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☆ UBS to take over Credit Suisse, central banks act on liquidity
▼ + stars: | 2023-03-19 | by ( Reuters Staff | ) www.reuters.com time to read: +13 min

LONDON/NEW YORK (Reuters) -UBS sealed a deal to buy rival Swiss bank Credit Suisse in an effort to avoid further market-shaking turmoil in global banking, Swiss authorities said on Sunday. FILE PHOTO: The logo of Credit Suisse is pictured in front of the Swiss Parliament Building, in Bern, Switzerland, March 19, 2023. The reports that UBS is acquiring Credit Suisse will likely magnify Credit Suisse’s problems by moving them to UBS... The Credit Suisse issues are not new and needed to be resolved years ago. A legal challenge by Credit Suisse shareholders, who will claim that their property has been illegally confiscated, is guaranteed.

☆ Dow futures rise more than 100 points after UBS buys Credit Suisse to stem bank crisis: Live updates
▼ + stars: | 2023-03-19 | by ( Hakyung Kim | ) www.cnbc.com time to read: +3 min

S&P 500 futures and Nasdaq-100 futures climbed 0.3%. UBS agreed to buy Credit Suisse for 3 billion Swiss francs, or $3.2 billion, with the combined bank to have $5 trillion in assets. But traders may be anxious for more to be done by regulators to stem the slide in regional banks. The SPDR Regional Banking ETF (KRE) tumbled 14% last week. "I think there's there's been an overreaction to the regional banks ... And that likely represents an opportunity," said Hogan.

☆ Fed and other central banks try to head off crisis by boosting flow of dollars
▼ + stars: | 2023-03-19 | by ( Mark Thompson | ) edition.cnn.com time to read: +3 min

Credit Suisse — one of the 30 most important banks in the global financial system — was bleeding money last week after investor and customer confidence collapsed. Swap lines are agreements between two central banks to exchange currencies. They allow a central bank to obtain foreign currency from the central bank that issues it, and distribute it to commercial banks in their country. During the global financial crisis of 2008 following the collapse of Lehman Brothers, funding markets dried up because of an extreme aversion to risk. From Monday through at least the end of April, the Fed and other central banks will make dollars available on a daily basis, rather than weekly.

☆ Fed, other central banks set joint liquidity operation
▼ + stars: | 2023-03-19 | by ( ) www.reuters.com time to read: +1 min

March 19 (Reuters) - The U.S. Federal Reserve on Sunday said it had joined with the Bank of Canada, Bank of England, Bank of Japan, European Central Bank and Swiss National Bank in a coordinated action to enhance the provision of liquidity through the standing U.S. dollar swap line arrangements. The move came on the heels of a deal brokered by Swiss authorities to have UBS UBSG.S buy rival Swiss bank Credit Suisse CSGN.S to prevent its disorderly collapse and signals the depth of concern central bankers have over the recent turmoil in the financial system on both sides of the Atlantic. "To improve the swap lines’ effectiveness in providing U.S. dollar funding, the central banks currently offering U.S. dollar operations have agreed to increase the frequency of seven-day maturity operations from weekly to daily," the Fed said in a statement issued alongside announcements from the other five central banks. Operations will commence on Monday and will continue at least through the end of April, the Fed said. Reporting By Dan Burns; editing by Diane CraftOur Standards: The Thomson Reuters Trust Principles.

☆ Bank of England to start repo operations at 0815 GMT on Monday
▼ + stars: | 2023-03-19 | by ( ) www.reuters.com time to read: 1 min

LONDON, March 19 (Reuters) - The Bank of England said it would hold the first of its new, daily seven-day maturity repo operations - part of a global central bank response to the crisis at Credit Suisse - at 0815 GMT on Monday. The BoE along with the Bank of Canada, the Bank of Japan, the European Central Bank, the Federal Reserve and the Swiss National Bank said jointly on Sunday they would enhance liquidity provision via new standing U.S. dollar liquidity swap lines. Reporting by William SchombergOur Standards: The Thomson Reuters Trust Principles.

