HSBC buys Silicon Valley Bank UK

22 minutes ago

Stocks on the move: Balder down 4.8%, Wise down 12%

Swedish real estate firm Fastighets AB Balder was the top European stock in afternoon trade, rising 4.8% amid a broadly lower Stoxx 600 index.

Fintech forex platform Wise fell 12% declares Although it told Reuters it had “minimum exposure,” it had funds in the collapsed Silicon Valley bank.

European tech stocks fell 1.85% overall.

Meanwhile, banks were some of the worst performing stocks, with Commerzbank down 11.4% and Credit Suisse down 8.9%.

– Jenny Reid

34 minutes ago

US stocks are high

An hour ago

UBS says HSBC sale ‘driven by profit-taking’

UBS analysts said in a note that HSBC’s share price fall was “driven by profit-taking, not fundamental weakness” following news that it would buy the Silicon Valley bank’s UK subsidiary for £1 ($1.21).

HSBC confirmed the acquisition, excluding the assets and liabilities of SVB UK’s parent company, Silicon Valley Bank.

“We think the 9% decline in stocks since Wednesday is profit-taking and the sector cycle means no change in outlook: deposit competition increases the value of the best deposit holders,” UBS said.

“We see room for unanticipated value creation through volumes, cost reductions (US, UK) and potential disposals.”

In the broader banking sector, the SVB crisis will lead to more liquidity regulation for banks, investor preference for larger banks over smaller banks and more competition for retail-focused banks and deposits over business-focused banks, analysts said. 2024-25 to reduce net interest limits.

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HSBC share price.

4 hours ago

A fall in SVP’s decline is unlikely to prevent interest rates from rising, analyst says

April LaRusse, head of investment specialists at Insight Investment, says there is still “very, very high” inflation.

5 hours ago

Banks are incredibly cheap right now, but the CIO argues there is no major upside amid low growth

Patrick Armstrong, chief investment officer at Plurimi Wealth LLP, discusses the latest on the SVB fallout and where the central bank and investors can go from here.

5 hours ago

Investors should assess banks’ net interest margins in wake of SVB fall, says investment director

Russ Mold, investment director at AJ Bell, weighs in on the unraveling of Silicon Valley Bank.

6 hours ago

HSBC shares fell

7 hours ago

European banks below Stoxx 600 index; BAWAG fell 9%, Commerzbank fell 8%

9 hours ago

British bank HSBC acquires Silicon Valley Bank UK

British bank HSBC will acquire Silicon Valley Bank UK Limited, according to a Bank of England statement.

The Bank of England said the move was “to stabilize SVBUK, ensure continuity of banking services, minimize disruption to the UK technology sector and support confidence in the financial system”.

Silicon Valley Bank surprised investors on Wednesday by raising $2.25 billion to shore up its balance sheet and selling all of its securities at a loss of $1.8 billion.

The bank was shut down by regulators after customers withdrew $42 billion in deposits by the end of Thursday.

HSBC said it would buy SVBUK for £1.

— Hannah Ward-Glenton and Matt Rosoff contributed to this report.

14 hours ago

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CNBC Pro: Barclays says shares of this little-known global chip company could rise 50%

Shares of the UK-based technology company, which designs 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 the fast-growing data center space is “expanding sales and profit growth faster than any other company in our coverage.”

CNBC Pro subscribers can read more about semiconductor stocks.

– Ganesh Rao

16 hours ago

The SVB situation is a result of easy monetary policy, says Leon Cooperman

Silicon Valley Bank went under on Friday, and investor Leon Cooperman thinks the situation is a byproduct of low interest rates from the Federal Reserve.

“This is the result of a decade of stupid monetary policy of zero to negative rates,” Cooperman, president of Omega Advisors, told CNBC’s Scott Wapner.

The central bank cut rates to zero to stabilize the economy after the 2008 financial crisis. Rates remained low for years until the Fed began raising them in the late 2010s. However, in 2020, the central bank brought rates back to zero as Covid-19 spread across the globe.

Over the past year, the central bank has been raising rates to curb inflationary pressures.

– Fred Imbert

14 hours ago

CNBC Pro: ‘Unprecedented Growth’: Citi Now Reveals Its 4 Best Holdings in Renewables

17 hours ago

Regulators are promising access to deposits from Monday

Regulators scrambled to avoid a banking crisis over the weekend, with a key objective of “strengthening public confidence” in the US banking system.

Treasury Secretary Janet Yellen, Federal Reserve Chairman Jerome Powell and FDIC Chairman Martin Grunberg said in a joint statement that depositors at Silicon Valley Bank and New York Signature Bank could have access to their money as soon as Monday.

“Any loss associated with Silicon Valley Bank’s resolution will not be borne by taxpayers,” they said.

– Christina Seder Berg

18 hours ago

Futures rose after regulators announced a freeze on SVB depositors

Futures extended their gains as early as 6:30 p.m. ET after U.S. regulators unveiled a plan to limit damage from the collapse of Silicon Valley banks.

Dow futures were last up 297 points, or 0.9%. S&P 500 futures rose 1.1% and Nasdaq Composite futures advanced 1.2%.

– Tanaya Machel

11 hours ago

European markets: Here are the opening calls

European markets Silicon Valley opened higher on Monday as investors watched the fallout from the banking crisis.

UK’s FTSE 100 index is expected to rise 10 points to 7,745, Germany’s DAX is expected to rise 82 points to 15,477, France’s CAC is up 26 points to 7,228 and Italy’s FTSE MIB is expected to rise 21 points to 27,312.

Income comes from direct taxes and there are no big data releases.

– Holly Elliott

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