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☆ FDIC exercises rights in First Citizens, New York Community Bank stocks
▼ + stars: | 2023-03-31 | by ( ) www.reuters.com time to read: +1 min

March 31 (Reuters) - Regulator Federal Deposit Insurance Corporation (FDIC) exercised its equity rights in First Citizens BancShares Inc (FCNCA.O) and New York Community Bancorp Inc (NYCB.N) as part of the deals to rescue failed lenders Silicon Valley Bank and Signature Bank. A spokesperson for the regulator confirmed FDIC also exercised its option to acquire shares of New York Community Bancorp. U.S. regulators said on Monday they would backstop the deal for First Citizens to buy Silicon Valley Bank, triggering an estimated $20 billion hit to a government-run insurance fund. First Citizens did not pay cash upfront for the Silicon Valley Bank deal. New York Community Bank entered into an agreement with regulators to buy deposits and loans from New York-based Signature Bank earlier this month.

LONDON, March 31 (Reuters) - Even after a bank shock that could well have changed the whole picture, investors appear reluctant to give up the ghost just yet. The tech-heavy, interest-rate sensitive Nasdaq (.IXIC) is up 14% and even broad European bank stock indices (.SX7P) are still up more than 4% for the year. Pull the lens out as far as it can go and MSCI's all-country index of world stocks (.MIWD00000PUS) is up more than 5%. That U-turn in thinking during the month saw wild swings in the bond and rates markets, where key volatility gauges (.MOVE) hit their highest since the 2008 crash. by Mike Dolan; Editing by Toby Chopra; Twitter: @reutersMikeDOur Standards: The Thomson Reuters Trust Principles.

☆ Asian shares ride high in Q1 but keep vigil on inflation
▼ + stars: | 2023-03-31 | by ( Stella Qiu | ) www.reuters.com time to read: +5 min

The buoyant mood is likely to run into resistance in Europe, with caution setting in ahead of the euro zone inflation data. The pan-region Euro Stoxx 50 futures was flat, while S&P 500 futures eked out a gain of 0.2%. It is on course for a quarterly gain of 3.6%, after surging 12% in the three months that ended in December. Japan's Nikkei (.N225) also leaped 1%，as inflation data for the capital Tokyo highlighted broadening price pressures. That compared with an overwhelming bet on a 25 basis point hike a month ago before the banking volatility started.

☆ Dollar to log quarterly drop as rate hike bets recede
▼ + stars: | 2023-03-31 | by ( Tom Westbrook | ) www.reuters.com time to read: +3 min

The euro rose 0.5% overnight after stronger-than-expected German inflation figures reinforced expectations that there are a few more rate increases left in the Euro zone. Through March, U.S. interest rate markets dramatically repriced the outlook and now see a roughly 40% chance that the Federal Reserve is finished with rate increases. On Friday the New Zealand dollar broke above its 50-day moving average and stood at a nearly two-week high of $0.6296. The Australian dollar nudged 0.2% higher to $0.6721 and is close to testing its 200-day moving average. Euro zone inflation data and U.S. core personal consumption expenditure - the Fed's preferred inflation gauge - are due later in the day.

LONDON, March 31 (Reuters) - Britain's digital banks will need support over the next few weeks and months to help them cope with the market fallout from the collapse of Silicon Valley Bank, a trade body representing UK fintechs said on Friday. A neobank, or digital bank, is a bank whose services are accessed via an app or website as opposed to having physical branches. He said that challenger banks - lenders which are usually smaller and newer than the big high-street banks - in Britain could be at risk. Hirt said that Innovate Finance has been offering "close support" to challenger banks to help them navigate the "turbulence" in the sector. BoE governor Andrew Bailey told lawmakers this week that the central bank was on alert amid the global turmoil, but added that Britain was not experiencing stress linked to the demise of Silicon Valley Bank.

