7 minutes ago
British bank HSBC acquires Silicon Valley Bank UK
British bank HSBC is acquiring Silicon Valley Bank UK Limited, the Bank of England reports.
The Bank of England said the action was taken “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 sparked turmoil in the banking sector and broader markets when it surprised investors on Wednesday with news that it needed to raise $2.25 billion to strengthen its balance sheet and that it had sold all of its bonds at a $1.8 loss billion.
The bank was subsequently closed by regulators after customers withdrew $42 billion in deposits late Thursday.
HSBC said it will buy SVBUK for £1.
— Hannah Ward-Glenton and Matt Rosoff contributed to this report.
5 hours ago
CNBC Pro: Shares of this little-known global chip company will rise 50%, says Barclays
Shares of a UK-based technology company that 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 a fast-growing data center space would “drive revenue and profit growth faster than other companies in our coverage.”
CNBC Pro subscribers can read more about the semiconductor stock here.
— Ganesha Rao
7 hours ago
SVB situation is the result of loose monetary policy, says Leon Cooperman
Silicon Valley Bank went under on Friday, and investor Leon Cooperman thinks the situation is a by-product of the Federal Reserve’s low interest rates.
“This is the result of a ten-year stupid monetary policy of zero-to-negative rates,” Cooperman, the head of Omega Advisors, told CNBC’s Scott Wapner.
The Fed cut interest rates to zero to stabilize the economy after the 2008 financial crisis. Interest rates remained low for years until the Fed began raising in late 2010. However, in 2020, the central bank brought interest rates back to zero as Covid-19 spread around the world.
Over the past year, the central bank has raised interest rates to contain inflationary pressures.
— Fred Imbert
5 hours ago
CNBC Pro: ‘Unprecedented Growth’: Citi Now Reveals Its Top 4 Stocks in Renewables
The world is going through “rapid and transformational change” when it comes to energy, Citi said, naming four buy-rated stocks as “top picks” in the space.
CNBC Pro subscribers can read more here.
— Weizhen Tan
8 hours ago
Regulators promise access to deposits from Monday
Regulators rushed this weekend to avert a banking crisis, with the main goal of “strengthening public confidence” in the US banking system.
A joint statement from Treasury Secretary Janet Yellen, Federal Reserve Chair Jerome Powell and FDIC Chair Martin Gruenberg said depositors at Silicon Valley Bank and New York’s Signature Bank will have access to all of their money starting Monday.
“Losses associated with the resolution of Silicon Valley Bank will not be borne by taxpayers,” they said.
— Christina Cheddar Berk
9 hours ago
Futures jump after regulators announce backstop from SVB depositors
Futures extended gains just before 6:30 p.m. ET after US regulators unveiled a plan to contain the damage from the Silicon Valley Bank collapse.
Dow futures were up 297 points recently, or 0.9%. S&P 500 futures were up 1.1% and Nasdaq Composite futures were up 1.2%.
— Tanaya Machell
2 hours ago
European markets: Here are the opening calls
European markets are heading for a higher opening Monday as investors scrutinize the fallout from the Silicon Valley Bank crisis.
The UK FTSE 100 index is expected to open 10 points higher at 7,745, the German DAX 82 points higher at 15,477, the French CAC 26 points higher at 7,228 and the Italian FTSE MIB 21 points higher at 27,312, according to data from IG.
Revenue will come from Direct Line and there will be no major data releases.
— Holly Ellyatt
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