<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="800" height="533" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/08/INJ75E5ILVP43B5TB5WUXDQSZ4.jpg" alt="" class="wp-image-519697" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/08/INJ75E5ILVP43B5TB5WUXDQSZ4.jpg 800w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/INJ75E5ILVP43B5TB5WUXDQSZ4-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/INJ75E5ILVP43B5TB5WUXDQSZ4-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/INJ75E5ILVP43B5TB5WUXDQSZ4-768x512.jpg 768w" sizes="auto, (max-width: 800px) 100vw, 800px" /><figcaption class="wp-element-caption">FILE PHOTO: A man receives a dose of the mpox vaccine at the Edison municipal vaccination centre in Paris, France July 27, 2022. Alain Jocard/Pool via REUTERS/File Photo</figcaption></figure>



Aug 16 (Reuters)&nbsp;&#8211;&nbsp;More imported cases of a new mpox strain will appear in Europe in the coming weeks but the risk of sustained transmission remains low, the head of Europe&#8217;s disease prevention agency said on Friday.



The agency raised its risk assessment for sporadic cases of mpox clade I in Europe to moderate on Friday. The risk was high for travellers to affected areas in Africa in close contact with people there, and moderate for their contacts.



&#8220;There will be more cases in the coming weeks. That&#8217;s the expectation&#8230; But regarding the risk [for the] general European population, we have to say that our assessment is that the risk is very low at the moment,&#8221; European Centre for Disease Prevention and Control director Pamela Rendi-Wagner said in an interview.



She called for European countries to&nbsp;step up&nbsp;preparedness and raise awareness to prevent further spread.



An outbreak of mpox in Democratic Republic of Congo caused by two different forms of mpox, an endemic form and a new offshoot called clade Ib, has caused global concern after it spread to more countries in Africa.



On Thursday, Sweden became the first country outside Africa to confirm a case of clade Ib. The WHO declared the outbreak a global health emergency on Wednesday.



The European CDC recommended that public health authorities plan and prepare for quick detection of any clade I cases that may reach Europe.



It predicts the impact from this strain of the virus will be low in Europe if proper surveillance and control measures are implemented, using the expertise garnered when another strain of mpox, clade II, spread globally in 2022.



During that emergency, the virus spread mainly among men who had sex with men, and behaviour change as well as vaccines helped bring it under control in Europe.



Mpox is a viral infection that causes flu-like symptoms and pus-filled lesions, and while usually mild, it can be fatal in rare cases. It spreads through close contact, including sexual contact, and clade Ib appears to spread more easily among people than other forms of the virus, although there are many open questions about its severity and transmissibility, Randi-Wagner said.



Anyone with symptoms and travel history or a contact with travel to affected areas in Africa should immediately contact a doctor, she added.



&#8220;Test, test, test, in order to find the suspect cases in Europe as soon as possible and avoid further spreading,&#8221; she said in recommendations to European public health authorities.



(Reporting by Bhanvi Satija in Bengaluru; Editing by Shinjini Ganguli and Angus MacSwan)

A man receives a dose of the mpox vaccine at the Edison municipal vaccination centre in Paris

More imported cases of new mpox strain in Europe expected, public health agency says

<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="800" height="529" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/08/U4ZO2CUGW5IUBMTRVQDPXQQ7R4.jpg" alt="" class="wp-image-518486" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/08/U4ZO2CUGW5IUBMTRVQDPXQQ7R4.jpg 800w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/U4ZO2CUGW5IUBMTRVQDPXQQ7R4-300x198.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/U4ZO2CUGW5IUBMTRVQDPXQQ7R4-136x90.jpg 136w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/U4ZO2CUGW5IUBMTRVQDPXQQ7R4-768x508.jpg 768w" sizes="auto, (max-width: 800px) 100vw, 800px" /><figcaption class="wp-element-caption">FILE PHOTO: Christian Musema, a laboratory nurse, takes a sample from a child declared a suspected case Mpox &#8211; an infectious disease caused by the monkeypox virus that spark-off a painful rash, enlarged lymph nodes and fever; at the the treatment centre in Munigi, following Mpox cases in Nyiragongo territory near Goma, North Kivu province, Democratic Republic of the Congo July 19, 2024. REUTERS/Arlette Bashizi/File Photo</figcaption></figure>



LONDON, Aug 16 (Reuters) &#8211; The World Health Organization has declared that an outbreak of mpox, a viral infection that spreads through close contact, represents a global health emergency for the second time in two years.



Here&#8217;s what that means.



<h2 class="wp-block-heading" id="h-what-is-mpox">WHAT IS MPOX?</h2>



Mpox is a viral infection that causes flu-like symptoms and pus-filled lesions, and while usually mild, it can kill. Children, pregnant women and people with weakened immune systems, such as those with HIV, are all at higher risk of complications.



The WHO declared the recent outbreak of the disease a public health emergency after a new offshoot of the mpox virus, first identified in Democratic Republic of Congo, began spreading to other neighbouring countries.



Mpox transmits through close physical contact, including sexual contact, but there is no evidence that it spreads easily through the air.



The new offshoot has caused global alarm because it appears to spread more easily between people.



<h2 class="wp-block-heading" id="h-what-is-a-global-health-emergency">WHAT IS A GLOBAL HEALTH EMERGENCY?</h2>



A &#8220;public health emergency of international concern&#8221;, or PHEIC, is the WHO&#8217;s highest form of alert. It is announced when diseases are spreading in new or unusual ways, and is aimed at galvanising international co-operation and funding to tackle an outbreak.



The WHO&#8217;s declaration follows a similar label from the Africa Centres for Disease Control and Prevention earlier this week.



<h2 class="wp-block-heading" id="h-why-is-mpox-an-emergency-again">WHY IS MPOX AN EMERGENCY AGAIN?</h2>



Two years ago, the WHO declared mpox was an emergency when a form of the disease, clade IIb, began to spread globally, largely among men who have sex with men.



That outbreak was brought under control after behaviour change and safe sex practices, plus vaccines, helped people at risk protect themselves in many countries.



