South Africa’s Only Female Bank CEO Quits in Abrupt Change

South Africa’s Only Female Bank CEO Quits in Abrupt Change

JOHANNESBURG (Capital Markets in Africa) — South Africa’s only female banking boss, Basani Maluleke, quit unexpectedly as chief executive officer of African Bank Holdings Ltd. after only three years in the job. Maluleke, also the first Black woman to lead a major lender in South Africa, will leave on April 30 “to pursue other career opportunities,” the company said in a statement Monday. Chief Financial Officer Gustav Raubenheimer will take over as acting CEO. South Africa’s financial…

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Global Banks Warn of Market Chaos If Court Abolishes Libor

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…

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

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

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…

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Bank Stocks Are Back in Vogue on Stimulus, Interest-Rate Outlook

Bank Stocks Are Back in Vogue on Stimulus, Interest-Rate Outlook

LAGOS(Capital Markets in Africa) — Big U.S. banks have gone from losers to leaders in the stock market, rebounding from a pandemic-induced pummeling as investors anticipate a surge in federal spending in 2021 and look ahead to this week’s earnings-season kickoff. Whether they maintain that momentum depends on the success of President-elect Joe Biden’s agenda, Federal Reserve monetary policy and how quickly Covid-19 is brought to heel. Investors have been optimistic about economic growth, with…

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Ultra-Low Interest Rates Here to Stay: 2021 Central Bank Guide

Ultra-Low Interest Rates Here to Stay: 2021 Central Bank Guide

LAGOS (Capital Markets in Africa) — Central banks are set to spend 2021 maintaining their ultra-easy monetary policies even with the global economy expected to accelerate away from last year’s coronavirus-inflicted recession. In Bloomberg’s quarterly review of monetary policy that covers 90% of the world economy, no major western central bank is expected to hike interest rates this year. China, India, Russia, and Mexico are among those predicted to cut their benchmarks even further. Only…

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Morocco Holds Rates Again as It Awaits Economic Revival

Morocco Holds Rates Again as It Awaits Economic Revival

CASABLANCA (Capital Markets in Africa) — Morocco held its benchmark interest rate at an all-time low of 1.5%, awaiting signs the economy is recovering from the pandemic. The move by the central bank Tuesday was expected after the North African nation signaled it may dial back a recent borrowing spree, freeing up liquidity in the domestic debt market and blunting the need for an immediate cut. It’s the second consecutive hold after a record easing…

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Yield Jump Risks Sale Spree for Nigerian Firms Lapping Up Funds

Yield Jump Risks Sale Spree for Nigerian Firms Lapping Up Funds

LAGOS (Capital Markets in Africa) — Rising yields in Nigeria may curb companies’ enthusiasm for issuing short-term debt after a year of record sales. An increase in government borrowing costs may hit a funding source that’s allowed companies in Africa’s biggest oil producer to boost working capital and refinance costly loans amid an economic downturn. The yield on naira-denominated 1-year Treasury bills rose to 3.2% last week in anticipation that monetary-policy stimulus has approached its limits. That’s…

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