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European banks and pharmaceutical companies have exceeded expectations in the first quarter, with financials and healthcare being the only sectors to show earnings growth. Companies such as AstraZeneca, Novartis, GSK, and Novo Nordisk performed well due to higher sales and lower operating costs. These positive results may lead to potential upgrades in guidance. European banks also performed better than expected, with 71% of lenders beating their net interest income consensus. However, challenges lie ahead, including potential rises in loan provisions and a deceleration in net interest income growth. [Extracted from the article]

(Bloomberg) -- Worldline SA shares plummeted a record 59%, erasing €3.8 billion ($4 billion) of market value, after the French payments company cut its sales outlook in the latest warning from Europe's fintech companies. Adyen, Nexi and Worldline have lost more than $33 billion in market value combined in the year to date. [Extracted from the article]

For all the time and effort spent fighting the notion that large banks are contingent liabilities of the sovereign and putting investors on the hook for bank failures instead of taxpayers, no one expects national champion banks to collapse. On October 6, however, bank equity analysts at Barclays asked if EU banks might now be too cheap to ignore: "Trading at circa 0.5 times tangible net asset value, the market appears to be discounting either dilution or profitability remaining at 2020/21 levels indefinitely." Investors fear the increase in banks' cost of risk" Olivier Bélorgey, Crédit Agricole "We do not expect major RWA inflation. [Extracted from the article]

The article discusses the shift of Spanish corporates from merger & acquisitions (M&A) projects to refinancings and loans in 2009 as borrowers retreat from the country. It was noted that the loan market was occupied by refinancings which promoted bond issuance. It is said that the transition to bond market in Europe has been stimulated by the increase in corporate loan pricing against the restriction of the spread in fixed income. Also noted is the reason for the potential slowdown in refinancings in 2010.

Every few years, a plague of European house mice infests one of Australia's grain regions. How much better it would be to have a kinder, gentler form of pest control, one that renders female mice infertile, preventing plagues before they start and leaving native wildlife untouched. And that is just what the Pest Animal Control-Cooperative Research Centre (PAC-CRC) in Canberra hopes it has created. Its agent could be undergoing contained field trials in Australia within two years, and be commercially available within five years. The agent in question is a genetically modified virus designed to replicate and spread. It is a new, man-made disease, one of several being developed. Once released, they will be as hard to control as any other wildlife disease. Like natural diseases, they could be accidentally or deliberately taken to other countries. They could mutate or recombine with other viruses. They could jump species. The consequences could be disastrous.

Banks in Europe have enjoyed seven consecutive quarters of better-than-expected earnings yet at the beginning of 2023, they were still trading at a discount of 0.9x book value, against an expected return on tangible equity of 12%. Although banks emerged from Covid-19 with no serious asset quality blow-ups, a 2020 bank dividend ban in Europe and the UK exacerbated downward pressure on share prices in the short term. [Extracted from the article]

The article reports on the launch of Eurex Clearing AG's European Buono del Tesoro Poliennale (BTP) bond futures and CME Group Inc.'s American Sovereign Yield Spread bonds (Sovy) and yield differentials in the bond trading market. It states that BTP futures were launched as a benchmark for non-AAA graded government debt across the Eurozone offering exposure to the yield curve. It mentions CME's Sovy futures which offer exposure to interest-rate spreads and notes the Sovy yield differentials.

The article discusses the condition of the sovereign bond market in Europe in 2009 and the challenges it is facing in 2010. Citi public sector debt capital markets group head Philip Brown stated that some investors gained returns in 2009 due to the intense volatility of spreads. It is said that sovereign borrowers have recognized the effectiveness of syndication in dealing with liquidity. Also discussed are the opportunity for sovereign issuers in the dollar market and the less interest in the inflation-linked sector among European sovereign borrowers.

The article highlights several international bond issues of various financial institutions in Europe. Spread at re-offer of a Banca delle Marche deal is three month Euro Interbank Offered Rate plus 56 basis point. Size of a demand is difficult to asses in a deal from Rabobank Nederland due to some limitations in the number of investors who can proceed beyond 10 year. 70% of issue from Saint George Bank was bought by banks.

