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☆ American savers are missing out – because bank interest rates are trailing the Fed's benchmark by a record amount
▼ + stars: | 2023-04-15 | by ( George Glover | ) www.businessinsider.com time to read: +3 min

That means there's a record gap between the rates they offer customers on deposits and the Fed's benchmark. The interest rates that banks pay on customer deposits are lagging the US central bank's benchmark by a record amount, its economists said in a new paper. Assets in money-market funds hit a fresh high of $5.25 trillion last week, according to data from the Investment Company Institute. "The spread between the Fed funds rate and the deposit rate is at a modern high of above 2%," Kang-Landsberg, Luck, and Plosser said. Deposit interest rates could be set to surge the rest of this year as the gap to the Fed's benchmark starts to close, according to the researchers.

☆ Succession's huge plot twist is more realistic than you'd think – the departure of a powerful CEO like Logan Roy really can cause wild share price swings
▼ + stars: | 2023-04-15 | by ( Ryan Hogg | George Glover | ) www.businessinsider.com time to read: +5 min

There's real-life precedent that shows why a CEO can cause huge share price swings when they depart. He was portrayed as an omnipotent boss of the group, reflected in a cratering share price upon his death in the episode that aired April 9. But there is real-life precedent for a company's share price collapsing on news of a powerful CEO's ill-health. The power of Logan RoyThere are downsides to a stock being so closely linked to a powerful CEO like Jobs, Musk, or Roy. Indeed, there have been examples of a share price rally following the death of a CEO, because investors see it as a company decoupling from a deadweight boss.

☆ The Haslam family sold its gas station business to Warren Buffett this year. Now it's set to buy a stake in the Milwaukee Bucks.
▼ + stars: | 2023-04-14 | by ( George Glover | Theron Mohamed | ) www.businessinsider.com time to read: +3 min

The Haslam family will finalize buying a stake in the Milwaukee Bucks on Friday, according to Bloomberg. They're swapping fuel pumps for courtside seats after selling their gas station business to Warren Buffett. They're poised to own 25% of the Bucks in a deal that values the NBA franchise at around $3.5 billion. The Haslams agreed to buy billionaire investor Marc Lasry's 25% stake in the Bucks in a deal that values the NBA franchise at $3.5 billion back in February, per a previous Bloomberg report. The Haslam family retains control of Pilot's day-to-day operations.

☆ Crypto stocks rally after bitcoin breaks above $30,000 to hit a 10-month high
▼ + stars: | 2023-04-11 | by ( George Glover | ) www.businessinsider.com time to read: +3 min

Crypto-related stocks rose Tuesday after bitcoin broke above $30,000 to hit a 10-month high. Bitcoin miners Marathon Digital and Riot Platforms also edged higher in early-morning trading, having logged double-digit gains the previous trading session. Amplify's Transformational Data Sharing ETF, which tracks crypto stocks, has outperformed in 2023. The crypto stocks logged gains Monday even as the Nasdaq Composite — which tracks the tech sector more broadly but tends to move in lockstep with bitcoin — closed 0.03% lower. Read more: Bitcoin's nearing a breakout moment — prices topped $30,000 for the first time since June 2022

He had told Oxford Gold that he wanted to "get the lay of the land" ahead of picking up a $9 million order for 151 gold kilo bars. But most unusual was that Mancuso wanted to pick up the order from the Oxford Gold office, the source said. The next day, Mancuso contacted Oxford Gold about buying $9 million worth of gold, and the company agreed to sell him 151 gold kilo bars. But Oxford Gold was alerted on December 2 that this was a fraudulent transaction, said a source with direct knowledge. Unsure what to do, Oxford Gold contacted the Beverly Hills Police Department, and eventually got in touch with the FBI, this source said.

☆ Goldman Sachs just turned bearish on BMW and others — and Tesla could be to blame
▼ + stars: | 2023-04-07 | by ( Ganesh Rao | ) www.cnbc.com time to read: +2 min

Goldman Sachs has warned that European automakers are at risk of losing market share to Tesla and Chinese firms. The Wall Street investment bank said the transition toward battery electric vehicles in Europe could spark swings in some share prices. Europe's incumbent mass-market brands accounted for 72% of sales last year, Goldman Sachs analysts said. Chinese electric car maker Nio announced plans to open a manufacturing plant in Hungary last year. The change in regulation allowing for e-Fuel — a synthetic drop-in replacement for gasoline — also has the potential to de-risk companies and brands, according to Goldman Sachs.

