The Markets

LAGOS (Capital Markets in Africa) – Investors looking to escape $15 trillion of negative yielding debt may want to err on the side of caution before buying a dip in emerging-market currencies. In the wake of an escalating trade war and China’s decision to weaken the yuan on Monday, the risk-adjusted carry on five major crosses in the developing world has slumped to the lowest since early January, falling below this year’s average. The gauge is a measure…

LAGOS (Capital Markets in Africa) – Senior People’s Bank of China officials reassured foreign companies that the currency won’t continue to weaken significantly, a day after the yuan fell below 7 per dollar for the first time since 2008. The central bank held a meeting with a number of foreign exporters in Beijing Tuesday, at which officials also said that companies’ ability to buy and sell dollars would remain normal, according to a statement provided to Bloomberg. The yuan…

JOHANNESBURG (Capital Markets in Africa) – The weight of bad news about the economy has proved too much for bank stocks traded in Johannesburg, pushing a sector index to technically oversold levels for the first time in more than two years. While the index was 1.2% higher Tuesday, rising for the first time in six sessions as a stronger rand brought some relief, it has dropped 15% since President Cyril Ramaphosa pledged a relentless focus on growth…

LONDON (Capital Markets in Africa) – The U.K. may become the next developed economy to embrace zero yields, according to an influential money manager. The yield on two-year gilts could “easily” vanish in the coming months as the Bank of England will need to cut borrowing costs more than once to support an economy on the brink of recession, according to Columbia Threadneedle Investments, which oversees the equivalent of $468 billion. The firm, which has…

LONDON (Capital Markets in Africa) – London Stock Exchange Group Plc agreed to snap up Refinitiv in a $27 billion blockbuster deal, betting on a future dominated by data that will extend its reach beyond Europe. Shares in LSE rose as much as 8% after the exchange operator unveiled details of the transaction for the data and trading provider, which Chief Executive Officer David Schwimmer said fulfilled his ambitions to expand the group further into global analytics and the buy-side…

JOHANNESBUR (Capital Markets in Africa) – Nicky Newton-King, the first woman to lead Johannesburg’s 131-year-old stock exchange, will take some time off to cycle in Sweden after stepping down from Africa’s largest bourse following eight years as its chief executive officer. “I think it’s important for CEOs to know when it’s time to step back,” Newton-King, 52, said Tuesday by phone. Leila Fourie, who will take over from Oct. 1, has held positions at companies including…

LONDON (Capital Markets in Africa) – Prime Minister Boris Johnson refused to back down over his threat to take the U.K. out of the European Union without a deal, despite a growing backlash over the impact his strategy is having on the pound. Johnson’s office hinted on Tuesday that another round of Brexit talks might not happen at all, and has warned he won’t meet EU leaders for negotiations unless they agree to tear open the current…