Major International Business Headlines Brief::: 16 April 2024

Wed Apr 17 09:33:36 CAT 2024

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Major International Business Headlines Brief:::  16 April 2024 

ü  Tanzania-Malawi Diplomatic Tensions Rise Over $30m Port Project

ü  Kenya: National Rights Commission Weighs in On Koome's Outburst

ü  Uganda: Traders in Kampala CBD Lock Shops

ü  Kenya: Tea Worth Ksh2b Unsold As KTDA Reinstates Minimum Price On Older Stocks

ü  Uganda: Besigye to Join City Traders in Tax Protest

ü  Kenya's Shilling Is Gaining Value, but Don't Expect It to Last - Expert

ü  Ghana: Assessment of Economic Impact of Akosombo, Kpong Dams Spillage - Affected C'nities Lose Gh¢1.6bn in Agric Livelihoods - FAO's Assessment

ü  Nigeria: Budget 2024 - Again, OBI Exposes Additional Insensitive, Undeserving Allocations

ü  Ghana: We've Not Agreed On Transport Fare Increase - Transport Ministry

ü  Ghana: Govt Has Done Little to Improve Our Condition of Service - Teachers Union

ü  United Airlines says Boeing blowout cost it $200m

ü  Adidas on front foot after exiting Kanye West deal

ü  Volkswagen: Can the United Autoworkers Union win in the American south?

ü  Russia to grow faster than all advanced economies says IMF

ü  First product of Meghan's lifestyle brand revealed

 <https://www.cloverleaf.co.zw/> Tanzania-Malawi Diplomatic Tensions Rise Over $30m Port Project

Tanzania and Malawi are on the brink of a diplomatic standoff following Dodoma's decision to commence the upgrade of Mbamba Bay Port, situated on the shores of Lake Malawi.

Lilongwe accuses Tanzania of initiating the project without consultation, given the contested nature of the port between the two nations.

Malawi has formally requested Tanzania to suspend the project, a move likely to escalate tensions between the neighbouring countries.

In a letter to Tanzanian authorities, the Government of Malawi asserts that proceeding with the project on Malawian territory without consent is both irregular and illegal.

Malawi insists that the project should cease until proper consultations are conducted and consent is obtained from the Malawian government.

"The Government of Malawi would like to express that embarking on such a project on Malawi's territory without the country's consent is irregular and illegal, and request that the project be halted until such necessary consultations and upon being given consent from the government of Malawi," reads a letter, quoted by the Nation publication.

Furthermore, Malawi urges Tanzania to refrain from actions that could disrupt the dispute settlement process and jeopardise Malawi's historical and legal rights to the entirety of Lake Malawi.

The Tanzania Port Authority (TPA) has already inked a $31.8 million construction deal with China's Xiamen Ongoing Construction Group for the port, with a projected completion timeline of 24 months.

The unresolved boundary issue between the two nations has persisted for over a decade, with mediation efforts failing to yield conclusive results.

According to reports from the Nation publication, Malawi contends that the boundary should follow the shoreline of Lake Malawi, as stipulated in Article 1(2) of the 1890 Anglo-German Treaty.

Conversely, Tanzania maintains that the boundary is the median line of the lake, based on the principle of customary international law.

- Business Day Africa.

 <https://www.cloverleaf.co.zw/> Kenya: National Rights Commission Weighs in On Koome's Outburst

Nairobi — The Kenya National Commission on Human Rights (KNCHR) has called for an immediate end to threats and intimidation against lawful protests urging the government to engage in dialogue.

KNCHR made the call in response to a directive by Inspector General of Police Japhet Koome who ordered firm enforcement measures on Sunday to reign in on striking medical professionals whose protests he declared a "nuisance".

The Commission called for genuine dialogue between representatives of doctors, clinicians, and nurses to address unresolved issues and establish a return-to-work formula.

"The KNCHR holds that the State bears the primary responsibility of ensuring that Kenyans enjoy their rights (including the right to healthcare) as provided for under the Constitution and international human rights instruments that Kenya has ratified," KNCHR Chairperson Roseline Odede said on Tuesday.

While noting that the strike that commenced on March 13 had disrupted public healthcare and resulted in fatalities and escalated medical expenses, KNCHR observed that the protest remained non-violent thus conforming to the law.

The Commission singled out incidents of police brutality as unacceptable noting injuries inflicted on the Kenya Medical Practitioners, Pharmacists and Dentists Union (KMPDU) Secretary General Davji Atellah during a protest.

"The KNCHR maintains that national security shall be pursued with utmost respect for the rule of law and human rights," Odede said.

KNCHR's response came a day after the Law Society of Kenya (LSK) denounced Koome's directive.

The LSK said Koome's directive lacked legal foundation and care for public welfare.

Conciliatory talks

KNCHR and LSK responded to Koome even as the government urged striking doctors and clinicians to end the "illegal" strike and pursue dialogue.