The article assesses the performance of the European corporate bond market in 2005 and the market outlook for 2006. According to Gary Jenkins, head of European credit research and fundamental strategy at Deutsche Bank, credit spreads were tight, and lower yields allowed issuers to bring funding at attractive levels in 2005. The downgrade of the credit ratings of General Motors and Ford had greatly affected the favourable issuance conditions in the first part of the year. Telecom Italia became the first corporate issuer to launch a 50-year deal in March.

The article reports on the sovereign debt market in Europe. It cites the impact of economic growth on the creditworthiness of borrowers. It states that spread against the German benchmark is one of the key measures that European debt managers use to rate their countries' relative performance. It talks about the volatility in sovereign bonds. According to the article, Great Britain has been the focus of much attention on how it will fare regarding the refinancing risk that sovereigns face.

The article presents information on the condition of the fixed-income capital markets in Europe. Increasing numbers of traders, investors and issuers are leveraging off the single currency, using spreads from the single Euribor money market rate as the single pricing reference. High hopes were widely held, prior to the start of Emu, for the growth and integration of the European fixed-income capital markets denominated in the single currency. One reason for this has been the relative lack of high quality issues: euro swap spreads have meant that high quality borrowers, such as the European Investment Bank, have been hampered in their efforts to achieve their sub-Euribor target funding rates.

Europe's high grade corporate issuers are expected to sit on the sidelines of the primary bond market for the coming weeks, as wide spreads and an impending earnings reporting season remove any sense of urgency among issuers to print new debt. [ABSTRACT FROM AUTHOR]

Norway's biggest bank spent oil crisis building capital Norway's biggest bank, DNB ASA, has more capital than it needs and will probably start using the excess funds to buy back its own shares. Paulina Sokolova and Kiri Vijayarajah, analysts at Barclays in London, agree that DNB is likely to struggle less with tougher capital rules than others. [Extracted from the article]

The article reports on the role of the European sovereign crisis in enhancing the appeal of corporate bonds on a relative basis. It reveals the impacts of such crisis on the leveraged finance markets including the extension of spreads on high yield bonds and postponement of some planned new issues. It discusses the effect of concerns about credit risk on existing leveraged buyouts (LBOs) with high leverage multiples.

This article looks at the trends in the bond market in Europe in 2009. It compares the value of bonds issued by the Greek and German governments. It explains the observation that spreads had seemed sustainable enough in times of excess liquidity and general investor optimism and goodwill toward the Economic and Monetary Union (EMU) project. It also notes that sovereign and supranational bonds are themselves seeing a surge in their borrowing programs.

The article presents a study which examines the effect of rating news on credit default swap (CDS) markets and different asset market classes in European countries. The study gathers database comprising of daily European sovereign CDS spreads and stock market indexes in 2007-2010 to determine the impact of credit rating agencies' news and the structural interdependence of financial markets. The result shows that the downgrade of sovereign rating has influenced financial markets.

The article reports that the supranational, sovereign and agency (SSA) market is expected to be resilient of the crisis in Ireland. Concerns regarding the Irish economy and the banking system have caused spreads on credit default swap (CDS) and sovereign bonds in the country to drop. The situation, however, does not affect SSAs, proven by the 15-year bond issue from Italy which attracted orders of a little less than 10 billion euros.

The article reports that European banks and capital markets were influenced by the Basel Committee on Banking Supervision's decision to delay the Basel Accords III capital requirements until 2010. It mentions that bank stock prices soared and credit default swap spreads improved. It cites that the results of the European stress tests on banks were also encouraging. Charts that show the ten top bookrunners and global and European structured finance bonds issued for the first seven months of 2010 are also presented.

The article discusses the stability of the European banking industry. The different ways to monitor risk in the financial system are explored including the rate at which banks are willing to lend to one another through the London Interbank Offered Rate (LIBOR), the widening in the spread between LIBOR and the overnight indexed swap, and the spreads in the credit-default swaps market. The comparison of financial seismology to an earthquake's Richter scale is given.

