<a href="https://www.cnbc.com/2024/07/16/trump-iran-kill-plot-secret-service.html">Iran</a>&nbsp;on Tuesday launched a ballistic missile attack on&nbsp;<a href="https://www.cnbc.com/2024/09/24/we-have-much-more-on-the-way-if-they-will-continue-israels-president-warns-hezbollah.html">Israel</a>&nbsp;in retaliation for its recent killing of&nbsp;<a href="https://www.cnbc.com/2024/09/29/israel-pounds-lebanon-pressuring-hezbollah-after-killing-its-leader.html">Hezbollah</a>&nbsp;leader&nbsp;<a href="https://www.cnbc.com/2024/09/28/hezbollah-leader-hassan-nasrallah-killed-in-strike-israeli-army-says.html">Hassan Nasrallah</a>&nbsp;and an Iranian commander in&nbsp;<a href="https://www.cnbc.com/2024/10/01/israeli-forces-launch-ground-offensive-in-lebanon-as-markets-eye-escalation-.html">Lebanon</a>.



The attack came on the heels of&nbsp;<a href="https://www.cnbc.com/2024/09/30/israeli-military-says-limited-operation-against-hezbollah-targets-in-southern-lebanon-has-begun.html">Israel</a>’s deployment of ground forces into south Lebanon, escalating its offensive on Hezbollah, a militant group backed by Iran.



“In response to the martyrdom of Martyr Haniyeh, Seyyed Hassan Nasrallah, and Martyr Nilforoushan, we have targeted the heart of the occupied territories,” the&nbsp;<a href="https://www.cfr.org/backgrounder/irans-revolutionary-guards" target="_blank" rel="noreferrer noopener">Islamic Revolutionary Guard Corps</a>&nbsp;said in a statement after missiles began appearing in the skies over Israel.



“Should the Zionist regime respond to Iran’s operation, it will face crushing attack,” said the IRGC, Iran’s paramilitary organization.



Abbas Nilforoushan was an Iranian Revolutionary Guards deputy commander, who was killed with Nasrallah in a bombing by Israel last Friday in Beirut, Lebanon.



<a href="https://www.cnbc.com/2024/07/31/iran-says-hamas-leader-ismail-haniyeh-was-assassinated-in-tehran.html">Ismail Haniyeh</a>&nbsp;was the political commander of the&nbsp;<a href="https://www.cnbc.com/2024/08/07/hamas-new-political-leader-yahya-sinwar-is-seen-as-more-extreme.html">Hamas</a>&nbsp;terror group, who was killed in July by an Israeli strike on Tehran, the capital of Iran. Israel has been engaged in a brutal war on Hamas since the group launched the Oct. 7 terror attack on Israel from Gaza.



There were only two people reported lightly injured from shrapnel from the missile attack in the Tel Aviv area, according to Israeli authorities. There were also some minor injuries reported across Israel involving people moving to safe spaces.



The Israel Defense Forces announced that citizens were allowed to leave protected spaces across the country just after 1:30 p.m. ET.



A White House official on Tuesday warned that any direct attack on Israel by Iran “will carry severe consequences for Iran.”



“We are actively supporting defensive preparations to defend Israel against this attack,” the official said.



That official and a Defense Department official said that Iran was expected to target military and government sites, not civilian locations.



Sirens wailed around Israel during Tuesday’s attack.



President&nbsp;<a href="https://www.cnbc.com/joe-biden/">Joe Biden</a>&nbsp;met Tuesday afternoon with Vice President&nbsp;<a href="https://www.cnbc.com/kamala-harris/">Kamala Harris</a>&nbsp;and national security officials to discuss the attack, the White House said.



“They reviewed the status of U.S. preparations to help Israel defend against attacks and protect U.S. personnel,” White House senior deputy press secretary Emilie Simons said in a post on the social media site X.



<a href="https://il.usembassy.gov/security-alert-u-s-embassy-jerusalem-26/" target="_blank" rel="noreferrer noopener">The U.S. Embassy in Jerusalem</a>&nbsp;directed all U.S. government employees and their families in Israel to “shelter in place until further notice.”



The embassy in the same notice said it “reminds U.S. citizens of the continued need for caution and increased personal security awareness as security incidents, including mortar and rocket fire and unmanned aircraft system UAS intrusions, often take place without warning.”



“The security environment remains complex and can change quickly depending on the political situation and recent events,” the notice said.



Iran’s suspected planned attack came a day after Israeli ground forces crossed into south&nbsp;<a href="https://www.cnbc.com/2024/10/01/israeli-forces-launch-ground-offensive-in-lebanon-as-markets-eye-escalation-.html">Lebanon</a>&nbsp;as part of an attack on Hezbollah.



The number of Israeli troops who have entered Lebanon is in “the low hundreds,” an Israeli official told NBC News.



Iran Foreign Minister Abbas Araghchi has said the killing of Nasrallah and a senior Revolutionary Guards commander in that attack “will not go unanswered.” Araghchi said the United States was “complicit in this crime.”



The&nbsp;<a href="https://www.cnbc.com/quotes/.DJI/">Dow Jones Industrial Average</a>&nbsp;fell more than 250 points by 10 a.m. ET, spurred by a surge in the cost of&nbsp;<a href="https://www.cnbc.com/2024/10/01/crude-oil-prices-today.html">West Texas Intermediate crude oil</a>, on fears of heightened tensions in the petroleum-rich Middle East.



The WTI November contract was up nearly 3% by midmorning, hovering shy of $70 a barrel.



In April, Iran launched an attack on Israel that included more than 300 drones and ballistic missiles after two top Iranian commanders were killed by an Israeli airstrike in Syria.



Most of the missiles and drones were shot down by the Israeli and U.S. militaries.

108041641-1727803778574-gettyimages-2175285671-AFP_36HV2BQ

Iran launches missile attack on Israel for killing of Hezbollah leader, general

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="519" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/10/SDJY6Y7BEFPCJLFSC2IBAROQ24-820x519.jpg" alt="" class="wp-image-537208" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/10/SDJY6Y7BEFPCJLFSC2IBAROQ24-820x519.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/SDJY6Y7BEFPCJLFSC2IBAROQ24-300x190.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/SDJY6Y7BEFPCJLFSC2IBAROQ24-142x90.jpg 142w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/SDJY6Y7BEFPCJLFSC2IBAROQ24-768x486.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/SDJY6Y7BEFPCJLFSC2IBAROQ24-1536x971.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/SDJY6Y7BEFPCJLFSC2IBAROQ24-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">FILE PHOTO: Kenya&#8217;s incoming deputy President Rigathi Gachagua waves to supporters as he arrives for his swearing-in ceremony in Nairobi, Kenya September 13, 2022. REUTERS/Monicah Mwangi/File Photo</figcaption></figure>



NAIROBI, Oct 1 (Reuters)&nbsp;&#8211;&nbsp;Kenya&#8217;sparliament on&nbsp;Tuesday tabled a motion to impeach Deputy President Rigathi Gachagua for gross violation of the constitution, the&nbsp;speaker said,&nbsp;as local media reported that he had fallen out with President William Ruto.



Over one third of lawmakers signed a motion presented by Mwengi Mutuse, an MP allied with Ruto&#8217;s coalition, that accuses Gachagua of, among other things, denying people &#8220;equal opportunities for public service appointments and allocation of public resources,&#8221; according to the document.



A rift between Ruto and Gachagua has spilt into the open in recent days, with Gachagua saying he has been sidelined while denying accusations linking him and associates to violent protests earlier in the year, in which demonstrators overran parliament.



The director of communications at Gachagua&#8217;s office did not immediately respond to Reuters&#8217; request for comment.



&#8220;A special motion before the House presents an unprecedented constitutional moment in our democracy,&#8221; said parliamentary speaker Moses Wetang&#8217;ula.



