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☆ Dollar firmer as banking fears fade; yen sinks on quarter-end flows
▼ + stars: | 2023-03-29 | by ( Saqib Iqbal Ahmed | ) www.reuters.com time to read: +3 min

"The dollar is trading mixed today with a bit of upside as global risk sentiment improves and central banks can turn their attention back toward inflation," Given said. The dollar rose to a one-week high against the yen , which remained volatile in the run-up to the end of the Japanese fiscal year on Friday. "A decent amount of USD/JPY flow today is end of quarter related," Monex USA's Given said. "Traders are concerned with real money outcomes at the moment, but as global risk sentiment continues to improve, JPY as a traditional haven looks less appealing," she said. The dollar was 1.03% higher at 132.275 yen.

☆ For battered U.S. bank shares, earnings may make or break
▼ + stars: | 2023-03-28 | by ( Caroline Valetkevitch | ) www.reuters.com time to read: +3 min

Even so, the S&P 500 bank index (.SPXBK) is down 16% since March 8, two days before Silicon Valley's collapse, with the failure of Signature Bank and problems at other banks adding to the turmoil. Some say quarterly results could be key to what happens next with bank shares. Among other financials, Jefferies Financial Group (JEF.N) is expected to report quarterly results after the closing bell Tuesday. Analysts expect S&P 500 earnings to fall 4.6% in the first quarter of 2023 from the year-ago period. They are forecasting S&P 500 financials (.SPSY) to post year-over-year earnings growth in the first quarter of 5.4%, making it among just four sectors whose earnings are expected to climb.

☆ UBS offers retention packages to Credit Suisse Asia wealth bankers -sources
▼ + stars: | 2023-03-24 | by ( ) www.reuters.com time to read: +1 min

In a town hall address in Hong Kong on Friday, Iqbal Khan, UBS's president for global wealth management, also focussed on stabilising the Credit Suisse Asia team and boosting confidence, one of the two sources said. In his address, Khan said the top performers at the Credit Suisse wealth business will get retention packages, the second source said. Spokespeople for Credit Suisse and UBS declined to comment. UBS told Credit Suisse wealth bankers in Zurich this week that it is weighing financial sweeteners for them to stay as it seeks to reassure key staff following the takeover, Reuters reported on Monday. Reporting by Xie Yu in Hong Kong and Scott Murdoch in Sydney; Editing by Sumeet Chatterjee, Christian Schmollinger and Gerry DoyleOur Standards: The Thomson Reuters Trust Principles.

☆ Swiss Miss: Why UBS's deal with Credit Suisse will threaten its hold on rich clients
▼ + stars: | 2023-03-22 | by ( Hayley Cuccinello | ) www.businessinsider.com time to read: +7 min

UBS was already the largest private wealth manager in the world before it agreed to buy fellow Swiss bank Credit Suisse. UBS and Credit Suisse are both known for servicing the ultra-rich, though UBS does so on a much larger scale. The acquirer had $2.8 trillion in global wealth management assets as of the end of 2022 while Credit Suisse's totalled $585 billion. But the merger gives UBS and Credit Suisse clients the thing that matters mostBut the acquisition wasn't just about rescuing Credit Suisse but restoring confidence in the Swiss banking system, Ibrahim noted. For one Irish billionaire and Credit Suisse client, this is what matters most.

☆ UBS will become a Swiss wealth behemoth after buying Credit Suisse, but blending the two rivals could get awkward and messy
▼ + stars: | 2023-03-21 | by ( Hayley Cuccinello | ) www.businessinsider.com time to read: +7 min

UBS was already a giant in wealth management before it agreed to buy doomed rival Credit Suisse. UBS was already the largest private wealth manager in the world before it agreed to buy fellow Swiss bank Credit Suisse. UBS and Credit Suisse are both known for servicing the ultra-rich, though UBS does so on a much larger scale. The acquirer had $2.8 trillion in global wealth management assets as of the end of 2022 while Credit Suisse's totalled $585 billion. But the merger gives UBS and Credit Suisse clients the thing that matters mostBut the acquisition wasn't just about rescuing Credit Suisse but restoring confidence in the Swiss banking system, Ibrahim noted.

