<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2023/11/GettyImages-138943787-820x547.jpg" alt="" class="wp-image-428933" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/11/GettyImages-138943787-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2023/11/GettyImages-138943787-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/11/GettyImages-138943787-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2023/11/GettyImages-138943787-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2023/11/GettyImages-138943787-1536x1024.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2023/11/GettyImages-138943787-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">WASHINGTON, DC &#8211; FEBRUARY 14: (AFP OUT) U.S. Vice President Joe Biden (R) and Chinese Vice President Xi Jinping talk during an expanded bilateral meeting with other U.S. and Chinese officials in the Roosevelt Room at the White House February 14, 2012 in Washington, DC. While in Washington, Vice President Xi will meet with Biden, President Barack Obama and other senior Administration officials to discuss a broad range of bilateral, regional, and global issues. (Photo by Chip Somodevilla/Getty Images)</figcaption></figure>



U.S.-China relations, marred in the past year by a series of inflection points, have reached one of the most tense periods perhaps since 1972, when the two nations established diplomatic ties.



A Chinese spy balloon. Close encounters in both the air and the Taiwan Strait. Diplomatic spats over the theft of technology, hacking and trade. A drought of military-to-military talks. Even the lapse of a panda agreement.



All point to worsening relations that will hang over next week’s meeting between President Joe Biden and China’s President Xi Jinping, their first in-person meeting in about a year, and the first time since 2017 that Xi has stepped foot on American soil.



But experts and U.S. officials caution not to expect markedly improved relations post-meeting.



“We should probably keep a pretty low bar in terms of tangible outcomes and deliverables,” said Colleen Cottle, deputy director of the Global China Hub at the Atlantic Council. “This is a meeting that’s probably much more about symbolism and showing a commitment among both leaders to maintain high-level communications and keep communications flowing over the course of the next year.”



Senior U.S. administration officials detailed a handful of agenda items during a briefing with reporters. The leaders are expected to discuss hot-button issues including military communications, human rights and the South China Sea, an official said.



“We’re not talking about a long list of outcomes or deliverables,” a senior administration official told reporters. “The goals here really are about managing the competition, preventing the downside risk of conflict and ensuring channels of communication are open.”



Neither the U.S. nor China appears to be gearing up for a significantly positive swing in relations, experts said.



“I think the administration here is quite clear and sober about the likely outcomes of the meeting,” said Jude Blanchette, a China expert at the Center for Strategic and International Studies during the think tank’s press briefing. “They’ve been working hard to lower expectations. I think you’re seeing something similar on the Chinese side.”



Despite low expectations, the meeting could pave the way for future discussions about solutions to issues that impact both countries, said Thomas Fingar, a China expert at Stanford University and former chairman of the National Intelligence Council. He cautioned against the idea that a summit’s purpose is to solve some “critical, otherwise insoluble problem. It doesn’t work that way very often.”



He explained that in China’s political system, lower-level officials often need explicit clearance from the top.



“For there really to be movement for lower levels of the system to engage in specifics, it needs a refreshed endorsement from Xi,” Fingar said.



The meeting itself, though anticipated, was not formally announced by the White House until Friday. Even in recent days, Chinese officials were hesitant to confirm that Xi would attend the meeting with Biden. In a press briefing on Wednesday, China’s foreign ministry spokesperson Wang Wenbin said it “won’t be&nbsp;plain sailing to San Francisco, nor can we leave it to autopilot to get us there.”



Similarly, when White House press secretary Karine Jean-Pierre was asked during a briefing on Wednesday whether the meeting was “locked in,” she said, “I just don’t have anything confirmed.”



When announcing the meeting, Jean-Pierre said in a statement that the leaders would discuss “issues in the U.S.-PRC bilateral relationship, the continued importance of maintaining open lines of communication, and a range of regional and global issues,” using the abbreviation for the People’s Republic of China.



“I don’t think there’s any indication that things are going to improve between the two sides,” said Oriana Skylar Mastro, a China expert at the American Enterprise Institute. She added that neither country is willing to make “any significant concessions” or policy changes “that would be necessary to put the relationship on a different track.”



There are potential areas to move the needle on U.S.-China relations, experts say. NBC News also previously reported that the U.S. is hoping to announce a commitment from China to cut down on fentanyl coming into the U.S., as well as improve military communications.



Military-to-military communications are intended to cut down on the risk of unintended conflict.



It comes at a time when a historic number of U.S. warplanes have been intercepted by China. There were more than 180 incidents of Chinese aircraft intercepting U.S. planes since the fall of 2021, said Ely Ratner, the assistant secretary of defense for Indo-Pacific security affairs, in a Defense Department release. Ratner said that is higher than the number of incidents that took place the decade before that.



An interception has been deadly in the past. In 2001, a U.S. military plane collided with a Chinese fighter jet over the South China Sea, killing the Chinese pilot. The Chinese government held the American crew for over a week.



“We’ve raised the importance of (military-to-military) channels in nearly every conversation we’ve had with the Chinese,” a senior administration official said in the press briefing. “This is absolutely critical. And when we’re talking about managing risks, about avoiding conflict, this is exactly the sort of communication we need to be having both at senior levels of our two militaries, but also operator to operator.”



The Biden-Xi meeting comes just weeks after China announced that Li Shangfu would no longer serve as defense minister. Li has been sanctioned by the U.S., and experts say his removal could open the door to better relations on military communication.



A defense minister who has not been sanctioned by the U.S. could make it easier to resume military-to-military talks, said David Sacks, a fellow at the Council on Foreign Relations.



The Chinese position during Li’s tenure had been, “Why would he talk if he’s under U.S. sanctions? Remove the sanctions, and then we can have a dialogue,” Sacks said. “And so now, presumably his successor will not be under those sanctions, and therefore you don’t have that impediment towards resuming mil-mil dialogue.”



Biden and Xi’s meeting also comes in the lead-up to Taiwan’s 2024 presidential election in January, followed by the U.S. election. Taiwan is a self-ruling democracy that China claims as its own. U.S. policy maintains that Washington does not support Taiwan’s independence, though there is a policy of strategic ambiguity over how the U.S. would respond if China were to invade the island.



Experts say that during the meeting Biden may warn Xi against interfering in Taiwan’s election, “also to give whoever the winner of the election is an opportunity to put forward a proposal for cross-strait dialogue,” Sacks said.



When a senior administration official was asked during the briefing about how the Taiwanese election may come up in the Biden-Xi meeting, the officials emphasized U.S. opposition to any potential Chinese interference.



“We’ve been clear publicly and privately that interference in the Taiwan election is something we’re extremely concerned about,” a senior administration official said. “And of course, we’ll plan on delivering that message again.”

Vice President Biden Holds Bilateral Meeting With Chinese Vice President Xi Jinping

As Biden and Xi gear up for a high-stakes meeting, experts have low expectations

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="462" src="https://cms.cnbcafrica.com/wp-content/uploads/2022/09/107004870-16427966702022-01-21t201709z_969185203_rc2w3s99wb9o_rtrmadp_0_argentina-imf-mexico-820x462.jpeg" alt="" class="wp-image-420118" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2022/09/107004870-16427966702022-01-21t201709z_969185203_rc2w3s99wb9o_rtrmadp_0_argentina-imf-mexico-820x462.jpeg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2022/09/107004870-16427966702022-01-21t201709z_969185203_rc2w3s99wb9o_rtrmadp_0_argentina-imf-mexico-300x169.jpeg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2022/09/107004870-16427966702022-01-21t201709z_969185203_rc2w3s99wb9o_rtrmadp_0_argentina-imf-mexico-160x90.jpeg 160w, https://cms.cnbcafrica.com/wp-content/uploads/2022/09/107004870-16427966702022-01-21t201709z_969185203_rc2w3s99wb9o_rtrmadp_0_argentina-imf-mexico-768x432.jpeg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2022/09/107004870-16427966702022-01-21t201709z_969185203_rc2w3s99wb9o_rtrmadp_0_argentina-imf-mexico.jpeg 929w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">The new economic measures laid out by the U.K. government “will likely increase inequality”, according to a spokesperson from the International Monetary Fund.
Yuri Gripas | Reuters</figcaption></figure>



JOHANNESBURG, Nov 10 (Reuters) &#8211; Zambia&#8217;s official creditors and the International Monetary Fund have &#8220;expressed reservations&#8221; about a debt restructuring deal the government has reached in principle with an international bondholder group, the finance ministry said Friday.



Zambia and the bondholder group&#8217;s steering committee are continuing talks after the official creditor committee and the IMF voiced their doubts during discussions over the &#8220;last several days&#8221;, the ministry said in a statement, not giving any further detail on the nature of the reservations.



The discussions between the steering committee and the government are taking place under extended non-disclosure agreements, a source familiar with the process said, asking not to be identified as the talks are private.



