The Markets

LAGOS (Capital Markets in Africa) — Commodity investors may witness a powerful split-screen moment this week as U.S. earnings season throws a spotlight on companies’ pandemic-driven pain just as China announces its mammoth economy has returned to growth. And with a keen watch on both of those conflicting trends, OPEC and its allies may announce plans to start tapering historic output cuts. Among corporates reporting are top banks including Goldman Sachs Group Inc., whose commodities unit…

LAGOS (Capital Markets in Africa) — Saudi Arabia commended Iraq for implementing almost all its pledged oil-production cuts and Nigeria told the kingdom it was committed to hitting its target, in further signs that disputes among OPEC+ members over cheating of quotas are being resolved. Saudi Energy Minister Prince Abdulaziz Bin Salman spoke to his Iraqi counterpart Ihsan Abdul Jabbar, according to a joint statement from their offices on Monday. The prince said he was satisfied with Baghdad’s…

HARARE (Capital Markets in Africa) — Zimbabwe’s ruling party wants Old Mutual Ltd.’s listing on the Zimbabwe Stock Exchange terminated, an official said, clarifying a weekend statement in which it called for the company to be “ejected” from the nation’s financial system. “The statement was about the listing of Old Mutual on the stock exchange,” Tafadzwa Mugwadi, the Zimbabwe African National Union-Patriotic Front’s director of information and publicity, said by phone Monday from the capital,…

LAGOS (Capital Markets in Africa) — Nigeria could only collect about half of its budgeted revenues in the first five months of this year as low oil prices and output took a toll on government income. Total earnings by the government from January to May were 1.48 trillion naira ($3.8 billion), which was 56% of targeted revenue for the period, Finance Minister Zainab Ahmed said during a presentation to lawmakers on Thursday. Earnings from crude…

LAGOS (Capital Markets in Africa) — Emerging-market investors are getting selective even after bonds, stocks, and currencies kicked off the second half of the year on a high note. Money managers are questioning whether the developing world’s economic troubles will be short-lived as massive central-bank stimulus bolsters demand for risky assets. Emerging-market dollar bonds posted their longest weekly winning streak since February in the five days through Friday. Stocks and currencies rallied on Monday. Inflation data in at least 10 developing…

HARARE (Capital Markets in Africa) — When Zimbabwe suspended trading on its stock exchange last week, James Hove was left with no access to the funds he needs to conduct his business. Like many wealthy Zimbabweans, Hove invests in the local stock market. Not for the value, he sees in the companies whose stocks trade on it, but as a hedge against surging consumer prices while annual inflation is running at 786%, the benchmark Zimbabwe…

LAGOS (Capital Markets in Africa) – ICE Brent crude oil front-month prices averaged $42.2 p/b in the first half of 2020, constituting a drop of 32.2% from an average of $62.3 p/b in the second half of 2019. The decline in prices was due to the spread of the coronavirus that led to the enforcement of lockdown measures worldwide, which reduced global demand for oil. Also, prices averaged $33.5 p/b in the second quarter of…