US Stocks Rebound After Easter
After a dip at the opening, US stocks rebounded as markets reopened from the Easter weekend. Investors were cautious about potential interest rate rises from the Federal Reserve. The S&P 500 (SPI:SP500) closed slightly higher, while the Nasdaq Composite ended the day flat after an early drop.
Bitcoin Surpasses $30,000 Milestone
Bitcoin (COIN:BTCUSD) surpassed $30,000 for the first time in ten months, boosted by expectations of the Federal Reserve ending its tightening of monetary policy. The cryptocurrency has been steadily gaining in recent weeks, with a 23% rise in March. Ether (COIN:ETHUSD), another cryptocurrency, is also nearing an eight-month high in value.
Alibaba Unveils Tongyi Qianwen AI
Alibaba (NYSE:BABA) unveiled Tongyi Qianwen, a large language AI model and a competitor to OpenAI’s ChatGPT. The Chinese tech giant plans to integrate the model into all its business applications, leading to a rise in Alibaba’s shares. SenseTime, a Chinese AI startup, also launched SenseNova, another generative AI model.
US Banks to Reveal Significant Withdrawals
Analysts are predicting that the largest US banks will reveal significant withdrawals of tens of billions of dollars in deposits in the first quarter of 2023, despite gaining new customers after the collapse of Silicon Valley Bank. Customers seeking higher returns from alternatives like money market funds are believed to have pulled around $100 billion in total from JPMorgan (NYSE:JP), Bank of America (NYSE:BAC), Citi (NYSE:C), and Wells Fargo (NYSE:WFC), according to Bloomberg data.
Alecta Fires CEO After $2 Billion Losses
Sweden’s largest pension fund, Alecta, fired its CEO after suffering losses of nearly $2 billion from a failed bet on US lenders Silicon Valley Bank and Signature Bank (OTC:SBNY). Alecta, with $110 billion in assets under management, stated that the losses had seriously damaged confidence in its investment strategy. Alecta was also a shareholder in First Republic, another US bank whose shares have plummeted.
HPS Investment Partners Raises $12 Billion
HPS Investment Partners has raised $12 billion for a new junior credit fund, pushing its assets under management to nearly $100 billion, making it a formidable player in debt markets. The fund now ranks among the largest pools of junior credit available to private equity groups and companies, filling the gap left by retreating traditional investment banks from riskier businesses due to turbulence in public markets caused by the Federal Reserve’s aggressive interest rate hikes.
Newmont Raises Takeover Offer
Newmont Corp. (NYSE:NEM) has raised its takeover offer for Newcrest Mining Ltd. (ASX:NCM) to around $19.5 billion, aiming to seal the largest-ever M&A deal in the gold-mining industry. The improved all-stock offer comes at a time when gold prices are approaching a record high due to global banking system stress and economic worries. Newmont had previously been rebuffed with a $17 billion bid by Newcrest, Australia’s largest-listed gold miner. Newmont’s revised offer includes a possible special dividend of up to $1.10 per share.
Airbus Delivers 127 Jets in Q1
Airbus SE (BME:AIR) delivered 127 jets in the first quarter, a 9% decrease compared to the previous year, due to shortages of parts such as engines that carried over into the new year. March deliveries totaled 61 aircraft, according to the world’s largest maker of commercial jetliners. The lower first-quarter numbers may pose challenges for Airbus to achieve its target of 720 aircraft deliveries for the year. Supply chain constraints had caused a slow start in January, with only 20 aircraft delivered, and the company may need to increase output in the coming months to make up for the first-quarter drop.
Marshall Wace Takes Short Position
Marshall Wace, a hedge fund, has recently taken a short position of £155.6 million ($193 million) against NatWest Group Plc (LSE:NWG), which represents approximately 0.61% of the taxpayer-backed bank. According to the latest disclosure to the UK’s Financial Conduct Authority, the hedge fund has increased its bet against the lender on March 23, strengthening its position from 0.51% as of March 10. This marks Marshall Wace’s largest-ever disclosed short position against the British bank since records began in 2012.