HSBC buys Silicon Valley Bank UK

An hour ago

A fall in SVP 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.

2 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.

2 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 unwinding of a Silicon Valley bank.

3 hours before

HSBC shares fell

4 hours ago

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

6 hours ago

British bank HSBC to buy 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 the continuity of banking services, minimize disruption to the UK technology sector and support confidence in the financial system”.

Silicon Valley Bank surprised investors 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.

11 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

13 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

11 hours ago

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

14 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.

A joint statement from Treasury Secretary Janet Yellen, Federal Reserve Chairman Jerome Powell and FDIC Chairman Martin Grunberg said 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

15 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

8 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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