<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/08/KR23UUE5KBL57FNLACCPQ4B2DA-820x547.jpg" alt="" class="wp-image-515322" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/08/KR23UUE5KBL57FNLACCPQ4B2DA-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/KR23UUE5KBL57FNLACCPQ4B2DA-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/KR23UUE5KBL57FNLACCPQ4B2DA-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/KR23UUE5KBL57FNLACCPQ4B2DA-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/KR23UUE5KBL57FNLACCPQ4B2DA-1536x1025.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/KR23UUE5KBL57FNLACCPQ4B2DA-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">FILE PHOTO: Nigerian police personnel patrol the streets, amid ongoing anti-government demonstrations against bad governance and economic hardship, in Lagos, Nigeria August 4, 2024. REUTERS/Francis Kokoroko/File Photo</figcaption></figure>



LAGOS, Aug 5 (Reuters) &#8211; Protests in Nigeria over the soaring cost of living ebbed on Monday, with only a few hundred people turning out in major cities following a deadly crackdown by security forces since the demonstrations began last week.



Hundreds of thousands of people have taken to the streets in the capital Abuja, Lagos and other big cities during the protests against economic hardship and crime, which started on Thursday and were meant to continue until Aug. 10.



Amnesty International said at least 13 people have been killed in clashes with police since the start of the protests, which were dubbed &#8220;#10DaysOfRage&#8221;. Police put the death toll at seven, saying some of the fatalities were caused by accidents and an explosive device.



A tough police response and a call for a protest pause by President Bola Tinubu appeared to have dampened the demonstrations, which came weeks after data showed annual inflation hit a 28-year high of 34.19% in June.



In the commercial hub of Lagos, where demonstrations have been largely peaceful, about 100 people gathered at the protest venue singing and chanting &#8220;we are hungry&#8221;. In Abuja, there were no signs of protests at the main stadium where protesters have been gathering since Thursday.



In the north of the country, about 200 protesters were dispersed by armed security forces in Maiduguri, capital of Borno state, while in Katsina, security forces fired teargas at protesters who were chanting &#8220;hunger and insecurity are killing us&#8221;.



Curfews have been imposed in parts of the north, which has seen some of the largest and fiercest protests, and in the central state of Plateau.



On Sunday, Tinubu called for an end to violence and said he was always open to dialogue.



Tinubu, in office since May 2023, defended his economic reforms, which have included a partial end to costly petrol and electricity subsidies and devaluation of the naira, as necessary to reverse years of economic mismanagement.



(Additonal reporting by Ope Adetayo in Abuja, Ahmed Kingimi in Maiduguri and Hamza Ibrahim in Kano; Writing by Elisha Bala-Gbogbo;Editing by Angus MacSwan and Helen Popper)

Nigerians continue to protest against economic hardship

Nigerian protests fizzle out amid deadly police crackdown

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="462" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/08/107408859-1714578761524-gettyimages-2150252824-AFP_34QJ4L2-820x462.jpeg" alt="" class="wp-image-515303" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/08/107408859-1714578761524-gettyimages-2150252824-AFP_34QJ4L2-820x462.jpeg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/107408859-1714578761524-gettyimages-2150252824-AFP_34QJ4L2-300x169.jpeg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/107408859-1714578761524-gettyimages-2150252824-AFP_34QJ4L2-160x90.jpeg 160w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/107408859-1714578761524-gettyimages-2150252824-AFP_34QJ4L2-768x432.jpeg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/107408859-1714578761524-gettyimages-2150252824-AFP_34QJ4L2.jpeg 929w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">A man looks at an electronic boarddisplaying stock prices of the Nikkei 225 listed on the Tokyo Stock Exchange in Tokyo on April 30, 2024.  Kazuhiro Nogi | Afp | Getty Images</figcaption></figure>



Investors on Monday turned to safe-haven assets as a global stock sell-off deepened, following weaker-than-expected U.S. jobs data at the end of last week.



The disappointing jobs report spurred investor fears that the Federal Reserve made a mistake last week when it kept interest rates unchanged, and that the world’s largest economy is headed toward a recession.



The stock sell-off has also been exacerbated by volatility in some of the major earnings and a more hawkish Bank of Japan, which has led to speculation that the popular yen “carry trade” has imploded over a short-term basis. A “carry trade” takes place when investor borrows in a currency with low interest rates, such as the yen, and reinvests the proceeds in a currency with a higher rate of return.



On Monday morning, the Swiss franc strengthened 1.2% against the dollar to trade at 0.847 against the greenback, or its strongest level since January this year.



Similarly, U.S. Treasury yields extended their fall to notch a one-year low. At 2:41 a.m. ET, the yield on the 10-year Treasury was down by over eight basis points to 3.7099%. The 2-year Treasury yield was last trading at 3.7315% after falling by around 14 basis points. The yield on Japan’s 10-year government bond also dipped to 0.204%.



Gold futures climbed 0.38% to trade at $2,479.2 per ounce.



The buying was in sharp contrast to the selling seen in the stock markets. U.S. stock futures fell early Monday, with the Dow Jones Industrial Average futures declining by some 600 points by 4 a.m. ET, or roughly 1.5%. S&amp;P 500 futures and Nasdaq-100 futures dipped 2.8% and 4.9%, respectively.



Japan stocks confirmed a bear market in Asia overnight. The 12.4% loss on the Nikkei — which brought it to close at 31,458.42 — marked the worst day for the index since the “Black Monday” of 1987. The loss of 4,451.28 points on the index was also the largest decline in terms of points in its entire history.



In Europe, the regional Stoxx 600 index was 2.34% lower, with all sectors and major regional bourses trading in the red. Tech stocks shed as much as 5% before paring losses slightly to trade down 2.8%. Mining stocks also lost 3.65%, while banks were 3.22% lower.



Ted Alexander, chief investment officer at BML Funds, said that the current volatility in markets has “been a long time coming,” and that it was not a reason to panic.



“Everyone’s been expecting it for a while, [it’s] great for active managers,” he told CNBC via email, adding that the shake up may actually bring equity investors back if stocks offer better value.



“Stock markets aren’t cooked yet. Don’t abandon some exposure to tech and growth,” Alexander said.



—CNBC’s Sarah Min and Lim Hui Jie contributed to this report

107408859-1714578761524-gettyimages-2150252824-AFP_34QJ4L2

A global stock rout is deepening with investors fleeing to safe havens

<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="960" height="730" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/08/108015858-1722630576753-gettyimages-2165010509-ms1_7647_t8akammx.jpeg" alt="" class="wp-image-515252" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/08/108015858-1722630576753-gettyimages-2165010509-ms1_7647_t8akammx.jpeg 960w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/108015858-1722630576753-gettyimages-2165010509-ms1_7647_t8akammx-300x228.jpeg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/108015858-1722630576753-gettyimages-2165010509-ms1_7647_t8akammx-820x624.jpeg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/108015858-1722630576753-gettyimages-2165010509-ms1_7647_t8akammx-118x90.jpeg 118w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/108015858-1722630576753-gettyimages-2165010509-ms1_7647_t8akammx-768x584.jpeg 768w" sizes="auto, (max-width: 960px) 100vw, 960px" /><figcaption class="wp-element-caption">Stock market numbers are displayed on a screen at the New York Stock Exchange during afternoon trading on August 02, 2024 in New York City. Michael M. Santiago | Getty Images</figcaption></figure>



LONDON — European stocks fell sharply at the start of the Monday session, as global volatility continues amid concerns of a looming U.S. recession.



