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2 hours ago
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'I tell my children not to play so we save money on soap'
Suzanna Kathumba, a domestic worker in Malawi, spends every day thinking of ways she can economise to make her salary of 80,000 kwacha ($46; £34) a month stretch to support her family. As she wrings a wet cloth from a bucket of water in the living room and starts by wiping down the tables and chairs, she considers her latest ploy to save money. "I've told my youngest children not to get too dirty when playing so we can save on soap," the 43-year-old told the BBC. "But it's hard because children are children, they want to play." For the past few months Ms Kathumba, a divorced mother of four working in the capital, Lilongwe, has been struggling to survive on her salary because of the surging prices of goods in the market. With little financial support from her ex-husband, she is the sole earner for the household. Most of her money goes back to her four children, who live in their home town of Kasungu, around 130km (80 miles) north-west of capital. The two youngest children are still in school and two older ones are unemployed. In May, the annual inflation rate in Malawi was 27.7% - one of the highest in Africa - a decline from 29.2% in April. "What is surprising is that salaries are staying the same, but the price of commodities keeps going up on a daily basis," Ms Kathumba said. "The money finishes before it even comes. We're living a very hard life." A recent Ernst & Young report said that Malawi was one of the few countries in the world it considered to have what it called a "hyperinflationary economy" - along with Burundi, Sierra Leone, Sudan, Venezuela and Zimbabwe. This is when there is cumulative inflation over three years of around 100% or more. The accounting firm said that according to the World Economic Outlook database, compiled by the International Monetary Fund (IMF), Malawi had a three-year cumulative rate of inflation of 116% as of December 2024 and it forecast three-year cumulative rates of inflation of 102% for 2025 and 66% for 2026. Data from the World Bank also shows that the country is one of the poorest in the world. It estimates that 70% of the southern African nation's population lives on less than $2.15 a day. The current cost-of-living crisis has left many citizens, like Ms Kathumba, without any savings. "I would be lying if I say that I save some money at the end of the month. I have absolutely nothing left," she said. "I pay 50,000 kwacha [$29] in school fees each term. Then you need to buy exercise books, food, soap - all from the same small salary. Sugar [1kg] is now 4,500 kwacha [$3]." Economists put Malawi's current inflation problems partly down to the shortage of foreign money - known as "forex" - in the banks. Malawi has often struggled with forex as the country imports much more than it exports. "We are not exporting high-value products," Dr Bertha Bangara Chikadza, senior lecturer in macroeconomics at the University of Malawi and the president of the Economics Association of Malawi, told the BBC. "We export products like maize, soya beans and sugar, but import expensive products such as fertilisers, medicine and furniture, so we need a huge amount of forex for this," she said. Businesses wanting to import goods say that when they apply to the banks for forex - in particular US dollars - they are often turned down because there is none available. This forces some to look for US dollars on the black market, where the exchange rate is higher than the official rate of 1,750 kwacha for $1. Traders can pay between 4,000 and 5,000 kwacha for $1 - which has a knock-on effect for consumers. Business owners, like Mohammed Hanif Waka, who owns a stationery shop in the capital, says he has lost many customers since putting up prices. "Sales have drastically dropped. We have had to make redundancies," he told the BBC. While he would usually import items for his shop, like office supplies, pens and notepads, the lack of foreign exchange means he is now trying to access goods locally. "I can't remember when our banks gave us forex," he said. Desperate for change, informal traders took to the streets to protest in February, hundreds blocking the entrance to Malawi's parliament. "We are really affected, we are supposed to get a profit from our businesses," Steve Magombo, the chairman of Lilongwe's Tsoka Flea Market, told the BBC. "But the way things are, we are failing. Malawians are failing to buy our commodities." Earlier this year it was announced that a loan agreement of $175m with the IMF had been suspended temporarily. The four-year loan was approved in November 2023, with $35m disbursed so far. "Under IMF policy, if reviews are not completed over an 18-month period the programme automatically expires, and no reviews have been successfully completed," Justin Tyson, the IMF mission chief for Malawi, told the BBC. Mr Tyson added that "fiscal discipline" had "proven difficult to maintain in the current environment