Coronavirus

Germany's Federal Constitutional Court ruled on Tuesday that, while it was not illegal for the Bundesbank to participate in the the European Central Bank’s Public Sector Purchase Programme, the country's central bank may not participate in it unless the ECB can provide a thorough impact assessment. The decision rejected an earlier verdict by the Court of Justice of the European Union.

BNP Paribas blamed European authorities’ restrictions on 2019 dividend payments for losing it €184m in its equities business, when it released its first quarter results on Tuesday. However, in debt capital markets and fixed income, currencies and commodities (FICC) it was a more positive picture, as the bank took advantage of a surge in debt origination and electronic trading.

Robert Bosch launched Schuldscheine with tenors varying between two and 20 years on Tuesday. The German car parts supplier is looking to raise at least €500m in a market all but shut since the coronavirus pandemic reached Europe. Participants hope this launch will prompt other borrowers to follow suit.

Pandora, the Danish jewellery manufacturer, has raised Dkr1.8bn ($176m) through an accelerated placing of 8m treasury shares on Tuesday, to give it funds to withstand the damage to its business caused by the coronavirus pandemic. The company had recently repurchased the shares used in the placing through a buy-back scheme.

Indonesian quasi-sovereign construction firm Hutama Karya launched its first dollar bond on Monday, raising $600m from a 10 year deal despite the Covid-19 pandemic challenging the market.

Chinese bond issuers can feel a sense of relief that the country is starting to end its Covid-19-related lockdowns. But although the coronavirus might become less of a problem for these issuers over the rest of the year, an old enemy will again cause problems. US president Donald Trump is once again rattling his sabre.

Argentine government bonds have sold off yet again as neither creditors nor the government appear willing to blink in a stalemate that is likely to lead the sovereign to default on May 22, when the grace period expires on $500m of bond payments.

United Overseas Bank has approved S$4bn ($2.8bn) in loans to mid-sized enterprises in Singapore, taking advantage of a temporary bridging loan programme launched by the country’s government to cushion the impact of the Covid-19 pandemic on companies.

Telecoms giant América Móvil on Monday became the first private sector non-financial company from Latin America to issue a bond since the coronavirus pandemic battered emerging market bond markets in March. But the company’s unique appeal to non-EM buyers means few conclusions can be drawn about appetite for genuine Lat Am companies.

The operator of Santiago de Chile’s metro system, Metro, found ample demand for a new dual tranche issue on Monday as investors continue to show appetite for highly rated government-related issuers even at tight new issue concessions. The borrower's state support means it is a in a strong position to do Latin America's first buy-back of the pandemic.

Mainland-based Peijia Medical is set to be the third healthcare company to list in Hong Kong since the coronavirus outbreak in late January, opening books on Tuesday for a HK$2.34bn ($302m) IPO.

Prospects are rising of a return to normal merger and acquisition activity, despite the continued grip of the Covid-19 pandemic. Telefónica, the Spanish telecoms group, has confirmed it is in talks about combining its UK mobile business O2 with Virgin Media, the quad play telecoms firm owned by Liberty Global.