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By Swissquote Analysts
Morning News

UBS appoints Sergio P. Ermotti as new CEO

Sergio Ermotti has been appointed chief executive of UBS, replacing Ralph Hamers, as a result of the takeover of Credit Suisse, the Swiss bank announced on Wednesday. Sergio Ermotti, who has already been chief executive of UBS for nine years until 2020, will take up his new role on 5 April, the bank revealed.

By
Mathieu VILLARD
Morning News

First Citizens Acquires Much of Failed Silicon Valley Bank

First Citizens, one of the U.S. largest regional banks, is buying large pieces of Silicon Valley Bank more than two weeks after the lender’s collapse sent tremors through the banking system. The Federal Deposit Insurance Corp. said First Citizens is acquiring all of Silicon Valley Bank’s deposits, loans and branches. The purchase includes $56.5 billion in deposits and about $72 billion of SVB’s loans at a discount of $16.5 billion. Some $90 billion of SVB’s securities will remain in receivership. Regulators took control of Santa Clara, Calif.-based SVB on March 10. The collapse sparked a panic that led to the weekend failure of Signature Bank and a dramatic intervention by financial regulators aimed at easing fears that depositors would flee smaller lenders.

By
Mathieu VILLARD
Morning News

Deutsche Bank Stock Tumbles on Contagion Fears

Investors sparked a selloff in Deutsche Bank AG and thrust one of Europe’s most important lenders into the center of concerns about the health of the global financial system. Shares of Germany’s largest lender tumbled as much as 15%, their third consecutive day of losses, though they later regained some ground and closed down 8.5%. The cost to insure against its default using credit-default swaps soared to the highest levels since 2020. The concern over Deutsche Bank emerged days after Credit Suisse Group AG was forced into a takeover by its larger and more stable rival UBS Group AG . Since the collapse of Silicon Valley Bank in the U.S. earlier this month, investors have scoured the globe for institutions perceived as vulnerable. The terms of the UBS takeover of Credit Suisse engineered by Swiss regulators shook European banking markets this week, especially a provision to write down $17 billion of Credit Suisse bonds.

By
Mathieu VILLARD
Morning News

Toshiba Announces $15 Billion Plan to Be Taken Private

Japanese industrial conglomerate Toshiba Corp. said it has agreed to a deal worth ¥2 trillion, equivalent to $15 billion, to take the company private. Toshiba said the buyout would be led by Japan Industrial Partners Inc., a Tokyo-based investment fund. It said the buyers were offering ¥4,620 a share, about 10% above the closing price of ¥4,213 in Tokyo Stock Exchange trading Thursday. That values the company at about ¥2 trillion.

By
David VERELST
Morning News

Fed Raises Rates but Nods to Greater Uncertainty After Banking Stress

The Federal Reserve approved another quarter-percentage-point interest-rate increase but signaled that banking-system turmoil might end its rate-rise campaign sooner than seemed likely two weeks ago. The decision marked the Fed's ninth consecutive rate increase aimed at battling inflation over the past year. It will bring its benchmark federal-funds rate to a range between 4.75% and 5%, the highest level since September 2007. Officials sent a hint that they might be done raising interest rates soon in their post meeting policy statement.

By
David VERELST
Morning News

Nike Sales Jump as It Works Through Inventory Glut

Nike Inc. made progress working through the inventory glut that squeezed the sneaker maker last year, reporting a 14% jump in quarterly sales and raising its revenue growth target. The sportswear company said its inventory increased 16% in the quarter ended Feb. 28 compared with the same period a year ago. Inventories had swelled by more than 40% in each of the prior two quarters. The company ended February with $8.9 billion of inventories, down from $9.3 billion at the end of November

By
Mathieu VILLARD
Morning News

Credit Suisse Bond Wipeout Threatens $250 Billion Market

Credit Suisse Group AG's emergency merger with UBS Group AG will wipe out the bank's riskiest bonds, rattling investors in the quarter-trillion-dollar market for similar bank debt. About 16 billion Swiss francs, or about $17.3 billion, of the bank's additional tier 1 bonds will be completely written down, Switzerland's financial regulator, Finma, said in a Sunday statement. Credit Suisse also said it was informed by Finma that the bonds would be "written off to zero." European and Asian AT1s fell Monday with one of the bonds issued by HSBC Holdings PLC dropping 8% to 88 cents on the dollar in heavy trading. A roughly $1 billion AT1 exchange-traded fund from Invesco dropped 8.7%, while a similar ETF from WisdomTree slid 6.3% in recent trading.

By
Mathieu VILLARD
Morning News

UBS Agrees to Buy Credit Suisse for More Than $3 Billion

UBS Group AG agreed to take over its longtime rival Credit Suisse Group AG for more than $3 billion, pushed into the biggest banking deal in years by regulators eager to halt a dangerous decline in confidence in the global banking system. The deal between the twin pillars of Swiss finance is the first megamerger of systemically important global banks since the 2008 financial crisis when institutions across the banking landscape were carved up and matched with rivals, often at the behest of regulators. The Swiss government said it would provide more than $9 billion to backstop some losses that UBS may incur by taking over Credit Suisse.

By
Mathieu VILLARD
Morning News

ECB Defies Mounting Banking Strains with Half-Point Rate Rise

The European Central Bank raised interest rates by a half percentage point, pressing ahead with its fight against inflation despite concerns that this could exacerbate strains in the financial system. The ECB said in a statement that it would increase its key rate to 3%, the highest level since 2008, while promising to provide liquidity support to the financial system if needed. The move follows consecutive half-point rate increases in February and December.

By
David VERELST
Morning News

Credit Suisse Will Borrow Up to $53.7 Billion

Credit Suisse Group, the Swiss bank whose shares tumbled Wednesday as fears about the health of global banks jumped the Atlantic Ocean, said it would exercise its option to raise as much as 50 billion Swiss francs, equivalent to $53.7 billion, from the Swiss National Bank in a bid to stanch liquidity concerns. The firm, based in Zurich, called the decision a “decisive action to pre-emptively strengthen its liquidity.” Credit Suisse added that the move “would support Credit Suisse’s core businesses and clients as Credit Suisse takes the necessary steps to create a simpler and more focused bank built around client needs.”

By
Nadine PEREIRA