Zambia defaulted on its external debts three years ago and finally clinched a deal with a bondholder group in late October, less than two weeks after reaching a restructuring agreement with its official creditors, which include China and members of the Paris Club of creditor nations.



The debt rework has been taking place under the G20&#8217;s Common Framework, which has been criticised for long delays and a lack of significant results.



Debtor countries are meant to agree comparable restructuring deals with official and commercial creditors under the process, which was established in 2020 in response to the COVID-19 pandemic.



A spokesperson for the bondholder steering committee declined to comment. The IMF and the Paris Club, the secretariat for developed creditor countries, did not immediately reply to a request for comment.



Zambia&#8217;s existing three international bonds had rallied after the bondholder deal was announced. The proposal foresees issuing&nbsp;two new &#8220;amortising&#8221; bonds scheduled to mature in 2035 and 2053 and together worth $3.135 billion &#8211; more than the&nbsp;$3 billion&nbsp;face value of the current outstanding Eurobond debt.



If the copper producers&#8217; economy performs better than expected,&nbsp;both official creditors and bondholders will be paid more.



Some analysts noted that bondholders would be receiving more than $500 million in amortisation for 2024-2025, plus over $100 million in annual interest payments, under the &#8220;base case&#8221; scenario, while official creditors had granted a three year grace period and lower interest rates than bondholders.



In this scenario,&nbsp;bondholders would receive 73 cents for every $1 lent compared to 55 cents for official creditors, and 97 and 79 cents respectively if Zambia&#8217;s economy performs better, campaign groups Debt Justice and the Zambian Civil Society Debt Alliance, said in an analysis published on Friday.



Zambia&#8217;s bonds slipped on Friday, with the note maturing in 2024 down more than&nbsp;1.1 cents&nbsp;on the dollar to below 63 cents&nbsp;XS1056386714=TE.



(Reporting by Rachel Savage; Additional reporting by Bhargav Acharya, and Leigh Thomas in Paris; editing by Jason Neely and Toby Chopra)

107004870-16427966702022-01-21t201709z_969185203_rc2w3s99wb9o_rtrmadp_0_argentina-imf-mexico

Zambia official creditors, IMF voice ‘reservations’ on bondholder deal

<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="612" height="350" src="https://cms.cnbcafrica.com/wp-content/uploads/2021/04/istockphoto-1040865674-612x612-1.jpg" alt="" class="wp-image-400879" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2021/04/istockphoto-1040865674-612x612-1.jpg 612w, https://cms.cnbcafrica.com/wp-content/uploads/2021/04/istockphoto-1040865674-612x612-1-300x172.jpg 300w" sizes="auto, (max-width: 612px) 100vw, 612px" /><figcaption class="wp-element-caption">Stock market report. 3d illustration</figcaption></figure>



Nov 10 (Reuters)&nbsp;&#8211;&nbsp;Emerging markets stocks and currencies fell on Friday, mirroring global sentiment after the U.S. central bank chief&#8217;s hawkish comments fuelled fears of further rate hikes and a weak auction of 30-year Treasury bonds dampened risk appetite.



The MSCI index tracking emerging markets equities&nbsp;.MSCIEF&nbsp;fell nearly 1% by 1004 GMT, while a basket of regional currencies&nbsp;.MIEM00000CUS&nbsp;weakened 0.3% against a steady dollar.



Both equities and FX were on track for weekly losses, after a bright start to the opening week of November.



Wall-Street stocks ended lower on Thursday and global equities followed suit on Friday.&nbsp;MKTS/GLOB



The dollar&nbsp;=USD&nbsp;and the yields on benchmark U.S. 10-year Treasury bonds&nbsp;US10YT=RR&nbsp;spiked on Thursday after a weaker-than-expected 30-year bond auction and hawkish remarks from the Fed.



Fed officials&nbsp;including Powell said on Thursday they are still not sure interest rates are high enough to finish the battle with inflation.



&#8220;Powell’s remarks probably represent the culmination of a pushback against the recent dovish repricing,&#8221; Francesco Pesole, FX strategist at ING said in a note.



&#8220;The hawkish rhetoric pushed by Powell suggests that the Fed still prefers higher Treasury yields doing the tightening rather than hiking again, and that is exactly what markets are interpreting.&#8221;



Most emerging market stocks and currencies in Asia were in the red.



Heavyweight China&#8217;s shares&nbsp;.SSEC&nbsp;fell 0.5%, while its blue-chip index&nbsp;.CSI300&nbsp;dropped 0.7%. The yuan&nbsp;CNY=CFXS&nbsp;slipped 0.1%



Hong Kong stocks&nbsp;.HSI&nbsp;fell 1.8%, leading equity declines.



In Central and Eastern Europe,&nbsp;Hungary&#8217;s&nbsp;headline inflation slowed to an annual 9.9% in October, entering single-digit territory for the first time since April 2022 and below analyst forecasts for a 10.4% increase.



Hungary&#8217;s benchmark stock index&nbsp;.BUX&nbsp;gained 0.7%, while the forint&nbsp;EURHUF=&nbsp;jumped to its highest levels since late July and was last seen at 0.8% higher against the euro.



Czech&nbsp;headline inflation accelerated to 8.5% year-on-year in October, above a Reuters poll forecast of 8.4%. PX Prague SE index&nbsp;.PX&nbsp;declined 0.2% and the crown&nbsp;EURCZK=&nbsp;gained 0.3%.



A slew of data is due later in the day, with October inflation data coming in from both Brazil and Russia, while industrial output for September will be released by India and Mexico.



Turkish President&nbsp;Tayyip Erdogan criticised the Constitutional Court for &#8220;many mistakes&#8221; and urged his ruling AK Party colleagues to support an unprecedented challenge to the court by an appeals court, stoking a potential legal crisis.



Overnight in Latin America,&nbsp;Banxico&nbsp;kept its benchmark interest rate unchanged as expected at 11.25%.



(Reporting by Siddarth S in Bengaluru)

Stock market report. 3d illustration

EM assets set for weekly declines after Powell’s hawkish remarks

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="461" src="https://cms.cnbcafrica.com/wp-content/uploads/2023/11/107304015-1695236207011-gettyimages-1677964220-AFP_33VU6J4-820x461.jpeg" alt="" class="wp-image-428898" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/11/107304015-1695236207011-gettyimages-1677964220-AFP_33VU6J4-820x461.jpeg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2023/11/107304015-1695236207011-gettyimages-1677964220-AFP_33VU6J4-300x169.jpeg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/11/107304015-1695236207011-gettyimages-1677964220-AFP_33VU6J4-160x90.jpeg 160w, https://cms.cnbcafrica.com/wp-content/uploads/2023/11/107304015-1695236207011-gettyimages-1677964220-AFP_33VU6J4-768x432.jpeg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2023/11/107304015-1695236207011-gettyimages-1677964220-AFP_33VU6J4-1536x864.jpeg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2023/11/107304015-1695236207011-gettyimages-1677964220-AFP_33VU6J4.jpeg 1600w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">Photo: via CNBC</figcaption></figure>



Federal Reserve Chairman Jerome Powell said Thursday that he and his fellow policymakers are encouraged by the slowing pace of inflation but are unsure whether they’ve done enough to keep the momentum going.



Speaking a little more than a week after the central bank voted to hold benchmark policy rates steady, Powell said in remarks for an International Monetary Fund audience in Washington, D.C., that more work could be ahead in the battle against high prices.



“The Federal Open Market Committee is committed to achieving a stance of monetary policy that is sufficiently restrictive to bring inflation down to 2 percent over time; we are not confident that we have achieved such a stance,” he said in his prepared speech.



For the second time in recent weeks, a public address from Powell was interrupted by climate protesters. He briefly left the stage before resuming.



The speech comes with inflation still well above the Fed’s long-standing goal but also considerably below its peak levels in the first half of 2022. In a series of 11 rate hikes that constituted the most aggressive policy tightening since the early 1980s, the committee took its benchmark rate from near zero to a target range of 5.25%-5.5%.



Those increases have coincided with the Fed’s preferred inflation gauge, the core personal consumption expenditures price index, to fall to an annual rate of 3.7%, from 5.3% in February 2022. The more widely followed consumer price index peaked above 9% in June of last year.



Powell said that inflation is “well above” where the Fed would like to see it while describing policy as “significantly restrictive.”



“My colleagues and I are gratified by this progress but expect that the process of getting inflation sustainably down to 2 percent has a long way to go,” he said. “We will keep at this until we succeed,” he later added, saying the Fed is focused on whether rates need to go higher and how long they need to stay elevated.



Stocks headed lower after the speech, with the Dow Jones Industrial Average down close to 200 points. Treasury yields lurched higher after declining for most of the past three weeks, propelled up in large part after a poorly received 30-year bond auction.