&#8220;Without doubt, it summons this house to test for the first time, under the 2010 constitution, the provisions of our constitution relating to the removal from office by impeachment of the deputy president.&#8221;



(Reporting by Hereward Holland; Editing by Bate Felix and Sharon Singleton)

FILE PHOTO: Kenya’s in-coming deputy President Rigathi Gachagua waves to supporters as he arrives for his swearing-in ceremony in Nairobi

Kenya’s parliament tables motion to impeach deputy president, speaker 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/2024/09/TE3RFSDQENJTFFYC6SW6PIPCBE-820x547.jpg" alt="" class="wp-image-529685" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/09/TE3RFSDQENJTFFYC6SW6PIPCBE-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/TE3RFSDQENJTFFYC6SW6PIPCBE-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/TE3RFSDQENJTFFYC6SW6PIPCBE-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/TE3RFSDQENJTFFYC6SW6PIPCBE-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/TE3RFSDQENJTFFYC6SW6PIPCBE-1536x1024.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/TE3RFSDQENJTFFYC6SW6PIPCBE-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">FILE PHOTO: The International Monetary Fund (IMF) headquarters building is seen ahead of the IMF/World Bank spring meetings in Washington, U.S., April 8, 2019. REUTERS/Yuri Gripas/File Photo</figcaption></figure>



NAIROBI, Oct 1 (Reuters)&nbsp;&#8211;&nbsp;Major shareholders at the International Monetary Fund are urging Kenya to request an IMF assessment of corruption and governance issues as part of a push to unlock lending that has been stalled by the shelving of tax hikes, two diplomatic sources said.



Disbursement of around $600 million under an IMF plan that expires next year has been held up since the Kenyan government in June withdrew $2.7 billion in tax increases in response to mass protests.



The demonstrations, in which more than 50 people were killed, brought to the fore issues of corruption and misgovernance, with young protesters complaining that their taxes were being used to fund politicans&#8217; lavish lifestyles.



Western governments have been encouraging a governance diagnostic, or IMF assessment, of corruption and governance vulnerabilities, said the two sources. They spoke on condition of anonymity to discuss private conversations.



A governance diagnostic must be requested by the country in question. One source said such a request would facilitate discussions about further IMF support.



Kenya&#8217;s finance ministry did not respond to requests for comment. Spokespeople at the Washington-based IMF did not immediately respond to a request for comment.



The IMF has published governance diagnostic reports on 14 countries since 2014, including Ukraine, Cameroon and Sri Lanka, and additional diagnostics are underway, according to the Fund&#8217;s website.



Kenyan authorities are looking for fresh revenue-raising measures after rescinding the tax increases.



Finance Minister John Mbadi said in August that the government would have to restore some measures from the scrapped bill. However, last month Mbadi said he would seek suggestions from the public on new legislation to boost revenue.



Diplomatic sources say the government will need to present a credible plan to narrow its fiscal deficit before the IMF will consider new disbursements.



(Reporting by Aaron Ross; Additional reporting by Karin Strohecker in London; Editing by Gareth Jones)

FILE PHOTO: The International Monetary Fund (IMF) headquarters building is seen ahead of the IMF/World Bank spring meetings in Washington

Western nations urge Kenya to seek IMF review of corruption issues, sources say

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="571" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/10/YHI73VDPHRLJBFOJQ5AW7JVA5U-820x571.jpg" alt="" class="wp-image-537121" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/10/YHI73VDPHRLJBFOJQ5AW7JVA5U-820x571.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/YHI73VDPHRLJBFOJQ5AW7JVA5U-300x209.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/YHI73VDPHRLJBFOJQ5AW7JVA5U-129x90.jpg 129w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/YHI73VDPHRLJBFOJQ5AW7JVA5U-768x535.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/YHI73VDPHRLJBFOJQ5AW7JVA5U-1536x1070.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/YHI73VDPHRLJBFOJQ5AW7JVA5U-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">FILE PHOTO: A view shows an enrichment shop at a processing plant of fertilizer producer EuroChem VolgaKaliy developing the Gremyachinskoe potash deposit in Volgograd region, Russia September 3, 2024. REUTERS/Kirill Braga/File photo</figcaption></figure>



JOHANNESBURG, Oct 1 (Reuters)&nbsp;&#8211;&nbsp;South African manufacturing activity increased in September, recovering from the previous month&#8217;s slump as demand rose and an interest rate cut boosted sentiment, the Absa-sponsored purchasing managers&#8217; index survey showed on Tuesday.



Absa&#8217;s seasonally adjusted PMI for the factory sector rose to 52.8 points in September from 43.6 in August, above the 50-point mark that shows growth.



&#8220;Both domestic and export demand showed signs of improvement&#8230; On the local consumer front, the recent interest rate cut adds to the expectation of a possible more positive demand story going forward,&#8221; local bank Absa, which sponsors the survey, said in a statement.



&#8220;The positive PMI results suggest that the manufacturing sector is stabilising after a turbulent period, although challenges remain, particularly in employment,&#8221; Absa said in a statement.



The 9.2-point jump in the index in September more than made up for the 8.8-point drop in August.



(Reporting by Tannur Anders; Editing by Bhargav Acharya and Hugh Lawson)

EuroChem VolgaKaliy plant in Volgograd region

Absa PMI shows South African factory activity grew in September

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/10/MJMRAJTMFBIZJOSATPFJNDJSTQ-820x547.jpg" alt="" class="wp-image-537074" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/10/MJMRAJTMFBIZJOSATPFJNDJSTQ-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/MJMRAJTMFBIZJOSATPFJNDJSTQ-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/MJMRAJTMFBIZJOSATPFJNDJSTQ-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/MJMRAJTMFBIZJOSATPFJNDJSTQ-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/MJMRAJTMFBIZJOSATPFJNDJSTQ-1536x1024.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/MJMRAJTMFBIZJOSATPFJNDJSTQ-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">FILE PHOTO: Souvenir luggage tags are displayed at a Barrick Gold Corp at the Prospectors and Developers Association of Canada (PDAC) annual conference in Toronto, Ontario, Canada March 1, 2020. REUTERS/Chris Helgren</figcaption></figure>



Sept 30 (Reuters) &#8211; Barrick Gold Corp and the Mali government have decided to find a resolution to existing claims and disputes over the Loulo and Gounkoto gold mines in the West African country, the company said on Monday.



The statement from the world&#8217;s second largest miner comes two days after the Malian government arrested four Barrick employees. The two parties have been negotiating a new mining contract that proposes to give Mali&#8217;s military-led authorities greater control over its resources. Mali is one of Africa&#8217;s biggest gold producers.



Barrick said the details&nbsp;of the agreement&nbsp;will be made public once terms of the settlement have been&nbsp;finalized.



Shares of Barrick were trading down by 2% on the Toronto Stock Exchange at 2:16 p.m ET (1816 GMT).



“The current negotiations have proved challenging but we’re encouraged by the government’s recognition of the importance of securing the long-term viability of the Loulo-Gounkoto complex as a substantial contributor to the Malian economy,&#8221; Barrick&#8217;s CEO, Mark Bristow, said in a statement.



The Mali government was not immediately available for comment.



In July Barrick said it had invested over $10 billion in the Malian economy over the past 29 years.



