This Tiny U.K. Drugmaker Has Soared More Than 800% in Stock Rout

This Tiny U.K. Drugmaker Has Soared More Than 800% in Stock Rout

LONDON (Capital Markets in Africa) — As the world scrambles to fight the deadly coronavirus, a microcap U.K. pharmaceutical company has seen its stock surge. Shares in Synairgen Plc have soared 845% this year, with gains accelerating in mid-March after the company got approval from U.K. regulators to start trials of its drug, SNG001, in people hospitalized with Covid-19. The company has a market capitalization of just 67 million pounds ($83 million), even after the share-price jump….

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Treasuries Stare Over Negative Rates Abyss After Fed’s Bank Move

Treasuries Stare Over Negative Rates Abyss After Fed’s Bank Move

NEW YORK (Capital Markets in Africa) — Negative yields in the $17 trillion Treasury market is a step closer to reality after the Federal Reserve eased banking capital requirements. The move by the Fed allows banks to take on more leverage so they can absorb a lack of liquidity for Treasuries, following a turbulent few weeks. Two-year yields touched the lowest level since 2013 after the announcement, and are hovering just over 20 basis points…

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Main Street Banks Are About to Show How Much Risk They Face

Main Street Banks Are About to Show How Much Risk They Face

NEW YORK (Capital Markets in Africa) — Executives at regional U.S. banks often say they’re only going to do as well as their clients. That’s now more true than ever. Investors are focused on which firms are exposed to the wrong industries as the coronavirus pandemic roils the economy, and they plan to scour for clues as the lenders report results in coming weeks. Bank stocks have plunged as the duration and severity of the…

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Coronavirus and Oil Price Crash

Coronavirus and Oil Price Crash

LAGOS (Capital Markets in Africa) – Coronavirus (COVID-19) creates fear and uncertainty, hitting the global economy and amplifying the volatility of the financial markets. The oil price reaction to COVID-19 was gradually accommodated until March 09, 2020, when, 49 days after the release of the first coronavirus monitoring report by the World Health Organization (WHO), Saudi Arabia floods the market with oil. As a result, international prices drop with more than 20% in one single…

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Brighter than expected, but cloudy in patches by Nuveen

Brighter than expected, but cloudy in patches by Nuveen

LAGOS (Capital Markets in Africa) – During the Cold War, a group of atomic scientists began publishing the Doomsday Clock, a representation of how far away the world was from man-made destruction. It was originally set at seven minutes to midnight but has since been readjusted to between 17 and two minutes to, without quite ticking on to Armageddon. More than a decade since the global financial crisis, real estate investors are rather like the…

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

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…

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