“Chairman Powell issued a warning to investors too giddy on the prospect of rate cuts next year,” said Jeffrey Roach, chief economist at LPL Financial. “The Fed will be true to its mandate and hike further should inflation reaccelerate.”



As he has in recent speeches, Powell stressed that the Fed nevertheless can be cautious as the risks between doing too much and too little have come into closer balance. He said the Fed is attuned to the rise in Treasury yields.



“If it becomes appropriate to tighten policy further, we will not hesitate to do so,” he said. “We will continue to move carefully, however, allowing us to address both the risk of being misled by a few good months of data, and the risk of overtightening.”



“Monetary policy is generally working the way we think it should work” Powell said during a discussion following his speech.



Markets are largely convinced the Fed is through hiking rates.



Futures pricing, according to the CME Group, indicates less than a 10% probability that the FOMC will approve a final rate hike at its Dec. 12-13 meeting, even though committee members in September penciled in an additional quarter percentage point rise before the end of the year.



Traders anticipate the Fed will start cutting next year, probably around June.



Powell noted the progress the economy has made. Gross domestic product accelerated at a “quite strong” 4.9% annualized pace in the third quarter, though Powell said the expectation is for growth to “moderate in coming quarters.” He described the economy as “just remarkable” in 2023 in the face of a broad consensus that a recession was inevitable.



Unemployment remains low, though the jobless rate has risen half a percentage point this year, a move commonly associated with recessions.



But Powell noted that the Fed is “attentive” that stronger-than-expected growth could undermine the fight against inflation and “warrant a response from monetary policy.”



He also pointed out that improvements in supply chains have helped ease inflation pressures, but “it is not clear how much more will be achieved by additional supply-side improvements. Going forward, it may be that a greater share of the progress in reducing inflation will have to come from tight monetary policy restraining the growth of aggregate demand.”



The remarks are part of a broader presentation he is giving to the Jacques Polak Annual Research Conference. One broad policy topic he addressed was the challenge posed by keeping rates anchored near zero, where they were before the inflation surge. Powell said it is “too soon” to say whether zero-rate challenges are “a thing of the past.”

107304015-1695236207011-gettyimages-1677964220-AFP_33VU6J4

Powell says Fed is ‘not confident’ it has done enough to bring inflation down

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="562" src="https://cms.cnbcafrica.com/wp-content/uploads/2023/11/T2LOGOQBKFIEPEGTHBNPHB6NEU-820x562.jpg" alt="" class="wp-image-428891" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/11/T2LOGOQBKFIEPEGTHBNPHB6NEU-820x562.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2023/11/T2LOGOQBKFIEPEGTHBNPHB6NEU-300x206.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/11/T2LOGOQBKFIEPEGTHBNPHB6NEU-131x90.jpg 131w, https://cms.cnbcafrica.com/wp-content/uploads/2023/11/T2LOGOQBKFIEPEGTHBNPHB6NEU-768x526.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2023/11/T2LOGOQBKFIEPEGTHBNPHB6NEU-1536x1053.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2023/11/T2LOGOQBKFIEPEGTHBNPHB6NEU-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">FILE PHOTO: U.S. Deputy Treasury Secretary Wally Adeyemo speaks at the Royal United Services Institute in London, Britain, October 27, 2023. REUTERS/Hannah McKay/File Photo</figcaption></figure>



NEW YORK, Nov 9 (Reuters)&nbsp;&#8211;&nbsp;U.S. Deputy Treasury Secretary Wally Adeyemo on Thursday said he hoped Congress would extend a trade program that grants exports from qualifying African countries duty-free access to the U.S. market, hailing the strategic opportunities in the region.



Adeyemo told the Reuters NEXT conference that the two-decade-old African Growth and Opportunity Act (AGOA), which is due to expire in 2025, had played an important in Africa and should be extended.



&#8220;My hope is that Congress will act to make sure that we continue to have tools that allow us to deepen our trade with Africa,&#8221; he said.



&#8220;It matters to us. We need to seize the huge opportunity that it is for us to engage with Africa, a continent with a burgeoning young population that is central to many of our economic, but national security interests as well.&#8221;



Adeyemo did not comment specifically on legislation proposed by Democratic Senator Chris Coons that would extend the program for 16 years to 2041.



African countries are pressing for at least a 10-year renewal of the pact ahead of the 2024 U.S. election. President Joe Biden&#8217;s administration is also seeking the program&#8217;s reauthorization but has called for certain reforms.



More than $10 billion worth of African exports entered the United States duty-free under the program in 2022. The pact has bipartisan support in Washington, but there are divisions on how to update it.



Adeyemo, who was born in Nigeria and grew up in California, said he met with U.S. companies that have investments or operations in Nigeria during a visit there in September, and they were pressing for reforms before amping up their stakes.



&#8220;They want to do more business in Nigeria but in order to do so, Nigeria has to make the type of economic reforms that make it easier for foreign direct investment to come in and for money to get out,&#8221; said Adeyemo, the highest-ranking member of the African diaspora in the Biden administration.



His visit to Africa followed those of other top officials, including Treasury Secretary Janet Yellen and Vice President Kamala Harris.



He said Nigeria&#8217;s population was slated to grow from 200 million today to 450 million by 2050, creating both challenges and opportunities, and U.S. firms could contribute to that.



(Reporting by Andrea Shalal; Editing by Michael Perry)

FILE PHOTO: U.S. Deputy Treasury Secretary Wally Adeyemo speaks at the Royal United Services Institute in London

US Treasury’s Adeyemo hopes Congress will extend US-Africa program

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2023/11/KYPCT2NAVBIZBPIHEGCVYRTYLU-1-820x547.jpg" alt="" class="wp-image-428877" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/11/KYPCT2NAVBIZBPIHEGCVYRTYLU-1-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2023/11/KYPCT2NAVBIZBPIHEGCVYRTYLU-1-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/11/KYPCT2NAVBIZBPIHEGCVYRTYLU-1-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2023/11/KYPCT2NAVBIZBPIHEGCVYRTYLU-1-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2023/11/KYPCT2NAVBIZBPIHEGCVYRTYLU-1-1536x1025.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2023/11/KYPCT2NAVBIZBPIHEGCVYRTYLU-1-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">Kenyan President William Ruto delivers his speech during the State Banquet at the State House in Nairobi on October 31, 2023. LUIS TATO/Pool via REUTERS/File Photo</figcaption></figure>



NAIROBI, Nov 9 (Reuters)&nbsp;&#8211;&nbsp;Kenya will&nbsp;in December&nbsp;pay back $300 million of a $2 billion Eurobond&nbsp;that falls due next June, President William Ruto said on Thursday.



The East African nation is being watched closely to see how it handles the bond due to its growing debt repayments, weakening currency and a surge in yields that has effectively locked out many frontier economies from markets.



&#8220;I can now confirm &#8230; with confidence that we will and we shall pay the debt that has become a source of much concern to citizens and markets,&#8221; Ruto said in his State of the Nation address to parliament.



Kenya&#8217;s government is spending roughly half its revenue on debt-servicing, squeezing public finances.



(Reporting by George Obulutsa; Editing by Alexander Winning)

KYPCT2NAVBIZBPIHEGCVYRTYLU-1

Kenya to pay back $300 mln of $2 bln bond in December – Ruto

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="546" src="https://cms.cnbcafrica.com/wp-content/uploads/2023/11/2MD722664VMN5HRQWT5KGRONNI-820x546.jpg" alt="" class="wp-image-428868" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/11/2MD722664VMN5HRQWT5KGRONNI-820x546.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2023/11/2MD722664VMN5HRQWT5KGRONNI-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/11/2MD722664VMN5HRQWT5KGRONNI-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2023/11/2MD722664VMN5HRQWT5KGRONNI-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2023/11/2MD722664VMN5HRQWT5KGRONNI-1536x1024.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2023/11/2MD722664VMN5HRQWT5KGRONNI-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">FILE PHOTO: South African Minister of Electricity, Dr Kgosientsho Ramokgopa briefs the media on implementation of the Energy Action Plan, at Tshedimosetso House in Hatfield, Tshwane, South Africa September 26, 2023. Jairus Mmutle/GCIS/Handout via REUTERS/File photo</figcaption></figure>



JOHANNESBURG, Nov 9 (Reuters)&nbsp;&#8211;&nbsp;South Africa will miss its binding 2030 carbon emissions targets under the Paris climate agreement, three senior government officials confirmed, as the country plans to run eight coal-fired power plants for longer than planned.



South Africa is the world&#8217;s 11th biggest greenhouse gas emitter and has one of the world&#8217;s highest per capita emissions.



It had committed under the Paris Climate Accords &#8211; a legally binding treaty on climate change &#8211; to cut emissions to between 350 and 420 million tonnes by 2030, from 442 million tonnes in 2020.



