Economy

Tunisia Targets Doubling Phosphate Output as Economy Languishes – Financial Post

Published

3 years ago

January 12, 2022

(Bloomberg) — Tunisia seeks to double phosphate output by 2024 as the economically troubled North African nation sees a boost in revenue from the global surge in food and fertilizer prices.

Reaching the target of 8 million tons in the next two years, up from 3.9 million in 2021, would raise production to levels Tunisia hasn’t experienced since before its Arab Spring uprising more than a decade ago. Sporadic political unrest and labor and management disputes have stymied the extraction that’s been an important source of foreign currency.

“We are offering partnerships on phosphates with neighboring countries,” Mining and Energy Minister Neila Nouira Gongi said in an interview on the sidelines of a mining conference in Riyadh, Saudi Arabia. Talks are also underway with Algeria on fertilizer projects, which “could be in the form of investments or exchanging experience,” she said.

Tunisia, which seeks to produce 5 million tons this year from state-run operations, joins nearby Morocco and Egypt in currently driving the global supply outlook for phosphates, according to Bloomberg Intelligence. A ban on exports from swing supplier China in the first half of 2022 is sending its typical customers elsewhere, potentially benefiting North Africa.

The government in Tunis needs the revenue, with an economy battered by the pandemic and hobbled by a lingering political crisis that’s stalled decision-making. Authorities have said they expect a long-awaited agreement on a rescue package with the International Monetary Fund in the first quarter of 2022.

Fuel ‘Adjustment’

A deal with the Washington-based lender may depend on Tunisia enacting sweeping but controversial economic reforms, including cutting the public wage bill and subsidies. The government, which has pledged to remove some support for fuel prices this year, is now studying the best time to start the plan that will involve a 3% monthly rise in some petroleum products, Gongi said.

“You see oil prices today continue to rise, the oil price was changed in the budget from $40 to $80 a barrel,” the minister said. “So this had to be reflected. There has to be an adjustment in fuel prices, even if it’s just partial.”

Gongi also said:

Authorities in talks with Saudi Arabia on partnerships in oil refining and storageDomestic gas production covers only 30% of Tunisia’s needs, with the rest — 200 million cubic feet — imported from Algeria

Bloomberg.com

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Economy

S&P/TSX composite edges lower in late-morning trading, U.S. stocks higher

Published

1 hour ago

September 23, 2024

Anne Joseph

TORONTO – Canada’s main stock index edged lower in late-morning trading, weighed down by losses in the financial and telecommunications sectors, while U.S. stock markets rose.

The S&P/TSX composite index was down 7.26 points at 23,860.11.

In New York, the Dow Jones industrial average was up 61.00 points at 42,124.36. The S&P 500 index was up 15.70 points at 5,718.25, while the Nasdaq composite was up 27.88 points at 17,976.20.

The Canadian dollar traded for 74.10 cents US compared with 73.72 cents US on Friday.

The November crude oil contract was down eight cents at US$70.92 per barrel and the November natural gas contract was up 12 cents at US$2.84 per mmBTU.

The December gold contract was up US$4.90 at US$2,651.10 an ounce and the December copper contract was up a penny at US$4.35 a pound.

This report by The Canadian Press was first published Sept. 23, 2024.

Companies in this story: (TSX:GSPTSE, TSX:CADUSD)

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Economy

S&P/TSX composite flat Friday, U.S. markets mixed as Dow posts new record

Published

3 days ago

September 20, 2024

Anne Joseph

TORONTO – Canada’s main stock index was essentially unchanged Friday, while U.S. markets were mixed to end the week, with the Dow ekeing out a new record high.

The S&P/TSX composite index closed up 1.28 points at 23,867.55.

In New York, the Dow Jones industrial average was up 38.17 points at 42,063.36. The S&P 500 index was down 11.09 points at 5,702.55, while the Nasdaq composite was down 65.66 points at 17,948.32.

The Canadian dollar traded for 73.72 cents UScompared with 73.73 cents US on Thursday.

The November crude oil contract was down 16 cents at US$71 per barrel and the November natural gas contract was up 12 cents at US$2.72 per mmBTU.

The December gold contract was up US$31.60 at US$2,646.20 an ounceand the December copper contract was down a penny at US$4.34 a pound.

This report by The Canadian Press was first published Sept. 20, 2024.

Companies in this story: (TSX:GSPTSE, TSX:CADUSD)

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Economy

Bank of Canada trying to figure out how AI might affect inflation, Macklem says

Published

3 days ago

September 20, 2024

Anne Joseph

OTTAWA – Bank of Canada governor Tiff Macklem says there is a lot of uncertainty around how artificial intelligence could affect the economy moving forward, including the labour market and price growth.

In a speech in Toronto at the Economics of Artificial Intelligence Conference, the governor said Friday that the central bank is approaching the issue cautiously to get a better understanding of how AI could affect its job of keeping inflation low and stable.

“Be wary of anyone who claims to know where AI will take us. There is too much uncertainty to be confident,” Macklem said in prepared remarks.

“We don’t know how quickly AI will continue to advance. And we don’t know the timing and extent of its economic and social impacts.”

The governor said AI has the potential of increasing labour productivity, which would raise living standards and grow the economy without boosting inflation.

In the short-term, he said investment in AI is adding to demand and could be inflationary.

However, Macklem also highlighted more pessimistic scenarios, where AI could destroy more jobs than it creates or lead to less competition rather than more.

The governor called on academics and businesses to work together to shed more light on the potential effects of AI on the economy.

“When you enter a dark room, you don’t go charging in. You cautiously feel your way around. And you try to find the light switch. That is what we are doing. What we central bankers need is more light,” he said.

This report by The Canadian Press was first published Sept. 20, 2024.

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