Global bank stock rout deepens

The global bank stock rout has deepened as the SVB collapse fans contagion fears, Ukraine has accused Russian soldiers of widespread abuse, and California is menaced by late-season winter storms.

Shockwaves from the collapse of Silicon Valley Bank further pounded global bank stocks despite President Joe Biden’s efforts to reassure markets. Emergency U.S. measures to shore up banks by giving them access to additional funding failed to dispel investor worries.

Rating agency Moody’s downgraded the debt ratings of collapsed New York-based Signature Bank deep into junk territory and placed the ratings of six other U.S. banks under review for a downgrade. Moody’s, which rated Signature Bank’s subordinate debt ‘C’, said it was also withdrawing future ratings for the collapsed bank.

Growth in pay in Britain – which the Bank of England is watching closely as it weighs up whether to pause its run of interest rate hikes next week – lost pace in the three months to January. Basic pay, excluding bonuses, rose by 6.5% compared with 6.7% in the three months to December, representing the first slowdown in the that measure since late 2021.

India plans to force smartphone makers to allow removal of pre-installed apps and mandate screening of major operating system updates under proposed new security rules, according to two people and a government document seen by Reuters. The new rules could extend launch timelines in the world’s No.2 smartphone market and lead to business losses.

Volkswagen plans to invest $192.76 billion over the next five years in areas including battery production and its North American operations, it said, with spending on combustion engines to fall from 2025. It is working toward a target of 50% electric vehicle sales globally by 2030.

Global bankGlobal bank stock rout deepensSilicon Valley BankSVB