To achieve this, it planned to decommission eight coal-fired power plants, six by 2030 and the remaining by 2034, as power makes up half of its emissions, but switching to a renewable energy policy has been hampered by bureaucratic delays.



Now a power supply crisis makes this target unrealistic, said the officials, all of whom declined to be named because the information was not yet public.



&#8220;Our models suggest we will miss the 2030 target,&#8221; an official in the president&#8217;s office said, although he added that a new decommissioning target for 2035 was being discussed. South Africa has committed to net zero emissions by 2050.



An official from power utility Eskom also confirmed the target would be missed.



The environment ministry, which endorses climate targets, said the country remained committed to achieving its Paris agreement commitments and that it was too early to reach the conclusion that 2030 targets would be missed.



The ministry will be submitting its latest greenhouse gas inventory report to the United Nations before the COP28 summit which starts later this month, it said in an emailed response.



<h2 class="wp-block-heading" id="h-paris-goals-in-peril">PARIS GOALS IN PERIL</h2>



South Africa&#8217;s decision comes as several rich countries and companies are backtracking on climate pledges, and on Wednesday the United Nations said fossil fuel output by 2030 will be more than double levels consistent with the 2015 Paris climate goals.



Canada&#8217;s auditor general on Tuesday said Canada would also miss its 2030 Paris targets. British Prime Minister Rishi Sunak in September delayed a 2030 ban on new petrol car sales by five years.



Global oil and gas behemoths BP BP.L, Shell SHEL.L and Exxon Mobil XOM.N have meanwhile either delayed or abandoned shifting to renewables. Several European countries reopened mothballed coal-fired power plants last year.



&#8220;It is very hard in the middle of a power crisis to be taking working coal-fired plants off the grid,&#8221; Crispian Olver, executive director of the Presidential Climate Commission (PCC), told Reuters in an interview, urging South Africa to shelve the idea until the crisis is solved.



Electricity Minister Kgosientsho Ramokgopa told journalists in August that decommissioning plants must be delayed &#8220;given the crisis &#8230; confronting us of existential proportions.&#8221;



South Africa has been suffering blackouts of sometimes up to 10 hours a day for the past 18 months.



In an emailed response to Reuters questions, a spokesperson for the PCC admitted there were risks attached to extending the life of coal plants, including &#8220;reduced trade competitiveness, reduced access to capital, reduced geo-political influence&#8230; and the potential loss of existing international support.&#8221;



Climate Action Tracker (CAT), an independent body tracking progress towards the Paris Agreement will publish an assessment of countries&#8217; climate goals at COP28, said Catrina Godinho, Climate Specialist at World Bank and a CAT member.



Missing emission targets &#8220;not only contribute to global climate change&#8230; they also negatively affects South Africans who live in areas with high pollution from coal plants,&#8221; she said.



(Reporting by Promit Mukherjee; Editing by Tim Cocks, Michael Perry and Mark Potter)

South African Minister of Electricity, Dr Kgosientsho Ramokgopa briefs the media on implementation of the Energy Action Plan, at Tshedimosetso House in Hatfield

South Africa to miss 2030 emissions goal as it keeps coal plants burning

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="462" src="https://cms.cnbcafrica.com/wp-content/uploads/2023/11/107275996-1690265782638-gettyimages-1568546745-vcg111446786977-820x462.jpeg" alt="" class="wp-image-428864" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/11/107275996-1690265782638-gettyimages-1568546745-vcg111446786977-820x462.jpeg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2023/11/107275996-1690265782638-gettyimages-1568546745-vcg111446786977-300x169.jpeg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/11/107275996-1690265782638-gettyimages-1568546745-vcg111446786977-160x90.jpeg 160w, https://cms.cnbcafrica.com/wp-content/uploads/2023/11/107275996-1690265782638-gettyimages-1568546745-vcg111446786977-768x432.jpeg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2023/11/107275996-1690265782638-gettyimages-1568546745-vcg111446786977.jpeg 929w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">An employee works on the assembly line of LED lighting products in China. Vcg | Visual China Group | Getty Images</figcaption></figure>



China’s consumer prices fell in October, as the world’s second-largest economy struggled with an uneven post-Covid recovery.



Data from China’s National Bureau of Statistics on Thursday showed October consumer price index shrank 0.2% year-on-year, more than the 0.1% decline expected by economists polled by Reuters.



This comes after China’s CPI was unexpectedly flat in September, highlighting the need for further policy support.



Producer prices declined 2.6%, slightly smaller than an expected decline of 2.7% and has been in negative territory for the 13th straight month. China’s PPI was at 2.5% in September, showing factory deflationary pressures remained.



“China is still in a deflationary environment. The domestic demand remains sluggish,” said Zhiwei Zhang, president and chief economist of Pinpoint Asset Management.



Beijing has provided targeted policy support even as recent data suggested growth has remained sluggish. Further hurting consumer confidence is an ongoing debt crisis in two of China’s largest real estate developers. China’s property sector makes up about 30% of its economy.



“With the budget deficit rising and the property developers potentially gaining support from the government, domestic demand will likely improve next year,” Zhang said.



Investors will now be tracking this year’s Singles Day shopping festival, which ends on Nov. 11, to gauge the strength of Chinese consumption.



But excitement about the shopping festival has waned.



“I think this year’s Singles Day sale has not been living up to expectations,” Hao Hong, partner and chief economist at Grow Investment Group told CNBC’s “Squawk Box Asia.”



“Ever since last year, people have stopped spending a lot of money on the Singles Day sale, so it is going to be a muted sales year,” Hong said.

107275996-1690265782638-gettyimages-1568546745-vcg111446786977

China’s consumer prices swing to declines in October

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="615" src="https://cms.cnbcafrica.com/wp-content/uploads/2023/11/48085890627_1aed377e0b_k-820x615.jpg" alt="" class="wp-image-428856" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/11/48085890627_1aed377e0b_k-820x615.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2023/11/48085890627_1aed377e0b_k-300x225.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/11/48085890627_1aed377e0b_k-120x90.jpg 120w, https://cms.cnbcafrica.com/wp-content/uploads/2023/11/48085890627_1aed377e0b_k-768x576.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2023/11/48085890627_1aed377e0b_k-1536x1152.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2023/11/48085890627_1aed377e0b_k.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">Photos: via Flickr</figcaption></figure>



BLANTYRE, Nov 8 (Reuters)&nbsp;&#8211;&nbsp;Malawi&#8217;s central bank said in a notice to authorised dealer banks seen by Reuters that it was devaluing the local kwacha currency&#8217;s exchange rate to the dollar&nbsp;MWK=&nbsp;by about 30% from Thursday.



The notice said the kwacha&#8217;s exchange rate would be adjusted to 1,700 kwacha to the dollar from a selling rate of about 1,180 kwacha to the dollar.



A central bank spokesperson was not immediately available for comment.



It is the second time the southern African country has significantly devalued its currency, after doing so first in May 2022 to prop up dwindling foreign currency reserves pressured by rising commodity prices and declining revenue from tobacco exports.



The notice to banks said the exchange rate adjustment was needed because there were still supply-demand imbalances in the currency market and arbitrage opportunities had resurfaced.



Spot checks on some players indicated that the market was able to clear import bills at the new exchange rate, the central bank said.



&#8220;The Reserve Bank of Malawi will closely monitor developments in the market to avoid disorderly behaviour among market players that may cause excessive volatility,&#8221; it said.



A senior local banker said the move was widely expected.



&#8220;It works in short term and only addresses demand side for now, but what is required is to sort out supply side,&#8221; he said.



(Reporting by Frank Phiri; Additional reporting by Rodrigo Campos in New YorkWriting by Alexander Winning and Nellie PeytonEditing by Sandra Maler)

48085890627_1aed377e0b_k

Malawi central bank to devalue kwacha by about 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/2023/09/IMF-World-Bank-to-proceed-with-annual-meetings-in-Morocco-in-October-820x547.jpg" alt="" class="wp-image-427563" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/09/IMF-World-Bank-to-proceed-with-annual-meetings-in-Morocco-in-October-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2023/09/IMF-World-Bank-to-proceed-with-annual-meetings-in-Morocco-in-October-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/09/IMF-World-Bank-to-proceed-with-annual-meetings-in-Morocco-in-October-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2023/09/IMF-World-Bank-to-proceed-with-annual-meetings-in-Morocco-in-October-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2023/09/IMF-World-Bank-to-proceed-with-annual-meetings-in-Morocco-in-October-1536x1024.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2023/09/IMF-World-Bank-to-proceed-with-annual-meetings-in-Morocco-in-October-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">FILE PHOTO: The International Monetary Fund (IMF) logo is seen outside the headquarters building in Washington, U.S., September 4, 2018. REUTERS/Yuri Gripas/File Photo</figcaption></figure>



FRANKFURT, Nov 8 (Reuters)&nbsp;&#8211;&nbsp;Rapid wage growth in the euro zone could keep inflation elevated longer and the European Central Bank should hold interest rates at or near record highs through next year to extinguish price pressures, the International Monetary Fund said on Wednesday.



