The Markets

LONDON (Capital Markets in Africa) – That’s the advice from fund managers and strategists opting to reduce exposure to the U.K. amid a lack of Brexit clarity and escalating trade tensions. BlueBay Asset Management LLP is shorting the pound and gilts, while UBS Wealth Management is avoiding U.K. government debt and long-term pound bullNomura International Plc has ended its buy recommendation on sterling. Prime Minister Theresa May has now set the week of June 3 to bring…

LAGOS (Capital Markets in Africa) – MTN Group Ltd. will list its Nigeria unit in Lagos on Thursday in a move that will value the pan-African wireless carrier’s largest business at 1.8 trillion naira ($5 billion). The move is a step toward a partial sell down of the carrier’s majority 79% stake, and was agreed to as part of the settlement of a $1 billion regulatory fine three years ago. MTN Nigeria is the market leader…

JOHANNESBURG (Capital Markets Africa) – Vodacom Group Ltd. is turning to its East African mobile-phone carrier Safaricom Plc to deliver higher earnings in the coming years. South Africa’s top wireless carrier forecast “mid-high single-digit growth rate” in operating profit for the next three years, alongside the release of full-year financial results on Monday. The carrier updated its outlook to include Nairobi-based Safaricom, in which it purchased a 35% stake from its parent company Vodafone Group Plc…

LONDON (Capital Markets in Africa) – Broadband and pay TV provider Virgin Media is the latest company braving the U.K.’s unloved debt market to raise funds following a lengthy delay to Britain’s departure from the European Union. The company sold 300 million pounds ($390 million) of bonds late on Wednesday as part of a $1.2 billion equivalent deal. On the same day, Co-Operative Group, which provides a range of services from funerals to supermarkets, also sold 300 million…

LAGOS (Capital Markets in Africa) – Emirates Group, owner of the world’s biggest long-haul airline, suffered a 44% decline in annual earnings as higher oil prices, a stronger dollar and lower occupancy levels hit margins at a time when the Dubai-based company faces increasing competition from rivals. Net income shrank to 2.32 billion dirhams ($632 million) in the year through March, the lowest since fiscal 2012, according to a statement Thursday. Staff won’t get a bonus after…

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…