Business
First Republic, based in San Francisco, is facing collapse as customers withdrew $100bn in deposits amid the turmoil surrounding the failure of Silicon Valley Bank. The bank is “pursuing strategic options” and reducing its workforce by up to 25% to cut costs. Although outflows stabilised in April, the bank’s share price fell by 50% in a day.
Credit Suisse experienced customer outflows of $69bn in the first quarter, mostly in the days leading to its collapse and takeover by UBS at the behest of Swiss regulators. Many customers redirected their money to UBS, which reported $28bn in client inflows.
America’s tech giants began announcing their latest results. Microsoft reported solid earnings. Revenue from cloud computing rose by 16%, year on year, a slower rate than in previous quarters but faster than markets had expected given the pullback in corporate IT spending. And advertising sales at Alphabet’s Google business bounced back following two disappointing quarters. The stock of both companies has risen by about 20% since the start of the year, outperforming the S&P 500.
2023-04-27 08:02:16
Original from www.economist.com