The ECB broke a streak of ten straight rate hikes last month, fuelling market expectations that its next move will be a cut, possibly as soon as April, with a total of 90 basis points of reductions priced in by the close of next year.



Pushing back on early rate cut bets, Alfred Kammer, the head of the IMF&#8217;s European Department, argued that the ECB&#8217;s deposit rate should stay close to its record high 4% level through all of next year.



&#8220;Monetary policy is appropriately tight and needs to remain so in 2024,&#8221; Kammer told a news conference. &#8220;For all intents and purposes, (the deposit rate) should be held at that level or close to that level throughout 2024.&#8221;



Kammer warned the ECB against cutting rates too soon because that would require even more costly policy tightening later on.



&#8220;It is less costly to be too tight rather than to be too loose,&#8221; Kammer said. &#8220;What we also want to avoid is premature celebrations.&#8221;



Inflation soared to over 10% a year ago but has been on a steady downward path since, even if the &#8220;last mile&#8221; of disinflation is seen the toughest and could still take two years to get from around 3% to 2%.



While the IMF sees price growth back at target in 2025, an exceptionally tight labour market could push this date back to 2026, it warned.



Unemployment is already at a record low and whatever slack is left in the labour market could be less than now calculated, pushing up wage inflation, which would then impact consumer prices.



Real wages also have some way to go catch up with inflation and this could also keep up the price pressure, the IMF said.



&#8220;Risks remain skewed toward more persistent inflation,&#8221; the IMF said in a report. &#8220;Under adverse assumptions, this could delay reaching inflation targets to 2026.&#8221;



Kammer added that the conflict in Gaza had pushed up global energy costs, which creates further upside risk for prices.



However, overall economic growth in the current quarter is somewhat weaker than projected, which could limit price pressures.



Still, growth is broadly in line with expectations and a &#8220;soft landing&#8221; is still the IMF&#8217;s main scenario rather than a deeper recession, Kammer added.



(Reporting by Balazs Koranyi; Editing by Mark Potter)

FILE PHOTO: The IMF logo is seen outside the headquarters building in Washington

ECB must keep rates at or near 4% through 2024 to get inflation down -IMF

<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="612" height="350" src="https://cms.cnbcafrica.com/wp-content/uploads/2021/04/istockphoto-1040865674-612x612-1.jpg" alt="" class="wp-image-400879" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2021/04/istockphoto-1040865674-612x612-1.jpg 612w, https://cms.cnbcafrica.com/wp-content/uploads/2021/04/istockphoto-1040865674-612x612-1-300x172.jpg 300w" sizes="auto, (max-width: 612px) 100vw, 612px" /><figcaption class="wp-element-caption">Stock market report. 3d illustration</figcaption></figure>



Nov 8 (Reuters)&nbsp;&#8211;&nbsp;Emerging markets stocks and currencies extended declines on Wednesday on fresh fears of further interest rate hikes in the U.S. following a hawkish tone from Fed policymakers, while investors awaited monetary policy decisions of Poland and Romania.



The MSCI index tracking emerging markets equities&nbsp;.MSCIEF&nbsp;fell 0.3% by 0944 GMT.



Fresh from last week&#8217;s decision to hold the policy rate steady, Fed policymakers are weighing strong economic data and the impact of higher long-term bond yields as they consider whether they will need to hike rates further to bring down inflation.



Investors will&nbsp;keenly watch&nbsp;Fed Chair Jerome Powell&#8217;s speech, due later in the day, for cues on the interest rate path.



The dollar index&nbsp;=USD&nbsp;gained 0.3% having fallen last week.



&#8220;The dollar rebound has started to gain some momentum. What has likely offered a hand to the greenback was the generally hawkish comments by Fed members,&#8221; Francesco Pesole, FX Strategist at ING said in a note.



Emerging markets currencies&nbsp;.MIEM00000CUS&nbsp;slipped 0.1% against a firm dollar as the South African rand&nbsp;ZAR=&nbsp;declined 0.7% ahead of Powell&#8217;s speech.



The won KRW=KFTC also fell 0.7%, after gaining earlier in the session, as South Korean authorities announced plans to open the local currency market to global traders and extend trading hours.



Emerging market assets had a bright start to November following the Fed decision as markets bet that U.S. interest rates had peaked, but fresh rate hike fears have worsened risk appetite.



The spotlight will be on Central and Eastern Europe, with crucial interest rate decisions due later in the day from the central banks of Poland and Romania.



The National Bank of Poland is widely expected to cut its main interest rate by 25 basis points to 5.50%, while the Romanian central bank is seen keeping interest rates steady at 7.00%, according to a Reuters poll.



Central Europe&#8217;s currencies face depreciation pressures over the next year amid interest rate cuts and dwindling carry appeal, a Reuters poll showed.



Against the euro, the zloty&nbsp;EURPLN=&nbsp;was flat, while the leu&nbsp;EURRON=&nbsp;edged down 0.1%



Broader equities was further hurt with South Korean shares&nbsp;.KS11&nbsp;falling nearly 1%, extending declines from the previous session.



China&#8217;s blue-chip stocks&nbsp;.CSI300&nbsp;dipped 0.2%, while Hong Kong shares&nbsp;.HSI&nbsp;dropped 0.6%.



Chinese authorities have asked Ping An Insurance Group 2318.HK to take a controlling stake in embattled Country Garden 2007.HK, the nation&#8217;s biggest private property developer, Reuters reported on Wednesday.



Shares of Ping An sank 5.4%, while Country Garden jumped 12.2%.



On the data front, Hungary&#8217;s calendar-adjusted retail sales HURETY=ECI fell by an annual 7.3% in September following an 7.1% drop in August.



The Czech unemployment rate eased to 3.5% of the workforce in October, below a Reuters poll forecast for it to stagnate at 3.6%.



(Reporting by Siddarth S in Bengaluru; Editing by Toby Chopra)

Stocks, FX extend declines on rate hike jitters; Poland, Romania rate decisions due

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="529" src="https://cms.cnbcafrica.com/wp-content/uploads/2023/11/QRXB7CGKVNIKLKXX5KVXPM4SZA-820x529.jpg" alt="" class="wp-image-428833" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/11/QRXB7CGKVNIKLKXX5KVXPM4SZA-820x529.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2023/11/QRXB7CGKVNIKLKXX5KVXPM4SZA-300x193.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/11/QRXB7CGKVNIKLKXX5KVXPM4SZA-140x90.jpg 140w, https://cms.cnbcafrica.com/wp-content/uploads/2023/11/QRXB7CGKVNIKLKXX5KVXPM4SZA-768x495.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2023/11/QRXB7CGKVNIKLKXX5KVXPM4SZA-1536x990.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2023/11/QRXB7CGKVNIKLKXX5KVXPM4SZA-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">Internally displaced Somali children wade through flood waters outside their makeshift shelters following heavy rains at the Al Hidaya camp for the internally displaced people on the outskirts of Mogadishu, Somalia November 6, 2023 REUTERS/Feisal Omar</figcaption></figure>



MOGADISHU, Nov 8 (Reuters)&nbsp;&#8211;&nbsp;The worst flooding to hit Somalia in decades has killed 29 people and forced more than 300,000 to flee their homes, the National Disaster Management Agency said on Wednesday, following heavy rains that have inundated towns across East Africa.



Authorities have scrambled to rescue thousands of stranded people from the floodwater, which comes on the heels of the region&#8217;s worst drought in 40 years.



&#8220;What is going on today is the worst for decades. It is worse than even the 1997 floods,&#8221; said Hassan Isse, managing director of the Somali Disaster Management Agency (SOMDA).



The death toll and numbers of people displaced were likely to rise further, Isse said, because many people were trapped by floodwaters.



&#8220;I do not remember such floods in my life,&#8221; said Mohamed Farah, a local elder in Baidoa city, in southwest Somalia. &#8220;People keep on evacuating looking for high ground.&#8221;



At least 2,400 people have been cut off in Luuq town, where the Jubba River burst its banks, the United Nations has said.



&#8220;Luuq is surrounded by the river and floods are threatening us. People keep fleeing out of the town. Some are still trapped. Our shops have been washed away,&#8221; said Ahmed Nur, a trader in Luuq.



Floods in neighbouring Kenya have killed at least 15 people and submerged a bridge in Uganda, cutting off a road linking Kampala to oilfields in the northwest, the Kenya Red Cross and Uganda&#8217;s road authority said.



The regional deluge was caused by the combined effect of two weather phenomenons, El Niño and the Indian Ocean Dipole, said Nazanine Moshiri, a climate analyst at the International Crisis Group.



