>> i boughti] the stock and sol it, bunge.çó i think it trades between 90 and 100. >> joe? >>w3 melissa, a lot of sugarjfñ cravingsçólp during this market volatility. hershey going to an all-timejf high. >>x:ñxdrob? í gilead. w■ñd just added it this week. >> "the exchange" begins right ♪ ♪ >> thank you,i] melissa.çó hi, everybody. i'm kelly evans. we'll continue to follow shares of deutsche bank, droppingñr as much as2½%.fáfá all that after the collapse ofi credit suisse and another round of fed rate hikes. look at the markets, shrugging it out. the dow up 20, the s&p up 1. onrto weekly ñéains. and the dññprj trying to snap a

two-week losing streak. the s&p and nasdaq going for a third positive weekçó in four. you myg crisis? but perhaps their outperformance is reflective of yields. that's the case for the ten year and two year. look at the levels for the ten-year. 3.37. the carryw3 regional bank fáetf higher, as well. first republic is down by 1%, an area to keep an eye on.fá st. louis fede1e1 chair james bullard said the contaugion ris is çóoverdone. and janet yellen is calling aok meeting with the oversight coun financial conditions clearly tightening in response to all of this, no mat=ñwhat happens to the banks from here. we'll look at the fallout ñiacrs auto, energy and crypto.e1çó but let'sçó begin with whether

it's the right call for global central banks to keepçó hiking interest rates. joiningi] me for that is barry, welcome tolp you. gillian, we never like to see you, because it always mean there is's big problems. there should be a gillianht■ indicator. lovely for you to join us. we appreciate xdinx as well. and our very own steve liesman yú>o round it out. barry, you're kindw3 of more c just made a policy error here. >> right.ko■okv yeah,xd i think weçó found out the celestial star for the banking systemxd is. in ñressence,lp we hite1 that ln september when the fed's remittances to the treasury afugr 13 years ended. in other words, the fed's negatively with the cost they werexd carrying out, and t(rese was higher than the yield they were getting on the portfolio. in 2021,÷d we think about what d

occurred, the fedñr bought $1 trillion worth of treasuries. so did the coms%t(rp& banking system.çó the fed bought $500 billion of mortgage backed+■ securities, s did the banking system. so as the banking system reached its point,lp and we discussed ts before the entire tightening )0zq■e1 toko■ t similarly to how theyñi eased, meaning much morew3 active qe, r qt, excuse qme,e1ñr andxd more rate hikes, so thatt( they didn whatñilp they call maturity transformation or the basic business. >>e:÷kit's notc clear they coul thatñ&1 much of qt. when they didok it in 2019, the did ite1 in 2023, we seetx9-%9íc problems.%jf a lot and not very much in selling. but i think at the time, you know, if you think about where

rates were, what thee1q appetit for treasury was, there was little bank lending system, they probably could have been much moreçó active in thei qt than they were. but that notwithstanding, the bottom line is we reached the breaking point in terms of policy for what the banking system can withstand. >> yet theyi] kept going. >> and that is añi mistake. i'll add another important point that we're witnessing right now, which is thefá implicit guarant does not work.ok and itq doesn't work for the sae reason if you go back to 2008, and yout( really think about wh the sequence of eventsing withñi rule of law é@■framework. washington mutual goes down,u■ whole company debt resolved at a higher price, and not illegal or untoward was g then the fed takes over and decides which ppb,m■ of theñrxd capital structure win and lose.(

certainly, the decision to not bail out lehmannf but then the 1fpcreditors, through the healt care plan, got higher çóe1payou than did the bondçóxd holders. it made the whole capital structure uninvestable. so consider that xdnow, fásure, silicon■i valley 'ñ[■ a bailoutd theu■ next fe"'y banks are likeo get a bailout. they covered the non-insured deposit, but what about a crypto firm? we already found out whx happened there. what ifi] a bigxd texas bank go down? what would the politicali] pressure be there? more. >> they can't spell itñiko■ out. it needs to be a blanket guarantee which would require an act of congress. you can't have policymaázuje1 decide who lives or dies. that's how weñi wentjf down.:p)á

