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Good Morning Everyone!
If Silicon Valley Bank, a top 20 U.S. bank, can blow-up and get bailed out in less than 72 hours, you can invest in the stock market every month.
MARKET UPDATE
Silicon Valley Bank (SVB) SIVB 0.00%↑
Federal Reserve steps in
Start-Ups are safe: this will protect the intellectual future of U.S. technology
Guaranteeing all deposits of SVB so that Start-Ups can make payroll today
The governments bank-deposit insurance fund will cover all deposits at the two banks rather than the standard $250,000
Signature Bank
Regulators have also taken control of Signature Bank (a crypto-currency bank).
Joins another failed crypto bank, Silvergate Capital Corp.
Not a bailout
Regulators said these measures are not a bailout because stock and bondholders in SVB and Signature won’t be protected.
Regulators will use emergency-lending to make more funds available to prevent runs on other banks.
First Republic Bank (FRC)
Shares have fallen 30% since Wednesday, down 60% in pre-market
Caters to wealthy clients with big deposit balances in excess of the FDIC insurance cap.
FRC said Sunday it had shored up finances with additional funding from the Fed and JP Morgan
Silicon Bank’s British Arm
Being acquired by HSBC for one-British pound
This will keep it operating and protect Start-Ups
Likely, a new regulatory framework for all regional banks
SBV and Signature are the casualties of the Fed’s campaign to bring down inflation
The Central Bank has raised interest rates by 4.5% over the past year
The most rapid run-up since the 1980s
What are markets doing as a result of Silicon Valley and Signature Bank
Recessionary Trade has taken over from the Inflationary Trade
Investors have piled into the safety of bonds
U.S. 2-year bond yield has moved from 5% to 4%
10-year bond has moved from 4% to 3.4%
Most commodities have fallen
Only a 72% probability of a 25 point-hike at the next Fed meeting on March 22.
One week ago there was a 80% probability of a 50 point-hike.
2-year yield
10-year yield
Macro this week
Tuesday CPI
Wednesday PPI
Thursday jobless claims
Crude 73 -5%
After Friday’s announcement of a resumption of diplomatic relations with Saudi Arabia
Iran’s spokesman for its Foreign Ministry said:
The nation welcomes any diplomatic effort to improve its relations with its Gulf neighbors and other countries in the Middle East including Egypt and Bahrain.
PFE 0.00%↑ Pfizer
Will acquire Seagen, total enterprise value of $43 billion
Bolsters Pfizer’s presence in cancer
META 0.00%↑ Meta +2%
Planning additional layoffs
Same magnitude as the 13% cut to its workforce last year
Who’s next? GOOGL 0.00%↑ and AMZN 0.00%↑ ?
Earnings None

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CRYPTO UPDATE
USDC de-pegged
USDC stablecoin fell as low as 0.87 over the weekend
Has since bounced back toward 1.00 peg
Circle (issuer) admitted $3.3 billion exposure to SVB
No exposure to Silvergate
Crypto prices rebound over weekend:
Under the Radar
VERTICALLY INTEGRATED HELIUM PRODUCER. With prices at historic highs and dwindling reserves threatening supply, helium—whose countless industrial applications make it critical to global economies—is a hot commodity! Desert Mountain Energy is positioning itself to capitalize on this secular trend with plans to build North America's first vertically integrated, primary producer of helium.
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