A 25 basis-point rise would take Bank Rate to 4.25%, where most economists said it would stay for at least a year. But investors have turned more doubtful about the BoE's appetite for more rate hikes in recent days amid mounting anxieties about the global banking sector. Interest rate futures on Friday showed traders were putting a roughly 50-50 chance on the BoE maintaining Bank Rate at 4% next week. Investors expect a 25 basis-point rate hike from the U.S. Federal Reserve on Wednesday, a day before the BoE's announcement. Forty-two of 47 economists polled by Reuters between March 13-16 expected the BoE to announce a 25 basis-point hike, hold Bank Rate at 4.25% for at least year and then lower it.

☆ ECB goes big on rates but bank turmoil clouds central banks' outlook
▼ + stars: | 2023-03-16 | by ( ) www.reuters.com time to read: +5 min

Overall, 10 big developed economies have raised rates by a combined 3,165 basis points (bps) in this cycle to date. Reuters Graphics3) CANADAThe Bank of Canada on March 8 became the first major central bank to halt monetary tightening during this cycle. Reuters Graphics6) NORWAYNorway's central bank meets next week and is expected to raise rates by 25 bps to contain above-target inflation. Reuters Graphics10) JAPANThe Bank of Japan, the most dovish major global central bank, maintained ultra-low interest rates at its March meeting, the final one for retiring BOJ governor Haruhiko Kuroda. The BOJ resisted changing its controversial yield curve control policy, which it uses to cap interest rates on longer-term debt.

☆ First Republic just got a $30 billion lifeline from JPMorgan and other Wall Street giants. Here's why its problems aren't over.
▼ + stars: | 2023-03-16 | by ( Hayley Cuccinello | ) www.businessinsider.com time to read: +5 min

JPMorgan and 10 other banks are depositing $30 billion in First Republic Bank. A white knight has arrived to First Republic Bank's rescue. A consortium of America's biggest banks including JPMorgan Chase, Morgan Stanley, and Goldman Sachs are depositing a collective $30 billion in First Republic. This $30 billion lifeline may not be enough to reassure investors and depositors, and it may be a stopgap measure before a sale. The $70 billion lifeline from JPMorgan announced on Sunday did little to quell investors' concerns, Dahiya noted.

☆ Canada should support startups after SVB collapse, says lobby group
▼ + stars: | 2023-03-16 | by ( ) www.reuters.com time to read: +2 min

TORONTO, March 16 (Reuters) - A lobby group for Canada's venture capital and private equity funds is asking Prime Minister Justin Trudeau's government to provide emergency financing to help startups hit by the collapse of Silicon Valley Bank (SVB), according to a letter seen by Reuters on Thursday. Spokespeople for Ng and Finance Minister Chrystia Freeland's office could not immediately be reached for comment. Reuters reported on Monday that the sudden collapse of SVB could choke funding for Canada's technology start-ups and place them in the hands of domestic lenders who may be more selective. The letter also asked the government to instruct the Business Development Bank of Canada to deploy a bridge financing program similar to the one used at the outset of the COVID-19 pandemic. ($1 = 1.3755 Canadian dollars)Reporting by Maiya Keidan, additional reporting by David Ljunggren; Editing by Josie KaoOur Standards: The Thomson Reuters Trust Principles.

☆ Zara owner Inditex sees 2023 sales keep pace, but capex plans disappoint
▼ + stars: | 2023-03-15 | by ( Corina Pons | ) www.reuters.com time to read: +2 min

In-store and online sales for the world's biggest fashion retailer rose 18% to 32.6 billion euros ($34.99 billion) from 2021 and were 15% higher than in 2019, before the pandemic hit. The pace of sales continued in the first six weeks of Inditex's current fiscal year to Jan. 31, 2024. Between Feb. 1 and March 13, Inditex said sales jumped by 13.5% from the same period a year earlier. Excluding Russia, where Inditex stores have been closed since the Ukraine conflict started just over a year ago, sales in that period increased by 17.5% in constant currency terms. But Inditex surprised investors with a hike in capital expenditure to 1.6 billion euros from 1.1 billion euros in the previous year, a higher level than expected by the market.

☆ Zara owner Inditex's profit jumps in Marta Ortega's first year in charge
▼ + stars: | 2023-03-15 | by ( Corina Pons | ) www.reuters.com time to read: +2 min

MADRID, March 15 (Reuters) - Zara owner Inditex (ITX.MC) on Wednesday posted a 27% increase in net profits in 2022 as sales exceeded pre-pandemic levels in the first full year since Marta Ortega, daughter of founder Amancio Ortega, took over as company chair. Between Feb. 1 and March 13, Inditex said its sales jumped by 13.5% from the same period a year earlier. The 2022 revenues were in line with analysts' expectations as the company benefited from shoppers' appetite for fashion as COVID-19 lockdowns ended. The results may also lessen investor doubts about Marta Ortega succeeding the veteran Pablo Isla as non-executive chair in April, in a generational handover that began a decade ago when her father retired. Also on Wednesday, rival H&M (HMb.ST) reported a 12% increase in net sales for its December-February period.