El Niño and the Indian Ocean Dipole are climate patterns that impact ocean surface temperatures and cause above-average rainfall.



&#8220;The impact of the flooding is much worse because the soil is so damaged from an unprecedented recent drought &#8211; years of conflict and al Shabaab militia&#8217;s presence also makes building flood defences and resilience more complex and costly,&#8221; Moshiri said.



Scientists say climate change is causing more intense and more frequent extreme weather events. In response, African leaders have proposed new global taxes and reforms to international financial institutions to help fund climate change action.



(Reporting by Abdi Sheikh, Elias Biryabarema and Hereward Holland; Writing by Hereward Holland; Editing by Alex Richardson)

Somalia floods kill 10, displace more than 113,000 a year after drought

Worst floods in decades kill 29 in Somalia, hit towns across East Africa

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="461" src="https://cms.cnbcafrica.com/wp-content/uploads/2023/11/107277394-16904012742023-07-26t194615z_1904631592_rc26b2andezq_rtrmadp_0_usa-stocks-820x461.jpeg" alt="" class="wp-image-428825" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/11/107277394-16904012742023-07-26t194615z_1904631592_rc26b2andezq_rtrmadp_0_usa-stocks-820x461.jpeg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2023/11/107277394-16904012742023-07-26t194615z_1904631592_rc26b2andezq_rtrmadp_0_usa-stocks-300x169.jpeg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/11/107277394-16904012742023-07-26t194615z_1904631592_rc26b2andezq_rtrmadp_0_usa-stocks-160x90.jpeg 160w, https://cms.cnbcafrica.com/wp-content/uploads/2023/11/107277394-16904012742023-07-26t194615z_1904631592_rc26b2andezq_rtrmadp_0_usa-stocks-768x432.jpeg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2023/11/107277394-16904012742023-07-26t194615z_1904631592_rc26b2andezq_rtrmadp_0_usa-stocks-1536x864.jpeg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2023/11/107277394-16904012742023-07-26t194615z_1904631592_rc26b2andezq_rtrmadp_0_usa-stocks.jpeg 1600w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">Central banks look to have hit peak rates. Here’s how markets think they’ll come down</figcaption></figure>



The world’s major central banks paused their interest rate hiking cycles in recent weeks and with data suggesting economies are softening, markets are turning their attention to the first round of cuts.



The U.S. Federal Reserve, European Central Bank and the Bank of England dramatically hiked rates over the last 18 months in a bid to tame runaway inflation.



The Fed on Wednesday held benchmark interest rates steady at a target range of 5.25%-5.5% for the second consecutive meeting after ending a string of 11 hikes in September.



Though Chairman Jerome Powell has been keen to reiterate that the Fed’s work on inflation is not yet done, the annual rise in the consumer price index came in at 3.7% in September, down from a pandemic-era peak of 9.1% in June 2022.



Yet despite Powell’s refusal to close the door on further increases in order to finish the job on inflation, markets interpreted the central bank’s tone as a slightly dovish pivot and rallied on the back of the decision.



The market is now narrowly pricing a first 25 basis point cut from the Fed on May 1, 2024, according to CME Group’s FedWatch tool, with 100 basis points of cuts now expected by the end of next year.



Since last week’s decision, U.S. nonfarm payrolls came in softer than expected for October, with job creation below trend, unemployment rising slightly and a further deceleration in wages. Although headline inflation remained unchanged at 3.7% annually from August to September, the core figure came down to 4.1%, having roughly halved over the last 12 months.



“Core PCE, which is the Fed’s preferred inflation metric, is even lower at 2.5% (3-month, annualized),” noted analysts at DBRS Morningstar.



“The lagged effects of a cooler housing market should reinforce the disinflationary trend over the next few months.”



But despite the dovish data points, short-term U.S. Treasurys reversed course to sell off on Monday, which Deutsche Bank’s Jim Reid chalked up to investors beginning to “wonder if last week’s narrative about rate cuts was overdone.”



“The U.S. economy is also proving more resilient than the U.K. and euro zone,” he said.



“For instance, market pricing for the Fed now implies a 16% chance of another rate hike, up from 11% on Friday,” Reid said in an email Tuesday.



“Moreover, the rate priced in by the December 2024 meeting was up +12.4bps to 4.47%. So there was a clear, albeit partial unwinding of last week’s moves.”



Reid also highlighted that this is the seventh time this cycle that markets have notably reacted on dovish speculation.



“Clearly rates aren’t going to keep going up forever, but on the previous 6 occasions we saw hopes for near-term rate cuts dashed every time. Note that we’ve still got above-target inflation in every G7 country,” he added.



<h3 class="wp-block-heading" id="h-the-ecb">The ECB</h3>



The European Central Bank late last month ended its run of 10 consecutive hikes to keep its benchmark interest rate at a record high of 4%, with euro zone inflation falling to a two-year low of 2.9% in October and the core figure also continuing to decline.



The market is also pricing almost 100 basis point of cuts for the ECB by December 2024, but the first 25 basis point reduction is mostly priced in for April, with economic weakness across the 20-member common currency bloc fueling bets that the central bank will be the first to start unwinding its tight policy position.



Gilles Moëc, group chief economist at AXA, said October’s inflation print confirmed and amplified the message that “disinflation has come in earnest to Europe,” vindicating the ECB’s “new-found prudence.”



“Of course, the current disinflation does not preclude the possibility that a ‘line of resistance’ would be found well above the ECB’s target. Yet, the confirmation that the euro area was flirting with recession last summer reduces this probability,” Moëc said in a research note Monday.



After the October meeting, ECB President Christine Lagarde batted away the suggestion of rate cuts, but National Bank of Greece Governor Yannis Stournaras has since openly discussed the possibility of a reduction in the middle of 2024 provided inflation stabilizes below 3%.



“This implicitly advocates a forward-looking version of monetary policy which takes lags into consideration to calibrate its stance. In clear, waiting for inflation to reach 2% before cutting rates would be ‘overkill,’” Moëc said.



“There is no doubt in our mind that the current dataflow is clearly favouring the doves, but the hawks are far from having given up the fight.”



<h3 class="wp-block-heading">The Bank of England</h3>



The Bank of England on Thursday kept its main policy rate unchanged at 5.25% for a second consecutive meeting after ending a run of 14 straight hikes in September.



However, minutes from last week’s meeting reiterated the Monetary Policy Committee’s expectations that rates will need to stay higher for longer, with the U.K. CPI holding steady at 6.7% in September. Despite this, the market on Monday was pricing around 60 basis points of cuts by December 2024, albeit starting in the second half of the year.



BNP Paribas economists on Thursday noted an “eye-catching” addition to the MPC’s guidance, which said its latest projections indicated that “monetary policy was likely to need to be restrictive for an extended period of time.”



“Governor Andrew Bailey’s comments at the press conference indicated that this guidance was not intended as push-back on the market-implied policy rate path that underpins its latest forecasts, where a 25bp cut is not fully priced in until the second half of 2024,” they said.



“Instead, the intention was to indicate that cuts are not likely to feature as part of the conversation any time soon.”



At Thursday’s news conference, Bailey emphasized the upside risks to the bank’s inflation projections, rather than entertaining any suggestion of cuts on the horizon.



“While we don’t think it is necessarily indicative of a high risk of further hikes in the near term, we read it as a further sign that the MPC is not considering rate cuts and will not do so for a while,” BNP Paribas added.

107277394-16904012742023-07-26t194615z_1904631592_rc26b2andezq_rtrmadp_0_usa-stocks

Central banks look to have hit peak rates. Here’s how markets think they’ll come down

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2023/09/IMF-World-Bank-to-proceed-with-annual-meetings-in-Morocco-in-October-820x547.jpg" alt="" class="wp-image-427563" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/09/IMF-World-Bank-to-proceed-with-annual-meetings-in-Morocco-in-October-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2023/09/IMF-World-Bank-to-proceed-with-annual-meetings-in-Morocco-in-October-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/09/IMF-World-Bank-to-proceed-with-annual-meetings-in-Morocco-in-October-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2023/09/IMF-World-Bank-to-proceed-with-annual-meetings-in-Morocco-in-October-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2023/09/IMF-World-Bank-to-proceed-with-annual-meetings-in-Morocco-in-October-1536x1024.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2023/09/IMF-World-Bank-to-proceed-with-annual-meetings-in-Morocco-in-October-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">FILE PHOTO: The International Monetary Fund (IMF) logo is seen outside the headquarters building in Washington, U.S., September 4, 2018. REUTERS/Yuri Gripas/File Photo</figcaption></figure>



BUDAPEST, Nov 7 (Reuters)&nbsp;&#8211;&nbsp;Big hikes in the minimum wage planned in central Europe for next year raise the risk of more persistent inflation or job losses amid relatively weak productivity growth across the region, the International Monetary Fund (IMF) has warned.



