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Don’t cherry pick the headline davejm read the detail :(
https://m.investing.com/news/stock-market-news/first-citizens-agrees-to-acquire-failed-silicon-valley-bank-3040129?ampMode=1
Listen I’ll say this once as you’re all living in a dream. The US and Asian investors will sell on any sign of a European bank issue going forwards as they did on Friday along with European investors. The terms of the credit Suisse deal hacked off big investors as the Swiss regulator wiped out near 15-17BN in AT1 bonds. Normally there’s a sequence how this works when a bank gets into the problems credit Suisse did which required central bank intervention. The Swiss regulator didn’t follow the sequence persay and wiped the bonds out. The ECB/EU and German chancellor are currently trying to convince and calm the markets they wouldn’t follow the Swiss regulator route. The credit Suisse deal and the swiss regulator have damaged confidence in European banks that will take time to repair. Deutsche bank play a very important part moving money around the EU so if its problems escalates then it will affect the EU block. Deutsche bank and credit Suisse have issue for some years.
Nettles
I rarely read all your posts as there no understanding of how wider stock markets work and the impact against all stocks they causee. Like a few here you’re too emotionally involved in one stock and blinkered to reality. The only reason I’ve not filtered you is you give me a good chuckle pretending to be a cat, when I tell fellow investor friends about it they chuckle too. You’re weird, very much a weirdo in that respect but funny all the same. :)
I am NOT CW….getting really boring people here using any tactic to attack anyone with an alternative position. Kew is another in question as he called it right even after criticism that was very much uncalled for in taking up a different position.
SVB was sorted more or less when the US central bank stepped in with a guarantee to back stop SVB and its depositors. Credit suisse has been a basket case over many years along with deutsche bank too many other issues. Some were expecting deutsche to implode before credit suisse. The concern was wether other banks that defaulted would follow the Swiss regulator route and wipe out bonds hence the ECB/EU clarifying their own position on this that Monday. Deutsche bank are now paying higher insurance fees against default as a result. CDS (credit default swaps) are high at deutsche bank which was concerning as these were a key indicator of the 2008 financial crash. End of week will see wether scholtz and EU have calmed financial markets. You have to understand how the money moves are the EU and deutsche position in that system. Wether deutsche bank will need to be backstopped and depositors protected like in the US time will tell.
Nettles
Talking rubbish again! The Swiss regulator caused the bonds issues when they wiped out 15-17bn worth of bonds in the credit suisse deal. ECB/EU clarified their own position should they be in the same position regards bonds if an EU bank had similar problems. The ECB/EU stopped the rout and turned it around on the Monday after the credit Swiss deal was done or it would have been far worse that day.
As part of the deal for UBS Group AG (UBSG.S) to take over Credit Suisse, the Swiss regulator determined that Credit Suisse's AT1 bonds with a notional value of $17 billion would be wiped out, a decision that stunned global credit markets and angered many holders.
Volatility will remain so as I said there be up and down days whilst uncertainty remains in the financial sector. Wether scholtz and the EU have done enough to calm things Friday we shall see this week to next Friday NOT over one day. IMF released statement on global financial issues over the weekend IMO
PSK
****nal hasn’t a clue, anyone who thinks so should not be investing. US set market up Friday close for a trade Monday. Unless the financial sector stabilises, regains some loses it will pull the wider markets down on liquidity fears. US are still monitoring First Republic bank incase they have to step in.
The only real way out next week if Schultz message doesn’t calm the markets will be for the German government and the ECB to step in with a guarantee to backstop Deutsche banks losses and to guarantee that depositors will be paid in full.
Rubbish. Bond issue came about because of the terms of the swiss regulator deal for credit suisse. ECB/EU counteracted those terms that Monday morning to turn the early falls around. What happens in the EU if deutsche bank needs a bail out by the German tax payers? Do you understand how the money moves around the EU through deutsche bank hence big banks falling around the EU Friday? If Schultz doesn’t calm the markets after speaking Friday what happens, what are the risks? Still unresolved issue on one of the three US regional banks that still needs a buyer. Far from out of woods given the risks in coming weeks. Tricky few weeks ahead where there will likely be a lot more volatility up and down to come IMO
Wasn’t obvious to you when you were telling everyone 165p even when the banks were falling. Explain what the issues are and concerns in the financial sector or are you also avoiding the original question because you don’t now like richierich. Do you actually understand how stock markets works at all or are you going to continue guessing the SP on a daily basis. I’ll take boring all day long from someone who pretends to be a cat, your very strange and a bit of weirdo :) what your top share tips for next week so I can avoid loses on those too.
You’ll probably lose less money on the Casio as if you bought any luxury watch at the peak of Jan 2022 - May 2022 on secondary market before the the bottom fell out of same said market you made a huge loss know. Difficult and nigh impossible to get at MRSP for most people before then so the grey dealers made thousands speculating (scalping) selling acquired stock to fools at silly prices. Grey dealers are sitting on so much secondary market stock from watch flippers they over payed for they’ll take huge loses on the sale of same stock sitting in their safes IMO :) don’t sell the Casio ;)
Nettles
Like richierich you’ll use “any” excuse NOT to answer the question or do you not know either. Please stop using past members or anything else you find to hide your lack of knowledge and emotional investment in this stock. YOU can answer the question on the financial/banking problem for him if you want. You were wrong again last week predicting 165p, have another go as you might guess right eventually. I’ll repeat tho IF the banks don’t recover or keep falling and don’t recover some loses you’ll be wrong yet again! Us traders love blind cat) rampers like you as your great for quick profits on the trade…£7 by 2050 eh! :)
Psk
He said he and everyone knows the issues here so it won’t take him long to tell everyone here will it? I’ll look back Monday to see wether he uses something else to avoid the question again. Getting emotionally involved in one share isn’t good don’t you think? US set it up for a possible trade Monday depending how the stock futures look that day and what happens over the weekend! See you Monday.
PSK
I’m not interested in what the passport office do as it doesn’t affect my portfolio. I will say throwing venoms bile at a group of people as he suggest won’t solve the problem and more likely make it worse. A sound constructive approach to a post makes greater sense on a public forum.
Just to be clear Richie rich has tried Ukraine, his supposed position at his supposed company and wealth along with a trade union dispute. Can you get him to tell us what’s causing concerns in the financial sector and in particular bonds and CDS as he does seem to have the slightest clue or does not know. Maybe you can tell him why RR doesn’t live in a bubble so if the financial sector falls, doesn’t stabilise or regain some loses the wider markets follows it down.
Sully
There are ways to put opinions across. Read through his post as I’m all for opinions but those opinions must be constructive and not with a venoms sense of bile. There are better ways to voice an opinion and be constructive. :)
Steve
The unknown at the moment is which financial institutions have higher exposure in this area if another bank fails. Deutsche bank are paying a high insurance premium to cover them in the event of default. Hence the drop on concerns there today. Elevated CDS (credit default swaps) at deutsche bank have raised concerns about the stability of European banks. Higher value CDS means higher risk of default. CDS was a key indicator of the financial crash in 2008. My concern is when central banks raise interest rates at this speed there is greater risk they break something. That doesn’t mean it happens BUT should be aware of risks.