27 minutes ago
Saudi National Bank says panic over Credit Suisse is unwarranted
The chairman of Credit Suisse’s largest shareholder, the Saudi National Bank, told CNBC’s Hadley Gamble that the recent market turmoil in the banking sector was “isolated” and stemmed from “a bit of panic”.
“Unfortunately, when you look at how the entire banking sector collapsed, a lot of people were just looking for excuses…it’s panic, a little bit of panic,” Ammar Al Khudairy said on CNBC’s Capital Connection.
He added that Credit Suisse has not asked the Saudi National Bank for financial support.
“There have been no discussions with Credit Suisse about providing assistance,” he said. “I don’t know where the word ‘help’ comes from, there have been no talks at all since October,” he said.
His comments come after Credit Suisse announced it would borrow up to 50 billion Swiss francs ($53.68 billion) from the Swiss National Bank to boost liquidity and investor confidence after its shares fell on Wednesday were.
– Jihye Lee
2 hours ago
According to TikTok, the sale does not resolve any security concerns
Forcing ByteDance to sell its stake in TikTok will not allay security concerns, a TikTok spokesperson told NBC News.
The comments came in response to a Wall Street Journal report that the US government was threatening ByteDance to sell its stake in TikTok or face a possible ban on the app.
“If protecting national security is the goal, divestment doesn’t solve the problem: a change in ownership would not impose new restrictions on data flow or access,” the spokesman said, according to NBC.
“The best way to address national security concerns is transparent, US-based protection of US user data and systems with robust third-party monitoring, screening and verification that we already implement,” the spokesperson said.
– Valeriya Antonshchuk, Jihye Lee
Before an hour
China Halts Approvals for New Global Depositary Receipts: Bloomberg
China’s securities regulator has suspended approvals for the sale of new global depositary receipts, Bloomberg reported, citing well-known people.
The regulator’s pause comes amid fears that sales in East Germany could put mainland-listed shares under pressure – citing Chinese investors who will later convert the securities into shares in China to take advantage of price gaps, the added report added.
Chinese regulators are considering new rules for the offerings, Bloomberg reported.
– Jihye Lee
Before an hour
US regulator FDIC plans offers for SVB and Signature Bank by Friday: Portal
Portal reported that US Federal Deposit Insurance Corporation regulators have asked banks interested in acquiring closed banks, Silicon Valley Bank and Signature Bank, to submit bids by March 17.
The FDIC aims to sell both SVB and Signature outright, while bids for parts of the banks could be considered if sales of the entire company are not made, Portal said, citing people familiar with the matter.
This will be the FDIC’s second attempt to sell SVB after a failed attempt on Sunday.
Any Signature buyer must agree to give up all crypto business with the bank, the two sources cited by Portal added.
— Lim Hui Jie
3 hours ago
New Zealand economy shrinks 0.6% in fourth quarter, full-year GDP grows 2.2%
New Zealand’s gross domestic product fell 0.6% in the quarter ended December 2022, a reversal from a 1.7% increase in the previous quarter.
For the full year 2022, GDP grew by 2.2% versus the 6% recorded for the full year 2021.
Out of 16 industries, only five saw an increase in activity compared to the previous quarter.
Manufacturing was the main driver of the decline, down 1.9%.
— Lim Hui Jie
3 hours ago
Swiss franc strengthens in volatile trading after Credit Suisse announcement
The Swiss franc has seen continued volatility following developments surrounding Credit Suisse – most recently rising 0.17% against the US dollar to offset an earlier weakening after the lender announced it would withdraw nearly $54 billion from the Swiss to borrow from the National Bank.
The Japanese yen also continued to rally, trading at 132.86 against the greenback. The Korean won gained 0.13% against the US dollar to 1,311.24.
– Jihye Lee
4 hours ago
Credit Suisse says it will borrow up to $54 billion from the Swiss central bank
Credit Suisse announced it will borrow up to 50 billion Swiss francs ($53.69 billion) from the Swiss National Bank under a secured credit facility and a short-term liquidity facility.
The moves will “support Credit Suisse’s core businesses and clients as Credit Suisse takes the necessary steps to create a simpler and more client-centric bank,” the company said in an announcement.
In addition, the bank is making a cash offer for ten US dollar-denominated senior notes for a total purchase price of up to US$2.5 billion – and a separate offer for four euro-denominated senior notes for a total of up to €500 million the company with.
Read more here.
– Jihye Lee
3 hours ago
Banks in South Korea and Australia limit losses as Credit Suisse announces liquidity measures
Banks in South Korea and Australia reversed earlier losses after Swiss lender Credit Suisse announced liquidity measures to allay investor fears.
The Commonwealth Bank of Australia pared most of its losses in volatile trading – trading 0.15% lower after previously falling as much as 1.97%.
Westpac Banking and National Australia Bank fell as much as 2.35% and 1.81%, respectively, before recouping some of their declines to most recently tumble 1.34% and 0.58%, respectively.
Some South Korean banks fell as much as 2% earlier – Woori Financial Group was last down 1.62%, Shinhan Finance traded lower 1.69% and KB Kookmin Bank fell 1.12%.