The regional Stoxx 600 index was 2.77% lower by 8:19 a.m. London time, with all sectors and major regional bourses trading in the red. Tech stocks led losses, shedding as much as 5% before paring losses slightly to trade down 4.7%, while banks were 3.7% lower.



The lower start for major European markets comes amid wider global volatility; U.S. stock futures fell Sunday night following a turbulent last week for Wall Street, in which the Nasdaq Composite dropped into correction territory. Asia-Pacific markets also continued the selloff overnight.



Earnings in Europe come from Uniper, Infineon, Monte dei Paschi and Palantir Technologies on Monday. Data releases include services purchasing managers’ index data from the U.K, Italy and Spain.

108015858-1722630576753-gettyimages-2165010509-ms1_7647_t8akammx

European markets plunge 2.7% as global volatility deepens; tech stocks shed 4.7%

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="461" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/08/107212428-1679412407200-gettyimages-1243440706-raa-ethereum220922_npJS5-820x461.jpeg" alt="" class="wp-image-515232" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/08/107212428-1679412407200-gettyimages-1243440706-raa-ethereum220922_npJS5-820x461.jpeg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/107212428-1679412407200-gettyimages-1243440706-raa-ethereum220922_npJS5-300x169.jpeg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/107212428-1679412407200-gettyimages-1243440706-raa-ethereum220922_npJS5-160x90.jpeg 160w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/107212428-1679412407200-gettyimages-1243440706-raa-ethereum220922_npJS5-768x432.jpeg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/107212428-1679412407200-gettyimages-1243440706-raa-ethereum220922_npJS5-1536x864.jpeg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/107212428-1679412407200-gettyimages-1243440706-raa-ethereum220922_npJS5.jpeg 1920w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">Nurphoto | Nurphoto | Getty Images</figcaption></figure>



The cryptocurrency market plummeted in value on Sunday, as investors continued selling out of risky assets.



Led by a drop of 11% in bitcoin in the past 24 hours and a 21% plunge in ether, the overall value of cryptocurrencies sank by about $270 billion, according to CoinGecko data.



The selloff in the crypto market coincided with a broader slide in equities in Asia-Pacific markets. Japan’s Nikkei 225 dropped as much as 7%, extending losses that began last week, after the Bank of Japan announced it would hike its benchmark interest rate to the highest level in 16 years.



In the U.S. the Nasdaq slid 3.4% last week into correction territory, capping off the tech-heavy index’s worst three-week stretch since September 2022, when the market was in freefall. Amazon and Nvidia contributed to the declines.



Last week’s drop in stocks was tied in part to disappointing earnings, a weaker-than-expected jobs report, higher unemployment and a declining manufacturing sector. The U.S. Federal Reserve opted to hold its benchmark rate steady and didn’t promise a rate cut in September, which many market experts had baked into their forecast. Lower interest rates tend to correlate with better performance for risky assets.



Bitcoin’s price has reached its lowest level since February. The world’s largest cryptocurrency is trading at about $54,000. It’s still up almost 23% this year.



The price of ether, the native token underpinning the ethereum blockchain, fell to around $2,300 and has erased its gains for the year. Binance’s BNB token was down more than 15% and solana is trading 10% lower.



Investors are also looking out for new trade data from China and Taiwan this week, as well as central bank decisions in both India and Australia.



The latest crypto wipeout will be felt by a broader base of investors after the SEC this year approved new spot exchange-traded funds for bitcoin and ether. The ETFs have seen hundreds of millions of dollars flow into the coins. On Friday, CNBC reported that Morgan Stanley would soon allow its 15,000 financial advisors to pitch bitcoin ETFs to its clients, a first for Wall Street.

107212428-1679412407200-gettyimages-1243440706-raa-ethereum220922_npJS5

Crypto selloff wipes out $270 billion in value as bitcoin, ether plunge

<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="884" height="442" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/08/108015047-1722527876434-108015047-1722527728357-gettyimages-2159383304-jr029159_ghjrzhsy.jpg" alt="" class="wp-image-514258" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/08/108015047-1722527876434-108015047-1722527728357-gettyimages-2159383304-jr029159_ghjrzhsy.jpg 884w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/108015047-1722527876434-108015047-1722527728357-gettyimages-2159383304-jr029159_ghjrzhsy-300x150.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/108015047-1722527876434-108015047-1722527728357-gettyimages-2159383304-jr029159_ghjrzhsy-820x410.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/108015047-1722527876434-108015047-1722527728357-gettyimages-2159383304-jr029159_ghjrzhsy-160x80.jpg 160w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/108015047-1722527876434-108015047-1722527728357-gettyimages-2159383304-jr029159_ghjrzhsy-768x384.jpg 768w" sizes="auto, (max-width: 884px) 100vw, 884px" /><figcaption class="wp-element-caption">Photo: via CNBC</figcaption></figure>



Job growth in the U.S. slowed much more than expected during July and the unemployment rate ticked higher, fueling fears of a broader economic slowdown, the Labor Department reported Friday.



Nonfarm payrolls grew by just 114,000 for the month, down from the downwardly revised 179,000 in June and below the Dow Jones estimate for 185,000. The unemployment rate edged higher to 4.3%, its highest since October 2021.



Average hourly earnings, a closely watched inflation barometer, increased 0.2% for the month and 3.6% from a year ago. Both figures were below respective forecasts for 0.3% and 3.7%.



Stock market futures added to losses following the report while Treasury yields plunged.



The labor market had been a pillar of economic strength but has recently shown some trouble signs, and the July payrolls increase was well below the average of 215,000 over the past 12 months.



“Temperatures might be hot around the country, but there’s no summer heatwave for the job market,” said Becky Frankiewicz, president of the ManpowerGroup employment agency. “With across-the-board cooling, we have lost most of the gains we saw from the first quarter of the year.”



From a sector standpoint, health care again led in job creation, adding 55,000 to payrolls. Other notable gainers included construction (25,000), government (17,000), and transportation and warehousing (14,000). Leisure and hospitality, another leading gainer over the past few years, added 23,000.



The information services sector posted a loss of 20,000.



While the survey of establishments used for the headline payrolls number was discouraging, the household survey was even more so, with growth of just 67,000, while the ranks of the unemployed swelled by 352,000. The participation rate as a share of the working-age population edged higher to 62.7%.



The report adds to mixed signals recently about the economy and with financial markets on edge about how the Federal Reserve will respond.



Though markets on Wednesday cheered indications from the Fed that an interest rate cut could come as soon as September, that quickly turned to trepidation when economic data Thursday showed an unexpected jump in filings for unemployment benefits and a further weakening of the manufacturing sector.



That triggered the worst sell-off of the year on Wall Street and renewed fears that the Fed may be waiting too long to start cutting interest rates.&nbsp;Easing wage gains could help policymakers feel more confident that inflation is progressing back to their 2% goal.



The rise in the unemployment rate brings into play the so-called Sahm Rule, which states that the economy is in recession when the three-month average of the jobless level is half a percentage point higher than the 12-month low. In this case, the unemployment rate was 3.5% in July 2023 before it began its gradual ascent. The three-month unemployment rate average moved up to 4.13%.



“The latest snapshot of the labor market is consistent with a slowdown, not necessarily a recession,” said Jeffrey Roach, chief economist at LPL Financial. “However, early warning signs suggest further weakness.”



Roach pointed out that the ranks of those working part-time for economic reasons jumped to 4.57 million, an increase of 346,000 to the highest level since June 2021.



An alternate measure of unemployment that includes discouraged workers and those holding part-time jobs for economic reasons surged 0.4 percentage point to 7.8%, the highest since October 2021.



Long-term unemployment also ticked higher. Those reporting being out of work for 27 weeks or more totaled 1.54 million, the most since February 2022.



