can also include a second bionic extreme 360. just pay a separate fee plus will give you free shipping your entire order to order call one 800 3497597 or go online to buy bionic 60. ♪ welcome to the third hour of "squawk box" here in europe. markets are opening now. welcome to the viewers from the united states joining us this hour it is a big day for markets. we had huge efforts to provide guarantees for deposit holders at silicon valley bank to step in to provide guarantees for deposits here in the uk, big questions before the open as to what would

happen to silicon valley bank uk a former buyer has stepped in. we have send the system is not showing stress the reaction this morning stateside showing futures up strongly the ramifications for the board are not as strong. don't forget, we didn't have the state of declines with the european markets in terms of the rebound trade. it is less as well early on, the benchmark is not picking up territory here. a couple of green patches we will get into. the red continues. we shed 1.3% in the friday trade. we are off 2.2% in the benchmark for the trading week that is roughly half from the u.s. markets the dow down more than 4% and even bigger selling for the nasdaq in that context, we are down, but only just and we are not

picking up the recovery trade this hour. let's look at the green and where that is falling on the chance this morning. at the bottom is oil and gas at at the top is real estate. oil and gas is down .75% saudi aramco numbers over the weekend are big ones for the sector insurance names down .60%. there are concerns around contagion fears from friday. it is a waeaker trade this morning. media stocks and banks is an area we are watching closely a number of banks are trading closely. in a broader basket, there is weakness taking place. one selling off in spain this morning. soc gen and santander with some.. ing in retreat this morning.

household goods are down as well some defensives in the market giving back. industrials tipping sloightly weaker chemicals and retail only just below the flat line along with basic resources. we are seeing moves higher in technology up .30% real estate is gaining at this hour that is important around what is taking place in yield areas of the marketplace because after the events over the weekend, the likes of goldman sachs came out and said no 50 basis point move for the fed at the next meeting. the expectations were coming in the last week and a half the 50 basis points would be on the table. jay powell spelling that out in testimony. after a hot non-farm payroll report, more data out this week. one major bank saying that is not going to happen with what we

have seen. also changing the path as to what happens from here even around 25 basis point moves. with europe, we are watching the ecb and 50 basis points is still on the table by some participants the early action is weaker futures had been improving indicating we would with tilt higher this is a negative reaction we are witnessing ftse 100 is down wein.30% the dax is down by .10%. these markets from friday's session with the dax down 1.3% it was only down 1% for the trading week in contrast to the 4% of the u.s. major indices in that context, we are modestly downbeat we are not seeing a green response across the board as regulators have stepped in to provide stability to the banking sector globally. i think you have seen that from the united states with the

comments there to uk this morning and to what we are seeing in france with the comments the reassurance is not putting risk back on the table 1% down for the italian stock market we talk about risk-on markets. this benefitted most during the rally we witnessed so far this year and in recent months, it has been italian stocks down you see smi pulling back let's take a quick look at u.s. futures. that strength is not carrying to the market open in europe this morning. we were stronger on dow jones industrial average futures you wonder if there is a nod to the early market reaction. 267 on dow it was up more than 300 points at one stage we are seeing a rally anticipated as you can tell. it is slightly concerning we are

not seeing that strength in europe this morning. to the u.s. banks, this is the frankfurt listing of how they may perform later on today it is a key area we are up 2.5% of the german listing of bank of america jpmorgan chase is higher goldman sachs is dragging down the broader dow in session on friday wells fargo is higher by .75%. let's look at the european banks. hsbc is stepping in buying silicon valley bank. it is showing us the right color this morning the rest are trading lower that is in contrast to the early indications that we see upbeat action deutsche bank is hard hit in germany on friday. down .60%. co commerz bank is down here. we are seeing the fears here and

concerns if interest rates go up, what does that mean for the maturity profile for the european lenders we had a special tprogram announced in the united states to manage the bond portfolios. we don't have the same here from the central banks. perhaps some questions around what that could look like and reassessment after what has been a strong trade in banks, but still risk is coming back off the table. let's get too hsbc which flipped into the red it bought silicon valley bank uk for 1 pound in a deal fac facilitated by the government. officials held all-night talks to prevent the lender from falling into solvency. we have sylvia with the rescue come monday morning. walk us through the details.

