By Jackie Wattles, CNN Virgin Orbit told nearly all of its staff to cease operations until at least next week as the rocket company, founded by British billionaire Richard Branson, works to secure additional funding. Workers were told the news during a meeting with Virgin Orbit CEO Dan Hart on Wednesday afternoon with direction to
Continue Reading By Mark Thompson, CNN The fate of Credit Suisse could be decided in the next 24 hours after a torrid week for Switzerland’s second biggest bank. Local media reported that the Swiss cabinet had gathered for a crisis meeting at 5 p.m. local time (12 p.m. ET) Saturday to discuss the ailing bank’s future, as
Continue Reading By Matt Egan, CNN Nervous bank customers have rushed to the safety of big banks in the wake of a pair of high-profile bank failures that have shaken confidence in the system. Bank of America, Wells Fargo and Citigroup have all experienced a significant increase in deposits since Silicon Valley Bank ran into trouble last
Continue Reading By Anna Bahney, CNN Mortgage rates dropped this week in the wake of several bank failures, reversing course after rising half a percentage point over the past month. But longer-term uncertainty is expected to hamper many homebuyers and keep the cost of buying unaffordable for many. The 30-year fixed-rate mortgage averaged 6.60% in the week
Continue Reading By Matt Egan, CNN First Republic Bank’s credit rating was downgraded on Wednesday by both Fitch Ratings and S&P Global Ratings on concerns that depositors could pull their cash despite the federal intervention. Fitch also placed another regional bank, PacWest Bancorp, on watch for a potential credit ratings downgrade of its own. The moves reflect
Continue Reading By Jordan Valinsky, CNN Business Kellogg has picked a name for its new spinoff companies. They sound a lot like their old names, but with a new spin. The unit that houses its snacks, including Cheez-It and Pringles, plus its international cereal brands and plant-based foods will be called “Kellanova.” And its North American cereal
Continue Reading By Michelle Toh, Danielle Wiener-Bronner and Allison Morrow, CNN The banking meltdown over the past week has left us with more questions than answers. The stunning collapse of two American banks and the loss of investor confidence in Credit Suisse led to wild market swings and put Wall Street on edge. During CNN’s primetime special,
Continue Reading By Jennifer Korn Ryan Reynolds is about to have a nice payday. T-Mobile announced Wednesday that it’s buying budget wireless provider Mint Mobile in a larger deal for up to $1.35 billion. The acquisition of Mint Mobile’s parent Ka’ena Corporation will also include Ultra Mobile, an international calling service, and wireless wholesaler Plum. Reynolds, who
Continue Reading By Nathaniel Meyersohn, CNN “Bailout” became a curse word in American politics following the 2008 global financial crisis, fueling backlash among people who felt the risks and potential consequences of capitalism didn’t apply to big corporations or the wealthy. Now the recent failure of two major banks, Silicon Valley Bank and Signature Bank — and
Continue Reading By Allison Morrow, CNN Credit Suisse, the giant, 167-year-old European bank, was teetering on the brink of failure Wednesday, stoking anxieties about the health of the global financial system. (And frankly giving markets reporters whiplash as sentiment went from “holy-crap-sell” on Monday, to “everyone chill” on Tuesday, and back to freakout mode by Wednesday…) After
Continue Reading By Nathaniel Meyersohn, CNN “Bailout” became a curse word in American politics following the 2008 global financial crisis, fueling backlash among people who felt the risks and potential consequences of capitalism didn’t apply to big corporations or the wealthy. Now the recent failure of two major banks, Silicon Valley Bank and Signature Bank — and
Continue Reading By Alicia Wallace, CNN A key measure of inflation fell dramatically in February, according to the latest Producer Price Index, which tracks what America’s producers get paid for their goods and services. Producer price increases slowed to an annual pace of 4.6% last month, significantly lower than the downwardly revised 5.7% in January, the Labor
Continue Reading By Krystal Hur, CNN The Dow opened the day with a decline of more than 500 points Wednesday as banking fears spread across global markets, though the index pared losses to close the day down about 281 points, or 0.9%. The S&P and Nasdaq slipped roughly 2% and 1.5%, respectively, earlier in the session. The
Continue Reading By Alicia Wallace, CNN Americans pulled back on their spending last month after a surprisingly spendy January. US retail sales fell 0.4% in February from the month before, the Department of Commerce reported on Wednesday. That drop, which was adjusted for seasonal swings, was greater than economists’ expectations of a 0.3% decline, according to Refinitiv
Continue Reading By Alicia Wallace, CNN Americans pulled back on their spending last month after a surprisingly spendy January. US retail sales fell 0.4% in February from the month before, the Department of Commerce reported on Wednesday. That drop, which was adjusted for seasonal swings, was greater than economists’ expectations of a 0.3% decline, according to Refinitiv
Continue Reading By Catherine Thorbecke, CNN Roughly a year-and-a-half after Facebook renamed itself “Meta” and said it would go all-in on building a future version of the internet dubbed the metaverse, the tech giant now says its top investment priority will be advancing artificial intelligence. In a letter to staff Tuesday, CEO Mark Zuckerberg announced plans to
Continue Reading By Oliver Darcy, CNN “A challenging period.” That’s how Mark Zuckerberg described in a memo what the near future will be like for Meta employees after he announced the once-impervious social media company will cut another 10,000 jobs in the months ahead. Zuckerberg, who has been conducting a review of the business as he aims
Continue Reading By Nicole Goodkind, CNN After Silicon Valley Bank and Signature Bank failed, the US government stepped in with an extraordinary measure to rescue customers, some of whom held many millions of dollars in uninsured deposits that otherwise would have been wiped out. But a second, perhaps more significant rescue plan has gotten mostly lost in
Continue Reading By Anna Cooban and Olesya Dmitracova, CNN The UK government will cap energy costs for millions of households for another three months following criticism that bills were set to rise from April despite a recent plunge in wholesale natural gas prices. Finance minister Jeremy Hunt announced Wednesday that he would extend the Energy Price Guarantee
Continue Reading By Hanna Ziady, CNN UK financial markets were spooked again Wednesday — although, unlike last fall, the turmoil was unrelated to a new government budget aimed at reversing Britain’s economic decline. UK finance minister Jeremy Hunt was careful to avoid the drama that engulfed his predecessor’s September “mini” budget as he laid out new spending
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