BANKING
Flagstar to buy Signature
A US banking regulator has struck a deal to sell most of the assets of the failed Signature Bank to another institution, the agency said on Sunday. Flagstar Bank, a subsidiary of New York Community Bancorp, is to assume all the deposits and some loan portfolios of Signature Bank, the Federal Deposit Insurance Corp said in a statement. Signature Bank held deposits of US$88.6 billion as of Dec. 31 last year, the statement said, adding that the bank’s 40 branches would open under Flagstar yesterday. About US$60 billion in loans and US$4 billion in deposits related to Signature Bank’s digital banking business will remain under the regulator’s control, the statement said. The regulator is also seeking a similar deal to sell off parts of Silicon Valley Bank.
HEDGE FUNDS
Volatility shuts macro fund
Veteran macro trader Adam Levinson is shutting down his hedge fund after being hit by losses amid ongoing bond market volatility. Levinson’s Graticule Asia macro hedge fund has plunged more than 25 percent since January, mostly during the days after the collapse of Silicon Valley Bank, people with knowledge of the matter said. His bets tied to front-end rates imploded and erased years of gains, they said. Graticule, based in Singapore, becomes the first known high-profile hedge fund felled by wild swings in bond markets, which were triggered by the SVB’s collapse as traders pulled bets on further rate hikes by central banks.
CENTRAL AMERICA
Difficult year forecast
Latin America and the Caribbean are expected to have a “difficult” year ahead, with barely 1 percent growth due to global uncertainty, the Inter-American Development Bank (IDB) said on Sunday. The growth figure “is very low given the developmental challenges in our countries,” IDB chief economist Eric Parrado said at the end of the financial institution’s annual general assembly in Panama. “In general, 2023 will be difficult for Latin America and the Caribbean, given the complexity of the global scenario and its major uncertainties,” Parrado said. The IDB projection is lower than the IMF’s expectation of 1.8 percent growth in the region, or the 1.3 percent estimation from the UN’s Economic Commission for Latin America and the Caribbean.
INTERNET
Sea turns a corner: founder
Sea Ltd (冬海) has made the changes it needs to deliver profits over the long term, billionaire founder Forrest Li (李小冬) said in a memo to staff, assuring workers who survived months of steep job cuts that the worst is over. The Asian Internet giant’s first-ever quarterly net profit marks a turning point for the company, Li said in a recent internal memo seen by Bloomberg News. The company made painful decisions to adapt quickly and has a stabler footing with fewer inefficiencies, the CEO said. However, he said the company still needs to prove that it can sustain a profit. “The world will be watching to see whether this quarter’s result is just a momentary blip or the start of a long-term trend,” he said. “Our job is not yet done.” In a stark about-face from years of global expansion, the company shuttered operations in India and some European and Latin American markets to trim costs and reach positive cash flows. “As a company, it is our first time going through a crisis of this magnitude,” Li said. “Taking major action early in this crisis — much earlier than most in our industry — was painful, but has put us in a stronger position today.”
Among the rows of vibrators, rubber torsos and leather harnesses at a Chinese sex toys exhibition in Shanghai this weekend, the beginnings of an artificial intelligence (AI)-driven shift in the industry quietly pulsed. China manufactures about 70 percent of the world’s sex toys, most of it the “hardware” on display at the fair — whether that be technicolor tentacled dildos or hyper-realistic personalized silicone dolls. Yet smart toys have been rising in popularity for some time. Many major European and US brands already offer tech-enhanced products that can enable long-distance love, monitor well-being and even bring people one step closer to
Malaysia’s leader yesterday announced plans to build a massive semiconductor design park, aiming to boost the Southeast Asian nation’s role in the global chip industry. A prominent player in the semiconductor industry for decades, Malaysia accounts for an estimated 13 percent of global back-end manufacturing, according to German tech giant Bosch. Now it wants to go beyond production and emerge as a chip design powerhouse too, Malaysian Prime Minister Anwar Ibrahim said. “I am pleased to announce the largest IC (integrated circuit) Design Park in Southeast Asia, that will house world-class anchor tenants and collaborate with global companies such as Arm [Holdings PLC],”
Sales in the retail, and food and beverage sectors last month continued to rise, increasing 0.7 percent and 13.6 percent respectively from a year earlier, setting record highs for the month of March, the Ministry of Economic Affairs said yesterday. Sales in the wholesale sector also grew last month by 4.6 annually, mainly due to the business opportunities for emerging applications related to artificial intelligence (AI) and high-performance computing technologies, the ministry said in a report. The ministry forecast that retail, and food and beverage sales this month would retain their growth momentum as the former would benefit from Tomb Sweeping Day
Thousands of parents in Singapore are furious after a Cordlife Group Ltd (康盛人生集團), a major operator of cord blood banks in Asia, irreparably damaged their children’s samples through improper handling, with some now pursuing legal action. The ongoing case, one of the worst to hit the largely untested industry, has renewed concerns over companies marketing themselves to anxious parents with mostly unproven assurances. This has implications across the region, given Cordlife’s operations in Hong Kong, Macau, Indonesia, the Philippines and India. The parents paid for years to have their infants’ cord blood stored, with the understanding that the stem cells they contained