>> reporter: exactly in the end, it was hsbc uk to announce it bought silicon valley bank uk for 1 pound in that same statement, hsbc made it clear that as of friday, the 10th of march, silicon valley bank uk had deposits of 6.7 billion british pounds according to the finance minister jeremy hunt, the d deposits are protected this is the statement we got before the open. it is important to see the selloff avoided this morning we wanted a different reaction from friday. we know, as well, the uk government was treating this as a top prieority. they wanted to protect the tech industry in the country. they have managed to achieve that for the time being.

the open question this case actually brought up is still yet to be answered, karen. the big problem with the story is essentially what does this mean for central bank policy at this stage, we don't know if central banks will actually decide to slow down the hiking cycle that we have seen so far it will be important to hear from the ecb later this week perhaps more important, to hear from the boe and the fed next week because, as you mentioned in the show, goldman sachs already cut expectation for the fed in terms of rate hike next week from 50 to 25 basis points. we could see that similar sentiment and similar environment also here in the uk when the boe decides at the next policy meeting what it wants to do next. a lot of focus on central banks now and what they will do regarding monetary policy.

for the time being, definitely positive news. hsbc is stepping in and buying silicon valley bank uk >> sylvia, thank you very much i'll take you back to what we are seeing on the markets at this hour. banks have slipped to the bottom down 1.7%. we have the likes of bba and santander down a bit the question is what is the response from the european regulators you have the specialively whichu those with badly managed risk since the financial crisis more recently around the moves of bond prices the central bank making the funding program available to the banks.

coul you could have the loans up to one year and pledge treasury securities and other collateral. this provides a huge safety net for those who may have been hoping to ride out maturity. i was talking about what hsbc had on its balance sheet it had a lot of duration risk. 6 1/2 years on average if you look at this banking system, concerns with the maturity with the banks. when it comes to the smaller lenders, concerns of how deposit holders feel about keeping money in the european banks. what is required to maybe re-price deposits here to try to attract money to stay in the system one of the problems with silicon valley bank is deposit holders can put money in t-bills three-month t-bills. here in europe, you have not seen the same passing on of the cash rate to deposit holders

that may be a problem with bank earnings and margins >> you have so many ways the outflows will hurt the uk is not helping itself in many aspects we could talk about september and being that budget and the budget this week it seems there is always something happening in the uk economy around the budget. really with the likes of the i.r.a. in the united states, that changes flows of money as well the banking system is clearly not helping that segment the tech sector is one to look at and ask yourself how they will get the funding back into the system and on a longer term basis, hsbc acquiring this reputable company as we noted, but the structure in the sector

is not one they had for a long time can they still offer the kind of assistance that these tech startups had from silicon valley bank and will they keep this going for as long as necessary, i suppose, is the big question is the continuation of business going on from here the shift is to hsbc they have taken on the mantle. they feel 1 pound is enough to take on that responsibility. >> you think of hsbc a big mortgage lender and deposit holder do you want them taking on this risk silicon valley bank uk did lend up to technology companies that may not go the distance >> split off the business? >> we are awaiting the details if they can refinance. if you bring the likes of hsbc and you want the deposit holders to stay with the entity you just bought, there needs to be a guarantee there.

that comes with the hsbc name. the other point i would make on the movers today if you look at the board, process exposed to the technology world this is being seen as a win for technology that they don't have to think about it as we he heard f -- we heard from the guest, taking on the risk this is a transfer company which dropped off the boards it was up there. people are rapidly moving funds around puts in focus some things at companies at this point london stock exchange is rallying not surprising >> the futures board pointed to some sense of positivity we wouldn't necessarily see things go down too much. it seems there is the contagion effect here. you have to deal with the early part of the trading picture. it is early and things may change if you look where we are right now on the board, we are facing a bit of negativity.

