The Markets

LAGOS (Capital Markets in Africa) – Emerging markets are about to embark on another year of wealth creation after adding $11 trillion to investor portfolios in the past decade. Developing-nation assets will outperform their developed peers, with Asia having the best prospects, according to Bloomberg’s survey of 57 global investors, strategists and traders on their outlook for next year. Total wealth in emerging-market stocks and bonds now exceeds $25 trillion, bigger than the economies of the U.S. and Germany combined….

LONDON (Capital Markets in Africa) – The pound headed for a fourth month of gains against the euro, reflecting growing confidence in the market that the Conservative Party will be able to secure a majority in the U.K.’s December election. Sterling outperformed all major currencies after a much-anticipated poll released Wednesday evening suggested that Boris Johnson’s party is on track to win its biggest mandate since the 1980s. That is the best scenario for investors betting on the…

LAGOS (Capital Markets in Africa)  – AngloGold Ashanti Ltd. has narrowed the list of bidders for its remaining South African assets to two of the nation’s largest gold miners, according to people familiar with the matter. AngloGold is evaluating offers from Sibanye Gold Ltd. and Harmony Gold Mining Co., said the people, who asked not to be identified because the information is private. The initial interest shown by other companies has waned, and Sibanye and Harmony are the only…

LONDON (Capital Markets in Africa) – Uncertainty, uncertainty and more uncertainty. For investors in U.K. home builders, the word has been a bane for more than three years as the industry contends with the hit to consumer confidence caused by Britain’s prolonged departure from the European Union. Now there is an election coming and investors in the sector are hoping for a Conservative victory to help solidify this year’s rally, which has seen big players…

LONDON (Capital Markets in Africa) – Benchmark Treasury yields have trailed U.S. nominal growth rates for almost a decade — and will continue to do so for at least into the 2040s as the nation’s debt mounts, according to Deutsche Bank AG’s Jim Reid. Fiscal policy will play a bigger role in supporting future growth in the world’s largest economy, entailing more borrowings, and monetary policy would need to keep interest rates capped to help ease…

LONDON (Capital Markets in Africa) – It has never been this calm in the euro-dollar options market and it’s starting to look like a structural shift toward persistent low volatility. There were record lows for one- and three-month volatility in the common currency Wednesday, following similar moves in longer tenors at previous sessions. While the expected calm of Christmas holidays may explain the move over the one-month horizon, the trend runs further out and maybe…