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☆ Credit Suisse fears hit Toronto's main stock index
▼ + stars: | 2023-03-15 | by ( ) www.reuters.com time to read: +2 min

TORONTO, March 15 (Reuters) - Canada's main stock index fell 1.6% on Wednesday, dragged down by energy and financial stocks as Credit Suisse spooked world markets, renewing concerns of a banking crisis. By provisional close on Wednesday, the Toronto Stock Exchange's S&P/TSX composite index (.GSPTSE) was down 315.32 points at 19378.84, its worst day since December 2022. Canadian financial stocks (.SPTTFS) fell 1.9% on Wednesday, mirroring global financial stocks in falling once again, following a brief relief rally on Tuesday, as Credit Suisse (CSGN.S) hit a record low after the Swiss lender's biggest backer said it would not buy any more shares. Brent crude fell 4.1% to $74.26 a barrel. The Toronto market's industrials and utilities sectors escaped the losses on Wednesday, up 0.8% and 0.2% respectively.

☆ Oil slumps $5/bbl to lowest in more than a year as banking fears mount
▼ + stars: | 2023-03-15 | by ( Arathy Somasekhar | ) www.reuters.com time to read: +3 min

"Nobody wants to go home with a big position on anything today ... you have nowhere to hide really." Both crude benchmarks hit their lowest since December 2021 and have fallen for three straight days. U.S. West Texas Intermediate crude (WTI) was down $4.51, or 6.3%, at $66.84, breaking through technical levels of $70 and $68 and extending the sell off. Wednesday's monthly report from the International Energy Agency provided support by flagging an expected boost to oil demand from China, a day after OPEC increased its Chinese demand forecast for 2023. "We definitely have seen the oil market separate themselves from oil inventories and we’re more focused on a larger meltdown of the global economy," said Phil Flynn, an analyst at Price Futures Group.

[1/3] Switzerland's national flag flies above a logo of Swiss bank Credit Suisse in front of a branch office in Bern, Switzerland November 29, 2022. Reuters GraphicsThe STOXX 600 (.STOXX) index fell 1.29%, while Europe's broad FTSEurofirst 300 index (.FTEU3) fell 44.48 points, or 2.51%. "The Credit Suisse share price is falling and government bonds are rallying on the back of that. Markets are "spooked" by Credit Suisse headlines, said Richard McGuire, head of rates strategy at Rabobank in London. "For today Credit Suisse is the dish of the day but we don't think this will be a longer lasting trend," he said.

☆ Credit Suisse unease sparks selloff in world stocks
▼ + stars: | 2023-03-15 | by ( Dhara Ranasinghe | ) www.reuters.com time to read: +5 min

[1/3] Switzerland's national flag flies above a logo of Swiss bank Credit Suisse in front of a branch office in Bern, Switzerland November 29, 2022. Reuters GraphicsEurope's bank index has now seen more than 120 billion euros evaporate ($127.08 billion) in since March 8. "The Credit Suisse share price is falling and government bonds are rallying on the back of that. Markets are "spooked" by Credit Suisse headlines, said Richard McGuire, head of rates strategy at Rabobank in London. "For today Credit Suisse is the dish of the day but we don’t think this will be a longer lasting trend," he said.

☆ Oil slide resumes as banking fears offset China demand hopes
▼ + stars: | 2023-03-15 | by ( Alex Lawler | ) www.reuters.com time to read: +2 min

SummarySummary Companies Credit Suisse unease sparks global sell-offChinese economy shows signs of gradual recoveryChina reopening expected to boost oil demand -IEALONDON, March 15 (Reuters) - Oil extended losses on Wednesday with Brent crude hitting a three-month low as unease over Credit Suisse spooked world markets, offsetting hopes of a Chinese oil demand recovery. "Fears of contagion are clearly gaining traction," Tamas Varga of oil broker PVM told Reuters. "As a result, the dollar is stronger and equities are weakening - bad omens for oil." Wednesday's monthly report from the International Energy Agency provided support by flagging an expected boost to oil demand from China, a day after OPEC increased its Chinese demand forecast for 2023. Investors are now awaiting official U.S. oil inventory data later on Wednesday to see if it confirms the 1.2 million barrel rise in crude stocks reported on Tuesday by the American Petroleum Institute.

