Crisis in the Banking Sector: Credit Suisse Group AG Borrows from Swiss National Bank
The banking sector is facing a crisis as three US banks have collapsed in the last week, including the second-largest US bank failure ever, Silicon Valley Bank. Credit Suisse, one of the world’s largest investment banks, saw its shares tumble 30% Wednesday morning, adding to fears of a broader meltdown in the global financial system.[0] […]
Continue reading President Biden Reassures Americans: Banking System is Safe
On Monday, President Joe Biden addressed the nation to reassure Americans that the banking system is safe in the wake of the collapse of Silicon Valley Bank and Signature Bank. The federal government was forced to intervene to backstop deposits at the two banks and the President sought to ease worries that other small regional […]
Continue reading Fed Attempts to Fight Inflation with Higher Rates, But Is It Possible?
The 10-year Treasury yield plummeted 29 basis points to 3.69% this week, while the 2-year Treasury yield fell 50 basis points to 4.9%. The U.S. 10-year Treasury yield (US10Y) fell 6 basis points to 3.58%, while the 2-year yield (US2Y) dropped 5 basis points to 4.17%. The yield on the benchmark 10-year U.S. Treasury note […]
Continue reading Banking Crisis Causes Stock Market Plunge and Fed Interest Rate Speculation
The stock market was sharply lower on Wednesday as the banking crisis continued to worsen and spread to Europe, sending Credit Suisse Group’s shares plummeting more than 20% to their lowest level in history and pushing their credit default swaps near distressed territory.[0] Dow Jones futures fell 1.7%, S&P 500 futures slipped 1.8%, and Nasdaq […]
Continue reading Credit Suisse Shares Plummet as US Retail Sales Fall and Saudi Investor Withdraws Funds
Credit Suisse Group AG saw its shares fall to a record low on Wednesday, dragging down the rest of the European banking sector with it.[0] The Swiss banking giant’s share price plummeted 18% premarket to a new record low after the bank’s top shareholder ruled out offering any further financial assistance to the troubled lender.[1] […]
Continue reading Latest CPI Report: Fed Likely to Increase Rates Despite Banking Turmoil
The recent Consumer Price Index (CPI) report released Tuesday revealed that headline inflation rose 0.4% month-over-month in February and 6% over the prior year, a slowdown from January’s 0.5% month-over-month increase and 6.4% annual gain. The data was in-line with economist expectations, according to Bloomberg.[0] Core inflation, which strips out the more volatile costs of […]
Continue reading Silicon Valley Bank Collapse: Shockwaves Through the Tech Industry and a Reminder of the Risks of Banking
The collapse of Silicon Valley Bank (SVB) last Friday has caused shockwaves throughout the tech industry. Founded in 1983 to serve the emerging California tech world, SVB had become the go-to bank for nearly half of all venture-backed tech startups and many in the healthcare sector. With over $200 billion in assets, it was the […]
Continue reading Silicon Valley Bank Collapse: A Reminder of Banking Risks
Silicon Valley Bank (SVB) has gone down in history as the largest US bank failure since the 2008 Great Recession.[0] Founded in 1983, SVB had become deeply ingrained in the financial infrastructure of the tech industry, banking for nearly half of all venture-backed tech startups and many in the healthcare sector.[0] Last Friday, the Federal […]
Continue reading US Retail Sales Declined 0.4% in February: UK and Ireland Retail Performance Mixed
US Retail Sales declined by 0.4% month-on-month (m/m) in February, according to the US Census Bureau.[0] This reading followed January’s expansion of 3.2%, and came in slightly worse than the market expectation for a decrease of 0.3%.[1] According to Mastercard SpendingPulse, which measures in-store and online retail sales across all forms of payment, US retail […]
Continue reading ECB Set to Raise Rates Despite Recent Financial Turmoil
On Thursday, the European Central Bank (ECB) is expected to announce a 50 basis point hike to 3%, which would mark the sixth consecutive rate increase since the ECB began hiking in July of last year. This move is largely in line with the Governing Councils’ recent guidance and could potentially be followed by a […]
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