<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/01/TNRG4PXBPVITBOJQGOF6IVJBFE-820x547.jpg" alt="" class="wp-image-447799" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/01/TNRG4PXBPVITBOJQGOF6IVJBFE-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/01/TNRG4PXBPVITBOJQGOF6IVJBFE-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/01/TNRG4PXBPVITBOJQGOF6IVJBFE-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2024/01/TNRG4PXBPVITBOJQGOF6IVJBFE-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/01/TNRG4PXBPVITBOJQGOF6IVJBFE-1536x1024.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/01/TNRG4PXBPVITBOJQGOF6IVJBFE.jpg 1920w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">FILE PHOTO: A container ship is seen near Suez Canal Bridge which is known as the &#8220;Peace Bridge&#8221; following a Suez Canal tugboat sinking yesterday after colliding with a Hong Kong-flagged LPG tanker in the waterway of the Suez Canal, Egypt, August 6, 2023. Suez Canal Authority/Handout via REUTERS THIS IMAGE HAS BEEN SUPPLIED BY A THIRD PARTY/File Photo</figcaption></figure>



SINGAPORE/CAPE TOWN/LONDON, Jan 18 (Reuters)&nbsp;&#8211;&nbsp;The re-routing of a growing number of ships around Africa to avoid potential attacks in the Red Sea is altering refueling patterns and boosting demand for bunker fuel at far-flung ports, from the Mauritius to South Africa to the Canary Islands.



Ships are also expected to top up more at Singapore and Rotterdam, the two busiest bunkering ports and where fuel is competitively priced, as they try to hedge against uncertainty over route changes, traders and analysts said.



Attacks by Yemen&#8217;s Houthi militia on merchant ships in the Red Sea and retaliatory U.S. strikes have ratcheted-up tensions in the Middle East as the Gaza war rages on.



The attacks by the Iran-allied Houthis, which they say are in support of Palestinians, target a route that accounts for about 15% of the world&#8217;s shipping traffic and acts as a vital conduit between Europe and Asia.



Hundreds of large vessels have rerouted around the southern tip of Africa, adding 10-14 days of travel, to avoid drone and missile attacks by the Houthis.



&#8220;Ships are diverting away from the Red Sea and re-routing around the coast of South and West Africa – this increased traffic has created huge congestion in bunkering ports around Africa and placed significant pressure on port infrastructure,&#8221; John A. Bassadone, founder and CEO of independent bunker supplier Peninsula, told Reuters.



Bunker fuel demand has risen at ports including Mauritius&#8217; Port Louis, Gibraltar and ports in the Canary Islands and South Africa, said traders and industry sources, with sales jumping in Cape Town and Durban.



Prices of low-sulphur bunker fuel delivered at Cape Town have jumped 15% to almost $800 per metric ton since mid-November when the attacks started, data from bunker supplier Integr8 Fuels showed.



&#8220;We have seen an increase in bunker demand and fixtures in South Africa, particularly for bunker-only vessels lately,&#8221; said Philip Wang Balke, a senior bunker trader for Africa at Integr8, adding that supply is tightening as more shipowners and operators buy fuel in advance to ensure sufficient supplies.



<h2 class="wp-block-heading" id="h-tankers-and-bulkers">TANKERS AND BULKERS</h2>



Container ships were first to divert away from the Red Sea, and now oil tankers and dry bulk carriers are following suit, diverting bunker demand to West Mediterranean ports at the expense of East Mediterranean, industry sources said.



&#8220;We are anticipating increased demand in Las Palmas and Western Mediterranean ports as it&#8217;s likely the African ports will exceed capacity,&#8221; Peninsula&#8217;s Bassadone added.



Singapore and Rotterdam have yet to see a demand surge, though buying is poised to pick up in the next few weeks as ships lift more fuel at competitive prices, traders said.



&#8220;If the vessels are prone to higher ton-mileage or uncertainties, they are likely to fill up their tanks in case they ended up at expensive ports, and they can save a bit by buying less due to the extras they bought in Singapore,&#8221; said an Asia-based bunkering manager.



Spot premiums for prompt low-sulphur bunker fuel delivered at Singapore rose to $25 to $30 a metric ton above cargo quotes in mid-January, climbing from about $20 in early January, said industry sources.



(Reporting by Jeslyn Lerh and Florence Tan in Singapore, Wendell Roelf in Cape Town and Robert Harvey in London; Editing by Tony Munroe and Miral Fahmy)

FILE PHOTO: Container ships on Suez Canal

Red Sea ship diversions boost bunker demand, prices in Africa, Mediterranean

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="461" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/01/107360116-1705494590400-gettyimages-1927703757-AFP_34F2246-820x461.jpeg" alt="" class="wp-image-447525" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/01/107360116-1705494590400-gettyimages-1927703757-AFP_34F2246-820x461.jpeg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/01/107360116-1705494590400-gettyimages-1927703757-AFP_34F2246-300x169.jpeg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/01/107360116-1705494590400-gettyimages-1927703757-AFP_34F2246-160x90.jpeg 160w, https://cms.cnbcafrica.com/wp-content/uploads/2024/01/107360116-1705494590400-gettyimages-1927703757-AFP_34F2246-768x432.jpeg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/01/107360116-1705494590400-gettyimages-1927703757-AFP_34F2246-1536x864.jpeg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/01/107360116-1705494590400-gettyimages-1927703757-AFP_34F2246.jpeg 1920w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">Austrian Marlene Engelhorn, who inherited from her family who owns the Germany’s chemical giant BASF, poses with a placard reading “Tax the rich!” at the entrance of the Congress center on the opening of the annual meeting of the World Economic Forum (WEF) in Davos, on January 15, 2024. (Photo by Fabrice COFFRINI / AFP) (Photo by FABRICE COFFRINI/AFP via Getty Images) Fabrice Coffrini | Afp | Getty Images</figcaption></figure>



More than 250 billionaires and millionaires on Wednesday reiterated their call on elected representatives of the world’s leading economies to introduce higher taxes on the very richest in society.



In an open letter to political leaders gathered at the annual World Economic Forum in Davos, Switzerland, the rich signatories said they wished to deliver a clear message: “Tax our extreme wealth.”



“We are surprised that you have failed to answer a simple question that we have been asking for three years: when will you tax extreme wealth?” the letter said.



“Our request is simple: we ask you to tax us, the very richest in society. This will not fundamentally alter our standard of living, nor deprive our children, nor harm our nations’ economic growth. But it will turn extreme and unproductive private wealth into an investment for our common democratic future.”



The signatories of the letter, entitled “Proud To Pay More,” span 17 countries and include Disney heir Abigail Disney, screenwriter Simon Pegg and Valerie Rockefeller, an heir to the famed U.S. family.



It comes shortly after Oxfam said that the five richest men globally have more than doubled their vast wealth since 2020 and warned that the world could have its first trillionaire within a decade.



At the same time, the charity said on Monday that, if the current trends persist, poverty will not be eradicated for another 229 years.



“Billionaires are wielding their extreme wealth to accumulate political power and influence, simultaneously undermining democracy and the global economy,” said Brian Cox, a signatory to the Proud to Pay More letter and an actor who played fictional billionaire Logan Roy in HBO’s “Succession.”



