Can Boeing’s Purchase Of Spirit AeroSystems Help Solve Its Problems?

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2021/04/Absa_HQ-820x547.jpg" alt="" class="wp-image-400651" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2021/04/Absa_HQ-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2021/04/Absa_HQ-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2021/04/Absa_HQ-768x513.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2021/04/Absa_HQ.jpg 830w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">ABSA has rebranded itself and its logo is on display at its headquarters in Johannesburg and surrounds on Tuesday, August 7 2018. Pic: Waldo Swiegers / Bloomberg</figcaption></figure>



Authors: Sejeng Matlhako, Head: Regional Transactional Banking Sales (Business Banking) Absa CIB and Stanley Hlamalani Godi, Regional Segment Head: Relationship Banking Coverage Growth, Absa Group



Growth-focused businesses in South Africa are increasingly looking to cross-border trade for opportunities to develop their bottom-line and deepen their revenue channels. A combination of the right banking partner and technology is making this a viable option for organisations looking for new markets.



It is no secret that economic growth in South Africa has been constrained through a number of factors which has left the International Monetary Fund (IMF) forecasting a growth rate of just 1% in 2024.



With a growth rate of 1%, the economic pie is not getting any bigger and entrepreneurs are forced to compete with each other and navigate increasingly narrow operating margins.



The problem with being inwardly focused and purely looking at the South African market is that we forget that we form a part of the global economy. Tourism for example has recorded a significant rebound in 2023 – while it hasn’t quite reached pre-COVID-19 levels, 8.5 million tourists came into South Africa. While the sector has been negatively impacted by the pandemic enforced lockdowns, it does contribute nearly 9% to Gross Domestic Product (GDP). In Rand terms, data from Statistics South Africa indicated that domestic visitors spent R435bn in 2022 and pre-pandemic, international tourists were bringing in over R121bn per year. These are sizable markets in the South African context and represent very real business opportunities.



Agriculture has been another positive proof point for international trade with South African products being exported across the globe and soybeans and avocadoes are in great demand from the European Union (EU) through to China. Research out of the Agriculture Business Chamber released in February 2024 indicated that South Africa hit a new record in exports in 2023 with $13.2bn – this was achieved despite major issues at the ports and other logistics constraints. Importantly, the sector was not simply driven by exports but also included $7bn in imports.



Import and Export trade is not limited purely to the traditional markets like the EU, China, India, and the US. Earlier this year, President Ramaphosa announced South Africa’s first shipment and preferential trading under the African Continental Free Trade Area (AfCFTA). According to the World Bank, if fully implemented, the AfCFTA could raise incomes by 9% by 2035 and lift 50 million people out of extreme poverty.



As South African – and broader African businesses – are waking up to the opportunities beyond their home markets, the issue of access to finance becomes a key challenge. If we look across our portfolio and where we are seeing a lot of activity, it is typically in capital-intensive sectors including logistics, automotive, mining and manufacturing.



A major pain point that many of the growth businesses in our commercial and business banking portfolios face is that they often struggle with cashflow issues and then are forced to pursue funders who offer quick turnaround times but at very expensive rates. This is an interesting dynamic that is playing out in the market at the moment where fintech’s in the lending space are offering funding solutions which are perhaps nimbler than those offered from traditional banks, but which often come at a higher cost to the entrepreneurs.



One of the frustrations that the banking sector often encounters is that its clients are taking on the incorrect type of funding solutions for their long-term sustainability. The right solutions may take longer to unlock but should be more suitable for the client in the long run. This could include cheaper debt, lower administration fees and more flexible payment terms.



While there is a natural tension between the banks and the fintech operators, one of the areas where we are seeing some encouraging gains is around the Digitisation of client documents and other records required for finance. Whether you are applying for funding or you are importing and exporting goods, you shouldn’t be filling in the same forms over and over again with high levels of administrative friction inhibiting your ability to do business.



We are encouraged by the partnerships we are seeing with our stakeholders to introduce digital solutions to reduce friction and allow for swifter transacting across the business banking ecosystem – from SME through to larger corporate transactions.



Lastly, we believe that if we are serious about the subject of growth in South Africa, then we cannot ignore the Environmental, Social and Governance (ESG) discussion. While many of the larger businesses – including multinationals and those listed on the JSE &#8211; in South Africa are beginning to understand the role that ESG plays in terms of unlocking funding and opportunities, many of our business banking clients and stakeholders do not understand how they can utilise this as a growth channel for themselves.



Banks have a key role to play in educating the market around ESG solutions and how they can participate.



South African and African businesses form a key part of the global economy and while there are some constraints around growth, we have the ability to participate in the broader global economy. If we can identify solutions that include import and export of products, we are no longer constrained by the domestic economy. It is a global playground for entrepreneurs, and we look forward to working with them to unlock these growth opportunities to see them flourish.

Absa Reboots Image As 100 Years Of Barclays In Africa Ends

Unlocking growth: Cross-border trade gives African entrepreneurs access to new markets

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/05/GettyImages-1166232221-820x547.jpg" alt="" class="wp-image-487665" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/05/GettyImages-1166232221-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/05/GettyImages-1166232221-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/05/GettyImages-1166232221-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2024/05/GettyImages-1166232221-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/05/GettyImages-1166232221-1536x1024.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/05/GettyImages-1166232221-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">Fabricio Bloisi, chief executive officer of Movile Group, a unit of Napsers Ltd, poses for a photograph in Amsterdam, Netherlands, on Thursday, Aug. 29, 2019. Naspers-owned internet ventures will be carved out into a new $100 billion company called Prosus NV, which is due to list in Amsterdam on Sept. 11. Photographer: Yuriko Nakao/Bloomberg via Getty Images</figcaption></figure>



JOHANNESBURG, May 17 (Reuters) &#8211; Dutch technology investor Prosus PRX.AS and its South African parent group Naspers NPNJn.J on Friday named the head of their iFood business, Fabricio Bloisi, as their new CEO, replacing long-time boss Bob van Dijk who stepped down last September.