(Reporting by Felix Njini and Felix Bate; writing by Divya Rajagopal; editing by Jonathan Oatis and Leslie Adler)

Souvenir luggage tags are displayed at a Barrick Gold Corp at the PDAC annual conference in Toronto

Barrick Gold and Mali government to find resolution for Loulo and Gounkoto gold mines

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="461" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/10/108041186-1727745894541-gettyimages-2175709455-port532972_nnwur8co-820x461.jpeg" alt="" class="wp-image-537041" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/10/108041186-1727745894541-gettyimages-2175709455-port532972_nnwur8co-820x461.jpeg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/108041186-1727745894541-gettyimages-2175709455-port532972_nnwur8co-300x169.jpeg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/108041186-1727745894541-gettyimages-2175709455-port532972_nnwur8co-160x90.jpeg 160w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/108041186-1727745894541-gettyimages-2175709455-port532972_nnwur8co-768x432.jpeg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/108041186-1727745894541-gettyimages-2175709455-port532972_nnwur8co-1536x864.jpeg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/108041186-1727745894541-gettyimages-2175709455-port532972_nnwur8co.jpeg 1858w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">Shipping containers sit stacked in the Port of Newark on September 30, 2024 seen from New York City. A massive strike shutting down ports across the East and Gulf coasts began at midnight as members of the International Longshoremen’s Association continue to make salary and other demands to the United States Maritime Alliance, which controls many of the ports across the country.  Spencer Platt | Getty Images News | Getty Images</figcaption></figure>



Billions in trade came to a screeching halt at U.S. East Coast and Gulf Coast ports after members of the International Longshoremen’s Association (ILA) began walking off the job after 12:01 a.m. ET on October 1. The ILA is North America’s largest longshoremen’s union, with roughly 50,000 of its 85,000 members making good on the threat to strike at 14 major ports subject to a just-expired master contract with the United States Maritime Alliance (USMX), and picketing workers beginning to appear at ports. The union and port ownership group failed to reach agreement by midnight on a new contract in a protracted battle over wage increases and use of automation.



In a last-ditch effort on Monday to avert a strike that will cause significant harm to the U.S. economy if it is lengthy — at least hundreds of millions of dollars a day at the largest ports like New York/New Jersey — the USMX offered a nearly 50% wage hike over six years, but that was rejected by the ILA, according to a source close to the negotiations. The port ownership group said it hoped the offer would lead to a resumption of collective bargaining.



The 14 ports where preparations for a strike have been underway are Boston, New York/New Jersey, Philadelphia, Wilmington, North Carolina, Baltimore, Norfolk, Charleston, Savannah, Jacksonville, Tampa, Miami, New Orleans, Mobile, and Houston.



New York Governor Kathy Hochul said in a statement issued shortly after midnight that “the first large-scale eastern dockworker strike in 47 years began at ports from Maine to Texas, including at the Port Authority of New York and New Jersey. In preparation for this moment, New York has been working around the clock to ensure that our grocery stores and medical facilities have the essential products they need.”



Rhetoric from ILA leadership has been aggressive in the weeks leading up to the strike, with ILA president Harold Daggett, who was a union member the last time it went out on strike in 1977, telling rank-and-file members — who unanimously voted to authorize a strike — in a recent video message, “We’ll crush them.” 



In a video posted to an ILA Instagram account, Daggett addressed union workers at Maher Terminals in Elizabeth, New Jersey. “This is going down in history, what we’re doing here,” he said. “They can’t survive too long,” he added.



For now, it is the supply chain and U.S. economy which will take the immediate hit.



Shana Wray, principal solutions architect for supply chain intelligence firm FourKites, tells CNBC the strike comes at the worst possible time, with its impact on supply chain congestion to exacerbate the devastation left behind from Hurricane Helene.



“Helene caused ports to delay openings at the ports of Charleston and Savannah, as well as power losses at intermodal facilities in Savannah, Charleston, and Atlanta,” said Wray. “This created ocean, trucking, and rail carriers congestion across Southeast and Gulf ports.”



Logistics experts have told CNBC in recent months there has been an exodus of cargo from the East to West Coast, and companies moved up orders for peak shipping season due to the strike risk. Both economists and logistics executives say the impact of the strike depends on how long the work stoppage lasts.



“A disruption of a week or two will create some backlogs but the broader consequences will be minimal outside of a handful of very port-reliant areas, including Savannah,” said Adam Kamins, economist at Moody’s Analytics. “But anything longer will lead to shortages and upward price pressures,” he said.



The most significant issues would be faced by food and automobile industries, Kamins said, as they rely especially heavily on the ports that will be shut down. While a surge in inflation is highly unlikely even with a longer strike, even a modest reacceleration could create uncertainty and force the Federal Reserve to be more cautious about lowering interest rates, which would weigh on the overall outlook for job growth and investment.



A one-week strike could cost the U.S. economy $3.78 billion, according to an analysis by The Conference Board, and cause supply chain slowdowns through mid-November. In all, the ports threatened with strikes handle $3 trillion annually in U.S. annual international trade.



Many industries are preparing for major repercussions. Noushin Shamsili, CEO and president of Nuco Logistics, which specializes in pharmaceutical imports and exports, said the strike comes at a critical time for inventory replenishment for the pharma sector.



“Almost all of this industry is just on time,” said Shamsili. “Raw materials are being brought in to complete drug manufacturing. Medical supplies for clinics and hospitals are on these vessels. For a while importers did not bring in a lot of cargo because they were overflowing with supplies post-Covid. Now they have started reordering medical devices, gloves, syringes, and tubing.”



Shamsili also said the East Coast ports are a gateway for generic medicine made in India. Approximately 48% of the active pharmaceutical ingredients used in the U.S. are being imported from India. Without these APIs, medications cannot be produced. APIs are also manufactured in Europe, which also use the East Coast ports as U.S. points of entry.



Steve Lamar, CEO of the American Apparel and Footwear Association, said these ports are critical for the retailing industry. In 2023, the East and Gulf Coast ports accounted for 53% of all U.S. apparel, footwear, and accessories imports, he said, amounting to over&nbsp;$92 billion&nbsp;in value.



“The clock is ticking away,” said Lamar. “Each strike day yields five more days of disruption as our consumer-driven economy gets snarled in port backlogs right as we hit the heavy holiday shopping season. Both sides need to get back to the table and the administration must be ready to use all of its tools to make sure this happens. Reaching a fair, long-term, and sustainable deal is job No. 1 for all parties.”



Importers such as Walmart — the No. 1 importer across the affected ports — as well as other top importers including Home Depot, Ikea, Samsung, and LG Electronics will find few to no options to divert trade to Canada or the West Coast as other unions close ranks in support of the ILA’s labor battle.



These companies are among the leading importers at the 14 major ports that an ILA strike would impact, according to ImportGenius data.



The last time the ILA went on strike in 1977 the ILWU union at West Coast ports supported it by allowing ILA members to go to the Port of Los Angeles to stop the unloading of diverted vessel. ILA president Daggett, who was involved in those actions as a young union member, recently cited this historical example in communications with the rank-and-file.



The ILA has also made clear that all of its members, including those not subject to the expired contract, will be closing ranks. “You can be sure the ILA’s 85,000 members will be supporting their Sisters and Brothers,” James McNamara, spokesman for the ILU, recently told CNBC.



The Teamsters issued a statement on Monday night from its president Sean O’Brien saying it stood “100%” with the ILA in the fight for a new contract and reminding its members that Teamsters do not cross picket lines. “The ocean carriers are on strike against themselves after failing to negotiate a contract that recognizes the value of these workers,” O’Brien stated, and he added some harsh words about any effort by the federal government to interfere in the labor action.



The National Retail Federation has said items on the vessels en route for October 1 arrival and after are restocking items for the holidays as well as just-in-time products like auto parts and pharmaceuticals.



Between 43%-49% of all U.S. imports and billions of dollars in trade monthly are now caught up in the failed talks over a new union contract, which broke down in June amid allegations from the ILA that ports were violating rules related to use of automation.



The White House has engaged senior officials including Secretary of Transportation Pete Buttigieg, Acting Secretary of Labor Julie Su, and Director of the National Economic Council Lael Brainard since late last week in an effort to bring the ILA and USMX back to the bargaining table to negotiate a deal quickly.



Late in the day on Monday, USMX put out a statement saying within the past 24 hours it had traded counter offers with the union, including an offer to increase wages by nearly 50% over six years, triple employer contributions to employee retirement plans, strengthen health care options, and retain the current contract language around automation and semi-automation.



