Silicon Valley Bank breathed its last | US jobs beat expectations once again | [TOGETHER WITH]( Hi {NAME}, here's what you need to know for March 13th in 3:10 minutes. ð¤ Sitting at your laptop making clever bets is all well and good â but you canât beat real, in-person meetups with like-minded peers. So join us in London for [Future of Finance: Waking Up To The Retail Investor]( on April 12th, and mingle with the brands at the forefront of the retail investor rebound. [Get your ticket]( Today's big stories - Silicon Valley Bank bit the dust
- Hereâs how things went so very wrong at Silicon Valley Bank â [Read Now](
- US jobs beat expectations â for the eleventh time in a row Byte The Bullet [Byte The Bullet] Whatâs Going On Here? Silicon Valley Bank (SVB) [collapsed]( late last week. What Does This Mean? SVB is a heavyweight in the US startup arena, with almost half the country's venture-backed tech and life sciences startups among its clientele. But lately those businesses have been burning through cash reserves in order to stay afloat â and that means SVBâs once-brimming deposit pool evaporated to little more than a puddle. The bank responded to that problem with the bright idea of selling off some bonds to raise cash: problem is, SVB bought those bonds when tech was at its height, and their valueâs plummeted as interest rates have climbed. The end result, then, was a sizable loss for SVB. That sparked worries the bank was running out of cash â sending shares plummeting â and when a share sale intended to fix the balance sheet failed, SVB wound up in regulatorsâ hands. Why Should I Care? Zooming in: A run for their money.
Even if it had somehow managed to raise the cash, the writing was probably already on the wall for SVB: the initial loss had spooked clients, with VC firms advising companies to consider withdrawing cash from the lender. And remember â[Itâs A Wonderful Life](â? When anxious customers all try to pull their cash at the same time, youâve got a classic [bank run]( on your hands. All said, then, SVBâs wound up as the USâs second-biggest bank [failure]( ever. The bigger picture: Safety in size.
The whole debacle caused a ripple effect in finance, with the four biggest US banks collectively shedding over $50 billion in market value on Thursday. After all, the US banking industry has over $600 billion in so-called paper losses â ones that only materialize when sold, like SVB's bonds. But America's top banks aren't really expected to go belly up: proportionately, theyâve got a whole lot less bound up in similar, troublesome investments, and that means that theyâre much safer. You might also like: [The hows, whys, and âhuh?âs of investing in financial services stocks.]( Copy to share story: [( ð [Ask a question](mailto:questions@finimize.com?body=Ask us a question:
Where are you writing from? Let us know and we'll mention it when we reply.&noapp=true&subject=Byte The Bullet&utm_campaign=daily-global-13-03-2023&utm_source=email) Analyst Take
Hereâs What We Know About Silicon Valley Bankâs Swift And Stunning Collapse [Hereâs What We Know About Silicon Valley Bankâs Swift And Stunning Collapse]( By Paul Allison, Analyst Letâs take a closer look at how Silicon Valley Bank (SVB) wound up as the [second-biggest US bank failure]( in history. The Federal Deposit Insurance Corporation [closed SVBâs doors]( after a dramatic few days that saw the bankâs startup-heavy customers rush to pull their deposits, as rumors swirled that the institution was struggling to meet the mounting cash calls. It all happened so quickly, and seemingly so easily, that [investors are rightly asking]( whether this sort of thing could happen to a bigger, more important US bank â or even a string of them. Thatâs todayâs Insight: [what you need to know now about Silicon Valley Bank](. [Read or listen to the Insight here]( SPONSORED BY REAL VISION Become a better investor in ten hours You could spend years refining your strategy, with endless dull reading and tons of trial and error. Or you could [overhaul your investing techniques]( in just ten hours with [Real Visionâs investing course](, which condenses thousands of hours of world-leading insight into short, smooth classes. Over five modules, youâll discover [expert-backed solutions to real investing problems](: like how to profit from market forces or how to beat your worst investing enemy (spoiler alert: itâs yourself). There are no dusty old textbooks in sight here. Instead, the course will take you to underground bunkers, cinemas, and bars. Virtually, of course, but we wonât judge where you tune in from. And while we canât guarantee that youâll never learn from a mistake again, we can stand by this sweet deal: [join Real Visionâs course through this link, and youâll get 40% off.]( [Find Out More]( Painfully Employed [Painfully Employed] Whatâs Going On Here? Fridayâs job data [showed]( the US economy added more jobs than expected last month. What Does This Mean? For a while the Federal Reserve (the Fed) put the kibosh on the kind of jumbo rate hikes that we witnessed last year â but Fridayâs data will have the central bank on high alert once again. See, the Fed said last week that a return to a more aggressive stance was already in the cards, with the heaving labor market singled out as one key culprit â and Fridayâs hot-to-touch jobs report only served to confirm the central bankâs worst fears. The US added 311,000 jobs last month, marking an eleven-month streak of outstripped expectations. And while average earnings grew less than expected (good news for inflation), wages for non-management positions â most roles, in other words â had their biggest gain in three months. Why Should I Care? For markets: Up in the air.
The Fed will be scrutinizing the inflation and retail sales data due out this week, but this jobs leap has some economists convinced that a 0.5-percentage-point hike is already a done deal. Still, with a few factors muddying the waters, thatâs not guaranteed: for one, more folk are returning to the workforce these days, which should ease supply shortages and help keep a lid on wages. And for another, the layoff eraâs not going anywhere: in fact, the length of the average workweek just fell â a key omen, given that employers tend to cut hours first, staff second. Zooming out: Keeping calm, carrying on.
The UK's not going down without a fight either. Data out on Friday [showed]( the economy grew at an impressive 0.3% in January â three times faster than expected. That growth was mainly powered by services, with especially strong performances by education and entertainment. But while that might push aside recession fears for now, areas like manufacturing and construction still shrank â meaning the deeper problems havenât disappeared. You might also like: [Interest rates could push even higher, but stocks may weather it just fine.]( Copy to share story: [( ð [Ask a question](mailto:questions@finimize.com?body=Ask us a question:
Where are you writing from? Let us know and we'll mention it when we reply.&noapp=true&subject=Painfully Employed&utm_campaign=daily-global-13-03-2023&utm_source=email) ANALYST TAKE This Trade Is Wildly Popular Now, And It Could Be A Huge Problem Analysts at JPMorgan have just flagged [a potential new risk]( in markets â and itâs one youâre going to want to pay attention to. It has to do with the [record rise in 0DTE](, or âzero days to expiryâ, options trading â and if these analysts are right, it could turn a 5% intraday stocks drop into a 25% catastrophic plunge. Thatâs todayâs Insight: [why 0DTEs are a worry for stocks and what you can do to protect your portfolio.]( [Read or listen to the Insight here]( ð¬ Quote of the day âWhen did the future switch from being a promise to being a threat?â â Chuck Palahniuk (an American novelist) [Tweet this]( Meet your future community Letâs face it, even the best brands need a little push to [reach the right audience](. Our [one-million-strong community of modern investors]( is clever, clued-in, and keen to learn. In short, theyâre exactly the type of folk you want to reach. So whether youâre an established brand, scaleup, or startup, [our promotional campaigns]( can help you reach the right audience at the right time. Your tailored campaign will make the most of all the Finimize channels, including live event and Summit showcases, social media blasts, and curated newsletter placements â [yup, right here](. Introduce yourself to your future community with Finimize. [Get In Touch]( ð Finimize Live 𥳠Coming Up Soon⦠All events in UK time. ð [Five Shares For ISAs â How HL Researches](: 5pm, March 20th
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