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☆ Elon Musk documents subpoenaed in Jeffrey Epstein lawsuit by U.S. Virgin Islands
▼ + stars: | 2023-05-15 | by ( Tom Hals | Thomson Reuters | Tom Hals Is An Award-Winning Reporter With Years Of Experience Working In Asia | ) www.reuters.com time to read: +3 min

WILMINGTON, Delaware, May 15 (Reuters) - The U.S. Virgin Islands has subpoenaed Tesla Inc (TSLA.O) CEO Elon Musk for documents in its lawsuit accusing JPMorgan Chase & Co (JPM.N) of helping enable sexual abuses by late sex offender Jeffrey Epstein. The Virgin Islands did not provide further explanation for its interest in obtaining documents from Musk. In the subpoena, the Virgin Islands demanded any documents Musk has about Epstein’s involvement in human trafficking and his procurement of girls or women for commercial sex. Additionally, the subpoena sought any communications between the entrepreneur and JPMorgan about Epstein as well as between Musk and Epstein. Musk is the second tech entrepreneur touched by the Virgin Islands litigation.

☆ Debt ceiling crisis hangs over markets, with investors hoping to avoid a repeat of 2011
▼ + stars: | 2023-05-13 | by ( Matthew J. Belvedere | ) www.cnbc.com time to read: +8 min

Republicans, led by House Speaker Kevin McCarthy, want to attach spending cuts to any agreement to raise the debt ceiling. Biden and the Democrats say they are willing to talk about spending cuts but only outside the debt ceiling discussions. Raising the debt ceiling would allow the government to pay for spending that has already occurred. That year, the debt ceiling was raised at the last minute but not before a summer of bickering sent the S & P 500 down 17% from late July to mid-August. The market this past week stumbled with the debt ceiling deadline looming and over concern about regional bank failures.

☆ China's deflation worries deepen as consumer prices rise only 0.1% in April
▼ + stars: | 2023-05-11 | by ( Laura He | ) edition.cnn.com time to read: +3 min

The producer price index, which measures factory-gate prices, declined by 3.6%, marking the biggest contraction in three years. The weak property sector recovery likely has exerted “persistent” downward pressure on the factory-gate prices, they added. A slump in the property sector affects demand for key raw materials such as steel and cement, which are key parts of the producer price index. Producer deflation will likely deteriorate, with the PPI expected to drop further by 3.9% on falling global commodity prices. Deflation is bad for the economy because, in such an environment, consumers and companies may put off spending in anticipation of prices falling further, which would only exacerbate economic problems.

☆ Housing inflation slows, with potentially bullish implications for stocks
▼ + stars: | 2023-05-10 | by ( Zev Fima | ) www.cnbc.com time to read: +4 min

Most notably, shelter inflation — the chart below measures the annual rate of CPI shelter inflation — slowed for the first time since February 2021. If future data bears this out, it would be a material milestone in the Fed's war on inflation. As a subscriber to the CNBC Investing Club with Jim Cramer, you will receive a trade alert before Jim makes a trade. U.S. Federal Reserve Chair Jerome Powell attends a press conference in Washington, D.C., the United States, on May 3, 2023. The U.S. Federal Reserve on Wednesday raised the target range for the federal funds rate by 25 basis points to 5-5.25 percent, saying that the Fed "remains highly attentive to inflation risks."

☆ Dollar edges up, sterling hovers near one-year high
▼ + stars: | 2023-05-09 | by ( Rae Wee | ) www.reuters.com time to read: +3 min

The euro was last 0.16% lower at $1.0987, while the Japanese yen slipped 0.1% to 135.24 per dollar. There's still a tightening in credit conditions that is coming ... but overall, at this stage, the survey is not depicting a credit crunch ahead. "The dollar didn't really get much of a kick on that," said Catril, referring to the survey. The kiwi slipped 0.11% to $0.6338, having similarly scaled a one-month high of $0.63585 the day earlier. Elsewhere, the British pound fell 0.06% to $1.26105, but was not far from the previous session's one-year peak of $1.2668, ahead of Thursday's central bank policy meeting.

☆ Fed report shows banks worried about conditions ahead, with focus on slowing economy and deposit outflows
▼ + stars: | 2023-05-08 | by ( Jeff Cox | ) www.cnbc.com time to read: +3 min

"Banks reported expecting to tighten standards across all loan categories," the report said. At the same time, the survey showed that demand weakened across most categories. In particular, the report showed "tighter standards and weaker demand" for commercial and industrial loans, an important bellwether for economic growth. Also, the report showed the same conditions across commercial real estate categories. Even with the banking troubles, the central bank last week decided to raise interest rates for the 10th time since March 2022.