The union had already said in statement issued at 11 a.m. ET on Monday that “the Ocean Carriers represented by USMX want to enjoy rich billion-dollar profits that they are making in 2024, while they offer ILA Longshore Workers an unacceptable wage package that we reject.” The statement added that the union saw the USMX as “intent on causing a strike at all ports from Maine to Texas beginning in almost 12 hours.”



The Biden administration finds itself in a delicate political moment, with the presidential election one month away and President Biden vowing he will not use existing labor law to force union workers back on the job, which is within his powers under the Taft-Hartley Act.



The Taft-Hartley Act, passed in 1947, was a revision of U.S. law governing labor relations and union activity that granted a U.S. president the power to suspend a strike for an 80-day “cooling off period” in cases where “national health or safety” are at risk.&nbsp;



The White House has reiterated its position several times in recent days that “We’ve never invoked Taft-Hartley to break a strike and are not considering doing so now.”



Cruise operations and military operations at ports will continue.

108041186-1727745894541-gettyimages-2175709455-port532972_nnwur8co

East and Gulf Coast ports strike, stranding billions in trade and threatening U.S. economy

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="429" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/09/PF3JNZQUQ5M65OD7XXTYURHSSI-820x429.jpg" alt="" class="wp-image-536822" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/09/PF3JNZQUQ5M65OD7XXTYURHSSI-820x429.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/PF3JNZQUQ5M65OD7XXTYURHSSI-300x157.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/PF3JNZQUQ5M65OD7XXTYURHSSI-160x84.jpg 160w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/PF3JNZQUQ5M65OD7XXTYURHSSI-768x402.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/PF3JNZQUQ5M65OD7XXTYURHSSI-1536x804.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/PF3JNZQUQ5M65OD7XXTYURHSSI.jpg 1920w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">Construction work is seen opposite a statue of Samora Machel, the first President of Mozambique, and the Cathedral of the Immaculate Conception, a Roman Catholic cathedral in downtown Maputo, Mozambique, September 1, 2019. REUTERS/Siphiwe Sibeko</figcaption></figure>



MAPUTO, Sept 30 (Reuters)&nbsp;&#8211;&nbsp;Mozambique&#8217;s central bank cut its main interest rate for the fifth meeting in a row on Monday, saying the inflation outlook remained favourable.



The central bank reduced its MIMO interest rate&nbsp;MZMIMO=ECI&nbsp;by 75 basis points to 13.50%.



The southern African country&#8217;s inflation slowed to 2.75% year on year in August&nbsp;MZCPIY=ECI&nbsp;from 2.97% in July, statistics agency data showed.



The Bank of Mozambique reiterated in a statement that it expected to continue to lower the MIMO rate over the medium term.



(Reporting by Manuel Mucari; Writing by Bhargav Acharya; Editing by Alexander Winning)

PF3JNZQUQ5M65OD7XXTYURHSSI

Mozambique central bank cuts main interest rate again

<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="720" height="458" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/09/X6NY63TYXVKRFCEWGIZJ6ESKB4.avif" alt="" class="wp-image-536752"/><figcaption class="wp-element-caption">A man compares different grains of rice at a wholesale market in Navi Mumbai, India August 4, 2023. REUTERS/Francis Mascarenhas/File Photo</figcaption></figure>



MUMBAI/HANOI, Sept 30 (Reuters)&nbsp;&#8211;&nbsp;Global rice prices fell on Monday after India, the world&#8217;s No.1 exporter of the grain, gave the go-ahead for exports to resume, boosting global supply and helping poor Asian and African buyers secure more affordable supplies, exporters said.



India on Saturday allowed exports of non-basmati&nbsp;<a href="https://www.reutersconnect.com/all?search=all%3AL1N3LC05C&amp;linkedFromStory=true" target="_blank" rel="noreferrer noopener">white rice</a>. That came a day after New Delhi cut export duty on&nbsp;<a href="https://www.reutersconnect.com/all?search=all%3AL1N3LC05A&amp;linkedFromStory=true" target="_blank" rel="noreferrer noopener">parboiled rice</a>&nbsp;to 10%, buoyed by a new crop in the offing and higher inventories in state warehouses.



&#8220;Suppliers from Thailand, Vietnam, and Pakistan are responding to India&#8217;s move by lowering their export prices,&#8221; said Himanshu Agarwal, executive director at Satyam Balajee, a leading rice exporter. &#8220;Everyone&#8217;s trying to stay competitive to hold their spot in the market.&#8221;



Global rice prices soared to their highest level in over 15 years following India&#8217;s decision last year to ban the export of white rice and impose a 20% duty on parboiled rice exports.



Last year&#8217;s export curbs imposed by India allowed competing suppliers like Vietnam, Thailand, Pakistan, and Myanmar to increase their market share and command higher prices in the global market.



On Monday, India&#8217;s 5% broken parboiled variety&nbsp;RI-INBKN5-P1&nbsp;was quoted at $500-$510 per metric ton, down from the last week&#8217;s $530-$536. Indian 5% broken white rice was offered around $490.



Exporters in Vietnam, Pakistan, Thailand and Myanmar also lowered prices by at least $10 per ton on Monday, dealers said.



The Philippines, Nigeria, Iraq, Senegal, Indonesia, and Malaysia are among the key importers of Asian rice.



Buyers and sellers are evaluating the potential impact of increased Indian rice supplies and accordingly prices would settle this week, said Nitin Gupta, senior vice president of Olam Agri India.



India accounted for more than 40% of the world&#8217;s rice exports in 2022, a record 22.2 million metric tons out of a total 55.4 million metric tons of global trade.



Thai rice prices were quoted at $540-$550 on Monday, down from last week&#8217;s $550 to $560 per ton.



Thailand&#8217;s rice export prices could decrease due to increased supplies in the market, but the extent of the decline would depend on several factors, including the appreciating Thai currency, said Chukiat Opaswong, honorary president of the Thai Rice Exporters Association.



Rice prices have started to correct, even in Vietnam, but traders caution that the full impact of Indian supplies has yet to be seen.



&#8220;(Vietnamese) exporters should stay calm and avoid reducing prices to secure contracts,&#8221; said Truong Tan Tai, chief executive of Vinarice Co., a rice exporter.



(Reporting by Rajendra Jadhav in Mumbai, Khanh Vu in Hanoi, Mayank Bhardwaj in New Delhi and Panarat Thepgumpanat in Bangkok; editing by David Evans)

X6NY63TYXVKRFCEWGIZJ6ESKB4

Global rice prices drop after India allows white rice exports

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="519" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/09/HWVA22ZQGVJL3J2BEPNBYS7R4M-820x519.jpg" alt="" class="wp-image-536707" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/09/HWVA22ZQGVJL3J2BEPNBYS7R4M-820x519.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/HWVA22ZQGVJL3J2BEPNBYS7R4M-300x190.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/HWVA22ZQGVJL3J2BEPNBYS7R4M-142x90.jpg 142w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/HWVA22ZQGVJL3J2BEPNBYS7R4M-768x486.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/HWVA22ZQGVJL3J2BEPNBYS7R4M-1536x971.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/HWVA22ZQGVJL3J2BEPNBYS7R4M-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">FILE PHOTO: A drone view of Ratcliffe-on-Soar Power Station in Ratcliffe-on-Soar, Nottinghamshire, Britain September 26, 2024. REUTERS/Molly Darlington/File Photo</figcaption></figure>



Sept 30 (Reuters)&nbsp;&#8211;&nbsp;Abu Dhabi-based International Resources Holding (IRH) has signed an agreement with South Africa&#8217;s Public Investment Corporation (PIC) to invest in rail infrastructure and green energy projects, the two entities said on Monday.



