Aurelia Butler

The FDIC expects to begin its marketing of the retained loan portfolio of the former Signature Bank later this summer, it said in a statement.The portfolio is comprised primarily of commercial real estate (CRE) loans, commercial loans and a smaller pool of single–family residential loans. Last week, Reuters reported that FDIC has retained advisers to sell the securities portfolios that the new owners of failed Silicon Valley Bank and Signature Bank rejected.The FDIC said on Monday it has retained Newmark & Company Real Estate Inc as an advisor on the sale.On March 19, a unit of New York Community Bancorp (NYSE:NYCB) entered into an agreement with U.S. regulators to buy deposits and loans from Signature Bank. More

WASHINGTON/LONDON/TOKYO (Reuters) -Global factory activity weakened in March as consumers feeling the pinch from rising living costs cut back, surveys showed on Monday, suggesting a deteriorating outlook will remain a drag on economic recoveries and keep policymakers on their toes. U.S. manufacturing activity slumped to the lowest level in nearly three years as new orders continued to contract, a survey by the Institute for Supply Management (ISM) showed. Its manufacturing PMI fell to 46.3 last month, the lowest reading since May 2020, from 47.7 in February. Economists polled by Reuters had forecast the index dipping to 47.5.It was the fifth straight month that the PMI remained below the 50 threshold, which indicates contraction in manufacturing. But so-called hard data have suggested that manufacturing, which accounts for 11.3% of the economy, continues to grow moderately. Rising borrowing costs as the Federal Reserve fights high inflation have cooled demand for goods, which are typically bought on credit. Demand could also come under further pressure following the recent failure of two U.S. regional banks and the takeover of Credit Suisse, which stressed the financial sector.”While an onshoring of supply networks and investment in domestic manufacturing capacity could provide support to factory activity, a further tightening in credit conditions may be a hurdle going forward,” said Rubeela Farooqi, chief U.S. economist at High Frequency Economics.The U.S. central bank is expected to pause its tightening cycle soon, but the outlook remains clouded by the banking-sector troubles, still-high inflation and slowing global growth with market turbulence shedding light on potential vulnerabilities in the world financial system. The ISM’s survey did, however, also show work backlogs continued to shrink last month, reflecting the drop in demand as well as improved supply chains.With supply improving, inflation at the factory gate retreated. The ISM survey’s measure of prices paid by manufacturers dropped to 49.2 from 51.3 in February. But oil prices surged on Monday, posting the biggest daily rise in nearly a year, after a surprise announcement by OPEC+ on Sunday to cut more production, likely adding to inflationary pressures.MIXED MOOD IN EURO ZONEIn the euro zone, factories across the bloc also saw a further decline last month, although there too the cost of manufacturing fell for the first time since mid-2020.S&P Global (NYSE:SPGI)’s final euro zone manufacturing Purchasing Managers’ Index (PMI) fell to 47.3 in March from February’s 48.5, just ahead of a preliminary reading of 47.1 but below the 50 mark for a ninth month.An index measuring output, which feeds into a composite PMI due on Wednesday that is seen as a good guide to economic health, did however rise to a 10-month high of 50.4 from 50.1.”Today’s PMI results highlight that challenges remain for manufacturing companies. Although consumer demand has largely held across sectors, this could lessen gradually,” said Thomas Rinn, global industrial lead at Accenture (NYSE:ACN).German manufacturing activity shrank in March at the fastest pace in almost three years, while weak demand continued to drag down France’s factory sector as purchasing managers turned pessimistic about the 12-month outlook for their businesses.In Britain, outside the European Union, manufacturers also slipped, but did turn more optimistic about the future as cost pressures and supply chain problems eased.The improving supply chains and lower energy costs meant input prices fell in the euro zone for the first time since July 2020 – just when the COVID-19 pandemic was cementing its grip.ASIAN STRAINWhile supply disruptions caused by the pandemic have mostly run their course, weak chip demand and fresh signs of slowdown in global growth have emerged as risks to many Asian economies.Export-reliant Japan and South Korea both saw manufacturing activity contract in March while growth in China stalled, highlighting the challenge facing Asia as authorities try to keep inflation in check and fend off headwinds from faltering global demand.”With global growth set to remain weak in the coming quarters, we expect manufacturing output in Asia to remain under pressure,” said Shivaan Tandon, emerging Asia economist at Capital Economics.China’s Caixin/S&P Global manufacturing PMI stood at 50.0 in March, much lower than market forecasts of 51.7 and below February’s 51.6. The reading echoed slower growth in an official PMI released on Friday.”The foundation for economic recovery is not yet solid… economic growth will still rely on a boost in domestic demand, especially an improvement in household consumption,” Wang Zhe, senior economist at Caixin Insight Group, said on China’s PMI.South Korea’s PMI fell to 47.6 in March from 48.5 in February, its weakest in six months as export orders took a hit.Japan’s final au Jibun Bank PMI stood at 49.2 in March, up from February’s 47.7 but remaining below the 50-threshold, as new orders contracted for a ninth-consecutive month.A separate central bank survey released on Monday showed Japanese big manufacturers’ sentiment soured in January-March to its worst in more than two years, as weak external demand added to the struggle for firms already grappling with rising raw material costs.India was a rare bright spot in the region, with its manufacturing sector expanding at its quickest pace in three months in March on improved output and new orders, suggesting its economy is better placed than most of its peers to weather a global slowdown. Vietnam and Malaysia saw factory activity shrink in March, while that of the Philippines expanded at a slower pace than in February, surveys showed. More