Wall Street had been bracing for modest gains from the July payrolls report, in part over concerns about growth but also from residual impacts from Hurricane Beryl. The storm badly damaged parts of Texas including the Houston metropolitan area.&nbsp;



Despite some anxiety over the state of economic growth, Fed Chair Jerome Powell on Wednesday expressed confidence about the “solid” economy and said easing inflation data is raising confidence that the central bank can cut soon.&nbsp;



Markets have fully priced in a rate cut of at least a quarter percentage point at each of the three remaining Fed meetings this year. Odds are rising that the Fed even may go beyond traditional quarter point reductions.



“While the labor market has remained remarkably resilient over these past two years of elevated interest rates, it’s important for the Federal Reserve to stay ahead of any further labor market slowing by proceeding with its expected September rate cut,” said Clark Bellin, chief investment officer at Bellwether Wealth.



Correction: The forecast for average hourly earnings was for an increase of 0.3% for the month. An earlier version misstated the percentage.

108015047-1722527876434-108015047-1722527728357-gettyimages-2159383304-jr029159_ghjrzhsy

U.S. jobs growth totals 114,000 in July, much less than expected, as unemployment rate rises to 4.3%

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="538" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/08/2ULCJYYHB5OH5O2DRQ44X3IBDI-1-820x538.jpg" alt="" class="wp-image-513847" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/08/2ULCJYYHB5OH5O2DRQ44X3IBDI-1-820x538.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/2ULCJYYHB5OH5O2DRQ44X3IBDI-1-300x197.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/2ULCJYYHB5OH5O2DRQ44X3IBDI-1-137x90.jpg 137w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/2ULCJYYHB5OH5O2DRQ44X3IBDI-1-768x504.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/2ULCJYYHB5OH5O2DRQ44X3IBDI-1-1536x1008.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/2ULCJYYHB5OH5O2DRQ44X3IBDI-1-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">FILE PHOTO: A man counts Ethiopia&#8217;s birr notes in Merkato, one of Africa&#8217;s biggest open air market, in Addis Ababa, Ethiopia, April 25, 2024. REUTERS/Tiksa Negeri/File Photo</figcaption></figure>



ADDIS ABABA, Aug 2 (Reuters)&nbsp;&#8211;&nbsp;Ethiopia will enjoy $4.9 billion in relief from debt repayments when it completes its current restructuring exercise, State Finance Minister Eyob Tekalign said on Friday.



The East African country is putting its long-delayed debt overhaul back on track after securing a new International Monetary Fund financing programme.



&#8220;We will sign and finalise with each individual (creditor) country over the course of the next few months,&#8221; Eyob told Reuters, referring to the savings.



Total external debt stood at $28.38 billion in March this year, data from the finance ministry showed.



Eyob was expounding on remarks made by Prime Minister Abiy Ahmed late on Thursday to explain recent economic reforms to the public via a televised event.



Abiy said the new exercise would include savings of $200 million from the restructuring of its $1 billion Eurobond.



Abiy defended this week&#8217;s switch to a market-determined foreign exchange rate, saying it aimed to close the gap between the official and black market rates and did not amount to a devaluation of the currency.



The central bank allowed the birr to float freely on Monday, fulfilling a key condition for securing financial support from the International Monetary Fund and other creditors, and for putting the nation&#8217;s long-delayed debt restructuring back on track.



The birr has since then lost 31.5% against the dollar, to trade at 83.94 per greenback, the country&#8217;s biggest lender, Commercial Bank of Ethiopia, said on Friday, and some economic analysts and commentators have voiced concern that inflation could surge.



&#8220;Saying Ethiopia has devalued its currency is wrong,&#8221; Abiy said late on Thursday in a televised briefing&nbsp;on the&nbsp;new policy.



&#8220;There were two markets. One is 100 and the other is 50. So when the gap between the two became wide, it brought many dangers. So what we said, (the two) should be unified,&#8221; he said



While lifting foreign exchange trading restrictions helped Ethiopia clinch the IMF deal and funding from other creditors including the World Bank, concern about the policy&#8217;s inflationary impact on low-income households has led at least two local governments to crack down on shops raising prices.



The government and its creditors say the liberalisation will help the private sector make a bigger contribution to the economy and boost long-term growth.



(Reporting by Dawit Endeshaw; Writing by George Obulutsa and Duncan Miriri; Editing by Helen Popper and Giles Elgood)

Ethiopia’s economy struggles due to shortage of foreign currency

Ethiopia to save $4.9 bln from debt restructuring, state minister says

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="462" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/08/108013392-1722337017522-gettyimages-2021271708-20090101240221-99-73751-820x462.jpeg" alt="" class="wp-image-514180" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/08/108013392-1722337017522-gettyimages-2021271708-20090101240221-99-73751-820x462.jpeg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/108013392-1722337017522-gettyimages-2021271708-20090101240221-99-73751-300x169.jpeg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/108013392-1722337017522-gettyimages-2021271708-20090101240221-99-73751-160x90.jpeg 160w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/108013392-1722337017522-gettyimages-2021271708-20090101240221-99-73751-768x432.jpeg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/108013392-1722337017522-gettyimages-2021271708-20090101240221-99-73751.jpeg 929w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">The lights of Frankfurt am Main’s banking skyline glow in the last light of day. Boris Roessler | Picture Alliance | Getty Images</figcaption></figure>



LONDON — European stocks extended losses on Friday amid a global downturn, as weak U.S. economic data sparked fears of a recession.



The regional Stoxx 600 index was down 1.43% at 9:34 a.m. Technology stocks dropped 3.6%, as U.S. giant Intel fell more than 21% in premarket trade after reporting a big earnings miss.



Global markets have been pulled lower by a flurry of central bank action — with the Bank of England cutting interest rates for the first time since 2020, the U.S. Federal Reserve holding rates and the Bank of Japan raising them this week — along with shaky corporate earnings and data releases.



The Stoxx 600 on Thursday suffered its worst session since the middle of June, weighed down by financials as French bank Societe Generale downgraded its outlook, and the BOE voted to reduce rates. Financial services were down another 3.1% Friday.



The Thursday decision took the British central bank’s key interest rate from 5.25% to 5%, following a narrow 5-4 vote among policymakers. Markets had not been fully convinced that the BOE would take the step.



BOE Governor Andrew Bailey told CNBC that the direction for interest rates was “pretty clear,” but he would not comment on the extent or timing of further cuts and said services inflation and wage data would be watched closely. Market pricing suggests expectations for a rate hold in September, followed by another rate trim in November.



U.S. stock markets tumbled on Thursday, as jitters grew around the state of the economy. Weekly initial jobless claims came in higher than expected, while manufacturing data slowed.



More information will be added to the U.S. economic picture on Friday, as the U.S. Bureau of Labor Statistics releases the nonfarm payrolls report, while Europe is quiet on the data front.



Asia-Pacific markets logged steep losses Friday, with Japan’s benchmark indexes tanking as much as 5%.



Cedric Chehab, global head of country risk at BMI, told CNBC’s “Street Signs Asia” that a U.S.-led sell-off started a week and a half ago but escalated in the middle of this week. That was due to factors including the hawkish Bank of Japan imploding the popular yen carry trade in the short term, weak U.S. data and volatility in earnings.



“But one thing people aren’t remembering is that usually between the period of July and October there is a seasonal rise in volatility for equity markets, so this isn’t completely unexpected,” Chehab said.



“Especially after the fact that there was such a large rally in U.S. stocks and global stocks, the fact that earnings came in a bit mixed and valuations are high, but also monetary policy remains very tight in real terms,” he added.

