United States

After a bruising 12 months, Germany’s oldest bank Berenberg remains committed to a patient development of its corporate finance business, Dave Mortlock, global head of investment banking, tells David Rothnie.

UBS replaces EMEA president — Lloyds loses PP agent — Deutsche Bank reorganises treasury team

The onshore renminbi plunged to 7.17 against the dollar by noon on Thursday from the previous week’s close at 7.07. While much of the loss was a result of a spike in tensions between the US and China, analysts and bankers are also blaming the mainland’s looser FX intervention policies and growing distrust of US president Donald Trump’s comments. Rebecca Feng reports.

Geopolitical tensions, particularly the increasingly hostile relationship between the US and China, have driven some equity investors to take a risk averse position in preparation for a choppy autumn.

India’s Bombay Stock Exchange has launched trading in interest rate options linked to the country’s government bonds.

In this round-up, the tit-for-tat trade tariff situation between the US and China escalated over the weekend, and the People’s Bank of China (PBoC) issued detailed rules for benchmarking mortgage borrowers to the recently unveiled loan benchmark rates.

In this round-up, the US gave Huawei another three months to buy supplies from US companies, the Chinese government revealed plans to turn Shenzhen into ‘a demonstration area of socialism with Chinese characteristics’ and Japan replaced China as the largest holder of US treasuries

JP Morgan announced the terms of a massive tender offer this week, as supply slowed to a trickle in the US dollar market.

The return of heightened market volatility this summer has cast a shadow over final few months of 2019 for equity capital markets. Investors are weighing up whether to buy new deals in at a time of heightened geopolitical risk and deteriorating macroeconomic conditions.

Proofpoint, the California-based cyber security company, became the latest issuer this week to take advantage of the booming market for US technology sector convertible bonds, raising $800m to finance its growth.

The return of heightened market volatility this summer is leading to investors looking at defensive assets as fund managers consider how to ride out a possible turn in the economic cycle.

PG&E’s high yield bonds are trading above par, even as Chapter 11 bankruptcy proceedings advance at the Californian gas and power company. According to one credit research company, bad news may even be good news for the bondholders.