The companies, whose main asset is Prosus&#8217;s 26% stake in Chinese tech giant Tencent&nbsp;0700.HK, said Bloisi &#8211; currently the CEO of Latin American food delivery business iFood &#8211; would assume the role at both companies on July 1.



&#8220;He (Bloisi) has a combination of vision, deep operational experience and strong discipline. It is this skill set which the board believes make him the right person to now lead us,&#8221; Prosus and Naspers Chair Koos Bekker said in a statement.



Bloisi welcomed the opportunity to lead both companies, adding: &#8220;A company like Prosus must play an important role in identifying new technologies, such as AI, that impact the world and specifically emerging markets&#8221;.



Prosus said the group&#8217;s strategic goals remained unchanged, adding it was on track to deliver on e-commerce profitability in the second half of its 2024 financial year and continue its open-ended share repurchase programme.



Outgoing CEO Dijk oversaw Prosus&#8217;s initial public offering in 2019 and the stock&#8217;s strong performance during the COVID-19 pandemic. But its shares fell in the broadly post-pandemic correction in technology valuations, and the company has struggled to reduce its discount to Tencent.



Since Bloisi is not as experienced in international mergers and acquisitions and dealing with investors, the board appointed interim CEO Ervin Tu as president and chief investment officer, Bekker told investors on a call.



&#8220;As our new President and CIO, he will play a fundamental role in shaping the group&#8217;s future strategy, investments, and capital allocation,&#8221; Bekker added.



But Bloisi will have the final say on capital allocation, Tu told investors.



Prosus shares were down 3.10% at 1116 GMT, while Naspers&#8217; were down 3.11%.



&#8220;Whilst we think the market will take some time to get to know Bloisi and could be sceptical initially &#8230; we believe the team of Bloisi heading and Tu alongside could work well,&#8221; UBS analyst Joseph Barnet-Lamb said.



Jefferies analysts said Bloisi&#8217;s skills as an owner-operator were unlikely to be fully used at the helm of Prosus given investments in both public and private companies have their own operators.



&#8220;We would have preferred a capital allocator with a track record in either private or public market expertise at the helm of Prosus,&#8221; they said.



(Additional reporting by Radhika Anilkumar and Prerna Bedi in Bengaluru; Editing by Sherry Jacob-Phillips and Mark Potter)

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<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="461" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/05/107415700-1715834412074-gettyimages-2152345990-cfoto-chinasha240514_np8N6-820x461.jpeg" alt="" class="wp-image-487683" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/05/107415700-1715834412074-gettyimages-2152345990-cfoto-chinasha240514_np8N6-820x461.jpeg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/05/107415700-1715834412074-gettyimages-2152345990-cfoto-chinasha240514_np8N6-300x169.jpeg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/05/107415700-1715834412074-gettyimages-2152345990-cfoto-chinasha240514_np8N6-160x90.jpeg 160w, https://cms.cnbcafrica.com/wp-content/uploads/2024/05/107415700-1715834412074-gettyimages-2152345990-cfoto-chinasha240514_np8N6-768x432.jpeg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/05/107415700-1715834412074-gettyimages-2152345990-cfoto-chinasha240514_np8N6-1536x864.jpeg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/05/107415700-1715834412074-gettyimages-2152345990-cfoto-chinasha240514_np8N6.jpeg 1600w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">Foreign trade containers are being stacked at the container yard of Qingdao Port in Qingdao, China, on May 14, 2024.  Nurphoto | Nurphoto | Getty Images</figcaption></figure>



China remains a “critical supplier” to the world and efforts for a full decoupling remain “difficult, if not impossible,” a trade report by Allianz Trade said.



Despite talk of decoupling and derisking from China, European companies remain bullish about prospects in the country — with nearly 40% of companies in Germany and Spain and more than 30% of firms in France expecting their supply chain footprint n the country to increase.



That’s according to the report which showed that only 27% of companies surveyed in the U.S. were planning to expand in China.



“European companies are clearly less worried than U.S. firms,” the report, led by Allianz Trade’s Head of Economic Research Ana Boata said.



The Allianz Trade survey polled more than 3,000 companies in China, France, Germany, Italy, Poland, Spain, the UK and the U.S. were surveyed about their outlook for global trade in 2024.&nbsp;



More than one-third of respondents plan to increase their China footprint, while only 11% said they would decrease it, the trade survey showed.&nbsp;



“China remains the world’s critical supplier, from which a full decoupling seems difficult, if not impossible,” the Allianz Trade report said. 



Meanwhile in China, companies there are growing more optimistic about exporting to other countries.



Over one in ten exporters in China — the second-largest exporter of goods to the U.S. after Mexico —projected a greater than 10% increase in exports.&nbsp;



This is higher than other countries which mostly expected a 2% to 5% increase in exports, data from the report showed.



“Chinese exporters are more optimistic than [other countries] in the survey,” said Francoise Huang, senior economist for Asia Pacific at Allianz Trade.&nbsp;



“Last year was a bad year for overall exports, we had a global trade recession. So that’s why we think respondents in our survey are particularly optimistic,” Huang told CNBC’s “Squawk Box Asia” on Thursday.



<h2 class="wp-block-heading" id="h-diversification-is-inevitable"><a></a>Diversification is inevitable</h2>



Although companies might not completely decouple supply chains from China, diversification is still on the cards.



“Companies that are looking at diversifying their supply chains are looking at the rest of Asia Pacific, with a good focus on ASEAN,” Huang told CNBC, referring to the 10-member Southeast Asian trade bloc.



The report showed that exporters may be more optimistic in 2024 but have also become more concerned about the geopolitical landscape, as well as risks related to shortages of inputs and labor and financing.



About 73% of those surveyed said risks related to politics and protectionism were their top concern. Exporters are still worried about supply chain disruptions, with “31% of respondents placing transport risks among their top three risks and 28% included the risk of input shortages,” the report said.