whether that continues to be the case for the rest of the day and having seen the solutions come through and investors are looking through or trying to find more detail the devil is always in the details. for now, red across the board. >> no kneejerk rebound which you expect on the back of friday selling and steps to shore up the system. coming up on the show, we have more on hsbc's move to step in and take over silicon valley bank uk. we will hear from the letter to the chancellor over the weekend. stay tuned for that conversation why are 93% of sleep number sleepers very satisfied with their bed? maybe it's because you can gently raise your partner's head to help relieve snoring. so you can both stay comfortable all night save $1,200 on the sleep number 360 i10 smart bed. ends monday shipstation saves us so much time it makes it really easy and seamless pick an order print everything you need slap the label on ito the box and it's ready to go

our cost for shipping, were cut in half just like that go to shipstation/tv and get 2 months free

next on behind the series... let me tell you about the greatest roster ever assembled. the monster, the outlaw... and you can't forget about the boss. sometimes- you just want to eat your heroes. the subway series. the greatest menu of all time. there's always a fresh deal on the subway app. like this one! 50% off?! that deal's so good we don't even need an

eight-time all-star to tell you about it. wait what? get it before it's gone on the subway app! market moves to bring you up to speed first republic bank, the u.s. lender, under prior with the silicon valley bank story. despite efforts to stop contagion by the u.s. regulators stepping in with the moves in the uk with hsbc buying silicon

valley bank uk speaking across europe, you see the tech names trading down. a couple of points at this stage. wise is now falling down 1%. it was an early mover. you see it is now in the red at this point there is still significant concerns out in the marketplace about what happens from here joining us now on the set is jean de fougerolles. an early stage vc that banked with silicon valley bank he is here to discuss more jean, you were part of the group of the leaders in uk companies that were writing to the chancellor over the weekend. tell us about the letter you penned >> quite a few activities happening over the weekend from reassuring founders that banked with silicon valley bank and over 100 leading vcs

highlighting to the government how critical they were to the tech infrastructure and future of the uk economy. on top of that, we kind of went to the portfolio companies to get them to highlight the severity of not being able to access deposits on monday morning. trying to influence government to the importance of svb >> to be clear what svb did. it had capital lines of credit vcs like yourself could tap cash immediately and lend out to a startup company and wait until you receive the money from pension funds and other investors that committed money it was a bridge of sorts do you see hsbc doing the same thing as it stepped in to buy silicon valley bank uk >> we use them as a business account to pay suppliers and team that is what a lot of tech companies were doing as well on top of that, there were credit facilities which

ascension partook in i don't know what hsbc's planning to do i suspect they will keep the expertise and products in place and carry on business as usual >> would you want a change in any way? yes, silicon valley bank is ensuring they understand the set and the way things are done in this element as well hsbc not as well versed in this. it may be helpful to have conversations around changing how they do business and how things done at present is it a case we wanted to stay the same and have the similar relationship we had with sv bank >> one lesson learned, they had one bank with silicon valley bank when there was a run on the bank on friday, they had no other

bank account to transfer funds. >> some were forced to keep all banking activities as part of the loan terms with silicon valley bank. >> some were forced to keep 70% of deposits as a result of that. we back businesses that found silicon valley bank to be tech friendly and easy to open a bank account and had good products. there are not big enough companies to have products that was onelesson learned. >> are there enough red flags for you to know where to be as a business your primary system is to invest to know where you put your money as well is significant do you think there are enough red flags for you to make a call in the sense to say we shouldn't just be in one pot we should be diversifying?

