>> from the heart of where innovation, money, and power collide in silicon valley and beyond, this is bloomberg technology with caroline hyde and ed ludlow. caroline: i'm caroline hyde at bloomberg's world headquarters in new york. ed ludlow is off. we count you down to the fomc rate decision as banks continue to struggle. we assess what it all means. protect your investments.

as we get the c-suite perspective, adobe's ceo. we go live to the software giant's conference in las vegas. plus for coverage on tiktok as its chief prepares to defend the social media company on capitol hill. can he assuage lawmakers demand for a banner a forced sale? first let's go to the calm before the fomc storm. the nasdaq up .2%, treading water as we see what the fomc -- what? -- what jay powell has to say. they are 600 up .2%. notable moves in the u.k., european market still trading ok. inflation ramping up, not dialing back below the 10% level. keep the fed to keep in mind. let's talk about what was once deemed an inflation hedge. more of a risk asset, has been

getting higher as we see the bank crisis unfold come up another 2%. we are now above 28,500 on bitcoin. i want to bring in the one and only kriti gupta on what else is happening in these markets. kriti: we will continue the theme with some of the micro. check out gamestop. remember this name from 2021. the speculative craze. tagging along with your to go scandal. today it comes out with a profit, the profit -- the first profit in two years. the ceo saying they have made real changes and have a profitability outlook that will last the full year. they have not put numbers on that but it is enough to make the stops sort. -- the stocks soar. is it a mean bid, frenzy bid, or a fundamental bid? i would argue all of the above. you are seeing ramifications and other meme stocks.

look at amc. higher by 3% on the day. it was rallying in tandem with some of the other meme stocks. the fundamental effect on the ripple market. nvidia higher on the day given the ai bid. you also have to keep an eye on the one stock that is trading lower, nike. earnings will be a big picture of the macro story, which brings me to the two year yield. the fomc story. even if the fed does nothing today we are seeing a dislocation in the treasury market because that would mean a rate of 4.75. prepare for the volatility which will have ramifications on the dollar, only down .1%. that will change at 2:00. gold in focus as it pulls back from the 2000 level. fueling some of that defensive bid into the technology sector. the s&p 500 higher by .1%.

caroline: great to leave us on that tech focus. kriti gupta, what a rap. we can get the ceo perspective. joining us from the adobe summit conference in las vegas is the adobe ceo. it is great to have you. making important announcements. first, your perspective. you have led this business as ceo since 2007. you know what is like to lead a giant to a financial instability issue, through a bank crisis. what you make of the macro economic environment for adobe right now? >> thank you so much for having me on your show. as you know we just announced our q1 results. for us digital continues to be a massive tailwind because it is reshaping how we live and work and how we are entertained.

adobe has always focused on ensuring we build a company for the long run. you are right. whether it is consumer sentiment or small and medium business creation or larger enterprises, while there is perhaps more scrutiny on the expense, people realize that in order to drive profitable growth technology is one of those areas you have to continue to invest in. maybe we are more fortunate because we have more mission-critical solutions we have a diverse portfolio as it relates to geographic exposure. the company posted strong results. caroline: let's talk about amid this desire to continue to focus on r&d you are announcing new artificial intelligence iterations in your product, particulate firefly. the one silver lining, the one

area of growth we continue to talk about the matter what the macro environment is, is in veta. can you give me an idea what this means in terms of tech and user generated images, what kind of a leap is this in terms of adobe? shantanu: we think is a transformational moment for the company and the industry. what we focus on is how do we unleash creativity for all. it is our assertion and hypothesis everyone has a story to tell and would like to tell that story on different media. i was listening to your show and you were talking about other platforms like tiktok. people fear the blank page or the blank slate. i think generative ai is a great way to have an on-ramp into being able to take your idea and described that in words and then generate an image associated with it. i think people are also focused on the ethical issues associated

with generating these images. i think we have taken a very prudent and correct approach. we think it helps people make our products more accessible, more productive, and more fun. caroline: how are you tackling legal concerns for creators who perhaps do not want their images used? shantanu: that is part of the reason we are starting with the beta. engaging with the community has been a really important aspect of how we introduce this. we have had a site, the most popular site for creative professionals in terms of how they showcase their content and get inspired. adobe has all the multi-decade history of engaging with our customers. in this case we have a very rude -- we were very ruthless about ensuring the content on which our models were trained is content we have license for.

