Risks from wobbly banks not over yet

<p>Kia ora,</p><p>Welcome to Friday’s Economy Watch where we follow the economic events and trends that affect Aotearoa/New Zealand.</p><p>I'm David Chaston and this is the international edition from Interest.co.nz.</p><p>And today we lead with news banking rescue efforts are underway in both the US and Europe.</p><p>But first up, the US labour market never stops signaling its strength. Last week's <a href="https://www.dol.gov/sites/dolgov/files/OPA/newsreleases/ui-claims/20230523.pdf" target="_blank"><strong>jobless claims</strong></a> came in way below estimates, in fact their lowest in months at +217,000. That is almost back to the low year-ago levels. There are now 1.9 mln people on these benefits</p><p>American <a href="https://www.census.gov/construction/nrc/pdf/newresconst.pdf" target="_blank"><strong>building consents and housing starts</strong></a> took an unexpected jump in February, is a moderately bullish sign that few saw coming.</p><p>But the <a href="https://www.philadelphiafed.org/-/media/frbp/assets/surveys-and-data/mbos/2023/bos0323.pdf" target="_blank"><strong>Philly Fed factory survey</strong></a> stayed as weak in March as it was in February, and did not get the expected improvement analysts were looking for. In fact, new order levels fell to their lowest since May 2020.</p><p>There is a private rescue underway for First Republic Bank, a regional bank based in California. Banking majors, led by JPMorgan Chase, are working to ensure it doesn't fail, separate from public regulatory oversight.</p><p>And Branson's space adventure Virgin Orbit said it will "<a href="https://investors.virginorbit.com/sec-filings/all-sec-filings##document-389-0001843388-23-000026-2" target="_blank"><strong>pause operations</strong></a>" in an attempt to shore up its shaky finances. Almost all employees at the satellite launch company will be furloughed.</p><p>Across the Pacific, <a href="https://www.esri.cao.go.jp/jp/stat/juchu/2023/2301juchu.html" target="_blank"><strong>Japan's core machinery orders</strong></a>,