Credit Suisse's shares were trading down nearly 22% in Zurich on Wednesday, and the cost of buying insurance against the risk of a Credit Suisse default hit a new record high, according to S&P Global Market Intelligence. Customers withdrew billions from Credit Suisse last year, contributing to the bank’s biggest annual loss since the global financial crisis in 2008. On Tuesday, it acknowledged “material weakness” in its financial reporting and scrapped bonuses for top executives. Outflows from the bank had “significantly moderated” after customers withdrew 111 billion francs ($122 billion) in the three months to December, Körner added. Körner said the collapse of SVB was “somewhat of an isolated problem.” Credit Suisse follows “materially different and higher standards when it comes to capital funding, liquidity and so on,” he added.

☆ Stocks making the biggest moves midday: Credit Suisse, First Republic Bank, Halliburton and more
▼ + stars: | 2023-03-15 | by ( Samantha Subin | ) www.cnbc.com time to read: +3 min

Credit Suisse — Shares of Credit Suisse plunged 25% after its biggest backer, Saudi National Bank, said it won't provide the Swiss bank with further financial help. First Republic Bank — The regional bank stock tumbled 23%, giving back some of Tuesday's gains as turmoil at Credit Suisse rattled the broader sector and S&P Global Ratings downgraded its debt rating to BB+ from A-. U.S. banks — Major U.S. banks tumbled on Wednesday as unease over the latest crisis at Credit Suisse spooked some investors. Energy stocks — Major energy stocks took a hit as oil stooped to its lowest level in more than a year. New York Community Bancorp — The regional bank stock jumped more than 5%, bucking the broader sell-off trend in banking names.

☆ Unfairly swept up in Wednesday's sell-off, these stocks now look more attractive
▼ + stars: | 2023-03-15 | by ( Kevin Stankiewicz | ) www.cnbc.com time to read: +5 min

Another Club stock with defensive characteristics is Procter & Gamble (PG). The three companies have very little economic sensitivity, and our overarching reasons for owning them haven't changed: Eli Lilly for its innovative drug pipeline, J & J for its sterling balance sheet and upcoming breakup and Humana for the growth fueled by its retooled Medicare Advantage offering. Plus, their stocks have largely been out of favor in 2023, especially the drugmakers in Eli Lilly and J & J; shares of both companies are down more than 10% year to date. META 1Y mountain Meta Platforms (META) stock performance over the past 12 months. Meta shares rallied into the close, climbing 1.9%, to nearly $198 apiece.

☆ The CEO of Silicon Valley Bridge Bank is asking customers to return. But spooked Americans are moving billions out of smaller banks and into Wall Street giants.
▼ + stars: | 2023-03-15 | by ( Huileng Tan | ) www.businessinsider.com time to read: +3 min

The CEO of Silicon Valley Bridge Bank asked customers to move their money back to the bank. US depositors have been moving billions of dollars from smaller to larger banks, per Reuters. The bridge bank, which opened on Monday, is a new lender created by the Federal Deposit Insurance Corporation, which took over the deposits of the Silicon Valley Bank. His statements come just as US depositors are moving billions away from smaller banks after the collapse of Silicon Valley Bank and Signature Bank, New York, Reuters reported Tuesday. Both Silicon Valley Bank and Signature Bank, New York, experienced runs on deposits that led to their closures.

