The Markets

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…

LONDON (Capital Markets in Afrioca) – A U.S. activist investor wants to push Britain’s biggest theme park owner off the stock market, saying it would be worth more in private hands. Shareholders in Legoland and Alton Towers operator Merlin Entertainments Plc have had a rocky ride since the Danish family that owns the Lego toy brand listed the company in 2013. Terrorist attacks and Brexit have clouded prospects for a business that relies on steady growth in…

LONDON (Capital Markets in Afrioca) – The pound is on a record losing streak and there aren’t many investors ready to stand in the way of further losses. Investec Asset Management, Aberdeen Standard Investments and Pictet Asset Management SA are cutting sterling positions or staying on the sidelines as Britain’s political turmoil reignites uncertainty around the nation’s exit from the European Union. With a senior minister resigning to add pressure on Prime Minister Theresa May to abandon…

LAGOS (Capital Markets in Africa) – Saudi Arabia isn’t seeing as much demand for oil as expected from Iran’s customers, as a lot of crude has been leaving the Persian nation without being accounted for since the U.S. imposed sanctions on Tehran. Nobody knows how much oil Iran is producing or exporting, Saudi Arabian Energy Minister Khalid Al-Falih said after the Joint Ministerial Monitoring Committee of OPEC and its allies met in the western Saudi city of…