“It’s long past time to act. If our elected officials refuse to address this concentration of money and power, the consequences will be dire,” Cox added.



A new poll conducted by Survation on behalf of “Patriotic Millonaires”, which was published alongside the open letter, found that some of the world’s wealthiest people support higher taxes on their income.



The survey polled over 2,300 respondents in wealthy G20 nations who each hold more than $1 million in investable assets, excluding their homes. These assets put them among the richest 5%.



The survey found that 74% of respondents back higher taxes on wealth to address the cost-of-living crisis and to improve public services, while three quarters of respondents support a 2% wealth tax on billionaires, and more than half (54%) think that extreme wealth concentration is a threat to democracy.



“Throughout history, pitchforks were the inevitable consequence of extreme discontent, but today, the masses are turning to populism, which is on the rise throughout the world. It is happening here,” Abigail Disney said in a statement.



“We already know the solution to protect our institutions and stabilize our country: it’s taxing extreme wealth. What we lack is the political fortitude to do it. Even millionaires and billionaires like me are saying it’s time. The elites gathering in Davos must take this crisis seriously,” she added.

107360116-1705494590400-gettyimages-1927703757-AFP_34F2246

Mega rich renew call on global leaders at Davos to ‘tax our extreme wealth’

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="546" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/01/107279979-1690906950125-gettyimages-1569404479-Omarques_01082023_techPOL_3_of_21-820x546.jpeg" alt="" class="wp-image-447487" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/01/107279979-1690906950125-gettyimages-1569404479-Omarques_01082023_techPOL_3_of_21-820x546.jpeg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/01/107279979-1690906950125-gettyimages-1569404479-Omarques_01082023_techPOL_3_of_21-300x200.jpeg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/01/107279979-1690906950125-gettyimages-1569404479-Omarques_01082023_techPOL_3_of_21-135x90.jpeg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2024/01/107279979-1690906950125-gettyimages-1569404479-Omarques_01082023_techPOL_3_of_21-768x511.jpeg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/01/107279979-1690906950125-gettyimages-1569404479-Omarques_01082023_techPOL_3_of_21-1536x1022.jpeg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/01/107279979-1690906950125-gettyimages-1569404479-Omarques_01082023_techPOL_3_of_21-scaled.jpeg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">Photo: via CNBC</figcaption></figure>



The new artificial intelligence era represents a huge moment for the tech industry that has not been seen in a decade, according to a top executive at Facebook parent company Meta Platforms.



Reflecting on 2024, Nicola Mendelsohn, head of global business group at Meta, said it was important to talk about the potential for AI as a force for good, while also paying mind to the dangers of the technology.



“This is a seismic moment,” Mendelsohn said, in conversation with CNBC’s Tania Bryer at the World Economic Forum in Davos, Switzerland. “We will look back on this year seeing a really pivotal year in terms of how it was across society.”



In her role at Meta, Mendelsohn leads relationships with top marketers and agencies. She is also a seasoned advertising executive, with past experience including partner and executive chairman at London advertising agency Karmarama, and non-executive director of alcoholic beverages firm Diageo.



Meta had a banner year in 2023, with shares climbing sharply, while investors praised CEO Mark Zuckerberg’s push for a “year of efficiency” driven by sharp cost-cutting and a change in focus towards more profitable lines of business.



Last year also marked a major pivot toward artificial intelligence for Meta — an area where the company plays a key role with its LLaMA large language model. Meta also remains heavily focused on the metaverse with its Quest 3 headsets.



“From a Meta perspective, we can be a leader and a pioneer,” Mendelsohn said.

107279979-1690906950125-gettyimages-1569404479-Omarques_01082023_techPOL_3_of_21

AI era is a ‘seismic moment’ in tech we’ve not seen in a decade, top Meta exec says

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



Jan 17 (Reuters)&nbsp;&#8211;&nbsp;Assets across emerging markets took a beating on Wednesday, with equities hitting a two-month low following a raft of dismal economic data from China and&nbsp;reduced bets of interest rate cuts in the U.S.



MSCI&#8217;s index for emerging market (EM) equities&nbsp;.MSCIEF&nbsp;fell 2% by 0923 GMT, on track for its biggest one-day percentage drop since August last year.



Currencies in the region&nbsp;.MIEM00000CUS&nbsp;slid 0.4% while the dollar&nbsp;=USD&nbsp;hovered close to a one-month high.



EM assets were in the red for the third straight day as hawkish comments from top policymakers this week dampened expectations of early rate cuts from global central banks.



Most Asian equities fell, with China&#8217;s blue-chip shares&nbsp;.CSI300&nbsp;hitting their lowest since early 2019 while Hong Kong shares&nbsp;.HSI&nbsp;dropped 3.7% to their lowest since November 2022.



Data showed China&#8217;s economy grew 5.2% in the fourth quarter, missing analysts&#8217; expectations and signalling a patchy recovery in the world&#8217;s second-largest economy. A separate report also pointed to prolonged property sector woes in the country.



&#8220;The key question is what Beijing can do to improve sentiment amongst consumers and boost domestic demand at the time when their main trading partners &#8211; including Eurozone &#8211; are relatively weak and demand from the U.S. could soften as well,&#8221; said Piotr Matys, senior FX analyst at In Touch Capital Markets.



India&#8217;s blue-chip NSE Nifty 50 .NSEI was dragged 1.9% lower after bleak quarterly results from top private lender HDFC Bank.



In South Africa, Johannesburg&#8217;s Top-40&nbsp;.JTOPI&nbsp;index dropped 1.5%,&nbsp;weighed down by weakness in mining stocks as concerns around demand from China hit metal prices.



The rand&nbsp;ZAR=&nbsp;slipped 0.6% to trade at about 19.0874 to the dollar following an over 1% drop in the previous session.



The Indonesian rupiah IDR= held on to declines and was last down 0.3% against the dollar after the country&#8217;s central bank kept policy rates steady on Wednesday, seeking to stabilise the currency and keep inflation within target.



Hungary&#8217;s forint EURHUF= dropped 0.5% against the euro as Deputy Governor Barnabas Virag said the central bank will cut interest rates between 6% and 7% by the middle of the year.



(Reporting by Amruta Khandekar; Editing by Tasim Zahid)

Stock market report. 3d illustration

Stocks, FX fall for third day on bleak China data, rate jitters

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/01/107359182-1705386557810-gettyimages-1806666171-CHINA_HEFEI_VANKE-820x547.jpeg" alt="" class="wp-image-447409" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/01/107359182-1705386557810-gettyimages-1806666171-CHINA_HEFEI_VANKE-820x547.jpeg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/01/107359182-1705386557810-gettyimages-1806666171-CHINA_HEFEI_VANKE-300x200.jpeg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/01/107359182-1705386557810-gettyimages-1806666171-CHINA_HEFEI_VANKE-135x90.jpeg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2024/01/107359182-1705386557810-gettyimages-1806666171-CHINA_HEFEI_VANKE-768x512.jpeg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/01/107359182-1705386557810-gettyimages-1806666171-CHINA_HEFEI_VANKE-1536x1024.jpeg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/01/107359182-1705386557810-gettyimages-1806666171-CHINA_HEFEI_VANKE-scaled.jpeg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">Construction at China Vanke Co.’s Isle Maison development in Hefei, China, on Monday, Nov. 27, 2023. Bloomberg | Bloomberg | Getty Images</figcaption></figure>



BEIJING — China missed fourth-quarter GDP estimates on Wednesday, while it resumed reporting the unemployment rate for young people.