IRH is a subsidiary of International Holding Company&nbsp;IHC.AD, the United Arab Emirates&#8217; (UAE) richest company, while the state-owned PIC is Africa&#8217;s largest asset manager. The PIC&#8217;s 2.89 trillion rand ($169 billion) assets under management include mining, agriculture, manufacturing, real estate and financial services investments.



IRH and PIC would cooperate on South Africa&#8217;s planned replacement of its coal-dominated power generation with cleaner sources of energy, they said in a joint statement, without giving details.



They would also seek to expand South Africa&#8217;s logistical capacity by addressing persistent freight rail and port bottlenecks which have throttled commodity exports.



South Africa&#8217;s state-owned logistics firm Transnet, which operates the country&#8217;s freight rail and ports, has&nbsp;<a href="https://www.reutersconnect.com/all?search=all%3AL8N3K711G&amp;linkedFromStory=true" target="_blank" rel="noreferrer noopener">struggled</a>&nbsp;to provide adequate services due to equipment shortages and maintenance backlogs after years of under-investment.



The agreement would also &#8220;bring underperforming and undeveloped mining assets&#8221; in South Africa to full production capacity, they said. They did not name the assets.



Earlier this year, IRH completed the acquisition of a 51% stake in Zambia&#8217;s&nbsp;<a href="https://www.reutersconnect.com/all?search=all%3AL8N3DH25C&amp;linkedFromStory=true" target="_blank" rel="noreferrer noopener">Mopani Copper Mines</a>. The IRH has also been pursuing&nbsp;<a href="https://www.reutersconnect.com/all?search=all%3AL1N3IV091&amp;linkedFromStory=true" target="_blank" rel="noreferrer noopener">other copper assets</a>&nbsp;in Zambia as the UAE and seeks to secure critical metal supplies from Africa amid a global shift to cleaner energy.



The IRH also has operations or prospects in Angola, Burundi, Democratic Republic of Congo, South Africa, Tanzania, Zambia, and Zimbabwe, according to its website.



($1 = 17.0983 rand)



(Reporting by Nelson Banya; Editing by Emelia Sithole-Matarise)

FILE PHOTO: A drone view of Ratcliffe-on-Soar Power Station in Ratcliffe-on-Soar

UAE’s IRH eyes mining, energy and logistics projects in South Africa

<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="2048" height="1365" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/09/BNNVWMSIARI3XAWVJ7B3VBLVLQ-scaled.jpg" alt="" class="wp-image-536675" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/09/BNNVWMSIARI3XAWVJ7B3VBLVLQ-scaled.jpg 2048w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/BNNVWMSIARI3XAWVJ7B3VBLVLQ-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/BNNVWMSIARI3XAWVJ7B3VBLVLQ-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/BNNVWMSIARI3XAWVJ7B3VBLVLQ-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/BNNVWMSIARI3XAWVJ7B3VBLVLQ-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/BNNVWMSIARI3XAWVJ7B3VBLVLQ-1536x1024.jpg 1536w" sizes="auto, (max-width: 2048px) 100vw, 2048px" /><figcaption class="wp-element-caption">FILE PHOTO: Quareebullahi Ajenifuja, 12, and Joy Adeniji, 12, take notes together during class at Ilorin Grammar school, in Ilorin, Kwara state, Nigeria, March 26, 2021. REUTERS/Temilade Adelaj</figcaption></figure>



LAGOS, Sept 30 (Reuters)&nbsp;&#8211;&nbsp;The World Bank has approved a $1.57 billion financing package for Nigeria under a new programme to support its health and education sectors and help provide sustainable power, the bank said on Monday.



The World Bank is the largest lender to Nigeria, with more than $15 billion in loans at the end of March, data from the Debt Management Office showed.



The bank said in a statement that the money would help increase availability and effectiveness of financing for basic education and primary healthcare service delivery.



&#8220;The new financing includes $500 million for addressing governance issues that constrain the delivery of education and health, $570 million for the Primary Healthcare Provision Strengthening Program and $500 million for the Sustainable Power and Irrigation for Nigeria Project,&#8221; the bank said.



Nigeria is among countries with the highest number of out of school children mainly due to insecurity, especially in the north of the country where a long-running Islamist insurgency and armed kidnapping gangs have caused havoc.



The World Bank said part of the money would be used to improve dam safety to protect people from floods.



Nigeria faces frequent flooding and this year up to&nbsp;<a href="https://www.reutersconnect.com/all?search=all%3AL8N3KT0SF&amp;linkedFromStory=true" target="_blank" rel="noreferrer noopener">a million people were affected</a>&nbsp;after a dam in northeastern Borno state burst.



More floods are expected in Nigeria after authorities in&nbsp;<a href="https://www.reutersconnect.com/all?search=all%3AL8N3KO1PZ&amp;linkedFromStory=true" target="_blank" rel="noreferrer noopener">Cameroon started releasing water from a large dam</a>&nbsp;to prevent it from overflowing.



(Reporting by MacDonald Dzirutwe, editing by Ed Osmond)

FILE PHOTO: Two children take notes during class in Kwara state, Nigeria. March 2021.

World Bank approves $1.57 billion loan for Nigeria

<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="728" height="487" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/09/rand2.jpg" alt="" class="wp-image-536645" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/09/rand2.jpg 728w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/rand2-300x201.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/rand2-135x90.jpg 135w" sizes="auto, (max-width: 728px) 100vw, 728px" /><figcaption class="wp-element-caption">South African bank notes featuring an image of former South African President Nelson Mandela are displayed at an office in Johannesburg, File. REUTERS/Siphiwe Sibeko</figcaption></figure>



JOHANNESBURG, Sept 30 (Reuters)&nbsp;&#8211;&nbsp;The following scheduled economic events, equity and currency market moves may affect South African markets on Monday.



ECONOMIC EVENTS



August money supply and credit data&nbsp;ZAM3=ECI,&nbsp;ZACRED=ECI



August budget balance&nbsp;ZABUDM=ECI



August trade balance&nbsp;ZATBAL=ECI



Treasury-bill auction



Offshore trading in bonds and equities



SOUTH AFRICAN MARKETS



South Africa&#8217;s rand extended gains against the dollar on Friday, hitting a fresh 20-month high amid improved risk appetite and positive sentiment at home.&nbsp;.JZAR/



GLOBAL MARKETS



Share markets turned hesitant in Asia on Monday as strife in the Middle East offset more policy measures in China, while the Nikkei dived on concerns Japan&#8217;s new prime minister favoured normalising interest rates.&nbsp;MKTS/GLOB



WALL STREET



The blue-chip Dow Jones Industrial Average closed at a record high as a subdued inflation report stoked hopes for more Federal Reserve rate cuts, which enabled Wall Street&#8217;s three main indexes to post weekly gains.&nbsp;.N



GOLD



Gold prices eased on Monday but hovered near the record peak hit last week, setting bullion on track for its best quarter in over eight years following a jumbo U.S. rate cut decision and expectations of another outsized reduction in November.&nbsp;GOL/



EMERGING MARKETS



For the top emerging markets news, double click on&nbsp;<a href="https://www.reutersconnect.com/all?search=all%3ARR:347&amp;linkedFromStory=true" target="_blank" rel="noreferrer noopener">Read full story</a>



&#8211; &#8211; &#8211; &#8211;



Some of the main stories out in the South African press:



BUSINESS DAY



&#8211; Grindrod deal points to SA firms favouring port of Maputo



&#8211; SA miners slash almost 7,000 jobs in second quarter



FIN 24



&#8211; Fabergé owner Gemfields expects to double its debt as it bets on growth



&#8211; Treasury&#8217;s new plan to attract companies to transmission: A credit guarantee vehicle



(Compiled by Alexander Winning)

New South African bank notes featuring an image of former South African President Nelson Mandela are displayed at an office in Johannesburg

South African Markets – Factors to watch on Sept 30

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/05/VFKU2JNBTBIDVNPMOMLDRAUIO4-820x547.jpg" alt="" class="wp-image-491240" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/05/VFKU2JNBTBIDVNPMOMLDRAUIO4-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/05/VFKU2JNBTBIDVNPMOMLDRAUIO4-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/05/VFKU2JNBTBIDVNPMOMLDRAUIO4-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2024/05/VFKU2JNBTBIDVNPMOMLDRAUIO4-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/05/VFKU2JNBTBIDVNPMOMLDRAUIO4.jpg 960w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">Pedestrians walk in front of Ghana&#8217;s central bank building in Accra, Ghana, November 16, 2015. REUTERS/Francis Kokoroko</figcaption></figure>



ACCRA, Sept 27 (Reuters) &#8211; Ghana&#8217;s central bank on Friday slashed its main interest rate by 200 basis points to 27%, its first rate cut since January, as inflation continues to ease while economic recovery remains robust according to the governor.



