Overseas Headlines – May 1, 2023

May 1, 2023

United States:

First Republic Becomes Second-Largest Ever US Bank Failure

For just over one month, Silicon Valley Bank was the second-largest bank failure in US history. That was until First Republic Bank, a California lender that catered to wealthy clients, knocked it off that spot.

First Republic was seized by the Federal Deposit Insurance Corp. early on Monday after failing to undo the damage from a flood of customer withdrawals and declining asset prices. The US regulator struck an agreement for JPMorgan Chase & Co. to take over the bank’s assets including $173 billion of loans and $30 billion of securities, as well as $92 billion in deposits, after talks to rescue the lender dragged on for weeks.


United Kingdom:

King’s Coronation Holiday Provides Latest Drag for UK Economy

The extra bank holiday for King Charles III’s coronation is set to drag down what otherwise may be gathering momentum in the UK economy.

Forecasters warned that the additional day off on May 8 will help trigger a 0.7% slide in GDP in May and could tip the economy into a minor contraction in the second quarter.

It will be the second time in a year that royal events have weighed on growth, but analysis suggests the impact of those events is declining.



China’s Mixed Economic Data Fuels Concerns About Recovery

China’s economic recovery remains patchy, with latest indicators pointing to a contraction in manufacturing, while consumers splurge over the holidays and the housing market continues to rebound.

Purchasing managers’ indexes released Sunday showed an unexpected decline in factory activity in April, weighed down by weaker global demand for Chinese exports. Chinese consumers, though, continued to spend on travel and shopping, with early figures from the Labor Day holidays showing a notable jump from last year.




Analyst Certification – The views expressed in this research report accurately reflect the personal views of Mayberry Investments Limited Research Department about those issuer (s) or securities as at the date of this report. Each research analyst (s) also certify that no part of their compensation was, is, or will be, directly or indirectly, related to the specific recommendation(s) or view (s) expressed by that research analyst in this research report.

Company Disclosure – The information contained herein has been obtained from sources believed to be reliable, however its accuracy and completeness cannot be guaranteed. You are hereby notified that any disclosure, copying, distribution or taking any action in reliance on the contents of this information is strictly prohibited and may be unlawful. Mayberry may effect transactions or have positions in securities mentioned herein. In addition, employees of Mayberry may have positions and effect transactions in the securities mentioned herein.