<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="740" height="416" src="https://cms.cnbcafrica.com/wp-content/uploads/2021/08/106853072-1615536312825-gettyimages-1230847366-AFP_8ZR4WW.jpeg" alt="" class="wp-image-411513" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2021/08/106853072-1615536312825-gettyimages-1230847366-AFP_8ZR4WW.jpeg 740w, https://cms.cnbcafrica.com/wp-content/uploads/2021/08/106853072-1615536312825-gettyimages-1230847366-AFP_8ZR4WW-300x169.jpeg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2021/08/106853072-1615536312825-gettyimages-1230847366-AFP_8ZR4WW-160x90.jpeg 160w" sizes="(max-width: 740px) 100vw, 740px" /><figcaption>A man walks past TSMC’s logo at the company’s headquarters in Hsinchu, Taiwan. TSMC is the world’s largest semiconductor foundry. Sam Yeh | AFP | Getty Images</figcaption></figure>



The world’s largest chipmaker Taiwan Semiconductor Manufacturing Company (TSMC) has overtaken Chinese tech behemoth Tencent to become Asia’s most valuable firm.



It comes as Beijing’s regulatory crackdown on the country’s tech sector in the past few months has slammed the valuations of Chinese tech giants Tencent and Alibaba.



TSMC, a major supplier to Apple, overtook Tencent earlier in August. The Taiwanese chipmaker is now sitting at the top spot by market capitalization — among Asia firms — at more than $538 billion, according to data from Refinitiv Eikon as of Wednesday morning during Asia hours.



<h3 class="wp-block-heading">Read more: <a href="ore: Amazon beats Apple and Google to become the world’s most valuable brand">Amazon beats Apple and Google to become the world’s most valuable brand</a></h3>



Tencent sat in second place, with a market capitalization of more than $536 billion while Alibaba was a distant third at about $472 billion.



<h2 class="wp-block-heading" id="h-china-s-crackdown-hurting-tech-companies"><a></a>China’s crackdown hurting tech companies</h2>



The market capitalizations of both Tencent and Alibaba were hit again on Tuesday — losing more than $20 billion each — after China’s market regulator issued draft rules aimed at stopping unfair competition on the internet.



In this latest move on the tech sector, China’s State Administration for Market Regulation highlighted the regulator’s push to tighten laws surrounding antitrust and competition. Other areas that have come under regulatory scrutiny from Beijing include financial technology as well as the collection and use of data.



Chinese technology stocks have tumbled as uncertainty continues to cloud the sector. The Hang Seng Tech index, which tracks the largest technology companies listed in Hong Kong including Tencent and Alibaba, has dropped more than 25% since the start of the year.



<h3 class="wp-block-heading">Read more: <a href="https://www.cnbcafrica.com/2017/africas-most-valuable-passports/">Africa&#8217;s most valuable and least desirable passports</a></h3>



<h2 class="wp-block-heading"><a></a>TSMC benefits from semiconductor shortage</h2>



Chipmaker TSMC, on the other hand, has gotten a boost as the world faces a global semiconductor shortage driven by supply chain disruptions due to the pandemic, along with a surge in demand from industries such as automobiles and data centers.



Responding to the shortage, TSMC said earlier this year it plans to invest $100 billion over the next three years to increase capacity, according to Reuters.



Since the start of the year, TSMC’s stock has risen by more than 6%. Taiwan plays an outsized role in the chipmaking realm, dominating the foundry market, or the outsourcing of semiconductor manufacturing. Much of this dominance is attributable to TSMC, whose clients include Apple, Qualcomm and Nvidia.



— CNBC’s Arjun Kharpal and Yen Nee Lee contributed to this report.

106853072-1615536312825-gettyimages-1230847366-AFP_8ZR4WW

TSMC overtakes Tencent to become Asia’s most valuable company, as China crackdown takes a toll

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="540" src="https://cms.cnbcafrica.com/wp-content/uploads/2021/08/GettyImages-1226035317-820x540.jpg" alt="" class="wp-image-411509" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2021/08/GettyImages-1226035317-820x540.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2021/08/GettyImages-1226035317-300x198.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2021/08/GettyImages-1226035317-137x90.jpg 137w, https://cms.cnbcafrica.com/wp-content/uploads/2021/08/GettyImages-1226035317-768x506.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2021/08/GettyImages-1226035317-1536x1012.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2021/08/GettyImages-1226035317-scaled.jpg 2048w" sizes="(max-width: 820px) 100vw, 820px" /><figcaption>RUSHDEN, UNITED KINGDOM &#8211; 2020/07/07: Nandos restaurant logo seen at one of their branches. (Photo by Keith Mayhew/SOPA Images/LightRocket via Getty Images)</figcaption></figure>



Aug 18 (Reuters) &#8211; Fast-food chain Nando&#8217;s has been forced to temporarily close more than 40 outlets in Britain, around 10% of its restaurants, after staff shortages hit its chicken supply chain in the latest blow to the country&#8217;s hospitality sector.



Retailers, restaurants, cafes and bars have struggled to recruit enough staff in Britain since the economy emerged from COVID lockdowns earlier this year, after workers left the sector and in some cases, the country, after Brexit.



Further restrictions forcing people to isolate if they come into contact with someone carrying the coronavirus has further disrupted supply chains, leaving some shelves empty in supermarkets and some restaurants closing for lunch.



In response to customers asking why their local Nando&#8217;s was closed, or the menu limited, the South African chain said on Twitter that &#8220;the UK supply chain is having a bit of a (night)mare right now.



<h3 class="wp-block-heading" id="h-read-more-south-african-restaurants-plead-for-end-to-job-killing-restrictions"> Read more: <a href="https://www.cnbcafrica.com/2020/south-african-restaurants-plead-for-end-to-job-killing-restrictions/">South African restaurants plead for end to ‘job-killing’ restrictions</a></h3>



&#8220;This is having a knock-on effect with some of our restaurants across England, Scotland and Wales.&#8221;



Trade group UK Hospitality said in July that problems with supply chains were widespread, with around 60% telling an industry survey they were seeing delays in deliveries, not receiving products or facing major price inflation.



The Nando&#8217;s news comes a week after rival fast-food group KFC said it was struggling to stock some items or use its normal packaging due to disruption in recent weeks.



The Guardian reported that Nando&#8217;s had seconded 70 staff to suppliers, echoing moves by the online supermarket Ocado which said in July its staff had been working to help its suppliers.



&#8220;Our suppliers are struggling to keep up with demand for PERi-PERi,&#8221; Nando&#8217;s told one customer on Twitter.



<h3 class="wp-block-heading">Read more: <a href="https://www.cnbcafrica.com/2016/dsg-nandos-win-best-outsourced-partnership-in-the-2016-ccmg-awards/">S.A&#8217;s DSG &amp; Nandos win Best Outsourced Partnership in the 2016 CCMG awards</a></h3>



It told another that it was running limited services in some stores because staff were having to complete isolation periods. That requirement should ease after the government relaxed the rules for people who have received both doses of the vaccine.



Many companies have been hit by a lack of drivers and operators in food processing centres. While new drivers struggled to train and qualify during parts of the pandemic, the UK has also been hit by an exodus of European drivers.



The Road Haulage Association estimates that around 30,000 drivers have stopped operating in Britain since the UK left the European Union&#8217;s single market in January. 



(Reporting by Kate Holton in London and Kanishka Singh in Bengaluru; Editing by Dan Grebler/Guy Faulconbridge)

Nandos restaurant logo seen at one of their branches

Nando’s shuts over 40 UK outlets due to supply chain hit

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="615" src="https://cms.cnbcafrica.com/wp-content/uploads/2021/07/7641739030_aa820e43be_b-820x615.jpg" alt="" class="wp-image-409855" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2021/07/7641739030_aa820e43be_b-820x615.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2021/07/7641739030_aa820e43be_b-300x225.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2021/07/7641739030_aa820e43be_b-107x80.jpg 107w, https://cms.cnbcafrica.com/wp-content/uploads/2021/07/7641739030_aa820e43be_b-768x576.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2021/07/7641739030_aa820e43be_b.jpg 1024w" sizes="(max-width: 820px) 100vw, 820px" /><figcaption>JP Morgan
Photo: Solvency Ii Wire www.solvencyiiwire.com</figcaption></figure>



JOHANNESBURG, Aug 17 (Reuters) &#8211; JPMorgan Chase &amp; Co said on Tuesday it has launched a $20 million fund for black-owned enterprises in&nbsp;South&nbsp;Africa, a sign that global investment banks are still betting on the country despite its anemic economic growth in recent years.



The fund was launched in partnership with&nbsp;South&nbsp;Africa&#8217;s Department of Trade, Industry and Competition (DTIC), the bank said.



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Although the coronavirus pandemic has shrunk the economy of&nbsp;Africa&#8217;s most industrialized nation to its level from a decade ago, local banks, retailers and realty firms see a brighter future because of the country&#8217;s young population, rising entrepreneurship and strong middle class.



&#8220;The&nbsp;South&nbsp;African private sector has great capacity to multiply impact through partnerships, as we are aiming to do with the DTIC,&#8221; Kevin Latter, JPMorgan&#8217;s senior country officer in&nbsp;South&nbsp;Africa, said during a virtual conference.



