FirstFT: Ransom Titans Surround SVB

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Good morning.

The world’s largest private equity firms are exploring buying loans from Silicon Valley Bank balances. Premium subscribers can Subscribe to our Due Diligence newsletter for a deeper dive into the failed shore and its aftermath.

Below we have the details of the new OpenAI model that showed “human-level performance” on the US Bar Exam, Advanced Placement Tests, and School SAT exams.

Here’s what else to look out for today:

  • China economic indicators: Today will be published data on industrial production and retail sales for February.

  • UK Budget Day: Energy, or rather its cost, will be a key issue in British Chancellor Jeremy Hunt’s Budget Day speech today.

  • Income: Foxconn will report fourth quarter earnings today and expand its guidance for the first quarter after February sales drop. (Reuters)

Today’s top news

1. The world’s five largest private equity firms are among the buyout groups looking at SVB’s $74 billion loan portfolio. for parts that could fit into their loan portfolios, according to people familiar with the matter. Interest from the Blackstone Group, Apollo Global Management, KKR, Ares Management and Carlyle Group is due to the fact that the firms crowd into the lending industry, which has traditionally been dominated by banks.

2. US Attorney’s Office is investigating the collapse of Silicon Valley Bank following a sharp outflow of customer deposits from the California tech lender, according to a person familiar with the matter. According to media reports, the Securities and Exchange Commission also launched an investigation into the bankruptcy of the creditor. Here’s what we know about the investigations.

3. Russian plane shot down a U.S. drone over the Black Sea American officials called the incident what they called a “reckless” act by Vladimir Putin’s military. While foreign actors are “not uncommon” flying alongside US aircraft over the Black Sea, the incident was unique, according to a White House National Security Council spokesman. “unsafe” and “unprofessional”.

4. Brussels is exploring new controls to limit China’s high-tech acquisitions, after similar actions by the United States. The EU Trade Commissioner told the Financial Times that new restrictions are needed to prevent companies from circumventing export bans on sensitive technologies by making them elsewhere. Read the full story.

5. OpenAI has released GPT-4, its latest AI model. which it claims demonstrates “human-level scores” on several academic and professional tests, such as the U.S. Bar Exam, Advanced Placement Tests, and SAT high school exams. His new software will be used in many applications ranging from Duolingo to Morgan Stanley Wealth Management.

News detailed

Aukus defense pact press conference

While negotiations for the Aukus defense pact focused on how to share some of America’s most secure military technology, the political payoff came in a deal that would create tens of thousands of jobs over decades of work. Industrial bonanza comes as good news, but the deal are still subject to potential delays and risks.

We also read. . .

  • Failure: The failure of the SVB shows that there are holes in the US regulatory dam. This is no coincidence. This is what the lobbyists called for written by Martin Wolf.

  • Peacekeepers: Xi Jinping’s ability to convince Tehran and Riyadh to resume diplomatic relations was a shift that took a lot of people by surprise; this reinforces expectations about what Beijing can do.

  • Payment card: An Englishman who is said to be central to the Wirecard scam is about to be in the spotlight. criminal case in singapore.

Graphics of the day

As China seeks to tighten control over the infrastructure that transmits the world’s data, Beijing has imposed strict requirements for permits to access the underwater data infrastructure. Several industry sources said China’s protection of its waters, including in the maritime areas marked on maps by the controversial “nine-dash line” shown below, is in response to concerns that companies could use the cables as cover for espionage.

Data transfer schedule in the South China Sea

Take a break from the news

Do not miss Our guide to the best Indian restaurants in Hong Kong. From South Indian thalis to fine Punjabi cuisine, Ravi Mattu highlights the city’s best eateries in a menu dedicated to tandoor dishes.

Selection of Indian dishes

Choice of food at Bombay Dreams. . . “The Grand Lady of Fine Indian Cuisine in Hong Kong” © Michael Perini

Additional contributions by Gordon Smith and Ti Zhuo.

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