108013392-1722337017522-gettyimages-2021271708-20090101240221-99-73751

European markets lower amid global sell-off; technology, financial stocks tumble

<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="2048" height="1536" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/08/OJLUMYBPNBOPNBQH5SXGL2MYTE-scaled.jpg" alt="" class="wp-image-514137" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/08/OJLUMYBPNBOPNBQH5SXGL2MYTE-scaled.jpg 2048w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/OJLUMYBPNBOPNBQH5SXGL2MYTE-300x225.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/OJLUMYBPNBOPNBQH5SXGL2MYTE-820x615.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/OJLUMYBPNBOPNBQH5SXGL2MYTE-120x90.jpg 120w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/OJLUMYBPNBOPNBQH5SXGL2MYTE-768x576.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/OJLUMYBPNBOPNBQH5SXGL2MYTE-1536x1152.jpg 1536w" sizes="auto, (max-width: 2048px) 100vw, 2048px" /><figcaption class="wp-element-caption">Smoke rises from the burnt tires on a street, while demonstrators check the vehicles during an anti-government demonstration to protest against bad governance and economic hardship in Abuja, Nigeria August 1, 2024. REUTERS/Abraham Achirga</figcaption></figure>



ABUJA, Aug 2 (Reuters) &#8211; Nigerian police are on red alert and may seek the help of the military after protests against the cost of living and governance issues turned violent in some cities, the inspector general of police said.



At least three protesters were killed in northern Kaduna state on Thursday, Reuters reporters and protesters said.



Amnesty International said on Friday at least 13 protesters in total had been killed in three northern states, but the authorities have not commented on any deaths.



Some major cities, including the capital Abuja and Kano in the north appeared calm on Friday, a day after police and demonstrators clashed there, but further protests are expected amid widespread anger over President Bola Tinubu&#8217;s economic reforms that have increased hardship for ordinary Nigerians.



The inspector general of police, Kayode Egbetokun, said late on Thursday that police were fully mobilised and ready to respond swiftly to any further threats to public order.



&#8220;In the light of the current situation, the Nigeria Police Force has placed all units on red alert,&#8221; Egbetokun said in a statement.



&#8220;The police are equipped to respond appropriately to the unfolding situation and will get assistance from other security agencies, including the military if the need arises.&#8221;



Inspired by youth-led protests in Kenya, Nigerians have organised the &#8220;#EndBadGovernanceInNigeria&#8221; protests online, saying they would sustain their action for 10 days.



Amnesty International said security forces were responsible for the deaths of the 13 people in Niger state, Maiduguri, which is the capital of Borno state, and Kaduna, all in the north.



&#8220;Our findings, so far, show that security personnel at the locations where lives were lost deliberately used tactics designed to kill while dealing with gatherings of people protesting hunger and deep poverty,&#8221; it said.



A Nigerian police spokesperson did not immediately respond to requests for comment.



Kaduna state police spokesperson Mansur Hassan said on Thursday that the police had fired tear gas at protesters but had not used live ammunition.



Kano, a largely Muslim state and among the most populous in Nigeria,&nbsp;relaxed a 24-hour curfew imposed&nbsp;after protesters looted a shop and a government complex, while three other states also imposed curfews in some areas.



President Tinubu says that while he understands the pain caused by his reforms, which have fuelled inflation and weakened the currency, they are the only way to put Nigeria on a firm path to economic growth.



(Reporting by Abraham Achirga in Abuja, Hamza Ibrahim in Kano, Ahmed Kingimi in Maiduguri and Seun Sanni in Lagos, Writing by MacDonald DzirutweEditing by Chijioke Ohuocha, Giles Elgood and Gareth Jones)

Nigerians begin protests against economic hardship

Nigerian police may seek army help after violent protests

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="613" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/08/VJ5LH6KF2BI2ZGLLQJNNERNKRQ-820x613.jpg" alt="" class="wp-image-514113" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/08/VJ5LH6KF2BI2ZGLLQJNNERNKRQ-820x613.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/VJ5LH6KF2BI2ZGLLQJNNERNKRQ-300x224.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/VJ5LH6KF2BI2ZGLLQJNNERNKRQ-120x90.jpg 120w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/VJ5LH6KF2BI2ZGLLQJNNERNKRQ-768x575.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/VJ5LH6KF2BI2ZGLLQJNNERNKRQ-1536x1149.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/VJ5LH6KF2BI2ZGLLQJNNERNKRQ-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">Paris 2024 Olympics &#8211; Boxing &#8211; Women&#8217;s 66kg &#8211; Prelims &#8211; Round of 16 &#8211; North Paris Arena, Villepinte, France &#8211; August 01, 2024. Imane Khelif of Algeria is seen after her fight against Angela Carini of Italy. REUTERS/Isabel Infantes</figcaption></figure>



PARIS, Aug 1 (Reuters) &#8211; The International Olympic Committee on Thursday defended its decision to allow two female boxers to compete at the Paris Olympics despite a gender row, saying the pair were facing &#8220;aggression&#8221; because of an arbitrary decision.



Algerian Imane Khelif, who won her round of 16 welterweight bout over Italian Angela Carini in 46 seconds, and Taiwan&#8217;s double world champion Lin Yu-ting, who is fighting on Friday, have been cleared to compete in the Olympics.



Khelif&#8217;s lightning-quick win over the Italian, who decided to pull out after a barrage of punches by the Algerian, piled more pressure on the IOC for allowing them to box in Paris.



Both fighters had been disqualified at the 2023 World Championships after failing International Boxing Association eligibility rules that prevent athletes with male XY chromosomes competing in women&#8217;s events.



But the IBA was stripped of its recognition by the IOC last year over governance and finance issues, with the Olympic body running the boxing competition in Paris.



The IOC said the IBA decision to disqualify the boxers last year was arbitrary and the main cause for the furore that has seen people like British author J. K. Rowling and billionaire Elon Musk voice their opposition to them competing in the Games.



&#8220;These two athletes were the victims of a sudden and arbitrary decision by the IBA,&#8221; the IOC said in a statement. &#8220;Towards the end of the IBA World Championships in 2023, they were suddenly disqualified without any due process.



&#8220;According to the IBA minutes available on their website, this decision was initially taken solely by the IBA Secretary General and CEO.&#8221;



Some sports have limited the levels of testosterone allowed for athletes competing in women&#8217;s competition, while others ban everyone who has been through male puberty.



Differences of Sexual Disorder are a group of rare conditions involving genes, hormones and reproductive organs. Some people with DSDs are raised as female but have XY sex chromosomes and blood testosterone levels in the male range.



The IOC said the rules of eligibility were based on those of the Tokyo Games in 2021 and cannot be changed during a competition.



&#8220;The current aggression against these two athletes is based entirely on this arbitrary decision, which was taken without any proper procedure – especially considering that these athletes had been competing in top-level competition for many years,&#8221; the IOC said.



&#8220;The IOC is saddened by the abuse that the two athletes are currently receiving,&#8221; it added. &#8220;Every person has the right to practice sport without discrimination.&#8221;



In a statement, the IBA condemned &#8220;inconsistencies in eligibility&#8221; at the Paris Games.



&#8220;Both Imane Khelif and Lin Yu-ting post testing, did not meet the required eligibility criteria to compete within the female category of our respective events,&#8221; the body added.