Labour Cabinet Secretary Florence Bore urged doctors to suspend the strike and negotiate with their employers: the Ministry of Health and the 47 county governments.

She called on the doctors to obey the Employment and Labor Relations Court orders, reiterating that the union must call off the strike and direct its members to return to work.

"This matter has received attention at the highest level, and we should have faith in each other to resolve the matter once and for all. Once more I appeal to the doctors, clinical officers, and laboratory technicians to give dialogue a chance," she said in a statement on Friday.

Bore met KMPDU representatives on Monday to discuss the framework of court-ordered conciliatory talks.

The Ministry of Health proposed retaining interns on a stipend of 70,000, which would cost the government approximately Sh2.4 billion.

Afya House noted that the Sh206,000 demanded by the union would require an allocation of Sh4.9 billion, a figure it was was unaffordable.

- Capital FM.

Uganda: Traders in Kampala CBD Lock Shops

Traders in the central business district of Kampala and other parts of city have decided to keep their shops shuttered until they have the opportunity to meet with the President in significant numbers.

The decision, spearheaded by the Kampala City Traders Association (KACITA), speaks to the growing frustration with what they perceive as the government's neglect of their concerns.

Thaddeus Musoke, chairman of KACITA, emphasized the severity of the situation.

"Traders have resolved to keep their shops closed nationwide due to the government's lack of concern towards our plight," Musoke said.

Downtown Kampala remains heavily guarded with visible presence of security as traders prepare for their demonstration, seeking solace in prayer as they gear up for the challenge ahead.

"The only way to console ourselves and gather the courage to take our next course of action is through prayer," remarked Nagenda.

Traders lamented the prolonged disregard for their plight, noting that despite promises of incentives to dissuade demonstrations, no tangible documentation has been provided by the government.

Ramathan Ggoobi, secretary to the treasury, reiterated the government's stance, asserting that the Electronic Fiscal Receipting and Invoicing System (EFRIS) is here to stay.

Last week, despite KACITA's appeal to refrain from demonstrations, a faction of traders under the Federation of Uganda Traders Association (FUTA) closed shop in protest.

"With KACITA joining the demonstration and mobilizing for nationwide shop closures, the pressure mounts on the President to address the concerns of the traders," added Nagenda.

All eyes are on whether the President will heed their calls and engage in dialogue to find a way forward.

- Nile Post.

Kenya: Tea Worth Ksh2b Unsold As KTDA Reinstates Minimum Price On Older Stocks

Kenyan tea worth Ksh2.3 billion was withdrawn from the market in the latest sale as the Kenya Tea Development Agency (KTDA) instructed brokers to sell the beverage at the reserved price, resulting in traders rejecting millions of kilos of the commodity offered for sale.

Buyers turned down at least 9.8 million kilogrammes of tea offered for trading at the auction by KTDA in sale 15, citing a mismatch between price and quality.

The amount of tea withdrawn represented 52 percent of the total commodity offered at the Mombasa Tea Auction floor for sale.

During the sale, KTDA directed brokers to sell their tea at $2.43, the government-set minimum price for smallholder farmers' commodity. In the previous sale, the agency had instructed brokers to sell the beverage at the best-offered bids.

"The previous week, KTDA had instructed brokers to sell the old teas at the best-offered bids. However, last week, they imposed reserved prices on old stocks, leading to significant withdrawals," said a tea broker who spoke to Business Day Africa.

Last month, the agency initiated the release of aged tea stocks into the market at prices below the government-mandated minimum, aiming to alleviate warehouse congestion and boost liquidity.

Exceeding 70 million kilogrammes, the tea reserves within KTDA's warehouses and facilities have remained stagnant due to their uncompetitive pricing, stemming from the enforced minimum price at the auction.

Critics contend that anchoring the minimum price to production expenses rather than the intrinsic value of tea was imprudent.

Furthermore, industry experts emphasise the impracticality of establishing a uniform market price due to the varied quality of teas sourced from distinct regions.

"Auction prices should reflect the inherent disparities in quality between teas originating from the eastern and western regions of the Rift," said a tea trader, highlighting the inequity perpetuated by the current pricing structure.

Consequently, the inflexibility of the minimum price regime has prompted buyers to favor alternative high-quality teas over KTDA offerings, exacerbating the volume of tea left unsold at the auction.

- Business Day Africa.

Uganda: Besigye to Join City Traders in Tax Protest

Fresh from his western region consultations and then from sending off their fallen activists in Teso, the opposition stalwart Kizza Besigye has dived into the running city traders' strike protesting what he refers to as a bad taxation regime.

"A Ugandan trader is like a cow that is being milked but no fed, they pay VAT, withholding tax, import duties, occupation tax and copyright tax if it's a hotel industry and may others but the collected funds is not reflected in the needs of the community but pocketed by a few," Besigye said.