LONDON, March 15 (Reuters) - Central banks juggling inflation and financial stability mandates are prompting the wildest swings in bedrock government bonds for over a decade and a surge in volatility that may end up causing problems of its own. "The Fed and other central bankers have lost the luxury of focusing singularly on the fight against inflation," said Manulife Investment Management's Frances Donald. If the history of banking crashes and related credit crunches show them to be deflationary anyway, then many argue a central bank pause now may be the wisest choice. "The Fed is now fighting inflation as well as potential financial contagion," Lombard Odier Chief Investment Officer Stéphane Monier said. The first sign of regional bank stock calm on Tuesday, alongside the sticky core inflation readings for February, prompted a build-back of some bets for one last hike from each central bank.

In an interview with Bloomberg, the chairman of the Saudi National Bank said it would not increase its stake in Credit Suisse. The Saudi National Bank — which describes itself as the kingdom’s biggest bank — committed $1.5 billion of the $4 billion in new capital Credit Suisse raised to fund its overhaul. Credit Suisse declined to comment. Customers withdrew billions from Credit Suisse last year, contributing to the bank’s biggest annual loss since the global financial crisis in 2008. Körner said the collapse of SVB was “somewhat of an isolated problem.” Credit Suisse follows “materially different and higher standards when it comes to capital funding, liquidity and so on,” he added.

☆ This CEO halved her personal savings to meet payroll after SVB collapse: 'I don't really know yet what the repercussions will be'
▼ + stars: | 2023-03-15 | by ( Megan Sauer | ) www.cnbc.com time to read: +4 min

The Flex Co. CEO Lauren Schulte Wang and her husband took out half of their personal savings to fund employees' paychecks after SVB crashed. They withdrew half of the money in their personal savings account, and deposited it into a brand-new account set up last Friday. Wang and her husband are The Flex Company's co-founders, and serve as CEO and CFO, respectively. When Wang tried to transfer her company's money, which she says represented 100% of its liquid capital, the bank's website crashed. On Monday, the last of The Flex Company's 30,000-plus retail locations finally switched over to the new account.

☆ Most Gulf markets turn south as Credit Suisse woes roil markets
▼ + stars: | 2023-03-15 | by ( Ateeq Shariff | ) www.reuters.com time to read: +2 min

[1/2] Saudi woman walks at the Saudi stock market (Tadawul), in Riyadh, Saudi Arabia March 9, 2020. The lender lost almost $25 billion in market value since Oct. 27 after committing to invest in the embattled Credit Suisse. Oil — a key catalyst for the Gulf's financial markets —extended losses, with Brent crude hitting a three-month low as unease over Credit Suisse spooked world markets, offsetting hopes of a Chinese oil demand recovery. "At the same time, traders will remain attentive to the developments in global markets and central bank decisions this week and the next." Outside the Gulf, Egypt's blue-chip index (.EGX30) plunged 4.2%, with investment bank EFG Hermes (HRHO.CA) diving more than 12%.

☆ Silicon Valley Bank’s Fall Is a Passing Cloud Over Clean Energy
▼ + stars: | 2023-03-14 | by ( Jinjoo Lee | ) www.wsj.com time to read: 1 min

SVB made about $1.2 billion worth of project finance loans to U.S. renewable energy projects in 2022. Silicon Valley Bank’s fallout has clearly spooked some investors in clean energy stocks. How worried should they really be? Even after a rebound Tuesday, residential solar company Sunrun , battery-storage company Stem and fuel-cell manufacturer Bloom Energy are all down around 7% to 10% since SVB Financial proposed a capital raise on March 8. All three companies are previous or current clients of the bank.

☆ History of financial shocks shows this banking tumult could be a buying opportunity
▼ + stars: | 2023-03-14 | by ( Samantha Subin | ) www.cnbc.com time to read: +2 min

If history is any guide, financial events like the collapse of Silicon Valley Bank could present an attractive buying opportunity for investors in the months ahead. Data compiled by Deutsche Bank macro strategist Alan Ruskin tracking several major financial events in recent history shows that the S & P 500 has gained a median of 19% a year after those incidents. While the fallout from SVB's failure could present more problems than many recent financial events, the aftershocks should fall short of the havoc wreaked in the wake of 2008's financial crisis, he wrote in a Tuesday note. Despite the wreckage the failures brought to financial markets — and regional banking stocks — history shows that these incidents could present a good buying opportunity for investors, with interest rates typically declining in their wake. Aside from the 1987 stock market crash and 1994 Orange County bankruptcy, history also shows that these incidents can also result in good news for rates.

