Bloomberg - Evening Briefing - Inflation is the enemy

Bloomberg Evening Briefing

The US Federal Reserve raised interest rates by a quarter percentage point and indicated there may be more hikes to come. In doing so, the Fed signaled that, banking turmoil or not, its battle against inflation must go on. Forecasted rate hikes were unchanged, too. Chair Jerome Powell emphasized his belief that the banking system remains resilient, but markets fell as hopes for rate cuts in the near future thinned. As for that turmoil, Treasury Secretary Janet Yellen said on Capitol Hill that regulators aren’t looking to provide “blanket” deposit insurance, despite calls from some quarters to raise it beyond the current level of $250,000. Here’s your markets wrap.

Here are today’s top stories

Kremlin leader Vladimir Putin and his Chinese counterpart Xi Jinping announced a deal to continue developing a key atomic technology. It’s an agreement that has the Pentagon on edge given its potential to upset the global balance of nuclear weapons. The announcement followed Xi’s visit to Russia and a flurry of other deals between the authoritarian governments, more closely aligned since Putin invaded Ukraine. But there was one crucial agreement Moscow didn’t get.

Vladimir Putin, right, and Xi Jinping during a meeting at the Kremlin. Photographer: Alexey Maishev/AFP

As bidders picks apart the remnants of Silicon Valley Bank, the merger between a small New England commercial bank and SVB is back in the spotlight. Meanwhile Apollo Global Management and Carlyle Group are zeroing in on about $10 billion in loans up for grabs now that the former parent company of SVB has filed for bankruptcy.  

In more signs of anxiety at regional banks, PacWest moved to shore up liquidity by securing $1.4 billion from a financing facility. Customers have pulled about 20% of their deposits at the bank since the start of the year. Rising interest rates have depressed the value of regional banks’ fixed-income investments, and a sudden surge in customer withdrawals has forced them to sell assets at a loss. All of this uncertainty at regional banks, and the UBS takeover of Credit Suisse, is ushering in a new era in capitalism, write John Micklethwait and Adrian Woolridge in Bloomberg Opinion. It’s one where the government picks winners and losers

Photographer: Eric Thayer/Bloomberg

Thousands of factory jobs could be at stake depending on how the US Treasury distributes tens of billions of dollars in EV tax incentives. The issue turns in part on where a critical part of the battery supply chain will be focused—in North America or Asia. 

Top tech companies including Google, Meta and Apple are mounting a push to limit how US intelligence agencies collect and view texts, emails and other information about their users, especially Americans. The Foreign Intelligence Surveillance Act is up for renewal in Congress and there is a growing bipartisan consensus to make some changes after internal abuses were uncovered.

After becoming Europe’s largest center for trading equities in November, the French bourse has only widened the gap with post-Brexit London. In the wake of the split, the Paris stock market’s market capitalization of $3.13 trillion exceeds that of the UK capital by $250 billion. 

The Iranian government has built a large and sophisticated cyber army with which to target domestic and foreign opponents. As the brutality of government crackdowns on widespread protests reverberates across social media, activists have asked tech companies to do more to limit the regime’s reach.

Protesters in Iran on Sept. 21 after an Iranian woman, Mahsa Amini, died in police custody.  Photographer: AFP/Getty Images 

Bloomberg continues to track the global coronavirus pandemic. Click here for daily updates.

What you’ll need to know tomorrow

  • Bloomberg Opinion: A court just gave Putin’s successor an easy out.
  • After catastrophic wave of Covid infections, China approves mRNA shot.
  • TikTok’s CEO to argue his app is not an arm of Beijing.
  • After SVB’s collapse, Elizabeth Warren wants a watchdog at the Fed.
  • Gen Z is racking up credit card debt faster than previous generations. 
  • Trump has to wait a little longer to learn his fate from a NY grand jury.
  • After eight years, Domino’s Pizza is giving up on Italy.

LA Takes Another Hard Look At Homelessness

The problem isn’t new or unique to Los Angeles: Cities across the US are struggling to contain a spike in unsheltered homelessness. The rise is driven by a cycle of interwoven factors led by housing costs, a new drug crisis and the disruptions of Covid-19. Now LA Mayor Karen Bass is trying a new approach. 

Los Angeles Mayor Karen Bass, right, visits a homeless encampment Photographer: Irfan Khan/Los Angeles Times

Older messages

Roaring back

Tuesday, March 21, 2023

Bloomberg Evening Briefing View in browser Bloomberg Beleaguered First Republic Bank is refusing to be the fifth victim of the banking crisis, surging by a record and leading a rally in US lenders

Final warning

Monday, March 20, 2023

Bloomberg Evening Briefing View in browser Bloomberg The world's leading climate science body, the UN Intergovernmental Panel on Climate Change, on Monday summarized five years of its own research

Inflation and chaos

Saturday, March 18, 2023

Bloomberg Weekend Reading View in browser Bloomberg It was a week of more chaos for banks—and fear the crisis will finally tip the global economy into recession. Silicon Valley Bank died quickly,

Wanted for war crimes

Friday, March 17, 2023

Bloomberg Evening Briefing View in browser Bloomberg The International Criminal Court issued an arrest warrant for Russian leader Vladimir Putin for war crimes related to the alleged abduction of

First Republic’s turn

Thursday, March 16, 2023

Bloomberg Evening Briefing View in browser Bloomberg Another day, another bank. Yesterday Credit Suisse was in the hot seat. But thanks to the Swiss government, the troubled lender has a new lease on

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