Ghana Seen Slashing Rate as Yields Drop Ahead of Urgent Meeting
The Bank of Ghana announced late Wednesday that policymakers would hold an 'emergency' meeting on Thursday and deliver their decision on Friday, shifting the date forward from July 30. The bank declined to comment beyond its announcement.
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UPI
26 minutes ago
- UPI
Argentina makes economic recovery, but opposition to Milei grows
July 24 (UPI) -- A report from J.P. Morgan points to a "deep and surprising" recovery in Argentina's economy under President Javier Milei, but warns that the future of his economic plan will depend on the outcome of the October legislative elections. Since taking office in December 2023, Milei has implemented sweeping measures to shrink the state, cut spending and liberalize the economy. According to the investment banking and research arm of the U.S. financial giant, Argentina has managed in just a few months to lower inflation, reach fiscal balance and strengthen its foreign reserves -- after years of stagnation, crisis and heavy dependence on public spending. "The country is undergoing a structural transformation with extraordinary potential, though not without significant risks," economists Diego Pereira and Lucila Barbeito wrote in the report. Monthly inflation fell to 1.6% in June, down from more than 25% in December. The government has posted a primary surplus equal to 1.1% of GDP so far this year, and the Central Bank's reserves are beginning to recover. Moody's upgraded Argentina's credit rating for the second time in 2025, and J.P. Morgan projected 2025 GDP growth at 5.5%. The economic adjustment, however, has come at a significant social cost. The government has laid off public employees, cut subsidies and suspended state infrastructure projects. Despite improvements in macroeconomic indicators, social conditions remain fragile. A recent poll by Zuban Córdoba found that 52.8% of voters plan to punish the government in October's elections, while 38.3% intend to reward it. The survey also showed that 57.5% of Argentines hold a negative view of Milei. According to polling firm Analogías, favorable opinions of the government declined by 2 to 3 percentage points in July. Milei's approval rating dropped 4 points to 44%, while his disapproval rose to 50%, creating a net negative gap of 5.5 points, Perfil reported Wednesday. Respondents were critical of Milei's tone and communication style: 73% said they disagreed with it and 66% described it as "violent." Analysts and banks agree that without political support in Congress, the government's economic course could weaken. Economist Milagros Gismondi wrote on X that many companies are beginning to focus on boosting productivity, which she sees as a positive shift. "Banks are back to being banks, and car dealers are thinking about how to produce more efficiently. That didn't happen before, because everyone was worried about whether they could import, whether there would be energy or whether the dollar would spike," she said. Still, Gismondi noted that the private sector remains cautious. "They're also waiting for the elections to see whether deeper reforms -- such as labor or tax changes -- move forward. If stabilization holds, next year we should finally start talking seriously about how to improve Argentina's productivity," she said. If Milei fails to perform well in October's elections, he could face difficulties passing key legislation, including political reforms, privatizations or potential constitutional changes. The president currently governs with a fragmented Congress, and the legislative vote could either reinforce that dynamic or further weaken his bloc if his party, La Libertad Avanza, fails to retain or expand its seats.
News24
an hour ago
- News24
Ramaphosa warns Trump's tariffs highlight urgency to diversify vehicle exports
@PresidencyZA/X Ramaphosa urges the auto sector to reduce reliance on US exports. BMW's new hybrid model aligns with green mobility priorities. Government pledges incentives for electric vehicles (EVs) production and mineral processing. President Cyril Ramaphosa has warned that the newly announced tariffs by the US could pose significant risks to SA's automotive exports, urging the sector to diversify its markets and increase domestic value creation. A 30% tariff on SA's exports to the US is set to be implemented on 1 August. Speaking at the launch of BMW's new X3 plug-in hybrid electric vehicle at its Rosslyn plant in Pretoria on Thursday, Ramaphosa praised the company's continued investment in the country but cautioned that reliance on a few export destinations, such as the US and Europe, could leave the local industry exposed. 'The recent announcement on tariffs by the US, of course, has a huge impact on all of us,' said Ramaphosa. It further underscores the need for us to diversify our export base and to accelerate domestic value creation as well. President Cyril Ramaphosa He said while BMW's decision to export the new X3 to Europe was welcomed, SA must also expand its footprint across the continent, particularly within the Southern African Development Community. 'We need to open our eyes and our ears and see where else our vehicles can go,' the president said. SA's automotive sector contributes 4.9% to the country's GDP and supports more than 115 000 direct jobs. Ramaphosa described the industry as the 'lead spine' of the country's industrial strategy and said the BMW Group's role in its development was both longstanding and crucial. He said BMW's decision to produce hybrid vehicles locally aligns with the country's transition to a low-carbon economy and the global push towards green mobility. 'We are committed and determined to ensure that there is an enabling regulatory and policy environment to make it easier for companies like BMW to continue to innovate,' he said. This includes support through the Automotive Production and Development Programme, the Electric Vehicle White Paper, and targeted incentives for battery cell production, clean mobility research and critical mineral beneficiation. Ramaphosa also praised the company's broader economic contribution, including its training academy, the Youth Employment Service programme and its investment in digital skills through its IT hub. He said BMW's continued presence and reinvestment, including its R4.2 billion pledge at the SA Investment Conference, was a sign of trust in local workers, who the company refers to as 'associates'. 'You are now going to be producing a high-end vehicle for the world market,' he said to the BMW staff at the plant. It will come from your hands, as associates of this company. The Rosslyn plant was BMW's first production facility built outside Germany and has operated in the country for more than 50 years. Ramaphosa described the plant as a model of industrial transformation, job creation and inclusive growth.
