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Fears of a full scale US recession took hold this week as the smaller than expected Federal Reserve rate cut sparked panic selling in stock markets worldwide, sending them plummeting as investors sought safe havens. Early in the week, the market was focused on Tuesday's FOMC meeting and there was little trading. Disappointment was in store for many investors, who had hoped for a 75bp rate cut in response to concerns about the US economy, numerous profit warnings and the fall in equities since the start of the year.

HSBC launched this week a £50m-£100m variable coupon bond for Wessex Water Services Finance, the borrowing vehicle of UK utility Wessex Water Services. The coupon will be set according to a rating grid, giving investors an uplift of 25bp for every notch that the company is downgraded below its present level of A3/BBB+. Upgrades above this level will lower the coupon by 12.5bp per notch.

France Joint mandated arrangers BNP Paribas and Crédit Agricole Indosuez have signed banks into the Eu1.68bn term loan facilities for insurance and investment holding company Eurafrance. After the success of the first round of syndication, the deal did not require general syndication.

Unlike the legendary Mr Welch, we have never pretended to have any influence other than to make some Euromarketeers smile from time to time. We can chide, irritate and niggle, but we have never for a moment claimed to be able to change the financial world. However, once in a blue moon our comments may strike home, and we had to smile ourselves when we received a call from our top German mole and the strictest disciplinarian in Europe, Fraulein Heidi von Grippenutz. The gorgeous Heidi said that our name came up in a question and answer session at Commerzbank when the fast fading and outgoing chairman, Martin Kohlhaussen was asked why, considering the extent of his revenue contributions, had the head of the securities division, Mehmet Dalman not been promoted to the Vorstand? Was it really true that the usually humourless Marty Kohlhaussen replied: "I appreciate the validity of your question but I make the decisions at this bank and not Mr Ian Kerr at EuroWeek"? Of course, Marty is quite right but who was the bounder at the back of the audience who said: "Don't bet your shirt on it Mr Kohlhaussen."

Commerzbank launched the Eu27m-Eu41m IPO of medical technology company Pulsion this week with a wide price range to accommodate the extraordinary volatility in the equity markets. The company is offering shares at Eu10-Eu15. "It is only fair to take a bit of volatility into account when you set the price range," said a banker close to the deal. The roadshow began on Monday. Book-building opened on Tuesday and is due to close on Monday next week.

The World Bank this week made a triumphant return to the global bond market after an absence of over a year with a $3.5bn five year bond, perfectly timed to take advantage of a dramatic flight to quality in the face of plummeting equity markets. The deal, launched on Wednesday and priced yesterday (Thursday) by joint leads HSBC, Morgan Stanley Dean Witter and UBS Warburg, achieved truly global distribution with some 40% sold in the US and the remaining 60% equally divided between Europe and Asia.

The World Bank this week made a triumphant return to the global bond market after an absence of over a year with a $3.5bn five year bond, perfectly timed to take advantage of a dramatic flight to quality in the face of plummeting equity markets. The deal, launched on Wednesday and priced yesterday (Thursday) by joint leads HSBC, Morgan Stanley Dean Witter and UBS Warburg, achieved truly global distribution with some 40% sold in the US and the remaining 60% equally divided between Europe and Asia.

* Merrill Lynch & Co Rating: Aa3/AA-/AA

DaimlerChrysler UK Holding has announced its sixth Japanese yen trade of the year. It is a ¥5 billion ($41.47 million) plain vanilla note that matures on December 14 of this year, and pays a final coupon of 0.450%. The bookrunner is Goldman Sachs. So far this year, the issuer has issued trades in euro, Czech koruna and Polish zloty. Boris Haensel, treasurer for the issuer, says: "Although we have issued four large euro notes so far this year, yen is the attractive currency of the moment - there is a huge amount of money to be invested and lots of opportunity in Japan."

Hong Kong The HK$3.9bn five year revolving credit for Amoy Properties, co-ordinated by Standard Chartered Bank, was launched on March 20. The deal was oversubscribed to HK$5.2bn and increased from HK$3bn during underwriting.

Australia Arrangers ANZ Investment Bank and BA Asia have completed the A$585m term loan for the Australian Railway Group. The arrangers held A$60m each.