Weekly Market Update - 11 March 2024
NYCB’s Backers
New York Community Bancorp got an equity infusion of over $1 billion from investors including former US Treasury Secretary Steven Mnuchin. It was a much-needed vote of confidence for a lender whose shares plunged after the bank slashed its dividend, set aside more provisions than expected for loan losses and replaced its CEO. NYCB is a big lender to owners of apartment buildings subject to tough New York rent laws. It should now have sufficient capital if reserves need to be increased, Mnuchin said. The market response was positive: The shares closed 7.5% higher Wednesday, after plunging as much as 47% earlier in the session.
Source: Bloomberg
Apple’s Shift
The US government is pressing allies including the Netherlands, Germany, South Korea and Japan to further tighten restrictions on China’s access to semiconductor technology. The Biden administration’s latest push is aimed at plugging holes in export controls it has imposed over the past two years and at restraining China’s progress in developing domestic chip capabilities, according to people familiar with the matter. For example, the US is urging the Netherlands to stop ASML Holding from servicing and repairing sensitive chipmaking equipment that Chinese clients purchased. Washington also wants Japanese firms to limit exports to China of specialized chemicals that are critical for chipmaking. Tokyo and the Hague responded coolly to the controversial push, saying they want to assess the impact of their current curbs before considering tighter measures.
Source: Bloomberg
Tough Test
Shehbaz Sharif was named as the new premier of Pakistan after his elder brother and party leader Nawaz unexpectedly passed the baton to him. But the younger Sharif’s position is daunting. Supporters of his jailed rival Imran Khan won the most seats in the February poll and Sharif only regained power thanks to a shaky coalition. He needs to renew a loan with the International Monetary Fund by April to keep the economy afloat — a task that’s likely to fuel public unrest. And he must placate a powerful military that once exiled him.
Source: Bloomberg