The Credit Suisse Uncertainty Continues
Investors are worried about a credit crisis, UBS may cut tens of thousands of CS jobs, Google launched Bard AI to rival ChatGPT, GameStop went 2021 stonk mode again, and RBC tightened its return to office mandate.
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Daddy Dimon to the Rescue
Switzerland put up $280B for CS bailout, Jamie Dimon is leading rescue plan talks for First Republic Bank, Saudi National Bank lost $1B on its Credit Suisse investment, Credit Suisse will pay out bonuses/pay rises despite rescue takeover, Amazon is cutting 9k employees, Netflix is developing a cloud gaming service, and TikTok hit 150M US monthly users.
Litquidity Capital /
Credit BS
UBS is acquiring Credit Suisse for $3.25B, BoE is weighing ending its rate hike run, Americans are piling into T-bills, Goldman lost $200M in the market turmoil after SVB's collapse, Biden wants to ban execs of failed banks from the industry, and Berkshire has spent $1.8B on buybacks in 2023.
Litquidity Capital /
Pornhub Goes PE
Pornhub's owner sold to a Canadian PE firm, big banks came to First Republic's rescue, the ECB hiked rates by 50 bps,European regulators accused the US of incompetence over SVB collapse, EY's breakup plan stalled, and Goldman raised US recession probability to 35%.
Litquidity Capital /
Debit Suisse
Credit Suisse had a rollercoaster 24 hours, the UK expects to avoid a recession this year, short sellers have built positions worth $16B+ against European banks, BofA is benefiting from the SVB failure, First Republic's credit rating was downgraded to junk, and the US threatened to ban TikTok if its Chinese owners don't sell their stakes.
Litquidity Capital /
AMC Apes Down Horrendous
Stocks bounced back after the global financial sector did not collapse, bank stocks recovered some of their recent losses, CPI growth slowed to 6% in February, Moody's outlook on the US banking system turned negative, Argentina inflation passed 100%, TikTok may split from ByteDance, OpenAI unveiled GPT-4, Meta scrapped its NFT plans, and AMC announced a reverse stock split.
Litquidity Capital /
Chick-fil-A Going Global
Biden insists that the banking system is safe, the ECB sees limited Europe consequence from US banking collapse, HSBC will inject $2.4B of liquidity into SVB's UK arm, bonds are rallying hard while yields plunge amidst banking fears, First Republic Bank's shares fell 62%, Chick-fil-A is planning a $1B Asia/Europe expansion, and Amazon and Rivian are revising their EV delivery truck deal.
Litquidity Capital /
Crisis Averted
Regulators closed Signature Bank in the second bank failure in recent days, SVB and Signature Bank depositors will have full access to their funds today, US 1Y CDS hit a record high 83 bps, Japan equity funds saw their largest weekly outflow since 2018, Saudi Aramco had a record 2022 profit, and Meta is planning new job cuts.
Litquidity Capital /
Bank Runs Are SO Back
Silicon Valley Bank had to raise $2.25B to shore up its balance sheet, Ark has topped $300M in fees since inception, investors are pulling money out of corporate bond ETFs, the remote work job market is shrinking, Apple is planning an India expansion, and Spotify has a TikTok-like redesign.
Litquidity Capital /
Kanye Rugged Adidas
Crypto-focused bank Silvergate Capital is shutting down, J Pow said the Fed has not yet decided on the size of its next rate hike, eurozone Q4 GDP growth was revised downward to 0%, Japan posted its largest current account deficit ever in January, EY paused plans to split in two, and Adidas is projecting its first annual loss in 31 years this year.
Litquidity Capital /