About 48% of U.S. exporters that manufacture in China or have suppliers there say they would consider countries in Asia-Pacific and Latin America in their diversification efforts.



“Relocating within the same region and nearshoring seem to be the preferred trends,” the report said, adding that only 5% of respondents think reshoring trends will reverse in the next two years, while almost 30% expect it to increase.&nbsp;



The Russia-Ukraine war continues to be the largest geopolitical risk companies expect to hinder supply chains, while trade wars between the U.S. and China is the biggest threat to firms with long supply chains and more than 50% of foreign production.&nbsp;

107415700-1715834412074-gettyimages-2152345990-cfoto-chinasha240514_np8N6

China is a ‘critical’ global supplier, full decoupling may be impossible, survey shows

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="548" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/05/P763LBKESBL7DNF5FGYK2ONI4M-820x548.jpg" alt="" class="wp-image-487648" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/05/P763LBKESBL7DNF5FGYK2ONI4M-820x548.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/05/P763LBKESBL7DNF5FGYK2ONI4M-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/05/P763LBKESBL7DNF5FGYK2ONI4M-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2024/05/P763LBKESBL7DNF5FGYK2ONI4M-768x513.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/05/P763LBKESBL7DNF5FGYK2ONI4M-1536x1026.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/05/P763LBKESBL7DNF5FGYK2ONI4M-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">Israeli delegation members sit at the International Court of Justice (ICJ), at the start of a hearing where South Africa requests new emergency measures over Israel&#8217;s attacks on Rafah, as part of an ongoing case South Africa filed at the ICJ in December last year accusing Israel of violating the Genocide Convention during its offensive against Palestinians in Gaza, in The Hague Netherlands May 17, 2024. REUTERS/Yves Herman</figcaption></figure>



THE HAGUE, May 17 (Reuters)&nbsp;&#8211;&nbsp;Israel on Friday defended the military necessity of its Gaza offensive at the International Court of Justice after South Africa asked judges to order it to halt operations in Rafah and completely withdraw from the Palestinian territory.



Israeli Justice Ministry official Gilad Noam called South Africa&#8217;s case, which accuses Israel of violating the Genocide Convention, &#8220;completely divorced from facts and circumstances&#8221;.



&#8220;(The case) makes a mockery of the heinous charge of genocide,&#8221; Noam said.



Ahead of Israel&#8217;s presentation, several dozen pro-Israeli protesters gathered outside, displaying photographs of hostages taken by Hamas fighters on Oct. 7 and demanding their release.



More than 35,300 Palestinians have been killed in Israel’s seven-month-old assault on the Gaza Strip, health officials in the enclave said on Thursday. The war began when Hamas militants attacked Israel on Oct. 7, killing 1,200 people and abducting 253 others.



On Thursday, South Africa&#8217;s ambassador to the Netherlands, Vusimuzi Madonsela, requested the court to order Israel to &#8220;immediately, totally and unconditionally, withdraw the Israeli army from the entirety of the Gaza Strip.&#8221;



The South African legal team framed the Israeli military operation as part of a genocidal plan aimed at bringing about the destruction of the Palestinian people.



In past rulings, the court has rejected Israel&#8217;s demands to dismiss the case and ordered it to prevent acts of genocide against the Palestinians, while stopping short of ordering it to halt the assault.



(Reporting by Stephanie van den Berg and Anthony Deutsch; Editing by Peter Graff)

South Africa asks World Court for more emergency measures over Israel’s Rafah offensive, in The Hague

Israel tells World Court South Africa case makes a mockery of genocide

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="536" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/05/GSOSOM4DZFNTPBYDV4RS2U7HM4-820x536.jpg" alt="" class="wp-image-487632" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/05/GSOSOM4DZFNTPBYDV4RS2U7HM4-820x536.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/05/GSOSOM4DZFNTPBYDV4RS2U7HM4-300x196.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/05/GSOSOM4DZFNTPBYDV4RS2U7HM4-138x90.jpg 138w, https://cms.cnbcafrica.com/wp-content/uploads/2024/05/GSOSOM4DZFNTPBYDV4RS2U7HM4-768x502.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/05/GSOSOM4DZFNTPBYDV4RS2U7HM4-1536x1004.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/05/GSOSOM4DZFNTPBYDV4RS2U7HM4-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">A worker&#8217;s uniform displays company branding at a Sainsbury&#8217;s store in London, Britain October 11, 2016. REUTERS/Neil Hall/File Photo</figcaption></figure>



LONDON, May 17 (Reuters)&nbsp;&#8211;&nbsp;Britain&#8217;s Sainsbury&#8217;s&nbsp;SBRY.L&nbsp;said on Friday it has agreed a five-year strategic partnership with Microsoft&nbsp;MSFT.O&nbsp;that will use the technology company&#8217;s artificial intelligence capabilities and the supermarket group&#8217;s rich data.



Seeking revenue gains and cost savings, more retailers are using generative AI to boost personalised shopping experiences for consumers and make staff working practices more efficient.



Sainsbury&#8217;s, Britain&#8217;s second-largest grocer after Tesco&nbsp;TSCO.L, said it would use AI to create a more interactive shopping experience for online shoppers, while also improving search functions.



In stores, staff would have real-time data and insights for key processes, such as shelf replenishment.



Time to market for new services and product innovations would also be reduced, Sainsbury&#8217;s said.



No financial details of the partnership were disclosed.



Sainsbury&#8217;s in February updated the market on its strategy, setting a new cost-savings target of 1 billion pounds ($1.3 billion) over three years and pledging to boost returns for shareholders.



Last month, it forecast up to 10% growth in profit in the current financial year that began on March 3, confident it can continue to win more customers from rivals.