☆ UBS mulls sweeteners to keep Credit Suisse wealth bankers - source
▼ + stars: | 2023-03-20 | by ( Stefania Spezzati | ) www.reuters.com time to read: +1 min

LONDON, March 20 (Reuters) - UBS Group AG told Credit Suisse wealth bankers it's weighing financial sweeteners for them to stay as it seeks to reassure key staff following the takeover, a person with knowledge of the matter told Reuters on Monday. In a town hall for Credit Suisse's employees in wealth management in Zurich, Iqbal Khan, UBS's president for global wealth management and Francesco de Ferrari, Credit Suisse's CEO for wealth management, reassured staff on Monday that the two banks will all be acting as a "big family," the person said. Before the deal, Credit Suisse had embarked on a plan to slash 9,000 jobs. That number can grow to 10,000, Reuters has reported as UBS acquires Credit Suisse. UBS said in a presentation that the acquisition will scale up the bank's global wealth and asset management franchise with more than $3.4 trillion in invested assets on a combined basis, according to a press release on Sunday.

☆ UBS' dramatic takeover of Credit Suisse was the deal neither bank wanted. Here's some of the passive-aggressive digs from both sides.
▼ + stars: | 2023-03-20 | by ( Matt Turner | ) www.businessinsider.com time to read: +5 min

UBS acquired Credit Suisse in a rescue takeover over the weekend. But Credit Suisse didn't want to be rescued, and UBS didn't want to have to be the rescuer. For example, the first official word of the deal came from the Swiss National Bank, which announced: "UBS today announced the takeover of Credit Suisse." Next, Credit Suisse announced: "Credit Suisse and UBS to Merge." In 2019, after UBS announced Khan's hire, the chief operating officer at Credit Suisse ordered a colleague to spy on him.

☆ Top UBS executives defend their 'emergency rescue' of Credit Suisse. Here's what comes next.
▼ + stars: | 2023-03-19 | by ( Rebecca Ungarino | ) www.businessinsider.com time to read: +5 min

UBS sought to reassure investors that the Credit Suisse deal wouldn't disrupt long-term strategy. UBS agreed to acquire Credit Suisse on Sunday in a deal arranged by the Swiss government. Credit Suisse has faced crisis after crisis in recent years, from Archegos to a spying scandal. "These events could alter the course of not only European banking but also the wealth management industry more generally," Georgiou said. "It's an outcome that we may not have hoped for," Hamers said of the Credit Suisse deal.

☆ From spying to Swiss bailout: How years of turbulence at Credit Suisse came to a head
▼ + stars: | 2023-03-17 | by ( Elliot Smith | ) www.cnbc.com time to read: +6 min

The logo of Swiss bank Credit Suisse is seen at an office building in Zurich, Switzerland February 21, 2022. The announcement that Credit Suisse would borrow up to 50 billion Swiss francs ($54 billion) from the central bank came after consecutive sessions of steep drops in its share price. It made Credit Suisse the first major bank to receive such an intervention since the 2008 Global Financial Crisis. Scandals Credit Suisse is currently undergoing a massive strategic overhaul in a bid to address these chronic issues. These oversight failures resulted in a massive shakeup of Credit Suisse's investment banking, risk and compliance and asset management divisions.

☆ Analysis: As worries over banks swirl, investors seek protection against market crash
▼ + stars: | 2023-03-17 | by ( Saqib Iqbal Ahmed | ) www.reuters.com time to read: +5 min

The S&P 500 is down 5% from its early February high though it remains up 3% year to date. ... Now the downside tail has a lot more risk priced into it," said Chris Murphy, co-head of derivatives strategy at Susquehanna. Volatility in the Cboe Volatility Index (.VIX), which reflects expectations of stock volatility, has been muted by comparison, though the index hit a five-month high earlier this week. "That is something worth monitoring closely to gauge the expansion of risk within the system," he said. Reporting by Saqib Iqbal Ahmed; Editing by Ira Iosebashvili and Mark PorterOur Standards: The Thomson Reuters Trust Principles.

