Key Points “We believe it is time to turn overweight on Growth stocks in Asia/EM again,” Morgan Stanley strategists said in a note. Morgan Stanley forecasts Hong Kong’s Hang Seng Index to gain another 28% from current levels by the end of this year and China’s CSI 300 to gain another 14% Morgan Stanley strategists … Read more
Tetra Images | Tetra Images | Getty Images The recent banking crisis has fueled concern of a “credit crunch” and the resulting negative impact on households, businesses and the U.S. economy. But what is a credit crunch and how might you prepare? Loans would be tougher to get During a credit crunch, banks significantly tighten … Read more
Rate hikes, one year later For its part, the Fed has already hiked its benchmark fund rate eight times over the last year to its current level between 4.5% and 4.75%. The federal funds rate, which is set by the central bank, is the interest rate at which banks borrow and lend to one another … Read more
Axel Lehmann, chairman of Credit Suisse Group AG, left, and Colm Kelleher, chairman of UBS Group AG, during a news conference in Bern, Switzerland, on Sunday, March 19, 2023. Pascal Mora | Bloomberg | Getty Images In equal parts “shotgun wedding” and arranged marriage, UBS agreed to buy stricken domestic rival Credit Suisse for 3 … Read more
U.S. stock futures were lower on Monday as the Swiss government engineered a forced takeover of Credit Suisse by UBS, marking the latest effort by governments around the world to stifle a crisis threatening the banking sector. Dow Jones Industrial Average futures fell by 244 points, or 0.8%. S&P 500 futures were down 0.72%, and … Read more
European stock markets opened lower on Monday after clocking their worst week since September 2022 amid volatility in the banking sector. The pan-European Stoxx 600 index was down 1.4% at 8:30 a.m.m London time, with banks leading losses to plunge 4.8%. Investors in Europe are digesting the news that UBS has agreed to buy its embattled … Read more
The logos of Swiss banks Credit Suisse and UBS on March 16, 2023 in Zurich, Switzerland. Arnd Wiegmann | Getty Images News | Getty Images Shares of Credit Suisse collapsed 62% on Monday morning, while UBS dropped nearly 14% after the latter secured a 3 billion Swiss franc ($3.2 billion) “emergency rescue” of its embattled … Read more
Jakub Porzycki | Nurphoto | Getty Images Regulators in Asia issued reassuring statements Monday that their banking systems remained robust and stable after Swiss banking giant UBS agreed to buy its rival Credit Suisse for $3.25 billion. Swiss regulators played a key role in orchestrating the forced takeover, to stem a larger banking crisis that … Read more
Red pedestrian crossing signs outside a Credit Suisse Group AG bank branch in Basel, Switzerland, on Tuesday, Oct. 25, 2022. Stefan Wermuth | Bloomberg | Getty Images Talks over rescuing Credit Suisse rolled into Sunday as UBS sought $6 billion from the Swiss government to cover costs if it were to buy its struggling rival, a … Read more
People walk by the New York headquarters of Credit Suisse on March 15, 2023 in New York City. Spencer Platt | Getty Images Credit Suisse may have received a liquidity lifeline from the Swiss National Bank, but analysts are still assessing the embattled lender’s prognosis, weighing the option of a sale and whether it is … Read more