☆ EU power rejig may only solve tomorrow’s problem
▼ + stars: | 2023-03-14 | by ( Lisa Jucca | ) www.reuters.com time to read: +4 min

That would have risked stifling green electricity production, which is cheaper, by culling the profit margin producers by design enjoy in the EU structure. To make Europe less dependent on volatile fossil fuel prices requires installing more green energy power. The approach is not as market-friendly as fixed-price, subsidy-free power purchase agreements, which last year only made up 1% of total power generation. The risk of a resurgence of the European energy crisis, however, is all skewed to the near term. PPAs currently only cover 1% of total European Union electricity generation, according to data provider Independent Commodity Intelligence Services.

☆ SVB: What the worst bank failure since 2008 means for markets, the financial sector, and interest rates
▼ + stars: | 2023-03-14 | by ( Zahra Tayeb | ) www.businessinsider.com time to read: +8 min

Here's what SVB's sudden demise means for markets, the US banking sector, and interest rates. That capped a turbulent week that saw a botched fundraising attempt by Silicon Valley Bank (SVB) and a $1.8 billion loss on its bond holdings, which ultimately triggered an old-fashioned bank run. Silicon Valley Bank's collapse exposed a serious risk many banks face in their business portfolios – the dependence on uninsured deposits. However, former Treasury chief Larry Summers took a less pessimistic view, saying SVB's collapse was "unlikely to be a broadly systemic problem." But as bad as it is, it's unlikely to trigger a repeat of the 2008 global financial crisis that set the stage for the Great Recession, according to analysts.

☆ Investing in 2023 is 'definitely going to be rocky,' advisor says. How to stay the course
▼ + stars: | 2023-03-13 | by ( Lorie Konish | ) www.cnbc.com time to read: +3 min

In the latest example, the failure of Silicon Valley Bank rattled investors and sent stocks lower on Friday. By midday Monday, the markets had moved upwards, though certain bank stocks were still hurting. "This is going to be a great year, and it's definitely going to be rocky," Francis told CNBC.com in February. Likewise, grim market results in December were followed by some of the best upswings in decades in January. This is going to be a great year, and it's definitely going to be rocky.

☆ The Fed needs to stop raising rates now, former FDIC chair says after Silicon Valley Bank failure
▼ + stars: | 2023-03-13 | by ( Matt Egan | ) edition.cnn.com time to read: +3 min

Silicon Valley Bank is second only to Washington Mutual in terms of the biggest bank failures in US history. Those interest rate hikes have contributed to the collapse of Silicon Valley Bank in at least two key ways. First, higher borrowing costs rocked the frothy parts of the US economy, especially the tech industry that Silicon Valley Bank catered to. They panicked, yanking $42 billion last Thursday alone when Silicon Valley Bank’s stock crashed by 60%, according to filings by California regulators. By the close of business that day, Silicon Valley Bank had a negative cash balance of about $958 million.

☆ The bond market's recession warning has gotten more urgent
▼ + stars: | 2023-03-13 | by ( Patti Domm | In | ) www.cnbc.com time to read: +5 min

The bond market is sending a more urgent recession warning and also signaling that the Federal Reserve may have to pause raising interest rates — giving up its fight against inflation. The sharp move in the 2-year yield also resulted in a rapid steepening of the yield curve. "The steepening always starts to happen because the market expects the Fed to cut rates in response to that recession." DoubleLine Capital CEO Jeffrey Gundlach also said the "aggressively steepening" of the Treasury yield curve after inversion is "highly suggestive of imminent recession." The 2-year yield jumped above 5% after he spoke.