($1 = 0.7895 pounds)



(Reporting by James Davey; Editing by Jamie Freed)

A worker’s uniform displays company branding at a Sainsbury’s store in London

British grocer Sainsbury’s partners with Microsoft to use AI for data insights

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="461" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/05/107411245-1715050593477-gettyimages-2149526811-INDIA_MODI-820x461.jpeg" alt="" class="wp-image-487616" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/05/107411245-1715050593477-gettyimages-2149526811-INDIA_MODI-820x461.jpeg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/05/107411245-1715050593477-gettyimages-2149526811-INDIA_MODI-300x169.jpeg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/05/107411245-1715050593477-gettyimages-2149526811-INDIA_MODI-160x90.jpeg 160w, https://cms.cnbcafrica.com/wp-content/uploads/2024/05/107411245-1715050593477-gettyimages-2149526811-INDIA_MODI-768x432.jpeg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/05/107411245-1715050593477-gettyimages-2149526811-INDIA_MODI-1536x864.jpeg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/05/107411245-1715050593477-gettyimages-2149526811-INDIA_MODI.jpeg 1600w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">Narendra Modi, India’s prime minister, center, during a campaign rally in Agra, Uttar Pradesh, India, on Thursday, April 25, 2024. Modi doubled down on his attacks against the main opposition party by using language critics say sows division between the country’s Hindu majority and Muslim minority. Photographer: Prakash Singh/Bloomberg via Getty Images Bloomberg | Bloomberg | Getty Images</figcaption></figure>



A decade into power, India’s Prime Minister Narendra Modi appears set to secure a rare third term, with the general elections now underway.



Under his rule, India’s economic growth has been robust and its geopolitical standing in the world has risen.



Yet, the country has also witnessed signs of democratic backsliding which has become apparent during his leadership, observers and critics say.



“Modi has projected himself in the mould of an East Asia strongman,” Asim Ali, an independent political researcher in New Delhi, told CNBC.



He has also been called “the high priest of India — that he is above all politics,” Ali added. “This is very worrying as mixing religious nationalism with economic development” has been a “central feature” of his government.  



In its latest 2024 report, the Sweden-based V-Dem Institute said a third Modi term could worsen the political situation “given the already substantial democratic decline under Modi’s leadership and the enduring crackdown on minority rights and civil society.”



The U.S. research group Freedom House said Indian elections will be taking place in a media landscape characterized by increasing “legal attacks on critical journalists” and news outlets.



There is no question the “space for democracy between elections has shrunk” under Modi, Milan Vaishnav, South Asia director at the Carnegie Endowment for International Peace, told CNBC.



“Today, the liberal character of India’s democracy is less apparent,” he added, with “rising majoritarianism, weakening checks on executive authority and a growing intolerance for dissent.”



Last year, the government slammed a BBC documentary — which questioned Modi’s alleged role during the 2002 deadly Gujarat riots — and blocked social media platforms from sharing any clips of it.



Many Indian mainstream media, especially the Hindi-speaking outlets, have been “co-opted” to spread propaganda to deliver “the government message,” according to Ali.



India shuts down the internet more than any other country, with authorities frequently using such tactics to stem political protests and suppress criticism, rights groups say.



In a recent Newsweek interview, Modi addressed the issues and called India the “mother of democracy.”



“Our media plays an important role in this regard,” he said, dismissing claims of “diminishing media freedom” in India as “dubious.”



The prime minister’s office and the ruling Bharatiya Janata Party did not respond to CNBC’s request for comment.



<h2 class="wp-block-heading" id="h-opposition-witch-hunt"><a></a>Opposition ‘witch hunt’</h2>



Ahead of the elections, India’s main opposition — the National Congress party — accused the Modi government of freezing its bank accounts.



“This is a criminal action on the Congress party done by the prime minister and the home minister,” said Congress leader Rahul Gandhi in a fiery attack.



“It is being orchestrated to cripple us before the elections,” he claimed, adding the people were being “robbed of their constitution and democratic structure.”



The Modi administration rejected the opposition’s allegations.



Previous governments have also pursued “a witch hunt against opposition politicians,” said Chietigj Bajpaee, a senior research fellow for South Asia at&nbsp;Chatham House.&nbsp; &nbsp;



But the scale of “actions by the Modi government is what makes it more alarming,” since it has “employed key levers of power” to intimidate opponents, he added.



India’s Supreme Court recently granted an interim bail to jailed Delhi chief minister Arvind Kejriwal, a vocal political rival of Modi, who was arrested in March under a bribery case. The arrest raised eyebrows as he was the leader of India’s Aam Aadmi Party, a key player in a larger opposition alliance.



The timing was “unusual” as it came just before the elections, said Bajpaee. It appears the government doesn’t “want to leave any stone unturned” in its stated target of securing 400 seats in the Lok Sabha or lower house of parliament, he added.



<h2 class="wp-block-heading"><a></a>‘Pro-Hindu party’</h2>



In the last decade, Modi’s BJP has become emboldened in pushing its Hindu nationalist ideology, say analysts. The aim was to consolidate its support among the Hindus, who make up 80% of the country’s 1.4 billion population.



“The BJP is an avowedly pro-Hindu party,” said Vaishnav. Since coming to power in 2014, but especially post-2019, it has “sought to use law, regulation, and even civil society to promote its agenda,” he added.



In January, Modi inaugurated a controversial temple in the city of Ayodhya — at the site where an ancient mosque was demolished by a Hindu mob — fulfilling a decades-long campaign promise.



“The temple issue would matter in the Hindi-speaking belt, especially to energize the Hindu base,” said Ali, adding the government has also used “anti-Muslim” rhetoric during the election campaign.



Modi was accused of hate speech recently after he reportedly called Muslims “infiltrators” at a rally, seen as undermining India’s secular constitution.



The Modi government’s “talk of establishing a ‘Hindu Rashtra’ or Hindu nation does indicate ambitions to demolish the divide between state and religion,” noted Bajpaee, warning this could “erode India’s secular credentials.”



<h2 class="wp-block-heading"><a></a>Cult-like status?</h2>



Yet, public backlash against Modi’s hardline rule has been limited. His charisma and persona have made him incredibly popular both at home and abroad.