"Traders should not call of the strike or honour any call to meet the president without if their gradiences are not addressed "

To Besigye, who was addressing the media at his Katonga office on Monday, the government deliberately over taxes small scale enterprises with the intention to keep the population at a low end.

With political parties already embroiled in political differences, Besigye believes double taxation being committed by the regime is an evil that every patriotic Ugandan including those in NRM should unite and join him to fight against.

"Activist in the NUP, DP, UPC and others should all join us in the struggle to save Ugandan tax payers from the tax burden," Besigye said.

The traders have spent weeks long on strike protesting the taxman's enforcement of the electronic receipt to determine applicable taxes.

Traders found dodging the new receipting system risks paying over Shs6 million in fines.

- Nile Post.

Kenya's Shilling Is Gaining Value, but Don't Expect It to Last - Expert

Shortly after Kenya's 2022 elections, the shilling depreciated rapidly against the US dollar - the country's main currency for international transactions - fuelling a wave of political discontent.

More than a year later, the Central Bank of Kenya, taking its cue from the International Monetary Fund, said that the run on the shilling was a market correction for a currency that had been overvalued by between 20% and 25%.

By early this year, the shilling recovered. Finance scholar Odongo Kodongo answers our questions about Kenya's exchange rate fluctuations.

How is the shilling's exchange rates determined?

Kenya operates a floating exchange rate regime. This means that the value of the shilling is, in principle, determined by market demand and supply. Market demand and supply are affected by movements of money across national borders.

Movements of money into the country are driven by forces such as the value of exports and transfers from abroad (such as diaspora remittances), and the value of investments from abroad. For example, if Kenya exports more goods at higher prices, this increases the shilling's demand as Kenyan exporters convert their dollar receipts to shillings. The shilling appreciates, all else equal.

On the supply side are the value of imports and outbound transfers (like pensions of retired expatriates), and the value of investments abroad. For example, to buy shares abroad, Kenyans must sell shillings to buy foreign currencies. This increases the shilling's supply, causing it to depreciate, all else equal.

The drivers of international money flows are, in turn, affected by economic factors (called fundamentals) such as interest rates, inflation, and income. For example, a fall in interest rates in Kenya may encourage businesses to borrow to finance their investment opportunities, increasing Kenya's economic production.

The rise in economic production generates more goods to be sold in Kenya and abroad. Sales abroad increase the value of exports, which causes the shilling to appreciate. Contrarily, an increase in government borrowing from abroad initially causes a shilling appreciation as Kenya's foreign currency reserves grow. However, it also raises the expectation that Kenya will henceforth pay more to foreign creditors, which may elicit some reversal in the initial appreciation.

Why does the exchange change rate matter?

The exchange rate matters for several reasons.

First, it may drive domestic inflation. For example, if one barrel of oil trades for US$100 and the exchange rate is KES 120/US dollar, we pay KES 12,000 per barrel. Should the shilling depreciate to KES 150/dollar, we would now pay more: KES 15,000 per barrel. Because oil is used in the manufacture of goods and provision of services (such as transport), a higher oil bill makes those goods and services more expensive.

Second, the exchange rate also affects how much we earn from exports. For example, exports worth US$1,000 would fetch us more shillings (KES 150,000) at KES 150/dollar exchange rate rather than only KES 120,000 at KES 120/dollar.

However, economic sectors are not affected the same way by exchange rate changes. Sectors that do not export or import goods and those that do not compete with imported goods are hardly affected by exchange rates.

What role does Kenya's central bank play in the foreign exchange market?

In a market-driven exchange rate system such as Kenya's, the central bank's responsibility is fairly straightforward. It is to ensure exchange rate stability to facilitate planning by businesses and households and to maintain confidence in the currency. It does this by intervening in the market whenever necessitated by exchange rate fluctuations.

For example, on 5 December 2023, the central bank's monetary policy committee intervened by increasing the policy interest rate from 10.5% to 12.5% on the argument that the shilling had depreciated "more than necessary to reestablish equilibrium". An increment in the interest rate is expected to attract foreign investors, creating a demand for the shilling and causing it to appreciate.

However, this action did not alter the market's expectations. The shilling continued falling, and, by 25 February 2024, the shilling had depreciated to 163/US$. This is probably because there were other reasons keeping the shilling weak, such as investors' fears about a possible default on Kenya's maturing eurobond debt.

In mid-January 2024, Kenya sought to refinance its US$2 billion maturing eurobond obligation. On being approached, two multilateral institutions, the International Monetary Fund and Trade and Development Bank, committed close to US$ 1 billion in new loans.

This "success" induced the initial change of tide in the value of the shilling. Later, nudged by Cote d'Ivoire's success, Kenya issued a US$1.5 billion seven-year note in the eurobond market, the success of which triggered a strong rally in the shilling's value: by 10 April 2024, it had strengthened to about 129/US$.

Is the current shilling's appreciation sustainable?