☆ Tech pressure, Yellen everywhere: How Washington scrambled as SVB collapsed
▼ + stars: | 2023-03-15 | by ( Andrea Shalal | ) www.reuters.com time to read: +7 min

Yellen heads to the White House, Brainard meets with her staff and holds Zoom calls in her wood-paneled office in the West Wing. Treasury staff hustle to get Yellen on CBS News' "Face the Nation" program on Sunday, in an attempt to reassure markets. White House officials draft news releases with various scenarios, uncertain until shortly before 6 p.m. if an acquisition can still happen. As he leaves Delaware to return to the White House, Biden tells reporters he will make a statement on Monday. Treasury and White House officials reach out to members of Congress and their staffs throughout the evening to explain the plan, with discussions continuing into Monday.

☆ Zara owner Inditex's profit jump in first year with Marta Ortega at helm
▼ + stars: | 2023-03-15 | by ( ) www.cnbc.com time to read: +1 min

Zara owner Inditex on Wednesday posted a 27% net profit increase in 2022 as sales exceeded pre-pandemic levels in the first full year since Marta Ortega, daughter of founder Amancio Ortega, took over at the helm of the company. In-store and online sales for the world's biggest fashion retailer reached 32.6 billion euros ($34.99 billion), 18% more than the 27.71 billion euros posted last year and 15% higher than in 2019, before the pandemic hit. The company net income soared to 4.1 billion euros ($4.40 billion). The fashion giant revenues were in line with what analysts expected as the company benefited from shoppers' appetite for fashion in the post-Covid period. Inditex's strong results will appease initial investor concerns about Marta Ortega succeeding the veteran Pablo Isla as non-executive chair in April, in a generational handover that began a decade ago when her father retired.

Shares in H&M were down 6% in early trade, underperforming the wider Swedish market (.OMXSPI). The Swedish group said sales measured in local currencies for the period, its fiscal first quarter, rose 3% from a year earlier. Jefferies said local-currency sales, the figures most watched by markets, were significantly lighter than consensus estimates and implied that sales in reality fell 3% in February. By contrast, market leader Inditex (ITX.MC) reported on Wednesday a 13.5% increase in Feb. 1 - March 13 sales and a 27% net profit increase for its fiscal year through January. Royal Bank of Canada (RBC) said it expected continued input cost increases in the first quarter for the retailer and that it would stay under pressure into the second quarter.

☆ Analysis: Sweden faces recession as housing market troubles take toll on economy
▼ + stars: | 2023-03-15 | by ( Simon Johnson | ) www.reuters.com time to read: +6 min

But in Sweden, the structural problems rooted in its housing market are magnifying the effects. Banking group Nordea (NDAFI.HE) expects household consumption to fall around 2% in 2023, while the National Board of Housing expects housing starts to fall around 50% in the coming year compared with 2021. "However, in the last few months, the interest rate has almost tripled making it almost unaffordable to survive," Logan said. Sweden's banks are among the most strongly capitalised in Europe - partly as a result of worries about the housing market. But Sweden's economy is likely to remain a hostage to imbalances in the housing market while its structural problems go unresolved.

TORONTO, March 13 (Reuters) - Last week's sudden collapse of Silicon Valley Bank (SVB) could choke funding for Canada's technology start-ups and place them in the hands of domestic lenders who may be more selective in financing new ventures, financiers told Reuters. Companies including Shopify Inc (SHOP.TO) were examples of Canada's tech success story, which helped pull more investments into the sector. Benjamin Bergen, president at Council of Canadian Innovators, a lobby group for Canadian technology companies, agreed. "Before SVB went down, accessing capital was increasingly becoming tighter and tighter for Canadians for startups for scale ups," he said. Aside from the banks, the federal government also has a Venture Capital Catalyst Initiative program that invests in promising Canadian technology companies.

