Shares of the Beverly Hills, Calif.-based regional bank fell 23% on Thursday after the company said its deposits dropped 9.5% during the week ended May 5. The lender said most of the decline occurred in the wake of news reports that PacWest was exploring a range of options, including a sale.
Stop Equating the Latest Bank Failures to the 2008 Crisis
The failures this year of First Republic Bank, Silicon Valley Bank and Signature Bank have been labeled the second-, third- and fourth-largest bank failures in U.S. history. By one measure, the three banks held more assets than all 25 banks that failed in 2008 during the global financial crisis.
Wait a second: this wave of failures is as bad as the 2008 crisis? The one that caused the Great Recession, street protests, trillion-dollar bailouts and a total overhaul of financial regulation?
Fed Official Signals Support for Further Rate Increases
A Federal Reserve official said the central bank should be prepared to continue lifting interest rates because inflation remains too high and the labor market is too tight, hinting at disagreements within the central bank's rate-setting committee.
Fed governor Michelle Bowman, in remarks prepared for delivery Friday at a banking conference in Germany, said she wasn't confident the central bank was making enough progress slowing down economic activity and inflation even though she allowed that interest rates were now at a restrictive setting.
Waller Says Fed Shouldn't Let Climate Concerns Distract From Overall Stability Risks
A top Federal Reserve official said that the U.S. central bank shouldn't put a special focus on climate-change risks in a way that could distract it from other destabilizing forces in the economy.
"Risks are risks, and from a policy-making perspective, the source of a particular shock isn't as important as building a financial system that is resilient to the range of risks we face," Federal Reserve governor Christopher J. Waller said Thursday during a conference in Madrid.
Pro Take: Hard Times for Office Buildings Not Likely to Start a New Financial Crisis
The one-two punch of hybrid work and the Federal Reserve's campaign of interest rate increases is battering the U.S. office building market, and the pain could grow worse in the months ahead.
But the damage can be contained, and it need not cause wider economic woes, economists say.
UK Economy Ekes Out Growth in 1Q
The U.K. economy grew slightly in the first quarter, upturning expectations a few months ago of a prolonged recession, though high inflation curbing purchasing power and Bank of England rate rises could put a lid on economic progress in the months to come.
Gross domestic product grew 0.1% from January to March compared with the previous three-month period, the same as in the fourth quarter of 2022, according to data from the Office for National Statistics released Friday.
Pandemic-Era Border Policy Expires Amid Migrant Surge
The pandemic-era border measure used to quickly expel asylum seekers ended late Thursday with thousands of migrants crossing into the U.S. before midnight in anticipation of harsher immigration rules.
There were no immediate reports of a rush of migrants at legal ports of entry or elsewhere, which authorities feared would occur right after the expiration of Title 42. Under the public-health rule, U.S. authorities could send migrants who crossed the border illegally back to Mexico before they could request asylum.
Debt-Ceiling Fight Weighs on Defense Industry
If the U.S. defaults on its debt and is unable to pay all its bills this summer, the pain will fall squarely on the defense industry.
National security is by far the largest category of discretionary federal spending, with budgets rising over the past two years to counter China's military expansion and tackle the conflict in Ukraine. Discretionary military spending reached three-quarters of a trillion dollars last year, up from $590 billion five years ago.
George Santos Strikes Deal to Resolve Brazil Criminal Charges
SÃO PAULO-U.S. Rep. George Santos reached an agreement Thursday with Brazilian authorities to settle criminal charges that he committed fraud when he was 19 years old.
Mr. Santos, 34 years old, faced accusations that he stole checks and used them to purchase $1,300 worth of goods at a clothing store in 2008, when he was living in Brazil. Mr. Santos was born to Brazilian parents.
Trump's Indifference on Ukraine War Sets Stark Choice for U.S. Voters in 2024
Donald Trump's refusal to commit to aiding Ukraine's fight against Russia's invasion portends a stark choice for U.S. voters if the war is still raging in November 2024: The wide-ranging support for Kyiv under President Biden, or indifference to the winner of a conflict that has cost the U.S. and its allies tens of billions of dollars.
The former president, who is also the GOP's leading contender to challenge Mr. Biden next year, also challenged the broadly unified support in the mainstream of the Republican Party for backing Ukraine, with some GOP lawmakers pushing the Biden administration to provide Kyiv with even more advanced and lethal weaponry.