☆ Analysts raise one main concern with regional bank stocks: deposit flight
▼ + stars: | 2023-03-13 | by ( Jesse Pound | ) www.cnbc.com time to read: +4 min

The events of the past few days have shown that regional banks with large amounts of uninsured deposits, like SVB, and New York's Signature Bank, which was closed Sunday, are at risk of deposit flight. KRE 5D mountain Regional bank stocks were under pressure again on Monday after sliding last week. In the case of SVB, the bank had mostly large deposits from companies and wealthy individuals. That can make a bank run worse because smaller retail deposits are seen as more "sticky" than big uninsured accounts. "Unfortunately, one of the first consequences of SIVB's collapse is probably that it will cause a flight of uninsured deposits from smaller, less diverse banks to larger, more diverse ones.

☆ Why regulators seized Signature Bank in third-biggest bank failure in U.S. history
▼ + stars: | 2023-03-13 | by ( Hugh Son | ) www.cnbc.com time to read: +1 min

The Signature Bank headquarters at 565 Fifth Avenue in New York, US, on Sunday, March 12, 2023. On Friday, Signature Bank customers spooked by the sudden collapse of Silicon Valley Bank withdrew more than $10 billion in deposits, a board member told CNBC. That run on deposits quickly led to the third-largest bank failure in U.S. history. Signature had 40 branches, assets of $110.36 billion and deposits of $88.59 billion at the end of 2022, according to a regulatory filing. Venture capital investors and founders drained their Silicon Valley Bank accounts Thursday, leading to its seizure by midday Friday.

☆ Premarket stocks: From Wile E. Coyote to edibles: Recession forecasts are getting weird
▼ + stars: | 2023-03-13 | by ( Nicole Goodkind | ) edition.cnn.com time to read: +12 min

And for the US economy, it could likely mean a “Wile E. Coyote moment,” Summers said — if we run off the cliff, gravity will eventually win out. AntibioticsWhen describing the state of the economy, Summers doesn’t just rely on Looney Tunes. “Will working people be better off if we just walk away from our jobs and inflation remains 5% or 6%?” Powell replied. Before the Bell: Is it necessary to increase the unemployment rate to successfully fight inflation? In a related action, the government shut down Signature Bank, a regional bank that was teetering on the brink of collapse in recent days.

☆ Stablecoin USDC breaks dollar peg after firm reveals it has $3.3 billion in SVB exposure
▼ + stars: | 2023-03-11 | by ( Ashley Capoot | ) www.cnbc.com time to read: +1 min

USDC is known as a stablecoin, which means the value of the virtual currency is supposed to be pegged to a reference currency. USDC is designed to trade at $1, but it fell below 87 cents on Saturday, according to data from CoinDesk. Regulators shuttered SVB Friday and seized its deposits in what has become the largest U.S. banking failure since the 2008 financial crisis. In a tweet Friday, Circle said it has $3.3 billion in remaining reserves at SVB. SVB customers withdrew a staggering $42 billion of deposits by the end of Thursday, according to a California regulatory filing.

☆ Silicon Valley Bank's demise began with downgrade threat
▼ + stars: | 2023-03-11 | by ( Echo Wang | ) www.reuters.com time to read: +5 min

Investors worry that the Federal Reserve's aggressive interest rate increases to fight inflation are exposing vulnerabilities in the financial system. The transaction would generate a loss, but if SVB could fill that funding hole by selling shares, it would avoid a multi-notch downgrade, the sources said. Moody's downgraded the bank, but only by a notch because of SVB's bond portfolio sale and plan to raise capital. SVB's stock plunged on news of the share sale, ending Thursday down 60% at $106.04. This quickly became a self-fulfilling prophecy: General Atlantic and other investors walked away and the stock sale collapsed.

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