i think other companies have not been as strict or is diligent about ensuring the content they used to train the models, the more data we have to train the models, the better the models are. our approach has been to make sure this is bulletproof in terms of having rights to it and just engaging with the community . we've also talked about how as we continue to have our stocks service, which is a very popular 3d service, that we will compensate the people who are participating in that. it is a thoughtful approach, it is the beginning of the journey, the boast important it is transparency and engagement with our community. caroline: you are thoughtful and you are thinking about ethics and you just mentioned tiktok. i have to go there for a moment. what you make of the business? shantanu: from my perspective, every few years you have multiple platforms. for me when i think about tiktok or about the other platforms is

this insatiable appetite people have for consuming in creating content. i am not as familiar with all of the issues that others are concerned about, but from my perspective and the role adobe can play, it is like how do we allow people to express themselves? that insatiable appetite is not going to go away. caroline: when it comes to authorities analyzing tech businesses like tiktok, there are some authorities analyzing m&a. the doj analyzing your deal. how integral is the figment deal ? will you fight to protect it? shantanu: from our perspective, the strategic rationale for why we are excited about figma is three things. we believe we can accelerate product design which enables new interactive experiences to be

built for the digital media. the second reason is we think we can extent all of our products to do creative collaboration on the web and allow more stakeholders to participate, much like we did with our acquisitions. third, i think there is this new emerging paradigm where the distinction between collaboration, creativity, and productivity. anyone who wants to create a school product rate document wants to engage in both using words in text and images and animation. strategically we think it is a real extension of what we do. the figma business is adjacent for us. there are some questions about what does this mean for our core business? our core business is extremely strong so we are doing this from a position of strength. we are confident about our position in this. the overlap -- we will engage

with the authorities. caroline: would you ever abandon the deal if you had to? shantanu: at this point, given we are confident about the deal terms, we will continue to operate with the authorities. that is what we are focused on. how do we continue to deliver value to customers and demonstrate why this is a good thing for the community, for customers, and another important thing, for the economy. if companies are being created. the u.s. has been the hotbed of entrepreneurship. it is critical there be economic outcomes are appropriate for startups as well. at this point we are focused on continuing to impress upon the authorities why this is good. caroline: adobe ceo, we thank you so much. we will let you get back to your summit. speaking of artificial intelligence, tencent president

played up the company's prospect in international gaming and ai. the cognitive growth multiplier and said tencent will gradually implement ai capabilities. the news as tencent revenue inched 1% higher after quarters of contractions. that is where the 50% of advertising revenue in 2022. coming up, fintech to the rescue. with startups moving to provide emergency funding to companies following the fallout. will discuss all of that and more, like their new travel opportunities with their new ceo -- with their co-ceo. that is next. this is bloomberg. ♪ it's easy to get lost in investment research. introducing j.p. morgan personal advisors. hey david! connect with an advisor to create your personalized plan.

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caroline: wall street leaders and u.s. officials are discussing intervention at first republic bank, discussing the possibility of government banking. this after we learned pac west has beefed up liquidity after deposit exodus from its fed chair banking segment. meanwhile fintech startups have moved to provide emergency funding to companies. they told bloomberg late seen record business from startups that have funds trapped in silicon valley bank. joining us to discuss the macro and innovations of their own, the co-ceo who is not only on boarding in a rapid rate but you are also announcing new product offerings. talk to us as a highly valued startup in this environment that has been looking to serve as finance professionals in particular with your offerings, how have you managed to deal with the rapid uptick in people wanting to onboard? what has the fallout been like?