obviously the bigger you get as an entity, too >> the tech sector is resilient over covid and last few years with financial problems in the last 12 months as well as the economy. i think they will continue to be resilient and fast moving. ascension had two accounts so we could move around. the product is under a bigger banner and it will give weight to the industry. >> can you talk about the vcs telling portfolio companies that we are in a different credit environment. you need to change what you have been doing growth is fantastic. however, there is a cost it to this that plmessage is key we have the risks and they have not gone away. if you look at the market reaction, the risk hasn't disappeared. does that mean there is more pressure on the startups to

reduce that cash further >> i would say yes over the weekend, i had board meetings with startups there was a bit of talk about cost cutting and other measures to weather the storm i think the takeover of svb slowed that. i think there is a sense it could be difficult few months and to get to the business fundamentals of generating rev revenue. >> 50 basis points is off the table. we have 25 and number of meetings we don't know the path we have questions of the ecb this week. when you look at your portfolio companies, do you think they can weather more interest rate hikes from here? >> um -- what i'm seeing with my portfolio is the good ones are going out and raising money. valuations aren't jumping as they were 18 months ago.

they are raising capital if they have good fundamental business plans and support from investors. obviously, weaker businesses in the market won't be able to raise capital. >> does this change the way you run as an entity now does this change your outlook for the next year or so? considering as well you have to think that something like this, yes, may be stemmed for now, but is this something that could happen in future considering the reliance there is in the market on a bank like sv bank and pushing over to hsbc which has other forms of businesses as well other focus areas, too >> we think technology and technology companies will be the major growth hubs of the future economy. there is a huge amount of value to be had from the businesses. we continue to back the business at the steedeed stage. if you continue to invest, value

has gone down. we think it is a great time to invest in new business as they grow, the macroeconomics situation in six-to-eight years will be different from today there is a focus on revenue generation and cost base >> can i ask about the ip window and takeover we are waiting for the ip window to reopen this year with a large fintech coming to market a lot has changed over weekend does the ip window get altered here do we see a longer runway for these companies coming to market on the other side, do we see more consolidation that these companies won't be as confident and they might take the first offer? >> the silicon valley bank uk was an isolated entity and that has been resolved. in terms of the ip market, that will be quiet in the next 12 months i expect more corporate activity

buying the innovative tech businesses and bringing them under their umbrella and scaling business to the customer base. >> jean, thank you for joining us jean de fougerolles. novartis announced a $11 billion share buyback. it will buy the stock over the next three years and that proves there are other stories happening this morning it will buy a company worth 2.9billion it will gain access to the treatment for type one diabetes. u.s. firm silvergate signed a deal to buy qualtrics and take it private for $12.5 billion it is set to get $7.76 billion from the deal after silvergate and canadian investment board

purchased it at $18.15 per share. porsche came in below e expectation for 2023 revenue it is targeting $40 billion euro for this year and setting a target of 20%. now coming up on the show, we will have the latest as hsbc offers to buy uk arm of silicon valley bank in a deal for 1 pound. stay with us we are back right after this

ah, these bills are crazy. she has no idea she's sitting on a goldmine. well she doesn't know that if she owns a life insurance policy of $100,000 or more she can sell all or part of it to coventry for cash. even a term policy. even a term policy? even a term policy! find out if you're sitting on a goldmine. call coventry direct today at the number on your screen, or visit coventrydirect.com.

hsbc buys silicon valley bank uk unit for 1 pound in a coordinated move with the treasury and bank of england to shore up the financial system. bank stocks sink in early trade despite guarantees from the bank of england that all deposits are safe. u.s. regulators expect to secure all deposits in full from silicon valley bank as another lender is shutdown u.s. futures spike on the news and goldman sachs predicts

the fed no longer lifts rates as they continue with widespread stress in the banking sector european stocks have been trading for an hour so far we are falling despite measures over the weekend and early this morning to try to shore up the banking system we have risk-off move taking place. effectively we saw over the weekend is uninsured d d deposii the uk are guaranteed. there is still a question of silicon valley bank uk on d dep dep deposits, but a sale has taken