GDP for the last three months of 2023 rose by 5.2%, according to China’s National Bureau of Statistics. That’s below the 5.3% growth forecast in a Reuters poll.



GDP growth for the full year was also 5.2%, compared with a 3% increase in 2022.



“Macro data from 2023 shows China’s economy is going through a transition to a new growth model,” Zhiwei Zhang, president and chief economist at Pinpoint Asset Management, said in a note.



“With investment in the property sector falling, the economy is more dependent on the manufacturing sector and service sector,” he said. “This transition will take time to be accomplished. The key question in the market is when the transition in the property sector will finish.”



Property prices in 70 major Chinese cities fell by 0.4% in December from the prior month, maintaining a pace of decline not seen since 2015, according to data released Wednesday and analysis using Wind Information.



Real estate, which makes up well over 20% of China’s economy, has seen a government crackdown on developers’ high reliance on debt for growth.



Investment into real estate fell by 9.6% in 2023, while those into infrastructure and manufacturing rose by 5.9% and 6.5%, respectively.



Overall, fixed asset investment for 2023 rose by 3%, a touch above the predicted 2.9% increase.



China’s property sector is in a process of “adjustment and transformation,” Kang Yi, director of the statistics bureau, told reporters in Mandarin, translated by CNBC.



Looking ahead to 2024, he said the economy faces a number of challenges including insufficient domestic demand, overcapacity in some industries and weak expectations about the future.



Kang said authorities needed to respond to those difficulties in accordance with the directives from China’s top leaders in an annual meeting last month.



<h2 class="wp-block-heading" id="h-youth-unemployment-remains-high"><a></a>Youth unemployment remains high</h2>



The statistics bureau on Wednesday also resumed reporting figures on youth unemployment.



Excluding people still in school, the unemployment rate for young people aged 16 to 24 was 14.9%, while the rate in cities in December was 5.1%.



The bureau had temporarily suspended the release of the younger age group’s unemployment rate in summer, citing the need to reassess calculation methods. That unemployment rate had previously climbed to records above 20%.



The statistics bureau said&nbsp;China’s&nbsp;population shrunk by more than 2 million people to 1.41 billion in 2023 from the prior year. The population had declined by 850,000 people in 2022 from 2021.



“The improvement [in youth unemployment] is a bit surprising to me, but I can see that it is a result of government efforts and not so much economic fundamentals,” Dan Wang, chief economist at Hang Seng Bank, said Wednesday on CNBC’s “Street Signs Asia.”



“High income jobs have been difficult to find, but lower-skilled work has not been difficult to find in 2023,” she said.



Uncertainty about future income has weighed on consumption.



Retail sales rose 7.4% in December from a year earlier, missing expectations for an 8% growth. They rose by 7.2% for the full year.



December saw a 29% surge in jewelry and 26% increase in purchases of clothes and shoes.



Sales of daily necessities,&nbsp;medicine, cultural and office products,&nbsp;as well as construction-related materials fell in December.



China had abruptly ended its Covid-19 controls in December 2022 and people had rushed to buy medicine amid widespread illness that month.



Industrial production rose by 6.8% in December from a year earlier, beating forecasts for 6.6% growth.



<h2 class="wp-block-heading"><a></a>Questions about stimulus</h2>



The economic data was as the market generally expected and already priced in, said Bruce Pang, chief economist and head of research for Greater China at JLL.



He said there’s uncertainty over how much stimulus Beijing will choose to pursue, and how authorities will balance short- and long-term risks. Pang said China will likely focus on fiscal support this year.



The statistics bureau indicated in a release Wednesday that as a part of economic support, Chinese authorities would work to improve policy coordination among different regulatory bodies.



“We must effectively enhance economic vitality, prevent and mitigate risks, improve social expectations,&nbsp;consolidate and boost the sound momentum of economic recovery and growth,” the bureau said, “in a bid to effectively upgrade the quality and appropriately expand the quantity of the national economy.”



China ended its stringent Covid-19 controls in late 2022, but its rebound from the pandemic wasn’t as fast as several economists had expected at the start of 2023.



This year, unless there are significant stimulus measures, China’s GDP growth could slow to 4.6% from 5.2% in 2023, according to an average of five investment firms’ forecasts compiled by CNBC.



“Monetary and fiscal policy last year was actually quite conservative. Given that we (China) is in such an economic downturn, we should have seen lower interest rates and more fiscal money spending in all levels of government,” Hang Seng Bank’s Wang said.



Chinese Premier Li Qiang in speech on Tuesday at the World Economic Forum in Davos noted that “in promoting economic development, we did not resort to massive stimulus. We did not seek short-term growth while accumulating long-term risks.”



“Rather, we focused on strengthening the internal drivers,” he said.



The statistics bureau also said Wednesday that retail sales in services surged by 20% in 2023 from a year ago.



Online retail sales of physical goods rose by 8.4%, accounting for nearly 28% of overall retail sales.



Analysis of digital payments transactions by BigOne Lab found the low-income segment — earning 5,000 yuan ($700) or less — rapidly increased their average spending per person in 2023 from a year ago.



The low income segment is mostly made up of young people ages 18 to 24, the report said.



That contrasts with the high-income segment — making 10,000 yuan ($1,400) or more a month — whose spending tapered off in the second half of 2023.



— CNBC’s Shreyashi Sanyal contributed to this report.

107359182-1705386557810-gettyimages-1806666171-CHINA_HEFEI_VANKE

China misses fourth-quarter GDP estimates, resumes posting youth unemployment data

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="461" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/01/107359263-1705399057421-gettyimages-1928724181-DAVOS_WEF_2024-820x461.jpeg" alt="" class="wp-image-447150" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/01/107359263-1705399057421-gettyimages-1928724181-DAVOS_WEF_2024-820x461.jpeg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/01/107359263-1705399057421-gettyimages-1928724181-DAVOS_WEF_2024-300x169.jpeg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/01/107359263-1705399057421-gettyimages-1928724181-DAVOS_WEF_2024-160x90.jpeg 160w, https://cms.cnbcafrica.com/wp-content/uploads/2024/01/107359263-1705399057421-gettyimages-1928724181-DAVOS_WEF_2024-768x432.jpeg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/01/107359263-1705399057421-gettyimages-1928724181-DAVOS_WEF_2024-1536x864.jpeg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/01/107359263-1705399057421-gettyimages-1928724181-DAVOS_WEF_2024.jpeg 1920w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">Steve Sedgwick, anchor for CNBC, Gita Gopinath, first deputy managing director of International Monetary Fund (IMF), Francois Villeroy de Galhau, governor of the Bank of France, Adena Friedman, chief executive officer of Nasdaq Inc., and Chuck Robbins, chief executive officer of Cisco Technologies Inc., left to right, during a panel session on the opening day of the World Economic Forum (WEF) in Davos, Switzerland, on Tuesday, Jan. 16, 2024. Bloomberg | Bloomberg | Getty Images</figcaption></figure>



Around three quarters of the effects of tighter monetary policy have already fed through to the U.S. economy, according to an analysis by the International Monetary Fund.