due to elevated spending pressures". However, Malawi's Finance Minister Simplex Chithyola Banda said it was the government's decision to suspend the loan as there was a disagreement over terms. "When you are told you need to build up reserves but at the same time the country is running dry because you don't have fuel - you choose to procure fuel [rather] than to build up reserves," Banda told the BBC's World Business Report last month. "We were told in order to stay in the programme, you need to adjust prices of fuel, but that could have a negative impact on the prices of basic commodities." With Malawi's national elections scheduled for September, the government says it is taking a number of steps to bring prices down. Trade Minister Vitumbiko Mumba has acknowledged that forex has to be rationed but says registered businesses can apply for essentials via the reserve bank or finance ministry. But he also blames traders for inflating prices. "We are setting up an economic sabotage bill and there is also going to be an essential goods and services bill to regulate this," he told the BBC. Meanwhile, the main opposition has laid the blame for inflation at the feet of those in power. Whatever the cause of inflating prices, the cost-of-living is likely to be a huge campaign issue. Malawians hope their daily struggles will be eased by the government's plans - and everyone wants a solution that brings lasting stability to the economy. "We depend on the government for assistance," said Ms Kathumba. "I hope the politicians remember the less privileged Malawians when making their decisions." Additional reporting by Jack McBrams in Lilongwe. 'My bananas were seized and destroyed' - Malawi-Tanzania trade row escalates HIV clinics shut in Malawi after USAID freeze Malawi seeks billions of dollars from US firm over ruby sales Banana wine brings sweet taste of success to Malawi farmers Go to for more news from the African continent. Follow us on Twitter @BBCAfrica, on Facebook at BBC Africa or on Instagram at bbcafrica Focus on Africa This Is Africa
BBC News
2 hours ago
- Business
- BBC News
Malawi inflation: 'I tell my children not to play so we save money on soap'
Suzanna Kathumba, a domestic worker in Malawi, spends every day thinking of ways she can economise to make her salary of 80,000 kwacha ($46; £34) a month stretch to support her she wrings a wet cloth from a bucket of water in the living room and starts by wiping down the tables and chairs, she considers her latest ploy to save money."I've told my youngest children not to get too dirty when playing so we can save on soap," the 43-year-old told the BBC. "But it's hard because children are children, they want to play."For the past few months Ms Kathumba, a divorced mother of four working in the capital, Lilongwe, has been struggling to survive on her salary because of the surging prices of goods in the little financial support from her ex-husband, she is the sole earner for the household. Most of her money goes back to her four children, who live in their home town of Kasungu, around 130km (80 miles) north-west of capital. The two youngest children are still in school and two older ones are May, the annual inflation rate in Malawi was 27.7% - one of the highest in Africa - a decline from 29.2% in April."What is surprising is that salaries are staying the same, but the price of commodities keeps going up on a daily basis," Ms Kathumba said."The money finishes before it even comes. We're living a very hard life." A recent Ernst & Young report said that Malawi was one of the few countries in the world it considered to have what it called a "hyperinflationary economy" - along with Burundi, Sierra Leone, Sudan, Venezuela and Zimbabwe. This is when there is cumulative inflation over three years of around 100% or accounting firm said that according to the World Economic Outlook database, compiled by the International Monetary Fund (IMF), Malawi had a three-year cumulative rate of inflation of 116% as of December 2024 and it forecast three-year cumulative rates of inflation of 102% for 2025 and 66% for from the World Bank also shows that the country is one of the poorest in the world. It estimates that 70% of the southern African nation's population lives on less than $2.15 a current cost-of-living crisis has left many citizens, like Ms Kathumba, without any savings."I would be lying if I say that I save some money at the end of the month. I have absolutely nothing left," she said."I pay 50,000 kwacha [$29] in school fees each term. Then you need to buy exercise books, food, soap - all from the same small salary. Sugar [1kg] is now 4,500 kwacha [$3]." Economists put Malawi's current inflation problems partly down to the shortage of foreign money - known as "forex" - in the has often struggled with forex as the country imports much more than it exports."We are not exporting high-value products," Dr Bertha Bangara Chikadza, senior lecturer in macroeconomics at the University of Malawi and the president of the Economics Association of Malawi, told the BBC."We export products like