News | - Part 3

The Big Picture: Investing in an uncertain world – Invesco’s Q1 2020 Update

LAGOS (Capital Markets in Africa) – Is this a buying opportunity or the half-way stage in a larger slump? The truth is we don’t know, so we have constructed a range of scenarios that see the S&P 500 anywhere between 1400 and 3000 in 12 months. A probability-weighted approach, adjusted for the recent change in cross-asset correlations, leads to a bar-bell approach in our Model Asset Allocation that favors gold and cash among defensive assets…

What Coronavirus Tests does the World need to Track the Pandemic?

Posted on by The Editorial Team

LAGOS (Capital Markets in Africa) – The imperative to “test, test, test” has become a slogan of the coronavirus pandemic since it was voiced last month by Tedros Adhanom Ghebreyesus, head of the World Health Organization. But the simple goal continues to elude even well-off countries that are struggling to track the spread of the virus among their populations. Germany and South Korea have led the way in rolling out tests on a large scale,…

Private Equity and the Leverage Myth By MIT Sloan School of Management

Posted on by The Editorial Team

LAGOS (Capital Markets in Africa) – Investors have traditionally relied on the mean-variance analysis to determine a portfolio’s optimal asset mix, but they have struggled to incorporate private equity into this framework because they do not know how to estimate its risk. The observed volatility of private equity returns is unrealistically low because the recorded returns of private equity are based on appraised values, which are serially linked to each other. These linked appraisals, therefore,…

African Body Begins Continent-Wide Effort to Combat Virus

Posted on by The Editorial Team

LAGOS (Capital Markets in Africa) — The Africa Centres for Disease Control and Prevention deployed more than 100 experts across the continent and thousands of test kits to 43 countries to fight the spread of the coronavirus. “By next Monday, we will have rolled out 60,000 kits,” Africa CDC Director John Nkengasong told reporters Thursday in the Ethiopian capital, Addis Ababa. The continent reported 16 deaths, in countries including Egypt and Algeria, from 640 cases…

Investec Scraps Asset Management Unit IPO But Spinoff Goes Ahead

Posted on by The Editorial Team

JOHANNESBURG (Capital Markets in Africa) – Investec scrapped a plan to sell a 10% stake of its asset-management unit in an initial public offering as the coronavirus sparked a global selloff in equities. A spinoff and separate listing of Investec’s Ninety One division in London and Johannesburg will go ahead as scheduled on March 16, the South African and U.K. bank said on Thursday. The IPO was expected to raise as much as 226 million…

Labor Wants a Coronavirus Stimulus From S. African Government

Posted on by The Editorial Team

JOHANNESBURG (Capital Markets in Africa) – South Africa’s biggest labor group wants the government to come up with a stimulus plan to prepare for the impact of the coronavirus, potentially stretching the country’s already strained finances. The Congress of South African Trade Unions will call for the plan at a meeting on Monday of the National Economic Development and Labour Council, which includes business and government leaders, said Matthew Parks, Cosatu’s parliamentary coordinator. Cosatu represents…

Ghana Opposition Vows Banking Overhaul Review as Vote Nears

Posted on by The Editorial Team

ACCRA (Capital Markets in Africa) – Ghana’s main opposition pledged to review the central bank’s overhaul of the financial sector if the party wins December’s elections, saying the cleanup was unnecessarily drastic and expensive. Announcing the National Democratic Congress’s main economic policies to reporters in Accra on Thursday, ex-President John Mahama said some of the banks and second-tier lenders that were closed during the cleanup could be resuscitated. This will help depositors access locked-in funds sooner and reduce…

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