let s now get down to business and the drama that let s now get down to business and the drama that has let s now get down to business and the drama that has been unfolding over the weekend in switzerland is dominating once again. they ve had fraught negotiations as the authorities, the central bank and leaders of two of its biggest banks tried to reach a deal to prevent another damaging financial crisis. late on sunday it was announced. the troubled bank credit suisse has been taken over by its rival ubs in a government backed rescue worth over $3.1 billion. that s less than half the value of credit suisse at the close of trade on friday. the deal s been widely welcomed, including by the bank of england, the european central bank and in the us. switzerland s central bank wanted to prioritise financial stability and protect the swiss economy. here s the chief executive of ubs. translation: it means we bring back stability translation: it means we bring back stability and
with ministers making sure it goes right to the top of the agenda, whistleblowing, especially as we look at the fight against economic crimes, problems in our hospitals, stopping the child abuse we have been played with and have seen around the world.- seen around the world. thank ou for seen around the world. thank you for getting seen around the world. thank you for getting up seen around the world. thank you for getting up so - seen around the world. thank you for getting up so early - seen around the world. thank| you for getting up so early and being on the programme. let remind you of financial markets in asia. we cannot show you numbers right now but the main market injapan is down by 1.15%. i willjust look at hong kong, down to .8%. that is a sentiment across the board. in europe we are waiting for markets to open in two hours and five minutes. 2.8%. 0nline we have analysis of the
valley and signature bank, an emergency $30 billion web round fourfirst republic emergency $30 billion web round four first republic bank. why did these banks get in trouble? the reason are different but the main reason is this, global interest rates, these are us interest rates, these are us interest rates, these are us interest rates, after many years have been close to zero, they have rocketed as countries have tried to bring down inflation caused mainly by higher energy prices as russian energy was shut off or sign. that sudden change has hit the value of even some of the safest investments the banks keep their money on. the big question is are we back to 2008, is this a rerun of the financial crisis? this is precisely what the authorities are trying to avert. are trying to avert. that is simon jack are trying to avert. that is simon jack they re - are trying to avert. that is simon jack they re giving l are trying to avert. that is i simon jack they re giving us are trying to a
europe this morning? i feel mothers will open across europe this morning?- feel mothers will open across europe this morning? i think it is actually europe this morning? i think it is actually quite europe this morning? i think it is actually quite a europe this morning? i think it is actually quite a good - europe this morning? i think it is actually quite a good idea. l is actually quite a good idea. we don t know yet, so we will see how it actually works. but it is what needs to be taken now, markets are, for different reasons to 2008, they are in effect at the moment and they re not quite sure what is going to happen next and they need that sort of support, someone to say don t panic, to say there is a mechanism here, banks are still perfectly strong and you can have access to support dollars when you need them. that is exactly what people want to hear now, that is what banks need to have, now we have to sever was, there is no reason it shouldn t do. we appreciate no reason
market reaction here in asia, investors are not convinced and thatis investors are not convinced and that is despite the take over deal and despite all the statements from central banks. markets are mostly done in the region which signalled some anxiety and that is despite regulators in major financial centres in asia, singapore, hong kong, coming up with separate statements and saying although there is a credit suisse presents the impact from this crisis and the impact from this crisis and the impact from this deal will not be felt, will not be significant, leading the markets down in asia are banking stocks, a reminder of that prior to this credit suisse take over witsel two banks fail in the united states, although these are very different situation there is a common thread here, there are rapidly rising interest rates putting huge pressure on global financial systems and investors are left wondering what the next crisis, what the next challenge will look like and will authorities b