The Markets

JOHANNESBURG (Capital Markets in Africa) – Pension funds in South Africa have a legal obligation to account for the financial effects of climate change on their investments, according to two groups lobbying money managers to pay closer attention to the issue. Shareholder activists Just Share and environmental law organization ClientEarth have written to more than 50 funds in Africa’s most-industrialized nation about their duty to savers. The local industry oversees about 4.2 trillion rand ($300 billion) in…

LAGOS (Capital Markets in Africa) – York after its longest run of weekly gains in three years, as traders and investors awaited more clarity on the strength of the global economy and demand. West Texas Intermediate futures slid about 1 percent after adding 1.3 percent last week in a sixth straight weekly increase. Global finance ministers and central bankers issued a statement over the weekend that they’re willing to “act promptly” to shore up global…

LAGOS (Capital Markets in Africa) – If the muted reaction to the flurry of potentially market-moving events last week is anything to go by, emerging-market currencies are unlikely to be headed into a period of major price swings. But that’s just fine for the carry trade. A Bloomberg currency index that measures carry-trade returns from eight emerging markets funded by short positions in the dollar gained for a second week in the five days through April 12,…

LONDON (Capital Markets in Africa) – With the EU divorce now months away, there’s plenty of time for the yield-hunters to swoop on U.K. corporate bonds.  Brexit hasn’t gone away – it’s just resting – but the six-month extension agreed with the European Union could turn out to be a capital markets opportunity.  The search for yield is the overriding theme for bond investors this year, and U.K. markets are no exception. From that perspective the window…

LAGOS (Capital Markets in Africa) – Libor isn’t gone yet, but global financial regulators want to make sure everyone understands that the scandal-tarred benchmark may be on its way out and that they are prepared to embrace an alternative rate. The need for transition away from the London interbank office rate will be the focus of a discussion in Washington on Wednesday led by Randal Quarles, the Federal Reserve’s bank supervision chief and head of the Financial…

JOHANNESBURG (Capital Markets in Africa)  – De Beers’ Chief Executive Officer said an improvement in diamond sales demonstrates that the poor demand for smaller stones that has plagued the company and its competitors in recent months is stabilizing. Bruce Cleaver, the CEO of the world’s biggest diamond company, said the poor demand for stones valued at less than $100 a carat has been due to a surfeit of supply, currency weakness in India and the…

LAGOS (Capital Markets in Africa) – The global financial industry must move faster and prepare for the demise of the scandal-tarred interest-rate system that underpins $370 trillion in derivative, bond and loan contracts. The London Interbank Offered Rate, or Libor, is expected to stop being the go-to benchmark by the end of 2021, Eric Litvack, chairman of the International Swaps and Derivatives Association, said on April 11 in Hong Kong. Changes needed to prepare for the deadline are…