Business

Credit Suisse shares surge amid $53b loan

Published

2 weeks ago

March 17, 2023

ticker NEWS

The Swiss central bank has agreed to help out

Shares in Credit Suisse have surged after the institution agreed to take a $53 billion loan from the Swiss central bank.

This saw European stocks rebound strongly on Thursday after falling earlier in the day.

The initial fall followed an announcement by Europe’s central bank that it will hike its main interest rate by half a percentage point.

The Banks index, which tracks 42 big E.U. and U.K. banks, closed 1.2 per cent up, while London’s bank-heavy FTSE 100 finished the day 0.9 per cent higher.

Both indexes had fallen on the news the Central Bank will press ahead with rate hikes to help bring down inflation.

Across the pond, it was a similar story.

The S&P 500 bounced 1.7 per cent by early afternoon.

The European Central Bank is pressing ahead with rate hikes, despite the turmoil on global stock markets.

The E.C.B. raised its benchmark rate by another half a percentage point to 3%.

Only a few days ago that had been seen as all but certain.

But doubts had crept in after the rout in global bank stocks, sparked by the collapse of Silicon Valley Bank and worries over the survival of Credit Suisse.

E.C.B. chief Christine Lagarde said stubbornly high inflation meant the bank had to press on with hikes.

But she said policymakers were ready to respond if the situation changed:

“We are monitoring current market tensions closely, and stand ready to respond as necessary to preserve price stability and financial stability in the euro area”.

Rising interest rates have been seen as a major factor in the recent troubles for some banks.

Among other reasons, they tend to lower the value of bonds, which form a vast chunk of the balance sheet for many lenders.

So it was no surprise to see a mixed market reaction.

Euro zone bank shares hit two-month lows after the news, but later rallied.

Credit Suisse shares also seesawed, but remained up around 17% following the morning’s news that it had secured a $54 billion lifeline from the Swiss central bank.

Now attention turns to whether the Federal Reserve will also press ahead with hikes when it meets next week.

After the E.C.B. move on Thursday, markets were pricing in another quarter-point increase.

Business

The possibility of a U.S. recession

Published

2 days ago

March 31, 2023

ticker NEWS

There’s been a lot going on in markets…

It’s been a turbulent time in financial markets, to say the least.

From seeing a banking crisis sweep around the world, to a new global reserve currency start to emerge – there hasn’t been a quiet day on the market.

And there’s also a little bit of Marty McFly meets Bog Iger from Disney, as UBS appoint a former Credit Suisse CEO to help with the merger of the two banks.

AND, the possibility of a U.S. recession…

Chris Uhl from 10minutestocktrader.com joins us to discuss.

Business

Disney trumps DeSantis with legal loophole

Published

3 days ago

March 30, 2023

ticker NEWS

Disney has outplayed Ron DeSantis by leaning on a decades-old royal clause

In February, Florida Governor Ron DeSantis moved to take over Disney World’s governing body.

It was all in retaliation to the company’s public stance against the state’s “Don’t Say Gay” bill.

But now, new reports suggest this whole plan may have backfired.

Members of the new governor-appointed board argue the previous members stripped the board of its power before they left.

It was all part of an agreement, which was approved a day before DeSantis assumed more control of the land around Disney’s theme park.

Disney is leaning on a property law which essentially makes the company the government of the area.

New board member Ron Peri says the board has lost the majority of its ability to do anything beyond maintain the roads and basic infrastructure.

For just under six decades, Disney has operated its expansive theme park and resort in Florida under a specially designated district.

A board oversaw the area and had free reign of development processes.

Disney also had the authority to appoint district board members.

But this special status came under threat when Disney clashed with DeSantis and his “Don’t Say Gay” law.

Florida lawmakers the passed a bill in February to end Disney’s self-governing status and give the governor the authority to appoint new board members to the district.

DeSantis appointed five supervisors, including a parents’ rights activist and three Republican donors.

But the new supervisors say previous board members entered an agreement before they left their positions – effectively stripping them of any powers. #trending #featured

Business

The Power of Play

Published

3 days ago

March 30, 2023

ticker NEWS

Let’s take a look at the history of video games and the exciting future of the gaming industry.

From classic arcade games to the latest consoles and online multiplayer experiences, gamers have been lining up for decades to get their hands on the hottest games.

But what goes on behind the scenes to create these immersive worlds? The Power of Play takes you behind the curtain to explore the hard work and dedication of game developers as they bring these virtual experiences to life.