henrique: thank you so much for having me on the show. it has been one of the craziest weeks of my professional career. week definitely signal our support and hope to have as accessible outcome with the regulators. what happened is since the fallout i think a lot of customers move from wanting to have a relationship with one bank 20 to have multiple relationships. i think brex as another company that is startup friendly and knows the startup market has been one of the most common choices for startups wanting to diversify their clients from some on svb, some on brex and some on the big banks. we have been seeing inflow of deposits and new customers because of that. caroline: i asked this to the pilot ceo, another company

serving startups. you worry about your own consolidation of the types of people you are offering your products to? henrique: even though brex started as startups, we also serve a variety of industries today. we serve media companies and beer companies. we have a pretty diversified industries in our products. because we are not a bank we are not susceptible to bank runs. we are not super worried about the same problems the banks are having because we are not a bank. caroline: let's talk about what you are. let's talk about what the platform is. it is cards, it is expenses management, but it is also travel. this is a new announcement you have got. how hard is it to bring new offerings to the table when

you're also trying to onboard like matt? henrique: think about us as all spend. we have corporate cards that we started and then we went to expense management. our business account products, we can have wires. today we are announcing travel. not only can you book your travel in different websites. on the brex app you can book all of your travel in an easy way and you can have the experience from booking your trip to restaurants and tubers you may need on your business responses. everything is automated. all of the approvals are automated. can keep everyone on budget with our live budget system. a lot of companies are trying to control their travel costs and a lot are saying you should travel , take two stops on the way to san francisco and new york because it is cheaper. we are saying don't do that. give accountability to managers to choose the trips they will have their teams do and keep everyone on budget. caroline: what are you seeing

with your clients? we are thinking of the fed today. we are thinking of financial issues in terms of the conditions that are contracting in many ways. are you seeing that from your client perspective in terms of trimming costs? henrique: absolutely. that is a net positive for our industry. everyone is using technology to figure out how to do more with less. a lot of the ai revolution we are seeing, we announced an ai product a few weeks ago you will be able to ask any questions you would want to and have an ai respond to you, how do i buy this, how on budget, and my spending too much on this? these are all questions that will take up the finance team to do reports that can now be answered by ai. this part of doing more with less is something that will be positive for the technology industry, which was a little bit

bloated over the last few years because of the excess money and i think it will be super positive. a lot of our products are helping companies do that. i mentioned our travel products. caroline: thank you for coming on and telling us your story and what it has been like in the last week or so. brexa ceo. coming up will walk you through everything you need to know before tomorrow's tiktok hearing on capitol hill. this is bloomberg. ♪

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>> to achieve art sales target in 2023. in short strong revenue growth for the keep the improvement of our profitability. caroline: that was the cfo chinese ev maker neo saying they

will be being their target of doubling sales this year. that takes us to today's talking tech. we are sticking with ev's. for taking small steps to unveiling a in the ev business. the automaker will unveil a reporting structure for its company that outlays the profit and the loss of each business line. the sheet will give investors a more complete view of the nascent business, including expenses and revenue. turning to chips. the biden administration unveiling tighter regulations on operations in china. the $50 billion chips and science act will now bar firms that win grants from expanding output in china by 5% for advanced chips or 10% of older technology. the commerce department also outlined other measures including a $100,000 spending cap. sticking with china and the

biden administration, the u.s. is assessing whether silicon valley bank's collapse inflicted more pain on chinese technology startups the government in beijing and chinese companies have disclosed. the biden administration is pulling together data on companies that may have accounts with regional u.s.-backed. the key question is whether there is any risk of contagion in the world's second-largest economy. sipping with chinese company -- sticking with chinese company, the ceo of tiktok will appear before the house tomorrow in order to prevent a band or sale. we go to capitol hill. overall, were you expecting to hear? do you think the ceo can push back on the viewpoint coming from the lawmakers right now? alex: according to his prepared remarks, pushback is what he is trying to do. his remarks are definitive, saying things like bytedance is not an agent of the chinese