With inflation easing from double-digit levels, the region&#8217;s economies are at a turning point as ebbing price growth nudges real wages back into positive territory, which governments hope will aid consumption and a broader economic recovery next year.



However, that expected boon to the region&#8217;s economies, which have slowed sharply or even contracted due to high inflation, could also pose risks if companies push rising wage costs on to customers with further price hikes.



The Polish minimum wage, already the region&#8217;s highest based on Eurostat data, is set to rise by some 20% next year. Romania&#8217;s government hiked the minimum wage by 10% from October, while Hungary has signalled a possible 10% to 15% increase.



The Czech government has been considering a 9% to 12% raise, which would also surpass the expected pace of inflation next year after a long period falling real wages which has crippled demand and sent the economy into a sustained downturn this year.



Some central banks in the region have responded to weaker price growth by lowering interest rates, led by Poland and Hungary which are still expected to run inflation rates well above their policy targets next year.



While minimum wages since 2019 have largely risen in line with inflation, caution is needed going forward, Geoff Gottlieb, the IMF&#8217;s Senior Regional Representative for Central, Eastern and South-Eastern Europe told Reuters.



&#8220;In some countries in the CEE region, large additional increases in the minimum wage are planned for 2024,&#8221; he said.



&#8220;It is possible that firms will absorb this via lower profits but there is also a risk that these increases will result in more persistent inflation or lower employment, especially given relatively weak productivity growth in the region.&#8221;



The latest data from the Organisation for Economic Co-operation and Development (OECD) showed labour productivity in central Europe&#8217;s main economies lagging the OECD average, with Poland faring best and Romania the worst.



For the right balance, Gottlieb said fiscal policy and other forms of social protection, rather than the minimum wage alone, should be the main tools to support lower-income workers.



He also said overall nominal wage growth in central Europe, which runs some of the European Union&#8217;s tightest labour markets, remained &#8220;very strong&#8221; and had to slow further for inflation to return to central bank targets.



&#8220;This requires that aggregate demand evolves in a way that makes firms less likely to pass on price increases. For this reason it is important that macroeconomic policies do not loosen prematurely or too quickly,&#8221; he said.



The National Bank of Poland, which slashed interest rates by a combined 100 basis points over the past two months ahead of an October 15 parliamentary election, is expected to cut borrowing costs by another 25 bps to 5.5% on Wednesday.



Hungary&#8217;s central bank lowered its base rate by a larger-than-expected 75 bps last month, extending an easing campaign launched in May that has seen rates fall by a combined 575 bps to 12.25% &#8212; still the EU&#8217;s highest benchmark.



In contrast, the Czech National Bank left its key rate steady at 7% last week, defying some market bets on a cut, citing wage-related risks to inflation and calling for restraint in wage deals.



Romania&#8217;s central bank, which is also likely to keep rates unchanged at 7% on Wednesday, has also warned that double-digit wage dynamics were &#8220;particularly high and worrisome&#8221; for inflation.



(Additional reporting by Jan Lopatka in Prague; Editing by Christina Fincher)

IMF warns of inflation risks as central Europe hammers out 2024 wage deals

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="422" src="https://cms.cnbcafrica.com/wp-content/uploads/2023/11/GettyImages-152888615-820x422.jpg" alt="" class="wp-image-428810" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/11/GettyImages-152888615-820x422.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2023/11/GettyImages-152888615-300x154.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/11/GettyImages-152888615-160x82.jpg 160w, https://cms.cnbcafrica.com/wp-content/uploads/2023/11/GettyImages-152888615-768x395.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2023/11/GettyImages-152888615-1536x790.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2023/11/GettyImages-152888615-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">RUSTENBURG, SOUTH AFRICA &#8211; SEPTEMBER 27: (SOUTH AFRICA OUT) Impala Platinum mine workers gather to receive feedback on a new wage deal on September 27, 2012 in Rustenburg, South Africa. A planned visit by expelled ANC Youth League President Julius Malema was cancelled following reports that he might be arrested if he addressed the workers. (Photo by Felix Dlangamandla/Foto24/Gallo Images/Getty Images)</figcaption></figure>



JOHANNESBURG, Nov 7 (Reuters)&nbsp;&#8211;&nbsp;Impala Platinum&nbsp;IMPJ.J&nbsp;said it was offering voluntary job cuts to workers at some of the world&#8217;s deepest platinum mining shafts in South Africa in a bid to cut costs as prices for the metal fall.



The Johannesburg-based platinum miner started the process at its head office last month, and is now extending the exit packages to its sprawling Rustenburg mining complex in North West province, company spokesperson Johan Theron told Reuters.



He declined to say how many jobs the company expects to cut and how much money it plans to save.



&#8220;We are obviously doing everything to reduce costs,&#8221; Theron said. &#8220;Labour is a big cost component so you always start with labour by offering voluntary separation packages.&#8221;



The price for palladium has plunged nearly 40% so far this year while primary metal platinum is down 14%. Demand for particularly palladium has been hit by weakening demand in China.



Longer term, demand for the metals which are used in catalysts that curb vehicle emissions, is threatened by rise in battery electric vehicles.



&#8220;We find ourselves asking how supply will respond in the face of weak prevailing prices,&#8221; BofA Securities analysts said in a note. &#8220;With cash flow under pressure at many mines, we see shutdowns or even permanent closures as likely.&#8221;



Impala rival Sibanye Stillwater SSWJ.J said last month it plans to cut more than 4,000 jobs and close some of its old platinum mining shafts that are running out of commercially viable ore. Anglo American AAL.L said in October it is weighing job cuts at its head offices in South Africa and across the globe in a bid to save costs.



South African platinum mining shafts are among the world&#8217;s deepest, oldest and most expensive to operate. Impala&#8217;s Rustenburg mines are &#8220;scrapping by for now&#8221; and further action could be taken if prices remain low, Theron said.



&#8220;The shafts are not making money, but they are not losing money either, they are just getting by,&#8221; Theron said.Impala is also weighing postponing planned spending at some expansion projects at its Zimplats ZIM.AX and Mimosa units in Zimbabwe as well as Two Rivers and Marula mines in South Africa.



&#8220;We are in a process to reset the organization for a lower price environment,&#8221; Theron said. &#8220;If all the initiatives don’t take you to a point where you can survive, you have to do more.&#8221;



(Reporting by Felix Njini; additional reporting by Nelson Banya; editing by Miral Fahmy and Louise Heavens)

Impala Platinum Mine Workers Strike

Impala Platinum starts voluntary job cuts at South Africa mines

Nestled within Lagos, Nigeria&#8217;s largest city, is a side often overshadowed by skyscrapers and markets. Beyond the urban beat lie spaces for ecotourism enthusiasts, offering sustainable adventures and untamed natural beauty.



In the city&#8217;s heart, wildlife conservation efforts testify to the preservation of ecological treasures. Green environments and protected habitats reveal diverse species thriving, weaving a narrative of coexistence between the city and its wild inhabitants.



Lagos&#8217; ecotourism potential isn&#8217;t just an environmental testament; it&#8217;s a thriving economic force. Statista forecasts a $3.4 billion direct tourism contribution to Nigeria&#8217;s Gross Domestic Product (GDP) from Lagos in 2026. This underscores the city&#8217;s appeal to conscientious travelers and highlights the economic vitality of sustainable tourism practices.



Sustainable initiatives and natural attractions are transforming the city into a haven for eco-conscious travelers. From pristine beaches to urban green spaces, businesses are capitalizing on the demand for eco-friendly experiences while preserving the environment.



CNBC Africa highlights key ecotourism destinations in Lagos, where every step taken is a stride towards a greener, more harmonious future.



<h2 class="wp-block-heading" id="h-preserving-nature-s-balance-exploring-lekki-conservation-centre">Preserving Nature&#8217;s Balance: Exploring Lekki Conservation Centre</h2>



At the Lekki Conservation Centre (LCC), tourists traverse elevated canopy walkway, witnessing diverse bird species, and grasp the delicate balance of nature. As mentioned in multiple reports, the longest canopy walkway in Africa draws thousands, emphasizing the site&#8217;s allure. The 401-metre-long canopy walkway features six towers that rise over 22 feet each.



The Nigerian Conservation Foundation (NCF), a non-governmental organization dedicated to nature conservation and sustainable development, established the LCC in 1990. The LCC spans 78 hectares at the heart of Lagos – Lekki, a peninsula known for its upscale neighborhoods, beaches, and real estate developments. The management practices at the LCC include the availability of tour guides, parking space, security, and entrance.



“I found myself immersed in a lush haven of nature, surrounded by towering trees and diverse wildlife. The canopy walkway offered a thrilling adventure, providing panoramic views of the expansive surroundings. The serene atmosphere, coupled with informative signage, created an educational and enjoyable experience. It left me with lasting memories of the natural beauty,” Dayo Mustapha, a Nigerian web developer, shares with CNBC Africa.