☆ Japan killed 17 million chickens amid an outbreak of bird flu. Now it's running out of space to bury them.
▼ + stars: | 2023-04-06 | by ( Huileng Tan | ) www.businessinsider.com time to read: +3 min

Japan culled over 17 million chickens this season amid its worst bird flu outbreak ever, per NHK. As a result, egg prices soared in Japan, prompting some restaurants to suspend sales of egg-based items. However, not all of them have enough capacity to incinerate so many carcasses, according to another NHK report in October. The mass culling of so many chickens over bird flu impacts food prices. It's not just Japan as there's an ongoing bird flu outbreak globally that's affecting the poultry industry — and in turn egg prices.

Some Credit Suisse shareholders had angry words for the board at its final annual general meeting. Credit Suisse was acquired by rival UBS after the 167-year-old Swiss bank's stock crashed last month. The anger inside the meeting was shared by investors and climate protestors outside Zurich's hockey arena where the meeting was held. A spokesperson for Credit Suisse declined to comment. How much is enough for a golden parachute that is on his crashing plane that is the Credit Suisse?"

☆ Tesla reports vehicle deliveries are up about 35 percent from last year in first quarter following price cuts
▼ + stars: | 2023-04-02 | by ( Aaron Mcdade | ) www.businessinsider.com time to read: +3 min

Tesla published its Q1 production and deliveries data Sunday, reporting a record number of deliveries. The electric vehicle manufacturer reported production of about 440,000 vehicles, and just under 423,000 vehicle deliveries, the closest figure to sales that Tesla reports, in the first quarter. The car maker fell short of analyst expectations from FactSet — an average of 432,000 deliveries reported Friday — cited in the Wall Street Journal and CNBC. The Treasury Department also recently released new regulations for electric vehicle tax credits, which are set to go into effect later this month. They could impact the demand and affordability for Teslas and other electric vehicles as certain models become ineligible for $7,500 tax credits.

☆ Brace for the US economy to crash-land as the banking turmoil creates a credit crunch, Allianz says
▼ + stars: | 2023-04-01 | by ( George Glover | ) www.businessinsider.com time to read: +3 min

The US economy is going to crash-land into a recession in the second half of 2023, according to Allianz. "Rapidly tightening credit conditions, exacerbated by the banking crisis" will fuel the downturn, Allianz said. Allianz is expecting the turmoil that's rocked the US's regional banks in recent weeks to fuel a credit crunch. The turmoil could leave banks more risk-averse and result in a pullback in lending, according to Allianz. "While credit growth has still held up, a significant decline in bank lending seems inevitable amid the collapse of monetary aggregates."

☆ Tesla will keep increasing market share throughout 2023, says Canaccord's George Gianarikas
▼ + stars: | 2023-03-31 | by ( ) www.cnbc.com time to read: 1 min

Share Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailTesla will keep increasing market share throughout 2023, says Canaccord's George GianarikasGeorge Gianarikas, analyst at Canaccord Genuity, and CNBC's Phil LeBeau, join 'The Exchange' to discuss the nuanced qualifications behind EV tax credits, Tesla's impact on generating EV demand in the U.S., and China's role in manufacturing for EV.

☆ The dollar slipped this quarter after surging in 2022. Its struggles could be a sign of things to come.
▼ + stars: | 2023-03-31 | by ( George Glover | ) www.businessinsider.com time to read: +3 min

The dollar slipped around 1% this quarter on the prospect the Federal Reserve may be close to ending interest-rate increases. Analysts are warning that the greenback's losses could snowball over the rest of 2023. Sign up for our newsletter to get the inside scoop on what traders are talking about — delivered daily to your inbox. "Nowhere have we seen interest-rate expectations pared back as much as the US, not among major central banks anyway," OANDA analyst Craig Erlam told Insider. "That change in interest-rate expectations has driven yields much lower which has, in turn, hit the dollar and if they don't bounce back, it could do more," he added.

☆ Billionaire investor Bill Gross says the Fed easing up in fighting inflation could fuel a rally in government bonds
▼ + stars: | 2023-03-31 | by ( George Glover | ) www.businessinsider.com time to read: +3 min

Government bonds may rally if the Federal Reserve eases up on interest-rate hikes, Bill Gross said. US Treasuries are "still overvalued but may rally with future Fed ease," the elite investor said. Bond prices have cratered over the past year, fueling the collapse of Silicon Valley Bank. Government bond prices have plummeted over the past year, causing yields, which rise when prices fall, to soar. Two-year US Treasury yields have jumped 167 basis points to 4.13% since March 31, 2022, while 10-year US Treasury yields are up 118 basis points to 3.56%.