Like many market-driven currencies, the shilling is not floating freely. As explained, the central bank often intervenes in the currency market to achieve objectives such as, to smooth fluctuations (reduce the speed of transition from one rate to another), or to stem further fluctuations.

Related to this is that currency values may change in response to sentiment. For example, when Kenya recently paid off part of its eurobond debt, media reports suggested that the shilling was thereafter unlikely to suffer a strain from a possible sovereign default (which the market had already priced into the shilling's value). The positive sentiment conveyed by such reports likely informed the shilling's initial euphoric appreciation.

However, currency value changes induced by sentiment or intervention are not sustainable. If Kenya wants to keep the shilling's value artificially high, for example, it will soon realise that foreign currency reserves, used for intervention, are not limitless.

An appreciable depletion in reserves causes expectations of a shilling decline, which induces capital flight. Capital flight then increases the shilling's supply causing it to depreciate. Thus, to keep the strong shilling sustainable requires strong economic fundamentals.

Have Kenya's economic fundamentals improved?

The short answer is, "no". Let's examine some factors. First, as explained, the country recently borrowed almost US$2.5 billion abroad to refinance a US$2 billion debt. The result was a net growth of almost US$500 million in external debt. This will further increase the proportion of public revenue committed to debt servicing (called the debt burden).

As of first quarter 2023, debt servicing was gobbling up about 67.5% of Kenya's tax revenues, leaving very little money for development spending: during 2023, development expenditure constituted only 16.5% of revenues (excluding grants). Reduced development spending imperils economic performance, and weakens the shilling in the long run.

Second, Kenya's trade balance (value of exports minus value of imports) has been negative. Of concern is that the negative balance has been growing: from 4.9% of GDP in 1975 to 9.3% in 2022. This situation is not expected to change soon. The growing negative trade balance is consistent with a long run shilling depreciation.

Third, in its February 2024 review, the central bank raised the policy interest rate to 13%. This has pushed up the cost of money, with central bank's discount window (the rate at which central bank lends money to banks experiencing short-term liquidity shortfalls) rising to 16%.

The higher cost of money discourages private sector investments and lowers economic production. Low economic production reduces exports and increases imports, leading to currency depreciation.

Further, the high interest rates have raised yields on assets such as the benchmark 10-year government bond. This has attracted hot money (speculative foreign capital seeking high asset returns) which has partly driven the shilling's appreciation. Gains from short term investments often dissipate quickly when interest rates begin to fall as the recent Treasury bills auction shows. With gains diminishing, the hot money will flee, pulling down the shilling's value with it.

Finally, because of its role in organisation of production and labour productivity, human capital plays a critical role in economic performance. Higher human capital development is associated with higher levels of innovation and risk taking, which help to expand economic activities (economic and export diversification) and to improve production efficiency. Kenya's human capital development index has remained largely weak, growing from 0.52 in 2017 to 0.54 in 2020, which is not good for export diversification and portends long run shilling depreciation.

Odongo Kodongo, Associate professor, Finance, University of the Witwatersrand

Ghana: Assessment of Economic Impact of Akosombo, Kpong Dams Spillage - Affected C'nities Lose Gh¢1.6bn in Agric Livelihoods - FAO's Assessment

An estimated GH¢1.6bn agricultural livelihoods were lost due to the Akosombo/ Kpong dams spillage that affected eight districts in the Greater Accra, Eastern and Volta regions in September and October last year.

This represents an estimated 1.2 per cent in Gross Domestic Product of Ghana, a Consultant at the Food and Agriculture Organisation (FAO) of the United Nations, Stephen Frimpong, disclosed last Friday at an expert review recovery and rehabilitation planning workshop at Sogakope in the Volta Region.

Officials of the FAO, Ministry of Food and Agriculture (MoFA), district directors of the MoFA, officials of NADMO and Ghana Statistical Service participated in the workshop.

It was to appraise the impact of the floods on agriculture and direct agriculture livelihoods in the downstream communities of eight districts- Ada East, Lower Manya, Asuogyaman, North Tongu, Central Tongu, South Tongu, Shai Osu Doku and Anloga following the spillage.

This spillage caused direct damages to crops, livestock, forestry, aquaculture and fisheries of the people in the downstream communities.

In the wake of the spillage that displaced estimated 48,000 people, the FAO in collaboration with the National Disaster Management Organisation (NADMO) and other agencies are ascertaining the flood's direct damages to agriculture livelihoods, and develop response and rehabilitation plan for the affected communities.

Data was collected from 63 per cent (117 out 184) affected communities by NADMO, MoFA and other officials last month for the assessment of the impact of the floods.

The consultant explained that the "FAO Methodology for Damage and Loss in Agriculture Assessment" tool was used in the exercise.

Mr Frimpong said several dam spillage had occurred over the years displacing thousands of people and destroying agriculture livelihood, adding that with climate change, "the floods that occurred in Ghana is not one-time thing, and we will probably get more floods in the country".

