May 3, 2023
United States:
Busted Banks Wipe Out $54 Billion of Stocks, Bonds During Turmoil
The collapses that claimed four US lenders this year have stuck investors with more than $54 billion of losses, after First Republic Bank’s demise added to the pile of nearly worthless securities and sent some peers into a new tailspin.
The tally includes $46.9 billion of market capitalization erased since Feb. 28, just before the bank turmoil began in earnest, and about $7.5 billion gone from bonds and preferred shares, according to calculations by Bloomberg. Combined, the shares of all four as of Tuesday had only about $725 million of value remaining — and when bank failures are completely resolved, there’s typically nothing left at all.
Europe:
Europe’s Banks See Drop in Loan Demand But Stay Upbeat on Profit
Banks in Europe are facing flagging demand for loans amid rising borrowing costs and industry turmoil, but they remain optimistic about profitability from higher lending rates.
HSBC Holdings Plc Chief Executive Officer Noel Quinn this week said loan growth was “subdued” in the first quarter and may stay so for three more months. UniCredit Spa and Deutsche Bank reported lower loan volumes, while the German lender said it’s planning to cut back its mortgage business as rising rates bite.
Asia:
India Services Activity Rises to Highest in Almost 13 Years
India’s services activity accelerated at the quickest pace in almost 13 years in April, signaling that stronger demand for everything from technology to finance will keep Asia’s third-largest economy firmly on the path to world-beating growth.
The S&P Global India services purchasing managers’ index rose to 62 last month, the strongest level since June 2010, according to a statement Wednesday. The gauge was at 57.8 in March.
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