“There’s no one in the opposition to match that kind of popularity,” said Ronojoy Sen, senior research fellow at the Institute of South Asian Studies, in a recent CNBC interview.



Political watchers argue Modi benefitted from a cult-like status created around him — backed by the ruling party’s formidable election machinery — to build a direct connection between him and voters.



For those unhappy with the country’s direction “to vote out the BJP means they have to get rid of Modi,” said Neelanjan Sircar, a senior fellow at the Centre for Policy Research in New Delhi. That becomes “hard to do if voters identify with him.”



His populist appeal has endured despite India’s entrenched economic problems such as rising youth unemployment and growing wealth inequality.



A<a href="https://www.thehindu.com/elections/lok-sabha/pre-poll-study-2024-method-note/article68051262.ece" target="_blank" rel="noreferrer noopener"> </a>CSDS-Lokniti pre-poll survey showed Modi was way ahead in popularity with 48% of the respondents picking him as their choice for prime minister compared with his opposition rivals.



India’s economic progress was not “obviously, worse before Modi came to the scene,” noted Sircar. “During Manmohan Singh’s time, India was also growing very fast,” he added, referring to the economic reforms under the former prime minister in the 1990s.



“What has changed is the way in which everything is branded in Modi’s image.”



Even the BJP’s manifesto is called “Modi Ki Guarantee” — or Modi’s guarantee, Sircar pointed out, adding that the entire political system “is geared towards positive attribution to the top.”



<h2 class="wp-block-heading"><a></a>‘Big changes’</h2>



With election results due in early June, it has been widely expected the prime minister and the BJP will cruise to victory for a third term, given India’s feeble opposition.



A reelected Modi government will be “more forceful” in pushing ahead with “politically sensitive economic reforms and its more divisive identity-driven agenda,” said Bajpaee, from Chatham House.



In a recent Interview, Modi exuded confidence and said he wanted to make India “the third economic superpower,” outlining his bold vision.



The Indian leader will “flex his muscles” to enact significant legislation on a strengthened mandate, added Carnegie’s Vaishnav.



“Modi has already prepared the electorate to expect ‘big changes’ once they’re brought back to power,” he added.

107411245-1715050593477-gettyimages-2149526811-INDIA_MODI

Modi’s strongman rule raises questions about India’s ‘democratic decline’ as he seeks a third term

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="541" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/05/XHKXHIOUFZIJZAGULBLYUNLOQA-1-820x541.jpg" alt="" class="wp-image-487399" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/05/XHKXHIOUFZIJZAGULBLYUNLOQA-1-820x541.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/05/XHKXHIOUFZIJZAGULBLYUNLOQA-1-300x198.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/05/XHKXHIOUFZIJZAGULBLYUNLOQA-1-136x90.jpg 136w, https://cms.cnbcafrica.com/wp-content/uploads/2024/05/XHKXHIOUFZIJZAGULBLYUNLOQA-1-768x507.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/05/XHKXHIOUFZIJZAGULBLYUNLOQA-1-1536x1014.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/05/XHKXHIOUFZIJZAGULBLYUNLOQA-1-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">FILE PHOTO: Workers offload boxes with Oxford/AstraZeneca vaccines as the country receives its first batch of coronavirus disease (COVID-19) vaccines under COVAX scheme, at the international airport of Abuja, Nigeria March 2, 2021. REUTERS/Abraham Archiga</figcaption></figure>



ABUJA, May 16 (Reuters)&nbsp;&#8211;&nbsp;Dubai&#8217;s Emirates airline will resume flight schedules to Nigeria from Oct. 1, it said on Thursday, ending a close to two-year halt to flights.



The United Arab Emirates (UAE) stopped issuing visas to Nigerians in 2022 after Emirates suspended flights between the nations because of an inability to repatriate funds from Nigeria.



&#8220;We are excited to resume our services to Nigeria. We thank the Nigerian government for their partnership and support in re-establishing this route and we look forward to welcoming passengers back on board,&#8221; Adnan Kazim, the airline&#8217;s deputy president and chief commercial officer, said in a statement.



The Lagos-Dubai service has been popular with Nigerian customers in the past and Emirates said it hopes to reconnect travellers to Dubai and onwards to more than 140 destination with its resumption of services.



Nigerian President Bola Ahmed Tinubu and UAE President Mohamed bin Zayed Al Nahyan met last September in Abu Dhabi and discussed the lifting of the visa ban and new investments into Africa&#8217;s most populous country.



The resumption of schedules also includes cargo flights, the statement said.



(Reporting by Ope Adetayo; Additonal reporting by Elisha Bala-Gbogbo; Editing by Jason Neely and David Goodman)

Oxford/AstraZeneca vaccines against COVID-19 arrive in Abuja

Emirates to resume Nigeria flights after nearly two years

How Much The U.S. Spends On Wars Abroad

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="462" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/05/107414676-1715697984930-gettyimages-2152910133-wallstl424193_qvig1fef-820x462.jpeg" alt="" class="wp-image-487293" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/05/107414676-1715697984930-gettyimages-2152910133-wallstl424193_qvig1fef-820x462.jpeg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/05/107414676-1715697984930-gettyimages-2152910133-wallstl424193_qvig1fef-300x169.jpeg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/05/107414676-1715697984930-gettyimages-2152910133-wallstl424193_qvig1fef-160x90.jpeg 160w, https://cms.cnbcafrica.com/wp-content/uploads/2024/05/107414676-1715697984930-gettyimages-2152910133-wallstl424193_qvig1fef-768x432.jpeg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/05/107414676-1715697984930-gettyimages-2152910133-wallstl424193_qvig1fef.jpeg 929w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">Traders work on the floor during morning trading at the New York Stock Exchange on May 14, 2024. Spencer Platt | Getty Images</figcaption></figure>



Traders appear increasingly confident that the U.S. Federal Reserve could start cutting interest rates as early as September, after inflation data cooled more than expected in April.



Some analysts, however, are far from convinced about the prospect of imminent rate reductions.



