Europe's banks sucked into global rout

High rates reality hits home.

Hello Silicon Valley Bank scrambles to reassure clients after a 60% stock wipe-out, eight are killed in a shooting in Germany, and Ukraine says its Bakhmut battle is pinning down Russia's best units   by Linda Noakes   Business & Markets The Silicon Valley Bank logo and a stock graph are seen in this illustration taken March 10, 2023. REUTERS/Dado Ruvic European bank shares tumbled in the wake of a dramatic sell-off in U.S. bank stocks amid spreading jitters about the sector's vulnerability to the rising cost of money. The global rout was prompted by Silicon Valley Bank, a major banking partner for the U.S. tech sector, being forced to raise fresh capital. An explosion in trading in a type of equity derivative security in recent months has prompted Wall Street players and a major clearing house to examine the potential risks it poses. So-called zero day to expiry options offer retail and institutional traders a relatively cheap, though high-risk, way to bet on intra-day swings in stock prices.  U.S. job growth likely slowed to a still-solid pace in February, with the unemployment rate expected to hold at a more than five- decade low, which could see the Federal Reserve raising interest rates for longer and to a higher level to tame inflation.  General Motors said it was offering buyouts for most of its salaried employees and expects to take a pre-tax charge of up to $1.5 billion to cover the costs. The announcement comes as layoffs by U.S. companies in the past two months touch their highest since 2009. It's crunch time at Tesla, where Elon Musk is looking to crack the code for making better, cheaper batteries. The electric-vehicle maker is recruiting Chinese and Korean materials suppliers to help lower the cost and boost the energy of its newest battery cells, even as the company struggles with battery-related performance and production issues. New rules in Europe to crack down on greenwashing are not making it easier to spot genuine environmentally-friendly funds as asset managers continue to apply different standards for what constitutes sustainable investing.  Special Report Last July, more than 20 children were admitted to the Paediatric Emergency Unit of the Edward Francis Small Teaching Hospital in Gambia with kidney failure. Many received dialysis, the usual treatment.   Nearly all died.   Read our special report on how doctors fought to get a toxic Indian cough syrup banned. World News A Ukrainian serviceman hides in a trench near the frontline town of Bakhmut, Donetsk region, March 8, 2023. REUTERS/Lisi Niesner  Ukraine has decided to fight on in the ruined city of Bakhmut because the battle there is pinning down Russia's best units and degrading them ahead of a planned Ukrainian spring counter-offensive, an aide to President Volodymyr Zelenskiy said. Here's what you need to know about the conflict right now. A coup attempt, bomb hoaxes, internet hacks, fake conscription call-ups, mass protests: Moldova says it's had them all in the past year. This small European country, a former Soviet republic, is a unique geopolitical cauldron. Eight people were killed in a shooting at a Jehovah's Witness place of worship in the German city of Hamburg and the gunman was among the dead, police said. Xi Jinping secured a precedent-breaking third term as president of China during a parliamentary session in which he tightened his control of the world's second-largest economy as it emerges from a COVID slump and diplomatic challenges mount. Suspected drug cartel members handed over five purported henchmen as a would-be apology for the abduction of four Americans in the border city of Matamoros, according to media and a source familiar with the investigation. US News Florida Governor Ron DeSantis poses for a selfie after speaking as part of his Florida Blueprint tour in Pinellas Park, March 8, 2023. REUTERS/Scott Audette  Florida Governor Ron DeSantis will make his first trip to the early nominating state of Iowa today as he tests the waters for a presidential bid, only days before fellow Republican and former President Donald Trump is slated to campaign there. President Joe Biden unveiled plans for government spending and higher taxes on the wealthy, choosing the swing state of Pennsylvania to reveal his playbook for an expected 2024 re-election bid. A newly formed Pacific storm swept into California as forecasters warned of flooding from heavy downpours expected to drench much of the state, including mountain areas still blanketed in snow from recent blizzards. Richard 'Alex' Murdaugh, the South Carolina lawyer convicted last week of murdering his wife and son, appealed his conviction and life sentence, according to court records. Organizers of Sunday's 95th Academy Awards are preparing for the unexpected after Will Smith's infamous slap of Chris Rock convulsed Hollywood's biggest awards ceremony last year. Photographer Bryan Snyder spoke to our World News Podcast about capturing the viral moment.   And finally A selection of some of our top photography from around the world this week. Slideshow: Photos of the week Video: Harriet Tubman monument unveiled in New Jersey Dwarf elephants? Giant rats? 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