The 300 million rand fund, which is accompanied by a grant of 40 million rand, will be disbursed as short-term loans with a duration of about three to four months and long-term loans with a duration of two to five years, Latter said.



<h3 class="wp-block-heading">Read more: <a href="https://www.cnbcafrica.com/2021/south-africa-riots-will-push-economy-into-3-contraction-in-q3-jpmorgan/">South Africa riots will push economy into 3% contraction in Q3 -JPMorgan</a></h3>



He did not say at what interest rate the bank would offer the loans but said they would be &#8220;heavily subsidised and below commercial rate.&#8221;



The fund could potentially unlock 2 billion rand in capital over an eight-year period and would create hundreds of jobs, said Ebrahim Patel, the country&#8217;s minister of trade and industry. 



($1 = 14.9654 rand) 



(Reporting by Promit Mukherjee Editing by Paul Simao)

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JPMorgan launches $20 mln fund for South African black-owned firms

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2021/03/GettyImages-496939132-820x547.jpg" alt="" class="wp-image-399686" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2021/03/GettyImages-496939132-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2021/03/GettyImages-496939132-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2021/03/GettyImages-496939132-768x513.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2021/03/GettyImages-496939132-1536x1025.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2021/03/GettyImages-496939132-scaled.jpg 2048w" sizes="(max-width: 820px) 100vw, 820px" /><figcaption>An Eskom sign stands outside the headquarters for Eskom Holdings SOC Ltd., South Africas state-owned electricity utility at Megawatt Park in Sandton, near Johannesburg, South Africa, on Wednesday, Nov. 11, 2015. A plan to reform state-owned power company Eskom Holdings SOC Ltd. and bring South Africa and its economy out of the dark is starting to show results, according to Chief Executive Officer Brian Molefe. Photographer: Waldo Swiegers/Bloomberg via Getty Images</figcaption></figure>



CAPE TOWN, Aug 17 (Reuters) &#8211;&nbsp;South&nbsp;Africa&#8217;s state-owned power utility Eskom said on Tuesday it plans to reduce its output of coal-fired power by 8,000 to 12,000 MW through plant closures over the next decade, a cut that amounts to up to 30% of its current capacity.



The mothballed Komati power station, brought back to service in the early 2000s to help deal with chronic electricity shortages in Africa&#8217;s most advanced economy, will be completely closed by October next year, Eskom said on Twitter.



<h3 class="wp-block-heading" id="h-read-more-south-africa-s-eskom-cuts-debt-by-20-minister-says">Read more: <a href="https://www.cnbcafrica.com/2021/south-africas-eskom-cuts-debt-by-20-minister-says/">South Africa’s Eskom cuts debt by 20%, Minister says</a></h3>



Eskom, which is&nbsp;Africa&#8217;s biggest greenhouse gas emitter, is pitching a $10 billion plan to global lenders that would see it shut the vast majority of its coal-fired plants by 2050 and embrace renewable energy, a company official told Reuters in June.



A fleet of ageing coal-fired plants provides most of&nbsp;South&nbsp;Africa&#8217;s electricity needs, but a lack of investment and poor maintenance has led to regular blackouts that have scared investors and cost the economy billions of dollars in lost output. Eskom currently has a nominal installed power capacity of about 42,000 MW.



&#8220;Eskom plans to repower Komati using solar photovoltaic (PV) plant supported by 244 MWh battery storage,&#8221; the firm said, adding that Komati was ideally positioned to be a flagship &#8220;Just Energy Transition&#8221; project.



<h3 class="wp-block-heading">Read more: <a href="https://www.cnbcafrica.com/2021/eskom-to-start-up-third-unit-at-kusile-coal-fired-power-station/">Eskom to start up third unit at Kusile coal-fired power station</a></h3>



Similar projects were planned at the Grootvlei, Hendrina and Camden power plants, all of which were scheduled for closure by 2025.



Eskom, which is heavily indebted, said it wanted to act as an anchor market for electric vehicles, which it sees as an important growth opportunity for its business. 



(Reporting by Wendell Roelf; Editing by Jon Boyle and Paul Simao)

Eskom Holdings SOC Ltd Chief Executive Officer Brian Molefe Interview

Eskom plans sharp reduction of coal-fired power by 2031

Nigeria’s inflation drops to 17.38% in July

<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="740" height="416" src="https://cms.cnbcafrica.com/wp-content/uploads/2021/08/106910593-1626253221629-gettyimages-83781196-aa19b85a-38be-43ab-8727-5b1a7a5aae1e.jpeg" alt="" class="wp-image-411490" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2021/08/106910593-1626253221629-gettyimages-83781196-aa19b85a-38be-43ab-8727-5b1a7a5aae1e.jpeg 740w, https://cms.cnbcafrica.com/wp-content/uploads/2021/08/106910593-1626253221629-gettyimages-83781196-aa19b85a-38be-43ab-8727-5b1a7a5aae1e-300x169.jpeg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2021/08/106910593-1626253221629-gettyimages-83781196-aa19b85a-38be-43ab-8727-5b1a7a5aae1e-160x90.jpeg 160w" sizes="(max-width: 740px) 100vw, 740px" /><figcaption>China’s national flag Russell Monk | The Image Bank | Getty Images</figcaption></figure>



GUANGZHOU, China — China’s market regulator issued draft rules on Tuesday aimed at stopping unfair competition on the internet, as Beijing continues its broad crack down on the country’s technology sector.



The rules published by the State Administration for Market Regulation (SAMR) cover a wide range of areas from prohibitions on the way companies can use data to stamping out fake product reviews.



Chinese listed technology stocks in Hong Kong fell sharply on that news. Gaming giant Tencent was 3.5% lower in late morning trade, while e-commerce giant Alibaba fell 2.5%.



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SAMR’s latest rules continue Beijing’s regulatory assault on China’s technology giants.



Here are some of the other key rules outlined:



<ul class="wp-block-list"><li>Operators should not provide false data, such as the number of clicks on a piece of content;</li><li>Operators should not conceal negative reviews and only promote positive reviews;</li><li>Internet platforms should not use data, algorithms and other technical means to influence user choices, or other methods to carry out so-called traffic hijacking. This is where a company looks to redirect a user to their own website or service while they’re browsing another;</li><li>Operators should not use data and algorithms to collect and analyze competitors’ trading information.</li></ul>



SAMR said it could hire third-party institutions to audit data if an operator falls foul of the rules.



The regulator is seeking public opinion on the new rules until Sept. 15. They have not yet come into effect.



<h3 class="wp-block-heading">Read more: <a href="e: Tencent bans nose picking, spanking and other ‘violations’ on its WeChat livestreaming service">Tencent bans nose picking, spanking and other ‘violations’ on its WeChat livestreaming service</a></h3>



However, SAMR’s draft rules highlight the market regulator’s push to tighten the laws around antitrust and competition. Earlier this year, the authority promulgated antitrust guidelines for the so-called platform economy.



The regulator has also been taking action against China’s technology giants.



Alibaba was slapped with a $2.8 billion fine in April as a result of an anti-monopoly probe, and SAMR is currently investigating food delivery firm Meituan for “suspected monopolistic practices.”



And last month, the SAMR blocked Tencent’s plan to merge video game streaming sites Huya and DouYu on antitrust concerns.



—&nbsp;CNBC’s Iris Wang contributed to this story.

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China seeks to tighten rules on unfair internet competition, sending tech shares lower

<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="740" height="416" src="https://cms.cnbcafrica.com/wp-content/uploads/2021/08/106928219-1629130755312-gettyimages-1234311531-sindeyev-notitle210729_np12K.jpeg" alt="" class="wp-image-411485" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2021/08/106928219-1629130755312-gettyimages-1234311531-sindeyev-notitle210729_np12K.jpeg 740w, https://cms.cnbcafrica.com/wp-content/uploads/2021/08/106928219-1629130755312-gettyimages-1234311531-sindeyev-notitle210729_np12K-300x169.jpeg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2021/08/106928219-1629130755312-gettyimages-1234311531-sindeyev-notitle210729_np12K-160x90.jpeg 160w" sizes="(max-width: 740px) 100vw, 740px" /><figcaption>A visual representation of bitcoin. STR | NurPhoto via Getty Images</figcaption></figure>



LONDON — Bitpanda, a European cryptocurrency trading platform, has raised $263 million in a fresh round of funding valuing the company at $4.1 billion.



That’s more than three times the $1.2 billion Bitpanda was worth in its last private financing round five months ago. The latest cash injection brings the company’s total raised to nearly $500 million.



The investment was led by Valar Ventures, the venture capital firm co-founded by U.S. tech billionaire Peter Thiel. It’s the third time Valar has backed Bitpanda since its first major funding round, announced in September.



“I don’t like to do fundraising,” Eric Demuth, Bitpanda’s CEO and co-founder, told CNBC. “It’s very time-consuming.”



“When you have partners you have a close connection with, and they have deep pockets, you don’t have to do the whole roadshow,” Demuth said. Valar “wanted to double down and we wanted to stay with them,” he added. “It was quite an easy process.”



