The EU plans to invest €150 billion ($171 billion) in the development of Africa, European Commission President Ursula von der Leyen announced at a news conference in Senegal’s capital Dakar on Thursday. The announcement came ahead of the upcoming summit between the EU and the African Union next week.

“At the summit, investments will be at the heart of the discussions because they are the means of our shared ambition. In this area Europe is the most reliable partner for Africa and by far the most important,” von der Leyen said.

The proposal is the first regional plan under the European Union’s €300 billion ($340 billion) Global Gateway investment scheme, which aims to develop public and private infrastructure around the globe between now and 2027. The funding will reportedly come from private sector investments, as well as a number of EU financing bodies and member states. However, no further information on how exactly the money will be raised or spent has been unveiled so far.

READ MORE: Major Latin American nation joins China’s mega-project

The EU scheme is viewed as a response to China’s Belt and Road (BRI) initiative, a global infrastructure program launched back in 2013. Over the past decade, China has invested billions into the construction of roads, railways, and ports worldwide in order to set up new trade links and diplomatic ties. As of December 2021, 145 countries had signed up to China’s initiative, mostly in Asia and sub-Saharan Africa. According to the Refinitiv BRI database, the BRI currently covers 2,631 projects with a combined value of $3.7 trillion.

The EU has criticized Beijing’s plan for allegedly leaving signatory countries with huge debts. Meanwhile, von der Leyen recently called EU’s own global infrastructure plan a “true alternative” to China’s, with a goal to “create strong and sustainable links, not dependencies, between Europe and the world.”

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Article source: https://www.rt.com/business/549026-eu-rival-china-investment-africa/?utm_source=rss&utm_medium=rss&utm_campaign=RSS

The British economy grew by 7.5% in 2021, following a slump of nearly 10% the year before when Covid-19 lockdowns and enduring restrictions disrupted economic activity, the Office for National Statistic (ONS) said on Friday. 

The figure represents the strongest gross domestic product (GDP) growth since 1941, when Britain and its empire was in the midst of a six-year war against Nazi Germany, fascist Italy, and their allies. 

The record growth came in spite of a 0.2% contraction in December as the Omicron variant of Covid-19 triggered tougher restrictions and kept consumers at home in the runup to Christmas. The UK also started 2021 with a prolonged lockdown as Covid case numbers soared in January and record hospitalizations put the NHS under severe pressure. 

At the end of 2021, the economy remained 0.4% smaller than in the fourth-quarter 2019 level as the UK lagged some of its G7 peers. In the US, GDP is already 3.1% above its pre-Covid peak. Italy, Japan, and Germany lag further behind their 2019 levels. 

ONS data also shows that Britain is trading more with the rest of the world than the EU for the first time. Imports from non-EU countries were higher for 12 consecutive months following the introduction of Brexit controls and heightened fuel costs, amid increasing trade volume with hydrocarbon producers.

“With the ongoing coronavirus pandemic and recession, it is difficult to assess the extent to which these trade movements reflect short-term trade disruption or longer-term supply chain adjustments,” the ONS said. 

Rishi Sunak, Chancellor of the Exchequer, reacted positively to the GDP data, praising his government for supporting the UK in its drive to be the fastest-growing G7 nation. 

The positive figure comes amid inflation levels not seen in the UK for decades and a real squeeze on household disposable income. A proposed rise in national insurance contributions is likely to put more pressure on Britons.

Article source: https://www.rt.com/news/549028-uk-economy-growth-gdp-hottest/?utm_source=rss&utm_medium=rss&utm_campaign=RSS

US consumer price inflation rose 0.6% in January and propelled annual inflation up to 7.5%, its highest rate since 1982, the Labor Department reported on Thursday.

The rise in nearly every spending category was driven by increases in food and energy costs, as well as growing costs for cars and rents. The rent index rose 0.4%, while food prices jumped 1% amid lingering supply-chain issues and a tight labor market, led by strong increases in the prices of cereals, bakery products, dairy, fruits, and vegetables. Electricity prices jumped 4.2%.

The inflation indicator overshot the US Federal Reserve’s 2% target, and analysts say is likely to affect the current economic agenda and lead to a large interest rate hike in the months to come.

“This inflation data today came like a punch in the stomach for [Fed chairman] Jay Powell and his colleagues,” Citi Bank chief economist Nathan Sheets told CNBC. He noted that the inflation data may bring about “increasingly aggressive” action by the Fed, including an interest rate hike of “50 basis points for March.”

READ MORE: Americans sink deeper in debt

Other experts say this may not be enough, with James Bullard of the St. Louis Federal Reserve Bank telling Bloomberg News he supports raising interest rates by a full 1% by July 1. Goldman Sachs’ and Bank of America’s bids are even higher, with the banks’ analysts forecasting “seven consecutive 25 basis points rate hikes” in 2022.

Some see other ways to ease the inflation spike.

“If the Fed is going to get an assist on inflation, it’s got to come from improvements in the pandemic, some rebalancing away from the red hot goods sector into services, and we need to see some attenuation of the still intense pressures in supply chains,” Nathan Sheets said.

Experts polled by Reuters also say inflation could slow in the coming months if the Covid-19 pandemic subsides, easing supply bottlenecks and shifting spending from goods to services.

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Article source: https://www.rt.com/business/549018-inflation-rate-us-decades-high/?utm_source=rss&utm_medium=rss&utm_campaign=RSS

Only fully vaccinated Amazon workers will be able to remove their masks at work and take paid leave if they catch Covid-19, the company announced on Thursday.

Amazon employees have been given until March 18 to get vaccinated against the coronavirus with at least two shots if they want to retain coronavirus-related paid leave. From Friday, the vaccinated will also be able to take off their masks in the company’s warehouses.

In a memo to staff, Amazon justified the changes by noting that “there has been a sharp decline in Covid-19 cases across the country over the past weeks,” which, along with high vaccination rates, is a “positive sign we can return to the path to normal operations.”

READ MORE: Amazon sued over tornado-hit warehouse deaths

Amazon has so far required employees to wear masks, practice social distancing, and undergo temperature checks as part of its effort to stop the spread of Covid-19.

Last month, however, Amazon shortened its Covid-19 paid time off policy for both vaccinated and unvaccinated employees to just one week. Prior to the change, employees were given 10 days of paid time off and prior to that, they were given two weeks.

Article source: https://www.rt.com/business/548985-vaxxed-amazon-paid-leave/?utm_source=rss&utm_medium=rss&utm_campaign=RSS

Tesla is recalling almost 580,000 cars in the US because of a sound feature that can obscure audible warnings for pedestrians, the Associated Press reported on Thursday, citing the National Highway Traffic Safety Administration (NHTSA).

Some Tesla vehicles have what the company dubbed a “Boombox” function that allows drivers to play various sounds over an external speaker while the cars are in motion, which violates federal safety standards, as electric cars move quietly and require warning sounds for pedestrians.

“While Boombox and the pedestrian alert sound are mutually exclusive sounds, sounds emitted using Boombox could be construed to obscure or prevent the PWS (pedestrian warning system) from complying” with safety standards, AP quotes the NHTSA as saying.

The government agency says that a software update that would disable the “Boombox” in drive, reverse, or neutral, would cure the problem.

The recall covers certain 2020 through 2022 Tesla Model X, S, and Y vehicles, as well as 2017 through 2022 Model 3s, says AP.

This is the fourth such measure announced in the past two weeks. On Wednesday, Tesla said it was recalling nearly 27,000 vehicles in the US over concerns that the cabin heating systems may not defrost the windshield quickly enough, reducing visibility and increasing the risk of a crash.