NEW YORK (Reuters) – A New Jersey hedge fund and its founder have agreed to pay $19.3 million to settle charges by the U.S. Securities and Exchange Commission (SEC) that they improperly traded in fixed-income securities.Chatham Asset Management and its founder, Anthony Melchiorre, have agreed to settle charges they violated U.S. laws designed to protect investors when they bought and sold bonds in American Media Inc for their clients, the SEC said in a statement.From 2016 through 2018, one Chatham-advised client sold bonds in the magazine and tabloid publisher, whose publications include US, Soap Opera (NASDAQ:OPRA) Digest and Woman’s World, while another client purchased the same bonds through broker-dealers as the hedge fund sought to address “portfolio constraints,” the SEC said.Chatham and Melchiorre proposed prices for the trades, effectively increasing the price of AMI’s bonds relative to those of similar securities, the SEC said. That also boosted the net asset values of their clients’ funds during that time period, garnering more in fees. A representative for Chatham and Melchiorre, who did not admit or deny the SEC’s charges, said the firm “sought, received and followed advice” from an independent compliance consultant on the matter.”The consultant reviewed Chatham’s trading annually for compliance with applicable laws and did not alert the firm to any issues,” the statement said, noting the funds have since been closed and the firm is focused on generating returns for clients.Chatham and Melchiorre agreed to pay civil penalties of $4.4 million and $600,000, respectively, and to pay another $14.4 million jointly in disgorgement and interest.”We remain vigilant in rooting out such misconduct in the marketplace, including in the fixed income sector, where investments can be less liquid,” Sanjay Wadhwa, the SEC’s deputy enforcement director, said in the statement. More

Today’s top storiesThe IMF said the recent “surprise” surge in inflation had bolstered the public finances of advanced economies as it urged them to use the windfalls to cut deficits. Economics editor Chris Giles explains. Former US president Donald Trump is set to fly to New York to face criminal charges in a Manhattan court tomorrow.Russia’s security services are confiscating the passports of senior officials and state company executives as paranoia over leaks and defections spreads. Moscow suggested Ukraine was behind an explosion in a café that killed a prominent pro-war blogger in St Petersburg. Russian forces claim to have captured the centre of the Ukrainian city of Bakhmut.For up-to-the-minute news updates, visit our live blogGood evening.Oil prices jumped today after yesterday’s surprise announcement of a cut in production from Opec+ members that has threatened to reignite inflationary pressures as well as tensions between Saudi Arabia and the US.The reduction of more than 1mn barrels a day, including 500,000 from Saudi Arabia — 5 per cent of its output — was unusual for being announced outside a formal Opec+ meeting, suggesting an element of urgency among the cartel members. Russia said it would extend its existing 500,000 b/d cut until the end of the year.As our explainer details, the move is an attempt by Opec+ to prop up or push higher oil prices, which recently fell towards $70 a barrel as banking turmoil led to a sell-off of risky assets, down from the $100 levels of last year.The move could exacerbate strains between Saudi Arabia and the US, which last year pushed for the kingdom to pump more oil in an attempt to restrain surging energy costs. Washington will also be annoyed at the Saudis’ determination to keep working with Russia, which helped form the expanded Opec+ group in 2016. Saudi Aramco, the world’s largest oil major, has also just strengthened its ties with China through two refinery deals.The Opec+ announcement pushed up shares in other oil companies, which are benefiting from the rush to shore up supplies as energy security trumps climate concerns. Despite passing significant legislation to accelerate the development of green tech, President Joe Biden has recently given the green light to drilling in Alaska and boasted that oil output would soon hit record highs. And in the UK, a new front in the war between environmental campaigners and fossil-fuel companies has opened up at Rosebank, a vast oilfield off the Shetland Islands, where a $4.5bn project owned by Norway’s Equinor aims to drill for up to 300mn barrels of oil and gas, more than double the size of the nearby Cambo field. The likely approval by regulators was reflected in the enthusiasm of energy secretary Grant Shapps, who said last week: “Unless you can explain how we can transition (to net zero) without oil and gas, we need oil and gas.”In the meantime, banks that had been forecasting higher crude prices are doubling down, with Goldman Sachs raising its year-end target from $90 a barrel to $95 a barrel. More expensive oil also complicates central bank attempts to restrain inflation, forcing them to keep lifting interest rates or keep them higher for longer.