The FAO Consultant said because of climate change, floods were intensifying, affecting estimated 96 per cent of the global population, with annual damages to infrastructure and livelihoods estimated at $13.7bn.

The Assistant FAO Representative in Ghana and Head of Programmes, Benjamin Adjei, said the only option was rehabilitation or recovery, adding, "Recovery must be informed by data, knowing what exactly was damaged and how much investment is needed in where and for which people."

"Indeed, in times like this, the victims need us and the best we can do to understand their sufferings better and needs is by listening to them through these assessments, the results of the findings which we are here to review and better contextualised," he said.

"Here, we are looking at direct impact to agricultural livelihoods related to crops, livestock, forestry, fisheries and aquaculture. It is in light of this - working together with all of you - this workshop provides us the platform to brainstorm on the assessment of the impact of the floods on the agricultural livelihoods and what can be done or how best to shape what is being done currently," he added.

"I take this opportunity to thank all districts, your staff, NADMO and Department of Agriculture - for making available your expertise, time and ecological knowledge of the communities affected in support of the data collection in March of this year. Your supports to this exercise tremendously helped to better understand the impact of the floods on agricultural livelihoods."

- Ghanaian Times.

Nigeria: Budget 2024 - Again, OBI Exposes Additional Insensitive, Undeserving Allocations

The Presidential Candidate of the Labour Party (LP) in the 2023 general elections, Peter Obi has again exposed what he described as some undeserving allocations in the 2024 federal budget describing the budget items as disturbing.

Obi who had in his previous interventions called for a total review of the budget on the grounds that there were several misplacements of priorities tailored to further impoverish Nigerians.

The LP standard bearer wondered how the National Assembly Hospital was getting N15b for one year, five times more than that of the National Hospital and six other premier Teaching Hospitals in the country.

Obi made his observations public in a series of tweets on his X handle on Tuesday.

He said, "I will remain persistent in my expressions of deep concern about the 2024 budget because of its critical importance to the lives of the citizens especially the poor in our midst. I will continue to do so until the end of the year as a matter of patriotic engagement.

"This is because the many negatives of the budget have far-reaching implications for the development of our dear nation and the well-being of our citizens.

"It is evident that there are items in the budget that do not align with our current circumstances, and it is imperative to call for a review and appropriate virement.

"Allocating our scarce resources to high-priority areas of need is essential for the well-being of the nation.

"For instance, allocating N15 billion solely for the National Assembly hospital is unacceptable, especially when it exceeds five times the budgetary allocation to the National Hospital or the combined capital vote of our six major teaching hospitals across the nation, namely; University College Hospital, Ibadan; University of Nigeria Teaching Hospital, Enugu; Ahmadu Bello University Teaching Hospital, Zaria; Obafemi Awolowo University Teaching Hospital, Ile-Ife; Jos University Teaching Hospital and University of Ilorin Teaching Hospital. This disparity reflects a low level of care for the rest of society.

"Similarly, justifying a budgetary allocation of N15.3 billion for the National Assembly library project and procurement of books, including the e-Library, in a country without a National Library is very disappointing.

"The National Library has been under construction for the past 20 years, and its budgetary allocation for 2024 is less than 1B Naira, which makes the National Assembly Library budget 15 times more.

"Again the National Assembly Library budget is more than the combined budget of the top national universities' libraries that desperately need the Libraries for research, teaching and learning purposes.

"Furthermore, allocating N10 billion for the Senate's and House of Representatives car parks and the National Assembly Recreation Centre, while allocating less to the Ministry of Science, Technology, and Innovation, is concerning. In an era where science, technology and innovation are crucial for the nation's future, such allocations demonstrate a lack of foresight and basic awareness of global trends and urgent national priorities.

"This level of insensitivity to the present situation and challenges faced by the people should not be tolerated by any development-minded nation.

"Every scarce resource must be directed towards productive sectors of the economy. It is time for our nation to reassess its priorities, revisit the budget, eliminate frivolous expenditures and channel our resources properly for the benefit of the people.

"No great nation is built on a foundation of waste and frivolity."

- Vanguard.

Ghana: We've Not Agreed On Transport Fare Increase - Transport Ministry

The Ministry of Transport says negotiations with the various transport operators in the country for a possible increase in public transport fares have not been concluded and no driver has the right to increase transport fare.

It has, therefore, entreated the Ghana Police Service and other security agencies to be on the lookout for any driver who flouted a directive jointly issued by the Ministry of Transport, Ghana Private Road Transport Union and Ghana Road Transport Coordinating Council for drivers not to increase fares.

A statement issued by the Ministry of Transport on Sunday and copied to the Ghanaian Times, said the ministry and the GPRTU and the GRTCC in an earlier statement directed drivers not to arbitrary increase public transport fares.

Commercial drivers in the country have threatened to increase public transport fares due to rising cost of fuel and spare parts.

