The Markets

NEW YORK (Capital Markets in Africa) – The U.S. government just argued that Treasuries are sufficiently transparent when it comes to prices. So why can’t investors agree on what those prices are? The $16 trillion Treasuries market is the world’s biggest and most liquid bond market. But unlike stocks, it lacks a mechanism for establishing end-of-day prices that everyone can use. That means money managers sometimes value identical securities at different levels. Tradeweb Markets Inc., one of…

CAIRO (Capital Markets in Africa) U.S. President Donald Trump backed his Egyptian counterpart, Abdel-Fattah El-Sisi, as a “highly respected leader” who “brought order,” dismissing small protests that pointed to simmering economic frustrations. “Demonstrations? No, everybody has demonstrations,” Trump said during a meeting with El-Sisi on the sidelines of the United Nations General Assembly on Monday. “Egypt has a great leader, he’s highly respected, he’s brought order. Before he was here, there was very little order, there was chaos….

LONDON (Capital Markets in Africa) – Whether the U.K. leaves the European Union with no deal or clinches a last-minute agreement in the coming weeks, Brexit has already taken a toll on London’s finance industry. Three years and three prime ministers since the vote, fraught negotiations, and political turmoil have sapped confidence in the industry, putting financial firms on the verge of moving thousands of jobs — and possibly 1 trillion pounds ($1.24 trillion) of…

LAGOS (Capital Markets in Africa) – The first Bitcoin futures contracts that settle in the digital currency debuted Monday in thin trading, starting a new chapter in the coin’s tumultuous 10-year history. As of 11 a.m. in New York, 38 of the futures contracts offered on the Intercontinental Exchange Inc.’s Bakkt platform had changed hands. The price of Bitcoin slumped 2.4% to $9,892. The initial federally regulated market to buy and sell Bitcoin could entice conservative investors who have…

JOHANNESBURG (Capital Markets in Africa)  – South Africa is back in the Eurobond market for the first time since May last year, looking to offer securities with returns that compensate investors for mounting fiscal woes. The government is marketing 10- and 30-year dollar securities with yields of between 5% to 5.125% and about 5.875% respectively, according to a person familiar with the transaction who asked not be identified because they are not authorized to speak about it….

HARARE (Capital Markets in Africa) – The gap between Zimbabwe’s black market and official currency rates vanished after the central bank tightened regulations on trade in foreign exchange by bureau de change operators. On Monday, black market rates for the Zimbabwe dollar ranged from 14.7 to 15 to the U.S. dollar, according to Marketwatch.co.zw., a site run by financial analysts. The official rate was at a record low of 14.91, according to the Reserve Bank of…

LAGOS (Capital Markets in Africa) – Emerging-market sovereign borrowers are returning to international debt markets as the stimulus from central banks cuts borrowing costs and investors chase yields again. South Africa’s decision to sell Eurobonds for the first time since May last year follow Kazakhstan, Pakistan and Abu Dhabi announcing new issues. That has revived action in a market that saw a seven-week lull amid a resurgence in U.S. Treasury yields and uncertainty over the…