☆ Premarket stocks: The Fed could be on the verge of repeating its 1970s mistake
▼ + stars: | 2023-05-08 | by ( Julia Horowitz | ) edition.cnn.com time to read: +6 min

But Gary Richardson, a Federal Reserve historian, is worried policymakers — now contemplating taking a breather — still risk repeating mistakes from that era. A premature retreat could cause the Fed to lose its handle on the situation, presenting even grimmer options down the road. Quick rewind: The chair of the Federal Reserve at the time, Arthur Burns, hiked interest rates dramatically between 1972 and 1974. Inflation later roared back, forcing the hand of Paul Volcker, who took over at the Fed in 1979, Richardson said. But the comparisons reveal the high stakes for the Federal Reserve at a moment of acute uncertainty.

☆ Club meeting recap: Equities edge down, Estee Lauder, Caterpillar
▼ + stars: | 2023-05-08 | by ( Paulina Likos | ) www.cnbc.com time to read: +3 min

Every weekday the CNBC Investing Club with Jim Cramer holds a "Morning Meeting" livestream at 10:20 a.m. Equities lower ahead of inflation data Watch Estee Lauder Buy Caterpillar 1. Watch Estee Lauder Nelson Peltz isn't going to do anything with Estee Lauder (EL), the activist investor told Jim Cramer Monday. THE ABOVE INVESTING CLUB INFORMATION IS SUBJECT TO OUR TERMS AND CONDITIONS AND PRIVACY POLICY , TOGETHER WITH OUR DISCLAIMER . NO FIDUCIARY OBLIGATION OR DUTY EXISTS, OR IS CREATED, BY VIRTUE OF YOUR RECEIPT OF ANY INFORMATION PROVIDED IN CONNECTION WITH THE INVESTING CLUB.

☆ The Week in Business: The 10th Straight Rate Increase
▼ + stars: | 2023-05-07 | by ( Marie Solis | ) www.nytimes.com time to read: +4 min

It was the third consecutive increase of that size and the 10th straight rate increase since last March. This encroaching deadline presents a tricky political problem for Mr. Biden. Republicans are trying to extract concessions from Mr. Biden that would significantly undermine his agenda. He could negotiate spending cuts but divorce those discussions from the debt limit. There is one other possible option: a constitutional challenge to the debt limit, a long-shot plan that would rely on a clause in the 14th Amendment.

ROME, May 5 (Reuters) - Italy's Treasury is open to reducing its 64% stake in Monte dei Paschi di Siena (MPS) (BMPS.MI) through one or more share sales on the market, three people briefed on the matters told Reuters. After rescuing MPS at a cost of 5.4 billion euros ($6 billion) for taxpayers, Rome pumped another 1.6 billion into the Tuscan bank last November when it covered 64% of a 2.5 billion euro capital raise. MPS had to raise fresh capital to fund staff exits and replenish its capital reserves after the Treasury failed to clinch a sale of the bank to UniCredit (CRDI.MI) in 2021. Prime Minister Giorgia Meloni said several times that MPS's privatisation should foster the creation of several large banking groups in the country. ($1 = 0.9081 euros)Reporting by Giuseppe Fonte in Rome and Valentina Za in Milan; Editing by Susan FentonOur Standards: The Thomson Reuters Trust Principles.

☆ The top commentators in markets say the bank crisis isn't anywhere close to over.
▼ + stars: | 2023-05-05 | by ( Phil Rosen | ) www.businessinsider.com time to read: +5 min

Today we're looking at what some of Wall Street's top investors and commentators say has to happen to curb the banking tumult. The shuttered bank had disclosed in its first-quarter earnings report that customers pulled over $100 billion of deposits in three-months. But even if the regulator did insure more money, former FDIC chair Jelena McWilliams said Thursday a move like that would only cost banks' customers more. A stock market portfolio created by ChatGPT is outperforming the top UK investment funds. Stock market investors should keep an eye out for five key indicators with volatility set to ramp up through the end of the year.

☆ Citi upgrades this financial giant, sees sharp gains ahead after banking crisis
▼ + stars: | 2023-05-04 | by ( Sarah Min | ) www.cnbc.com time to read: +2 min

It's time to buy Deutsche Bank shares as the beaten-down bank shows signs of a strong recovery, according to Citi. Analyst Andrew Coombs upgraded Deutsche Bank to buy/high risk from neutral/high risk, saying the stock has further upside after the firm's stronger-than-expected first quarter results . "Deutsche Bank is one of the most de-rated banks YTD, yet the 1Q23 results demonstrated potential for further consensus earnings upgrades. In addition the company provided additional reassurance on the funding & liquidity position of the bank and on US CRE exposure," Coombs wrote. DB 1D mountain Deutsche Bank shares 1-day Deutsche Bank last week reported a first-quarter net profit of 1.158 billion euros, or around $1.28 billion.