place with hsbc and that closed the uncertainty. the risk-off move here in europe we are down 1% keep in mind, we did fall on friday's session over the course the trading week they were more resilient than the u.s. they were down 4%. the extent of selling was only really 1% on the dax the french market down 1.7% for the week in that context, you see a gap in the performance of european indices against the united states early futures gaining stateside, we are down now 1.1% on the market in terms of sectors, banks had been sliding and at the start of the session, they were down. we see selling down to 2% and taking insurance names this is similar to how friday

prog progressed risk-off autos which is down 1.7% every sector now trades red. we had a handful at start in the green. defensives are down. food and drink on down .7.75% we are seeing selling take place. let's switch to the stocks it is in the tech areas. process is one tech area this market at 1.3% pop taking place. you have some of the defensive names gaining gain this is the friday playbook. leonardo in the defense space. in terms of selling, credit suisse has been a death of 1,000 cuts with the execution issues and the banking system lingering. it is falling heavily. 5.4% down. in terms of the insurance names, direct line is falling 4.7%.

virgin money is under pressure this morning i want to take you to u.s. futures. early indication is strong we started out the program a couple hours ago and up 330 points on dow jones industrial average futures. that is trimmed as you can see 176 now at this stage. giving back some of the high range before the market opens this morning the tone is positive that is welcome, but we are still seeing some of the slippage stateside. hsbc has bought silicon valley bank uk for 1 pound in the deal facilitate d by the government all-night talks took place and chan chancellor jeremy hunt announcing the banking system is

safe, sound and well capitalized. siylvia has had this story with us now hsbc and the conversation has shifted around clearly it is a sigh of relief to a lot of the vc firms and tech startups. >> reporter: exactly, arabile. let's not forget this story resurfaces ghosts of the past. we cannot forget 2008. i will ask my colleagues to show you the market action. i want to keep showing you how european banking stocks are trading this morning the initial reaction we're seeing in the market does suggest that perhaps some of the contagion fears have not fully dissipated having said that, citibank said earlier today that it is still overweight on european banks it highlighted the european banks have less deposit concentration compared to

silicon valley bank. it also said that the deposit flows are healthy in europe. it also highlighted european banks remain well capitalized. there are positives here that do highlight the financial sector and banking sector is in a different shape from 2008. having said that, there still seems to be some fears in the markets that perhaps con-- contagion is still a problem here there is a question about what this story means for central bank policy. let's look at details from the deal that we got early this morning before markets opened. hsbc buying silicon valley bank uk for 1 pound the hsbc also said in a statement that as of friday, there were 6 billion british pounds in deposits it is important to keep in mind

that those deposits are protected. that is important for the british government we will see how the story will unfold in the coming hours it is early to fully understand the picture from the markets it is important to also keep in mind that perhaps those contagion fears have not been fully offset despite the deal with hsbc and silicon valley bank uk. >> sylvia, i thought the citi note was fascinating about the depth of the deposit base which is notconcentrated with one sector the hsbc story showed us that the deposit holders can chase better yield when they see it. we had many deposit holders going after three-month t-yields with a better yield. you have not been as aggressive with the deposit rate. that is a yield gap and

potential for some of the deposit holders if they are global investors, to exploit that it poses questions of how sticky the deposit holder money will be in europe. >> reporter: we know that what silicon valley bank was doing in the united states is a common practice looking to essentially park some of the cash deposits in u.s. bond treasuries are common practice let's not forget the u.s. bonds are seen as one of the safest investments. the question is silicon valley bank actually went above its weight and put too much cash deposits on bonds. what this also raises is the question about whether the fed and other central banks will have to slow down the pace of hiking one of the main issues here tis the fed was aggressively hiking and silicon valley bank was not fully adapted to that reality.

