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Monday, 26 January 2015

European Central Bank (ECB) headquarters

Collision course

IFR 2067 24 January 2015 to 30 January 2015

So this is it. After much hemming and hawing, the European Central Bank has finally joined the quantitative easing ranks by pledging to buy at least €1.14trn of bonds in a bid to jolt the eurozone’s economies back to life and bring a rapid halt to the deflation now blighting some countries.

Top News

ECB

ECB adds €1.1trn bid to markets

IFR 2067 24 January 2015 to 30 January 2015 By ,

The European Central Bank will buy €60bn of debt a month under an expanded asset purchase programme designed to shake the eurozone out of six years of economic stagnation and push banks into selling bond holdings so they can use the cash to lend.

Spanish flag

Investors take QE bet via Spain 10-year

23 January 2015 By

Investors snapped up the Kingdom of Spain’s new 10-year bond last Tuesday in anticipation of the ECB’s announcement of a quantitative easing programme later in the week, a bet that appeared to pay off after a larger-than-expected package pushed the new notes dramatically tighter.

Ireland

Irish precedent gives Greece hope

IFR 2067 24 January 2015 to 30 January 2015 By

Greece’s Syriza might look to learn lessons from how Ireland successfully negotiated with the European Central Bank, should the opposition party form the next Greek government – as predicted – after this Sunday’s election and try to revise the country’s current €240bn bailout programme.

Azerbaijan

Storms ahead for EM sovereigns

IFR 2067 24 January 2015 to 30 January 2015 By

Black clouds are forming over emerging markets as analysts warn that a deluge of ratings downgrades is on the horizon, potentially triggering a torrent of forced selling as some investors become shut out of the market.

Tele Columbus

Early start for EMEA IPOs

IFR 2067 24 January 2015 to 30 January 2015 By

German cable group Tele Columbus priced its €474m Frankfurt IPO on January 22 – the earliest a fully-marketed float has priced in a new year in EMEA this century. It is also the first IPO to price globally this year, and there is good reason Europe has – on this rare occasion – come first.

Box

Box opens up

IFR 2067 24 January 2015 to 30 January 2015 By

Cloud content management and storage company Box went to extra lengths last week to ensure its US$175m IPO provided a windfall for investors, securing an eleventh-hour cornerstone commitment from a major existing backer before pricing the deal amid overwhelming demand for the shares.

O2

Li Ka-shing cranks it up with O2 bid

IFR 2067 24 January 2015 to 30 January 2015 By

Asia’s richest man, Li Ka-shing, is on an acquisition and borrowing binge as he sets about expanding his business empire barely a couple of weeks after announcing its reorganisation. His flagship Hutchison Whampoa is raising £6bn (US$9bn) through a loan to finance a proposed bid for Telefonica’s British unit O2.

Legend

Legend tests conglomerate charm

IFR 2067 24 January 2015 to 30 January 2015 By

Legend Holdings is mulling a Hong Kong IPO of US$2bn–$3bn this year at a time when other Chinese conglomerates are looking to spin off their assets to release investment value.

Oil and gas plant

Prices plunge on oil debt

IFR 2067 24 January 2015 to 30 January 2015 By , , Jack Aldane

Leveraged loans of European and US energy companies with exposure to the oil and gas sectors have fallen again by up to 10 points this year in secondary markets as traders and investors try to manage positions.

State Grid Corp of China

State Grid goes big in euros

IFR 2067 24 January 2015 to 30 January 2015 By

Chinese state-owned utility State Grid Corp took €1bn (US$1.13bn) out of the euro bond market last week as bankers in Europe forecast even more to come from foreign issuers looking for currency diversity.

IFR Magazine Top News in Full (subscription required)

People and Markets

James Gorman

Lower costs boost Morgan Stanley

IFR 2067 24 January 2015 to 30 January 2015 By Philip Scipio

Morgan Stanley – the last of the big Wall Street banks to see its funding costs fall meaningfully after the crisis – has said it expects these cheaper rates to start burnishing its bottom line this year, in turn helping it to hit its targeted return on equity of 10%.

Morgan Stanley logo

Morgan Stanley signals end to FIC cuts

IFR 2067 24 January 2015 to 30 January 2015 By Philip Scipio

Morgan Stanley has signalled that more than three years of deep cuts to its fixed income and commodities trading business may finally be nearing an end, with bosses indicating that they might be willing to redeploy dollars in the business as positions roll off.