“We have to recognize that there has been a lot of resilience in the economy despite the rate hikes that we have seen &#8230; our estimate is that for the U.S. about three quarters, or 75%, of the transmission has already gone through, and the rest will go through this year,” the IMF’s Deputy Managing Director Gita Gopinath said at a CNBC-moderated panel at the World Economic Forum on Tuesday.



There is more transmission still to feed through in the euro area, where interest rate hikes started later, she said.



The U.S. economy has maintained stronger growth than was widely expected since interest rates began rising in March 2022, though several strategists have spoken of a potential recession this year. The euro zone economy, meanwhile, has fallen into stagnation. The European Central Bank began hiking in July 2022.



“What is universally true is we have households and corporations with stronger balance sheets. And we’ve seen effects, but we’ve also seen resilience,” Gopinath said on the panel.



“Labor markets are slowing but at a much more gradual pace. Which is why I think at the IMF we feel that a soft landing scenario, the probabilities have come up quite a bit, because inflation has come down without needing that much of a loss in terms of economic activity.”



François Villeroy de Galhau, governor of France’s central bank, noted on the same panel that there were two lags in transmission: from monetary policy decisions to financial conditions, and from financial conditions to the real economy.



“About the first lag, I think the transmission is more or less over,” he said. “In Europe, what is key is the transmission through banks, because as you know, the bank credit channel is about two thirds or three quarters in Europe, much more than in the U.S.”



“What is more difficult is the second lag &#8230; here it’s much more difficult to assess, and it strongly depends on various sectors. If I take real estate for instance, I think most of the transmission has happened already because it’s very sensitive to interest rates. For other sectors, we will see,” de Galhau added.

107359263-1705399057421-gettyimages-1928724181-DAVOS_WEF_2024

U.S. economy has already seen 75% of the impact from Fed’s hikes, IMF says

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="462" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/01/107359389-1705410175678-107359389-1705409992296-1J7A9540-820x462.jpg" alt="" class="wp-image-447146" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/01/107359389-1705410175678-107359389-1705409992296-1J7A9540-820x462.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/01/107359389-1705410175678-107359389-1705409992296-1J7A9540-300x169.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/01/107359389-1705410175678-107359389-1705409992296-1J7A9540-160x90.jpg 160w, https://cms.cnbcafrica.com/wp-content/uploads/2024/01/107359389-1705410175678-107359389-1705409992296-1J7A9540-768x432.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/01/107359389-1705410175678-107359389-1705409992296-1J7A9540.jpg 929w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">Adena Friedman, CEO &amp; Board Chair NASDAQ, speaking on CNBC’s Squawk Box at the WEF Annual Meeting in Davos, Switzerland on Jan. 16th, 2024. Adam Galici | CNBC</figcaption></figure>



Nasdaq CEO Adena Friedman believes the Federal Reserve should be wary of cutting interest rates too soon.



Speaking at a CNBC-moderated panel at the World Economic Forum in Davos, Switzerland, Friedman said Tuesday that while “there are a lot of signals that would say that there should be rate [cuts] as we go through the year, the question is when they would start. And if I were the Fed, I would be a little concerned about starting too early.”



She explained that while inflation was heading in the “right direction of travel,” the Fed would also expect this to moderate, making it harder to bring rates down.



Friedman said that the U.S. central bank “also want to make sure that they feel that they’ve gotten to a state of stability around the rate before they start making significant moves in the interest rate space.”



The Fed held rates steady in December for the third time in a row, keeping the benchmark overnight borrowing rate in a targeted range between 5.25%-5.5%. Federal Open Market Committee members indicated that three rate cuts could be on the cards in 2024.



Between March 2022 and July 2023, the FOMC enacted a run of 11 rate hikes to combat spiraling inflation.



<h2 class="wp-block-heading" id="h-more-confidence-in-the-market">‘More confidence in the market’</h2>



As markets look to predict when interest rates might be cut and when the cost of capital might fall, she said that investors could start to think about how they model company earnings in the future more successfully.



In addition, knowing that inflation is coming down and that the cost of business is moderating, would also give companies more confidence, Friedman said.



“So I think all of that builds more confidence in the market, which of course does show up in the market values,” she said.



Friedman said that while market performance was “top heavy” last year, a broader-based improvement in valuations was emerging, including in lesser-valued companies.



“I think that’ll also drive an interest in investors wanting to put risk capital to work, which means … we could actually have the IPO (initial public offering) market open back up again,” she said, adding that around 85 companies had filed to go public on the Nasdaq.

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Fed should be a ‘little concerned’ about starting rate cuts too early, Nasdaq CEO says

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="461" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/01/107359206-1705390771913-gettyimages-1401710154-_skm8951-820x461.jpeg" alt="" class="wp-image-447057" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/01/107359206-1705390771913-gettyimages-1401710154-_skm8951-820x461.jpeg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/01/107359206-1705390771913-gettyimages-1401710154-_skm8951-300x169.jpeg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/01/107359206-1705390771913-gettyimages-1401710154-_skm8951-160x90.jpeg 160w, https://cms.cnbcafrica.com/wp-content/uploads/2024/01/107359206-1705390771913-gettyimages-1401710154-_skm8951-768x432.jpeg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/01/107359206-1705390771913-gettyimages-1401710154-_skm8951-1536x864.jpeg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/01/107359206-1705390771913-gettyimages-1401710154-_skm8951.jpeg 1920w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">Skaman306 | Moment | Getty Images</figcaption></figure>



DAVOS, SWITZERLAND — The slew of upcoming global elections could derail international efforts to secure long-term food supplies, according to the International Fund for Agricultural Development (IFAD).



President Alvaro Lario told CNBC that is short-term politics will likely dominate over longer-term strategy in the bumper election year of 2024, causing major issues like food security to fall by the wayside.



“It’s going to be a challenging year. Almost half of the governments in the world are going to go through elections,” Lario said Monday at the World Economic Forum in Davos.



“That’s only going to increase the polarization and probably the simpler messages, rather than the complexity of really addressing the change of these food systems,” the head of the U.N. special agency added.



Around two billion people are set to head to the polls this year in a historic series of elections spanning 70 countries. Front of mind for voters will be the economy and ongoing global conflicts, as well as issues like the green transition and its local implications.



Lario noted that growing pushback against climate policies — often known as “greenlash” — has already begun to dominate political discourse, undermining already precarious food systems.



“It’s getting more complex because we’re seeing a lot of the small-scale agriculture producers in Europe, for example, getting impacted by this transition, and how they can finance it. So, even in the local politics, it’s going to become more complex,” he said.



Despite the complexity, Lario said it is the role of organizations such as IFAD to “continue banging at the door” of the public and private sector to bolster investment in programs that tackle the root causes of food insecurity. Those include actions which enable more local food production, greater integration of regional markets and further crop diversification.



Lario said such investment had become all the more important in the face of rising global tensions.



