The Editorial Team |

China Acts to Limit Yuan Plunge, Bringing Some Relief to Markets

LAGOS (Capital Markets in Africa) – China took steps to limit weakness in the yuan, providing some stability to global financial markets in the wake of Monday’s rout, and said it won’t depreciate the currency to be competitive. The People’s Bank of China on Tuesday set the daily currency fixing stronger than analysts expected and announced the planned sale of yuan-denominated bonds in Hong Kong. The moves, which came after the U.S. labeled the country…

Dodging Negative Yields Just Got Costlier on Trade Volatility

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LAGOS (Capital Markets in Africa) – Investors looking to escape $15 trillion of negative yielding debt may want to err on the side of caution before buying a dip in emerging-market currencies. In the wake of an escalating trade war and China’s decision to weaken the yuan on Monday, the risk-adjusted carry on five major crosses in the developing world has slumped to the lowest since early January, falling below this year’s average. The gauge is a measure…

South African Banking Union Plans Largest Strike Since 1920

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JOHANNESBURG (Capital Markets in Africa) – South Africa’s biggest financial union is threatening to disrupt the country’s banking industry by leading its 73,000 members on a strike next month, in what would be its largest industrial action in almost a century. The planned two-day walkout will target lenders that have consulted staff over job cuts in recent months and other institutions that employ members of the Sasbo union, according to General Secretary Joe Kokela. Sasbo wants banks…

China’s Central Bank Tells Foreign Firms Yuan Won’t Keep Falling

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LAGOS (Capital Markets in Africa) – Senior People’s Bank of China officials reassured foreign companies that the currency won’t continue to weaken significantly, a day after the yuan fell below 7 per dollar for the first time since 2008. The central bank held a meeting with a number of foreign exporters in Beijing Tuesday, at which officials also said that companies’ ability to buy and sell dollars would remain normal, according to a statement provided to Bloomberg. The yuan…

Oversold Bank Stocks Bashed for ‘South Africa Inc.’ Proxy Status

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JOHANNESBURG (Capital Markets in Africa) – The weight of bad news about the economy has proved too much for bank stocks traded in Johannesburg, pushing a sector index to technically oversold levels for the first time in more than two years. While the index was 1.2% higher Tuesday, rising for the first time in six sessions as a stronger rand brought some relief, it has dropped 15% since President Cyril Ramaphosa pledged a relentless focus on growth…

Uganda Will Be Able to Get Oil-Pipeline Funding, Stanbic Says

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KAMPALA (Capital Markets in Africa) – Uganda will be able to get the cash it needs to build a planned $3.5 billion oil-export pipeline, with financiers ready to commit funds as soon as a final investment decision is made, according to Stanbic Bank Uganda Ltd. The project has attracted “a lot of interest” and raising capital “is not a problem,” Stanbic Chief Executive Officer Patrick Mweheire said Tuesday in Kampala. The pipeline, which is crucial to plans…

Tunisia’s First Post-Uprising Leader Joins Packed Electoral Race

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TUNIS (Capital Markets in Africa) – Tunisia’s former president, Moncef Marzouki, joined a fast-growing list of candidates seeking the top job in the Arab world’s only true democracy next month. Marzouki, who announced his candidacy to a local radio station Tuesday, is the latest of more than two dozen would-be challengers for the Sept. 15 vote. Rivals reportedly include Defense Minister Abdelkarim Zbidi and a populist media mogul, Nabil Karoui. Tunisia’s moderate Islamist party, Ennahda, is…

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