Europe

Shares in On the Beach Group, the UK online retailer of beach holidays, traded as much as 10% higher on Friday morning after the company said it had raised £67m from investors to keep itself afloat following a dramatic fall in the volume of bookings during the Covid-19 global pandemic.

Shares in AJ Bell, the UK stockbroker, fell heavily in trading on Friday after Invesco sold a 7.6% stake in the company following first quarter results.

Barclays has made Paul Leech and Todd Sandoz interim co-heads of global equities, after Fater Belbachir was hired by Citi.

A series of comeback trades has established firm demand for every debt class in the bank bond market. With credit spreads moving another leg tighter this week, issuers must now consider whether they have a precious opportunity to wheel out their riskiest transactions with the coronavirus pandemic still threatening society and capital markets. Tyler Davies reports.

Safety measures to respond to the coronavirus threat are forcing a rethink of office space at financial firms. And in the long-term, banks are set to reconsider their physical footprint and how much work can be carried out remotely, according to managers and experts.

European banks are expected to hit the dollar market in force over the coming weeks as they look to take advantage of an extended rally in spreads.

France and Germany presented a joint plan for a €500bn grant-based EU recovery fund earlier this week. Eurozone periphery investors reacted with delight, but other member states resisted. Despite the opposition, most believe that Germany’s support of the plan marks a sea change in European politics and offers a chance for Europe to catch up with the Covid-19 spending of other developed economies, writes Lewis McLellan.

Citi picks Nick Darrant as syndicate head — And it sets up new sustainability and science units — JP Morgan reveals next layer of DCM, ECM and M&A bosses

In the classic UK sitcom Yes, Minister, cunning civil servant Sir Humphrey Appleby would try to deter government minister Jim Hacker from making a particular decision by calling it "courageous" — meaning it was risky. He might have given similar advice to bankers on the IPO of coffee company JDE Peet’s this week.

The Bank of England this week signaled that it is changing its stance and considering bringing its base rate into negative territory. But with the UK Debt Management Office (DMO) issuing three year paper with a negative yield for the first time, as well as printing £7bn ($8.56bn) of 41 year bonds, there are few worries for the SSA market.

The IPO of JDE Peet’s, the coffee business owned by JAB Holdings, is the first true test of investor appetite for European IPOs since the Covid-19 crisis began. There have been small listings already but nothing on this scale, yet the company is confident that it will succeed, write Sam Kerr and Aidan Gregory.

A supranational and a Nordic bank paid rare visits to the Swiss franc market this week. The North American Development Bank (NADB) printed its first deal in two years — its second green bond — while Nordea returned after a five year absence.