government or any other country. he will also say the security plan in concert with oracle is an american plan, storing american user data on american soil by an american company. he is coming in with a definitive tone for his testimony on capitol hill. caroline: overall, has the lobbying been present? is anything we will hear tomorrow actually going to be new in some way? alex: it is interesting you ask that. it is sounding like a lot of the same talking points. the fact he likes to lean into, he will brie. those to the hill tomorrow, talking about the security plan, talking about how but he believes tiktok is doing more to protect young users which will definitely be on the mind of the representatives in the room. these are a lot of points we are familiar with. they are the points they have bring bringing to lawmakers in

closed-door meetings ahead of the hill. honestly when you think about what is a win for him tomorrow. it is almost to do no more damage than the sentiment has already been done. if anything start to ingratiate or humanize tiktok and lay that lined clear that he believes there is no chance the chinese government has any influence on the app. caroline: you think you will reference u.s. social media companies? alex: i think he will, if not by name then by two, saying we are doing more on data protection. saying maybe should be worried about all of us and not just tiktok. caroline: great to have you on from d.c.. check out her work. we have great reporting from her on it stood -- on instagram and tiptop. coming back, the impact of svb on nontraditional founders.

get rid of that dick groat visual when you think about silicon valley. let's check back on -- we see a quarter of a point hike in rates. open dragon in china off by .8%. this is bloomberg. ♪ s find the right investments for your goals. okay, great. j.p. morgan wealth management. you don't have to worry about things like changing tax rates or filing returns. avalarahhh ahhh it's easy to get lost in investment research. introducing j.p. morgan personal advisors. hey david! connect with an advisor to create your personalized plan. let's find the right investments for your goals. okay, great. j.p. morgan wealth management. i screwed up. mhm.

i got us t-mobile home internet. now cell phone users have priority over us. and your marriage survived that? you can almost feel the drag when people walk by with their phones. oh i can't hear you... you're froze-- ladies, please! you put it on airplane mode when you pass our house. i was trying to work. we're workin' it too. yeah! work it girl! woo! i want to hear you say it out loud. well, i could switch us to xfinity. those smiles. that's why i do what i do. that and the paycheck.

>> camping you up to date with news around the world. switzerland's pier 1 bonds are paying the price for the controversial write-down of credit suisse's notes. data compiled by bloomberg showed skills on swiss bank have jumped more than similar bonds issued by european lenders since the wipeout of 17 billion credit suisse notes. in the case of ubs, the largest remaining 18 one issuer, the real premium of similar bonds of the rest of europe has tripled since friday. garbage collectors in paris will

continue to strike through next monday in protest of macron's raise of the retirement age. the streets of the capital have been overflowing with trash containers, some even being lit on fire by protesters. an estimated 9500 tons of trash are still on the city sidewalks with only about 100 garbage trucks in service. the manhattan grand jury that has been meeting regarding donald trump's so-called hush money case was told not to come in today according to insider, who said it is unlikely the jury would meet at all this week though nothing is set in stone. the delay is on the possible historic indictment vote of the former president. global news, 24 hours a day, on air and on bloomberg powered by more than 27 hundred journalists

and analysts in more than 120 countries, i'm mark crumpton, this is bloomberg. caroline: welcome back to bloomberg technology. it is 9:30 on the west coast and 12:30 in new york and 4:30 p.m. in london. >> green on the screen in the european session. this is interesting because traditionally when you have a decision stocks around the world pull out. they are selling off not today. a little more positivity but not a ton of momentum. when you look at the volume on a 30 day average it's down by a lot. a lot of folks are on the sidelines which explains meager gains. the stoxx 600 of .2%. francis where you are seeing the outperform but not a lot. higher by .3%. the dax is stronger in germany.