Write to paul.larkins@dowjones.com TODAY IN CANADA
Earnings - 1Q unless stated otherwise:
ABC Tech Hldgs 3Q
Air Canada
Aya Gold & Silver
Badger Infrastructure Solutions 2Q
Cineplex
Crescent Point
dentalcorp
Emera
MDA
Neo Performance
Softchoice
WELL Health Tech
Economic Calendar (ET):
0830 Mar New motor vehicle sales
Stocks to Watch: to Watch:
ADENTRA 1Q Sales $579.9M; 1Q EPS 42c
Automotive Prop REIT 1Q Net C$17M
Canacol Energy 1Q EPS 49c; 1Q Rev $73.9M
DRI Healthcare 1Q Loss/Shr 3c; 1Q Loss $1.1M
Farmers Edge 1Q Loss/Shr C$0.44; 1Q Rev C$6.3M
Guardian Capital Group 1Q EPS C$18.79; 1Q Rev C$54.5M; 1Q Cont Ops EPS C$1.02
Firm Capital Property 1Q Rev C$14.2M; 1Q Net C$5.4M
Maple Leaf Foods Names Curtis Frank as CEO, President; Frank to Succeed Michael McCain
Olympia Financial Group 1Q EPS C$2.17; 1Q Rev C$23.6M
Orla Mining 1Q EPS 4c; 1Q Net $13.2M
Star Diamond 1Q EPS 0.00c; 1Q Loss C$0.3M
Titan Mining 1Q EPS 1c; 1Q Rev $16.7M
Victoria Gold 1Q EPS C$0.02; 1Q Rev C$96.5M
Vitalhub 1Q Rev C$12.6M; 1Q Net C$162,168
Expected Major Events for Friday
06:00/UK: Mar UK trade
06:00/UK: Mar Index of production
06:00/UK: Mar Index of services
06:00/UK: 1Q Business investment in the UK: provisional results
06:00/UK: Mar Monthly GDP estimates
06:00/UK: 1Q First quarterly estimate of GDP
06:45/FRA: Apr CPI
10:00/FRA: Mar OECD Harmonised Unemployment Rates
11:30/UK: Apr NIESR Monthly GDP Tracker
12:30/US: Apr Import & Export Price Indexes
12:30/CAN: Mar New motor vehicle sales
14:00/US: May University of Michigan Survey of Consumers - preliminary
16:00/US: World Agricultural Supply & Demand Estimates (WASDE)
16:59/GER: Mar Balance of Payments
All times in GMT. Powered by Onclusive and Dow Jones.
Expected Earnings for Friday
9 Meters Biopharma Inc (NMTR) is expected to report for 1Q.
Abraxas Petroleum (AXAS) is expected to report for 1Q.
Aimia is expected to report for 1Q.
Air Canada is expected to report $-0.79 for 1Q.
Airsculpt Technologies Inc (AIRS) is expected to report for 1Q.
American Shared Hospital (AMS) is expected to report for 1Q.
Applied Energetics Inc (AERG) is expected to report for 1Q.
Athersys (ATHX) is expected to report for 1Q.
Avalon GloboCare Corp (ALBT) is expected to report for 1Q.
Barnwell Industries (BRN) is expected to report for 2Q.
Bio-Path Holdings Inc (BPTH) is expected to report for 1Q.
Ceres Global Ag (CRP.T) is expected to report for 3Q.
Charles Schwab (SCHW) is expected to report.
Cineplex Inc (CGX.T,CPXGF) is expected to report $-0.34 for 1Q.
ContraFect Corp (CFRX) is expected to report for 1Q.
Crescent Point Energy Corp (CPG,CPG.T) is expected to report $0.40 for 1Q.
Delcath Systems Inc (DCTH) is expected to report for 1Q.
Embecta Corp (EMBC) is expected to report for 2Q.
Emera is expected to report $0.92 for 1Q.
Fonar Corp (FONR) is expected to report for 3Q.
Guided Therapeutics Inc (GTHP) is expected to report for 1Q.
Humacyte Inc (HUMA) is expected to report for 1Q.
Impel Pharmaceuticals Inc (IMPL) is expected to report for 1Q.
Lassonde Industries Inc (LAS.A.T) is expected to report for 1Q.
MDA is expected to report for 1Q.
Marathon Gold is expected to report for 1Q.
Mega Uranium is expected to report for 2Q.
Natural Alternatives International Inc (NAII) is expected to report for 3Q.
Northwest Healthcare Properties Real Estate Investment Trust (NWH.UN.T, NWHUF) is expected to report for 1Q.
Ocuphire Pharma Inc (OCUP) is expected to report for 1Q.
Odonate Inc (ODTC) is expected to report $-1.17 for 1Q.
Onex Corp (Canada) (ONEX.T) is expected to report for 1Q.
POINT Biopharma Global Inc (PNT) is expected to report for 1Q.
ProMIS Neurosciences is expected to report for 1Q.
SANUWAVE Health (SNWV) is expected to report for 1Q.
Security National Financial Corp (SNFCA) is expected to report for 1Q.
Soligenix Inc (SNGX) is expected to report for 1Q.
Spectrum Brands Holdings Inc (SPB) is expected to report $-0.26 for 2Q.
Three Valley Copper Corp (TVC.V) is expected to report for 4Q.
Valeura Energy (PNWRF,VLE.T) is expected to report for 1Q.
Powered by Onclusive and Dow Jones.
ANALYST RATINGS ACTIONS
AFC Gamma Cut to Market Perform From Market Outperform by JMP Securities
Albemarle Raised to Overweight From Sector Weight by Keybanc
Alcoa Raised to Outperform From Neutral by Credit Suisse
Arcturus Therapeutics Raised to Buy From Neutral by HC Wainwright & Co.
Axon Enterprise Raised to Overweight From Neutral by JP Morgan
Bain Capital Specialty Raised to Equal-Weight From Underweight by Wells Fargo
(MORE TO FOLLOW) Dow Jones Newswires
05-12-23 0616ET