But mpox has been a public health problem in parts of Africa for decades. The first ever human case was in Congo in 1970, and it has had outbreaks ever since.



The current outbreak, Congo&#8217;s worst ever, has seen 27,000 cases and more than 1,100 deaths since January 2023, largely among children.



Two strains of mpox are now spreading in Congo &#8211; the endemic form of the virus, clade I, and a new offshoot called clade Ib, with the term &#8216;clade&#8217; referring to a form of the virus.



The new offshoot has now moved from eastern Congo to Rwanda, Uganda, Burundi and Kenya.



Sweden reported the first case of the new form, clade Ib, outside Africa on Thursday.



A WHO spokesperson said the case reiterated the need for partnership, and the agency continues to advise against travel restrictions to stop the spread of mpox.



Pakistan on Friday also confirmed a case of the mpox virus in a patient who had returned from a Gulf country, though it was unclear whether it was of the new variant or of the clade that has been spreading globally since 2022.



<h2 class="wp-block-heading" id="h-what-happens-now">WHAT HAPPENS NOW?</h2>



Scientists hope that the emergency declarations will speed up efforts to get more medical tools and funding to Congo to help the authorities there tackle the outbreak. Better surveillance is needed to study the virus and help stop the spread.



But in 2022, a WHO appeal for $34 million to fight mpox got no take-up from donors, and there was huge inequity in who had access to vaccine doses. African countries had no access to the two shots used in the global outbreak, made by Bavarian Nordic and KM Biologics.



Two years later that remains the case, although there are efforts to change that, the WHO said on Wednesday as it appealed for dose donations from countries with stockpiles.



Africa CDC said it has a plan to secure doses, without elaborating further, but stocks are currently limited.



<h2 class="wp-block-heading" id="h-how-worried-should-i-be">HOW WORRIED SHOULD I BE?</h2>



Fatality rates vary, and depend heavily on the healthcare available to the sickest patients. In Congo in this outbreak, the rate across both clade I and clade Ib has been around 4%. Clade II, which spread globally, was much less deadly.



However, mpox is not COVID-19. There are tools that are proven to work to stop the spread and help those at risk, and it does not spread as easily.



The challenge now, which the emergency declarations aim to highlight, is making sure those tools reach those who need them most, in Congo and neighbouring countries.



(Reporting by Jennifer Rigby; Editing by Crispian Balmer and Jan Harvey)

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Japan’s quest for the most powerful microchip

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="521" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/08/RLVCCF47LVIWPJR4O2PPITYMVI-820x521.jpg" alt="" class="wp-image-516586" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/08/RLVCCF47LVIWPJR4O2PPITYMVI-820x521.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/RLVCCF47LVIWPJR4O2PPITYMVI-300x191.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/RLVCCF47LVIWPJR4O2PPITYMVI-142x90.jpg 142w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/RLVCCF47LVIWPJR4O2PPITYMVI-768x488.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/RLVCCF47LVIWPJR4O2PPITYMVI-1536x976.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/RLVCCF47LVIWPJR4O2PPITYMVI.jpg 1920w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">A teller handles U.S. dollar banknotes and Kenya shilling banknotes inside the cashier&#8217;s booth at a forex exchange bureau in downtown Nairobi, Kenya, February 16, 2024. REUTERS/Thomas Mukoya/File Photo</figcaption></figure>



NAIROBI, Aug 16 (Reuters) &#8211; Kenya&#8217;s shilling was stable against the U.S. dollar on Friday, but traders said they expected it to come under pressure from foreign-currency demand from the manufacturing sector.



At 0900 GMT, commercial banks quoted the shilling at 128.50/129.50 to the dollar, the same level it closed on Thursday.



Foreign-currency inflows for a 50 billion Kenyan shilling infrastructure bond auction earlier this week have helped support the local unit in recent sessions.



&#8220;There&#8217;s a lot of (FX) demand kicking in,&#8221; one trader said. &#8220;What had lifted the shilling was the infrastructure bond (auction). Now the (market) fundamentals are coming back into play.&#8221;



(Reporting by Hereward Holland; Editing by Alexander Winning)

RLVCCF47LVIWPJR4O2PPITYMVI

Kenyan shilling stable but traders see FX demand picking up

<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="2048" height="1368" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/08/IGCSI2ZMYJNARJNQD2J6NFMHZE-1-scaled.jpg" alt="" class="wp-image-519644" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/08/IGCSI2ZMYJNARJNQD2J6NFMHZE-1-scaled.jpg 2048w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/IGCSI2ZMYJNARJNQD2J6NFMHZE-1-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/IGCSI2ZMYJNARJNQD2J6NFMHZE-1-820x548.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/IGCSI2ZMYJNARJNQD2J6NFMHZE-1-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/IGCSI2ZMYJNARJNQD2J6NFMHZE-1-768x513.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/IGCSI2ZMYJNARJNQD2J6NFMHZE-1-1536x1026.jpg 1536w" sizes="auto, (max-width: 2048px) 100vw, 2048px" /><figcaption class="wp-element-caption">FILE PHOTO: Nigeria Finance Minister Wale Edun is interviewed by Karin Strohecker, Reuters Chief Correspondent Emerging Markets, during the G20 Finance Ministers and Central Bank Governors&#8217; Meeting at the IMF and World Bank’s 2024 annual Spring Meetings in Washington, U.S., April 18, 2024. REUTERS/Ken Cedeno/File Photo</figcaption></figure>



ABUJA, Aug 16 (Reuters)&nbsp;&#8211;&nbsp;Nigeria&#8217;s Finance Minister Wale Edun launched a $500 million dollar-denominated bond sale on the local market on Thursday, targeting domestic and foreign investors, the finance ministry said on Friday.



The ministry said in a statement that the move was part of plans to stabilise the naira currency by attracting dollars held by Nigerians abroad, as well as international investors who back reforms initiated by President Bola Tinubu.



Edun told Reuters in May that Nigeria would launch a diaspora bond in the third quarter. He said the bond would be issued locally but denominated in U.S. dollars.



While promoting the $500 million bond, Edun said on Thursday government revenue and expenditure had improved and interventions to reduce inflation were yielding results.