maize, soya beans and sugar, but import expensive products such as fertilisers, medicine and furniture, so we need a huge amount of forex for this," she wanting to import goods say that when they apply to the banks for forex - in particular US dollars - they are often turned down because there is none forces some to look for US dollars on the black market, where the exchange rate is higher than the official rate of 1,750 kwacha for $ can pay between 4,000 and 5,000 kwacha for $1 - which has a knock-on effect for owners, like Mohammed Hanif Waka, who owns a stationery shop in the capital, says he has lost many customers since putting up prices."Sales have drastically dropped. We have had to make redundancies," he told the he would usually import items for his shop, like office supplies, pens and notepads, the lack of foreign exchange means he is now trying to access goods locally."I can't remember when our banks gave us forex," he for change, informal traders took to the streets to protest in February, hundreds blocking the entrance to Malawi's parliament."We are really affected, we are supposed to get a profit from our businesses," Steve Magombo, the chairman of Lilongwe's Tsoka Flea Market, told the BBC."But the way things are, we are failing. Malawians are failing to buy our commodities."Earlier this year it was announced that a loan agreement of $175m with the IMF had been suspended temporarily. The four-year loan was approved in November 2023, with $35m disbursed so far."Under IMF policy, if reviews are not completed over an 18-month period the programme automatically expires, and no reviews have been successfully completed," Justin Tyson, the IMF mission chief for Malawi, told the Tyson added that "fiscal discipline" had "proven difficult to maintain in the current environment due to elevated spending pressures". However, Malawi's Finance Minister Simplex Chithyola Banda said it was the government's decision to suspend the loan as there was a disagreement over terms."When you are told you need to build up reserves but at the same time the country is running dry because you don't have fuel - you choose to procure fuel [rather] than to build up reserves," Banda told the BBC's World Business Report last month."We were told in order to stay in the programme, you need to adjust prices of fuel, but that could have a negative impact on the prices of basic commodities."With Malawi's national elections scheduled for September, the government says it is taking a number of steps to bring prices Minister Vitumbiko Mumba has acknowledged that forex has to be rationed but says registered businesses can apply for essentials via the reserve bank or finance ministry. But he also blames traders for inflating prices."We are setting up an economic sabotage bill and there is also going to be an essential goods and services bill to regulate this," he told the the main opposition has laid the blame for inflation at the feet of those in the cause of inflating prices, the cost-of-living is likely to be a huge campaign hope their daily struggles will be eased by the government's plans - and everyone wants a solution that brings lasting stability to the economy."We depend on the government for assistance," said Ms Kathumba."I hope the politicians remember the less privileged Malawians when making their decisions."Additional reporting by Jack McBrams in Lilongwe. You may also be interested in: 'My bananas were seized and destroyed' - Malawi-Tanzania trade row escalatesHIV clinics shut in Malawi after USAID freeze Malawi seeks billions of dollars from US firm over ruby salesBanana wine brings sweet taste of success to Malawi farmers Go to for more news from the African us on Twitter @BBCAfrica, on Facebook at BBC Africa or on Instagram at bbcafrica
Yahoo
2 hours ago
- Business
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Surprising jobs data shows economy in flux
Surprising jobs data shows economy in flux originally appeared on TheStreet. It's been one "strong job market report" after another. Investors continue dancing to that beat, as we stare down a record high for the S&P 500. 💵💰💰💵 Mr. Market is brushing off any wobble in weekly unemployment claims as mostly seasonal noise. Peel back the curtain, however, and the continuing claims paint a more mixed story about a fragile economic state. The latest jobless claims update drives that point home and could shake the economy. Over the past few months, weekly jobless claims in the U.S. have fallen in a pattern that gives off mixed signals. In early April, initial claims nudged up to 223,000 in the week ending April 5. This represents a modest rise of 4,000, but economists expected the number to remain flat. Businesses were already feeling the heat due to the threat of new tariffs, and March hiring numbers were underwhelming. Just 228,000 jobs were added, with unemployment ticking up to 4.2%.A few weeks later, in late April, things got shakier. Claims rose by 18,000 to 241,000, the highest they'd been in a couple of months. Sure, spring breaks played a part, but beneath the