Governance

  • Should London care if listings dwindle?

    Should London care if listings dwindle?

    The London listing review, out this week, has been hailed as a vital chance for the City to straighten its slipping crown as Europe’s top financial centre.

  • Muted reaction to Russian sanctions, US withholds local debt option

    Muted reaction to Russian sanctions, US withholds local debt option

    The US this week confirmed it would follow the EU and sanction certain Russian individuals in connection with the poisoning of prominent opposition leader and Kremlin critic Alexei Navalny. The announcements did not move markets, and are a far cry from the worst-case scenario some had feared.

  • Pemex to dump Fitch but agency will keep rating it

    Pemex to dump Fitch but agency will keep rating it

    Fitch Ratings said on Wednesday that it would continue to provide international ratings and research on Mexican government-owned oil giant Pemex even after the issuer said it was dispensing with the agency’s services. Previously, Mexican president Andrés Manual López Obrador had publicly criticised Fitch’s negative rating actions on Pemex, which accounts for nearly 10% of investor holdings of EM corporate bonds.

  • Equity market cheers London listing review

    Equity market cheers London listing review

    Equity capital market participants cheered the publication on Wednesday of former EU commissioner Jonathan Hill's review of London listing rules. The report, written on behalf of the UK Treasury, recommended sweeping changes in order to attract more companies to the London Stock Exchange. On Thursday, Deliveroo, the food delivery company, announced it would be listing in London.

  • Petbra bonds recover but CEO sacking raises Brazil doubts

    Petbra bonds recover but CEO sacking raises Brazil doubts

    Spreads on Petrobras’s bonds recovered most of their lost ground this week after a sharp sell-off followed Brazilian president Jair Bolsonaro sacking the company’s chief executive on Monday. But while strong quarterly results released on Wednesday were a reminder of the state-owned oil and gas giant’s fundamental strength, Bolsonaro’s actions have led to questions around policy decisions in an economy with major fiscal issues.

  • UniCredit to choose new ECM head after Hecker allegation

    UniCredit to choose new ECM head after Hecker allegation

    UniCredit’s global head of equity capital markets and equity syndicate has left the bank after allegations of having done inappropriate side work for Markus Braun, former CEO of the collapsed Germany payments company Wirecard.

  • Limited EU sanctions on Russia to have little impact but NS2 concerns linger

    Limited EU sanctions on Russia to have little impact but NS2 concerns linger

    New sanctions from the EU on Russian figures following the imprisonment of opposition leader Alexei Navalny are set to have little impact on Russia, according to market experts. However, companies withdrawing from the Nord Stream 2 project indicate a growing uneasiness around conducting business with Russian entities.

  • Petrobras CEO saga sends bonds tumbling as fiscal fears mount

    Petrobras CEO saga sends bonds tumbling as fiscal fears mount

    Petrobras bonds slumped on Monday after Brazil's president Jair Bolsonaro nominated retired general and former defence minister Joaquim Silva de Luna to be the state-owned oil and gas giant’s new CEO. One analyst decried “corporate statism” as others saw the decision as a warning about the direction of Brazil’s fiscal policy.

  • UniCredit baffled by Wirecard 'moonlighting' allegation

    UniCredit baffled by Wirecard 'moonlighting' allegation

    A report that Jana Hecker, global head of equity syndicate and equity capital markets at UniCredit, had worked privately for Markus Braun, the imprisoned former CEO of Wirecard, stunned UniCredit employees on Friday afternoon when it appeared in the Financial Times.

  • Hong Kong bookbuilding crackdown: a step too far

    Hong Kong bookbuilding crackdown: a step too far

    The Hong Kong regulator’s plan to overhaul the bookbuilding and allocation process for equity and bond deals has some worthy goals. But it is unnecessary for a market that has proven able to clean its own house.

  • Ratings agencies cautious on Next Gen EU impact

    Ratings agencies cautious on Next Gen EU impact

    European investors have wholeheartedly embraced the EU’s Next Generation EU programme and piled into risky assets in anticipation of a swifter recovery. But rating agencies are less convinced, warning that only the substance and implementation of national recovery plans will determine the trajectory of European growth.

  • HK SFC plans overhaul of ECM, DCM syndicates

    HK SFC plans overhaul of ECM, DCM syndicates

    Hong Kong’s Securities and Futures Commission (SFC) is planning to bring in sweeping changes to rules governing equity and bond deals, requiring syndicate teams to be fixed earlier and fee structures to be disclosed. The moves have divided bankers. Jonathan Breen and Morgan Davis report.

