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☆ Morgan Stanley says higher oil prices could boost these 2 global real estate stocks
▼ + stars: | 2023-09-19 | by ( Ganesh Rao | ) www.cnbc.com time to read: +2 min

The recent increase in oil prices could provide a boost to London's prime office real estate market, according to Morgan Stanley. According to their analysis, higher oil prices tend to correlate with increased demand for top-tier commercial properties. When oil prices rise above this threshold, the excess profits are invested by its sovereign wealth fund, PIF, in assets around the world, including tech stocks. Morgan Stanley says that in the past, a similar rise in oil prices has preceded strong 12-month share price performance for London office REITs (real estate investment trusts). For Derwent London, Morgan Stanley forecasts the stock reaching £27.00 ($33.43), up 45% from current levels, within 12 months.

Persons: Morgan Stanley, Bart Gysens Organizations: Bank of London, Cooperation Council, Monetary Fund, GCC, Saudi, London, Derwent, Great Portland Estates, Derwent London, Great Locations: London, WTI, Great Portland

☆ HSBC bought Silicon Valley Bank UK in record time — here's how events unfolded
▼ + stars: | 2023-03-16 | by ( Silvia Amaro | ) www.cnbc.com time to read: +2 min

HSBC came to the rescue of Silicon Valley Bank UK in a crucial deal for the whole banking sector. Silicon Valley Bank — a U.S. lender with clients mostly in the tech and health-care startup world — was deemed insolvent by American regulators on Friday. Consequently, the Bank of England announced Friday that, "absent any meaningful further information," it would be placing Silicon Valley Bank UK into an insolvency procedure. More than 200 companies — depositors with SVB UK — wrote Saturday to the U.K.'s Treasury asking for help. They said that some would not be able to comply with payroll deadlines without accessing their deposits with SVB UK.

"HSBC is Europe's largest bank, and SVB UK customers should feel reassured by the strength, safety and security that brings them," Britain's finance minister Jeremy Hunt said. The Bank of England said it had organised the sale to underpin confidence in the financial system and minimise any fallout for British technology firms. "This acquisition makes excellent strategic sense for our business in the UK," HSBC CEO Noel Quinn said in a statement. The Bank of England said SVB UK had a total balance sheet size of around 8.8 billion pounds. Other potential buyers for SVB UK had included Bank of London, which said on Sunday it had submitted a formal proposal.

☆ HSBC turns Silicon Valley Bank calamity into gold
▼ + stars: | 2023-03-13 | by ( ) www.reuters.com time to read: +2 min

LONDON, March 13 (Reuters Breakingviews) - A crisis can be an opportunity for the prepared. That’s what HSBC (HSBA.L) may find with its acquisition of Silicon Valley Bank’s UK arm (SVBUK), announced on Monday morning. The Bank of London, a young clearing bank that also submitted a bid, said on Monday that the HSBC deal was a missed opportunity to promote competition. On that theory, the UK government and Bank of England should have handed SVBUK to a financial-technology startup or a challenger bank, rather than strengthening an established player. They do not reflect the views of Reuters News, which, under the Trust Principles, is committed to integrity, independence, and freedom from bias.

With assets of around 5.5 billion pounds and deposits of around 6.7 billion pounds, SVB UK is a minnow compared to HSBC. The situation was urgent because SVB UK had lost almost half of its deposits in the 48 hours leading up to its rescue, the source said. Officials from the Bank of England and Treasury along with board members from SVB UK were then locked in talks. HSBC also plans to inject 2 billion pounds of liquidity into SVB UK, a spokesperson for HSBC said. Advisory firm Rothschild, which advised SVB UK according to sources, also declined to comment.

[1/2] A notice hangs on the door of Silicon Valley Bank (SVB) located in San Francisco, California, U.S. March 10, 2023. "Silicon Valley Bank cannot be allowed to fail given the vital community it serves," Bank of London co-founder and CEO Anthony Watson said. But an executive at a major UK bank said it was unlikely a high street lender would buy SVB UK because its credit products would not be a good fit for a mainstream bank. EXISTENTIAL THREATMore than 250 UK tech firm executives signed a letter addressed to Hunt on Saturday calling for government intervention and warned of an "existential threat" to the UK tech sector, a copy seen by Reuters shows. Sunak has said he wants to turn Britain into the "next Silicon Valley".