“With an increasing number of conflicts and situations of fragility, it’s very clear that the situation will only get worse given that we are not really tackling the root causes,” he said.



“We thought after the Ukraine shock that [tackling the root causes] was going to be a given, and there was a lot of momentum. But now we’re seeing the momentum once more diluting because the number of conflicts just increases and the attention goes once more to the humanitarian aspect,” he added.



It is estimated that around one in 10 people globally suffer from food insecurity or reliable access to nutritious food, according to UNICEF.

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2024′s wave of elections predicted to derail food security progress

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2022/11/GettyImages-1242149589-820x547.jpg" alt="" class="wp-image-420995" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2022/11/GettyImages-1242149589-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2022/11/GettyImages-1242149589-300x200.jpg 300w, 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, https://cms.cnbcafrica.com/wp-content/uploads/2022/11/GettyImages-1242149589-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><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, Jan 15 (Reuters)&nbsp;&#8211;&nbsp;Tanzania has withdrawn approval for Kenyan national carrier Kenya Airways&nbsp;KQNA.NR&nbsp;to operate flights between the Kenyan capital Nairobi and Dar es Salaam, Tanzania&#8217;s commercial capital, its civil aviation authority said on Monday.



Tanzania said the decision was taken in retaliation for Kenya&#8217;s denial of rights to Tanzania national carrier Air Tanzania to operate cargo flights between the two countries.



In a statement, Tanzania Civil Aviation Authority (TCAA) said it decided &#8220;to rescind the approvals for Kenya Airways (KQ) to operate passenger flights between Nairobi and Dar es Salaam&#8230; with effect from 22 January 2024.&#8221;



However, in separate statements posted on X platform late on Monday, the Kenyan and Tanzanian foreign ministers said both countries would work together to solve the issue within three days.



&#8220;We have jointly agreed that our respective Civil Aviation Authorities will work together to have the matter resolved amicably within the next three days. There should therefore be no cause for alarm,&#8221; Kenya&#8217;s foreign minister Musalia Mudavadi said.



Kenya Airways said it was aware of the ban and was engaging aviation authorities in both countries to find a solution to avoid flight disruptions between Nairobi and Dar es Salaam.



Kenya Airways is one of Africa&#8217;s largest airlines. Tanzania, where attractions include mountains and vast wildlife reserves that teem with game,&nbsp;draws more than a million tourists a year, making it one of its biggest markets.



The clash between Tanzania and Kenya adds to a growing number of trade and commercial disputes between members of the East African Community (EAC), a regional bloc that operates a customs union.



Kenya has previously complained about cheap products from neighbouring Uganda and blocked some, including milk and sugar, drawing protests from Kampala.



Landlocked Uganda has also taken Kenya to a regional court over a dispute related to the importation of petroleum products.



Although Air Tanzania is a small airline, in recent years authorities have been trying to expand its fleet, routes and operations to earn a bigger share of revenues from the region&#8217;s aviation business.



(Reporting by Elias Biryabarema, additional reporting by Bhargav Acharya, Writing by Elias Biryabarema; Editing by Christina Fincher and Barbara Lewis)

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

Tanzania withdraws approval for Kenya Airways flights

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



LONDON/ACCRA, Jan 15 (Reuters)&nbsp;&#8211;&nbsp;The International Monetary Fund (IMF) executive board is due to meet on Friday to consider the first review of Ghana&#8217;s $3 billion rescue loan programme, a spokesperson said by email on Monday.



Board sign off of the review would unlock a $600 million disbursement. Such approvals are usually seen as a formality once a meeting date has been agreed.



Reuters earlier reported the meeting date, according to three sources familiar with the matter, after the cocoa, gold and oil producing country reached an agreement to restructure $5.4 billion of official creditor debt.



Ghana struck the&nbsp;deal with its bilateral lenders, including China and France, late last week, a key step to unlocking the second tranche of IMF funding.



Ghana&#8217;s finance ministry did not immediately reply to a request for comment.



The West African country defaulted on most external debt in December 2022 after servicing costs soared.



It also needs to reach a relief deal with private holders of about $13 billion in international bonds.



The bonds rose almost 1 cent on the dollar on Monday, with the 2042 maturity up the most, climbing 0.85 cents to 43.12&nbsp;cents, its highest level since early November.&nbsp;XS2325747637=TE



&#8220;Recently, China encouraged all parties to overcome technical difficulties and narrow differences, and finally led all parties to reach a basic consensus on Ghana&#8217;s debt settlement plan&#8230; on January 8,&#8221; Chinese Foreign Ministry spokesperson Mao Ning said on Monday.



Some members of the Official Creditor Committee, which is co-chaired by China and France, are still &#8220;going through their internal procedures,&#8221; she told reporters at a regular news briefing.



Ghana is aiming to restructure $20 billion of external debt, which totalled about $30 billion at the end of 2022, under the Common Framework, a debt restructuring process set up by the G20 countries during the COVID-19 pandemic. It has targeted cutting $10.5 billion from payments due between 2023-2026.



The IMF second tranche payout, once signed off, should also trigger $550 million in additional World Bank funding, Ghana&#8217;s finance ministry said on Friday.



(Reporting by Jorgelina do Rosario and Maxwell Akalaare Adombila, Additional reporting by Liz Lee in Beijing and Marc Jones in London, Writing and additional reporting by Rachel Savage, Editing by Karin Strohecker, Andrew Cawthorne, Bernadette Baum and Sharon Singleton)

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IMF board to review Ghana $600 mln loan payout on Friday

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="462" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/01/107335577-1700224254491-gettyimages-1203899187-urn_newsml_dpa_com_20090101_200228-99-115840-2-820x462.jpeg" alt="" class="wp-image-446727" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/01/107335577-1700224254491-gettyimages-1203899187-urn_newsml_dpa_com_20090101_200228-99-115840-2-820x462.jpeg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/01/107335577-1700224254491-gettyimages-1203899187-urn_newsml_dpa_com_20090101_200228-99-115840-2-300x169.jpeg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/01/107335577-1700224254491-gettyimages-1203899187-urn_newsml_dpa_com_20090101_200228-99-115840-2-160x90.jpeg 160w, https://cms.cnbcafrica.com/wp-content/uploads/2024/01/107335577-1700224254491-gettyimages-1203899187-urn_newsml_dpa_com_20090101_200228-99-115840-2-768x432.jpeg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/01/107335577-1700224254491-gettyimages-1203899187-urn_newsml_dpa_com_20090101_200228-99-115840-2.jpeg 929w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">Boris Roessler | Picture Alliance | Getty Images</figcaption></figure>



The majority of economists surveyed by the World Economic Forum expect the global economy to weaken this year, saying that geopolitical fragmentation around the world will deepen.



“Global economic prospects remain subdued and fraught with uncertainty,” WEF’s report, published Monday, said.



“While there are positive developments, such as easing inflationary pressures and advances in the field of artificial intelligence (AI), businesses and policy-makers face persistent headwinds and continued volatility as global economic activity remains slow, financial conditions remain tight and geopolitical rifts and social strains continue to grow.”



The survey of 30 chief economists between November and December last year found that 56% of those questioned expect the global economy to weaken in 2024, while 20% expect it to remain unchanged and 23% forecast “somewhat stronger” economic conditions.



