The Markets

LAGOS (Capital Markets in Africa) – After the fanfare of the U.S.-China trade deal, commodities investors pivot this week to focus on policy, priorities, profits, and production. The first two of that quartet come from Davos. This year climate change looms large, an issue of central importance for carbon-based energy, the future of farming, and how funds are changing the way that they invest. Earnings season brings numbers from copper giant Freeport-McMoRan Inc. just as investors take…

JOHANNESBURG (Capital Markets in Africa) – Two months can be a long time in central banking, and if you are the South African Reserve Bank it can mean bringing an interest rate cut forward and a move to signaling even more. The Reserve Bank’s monetary policy committee unexpectedly cut its key rate to 6.25% from 6.5% on Thursday, a move predicted by only three of the 19 economists surveyed by Bloomberg. The Reserve Bank has…

ACCRA (Capital Markets in Africa) – Fiscal deficits are no longer such a worry for emerging-market investors, according to HSBC Holdings Plc. In a world of low-interest rates and quantitative easing, governments aren’t being punished for running bigger budget deficits and pushing up debt, said David Bloom, HSBC’s London-based global head of foreign-exchange strategy. Instead, investors are continuing to snap up emerging-market bonds as they search for higher yields. A case in point is South…

LAGOS (Capital Markets in Africa) – The Nigerian Stock Exchange started lending and borrowing of shares as it seeks to reignite liquidity in Africa’s third-biggest bourse by listings. A combined 20.8 million shares are available, with Guaranty Trust Bank Plc, the nation’s biggest lender, providing 8.4 million, according to a statement on the Lagos-based NSE’s website. Nigeria’s Securities and Exchange Commission last year announced plans for securities lending, short-selling and hedging to attract inflows. Trading volumes on the…

ACCRA (Capital Markets in Africa) – Ghana named five banks including JPMorgan Chase & Co. to market a sale of as much as $3 billion in Eurobonds by the first week of February, according to a person familiar with the matter. The four other main advisers are Bank of America Merrill Lynch, Morgan Stanley, Standard Chartered Plc and Standard Bank Group Ltd., said the person, who asked not to be identified because they’re not authorized…

LAGOS (Capital Markets in Africa) – The quick recovery in emerging-market bonds this month suggests investors aren’t concerned about a further escalation in Middle East tensions. But those worried about a renewal of hostilities should seek out Russian and Thai exposure and avoid securities from Turkey and South Africa, according to a Bloomberg analysis. A study of the relationship between outsized surges in crude prices and moves in 11 emerging market five-year bond spreads over…

LONDON (Capital Markets in Africa): The second-biggest diamond in history will be cut, polished and turned into a collection of Louis Vuitton jewelry. Lucara Diamond Corp., which found the 1,758-carat Sewelo diamond at its Botswana mine last year, said it’s struck a deal with the luxury brand and Antwerp diamond manufacturer HB Company. It’s unclear how valuable the polished diamonds will be though, as Lucara previously said the Sewelo wasn’t a type of diamond that yields top…