December Fed rate increase will help spread tighten: Fiorini He forecasts the Fed will increase U.S. interest rates in December, which will push up Treasury yields and help drive those on German bunds toward 0.2 percent by early 2017. To contact the reporter on this story:Anooja Debnath in London at adebnath@bloomberg.netTo contact the editors responsible for this story:David Goodman at dgoodman28@bloomberg.netKeith Jenkins, Paul Armstrong. [Extracted from the article]

The article reports on the European aluminium spread log for the week ended January 1, 2016.

This article focuses on the &Euro;2 billion (bn) bond issued by Nordea Bank on May 5, 2009. The bond will mature by May 12, 2014. Particular focus is given to its price structure and spread. BNP Paribas and Barclays Capital were some of the joint bookrunners in this deal. Also included are information on the issuance's distribution based on investor type and geography.

The article reports on the $4 billion three year global deal issued by the European Investment Bank (EIB) at the tightest spread to swaps ever achieved by a supranational agency and getting over $3 billion of orders in 30 minutes. The deal was priced at mid-swaps less 30 basis points, a level last seen when the Bank of England issued its once-a-year $2 billion three year bond in March 2008. The Bank of England deal was trading at around less 45 basis points when the EIB announced its deal.

The article reports on a bond issue made by Toronto-Dominion Bank on May 7, 2008. The issue, which amounted to €2 billion, received a rating of AAA. Priced at €99.46, the issue will mature on May 14, 2015. Spread at re-offer is at 105 basis points over mid-swaps. The order book which reached around €2.25 billion justified the €2 billion final size for the trade.

The article cites a survey which found that investors in Europe are optimistic about securitization market fundamentals. According to a survey conducted by Citigroup, majority of the investors intend to increase their allocation. The survey added that 75 percent of the investors expect triple-A spreads to move sideways in the fourth-quarter of 2006. One hundred institutional investors were polled with 68 questions on their investments in securitized products.

The article focuses on the condition of covered bonds issued in the European market. With swap spreads widening and heavy supply, investors have had the upper hand in the covered bond market in 2006. Issuers, particularly from Spain, are having to be flexible to get deals away, although a thinner pipeline should ease the pressure.

The article highlights several international corporate bond issues in Europe. Spread at re-offer of an issue from Deutsche Telekom AG is 65 basis point over mid-swaps. It is said that selling an issue from France Télécom SA at 28 basis point over is fair to credit-default swaps levels. Almost 70% of the deal from Telecom Italia SpA was sold into France.

The article provides information on transactions in the European residential mortgage securitisation (RMBS) market. The £3 billion securitisation of residential mortgages of Northern Rock demonstrated the strength of investor demand. Unlike the senior European currency tranches, the U.S. dollar deals received tight pricing. The deal prices reflected the spread environment and the perceived quality of British RMBS.

Discusses the trends in the European commercial paper market in 2005. Status of the spread market in the banking sector; Reduction in the senior unsecured debt rating of Ford by Fitch; Information on the rating given to an asset-backed commercial paper programme of Bayern LB by Fitch.

Reports on the record performance of the European securitization market in 2004. Estimated volume of securitized assets during the period; Tightening spreads across asset classes as a result of continued demand.

Reports on the dominance of sovereign issuers in the European bond market resulting from weakening corporate and financial spreads in October 2004. Amount of orders for the Dutch State Loan; Criticisms on Spain's five year bond; Success of the bond transaction of BNG.

Presents a chart of financial products in Europe. Expected spread of the highly rated asset-backed securities of Hypo Real Estate; Average life the Dutch residential mortgages of SNS Bank; Maturity of the Great Britain commercial mortgages of Real Estate Capital; Basis of the German auto and equipment leases of VR Leasing.

The biggest transformation in the history of Europe's $11.4 trillion corporate bond market has kicked off with dealers and investors asked to adopt changes even stricter than those that prompted upheaval on Wall Street more than a decade ago. That transparency may allow rivals to profit by changing prices when they see large trades coming to the market, said Carl Sells, a London-based senior trader at AllianceBernstein LP, which manages about $445 billion. [Extracted from the article]