Gerard Lyons as Carney’s Successor Could Mean Different BOE

Gerard Lyons as Carney’s Successor Could Mean Different BOE

LONDON (Capiatla Markets in Africa) – One contender to be Bank of England governor recently tipped by bookmakers could augur a rather different way of thinking at the institution. Pro-Brexit economist Gerard Lyons became the frontrunner this week, according to Betway, in tandem with the appointment as prime minister of his former boss, Boris Johnson. The new premier has just populated his cabinet with allies, and punters may now be betting he could repeat that with the leadership of the…

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BOE Governor Job a Poisoned Chalice, Ex-Policy Maker Weale Says

BOE Governor Job a Poisoned Chalice, Ex-Policy Maker Weale Says

LONDON (Capiatla Markets in Africa) – The job of Bank of England governor could be considered a “poisoned chalice” by some possible candidates and finding a pro-Brexit economist to fill the role could be a challenge, according to former policy maker Martin Weale. “If following the appointment of the Cabinet, the chancellor wants someone who believes that Brexit is going to be wonderful, my guess is that’s going to give him a fairly short shortlist,” Weale,…

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South Africa Has a Sovereign Debt Problem. Its Name Is Eskom

South Africa Has a Sovereign Debt Problem. Its Name Is Eskom

JOHANNESBURG (Capital Markets in Africa) – A financial crisis confronting South Africa’s state power utility has become a national debt problem. Finance Minister Tito Mboweni Tuesday unveiled a second multi-billion dollar bailout for Eskom Holdings SOC Ltd. within five months, aid that may force the cash-strapped government to increase borrowing and taxes. That could in turn trigger a credit-rating downgrade and massive outflow of funds, raise the cost of new debt and stymie efforts to revive the…

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South Africa Inflation Target Could Be Even Lower, Kganyago Says

South Africa Inflation Target Could Be Even Lower, Kganyago Says

JOHANNESBURG (Capital Markets in Africa) – Fresh from being reappointed for another five years, South African Reserve Bank Governor Lesetja Kganyago made it clear that he will keep on pursuing his mandate of low inflation and suggested the current target band may even be too high. This comes after Kganyago and the central bank came under renewed criticism in recent months from labor unions and some senior members of the ruling party who want borrowing…

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Kenyan President Picks Little-Known Minister as Treasury Head

Kenyan President Picks Little-Known Minister as Treasury Head

NAIROBI (Capital Markets in Africa) – Kenyan President Uhuru Kenyatta appointed a little-known minister as acting head of the Treasury a day after finance minister Henry Rotich was charged with corruption. Ukur Yatani Kanacho, a former governor of the northern county of Marsabit, will also retain his role as the labor and protection minister, a position he’s held since February 2018. Kenyatta also appointed Julius Monzi Muia as principal secretary at the Treasury. He previously held a…

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Nigeria at Risk of Losing $15 Billion of Crisis-Era Bad Loans

Nigeria at Risk of Losing $15 Billion of Crisis-Era Bad Loans

LAGOS (Capital Markets in Africa) – Nigeria is facing the risk of never recovering about 5.5 trillion naira ($15 billion) of bad loans taken over during a banking crisis more than a decade ago. That is how much the state-owned Asset Management Corp., or Amcon, still has to collect from Nigerian companies that have failed to repay the debts they once owed lenders, Chief Executive Officer Ahmed Kuru said at a conference in Lagos on Wednesday. Delays in…

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Missing Their Inflation Goals, Central Banks Study Moving Posts

Missing Their Inflation Goals, Central Banks Study Moving Posts

LAGOS (Capital Markets in Africa) – Struggling to hit their targets for inflation, central banks around the world are debating whether they need to alter what they’re aiming for. From the Federal Reserve to the European Central Bank, officials are studying their current strategies and whether they need to be changed to revive inflation as it keeps undershooting the levels deemed to represent price stability. Here’s a rundown of what some central banks are talking about: Federal Reserve…

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