  • Shenzhen stock move step in right direction for China

    Shenzhen stock move step in right direction for China

    Chinese regulators have made a long overdue move to reduce the number of boards at the Shenzhen stock exchange. That points to a greater commitment towards streamlining the country’s sometimes confounding capital markets.

  • HK regulator proposes new rules for share and bond issues

    HK regulator proposes new rules for share and bond issues

    Hong Kong’s Securities and Futures Commission (SFC) is planning to introduce new rules that will require syndicate teams on bond and equity deals to be fixed earlier and brokers to disclose their fee structures, moves that are aimed at improving transparency in the city's capital markets and hold banks more accountable for their transactions.

  • The week in review: Shenzhen merges mainboard with SME board, CSRC strengthens ESG disclosures, MOU sealed for Wealth Management Connect

    The week in review: Shenzhen merges mainboard with SME board, CSRC strengthens ESG disclosures, MOU sealed for Wealth Management Connect

    In this round-up, China’s securities regulator approves the consolidation of the Shenzhen Stock Exchange’s main board and the SME board, listed companies are required to update investors with information related to their environmental, social and corporate governance (ESG) efforts, and Beijing, Hong Kong and Macau further lay the foundation for a cross-border wealth management connect pilot scheme.

  • ‘Fortress Russia’ to withstand sanctions but cracks appear

    ‘Fortress Russia’ to withstand sanctions but cracks appear

    The spectre of imminent US-led sanctions against Russia has reappeared following the controversial imprisonment of opposition leader Alexey Navalny. While some say “Fortress Russia” will survive with or without sanctions, others believe the country’s already isolated capital markets and its access to funding could come under intense strain, writes Mariam Meskin.

  • Should CFOs hope for a GameStop lottery ticket?

    Should CFOs hope for a GameStop lottery ticket?

    The extraordinary price action in GameStop, AMC Entertainment and others' shares last week is surely leading nervous CFOs all over the world to get an at-the-money rights issue signed off, in case they win the attention of Reddit's WallStreetBets crowd and can raise equity at giddy multiples. But this is like hoping for a winning lottery ticket. For firms in the most Covid-addled sectors, a private approach will be their best shot at financing a turnaround.

  • Russia sanction risk increases, though concerns muted

    Russia sanction risk increases, though concerns muted

    Mass arrests following protests in Russia over the last two weeks in defence of opposition leader Alexei Navalny have increased the likelihood of US sanctions on some of the country’s leading figures. However, market experts say that new sanctions would be unlikely to cripple the country’s markets, as they have done in the past.

  • China policy and markets round-up: Xi warns against ‘new cold war’, CSRC, CBIRC set 2021 goals, Allianz gets nod for fully owned insurance AMC

    China policy and markets round-up: Xi warns against ‘new cold war’, CSRC, CBIRC set 2021 goals, Allianz gets nod for fully owned insurance AMC

    In this round-up, Chinese president Xi Jinping warns of international confrontations from a ‘new cold war’, regulators plan deeper capital market reforms and increased oversight of internet finance platforms, and European insurance giant Allianz receives approval for China’s first fully foreign-owned insurance asset management company.

  • Long attacks are here to stay

    Long attacks are here to stay

    Andrea Orcel, the new CEO of UniCredit, may be annoyed to be upstaged by Avalon Penrose, an actor whose hilarious and heart-tugging Twitter video about the GameStop share maelstrom has captured the insanity of stock markets. But these are the frothy markets we live in now.

  • New CFPB leader may have ‘deleterious’ impact on ABS market

    New CFPB leader may have ‘deleterious’ impact on ABS market

    Rohit Chopra has been named the director of the Consumer Financial Protection Bureau, putting an end to three years of deregulation and kicking off an era of aggressive consumer protection. The ABS market is keeping a close eye on Chopra’s key plans, which include restoring the bureau’s ability to start its own investigations and establishing a new credit reporting agency.

  • US banks face impossible questions on China

    US banks face impossible questions on China

    The relationship between the US and China, which has faced immense strain during Donald Trump’s presidency, is unlikely to get too much relief under the Biden administration. The biggest losers will be US banks and their capital markets business in Asia.

  • Chinese IPOs in US still on despite NYSE flip-flops

    Chinese IPOs in US still on despite NYSE flip-flops

    The New York Stock Exchange’s flip-flop on whether to delist three Chinese telecommunications giants caused plenty of confusion in the market this week, but mainland companies are still keen to sell shares in the US. Jonathan Breen reports.

