CNBC Daily Open: UBS agrees to buy Credit Suisse
Publishing timestamp: 2023-03-19 19:36:48
Summary
UBS has agreed to buy Credit Suisse for $3.2 billion, with the Swiss National Bank loaning UBS up to $108 billion to support the takeover. However, banks continued to plummet on Friday, with Credit Suisse sinking 8.01% and First Republic plunging 32.80%. The S&P 500 also underwent some major changes, with Visa, Mastercard, and Paypal moving to the financial sector and Target, Dollar General, and Dollar Tree joining Walmart as consumer staples. Short sellers have taken advantage of the banking crisis, making nearly $2 billion in profits from bets against European banks. The article suggests that the current turmoil in the banking sector has led to a lack of credibility for banks and markets, and that the Federal Reserve may need to pause rate hikes to address the situation.
Sentiment: NEGATIVE
Tickers: PYPL, WAL, MA, CSG.N-CH, FRC, DLTR, WMT, DG, TGT, PACW, UBSG-CH, V,
Keywords: first republic bank, pacwest bancorp, dollar general corp, switzerland, dollar tree inc, markets, paypal holdings inc, visa inc, target corp, credit suisse group ag, economic events, western alliance bancorp, banks, walmart inc, business news, ubs group ag, mastercard inc, united states, central banking, world markets,
Source: https://www.cnbc.com/2023/03/20/stock-markets-ubs-agrees-to-buy-credit-suisse.html