— Lim Hui Jie
4 hours ago
Japanese financials pare losses as Credit Suisse announces public debt offering
Japanese banks trimmed some losses Thursday morning after Credit Suisse said it would pre-emptively strengthen its liquidity position by borrowing CHF 50 billion ($54 billion) from the Swiss National Bank and launching a public offering of CHF 3.00 worth of bonds billion would give .
Prior to the announcement, MUFG shares were down over 5% and were the Topix’s top loser but have narrowed to just 3.35%, while Sumitomo Mitsui Financial Group slipped 5% and has since declined to 3.59 % has decreased.
The Topix as a whole was over 2% lower prior to the announcement but is now slightly down at 1.4%.
— Lim Hui Jie
4 hours ago
CNBC Pro: Default risk indicator rises to crisis level for Credit Suisse and other European banks
4 hours ago
CNBC Pro: Morgan Stanley names his favorite tech stocks — giving it nearly 60% upside
5 hours before
Australia’s unemployment rate fell slightly in February
Australia’s unemployment rate fell slightly to 3.5% in February from 3.7% in January, seasonally adjusted government data showed.
That was lower than expectations for an unemployment rate of 3.6%, according to a Portal poll.
The business activity rate was in line with expectations at 66.6%, up from 66.5% in the previous month.
The Australian dollar edged up 0.23% to 0.6630 against the US dollar.
5 hours before
Japan’s trade deficit widens in February; Export and import growth below expectations
Japan’s trade deficit widened to 897.7 billion yen ($6.76 million) in February, up 26.2% from the same period a year ago.
According to government data, exports rose 6.5% in February while imports rose 8.3%. These were below economists’ forecasts of export and import growth of 7.1% and 12.2%, respectively.
Notably, Japan’s exports to Europe and the US rose 18.6% and 14.9% on an annual basis, respectively, while exports to China fell 10.9%.
— Lim Hui Jie
5 hours before
Wage negotiations end in Japan, workers get biggest pay rise in decades: Portal
Japan’s Shunto wage negotiations concluded on Wednesday, Portal reported — marking the biggest wage increases in decades as inflation rates soar.
Analysts polled by Portal expected overall wages for the economy to rise about 3%, the largest increase since 1997.
Prime Minister Fumio Kishida called for better wages for workers in Japan, citing a weaker currency and higher commodity prices leading to increased import costs in an overall high inflation environment, the report said.
– Jihye Lee
5 hours before
First Republic Bank considering options including sale: Bloomberg
First Republic Bank is considering options to bolster liquidity, including a sale of the lender, Bloomberg reported, citing people familiar with the matter.
The bank is expected to attract interest from its competitors and no decision has been made yet, the report said.
Shares of the bank rose 3.92% in after-hours trading in the U.S. on Wednesday night — after posting a more than 20% surge earlier in the week along with regional banks.
11 hours ago
Goldman Sachs lowers GDP forecast due to stress at small banks
Goldman Sachs on Wednesday cut its 2023 economic growth forecast by 0.3 percentage points to 1.2%, citing a slowdown in lending from small and medium-sized banks amid the turmoil in the broader financial system.
Analysts expect small banks will try to conserve liquidity in case they need to meet depositor withdrawals, leading to a significant tightening of bank lending standards, which could weigh on aggregate demand. “Small and mid-sized banks play an important role in the US economy,” they wrote.
Banks with assets under $250 billion account for about 50% of US commercial and industrial lending, the company found. Click here to read more.
—Pia Singh
10 hours ago
SNB: Provides liquidity to Credit Suisse when needed
The Swiss National Bank said Wednesday it would provide liquidity to banking giant Credit Suisse if needed.
A joint statement by the SNB and the Swiss Financial Market Supervisory Authority read: “FINMA confirms that Credit Suisse meets the higher capital and liquidity requirements for systemically important banks. In addition, the SNB will make liquidity available to the globally active bank if required. “
Credit Suisse shares were under pressure on Wednesday after the bank’s biggest investor said it would not provide any further financial support. Credit Suisse shares listed in the US recently lost more than 18%.
—Fred Imbert
16 hours ago
Credit Suisse shares open with big volume, up more than 23%
Credit Suisse shares fell more than 23% on market open in strong volume. Shares fell to a new all-time low of $1.75.
The troubles at the Swiss bank have reignited turmoil among financial stocks, with US mid-tier banks under particular pressure. The bank’s largest investor, the Saudi National Bank, said it could not provide any further financial support to the company.
– Christina Cheddar Berk
18 hours ago
Credit Suisse stock plummets
ADR shares of Swiss lender Credit Suisse plunged 21% in premarket trading.
The Saudi National Bank said it could not provide any more funds, Portal reported. “We can’t because we would go over 10%. It’s a regulatory issue,” the Governor of the National Bank of Saudi Arabia, Ammar Al Khudairy, told Portal on Wednesday.
The troubled Swiss bank said earlier this week it had identified “material weaknesses” in its financial reporting for 2022 and 2021.
– John Meloy