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Bank Crisis

All articles tagged with #bank crisis

business2 years ago

US Economy Faces Uncertainty Amid Bank Crisis, Consumer Spending, and Dollar Strength

The US economy faces challenges with continuing bank crisis and company bankruptcies, but the S&P 500 saw a weekly gain due to encouraging inflation data and weaker-than-expected Q1 economic growth. First Republic Bank's deposits dropped nearly 41% in Q1, causing concern among investors. Bed, Bath & Beyond filed for Chapter 11 bankruptcy protection and will be delisted from Nasdaq. Meta Platforms reported positive revenue growth, while Chipotle Mexican Grill beat analyst expectations. More quarterly reports from Ford, Uber, AMD, and Apple are expected. S&P 500 net profit margins are on track to decline for the seventh consecutive quarter. The Federal Reserve will release its latest interest rate decision and the Labor Department will release the April US jobs report.

via Benzinga|
#bank-crisis#business#company-bankruptcies
economy2 years ago

US Economic Growth Stalls Amid Bank Woes and Consumer Spending Slowdown

The US economy is losing steam due to nervous shoppers dialing back their spending and anxious lenders keeping a tight grip on credit. The economy is projected to lose more steam in the months to come, as rising prices and higher interest rates take a toll on families and businesses. Although the fast-food chain McDonald's reported strong sales so far in 2023, customers are less likely to splurge after two years of rising food costs. The Federal Reserve is still raising interest rates, and the ill effects of the banking crisis suggest that growth through the remainder of this year and into next is going to be very much on the soft side. Politics could also pose a risk, as members of Congress squabble over the federal government's debt limit.

via NPR|
#bank-crisis#consumer-spending#debt-limit
finance2 years ago

First Republic's Q1 Earnings Report: A Look at the Bank's Performance Amid Crisis.

First Republic Bank is set to release its first-quarter earnings report, which will reveal the extent of the damage caused by deposit outflows at the bank. The bank has been at the center of a crisis of confidence in midsize and smaller U.S. banks, and concerns have mounted about other lenders facing a liquidity crunch. First Republic had to be rescued by JPMorgan Chase & Co. and other big banks last month.

via The Wall Street Journal|
#bank-crisis#deposit-outflows#earnings-report
finance2 years ago

Earnings anticipation causes stock market fluctuations.

US stocks were mostly flat at Monday's market open ahead of another round of critical earnings. Bond yields were up, while gold futures held on to key levels above $2,000 per ounce. Earnings season will pick up steam, with another host of bank earnings on deck this week. Meanwhile, investor favorites Netflix, Lockheed Martin, Johnson & Johnson, and Tesla are expected to post quarterly earnings. Housing data will take center stage with NAHB Housing Index data, housing starts, existing home sales, and mortgage rate and application data all expected to be updated this week, offering a picture of the housing market amid a slightly softening rate environment.

via Yahoo Finance|
#bank-crisis#earnings#federal-reserve
finance2 years ago

IMF Urges Central Banks to Focus on Inflation Amidst Risks from Bank Crisis and Weak Global Growth.

The IMF has stated that the risks from the recent bank crisis appear to be contained for now, and that inflation is the bigger risk and top concern for central bankers and attendees of the IMF/World Bank spring meetings this week in Washington. The IMF warns that the risks of tighter monetary and financial conditions could be amplified because of financial leverage, mismatches in asset and liability liquidity, and a high degree of interconnectedness between the nonbank financial intermediation sector and traditional banking institutions.

via Yahoo Finance|
#bank-crisis#central-banks#finance
finance2 years ago

Fed's Williams Addresses Uncertainty in Bank Crisis Impacts and Policy Outlook.

New York Fed President John Williams said that the magnitude and duration of the impact of the recent bank crisis on credit conditions is still uncertain. He added that the Fed's policy decisions will be driven by incoming economic data, particularly on inflation and the job market. Williams expects inflation to decline to around 3.25% this year, before moving closer to the Fed’s goal in the next two years. He also expects the economy to grow modestly this year and for growth to pick up somewhat next year, though he expects to see the unemployment rate rise to 4.5% over the next year, up from 3.6% as of February.

via Yahoo Finance|
#bank-crisis#credit-conditions#economic-data
finance2 years ago

Market Rally Boosted by Strong Earnings Results and Positive Outlooks from Tech Giants.