really saying that, look, even the high inflation data in u.k. isn't going to stump the gains. it's a question of autopilot in those indexes. the ftse is higher by .4% but i wonder how much is a reaction to the yields? yields across the world are down and that is where the mentality in the european session comes to fruition. ahead of the f1 see decision earlier they were down a lot and now you're seeing volatility in the opposite direction with yields higher in the european session. i have to say that what takes the cake is the u.k. to year yield surprise inflation across the atlantic, higher by 23 basis points. how is that for volatility? caroline: inflation is so rabbit across the atlantic and all eyes on the financial and economic world are on what jay powell will be saying today. who will be trying to balance his fight against inflation against a sudden banking crisis.

as part of that there are ongoing concerns about funding for startups, for those who have been hit by the svb collapse, and ongoing concerns on first republic and now pat west, and you might not realize it but all of these people are not tech bros. there are nontraditional founders that aren't necessarily thought of in silicon valley who are affected by the prices. " while the silicon valley ecosystem has plenty of men with bulging egos, there is another group quietly building startups. many of whom were supported by silicon valley bank and first republic bank." joanna, welcome to the program and i'm glad that you got the blue memo. i am interested in this thought leadership. how has business like yours been affected by the last couple of weeks? joanna: it has been a really

stressful experience. it wasn't clear over the weekend whether we would be able to make our payroll the following week. it wasn't clear whether the company would succeed. it was definitely a stressful experience trying to figure out how to get everything secured and continued to keep all of our employees. we have employees all over the country and we wanted to make sure they still have jobs. caroline: you are a women's health startup founded to focus on menopause, perimenopause in particular. it is almost the antithesis of what perhaps we started to think of and got a lot of notoriety during the unfolding of the collapse of svb. we thought about these loud, white, male tech bros on twitter complaining loudly in all caps. how has the conversation gone behind the scenes among women, diverse founders, people of color who felt that this wasn't

a great pr exercise of their industry? joanna: many of them felt very ignored, honestly. you read twitter, the mainstream media, no one was talking about the health care companies and education companies and clean technology companies.no one was talking about female founders. all of the discussion was about this very small group of very verbal outspoken men on twitter who were loudly protesting the fact that their companies would be hurt. the reality is, there are so many more people reflected in silicon valley. there are people who run nonprofits who had money in these banks. none of those people felt heard. there was a lot of sense of, wow, we have tens of thousands of employees around the country doing important things and no one is talking about us. caroline: insult to injury was you were coming off the back of a lot of female-focused events.

it was international women's day the week before and there was talk about diversity and building momentum within the text seen. -- tech scene among vc and tech founders. i wonder if people are banding together to amplify voices rather than you single-handedly putting up op ads at the moment? joanna: i think there is a sense that we need to be a part of the story, part of the narrative. women realize that they need to be a bigger part of the discussion about what's going on in silicon valley. the percentage of women who are funding companies is increasing the percentage of women who are founding companies, and we need to be part of the narrative. we need to be in the mainstream press and not just doing this quietly behind the scenes.we need to be more verbal about what we're doing. there is a sense of a lot of founders that we need to be expressing more about the importance of our companies, and

the importance of our companies to the overall nation because they are making a big impact in all sorts of areas -- including education and health care. we need to make sure that those voices are amplified. caroline: are you worried any of those businesses won't make it at the moment that are solving key issues? joanna: i think the silicon valley bank issues this week are going to make it harder for -- at least in the short term -- for companies to get funded. often when these things happen there is a retrenching to entrepreneurs they are the most confident in, and they are often more traditional entrepreneurs. silicon valley bank and first republic bank it a great job supporting nontraditional entrepreneurs and women, and i hope however those go forward those organizations will continue to be supportive and not just focus on a core group but on expanding the percentage of entrepreneurs in the country. and i hope it is expanded nationwide and not just in the