Nigeria&#8217;s headline inflation rate fell in July for the first time in well over a year, dipping to 33.40% in annual terms from 34.19% in June, data from the statistics agency showed on Thursday.



The ministry gave no details of the bond&#8217;s duration and when the sale will close.



Edun has considered plans for Nigeria to sell Eurobonds in the past. He said in the ministry&#8217;s statement that &#8220;the ratings system often does not favour the continent&#8221;. African issuers have faced challenges in international capital markets particularly with pricing for their debt.



In June, the World Bank approved a total of $2.25 billion loan for Nigeria to help stabilise its economy following reforms and to scale up support for the poor.



(Reporting by Camillus Eboh;Writing by Chijioke Ohuocha; Editing by Emelia Sithole-Matarise)

FILE PHOTO: Nigeria Finance Minister Wale Edun is interviewed at the IMF and World Bank’s 2024 annual Spring Meetings in Washington

Nigeria launches $500 million dollar bond on local market

<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="612" height="408" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/06/istockphoto-1076949610-612x612-1.jpg" alt="" class="wp-image-501467" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/06/istockphoto-1076949610-612x612-1.jpg 612w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/istockphoto-1076949610-612x612-1-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/istockphoto-1076949610-612x612-1-135x90.jpg 135w" sizes="auto, (max-width: 612px) 100vw, 612px" /></figure>



JOHANNESBURG, Aug 16 (Reuters)&nbsp;&#8211;&nbsp;The following scheduled economic events, equity and currency market moves may affect South African markets on Friday.



<h2 class="wp-block-heading" id="h-economic-events">ECONOMIC EVENTS</h2>



Inflation-linked bond auction



<h2 class="wp-block-heading" id="h-south-african-markets">SOUTH AFRICAN MARKETS</h2>



South Africa&#8217;s rand was not deterred by dollar gains on Thursday, firming after stronger-than-expected U.S. economic data and as markets look toward Federal Reserve comments at a meeting of global central bankers next week.



<h2 class="wp-block-heading" id="h-global-markets">GLOBAL MARKETS</h2>



Asia shares were headed for a weekly gain on Friday and Japan&#8217;s Nikkei was poised for its best week in over four years as upbeat risk sentiment spilled over from Wall Street, while the dollar and U.S. Treasury yields held steady.



<h2 class="wp-block-heading" id="h-wall-street">WALL STREET</h2>



Wall Street&#8217;s main indexes closed higher on Thursday, with the Nasdaq rising more than 2% after July U.S. retail sales data signalled resilient consumer spending, allaying fears of an imminent recession in the world&#8217;s largest economy.



<h2 class="wp-block-heading" id="h-gold">GOLD</h2>



Gold prices steadied on Friday and were headed for a weekly gain on optimism about a U.S. interest rate cut, while traders wait for Federal Reserve Chairman Jerome Powell&#8217;s speech due next week for cues on the size of the cut.



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



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



<h2 class="wp-block-heading" id="h-business-day">BUSINESS DAY</h2>



&#8211; Lesetja Kganyago says monetary policy no panacea for inequality



&#8211; Now medical professionals say they will not sign Ramaphosa&#8217;s health compact



&#8211; Rand firms below R18/$ for the first time in a month



<h2 class="wp-block-heading" id="h-fin-24">FIN 24</h2>



&#8211; Why Standard Bank is betting on insurance and investments in SA, Nigeria and Kenya



(Compiled by Alexander Winning)

istockphoto-1076949610-612×612-1

South African Markets – Factors to watch on Aug 16

<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="612" height="357" src="https://cms.cnbcafrica.com/wp-content/uploads/2021/04/istockphoto-1030878162-612x612-1.jpg" alt="" class="wp-image-400669" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2021/04/istockphoto-1030878162-612x612-1.jpg 612w, https://cms.cnbcafrica.com/wp-content/uploads/2021/04/istockphoto-1030878162-612x612-1-300x175.jpg 300w" sizes="auto, (max-width: 612px) 100vw, 612px" /><figcaption class="wp-element-caption">World map with charts and graphs as symbols of global finance</figcaption></figure>



Aug 16 (Reuters) &#8211; The following company announcements, scheduled economic indicators, debt and currency market moves and political events may affect African markets on Friday.



<h2 class="wp-block-heading" id="h-global-markets">GLOBAL MARKETS</h2>



Asia shares were headed for a weekly gain on Friday and Japan&#8217;s benchmark Nikkei was poised for its best week in over four years as upbeat risk sentiment spilled over from Wall Street, while the dollar and U.S. Treasury yields held broadly steady.



<h2 class="wp-block-heading" id="h-world-oil-prices">WORLD OIL PRICES</h2>



Oil prices edged lower in early Asian trading on Friday, but the market&#8217;s benchmarks were set for a second consecutive weekly gain after upbeat U.S. economic data eased investor worries about a potential recession in the top oil consuming nation.



<h2 class="wp-block-heading" id="h-africa-markets">AFRICA MARKETS</h2>



The Kenyan and Ghanaian currencies are expected to be broadly stable in the next week to Thursday, while the Nigerian, Ugandan and Zambian currencies could fall, traders said.



<h2 class="wp-block-heading" id="h-south-africa-markets">SOUTH AFRICA MARKETS</h2>



South Africa&#8217;s rand was not deterred by dollar gains on Thursday, firming after stronger-than-expected U.S. economic data and as markets look toward Federal Reserve comments at a meeting of global central bankers next week, analysts said.



<h2 class="wp-block-heading" id="h-kenya-markets">KENYA MARKETS</h2>



Kenya&#8217;s shilling was unchanged against the U.S. dollar on Thursday, despite a slight uptick in foreign exchange demand from fuel traders and manufacturers, traders said.



<h2 class="wp-block-heading" id="h-africa-mpox">AFRICA MPOX</h2>



Global health officials on Thursday confirmed an infection with a new strain of the mpox virus in Sweden and linked it to a growing outbreak in Africa, the first sign of its spread outside the continent a day after the World Health Organization declared the disease a global public health emergency.