&#8220;The urgent nature of the decision (to disqualify the boxers) was justified, as the safety of our boxers is our top priority.&#8221;



(Reporting by Karolos Grohmann; Additional reporting by Aadi Nair; Editing by Ken Ferris)

Boxing – Women’s 66kg – Prelims – Round of 16

Olympics-IOC saddened by ‘aggression’ against boxers over gender row

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="462" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/08/107433735-1719423521960-gettyimages-2159383303-jr029067_kd08rrou-820x462.jpeg" alt="" class="wp-image-514095" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/08/107433735-1719423521960-gettyimages-2159383303-jr029067_kd08rrou-820x462.jpeg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/107433735-1719423521960-gettyimages-2159383303-jr029067_kd08rrou-300x169.jpeg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/107433735-1719423521960-gettyimages-2159383303-jr029067_kd08rrou-160x90.jpeg 160w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/107433735-1719423521960-gettyimages-2159383303-jr029067_kd08rrou-768x432.jpeg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/107433735-1719423521960-gettyimages-2159383303-jr029067_kd08rrou.jpeg 929w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">People line up as they wait for the JobNewsUSA.com South Florida Job Fair to open at the Amerant Bank Arena on June 26, 2024, in Sunrise, Florida.  Joe Raedle | Getty Images</figcaption></figure>



The U.S. labor market may have cooled some in July, as a gradual slowdown in the economy and Hurricane Beryl are expected to have taken some of the steam out of hiring.



Still, even if the Labor Department’s nonfarm payrolls report for July, to be released Friday at 8:30 a.m. ET, does indicate a weaker jobs picture, the decline is expected to be only incremental and in keeping with the type of gentle downshift the Federal Reserve is looking to engineer.



“If the Fed was going to manufacture the soft landing, this is probably what it was going to look like,” said Mike Reynolds, vice president of investment strategy at Glenmede. “You’re seeing just modest on-the-margin weakness in the labor market that [isn’t likely to] spiral out of control into a negative feedback loop.”



Indeed, the report from the department’s Bureau of Labor Statistics is forecast to show payroll gains of 185,000 on the month, down from 206,000 in June, with the unemployment rate holding at 4.1%, according to the Dow Jones consensus estimate. Job reports for the past year and a half have routinely beaten the consensus.



But some economists think the report could be on the light side; Goldman Sachs expects Beryl, which ravaged large parts of Texas, particularly Houston, to pull down the jobs number by 15,000. The firm thinks the total payroll gain will be more like 165,000. Citigroup projects an even lower number — 150,000 on payrolls and a tick higher in the unemployment rate to 4.2%.



Should the unemployment rate keep climbing, it could raise fears that the so-called Sahm Rule is in danger of being triggered. The rule has observed without fail that when the unemployment rate over a three-month period averages half a percentage point higher than the 12-month low, the economy is in recession. A year ago, the jobless level as at 3.5% before it started climbing.



<h2 class="wp-block-heading" id="h-optimism-at-the-fed">Optimism at the Fed</h2>



Job gains have averaged 203,000 a month for the first half of 2024, while the unemployment rate has drifted higher as more workers have come into the labor force and the level of those considered unemployed but looking for work or temporarily laid off has hit its highest level since October 2021.



Fed Chair Jerome Powell on Wednesday noted that the previous disparity between supply and demand in the labor market has come into near-balance. Open jobs now outnumber available workers just 1.2 to 1, down from 2 to 1 a few years ago as inflation roared.



Should the factors continue to come into balance and other inflation indicators show progress, Powell strongly hinted that an interest rate cut could be coming in September.



“Our confidence is growing, because we’re getting good data,” he said at a news conference following the Fed’s policy meeting. “Frankly, the softening in the labor market conditions gives you more confidence that the economy’s not overheating.”



Markets will be watching Friday’s numbers for confirmation that Powell’s view on the labor market is accurate — and that the Fed isn’t overconfident and waiting too long to start lowering rates.



There has been a growing chorus on Wall Street for the Fed to start easing now that most indicators show that the inflation rate is only a short distance from the central bank’s 2% goal. DoubleLine CEO Jeffrey Gundlach, for instance, told CNBC on Wednesday that he thinks the economy already is teetering on recession.



“When we look back at today, …. I kind of believe that we will say that we were in recession in September 2024,” he said.



<h2 class="wp-block-heading"><a></a>Eyes on earnings</h2>



The Fed at its meeting voted to hold its benchmark overnight borrowing rate in a range of 5.25%-5.5%, where it has been for the past year.



Markets rallied on the news but gave back those gains Thursday following news that unemployment claims rose last week and the manufacturing sector slumped further into contraction.



“By holding off on cutting interest rates today, the Federal Open Market Committee is betting the labor market is strong enough to wait until the fall for confirmation that inflation is returning to 2%,” said Nick Bunker, Indeed Hiring Lab’s economic research director for North America. “Let’s hope it pays off.”



As always, markets also will have eyes on the average hourly earnings portion of the report for signs of underlying inflation.



The forecast is that earnings rose 0.3% on the month and 3.7% from year ago. If the latter is correct, it will represent the lowest earnings increase since May 2021.



“Even if wage pressures were to unexpectedly remain ‘stuck’ or slightly re-accelerate in this report, we think that the progress the Fed has made on inflation thus far means that there should still be an opportunity for the Fed to cut rates in September so long as subsequent data releases (eg July CPI) cooperates,” said BeiChen Lin, investment strategist at Russell Investments.

107433735-1719423521960-gettyimages-2159383303-jr029067_kd08rrou

Here’s everything you need to know about Friday’s big jobs report

<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="2048" height="1344" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/08/2ULCJYYHB5OH5O2DRQ44X3IBDI-1-scaled.jpg" alt="" class="wp-image-513847" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/08/2ULCJYYHB5OH5O2DRQ44X3IBDI-1-scaled.jpg 2048w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/2ULCJYYHB5OH5O2DRQ44X3IBDI-1-300x197.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/2ULCJYYHB5OH5O2DRQ44X3IBDI-1-820x538.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/2ULCJYYHB5OH5O2DRQ44X3IBDI-1-137x90.jpg 137w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/2ULCJYYHB5OH5O2DRQ44X3IBDI-1-768x504.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/2ULCJYYHB5OH5O2DRQ44X3IBDI-1-1536x1008.jpg 1536w" sizes="auto, (max-width: 2048px) 100vw, 2048px" /><figcaption class="wp-element-caption">FILE PHOTO: A man counts Ethiopia&#8217;s birr notes in Merkato, one of Africa&#8217;s biggest open air market, in Addis Ababa, Ethiopia, April 25, 2024. REUTERS/Tiksa Negeri/File Photo</figcaption></figure>



ADDIS ABABA, Aug 1 (Reuters)&nbsp;&#8211;&nbsp;At least two Ethiopian local governments have ordered the closure of dozens of businesses found hiking prices of basic commodities after the central bank floated the national currency, officials said on Thursday.



The Ethiopian birr weakened by 28% against the dollar this week after the central bank adopted a market-determined foreign exchange rate to secure a new International Monetary Fund lending programme and to put debt restructuring back on track.



&#8220;The businesses were caught making unreasonable price increases mostly on food items &#8230; The stocks were imported before the new exchange rate,&#8221; said Sewnet Ayele, a spokesperson for the Addis Ababa City Trade Bureau.



Some 71 businesses have been affected by the closure order, Sewnet said. In Oromiya region, another 19 businesses were closed and three people detained, said Meseret Assefa, head of the Trade Bureau of Oromiya.



&#8220;Those whose business are closed were the ones who increased prices on items just immediately after the (exchange rate) announcement,&#8221; Meseret said.



The main commodity whose price has gone up is cooking oil, which is selling at 25%, or 300 birrs, more, said a trader in Addis Ababa, who did not wish to be named.



Other commodities whose prices have gone up by a smaller margin include rice, said the trader.



