy Wales sign open letter backing Britain’s center-left opposition

UK inflation comes in hotter than expected, slashing June rate cut bets

Fed’s Waller sees some progress on inflation, no rate hike needed

One dead as Singapore Airlines flight encounters ‘severe turbulence’

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