<h2 class="wp-block-heading" id="h-epe-mangrove-navigating-nature-s-tranquil-tapestry-and-cultural-legacy">Epe Mangrove: Navigating Nature’s Tranquil Tapestry And Cultural Legacy</h2>



Located approximately 96km east of Lagos, the Epe mangrove spans from the Lekki-Ibeju axis to Epe town, located on the north side of the Lekki Lagoon. Tourists often begin exploration across the Ibeju Tow, in the grey-green waters of the mangrove, navigating the shallow creek with its shore-hugging waters and thriving mangrove forests at about 16ft deep. These coastal wonders, situated along river banks and lagoons, boast an elevation of 105 metres above sea level.



Epe, known as the fish basket of Lagos State, is adorned with a giant fish sculpture at Lekki-Epe T-Junction. The locals, heavily reliant on fishing, gather shrimp, oysters, shellfish, and more, bringing their bounty to the fish market located 13km from the mangrove.



Tourists are able to immerse themselves in the tranquility of the Epe Mangrove as towering trees form a serene canopy, providing a habitat for diverse bird species. Navigable water channels serve as an invitation to explore this natural wonder by boat.



Beyond its scenic allure, Epe Mangrove holds cultural significance. Engaging with local guides provides discovery about the traditional uses of mangrove resources and their crucial role in sustaining nearby communities&#8217; livelihoods.



&#8220;Navigating the intricate waterways surrounded by towering mangrove trees was a serene escape from bustling urban life. The air was filled with soothing sounds of nature – chirping birds, rustling leaves, and the gentle lapping of water against the boat. It also presented an opportunity to engage in adventurous activities,&#8221; Moses Adeolubodun, a Nigerian realtor, shares with CNBC Africa.&nbsp;



<h2 class="wp-block-heading" id="h-tarkwa-bay-s-coastal-gems-and-community-involvement">Tarkwa Bay&#8217;s Coastal Gems And Community Involvement</h2>



Tarkwa Bay, accessible only by boat or water taxis due to its island status, exemplifies a commitment to maintaining pristine coastal areas. Swimmers and water sports enthusiasts revel in the clean shores, appreciating the city&#8217;s waste management and environmental education programs.



Situated on an island near the Lagos harbor, Tarkwa Bay is an artificial, sheltered beach with a welcoming resident community, setting an example as an eco-conscious destination. Visitors can indulge in sunbathing, unwind on the clean shores, and appreciate its beauty.



<h2 class="wp-block-heading" id="h-badagry-s-cultural-and-historical-riches">Badagry&#8217;s Cultural And Historical Riches</h2>



Badagry, an ancient city, recently hosted the &#8216;Fourth Door of Return&#8217; programs, reuniting diaspora Africans with their roots. With attractions like Whispering Palms Beach and the Slave Port, Badagry showcases Lagos&#8217; rich historical and cultural tapestry.



Despite the sombre past of the transatlantic slave trade, Badagry has transformed into a resilient community, preserving its heritage while embracing new possibilities for economic growth.



“What Bagadry has, no place in the world has it. Door of Return is going to be the biggest tourism event from Badagry, Lagos and Nigeria,&#8221; says the Chairman of the Nigerians in Diaspora Commission (NiDCOM), Abike Dabiri-Erewa during the press briefing ahead of the programs.



Governor of Lagos State Babajide Sanwo-Olu, after the programs’ conclusion, reiterated the state&#8217;s &#8220;dedication to transforming Lagos State into a global tourism by focusing on making Badagry, in particular, a preferred destination for tourists.&#8221;



<h2 class="wp-block-heading" id="h-omu-resort-a-wonderland-of-adventure">Omu Resort: A Wonderland Of Adventure</h2>



A world of adventure awaits tourists at Omu Resort, located in the heart of Bogije, Ibeju Lekki, just 30 minutes beyond Ajah — an area rapidly gaining popularity in Lagos.



Since 2014, this 22-hectare haven has offered visitors a diverse range of rides, including the gravity-defying Pendulum Ride and the laughter-inducing Rainbow Slide.



In a serene neighborhood, the resort is bordered to the North by the crystal-clear waters of Omu Creek. Tourists are also treated to the wonder of the animatronic dinosaurs and new additions to the animal family, enhancing the overall experience of the site.



The space blends leisure and commerce, offering a multifaceted experience for both locals and tourists alike.

Omu Resort offers a haven for rides gaining popularity in Lagos (1)

Ecotourism Marvels: The Green Horizons Of Lagos

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="462" src="https://cms.cnbcafrica.com/wp-content/uploads/2023/11/107283802-1691585442966-gettyimages-1585942148-AFP_33QT9M7-820x462.jpeg" alt="" class="wp-image-428799" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/11/107283802-1691585442966-gettyimages-1585942148-AFP_33QT9M7-820x462.jpeg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2023/11/107283802-1691585442966-gettyimages-1585942148-AFP_33QT9M7-300x169.jpeg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/11/107283802-1691585442966-gettyimages-1585942148-AFP_33QT9M7-160x90.jpeg 160w, https://cms.cnbcafrica.com/wp-content/uploads/2023/11/107283802-1691585442966-gettyimages-1585942148-AFP_33QT9M7-768x432.jpeg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2023/11/107283802-1691585442966-gettyimages-1585942148-AFP_33QT9M7.jpeg 929w" sizes="auto, (max-width: 820px) 100vw, 820px" /></figure>



Office-sharing company WeWork filed for Chapter 11 bankruptcy protection in New Jersey federal court Monday, saying that it had entered into agreements with the vast majority of its secured note holders and that it intended to trim “non-operational” leases.



The bankruptcy filing is limited to WeWork’s locations in the U.S. and Canada, the company said in a press release. The company reported liabilities ranging from $10 billion to $50 billion, according to a bankruptcy filing.



“I am deeply grateful for the support of our financial stakeholders as we work together to strengthen our capital structure and expedite this process through the Restructuring Support Agreement,” WeWork CEO David Tolley said in a press release. “We remain committed to investing in our products, services, and world-class team of employees to support our community.



WeWork has suffered one of the most spectacular corporate collapses in recent U.S. history over the past few years. Valued in 2019 at $47 billion in a round led by Masayoshi Son’s SoftBank, the company tried and failed to go public five years ago.



The pandemic caused further pain as many companies abruptly ended their leases, and the economic slump that followed led even more clients to close their doors.



It disclosed in an August regulatory filing that bankruptcy could be a concern.



WeWork debuted through a special purpose acquisition company in 2021 but has since lost about 98% of its value. The company in mid-August announced a 1-for-40 reverse stock split to get its shares trading back above $1, a requirement for keeping its New York Stock Exchange listing.



WeWork shares had fallen to a low of about 10 cents and were trading at about 83 cents before the stock was halted Monday.



Former CEO and co-founder Adam Neumann said that the filing was “disappointing.”



“It has been challenging for me to watch from the sidelines since 2019 as WeWork has failed to take advantage of a product that is more relevant today than ever before,” Neumann said in a statement to CNBC. “I believe that, with the right strategy and team, a reorganization will enable WeWork to emerge successfully.”



As recently as September, the company said it had been actively renegotiating leases and that it was “here to stay.” The company had close to $16 billion in long-term lease obligations, according to securities filings.



The company leases millions of square feet of office space in 777 locations around the world, according to its regulatory filings.



WeWork has engaged Kirkland &amp; Ellis and Cole Schotz as legal advisors. PJT Partners will serve as its investment bank, with support from C Street Advisory Group and Alvarez &amp; Marsal.



CNBC’s Ari Levy contributed to this report.

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featured

As Biden and Xi gear up for a high-stakes meeting, experts have low expectations

Zambia official creditors, IMF voice ‘reservations’ on bondholder deal

EM assets set for weekly declines after Powell’s hawkish remarks

Powell says Fed is ‘not confident’ it has done enough to bring inflation down

US Treasury’s Adeyemo hopes Congress will extend US-Africa program

Kenya to pay back $300 mln of $2 bln bond in December – Ruto

South Africa to miss 2030 emissions goal as it keeps coal plants burning

China’s consumer prices swing to declines in October

Malawi central bank to devalue kwacha by about 30%

ECB must keep rates at or near 4% through 2024 to get inflation down -IMF

Stocks, FX extend declines on rate hike jitters; Poland, Romania rate decisions due

Worst floods in decades kill 29 in Somalia, hit towns across East Africa

Central banks look to have hit peak rates. Here’s how markets think they’ll come down

IMF warns of inflation risks as central Europe hammers out 2024 wage deals

Impala Platinum starts voluntary job cuts at South Africa mines

Ecotourism Marvels: The Green Horizons Of Lagos

WeWork, once valued at $47 billion, files for bankruptcy

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Advertise With Us

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