Europe

Italy’s announcement that it plans to overshoot the European Commission’s budget deficit limit has spooked markets at a crucial time for the country’s banks.

Chicago Mercantile Exchange (CME) Group on Monday released clearing for OTC swaps based on the secured overnight financing rate (Sofr), the preferred benchmark to replace dollar Libor.

Turkey’s manufacturing PMI dropped steeply in September, joining the cavalcade of evidence pointing to the country being in recession. But government support of banks is reflected in their dollar debt and diplomatic relations with the rest of the world appear to be improving.

Fears that European banks won’t use the call options on their tier two bonds are overdone, according to analysts at JP Morgan.

Croatia’s Uljanik Plovidba has hammered out a loan refinancing that includes “significant” debt relief, throwing a lifeline to the cash-strapped ship builder.

Kommuninvest has increased its funding needs for the year, as it prepares for the final quarter.

Barclays had hired an equity capital markets banker from Goldman Sachs to expand its corporate broking team.

European corporate bond market participants are expecting a quieter week of issuance following two of the strongest weeks of 2018, but there is still plenty of opportunity among the various public holidays.

Vakifbank has sold the first ever domestically placed AT1, raising TL5bn ($828.5m) with a perpetual non call five year private placement. An investor away from the deal said it was bought by a single, government linked investor.

The Italian cabinet has agreed upon a budget deficit target of 2.4% of GDP for the next three years, rejecting the finance minister’s 1.6% target proposal, causing Italian assets to sell off.

Knorr-Bremse, the historic German manufacturer of brake systems for trucks and trains, has set a range on its Frankurt listing, set to be one of the largest IPOs of the year.

The first two major IPOs of the autumn, Funding Circle and SIG Combibloc, have both stayed above water in trading.