☆ Key Fed meeting and jobs data are ahead
▼ + stars: | 2023-04-30 | by ( Krystal Hur | ) edition.cnn.com time to read: +5 min

In the spotlight are the Federal Reserve’s May meeting and the April jobs report. Federal Reserve Chairman Jerome Powell will likely face questions about credit conditions, in addition to the central bank’s inflation strategy. What’s at stake with the April jobs report: Economists expect the Bureau of Labor Statistics’ April jobs print to show slower employment growth last month and a rising unemployment rate. Wednesday: Federal Reserve interest rate decision, Chairman Jerome Powell’s press conference and April ADP private payroll report. Friday: April jobs report and March consumer credit.

☆ US Fed points finger at Trump-era rollback for SVB demise
▼ + stars: | 2023-04-29 | by ( Douglas Gillison | ) www.reuters.com time to read: +4 min

According to the Fed, SVB's management bore significant blame and bank examiners also made grave missteps. Randal Quarles, who was appointed to the Fed by President Donald Trump in 2017, oversaw the Fed's bank supervision until his resignation in 2021. Patrick McHenry, the Republican chair of the House of Representatives Financial Services Committee, blasted the Fed report as a "thinly veiled attempt" to justify positions like those of Warren. According to the report, the 2018 law caused the Fed to raise the supervisory threshold for large banks, i.e. those smaller than the "global systemically important banks," to $100 billion in assets from $50 billion -- delaying stricter oversight of SVB "by at least three years."

☆ First Republic Bank shares tank 50% after report says the struggling lender is likely to be taken over by the government
▼ + stars: | 2023-04-28 | by ( Carla Mozée | ) www.businessinsider.com time to read: +4 min

First Republic Bank shares plunged 50% Friday after CNBC reported the lender looks headed toward a government takeover. The lender that lost $100 billion in deposits in Q1 will likely be put into FDIC receivership, the report said. Such action would mark the third bank seizure by the FDIC since March when it took over the collapsed lenders Silicon Valley Bank and Signature Bank. First Republic shares have plunged 97% this year through midday Friday in the wake of the banking industry shakeup spurred by the collapse and seizures of Silicon Valley Bank and Signature Bank last month. First Republic shares on Wednesday logged a record-low close of $5.69.

☆ The insurance limit on your savings has become a hot global debate
▼ + stars: | 2023-04-28 | by ( Julia Horowitz | ) edition.cnn.com time to read: +8 min

The US Federal Deposit Insurance Corporation insures deposits up to $250,000 per person, per account, using a fund that banks pay into. “I don’t think that’s served us well.”Some argue the US deposit insurance limit should be 100 times higher. What is deposit insurance? Deposit insurance is aimed at calming fears, giving customers less reason to pull their cash out in a hurry. The debate over deposit insurance taps into bigger questions about the state’s role in private enterprise.

☆ Premarket stocks: Here's what we know about First Republic Bank
▼ + stars: | 2023-04-27 | by ( Nicole Goodkind | ) edition.cnn.com time to read: +7 min

New York CNN —First Republic Bank has been teetering on the edge for weeks. The San Francisco-based lender could be next in the line to collapse, following in the footsteps of former competitors Silicon Valley Bank and Signature Bank. The FDIC, Federal Reserve, White House and First Republic did not respond to requests for comment about those reports. The stock’s trading was halted numerous times both days as its rapid decline triggered volatility-triggered timeouts by the New York Stock Exchange. “It’s becoming clearer each day” that First Republic is “toast,” said Don Bilson at Gordon Haskett, in a note Wednesday.

☆ Allegations against former Barclays CEO Staley 'very serious' - CEO
▼ + stars: | 2023-04-27 | by ( Lawrence White | ) www.reuters.com time to read: +1 min

LONDON, April 27 (Reuters) - Allegations made against British bank Barclays' former CEO Jes Staley regarding his ties with sex offender Jeffrey Epstein are "very serious", the lender's current CEO C.S. Venkat said the allegations were being adjudicated in New York, which he said was the "right and proper place". Both seek money damages and neither lawsuit names Staley as a defendant. In U.S. filings this week, Staley accused JPMorgan of using him as a "public relations shield" and said the allegations lacked legal or factual basis. A former investor in the bank last week said the lender should have made more checks over the matter.

☆ Russia's VTB reports profitable Q1, on track for sharp recovery
▼ + stars: | 2023-04-27 | by ( Elena Fabrichnaya | ) www.reuters.com time to read: +2 min

SummarySummary Companies This content was produced in Russia where the law restricts coverage of Russian military operations in UkraineMOSCOW, April 27 (Reuters) - Russia's No. 2 lender VTB (VTBR.MM) on Thursday posted first quarter net profit of 146.7 billion roubles ($1.8 billion) and kept its forecast for record profits this year as the bank recovers from a $7.7 billion sanctions-induced loss in 2022. Pyanov said the final price of VTB's second additional share issue will be determined in May. He said the 2022 loss excluded the bank from participating under the current version of the draft law. ($1 = 81.8500 roubles)Reporting by Elena Fabrichnaya; Writing by Alexander Marrow; Editing by Lincoln FeastOur Standards: The Thomson Reuters Trust Principles.