☆ San Francisco Fed leader Daly likely not a major player in SVB saga, officials say
▼ + stars: | 2023-03-31 | by ( Steve Liesman | ) www.cnbc.com time to read: +5 min

"She was not in the chain of command," one former Fed bank president told CNBC. "Supervisory action taken by the San Francisco Fed staff would have been cleared by Washington." Daly and Fed board officials declined to comment for this report. San Francisco Federal Reserve President Mary Daly reacts at the Los Angeles World Affairs Council Town Hall, Los Angeles, California, U.S., October 15, 2019. A review of what went wrong will likely point more heavily to Washington, its supervisory bureaucracy and the board leadership than to San Francisco.

☆ First quarter 'dash for cash' largest since early 2020 -BofA
▼ + stars: | 2023-03-31 | by ( ) www.reuters.com time to read: +1 min

Flows into cash of $60.1 billion in the week to Wednesday were down from $142.9 billion the previous week, but the quarterly dash for cash was the biggest since the first quarter of 2020, BofA said on Friday, citing data from EPFR. Markets have gyrated wildly this month following the collapse of U.S. regional lenders Silicon Valley Bank and Signature Bank and Europe's Credit Suisse (CSGN.S). "Panic, flush, unwind, then Fed blinked and off we rally into April," BofA said in the report. If year-to-date inflows of $37.4 billion continue at the same pace through 2023, it would be the largest annual inflow on record. For the week to Wednesday, gold funds attracted a net $500 million, and bond funds a net $2.3 billion.

☆ Gold set for best month since July 2020 on banking turbulence
▼ + stars: | 2023-03-31 | by ( ) www.cnbc.com time to read: +2 min

Gold prices edged up on Friday, en route to their best monthly performance since July 2020, as the recent banking system crisis led to expectations of a less-aggressive U.S. Federal Reserve, making bullion an attractive bet. Bullion was also set for a second consecutive quarterly gain, up 8.6% so far. The dollar was on track for a second consecutive quarterly loss, making bullion cheaper for overseas buyers. Gold rose above the $2,000 mark after the sudden collapse of two U.S. regional lenders earlier this month, which led to bets that the Fed might pause hiking rates to avoid a wider fallout from the global banking system turmoil. Although gold is considered a hedge against economic uncertainties, higher rates tend to dull zero-yielding bullion's appeal.

☆ Want to watch MLB games? Making sense of the confusing TV and streaming landscape
▼ + stars: | 2023-03-30 | by ( Lillian Rizzo | ) www.cnbc.com time to read: +4 min

Home base planFor the baseball fan looking to watch as many games as possible, a traditional pay TV service is still the go-to place. Discovery' s TBS, as well as Fox Corp. 's broadcast and pay TV networks, take up a decent chunk of the schedule. However, as more options are introduced, regional sports networks are getting fewer games and fans have to pay more to watch all games. With a higher rate of consumers dropping pay TV bundles and opting for streaming services, many networks have created direct-to-consumer streaming app options. Few offset the pay TV losses, but at least provide an option for fans wanting to stream.

☆ Morning Bid: World markets leaving March like a lamb
▼ + stars: | 2023-03-30 | by ( ) www.reuters.com time to read: +4 min

A look at the day ahead in U.S. and global markets from Mike DolanIn like a lion, out like a lamb. Farmers' almanacs suggest a stormy and turbulent start to March means it's likely to end calm and serene - and so it appears with world financial markets this year. The evidence is sketchy so far and the impact on lending and credit generally will be examined forensically from here. That U-turn in thinking during the month saw wild swings in the bond and rates markets, where key volatility gauges (.MOVE) hit their highest since the 2008 crash. (.CESIUSD)Elsewhere, European markets continued to advance on Thursday, with banking stocks (.SX7P) up another 2% and credit default swaps on many banks lower too.

