Bloomberg - Evening Briefing - Hunting for weakness

Bloomberg Evening Briefing

The hunt for weakness among midsize US banks continued Thursday as turmoil and recriminations roiled both markets and the financial industry. Trading halts hit Western Alliance Bancorp and PacWest Bancorp amid losses that topped 60%. Western Alliance denied a report that it’s exploring strategic options including a possible sale. Goldman Sachs’s role in the beginning of the crisis—Silicon Valley Bank’s attempt to raise funds in March—is under review by the federal government, which is looking into the failed transaction and how it helped kill SVB. Rival banks and investors have pointed fingers at Goldman for failing to line up capital in advance and spooking the market. Also on Thursday, Toronto-Dominion Bank and First Horizon scrapped their $13.4 billion deal after the Canadian lender said it couldn’t see a clear path to getting regulatory approval. The move ended weeks of speculation about the fate of a deal that was announced right before the world’s major central banks began a historic campaign of interest rate increases. TD will make a $200 million cash payment on top of a $25 million reimbursement that was part of the merger agreement. Here’s your markets wrap

Here are today’s top stories

Emergency borrowing from the US Federal Reserve plunged last week, partly reflecting the seizure of First Republic Bank, which accounted for a large share of outstanding loans. Meanwhile, one regional bank that largely dodged the banking calamity has triggered a wildfire among short-sellers, burning them to the tune of $64 million.

US unemployment benefit applications rose by the most in six weeks while continuing claims fell, flagging some softening in a labor market that remains relatively resilient. Even as the labor market starts showing some weakness, though, it’s still cooling at a much slower pace than other economic indicators in the wake of a rate-hike campaign the Fed may be looking to pause.

Microsoft is said to be working with Advanced Micro Devices on the chipmaker’s expansion into artificial intelligence processors, part of a multipronged strategy to secure more of the highly coveted components. The companies are teaming up to offer an alternative to Nvidia Corp., which dominates the market for AI-capable chips called graphics processing units.

A US-based think tank alleged Vladimir Putin likely staged a drone attack on the Kremlin—for which he now blames the US—to “set conditions for a wider societal mobilization.” This after NATO’s intelligence chief said Russia is mapping critical undersea systems and warned of a significant risk that Moscow could target infrastructure in Europe and North America. “There are heightened concerns that Russia may target undersea cables and other critical infrastructure in an effort to disrupt western life and gain leverage against those nations that are providing support to Ukraine,” said David Cattler, the military alliance’s Assistant Secretary General for intelligence and security.

Ukrainian servicemen dig a trench in Chasiv Yar near the frontline city of Bakhmut on May 3. Spring mud may be delaying an expected Ukrainian counteroffensive. Photographer: Dimitar Dilkoff/AFP

Texas Billionaire Harlan Crow paid private-school tuition for Associate Supreme Court Justice Clarence Thomas’s grandnephew, ProPublica reported, adding to a string of revelations about benefits received by Thomas, one of the court’s most conservative members, from the GOP megadonor.

Four members of the violent, far-right “Proud Boys” group, including its former leader, were convicted on charges including the Civil War era seditious conspiracy for their role in the Jan. 6, 2021 insurrection. The men, among hundreds already convicted, plotted to block the transfer of power to Joe Biden in what the Jan. 6 committee called the first attempted coup in American history. The group, along with thousands of other followers of Donald Trump, sought to keep the Republican in power despite his having lost the 2020 presidential election. At least five people died as a result of the attack on the Capitol. The men face up to 20 years in prison on the most serious charges.

Two moderate Democrats who run New York State and its largest city have come under intense criticism for their muted reaction to the killing of an unarmed Black man on a subway train. The White assailant, who the New York Police Department has not identified, choked Jordan Neely to death as he was suffering a mental health episode. Police released Neely’s assailant without charges, triggering protests in which several demonstrators were arrested. Asked for their reactions to his death, Governor Kathy Hochul said “there’s consequences for behavior” while Mayor Eric Adams, formerly of the NYPD, criticized other officials for condemning the killing. Despite Neely’s death having been ruled a homicide, and some effort by Hochul to expand on her initial comments, neither she nor Adams have called for an arrest.

