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Today's big stories

Silicon Valley Bank’s demise has got policymakers pulling out all the stops
Here’s how to use the “magic formula” for stocks – Read Now
Rolex is moving with the times, upping production to meet demand for its high-end timepieces

Shockwaves From The Sinking Tech-tanic

What’s Going On Here?

The fallout from Silicon Valley Bank’s (SVB) collapse kept rumbling on Monday.

What Does This Mean?

The collapse of SVB last week sent a wave of anxiety through the global economy, but policymakers have wasted no time in stepping in to steady the ship. US regulators already pledged full protection for all deposits – a good thing given that over 90% of them were above the typical $250,000 insurance cap. And the Federal Reserve (the Fed) has opened its coffers too, extending loans on generous terms to banks at risk of failing. Things weren’t much different across the pond: there, the Bank of England arranged for HSBC to swoop in and scoop up SVB’s British business, saving customers’ necks. That speedy coordinated response suggests that policymakers remember the lessons of 2008 – meaning the bank's tech-startup customers can breathe a sigh of relief.

Why Should I Care?

The bigger picture: Banking blues.
Those moves haven’t placated all investors, and smaller regional banks are paying the price: just look at First Republic whose share price plummeted on Monday. But even if the packages do end the fallout, this debacle will still make life harder for the industry as a whole: after all, regulators’ oversight is probably about to get stricter, which comes with higher costs. And with banks likely to do whatever they can to hold onto deposits (including offering higher rates), that’s a recipe for lower margins.

For markets: The fickle Fed.
Some analysts reckon the Fed's new funding programme marks a temporary return to economy-boosting measures, after the relentless rate hikes of the past year. And experts are betting the central bank won’t add to the burden after recent events: just days after a 0.5-percentage-point hike looked likely, Goldman Sachs has now said it doesn’t expect any increase at the Fed’s next meeting. Some pundits think rates could even be cut if banks’ share prices keep on nosediving.

You might also like: Here’s what we know about Silicon Valley Bank’s swift and stunning collapse.

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Analyst Take

This Hedge Fund Guru Has A “Magic Formula” For Buying Stocks

Stéphane Renevier, Analyst

Joel Greenblatt’s got a magic formula for investing.

It’s the reason he always manages to buy good stocks at cheap prices – and it’s made him one of the most successful fund managers of all time.

Fortunately, he’s happy to share his formula.

So, that’s today’s Insight: how to use Joel Greenblatt’s magic formula for stocks.

Read or listen to the Insight here

The end of this tax year’s one to celebrate, not commiserate

New Year’s Eve was just the warm-up event: it’s the end of the tax year that really matters.

See, you have until April 5th to use up all your tax relief and allowance options, so the eve before (or realistically, the final few weeks leading up to the deadline) is a big deal.

You might want to check out an ISA, then: hold your money in one of those, and you won’t need to pay UK tax on anything your cash earns – be that interest, dividends, or capital gains.

And ii’s ISA is a doozy. You’ll get access to over 40,000 global stocks on the award-winning platform, and ii’s low flat fees mean you can keep more of your money for yourself.

So if you want to make the most of an ISA with a £20,000 allowance, sign up with ii before April 5th. (We’ll get the balloons and the novelty glasses sorted.)

Find Out More

The value of your investments may go down as well as up. You may not get back all the money that you invest. Tax treatment depends on your individual circumstances and may be subject to change in the future. The value of international investments may be affected by currency fluctuations which might reduce their value in sterling. If you are unsure about the suitability of an investment product or service, you should seek advice from an authorised financial advisor.