☆ Factbox: Credit Suisse's troubles - spies, money laundering and takeover
▼ + stars: | 2023-03-16 | by ( ) www.reuters.com time to read: +6 min

Credit Suisse has said it expects the case, which it is appealing, to cost it around $600 million. The hedge fund's highly leveraged bets on certain technology stocks backfired and the value of its portfolio with Credit Suisse plummeted. Swiss regulators have rebuked Credit Suisse for "serious" failings in its handling of the multi-billion dollar business with Greensill. Switzerland's financial regulator said Credit Suisse had misled it about the scale of the spying. In response, Credit Suisse said it condemned the spying and had taken "decisive" steps to improve its governance and strengthen compliance.

☆ Factbox: FACTBOX Credit Suisse's troubles - spies, money laundering and central bank cash
▼ + stars: | 2023-03-16 | by ( ) www.reuters.com time to read: +6 min

Lescaudron was convicted by a Swiss court in 2018 of having forged the signatures of former clients, including Ivanishvili, over an eight-year period. Credit Suisse has said it expects the case, which it is appealing, to cost it around $600 million. The hedge fund's highly leveraged bets on certain technology stocks backfired and the value of its portfolio with Credit Suisse plummeted. Swiss regulators have rebuked Credit Suisse for "serious" failings in its handling of the multi-billion dollar business with Greensill. In response, Credit Suisse said it condemned the spying and had taken "decisive" steps to improve its governance and strengthen compliance.

☆ Credit Suisse plunge sends traders flocking to its U.S-listed options
▼ + stars: | 2023-03-15 | by ( Saqib Iqbal Ahmed | ) www.reuters.com time to read: +3 min

That made Credit Suisse the fourth most heavily traded single-stock name in the U.S. options market on Wednesday. The surge in trading followed a near 31% tumble in Credit Suisse shares on Wednesday after Saudi National Bank (SNB) (1180.SE), which holds 9.88% of Credit Suisse (CSGN.S), said it would not buy more shares on regulatory grounds. Trading in Credit Suisse puts outnumbered that in its call options 1.7-to-1. "There's a lot of moving parts in the Credit Suisse trade right now with respect to a major credit event, European bank contagion, and the possibility of ECB intervention," said Steven Place, an independent options trader in Destin, Florida. For SPDR S&P regional banking ETF (KRE.P), the options trading action was a mix of investors taking profits on existing hedges while putting on new defensive positions, Susquehanna's Murphy said.

☆ US options traders bet on near-term recovery as bank stocks rebound
▼ + stars: | 2023-03-14 | by ( Saqib Iqbal Ahmed | ) www.reuters.com time to read: +3 min

Options traders were buying up short-term call options on a variety of names, including the SPDR S&P regional banking ETF (KRE.P) and regional banks such as First Republic Bank (FRC.N) and Western Alliance Bancorp (WAL.N). "It's early days here but … there is some stability returning in bank share price action," said Michael Purves, chief executive of Tallbacken Capital. "Risk-on appears to be the flavor for regional banks today," said Ophir Gottlieb, chief executive of Los Angeles-based Capital Market Laboratories. Bullish speculation was particularly heavy in options expiring in less than a week, while longer-dated options saw less interest, he said. With some calm returning on Tuesday, options traders' also dialed back expectations for more near-term fireworks from the sector.

☆ Wall Street 'fear gauge' options volume jumps to 4-year high as bank stocks sell off
▼ + stars: | 2023-03-10 | by ( Saqib Iqbal Ahmed | ) www.reuters.com time to read: +2 min

The Cboe Volatility Index (.VIX), an options-based indicator dubbed the Wall Street "fear gauge," jumped as much as 6.36 points to 28.97, before closing up 2.19 points at 24.8. VIX options, used by traders to place wagers on whether stock market volatility will rise or fall in coming weeks and months, changed hands in heavy volume, with some 2.36 million contracts traded. Much of the volume on Friday was linked to traders booking profits and adjusting positions to account for the recent market moves, data showed. Betting on upside in the VIX has not been as profitable as many traders had hoped over the past year, despite a steep selloff in the stock market. That gradual pick up in volatility has kept the VIX below the 40 mark, a level associated with high fear in the market.