<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="740" height="416" src="https://cms.cnbcafrica.com/wp-content/uploads/2021/08/106928243-1629132342420-Bitpanda_co-founders.jpg" alt="" class="wp-image-411486" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2021/08/106928243-1629132342420-Bitpanda_co-founders.jpg 740w, https://cms.cnbcafrica.com/wp-content/uploads/2021/08/106928243-1629132342420-Bitpanda_co-founders-300x169.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2021/08/106928243-1629132342420-Bitpanda_co-founders-160x90.jpg 160w" sizes="(max-width: 740px) 100vw, 740px" /><figcaption>From left to right, Bitpanda co-founders Christian Trummer, Paul Klanschek and Eric Demuth. Bitpanda</figcaption></figure>



British billionaire hedge fund manager Alan Howard and REDO Ventures also invested in Bitpanda’s latest round, along with existing investors LeadBlock Partners and Jump Capital.



<h2 class="wp-block-heading" id="h-what-is-bitpanda"><a></a>What is Bitpanda?</h2>



Founded in 2014, Bitpanda is a Vienna-based brokerage firm that lets people buy and sell cryptocurrencies and precious metals. The company also began testing a service this year that lets users trade stocks around the clock.



“By the end of the year, I think you’ll have a really good offering for stocks,” Demuth said.



Bitpanda is one of many online brokers in Europe attracting growing interest from investors, thanks in part to the “meme stock” trading frenzy. Retail traders piled into unloved stocks like GameStop and AMC, taking inspiration from a popular Reddit forum. That boosted trading volumes at digital platforms such as Robinhood.



Bitpanda’s competitors include Revolut, Trade Republic and eToro.



<h3 class="wp-block-heading">Read more: <a href="https://www.cnbcafrica.com/2021/jpmorgan-puts-key-dealmakers-in-charge-of-spac-unit-to-lure-emea-clients-memo/">JPMorgan puts key dealmakers in charge of SPAC unit to lure EMEA clients – memo</a></h3>



One way the company hopes to differentiate from rivals is by licensing its technology to banks and fintech companies. It declined to name any clients but said several big firms were already implementing the system and will be able offer crypto and stock trading in a matter of months.



Bitpanda makes its money from the spread between what someone is willing to pay for an asset and the price at which that asset is sold. The start-up has been profitable for five years, Demuth said.



Profitability is a rarity in fintech, with many venture-backed companies in the space racking up heavy losses. Revolut, which was last valued at $33 billion, lost £167.8 million ($232.3 million) in 2020, up 57% from a year earlier.



Demuth said a number of fintech companies are raising money at lofty valuations out of “hype” and a “fear of missing out.”



“I’m very skeptical about this,” he said. “Many companies, especially in the fintech area, are purely based on a combination of hype and growth. But the growth is mostly paid, so you have a product that is for free and you are simply buying your customers.”



Bitpanda didn’t provide a breakdown of how much money it makes each year, but said revenues were on track to rise sevenfold in 2021. The platform now has more than 3 million users.



The firm only operates in Europe, with offices in Vienna, Berlin, London, Paris, Barcelona, Milan and Krakow. It plans to use the money to expand in key markets like France, Spain, Italy and Portugal.



<h2 class="wp-block-heading"><a></a>Crypto mania</h2>



The boost in Bitpanda’s valuation comes at a time of great momentum for the nascent cryptocurrency industry.



Digital currency investors have been on a wild ride this year, with the prices of bitcoin and other major cryptocurrencies hitting record highs in April and May before tumbling sharply in the weeks that followed.



More recently, bitcoin and smaller digital coin ether have made a strong comeback, pushing the entire crypto market across the $2 trillion mark for the first time in three months.



<h3 class="wp-block-heading">Read more: <a href="https://www.cnbcafrica.com/2021/prosus-to-buy-shares-in-parent-naspers-as-valuations-lag-tencent-stake-2/">Prosus to buy shares in parent Naspers as valuations lag Tencent stake</a></h3>



The main headwind for crypto lately has been the threat of regulation. China has cracked down on speculative investing in digital assets, while the recently approved U.S. infrastructure bill includes a provision that crypto advocates say may harm the industry.



Europe has been slower to regulate the crypto industry than its global peers, Demuth said. But he is encouraged by new EU rules aimed at bringing the sector under regulatory supervision.



“From the drafts I’ve seen so far, it looks like it will not have a bad impact,” he said. “Of course, they can always mess it up at the last minute.”



<h2 class="wp-block-heading"><a></a>IPO? Anything but a SPAC</h2>



Fintech has birthed a number of multibillion-dollar public companies lately, with the likes of Coinbase, Robinhood and Affirm all listing this year. In Europe, Wise — the British fintech formerly known as TransferWise — went public in a rare direct listing in London.



While Bitpanda has no immediate plans to go public, Demuth said he “really liked” how Wise listed. Instead of hiring investment banks to underwrite its offering, Wise listed directly on the London market without raising any money.



Bitpanda’s CEO insisted nothing has been decided yet, but firmly ruled out merging with a special-purpose acquisition company, or SPAC. SPACs are blank-check companies that list with the aim of taking another company public.



“Bad examples of IPO are the SPAC mania,” Demuth said.



Last month, U.S. digital currency company Circle said it planned to go public in a $4.5 billion SPAC deal.

106928219-1629130755312-gettyimages-1234311531-sindeyev-notitle210729_np12K

Peter Thiel-backed crypto broker Bitpanda triples valuation in five months to $4.1 billion

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="461" src="https://cms.cnbcafrica.com/wp-content/uploads/2021/08/106843911-16140302242021-02-22t201519z_231587328_rc2wxl98dvc9_rtrmadp_0_health-coronavirus-usa-820x461.jpeg" alt="" class="wp-image-411479" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2021/08/106843911-16140302242021-02-22t201519z_231587328_rc2wxl98dvc9_rtrmadp_0_health-coronavirus-usa-820x461.jpeg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2021/08/106843911-16140302242021-02-22t201519z_231587328_rc2wxl98dvc9_rtrmadp_0_health-coronavirus-usa-300x169.jpeg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2021/08/106843911-16140302242021-02-22t201519z_231587328_rc2wxl98dvc9_rtrmadp_0_health-coronavirus-usa-160x90.jpeg 160w, https://cms.cnbcafrica.com/wp-content/uploads/2021/08/106843911-16140302242021-02-22t201519z_231587328_rc2wxl98dvc9_rtrmadp_0_health-coronavirus-usa-768x432.jpeg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2021/08/106843911-16140302242021-02-22t201519z_231587328_rc2wxl98dvc9_rtrmadp_0_health-coronavirus-usa-1536x864.jpeg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2021/08/106843911-16140302242021-02-22t201519z_231587328_rc2wxl98dvc9_rtrmadp_0_health-coronavirus-usa.jpeg 1600w" sizes="(max-width: 820px) 100vw, 820px" /><figcaption>Photo: via CNBC</figcaption></figure>



Pfizer and BioNTech said Monday they have submitted early stage clinical trial data to the Food and Drug Administration as part of their U.S. application seeking authorization of a Covid vaccine booster for everyone 16 and older — not just people with weak immune systems.



In a phase one trial, a booster dose of the vaccine generated “significantly higher neutralizing antibodies” against the original coronavirus strain as well as the beta and delta variants, the companies said in a press release. Participants in the trial received a third shot of the two-dose vaccine about eight to nine months after receiving their second shot, they said.



<h3 class="wp-block-heading" id="h-read-more-u-s-fda-gearing-up-for-rapid-review-of-potential-covid-19-booster-shots">Read more: <a href="https://www.cnbcafrica.com/2021/u-s-fda-gearing-up-for-rapid-review-of-potential-covid-19-booster-shots/">U.S. FDA gearing up for rapid review of potential COVID-19 booster shots</a></h3>



“The data we’ve seen to date suggest a third dose of our vaccine elicits antibody levels that significantly exceed those seen after the two-dose primary schedule,” Pfizer CEO Albert Bourla said in a statement. “We are pleased to submit these data to the FDA as we continue working together to address the evolving challenges of this pandemic.”



The companies said late-stage trial results evaluating the third dose are expected shortly and will also be submitted to the FDA and other regulatory authorities worldwide.



The announcement from the drugmakers comes after federal health officials Friday approved administering Covid booster shots of Pfizer’s and Moderna’s vaccines to Americans with weakened immune systems, which includes cancer and HIV patients and people who have had organ transplants.



U.S. new data suggests immune-compromised individuals don’t produce an adequate immune response after receiving two doses of a Covid vaccine.



Pfizer’s latest data looks at the booster’s safety and immune response in people with otherwise healthy immune systems.



<h3 class="wp-block-heading">Read more: <a href="https://www.cnbcafrica.com/2021/fda-advisory-panel-to-review-johnson-johnson-covid-19-vaccine-with-thumbs-up-expected/">FDA advisory panel to review Johnson &amp; Johnson COVID-19 vaccine with thumbs up expected</a></h3>



Federal health officials aren’t recommending booster doses for the general public at this time, but White House chief medical advisor Dr. Anthony Fauci has said everyone will “likely” need a booster shot at some point .



