Good morning! Citadel (huge hedge fund) is apparently installing A.I. company-wide to help their employees be more productive.
Today's Top 5 Stories:
The UK economy grew by 0.3% in January, driven by growth in the services sector and the return of children to classrooms after the Christmas break. However, GDP was flat in the three months to January and there are concerns that the economy is still fragile.
ons.gov.uk/economy/grossd…
GDP monthly estimate, UK - Office for National Statistics
Gross domestic product (GDP) measures the value of goods and services produced in the UK. It estimates the size of and growth in the economy.
The FTSE 100 fell by 1.5% in early trading on Friday, following heavy falls in US stocks amid concerns over the health of the banking sector. Lloyds, HSBC, Barclays and NatWest all fell sharply, while insurance stocks also weakened. However, the UK economy grew by 0.3% in January, beating expectations, although analysts warn that the economy remains sluggish and may still experience a shallow recession.
Silicon Valley Bank (SVB) has recently announced that it sold $21 billion worth of its securities holdings for a $1.8 billion loss to shore up its balance sheet, leading to concerns over its financial position, with shares plummeting over 60%. Despite reassurances from SVB's Chief Greg Becker, some have shared concerns about the potential knock-on effect if SVB's clients were to instigate a bank run.
Meta Platforms Inc is exploring the development of a decentralized social network for text updates, which could be a direct competitor to Twitter. The platform would be separate from Facebook and would allow creators and public figures to share timely updates about their interests.
UK house prices are expected to fall by at least 10%, peak to trough, due to higher mortgage borrowing costs and the cost of living crisis, according to John Charcol. While this might make it easier to buy a property, it could be more challenging to sell. Mortgage interest rates are the biggest factor influencing house prices, and a large increase in interest rates could cause house prices to continue to fall for several more months.