The consumer price index (CPI), a broad measure of how much goods and services cost at the cash register, increased 0.3% from March, the Labor Department’s Bureau of Labor Statistics reported Wednesday. That was slightly below a Dow Jones estimate of 0.4%.



The softer-than-expected data on Wednesday propelled stocks to fresh record highs and fueled speculation about how soon the Fed could be prepared to begin cutting rates.



Traders are currently pricing in a roughly 70% chance of a U.S. rate cut in September, according to the CME FedWatch Tool. That marks a sharp increase, compared to earlier in the week.



Jerome Schneider, head of short-term portfolio management at PIMCO, said on Thursday that the latest U.S. inflation data confirmed to investors that the potential for a near-term rate hike was now “off the table.”



“I think more contextually, we have to really understand that we have celebrated a lower inflation rate, the market has. But, in context, at PIMCO we’re specifically thinking about the longer-term trajectory of how the Fed is going to react to this data,” Schneider told CNBC’s “Squawk Box Europe.”



“More importantly when you look [at] … what is going on within the segments of CPI and the [Personal Consumption Expenditures Price Index], the more prevalent inflation indicator for the Federal Reserve, it still remains relatively resilient,” Schneider said.



“In fact, to get below a 3% number in those core figures, we’re going to have to see prints over the course of the remainder of the year of 0.2% or lower. Right now, we’re still well above that.”



He added that while the latest inflation data provided some relief, in the context of the Fed quickly getting back closer to its 2% target, “it is probably unlikely at this point in time.”



<h2 class="wp-block-heading" id="h-softer-data"><a></a>Softer data</h2>



Alongside the latest U.S. inflation data, the Commerce Department reported on Wednesday that retail sales were flat on the month, compared with the estimate for a 0.4% increase. The print appeared to show that consumer spending in the world’s largest economy had lost some momentum.



“If you put the inflation data with the retail sales data earlier in the week, where it was a decent miss, and really weakened discretionary areas, and that to me tells us a story about a consumer that under the hood is starting to feel the effects of these higher rates,” Jacob Mitchell, chief investment officer and founder of Antipodes Partners, told CNBC’s “Squawk Box Europe” on Thursday.



“I think probably the market is starting to see softer data coming, which will make the job of the Fed a little bit easier.”



Asked whether the CPI data suggests that the Fed is on course to cut rates in September, Mitchell replied, “Look, I would agree that you didn’t get what you needed on the key components, services and owner’s equivalent rent.”



He added, “And those two elements, look, if we don’t get much weaker goods numbers, then in the second half of the year, you get base effects coming in, so you’re going to see a natural reacceleration in core CPI.”



— CNBC’s Jeff Cox contributed to this report.

107414676-1715697984930-gettyimages-2152910133-wallstl424193_qvig1fef

U.S. inflation data fuels bets of Fed rate cuts as early as September — but analysts aren’t convinced

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="573" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/05/MRLWKTGVIRIYFC257KSXSP6GGA-820x573.jpg" alt="" class="wp-image-487246" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/05/MRLWKTGVIRIYFC257KSXSP6GGA-820x573.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/05/MRLWKTGVIRIYFC257KSXSP6GGA-300x210.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/05/MRLWKTGVIRIYFC257KSXSP6GGA-129x90.jpg 129w, https://cms.cnbcafrica.com/wp-content/uploads/2024/05/MRLWKTGVIRIYFC257KSXSP6GGA-768x537.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/05/MRLWKTGVIRIYFC257KSXSP6GGA-1536x1074.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/05/MRLWKTGVIRIYFC257KSXSP6GGA-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">FILE PHOTO: South Africa President Cyril Ramaphosa speaks at the Congress of South African Trade Unions (COSATU) National Worker&#8217;s Day rally at Athlone Stadium in Cape Town, South Africa, May 1, 2024.?REUTERS/Esa?Alexander/File Photo</figcaption></figure>



JOHANNESBURG, May 16 (Reuters) &#8211; South Africans vote in a national election on May 29 and, for the first time since the end of apartheid 30 years ago, polls suggest the ruling African National Congress party (ANC) is at risk of losing its parliamentary majority. Investors are paying close attention.



<h2 class="wp-block-heading" id="h-why-is-nbsp-a-majority-nbsp-important">WHY IS&nbsp;A MAJORITY&nbsp;IMPORTANT?</h2>



If the ANC gets less than 50% support it would have to seek one or more coalition partners to govern Africa&#8217;s most industrialised economy. The new parliament will choose South Africa&#8217;s next president.



The new government will set fiscal and economic policy for the coming five years, and investors want to see if the next administration is likely to tack sharply left, head in a more business-friendly direction or prevail with the status quo of slow reforms.



<h2 class="wp-block-heading" id="h-what-are-investors-focused-on">WHAT ARE INVESTORS FOCUSED ON?</h2>



An April Ipsos poll put the ANC&#8217;s support at 40.2% and most surveys have estimated it will get below 45%, the level financial analysts say it needs to reach to enlist smaller, centrist coalition partners.



Otherwise, the ANC may have to seek a deal with&nbsp;the far-left Marxist Economic Freedom Fighters (EFF) or the economically liberal Democratic Alliance (DA).



&#8220;The market is watching very closely to see the degree to which the ANC&#8230; (is) forced to engage in coalitions with what are perceived to be extremely left-wing parties such as the MK (uMkhonto we Sizwe party) and EFF,&#8221; said Yvette Babb, a portfolio manager at U.S.-asset manager William Blair Investment Management.



&#8220;The greyer zone of between 45%-50%, whereby they (ANC) may need to form a coalition with smaller parties that are more centrist, is not deemed to be a bad thing&#8230;perhaps that introduces more checks and balances into the governance process.&#8221;



<h2 class="wp-block-heading" id="h-how-will-markets-react">HOW WILL MARKETS REACT?</h2>



Post-election coalition discussions between the ANC and the EFF or the recently-formed MK, led by former President Jacob Zuma, would lead to a &#8220;kneejerk&#8221; sell-off of South African assets, said Mpho Molopyane, chief economist at South African investment and insurance company Alexforbes.



