FirstFT: Credit Suisse gets liquidity offer from Swiss central bank

Good morning.

As markets deal with the collapse of Silicon Valley Financial institution, turmoil within the banking sector has additionally popped up in Europe. Credit score Suisse shares plunged a day after the financial institution revealed that its auditor had recognized “materials weaknesses” in its monetary reporting controls. We’ve got the main points under.

Individually, the exiled Chinese language businessman Guo Wengui has been arrested on US fraud expenses over an funding rip-off concentrating on 1000’s of his on-line followers.

Right here’s what else to maintain tabs on at present:

• Wealth Summit Asia: Be a part of the FT for a must-attend, one-day occasion for market-leading personal banks, household places of work and wealth managers. Register right here.

• Iran-UAE talks Iran’s prime safety official will journey to the United Arab Emirates for talks within the newest signal of enhancing relations between the nations.

• ECB charge determination: The European Central Financial institution has made clear it intends to boost its deposit charge by half a proportion level to three per cent.

At this time’s prime information

1. The Swiss central financial institution stated it will present a liquidity backstop to Credit score Suisse after the lender’s shares cratered as a lot as 30 per cent, sparking a broader sell-off in European and US financial institution shares.

• Alphaville: There’s no contagion between US regional banks and Switzerland’s monetary markets, moreover dangerous vibes.

2. US regulators are making ready to answer collapse of Silicon Valley Financial institution. The chair of the US Securities and Alternate Fee has referred to as for a strengthening of “the guardrails of finance” within the wake of the collapse of Silicon Valley Financial institution, whereas the Federal Reserve is weighing harder guidelines on capital and liquidity for midsized banks.

3. US prosecutors have charged Chinese language businessman Guo Wengui with being a serial fraudster who funded his lavish exile via a string of funding scams. Guo, a critic of the Communist authorities who fled to New York, was arrested yesterday in reference to an alleged scheme to misappropriate greater than $1bn from 1000’s of his on-line followers.

4. One in every of Hong Kong’s most senior finance officers is planning to go to the UK in April within the territory’s first ministerial-level journey to the nation in three years and an indication of Prime Minister Rishi Sunak’s quiet reset of UK-China financial relations.

5. The US defence secretary mentioned the downing of a US surveillance drone over the Black Sea along with his Russian counterpart in a uncommon dialog amid escalating tensions over the incident.

The Massive Learn

Since Bob Iger’s second time period as Disney chief govt started in November, one matter has dominated conversations: what to do with Hulu, the favored however sophisticated streaming service during which Disney owns a majority stake. The controversy, which additionally contains the way forward for the ESPN sports activities community, will get to an even bigger query: what sort of firm ought to Disney be?

We’re additionally studying . . . 

Chart of the day

China’s shopper spending returned to development within the first two months of 2023. Information factors to an early signal of a restoration, however the first complete overview of exercise since Beijing ended its pandemic restrictions pointed to a combined financial image.

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Take a break from the information

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Further contributions by Gordon Smith and Tee Zhuo.