The Markets

JOHANNESBURG (Capital Markets in Africa) — Credit-rating companies should suspend their assessments for the foreseeable future because downgrades can force asset managers to sell sovereign debt and unnecessarily increase the cost of capital when economies are already facing headwinds due to the coronavirus pandemic, according to the head of South Africa’s tax agency. Some of Africa’s biggest economies, from Ghana through Angola, Nigeria, and South Africa, have had their debt assessments downgraded or the outlook…

LAGOS  (Capital Markets in Africa) — Chinese state banks have poured billions into the continent as part of the controversial belt and road infrastructure scheme. But it is unclear how Beijing will respond to calls for debt relief amid the economic fallout from the Covid-19 pandemic. African states expect a devastating impact on their economies this year from the Covid-19 pandemic and are appealing for relief from repayments on billions of dollars in outstanding debt…

NAIROBI (Capital Markets in Africa) — Kenya is exploring debt-relief options with lenders and considering a proposal by an industry body to freeze interest payments on pension assets, as the state seeks more money to deal with the coronavirus pandemic. Talks are underway with creditors who may opt to delay payments due this year, Treasury Principal Secretary Julius Muia said by phone on Friday. He declined to identify the lenders but specified that the talks…

CAIRO (Capital Markets in Africa) — Business conditions in the Arab world’s three largest economies deteriorated further last month amid shutdowns from the coronavirus and a plunge in commodity prices. Non-oil private sector activity collapsed at an unprecedented pace in Egypt and suffered another record setback in the United Arab Emirates, according to Purchasing Managers’ Index surveys compiled by IHS Markit. Business conditions in Saudi Arabia also remained below the threshold of 50 that separates…

NEW YORK (Capital Markets in Africa) — The Food and Drug Administration is moving at “lightning speed” to review data on Gilead Sciences Inc.’s experimental Covid-19 treatment remdesivir, Commissioner Stephen Hahn said, after encouraging results emerged from a key U.S. trial. “We’re working with the company to emphasize the necessity of speed while at the same time to understand the data,” Hahn said in an interview. “There will be a lot of factors that go…

NEW YORK (Capital Markets in Africa) — U.S. and European stocks slumped amid dire economic warnings, more dismal data and corporate results that showed the coronavirus’s toll on businesses. Oil extended a rebound after an early-week tumble. Banks led the S&P 500 Index lower as the latest U.S. unemployment figures showed a larger-than-expected jump in new benefit claims and European Central Bank President Christine Lagarde said the euro-area economy could shrink 12% this year. The…