4 min listen
Turmoil in the banking sector
ratings:
Length:
5 minutes
Released:
Aug 9, 2023
Format:
Podcast episode
Description
Tuesday's session saw a general return to the red for global indices. Italy suffered the most, with the Milan MIB index down more than 2%, battered by its large banking sector. The Italian government had taken everyone by surprise by introducing an exceptional tax on bank profits to capture part of the windfall generated by the ECB's rate hike. Intesa, Unicredit and co. were chopped up into small pieces, but the shockwave brought the entire European banking sector to its knees. Investors reinstated a risk premium on the bank, in case the Italian bombshell gave other executives ideas. The government was later forced to backtrack to avoid a meltdown, with the finance ministry issuing a statement stressing that the tax on net interest income would be capped at 0.1 per cent of assets.
Released:
Aug 9, 2023
Format:
Podcast episode
Titles in the series (100)
2: An unusual period for stock markets July 7, 2022: This is a bizarre in-between period, with investors fearing a recession, but still hoping that central banks will be able to save the day by curbing inflation. by The Market Screener