Bank of Ghana Governor Ernest Addison told a news conference that economic trends suggest the disinflation process is on course, and price rises will continue to ease towards the short-term range target of 13% to 17% for the year.



&#8220;Such a strong signalling of the monetary policy rate by reducing it by 200 basis points tells you that the central bank is quite satisfied with the progress of recovery of this economy,&#8221; Addison said, adding that all economic indicators including growth, inflation and reserves are improving.



Bank of Ghana&#8217;s decision comes as central banks in major advanced economies have begun the much-anticipated policy easing cycle amid declining inflation rates, Addison added.



Economists polled by Reuters had forecast in July that Ghana&#8217;s interest rate would fall by 200 basis points by the end of the year.



&#8220;This easing of policy is understandable, given that the recent falls in inflation had caused real interest rates to rise, something that this cut will partially reverse,&#8221; said Leslie Dwinght-Mensah, economist and research fellow at Accra-based Institute for Fiscal Studies



He added that the strong rate of economic activity, which official data recently revealed, also gave the central bank the comfort to take this step.



&#8220;The Bank of Ghana also expressed confidence in fiscal policy being on track. This is unlikely therefore to pose a hurdle to November easing, should inflation continue to be well-behaved,&#8221; said Razia Khan, chief economist for Africa and the Middle East at Standard Chartered.



Ghana&#8217;s consumer inflation slowed to 20.4% year-on-year in August from 20.9% in July, but it remains well above the central bank&#8217;s medium-term target of 8% with a margin of error of 2 percentage points either side.



Growth recovered significantly to 6.9% year-on-year in the second quarter of 2024, the fastest rate in five years, boosted by expansion in several key sectors as the gold, cocoa, and oil-producing nation continues to emerge from its worst economic crisis in a generation.



The governor announced that Ghana was set to launch a gold coin sale to attract more liquidity and offer more instruments to financial markets and investors who see gold as a safe haven.



The coin, which will be available for purchase through commercial banks, will be launched in two weeks, he added.



Ghana invited holders of roughly $13 billion of its international bonds to swap their holdings for new instruments after reaching a preliminary debt restructuring agreement with two bondholder groups.



Bondholders have until Sept. 30 to accept the offer.



(Reporting by Maxwell Akalaare Adombila; Writing by Anait Miridzhanian; Editing by Bate Felix and Andrew Cawthorne)

VFKU2JNBTBIDVNPMOMLDRAUIO4

Ghana central bank slashes key rate as inflation outlook improves

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="575" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/09/2YFSNLSNFRP7VNWQPEPCOAWUMU-2-820x575.jpg" alt="" class="wp-image-535605" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/09/2YFSNLSNFRP7VNWQPEPCOAWUMU-2-820x575.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/2YFSNLSNFRP7VNWQPEPCOAWUMU-2-300x210.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/2YFSNLSNFRP7VNWQPEPCOAWUMU-2-128x90.jpg 128w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/2YFSNLSNFRP7VNWQPEPCOAWUMU-2-768x539.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/2YFSNLSNFRP7VNWQPEPCOAWUMU-2-1536x1078.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/2YFSNLSNFRP7VNWQPEPCOAWUMU-2-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">FILE PHOTO: A man shows off Zimbabwean currency notes outside a grocery store in Harare, Zimbabwe, March 17, 2022. REUTERS/Philimon Bulawayo/File Photo</figcaption></figure>



HARARE, Sept 27 (Reuters)&nbsp;&#8211;&nbsp;Zimbabwe&#8217;s central bank allowed the local gold-backed currency to fall over 40% against the dollar on Friday and hiked its policy rate, giving in to weeks of sustained pressure on the currency which was only launched in April.



The central bank&#8217;s website gave the mid rate for the ZiG currency as 24.3902 to the dollar on Friday versus 13.9987 on Thursday, a 42.6% fall, according to Reuters calculations.



The ZiG, which stands for Zimbabwe Gold, is the southern African country&#8217;s sixth attempt at a stable currency in 15 years after a bout of hyperinflation under then longtime leader Robert Mugabe.



But authorities have struggled to convince a sceptical population to stop transacting in foreign currencies.



The Reserve Bank of Zimbabwe said in a statement that its Monetary Policy Committee (MPC) met on Friday and decided to allow greater exchange rate flexibility.



MPC members increased the bank&#8217;s policy rate from 20% to 35% with immediate effect.



&#8220;The MPC is convinced that the above measures will go a long way in addressing the emerging exchange rate risks, anchor the inflation expectations and stabilise prices in the near to short term,&#8221; the central bank said.



Bloomberg News earlier reported that Zimbabwe was said to have devalued the ZiG by 44% against the dollar, citing four treasury dealers.



Independent Zimbabwean economist Hapi Zengeni said it was important to note that the central bank had not said whether it was allowing the currency to float freely or would still control the exchange rate after the devaluation.



This &#8220;highlights the complexities in Zimbabwe &#8230; where the official exchange rate does not reflect the realities of the parallel market, leading to more challenging economic implications for trade, investment and more importantly consumer behaviour&#8221;, Zengeni said.



(Additional reporting by Shubham Kalia in Bengaluru; Writing by Bhargav Acharya; Editing by Alexander Winning and Toby Chopra, Kirsten Donovan)

FILE PHOTO: Zimbabwe’s poor feel the impact of far away Ukraine war

Zimbabwe allows currency to slump over 40%, hikes policy rate

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="517" src="https://cms.cnbcafrica.com/wp-content/uploads/2022/04/106944604-16321717072021-09-20t205319z_656748898_rc2wtp9oerrm_rtrmadp_0_worldbank-ethics-report-820x517.jpeg" alt="" class="wp-image-416545" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2022/04/106944604-16321717072021-09-20t205319z_656748898_rc2wtp9oerrm_rtrmadp_0_worldbank-ethics-report-820x517.jpeg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2022/04/106944604-16321717072021-09-20t205319z_656748898_rc2wtp9oerrm_rtrmadp_0_worldbank-ethics-report-300x189.jpeg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2022/04/106944604-16321717072021-09-20t205319z_656748898_rc2wtp9oerrm_rtrmadp_0_worldbank-ethics-report-143x90.jpeg 143w, https://cms.cnbcafrica.com/wp-content/uploads/2022/04/106944604-16321717072021-09-20t205319z_656748898_rc2wtp9oerrm_rtrmadp_0_worldbank-ethics-report-768x484.jpeg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2022/04/106944604-16321717072021-09-20t205319z_656748898_rc2wtp9oerrm_rtrmadp_0_worldbank-ethics-report-1536x969.jpeg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2022/04/106944604-16321717072021-09-20t205319z_656748898_rc2wtp9oerrm_rtrmadp_0_worldbank-ethics-report-scaled.jpeg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">A participant stands near a logo of World Bank at the International Monetary Fund &#8211; World Bank Annual Meeting 2018 in Nusa Dua, Bali, Indonesia, October 12, 2018.
Johannes Christo | Reuters</figcaption></figure>



KAMPALA, Sept 26 (Reuters)&nbsp;&#8211;&nbsp;The World Bank said it is rolling out measures to ensure the recipients of lending to Uganda are not discriminated against by a tough anti-gay law.



