What Moved The Markets This Week 📈
W13 - PCE Inflation, Apple Launches "Pay Later", Alibaba Splits Into Six Business Groups, Binance Sued By CFTC, Turkey Approves Finland's NATO Application, and Lululemon + Paychex Earnings
Sunday Morning Markets
Trading Week 13, covering Monday, Mar 27 through Friday, Mar 31. Your weekly financial markets update, in less than 5 minutes.
The Week In Review ⏪
PCE inflation in February rose less than expected
First Citizens acquires a portion of SVB’s assets
Apple launches its “Pay Later” product
Trump gets indicted by New York grand jury
Biden wants tighter restrictions for mid-sized banks
Alibaba to split into six separate business groups
Binance and its CEO get sued by CFTC
SBF allegedly bribed Chinese officials with $40M
Earnings reports from Lululemon & Paychex - see breakdowns below
US Markets 🇺🇸
Key Fed inflation gauge rose 0.3% in February, below the 0.4% estimate and down from the 0.5% January increase. On a 12-month basis, core PCE increased 4.6%, a slight deceleration from the month prior.
First Citizen acquires $72B of SVB’s deposits and loans from the FDIC at a $16.5B discount. The remaining $90B in securities and other assets will remain in receivership by the FDIC. FCNCA 0.00%↑ shares jumped 67% this week.
Apple launches its ‘Pay Later’ financial service which will allow users to split their purchases into four payments spread over six weeks. Customers can use the service in-app or online with merchants that accept Apple Pay.
Pending home sales jump 0.8% in February despite higher mortgage rates, marking the 3rd consecutive monthly increase since appearing to bottom in November. Sales were still 21.1% lower than February of last year.
Trump indicted by New York grand jury in connection with a hush money payment to Stormy Daniels. He is scheduled to be arraigned in court on Tuesday. Trump is the first former U.S. president to be charged with a crime.
Joe Biden calls for tighter bank regulations in the wake of the recent failures of SVB and Signature. The Biden Administration looks to increase reserve requirements and update stress tests to account for high-speed withdrawals.
Layoffs in tech continue this week with Lucid, Electronic Arts, Roku, Disney, and others announcing cuts. According to layoffs.fyi, 551 tech companies have laid off over 166K workers so far in 2023.
Rest of World 🌏
Alibaba to split into six business groups each with the ability to raise outside funding and go public. The move is “designed to unlock shareholder value and foster market competitiveness.” BABA 0.00%↑ shares rallied 17% this week.
UBS brings back former CEO Sergio Ermotti to lead the company through its acquisition of Credit Suisse. The current CEO, Ralph Hamers, will remain at UBS to advise the bank during the transition period to ensure a smooth handover.
Turkey approves Finland’s NATO application, clearing the last hurdle in the accession process. The country shares an 830-mile-long border with Russia. The Finnish President said his country is “now ready to join NATO.”
Crypto ⚡
Binance and its CEO get sued by the CFTC after the company allegedly violated compliance rules to attract U.S. users. The filing asks the court to impose further restrictions, including trading and registration bans.
SBF paid $40M+ to bribe at least one Chinese official, the Department of Justice alleges in a new indictment. The bribe was to influence Chinese police to ‘unfreeze’ one of Alameda’s accounts with over $1B in cryptocurrency.
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Earnings Reports 💰
Week Ahead 📅
Monday
US - ISM Manufacturing PMI (MAR)🇺🇸
Europe - S&P Manufacturing PMI (MAR)🇪🇺
Tuesday
US - JOLTS Job Openings (FEB)🇺🇸
Australia - RBA Interest Rate Decision🇦🇺
Earnings Reports: Dlocal💰
Wednesday
US - ISM Non-Manufacturing PMI (MAR)🇺🇸
China - Caixin Services PMI (MAR)🇨🇳
Earnings Reports: ConAgra Foods💰
Thursday
US - Jobless Claims🇺🇸
Canada - Ivey PMI (MAR)🇨🇦
Canada - Employment Report (MAR)🇨🇦
Earnings Reports: Constellation Brands💰
Friday
US - Nonfarm Payrolls (MAR)🇺🇸
US - Employment Report (MAR)🇺🇸
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