<h2 class="wp-block-heading" id="h-nigeria-pipeline">NIGERIA PIPELINE</h2>



Nigeria and Equatorial Guinea have signed an agreement to establish and operate a gas pipeline, Nigerian presidential spokesperson Ajuri Ngelale said in a statement on Thursday.



((Compiled by Nairobi Newsroom))

World map with charts and graphs as symbols of global finance

African Markets – Factors to watch on Aug 16

<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="2048" height="1365" src="https://cms.cnbcafrica.com/wp-content/uploads/2022/11/GettyImages-1242149589-scaled.jpg" alt="" class="wp-image-420995" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2022/11/GettyImages-1242149589-scaled.jpg 2048w, https://cms.cnbcafrica.com/wp-content/uploads/2022/11/GettyImages-1242149589-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2022/11/GettyImages-1242149589-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2022/11/GettyImages-1242149589-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2022/11/GettyImages-1242149589-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2022/11/GettyImages-1242149589-1536x1024.jpg 1536w" sizes="auto, (max-width: 2048px) 100vw, 2048px" /><figcaption class="wp-element-caption">NAIROBI, KENYA &#8211; 2022/07/27: A Kenya Airways plane seen parked at the parking bay of the Jomo Kenyatta International Airport in Nairobi. (Photo by John Ochieng/SOPA Images/LightRocket via Getty Images)</figcaption></figure>



NAIROBI, Aug 16 (Reuters)&nbsp;&#8211;&nbsp;The Kenya Airports Authority&nbsp;(KAA)&nbsp;said on Friday that it had contingency measures in place to prevent a strike by the country&#8217;s main aviation union that is set to begin on Aug. 19 from disrupting airport operations.



The Kenya Aviation Workers Union, which represents workers at airports and the national carrier Kenya Airways, said it would launch industrial action from Monday over a proposed deal with India&#8217;s Adani Airports Holdings to develop the country&#8217;s biggest airport in the capital Nairobi.



The union has said it thinks the Adani deal will lead to job losses and bring in non-Kenyan workers, and referred to it in a strike notice as the &#8220;intended sale&#8221; of Jomo Kenyatta International Airport.



Kenya&#8217;s government has said the airport is not for sale and that no decision had been made on whether to proceed with what it called a proposed public-private partnership to upgrade the East African travel hub.



&#8220;Discussions are ongoing between the Ministry of Roads and Transport, Ministry of Labour and Social Protection, KAA Management and Kenya Aviation Workers Union to reach an amicable agreement,&#8221; the airports authority said in a statement.



(Reporting by Humphrey Malalo; Writing by Hereward Holland; Editing by Alexander Winning)

A Kenya Airways plane seen parked at the parking bay of the

Kenya Airports Authority says Aug. 19 strike won’t disrupt operations

<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="929" height="523" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/08/108021270-1723768369491-gettyimages-2157639739-CHINA_LUJIAZUI_FORUM.jpeg" alt="" class="wp-image-519571" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/08/108021270-1723768369491-gettyimages-2157639739-CHINA_LUJIAZUI_FORUM.jpeg 929w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/108021270-1723768369491-gettyimages-2157639739-CHINA_LUJIAZUI_FORUM-300x169.jpeg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/108021270-1723768369491-gettyimages-2157639739-CHINA_LUJIAZUI_FORUM-820x462.jpeg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/108021270-1723768369491-gettyimages-2157639739-CHINA_LUJIAZUI_FORUM-160x90.jpeg 160w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/108021270-1723768369491-gettyimages-2157639739-CHINA_LUJIAZUI_FORUM-768x432.jpeg 768w" sizes="auto, (max-width: 929px) 100vw, 929px" /><figcaption class="wp-element-caption">Pan Gongsheng, governor of the People’s Bank of China (PBOC), during the Lujiazui Forum in Shanghai, China, on Wednesday, June 19, 2024.  Bloomberg | Bloomberg | Getty Images</figcaption></figure>



BEIJING — China’s financial risks have dropped, including from local government debt, People’s Bank of China Governor Pan Gongsheng said in state media interviews published late Thursday.



Pan also said the central bank will work with the Ministry of Finance to enable China to reach its full-year growth targets. He said that monetary policy would remain supportive.



Beijing has increasingly prioritized addressing risks from high debt levels in the real estate sector, which is closely linked to local government finances. International institutions have long called on China to reduce its ballooning debt levels.



“China’s overall financial system is sound. The overall risk level has significantly declined,” Pan said in an interview released by state broadcaster CCTV. That’s according to a CNBC translation of the transcript.



He noted that “the number and debt levels of local government financing platforms are declining,” and that the cost of their debt burden has “dropped significantly.”



Local government financing vehicles emerged in China in the last two decades to enable local authorities, who couldn’t easily borrow directly, to fund infrastructure and other projects. LGFVs primarily obtained financing from shadow banking.



The lack of regulatory oversight often meant indiscriminate funding of infrastructure projects with limited financial return. That raised the debt burden on LGFVs, for which the local governments are responsible.



Coordinated efforts in the last year by local governments, financial institutions and investors have “alleviated the most pressing repayment needs of the weakest LGFVs and boosted market sentiment,” S&amp;P Global Ratings analysts said in a July 25 report, one year since Beijing made a concerted effort to reduce LGFV risk.



However, the report said LGFV debt “remains a big problem.” The analysis found that more than 1 trillion yuan ($140 billion) of LGFV bonds are due to mature over the next couple of quarters, while such debt growth remains in the high single digits.



Exacerbating debt challenges is China’s slowing growth. The economy grew by 5% in the first half of the year, raising concerns among analysts that the country would not be able to reach its target of around 5% growth for the full year without additional stimulus.



The International Monetary Fund on Aug. 2 said in its regular review of China’s financial situation that macroeconomic policy should support domestic demand to mitigate debt risks.



“Small and medium-sized commercial and rural banks are the weak link in the large banking system,” the IMF report said, noting China has nearly 4,000 such banks that account for 25% of total banking system assets.