The officers along with a registered nurse face counts of involuntary manslaughter and assault in the death of 38-year-old Edward Bronstein in Burbank, California, prosecutors said. "These officers had a legal duty to Mr. Bronstein," Los Angeles County District Attorney George Gascón said on Wednesday during a news conference. The death of Bronstein, who was white, came less than two months before the death of George Floyd, a Black man who was pinned to the ground in Minneapolis by police officers as he pleaded, "I can't breathe." In the California traffic stop, two of the officers who were charged had pulled Bronstein over on Interstate 5 for suspected driving under the influence. While pinned, Bronstein repeatedly screamed, "I can't breathe," and begged for help before becoming unresponsive, the prosecutor said.

☆ US stocks could end this year 14% higher because banking turmoil will trigger a Fed pause, veteran investor Ed Yardeni says
▼ + stars: | 2023-03-30 | by ( George Glover | ) www.businessinsider.com time to read: +4 min

The S&P 500 could hit 4,600 points by the end of this year, according to Ed Yardeni. The veteran investor turmoil in the US banking sector to lead to the Federal Reserve pausing its rate hikes. "This banking crisis is going to be very well-contained," the veteran investor told CNBC on Wednesday. "And at the same time, I think it's going to keep the Fed from raising interest rates even further," he said. "We saw that last year with the meme stocks, with the SPACs, with the Ark stocks," he added.

☆ SVB's collapse was fueled by 'people on iPhones' and won't spread across the US banking sector, Blackstone CEO says
▼ + stars: | 2023-03-30 | by ( George Glover | ) www.businessinsider.com time to read: +3 min

Silicon Valley Bank failed because of the "interim issue" of high interest rates, Steve Schwarzman said. Rapid withdrawals "by people on iPhones" also fueled SVB's collapse, he told Bloomberg Thursday. "The banking system is not in any type of conventional crisis," the billionaire businessman said. Silicon Valley Bank's collapse earlier this month sparked a selloff in stocks of regional US banks, fueling fears that its failure would develop into a broader crisis. Read more: Silicon Valley Bank's spectacular implosion shows how digital banking can decimate a lender in 24 hours

☆ Coinbase says it's working on 'flatcoins' that will keep pace with inflation
▼ + stars: | 2023-03-27 | by ( George Glover | ) www.businessinsider.com time to read: +3 min

Coinbase said Friday that it's developing "flatcoins" that keep pace with inflation. The crypto exchange believes the tokens will help crypto traders shield their portfolios from soaring prices. Billionaire investor Ray Dalio is one high-profile name who's backed the idea of an inflation-linked coin in the past. Stablecoins are crypto tokens that derive their value from another asset. "I think that what would really be best is an inflation-linked coin," the billionaire investor told CNBC's "Squawk Box" last month.

☆ First Citizens just bought Silicon Valley Bank – here's everything you need to know about the latest twist in the banking turmoil
▼ + stars: | 2023-03-27 | by ( George Glover | ) www.businessinsider.com time to read: +6 min

First Citizens Bank agreed to buy most of Silicon Valley Bank on Sunday. The Raleigh, NC-based bank has taken over 17 branches of SVB, $119 billion of its deposits and $72 billion worth of loans. Here's everything you need to know about the latest twist in the US's regional banking turmoil. First Citizens Bank has agreed to buy SVB, according to a statement released on Sunday by the Federal Deposit Insurance Corporation. It'll also receive benefits tied to First Citizens' share price, which it estimated could be worth around $500 million.

☆ Bond giants Pimco and Invesco are facing losses of hundreds of millions on rotten Credit Suisse debt
▼ + stars: | 2023-03-25 | by ( George Glover | ) www.businessinsider.com time to read: +3 min

Bond giants Pimco and Invesco lost hundreds of millions of dollars, according to data from Bloomberg. They held Credit Suisse's AT1 bonds – which were marked down to zero by the Swiss regulator a week ago. FINMA, which is Switzerland's top financial regulator, marked the value of all Credit Suisse AT1s down to zero when UBS's takeover of the struggling bank was confirmed. Pimco had $807 million worth of Credit Suisse CoCos written off when the bank was rescued, according to Bloomberg – while Invesco held around $370 million worth of AT1 debt at the time of the takeover. Here's what you need to know about AT1 bonds.