&#8220;The concern is that&#8230; we could see government turning more populist, increasing social spending, implementing policies that are anti-business, the reform agenda slowing down,&#8221; she said.



Meanwhile, coalition discussions between the ANC and DA would likely lead to a &#8220;risk-on rally&#8221;, where prices rise, Molopyane said.



&#8220;A coalition with the DA is regarded as likely to be more business friendly&#8230; an efficiently run state, fiscal prudence – all of which would bode well for South Africa&#8217;s growth prospects,&#8221; she said.



<h2 class="wp-block-heading" id="h-how-might-the-election-impact-the-rand">HOW MIGHT THE ELECTION IMPACT THE RAND?</h2>



The rand has reflected South Africa&#8217;s economic woes in recent years. The currency has weakened a touch year-to-date and marked annual losses of 5% or more in the previous four years.



&#8220;Fair value&#8221; for the rand-U.S. dollar exchange rate&nbsp;ZAR=D3&nbsp;is about 18.10 rand per dollar, so with it currently trading just below 18.40 there is a relatively small election-linked risk premium, said Elna Moolman, Standard Bank&#8217;s head of South Africa macroeconomic, fixed income and currency research.



&#8220;This is&#8230; consistent with the general sense that investors now generally expect a benign election outcome (which ensures policy continuity),&#8221; she said.



Citi&#8217;s Luis Costa noted that the election risk premium had already faded in recent days and weeks.



&#8220;The more fundamental factors in ZAR have been recently supportive of economic activity such as the terms of trade dynamics and the improved domestic load-shedding (which&nbsp;however&nbsp;may not last after the polls close),&#8221; Costa said in a note to clients.



Load-shedding refers to scheduled power cuts which have hobbled the economy in recent years.



<h2 class="wp-block-heading" id="h-how-will-the-election-affect-the-economy-and-investment">HOW WILL THE ELECTION AFFECT THE ECONOMY AND INVESTMENT?</h2>



South Africa&#8217;s economy has barely grown in the last decade, crippled by the record power cuts and the degraded transport network. The economy grew just 0.6% in 2023.



&#8220;I don&#8217;t see any political party with a real plan to stimulate the economy, only promises for everyone to somehow have a job,&#8221; said independent risk consultant Marisa Lourenco, adding foreign direct investors were in wait-and-see mode.



&#8220;But as the dust settles after the election, South Africa will still remain attractive for certain industries, like gas, renewables, mining (like manganese).&#8221;



Net FDI inflows have generally been higher than pre-1994, when the ANC took power, World Bank data shows. Inflows stood at $9.19 billion in 2022 compared to some $374 million in 1994.



In contrast, foreign investors have cut holdings of stocks and bonds. Foreign ownership of domestic government bonds fell from a peak of 42.8% in 2018 to under 25% this year.



Other issues for international businesses operating in South Africa include infrastructure challenges, skilled worker shortages, the&#8217;greylisting&#8217; of South Africa financial sector over transparency concerns and delays for foreign workers getting permits, said Simone Pohl, CEO of the Southern African-German Chamber of Commerce and Industry.



&#8220;Despite those challenges, South Africa&#8217;s highly diversified economy, overall market volume, free press and its independent justice system still make it the number one investment location in Southern Africa,&#8221; she added.



($1 = 18.4528 rand)



(Reporting by Rachel Savage, additional reporting by Libby George, Editing by Olivia Kumwenda-Mtambo and Toby Chopra)

FILE PHOTO: South Africa President Cyril Ramaphosa attends the Cosatu National Worker’s Day rally at Athlone Stadium in Cape Town

What are the key issues for investors in South Africa’s 2024 election?

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="528" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/05/ZN2RIXYPHJJ5HFHBQHPMQOWAVU-820x528.jpg" alt="" class="wp-image-487001" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/05/ZN2RIXYPHJJ5HFHBQHPMQOWAVU-820x528.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/05/ZN2RIXYPHJJ5HFHBQHPMQOWAVU-300x193.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/05/ZN2RIXYPHJJ5HFHBQHPMQOWAVU-140x90.jpg 140w, https://cms.cnbcafrica.com/wp-content/uploads/2024/05/ZN2RIXYPHJJ5HFHBQHPMQOWAVU-768x495.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/05/ZN2RIXYPHJJ5HFHBQHPMQOWAVU-1536x990.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/05/ZN2RIXYPHJJ5HFHBQHPMQOWAVU-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">South Africa&#8217;s President Cyril Ramaphosa gestures as he signs into law a national health bill that aims to provide universal coverage to South Africans, at the Union Building in Pretoria, South Africa, May 15, 2024. REUTERS/Siphiwe Sibeko</figcaption></figure>



PRETORIA, May 15 (Reuters)&nbsp;&#8211;&nbsp;South Africa&#8217;s President Cyril Ramaphosa signed into law on Wednesday a bill that aims to provide universal health coverage, hailing it as a major step towards a more just society two weeks before an election that is expected to be fiercely competitive.



The National Health Insurance (NHI) Act takes aim at a two-tier health system, in which a publicly funded sector that serves 84% of the population is overburdened and run-down while some people have access to better treatment through private insurance.



Opponents have vowed to challenge it in court and described it is a ploy for votes &#8211; which the presidency denied &#8211; ahead of an election in which the governing African National Congress (ANC) is fighting to retain its parliamentary majority after 30 years in power.



The legislation will gradually limit the role of private insurance, create a new public fund to provide free access for South African citizens, and set the fees and prices that private doctors and healthcare suppliers can charge for NHI-funded benefits.



&#8220;The provision of healthcare in this country is fragmented, unsustainable and unacceptable,&#8221; said Ramaphosa, framing the legislation as a solution to inequalities that date back to the apartheid era.