Dow Jones futures rose along with S&P 500 futures and Nasdaq futures after a strong session for the stock market rally. A number of stocks are flashing buy signals, including Micron stock, Microsoft, Shift4Payments, Mobileye Global, STMicroelectronics, Wynn Resorts, DraftKings, Rambus, Skyline Champion, and Workday. The stock market is gaining some steam as the bank crisis appears to have peaked while Fed rate hikes are over, or nearly so.

via Investor's Business Daily|
#bank-crisis#buy-signals#finance
finance2 years ago

"Stocks Surge on Strong Earnings and Positive Outlooks"

The stock market rally is gaining momentum as the bank crisis appears to have peaked and Fed rate hikes are over or nearly so. A number of stocks are flashing buy signals, including Micron, Microsoft, Shift4Payments, Mobileye Global, STMicroelectronics, Wynn Resorts, DraftKings, Rambus, Skyline Champion, and Workday. Investors should gradually add exposure, but it's important to update watchlists and stay engaged. The market direction and leading stocks and sectors should be monitored daily.

via Investor's Business Daily|
#bank-crisis#buy-signals#fed-rate-hikes
finance2 years ago

Navigating the Dual Challenges of Banking Crisis and Inflation for the Fed

The recent bank crisis, including the failure of Silicon Valley Bank and troubles at Credit Suisse and Deutsche Bank, is a shot across the bow for the Federal Reserve. The Fed will likely have to start the end-game sooner rather than later, and the market is already rallying in anticipation of a pivot from the Fed to stop raising rates. However, the drying up of liquidity from banks pulling back on credit will likely hurt small and medium-sized businesses, which make up a significant portion of the US economy. The author recommends investing in big-cap tech, aerospace and defense, and oil refiners, while cautioning against commercial office REITs.

via Seeking Alpha|
#bank-crisis#federal-reserve#finance
finance2 years ago

Bitcoin's Rise Amid Banking Turmoil: A Market Game Changer?

Bitcoin is experiencing a surge in value following a recent bank crisis, with investors turning to the cryptocurrency as a safe haven asset. The market for Bitcoin has seen a significant increase in demand, with many seeing it as a viable alternative to traditional banking systems. As a result, the value of Bitcoin has skyrocketed, making it an attractive investment option for those looking to diversify their portfolios.

via The Wall Street Journal|
#bank-crisis#bitcoin#cryptocurrency
cryptocurrency2 years ago

Bitcoin's Rise Amidst Banking System Shocks and Interest in Self-Custody Startups.

Bitcoin has risen 21% this month, while the S&P 500 has lost 1.4% and gold has gained 8%, making it look like a safe haven amidst the current banking crisis. Bitcoin's 30-day correlation with the S&P 500 has slid to negative 0.12 over the past week, indicating that the two assets are moving in opposite directions. The cryptocurrency's allure hasn't all been about safety, as the rapid price rise has forced some short-sellers to cut their bets and buy coin back. Nonetheless, bitcoin is resurgent, commanding nearly 43% of the total crypto market, its highest share since last June.

via Reuters|
#bank-crisis#bitcoin#cryptocurrency
finance2 years ago

Bank Execs Fear More Crisis as Yellen Downplays Liquidity Strength

Top financial executives have identified as many as 25 regional and mid-sized banks in the US that are ripe for failure, signaling a greater degree of banking rot. While Treasury Secretary Janet Yellen has called the US banking system "sound," CEOs say she has failed to grasp the full magnitude of the problem. The collapse of these banks could wipe out trillions in assets and deposits, making the scare number of nearly 200 banks in danger of imploding imminently possible and ratcheting up the chances of a deep recession. The CEOs are likening it to the thrift crisis of the late 1980s and early 1990s, and are calling for leadership from Washington to recognize the problem and find a broader solution.

via New York Post |
#bank-crisis#finance#janet-yellen
finance2 years ago

US Banking System at Risk: Regulators Knew of SVB-Type Collapse Five Years Ago.

A report from the Financial Stability Oversight Council (FSOC) shows that regulators knew about the risk posed by Silicon Valley Bank's (SVB) high proportion of uninsured deposits five years before its collapse, but no action was taken to reduce the risk. The report warned that uninsured deposits are at a much higher risk of bank runs than insured deposits. Despite this, regulators approved SVB's merger and did not subject the bank to enhanced supervision. Experts say high proportions of uninsured deposits are a major bank-run risk factor that should have prompted regulatory action.

via The Lever|
#bank-crisis#finance#financial-stability-oversight-council
finance2 years ago

Credit Suisse's Struggles Spark Fear of Banking Crisis Contagion on Wall Street.

Wall Street closed lower on Friday amid fears of a banking crisis contagion and the possibility of a recession. Financial stocks were down the most among the major sectors of the S&P 500, with the S&P Banking index and the KBW Regional Banking index both plunging by about 21% over the last two weeks. Investors are now looking to the Federal Reserve's two-day monetary policy meeting next week. The Dow Jones Industrial Average fell 1.31%, the S&P 500 lost 1.17%, and the Nasdaq Composite dropped 0.8%.

via Reuters|
#bank-crisis#federal-reserve#finance