The Markets

LAGOS (Capital Markets in Africa) – South Korea’s efforts to combat coronavirus yielded impressive results. The number of coronavirus patients there stands at 8,961 as of March 23.12 But after a dramatic increase was observed through the first week of March, driven by a surge among participants in a large religious gathering in Daegu, the number of daily new patients has dropped to only approximately 100 over the past week. The slower pace of spread…

LAGOS (Capital Markets in Africa) – ICE Brent crude oil front-month prices closed at $19.3 barrel (p/b) on April 21, 2020, their lowest level since 2001. They constituted a decline of 24.4% from a day earlier and a drop of 30% from the previous week due to the contraction in oil demand and to the increase in global supply. The recent fall in Brent prices followed a plunge in the West Texas Intermediate (WTI) oil…

LONDON (Capital Markets in Africa) — The coronavirus has blown Brexit out of the headlines, and for pound traders that may be a silver lining. Sterling will strengthen to 80 pence per euro — a level not reached since the 2016 vote to leave the European Union — and possibly beyond, according to Standard Bank. The pandemic means that the deadline for a trade deal this year could either be pushed back, delaying a risk…

LAGOS (Capital Markets in Africa) – After a slow start, COVID-19 has spread increasingly rapidly throughout Africa, with more than 7,000 confirmed cases and 294 deaths across 45 countries and two territories as of April 7. Unless the continent urgently receives more assistance, the virus will continue to cut a deadly and remorseless path across it, with ever grimmer health and economic consequences. As an essential first step, therefore, we call for immediate debt relief for…

JOHANNESBURG (Capital Markets in Africa) — The rand hasn’t hit rock bottom yet. Even after falling to its weakest level on record against the dollar this week, South Africa’s currency has a better chance of extending the decline in the coming months than rallying to stronger levels predicted by analysts in a Bloomberg survey, options pricing suggests. The rand is on track for a 5.8% drop against the dollar this week, the worst performance among emerging-market currencies….

LAGOS (Capital Markets in Africa) — Nigeria is faced with an economic challenge that is unprecedented in its history and will need radical reforms to overcome it, the presidency said. “What we will need to do is something that is bold, radical and one that our people can understand and buy into,” Vice President Yemi Osinbajo said in an emailed statement. The government will pursue mass housing, increase agricultural production, ensure improved local productivity through…