of course, what does this mean for other smaller banks invested in other sectors will they find themselves in a similar situation? have they been taking similar approach to what silicon valley bank was doing in the united states we will see how it unfolds there are a lot of questions here to be answered. one main one is for the ecb and bank of england and fed. will they slow down the hiking cycles we have witnessed so far? >> sylvia, the other question is it seems doomed you have the uk budget happening this week it has been a tough couple days for uk chancellor jeremy hunt having to come up with the plan. also to focus on the week ahead. do you think it, perhaps, gives him the opportunity to then make a firmer statement with regard to the solidified liquidity stance of local banks and the stance that the government gives

to tech companies and startups as well? >> reporter: we know that the uk economy is still in a fragile state. if you look at what the imf said in january, the uk economy was seen as the weaker one among the g7 economies there is pressure on the government to deal with that of course, there is the aftermath of the pandemic. we are dealing with high inflation here in the country. of course, that is posing an a lot of questions and pressures on the british government. it will be important to see where jeremy hunt will focus government support in the coming years. what do they want to do next it is important to bear in mind that jeremy hunt has said he wants a boring budget. there is a difference to what happened here with the previous government and the markets did not like the message that liz truss had going forward. this government, led by rishi sunak, wants to be different from that. it is important to see the

government support jeremy hunt will announce. he was clear in addressing the tech startup world is important for the country. they are some of the most promising businesses here. they are keen to help as well. we will see what jeremy hunt will announce. >> thank you very much, sylvia uk chancellor has told uk media that the hsbc takeover of silicon valley bank uk shows the strength of the financial system we are preparing that sound for you. we will have that in just a bit. what jumps out to me is that you still have a wobble taking place in the european banks. you've got bounce back in the technology names that seem to have taken on an extra layer of risk around what was playing out in the financial system. whether they are cut off from the lifelines or it is getting worse after the diabolical year changing the growth models to compensate for the tighter

interest rate environment. you are seeing relief on the names in the market today. just not in the european banks that is interesting. does it set the scene for the wall street trade later on where you have the major banks maybe seeing a bounce back some lenders regionally, maybe not. >> the shaky weakness we thought would be the case for the rest of today, certainly, outside of the help we have gotten for market as you said, that wobbly stance has remained in the market picture although we have seen the solutions come to the floor before markets open as well. it seems like a firmer stance to ensure depositors were shored up and made whole especially what this does is perhaps lays on the difficulties for the remainder of the year in a high interest environment. with all of that at play and

inflation still remaining high, it is unsure where you balance off when you thought to yourself the best backstop to have in the situation like this was the liquidity sense. the amount of liquidity with all of the lenders that doesn't seem to be enough by the looks of it clearly a little the -- little bit more is needed. >> the issue for the fed to step in and provide extra liquidity for some of the banks. the question is what is lurking on balance sheets? i know they are looking at the mortgage lenders and what maturity looks like with the banks. i think they have concerns although there is liquidity facility, it is one year the profile stretches beyond a year you ride it out for 12 months and use some of the extra measures is there a problem after that in

guarantees uninsured deposdeposs how far does that stretch? where is the end point we had rescue with the banks struggling with silicon valley bank at this point there are broader questions that have been uncovered by this and we still have a hazard question. it is not stockholders or bond holders, but deposit holders we had a conversation in europe. deposit holders have to do due diligence where they park their money. spanish banks as well. you need to consider the health of that bank >> and italy that was scary, too. a fragility in that space. we certainly looked at all of it and wondered what would be headed toward in that front. very quickly, let's look at the u.s. futures market. we have come off the highs we thought we would be seeing for that open. certainly still positive one

expected for the u.s. open

the white house, u.s. treasury and an fdic with measures to shore up the banking system with the collapse of silicon valley bank. all depositors will have access to their money starting today. it is on the back of the deposits up to $250,000 would be protected. most of the kwequity and bond holders would not be protected signature bank is closed to the tech and currency space. the federal reserve is opening up additional lending facilities to banks in a statement, president biden said the measures would give the sector oversight rules it need those responsible for the mess will be held to account.