surface, you had corporate America feeling the squeeze from tariffs. May brought its mix of highs and lows as well. Things picked up strongly, with claims dropping by 13,000 to 228,000. By mid-month, filings hovered around 229,000, but by May 24, claims shot up to 240,000, the biggest weekly spike in over a year. It wasn't just about the seasonal hires this time, though. More on Markets: Housing market update spells more trouble Why Thursday's market bell might echo in history Wall Street veteran analyst who predicted stock market rally resets forecast Layoffs were starting to impact areas like transportation and hospitality, once considered safe from recession talk. And June's data felt more like walking a tightrope. The month kicked off with claims climbing to 248,000, and up until last week, the four-week average crept up to 245,500, the highest it's been in nearly two years. That was all before today's update, adding a new twist to the story. For the week ending June 21, initial jobless claims dropped to 236,000, 10,000 lower than the week before and below the 244,000 forecast. That comes with a catch, though, as last week's numbers were quietly revised to 246,000 — a soft win, at best. Meanwhile, continuing claims surged by 37,000 to 1.974 million, the highest since late clearly indicates that more folks are stuck on benefits significantly longer than expected, clipping away at their disposable incomes. Unadjusted state filings dropped 4% to 227,080, again mostly in line with last year once you factor out seasonal noise. Moreover, with the insured unemployment rate at 1.2%, things continue to look bleak for those already out of work. Nevertheless, it seems the markets are shrugging off those darker themes. S&P 500 futures briefly popped to 6,171 earlier today, topping the prior intraday record of 6,166. Hence, Mr. Market's still buying the corporate resilience story, even as the jobless rolls tell a more cautionary jobs data shows economy in flux first appeared on TheStreet on Jun 26, 2025 This story was originally reported by TheStreet on Jun 26, 2025, where it first appeared. Error while retrieving data Sign in to access your portfolio Error while retrieving data Error while retrieving data Error while retrieving data Error while retrieving data
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2 hours ago
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Paychex shares recoup a bit; CEO comments about economy; analysts weigh in
Paychex shares recoup a bit; CEO comments about economy; analysts weigh in originally appeared on TheStreet. At Paychex () there's no such thing as a free toaster. That may sound confusing, but President and Chief Executive John Gibson brought it all together during the payroll- and human-resources-services provider's fiscal fourth-quarter earnings call. 💵💰Don't miss the move: Subscribe to TheStreet's free daily newsletter 💰 "I've said it multiple times: We're going to continue to be disciplined about growth," he told analysts on June 25. "That client number can be whatever you want it to be if you're willing to spend more than the lifetime value of the customer to acquire the customer.""And we're not going to go crazy with promotions," he added. "We're not going to give away toasters and other gadgets to try to accelerate a number that you're going to add a client that you have to service. We're going to continue to be aggressive in driving client growth, but we're going to continue to also be Paychex." Gibson commented on a tough day for Paychex, which was the worst-performing stock in the S&P 500 after the company missed Wall Street's sales expectations and trimmed its full-year forecasts. The company in April closed the acquisition of human-capital-management-software maker Paycor for $4.1 billion cash. Gibson told analysts that "all of the changes that we wanted to make we made in the fourth quarter." "And we made a strategic decision that given the distractions that were already out there, with Liberation Day and everything else in the marketplace, that now was the time to go ahead and move as quickly as we could to get everything done," he said. April 2 was what President Donald Trump called Liberation Day, his reveal of his tariff policy agenda.."We certainly could have done it at a different pace that would have dragged it potentially into the first quarter of this fiscal year, but we made an election to get all of it out of the way," he explained. Turning to the economy, Gibson said the company was seeing a mix of both optimism and uncertainty within the market and its client base. "Many businesses are frozen as they wait for more clarity about a number of macro issues such as tariffs, inflation and taxes," he said. "The hard data continues to indicate that small businesses remain fundamentally healthy despite the headlines." A Paychex small business report showed stable employment levels with moderation in hourly wage inflation in recent months. "Our data does not currently show any signs of recession," the executive said. "We also see our interactions in the market