<h2 class="wp-block-heading" id="h-addressing-real-estate"><a></a>Addressing real estate</h2>



The number of high-risk small and medium-sized banks has dropped to half of what it was at their peak, Pan said via state media on Thursday, without sharing specific figures.



In real estate, he pointed out the mortgage down payment ratio has reached a record low of 15% in China, and that interest rates are also low. Pan noted central authorities are helping local governments with financing so they can acquire property and turn them into affordable housing or rental units.



Property and related sectors once accounted for at least one-fourth of China’s economy. But in recent years Beijing has sought to shift the country away from relying on real estate for growth, toward advanced tech and manufacturing.



Pan’s public comments come after a week of heightened volatility in the government bond market.



Earlier on Thursday, the PBOC made the rare decision to delay a rollover of its medium-term lending facility in favor of a 577.7 billion yuan capital injection via another tool called the 7-day reverse repurchase agreement. Pan highlighted that 7-day tool in June when discussing PBOC efforts to revamp its monetary policy structure.



The PBOC is scheduled Tuesday morning to release its monthly loan prime rate, another benchmark rate. The central bank cut the 1-year and 5-year loan prime rates by 10 basis points each in July, after keeping the 1-year unchanged for 10 straight months, and the 5-year unchanged for four months.

108021270-1723768369491-gettyimages-2157639739-CHINA_LUJIAZUI_FORUM

China’s central bank says risks from local government debt have dropped

What does it take to become a BMX pro?

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/08/NXWKCDUVZNLTBAFY4YNDDH4KKA-820x547.jpg" alt="" class="wp-image-519326" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/08/NXWKCDUVZNLTBAFY4YNDDH4KKA-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/NXWKCDUVZNLTBAFY4YNDDH4KKA-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/NXWKCDUVZNLTBAFY4YNDDH4KKA-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/NXWKCDUVZNLTBAFY4YNDDH4KKA-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/NXWKCDUVZNLTBAFY4YNDDH4KKA-1536x1024.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/NXWKCDUVZNLTBAFY4YNDDH4KKA-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">A woman receives a bag of food from the government during the distribution of food items by the government to cushion the high cost of living in Abuja, Nigeria, September 20, 2022. REUTERS/Afolabi Sotunde/File Photo</figcaption></figure>



ABUJA, Aug 15 (Reuters) &#8211; Nigeria&#8217;s headline inflation rate fell in July for the first time in well over a year, dipping to 33.40% in annual terms from 34.19% in June, data from the statistics agency showed on Thursday.



Analysts had said June&#8217;s reading could mark the peak in inflation as currency devaluation effects start to fade.



July&#8217;s slowdown will bring some relief to frustrated Nigerians, who protested this month over cost-of-living pressures and governance issues in Africa&#8217;s most populous nation.



Price pressures have been stoked by President Bola Tinubu&#8217;s decision to remove a decades-old fuel subsidy, devalue the naira currency and hike electricity tariffs. The reforms are aimed at lifting economic growth and shoring up public finances but have sent inflation soaring, eroding people&#8217;s incomes.



The last month that annual inflation fell was December 2022.



The central bank has increased interest rates four times this year to try to get inflation under control, but after the last hike in July some analysts said that could be the final act in the bank&#8217;s hiking cycle.



The Central Bank of Nigeria&#8217;s next rate setting meeting is scheduled for late September.



A report by the National Bureau of Statistics on Thursday showed food and non-alcoholic beverages continued to be the biggest contributor to inflation in July.



Food inflation eased to 39.53% from 40.87% in June.



(Additional reporting by Shamsuddin Mohd; Editing by Alexander Winning and Tomasz Janowski)

A woman receives a bag of food from the government during the distribution of food items by the government to cushion the high cost of living in Abuja

Nigeria inflation falls for first month in well over a year

<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="2048" height="1565" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/08/0L2A1262-1-scaled.jpg" alt="" class="wp-image-519322" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/08/0L2A1262-1-scaled.jpg 2048w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/0L2A1262-1-300x229.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/0L2A1262-1-820x627.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/0L2A1262-1-118x90.jpg 118w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/0L2A1262-1-768x587.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/0L2A1262-1-1536x1174.jpg 1536w" sizes="auto, (max-width: 2048px) 100vw, 2048px" /><figcaption class="wp-element-caption">Thembinkosi Mkalipi, Acting Deputy Director General (DDG) for Labour Policy and Industrial Relations at the Department of Employment and Labour</figcaption></figure>



The 2023-2024 Commission for Employment Equity (CEE) Annual Report (24th CEE Annual Report) published by the Department of Employment and Labour (DEL) marks a significant milestone in the nation’s ongoing journey towards workplace equality and inclusivity.



This year&#8217;s report not only highlights the progress made but also sets a hopeful tone for the future of employment equity in South Africa.



One of the most commendable aspects of the 2023-2024 EE Annual report is its clear demonstration of the positive impact of the Employment Equity Act. The Act’s primary goal is to promote equal opportunity and fair treatment in employment through the elimination of unfair discrimination and the implementation of affirmative action measures. This year’s report shows that these measures are bearing fruit, with a notable increase in the representation of designated groups across various occupational levels.



The report also underscores the importance of the amendments to the Employment Equity Act, which aim to reduce the regulatory burden on small businesses and empower the Minister to regulate sector-specific EE numerical targets. These amendments are crucial for ensuring that the principles of equity are applied consistently across all sectors, thereby fostering a more inclusive economy.



Moreover, the 2023-2024 report highlights the significant strides made in gender equality. There has been a marked increase in the representation of women in professionally qualified/ middle management positions, reflecting a positive shift towards gender parity in the workplace. This progress is a testament to the effectiveness of targeted affirmative action measures and the commitment of both the government and the private sector to fostering an inclusive work environment.



Another noteworthy aspect of the report is its emphasis on accountability and compliance. The introduction of the EE Compliance Certificate as a prerequisite for access to State contracts is a strategic move to ensure that businesses adhere to the principles of employment equity. This measure not only promotes compliance but also incentivises businesses to prioritise diversity and inclusion in their workforce.



