Scroll down to see last week’s recap.
Events:
Tuesday, 14th of March:
- US CPI m/m and US CPI y/y are both expected to decrease in February compared to January 2023 and February 2022, respectively. The first is expected to decrease from 0.5% to 0.4% and the latter from 6.4% to 6.0%.
US CPI stands for “United States Consumer Price Index,” which is a measure of the average change over time in the prices that consumers pay for a basket of goods and services. CPI m/m and CPI y/y are used to monitor inflation and can impact the decisions of policymakers and investors. A higher CPI indicates that prices are increasing, while a lower CPI suggests that prices are stable or decreasing.
Wednesday, 15th of March:
- The Retail Sales indicator for February is expected to decline to -0.3% compared to 3.0% in the previous month. It refers to the monthly percentage change in the total value of retail sales in a country. This is a key economic indicator that provides insight into consumer spending behavior and overall economic activity. A positive figure indicates an increase in retail sales, which can be a sign of economic growth, while a negative figure suggests a decrease in retail sales, which may indicate a slowdown in the economy. The report typically includes data on sales of different categories of goods, such as clothing, electronics, and food, and can provide insights into trends in consumer behavior and spending patterns.
- The PPI (Producer Price Index) for February is expected to decline to 0.3% compared to 0.7% in January. It measures the average changes in prices received by domestic producers of goods and services over time. PPI is an important economic indicator as it can provide insights into inflation trends and the overall health of the economy. When PPI is high, it suggests that producers are experiencing higher costs, which can be passed on to consumers through higher prices, potentially leading to inflation. Conversely, when PPI is low, it suggests that producers are experiencing lower costs, which can lead to lower prices for consumers.
Friday, 16th of March:
- The Australian unemployment rate for February is expected to decrease to 3.6% compared to 3.7% in the previous month. It is the percentage of the total labor force in Australia that is unemployed but actively seeking employment and available to start work. The indicator is calculated by dividing the number of unemployed individuals by the total labor force, which includes both employed and unemployed individuals who are actively seeking employment. The unemployment rate is an important economic indicator as it provides insight into the health of the labor market and the overall state of the economy. High levels of unemployment are generally associated with a weaker economy, while low levels of unemployment indicate a stronger economy.
Notable Earnings:
Recap from Last Week (06.03.23 – 10.03.23):
- Silicon Valley Bank (SIVB), a prominent bank in the region, suffered losses of $1.8 billion due to rising interest rates and declining customer deposits. In an effort to stabilize its business, the bank announced plans to raise money through the sale of common stock to investors and preferred shares to General Atlantic. However, the announcement coincided with the news of another bank winding down operations, and Silicon Valley Bank’s press release was received poorly, causing its shares to drop by more than 80%. The bank’s CEO, Greg Becker, tried to reassure customers, but many are withdrawing their money, and the future of the bank remains uncertain. It is speculated that another bank like Goldman Sachs might step in to acquire it.
- On Friday morning, shares of First Republic Bank (FRC) experienced a 31.18% decline, trading at $66.03. This decline was driven by downward momentum in the regional banking and financial institution sector, following SVB Financial Group’s announcement of a $1.25 billion common stock offering on Wednesday. On Friday during pre-market trading, SVB Financial Group halted for code news pending, and CNBC’s David Faber reported that the proposed capital raise had failed, with the company in talks to sell itself. Moreover, social media traders and investors are suggesting that First Republic Bank may also face fundamental issues similar to SVB Financial, due to its heavy exposure to venture capital.
Crypto:
- The Federal Reserve’s Vice Chairman for Supervision, Michael Barr, announced the formation of a “specialized team of experts” to protect the cryptocurrency sector, emphasizing the importance of staying informed about innovation in the field. Barr acknowledged the potential transformative effect of cryptocurrencies on the financial system and defended the Fed’s “light-touch approach” to smaller institutions, giving them more time to address potential risks. Meanwhile, Bitcoin and Ethereum recovered slightly after suffering from jitters caused by Silvergate Capital Corp’s decision to close and President Biden’s new tax proposals for cryptocurrency mining.
- On Thursday, the U.S. Trustee’s Office filed an appeal challenging a New York bankruptcy judge’s approval of Binance.US’s billion-dollar acquisition plan for Voyager Digital’s assets. This move followed objections from regulators, including the SEC, who argued that Binance.US may be violating federal securities laws. Despite this, Judge Michael Wiles approved the deal, citing the need to take action for creditors waiting on their investments. Voyager’s proposed sale to Binance.US could result in an estimated 73% recovery for customers and has the support of 97% of creditors. However, if the deal fails or regulators block the sale, Voyager may have to liquidate, leading to smaller returns for creditors.
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