Money Talks

As Chinese President Xi secured another term, Asian stocks saw a sea of red. And that's in part due to fears of further US federal reserve hikes. New US jobs data is set for Friday, which could change the federal reserve's course on interest rates.

The Fed's tighter monetary policy has hit venture capital hard. And that's spelled a steep dive in share prices for Silicon Valley Financial Group, which handles money for half of listed tech and healthcare start-ups in the US. It's selling 1.75 billion dollars in stock to shore up its cash reserves. SVB is reassuring customers they won't lose their money, but some major start-up funders have pulled money out. SVB says higher spending by its start-up clients led to a fall in deposits. Bank stocks took an 80 billion dollar beating Thursday, including a 22 billion hit to JP Morgan's market value.

The rapid and ruthless humbling of crypto prices last year has slowed down, but the consequences for crypto companies continue. Silvergate Bank is the latest casualty. It's going out of business. The bank did business with some of the crypto market's biggest players and was responsible for around 11 billion dollars in customer assets. Those will now be handed back to their owners, but the firm's unpaid liabilities are an open question. The firm called the move a voluntary liquidation. It comes amid investigations into the company by US federal and California financial authorities and an anticipated rise in regulatory scrutiny of the crypto sector.

The cost of borrowing dollars is going to continue to increase, and that's bad news for Asian stocks. Hong Kong's index fell 2 percent on Wednesday. The rout in equities came after Federal Reserve Chairman Jerome Powell told US congress that interest rate hikes will continue. That's after a recent report showed prices for consumers started rising again. That dashed hopes the US economy could avoid a recession while still taming inflation. Crucial bond market indicators are also flashing red- signaling that a contraction may now be inevitable.

#Fed #Powell #InterestRates

Uganda and its partners have begun the initial drilling process in its oil-rich Albertine region to start production by 2025. Despite criticism, the East African country is hoping its oil wealth creates more economic growth than problems.

British charity organisation Oxfam says the world's richest people have grabbed nearly twice as much wealth as the rest of the global population put together over the past two years. Didem Demircan is the Coordinator at KEDV, the Foundation for Support of Women's Work. She gave us an insight into the decades of unfair tax cuts for the super-rich and corporations that have fueled inequality, with the poorest people in many countries paying higher prices.

#Oxfam #RichestPeople #GlobalWealth

Oil prices fell around 1% on worries of a possible US recession. That's as US retail sales continued their fall in December, dropping by 1.1% as inflation remained high. For more on this, Stephen Innes joined us from Bangkok. He is a Managing Partner at SPI Asset Management.

#Oil #BrentCrude #USRecession

Inflation in the UK is trending downward, showing declines in December for a second straight month-- in line with expectations. For more on this, Naeem Aslam joined us from London. He's chief market analyst at AvaTrade.

#UK #Inflation #ConsumerPrices

Asian shares are trading at 7-month highs ahead of US consumer price data that investors hope will confirm inflation is in retreat. Danni Hewson is a financial analyst at AJ Bell. She tells us more about how China's reopening could affect global markets.

#AsianStocks #ChinaReopening #Inflation

Crypto exchange coinbase is slashing around a fifth of its workforce as it looks to preserve cash during a crypto market downturn. The exchange plans to cut 950 jobs, according to a blog post published Tuesday morning. Naeem Aslam is Chief Market Analyst at AvaTrade in London. We asked him if the industry can resurrect from its ashes after a 60% drop in valuation in recent months.

#Coinbase #Cryptocurrencies #Bitcoin

Markets in Brazil are recovering after a sharp sell-off that occurred soon after President Luiz Inacio Lula da Silva was inaugurated on New Year's Day. Investors were concerned by mixed messages from some members of Lula's new cabinet, sparking fears that the economy was in the wrong hands. But the president says he's committed to reversing controversial policies introduced by his fiscally- conservative predecessor, Jair Bolsonaro. Melinda Nucifora reports and Remi Piet, senior partner at Embellie Advisory, joins us from Miami.

#Brazil #Lulanomics #AmazonDeforestation