☆ Barry Sternlicht warns the economy is facing a sharp slump as the Fed uses 'a steamroller to get the price of milk down 2 cents'
▼ + stars: | 2023-03-24 | by ( George Glover | ) www.businessinsider.com time to read: +2 min

Barry Sternlicht warned Thursday that a sharp economic downturn is coming in the US. Jerome Powell "is using a steamroller to get the price of milk down two cents, to kill a small fly," Sternlicht said. "[Fed chair Jerome Powell] is using a steamroller to get the price of milk down two cents, to kill a small fly." "I think it's time we changed the conversation – there's good inflation and bad inflation," he told CNBC. "Good inflation is wage inflation."

☆ Deutsche Bank's shares slide 8% as bets it will default on its debt soar
▼ + stars: | 2023-03-24 | by ( George Glover | ) www.businessinsider.com time to read: +1 min

Deutsche Bank shares fell 8% in Frankfurt on Friday as fears about the health of big banks revived. The cost of credit default swaps linked to the German bank's bonds —insurance against default — shot up Thursday. Investors are fretting about the health of Europe's banks after Credit Suisse's rescue by UBS last week. The losses came after the cost of Deutsche Bank's credit default swaps — which are a form of insurance on it not making scheduled debt repayments — spiked to 173 basis points Thursday from 142 basis points the day before. Deutsche Bank shares have shed just under a quarter of their value this month alone, with Europe's embattled banking sector still rocked by Credit Suisse's rescue by UBS late last week.

☆ Dollar slumps as banking crisis chips away at its haven status and makes further Fed rate hikes a coin flip
▼ + stars: | 2023-03-23 | by ( George Glover | ) www.businessinsider.com time to read: +3 min

The US dollar has slipped 2% over five trading days as the banking crisis rattles investors. The collapse of SVB and Signature Bank may threaten the greenback's haven status, one analyst said. The buck's run of losses follows the collapse of Silicon Valley Bank and Signature Bank earlier this month. The Fed shying away from hikes could also weigh on the dollar. Read more: The Fed's latest move confirms it's trying to thread the needle between cooling inflation and helping banks in turmoil

☆ Elon Musk jokes ChatGPT 'couldn't do worse' than Jerome Powell as he slams the Fed's latest rate hike
▼ + stars: | 2023-03-23 | by ( George Glover | ) www.businessinsider.com time to read: +3 min

Elon Musk has slammed the Federal Reserve again after it decided to keep hiking interest rates. Musk warned the Fed's latest decision could make the US regional banking crisis worse. "A major driver of depositor flight is people moving money from low interest savings accounts to high interest money market (Treasury Bill) accounts," Musk said. Bond yields tend to rise when the Fed lifts interest rates, making money market accounts more attractive. He's noted that higher interest rates bump up monthly car-loan payments, effectively making it more expensice to buy vehicles.

☆ Top economist David Rosenberg said the Fed should put bigger rate hikes back on the table after bouts of 'speculative lunacy'
▼ + stars: | 2023-03-22 | by ( George Glover | ) www.businessinsider.com time to read: +3 min

The Federal Reserve should weigh up another big interest-rate increase because of recent "speculative lunacy", according to David Rosenberg. "I am starting to wonder if 50 basis points shouldn't be back on the table," the top economist said. "After this recent round of speculative lunacy, I am starting to wonder if 50 basis points tomorrow shouldn't be back on the table," the Rosenberg Research president said on Twitter Tuesday. None of the investors surveyed by CME Group expected the 50-basis-point hike that Rosenberg said the Fed should be considering. The economist didn't elaborate on what he meant by "speculative lunacy" – but he was likely referring to an early-year rally for growth stocks, cryptocurrencies, and meme stocks.

☆ NBA roundup: Paul George gets hurt in Clippers' loss
▼ + stars: | 2023-03-22 | by ( ) www.reuters.com time to read: +4 min

Kawhi Leonard scored 21 points and Paul George added 18 against his former team before departing with a knee injury. Derrick White added 20 points for the Celtics, and Marcus Smart scored 17. Day'Ron Sharpe scored 20 points to lead the Nets, who tied a season high with their fourth straight loss. Bogdan Bogdanovic started at guard in place of Dejounte Murray (illness) and scored 18 points. Sandro Mamukelashvili scored 20 points for the Spurs, who played without Keldon Johnson (neck), Devin Vassell (knee) and Zach Collins (rest).

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