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In some parts of the country, some drivers have already started taking new fares when no new public transport fares have been announced.

For instance, lorry fare from Circle to Tema which used to cost GH¢15.00 is now GH¢18.00.

- Ghanaian Times.

Ghana: Govt Has Done Little to Improve Our Condition of Service - Teachers Union

The three teacher unions in the country say they are disappointed about the lacklustre attitude of the government towards the negotiation with teachers for better conditions of service.

A statement issued by the three teacher unions namely Ghana National Association of Teachers, National Association of Graduate Teachers and Coalition of Concerned Teachers Ghana and signed by respective presidents copied to the Ghanaian Times, yesterday, said the government had done little to improve the conditions of service of teachers after they called off their strike.

"All this while, our negotiations have not achieved any meaningful outcome. More disappointing is the fact that the government team does not seem to have the requisite to respond adequately to our demands," the statement said.

It added" in the light of the above situation, we will like to caution the general public and the government that in the event of any brouhaha at the pre-tertiary level, the teacher union leaders must not be blamed."

The three teacher unions recently embarked on a nationwide strike to demand for better conditions of service.

The teacher unions subsequently called off their strike following negotiations with the government.

- Ghanaian Times.

United Airlines says Boeing blowout cost it $200m

United Airlines has blamed Boeing for a $200m (£161m) hit to its earnings in the first three months of this year.

The carrier was forced to ground its Boeing 737 MAX 9 fleet for three weeks after a mid-air cabin blowout on an Alaska Airlines flight in January.

United said that pushed it to a pre-tax loss of $164m for the first quarter.

The airline said it "would have reported a quarterly profit" otherwise.

However, the loss was smaller than Wall Street expected and United's shares rose by more than 5% after the announcement.

United has 79 Boeing 737 MAX 9s in its fleet, more than any of its rivals, and second only to Alaska Airlines.

United and Alaska were forced to cancel thousands of flights as inspections were carried out in January before the US aviation regulator cleared the planes to resume flying.

Earlier this month, Boeing paid $160m to Alaska to make up for losses the airline has suffered.

United told investors that its operations were also impacted by delays to deliveries of Boeing planes.

"We've adjusted our fleet plan to better reflect the reality of what the manufacturers are able to deliver," United's chief executive Scott Kirby said in a statement.

Boeing recently faced new pressure after a whistleblower reported safety concerns over the manufacturing of some of its planes to US regulators.

Engineer Sam Salehpour accused Boeing of taking shortcuts in the construction of its 787 and 777 jets.

He said he was "threatened with termination" after raising concerns with bosses.

But Boeing said the allegations were "inaccurate" and added it was confident its planes were safe.

Mr Salehpour is set to be the key witness at a US Senate hearing on 17 April.

On 5 January, a door plug on an Alaska Airlines 737 Max 9 blew off shortly after take-off, terrifying passengers, and forcing an emergency return to the Portland, Oregon airport.

The latest incident raised fresh questions about the safety of Boeing's aircraft.

The company faced intense scrutiny after two fatal crashes of 737 Max 8 passenger jets in 2018 and 2019, which killed 346 people.-bbc

Adidas on front foot after exiting Kanye West deal

Adidas has emerged from its bruising tie-in with rapper Kanye West and says it expects to make profits of €700m (£598m) in 2024.

In February the German sportswear giant said it planned to sell its remaining Yeezy trainers from its partnership with West for at least cost price.

Tuesday's upbeat comments from Adidas come a month after the company posted its first losses in 30 years.

It makes Samba, Gazelle and Campus shoes.

The company said the revised figures were €200m more than initially predicted and down to a better than expected first quarter of the year.

The company said its quarterly operating profit had reached €336m, up from €60m a year earlier when it was hit by the break-up with West.

Adidas further said it had sold another €150m worth of Yeezy products in the quarter, at a profit of around €50m.

It said the remainder of its Yeezy stock would probably be sold for about €200m later this year, but without any further profit.

Last year it pledged to donate some of the proceeds of the sales to charities who work on combating hate.

Adidas generates millions from Yeezy sales

Adidas cut ties with West in November 2022 over antisemitic comments he made on social media, but the company still has a diverse fan base with rich and powerful clients.

Sunak's 'fulsome' apology

Last week Adidas and its Samba brand were thrust into the headlines after it emerged British Prime Minister Rishi Sunak had been one of its customers for "many, many years".

Conscious that his serious reputation might not be to other Samba wearers' liking, Mr Sunak issued a "fulsome" apology on LBC radio but said he was a "long-time devotee" to the Adidas brand.

But while the global firm has warned its profits will be dented by the Yeezy affair it has also drawn attention to the devaluation of the Argentine peso at the end of 2023.

Adidas has been the maker of shirts for Argentina's national football team for decades.

Rival sportswear firm Puma has also said Argentina's currency devaluation hit its financial results as the region was its biggest and fastest-growing market.