A World Bank spokesperson said the measures, which include an independent monitoring mechanism to ensure compliance, would apply to ongoing and new projects.



Uganda, a mostly conservative country, enacted the Anti-Homosexuality Act (AHA) in May last year, drawing widespread condemnation from the West and sanctions from the United States.



Under the law, same-sex intercourse is punishable by life in prison while those who commit so-called aggravated homosexuality receive the death penalty.



The bank suspended all new lending to Uganda last year after finding that the law contradicts its values.



The World Bank is one of Uganda&#8217;s biggest funders, especially of critical infrastructure such as roads and energy. The funding suspension was seen as a significant blow to its finances.



&#8220;We will not propose any new public financing for Uganda to our board until we are satisfied that&#8230; mitigation measures are in place,&#8221; the bank said.



LGBT activists had asked the bank to keep the ban on funding as long as the law remains in force, they said in a statement this week.



&#8220;The World Bank&#8217;s mitigation measures are a facade, designed to provide the illusion of protection,&#8221; said Richard Lusimbo, a top official at Convening for Equality (CFE), a Ugandan LGBT activist group.



(Reporting by Elias Biryabarema; Editing by Sonia Rao, Hereward Holland and Ros Russell)

106944604-16321717072021-09-20t205319z_656748898_rc2wtp9oerrm_rtrmadp_0_worldbank-ethics-report

World Bank says it aims to protect projects in Uganda from anti-LGBT law

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="461" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/09/107334836-17001387862023-11-16t045757z_657805151_rc24e4ay49fs_rtrmadp_0_apec-usa-820x461.jpeg" alt="" class="wp-image-535493" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/09/107334836-17001387862023-11-16t045757z_657805151_rc24e4ay49fs_rtrmadp_0_apec-usa-820x461.jpeg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/107334836-17001387862023-11-16t045757z_657805151_rc24e4ay49fs_rtrmadp_0_apec-usa-300x169.jpeg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/107334836-17001387862023-11-16t045757z_657805151_rc24e4ay49fs_rtrmadp_0_apec-usa-160x90.jpeg 160w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/107334836-17001387862023-11-16t045757z_657805151_rc24e4ay49fs_rtrmadp_0_apec-usa-768x432.jpeg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/107334836-17001387862023-11-16t045757z_657805151_rc24e4ay49fs_rtrmadp_0_apec-usa-1536x864.jpeg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/107334836-17001387862023-11-16t045757z_657805151_rc24e4ay49fs_rtrmadp_0_apec-usa.jpeg 1920w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">Photo: via CNBC</figcaption></figure>



BEIJING — China aims to stop the property slump, top leaders said Thursday in a readout of a high-level meeting published by state media.



Authorities “must work to halt the real estate market decline and spur a stable recovery,” the readout said in Chinese, translated by CNBC. It also called for “responding to concerns of the masses.”



Chinese President Xi Jinping led Thursday’s meeting of the Politburo, the second-highest circle of power in the ruling Chinese Communist Party, state media said.



The readout said leaders called for strengthening fiscal and monetary policy support, and touched on a swath of issues from employment to the aging population. It did not specify the timeframe or scale of any measures.



“I take the messages from this meeting as a positive step,” Zhiwei Zhang, president and chief economist at Pinpoint Asset Management, said in an email to CNBC. “It takes time to formulate a comprehensive fiscal package to address the economic challenges, [and] the meeting took one step in that direction.”



Stocks in mainland China and Hong Kong extended gains after the news to close sharply higher on Thursday. An index of Chinese property stocks in Hong Kong surged by nearly 12%.



Real estate once accounted for more than a quarter of China’s economy. The sector has slumped since Beijing’s crackdown in 2020 on developers’ high levels of debt. But the decline has also cut into local government revenue and household wealth.



China’s broader economic growth has slowed, raising concerns about whether it can reach the full-year GDP target of around 5% without additional stimulus. Just days after the U.S. cut interest rates, the People’s Bank of China on Tuesday announced a slew of planned interest rate cuts and real estate support. Stocks rose, but analysts cautioned the economy still needed fiscal support.



Official data shows real estate’s decline has moderated slightly in recent months. The value of new homes sold fell by 23.6% for the year through August, slightly better than the 24.3% drop year-to-date as of July.



Average home prices fell by 6.8% in August from the prior month on a seasonally adjusted basis, according to Goldman Sachs. That was a modest improvement from a 7.6% decline in July.



“Bottom-out stabilization in the housing market will be a prerequisite for households to take action and break the ‘wait-and-see’ cycle,” Yue Su, principal economist China, at the Economist Intelligence Unit, said in a note. “This suggests that the policy priority is not to boost housing prices to create a wealth effect, but to encourage households to make purchases. This real estate policy is aiming at reducing its drag on the economy.”



Thursday’s meeting called for limiting growth in housing supply, increasing loans for whitelisted projects and reducing the interest on existing mortgages. The People’s Bank of China on Tuesday said forthcoming cuts should lower the mortgage payment burden by 150 billion yuan ($21.37 billion) a year.



While Thursday’s meeting did not provide many details, it is significant for a country where policy directives are increasingly determined at the very top.



The high-level meeting reflects the setting of an “overall policy,” as there previously wasn’t a single meeting to sum up the measures, Bank of China’s chief researcher Zong Liang said in Mandarin, translated by CNBC.



He noted how the meeting follows the market’s positive response to the policy announcements earlier in the week. Zong expects Beijing to increase support, noting a shift from focus on stability to taking action.



<h2 class="wp-block-heading" id="h-tempering-growth-expectations"><a></a>Tempering growth expectations</h2>



The meeting readout said China would “work hard to complete” the country’s full-year economic targets.



That’s less aggressive than the Politburo meeting in July, when the readout said China would work to achieve those goals “at all costs,” according to Bruce Pang, chief economist and head of research for Greater China at JLL.



That shows policymakers are looking for middle ground between short-term growth and longer-term efforts to address structural issues, he said.



Goldman Sachs and other firms have trimmed their growth forecasts in the last few weeks.



The change in tone about the economic targets signals “the government may tolerate growth below 5%,” the EIU’s Su said. “We estimate real economic growth to be around 4.7% in 2024, before slowing down to 4.5% (a moderate upward revision to our previous forecast).”



“The Politburo meetings on economic deployment usually take place in April, July, and October,” she said.



“The fact that this meeting was held earlier, along with the emphasis on stabilizing growth, reflects policymakers’ concerns about the current economic growth trend.”



Initial analyst reactions to Thursday’s meeting readout were varied.



HSBC said “the tide has turned; be prepared for more proactive initiatives.” Capital Economics, on the other hand, said Beijing’s hint at stimulus did not make it clear whether it would include large-scale fiscal support.



S&amp;P Global Ratings analysts said in a report earlier this year that fiscal stimulus is losing its effectiveness in China and is more of a strategy to buy time for longer-term goals.



Senior officials in the summer told reporters that the economy needed to endure necessary “pain” as it transitioned to one of higher-quality growth with a bigger high-tech industry.



— CNBC’s Sonia Heng contributed to this report.

