Printing awakens hope | Credit Suisse has problems | What will the week bring?

Bank of England delayed the beginning of the quantitative tightening process and announced an intervention purchase of long-term bonds. The aim of these actions was to lower profitability, saving UK funds from panic selling off some assets in order to increase the level of collateral for interest rate derivatives. As a result, the British pound, which was under strong seller's pressure a week ago, is now correcting the recent declines. Meanwhile, market participants are turning more and more anxiously to Credit Suisse, which has recorded disastrous operating profit and net profit margins over the past three quarters. The bank's problems are the aftermath of the collapse of the Archeos Capital fund in March 2021. As a result, Credit Suisse lost around US $ 5 billion, which was around half of the institution's capitalization at the time. Due to the continuing low interest rates in Western Europe and the deteriorating quality of loan portfolios, Credit Suisse may decide to terminate its Latin American operations and lay off some employees in order to improve its profitability. At the same time, poor market sentiment can paradoxically help rebound. The sentiment index sends a contrarian buy signal, but it should be remembered that a possible correction in the charts does not necessarily mean the end of the bear market. 

Credit Suisse going bankrupt?

Meanwhile, market participants are turning more and more anxiously to Credit Suisse, which has recorded disastrous operating profit and net profit margins over the past three quarters. The bank's problems are the aftermath of the collapse of the Archeos Capital fund in March 2021. As a result, Credit Suisse lost around US $ 5 billion, which was around half of the institution's capitalization at the time. Due to the continuing low interest rates in Western Europe and the deteriorating quality of loan portfolios, Credit Suisse may decide to terminate its Latin American operations and lay off some employees in order to improve its profitability. At the same time, poor market sentiment can paradoxically help rebound. The sentiment index sends a contrarian buy signal, but it should be remembered that a possible correction in the charts does not necessarily mean the end of the bear market.

We invite you to a webinar with the Chief Economist XTB Przemysław Kwiecień, PhD, in which he will focus on the key topic of the last few days - reprinting awakens hope!

In today's video:

• What did the Bank of England actually do? 
• Which currencies are expensive and which ones are expensive?
• Is Credit Suisse the second Lehman Brothers? 

WATCH ON-LINE

In addition, due to the very dynamic situation in the world, additional ones will be made available raports Video on the impact of war, pandemic and economic crisis on the global economy.

About the host

Dr Przemysław Kwiecień - Chief economist X-Trade Brokers. Doctor of Economics at the University of Warsaw, graduate of the University of Warsaw and London Metropolitan University (MSc). Holder of the prestigious CFA certificate. He has been working for XTB since 2007, previously he gained experience as an advisor to the Minister of Finance, Mirosław Gronicki, and an economist at Bank Millennium. At XTB, he manages the Analysis Department.

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