Covid vaccine makers, including Pfizer and Moderna, have repeatedly contended that everyone will eventually need a booster shot and potentially extra doses every year, just like for the seasonal flu.



Pfizer has cited data out of Israel, where country officials said last month the two-dose vaccine was just 39% effective against getting the disease, blaming the drop in performance on the highly contagious delta variant. When Pfizer submitted its original application to the FDA in December, it said its shots were about 95% effective in preventing Covid infections.



The vaccine is still considered highly effective against severe disease, hospitalizations and deaths, according to Israeli health officials.

106843911-16140302242021-02-22t201519z_231587328_rc2wxl98dvc9_rtrmadp_0_health-coronavirus-usa

Pfizer submits data to FDA for authorization of Covid vaccine booster shot for general population

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="546" src="https://cms.cnbcafrica.com/wp-content/uploads/2021/02/GettyImages-1195116766-820x546.jpeg" alt="" class="wp-image-397227" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2021/02/GettyImages-1195116766-820x546.jpeg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2021/02/GettyImages-1195116766-300x200.jpeg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2021/02/GettyImages-1195116766-768x511.jpeg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2021/02/GettyImages-1195116766-1536x1023.jpeg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2021/02/GettyImages-1195116766.jpeg 1742w" sizes="(max-width: 820px) 100vw, 820px" /><figcaption>Muhammadu Buhari, Nigeria&#8217;s president, takes part in a family photo with leaders of African countries at the U.K. &#8211; Africa Investment Summit at the Intercontinental Hotel in London, U.K., on Monday, Jan. 20, 2020. U.K. Prime Minister Boris Johnson will reinforce his vision of a global Britain trading freely outside the EU on Monday, when he hosts African leaders at an inaugural&nbsp;summit. Photographer: Hollie Adams/Bloomberg via Getty Images</figcaption></figure>



ABUJA/LAGOS, Aug 16 (Reuters) &#8211; Nigerian President Muhammadu Buhari signed into law an oil overhaul bill that has been in the works for nearly two decades, a presidential spokesman said on Monday.



The package overhauls nearly every aspect of the country&#8217;s oil and gas production. The legislature cleared it for his signature last month.



The bill has been in the works since the early 2000s, but the sensitivity of potential changes affecting Nigeria&#8217;s key source of revenue and foreign exchange has undermined all previous attempts at an overhaul.



<h3 class="wp-block-heading" id="h-read-more-nigerian-senate-approves-finalised-petroleum-overhaul-bill">Read more: <a href="https://www.cnbcafrica.com/2021/nigerian-senate-approves-finalised-petroleum-overhaul-bill/">Nigerian senate approves finalised petroleum overhaul bill</a></h3>



Major fuel marketers and other observers had been alarmed by a provision that they said could give Africa&#8217;s richest man, Aliko Dangote, an effective monopoly on fuel sales in Nigeria while the communities where oil and gas is produced had pressed for a larger share of oil money.



Analysts say the bill&#8217;s approval this year was essential to attracting a shrinking pool of capital for fossil fuel development.



Amendments to the package allowed a series of concessions for oil companies to lure investment.



(Reporting by Libby George, Tife Owolabi and Felix Onuah Editing by David Goodman )

Prime Minister Johnson Hosts U.K. Africa Investment Summit

Nigeria’s Buhari signs historic oil overhaul bill into law

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2021/08/GettyImages-1234712281-820x547.jpg" alt="" class="wp-image-411467" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2021/08/GettyImages-1234712281-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2021/08/GettyImages-1234712281-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2021/08/GettyImages-1234712281-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2021/08/GettyImages-1234712281-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2021/08/GettyImages-1234712281-1536x1025.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2021/08/GettyImages-1234712281-scaled.jpg 2048w" sizes="(max-width: 820px) 100vw, 820px" /><figcaption>TOPSHOT &#8211; President elect Hakainde Hichilema gives a press briefing at his residence in Lusaka, on August 16, 2021. &#8211; Zambian business tycoon and veteran opposition leader Hakainde Hichilema scored a landslide victory on August 16, 2021 in bitterly-contested presidential elections. (Photo by Patrick Meinhardt / AFP) (Photo by PATRICK MEINHARDT/AFP via Getty Images)</figcaption></figure>



LUSAKA, Aug 16 (Reuters) &#8211; Zambian President Edgar Lungu conceded defeat on Monday, after a landslide election win by opposition leader Hakainde Hichilema, who will face the challenge of reviving an economy in turmoil.



With all but one constituency counted, Hichilema had won 2,810,777 votes against Lungu&#8217;s 1,814,201, and the electoral commission declared him president. It marked the country&#8217;s third peaceful handover of power to an opposition party.



&#8220;I will comply with the constitutional provisions for a peaceful transition of power. I would therefore like to congratulate my brother, the president-elect, His Excellency Mr Hakainde Hichilema,&#8221; Lungu, 64, said in a short televised address to the nation.



When the celebrations die down, Hichilema, 59, a former CEO at an accounting firm before entering politics, will need to focus on resuscitating a flagging economy.



Zambia became Africa&#8217;s first pandemic-era sovereign default in November after failing to keep up with its international debt payments.



<h3 class="wp-block-heading" id="h-read-more-zambia-starts-voting-in-presidential-election-seen-too-close-to-call">Read more: <a href="https://www.cnbcafrica.com/2021/zambia-starts-voting-in-presidential-election-seen-too-close-to-call/">Zambia starts voting in presidential election seen too close to call</a></h3>



&#8220;It is in no doubt what the instruction is to all of us (that you) &#8230; elect us to office at a very difficult time,&#8221; he said, hinting at the task ahead as he addressed supporters in the capital, Lusaka &#8220;We will not let you down.&#8221;



The default was driven by depressed commodity prices &#8211; which had pushed Zambia into recession well before the COVID-19 pandemic &#8211; worsened by the pandemic itself.



<h2 class="wp-block-heading">URGES UNITY</h2>



He has some room for manoeuvre as the economy has been buoyed slightly by more favourable copper prices this year &#8211; now hovering around decade highs, driven partly by the boom in electric cars. Last year, Zambia, Africa&#8217;s second biggest copper miner, produced a record output of the metal.



Nonetheless Hichilema urged Zambians to put aside divisions, condemning attacks on property, after a mall named after the ex-incumbent was looted.



&#8220;For years we were victims of retribution. We are not about to &#8230;. start a new wave of violence,&#8221; he said. &#8220;If you want to show higher moral ground &#8230; do not attack them.&#8221;



The election is the culmination of an acrimonious rivalry between the two that in 2017 led Lungu to arrest and imprison Hichilema for refusing to make way for his motorcade. This is Hichilema&#8217;s sixth attempt at the presidency since 2006.



He touted his nationwide success, even in perceived Lungu strongholds, as evidence that Zambia had dodged ethnic division. &#8220;Victory &#8230; (has) been delivered by all the 10 provinces of Zambia &#8230; isn&#8217;t that lovely?&#8221; he said, to applause.



<h3 class="wp-block-heading">Read more: <a href="https://www.cnbcafrica.com/2021/zambia-counts-votes-as-internet-restriction-remain-in-force/">Zambia counts votes as internet restrictions remain in force</a></h3>



Lungu had cried foul on Saturday, calling the election &#8220;not free and fair&#8221; after violence against ruling Patriotic Front party agents in three provinces, but the size of the margin made it near-impossible to challenge the result in court.



Power has switched from a ruling party to the opposition twice before since independence from Britain in 1964. The latest shift strengthens Zambia&#8217;s democratic credentials and sets an example on a continent with a patchy history of peaceful change.



Wearing the red and yellow of Hichilema&#8217;s United Party for National Development (UPND) Hichilema&#8217;s supporters celebrated, dancing and singing, while drivers honked their horns.



&#8220;This victory is so sweet,&#8221; 37-year-old Jane Phiri said, next to her market stall. &#8220;This spirit of change was bottled up for a long time.&#8221;



Zambia&#8217;s sovereign dollar bonds jumped nearly 2 cents on Monday after the news of Hichilema&#8217;s win. Zambia&#8217;s kwacha currency strengthened nearly 1% against the dollar. International Monetary Fund support is on hold until after the vote, as is debt restructuring &#8211; seen as an early test for a new global plan aimed at easing poor countries&#8217; burdens. 



(Reporting by Chris Mfula; Additional reporting by Karin Strohecker and Tom Arnold in London; Writing by Tim Cocks; Editing by Catherine Evans and Alison Williams)

TOPSHOT-ZAMBIA-ELECTIONS

Hichilema faces task of reviving Zambian economy after landslide win

<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="(max-width: 820px) 100vw, 820px" /><figcaption>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>



JOHANNESBURG, Aug 16 (Reuters) &#8211; South African lender Absa has put on ice plans to expand into new business lines in Nigeria, a country previously at the centre of its African ambitions, interim boss Jason Quinn said on Monday.



Former Chief Executive Maria Ramos and others had previously touted growth in Nigeria beyond its existing securities business as key to the group&#8217;s aim of doubling market share in Africa.



