May 1, 2023
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.
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.
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