Yahoo
2 hours ago
- Yahoo
Trump to tour Fed as war on central bank chief ramps up
Donald Trump is due to visit the US Federal Reserve Thursday as the president escalates his pressure on its chairman Jerome Powell over the central bank's management of the economy. Trump -- who wants to oust Powell for refusing to lower interest rates but likely lacks the legal authority -- has threatened instead to fire the Fed chief over cost overruns for a renovation of its Washington headquarters. The White House did not specify whether Trump would meet Powell, who has vowed to remain in place until the end of his term next May, but the president would likely welcome any encounter. The afternoon tour comes with Trump desperate to shift focus from the crisis engulfing his administration over its decision to close the file on multi-millionaire sex offender Jeffrey Epstein, who died in 2019 while awaiting trial on trafficking charges. Attorney General Pam Bondi informed the president in the spring that his name appeared in the Epstein files, according to the Wall Street Journal. Trump has picked all manner of targets, including his Democratic predecessors and former chiefs of the security and intelligence services, as he bids to move Epstein out of the headlines. He again berated Powell on Wednesday, moments after Treasury Secretary Scott Bessent had appeared on television to claim Powell's job was safe. "Housing in our Country is lagging because Jerome 'Too Late' Powell refuses to lower Interest Rates," Trump thundered on his social media platform, Truth Social. Presidential visits to the Federal Reserve are not unheard of -- Franklin D. Roosevelt, Gerald Ford and George W. Bush all made the trip -- but they are rare. They have been viewed in the past as an attempt to influence monetary policy. Trump has criticized Powell for months over his insistence on keeping short-term interest rate at 4.3 percent this year, after cutting it three times last year, when Joe Biden was in office. Powell says he is monitoring the response of the economy to Trump's dizzying array of import tariffs, which he has warned could lead to a hike in inflation. But Trump has angrily accused Powell of holding back the economy, calling the man he nominated in his first term "stupid" and a "loser." - Threats and abuse - Soaring costs for the Fed's renovation of its Washington headquarters and a neighboring building -- from an initial $1.9 billion to $2.5 billion -- have caught Trump's attention. Trump's budget director Russell Vought wrote to Powell earlier this month to tell him the president was "extremely troubled by your mismanagement of the Federal Reserve System." "Instead of attempting to right the Fed's fiscal ship, you have plowed ahead with an ostentatious overhaul of your Washington, D.C. headquarters," Vought wrote. The Federal Reserve, the world's most important central bank, makes independent monetary policy decisions and its board members typically serve under both Republican and Democratic presidents. Its 12-member Federal Open Market Committee votes on any decisions concerning interest rates and can in theory disagree with the views of the chairman. Experts question whether Trump has the authority to fire Powell, especially since a Supreme Court opinion in May that allowed the president to remove other independent agency members but suggested that this did not apply to the Fed. When asked last week if the costly rebuilding could be grounds to fire Powell, Trump said, "I think it is." Before the visit, Trump plans to sign executive orders at the White House on Thursday afternoon, as he continues to face pushback from his supporters over his handling of the Epstein case. Justice Department officials were to interview Ghislaine Maxwell, Epstein's imprisoned accomplice on Thursday in her cell in Tallahassee, Florida, US media reported. ft/bgs Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
