FirstFT: SVB collapse hits global markets

The fallout from the collapse of Silicon Valley Bank remains the big story today, with the fire spreading to global markets. Scroll down for a behind-the-scenes look at how Rishi Sunak and other British officials orchestrated the £1 sale of SVB’s UK arm to HSBC.

Outside our continuing coverage of the SVB crisis, we have a scoop on TikTok, which has been accused of mishandling allegations of sexual misconduct and harassment against a senior manager. And in today’s Big Read, we look at the underperformance of the British economy ahead of tomorrow’s Budget.

Here’s what else to keep tabs on today:

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Today’s top news

1. Investors are ripping up forecasts for further interest rate rises and dumping bank stocks around the world following the failure of Silicon Valley Bank. The two-year US Treasury yield, which moves with interest rate expectations, recorded its biggest one-day drop since 1987.

2. British officials raced to orchestrate a sale for SVB’s UK arm, including the prime minister on a long-haul flight to California and the Bank of England’s governor in Switzerland. Here’s how HSBC bought it for £1 at the eleventh hour.

• Related: Across the Atlantic, regulators were preparing a package of emergency measures to quell panic and prevent contagion within 48 hours.

• Opinion: SVB shows the perils of regulators fighting the last war, worrying about credit and liquidity risks rather than interest rates, writes Gillian Tett.

3. EXCLUSIVE: The EU is exploring ways to police how companies invest in production overseas following similar US moves to limit China from acquiring advanced technology. More on why Brussels thinks the rules are necessary.

4. EXCLUSIVE: TikTok has been accused of mishandling sexual harassment allegations against a former senior manager. Steve Ware made inappropriate sexual comments and advances to young female staff members and clients, according to four women who worked with him. Ware has told the FT all allegations against him are false. Read the full story.

5. A decades-long project to supply Australia with nuclear-powered submarines was unveiled yesterday. Australia and Britain will co-build a new submarine under the three-stage Aukus pact, which includes the US.

The Big Read

Jeremy Hunt will present his first spring Budget tomorrow, and despite the chancellor’s noisy refutations, the UK economy is in the doldrums. The IMF has forecast it will be the worst-performing large advanced economy this year. But Britain’s decline relative to other rich nations is rooted in problems both old and new.

We’re also reading . . . 

Chart of the day

About 85 central banks are engaged in projects to create digital currencies, according to figures from the Bank for International Settlements. Yet governments’ enthusiasm is not matched by the citizens they represent, many of whom view central bank digital currencies as an encroachment into their private lives.

Take a break from the news

The colours were muted on the Oscars champagne carpet — but there were still plenty of standout looks at Hollywood’s biggest night.

Before you go, what was the last Beatles hit before the band broke up? Try your hand at 2-down in our crossword puzzle on the FT app.

Additional contributions by Gordon Smith and Emily Goldberg