Volkswagen: Can the United Autoworkers Union win in the American south?

Yolanda Peoples has tried for more than a decade to convince her co-workers at Volkswagen's factory in the southern state of Tennessee that joining the United Autoworkers Union (UAW) would pay off in increased job security, higher wages and a more comfortable retirement.

Colleagues in Chattanooga have twice rejected the idea.

Now, as her factory faces another vote on the question, this daughter and granddaughter of UAW members thinks she might finally have made her case.

"The whole atmosphere feels different," she said. "They understand more about what we're fighting for."

The election, which involves roughly 4,300 workers and starts on 17 April, is the first to emerge from a campaign UAW leaders announced last year to try to win new members at 13 foreign-owned car factories based in the south.

The share of workers represented by unions has fallen steadily in the US since the 1980s.

But the pandemic ushered in an unusually hot jobs market and rapid rise in living costs, emboldening workers across the country to make demands.

The number of mass strikes and petitions from workers hoping to join unions jumped in 2022 and 2023, drawing in Hollywood actors, UPS delivery drivers, Starbucks baristas, nurses, casino workers and others.

Getty Images Hospitality workers picket outside Hotel Figueroa in downtown Los Angeles on April 5, 2024.Getty Images

The US has seen increased labour unrest

Since 2021, there has even been a small uptick in the number of union members.

At the top of both political parties, President Joe Biden and former president Donald Trump have paid close attention to the signs of worker discontent, abandoning the free-trade orthodoxy that dominated both US political parties for decades in favour of protectionist economic policies long championed by organised labour.

"More people are demanding better pay, a piece of the action and a lot of this is a post-Covid thing," says Kent Syler, professor of political science at Middle Tennessee State University. "Is it enough in a very red state like Tennessee to move the needle? It's hard to say."

Prior efforts to unionise in Chattanooga and elsewhere in the south have failed in the face of fierce criticism from local politicians, Republicans, who warned a vote for the union could threaten government support for Volkswagen and make the state less appealing for business investment.

The UAW's ties to the Democratic Party remain a liability on the factory floor, especially in an election year.

Jeff Irvin Jr, who has worked at the Chattanooga plant since 2010, says he has supported the union in the past, but is on the fence this time. He says the UAW's recent endorsement of Mr Biden has given him pause.

"It's hard to back an organisation that backs a president that is failing the American people on almost every level," he wrote in an email to the BBC.

The UAW, which has seen its sway fall as its membership and slice of the industry shrank, declared its ambitions last year weeks after a headline-drawing strike won big pay raises and other benefits for members at General Motors, Ford and Stellantis.

Zachary Costello

Union supporter Zachary Costello says attitudes have shifted since he started to work at Volkswagen seven years ago

Those gains helped re-ignite interest, says Jeremy Kimbrell, who has tried, and failed, to drum up union support repeatedly over his two decades working for Mercedes in Alabama. He noted that soon after, many rival carmakers, including Volkswagen, Mercedes and Nissan, announced big wage increases of their own.

"Some of the veteran workers saw it as like a slap in the face - as they could have given it to us all along," Mr Kimbrell said. "With that big jump [the UAW] got this time, it was just abundantly clear that that was a better way."

A victory for the union would set factory workers up to pay UAW dues and negotiate collectively with companies over wages and benefits. Analysts say it could also convince other factories to follow suit.

As well as Chattanooga, the union is expecting an election at a Mercedes-Benz factory in Vance, Alabama next month. It has also claimed significant progress signing up supporters for elections at Hyundai and Toyota.

Campaigners say they are trying to steer clear of national politics and remain hopeful that shifting attitudes towards organised labour will finally give their cause a shot.

"It feels way different," said Volkswagen worker Zachary Costello, one of the union's vocal supporters at the Chattanooga factory. "There's a lot more open acceptance of unionising across the shifts."

American University professor Stephen Silvia, who has written a book about prior UAW campaigns in the south, says the organisation has its "best chance" yet of victory, after refreshing its reputation and approach with new leadership.

Getty Images The UAW endorsed Joe Biden for president in JanuaryGetty Images

The UAW's new boss, Shawn Fain, shakes hands with Joe Biden while endorsing him for president

He says policies introduced by Trump and Biden to protect US car jobs have also strengthened the union's ability to demand more for workers without stoking fears the demands will hurt companies and backfire in the long run.

Volkswagen declined to answer questions about next steps should the UAW win but said in a statement that it "fully" supported a vote and was "proud" of its record in Chattanooga - where the average annual salary is more than $60,000.

At firms such as Starbucks and Amazon, union election victories have been bogged down as companies appeal the outcome or slow-walk contract negotiations.

Volkswagen worker Jose Sandy says there is still "a lot of scepticism" about the UAW and its ability to make a difference.

