Money Talks

The International Monetary Fund has warned that Lebanon is going through a very dangerous period, as its economic collapse deepens. In April, the IMF reached a preliminary agreement with Beirut on a 3-billion dollar conditional bailout package. But nearly a year after, officials are yet to implement the necessary reforms to unlock the 4-year financing programme. There's been outrage on the streets over the harsh economic conditions. Police clashed with angry protesters in Beirut after the Lebanese currency hit a record low against the US dollar. Priyanka Navani has more.

Sri Lanka has secured a three billion dollar bail-out from the International Monetary Fund, as the island nation looks to shore up its economy. But that money is expected to be tied to austerity measures like tax hikes and spending cuts, leaving Sri Lankan people uncertain about their future. Daniel Padwick reports.

As customers pull their money from banks, they're looking for more profitable investment options. One of them is cryptocurrencies. They have steadily regained value as demand grows- with the price of Bitcoin hitting 28-thousand dollars for the first time in 9 months. Emre Boz reports.

On Wednesday, the US Federal Reserve raised interest rates by 25 basis points. Now they're around 5 percent, up from near zero just a year ago. The rapid shift in monetary policy has spelled disaster for several banks and raised the specter of a contagious bank run that prompted the US Treasury to pull the savings of uninsured deposits out of the abyss. So far, authorities have kept panic from spreading, but how did the US economy get here? Wilson Dizard has this report.

Asia-Pacific markets are mixed this morning, and oil is edging lower amid concerns over the banking industry. US West Texas Intermediate is trading at $69 a barrel while the international benchmark Brent is at $75 a barrel. That's down from over a hundred dollars last year after Russia's attack on Ukraine shook global supply, as fears of a recession in the US mount. Officials say refilling the strategic petroleum reserve will take longer than expected. That means demand will rise slower. The stockpile is now at its lowest level since 1983, even as crude prices are set for their steepest slide since the start of the pandemic in 2020.

Borrowing costs will continue to rise in the US, as the Federal Reserve decided to look past a banking crisis and continue its campaign against inflation. Markets gritted their teeth in anticipation of the 25 basis point increase announced on Wednesday. The base interest rate is now almost five percent, up from near zero in February of last year. The Fed acknowledged that the swift tightening of credit had caught some banks off guard. While Fed Chairman Jerome Powell signaled that this might spell the beginning of the end for rate rises, Treasury Secretary Janet Yellen sent bank stocks into a tailspin by suggesting a sector-wide guarantee for all deposits of any size at any bank was not in the cards.

#FED #interestrates #JeromePowell

The price of bitcoin has topped $28,000 for the first time in nine months after the banking crisis sparked a market rally. That's as investors view the currency as an alternative to the banking system and as somewhat of a 'safe haven'. Despite this, crypto firms are now scrambling to find institutions to bank with after the collapse of both digital-friendly institutions Signature Bank and Silvergate Capital. And it looks as if they are now turning to crypto banks based in Switzerland, which has been trying to market itself as a nascent crypto hub with stricter regulation in recent years. Gold prices are also up, and according to analysts they could notch an all-time high after the US Federal Reserve's interest rate decision on Wednesday.

#Bitcoin #CryptoCurrency #BankingCrisis

Asian stocks are sliding as much as 3% today after Swiss lender UBS agreed to buy its banking rival Credit Suisse in a $3.25 billion takeover. The government-backed deal corresponds to a capitalization that is far below the level at which Credit Suisse was trading on Friday. The Swiss National Bank said the deal was the best way to restore confidence in financial markets and the credit environment in Switzerland. Credit Suisse saw its shares tumble last week after its largest investor, the Saudi National Bank, declined to provide additional funding. Meanwhile, banking stocks are expected to fall on Monday for yet another session as investors pull back from positions in First Republic, amid concerns over the state of the banking sector.

#CreditSuisse #UBS #BankingTakeover

More than a month after southeastern Turkiye was devastated by earthquakes, relief efforts continue. From government institutions to NGOs and even sports clubs, aid has been coming in from all directions. One of the country's top football clubs, Galatasaray, has been auctioning special items for the cause. Tayyibe Aydin reports.

#Galatasaray #TurkiyeEarthquakes #Football

Soaring energy bills are dealing another blow to businesses that have barely recovered from the fallout of the COVID-19 pandemic. According to a recent survey, small and large businesses across various sectors remain concerned about the impacts of energy instability.

#EnergyCrisis #Europe #CarbonEmissions