The Markets

JOHANNESBURG (Capital Markets in Africa) – There’s still a month to go until Moody’s Investors Service reviews South Africa’s sovereign rating, but foreign investors aren’t taking chances. Overseas ownership of South African government debt fell to 37% of the total at the end of August, from as high as 43% in March 2018, according to National Treasury data. That’s the lowest level since February 2017, suggesting some investors aren’t waiting for Moody’s to downgrade the…

LONDON (Capital Markets in Africa) – The frontier between the Republic of Ireland and Northern Ireland remains the essential conundrum of Brexit. British Prime Minister Boris Johnson is determined to leave the European Union by Oct. 31, with or without a negotiated transition deal. But any departure must take into account the historically fraught Irish border, which is set to become the only land crossing between the EU and the U.K. after Brexit. A controversial…

LONDON (Capital Markets in Africa) – It’s hardly controversial to short the pound, but Crispin Odey and his ilk also have their eyes on a low-tax, low-regulation, no-deal Brexit paradise. Philip Hammond is officially “outside the tent,” to use Lyndon Johnson’s phrase. After losing his job as U.K. Chancellor of the Exchequer and then his badge as a Conservative MP by rebelling against Boris Johnson’s hardball Brexit strategy, Hammond has kicked up an almighty stink by accusing Johnson…

LAGOS(Capital Markets in Africa) – Commodity investors get to draw a line this week under what’s been an eventful quarter while assessing fresh signals about how energy, crop, and metals markets will fare into the year-end. In the U.S.-China standoff, traders will be on alert for a set-piece address from President Xi Jinping on Tuesday for hints on whether there’s much chance of a resolution. In energy, the fallout from the strikes against Saudi facilities is in…

JOHANNESBURG (Capital Markets in Africa) – The Public Investment Corp. is poised to take a stake in Liquid Telecom if Africa’s biggest fiber company goes ahead with a planned initial public offering, according to people familiar with the situation. The PIC, which manages the pension funds of South African government workers, agreed to set aside funds to guarantee a $375 million loan to Liquid parent Econet Global Ltd. from Deutsche Bank AG, the three people said. The money manager would…

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….