Foreigners Who Abandoned Lagos Stocks Have Few Reasons to Return

Foreigners Who Abandoned Lagos Stocks Have Few Reasons to Return

LAGOS (Capital Markets in Africa) – Foreigners have deserted the Lagos stock market and “hostile” domestic policies combined with a gloomy outlook for the Nigerian economy suggest there is little chance they will return soon. The country’s benchmark stock index has slumped 16% this year in local-currency terms, the third-worst performance worldwide among 94 markets tracked by Bloomberg as of Friday. That follows an 18% retreat in 2018. Investors have been frustrated at the slow pace of…

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Trading Desks Ban Holidays and Bolster Liquidity for Brexit

Trading Desks Ban Holidays and Bolster Liquidity for Brexit

LONDON (Capital Markets in Africa) – It’s the biggest event of the year for the City of London, and firms are taking no chances before the Brexit deadline as they scrap holidays, ensure access to ready cash and prepare to execute contingency planning. For financial institutions, the stakes are high: they don’t want to be on the wrong side of a 10% move in sterling or U.K. stocks. State Street Corp. and Mizuho Bank Ltd….

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Bitcoin Bounces Back From September Crash; Coders Tout Ethereum

Bitcoin Bounces Back From September Crash; Coders Tout Ethereum

NEW YORK (Capital Markets in Africa) – Bitcoin gained the most since before last month’s flash crash, while Ethereum rallied even more as developers gathered at the biggest conference for the community behind the second-largest cryptocurrency. The rally is partly the result of an update on the development of next-generation Ethereum network and new financial apps at the Devcon conference in Japan that started yesterday, according to Josh Lim, head of the trading strategy at Galaxy…

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U.S. Weighs Currency Pact With China as Part of Partial Deal

U.S. Weighs Currency Pact With China as Part of Partial Deal

NEW YORK (Capital Markets in Africa) – The White House is looking at rolling out a previously agreed currency pact with China as part of an early harvest deal that could also see a tariff increase next week suspended, according to people familiar with the discussions. The currency accord, which the U.S. said had been agreed to earlier this year before trade talks broke down, would be part of what the White House considers to…

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South Africa Heading for Junk, A-Plus Rating Forecaster Says

South Africa Heading for Junk, A-Plus Rating Forecaster Says

JOHANNESBURG (Capital Markets in Africa) – Renaissance Capital, which has correctly predicted eight out of nine sovereign rating decisions in emerging Europe and the Middle East since May, is calling a downgrade to junk for South Africa next month. That view is at odds with the majority in the Bloomberg survey, but Renaissance Global Chief Economist Charles Robertson says South Africa’s fundamentals have deteriorated significantly since May when Moody’s Investors Service affirmed its Baa3 rating….

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Ivory Coast Seeks 1.5 Billion Euros in Bonds for Buyback

Ivory Coast Seeks 1.5 Billion Euros in Bonds for Buyback

ABIDJAN (Capital Markets in Africa) – Ivory Coast plans to sell as much as 1.5 billion euros ($1.6 billion) in bonds to refinance existing debt. The West African nation is planning to issue two tranches of debt with a weighted average life of 11 to 15 years and 30 years, according to people familiar with the matter, who asked not to be identified because they’re not authorized to speak publicly about it. It plans to…

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U.S. Slowing or Stalling Becomes the Question After Jobs Report

U.S. Slowing or Stalling Becomes the Question After Jobs Report

NEW YORK (Capital Markets in Africa) – Crawling or stalling? That’s the question hanging over the U.S. economy amid fresh evidence the once-hot labor market is losing steam. Nonfarm payrolls expanded by 136,000 in September, according to a Labor Department report Friday that missed the median estimate of economists. That brought the average gain this year to 161,000, compared with 223,000 throughout 2018. On top of that, average hourly earnings rose 2.9% from a year earlier, the weakest…

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