JPMorgan adds India's debt to its index, protests in Kenya halt tax hikes, US wants to lift sanctions on billionaire for mineral access in Africa. Geopolitical implications of natural resources and US-China competition.
Read more
AI Summary
Highlights
AI Chapters
Episode notes
auto_awesome
Podcast summary created with Snipd AI
Quick takeaways
Inclusion of India's sovereign debt in J.P. Morgan's emerging markets index attracts billions in foreign investment, potentially impacting market stability.
Kenya's president reverses decision on tax hikes amid violent protests, highlighting the need for alternative revenue sources and fiscal discipline.
Deep dives
J.P. Morgan Adds India's Sovereign Debt to Emerging Markets Index
J.P. Morgan is including India's sovereign debt in its emerging markets index, leading to a significant influx of foreign investment. Investors have already purchased $11 billion of Indian bonds, with an additional $30 billion expected in the coming months. However, this sudden influx of capital may pose challenges for India's central bank in managing market volatility.
Kenya's President Reverses Course on Tax Bill Amid Violent Protests
Facing violent protests and unrest due to a controversial tax bill, Kenya's President backtracked on signing the bill, which would have raised taxes on essential goods and services. The bill was met with strong opposition as the country struggles with economic challenges exacerbated by the aftermath of COVID-19. With the bill revoked, Kenya faces the need for austerity measures to offset the revenue loss.
U.S. Considers Lifting Sanctions to Access Critical Minerals in Africa
The U.S. is contemplating lifting sanctions on Dan Gertler, who has mining interests in the Democratic Republic of Congo, to gain access to critical mineral reserves. These minerals, such as copper and cobalt, are essential for clean energy technologies. The move is part of a broader strategy to compete with China's dominance in resource extraction and processing in Africa.
JPMorgan is adding India's sovereign debt to its emerging markets index, and violent protests in Kenya stopped its president from signing a bill that would raise taxes. Plus, the FT’s Harry Dempsey explains why the US wants to lift sanctions on a billionaire to gain access to minerals in Africa.
The FT News Briefing is produced by Fiona Symon, Sonja Hutson, Kasia Broussalian and Marc Filippino. Additional help from Breen Turner, Sam Giovinco, Peter Barber, Michael Lello, David da Silva and Gavin Kallmann. Our engineer is Monica Lopez. Our intern is Prakriti Panwar. Topher Forhecz is the FT’s executive producer. The FT’s global head of audio is Cheryl Brumley. The show’s theme song is by Metaphor Music.