united states. caroline: we were speaking to a fintech. are these fintechs the banks people have turned to? some of them leaning on the most important banks on the country. are they is open to lending to companies like yours? joanna: yes, they are. there has been an acknowledgment that women are bigger part of the ecosystem and people of color are a bigger part of the ecosystem and they are getting access to capital. that is important. they have great ideas. to make those come to fruition you need access to capital. anything that you can do like the non-traditional funding sources that can enable people to get funding to start these companies come you are able to grow and that is the key to starting a company in silicon valley or anywhere else. getting access to capital to do that. we need to expand the number of people who are able to get access to that caroline: capital. caroline:media organizations

like ourselves care about getting your voice on. media organizations like ourselves train people to make sure that we can get enough new voices coming onto certain programs. i am interested in what you can do other than right in cap locks to hear voices. what is underneath the system happening at the moment that you are galvanized? joanna: it is easy sometimes to write about the loudest people. part of it is encouraging people who may be quietly building very large companies to spend more time on the press will stem often when you are building a company you spend so much time doing that that you are not enough in the spotlight talking about these issues to the national audience. so, probably training people to do that and to be more aware of what's going on in the world. when you start doing a start up you are focused every day. we are spending time every day to make sure that things run. that we do a great job with our

care and we are taking care of these women. you forget to look up and think, i should be thinking about the national press as well. it is important everyone knows how to do that. caroline: thank you for coming and sharing your journey with us. coming up, we will be joined by one of those vcs behind the scenes working amid the fallout to educate policymakers on what was happening in the unfolding banking crisis. in washington, looking at bank stocks, u.s. officials discussing an intervention of first republic bank. we have pat west on the liquidity side. both are down pre-the federal reserve decision. from new york and washington, this is bloomberg. ♪

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caroline: shortly we will get the rate decision from the fed and hear about what jay powell thinks about the ongoing bank crisis. svb's collapse and fall and its impact. we will digest on startups and the vc world at large. we're joined now with what is so fascinating in your role in the last couple of weeks is that you were one of perhaps 50 or so leaders in vc trying to help policymakers understand the ripple effects of what an svb true collapse would have meant. also the support of the depositor. what do you make of government intervention so far? >> i have been very engaged with

policymakers over the last 10 years. i started writing about issues around housing affordability in california 10 years ago as part of the formation of an organization that shepherds about half a dozen pieces of legislation into state law every year. i have a deep bench of expertise and network around engaging with public policy makers. there is a circle of us, 50-100 or more and tech founders who have been communicating for a long time around the implications of our industry with respect to governance and society at large. friday morning when we saw that the fbi see put silicon valley bank into receivership there was the internal work that we were doing in terms of triage in our portfolio and figuring out how to make payroll the next week. at the same time, i was doing a lot more external-facing work

with this group of 50 or so folks in a whatsapp chat room figuring out how to draft memos to policymakers to help them understand the real-world implications. for a startup not only was it the issue of figuring out how to pay a talent and employees the following week, even the level of uncertainty around with the initial dividend was going to be started to make very explicit plans around how they were going to spend their burn and runway over months and years. not having certainty over that really throws a wrench into their ability to provide their team members with the kind of long-term support that they need. getting that message across. caroline: have you had to decide who your winners and losers, dialing back on writing checks at the moment because of the enveloping crisis around us? kim-mai: not at all. we are doing deals. i made an offer last week, in

fact. we are very, very active. for what we needed to do last friday as we went through the portfolio and tried to figure out who banked with whom. if they banked was svb what was their level of exposure and how much were they able to transfer out versus not if they had to make payroll the following week? and then we had to go through the immediate exposure and that was thankfully small. we had to be prepared to be in a position to help our companies pay their employees. we didn't end up having to do that because of the announcement on sunday afternoon, thankfully, but it was incredibly stressful. i got the news that morning. i worked for bloomberg 15 years ago. i had this feeling of this is like the lehman days. this is going to be a lehman weekend. caroline: you are still writing