☆ Wall St Week Ahead: Inflation data on deck for markets hit by worries about Fed, banks
▼ + stars: | 2023-03-10 | by ( Lewis Krauskopf | ) www.reuters.com time to read: +5 min

NEW YORK, March 10 (Reuters) - A critical inflation report next week will test a U.S. stock market already consumed by worries over Federal Reserve hawkishness and potential fallout from the largest bank failure since the financial crisis. A hotter-than-expected consumer price report on Tuesday, however, could reignite fears of jumbo-sized Fed rate hikes like those that rocked markets last year. After a big rebound in January, the benchmark index is now clinging to a 0.6% gain for 2023. The consumer price report is followed the next day by more inflation data, on producer prices. Besides signs of falling inflation, reassurance for investors could come if it became clearer that SVB’s issues were unlikely to spread.

☆ SVB debacle sparks rush to defensive options on fears of contagion
▼ + stars: | 2023-03-10 | by ( Saqib Iqbal Ahmed | ) www.reuters.com time to read: +3 min

A California regulator shut Silicon Valley Bank on Friday and appointed the Federal Deposit Insurance Corporation as receiver, according to the agency's statement. With many stocks in the sector falling sharply on Friday, traders rushed in to defensive bets. SVB is battling cash burn due to declining deposits from startups struggling with a venture capital funding drought. While investors had largely shrugged off Silvergate’s troubles as strictly crypto-related, "(SVB Financial Group) was a giant wake-up call about the effects of rising rates and an inverted yield curve," Sosnick said. Reporting by Saqib Iqbal Ahmed in New York Editing by Ira Iosebashvili and Matthew LewisOur Standards: The Thomson Reuters Trust Principles.

☆ Pakistan's Honda Atlas shuts production to end-March on import difficulties
▼ + stars: | 2023-03-08 | by ( Ariba Shahid | ) www.reuters.com time to read: +2 min

KARACHI, Pakistan, March 8 (Reuters) - Honda Atlas Cars Pakistan Ltd has announced the longest plant shutdown to date in the current economic crisis amongst the country's automakers, which are struggling to obtain raw materials due to import difficulties. The company, a unit of Japanese car giant Honda Motor Co Ltd (7267.T), said its plant would shut from March 9, 2023, to March 31, 2023. Other listed-automakers, such as Indus Motor Company Limited (INDU) and Pak Suzuki Motor Company (PSMC), have also been forced to halt production during the past three quarters due to Pakistan's economic difficulties, which have seen central bank foreign exchange reserves drop to a level barely able to cover four weeks of imports. “Pakistan has limited dollars and until reserves improve to at least two months’ worth of import cover, import restrictions would likely continue.”Other manufacturing halts in the sector have been between two and 16 days. Reporting by Ariba Shahid in Karachi; Editing by Sharon SingletonOur Standards: The Thomson Reuters Trust Principles.

☆ Analysis: Rebounding U.S. dollar a growing headache for investors
▼ + stars: | 2023-03-01 | by ( Saqib Iqbal Ahmed | ) www.reuters.com time to read: +5 min

NEW YORK, March 1 (Reuters) - Investors reeling from the recent volatility in global financial markets are eyeing another potential worry: a rebounding dollar. MSCI’s index for emerging market stocks (.MSCIEF) has slipped 8% from its January highs, while the MSCI Emerging Markets Currency Index (.MIEM00000CUS) is down 3% from its early February high. "A stronger dollar poses a problem for risk assets," said Lauren Goodwin, economist and portfolio strategist at New York Life Investments. The dollar's recent rebound has weighed on various risk assetsBecause of the dollar's central role in the global financial system, its fluctuations have widespread repercussions. Whether the dollar continues its rebound will depend in part on investors' perceptions of how much higher the Fed will need to raise interest rates.