Video: Has Big Oil changed? | FT Film

Need to know: UK and Europe economyThe UK promised greater transparency over new legislation that gives ministers the ability to block deals on national security grounds. The measures were introduced partly because of concerns over China buying up UK assets but corporate advisers say they are having a chilling effect on deal making and inward investing.Sinn Féin’s Michelle O’Neill, Northern Ireland’s first minister-designate, urged the US to “drum up” investment in the region now that post-Brexit trade arrangements had been clarified.Finnish prime minister Sanna Marin conceded defeat in the country’s general election as centre-right opposition leader Petteri Orpo claimed a mandate to form a new coalition government. Voters’ nervousness over the economy will make other European leaders take note. Finland officially joins Nato tomorrow.In other election news, Montenegro voters ousted President Milo Đukanović after 30 years in power, replacing him with Jakov Milatović, a 37-year-old banker who promised to speed up the country’s accession talks with the EU. In Bulgaria, the centre-right GERB party of ex-prime minister Boyko Borisov appeared to be the winner of the country’s parliamentary elections but there was also a strong result for the pro-Russian Revival party.Join Stephen Bush and other FT journalists and experts on April 19 at 13:00 BST for a live Inside Politics discussion on the outlook for the UK economy and politics in the run-up to next year’s general election. You can sign up here and submit questions to the speakers.Need to know: Global economy“Don’t do to others what you don’t want others to do to you,” was China’s none-too-subtle warning to Japan about joining the west’s chip wars by curbing exports of semiconductor manufacturing equipment. Back at home, President Xi Jinping has launched a charm offensive to convince investors the country is open for business. Our Big Read has the details.Western businesses could struggle to loosen ties with China given the lack of alternative ports in other parts of Asia that are capable of handling today’s mega-container ships. Speakers at a climate and health conference in the United Arab Emirates were told not to protest or “criticise corporations”, raising the alarm among campaigners ahead of the country’s hosting of the UN COP28 climate summit this year.Need to know: businessSwitzerland’s federal prosecutor opened an investigation into the state-backed takeover of Credit Suisse by its larger rival UBS. CS is bracing for a shareholder backlash over the rescue. The head of Julius Baer, one of the country’s biggest banks, warned the country not to jeopardise its status as banker to the super-rich.Cinema chain Cineworld announced a debt restructuring plan to help bring it out of Chapter 11 bankruptcy proceedings. UK businesses are bracing for a “week of woe” as new taxes kick in at the same time as government subsidies on energy bills and R&D investment start to wane.Only 5 per cent of FTSE 100 companies have “credible” climate transition plans, according to EY, despite statements saying they are committed to slashing emissions. Lithium shortages could hit the EU’s transition to electric cars, posing a challenge to its planned phasing out of new petrol and diesel vehicles by 2030. Our Big Read explains how China is winning the race for Africa’s lithium. AI correspondent Madhumita Murgia pits OpenAi’s Chat GPT-4 against Google’s Bard in a battle of the chatbots, asking them to pick stocks, write an advertising slogan and imagine a conversation between Xi Jinping and Vladimir Putin. New anti-plagiarism software is aiming to catch cheating students submitting AI-created essays. The World of WorkQuiet quitting. Sunday scaries. Bare minimum Mondays. Columnist Pilita Clark ponders the new buzzwords that have cropped up since the pandemic started and what they reveal about how we view our jobs.Some believe that “boomerang” bosses bring stability when they return to their former companies in times of crisis. However, the data suggests otherwise.Some good newsUS researchers at MIT have designed a new type of nanoparticle that can be administered to the lungs where it can perform a gene editing function, potentially offering an inhalable treatment for diseases such as cystic fibrosis.Image: iStock, edited by MIT News More