quickly as well. we are still looking at the contagion from silicon valley bank and looking at pre-market trade. first republic bank is down 65%. there were cues outside that lender this past weekend as people tried to withdrawal funds from the collapse. billionaire investor bill ackman says the government has done the right thing find out more on cnbc.com. a quick look at the u.s. banks and frankfurt trade of how they may perform later on. goldman is down 1.25%. the strength we are seeing on the boards here with bank of america .30% higher. wells fargo is trading higher by 3.2% jpmorgan chase flipping south there. worth noting with the stock in europe which hit an all-time low

in trade with credit suisse. the fallout of silicon valley bank is a look at the fed to keep rates on hold at the meeting next week as regulators seek to ensure banks maintain liquidity in the face of any future outflows. goldman expects the fed to hike by 25 in may, june and july.is to 5.25% terminal rate >> we have april with us here to discuss. goldman sachs pulled the 50 basis points off the playbook and it still has it set at 25 moves from here. what do you think? >> it is interesting

we were looking at friday. the market is pricing in more or less a 50/50 chance of the 50 basis point hike people are divided if they do 25 or 50. our expectation is they will do 50 clearly, the news from the fragile part of the banking system may give them pause they are obviously trying to provide liquidity where it is need and lending where it is needed reassuring people with the insurance and beyond that. that may be enough to stabilize things and allow the fed to continue doing what they say they are talking hawkish and continue to behave hawkishly >> it is a debate over the weekend of how far authorities will do to stop contagion and including printing money and providing a safety net now tap a special window over at the fed. if you think of the markets today. first republic with arabile

showed the calls on that contagion risk has not disappeared this morning that is a problem, isn't it? >> they will look carefully at the interconnected possible risks of contagion i have to say this is different from 2008. we don't have a lot of banks with bad loans on their books. we have a situation where they basically have the carry trade they purchased longer dated securities securities which are money good, but obviously have a big mark-to-market loss. if there is enough put in place by central banks to provide that liquidity window, then actually, it is not a situation you expect to see problems throughout the banking sector system aatically i think markets are connected. you will continue to see

volatility as everyone tries to figure out what this means i think if we take a step back, we have a situation where we have far too much inflation and we have pretty much all of the central banks talk about getting it seriously under control this will not stop the path of rises in interest rates. >> should there be different steps taken as well in the banking sector considering what just happened? >> i think every sencentral bank will think what the fed has done setting up a new lending facility to provide breathing space and being more flexible on the discount window. doing all of the things there to make sure that a bank doesn't have trouble because of short-term liquidity issues. clearly they don't want to bail a bank out with bad loans. >> one situation to keep deposit money sticky is to lift interest rates. make it more appealing

that means the interest profile on banks is wrong. the investor community got it wrong. >> it is interesting how long it seems to have taken for banks to pass through the higher interest rates to savers. i think they might -- you might see readjustment of that across banks making sure the savings rate is appealing to keep depositor money in place post-financial crisis, most consumers, with the mainstream bank, particularly the large money center banks will not think they need to run for the hills. it won't help to give them more on the deposit rates >> april, thank you very much for joining us this morning. big day for markets. head of investment specialist at insight investment that is all for the show today. thank you for moving with us on the fast moving pieces this morning and hsbc stepping in to scoop up silicon valley bank uk. we had that story and comments out from france about the safety

of the french banking system plenty more across the channel today. no doubt as the u.s. colleagues step up with programming "squawk box europe" is up. up next is "squawk box" with becky and andrew stay tuned

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. next on behind the series... let me tell you about the greatest roster ever assembled. the monster, the outlaw... and you can't forget about the boss. sometimes- you just want to eat your heroes.

the subway series. the greatest menu of all time.

breaking news this morning regulators sweeping in to contain a financial crisis depositors of silicon valley bank and signature bank protected. futures are higher we have all of the market action and pause for the fed. did the svb collapse put the fed on hold for march? the investors caught in the middle of it all are they breathing a sigh of relief it is monday, marc