☆ Apollo assures investors deposit flight won't spill over to Athene
▼ + stars: | 2023-03-30 | by ( Chibuike Oguh | ) www.reuters.com time to read: +5 min

Reuters GraphicsIn a quarterly update to shareholders published on March 13, Apollo outlined how Athene's funding model is different than a bank's. In the wake of the banking crisis, however, Apollo has been fielding questions from analysts and investors about Athene's funding model. Following a meeting with Apollo executives, Hone wrote in a note last week that he does not anticipate a spike in withdrawals from Athene's annuity holders and that Athene's funding base was stable. Apollo said in its March 13 presentation to investors that it had seen inflows of $8.8 billion to Athene from the start of the year to March 10. Questions from investors and analysts to Apollo have focused on this subset of annuity policies that have a potentially higher flight risk.

☆ Corporate agitator Ackman tells US to raise FDIC insurance limit to shore up confidence
▼ + stars: | 2023-03-29 | by ( Svea Herbst-Bayliss | ) www.reuters.com time to read: +2 min

NEW YORK, March 29 (Reuters) - Billionaire investor William Ackman who spent years telling corporations how to perform better is now taking on the U.S. government by calling for higher insurance limits to safeguard the banking system at the height of a banking crisis. Ackman, who runs hedge fund Pershing Square Capital Management, sent a letter to his investors saying the FDIC should raise its $250,000 per account limit days after U.S. regulators took over Silicon Valley Bank and Signature Bank, triggering a crisis in U.S. regional banks. In his annual letter to shareholders he amplified a message he has been blasting for days on Twitter. "Banking is a confidence sensitive business," and regulators' conflicting public statements have "reduced investor, business, and consumer confidence in our banking system" he wrote. Ackman's investment firm's Pershing Square Holdings portfolio has returned 25.1% per year over the last five years, handily beating its broader stock market index which gained 9.4% a year during the same time.

Two-year yields have risen from a seven-month intraday low of 3.555% last Friday as Treasuries rallied on safe-haven buying. "Some of the banks there were in the spotlight, their stock prices are starting to at least stabilize," said Sameer Samana, senior global market strategist at Wells Fargo Investment Institute in Charlotte, North Carolina. The U.S. regional KBW bank index (.BKX) has tumbled about 25% this month, but has gained about 3.8% this week as tensions eased. Worries over inflation have prompted investors to reassess their expectations for monetary policy from a number of major central banks, including the Fed and European Central Bank. Oil edged lower in choppy trading as investors looked to pocket profits from two straight days of gains, and as markets debated supply tightness.

☆ Shares rise as bank support emboldens investors
▼ + stars: | 2023-03-29 | by ( Amanda Cooper | ) www.reuters.com time to read: +5 min

The sale of assets in Silicon Valley Bank (SVB), the regional lender that collapsed earlier this month, has helped prop up investor risk appetite. The MSCI All-World index (.MIWD00000PUS) rose 0.3% while European shares (.STOXX) gained 0.92%, thanks in part to a rise in bank shares after UBS (UBSG.S) said it would rehire Sergio Ermotti to lead the company after its takeover of Credit Suisse (CSGN.S). The U.S. regional KBW bank index (.BKX) has fallen 3.3% in the last week, but is still above its recent six-week lows. Worries over inflation have prompted investors to reassess their expectations for monetary policy from a number of major central banks, including the European Central Bank and the Federal Reserve. The dollar index, which measures the performance of the U.S. currency against six others, was roughly flat on the day at 102.46.

☆ Asian stocks rally as bank jitters calm, Alibaba lifts mood
▼ + stars: | 2023-03-29 | by ( Ankur Banerjee | ) www.reuters.com time to read: +4 min

Alibaba's Hong Kong shares (9988.HK) shot up 15%, while the company's U.S.-listed shares closed 14.3% higher. The news lifted investor confidence in the wider Chinese tech sector, with shares of Alibaba's e-commerce rival JD.com Inc (9618.HK) 7% higher, and gaming giant Tencent Holdings Ltd (0700.HK) jumping 5%. "Alibaba's split may pave the way for other Chinese tech giants to do similar," CMC Markets analyst Tina Teng said. "This helps break down the monopolistic power of these conglomerates, which complies with the Chinese government's regulatory overhaul over antitrust issues." Futures indicated European stocks were set to open higher, with Eurostoxx 50 futures up 0.41%, German DAX futures up 0.38% and FTSE futures up 0.08%.

