The Markets

JOHANNESBURG (Capital Markets in Africa) – South Africa’s Public Investment Corp. faces a tough choice: back Sibanye Gold Ltd.’s takeover of Lonmin Plc, and take a hit on its investment, or scupper the deal and risk having to pony up more cash for the platinum miner. When Lonmin shareholder votes are tallied next Tuesday at a meeting in London, the PIC’s 30% stake would be enough to block the acquisition. While the takeover was originally touted as…

HARARE (Capital Markets in Africa) – Zimbabwe’s attempt to close a wide gap between its official and black-market exchange rates appears to be failing. The southern African nation effectively devalued its currency, known as RTGS$, in February when it ended a peg to the U.S. dollar and allowed it to trade on an interbank market. That was to try to end dire shortages of fuel, medicine and other imported goods. It hasn’t worked out as planned: the…

ABIDJAN (Capital Markets in Afrioca) – Ivory Coast is requesting proposals from banks to issue as much as 500 million euros ($557 million) in foreign bonds to refinance more expensive debt, according to people familiar with the matter. The world’s top cocoa grower, which budgeted to raise 1.44 trillion CFA francs ($2.5 billion) of debt in 2019, wants to redeem some of its euro-denominated securities, said the people, who asked not to be identified because they’re…

LONDON (Capital Markets in Africa) – The pound looked set to end a record run of losses against the euro as Theresa May’s resignation as U.K. prime minister led traders to take bets on further political turbulence off the table. Sterling gained for the first time in 15 sessions against the common currency Friday, having been battered this month by the prospect that a hard-line Brexit candidate could replace May. With that risk now factored into…

LAGOS (Capital Markets in Africa) – Oil extended losses after a surprise jump in American crude inventories alleviated concerns over a supply crunch, while fears of a full-blown trade war between the U.S. and China weighed on the outlook for demand. Futures fell as much as 1% in New York after tumbling 2.7% on Wednesday, the biggest drop in almost three weeks. American stockpiles rose by 4.7 million barrels last week to the highest level since mid-2017, despite expectations for…

CAIRO (Capital Markets in Africa) – Foreign investors came to Egypt for what Renaissance Capital said could be the “best reform story” in emerging markets and stayed for this year’s biggest carry-trade return. Just one cut in interest rates by Egypt in over a year, coupled with a dovish shift by global central banks, has powered gains in the pound that are second only to Russia’s ruble among all currencies tracked by Bloomberg in 2019. With the…

NEW YORK (Capital Markets in Afrioca) – Stocks slumped globally on Thursday as the simmering trade dispute between the world’s two largest economies took a greater toll on markets. Safe assets were in demand, with gold and the yen gaining alongside the dollar and Treasuries. S&P 500 futures pointed to a big drop at the New York open after the Communist Party’s flagship newspaper published two commentaries assailing American moves to curb Chinese companies. Tesla sunk to below $185…