Although the removal of foreign exchange trading restrictions helped Ethiopia to clinch the IMF deal and funding from other creditors like the World Bank, some Ethiopian analysts fear it will cause price hikes that hit the poor hardest.



The government and its development partners say the liberalisation will help the private sector make a bigger contribution to the economy and boost long-term growth.



(Reporting by Dawit Endeshaw; Writing by Duncan Miriri; Editing by Giles Elgood)

Ethiopian local authorities crack down on price hikes after currency float

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="529" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/08/OODUGWAXRFIS5FEW3AWJQSJCUE-820x529.jpg" alt="" class="wp-image-513792" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/08/OODUGWAXRFIS5FEW3AWJQSJCUE-820x529.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/OODUGWAXRFIS5FEW3AWJQSJCUE-300x194.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/OODUGWAXRFIS5FEW3AWJQSJCUE-140x90.jpg 140w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/OODUGWAXRFIS5FEW3AWJQSJCUE-768x495.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/OODUGWAXRFIS5FEW3AWJQSJCUE-1536x991.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/OODUGWAXRFIS5FEW3AWJQSJCUE-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">FILE PHOTO: Nigeria Labor Congress (NLC) protest against the high cost of living and massive suffering following a hike in petrol and devaluation of the Naira in Lagos, Nigeria February 27, 2024. REUTERS/Marvellous Durowaiye/File Photo</figcaption></figure>



ABUJA, Aug 1 (Reuters)&nbsp;&#8211;&nbsp;Police fired tear gas to disperse crowds of protesters in Nigeria&#8217;s capital city Abuja on Thursday, as thousands rallied against escalating cost of living and governance issues in Africa&#8217;s most populous nation, according to eyewitness accounts.



Protesters demonstrated in Abuja, the commercial capital Lagos and several other cities to show discontent with economic reforms that have led to rampant inflation and inflicted increasing hardship on ordinary Nigerians. President Bola Tinubu has vowed to pursue the changes that he says are needed to keep the country afloat.



Authorities deployed armed security personnel in an effort to preempt potential violence.



In Lagos, armed police watched as protesters marched towards the government house and then proceeded to two locations that were authorised for the protest. Some shopping malls in the city were shut and guarded by a heavy police presence.



Inspired by protests in Kenya in June that led to the government there scrapping some planned tax increases, Nigerians are mobilizing online to demand the reinstatement of subsidies for petrol and electricity, free primary and secondary education and measures to combat insecurity, among other demands.



In Abuja, the military mounted roadblocks along the highway leading into town, while some protesters gathered at a stadium.



Youths demonstrated in the city of Maiduguri, the hotbed of a militant insurgency in the northeast of the country, in the face of a heavy security presence, to voice their frustration at the government and its policies.



<h2 class="wp-block-heading" id="h-tinubu-reforms">TINUBU REFORMS</h2>



The government said before the protests it was open to dialogue.



Tinubu has asked citizen to bear with his reforms, but citizen complain that politicians are not making enough sacrifices themselves.



After taking office more than a year ago, Tinubu removed some fuel subsidies, devalued the naira currency and later hiked electricity tariffs, moves that have sent inflation soaring past 34%, eroding incomes.



Consumer inflation rose to a new 28-year high of 34.19% in annual terms in June.



Nigerians are also grappling with widespread insecurity, which has damaged the farming sector, while armed gangs kidnap residents and school children for ransom in the north.



Labour unions have led previous protests. But Thursday&#8217;s march was mostly by unemployed youth &#8211; introducing a new element for the government trying to lessen the impact of its economic policies



Tinubu signed a new minimum wage into law on Monday to help workers cope with hardship caused by his economic changes, but many of the country&#8217;s 200 million people are either self-employed or do not have jobs.



(Additional reporting by Camillus Eboh in Abuja and Ahmed Kingimi in MaiduguriWriting by Chijioke OhuochaEditing by Bate Felix and Frances Kerry)

FILE PHOTO: Nigerians protest against the high cost of living in Lagos

Protesters in Nigeria demonstrate over high cost of living

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="520" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/08/KX46IZCR5JJZLHMSIBYSC4M6LY-1-820x520.jpg" alt="" class="wp-image-513757" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/08/KX46IZCR5JJZLHMSIBYSC4M6LY-1-820x520.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/KX46IZCR5JJZLHMSIBYSC4M6LY-1-300x190.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/KX46IZCR5JJZLHMSIBYSC4M6LY-1-142x90.jpg 142w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/KX46IZCR5JJZLHMSIBYSC4M6LY-1-768x487.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/KX46IZCR5JJZLHMSIBYSC4M6LY-1-1536x975.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/KX46IZCR5JJZLHMSIBYSC4M6LY-1-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">A person works at &#8221;The Faktory&#8221;, a fashion design and clothing manufacturing company in Johannesburg, South Africa, March 4, 2021. REUTERS/Siphiwe Sibeko</figcaption></figure>



JOHANNESBURG, Aug 1 (Reuters)&nbsp;&#8211;&nbsp;South African manufacturing activity rose in July, a Purchasing Managers&#8217; Index (PMI) survey showed on Thursday,&nbsp;as both domestic and global demand picked up.



The seasonally-adjusted PMI for the factory sector was at 52.4 points in July compared to 45.7 in June. A reading above the 50-point mark shows growth.



&#8220;In these months (May and June), significant policy uncertainty remained and hurt demand,&#8221; local bank Absa, which sponsors the survey, said in a statement, referring to South Africa&#8217;s national election in May and its aftermath.



The business activity sub-index and new sales orders also rose in July.



&#8220;The improvements suggest that on-hold orders are now being realised and translated into better activity,&#8221; Absa said.



(Reporting by Bhargav Acharya; Editing by Bate Felix and Gareth Jones)

A person works at ”The Faktory”, in Johannesburg

South African factory activity rises in July – Absa PMI

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/08/107375514-1708434236970-gettyimages-1985552002-20240207_bank_of_england_010-820x547.jpeg" alt="" class="wp-image-513752" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/08/107375514-1708434236970-gettyimages-1985552002-20240207_bank_of_england_010-820x547.jpeg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/107375514-1708434236970-gettyimages-1985552002-20240207_bank_of_england_010-300x200.jpeg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/107375514-1708434236970-gettyimages-1985552002-20240207_bank_of_england_010-135x90.jpeg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/107375514-1708434236970-gettyimages-1985552002-20240207_bank_of_england_010-768x512.jpeg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/107375514-1708434236970-gettyimages-1985552002-20240207_bank_of_england_010-1536x1024.jpeg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/107375514-1708434236970-gettyimages-1985552002-20240207_bank_of_england_010-scaled.jpeg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">Blurred buses pass the Bank of England in the City of London on 7th February 2024 in London, United Kingdom.  Mike Kemp | In Pictures | Getty Images</figcaption></figure>



LONDON — Several analysts expect the Bank of England to announce an interest rate cut on Thursday, but a lack of clear signaling from the central bank has shrouded the decision in uncertainty.



Markets were pricing in a 61% probability of a 25-basis-point reduction of its key rate at the August meeting as of 8:15 a.m. in London, despite U.K. inflation hitting the BOE’s 2% target for two straight months.



The Bank Rate has been held at a 16-year high of 5.25% since August 2023.



The BOE typically provides less forward guidance than some other central banks, but the Thursday decision is viewed as an especially close call, given the recent six-week period in which its communications were restricted because of the U.K. general election.



While recent breakdowns have seen two votes for a rate cut and seven for a hold, some of the BOE’s more hawkish policymakers have been vocal about their concerns over wage growth and sticky services inflation.