  • China moves ahead with delisting reform

    China moves ahead with delisting reform

    The stock exchanges in Shanghai and Shenzhen have introduced new regulations to forcibly delist companies, fast-tracking the process and giving more clarity about the various scenarios that can push firms to exit the bourses. There are loopholes, however, and the true impact of the regime on China’s equities market will probably be limited, writes Addison Gong.

  • UK should embrace LSE evolution with listing review

    UK should embrace LSE evolution with listing review

    The UK government is in the midst of a review that is seeking to make London a more attractive listing venue for high growth international technology companies. While change is undoubtedly concerning for some who do not want the UK to lose its reputation for high standards, the UK should not ignore a chance for the London Stock Exchange to evolve.

  • Bonus questions loom following calls for caution

    Bonus questions loom following calls for caution

    Investment bankers have piled up heaps of revenue for their firms this year, but their employers may feel the need not to be too generous with bonuses in the first few months of next year.

  • Boss swap: FCA's Hoggett to lead London Stock Exchange

    Boss swap: FCA's Hoggett to lead London Stock Exchange

    Julia Hoggett is moving from the UK's Financial Conduct Authority to become chief executive of London Stock Exchange, a subsidiary of the wider London Stock Exchange Group forming part of its capital markets business. It operates debt and equity securities. Her predecessor at the stock exchange, Nikhil Rathi, moved the other way to become head of the FCA earlier this year.

  • Investor group slams Ancestry voting cap term

    Investor group slams Ancestry voting cap term

    The European Leveraged Finance Association, a trade body of investors, has slammed terms in the $1bn buyout bond for Ancestry.com which cap investor voting rights, hoping to stop the new feature in its tracks and prevent sponsors including it in European transactions.

  • EU contemplates ‘nuclear option’ for recovery fund

    EU contemplates ‘nuclear option’ for recovery fund

    The European Commission is considering a way to proceed with its €750bn coronavirus recovery fund that will exclude Hungary and Poland. The two countries have stood firm in their opposition over the idea that receipt of EU funds will depend on states adhering to the rule of law.

  • Alibaba CEO learns lesson in humility

    Alibaba CEO learns lesson in humility

    Alibaba’s chief executive Daniel Zhang has praised a regulatory crackdown on China’s technology titans. That was an abrupt turn from co-founder Jack Ma’s loose-lips policy to discussing China. Investors will be relieved.

  • Croydon’s insolvency could be just the beginning

    Croydon’s insolvency could be just the beginning

    Giving cheap loans with few restrictions to local authorities via the Public Works Loan Board is not a suitable replacement for central government funding. This must change, or London Borough of Croydon will only be the first council to fall into insolvency.

  • Russians need to move quick to get ahead of sanctions

    Russians need to move quick to get ahead of sanctions

    With the inauguration of US president-elect Joe Biden in January will come increased expectations of further sanctions against Russian figures and corporates. Russian issuers should take advantage of the rally initiated by Biden's election performance and follow their sovereign into bond markets to raise cash while the going is good.

  • Old Lady could lean in for post-Brexit regulatory KISS

    Old Lady could lean in for post-Brexit regulatory KISS

    KISS: the new acronym touted by Sam Woods, chief executive of the Prudential Regulation Authority, in a speech given at Mansion House on Thursday, proposes that regulatory requirements should “keep it strong and simple” after Brexit.

  • Investors on election watch as Peru sells off after impeachment

    Investors on election watch as Peru sells off after impeachment

    Though the bond market reaction to the impeachment of Peru’s popular president was not as severe as it would have been in most Latin American countries, investors said that political volatility would continue to challenge the sovereign’s credit profile and that the situation presented risks for next year’s elections.

  • Unibail rights issue cancelled as activists victorious

    Unibail rights issue cancelled as activists victorious

    Shopping centre group Unibail-Rodamco-Westfield's planned €3.5bn rights issue has been cancelled after a group of activist shareholders convinced investors to reject it ahead of an extraordinary general meeting.

  • Ant’s listing failure should worry HKEX

    Ant’s listing failure should worry HKEX

    Ant Group’s IPO suspension was a big blow to many: the fintech firm itself, the banks that worked on the huge transaction, and the investors that were salivating to get a piece of the stock. It was also a big setback for the Hong Kong Stock Exchange's reputation as an independent and attractive listing destination.

  • Meet the (probable) next US president

    Meet the (probable) next US president

    Many have heard of Frost/Nixon, a great play — and later a film — based on the real interviews David Frost did with US president Richard Nixon after his impeachment and resignation. But here's a 1987 BBC interview by David Frost with Joe Biden, before his first tilt at the presidency.