The International Monetary Fund, meanwhile, expects global economic growth to fall slightly in 2024 to 2.9%, from 3% last year.



WEF’s survey shows significant divergence among economists’ expectations for different economies, with the experts most bearish on Europe’s prospects. Some 77% of those surveyed expect growth in the region to weaken this year — that’s almost double the figure recorded in September’s survey.



The economists also turned more negative on the U.S.’s outlook. In the previous survey, 78% forecast moderate or higher growth this year, whereas the latest research sees that number fall to 56%.



Respondents were broadly positive and unchanged on their outlooks for South Asia, and East Asia and the Pacific, but struck a more cautious tone on China, with the majority (69%) now expecting only moderate economic growth.



Of particular concern to the economists was geopolitical rifts, with 69% of economists saying they expect the pace of geopolitical fragmentation to accelerate in 2024.



“When asked about the implications of recent developments … chief economists continue assigning a prominent role to geopolitical factors across macroeconomic and financial developments,” the report said.



“About 87% expect recent geopolitical developments to stoke global economic volatility in the next three years, and eight out of ten expect it to heighten volatility in stock markets.”



It comes after a year of heightened geopolitical tensions, with Russia’s war in Ukraine continuing, China-U.S. relations remaining fraught, and fears of a broader conflict in the Middle East due to the war between Israel and Hamas.



2024 is also a year that will see an unprecedented number of people vote in elections, with over 75 countries — including major economies like the U.S. and U.K. — heading to the polls.



A more positive outcome of WEF’s survey of economists was inflation expectations, with a loosening of financial conditions expected by 70% of respondents.



Economists’ expectations of high inflation fell across all regions, with particular improvement seen in Europe and the U.S., although the report notes that two-thirds of those surveyed still expect moderate inflation in both regions.

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Top economists predict global growth will weaken this year as geopolitical rifts grow

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="462" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/01/107358866-1705312997763-gettyimages-1925287828-DAVOS_WEF_2024-820x462.jpeg" alt="" class="wp-image-446709" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/01/107358866-1705312997763-gettyimages-1925287828-DAVOS_WEF_2024-820x462.jpeg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/01/107358866-1705312997763-gettyimages-1925287828-DAVOS_WEF_2024-300x169.jpeg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/01/107358866-1705312997763-gettyimages-1925287828-DAVOS_WEF_2024-160x90.jpeg 160w, https://cms.cnbcafrica.com/wp-content/uploads/2024/01/107358866-1705312997763-gettyimages-1925287828-DAVOS_WEF_2024-768x432.jpeg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/01/107358866-1705312997763-gettyimages-1925287828-DAVOS_WEF_2024.jpeg 929w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">A pedestrian walks past the TATA pop up store with a poster reading ‘The Future is AI’ ahead of the World Economic Forum (WEF) in Davos, Switzerland, on Sunday, Jan. 14, 2024. The annual Davos gathering of political leaders, top executives and celebrities runs from January 15 to 19. Photographer: Hollie Adams/Bloomberg via Getty Images Bloomberg | Bloomberg | Getty Images</figcaption></figure>



The International Monetary Fund warned that nearly 40% of jobs across the globe could be affected by the rise of artificial intelligence, with high-income economies facing greater risks than emerging markets and low-income countries.



The Washington, D.C.-based institution on Sunday assessed the potential impact of AI on the global labor market and found that, in most cases, the technology is likely to worsen overall inequality.



IMF chief Kristalina Georgieva urged policymakers to tackle this “troubling trend” and to proactively take steps “to prevent the technology from further stoking social tensions.”



“We are on the brink of a technological revolution that could jumpstart productivity, boost global growth and raise incomes around the world. Yet it could also replace jobs and deepen inequality,” Georgieva said.



The IMF noted that about 60% of jobs could be impacted by AI in high-income nations, and roughly half of these may benefit from AI integration to boost productivity.



Comparatively, AI exposure was estimated to come in at 40% in emerging markets and at 26% in low-income countries, respectively.



The findings suggest that emerging markets and low-income countries face fewer disruptions from AI in the short-term. The IMF notes that many of these nations don’t have the infrastructure of skilled workers to harness the immediate benefits of AI, raising the risk that the tech could worsen inequality.



The IMF also flagged that AI could affect income and wealth inequality within countries, warning of “polarization within income brackets.”



It said workers who are able to access the benefits of AI could increase their productivity and salary, while those who cannot are at risk of falling further behind.



Goldman Sachs has previously warned generative AI could impact as many as 300 million jobs worldwide, although the Wall Street bank acknowledged the technology could spur labor productivity and growth and boost gross domestic product by as much as 7%.



The IMF report comes as business and political leaders from around the world gather at the World Economic Forum in Davos, Switzerland. The annual WEF meeting, which runs through to Friday, takes place under the theme of “Rebuilding Trust.”



WEF says the Davos program embodies a “back to basics” spirit of open and constructive dialogue between policymakers, business leaders and civil society, with the benefits and drawbacks of AI expected to be a key topic of discussion. The event has been criticized in recent years for being out of touch, ineffective and irrelevant.

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IMF warns AI to hit almost 40% of jobs worldwide and worsen overall inequality

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="462" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/01/107349589-17030092002023-12-19t165131z_1341710505_rc2g05a9etw3_rtrmadp_0_ukraine-crisis-zelenskiy-820x462.jpeg" alt="" class="wp-image-446662" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/01/107349589-17030092002023-12-19t165131z_1341710505_rc2g05a9etw3_rtrmadp_0_ukraine-crisis-zelenskiy-820x462.jpeg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/01/107349589-17030092002023-12-19t165131z_1341710505_rc2g05a9etw3_rtrmadp_0_ukraine-crisis-zelenskiy-300x169.jpeg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/01/107349589-17030092002023-12-19t165131z_1341710505_rc2g05a9etw3_rtrmadp_0_ukraine-crisis-zelenskiy-160x90.jpeg 160w, https://cms.cnbcafrica.com/wp-content/uploads/2024/01/107349589-17030092002023-12-19t165131z_1341710505_rc2g05a9etw3_rtrmadp_0_ukraine-crisis-zelenskiy-768x432.jpeg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/01/107349589-17030092002023-12-19t165131z_1341710505_rc2g05a9etw3_rtrmadp_0_ukraine-crisis-zelenskiy.jpeg 929w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">Ukraine’s President Volodymyr Zelenskyy holds a press conference, amid Russia’s attack on Ukraine, in Kyiv, Ukraine, December 19, 2023.  Alina Smutko | Reuters</figcaption></figure>



Ukraine pushed ahead with its peace formula to end nearly two years of war with Russia with a meeting of national security advisers from around the world in Davos on Sunday.



Ukrainian President Volodymyr Zelenskyy, who is scheduled to address the World Economic Forum (WEF) in Davos later in the week, was not in the opening morning session, which included 81 participants from countries and international organisations.



Zelenskyy was represented by his chief of staff Andriy Yermak at Sunday’s talks, which were also attended by the U.S. special representative for Ukraine’s Economic Recovery Penny Pritzker, as well as James O’Brien, the U.S. Assistant Secretary of State for European and Eurasian Affairs.



