The Markets

JOHANNESBURG (Capital Markets in Africa) – The rand traded in a narrow range as South Africa’s election results continued to trickle in, but don’t be fooled: the currency could tip either way as the final balance of power becomes clear. With less than half the votes counted, the ruling African National Congress has a strong lead, though with reduced majority compared with the previous election. The picture could change as results from outlying rural districts —…

JOHANNESBURG (Capital Markets in Africa) – The global retailer at the center of South Africa’s biggest corporate scandal cut the value of its assets by 15.3 billion euros ($17 billion) because of accounting irregularities. The company also warned it won’t be able to keep going longer than 12 months unless its debt is reorganized and it skirts mounting lawsuits and possible regulatory fines. At risk is a business with 120,000 employees across chains including Mattress…

LONDON (Capital Markets in Africa) – While many agree that current monetary policies are not sustainable, few have offered realistic alternatives. Here are three. It has been a decade since the Federal Reserve and other central banks began cutting interest rates to zero — or even below — and injecting unprecedented amounts of cash into the global financial system via quantitative easing. And while global stocks are at or near record highs, central banks around the…

LONDON (Capital Markets in Africa) – Royal Bank of Scotland Group Plc tumbled after the state-backed lender said Britain’s slowing economy is likely to bite into income over the coming months. The bank’s shares fell as much as seven percent after it sounded the strongest warning yet on the impact of Brexit this year. The note of caution overshadowed the bank posting a better-than-expected operating profit before tax of 1.01 billion pounds ($1.3 billion), according to…

LAGOS (Capital Markets in Africa) -The World Bank warned that high demand for African Eurobonds will place countries at a higher risk of debt distress once an increase in U.S. rates prompts investors to turn their backs on emerging-market assets. African sovereigns such as Ghana and Benin joined a slew of high-yielding borrowers this year who took advantage of the dovish turn by the Federal Reserve and some of the world’s most important central banks to sell…

LAGOS (Capital Markets in Africa) – Oil steadied below $64 a barrel in New York as ongoing threats to supply from political crises were offset by disappointing indicators on the global economy. West Texas Intermediate futures gained 12 cents, bringing their gain this week to 0.2 percent. A Purchasing Managers’ Index, which measures private-sector activity in the euro area, unexpectedly slid in April, and German factory numbers came in lower than forecast. Still, an escalating crisis in…

KHARTOUM (Capital Markets in Africa) – Pressure mounted on Sudan’s military rulers to cede power as the African Union echoed protesters’ calls for a swift handover to a civilian government in the wake of long-time leader Omar al-Bashir’s ouster. Demonstrators kept up their carnival-like sit-in outside army headquarters in Khartoum, the capital, for an 11th day, despite an apparent bid to disperse them. The Sudanese Professionals Association, a driving force behind the four months of protests…