But the COVID-19 pandemic, among other things, had disrupted those plans, Quinn told Reuters shortly after the bank announced an around 14-fold rise in half-year profit, saying it now wants to concentrate on its current business lines.



<h3 class="wp-block-heading" id="h-read-more-why-s-africa-s-absa-plans-to-pay-higher-dividend-despite-fy-earnings-drop">Read more: <a href="https://www.cnbcafrica.com/2019/why-s-africas-absa-plans-to-pay-higher-dividend-despite-fy-earnings-drop/">Why S.Africa’s Absa plans to pay higher dividend despite FY earnings drop</a></h3>



&#8220;As I look at it now, I&#8217;d rather we focus on capturing the opportunity that we currently preside over, as opposed to looking for new ones,&#8221; he said of the bank&#8217;s Nigeria plans.



Absa has previously said it would look to enter other markets like Ethiopia and Egypt in its bid to become a &#8220;truly pan-African bank&#8221;.



It has now combined its South African operations with those elsewhere on the continent, which Quinn said he hoped would lead to a pick-up in units that have lagged.



A hefty drop in bad debt charges helped drive the boom in Absa&#8217;s headline earnings per share (HEPS), which rose to 984.6 cents ($0.6685) in the six months to June 30 from 67.7 cents a year earlier.



<h3 class="wp-block-heading">Read more: <a href="https://www.cnbcafrica.com/2021/absa-ceo-to-stand-down-cfo-appointed-interim-chief-executive-statement/">Absa CEO to stand down, CFO appointed interim chief executive – statement</a></h3>



Its interim HEPS, the main profit measure in South Africa, were also 7% higher than in 2019. Quinn said the results showed the bank&#8217;s strategic decisions were largely the right ones.



Quinn took over from former CEO Daniel Mminele who quit amid a strategy dispute in April after just 15 months after taking over from Ramos. Quinn would not be drawn on whether he would seek to stay on as CEO permanently.



Absa declared an interim dividend of 310 cents, restoring shareholder payouts after suspending them on guidance from the central bank during the COVID-19 crisis.



Its shares were up 0.27% at 0940 GMT.



($1 = 14.7186 rand) 



(Reporting by Emma Rumney; Editing by Alexander Winning, Kenneth Maxwell and Jan Harvey)

Absa Reboots Image As 100 Years Of Barclays In Africa Ends

South Africa’s Absa cools on Nigeria, interim profits boom

<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="740" height="416" src="https://cms.cnbcafrica.com/wp-content/uploads/2021/08/106911087-16263029762021-07-12t182451z_1049474836_rc26jo9ua1af_rtrmadp_0_fintech-crypto-flows.jpeg" alt="" class="wp-image-411455" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2021/08/106911087-16263029762021-07-12t182451z_1049474836_rc26jo9ua1af_rtrmadp_0_fintech-crypto-flows.jpeg 740w, https://cms.cnbcafrica.com/wp-content/uploads/2021/08/106911087-16263029762021-07-12t182451z_1049474836_rc26jo9ua1af_rtrmadp_0_fintech-crypto-flows-300x169.jpeg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2021/08/106911087-16263029762021-07-12t182451z_1049474836_rc26jo9ua1af_rtrmadp_0_fintech-crypto-flows-160x90.jpeg 160w" sizes="(max-width: 740px) 100vw, 740px" /><figcaption>Dado Ruvic | Reuters</figcaption></figure>



<a href="https://www.cnbcafrica.com/quotes/btc=x/">Bitcoin</a> topped $48,000 over the weekend, its highest level since mid-May but pared some of those gains on Monday.



On Saturday, the digital coin hit $48,126.47, its highest level since May 17, according to Coindesk data. Around 2:49 a.m. ET on Monday, bitcoin was trading at $47,442.40



The bitcoin recovery comes after it sold off heavily in June and July, even <a href="https://www.cnbcafrica.com/2021/90-billion-wiped-off-crypto-market-as-bitcoin-drops-below-30000-for-first-time-in-nearly-a-month/">dropping below $30,000</a> following a record high of over $64,000 in April.



“I do believe this (bitcoin’s rise) is the result of massive accumulation” when bitcoin was trading around $29,000 to $30,000, according to Vijay Ayyar, head of business development at cryptocurrency exchange Luno.



Bitcoin’s rise helped push the value of the entire cryptocurrency market above $2 trillion on Saturday for the first time since mid-May, according to data from CoinMarketCap which tracks the prices of digital coins.



The crypto market has faced a number of headwinds over the summer. One of the biggest was the renewed regulatory scrutiny on the industry from authorities in China which has forced bitcoin mining operations to shut down and move elsewhere. That was one of the biggest reasons for bitcoin dropping below the $30,000 level.



Meanwhile, the U.S. Senate passed a massive infrastructure bill last week without any of the proposed amendments on crypto tax reporting that had delayed its passage. That was seen as a blow for the crypto community, but some said it showed the U.S. government was taking the industry seriously.



These “fundamental regulatory roadblocks” have “clipped the market’s wings” in the near term, said Jehan Chu, founder of cryptocurrency-focused venture capital and trading firm Kenetic Capital.



He said that while bitcoin may surge to $55,000, investors should expect a “significant pullback to sub-$30k levels, resetting the stage for a long steady march” to $100,000 in 2022.



More negative news came this month after <a href="https://www.cnbc.com/2021/08/12/poly-network-hacker-behind-600-million-crypto-heist-did-it-for-fun.html">hackers stole $600 million</a> in one of the biggest cryptocurrency heists in history. But in a bizarre turn of the events, the hackers eventually returned nearly all of the stolen money.



This didn’t seem to faze the bitcoin bulls.



Luno’s Ayyar said that bitcoin is approaching resistance levels between $48,000 and $50,000.



“I wouldn’t expect bitcoin to run through in one shot,” Ayyar said, adding that if it does break that level of support, then the digital coin is “definitely looking to go back to all-time highs.”

106911087-16263029762021-07-12t182451z_1049474836_rc26jo9ua1af_rtrmadp_0_fintech-crypto-flows

Crypto market tops $2 trillion for the first time in nearly 3 months as bitcoin rallies

<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="740" height="416" src="https://cms.cnbcafrica.com/wp-content/uploads/2021/08/106925952-1628769806824-gettyimages-1234570376-pitton-notitle210807_npXkx.jpeg" alt="" class="wp-image-411443" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2021/08/106925952-1628769806824-gettyimages-1234570376-pitton-notitle210807_npXkx.jpeg 740w, https://cms.cnbcafrica.com/wp-content/uploads/2021/08/106925952-1628769806824-gettyimages-1234570376-pitton-notitle210807_npXkx-300x169.jpeg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2021/08/106925952-1628769806824-gettyimages-1234570376-pitton-notitle210807_npXkx-160x90.jpeg 160w" sizes="(max-width: 740px) 100vw, 740px" /><figcaption>Thousands of protesters took to the streets in Toulouse against France’s mandatory health pass on July 12th 2021. More than 234,000 people demonstrated across France against the pass which will be mandatory for entry to a wide array of public venues such as cafes, theaters, concerts hall, cinemas, shopping malls, public transportation, public swimming pools, and even hospitals unless there’s a critical situation. NurPhoto | NurPhoto | Getty Images</figcaption></figure>



LONDON — The divide between the vaccinated and unvaccinated when it comes to Covid-19 is likely to become even deeper, with officials in the U.S. and Europe planning, or introducing, an increasing number of restrictions on people who haven’t gotten a Covid shot.



Almost all governments around the world have so far resisted making Covid vaccination mandatory for their citizens, although many have introduced forms of Covid vaccination certificates, passes or passports that allow the immunized bearer more freedoms and work opportunities than unvaccinated people.



Aspects of daily life are increasingly complicated for anyone who is not vaccinated against Covid, and there is a rising sense of anger and injustice among those who reject the vaccine.



<h2 class="wp-block-heading" id="h-vaccine-fault-lines"><a></a>Vaccine fault lines</h2>



Despite protests among groups against such moves, the freedom to travel, work, socialize and engage in leisure activities is increasingly determined by our Covid vaccination status.



Nationally the U.S. has ruled out making Covid vaccination mandatory, rejecting the concept of vaccination passports back in April due to concerns over privacy and citizens’ rights. But some states are moving toward more restrictions for unvaccinated people.



Covid vaccinations are now mandatory for New York City’s municipal workers, and from mid-September proof of inoculation will be required from employees and customers of indoor eateries, gyms and entertainment centers. Meanwhile, workers in health care facilities in California will be required to provide proof that they’ve been fully vaccinated against Covid from October. On Monday, the Pentagon said it plans to make Covid vaccination mandatory for military service members no later than mid-September.



<h3 class="wp-block-heading">Read more: <a href="https://www.cnbcafrica.com/2021/blood-clots-associated-with-astrazeneca-vaccine-are-rare-but-devastating-study-says/">Blood clots associated with AstraZeneca vaccine are ‘rare but devastating,’ study says</a></h3>



France, Greece and the U.K. are among European countries mandating vaccinations for health professionals or home care staff. In China, some local governments have reportedly said students will not be allowed back to school in September unless their entire family is fully vaccinated. In Australia, some states in lockdown are allowing only vaccinated people back to work and have said restrictions will be lifted only when a majority of people are immunized.