Kathy Hochul, left, and Eric Adams Photographer: Stephanie Keith/Bloomberg

What you’ll need to know tomorrow

Why Everybody Wants to Go to Maine

A wave of chefs and hoteliers have moved to the state’s coastal region in recent years, chasing a way of life that’s always been there. And they’re just a small part of a significant migration and tourism boom. One former Mainer heads Down East to see what all the fuss is about.

Biddeford, Maine’s historic buildings are increasingly occupied by new hospitality ventures. Photographer: DenisTangneyJr/E+

Older messages

Now the Fed waits

Wednesday, May 3, 2023

Bloomberg Evening Briefing View in browser Bloomberg The US Federal Reserve did what almost everyone said it would do, raising interest rates by a quarter percentage point and hinting it could be the

No, it isn’t over yet

Tuesday, May 2, 2023

Bloomberg Evening Briefing View in browser Bloomberg On Monday, the question was raised as to whether the 2023 banking crisis was near an end, thanks in part to the largesse of JPMorgan. On Tuesday,

Maybe it’s over now

Monday, May 1, 2023

Bloomberg Evening Briefing View in browser Bloomberg After another tense spring weekend for American banking, JPMorgan agreed to acquire troubled First Republic in a US government-led deal. The

The stagflation scenario

Saturday, April 29, 2023

Bloomberg Weekend Reading Bloomberg While some economic observers still predict a soft landing as others double down on year-old recession bets, there's a growing contingent who worry the US

Small enough to fail

Friday, April 28, 2023

Bloomberg Evening Briefing View in browser Bloomberg First Republic Bank shares took another nosedive Friday, falling a whopping 43% in regular trading. Then, as a news report foretold a potential

You Might Also Like

🇨🇳 The US is out, China is in

Tuesday, March 11, 2025

Citigroup's forecast for US and Chinese stocks, Lego stacked bricks, and Boeing's investigation | Finimize Hi Reader, here's what you need to know for March 12th in 3:10 minutes. Citigroup

The Under-the-Radar Threat to Your Retirement

Tuesday, March 11, 2025

Nearly half of older adults are burdened by bad debt ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌

15 Years Since We Bought Our Toxic Asset

Tuesday, March 11, 2025

In a new Planet Money plus episode, former Planet Money hosts David Kestenbaum and Chana Joffe-Walt look back at a pioneering series that sought to explain a major source of the 2008 financial crisis.

👋 Investors ditched the S&P 500

Monday, March 10, 2025

The US president didn't rule out a recession, but TSMC eased some of investors' other worries | Finimize Hi Reader, here's what you need to know for March 11th in 3:07 minutes. TSMC's

💳 Find a new credit card

Monday, March 10, 2025

Let's get those rewards ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌

Text and Telos

Monday, March 10, 2025

Plus! Diff Jobs; Scaling; Retail Investors; Comparative Advantage; Transaction Costs and Corporate Structure; DeepSeek Governance Text and Telos By Byrne Hobart • 10 Mar 2025 View in browser View in

Longreads + Open Thread

Saturday, March 8, 2025

Personal Essays, Lies, Popes, GPT-4.5, Banks, Buy-and-Hold, Advanced Portfolio Management, Trade, Karp Longreads + Open Thread By Byrne Hobart • 8 Mar 2025 View in browser View in browser Longreads

💸 A $24 billion grocery haul

Friday, March 7, 2025

Walgreens landed in a shopping basket, crypto investors felt pranked by the president, and a burger made of skin | Finimize Hi Reader, here's what you need to know for March 8th in 3:11 minutes.

The financial toll of a divorce can be devastating

Friday, March 7, 2025

Here are some options to get back on track ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌

Too Big To Fail?

Friday, March 7, 2025

Revisiting Millennium and Multi-Manager Hedge Funds ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