Eraj Shirvani

Shirvani to replace Corson at Credit Suisse

IFR 2067 24 January 2015 to 30 January 2015 By Helen Bartholomew

Credit Suisse has overhauled the management of its emerging markets and credit products businesses, appointing Eraj Shirvani as global head of the EM group, taking over from Chris Corson who will take on a new role developing opportunities in fixed income, according to a source at the bank.

Andrew Tyrie

​Senior bankers face extra UK vetting

IFR 2067 24 January 2015 to 30 January 2015 By

Senior bankers could face extra checks to remain working in the UK after Andrew Tyrie, chairman of the Treasury Select Committee, warned regulators to be wary of simply allowing them to transfer their current regulatory certificates into a planned new senior managers’ regime.

Commerzbank logo

Commerzbank to cut 110, move London jobs

IFR 2067 24 January 2015 to 30 January 2015 By Thomas Atkins

Commerzbank plans to cut or relocate around 440 London jobs in investment banking and back office technology to Frankfurt and other cities to reduce costs, according to a memo seen by Reuters.

More from P&M

Bonds

The JP Morgan Chase & Co headquarters in New York

Funding levels fire up transatlantic bank issuance

IFR 2067 24 January 2015 to 30 January 2015 By Alice Gledhill

Lured by attractive financing rates in Europe, US banks are crossing the pond to help raise the funds they need to meet future regulatory requirements.

Southwestern Energy logo

Southwestern breaks E&P ice

IFR 2067 24 January 2015 to 30 January 2015 By

Investors poured almost US$10bn of orders into a US$2.2bn three-part deal from Southwestern Energy last week, proving that for certain energy names willing to go the extra mile when it comes to offering value to investors, there is no shortage of interest.

Europe readies for US wave

IFR 2067 24 January 2015 to 30 January 2015 By

The European corporate market could take on a distinct US flavour over the coming months, with a healthy pipeline of debut and regular issuers already building, syndicate officials say.

ANZ Dim Sum does the trick

IFR 2067 24 January 2015 to 30 January 2015 By , ,

Australian banking major ANZ revived the sleepy Dim Sum market with a Rmb2.5bn (US$403m) Tier 2 bond offering last week, becoming the first foreign issuer to sell a Basel III-compliant capital instrument denominated in renminbi.

Noodle bonds reveal recovering risk appetite

IFR 2067 24 January 2015 to 30 January 2015 By Robert Smith

The sudden collapse of Phones 4U in September last year had a chilling effect on the European high-yield market, but runaway demand for a bond issue from noodle restaurant Wagamama shows that buyers are now returning to riskier credits.

More Bonds from IFR

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Capital CityCapital City logo    

From the practice of placing a bell around the neck of a castrated ram to lead the flock

Easy riders

23 January 2015

EUROPEAN BANK CHIEFS got an easy ride at a question and answers session at the WEF meeting in Davos last week.

IFR

IFR Awards dinner collects £1.1m for Save the Children

Firms contributed more than £1.1m for Save the Children in the annual charity auction at the IFR Awards dinner in London on Wednesday.

James Saft - June 2014

ECB QE, small but imperfectly formed

James Saft on some notable flaws with the ECB’s bond-buying programme.

The IFR Awards 2014

IFR Global 2014 Cover - Awards Page
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How optimistic are CEOs in Davos?Video

As the World Economic Forum takes place in Davos, the latest survey of CEOs shows fewer are confident about economic growth than last year, Katie Gregory reports.

All Spotlight

Investing in Midcaps Equities Roundtable 2014 cover image

IFR Investing in Small and Midcap Equities Roundtable 2014

IFR’s ‘Investing in Midcap Equities’ Webinar, held in London on October 30, tackled a lot of issues at play in an interesting but often challenging segment of the equity market.

IFR German Corporate Funding Roundtable 2014 Cover image

IFR German Corporate Funding Roundtable 2014

Is Germany in a credit bubble, participants were asked at IFR’s 2014 German Corporate Funding Roundtable in September. It was the final question at the end of a thoughtful and insightful discussion. The cascade of answers was enlightening: “no”, “not yet”, “no, but it’s approaching”, “we’re close” and “it’s coming and it won’t be the banks that get hurt this time”.

All Special Reports