FirstFT: SVB collapse hit global markets
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The consequences of the collapse of the Silicon Valley bank remain a big topic today. The Federal Reserve has announced it will conduct a review of how the bank has been subject to oversight and regulation as the US central bank comes under fire.
Meanwhile, about 500 miles south of California’s Silicon Valley, U.S. President Joe Biden and his Australian and British counterparts gathered in San Diego this morning to announce a historic partnership as they work to confront China in Indo-Pacific. Pacific region.
Here’s what else to look out for today:
Bangladeshi-English cricket: Tonight’s Twenty20 International cricket match in Dhaka, Bangladesh will be the final match of the series.
Net Zero Industry Law: Brussels is presenting the proposal as part of its broader industrial Green Deal plan.
US inflation: The numbers are expected to show that consumer prices rose at an annual rate of 6 percent in February, according to economists’ forecast compiled by Bloomberg.
Today’s top news
1. Investors are refuting their predictions of further interest rate hikes and bank stock dumps around the world. after the bankruptcy of Silicon Valley Bank. The 2-year US Treasury yield, which fluctuates with interest rate expectations, hit a record high. biggest one-day drop since 1987.
2. HSBC averted a crisis in the UK tech sector by bailing out Silicon Valley Bank UK., a sell-off concluded after overnight talks led by Prime Minister Rishi Sunak and the Bank of England. Deal to be seen HSBC pays symbolic £1 for SVB UKallows the UK government not to intervene to protect depositors.
3. The US, UK and Australia unveiled a decades-long project to supply Canberra with nuclear submarines.. According to the three-stage planAustralia and the UK will jointly build a new submarine based on a modified version of a next-generation boat that the UK has already designed.
4. Xi Jinping promised to strengthen China’s security and turn the military into a “great wall of steel.” protect the interests of the country, since relations with the West have reached their lowest point in decades. Read more in Xi’s speech yesterday at the closing of the annual National People’s Congress.
5. Pfizer has offered to buy drug developer SeaGen in a $43 billion deal. Mastery expands Pfizer’s cancer portfolio as it faces declining sales related to Covid-19 treatment.
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Venture capital firms and tech start-ups appear to have averted the crisis after the collapse of the SVB thanks to emergency measures by the Federal Reserve to bail out savers. But relief has been replaced by a series of bitter accusations as VCs contemplate the payback: By abandoning SVB, they helped create a gaping hole in the heart of Silicon Valley.
We also read. . .
Schedule of the day
According to the Bank for International Settlements, about 85 central banks are involved in projects to create digital currencies. Nevertheless enthusiasm does not match the citizens they representmany of whom see central bank digital currencies as an invasion of their privacy.
Take a break from the news
The colors on the Oscar champagne carpet were muted, but there were still plenty of vibrant colors. outstanding views of Hollywood’s biggest night.
Before you leave, what was the Beatles’ last hit before the band broke up? Try your hand at 2-down at our crossword in FT app.
Additional contributions by Gordon Smith and Ti Zhuo.
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