☆ JPMorgan, PNC among suitors for SVB Financial in deal excluding SVB Bank - Axios
▼ + stars: | 2023-03-13 | by ( ) www.reuters.com time to read: +1 min

March 13 (Reuters) - JPMorgan Chase & Co (JPM.N) and PNC Financial Service Group Inc (PNC.N) are among those in talks about acquiring SVB Financial Group (SIVB.O) in a deal that would exclude its commercial banking unit Silicon Valley Bank that is currently under U.S. control, Axios reported on Monday citing sources. Apollo Management (APO.N) and Morgan Stanley (MS.N) are also part of the discussions, Axios reported, adding Apollo was interested in financing a deal or acquiring some of the business. Reuters reported on Sunday that Silicon Valley Bank had received interest from PNC and Royal Bank of Canada (RY.TO) but that had cooled on Sunday as U.S. regulators invited bids for the failed lender. The U.S. Federal Deposit Insurance Corporation (FDIC) had given a Sunday afternoon deadline for bids for the failed Silicon Valley Bank, Reuters reported. Reporting by Lavanya Ahire in Bengaluru; Editing by Savio D'SouzaOur Standards: The Thomson Reuters Trust Principles.

☆ JPMorgan among suitors for SVB Financial in deal excluding SVB Bank- Axios
▼ + stars: | 2023-03-13 | by ( ) www.reuters.com time to read: +1 min

March 13 (Reuters) - JPMorgan Chase & Co (JPM.N) is in talks to acquire SVB Financial Group (SIVB.O) in a deal that would exclude commercial banking unit Silicon Valley Bank, which is currently under U.S. control, Axios reported on Monday, citing sources. PNC Financial Services Group Inc (PNC.N), Apollo Management (APO.N) and Morgan Stanley (MS.N) are also in talks with the defunct lender, Axios reported, adding Apollo was interested in financing a deal or acquiring some of the business. A PNC spokesperson told Reuters that it was "not in talks to acquire SVB Financial or Silicon Valley Bank," while the other companies did not respond to requests for comment. Reuters reported on Sunday that Silicon Valley Bank had received interest from PNC and Royal Bank of Canada (RY.TO) but that had cooled on Sunday as U.S. regulators invited bids for the failed lender. The U.S. Federal Deposit Insurance Corporation (FDIC) had given a Sunday afternoon deadline for bids for the failed Silicon Valley Bank, Reuters reported.

☆ Exclusive: PNC, RBC interest in SVB cools as regulators seek rescue bids
▼ + stars: | 2023-03-12 | by ( ) www.reuters.com time to read: +2 min

[1/3] A man puts a sign on the door of the Silicon Valley Bank as an onlooker watches at the bank’s headquarters in Santa Clara, California, U.S. March 10, 2023. The Federal Deposit Insurance Corporation (FDIC) had given a Sunday afternoon deadline for bids for the failed bank, one of the sources said. PNC, one of the 10 largest U.S. banks by assets, wanted to pursue a bid for the entirety of Silicon Valley Bank, one of the sources added, but then studied a bid for parts of Silicon Valley Bank. RBC also explored a takeover of Silicon Valley Bank but it was unlikely to pursue it, three sources said. U.S. Treasury Secretary Janet Yellen on Sunday ruled out a government bailout of Silicon Valley Bank and said she was working with regulators to find a solution.

☆ Canada gains 21,800 jobs in February, jobless rate holds at 5.0%
▼ + stars: | 2023-03-10 | by ( ) www.reuters.com time to read: +1 min

OTTAWA, March 10 (Reuters) - The Canadian economy gained a net 21,800 jobs in February, exceeding analyst forecasts, while the jobless rate also unexpectedly held steady at 5.0%, Statistics Canada data showed on Friday. Analysts surveyed by Reuters had forecast a net gain of 10,000 jobs and for the unemployment rate to edge up to 5.1%. The services sector added a net 4,200 jobs, helped by the gains in health care and public administration, while employment in the goods sector increased by a net 17,500 jobs, led by utilities and manufacturing sectors. The Canadian dollar strengthened to 1.3787 per U.S. dollar after jobs data, up 0.3% on the day. Reporting by Ismail Shakil and Dale Smith in Ottawa; editing by Jason Neely and John StonestreetOur Standards: The Thomson Reuters Trust Principles.

