Japan’s Topix falls 2%; Asia-Pacific markets fall, Credit Suisse adds to banking concerns

Japan wage talks end, workers get biggest raise in decades: Reuters

Japan’s Ivy League wage talks wrap up Wednesday, Reuters reports – With inflation levels rising, this is the biggest wage increase not seen in decades.

Economists polled by Reuters expect wages across the economy to rise about 3%, the biggest increase since 1997.

Japanese Prime Minister Fumio Kishida called for higher wages for Japanese workers, citing higher import costs in an overall high-inflation environment due to currency depreciation and higher commodity prices, the report said.

——Li Zhihui

First Republic bank to consider options, including sale: Bloomberg

first republic bank Options to add liquidity under consideration, including sale of lender Bloomberg Reportciting people familiar with the matter.

The bank is expected to attract interest from its rivals, but no decision has been made, the report said.

Shares of the bank rose 3.92% in after-hours U.S. trading on Wednesday evening — after rising more than 20% with regional banks earlier this week.

stock chart iconstock chart icon

hidden content

Goldman cuts GDP forecast as small banks come under pressure

Goldman Sachs cut its 2023 economic growth forecast by 0.3 percentage point to 1.2% on Wednesday, citing lower lending by small and medium-sized banks amid turmoil in the broader financial system.

Analysts expect smaller lenders to try to preserve liquidity in case they need to meet withdrawal requests from depositors, leading to a sharp tightening of bank lending standards, which could weigh on aggregate demand. “Small and midsize banks play an important role in the U.S. economy,” they wrote.

The firm noted that banks with less than $250 billion in assets account for about 50% of U.S. commercial and industrial loans.click here read more.

— Pia Singer

SNB: Will provide liquidity to Credit Suisse if needed

The Swiss National Bank said on Wednesday it would offer banking giants Credit Suisse provides liquidity if needed.

The SNB and FINMA said in a joint statement: “FINMA confirms that Credit Suisse meets the higher capital and liquidity requirements applicable to systemically Provide liquidity.”

Credit Suisse shares came under pressure on Wednesday after the bank’s largest investor said no more financial aid would be forthcoming. Credit Suisse’s U.S.-listed shares were last down more than 18%.

— Fred Imbert

Credit Suisse shares fell more than 23% on heavy volume at the open

credit suisse After the opening bell, the stock price fell by more than 23% on heavy volume. Shares fell to an all-time low of $1.75.

Troubles at Swiss banks reignited turmoil in financial stocks, with mid-sized U.S. lenders particularly under pressure.The bank’s largest investor, the National Bank of Saudi Arabia, said it could not provide the company with further financial aid.

-Christina Cheddar Burke

Credit Suisse shares plummet

ADR shares in Swiss bank Credit Suisse fell 21% in premarket trading.

The National Bank of Saudi Arabia said it could not provide more funds, Reuters reports. “We can’t because we’ll be over 10 percent. It’s a regulatory issue,” National Bank Chairman Ammar Al Khudairy told Reuters on Wednesday.

Troubled Swiss bank says earlier this week It found “material deficiencies” in its financial reports for 2022 and 2021.

-John Meloy

Several European bank stocks halt trading after swift sell-off

Several European banks suspended trading on Wednesday as a sharp drop in Credit Suisse shares weighed on the sector — With the market.

Trading in shares in Société Générale and Italy’s Monte dei Paschi and UniCredit have been suspended. Meanwhile, Credit Suisse shares fell 20% after its biggest investor said it would not provide further aid to the struggling bank.

The moves come as traders around the world grapple with the fallout from the collapse of a Silicon Valley bank.

“The failure of Silicon Valley banks has spilled over into European equities,” wrote Citi strategist Beata Manthey. “While U.S. authorities have stepped in to limit the risk of contagion, continued volatility in bank stocks means broader spillovers may still be at play.”

Manthey noted that European markets are ripe for profit-taking. “However, investors remain net-long on European banks despite cutting their maximum long positions only a month ago. This means that further unwinding of positions is still possible.”

—Fred Imbert, Michael Bloom

Source link

Leave a Comment