A large number of European countries now require travelers to show they are fully vaccinated, provide proof of a negative Covid test, or show that they have recovered from a recent infection. Otherwise, they must quarantine.



“I ask all those who have been vaccinated to encourage their friends, acquaintances and family members to also get vaccinated,” German Chancellor Angela Merkel said Tuesday, shortly after new measures were announced in that country.&nbsp;“This is not only a protection for us, but also for others who cannot be vaccinated — children or people with previous illnesses.”



<h2 class="wp-block-heading" id="h-blackmail-and-dictatorship"><a></a>‘Blackmail’ and ‘dictatorship’</h2>



There are many individuals who are unhappy about the trend toward differentiating between the vaccinated and unvaccinated. Marco De Matteo, a young Neapolitan man who is a travel enthusiast, is angry about the situation in Italy where a “green pass” has been introduced, likening the situation to a “health and economic dictatorship.”



“Those in power are limiting, by law, individuals’ freedom and dignity,” he said. “The imposition of the green pass in the world of work, both in the public and in the private sector &#8230; is breaking society apart,” he told CNBC.



The pass is a digital or paper certificate that shows if someone has received at least one shot of a vaccine, has tested negative or has recently recovered from the coronavirus. The pass is now needed for any Italian citizen to access indoor bars and restaurants, cinemas, museums or gyms and will soon be required for travel and some jobs, such as teachers. Those who refuse will be suspended.



<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="740" height="416" src="https://cms.cnbcafrica.com/wp-content/uploads/2021/08/106925954-1628770083288-gettyimages-1234547209-AFP_9KQ7C8.jpeg" alt="" class="wp-image-411444" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2021/08/106925954-1628770083288-gettyimages-1234547209-AFP_9KQ7C8.jpeg 740w, https://cms.cnbcafrica.com/wp-content/uploads/2021/08/106925954-1628770083288-gettyimages-1234547209-AFP_9KQ7C8-300x169.jpeg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2021/08/106925954-1628770083288-gettyimages-1234547209-AFP_9KQ7C8-160x90.jpeg 160w" sizes="(max-width: 740px) 100vw, 740px" /><figcaption>Members of the ‘No Vax’ take part in a demonstration against the introduction of a mandatory “green pass” in the aim to limit the spread of the Covid-19, at the Piazza del Popolo in central Rome on August 7, 2021. ALBERTO PIZZOLI | AFP | Getty Images</figcaption></figure>



De Matteo, and many others who are also concerned about encroachment on civil liberties, recognizes the need to protect the health of the community. But he says that for him “there are many doubts both about the nature of the virus and about the vaccine.” He also regrets negative stereotypes attributed to people that object to Covid vaccines.



“In Italy, many people are organizing peaceful demonstrations — people from all walks of life and economic backgrounds who care about everyone’s freedom, dignity and health — but they are labeled as conspiracy theorists,” he said.



Vaccine skepticism and outright anti-vaccination sentiment have become rife since the start of the coronavirus pandemic, coinciding with disinformation and misinformation on social media that can ultimately endanger lives. Clinical trials, peer-reviewed by international medical journals, have shown that vaccination reduces the spread of the virus and contributes to reducing deaths and severe illness.



Medical professionals, such as Dr. Scott Gottlieb, have repeatedly spoken of the benefits of vaccination. Gottlieb, a former Food and Drug Administration commissioner, also told CNBC last month that people who have previously been infected with the coronavirus would still benefit from receiving Covid vaccines.



French yoga teacher Amel Lamloum told CNBC back in January that she didn’t see the advantages of having the Covid vaccine, given her young age (30) and good health.



Speaking to CNBC again Thursday, Lamloum said she still had not received the vaccine and was even more reluctant to do so now, given what she saw as “blackmail” by the French government to do so.



“I really think society has changed and that there is no justice anymore,” she said, adding that she no longer trusted the government and had prepared herself to adjust how she lived.



“Many, many people will not get the vaccine, for sure, and we will have to live in a side society and we are ready for it, we are ready for everything.”



<h2 class="wp-block-heading"><a></a>Why the reluctance?</h2>



For millions of people who have been happy and willing to receive a Covid vaccine, the rollout of vaccination programs has offered protection against a highly transmissible virus. It’s also allowed a return to much-missed freedoms, from seeing loved-ones and socializing to shopping and traveling.



But others across the U.S. and Europe see vaccination programs with ambivalence or worse.



Some have been critical of the speed of Covid vaccine development, distrusting clinical data on the efficacy and long-term safety credentials of Covid vaccines. Others have questioned why they need a shot when Covid can be a mild or asymptomatic illness for many people, especially the young.



<h3 class="wp-block-heading">Read more: <a href="https://www.cnbcafrica.com/2021/who-says-it-urgently-needs-7-7-billion-to-help-poorer-nations-survive-delta-covid-variant/">WHO says it urgently needs $7.7 billion to help poorer nations survive delta Covid variant</a></h3>



Public bodies like the World Health Organization have repeatedly reaffirmed the importance of vaccinating as many people as possible against Covid to curb the spread of the disease and allow a return to a normal societal functioning. Covid vaccines have been proven in extensive clinical trials involving hundreds of thousands of people to be safe and highly effective at preventing severe illness, hospitalization and death.



What’s less certain for experts is how long immunity lasts and whether future Covid variants could undermine vaccine efficacy. Many governments are weighing up the merits of booster vaccines too but for now, the main priority is to encourage vaccine uptake among the completely unvaccinated.



<h2 class="wp-block-heading"><a></a>Who is most vaccine resistant?</h2>



Public confidence in vaccines, or the flipside of vaccine hesitancy, differs wildly from country to country and is often informed by the public’s trust in government and health care systems. France, for example, is renowned for a high rate of vaccine hesitancy, while vaccine uptake in the U.K. has traditionally been high.



One survey showed vaccine opposition highest in Russia, followed by the U.S., according to a global poll of 15 countries carried out by data intelligence company Morning Consult in July and August. With 43,054 interviews conducted in the U.S. alone, the percentage of people unwilling or uncertain about getting a Covid vaccine stood at 30%.



Young adults have a lower vaccine rate in every country that was tracked except in China, the poll also found, although that data could also reflect the speed and breadth of vaccination programs; some young adults are yet to be fully vaccinated in a number of countries polled.



Adults in the U.S. appear to be the most consistent when it comes to vaccine skepticism; the share of vaccine skeptics in the U.S. has remained at 30% for the past four weeks, Morning Consult said, and that share has only fallen by 4 percentage points since it began tracking in mid-April.



“Over that same time period, in the other 14 countries tracked, the share of skeptics has dropped by an average of 13 points, more than triple the decline in skepticism seen in the U.S.. No other country has seen a smaller decline,” Morning Consult noted.



The top reasons given for uncertainty over vaccines were concerns over side effects and worries that clinical trials had been conducted too fast.



<h2 class="wp-block-heading"><a></a>Europe curbs</h2>



Back in Europe, parts of the leisure sector are being affected directly by the new rules. In Belgium, for instance, some soccer clubs are opening separate spectator stands for those who are unvaccinated. In the U.K., only the fully vaccinated will soon be able to enter a nightclub.



A number of countries have gone further, introducing types of Covid vaccination “passes” or “passports” at the national level, prompting criticism from some quarters.



France has introduced a “health pass,” meaning that individuals have to prove they are fully vaccinated, recently tested negative, or have recently recovered from the virus if they want to access cafes, restaurants, cinemas, museums and theaters. The pass has proved controversial, stoking protests attracting thousands of people who say the pass restricts civil liberties.



<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="740" height="416" src="https://cms.cnbcafrica.com/wp-content/uploads/2021/08/106925928-1628767702160-gettyimages-1234349556-3051506.jpeg" alt="" class="wp-image-411445" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2021/08/106925928-1628767702160-gettyimages-1234349556-3051506.jpeg 740w, https://cms.cnbcafrica.com/wp-content/uploads/2021/08/106925928-1628767702160-gettyimages-1234349556-3051506-300x169.jpeg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2021/08/106925928-1628767702160-gettyimages-1234349556-3051506-160x90.jpeg 160w" sizes="(max-width: 740px) 100vw, 740px" /><figcaption>Charleroi, one of the Belgian soccer clubs introducing separate stands for unvaccinated fans. VIRGINIE LEFOUR | AFP | Getty Images</figcaption></figure>



Germany looks to be heading in a similar direction, aiming to encourage vaccine uptake by ending free, government-paid Covid tests while requiring anyone who’s not fully vaccinated (excluding children) to present a negative Covid test in order to access indoor spaces and events.



“Tests are therefore becoming a prerequisite, for example, for access to hospitals, old people’s and nursing homes, indoor catering, events and celebrations, but also for visits to the hairdresser or the cosmetic studio. The same applies to indoor sports or accommodation, for example in hotels and guest houses,” the government said on Tuesday.



Disclosure: Scott Gottlieb is a CNBC contributor and is a member of the boards of Pfizer, genetic testing start-up Tempus, health-care tech company Aetion Inc. and biotech company Illumina. He also serves as co-chair of Norwegian Cruise Line Holdings’ and Royal Caribbean’s “Healthy Sail Panel.”

