Europe

The Bank of England said it will increase the countercyclical buffer by 100bp for UK banks after disclosing the results of its latest stress test this week. As the sector performed well in the test, the new capital requirements are being interpreted as a ‘Brexit buffer’ to help institutions withstand the risk of economic turmoil at the end of 2020.

Some European investment banks are considering weeding out their clients, to make sure they generate a sufficient return from each one. But they must remember to take into account the long term value of clients, according to Deloitte.

This week's funding scorecard looks at the progress European sovereigns have made in their funding programmes as we approach the end of 2019, with some issuers also setting their funding targets for 2020.

HSBC has named two bankers as global co-heads of its debt capital markets team, replacing Jean-Marc Mercier. It is also planning to open two new desks.

Multiplex cinema chain Cineworld is betting on rapid expansion as it pours more billions into another North American acquisition. Cineworld, which is among the most shorted companies in the UK, plans to acquire Canadian competitor Cineplex in a $2.1bn deal financed by debt. This plan comes nine months after it made a $3.6bn acquisition in the US.

Grigory Sedov has joined Renaissance Capital as global head of private clients.

The Dutch government is looking to resume selling shares in ABN Amro, the bank that was rescued during the financial crisis, as part of its programme for fiscal stability.

Spreads in the financial institutions bond market have tightened as investors pack their bags for the Christmas holiday period, but bankers warn that this does not necessarily reflect how conditions will look in the new year.

The Netherlands will kick off its funding programme in 2020 with a reopening of its inaugural green bond via a Dutch Direct Auction.

The covered bond market will enter 2020 on the front foot, supported by a wave of favourable forces such as the European Central Bank’s Asset Purchase Programme and low interest rates.

Equity capital markets bankers see a strong opportunity for UK block trades, as sellers may be tempted to take advantage of the country’s strong post-election rally.

The Italian government will allow two public institutions to recapitalise the struggling lender Banca Popolare di Bari, giving them room to provide it with about €1.5bn.