checks? who do you write checks to? is it generative ai companies? are you able to remain focused on the types of founders that you back? you have 100 75 plus active portfolios from climate to finte ch, you name it. kim-mai: it has always been a generalist seed firm and we have let the best and brightest founders take us to whatever the next trend is. i have been doing a lot of deals in the climate space. our managing partner is increasingly doing generative ai and has a deep history of doing crypto and crypto deals. we do a lot of deals in a lot of different spaces. for me, because of my background , climate has a lot of implications in terms of getting the private sector and private entrepreneurs to innovate and

work with public policymakers to address this enormous problem. caroline: how confident are you that problems like that can be solved at this moment when you have to put together memos for policymakers called cascade anchor failure scenarios? are we in that scenario now, or do you think that we can get back to the job of writing checks and founders building companies? kim-mai: i honestly think that the day-to-day bank stability coverage that you are doing is probably affecting your side more than ours now. the fbi see coming to assure depositors was a really important signal for a lot of founders and investors in the space. the immediate payroll needs and that concern has been assuaged, so we are continuing to do new deals. we are being more proactive about the advice that we are giving in terms of how founders

and companies should diversify, where they are having holdings, and being more thoughtful of where they have access to short-term cash versus their midterm needs. caroline: we all learned a lot about treasury management all of a sudden. great to have some time with you. coming up, all eyes on the all important for decision. we count you down and assess what that means for risk assets. the publicly traded ones and writing checks to the private ones still. we are watching shares of gamestop surging as much as 51% in the biggest move since march 2020 one after reporting a surprise profit on the fourth quarter beating the few analysts that give assessments for this company. that is lifting other meme stock names as well. this is bloomberg. ♪

caroline: the all important for decision is an hour away. what will the fed say about the state of jobs? we will talk about it from the tech sector perspective but layoffs more broadly and what this will mean a mid-risk asset appetite following a bank crisis that seems to be looming. michael mckee is in washington and sonali basak is in

bloomberg. the balancing act from jay powell will be tough. the bank crisis on one side and inflation on the other. michael: the fed doesn't want to mix the two but it's impossible. the chairman is going to talk about what they do on the monetary policy side but they have always believed that monetary policy is in a good tool for banking issues. they want to use the supervisory regulatory powers they have. he will talk about the banking industry in general being in good shape and that the fed is doing whatever it needs to do to keep the system from imploding. they want to separate that from the monetary policy implications of inflation, and the fact that inflation is still their biggest concern. caroline: is the banking sector in good shape? sonali: looking at pack west, you see them disclosing 20% of their deposits were under pressure this year alone. a lot of that was tied to the venture community.

while you have seen first republic have ripple effects going into other banks there is a question about which deposits at what banks are really under pressure. certainly the technology community will ripple effect into other banks as you see with first republic. it is still of alarm and of concern here. how this continues to ripple on is an unknown. you did see pack west form a private sector solution with an entity that was created by apollo stepping in to provide alone. -- provide a loan. apollo is among the potential buyers of silicon valley bank assets. this shows you that not all assets are attractive to every private equity firm. caroline: where's the nasdaq under pressure, 25 basis points baked in? michael: it looks like it. it's about an 80% chance according to futures trading, which isn't certain. but that is the way that the markets lean. caroline: i will let you get

back to preparing for the drop in news. sonali basak, we will thank her. stay with surveillance. coverage starts at 1:30 p.m. new york time. that does it for this edition of bloomberg technology. get well soon. this is bloomberg. ♪ lan. let's find the right investments for your goals. okay, great. j.p. morgan wealth management. it's easy to get lost in investment research. introducing j.p. morgan personal advisors. hey david! connect with an advisor to create your personalized plan. let's find the right investments for your goals. okay, great. j.p. morgan wealth management. so many people are overweight now and asking themselves,

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>> happy fed day. 25 basis points is the market consensus but part of wall street are warning about a pause. we will break it down. i am pretty grouped up. bloomberg markets starts now. kriti: let's dive into market action because green on the screen when you look at the equity market. the s&p 500 turned around. classic ahead of the federal reserve. all the action is in the bond market. at 414 on the two year yield. even if there is a pause