☆ TSX set for worst week in five months as rate hike worries mount
▼ + stars: | 2023-03-10 | by ( Johann M Cherian | ) www.reuters.com time to read: +2 min

ET (1527 GMT), the Toronto Stock Exchange's S&P/TSX composite index (.GSPTSE) was down 132.38 points, or 0.66%, at 19,954.34. The rate-sensitive financials sector (.SPTTFS) slumped 1.4% to a two-month low, while banks (.GSPTXBA) fell 1.3%. Across the border, U.S. stock indexes fell on a selloff in bank shares after SVB Financial's efforts to raise capital sparked worries about the sector's health. Among company news, Bank of Montreal (BMO.TO) shed 1.2% after it said it would acquire Loyalty Ventures' (LYLT.O) subsidiary's rewards program AIR MILES for an undisclosed amount. Loyalty Ventures fell 54.2% in U.S. trading.

☆ Asian shares stutter, dollar buoyant as data supports hawkish Powell
▼ + stars: | 2023-03-09 | by ( Stella Qiu | ) www.reuters.com time to read: +5 min

MSCI's broadest index of Asia-Pacific shares outside Japan (.MIAPJ0000PUS) eased 0.2% on Thursday, extending a drop of 1.4% the previous session. S&P 500 futures eased 0.1% and Nasdaq futures were off 0.3%Inflation data out of China showed on Thursday that domestic demand still remained tepid. The U.S. dollar index, measuring the greenback's value against a basket of major peers, hovered close to a three-month top at 105.6. The central bank on Wednesday left its key overnight interest rate on hold, becoming the first major central bank to suspend its monetary tightening campaign. On Thursday, the two-year Treasury yields held close to its 15 year highs at 5.0553%, while the benchmark 10-year yields were steady at 3.9775%.

☆ Morning Bid: Is China exporting deflation?
▼ + stars: | 2023-03-09 | by ( ) www.reuters.com time to read: +2 min

Relief wasn't immediate, as the figures were tinged by doubt on the robustness of China's consumption rebound, with inflation in the country also at its slowest in a year. That's likely welcomed since analysts are making their latest upward revisions to U.S. and European interest rate expectations and do not need another inflationary shock from China's reopening. European futures steadied in Asia as markets assumed a holding pattern with the focus on U.S. data as the driver of interest rate movement. The Bank of Japan concludes a two-day meeting on Friday, though it is increasingly dancing to its own beat. MSCI's broadest index of Asia-Pacific shares outside Japan fell 0.3%; Japanese stocks rose 0.6% on Thursday.

☆ Dollar towers on lingering effects of Powell's testimony
▼ + stars: | 2023-03-09 | by ( Rae Wee | ) www.reuters.com time to read: +3 min

In the second day of his testimony to Congress on Wednesday, Powell reaffirmed his hawkish message, though struck a cautious note that debate on the scale and path of future rate hikes was still underway and would be data-dependent. As a result, the U.S. dollar index , which measures the greenback against a basket of six peers, slipped 0.02% to 105.61. Conversely, the Bank of Canada on Wednesday left its key overnight interest rate on hold at 4.50%, becoming the first major central bank to suspend its monetary tightening campaign. The Canadian dollar stood at 1.3808 per U.S. dollar on Thursday, after having weakened to a more than four-month low in the previous session following the decision. Elsewhere, the kiwi rose 0.03% to $0.6107, having slumped to a near four-month low in the previous session.

☆ Bank of Canada says it needs more evidence that rates are high enough
▼ + stars: | 2023-03-09 | by ( ) www.reuters.com time to read: +2 min

By Steve Scherer and David LjunggrenOTTAWA, March 9 (Reuters) - The Bank of Canada needs more evidence to gauge if interest rates are high enough to tame inflation, in part because the economies of major trading partners are doing better than forecast, senior deputy governor Carolyn Rogers said on Thursday. She spoke a day after the central bank left its key overnight interest rate on hold at 4.50%, becoming the first major central bank to suspend its tightening campaign as inflation eases. "If evidence accumulates suggesting inflation may not decline in line with our forecast, we're prepared to do more." The economic growth and inflation outlooks for both the United States and Europe are higher than the bank had expected in January. (Additional reporting by Fergal Smith in Toronto)((Reuters Ottawa bureau; david.ljunggren@tr.com))Keywords: CANADA CENBANK/Our Standards: The Thomson Reuters Trust Principles.

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