ECB Raises Interest Rates Despite Financial Turmoil, Credit Suisse Shares Plummet
On Thursday, March 16, 2023, the European Central Bank held its monetary policy meeting and decided to go ahead with the half a percentage point rise in its base interest rate despite the financial turmoil of the past week.[0] This decision has been met with mixed reactions as the market participants were expecting a rate […]
Continue reading Bank of America Predicts “Slight” Recession and Interest Rates to Remain High Until 2024
Bank of America CEO Brian Moynihan recently predicted a “slight” recession this year in the United States and warned that interest rates won’t fall until sometime in 2024. This sentiment was echoed by Goldman Sachs, who raised their odds of a US recession in the next 12 months to 35%, up 10 percentage points from […]
Continue reading The SVB Bank Failure: A Warning for Other Banks
Silicon Valley Bank (SVB), founded in 1983 and the largest US bank to fail since the Great Recession, fell into insolvency in March of 2023 after a bank run, caused by a capital crisis that began when the bank’s parent company announced it would sell $2.25 billion in new shares to shore up its balance […]
Continue reading U.S. Labor Market Remains Strong Despite Unexpected Rise in Jobless Claims
U.S. jobless claims unexpectedly rose last week, according to the Department of Labor, with initial applications for unemployment benefits hitting 211,000, an increase of 21,000 from the previous week.[0] Continuing claims, representing the number of people already receiving benefits, were at 1,684,000 during the week ending March 4, a decrease of 29,000 from the previous […]
Continue reading ECB Raises Interest Rates, Weighs Inflation vs Financial Stability Risks
On Thursday, the European Central Bank (ECB) raised interest rates by a half percentage point, pressing ahead with its fight against inflation despite concerns that this could exacerbate strains in the financial system.[0] In a statement, the ECB said it would increase its key rate to 3%, the highest level since 2008, while promising to […]
Continue reading ECB Raises Rates to Balance Inflation and Financial Stability Risks
The European Central Bank (ECB) on Thursday announced a further rate hike of 50 basis points, signaling it is ready to supply liquidity to banks if needed, amid recent turmoil in the banking sector. The interest rate on the ECB’s main refinancing operations will rise to 3.50%, while the deposit facility rate will rise to […]
Continue reading John Lewis Partnership Reports £78 Million Loss and Announces Cost Savings Target
The John Lewis Partnership has reported a loss of £78 million before exceptional items for the year to January 28, a stark reversal from the £181 million profit the year earlier.[0] The retail giant attributed the slump to inflationary pressures and product supply challenges, such as a major fire at their Brinklow warehouse that hit […]
Continue reading US Jobless Claims Unexpectedly Tick Higher, Reaching Highest Level Since December
The U.S. Department of Labor reported on Thursday that initial jobless claims rose to 211,000 in the week ending March 4, an increase of 21,000 from the previous week’s unrevised estimate of 190,000. This marks the highest level of weekly jobless claims since the week ending November 27th, 2021, when there were also 211,000 claims. […]
Continue reading Credit Suisse Stock Surges After Swiss National Bank Loan and Debt Buyback Announcement
Shares of Credit Suisse surged Thursday after the bank said it would tap a loan from the Swiss National Bank, followed by an announcement it would buy back 3 billion Swiss francs worth of its debt.[0] The loan from the Swiss National Bank, which is worth 50 billion Swiss francs ($54 billion), is part of […]
Continue reading Credit Suisse Stock Surges 32% After Swiss National Bank Loan & Debt Buyback
Shares in Credit Suisse surged 32% at the start of trading in Zurich on Thursday, after the bank announced it would tap a loan from the Swiss National Bank and launch an offer to buy beaten-up debt.[0] The second-biggest Swiss lender said it would use a 50-billion-franc ($54 billion) facility from the country’s central bank […]
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