And, as it's global liquidity that matters, the bowl is also kept brimming as the Bank of Japan continues to buy government bonds at pace. But a study looking at the U.S. banking shock that led to the failure of Silicon Valley Bank and Signature Bank last month and deposit runs across many regional banks suggests a different angle - a 'deposit glut' from within the richest countries that is increasingly unstable. "In a context of rising wealth inequality and growing corporate savings, an increasing share of bank deposits is uninsured and held by sophisticated agents," Vuillemey wrote. "This implies that these deposits are increasingly fragile, and that deposit insurance schemes ... are slowly losing bite." As illustrated in Technicolor in the SVB run, big uninsured deposits are volatile - sensitive as they are to any hint on the bank's health and moveable at push of a button.

☆ Premarket stocks: Google and Microsoft fight over the future of AI
▼ + stars: | 2023-04-26 | by ( Nicole Goodkind | ) edition.cnn.com time to read: +6 min

Microsoft, Google and a number of smaller rivals are in a race to integrate generative artificial intelligence technology (similar to ChatGPT) into their search functions and other applications. Both companies see it as an integral part of their future, but it was apparent on Tuesday that Microsoft and Google aren’t in agreement about what that future will look like. Analysts have expressed worry that Google is falling behind the competition when it comes to AI innovation. First Republic shares plunge 50%The past few weeks have been brutal for First Republic Bank (FRC). First Republic Bank also said Monday that it expects to cut its workforce by 20-25% this quarter.

☆ Bitcoin surges 9% toward key level of $30,000 as crypto market rallies amid fresh banking sector fears
▼ + stars: | 2023-04-26 | by ( Morgan Chittum | ) www.businessinsider.com time to read: +3 min

The rally comes as First Republic Bank stokes fresh fears over weakness in the banking sector. Investors are also adding risk as they anticipate a Fed pivot, a crypto exec told Insider. First Republic Bank stock nosedived almost 50% on Tuesday and lost another 20% Wednesday, hitting a record low, after reporting higher-than-expected customer deposit withdrawals. Bitcoin rallied through the turmoil in March as Silicon Valley Bank failed, and industry observers said a similar situation is playing out for the world's largest crypto amid the latest bout of uncertainty. Another crypto exec echoed similar sentiments, adding that the slew of bank failures like Silicon Valley Bank last month made investors question the stability of traditional financial services.

☆ First Republic Bank turmoil pushes stock to plunge 95% this year as the lender seeks another lifeline from big US banks
▼ + stars: | 2023-04-26 | by ( Carla Mozée | ) www.businessinsider.com time to read: +3 min

First Republic shares extended this week's losses, driving the stock down 95% so far in 2023. The bank centered on wealthy clients was set to ask its larger rivals for more financial aid. The stock fell as much as 41% to $4.76 and underwent a number of trading halts because of volatility. If the purchases aren't made, those banks may face fees of about $30 billion from the Federal Federal Deposit Insurance Corp. should First Republic fail, the report said. Those banks are already facing FDIC fees stemming from the collapse and federal seizures of Silicon Valley Bank and Signature Bank last month.

☆ US stocks drop as First Republic revives bank worries and investors await big tech earnings
▼ + stars: | 2023-04-25 | by ( Morgan Chittum | ) www.businessinsider.com time to read: +2 min

Traders digested banking sector woes and braced for big tech earnings. First Republic stock fell to a record low after reports of a rescue plan that involves $100 billion in asset sales. First Republic Bank shares plunged 49% to an all-time low. The bank is exploring a broader rescue plan that would involve $100 billion in assets sales, Bloomberg reported. The volatile price action comes amid prolonged worries over the financial sector's stability after the downfall of both Silicon Valley Bank and Signature Bank last month.

☆ Debt crisis is a scary white swan for US economy
▼ + stars: | 2023-04-25 | by ( Ben Winck | ) www.reuters.com time to read: +8 min

If Democrats and Republicans can’t agree to lift the government’s borrowing limit, the country could suffer an unprecedented and catastrophic default on its debt. The standoff over the debt ceiling is a white swan, or an entirely predictable, very frequent event that has the potential to be as catastrophic as its darker sibling. That is why, in all past scuffles over government borrowing, Congress ended up raising or suspending the debt ceiling. Uncertainty over the timing of the agreement led to the most volatile week for financial markets since the 2008 financial crisis. Failure to lift the debt ceiling soon can spark a vicious cycle of market anxiety, rising borrowing costs and bank stress.

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