The collapse of Silicon Valley Bank

Hello from London. We had a visit this week from founder of the Citadel hedge fund, Ken Griffin, who told us that?American capitalism is “breaking down before our eyes”. It certainly feels that way. The US government intervened to prevent a banking crisis last weekend after tech industry lender Silicon Valley Bank imploded under the strain of depositors pulling out their money. The crisis demonstrates that?the banking sector, in theory private, is in practice a ward of the state, writes the FT’s Martin Wolf.

As if that wasn’t enough, last night embattled lender?Credit Suisse announced it planned to borrow up to SFr50bn?from Switzerland’s central bank and buy back SFr3bn of its distressed debt. In his excellent Unhedged newsletter, the FT’s US financial commentator Rob Armstrong explains?how the two crises are linked. (You can sign up to Unhedged for free for 90 days with?this link.)

In other news, UK chancellor Jeremy Hunt delivered the Spring Budget yesterday. At the FT, the budget is a massive event that produces dozens of stories and columns. More on that below.

My choices this week

1.?Jeremy Hunt delivered a defiantly upbeat Budget that offered a ￡9bn tax break for business, an extension of free childcare and a surprise pension boost for the well-off. But?the giveaways will have a marginal impact on UK growth, reports economic correspondent Delphine Strauss.

2.?“A government which does not provoke a currency crisis, break its own laws or intentionally alienate its allies is today a cause for celebration.” UK chief political commentator Robert Shrimsley writes that in a world of low expectations,?Hunt’s Budget has offered Tories reason for optimism.

3.?The US, UK and Australia have unveiled a plan to supply Canberra with nuclear-powered submarines, marking a new chapter for the allies as they counter China in the Indo-Pacific.?We explain the significance of the new Aukus security pact.?(Free to read)

4.?Rumours are swirling that Disney’s Bob Iger is considering the future of streaming service Hulu and sports network ESPN. As Hollywood enters a more mature phase of the streaming era, the FT asks?what kind of company should Disney be?

5.?China’s leader Xi Jinping caught many across the Middle East and in Washington by surprise when he convinced Tehran and Riyadh to restart diplomatic relations after almost seven years. We report on?China’s unexpected new role as Middle East peacemaker.?(Free to read)

6.?In Russia, theatre holds a near-spiritual status in the national imagination, but since the country invaded Ukraine, censorship has smothered creative life. Moscow correspondent Polina Ivanova asks?what remains of the country’s freethinking theatre scene?in the FT Weekend Magazine.

Thanks for reading

Roula

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