The Employment Equity Compliance Certificate seen as a catalyst of driving change and a crucial component of South Africa&#8217;s efforts to promote workplace equality. This certificate is mandatory for businesses irrespective of their size that wish to engage in contracts with any State entity, ensuring that companies doing business with the government adhere to employment equity principles.



To obtain the certificate, all employers must meet several criteria. Noteworthy is that for designated employers that employ 50 or more, they must submit an annual EE report, comply with their own annual EE targets towards the five-year sector EE target, adhere to the National Minimum Wage (NMW) or have an exemption granted not to pay the NMW for the previous 12 months, and have no unfair discrimination awards against them from the Commission for Conciliation, Mediation and Arbitration (CCMA) in the previous 12 months.



The EE Compliance Certificate is valid for 12 months from the date of issue. This means businesses need to maintain compliance continuously to renew their certificate annually.



The certificate aims to strengthen compliance with the Employment Equity Act and promote real transformation in the workplace. By making the certificate a prerequisite for state contracts, the government incentivises businesses that promote equity and transformation in their workplaces by prioritising diversity and inclusion.



The amendments to the Employment Equity Act also aim to reduce the regulatory burden on small businesses, ensuring that the compliance requirements are manageable and do not hinder their operations.



It is significant to highlight that the process of issuing the EE Compliance Certificate will be automated. To apply Online for the Employment Equity Compliance Certificate, businesses must follow a structured process to ensure they meet all necessary criteria. Here are the steps involved:



First, businesses that employ 50 or more employees must submit an annual Employment Equity report. This report should detail the company’s progress in implementing employment equity measures and achieving set targets.



Second, businesses must comply with their own annual EE targets towards the five-year sector EE target. This involves setting and working towards specific goals that align with the broader sector targets established by the Department of Employment and Labour.



Third, businesses must adhere to the National Minimum Wage (NMW) or have an exemption granted not to pay the NMW for the previous 12 months. This ensures that all employees are compensated fairly according to national standards.



Fourth, businesses must have no unfair discrimination awards against them from the Commission for Conciliation, Mediation, and Arbitration (CCMA) in the previous 12 months.



This criterion ensures that companies maintain fair and equitable practices in their operations. Once these criteria are met, businesses can apply for the EE Compliance Certificate through the DEL’s online system.



If a business fails to meet the Employment Equity compliance criteria, the Department of Employment and Labour can impose several penalties. For a first-time offense, the business may face a fine of the greater of R1.5 million or 2% of its turnover. If the business has previously contravened the provision, the fine increases to the greater of R1.8 million or 4% of its turnover. For repeat offenders, the fines can reach up to R2.7 million or 10% of annual turnover, whichever is greater.



Additionally, businesses that fail to comply may be referred to the Labour Court, where penalties can be imposed. The court considers various factors when determining the appropriate penalty, including the extent and duration of the non-compliance, the employer’s intentions, and investments in workforce development.



Non-compliant businesses may also be excluded from State contracts, as the EE Compliance Certificate is a prerequisite for engaging in contracts with any state entity. This exclusion can significantly impact a business’s opportunities and revenue.



Ensuring compliance with the EE criteria is crucial for businesses to avoid these penalties and contribute to a more equitable and inclusive workplace. Businesses can play a crucial role in advancing employment equity by implementing a variety of strategies. Developing comprehensive diversity and inclusion policies is essential. These policies and practices should promote diversity and inclusion at all levels of the organisation, addressing recruitment, retention, promotion, and workplace culture.



Conducting regular equity audits is another important step. By regularly assessing the company&#8217;s practices and policies, businesses can identify areas where inequities may exist and use the findings to make informed changes and improvements.



Providing training and education on diversity, equity, and inclusion helps employees understand the importance of these values and how to incorporate them into their daily work. Fostering an inclusive culture is also crucial. Encouraging an inclusive workplace culture where all employees feel valued and respected can be achieved through open communication, employee resource groups, and celebrating diverse backgrounds and perspectives.



Implementing fair recruitment practices ensures that recruitment processes are free from bias and unfair discrimination. This can include using diverse hiring panels, standardising interview questions, and actively seeking candidates from underrepresented groups.



Supporting career development by providing opportunities for advancement, particularly for those from underrepresented groups, is vital. This can include mentorship programs, leadership and management training, and clear pathways for promotion.



Setting and tracking diversity goals is important for accountability. Establishing specific, measurable goals for diversity and inclusion and regularly tracking progress towards these goals helps ensure that leadership is held accountable.



Engaging with the community by partnering with community organisations, educational institutions, and other stakeholders supports broader diversity and inclusion efforts. This can include internships, scholarships, and community outreach programs.



Promoting work-life balance through flexible work arrangements, such as remote work options, flexible hours, and generous parental leave policies, helps attract and retain a diverse workforce.



Ensuring pay equity by conducting regular pay audits ensures that employees are compensated fairly and equitably. Addressing any pay disparities that are found is essential for maintaining fairness in the workplace and promoting the principle of equal pay for work of equal value. By implementing these strategies, businesses can create a more equitable and inclusive workplace, benefiting both employees and the organisation as a whole.



The 2023-2024 Employment Equity report is a beacon of progress and hope. It reflects the collective efforts of the government, businesses, and civil society in creating a more equitable and inclusive workplace. As South Africa continues to build on these achievements, the future looks promising for employment equity, with the potential to unlock greater economic growth and social cohesion. The journey towards full employment equity is ongoing, but the strides made thus far are indeed worth celebrating.



The 2024 Employment Equity roadshows, organised by the Department of Employment and Labour, are currently taking place across South Africa. These workshops, which began on August 6th and will run until September 18th, 2024, aim to address and promote diversity and inclusion in the workplace under the theme &#8220;Bridging the Equity Gap Through Diversity &amp; Inclusion&#8221;. The roadshows focus on the current status of employment equity, updates on EE amendments, and insights into unfair discrimination cases. They are designed to engage employers, HR practitioners, trade unions, and other stakeholders in meaningful discussions to foster a more equitable work environment.