☆ Asian stocks rally as banking anxiety eases; Alibaba surges
▼ + stars: | 2023-03-29 | by ( Ankur Banerjee | ) www.reuters.com time to read: +4 min

MSCI's broadest index of Asia-Pacific shares outside Japan (.MIAPJ0000PUS) was 0.82% higher, while Japan's Nikkei (.N225) advanced 0.49%. Hong Kong's Hang Seng index surged over 2%, buoyed by Alibaba (9988.HK) after the Chinese e-commerce conglomerate announced its break-up plans. Alibaba's Hong Kong shares (9988.HK) shot up 15%, while the company's U.S.-listed shares closed 14.3% higher. Worries over inflation have prompted investors to recalculate what they expect the Fed to do in its next meeting in May. In the foreign exchange markets, the dollar index , which measures the U.S. currency against six peers, was mostly flat, having eased 0.3% overnight on improving risk appetite.

Wall Street posted solid gains on Wednesday as volatility slumped to its lowest since the U.S. banking tremors were first felt three weeks ago. While bond yields inched up, bond market volatility also fell and fixed income markets were pretty calm. The rate-sensitive Nasdaq jumped 1.8% for its best day in two weeks, boosted by positive tech company outlooks. The MSCI World financials index is now up three days in a row and the U.S. regional banking index has risen for four straight days, neither of which have been recorded since January. They do not reflect the views of Reuters News, which, under the Trust Principles, is committed to integrity, independence, and freedom from bias.

☆ US pending home sales rise for third straight month; loan demand increases
▼ + stars: | 2023-03-29 | by ( Lucia Mutikani | ) www.reuters.com time to read: +3 min

WASHINGTON, March 29 (Reuters) - Contracts to buy U.S. previously owned homes increased for a third straight month in February, raising cautious optimism that the housing market slump could be bottoming out. Economists polled by Reuters had forecast contracts, which become sales after a month or two, would fall 2.3%. The surprise increase occurred despite a rise in mortgage rates from early February through early March, according to data from mortgage finance agency Freddie Mac. Before the recent rise, mortgage rates had mostly been on the decline since November. The housing market outlook is, however, uncertain because the financial market stress has caused banks to tighten lending standards, which could make it harder for prospective homebuyers to borrow.

☆ UK stocks climb as banks, export-focused companies rise
▼ + stars: | 2023-03-29 | by ( ) www.reuters.com time to read: +1 min

SummarySummary Companies FTSE 100 up 0.3%, FTSE 250 adds 0.3%March 29 (Reuters) - UK stocks edged higher on Wednesday, supported by gains in banks amid easing fears of a financial sector meltdown, while shares of export-focused energy and materials companies gained as the pound weakened. The exporters-heavy FTSE 100 (.FTSE) rose 0.3% as the pound slipped 0.2% . Industrial metals (.FTNMX551020) and precious metals (.FTNMX551030) miners rose 0.1% and 0.5%, respectively. Late on Tuesday, John Glen, chief secretary to the UK Treasury, told Reuters that Britain's banks had not seen deposit outflows in reaction to the failures of U.S. regional lenders. Shares of UK lenders (.FTNMX301010) gained 0.7%.

☆ Morning Bid: Bank calm, rates firm, Alibaba steals show
▼ + stars: | 2023-03-29 | by ( ) www.reuters.com time to read: +4 min

A semblance of calm has returned to world markets in the final week of the first quarter as the banking storm abates and the spotlight switched to a share-boosting six-way revamp of Chinese e-commerce giant Alibaba. Investors cheered the surprise move from Alibaba (9988.HK) as a sign Beijing's corporate crackdown may be nearing an end, sending shares of the Jack Ma-founded firm and peers soaring. The surprise move seeks to take advantage of Ermotti's experience rebuilding the bank after the global financial crisis 15 years ago. Broader stock markets were higher across the board, with Wall St futures up almost 1% ahead of the open. Futures markets now show a 50-50 chance of one more Fed rate hike in this cycle in May and half a point of easing by yearend.

