37 minutes ago
Stocks on the move: Balder up 4.8%, Wise down 12%
Swedish property firm Fastighets AB Balder outperformed European stocks in late afternoon trading, up 4.8% amid a broadly bearish Stoxx 600 index.
Fintech foreign exchange platform Wise plunged 12% after announcing it had funds in the collapsed Silicon Valley Bank, although a spokesman told Portal it was at “minimal risk”.
European technology stocks lost 1.85% overall.
Meanwhile, banks continued to be among the worst-performing stocks, with Commerzbank down 11.4% and Credit Suisse down 8.9%.
– Jennie Reid
49 minutes ago
US stocks higher
2 hours ago
UBS says HSBC sell-off was ‘driven by profit-taking’
The decline in HSBC’s share price following news that Silicon Valley Bank’s UK subsidiary will be bought for £1 (US$1.21) is “due to profit-taking, not fundamental weakness,” UBS analysts said in a note.
HSBC confirmed the takeover, which excludes the assets and liabilities of SVB UK’s parent company, Silicon Valley Bank, early Monday.
“We believe the stock’s 9% decline since Wednesday is profit-taking and sector rotation is not a change in outlook: deposit competition is increasing the value of the best deposit franchises,” UBS said.
“We see room for unanticipated value creation through volumes, cost reductions (US, UK) and potential divestitures.”
Turning to the broader banking sector, analysts said they expected the SVB crisis to result in tighter liquidity regulation for banks, investor preference for larger banks over small and retail-centric banks over commercial ones, and increased competition for leading deposits reduce net interest margins in 2024-25.
See grafic…
HSBC share price.
4 hours ago
The consequences of the collapse of the SVB are unlikely to stop the rise in interest rates, says the analyst
April LaRusse, head of investment specialists at Insight Investment, says there’s still “way too much” inflation.
5 hours before
Banks are incredibly cheap now, but don’t see massive upside given the low growth, CIO argues
Patrick Armstrong, Chief Investment Officer at Plurimi Wealth LLP, discusses the latest fallout from the SVB cases and how the Fed and investors are moving forward.
5 hours before
Investors need to assess banks’ net interest margins after SVB fallout, Investment Director says
Russ Mold, Investment Director at AJ Bell, comments on the dissolution of Silicon Valley Bank.
6 hours ago
HSBC shares slide
7 hours ago
European Banks at Bottom of Stoxx 600 Index; BAWAG down 9%, Commerzbank down 8%
9 hours ago
British bank HSBC acquires Silicon Valley Bank UK
The British bank HSBC will take over Silicon Valley Bank UK Limited, according to a statement by the Bank of England.
The Bank of England said the measure was taken “to stabilize SVBUK, ensure continuity of banking services, minimize disruption in the UK tech sector and boost confidence in the financial system”.
The Silicon Valley Bank continued to roil the banking sector and markets when it surprised investors on Wednesday with the news that it had to raise $2.25 billion to shore up its balance sheet and that it was shedding all its bonds sold at a loss of $1.8 billion.
The bank was then shut down by regulators after customers withdrew $42 billion in deposits by the end of Thursday.
HSBC said it will buy SVBUK for £1.
– Hannah Ward-Glenton and Matt Rosoff contributed to this report.
15 hours ago
CNBC Pro: Shares of this little-known global chip company will rise 50%, according to Barclays
Shares of a British tech company that develops custom chips and semiconductors are expected to rise more than 50% over the next 12 months, according to Barclays Equity Research.
The investment bank said that rapidly expanding data center space “would drive revenue and earnings growth faster than other companies in our coverage.”
CNBC Pro subscribers can read more about the semiconductor stock here.
— Ganesh Rao
16 hours ago
The SVB situation is the result of loose monetary policy, says Leon Cooperman
Silicon Valley Bank went bankrupt on Friday, and investor Leon Cooperman believes the situation is a by-product of the Federal Reserve’s low interest rates.
“This is the result of stupid monetary policy of zero to negative interest rates for a decade,” Cooperman, head of Omega Advisors, told CNBC’s Scott Wapner.
The Fed cut interest rates to zero to stabilize the economy after the 2008 financial crisis. Interest rates stayed low for years until the Fed began raising them in the late 2010s. In 2020, however, the central bank cut interest rates back to zero as Covid-19 spread around the world.
Over the past year, the central bank has raised interest rates to curb inflationary pressures.
—Fred Imbert
15 hours ago
CNBC Pro: “Unprecedented Growth”: Citi is currently revealing its top 4 renewable energy stocks
The world is undergoing “rapid and transformative change” when it comes to energy, Citi said, naming four buy-rated stocks as “top picks” in that space.
CNBC Pro subscribers can read more here.
— Wheat Tan
17 hours ago
Regulators promise access to deposits from Monday
Regulators scrambled to avert a banking crisis over the weekend, with a key objective being to boost “public confidence” in the US banking system.
A joint statement by Treasury Secretary Janet Yellen, Federal Reserve Chair Jerome Powell and FDIC Chair Martin Gruenberg said depositors at Silicon Valley Bank and New York’s Signature Bank were granted access to their bank account as early as Monday will have all the money.
“No losses related to the dissolution of Silicon Valley Bank will be borne by the taxpayer,” they said.
– Christina Cheddar Berk
18 hours ago
Futures jump after regulators announce backstop for SVB depositors
Futures extended gains just before 6:30 p.m. ET after US regulators unveiled a plan to stem the damage from the Silicon Valley bank collapse.
Dow futures were last up 297 points, or 0.9%. S&P 500 futures were up 1.1% and Nasdaq Composite futures were up 1.2%.
– Tanaya Macheel
11 hours ago
European Markets: Here are the opening calls
European markets headed for a higher opening Monday as investors eye the fallout from the Silicon Valley bank crisis.
According to data from IG, the UK FTSE 100 index is expected to open 10 points higher at 7,745, Germany’s DAX 82 points higher at 15,477, France’s CAC up 26 points at 7,228 and Italy’s FTSE MIB up 21 points at 27,312.
Revenue is said to come from Direct Line and there are no major data releases.
— Holly Ellyatt