After a week of federal interventions to stabilize the banking system and market volatility driven by investor uncertainty, the economic outlook now hangs on two factors: private- sector confidence and Federal Reserve interest-rate policies.
Silicon Valley Bank's Distress Wasn't Reflected in Credit Ratings
Credit-rating firms held regional banks in high regard-until two of the biggest banking failures in U.S. history.
Rapid collapses at Silicon Valley Bank and Signature Bank cast doubt on whether bondholders will ever be repaid. Uninsured depositors worried they would lose their money before regulators stepped in to guarantee those funds.
Don't Bet on a Fed Pause. Why a Rate Hike Is Still Likely.
Turmoil in the banking sector went global on Wednesday, sending equity markets tumbling and sparking renewed calls for the Federal Reserve to pause its monetary-policy tightening efforts when officials meet next week.
Despite widespread market volatility over the past several days, however, inflation remains well above the Fed's 2% target, particularly in the most-worrisome services sector, and the macroeconomic outlook so far is mostly unchanged. That suggests to many economists that the central bank, in its quest to balance its dual priorities of financial stability and price stability, is still likely to raise rates by a modest quarter of a percentage point when officials meet for their March policy meeting next week.
Tiger Global Writes Down Venture Funds' Bets by 33% in 2022
Tiger Global marked down the value of its investments in private companies by about 33% across its venture-capital funds in 2022, according to people familiar with the firm.
The markdowns erased $23 billion in value from Tiger's giant holdings of startups around the globe, one of the people said. Its private portfolio includes big bets on hundreds of companies including TikTok parent ByteDance and payments company Stripe. In the fourth quarter, Tiger's newest venture funds lost between 9% and 25%.
Bursting Bubble Is Expected to Curb 2023 Bonuses
Bonuses for private-equity executives will fall again this year after declining across much of the industry in 2022, with the heaviest cuts seen for smaller and midsize firms, according to Alan Johnson, managing director of Wall Street compensation consulting firm Johnson Associates Inc.
However, the largest buyout shops may escape unscathed, he said.
Tiger Global Writes Down Venture Funds' Bets by 33% in 2022
Tiger Global marked down the value of its investments in private companies by about 33% across its venture-capital funds in 2022, according to people familiar with the firm.
The markdowns erased $23 billion in value from Tiger's giant holdings of startups around the globe, one of the people said. Its private portfolio includes big bets on hundreds of companies including TikTok parent ByteDance and payments company Stripe. In the fourth quarter, Tiger's newest venture funds lost between 9% and 25%.
Bursting Bubble Is Expected to Curb 2023 Bonuses
Bonuses for private-equity executives will fall again this year after declining across much of the industry in 2022, with the heaviest cuts seen for smaller and midsize firms, according to Alan Johnson, managing director of Wall Street compensation consulting firm Johnson Associates Inc.
However, the largest buyout shops may escape unscathed, he said.
China's Xi to Meet Putin in Moscow Next Week
Chinese leader Xi Jinping plans to visit Moscow next week for talks with Russian President Vladimir Putin, the Kremlin said Friday, showcasing the deepening relationship between Beijing and Moscow as the war in Ukraine drags on.
During the visit, which will take place March 20-22, the two leaders will discuss "topical issues of further development of the comprehensive partnership relations and strategic cooperation between Russia and China, " the Kremlin said. Several bilateral documents will be signed during the visit, it said.
U.N. Sees Wide Range of War Crimes by Russian Forces in Ukraine
United Nations investigators have gathered evidence of a range of atrocities that Russian forces committed against Ukrainians that amount to war crimes, a United Nations commission found.
An independent commission formed under the U.N. Human Rights Council cited evidence of killings, imprisonment, torture, sex crimes and the deportation of civilians, according to a report released on Thursday. Ukrainian forces also committed "a small number of violations" of international law, the commission found, including the shooting and torture of Russian prisoners of war, the report stated.
Write to paul.larkins@dowjones.com TODAY IN CANADA
Earnings:
Algonqn Power & Utilities 4Q
Ballard Power 4Q
Filo Mining 4Q
Lithium Americas 4Q
Orla Mining 4Q
Economic Calendar (ET):
0830 Jan International transactions in securities
0830 Feb Industrial product and raw materials price indexes
Stocks to Watch:
Automotive Prop REIT 4Q Net C$13.6M
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Dream Industrial REIT Prices Private Placement of C$200M in Series F Senior Unsecured Debentures With 5.383% Coupon, Maturing March 22, 2028; to Use Proceeds From Offering to Repay Debt, for General Trust Purposes; Series F Debentures Expected to Be Rated BBB With Stable Trend by DBRS Limited
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HEXO 2Q Net C$700,000; 2Q Rev C$24.2M; Circumstances Lend Substantial Doubt as to Ability of the Co to Meet Obligations; Will Continue to Evaluate Potential Private and Public Financing Opportunities Through Issuance of Equity; in Discussions With Lender Regarding Potential Amendments to and/or Covenant Relief; Circumstances Create Material Uncertainties
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Maxim Power 4Q Loss/Shr C$0.14; 4Q Loss C$7.16M; 4Q Rev C$0.00
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SIR Royalty Income Fund 4Q EPS C$0.84
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Swiss Water Decaffeinated Coffee 4Q Rev C$44.0M; 4Q Loss/Shr C$0.03
Expected Major Events for Friday
04:30/JPN: Jan Tertiary Industry Index
09:00/ITA: Jan Foreign Trade EU
09:30/UK: Feb Bank of England/Ipsos Inflation Attitudes Survey
09:30/UK: 4Q Bank of England statistics on UK banks' external claims
12:30/CAN: Jan International transactions in securities
12:30/CAN: Feb Industrial product and raw materials price indexes
13:15/US: Feb Industrial Production and Capacity Utilization
14:00/US: Mar University of Michigan Survey of Consumers - preliminary
14:00/US: Feb Leading Indicators
14:00/US: Jan Metropolitan Area Employment and Unemployment
All times in GMT. Powered by Onclusive and Dow Jones.