106925952-1628769806824-gettyimages-1234570376-pitton-notitle210807_npXkx

‘Breaking society apart’: Unvaccinated people are angry as they face more Covid restrictions

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="543" src="https://cms.cnbcafrica.com/wp-content/uploads/2021/08/Richards_Bay_Coal_Terminal_RBCT-820x543.jpg" alt="" class="wp-image-411435" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2021/08/Richards_Bay_Coal_Terminal_RBCT-820x543.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2021/08/Richards_Bay_Coal_Terminal_RBCT-300x199.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2021/08/Richards_Bay_Coal_Terminal_RBCT-136x90.jpg 136w, https://cms.cnbcafrica.com/wp-content/uploads/2021/08/Richards_Bay_Coal_Terminal_RBCT-768x508.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2021/08/Richards_Bay_Coal_Terminal_RBCT-1536x1017.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2021/08/Richards_Bay_Coal_Terminal_RBCT-scaled.jpg 2048w" sizes="(max-width: 820px) 100vw, 820px" /><figcaption>Richards Bay coal terminal Photo: via Wikimedia Commons</figcaption></figure>



CAPE TOWN, Aug 13 (Reuters) &#8211; A power outage in South Africa&#8217;s main coal export terminal Richards Bay has forced state-owned logistics monopoly firm Transnet to delay offloading of trains for 10 hours, the company said on Friday.



&#8220;The outage meant that the Richards Bay Coal Terminal was unable to offload trains for approximately 10 hours, resulting in a 50% wagon capacity for Friday&#8217;s production plan,&#8221; the freight logistics group said in a statement.



Africa&#8217;s most industrialised economy faces regular power outages as it struggles to generate enough electricity to keep the lights on, affecting mining and other large businesses relying heavily on the country&#8217;s only power utility Eskom.



These companies, especially coal miners, are further completely dependent on Transnet&#8217;s rail freight infrastructure for evacuation, transportation and off-loading.



<h3 class="wp-block-heading" id="h-read-more-south-africa-s-transnet-hit-by-cyber-attack-affecting-some-container-terminal-operations-sources">Read more: <a href="https://www.cnbcafrica.com/2021/south-africas-transnet-hit-by-cyber-attack-affecting-some-container-terminal-operations-sources/">South Africa’s Transnet hit by cyber attack, affecting some container terminal operations -sources</a></h3>



Therefore any disruption to power supply or transport infrastructure hurts exports and revenues.



Transnet said the outage occurred from Thursday and into the early hours of Friday at the east coast port of Richards Bay, the main conduit for high-quality coal exports mainly to Asian markets, including India, China and Pakistan.



Transnet said a &#8220;catch-up&#8221; plan was underway and a revised schedule has been communicated to customers.



On Thursday, Exxaro Resources, South Africa&#8217;s biggest coal miner, said its exports would remain subdued in 2021 as rail logistics problems, including derailments and cable theft, stymie its export ambitions. 



(Reporting by Wendell Roelf; Editing by Promit Mukherjee and David Evans)

Richards_Bay_Coal_Terminal_RBCT

Power outage hits South Africa’s coal export terminal at Richard’s Bay

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="545" src="https://cms.cnbcafrica.com/wp-content/uploads/2021/08/IDMYBOBCMBLLNPTRGHTTCKYFHI-820x545.jpg" alt="" class="wp-image-411429" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2021/08/IDMYBOBCMBLLNPTRGHTTCKYFHI-820x545.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2021/08/IDMYBOBCMBLLNPTRGHTTCKYFHI-300x199.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2021/08/IDMYBOBCMBLLNPTRGHTTCKYFHI-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2021/08/IDMYBOBCMBLLNPTRGHTTCKYFHI-768x510.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2021/08/IDMYBOBCMBLLNPTRGHTTCKYFHI.jpg 960w" sizes="(max-width: 820px) 100vw, 820px" /><figcaption>A woman receives a dose of a coronavirus disease (COVID-19) vaccine, as South Africa rolls out the coronavirus disease (COVID-19) vaccination to the elderly at the Munsieville Care for the Aged Centre outside Johannesburg, South Africa May 17, 2021. REUTERS/Siphiwe Sibeko/File Photo/File Photo</figcaption></figure>



CAPE TOWN, Aug 13 (Reuters) &#8211; South Africa&#8217;s health minister said on Friday he would not recommend a relaxation of COVID-19 lockdown measures despite a downward trend in infections.



He said the country of 60 million had fully vaccinated only around 4 million people as a wave of infections driven by the more infectious Delta variant strains over-burdened hospitals and health workers.



&#8220;Our situation therefore remains precarious&#8230; We will be recommending remaining at Level 3,” Joe Phaahla told a media briefing before putting his proposals to the cabinet.



In a bid to stimulate the economy, President Cyril Ramaphosa last month <a href="https://www.cnbcafrica.com/2021/south-africa-lifts-some-coronavirus-restrictions-after-cases-drop-2/">eased restrictions to an adjusted &#8220;Level 3&#8221;</a> in a five-level system, as infections declined.



It means people can travel between provinces for leisure, and retail outlets may sell alcohol from Monday to Thursday.



Phaahla said the national positivity rate, which gives an indication of how widespread infections are, had declined from a high of 35% in mid-July to an average over the last seven days of 19-20%.



However, he noted that the World Health Organisation recommends the rate should be down to 5% before relaxations are considered.



Senior health official Nicholas Crisp said registrations for vaccines had tapered off over the last two weeks, and urged people to sign up as <a href="https://www.cnbcafrica.com/2021/south-africa-targets-35-mln-people-vaccinated-against-covid-19-by-christmas/">South Africa aims to inoculate 28 million or 70% of adults by the end of December.</a>



&#8220;There will be a fourth wave, we have no doubt,&#8221; he said. 



(Reporting by Wendell Roelf; Editing by Emma Rumney and Kevin Liffey)

IDMYBOBCMBLLNPTRGHTTCKYFHI

Health minister wants South Africa to stay at current lockdown level

<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="740" height="416" src="https://cms.cnbcafrica.com/wp-content/uploads/2021/08/106921772-1628084601228-gettyimages-1234445243-AFP_9JW2F6.jpeg" alt="" class="wp-image-411416" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2021/08/106921772-1628084601228-gettyimages-1234445243-AFP_9JW2F6.jpeg 740w, https://cms.cnbcafrica.com/wp-content/uploads/2021/08/106921772-1628084601228-gettyimages-1234445243-AFP_9JW2F6-300x169.jpeg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2021/08/106921772-1628084601228-gettyimages-1234445243-AFP_9JW2F6-160x90.jpeg 160w" sizes="(max-width: 740px) 100vw, 740px" /><figcaption>A paramedic prepares doses of AstraZeneca vaccine for patients at a walk-in COVID-19 clinic inside a Buddhist temple in the Smithfield suburb of Sydney on August 4, 2021. Saeed Khan | AFP | Getty Images</figcaption></figure>



A new study has given more details about the “rare but devastating” blood clotting complications associated with the Oxford-AstraZeneca Covid-19 vaccine.



In a peer-reviewed paper published Wednesday in The New England Journal of Medicine, scientists from the Massachusetts Medical Society analyzed the first 220 cases of the condition reported in the United Kingdom.



The Oxford-AstraZeneca vaccine — now one of the most widely used Covid vaccines in the world — was rolled out in the U.K. in January, making it the first country to administer the shot.



A very small number of people who have been inoculated with the AstraZeneca vaccine have suffered blood clots. The condition, described by health authorities as “extremely rare,” is characterized by blood clots accompanied by low platelet levels.



<h3 class="wp-block-heading">Read more: <a href="https://www.cnbcafrica.com/2021/african-union-drops-astrazeneca-vaccine-which-covax-will-supply/">African Union drops AstraZeneca vaccine, which COVAX will supply</a></h3>



The Massachusetts Medical Society’s study used data from 294 patients who presented to U.K. hospitals between March 22 and June 6. Of those, 170 definite and 50 probable cases of the rare clotting — which scientists referred to as vaccine-induced immune thrombocytopenia and thrombosis — were identified.



All of those patients had been given their first dose of the Oxford-AstraZeneca shot, and went to the hospital with symptoms between five and 48 days after their vaccination. The median time between patients receiving their vaccination and going to the hospital was 14 days, the findings showed.



The overall mortality rate for VITT in the study was 22%.



Researchers also found that 41% of patients presenting with VITT had no diagnosed underlying health issues. Of those who reported a past or current illness, the study found that no conditions or medications were prevalent that “would be unexpected in the general population.”



“Against the backdrop of a successful vaccination program in the United Kingdom, VITT has emerged as a rare but devastating complication,” the study’s authors said in their report. “We have found that it often affects young, otherwise healthy vaccine recipients and that it is associated with a high mortality.”



“In our cohort, 85% of the patients were younger than 60 years of age, despite the predominance of (Oxford/AstraZeneca) vaccination in older adults,” scientists noted.



As a precaution, the U.K. has been offering people under the age of 40 an alternative to the Oxford-AstraZeneca vaccine since May.