that the uncertainty is prompting businesses to exercise caution when making decisions and being cautious about how much they are spending on products and services." He noted that Paychex in fiscal Q4 had also seen bankruptcies and financial distress increase in the market and in its client base. "Many businesses, I think, on the edge of failure may have decided not to fight that new headwinds they see in front of them," he said. "We also saw losses due to increases in business combinations and mergers increase more than typical." "We will continue to monitor the hard data and trends in the market and take the appropriate steps to position Paychex to win in any market conditions," he said. After the drop on June 25, Paychex shares were off 1.6% in 2025 and up 17.5% from a year earlier. At last check they were up 1.6% at $140.12. Following the Paychex earnings release, UBS cut its price target on Paychex to $145 from $155 and affirmed a neutral rating on the shares, according the The Fly. A "lackluster" fiscal 2026 should keep Paychex stock range-bound, UBS said. Stifel lowered its price target on Paychex to $152 from $156, while maintaining a hold rating, stating that "confusion" surrounding fiscal 2026 guidance is "more impactful than any fundamental shifts." Last year's fiscal Q4 annual price increase was instituted earlier than historical practice, which distorts the comparisons, Stifel said. The investment firm said that management reported some weakening data points, but Stifel views the installed base as stable and see no signs of pending pared its target on Paychex to $140 from $155 and also affirmed a hold rating. The Q4 results disappointed largely due to slower growth in organic Management Solutions revenue. Management cited multiple reasons including distractions related to integrating Paycor, Jefferies said. However, the investment firm added, while the shares might drop further, the large post-print move and easier setup likely creates a floor against material near-term shares recoup a bit; CEO comments about economy; analysts weigh in first appeared on TheStreet on Jun 26, 2025 This story was originally reported by TheStreet on Jun 26, 2025, where it first appeared. 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
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4 hours ago
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Why Winmark Stock Is Slipping Today
The Wall Street Journal reports 18- to 24-year-old shoppers are feeling strained, and spending less. Winmark's Plato's Closet used clothing outlets depend on this demographic for sales growth. Winmark's profits declined last year, and may post only single-digit growth in 2025 and 2026. 10 stocks we like better than Winmark › Winmark (NASDAQ: WINA), the innovative retailer of used toys and clothing best known for its Once Upon a Child and Plato's Closet stores, is seeing some stock selling this morning as its shares tumbled 2% through 12:45 p.m. ET. And why is this happening? It's never 100% certain, but my hunch is that investors may have been spooked by a recent article in The Wall Street Journal, which reported on weak spending within a key customer demographic that Winmark targets. As the Journal reported Tuesday (online) and Wednesday (in print), "in-store and online purchases for 18- to 24-year-olds fell 13% year-over-year between January and April, according to market research firm Circana." Revived payment obligations on student loans, plus an iffy job market and rising credit card pressures, are blamed for the decline in spending. And the Journal notes all of this is hitting sub-24 shoppers especially hard. That's bad news for Winmark's Plato's Closet brand in particular, which targets tween-to-young-20s shoppers. It's worse news since the Journal says two categories where this demographic is spending much less are apparel (down 11%) and accessories (down 18%). Investors may be especially worried given Winmark's pricey stock, which sells for nearly $380 a share, and costs nearly 33 times trailing earnings, and about 30 times trailing free cash flow. Valuations like these require fast growth to justify, yet Winmark profits actually declined last year, and are expected to grow no more than 6% this year (and only 7% next year), according to data from S&P Global Market Intelligence. Weakening consumer spending won't do anything good for those numbers, I'm afraid. Winmark stock is probably a sell. Before you buy stock in Winmark, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Winmark wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $687,731!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $945,846!* Now, it's worth noting Stock Advisor's total average return is 818% — a market-crushing outperformance compared to 175% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of June 23, 2025 Rich Smith has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Winmark. The Motley Fool has a disclosure policy. Why Winmark Stock Is Slipping Today was originally published by The Motley Fool Sign in to access your portfolio