Expected Earnings for Friday
Akero Therapeutics Inc (AKRO) is expected to report for 4Q.
Algonquin Power & Utilities Corp (AQN,AQN.T) is expected to report $0.18 for 4Q.
Atossa Therapeutics Inc (ATOS) is expected to report $-0.07 for 4Q.
BP Prudhoe Bay Royalty Trust (BPT) is expected to report for 4Q.
Ballard Power Systems (BLDP,BLDP.T) is expected to report $-0.19 for 4Q.
Big Rock Brewery is expected to report for 4Q.
Bio-Path Holdings Inc (BPTH) is expected to report for 4Q.
Biomea Fusion Inc (BMEA) is expected to report for 4Q.
Chicago Rivet & Machine Co (CVR) is expected to report for 4Q.
Cidara Therapeutics Inc (CDTX) is expected to report $-0.15 for 4Q.
DXI Capital Corp (DXI.H.V) is expected to report for 4Q.
Drive Shack Inc (DSHK) is expected to report $-0.06 for 4Q.
Exela Technologies Inc (XELA) is expected to report for 4Q.
Fennec Pharmaceuticals Inc (FENC,FRX.T) is expected to report $-0.27 for 4Q.
Filo Mining Corp (FIL.T) is expected to report $-0.13 for 4Q.
Greenwich LifeSciences Inc (GLSI) is expected to report for 4Q.
Hudson Global Inc (HSON) is expected to report for 4Q.
Humanigen Inc (HGEN) is expected to report for 4Q.
Life360 is expected to report for Full year.
Nortech Systems Inc (NSYS) is expected to report for 4Q.
Perpetua Resources Corp (PPTA.T) is expected to report for 4Q.
Pineapple Energy Inc (PEGY) is expected to report for 4Q.
Regional Health Properties Inc (RHE) is expected to report for 4Q.
SIFCO Industries (SIF) is expected to report for 1Q.
Satellogic Inc (SATL) is expected to report for 3Q.
Smart Share Global Ltd - ADR (EM) is expected to report for 4Q.
Spruce Biosciences Inc (SPRB) is expected to report for 4Q.
Telesat Corp (TSAT) is expected to report for 4Q.
Vor Biopharma Inc (VOR) is expected to report for 4Q.
Waitr Holdings Inc (ASAP) is expected to report for 4Q.
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ANALYST RATINGS ACTIONS
AEye Cut to Neutral From Buy by DA Davidson
Alamo Group Raised to Buy From Neutral by DA Davidson
Block Raised to Buy From Neutral by Mizuho
Choice Hotels Intl Raised to Outperform From Neutral by Baird
Esperion Therapeutics Cut to Underperform From Neutral by B of A Securities
FedEx Raised to Buy From Hold by Stifel
Fluent Cut to Market Perform From Outperform by Barrington Research
Foot Locker Raised to Outperform From Market Perform by Telsey Advisory Group
Halozyme Therapeutics Cut to Market Perform From Outperform by SVB Leerink
HF Sinclair Raised to Overweight From Equal-Weight by Wells Fargo
Intel Raised to Neutral From Negative by Susquehanna
Jones Lang Lasalle Raised to Outperform From Peer Perform by Wolfe Research
Kezar Life Sciences Cut to Market Perform From Outperform by William Blair
LivePerson Cut to Hold From Buy by Craig-Hallum
LivePerson Cut to Neutral From Buy by Roth MKM
Manhattan Bridge Capital Cut to Hold From Buy by Maxim Group
Medical Properties Trust Cut to Neutral From Buy by B of A Securities
Mersana Therapeutics Raised to Overweight From Neutral by JP Morgan
Motorola Solutions Raised to Buy From Neutral by JP Morgan
Olaplex Cut to Market Perform From Outperform by TD Cowen
Oric Pharmaceuticals Raised to Outperform From Perform by Oppenheimer
Progressive Raised to Overweight From Underweight by Wells Fargo
Qualcomm Raised to Positive From Neutral by Susquehanna
(MORE TO FOLLOW) Dow Jones Newswires
03-17-23 0615ET
