UK

Theresa May stunned the UK on Tuesday by calling a snap general election, but equity capital markets remain calm and the next wave of IPOs is becoming more visible, with two more new deals announced this week.

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.

Theresa May, the UK prime minister, on Tuesday announced her intention to seek an early general election for June 8, but the move that will allow her to solidify her Brexit mandate has had no major impact on market volatility.

Bankers active in UK equity capital markets were as surprised as anyone about Prime Minister Theresa May’s decision on Tuesday to call a snap general election on June 8. But they were calm about the risk of it disrupting issuance.

Drax Group, the UK energy holding company, has scheduled a roadshow for Wednesday and Thursday for a £500m fixed and floating rate senior secured bond offering, following its acquisition of Opus Energy earlier this year.

A leading London derivatives lawyer last week told an audience of experts that he was confident in the future of credit derivatives, lauding the increasing “objectivity” of the International Swaps and Derivatives Association (ISDA) definitions and the more transparent nature of the market.

The euro high yield market closed the week before the Easter break in strong form, with bonds from Burger King France and Colfax, the US gas company.

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 Bank of England has been dragged back into the mire of Libor-rigging investigations, after the BBC found tapes of Barclays traders referring to "pressure from the UK government and Bank of England" to keep their submissions low. The witch-hunt is already well under way but, if the Bank exerted pressure, it was the right thing to do.

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.

French finance minister Michel Sapin has warned British officials that London will lose its euro denominated derivatives business after leaving the European Union, saying that the bloc must be “masters” on rules that apply to its currency.

Nationwide Building Society got a “better than expected” result for a €750m fixed rate six year senior unsecured deal which it issued on Monday.