Economy
First Republic: Shares rise on Wall Street’s efforts to save bank from collapse
- Nick Etcher
- Economic Correspondent
Financial stocks rose after a group of US giants stepped in to save failing First Republic Regional Bank.
Investor fears of a crisis in the banking sector have eased after 11 US banks pumped in $30 billion to save the First Republic.
Recent bank failures in the US have raised concerns about the health of the banking system.
The main British stock index, the FTSE, rose 100A percentage during the initial trade. British banks whose shares rose include Lloyds Bank and Barclays 1.3 percent.
Financial markets in France and Germany also rose 0.6 The main Japanese stock index Nikkei closed up percent 1.2percent.
Departments of the eleven banks that announced support said the move reflected “their confidence in the country’s banking system”. As U.S. Bank officials said, the move is “very welcome and indicates the strength of the banking system.”
After the collapse of two US banks, Silicon Valley Bank and Signature Bank, last week, investors worried that other banks could also collapse.
US banking regulators intervened over the weekend to ensure Silicon Valley and Signature Bank customers got their money.
Shares of San Francisco-based First Republic Bank have plunged nearly 70 percent in the past week, amid fears that it could be the next bank to fail as customers rush to withdraw their deposits.
However, the bailout of 11 banks, led by JP Morgan and Citigroup, lifted stock markets, with First Republic shares rising more than 20 percent at one point. However, there are signs that all concerns are not yet allayed.
Shares of First Republic Bank fell 20 percent in after-hours trading after the bank said it would freeze its dividend income and payments to shareholders “during this period of uncertainty.”
Souveda Ramachandran, director of investments at GAM Investments, said the authorities are working proactively. He told the BBC: “There’s really little we’re trying to do to prevent specific problems with isolated banks from turning into systemic problems, so it’s very different from what happened in 2008 and it was widespread across the banking sector.”
“The banking system in general is safe and sound,” US Treasury Secretary Janet Yellen said on Thursday, while European Central Bank Vice President Luis de Guintos said the banking sector was “strong”.
Shares of Swiss Credit Suisse bank fell
Europe has not been spared from the turmoil in the banking sector, with the impasse facing Credit Suisse, the largest Swiss bank.
Shares of Credit Suisse fell earlier this week on concerns about the bank’s future. The Swiss National Bank announced on Wednesday that it had provided Credit Suisse with up to £44 billion in emergency funding.
Shares of Credit Suisse opened higher on Friday, but then fell. The bank’s shares have fallen about 22 percent since the start of the week.
Central banks around the world have dramatically raised borrowing costs over the past year in an effort to curb overall inflation, or the pace of inflation.
The moves affected the value of large bonds bought by banks when interest rates were low, contributing to Silicon Valley’s decline and raising questions about whether other companies are facing a similar situation.
Geoffrey Cleveland, chief economist at US asset management firm Biden & Regal, told the BBC that other banks may have run into that problem. And, “if central banks continue to raise interest rates, there may be other impacts.” Interest. Historically when this happens we see weakness and we see problems in the financial system.”
Ahead of the turmoil in the banking sector, both the US Federal Reserve and the Bank of England were expected to raise interest rates further at their meetings next week. However, some have speculated that these interest rate hikes may or may not be reversed due to recent events. On Thursday, the European Central Bank announced another interest rate hike from 2.5 percent to 3 percent.
Looking more broadly at the stability of financial markets, Ramachandran, investment director at GAM Investments, said, “For the ECB, their main battle right now is inflation.” This will be covered by the particular bank.
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Economy
Dubai Taxi increases the number of shares allocated to individuals in the public contribution
Dubai Taxi
Dubai Taxi Company on Tuesday announced that it will increase the number of shares allocated from its initial public offering to individual investors in the UAE in response to strong demand for their shares, and instead, it will reduce the number of shares allocated to professional investors. 25 percent of the total shares of the company remain unchanged.
Dubai Taxi reported that the number of shares allotted to individual investors in the UAE has been increased from 62.475 million to 74.970 million ordinary shares, following the approval of the Securities and Commodities Authority.
Based on the previously announced price range of between 1.8 and 1.85 dirhams per share, the value of the shares allocated to the individual investor segment will now be approximately 135 to 139 million dirhams, which, compared, would represent 12 percent of the size of the initial offering. to the earlier announced 10 per cent.
The offer size remains unchanged at 624.750 million ordinary shares, representing 24.99 percent of the total issued shares in the company’s capital. As a result of the increase in shares allocated to the category of individual investors in the UAE, 549.780 million ordinary shares will be allocated to the category of qualified investors instead of 562.275 million ordinary shares, representing 88 percent of the total offering shares. 90 percent of the previously reported.
As the subscription period for individual investors in the UAE ends on November 28, 2023, the subscription period for qualified investors ends on November 29.
The offering is expected to be completed and listed shares accepted on December 7, 2023, subject to market conditions and receipt of relevant regulatory approvals in the UAE, including approval for listing and trading on the Dubai Financial Market. Report.
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Economy
“Tik Tok” is cutting hundreds of jobs in video games industry – UAE Breaking News
Chinese tech giant ByteDance, which owns the TikTok app, has decided to cut hundreds of jobs at its gaming unit, an informed source told AFP on Monday, reflecting the group’s retreat from the highly competitive video game industry.
“News,” a Beijing-based video game publisher affiliated with Byte Dance, is currently conducting a round of layoffs that will affect “hundreds of people,” the source said.
A Byte Dance spokesperson said in a statement, “We continue to review our business and make changes to focus on areas of long-term strategic growth.” “Following a recent review, we have made the difficult decision to restructure our gaming division.”
The decision to exit the video games industry comes despite Byte Dance’s large investments in Newverse over the past years in an effort to catch up with video games leader Tencent.
A source told AFP that although the sector’s size would decrease significantly, the current cuts did not represent a complete shutdown of the sector.
The source indicated that the staff reductions are aimed at helping ByteDance focus on its core business and streamline its organizational structure, with games not yet launched slated to close in December.
Games with active players, including the popular action game, the source said Atlan’s CrystalThe company will continue its operations as it seeks to diversify assets.
Launched in 2019 in an attempt to challenge Tencent’s dominance, Neoverse failed to achieve the commercial success that Byte Dance had hoped for.
China-based tech giant Tencent dominates the Asian market and is the biggest player in the global video game industry by revenue, investing in game studios around the world.
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Economy
Report: Platform X could lose $75 million as advertisers quit
The “X” platform (formerly Twitter) is at risk of losing about $75 million within a year of its takeover by Elon Musk, a new report has revealed, amid a rapid withdrawal of advertisers.
According to the information published in the newspaper The New York TimesX’s ad department losses are the result of the withdrawal of more than 200 advertisers over the course of a year, including Amazon, Apple and Airbnb.
Since November 2022 Musk’s acquisition of controversial content publishers.
Anti-establishment
Advertisers’ pushback accelerated this November when Elon Musk made a comment endorsing a comment that was characterized as anti-Semitic. There he said: “I told the real truth”, “Jewish communities support hate. Of white people” and Musk tried to backtrack. Without evidence of what he wrote, he suggested he was primarily talking about his opponents in the Anti-Defamation League.
The US newspaper’s statement comes after Musk and others, as well as showing their ads next to anti-Semitic and hateful posts.
Although the platform’s CEO Linda Yaccarino acknowledged that some companies’ ads appeared with infringing content, X continued to sue.
It is reported that the public relations agency “11:11“, the star joins Paris Hilton, who has severed her partnership with X due to Musk’s position.
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