Getty Images Jose SandyGetty Images

Jose Sandy

The union need "to deliver on what they have have said they're going to do and it's not clear to me yet how they're going to do it," says Mr Sandy, who has been digging into Volkswagen's financial statements, concerned the union's claims about the company are misleading.

Still, he says he is keeping an open mind and leaning toward a yes vote: "I'm willing to give them the benefit of the doubt."

-bbc

Russia to grow faster than all advanced economies says IMF

An influential global body has forecast Russia's economy will grow faster than all of the world's advanced economies, including the US, this year.

The International Monetary Fund (IMF) expects Russia to grow 3.2% this year, significantly more than the UK, France and Germany.

Oil exports have "held steady" and government spending has "remained high" contributing to growth, the IMF said.

Overall, it said the world economy had been "remarkably resilient"

"Despite many gloomy predictions, the world avoided a recession, the banking system proved largely resilient, and major emerging market economies did not suffer sudden stops," the IMF said.

The IMF is an international organisation with 190 member countries. They are used by businesses to help plan where to invest, and by central banks, such as the Bank of England to guide its decisions on interest rates.

The group says that the forecasts it makes for growth the following year in most advanced economies, more often than not, have been within about 1.5 percentage points of what actually happens.

Despite the Kremlin being sanctioned over its invasion of Ukraine, the IMF upgraded its January predictions for the Russian economy this year, and said while growth would be lower in 2025, it would be still be higher than previously expected at 1.8%.

Investments from corporate and state owned enterprises and "robustness in private consumption" within Russia had promoted growth alongside strong exports of oil, according to Petya Koeva Brooks, deputy director at the IMF.

Russia is one of the world's biggest oil exporters and in February, the BBC revealed millions of barrels of fuel made from Russian oil were still being imported to the UK despite sanctions.

Russian oil getting into UK via refinery loophole

Away from Russia, the IMF downgraded its forecasts across Europe and for the UK this year, predicting 0.5% growth this year, making the UK the second weakest performer across the G7 group of advanced economies, behind Germany.

The G7 also includes France, Italy, Japan, Canada and the US.

Growth is set to improve to 1.5% in 2025, putting the UK among the top three best performers in the G7, according to the IMF.

However, the IMF said that interest rates in the UK will remain higher than other advanced nations, close to 4% until 2029.

The group expects the UK to have the highest inflation of any G7 economy in 2023 and 2024.

Chancellor Jeremy Hunt said the IMF's figures showed that the UK economy was turning a corner.

"Inflation in 2024 is predicted to be 1.2% lower than before, and over the next six years we are projected to grow faster than large European economies such as Germany or France - both of which have had significantly larger downgrades to short-term growth than the UK," he said.

Conflict in the Middle East

Economists at the IMF warned that if the Israel-Hamas conflict escalates further in the Middle East it could lead to rising food and energy prices around the world.

Continued attacks on ships in the Red Sea and the ongoing war in Ukraine could also affect the so far "remarkably resilient" global economy, it said.

A potential spike in food, energy and transport costs would see lower-income countries hardest hit, it added.

-bbc

First product of Meghan's lifestyle brand revealed

A first glimpse of the new business venture from the Duchess of Sussex has been teased on social media, with pictures of a jar of strawberry jam.

In a bid to preserve a sense of mystery, the jam from the new American Riviera Orchard brand seemed to be spread among friends and influencers.

Fashion designer Tracy Robbins posted a picture of the jam on Instagram.

It was numbered "17 of 50", suggesting the number of recipients of this first fruit of the new business.

The arrival of Meghan's new California-based lifestyle brand had been signalled on social media last month and this suggests that it will be selling food products.

There seemed to be have been something of a re-launch for Meghan and husband Prince Harry's brands and businesses this year, beginning with the overhaul of their regal-looking website under the sussex.com label.

Their latest projects seem to be moving away from a previous focus on their time as working royals, such as their Netflix film Harry and Meghan and Prince Harry's memoir Spare.

The hint about the strawberry jam from Meghan's American Riviera Orchard brand seems to fit with the couple's latest Netflix plans.

Meghan is going to launch a Netflix show which will "celebrate the joys of cooking and gardening, entertaining, and friendship".

Prince Harry will be involved in another Netflix venture showing the inside track on the world of polo. That's the equestrian sport, not the mints.

Delfina Blaquier, married to Prince Harry's polo-playing friend Nacho Figueras, also posted a picture of the new jam, with hers labelled "10 of 50".

The social media trail for American Riviera Orchard evokes a sense of the couple's home in California - and this soft launch for the jam show pictures of the jars in a sunny basket of lemons.

It's not known how much items from the new lifestyle brand will cost.

Although there are already plenty of other royals getting into jams. Visitors to the gift shops in royal palaces can get a Buckingham Palace Strawberry Preserve for £3.95 or Windsor Castle Fine Cut Seville Orange Marmalade, also for £3.95.

On both sides of the Atlantic they seem to be conserving their finances.-bbc

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