☆ Pakistan central bank may hike rates another 200 bps to unlock IMF funds
▼ + stars: | 2023-02-28 | by ( Ariba Shahid | ) www.reuters.com time to read: +2 min

KARACHI, PAKISTAN, Feb 28 (Reuters) - Pakistan’s central bank is widely expected to raise its key policy rate by 200 basis points in an off-cycle meeting on Thursday as it struggles to unlock critical funding from the IMF, a Reuters poll showed. All sixteen economists and market watchers surveyed said there would be a hike -- 14 of them predicted 200 basis points (bps), while two expected 250 bps. The State Bank of Pakistan (SBP) has raised rates by 725 bps since January 2022. In its last policy meeting in January, the bank raised the key rate by 100 bps to 17%, citing inflationary pressure. He said the market had already incorporated a 200 bps hike in the last treasury bill auction where the government accepted bids with yields more than 200 bps higher than the policy rate.

☆ Pakistan set to increase interest rates in off-cycle review, say investors
▼ + stars: | 2023-02-23 | by ( Ariba Shahid | ) www.reuters.com time to read: +2 min

Market participants in a recent treasury bill auction are expecting at least a 200 basis points increase in the central bank's policy rate, which stands at 17%. The expected increase is based on the rates the Pakistan government set in the auction to raise the funds. The cut off rates for the three-month, six-month, and 12-month tenors jumped 195 bps, 206 bps, and 184 bps higher than the previous auction. While the government expects a deal with IMF soon, media reports say that the agency expects the policy rate to be increased. “Pakistan has two core inflation readings i.e., Urban (15.4% for Jan-23) and Rural (19.4%) and no national core number is released.

☆ Short-dated options trade behind Thursday's U.S. stock market choppiness -Nomura's McElligott
▼ + stars: | 2023-02-23 | by ( Saqib Iqbal Ahmed | ) www.reuters.com time to read: +1 min

Some 26,000 Feb 23 put options on S&P 500 e-minis futures with a strike price corresponding to the 4,000 level were bought early in Thursday’s session, McElligott said in a note. In addition, as the market declines the options dealers have to sell increasing amounts of stock futures to remain hedged. Those trades generated some $2 billion in selling pressure and likely contributed to the index’s intraday reversal, McElligot said. Selling pressure could rise to as much as $5 billion if market declines accelerate, he added. Trading in short-dated options contracts, or 0DTE- zero days to expiry contracts - have garnered attention on Wall Street in recent months, drawing record volumes and boosting worries about their role in aggravating intraday stock price swings.

☆ Explainer: The rise of 0DTE stock options and how they could be a risk to markets
▼ + stars: | 2023-02-22 | by ( Saqib Iqbal Ahmed | ) www.reuters.com time to read: +4 min

WHAT ARE 0DTE OPTIONS? They are options contracts that have less than a day before expiring, though they may have been listed days, weeks or months ago. The daily notional value of trading in 0DTE options has grown to about $1 trillion, according to J.P. Morgan. WHY ARE TRADERS DRAWN TO 0DTE OPTIONS? With 0DTE contracts expiring daily, there is limited scope for positions to build up over time, they said.

☆ Retail investor risk appetite improves with AI stocks leading
▼ + stars: | 2023-02-14 | by ( Saqib Iqbal Ahmed | ) www.reuters.com time to read: +5 min

Retail investors had a poor year in 2022, with the average portfolio ending the year down around 35% from all-time highs, Vanda Research previously estimated. However, retail investors have shown renewed interest in the early part of 2023. Meanwhile, shares of early meme stocks GameStop (GME.N) and AMC Entertainment (AMC.N) have pared some losses after last year's tumble. "Investor enthusiasm is also attracting short-sellers that are skeptical about some of the resulting valuations," said Evan Niu, an analyst at Ortex, which tracks real-time short interest data. AI software firm Veritone (VERI.O), SoundHound and BigBear.ai also show a pick up in short interest, Ortex data showed.

Biden, who earlier last year signed into law a 1% tax on corporate stock buybacks, used his speech to call for that to be quadrupled, as well as renew his calls for higher taxes on billionaires. If companies sense such a tax is imminent, it might spur them to speed up buybacks and eventually shift toward paying dividends instead. "If this tax encourages companies to raise their dividends instead of buying back shares, all in all, it's not a bad thing." Other topics were also watched by investors, particularly remarks on China, a key area of interest for investors. BUYBACKS & BILLIONAIRESCorporate stock buybacks, where public companies buy back their own shares, thereby juicing the price of the shares as a way to return cash to shareholders, have grabbed headlines this year.

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