As concerns grow about ongoing U.S. support for the war in Ukraine during an election year, National Security Advisor Jake Sullivan and Secretary of State Antony Blinken are both expected to address the WEF, which officially starts on Monday evening.



Switzerland, which hosted the NSA representatives, said the Ukraine peace talks aimed to finalise principles “for a lasting and just peace in Ukraine” at the level of national security advisers. The principles, it said in a statement last week, should form the basis for the next stages of the peace process.



The role of the Global South in Ukraine’s peace formula talks has come into focus in Davos. Many of the non-aligned countries from Africa, Latin America, the Middle East and Asia that have largely stayed on the sidelines over Ukraine will be represented in the Swiss mountain resort this week.



Nigeria’s national security adviser Nuhu Ribadu could be seen attending the NSA meeting. Yermak said that there were participants from 18 Asian countries, 12 African countries and 6 South American countries.



“Countries from the Global South are increasingly involved in our work,” Yermak said on his Telegram account.



Ukraine, with strong backing from its allies, has consistently said it will not give up until it has reclaimed every piece of territory that Russia has taken.



It is unclear, however, if countries in the Global South agree with that as a peace formula.

107349589-17030092002023-12-19t165131z_1341710505_rc2g05a9etw3_rtrmadp_0_ukraine-crisis-zelenskiy

Top diplomats meet in Davos on Ukraine ‘peace formula’

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="619" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/01/GettyImages-1258264762-820x619.jpg" alt="" class="wp-image-446347" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/01/GettyImages-1258264762-820x619.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/01/GettyImages-1258264762-300x226.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/01/GettyImages-1258264762-119x90.jpg 119w, https://cms.cnbcafrica.com/wp-content/uploads/2024/01/GettyImages-1258264762-768x580.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/01/GettyImages-1258264762.jpg 1024w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">KIGALI, RWANDA &#8211; MAY 27: Michael Fakuade (L) of Al Ahly and Matthew Bryan-Amaning (R) of AS Douanes compete during 2023 Basketball Africa League Championship match between AS Douanes and Al Ahly at BK Arena in Kigali, Rwanda on May 27, 2023. (Photo by Cyrile Ndegeya/Anadolu Agency via Getty Images)</figcaption></figure>



In 2024, Africa&#8217;s sports calendar is marked by an array of prominent tournaments, reflecting the continent&#8217;s enduring commitment to sports. These events, spanning various disciplines, not only highlight the athletic skill and competitive spirit prevalent across Africa but also emphasize the cultural significance of sports within the continent. Each tournament, with its unique history and contemporary relevance, contributes to a broader narrative that intertwines sports with cultural identity and regional unity.



In the heart of the continent&#8217;s football passion, the African Cup of Nations (AFCON), rescheduled to January 13-February 11, in the Ivory Coast, stands as a beacon of football excellence. Originating in 1957, AFCON has evolved from a modest three-team tournament to a grand stage featuring 24 countries. Its 34th edition in Ivory Coast promises a vibrant celebration of football, where careers are forged, and continental pride soars.



The 13th African Games, set to be held in Ghana from March 8-23 marks a milestone in the continent&#8217;s multi-sport showcase. Spanning across Accra, Kumasi, and Cape Coast, this event, originating in 1965, symbolizes the diversity and growth of African sports. The inclusion of sports such as squash, cricket, and rugby union in this edition reflects the evolving nature of the Games and the continent&#8217;s expanding sporting horizon.



Nigeria&#8217;s National Sports Festival, a biennial multi-sport event for athletes from its 36 states, epitomizes the spirit of unity and cultural exchange. Established in 1973 as a post-civil war unifying force, the festival, known as the &#8216;Gateway Games,&#8217; continues to foster national unity and serves as a development platform for athletes. The dates for the 2024 edition are yet to be announced.



The 23rd African Men’s Handball Cup of Nations, to be hosted by Egypt from January 19-29, stands as a testament to the continent&#8217;s handball prowess. Established in 1974, this championship not only crowns the African champions but also serves as a qualifier for global tournaments, underscoring the sport&#8217;s significance and Egypt&#8217;s dominant role in it.



The Basketball Africa League (BAL) 2024 season, set to commence on March 9, illustrates the rising prominence of basketball in Africa. Expanding to 48 games across four countries, including South Africa, Egypt, Senegal, and Rwanda, this season reflects the sport&#8217;s evolution and the continent&#8217;s commitment to nurturing professional basketball.



Each of these events mirrors the diverse and dynamic essence of African sports. Far from mere athletic contests, they represent a confluence of cultural unity and competitive spirit across the continent.



From the lush football fields of Ivory Coast to the handball courts of Egypt, these tournaments in 2024 are more than showcases of physical prowess; they are platforms for celebrating the rich tapestry of African sportsmanship and its evolving role in the global sporting community.

2023 Basketball Africa League Championship – Al Ahly v AS Douanes

The African Sporting Landscape: 2024’s Panorama Of Competitions

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="534" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/01/I7JNEWQ4GVLM3NU76F6XVVSAV4-1-820x534.jpg" alt="" class="wp-image-445713" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/01/I7JNEWQ4GVLM3NU76F6XVVSAV4-1-820x534.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/01/I7JNEWQ4GVLM3NU76F6XVVSAV4-1-300x195.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/01/I7JNEWQ4GVLM3NU76F6XVVSAV4-1-138x90.jpg 138w, https://cms.cnbcafrica.com/wp-content/uploads/2024/01/I7JNEWQ4GVLM3NU76F6XVVSAV4-1-768x500.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/01/I7JNEWQ4GVLM3NU76F6XVVSAV4-1-1536x1001.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/01/I7JNEWQ4GVLM3NU76F6XVVSAV4-1-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">FILE PHOTO: People walk on the street around Kwame Nkrumah circle in Accra, Ghana, December 2, 2016. Picture taken December 2, 2016. REUTERS/Luc Gnago</figcaption></figure>



ACCRA/LONDON, Jan 12 (Reuters)&nbsp;&#8211;&nbsp;Ghana&#8217;s official creditors have agreed to restructure debts that were extended to the country up until December 2022, two sources told Reuters, with Accra closing in on a key step required to advance its restructuring.



A deal between Ghana and its official creditors would pave the way for the Executive Board of the International Monetary Fund (IMF) to approve the disbursement of $600 million under its $3 billion bailout programme.



Discussions over the &#8220;cut-off date&#8221; &#8211; the date after which new loans signed with bilateral creditors will not be restructured &#8211; had recently emerged as a stumbling block to an agreement.



Bilateral lenders, including China and France who co-chair the Official Creditor Committee (OCC), hold around a quarter of Ghana&#8217;s $20 billion external debt earmarked for restructuring.



Some creditors were said to prefer Dec. 31, 2022, as a cut-off date, with Ghana having defaulted earlier that month, while others had pushed for March 24, 2020, when the Group of 20 introduced its debt service suspension initiative (DSSI) to help the world&#8217;s poorest countries cope with the fallout of the COVID crisis. Ghana did not participate in the DSSI.



Ghana&#8217;s finance ministry declined to comment. China&#8217;s central bank, finance ministry and the Export-Import Bank of China did not immediately respond to requests for comment.