☆ UK races to minimise SVB fallout amid reports of potential buyers
▼ + stars: | 2023-03-12 | by ( Andrew Macaskill | ) www.reuters.com time to read: +6 min

[1/2] A notice hangs on the door of Silicon Valley Bank (SVB) located in San Francisco, California, U.S. March 10, 2023. SoftBank-owned lender OakNorth Bank is weighing a bid to buy Silicon Valley Bank UK Ltd, a person with knowledge of the talks told Reuters, confirming a Sky News report. EXISTENTIAL THREATMore than 250 UK tech firm executives signed a letter addressed to Hunt on Saturday calling for government intervention and warned of an "existential threat" to the UK tech sector, a copy seen by Reuters shows. Hunt reiterated comments by the BoE that overall, Silicon Valley Bank had a limited presence in Britain and did not perform functions critical to the financial system. Sunak has said he wants to turn Britain into the "next Silicon Valley".

March 12 (Reuters) - Bank of London has tabled an offer to Silicon Valley Bank UK, SVB's subsidiary, the company said on Sunday, adding that it had sent the proposals to British authorities, including the Treasury and the Bank of England. Bank of London, a clearing bank, is leading a consortium of investors including private equity funds, which has submitted what it described as formal proposals. "Silicon Valley Bank cannot be allowed to fail given the vital community it serves," Bank of London co-founder and CEO Anthony Watson said in a statement. "This is a unique opportunity to ensure the UK has a more diversified banking sector, whilst allowing continuity of service to SVB's UK client base," he said. Unlike other financial institutions, Bank of London does not lend and holds all of its deposits with the Bank of England.

☆ Bank of London weighs rescue bid for Silicon Valley Bank's UK arm, Sky News reports
▼ + stars: | 2023-03-11 | by ( ) www.reuters.com time to read: +1 min

March 11 (Reuters) - British clearing bank The Bank of London is considering a rescue bid for the UK arm of collapsed U.S. bank Silicon Valley Bank (SIVB.O), Sky News reported on Saturday. The British bank has appointed investment bank Perella Weinberg Partners to advise it on its interest in Silicon Valley Bank UK Limited (SVB UK), the report said, citing a source familiar with the matter. The Bank of London and SVB did not immediately respond to a Reuters' request for comment. The rout in SVB's stock, which began on Thursday, has spilled over into other U.S. and European banks. U.S. banks have lost over $100 billion in stock market value and European banks have shed another $50 billion in value over the past two days, according to a Reuters calculation.

☆ UK finance minister, Bank of England working to minimise SVB fallout
▼ + stars: | 2023-03-11 | by ( ) www.reuters.com time to read: +2 min

LONDON, March 11 (Reuters) - Britain's finance ministry and the Bank of England are working together to minimise the disruption that could stem from the UK arm of collapsed U.S. bank Silicon Valley Bank, the ministry said on Saturday. Officials from both groups are working closely together, the finance ministry said in a statement, with talks scheduled for later on Saturday to discuss the issues faced by British tech companies affected by the collapse. Britain's banking system remains strong and resilient, the finance ministry added, saying that the issues affecting Silicon Valley Bank (SIVB.O) were specific to it and did not have implications for other banks operating in the UK. British clearing bank The Bank of London is considering a rescue bid for the UK arm of the U.S. bank, Sky News had reported earlier on Saturday. That came after the Bank of England on Friday said it was seeking a court order to place SVB UK into an insolvency procedure after U.S. regulators took over parent company SVB Financial Group.

☆ UK finance minister and Bank of England work to contain SVB fallout
▼ + stars: | 2023-03-11 | by ( ) www.reuters.com time to read: +3 min

The Bank of England on Friday said it was seeking a court order to place SVB UK into an insolvency procedure. Advisory firm Rothschild & Co is exploring options for SVB UK as insolvency looms, two people familiar with the discussions told Reuters. More than 250 UK tech firm chief executives signed a letter addressed to Jeremy Hunt, the British chancellor of the exchequer (finance minister), calling for government intervention, a copy seen by Reuters shows. "The recent news about SVB going into insolvency represents an existential threat to the UK tech sector," the letter said. Sky News had reported earlier on Saturday that a British clearing bank, the Bank of London, was considering a rescue bid for the UK arm of SVB.

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