0L2A1262 1

Employment Equity Progress Report highlights the collaborative efforts of government, businesses, and civil society in fostering a fairer, more inclusive, and diversified workplace

The Crimes of Putin’s Trader: How rich Russian hackers stole millions from U.S. investors

<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="1920" height="1005" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/08/LYEEWJTJKRPK3GJPCKWFP3EK7E.jpg" alt="" class="wp-image-519304" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/08/LYEEWJTJKRPK3GJPCKWFP3EK7E.jpg 1920w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/LYEEWJTJKRPK3GJPCKWFP3EK7E-300x157.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/LYEEWJTJKRPK3GJPCKWFP3EK7E-820x429.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/LYEEWJTJKRPK3GJPCKWFP3EK7E-160x84.jpg 160w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/LYEEWJTJKRPK3GJPCKWFP3EK7E-768x402.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/LYEEWJTJKRPK3GJPCKWFP3EK7E-1536x804.jpg 1536w" sizes="auto, (max-width: 1920px) 100vw, 1920px" /><figcaption class="wp-element-caption">A teller counts Kenya shilling notes inside the cashier&#8217;s booth at a forex exchange bureau in Kenya&#8217;s capital Nairobi, April 20, 2016. REUTERS/Thomas Mukoya/File Photo</figcaption></figure>



NAIROBI, Aug 15 (Reuters)&nbsp;&#8211;&nbsp;The Kenyan and Ghanaian currencies are expected to be broadly stable in the next week to Thursday, while the Nigerian, Ugandan and Zambian currencies could fall, traders said.



<h2 class="wp-block-heading" id="h-kenya">KENYA</h2>



Kenya&#8217;s shilling has in recent weeks shrugged off major demonstrations which forced the government to abandon tax hikes and triggered credit rating downgrades. It is seen remaining relatively steady.



This week traders said foreign-currency inflows for a bond auction had played a role supporting the currency.



Commercial banks quoted the shilling at 128.50/129.50 per dollar on Thursday, compared with last Thursday&#8217;s closing rate of 128.75/129.75.



<h2 class="wp-block-heading" id="h-nigeria">NIGERIA</h2>



Nigeria&#8217;s naira could slip on the official market, unless the central bank intervenes to ease the pressure.



LSEG data showed the naira was quoted at 1,582 to the dollar on the official market, compared with around 1,580 a week ago. The unit changed hands at 1,595 naira to the dollar in street trading on Thursday.



The central bank injected dollars into the market last week, but pressure on the currency is building again.



&#8220;It&#8217;s most likely going to continue depreciating unless the central bank intervenes again,&#8221; one trader said.



<h2 class="wp-block-heading" id="h-ghana">GHANA</h2>



Ghana&#8217;s cedi is expected to remain steady on the back of improved dollar liquidity and a slowdown in demand on the interbank market.



LSEG data showed the cedi trading at 15.60 to the dollar, from 15.52 at last Thursday&#8217;s close.



&#8220;The cedi has posted marginal gains in recent sessions as FX liquidity has improved and corporate demand reduced,&#8221; said Sedem Dornoo, a senior trader at Absa Bank Ghana.



&#8220;In the coming week, we expect a relatively stable (dollar-cedi) pair, with bid-offer spreads narrowing as liquidity continues to improve,&#8221; he added.



<h2 class="wp-block-heading" id="h-uganda">UGANDA</h2>



Uganda&#8217;s shilling is seen trading with a weakening tone on an expected pick-up in dollar demand after mid-month tax payments.



Commercial banks quoted the shilling at 3,720/3,730 to the dollar, compared with last Thursday&#8217;s close of 3,725/3,735.



&#8220;Typically after mid-month taxes we see a surge in interest for dollars, I think that dynamic is likely to push the shilling on the lower side (weaker),&#8221; one trader said.



<h2 class="wp-block-heading" id="h-zambia">ZAMBIA</h2>



Zambia&#8217;s kwacha could post minor losses because of elevated dollar demand in the wake of a severe drought which has spurred imports.



On Thursday the kwacha was slightly weaker at 26.25 per dollar, from 26.05 a week ago.



&#8220;Dollar supply remains limited and demand continues to be high, putting pressure on the kwacha,&#8221; one trader said.



(Reporting by Hereward Holland, Chijioke Ohuocha, Christian Akorlie, Elias Biryabarema and Chris Mfula;Editing by Alexander Winning)

LYEEWJTJKRPK3GJPCKWFP3EK7E

Kenya and Ghana currencies seen steady

<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="800" height="559" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/08/DH62NRAIFZKMXEUDMGT2BNEGPY.jpg" alt="" class="wp-image-519182" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/08/DH62NRAIFZKMXEUDMGT2BNEGPY.jpg 800w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/DH62NRAIFZKMXEUDMGT2BNEGPY-300x210.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/DH62NRAIFZKMXEUDMGT2BNEGPY-129x90.jpg 129w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/DH62NRAIFZKMXEUDMGT2BNEGPY-768x537.jpg 768w" sizes="auto, (max-width: 800px) 100vw, 800px" /><figcaption class="wp-element-caption">A woman walks past a Standard Bank logo at the Investing in African Mining Indaba 2024 conference in Cape Town, South Africa February 7, 2024. REUTERS/Esa Alexander/File Photo</figcaption></figure>



JOHANNESBURG, Aug 15 (Reuters) &#8211; Africa&#8217;s biggest lender by assets Standard Bank said on Thursday its half-year profit rose by 4%, with performance supported by franchise growth in its banking businesses and strong earnings growth in its insurance and asset management unit.



South Africa-based Standard Bank said headline earnings&nbsp;rose&nbsp;to 22 billion rand ($1.22 billion) in the six months ended June 30, up from 21.2 billion rand in the previous year.



Standard Bank, with operations in 20 sub-Saharan African countries, said further earnings growth was hindered by currency devaluations across its operations in the rest of Africa, which contributed 41% to group headline earnings.



Net interest income (NII) &#8211; the amount banks earn from loans minus what they pay on deposits- in its banking business grew by 7%.



Gross loans and advances grew by 3% to 1.7 trillion rand, as increased competition and higher interest rates negatively impacted demand and affordability, resulting in subdued growth in the bank&#8217;s retail portfolios.