The decision will be announced at midday U.K. time and will be followed by a press conference. Thursday will also see the release of the quarterly Monetary Policy Report, which will contain economic growth and inflation projections.



This is a developing story&#8230;

107375514-1708434236970-gettyimages-1985552002-20240207_bank_of_england_010

Bank of England to make knife-edge call on interest rates as markets favor cut

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/08/GettyImages-2163954491-820x547.jpg" alt="" class="wp-image-513690" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/08/GettyImages-2163954491-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/GettyImages-2163954491-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/GettyImages-2163954491-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/GettyImages-2163954491-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/GettyImages-2163954491-1536x1024.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/GettyImages-2163954491-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">PARAGUAY &#8211; 2024/07/30: In this photo illustration, the Artificial intelligence (AI) text logo seen in the background with a silhouette hand holding a smartphone. (Photo Illustration by Jaque Silva/SOPA Images/LightRocket via Getty Images)</figcaption></figure>



The European Union’s landmark artificial intelligence law officially enters into force Thursday — and it means tough changes for American technology giants.



The AI Act, a landmark rule that aims to govern the way companies develop, use and apply AI, was given final approval by EU member states, lawmakers, and the European Commission — the executive body of the EU — in May.



CNBC has run through all you need to know about the AI Act — and how it will affect the biggest global technology companies.



<h2 class="wp-block-heading" id="h-what-is-the-ai-act"><a></a>What is the AI Act?</h2>



The AI Act is a piece of EU legislation governing artificial intelligence. First proposed by the European Commission in 2020, the law aims to address the negative impacts of AI.



It will primarily target large U.S. technology companies, which are currently the primary builders and developers of the most advanced AI systems.



However, plenty other businesses will come under the scope of the rules — even non-tech firms.



The regulation sets out a comprehensive and harmonized regulatory framework for AI across the EU, applying a risk-based approach to regulating the technology.



Tanguy Van Overstraeten, head of law firm Linklaters’ technology, media and technology practice in Brussels, said the EU AI Act is “the first of its kind in the world.”



“It is likely to impact many businesses, especially those developing AI systems but also those deploying or merely using them in certain circumstances.”



The legislation applies a risk-based approach to regulating AI which means that different applications of the technology are regulated differently depending on the level of risk they pose to society.



For AI applications deemed to be “high-risk,” for example, strict obligations will be introduced under the AI Act. Such obligations include adequate risk assessment and mitigation systems, high-quality training datasets to minimize the risk of bias, routine logging of activity, and mandatory sharing of detailed documentation on models with authorities to assess compliance.



Examples of high-risk AI systems include autonomous vehicles, medical devices, loan decisioning systems, educational scoring, and remote biometric identification systems.



The law also imposes a blanket ban on any applications of AI deemed “unacceptable” in terms of their risk level.



Unacceptable-risk AI applications include “social scoring” systems that rank citizens based on aggregation and analysis of their data, predictive policing, and the use of emotional recognition technology in the workplace or schools.



<h2 class="wp-block-heading"><a></a>What does it mean for U.S. tech firms?</h2>



U.S. giants like Microsoft, Google, Amazon, Apple, and Meta have been aggressively partnering with and investing billions of dollars into companies they think can lead in artificial intelligence amid a global frenzy around the technology.



Cloud platforms such as Microsoft Azure, Amazon Web Services and Google Cloud are also key to supporting AI development, given the huge computing infrastructure needed to train and run AI models.



In this respect, Big Tech firms will undoubtedly be among the most heavily-targeted names under the new rules.



“The AI Act has implications that go far beyond the EU. It applies to any organisation with any operation or impact in the EU, which means the AI Act will likely apply to you no matter where you’re located,” Charlie Thompson, senior vice president of EMEA and LATAM for enterprise software firm Appian, told CNBC via email.



“This will bring much more scrutiny on tech giants when it comes to their operations in the EU market and their use of EU citizen data,” Thompson added



Meta has already restricted the availability of its AI model in Europe due to regulatory concerns — although this move wasn’t necessarily the due to the EU AI Act.



The Facebook owner earlier this month said it would not make its LLaMa models available in the EU, citing uncertainty over whether it complies with the EU’s General Data Protection Regulation, or GDPR.



The company was previously ordered to stop training its models on posts from Facebook and Instagram in the EU due to concerns it may violate GDPR.



<h2 class="wp-block-heading"><a></a>How is generative AI treated?</h2>



Generative AI is labelled in the EU AI Act as an example of “general-purpose” artificial intelligence.



This label refers to tools that are meant to be able to accomplish a broad range of tasks on a similar level — if not better than — a human.



General-purpose AI models include, but aren’t limited to, OpenAI’s GPT, Google’s Gemini, and Anthropic’s Claude.



For these systems, the AI Act imposes strict requirements such as respecting EU copyright law, issuing transparency disclosures on how the models are trained, and carrying out routine testing and adequate cybersecurity protections.



Not all AI models are treated equally, though. AI developers have said the EU needs to ensure open-source models — which are free to the public and can be used to build tailored AI applications — aren’t too strictly regulated.



Examples of open-source models include Meta’s LLaMa, Stability AI’s Stable Diffusion, and Mistral’s 7B.



The EU does set out some exceptions for open-source generative AI models.



But to qualify for exemption from the rules, open-source providers must make their parameters, including weights, model architecture and model usage, publicly available, and enable “access, usage, modification and distribution of the model.”



Open-source models that pose “systemic” risks will not count for exemption, according to the AI Act.



It’s “necessary to carefully assess when the rules trigger and the role of the stakeholders involved,” he [who said this?] said.



<h2 class="wp-block-heading"><a></a>What happens if a company breaches the rules?</h2>



Companies that breach the EU AI Act could be fined between 35 million euros ($41 million) or 7% of their global annual revenues — whichever amount is higher — to 7.5 million or 1.5% of global annual revenues.



The size of the penalties will depend on the infringement and size of the company fined.



That’s higher than the fines possible under the GDPR, Europe’s strict digital privacy law. Companies faces fines of up to 20 million euros or 4% of annual global turnover for GDPR breaches.



Oversight of all AI models that fall under the scope of the Act — including general-purpose AI systems — will fall under the European AI Office, a regulatory body established by the Commission in February 2024.



Jamil Jiva, global head of asset management at&nbsp;fintech firm Linedata, told CNBC the EU “understands that they need to hit offending companies with significant fines if they want regulations to have an impact.”



Similar to how GDPR demonstrated the way the EU could “flex their regulatory influence to mandate data privacy best practices” on a global level, with the AI Act, the bloc is again trying to replicate this, but for AI, Jiva added.



Still, it’s worth noting that even though the AI Act has finally entered into force, most of the provisions under the law won’t actually come into effect until at least 2026.



Restrictions on general-purpose systems won’t begin until 12 months after the AI Act’s entry into force.



Generative AI systems that are currently commercially available — like OpenAI’s ChatGPT and Google’s Gemini — are also granted a “transition period” of 36 months to get their systems into compliance.

In this photo illustration, the Artificial intelligence (AI

World’s first major AI law enters into force — here’s what it means for U.S. tech giants

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/07/GettyImages-1815421853-820x547.jpg" alt="" class="wp-image-510612" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/07/GettyImages-1815421853-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/GettyImages-1815421853-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/GettyImages-1815421853-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/GettyImages-1815421853-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/GettyImages-1815421853-1536x1024.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/GettyImages-1815421853-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">President of Kenya William Ruto during the United Nations Climate Change Conference COP28 High Level Segment meeting in Dubai, United Arab Emirates on December 1, 2023. (Photo by Jakub Porzycki/NurPhoto via Getty Images)</figcaption></figure>



NAIROBI, July 31 (Reuters) &#8211; Kenya&#8217;s Court of Appeal on Wednesday declared the government&#8217;s 2023 finance law unconstitutional, inflicting a new blow to the government of President William Ruto who withdrew this year&#8217;s finance bill after deadly protests.



