UK Sovereign

Investors were hit with a fresh political surprise on Tuesday, as UK prime minister Theresa May announced that the country would hold a snap general election on June 8.

The first round of the French presidential election takes place this Sunday and, while the market is mostly quiet, Derek Halpenny, head of global markets research at MUFG, says that market participants have not priced in much risk of a shock anti-EU result.

UK prime minister Theresa May’s shock general election call on Tuesday may be a calculated attempt to crystallise the Conservative Party’s strong opinion poll lead into actual seats at Westminster — but she could simultaneously weaken her strong stance against a second Scottish independence referendum. That would be bad news for anyone hoping for a favourable outcome for the UK’s economy and financial sector in the Brexit negotiations.

The UK's National Health Service, frustrated by a lack of funding and a mounting backlog of maintenance, is seeking a capital injection from wherever it can find it. The government must swallow its balance sheet concerns and provide one, rather than allowing the private sector to step in.

The UK's National Health Service is engaging in exploratory discussions in a drive to raise capital from private sources to finance “much needed” capital developments at a time when officials say it does not expect to receive additional government funding.

The UK will run one syndicated bond issue in the first quarter of its 2017-18 financial year, as Gilts shrugged off the triggering of the country’s journey towards the European Union exit and a vote in the Scottish Parliament calling for a second independence referendum.

Investors looking for new public sector avenues in which to deploy their cash can now turn to Moody’s to provide ratings for otherwise unrated public sector borrowers in the UK, France and Germany.

The UK’s Brexit secretary’s admission on Monday night that the government will not cap immigration after the country leaves the European Union — and that immigration could rise or fall after Brexit — may well be the first bit of good news on London’s future as Europe’s main financial centre since the referendum last June.

The UK will run one syndicated bond issue in the first quarter of its 2017-18 financial year, as the country prepared for a week heavy with political events.

The European Investment Bank on Tuesday became the sixth European public sector borrower to hit screens in sterling since March 13, tapping a January 2020 line for £250m. But UK inflation figures could put an end to the currency's run in the sun. Meanwhile, investors and banks discussed what form the next UK Gilt syndication should take.

The Scottish city of Aberdeen may be long past its 1980s heyday — when it was the hub of the burgeoning North Sea oil industry and its football team was one of the most feared in Europe — but it could soon find itself being a useful capital markets bellwether for the latest constitutional crisis to hit the UK.

The UK Debt Management Office will have to tackle its lowest issuance volume since 2007 in the next financial year, although analysts warned that the longer-term picture for UK borrowing could be affected heavily by imminent negotiations over Brexit.