What African Central Bankers Will Discuss in the Next 10 Days

What African Central Bankers Will Discuss in the Next 10 Days

LAGOS (Capital Markets in Africa) – Central banks in sub-Saharan Africa, already missing out on the global monetary-easing parade, just got one more reason to stay on the sidelines. Monetary authorities in key economies in the region will likely decide to hold interest rates when they meet in the next ten days. The devastating Sept. 14 attack on Saudi Arabia’s oil infrastructure could increase pressure on fuel prices and inflation, adding to worries on global…

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INTO AFRICA September 2018 Edition – Reviewing 2018 African Outlook

INTO AFRICA September 2018 Edition – Reviewing 2018 African Outlook

Welcome to the September 2019 edition of INTO AFRICA, a publication written by the professionals, for professionals, investors, policymakers … Advancing and providing fresh insight into Africa’s emerging markets through renowned thought leadership and peer-to-peer knowledge-sharing. The edition is titled: Reviewing 2019 African Outlook. According to the July 2019 Word Economic Outlook, the growth in sub-Saharan Africa is expected at 3.4 percent in 2019 and 3.6 percent in 2020, 0.1 percentage point lower for both years than…

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Moody’s Says South Africa’s Debt Structure is a Ratings Strength

Moody’s Says South Africa’s Debt Structure is a Ratings Strength

JOHANNESBRUG (Capital Markets in Africa) – South Africa’s longer-maturity debt and the low level of foreign-currency bonds is “more of a strength than a weakness” for the country’s credit rating, according to Moody’s Investors Service. While 37.9% of the government’s rand-denominated debt is held offshore, it poses less risk to the sovereign because investors bear the brunt of foreign-exchange shocks, Lucie Villa, Moody’s vice president and lead sovereign analyst for South Africa, said Tuesday. That, and…

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Positive inflation reading in August supports a cut in rates this month

Positive inflation reading in August supports a cut in rates this month

CARIO (Capital Markets in Africa) – Positive inflation reading in August, below expectations, despite seasonality Annual headline inflation saw a deceleration to 7.5% in August, well below both our estimate of 8.4% and July’s reading of 8.7%, on the back of a monthly rise of 0.7% vs our estimates of a rise of 1.5% and July’s monthly rise of 1.8%. August’s reading marks the lowest inflation reading in six years, which was aided by the…

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S&P Advice to South Africa: Beware What You Say About Eskom Debt

S&P Advice to South Africa: Beware What You Say About Eskom Debt

JOHANNESBURG (Capital Markets in Africa) – Talks around restructuring Eskom Holdings SOC Ltd.’s bonds must be approached carefully to avoid spooking the market, according to S&P Global Ratings. Public Enterprises Minister Pravin Gordhan said on Thursday the government will consult with the power utility’s debt holders on any reorganization and that there isn’t any real concern about haircuts. “Whether you are talking about a haircut or a re-profiling or a restructuring, one has to tread very carefully because…

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United Kingdom Economy: New Ways to Fight the Next Recession

United Kingdom Economy: New Ways to Fight the Next Recession

LONDON (Capital Markets in Africa) – The U.K. economy has been teetering on the edge of the Brexit precipice for several years now. Should it stumble over, the slump that follows could call for a major boost — that’s harder now than it was in 2009. Bloomberg Economics explores ways to extend the runway for monetary policy to land new forms of stimulus, without compromising the Bank of England’s independence. A deep downturn would likely…

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Recession Already Grips Corners of U.S., Menacing Trump 2020 Bid

Recession Already Grips Corners of U.S., Menacing Trump 2020 Bid

NEW YORK (Capital Markets in Africa) – The moment usually comes during Greg Petras’s commute through the rolling hills and cornfields of southern Wisconsin. Somewhere between his home near Madison and the factory he runs on the edge of the small town of Brodhead, the news will turn to the trade wars and Donald Trump will again claim that China is bearing the cost of his tariffs. That’s when Petras loses it. “It’s just an…

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