People identified as having suffered with VITT were aged between 18 and 79, with the median age being 48, the study showed.



Up to and including July 28, an estimated 24.8 million first doses of Oxford-AstraZeneca’s Covid vaccine had been administered in the U.K., with an estimated 23.6 million second doses received.



As of July 28, government figures show that for every million first or unknown doses of the Oxford-AstraZeneca shot, 14.9 people developed rare blood clotting with low platelet levels. That fell to 1.8 cases per million following a second dose of the vaccine.



The overall case fatality rate for that period was 18%, the government data showed, with 73 deaths. Six of those occurred after the second dose.



<h3 class="wp-block-heading">Read more: <a href="https://www.cnbcafrica.com/2021/nigeria-to-limit-first-doses-of-astrazeneca-due-to-supply-concerns/">Nigeria to limit first doses of AstraZeneca due to supply concerns</a></h3>



At the end of last month, AstraZeneca published a study which found the rate of VITT after the first dose of its vaccine was 8.1 per million, which decreased to 2.3 per million after a second dose.



Up until July 28, 411 suspected cases of VITT had been reported in the U.K., according to official data.



<h2 class="wp-block-heading" id="h-benefits-vs-risks"><a></a>Benefits vs. risks</h2>



In a statement on Thursday, AstraZeneca said the research published in the New England Journal of Medicine was drawn from “a small sample size.”



“Recent real-world evidence drawn from millions of individuals shows that AstraZeneca’s vaccine has a comparable safety profile with other vaccines and that incidences of thrombosis with thrombocytopenia are extremely rare and treatable,” said a spokesperson.



The spokesperson added that there was “a far greater risk” of rare blood clotting events through contracting Covid-19.



&nbsp;“Vaccines remain&nbsp;the&nbsp;most effective protection against Covid-19&nbsp;and are the best route out of this pandemic,” they said.



Both the U.K. and the EU’s medicines regulators have identified possible links between the Oxford-AstraZeneca vaccine and rare blood clots.



In April, the company said it would comply with regulatory requests in the U.K. and Europe to update its Covid vaccine labels. However, it stressed the WHO had said “a causal relationship is considered plausible but is not confirmed.”



The U.K.’s Joint Committee on Vaccination and Immunisation has consistently said that the benefits of the Oxford-AstraZeneca vaccine continue to outweigh the risks for the vast majority of people.



Multiple health authorities, including the WHO, the European Medicines Agency and the International Society on Thrombosis and Hemostasis have agreed that the benefits of administering the vaccine outweigh the risks.

106921772-1628084601228-gettyimages-1234445243-AFP_9JW2F6

Blood clots associated with AstraZeneca vaccine are ‘rare but devastating,’ study says

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2021/08/106912519-1626656267378-gettyimages-1233959448-RUSSIA_GOLD-820x547.jpeg" alt="" class="wp-image-411406" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2021/08/106912519-1626656267378-gettyimages-1233959448-RUSSIA_GOLD-820x547.jpeg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2021/08/106912519-1626656267378-gettyimages-1233959448-RUSSIA_GOLD-300x200.jpeg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2021/08/106912519-1626656267378-gettyimages-1233959448-RUSSIA_GOLD-135x90.jpeg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2021/08/106912519-1626656267378-gettyimages-1233959448-RUSSIA_GOLD-768x512.jpeg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2021/08/106912519-1626656267378-gettyimages-1233959448-RUSSIA_GOLD-1536x1025.jpeg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2021/08/106912519-1626656267378-gettyimages-1233959448-RUSSIA_GOLD-scaled.jpeg 2048w" sizes="(max-width: 820px) 100vw, 820px" /><figcaption>Photo: via CNBC</figcaption></figure>



Gold prices recovered slightly from a sharp fall earlier this week, but analysts are still pessimistic on the outlook for the precious metal going forward.



On Sunday evening, gold prices dropped to a four month low of $1,677.9 per ounce. The metal was hovering around $1,740 per ounce Thursday morning trade in Asia, still off its highs earlier this year of around $1,900.



Analysts pegged the fall to a stronger-than-expected U.S. jobs report as well as a rush to buy the dollar in response.



Gold prices and the greenback have an inverse relationship. As the dollar gets stronger against other currencies, gold prices will fall as it becomes more expensive in other currencies, driving down demand.&nbsp;



“The initial sell‑off in the gold price on Monday was likely triggered by the Asian market buying the US dollar and selling gold in response to the strong US payrolls for July from last Friday,” Vivek Dhar, commodities analyst at the Commonwealth Bank of Australia, said in a note on Wednesday.



<h3 class="wp-block-heading" id="h-read-more-miners-seek-gold-under-the-desert-sands-after-egypt-changes-rules"> Read more: <a href="https://www.cnbcafrica.com/2021/miners-seek-gold-under-the-desert-sands-after-egypt-changes-rules-2/">Miners seek gold under the desert sands after Egypt changes rules</a></h3>



On Friday, the Bureau of Labor Statistics said nonfarm payrolls increased by 943,000 in July, above the 845,000 new jobs forecast by Dow Jones.



While gold has since recovered some losses, Dhar said it was “difficult to remain bullish on the precious metal,” given the hawkish outlook for U.S. monetary policy.



The Federal Reserve is expected to dial back monetary easing and slow its stimulus efforts as the economy recovers from the pandemic. The U.S. central bank has held rates near zero, but officials have signaled that hikes could happen soon, especially with inflation running hot. 



But Dominic Schnider, chief investment officer at UBS Global Wealth Management, predicts that real yields will “go less negative” and that means more downside for gold. He told CNBC’s “Street Signs Asia” on Wednesday he expects outflows from the gold exchange-traded funds and futures markets. 



<h3 class="wp-block-heading">Read more: <a href="https://www.cnbcafrica.com/2020/why-people-seek-refuge-in-gold-during-crises-like-covid-19/">Why people seek refuge in gold during crises like COVID-19</a></h3>



When real yields go up, gold prices go down, and vice versa. In such a scenario, the opportunity cost of holding gold, a non-yielding asset, is higher as investors are foregoing interest that would be otherwise earned in yielding assets.



“I think you’re going to see a little bit more outflows. I wouldn’t be surprised if we see another, at some point, 20 million ounces leaving the ETF and futures market,” Schnider said. “That means more downside, that’s when&#8230; we tell people to hedge your position tactically, or at least sell the upside, get some yield.”



“A stronger US dollar combined with a gradual increase in US 10 [year] real yields suggest that gold prices should trend lower,” Dhar wrote.



He predicts that gold prices will fall to $1,700 per ounce by the first quarter of 2022. Schnider forecast that gold could see drops to $1,600 per ounce or lower.

Newsletter

TSMC overtakes Tencent to become Asia’s most valuable company, as China crackdown takes a toll

Nando’s shuts over 40 UK outlets due to supply chain hit

JPMorgan launches $20 mln fund for South African black-owned firms

Eskom plans sharp reduction of coal-fired power by 2031

Nigeria’s inflation drops to 17.38% in July

China seeks to tighten rules on unfair internet competition, sending tech shares lower

Peter Thiel-backed crypto broker Bitpanda triples valuation in five months to $4.1 billion

Pfizer submits data to FDA for authorization of Covid vaccine booster shot for general population

Nigeria’s Buhari signs historic oil overhaul bill into law

Hichilema faces task of reviving Zambian economy after landslide win

South Africa’s Absa cools on Nigeria, interim profits boom

Crypto market tops $2 trillion for the first time in nearly 3 months as bitcoin rallies

‘Breaking society apart’: Unvaccinated people are angry as they face more Covid restrictions

Power outage hits South Africa’s coal export terminal at Richard’s Bay

Health minister wants South Africa to stay at current lockdown level

Blood clots associated with AstraZeneca vaccine are ‘rare but devastating,’ study says

Gold prices dropped this week and analysts predict they will keep falling

News Tips

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Newsletter

TSMC overtakes Tencent to become Asia’s most valuable company, as China crackdown takes a toll

Nando’s shuts over 40 UK outlets due to supply chain hit

JPMorgan launches $20 mln fund for South African black-owned firms

Eskom plans sharp reduction of coal-fired power by 2031

Nigeria’s inflation drops to 17.38% in July

China seeks to tighten rules on unfair internet competition, sending tech shares lower

Peter Thiel-backed crypto broker Bitpanda triples valuation in five months to $4.1 billion

Pfizer submits data to FDA for authorization of Covid vaccine booster shot for general population

Nigeria’s Buhari signs historic oil overhaul bill into law

Hichilema faces task of reviving Zambian economy after landslide win

South Africa’s Absa cools on Nigeria, interim profits boom

Crypto market tops $2 trillion for the first time in nearly 3 months as bitcoin rallies

‘Breaking society apart’: Unvaccinated people are angry as they face more Covid restrictions

Power outage hits South Africa’s coal export terminal at Richard’s Bay

Health minister wants South Africa to stay at current lockdown level

Blood clots associated with AstraZeneca vaccine are ‘rare but devastating,’ study says

Gold prices dropped this week and analysts predict they will keep falling

News Tips

Advertise With Us

Newsletters