The spill-overs within German regional banks from the CRE crisis are increasing. Will this turn into a topic for the ECB or for German politicians?
The issues in the Red Sea are spreading from containers to dry bulk and energy. The impact from the Red Sea will not be seen short-term, but it may prove to be a sneaky and relatively lasting positive impact on inflation.
Is the current energy crisis reminiscent of 2022? We compared the energy crisis 2.0 to the 1.0 crisis of 2021/2022 and díscuss the trading playbook in such a scenario. Enjoy (the crisis)!
A WSJ article suggested that US banks will be required to hold up to 20% more capital should the Basel rules be fully implemented by 2025. The Fed is likely to present a new direction for regulation by the end of this month according to sources. How severe is this? Here are the numbers..
This week really has been one for the books. On Friday, markets sounded the alarm as we experienced the second largest bank-failure in US history. Naturally, this behemoth event swept magazine covers and blew up our phones and inboxes leaving not much room for other things to watch – hence this peculiar edition of the recurring ‘5 Things We Watch’, where all five things relate to the banking frenzy.
The hiking cycle seems over, even if inflation is running too hot. Lower rates are likely needed to resteepen the curve and tempt money back into deposits from bills and money market funds. The Fed is caught between a rock and hard place.
Silicon Valley Bank is under water on the exchange and a bank-run is currently unfolding it seems. Should we be worried? A few notes from a night of full of telcos.