The Editorial Team |

Global Banks Warn of Market Chaos If Court Abolishes Libor

LAGOS (Capital Markets in Africa) — Some of the world’s biggest banks are urging a U.S. judge not to immediately terminate Libor after a group of borrowers filed suit claiming the benchmark was the work of a “price-fixing cartel.” Defendants in the case, including JPMorgan Chase & Co., Credit Suisse Group AG and Deutsche Bank AG, said in a November filing that an injunction abruptly ending the London interbank offered rate would wreak havoc on…

Kenya Risk Premium Widens After Latest Paris Club Debt Relief

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NAIROBI (Capital Markets in Africa) — Yields on Kenyan Eurobonds rose, widening the risk premium over U.S. Treasuries, after the Paris Club of creditors granted the East African country’s request for a delay in some interest payments, raising concern of potentially larger debt challenges. The Paris Club of creditors agreed to delay $300 million of debt-service payments by Kenya, the nation’s Treasury said. Kenya, however, won’t seek debt suspension from multilateral and commercial creditors, as it wants…

IMF Disburses $488 Million to Angola, Backs Plan to Cut Debt

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LUANDA (Capital Markets in Africa) — The International Monetary Fund approved the disbursement of $488 million to Angola and reiterated its confidence that Africa’s second-biggest oil producer will rein in public debt to sustainable levels. The disbursement approved by the executive board comes four months after the Washington-based lender increased the size of the loan by almost a quarter to $4.5 billion to help Angola weather the fallout of the coronavirus pandemic. The three-year Extended Fund Facility,…

Nigeria’s Record Stock Rally Fails to Lure Foreign Investors

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LAGOS (Capital Markets in Africa) — Nigeria’s equity rally is yet to catch the attention of foreign investors wounded by failed attempts to repatriate gains made on earlier investments. The stock market rose 50% last year driven by pension funds avoiding negative real yields in fixed-income debts after they were locked out of buying high-yielding central bank papers. Offshore investors largely stayed out of the market after the central bank failed to supply enough dollars…

Goldman Strategists Like 4-to-1 Odds on Bank of England Rate Cut

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LAGOS (Capital Markets in Africa) — A Bank of England rate cut next month is starting to look like an attractive outside bet. A third national lock-down in the U.K. is the overwhelmingly positive sentiment on the vaccine rollout and threatening to drag the economy into a double-dip recession. As a result, expectations are rising the BOE will ease policy at its Feb. 4 meeting. The widely held view that support is likely to come…

U.K. Ramps Up Covid Vaccine Rollout With Hospitals Under Strain

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LONDON (Capital Markets in Africa) — The U.K. said its coronavirus vaccine rollout will accelerate with the opening of seven regional centers at sports and conference venues this week, amid warnings hospitals are struggling to cope as cases surge. Health Secretary Matt Hancock said Sunday the U.K. is “on course” to meet its vaccine target with more than 200,000 people receiving doses every day and the total now stands at about 2 million. The government…

JPMorgan Says U.S. Approval of ETF Could Hurt Bitcoin Near Term

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LAGOS (Capital Markets in Africa) — U.S. approval of a Bitcoin exchange-traded fund could weigh on the digital coin’s price in the short term, according to JPMorgan Chase & Co. That’s because competition from such a vehicle could spark outflows from the Grayscale Bitcoin Trust, the world’s largest traded cryptocurrency fund. The ETF would erode the Grayscale trust’s effective monopoly, sparking outflows and a slide in its premium to net asset value — which in turn…

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