Ghana still needs to formally accept the proposal.



One of the sources said the OCC plan foresaw no reduction to principal and interest rates overall, but that Ghana would not pay either for the next four years with payments set to resume thereafter.



Following their meeting on Monday, official creditors had shared the term sheet of their proposal with Ghana, according to media reports and sources.



Speaking about a possible deal with official creditors, Finance Minister Ken Ofori-Atta told Bloomberg he hoped to finish reviewing the draft term sheet by Friday and that &#8220;in terms of the broad framework, all parties are in agreement&#8221;, which he said would allow the IMF to sign off on the disbursement.



(Reporting by Maxwell Akalaare Adombila in Accra and Jorgelina do Rosario in London, additional reporting by Christian Akorlie in Accra and Joe Cash in Beijing, writing by Karin Strohecker, editing by Elisa Martinuzzi and Alex Richardson)

People walk on the street around Kwame Nkrumah circle in Accra

Ghana official creditors agree on restructuring date, key step to deal – sources

<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>



Jan 12 (Reuters)&nbsp;&#8211;&nbsp;Emerging markets&#8217; assets were range-bound on Friday after a hotter-than-expected U.S. inflation report did not discourage investors from early rate cut bets, while markets also kept a watch on rising tensions in the Middle East.



The MSCI&#8217;s gauge of emerging market stocks&nbsp;.MSCIEF&nbsp;was up 0.1% at 0920 GMT, while a basket of currencies&nbsp;.MIEM00000CUS&nbsp;ticked up 0.1% against a steady dollar.



For the week, the broader stocks index is on track to lose 0.6%, extending its weak start to the New Year.



Oil prices rose 2% on Friday, even as market participants closely watch the escalating tensions in the Middle East after the United States and Britain carried out air and sea strikes on Houthi military targets in Yemen in response to attacks by the Iran-backed group on shipping in the Red Sea.



Data on Thursday showed U.S. consumer price index (CPI) rose 3.4% on an annual basis in December compared with forecasts of a 3.2% rise, suggesting it was probably too early for the Federal Reserve to start cutting interest rates.



Core inflation, which excludes volatile items like food and energy, slipped on a yearly basis.



Yet, traders are betting on a 68.1% probability for the Fed to cut rates in March, according to the CME FedWatch tool.



&#8220;Rate expectations were not moved by slightly hotter-than-expected U.S. CPI, and support for the dollar has mostly come through the risk-sentiment channel,&#8221; ING economists wrote in a note.



&#8220;Range-bound trading may persist despite conditions for a stronger dollar,&#8221; they added.



The dollar index&nbsp;=USD&nbsp;and the 10-year U.S. Treasury yields&nbsp;US10YT=RRrallied initially after the CPI readings but ended lower on Thursday.



In Europe, the Hungarian forint EURHUF= slipped 0.1% after inflation in December was cooler-than-expected on an annual basis.



Czech&#8217;s crown EURCZK= gained 0.3% after the country&#8217;s current account showed a surplus of 43.52 billion crowns ($1.94 billion) in November, while domestic retail sales also rose on an annual basis.



The Russian rouble RUBUTSTN=MCX hit over seven-week highs and strengthened past 88 against the dollar, boosted by the state&#8217;s new foreign currency interventions plan and higher oil prices after Western strikes against Houthi military targets in Yemen. RU/RUB



The rouble was last seen at 88.0675, after hitting a high of 87.9675.



Across Asia, both China&#8217;s blue-chip index&nbsp;.CSI300&nbsp;and Hong Kong shares&nbsp;.HSIfell 0.4% each after mixed economic data.



China&#8217;s exports grew 2.3% in December from a year earlier, while consumer prices declined for a third month in December highlighting persistent deflationary pressures in an economy struggling to mount a solid recovery.



Turkey&#8217;s lira TRYTOM=D3 weakened and hovered around 30 to the dollar, while the country&#8217;s current account balance turned to a larger-than-expected deficit of $2.72 billion in November after two months of surpluses, central bank data showed.



(Reporting by Siddarth S in Bengaluru; Editing by Krishna Chandra Eluri)

World map with charts and graphs as symbols of global finance

Assets tread water after US CPI data; stocks set for weekly declines

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/01/SWEUMT7U2BNOBJQWUWR7XK5WEI-820x547.jpg" alt="" class="wp-image-445639" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/01/SWEUMT7U2BNOBJQWUWR7XK5WEI-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/01/SWEUMT7U2BNOBJQWUWR7XK5WEI-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/01/SWEUMT7U2BNOBJQWUWR7XK5WEI-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2024/01/SWEUMT7U2BNOBJQWUWR7XK5WEI-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/01/SWEUMT7U2BNOBJQWUWR7XK5WEI-1536x1024.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/01/SWEUMT7U2BNOBJQWUWR7XK5WEI-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">Israeli Prime Minister Benjamin Netanyahu convenes the weekly cabinet meeting at the Defence Ministry in Tel Aviv, Israel, January 7, 2024. REUTERS/Ronen Zvulun/Pool</figcaption></figure>



THE HAGUE, Jan 12 (Reuters)&nbsp;&#8211;&nbsp;Israel will respond on Friday to accusations brought by South Africa at the U.N.&#8217;s top court that its military operation in Gaza is a state-led genocide campaign aimed at wiping out the Palestinian population.



South Africa, which filed the lawsuit at the International Court of Justice (ICJ) in December, asked judges on Thursday to impose emergency measures ordering Israel to immediately halt the offensive.



It said Israel&#8217;s aerial and ground offensive &#8211; which has laid waste to much of the narrow coastal enclave and killed more than 23,000 people according to Gaza health authorities &#8211; aimed to bring about &#8220;the destruction of the population&#8221; of Gaza.



Israel rejected the accusations of genocide as baseless and said South Africa was acting as a mouthpiece for Hamas, which it views as a terrorist organisation seeking to eliminate the Jewish state. Its military was targeting Hamas militants, not Palestinian civilians, it said.



Israel launched its all-out war in Gaza after a cross-border rampage on Oct. 7 by Hamas militants in which Israeli officials said 1,200 people were killed, mainly civilians, and 240 taken hostage back to Gaza.



The 1948 Genocide Convention, enacted in the wake of the mass murder of Jews in the Nazi Holocaust, defines genocide as &#8220;acts committed with intent to destroy, in whole or in part, a national, ethnical, racial or religious group&#8221;.



Since Israeli forces launched their offensive, nearly all of Gaza&#8217;s 2.3 million people have been driven from their homes at least once, causing a humanitarian catastrophe.



Post-apartheid South Africa has long advocated the Palestinian cause, a relationship forged when the African National Congress&#8217; struggle against white-minority rule was cheered on by Yasser Arafat&#8217;s Palestine Liberation Organisation.



The court is expected to rule on possible emergency measures later this month, but will not rule at that time on the genocide allegations &#8211; those proceedings could take years.



The ICJ&#8217;s decisions are final and without appeal &#8211; but the court has no way to enforce them.



(Reporting by Anthony Deutsch, Stephanie van den Berg and Toby Sterling and Bart Meijer; Editing by Alex Richardson)

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