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The American regional bank First Republicwhich has suffered so much with the bankruptcy of Silicon Valley Bank and had to be ‘rescued’ by a group of US banks, It seems that he is still on the ‘tightrope’and that does not like the market at all. The entity sank in the last session (-50%) after publishing their results and announcing withdrawals of more than 100,000 million in deposits in the first quarter.

This is not good news, acknowledge analysts, who indicate that although deposit outflows have slowed in recent weeks, the bank “continues to bleed and plans to cut its workforce by 25%”.

“New banking fears push markets lower,” writes Russ Mould, chief investment officer at AJ Bell. “First Republic Bank’s latest results have returned to start the engine of market concerntriggering a sell-off across Europe,” he says. “The bank has revealed a sharp decline in deposits, which has led to speculation about the possibility that it will be the next to be acquired“, Add.

First Republic received in mid-March, in the midst of the banking crisis, an injection of 30,000 million dollars by a group of US banks, including Bank of American, Citigroup, JP Morgan and Goldman Sachs. However, doubts about its viability have not disappeared at any time.

While the large entities (Bank of America, JP Morgan, CitigroupWells Fargo, Goldman Sachs…) have generally published better-than-expected first-quarter results -partly benefited by the flow of deposits from these smaller regional banks to the larger ones-, which had calmed the fears, the truth is that it does not like anything that First Republic revives them again. Experts prefer to think, in any case, that First Republic issues are entity specific and that there is no point in making them extensible further. David Chiaverini, an analyst at Wedbush Securities, predicts that First Republic will suffer operating losses over the next two years.

AGAIN THE COVID?

Although it may seem strange to you, the truth is that this Tuesday they explained the pronounced falls experienced by the Hang Seng of Hong Kong (-1.7%) by the increase in concern, again, around the Covid-19.

“Investor sentiment was likely weighed down by renewed concerns given the possibility of another wave of Covid-19 outbreakswrote Charu Chanana, Saxo’s market strategist.

“Sentiment has been weak amid local concern over another possible outbreak of Covid-19 and the country’s uneven economic recovery,” another market report read.

The latest news related to this matter indicates that private doctors in Hong Kong can now order more oral Covid-19 medicines from the government, which has relaxed supply quotas. to deal with the recent increase in infectionsaccording to ‘South China Morning Post’.

GPs had warned that they were running low on the oral antivirals Paxlovid and Molnupiravir for Covid-19 patients as cases increased in the last two weeks.

On Monday night, an administration spokesperson stated that, after reviewing the stock of government-supplied oral Covid-19 treatments, it would make more flexible the number of cycles that private doctors could request each time through the platform of the Electronic Clinical Record Exchange System to deal more effectively with the recent situation.

The number of standard doses of each drug that can be requested per order it has gone from six to ten, effective immediately.