☆ Stock futures are little changed as investors come off winning day: Live updates
▼ + stars: | 2023-03-29 | by ( Alex Harring | ) www.cnbc.com time to read: +1 min

Traders work on the floor of the New York Stock Exchange (NYSE) on February 27, 2023 in New York City. Stock futures were little changed Wednesday night. S&P 500 futures and Nasdaq-100 futures were also near their flatlines. Regional banks, closely followed since Silicon Valley Bank's collapse earlier this month, also finished the session higher, with the SPDR S&P Regional Banking ETF (KRE) adding around 1%. Boston Federal Reserve President Susan Collins, Richmond Fed President Thomas Barkin and Minneapolis Fed President Neel Kashkari are all slated to speak in the afternoon.

☆ Europe banks can lose 38% of deposits before having to sell assets at a loss-research
▼ + stars: | 2023-03-29 | by ( ) www.reuters.com time to read: +2 min

MILAN, March 29 (Reuters) - The average European bank could withstand a loss of 38% of its deposits without having to sell at a loss government bond holdings or have a fire sale of illiquid assets, Jefferies analysts said. "Most investor discussions end up at deposit flight risk and the extent to which this can be offset," it added. But investors are worried about the risk that banks may at some point be forced to sell their HTM securities. Jefferies analysed the ability of banks to quickly cover deposit outflows with minimal or no losses, against the level of retail deposits, which comprise 63% of the median bank's deposit base. Following are the results of Jefferies' liquidity analysis:Jefferies liquidity analysis of EMEA banksReporting by Valentina Za and Iain Whithers.

☆ Analysis: Investors seek value in clobbered U.S. regional bank shares
▼ + stars: | 2023-03-28 | by ( David Randall | ) www.reuters.com time to read: +4 min

The ETF has slumped nearly 26% since March 8, when SVB's troubles became known, while the S&P Regional Banks Select Industry Index (.SPSIRBK) is down around 23%. Concerns over deposit flight are still swirling around some regional banks. He owns shares of large regional banks including Citizens Financial Group Inc (CFG.N), which have fallen about 22% so far this year, and US Bancorp (USB.N), which are down some 18%. Margie Patel, a senior portfolio manager at Allspring Global Investments, has been adding new positions in regional banks over the last few weeks, citing "value." Regional banks "need positive news that shows their deposits are holding firm or growing," said Rick Meckler, a partner at family office Cherry Lane Investments.

☆ Why the struggles of mid-sized US banks could be bad news for the Main Street economy
▼ + stars: | 2023-03-28 | by ( Carla Mozée | ) www.businessinsider.com time to read: +6 min

Households and businesses may find it harder to get loans from regional banks as people pull deposits from those lenders. "The greatest vulnerabilities with respect to credit creation going forward lie with non-mortgage bank lending to households and mortgage bank lending for non-financial non-corporate businesses," JPMorgan said. Regional banks are "very important" to the financial system, CFRA's Yokum said. Regional banks can potentially give better service, more customized products, potentially higher deposit rates," he said. Some hefty figures illustrate the "disproportionately large" role small banks hold in lending in the US.

☆ Bank of England says it is on alert after turmoil in banking sector
▼ + stars: | 2023-03-28 | by ( ) www.reuters.com time to read: +1 min

LONDON, March 28 (Reuters) - Top Bank of England officials said on Tuesday the central bank was on alert amid global turmoil in the banking sector but they also said Britain was not experiencing stress linked to the demise of Silicon Valley Bank and Credit Suisse. "I don't think that any, and we've said this, that any of these features cause stress in the UK banking system," BoE Governor Andrew Bailey told parliament's Treasury Committee. "This is why we have to remain incredibly vigilant," Deputy BoE Governor Dave Ramsden said. "We'll keep a close eye on bank funding costs, what the consequences of those could be for households and businesses, equally looking out for other risk factors, we have to remain incredibly vigilant." Bailey said the recent swings in the share prices of some banks showed investors were testing the sector.

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