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Ides of March: AI. China. Banks (again).

Ides of March: AI. China. Banks (again).

Deposits collapse and Asia manufacturing in flux.

autonomous
March 27, 2023

Good morning folks 🌞 👋

Overall a quiet weekend compared to the rest of March, but the focus hasn’t changed if we’re talking about markets and the broader economy:

Banks 🏧
A.I. 🤖
Security / China / Cybersec 🇨🇳

Quote of the Week 💬

“In a few months, we will remove all legacy /blue checks. The way in which they were given out was corrupt and nonsensical.”
— Elon Musk, in a Dec. 12, 2022, tweet

Weekend Round-Up 🗓️

Banks 🏧

Small US banks see record drop in customer deposits after SVB collapse (RT)

Deutsche Bank CDS (Credit Default Swaps aka “failure insurance”)x shot up above 220 bps (RT)

Peanut Gallery: Fed Comments

Minneapolis Fed President Neel Kashkari said recent bank turmoil has increased the risk of a US recession. “What’s unclear for us is how much of these banking stresses are leading to a widespread credit crunch. Would that slow down the economy? This is something that we’re monitoring very, very closely,” Kashkari, a voter on monetary policy this year, said in an interview on CBS’s “Face the Nation.”

Before this month’s bank collapses and market turmoil, Kashkari had said the Fed should lift rates to about 5.4% — from a target range of 4.75% to 5% currently — and then hold them there until inflation cooled. (via Quartz News)

China / Security / CyberSec 🦾

Pentagon vying for Silicon Valley to join ranks of arms makers (WSJ)

European PE funds scout for defense deals (FT)

China is “Open for business,” again, as economic warfare continues (BBG)

Odds & Ends 📊

SoftBank’s LatAm fund commits to further investments despite losses (FT)

OpenAI launches plugins for ChatGPT (OAI)

Block ($SQ) lost 17.98% after short seller Hindenburg took a position against the company, saying it has overstated user accounts and systematically taken advantage of demographics it claims to help.