The finance bills, which are presented to parliament at the start of every financial year, are the main vehicle for the government to set out its revenue-raising measures including tax hikes and the introduction of new levies.



The 2023 version was challenged in court following a round of political opposition-led street protests that turned violent, after Ruto&#8217;s government used it to double the value added tax on fuel, introduce a housing tax, and raise the top personal income tax rate, among other measures.



&#8220;A further declaration is hereby issued that the failure to comply with this constitutional dictate renders the entire Finance Act, 2023 unconstitutional,&#8221; a three-judge bench of the Court of Appeal said in a ruling.



The court&#8217;s verdict was in respect of an appeal of another one from the High Court late last year, which largely left the finance bill intact, only striking out the housing levy.



The government pushed through a new law to allow it to continue collecting the housing tax after that ruling and that law is also being challenged in court.



The government, which has been relying on the 2023 finance law to continue collecting taxes after Ruto withdrew this year&#8217;s bill, did not immediately comment on the ruling.



The government can appeal the Court of Appeal ruling at the Supreme Court, which is the highest court.



Reuters could not reach the office of the Chief Minister Musalia Mudavadi for comment. The top official at the finance ministry, Chris Kiptoo, did not respond to requests for comment.



Ruto has nominated a new finance minister after he fired all ministers but one in response to the youth-led violent protests that started last month.



Ruto says the higher taxes are necessary to enable the government to fund development programmes while paying off a heavy public debt load that currently exceeds the recommended level by the International Monetary Fund and the World Bank.



The government has submitted a new economic plan to the IMF and it expects the board of the fund to consider it at the end of August.



(Writing by Duncan Miriri; Editing by George Obulutsa and Mark Potter)

COP28 In Dubai High Level Segment

Kenyan court nullifies 2023 finance law in new blow to President Ruto

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/07/GettyImages-1853257074-820x547.jpg" alt="" class="wp-image-513290" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/07/GettyImages-1853257074-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/GettyImages-1853257074-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/GettyImages-1853257074-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/GettyImages-1853257074-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/GettyImages-1853257074-1536x1024.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/GettyImages-1853257074-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">ACCRA, GHANA &#8211; DECEMBER 13: H.E. President Nana Akufo-Addo of Ghana, speaks at the Diaspora Engagement Policy launch at the Jubilee House on December 13, 2023 in Accra, Ghana.The Diaspora Engagement Policy (DEP), for the first time in the history of the country of Ghana, was developed to provide the necessary framework within which the Ghanian Diaspora can be constructively engaged in political, social, economic and cultural discourse towards the effective mobilization and coordination of their contributions to the national development process. (Photo by Robert Okine/Getty Images)</figcaption></figure>



ACCRA, July 31 (Reuters)&nbsp;&#8211;&nbsp;A high court in Ghana has blocked civil society groups from holding protests in the capital Accra, one of the organisers said, joining other African governments in trying to quell youth-led demonstrations over the high cost of living.



Organisers said the protests would draw over two million people onto the streets to demand more action from President Nana Akufo-Addo on corruption and living conditions, as well as to protest delays in signing an anti-LGBT bill into law.



High court Justice Abena Afia Serwaa approved a request by Ghana&#8217;s police to ban a handful of organisations from carrying out protests planned between July 31 and August 6 after the police said it lacked the personnel necessary to provide security as officers have been deployed to political rallies amid election campaigning for elections.



A wave of youth demonstrations has swept across several African countries in recent weeks.



In Kenya, more than 50 people have been killed and nearly 700 arrested in a police crackdown on demonstrations since mid-June, when protesters began taking to the streets to oppose tax increases proposed by President William Ruto, according to the government-funded Kenya National Commission on Human Rights (KNCHR).



Ruto has fired his cabinet and scrapped the tax bill.



Last week, young people in Uganda took to the streets to protest against alleged corruption and demand the resignation of the parliament speaker.



Police there shut down a march and arrested more than 70 people, according to a legal aid organisation.



Nigeria, meanwhile, on Saturday offered its young people jobs in the state-oil company and billions of naira worth of grants among other incentives to discourage protests, days before a planned nationwide demonstration over bad governance and a high cost of living.



In Ghana, protest organiser Mensah Thompson said elections should not block citizens from exercising their right to demonstrate.



&#8220;Young people are poised to demonstrate with or without the approval of the authorities,&#8221; he said.



&#8220;A time comes when they will spontaneously jump on the streets and we will have a &#8216;Kenya&#8217; on our hands.&#8221;



Ghana&#8217;s economy buckled after the effects of years of over-stretched borrowing were exacerbated by the COVID-19 pandemic, the knock-on impacts of the war in Ukraine and higher global interest rates.



The gold, cocoa and oil producer has been restructuring most of its $30 billion external debt to be able to implement a $3 billion, three-year International Monetary Fund bailout programme and emerge from its worst economic crisis in a generation.



Ghanaians head to the polls in December to elect legislators and a replacement to President Akufo-Addo in an election expected to be keenly contested.



(Editing by Portia Crowe; editing by Miral Fahmy)

featured

Nigerian protests fizzle out amid deadly police crackdown

A global stock rout is deepening with investors fleeing to safe havens

European markets plunge 2.7% as global volatility deepens; tech stocks shed 4.7%

Crypto selloff wipes out $270 billion in value as bitcoin, ether plunge

U.S. jobs growth totals 114,000 in July, much less than expected, as unemployment rate rises to 4.3%

Ethiopia to save $4.9 bln from debt restructuring, state minister says

European markets lower amid global sell-off; technology, financial stocks tumble

Nigerian police may seek army help after violent protests

Olympics-IOC saddened by ‘aggression’ against boxers over gender row

Here’s everything you need to know about Friday’s big jobs report

Ethiopian local authorities crack down on price hikes after currency float

Protesters in Nigeria demonstrate over high cost of living

South African factory activity rises in July – Absa PMI

Bank of England to make knife-edge call on interest rates as markets favor cut

World’s first major AI law enters into force — here’s what it means for U.S. tech giants

Kenyan court nullifies 2023 finance law in new blow to President Ruto

Ghana court bans planned protests against cost of living

News Tips

Advertise With Us

featured

Nigerian protests fizzle out amid deadly police crackdown

A global stock rout is deepening with investors fleeing to safe havens

European markets plunge 2.7% as global volatility deepens; tech stocks shed 4.7%

Crypto selloff wipes out $270 billion in value as bitcoin, ether plunge

U.S. jobs growth totals 114,000 in July, much less than expected, as unemployment rate rises to 4.3%

Ethiopia to save $4.9 bln from debt restructuring, state minister says

European markets lower amid global sell-off; technology, financial stocks tumble

Nigerian police may seek army help after violent protests

Olympics-IOC saddened by ‘aggression’ against boxers over gender row

Here’s everything you need to know about Friday’s big jobs report

Ethiopian local authorities crack down on price hikes after currency float

Protesters in Nigeria demonstrate over high cost of living

South African factory activity rises in July – Absa PMI

Bank of England to make knife-edge call on interest rates as markets favor cut

World’s first major AI law enters into force — here’s what it means for U.S. tech giants

Kenyan court nullifies 2023 finance law in new blow to President Ruto

Ghana court bans planned protests against cost of living

News Tips

Advertise With Us

Newsletters