END OF DAY REPORT MARCH 20th

HIGHLIGHTS

-	ECB Vice President de Guindos says the liquidity position of banks is robust, banks are resilient, capital is higher than ever, liquidity buffers are of a high quality
-	JPMorgan & Morgan Stanley alongside other large banks are reportedly in talks regarding a capital infusion into First Republic, options include share sale and takeover, according to 
        WSJ
-	Russian President Putin says has looked at China's proposal for the resolution of the Ukrainian conflict; will discuss this proposal
-	ECB President Lagarde reiterates that inflation is projected to remain too high for too long; ECB policy rates remain the primary tool for setting the monetary policy stance
-	Blackrock downgrades credit and prefers shot-term government bonds for income
-	French Government narrowly survives no-confidence vote in parliament

SUMMARY

If we were to include other interest-sensitive assets into a balance sheet and actually Marked-to-market, estimates puts the loss for U.S. banks alone at $2 trillion. Globally, the total unrealized loss might be two to three times that. The fact is that higher rates and losses on securities have significantly weakened the global banking system. 
This is before considering other types of loan losses. Higher rates will affect interest-sensitive sectors such as real estate, non-essential consumer industries, and highly leveraged companies. Default rates are projected to rise globally, further reducing earnings and capital buffers. 

All of this leaves the Federal Reserve and other central banks trapped between the need to keep rates high to control inflation and the pressure to loosen monetary policy to prevent financial instability. Can't wait to see what happens next….