This, however, &#8220;was more than offset by strong momentum in the corporate and sovereign lending portfolio&#8221; supported by projects in the energy and infrastructure sector.



Total provisions for credit impairments increased by 8% to 66.8 billion rand, while credit impairment charges decreased by 15% to 8 billion rand.



($1 = 18.0562 rand)



(Reporting by Nqobile Dludla; Editing by Kim Coghill and Toby Chopra)

Investing in African Mining Indaba 2024 conference in Cape Town

South Africa’s Standard Bank posts 4% rise in half-year profit

<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="1200" height="675" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/08/108020266-1723639428249-gettyimages-2160057485-UK_YORK.png" alt="" class="wp-image-519226" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/08/108020266-1723639428249-gettyimages-2160057485-UK_YORK.png 1200w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/108020266-1723639428249-gettyimages-2160057485-UK_YORK-300x169.png 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/108020266-1723639428249-gettyimages-2160057485-UK_YORK-820x461.png 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/108020266-1723639428249-gettyimages-2160057485-UK_YORK-160x90.png 160w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/108020266-1723639428249-gettyimages-2160057485-UK_YORK-768x432.png 768w" sizes="auto, (max-width: 1200px) 100vw, 1200px" /><figcaption class="wp-element-caption">A guided tour in the center of in York, UK, on Friday, June 7, 2024. Bloomberg | Bloomberg | Getty Images</figcaption></figure>



The U.K. economy grew by 0.6% in the second quarter of the year, the Office for National Statistics said Thursday, continuing the country’s cautious recession rebound.



The reading was in line with the expectations of economists polled by Reuters and follows an expansion of 0.7% in the first quarter.



Economic growth was flat in June, in line with a Reuters poll, as activity in the U.K.’s dominant services sector dipped 0.1%. Construction and production output rose by a respective 0.5% and 0.8% in the month.



The British economy has recorded slight but steady growth almost every month so far this year, as the U.K. exits a shallow recession. GDP was also flat in April, when wet weather quelled retail sales and construction output.



On an annual basis the economy was 0.9% bigger in the second quarter, against a forecast of 0.8%.



“These figures confirm that the UK’s recovery from recession picked up steam in the second quarter, despite strike action and wet weather causing activity to flatline in June,” Suren Thiru, economics director at the Institute of Chartered Accountants in England and Wales, said in a note.



“The UK’s strong second quarter owes more to temporary momentum from the large recent falls in inflation and a boost to consumer spending from events like Euro 2024 than from a meaningful improvement in the UK’s underlying growth trajectory,” Thiru continued.



The pace of growth is unlikely to continue into the second half amid weaker wage growth, high interest rates and supply challenges, Thiru added.



U.K. inflation rose to 2.2% in July, data published Wednesday by the ONS showed, coming in slightly below a consensus forecast of 2.3%. The headline figure had been at the Bank of England’s 2% target rate for the two months prior, helping spur the central bank’s decision to cut interest rates by 25 basis points at the start of August.



The July figures were described by analysts as supportive of consistent monetary easing through the rest of the year, despite stubbornness in services inflation.



Over the April-June period, U.K. wage growth excluding bonuses cooled to a two-year low, but remained relatively hot at&nbsp;5.4%.



Richard Carter, head of fixed interest research at Quilter Cheviot, said lower interest rates should “help stimulate more economic growth by making borrowing more affordable for households and businesses” in the coming months — but noted that it would take time for the impact to be felt.



The British pound ticked slightly higher following Thursday’s GDP release, and was up by 0.1% against the U.S. dollar and 0.2% against the euro at 7:35 a.m. in London.



Institutions including the International Monetary Fund, investment bank Goldman Sachs and the Bank of England have all hiked their growth forecasts for the U.K. economy in recent months. The IMF now sees growth of 0.7% this year, up from 0.5% previously.



Factors cited include the decline in inflation and reforms to planning and business rules planned by the new Labour government, which took office in July. Prime Minister Keir Starmer and Finance Minister Rachel Reeves have repeatedly stated that boosting economic growth will be the bedrock of their policymaking, setting a target for the U.K. to achieve the fastest per capita GDP growth among the Group of 7 nations.



“The new Government is under no illusion as to the scale of the challenge we have inherited after more than a decade of low economic growth and a £22 billion black hole in the public finances,” Reeves said in a statement Thursday.



Labour is due to deliver its first budget on Oct. 30, with analysts saying the announcement will give more clarity on the government’s fiscal strategy and plans for changes to taxation and public spending.



Because of this, “it is unlikely that we will see a marked acceleration in GDP in the short term,” said Quilter Cheviot’s Richard Carter.



“For now, the economy is expected to continue on its relatively moderate growth path, bolstered by wage growth that remains ahead of inflation and the recent easing of monetary policy,” he added.

108020266-1723639428249-gettyimages-2160057485-UK_YORK

UK economy expands 0.6% in second quarter; June growth stalls

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South Africa’s Standard Bank posts 4% rise in half-year profit

UK economy expands 0.6% in second quarter; June growth stalls

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More imported cases of new mpox strain in Europe expected, public health agency says

Why is mpox an emergency again, and how worried should I be?

Japan’s quest for the most powerful microchip

Kenyan shilling stable but traders see FX demand picking up

Nigeria launches $500 million dollar bond on local market

South African Markets – Factors to watch on Aug 16

African Markets – Factors to watch on Aug 16

Kenya Airports Authority says Aug. 19 strike won’t disrupt operations

China’s central bank says risks from local government debt have dropped

What does it take to become a BMX pro?

Nigeria inflation falls for first month in well over a year

Employment Equity Progress Report highlights the collaborative efforts of government, businesses, and civil society in fostering a fairer, more inclusive, and diversified workplace

The Crimes of Putin’s Trader: How rich Russian hackers stole millions from U.S. investors

Kenya and Ghana currencies seen steady

South Africa’s Standard Bank posts 4% rise in half-year profit

UK economy expands 0.6% in second quarter; June growth stalls

Apple didn’t mention China in its big AI launch. Why?

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