107334836-17001387862023-11-16t045757z_657805151_rc24e4ay49fs_rtrmadp_0_apec-usa

China’s Xi and top leaders call for halting real estate decline, responding to public concerns

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/09/AFYN63AFIVNRTGBCXCOCW3YSWE-820x547.jpg" alt="" class="wp-image-535260" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/09/AFYN63AFIVNRTGBCXCOCW3YSWE-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/AFYN63AFIVNRTGBCXCOCW3YSWE-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/AFYN63AFIVNRTGBCXCOCW3YSWE-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/AFYN63AFIVNRTGBCXCOCW3YSWE-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/AFYN63AFIVNRTGBCXCOCW3YSWE-1536x1025.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/AFYN63AFIVNRTGBCXCOCW3YSWE-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">FILE PHOTO: A loader is seen at the Klipfontein Colliery near Balmoral, in the Mpumalanga province, South Africa September 11, 2023. REUTERS/Siphiwe Sibeko/File Photo</figcaption></figure>



JOHANNESBURG, Sept 26 (Reuters)&nbsp;&#8211;&nbsp;South Africa&#8217;s donor-funded climate programme has spent just over a sixth of its allotted $11.6 billion, with a focus on expanding the power grid and preventing its coal-mining region slipping into decline as it shifts to renewables, two sources said.



A donor and a South African official involved in the plan, neither of whom were willing to be named because they were not authorised to speak publicly, said about $1.9 billion had been spent, half of it on policy-based loans to the government.



Of the rest, about $488 million had gone towards electricity, a breakdown seen by Reuters showed. The remaining quarter was for projects to revive the coal belt province, Mpumalanga, a planned green hydrogen hub and skills training, among other things.



Britain, France, Germany, the European Union and United States initially pledged $8.5 billion at COP26 climate talks in 2021. That figure &#8211; all but a fraction of it in the form of concessional loans &#8211; grew last year, as Denmark, Canada, Spain, the Netherlands and Switzerland joined the initiative.



Owing to its complexity, the number of donors involved and South Africa&#8217;s internal politics, the climate programme has been moving more slowly than planned, and South Africa has told donors it will not meet its 2030 emissions-reduction targets.



Environment Minister Dion George was quoted in the national press this month as saying that German officials had told him South Africa was moving away from fossil fuels too slowly.



A spokesperson for the German embassy declined to comment.



<h2 class="wp-block-heading" id="h-easy-win">EASY WIN?</h2>



Africa&#8217;s most industrialised nation, where 80% of the power is generated from coal, is seen as an easy win for donor-assisted green energy programmes, with its well-developed infrastructure and abundant sun and wind.



But politicians are nervous about winding down a 160-year-old coal business that directly employs 90,000 people and supports whole communities, even while it poisons their air and water.



&#8220;It&#8217;s about &#8230;the mine workers, the coal truckers&#8230;the entire ecosystem (around coal) whose material interests are threatened,&#8221; said Joanne Yawitch, head of the Just Energy Transition at President Cyril Ramaphosa&#8217;s climate commission.



Yawitch said the focus was on new skills and economic opportunities for coal-belt residents, especially its most vulnerable: informal workers, youths and women.



&#8220;With South Africa&#8217;s levels of poverty and unemployment&#8230;if we don&#8217;t take care of the needs of that community&#8230;(the) transition&#8230;will just be resisted all the way.&#8221;



Burning coal has rendered South Africa one of the world&#8217;s most carbon intensive economies, central bank data shows. South Africa is in the top 15 greenhouse gas emitters, ahead of France and Britain.



The policy loans have funded reforms such as a law enacted last month to bring private companies and competition into a power sector long dominated by state monopoly Eskom, the donor source said.



Grants are only $676 million of the total, and Ramaphosa has complained that they make up too small a portion.



(Reporting by Tim Cocks; Editing by Kirsten Donovan)

FILE PHOTO: A loader is seen at the Klipfontein Colliery

Focus on coal miners, power grid as South Africa spends just sixth of climate aid

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="461" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/09/101943216-980643681-820x461.jpg" alt="" class="wp-image-535129" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/09/101943216-980643681-820x461.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/101943216-980643681-300x169.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/101943216-980643681-160x90.jpg 160w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/101943216-980643681-768x432.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/101943216-980643681-1536x864.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/101943216-980643681.jpg 1858w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">AFP | Getty Images</figcaption></figure>



China’s government announced it will offer a one-time cash allowance to those in extreme poverty, a day after its central bank rolled out a slate of stimulus measures aimed at shoring up the economy.



The handout will be provided to “extremely poor people, orphans and other needy people on the occasion of the 75th anniversary of the founding of New China,” China’s Ministry of Civil Affairs reported on Wednesday. That’s according to a Google translation. The subsidies will be doled out before China’s National Day on Oct. 1 to “promptly convey the Party and government’s care and concern for the needy.” The report did not specify the size of the allowance or any further details.



“Xi Jinping and the CPC are laser focused on giving a hand to low- and middle-income Chinese through his common prosperity drive … Xi is focused on building equity in poorer regions,” founder of China Market Research Group Shaun Rein told CNBC when asked about the living subsidies.&nbsp;&nbsp;



The concept of common prosperity, initially introduced by Mao Zedong in the 1950s, was reintroduced by the Chinese government in 2021 to promote moderate wealth for everyone.



As of last November, 40.4 million people in China were covered by subsistence allowances. The average allowance was about 779 yuan ($110.80) per person a month for those staying in urban areas, while rural subsistence was 615 yuan per person.



On Tuesday, China’s vice minister of human resources and social security claimed the country has established the world’s largest social security network. He said the number of people enrolled in basic old-age insurance, unemployment insurance and work-related injury insurance has reached 1.07 billion, 245 million, and 301 million, respectively.



While Chinese President Xi Jinping is a proponent of common prosperity, deploying one-time handouts within such a short time frame is still uncommon.&nbsp;



Even during the Covid pandemic, China did not give out cash subsidies to households and enterprises unlike other governments such as the U.S. and Europe, key member of the Chinese central bank Huang Yiping noted in an August article. 



China’s economy has been pummeled by a raft of weak economic data, as more Chinese opt to save rather than spend leading to lackluster consumption and retail sales figures.

featured

Iran launches missile attack on Israel for killing of Hezbollah leader, general

Kenya’s parliament tables motion to impeach deputy president, speaker says

Western nations urge Kenya to seek IMF review of corruption issues, sources say

Absa PMI shows South African factory activity grew in September

Barrick Gold and Mali government to find resolution for Loulo and Gounkoto gold mines

East and Gulf Coast ports strike, stranding billions in trade and threatening U.S. economy

Mozambique central bank cuts main interest rate again

Global rice prices drop after India allows white rice exports

UAE’s IRH eyes mining, energy and logistics projects in South Africa

World Bank approves $1.57 billion loan for Nigeria

South African Markets – Factors to watch on Sept 30

Ghana central bank slashes key rate as inflation outlook improves

Zimbabwe allows currency to slump over 40%, hikes policy rate

World Bank says it aims to protect projects in Uganda from anti-LGBT law

China’s Xi and top leaders call for halting real estate decline, responding to public concerns

Focus on coal miners, power grid as South Africa spends just sixth of climate aid

China offers one-time cash allowance for those in extreme poverty

News Tips

Advertise With Us

featured

Iran launches missile attack on Israel for killing of Hezbollah leader, general

Kenya’s parliament tables motion to impeach deputy president, speaker says

Western nations urge Kenya to seek IMF review of corruption issues, sources say

Absa PMI shows South African factory activity grew in September

Barrick Gold and Mali government to find resolution for Loulo and Gounkoto gold mines

East and Gulf Coast ports strike, stranding billions in trade and threatening U.S. economy

Mozambique central bank cuts main interest rate again

Global rice prices drop after India allows white rice exports

UAE’s IRH eyes mining, energy and logistics projects in South Africa

World Bank approves $1.57 billion loan for Nigeria

South African Markets – Factors to watch on Sept 30

Ghana central bank slashes key rate as inflation outlook improves

Zimbabwe allows currency to slump over 40%, hikes policy rate

World Bank says it aims to protect projects in Uganda from anti-LGBT law

China’s Xi and top leaders call for halting real estate decline, responding to public concerns

Focus on coal miners, power grid as South Africa spends just sixth of climate aid

China offers one-time cash allowance for those in extreme poverty

News Tips

Advertise With Us

Newsletters