&#8220;For those who would like to see (their) privileges continuing, sorry, you are on the wrong boat. The boat we are on is about equality,&#8221; he said at a signing ceremony at the Union Buildings, the seat of government in Pretoria.



Opponents say the plan will drain already stretched public finances, limit patient choice, undermine the quality of care and drive talented doctors out of the country.



<h2 class="wp-block-heading" id="h-legal-challenges">LEGAL CHALLENGES</h2>



Industry and political analysts have said the legislation is likely to get bogged down in lawsuits for years, with the funding model the main aspect that is disputed.



The government has said the National Treasury will determine the funding sources for NHI, which will include a mandatory pre-payment system and other forms of taxes.



Big local health insurers like Discovery&nbsp;DSYJ.J, Momentum Metropolitan Health&nbsp;MTMJ.J&nbsp;and AfroCentric&nbsp;ACTJ.J&nbsp;say they support the goal of universal health coverage but they do not agree on the proposed funding model.



&#8220;There is no funding plan yet and given the country&#8217;s constrained fiscal position, low economic growth and narrow tax base, this can only be solved in the longer term,&#8221; said Adrian Gore, group CEO of Discovery.



&#8220;We see no scenario in which there is sufficient funding for a workable and comprehensive NHI in its current form.&#8221;



The NEHAWU labour union, part of the country&#8217;s COSATU federation which is in an alliance with the ANC, urged Ramaphosa and the Treasury to put their full political weight behind the NHI to ensure it is properly resourced.



But the chief whip of the Democratic Alliance (DA), the biggest opposition party, said the Act did not address systemic issues in the healthcare system. &#8220;What this government has done is essentially it has tried to put a band aid over a gashing wound,&#8221; the DA&#8217;s Siviwe Gwarube said.



The legislation is good in principle, but will face big challenges due to South Africa&#8217;s high unemployment rate and low tax base, and citizens&#8217; mistrust of government due to repeated corruption scandals, said Sivuyisiwe Wonci, a health policy researcher at the University of Johannesburg.



She estimated it would not be implemented for five to seven years but said signing it before the election was a strategic move.



&#8220;The African National Congress has a very big role to play in convincing the people that it cares about them. And healthcare,&#8230; it speaks to the hearts of the people.&#8221;



(Reporting by Nqobile Dludla and Nellie Peyton; Additional reporting by Bhargav Acharya in Johannesburg; Editing by Alexander Winning and Emelia Sithole-Matarise)

South Africa’s Ramaphosa to signs health insurance bill into law

South Africa’s president signs major health bill just before election

<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="720" height="405" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/05/IMG_4495.jpeg" alt="" class="wp-image-486984" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/05/IMG_4495.jpeg 720w, https://cms.cnbcafrica.com/wp-content/uploads/2024/05/IMG_4495-300x169.jpeg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/05/IMG_4495-160x90.jpeg 160w" sizes="auto, (max-width: 720px) 100vw, 720px" /><figcaption class="wp-element-caption">Photo: via CNBC</figcaption></figure>



Inflation eased slightly in April, providing at least a bit of relief for consumers while still holding above levels that would suggest a cut in interest rates is imminent.



The consumer price index, a broad measure of how much goods and services cost at the cash register, increased 0.3% from March, the Labor Department’s Bureau of Labor Services reported Wednesday. That was slightly below the Dow Jones estimate for 0.4%.



On a 12-month basis, however, the CPI increased 3.4%, in line with expectations.,



Excluding food and energy, the key core inflation reading came in at 0.3% monthly and 3.6% on an annual basis, both as forecast.



This is breaking news. Please check back for updates.

IMG_4495

U.S consumer prices rose 0.3% in April, less than expectations

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="429" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/05/GBZMQIYKR5O7TASYIDE6U6N6UY-820x429.jpg" alt="" class="wp-image-486962" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/05/GBZMQIYKR5O7TASYIDE6U6N6UY-820x429.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/05/GBZMQIYKR5O7TASYIDE6U6N6UY-300x157.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/05/GBZMQIYKR5O7TASYIDE6U6N6UY-160x84.jpg 160w, https://cms.cnbcafrica.com/wp-content/uploads/2024/05/GBZMQIYKR5O7TASYIDE6U6N6UY-768x402.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/05/GBZMQIYKR5O7TASYIDE6U6N6UY-1536x804.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/05/GBZMQIYKR5O7TASYIDE6U6N6UY.jpg 1920w" sizes="auto, (max-width: 820px) 100vw, 820px" /></figure>



ABUJA, May 15 (Reuters)&nbsp;&#8211;&nbsp;Nigeria&#8217;s headline consumer inflation&nbsp;NGCPIY=ECIaccelerated to a new 28-year high in April, hitting 33.69% year-on-year, up from 33.20% in March, statistics agency data showed on Wednesday.



Inflation in Africa&#8217;s most populous nation has been spurred by President Bola Tinubu&#8217;s administration&nbsp;slashing petrol and electricity subsidies and twice devaluing the local naira currency&nbsp;NGN=D1.



The central bank has raised interest rates twice this year, including its largest hike in around 17 years, as it struggles to contain the price pressures.



The central bank governor has indicated that rates will stay high for as long as needed to bring down inflation. The bank holds&nbsp;another rate-setting meeting next week.



Areport by the National Bureau of Statistics showed the food and non-alcoholic beverages category continued to be the biggest contributor to inflation in April.



Food inflation&nbsp;NGFINF=ECI, which accounts for the bulk of the inflation basket, reached 40.53% in annual terms, against 40.01% in March.



Price pressures have left millions of Nigerians grappling with the worst cost of living crisis in decades as they struggle to meet their basic needs.



To ease the pressure on government workers, Tinubu has announced a salary hike of up to 35% for civil servants. To help vulnerable households his government has also restarted a direct cash transfer programme and has distributed at least 42,000 tons of grains such as corn and millet.



(Reporting by Elisha Bala-Gbogbo; Additional reporting by Mohd Edrees; Editing by Alexander Winning and Gareth Jones)

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