📈 Deutsche Bank: From Swaps to Flops

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Good Morning!

Wall Street futures are looking up, thanks to First Citizens Bank's recent announcement of buying around $72 billion of SVB assets at a sweet discount of $16.5 billion. But it's not all sunshine and rainbows out there - Germany's Deutsche Bank took a 14% hit on Friday after the price of credit default swaps spiked.

Meanwhile, Alibaba's founder, Jack Ma, has finally returned to China after more than a year, giving the country's private sector hope in their post-COVID economy. And Elon Musk, the CEO of Twitter (TWTR) is offering stock grants to employees, with a valuation of almost $20 billion - that's less than half of the $44 billion he paid for it!

Markets

Live Updates: Stock futures rise as First Citizens reaches Silicon Valley Bank deal (2 minute read)
Wall Street seems to be off to a good start this week, with stock futures slightly up (around 0.3%), which is always a good sign. Investors are keeping a close eye on the banking sector, as First Citizens Bank just announced that it's buying some parts of Silicon Valley Bank. They're getting quite a bargain too, as they're buying around $72 billion of SVB assets at a discount of $16.5 billion! However, the FDIC will still need to figure out what to do with about $90 billion in securities and other assets.

European stocks rebound as banking jitters ease (3 minute read)
Markets in Europe are finally taking it easy after a rollercoaster ride of worry last week, thanks to the collapse of Credit Suisse and two other U.S. mid-sized lenders. The pan-European STOXX 600 index seems to be breathing a sigh of relief as it rose 0.9%. Investors are feeling comforted by the news that First Citizens BancShares Inc is swooping in to acquire Silicon Valley Bank's deposits and loans. Let's hope this sense of calm sticks around for a while!

Investing

Deutsche Bank share slide reignites worries (3 minute read)
The cost of insuring against a bank's failure has hit new heights, and investors aren’t feeling too peachy about it. The price of credit default swaps (basically what they buy to protect themselves from the bank's failure) has spiked recently, causing shares in Germany's Deutsche Bank to plummet by a whopping 14% at one point on Friday. Other lenders also saw some major losses.

Jack Ma returns to China as govt tries to quell private sector fears (4 minute read)
Guess who's back, back again? Jack Ma's back, tell a friend! After more than a year overseas, the Alibaba (BABA) founder has finally returned to China. It's a big deal for the private business industry and policymakers who have been feeling down in the dumps lately. Jack's comeback might just be the pick-me-up they need to feel a little more hopeful. Plus, it's great timing because China's private sector has been feeling the heat after a tough two-year regulatory crackdown, and the economy has been struggling with COVID for the past three years.

Elon Musk puts $20 billion value on Twitter (1 minute read)
Elon Musk, the CEO of Twitter (TWTR) offered stock grants to Twitter employees with a valuation of almost $20 billion. That's a lot of cash, but it's actually less than half of the $44 billion that Musk paid to acquire the social media platform. Ouch! Looks like Twitter's value has taken a bit of a hit. Musk is optimistic, though, saying in December that Twitter is on track to be "roughly cash flow break-even" in 2023.

Money

The role of alternative assets in current market conditions (5 minute read)
From the depths of the global financial crisis in 2008 to the first interest rate hike by the US Federal Reserve in 2022, we've been living in the quantitative easing era! Since then, investors have been on the hunt for alternative assets to diversify their portfolios and make some extra cash. Enter music royalties, aircraft leasing, student property, healthcare, hedge funds, and long/short funds. Who knew investing could be so exciting? It's like a treasure hunt for the perfect asset class!

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