ultimately, it was a political decision. >> gillian, ie1 wanted to start with barry so people don't get too obsessed with deutsche bank. we all know thise1 isn't rehsv about deutsche bank. it's sort of about credit suisse, and it will be about others.# but it's about the contagion risk, at least5a■ that's how i ■ it. maybe you see it differently. >> ó3l,i] actually, i happen to be in london right now. ormally based ina5■ new york. the moodñr inc london is pretty nervousxd right now, givenxd th swing for the pricing of deutsche bank. and when you get the premierxd a country coming ou@i andxdñr s everythingq isw3 fine, don't pa, y cause people to get very nervous indeed. moment fori]t( banks when therea oing on.i] so certainly people areok watchg deutsche bank closely. there isfáfá a level of about w

jz has moved so fastxd in the last 48 hours. news, andé@■ the cdf market is y liquid, so it's possible that there is something causing thisi overreaction. but the level of nerves is very high. and iw3 just strongly disagree,ñ barry, in terms of what the fed because the reason we are in ha massive policyjf mista+#■ about far too much quantitative easing, far too much free money. and xdessentially, thelp system beenñr riddled withr that is why you now have the financial system essentiallyçó based around añrxdfb interest will stay low forever. it is insane.fá svb, for example, were betting the!u■ house onqáu rates coming down quickly.>ehñ+■ other banks and other smartçó ay the future was going.

but theht■ fed itself, and the other centrb■ banks, encouraged this copacenylpt( for years.lp if the fed blinksñi given the inflation numbers andçó didn'ttt on the hiking rates, you're going +■ replay the whole cycle. if people like barry arexde1 wod about the health of banks, frankly, thei]ñm%■ should just extendt( deposit insurancejf2# temporarily anj( ask congress fr permission to do it rightxd nowi >> steve, what did we just learn >> steve, what did we just learn jwá$pá's happening there?e1lp >> i justt( want to maybe engag gillian on this idea that somehow what's6z■ happening rig now is thet( inevitable result añie5=i1%qe■ play that has to d qplith keeping rates soçó low fo long.ñze% you have thist(xd situation whe perhaps this time arounde1 in t wakee1 of the qpandemic, the fe

keptw3 rates tooq low for too ì% but that doesn'txd goqá backe1 changebhat happenede1 previousl when the fed kept rates low,ñr d inflation was below target for a long period of time. i just feel like there's a little bit of thisçói] idea, of this is what happens when you mess with mother nature. i'm not sure that's the case. ñ situation iflp rates went from to 10%,i] ast( they went from 0 5%. on the rate hike thing, kelly, i'm not sure it matters, because and the fed walk arm in arm and see something coming and move together. there's times when theñi fed ma go down a certain road andt(rth other guy says you can go there but i'm not going with you. if you look at what's happened to the fed funds market ñrqtoda we have this fed market gap up extraordinary. it's 10lp basis pointsxd whereq

fed has forecast it will go yeaq end. ea=%9qm■i] lower than that righw in the pricing. eventually. 5a■ economic reality that is very different from what the fed is . pricing. i'm not sure the% quarter5a■5a■ did on wednesday, matters a whole lot, because the market is almost totallyxdok ignoredñr it. >> look at that chart. we now have a chart of the fed/market gap.xd 1 point, two points. gillian, will you respond to that? >> yeah, i would say that i agree with steve in the sense that at the beginning of qe, i wasñi supportive. what hase1 really concerned me thexd degree to which complacen about the outlook has become baked in. i think the fed could have and should have spoken up much more about telling the market theyxd need to prepare for -!k$ higher rates. yes,q i do think it's time for

the 5a■investors, foru■i]ht■ pr equity, venture capitalists, the entire systemñii] to wake up th this is not normal and adjust to something that is moreñiñi sustainable. >> if i may -- >> just quickly.q very short, barry. nobody ever promised you the postxd doddçóçó frank world was to be a rose garden, that banks weren't going to fail. the wake of the pandemic. you could make an argumenti] thá supervision, except i the case of a couple of banks, was not too shabby. that the capital levels are not too bad. you do not have an issue with xd on the books of thexd banks. it's a maturityu■ issue at faul here. so i'm not sureñi -- i'm hoping that this ends up contained.

right çónow, lejg( not make mor of it than it is.xd bank failures happen, especially when regime changes happen. >> gillian?çó >> steve, i think part of the problem is, t[z many regulators have beenq fighting the last wap andok focused oni] credit risk. ixdçó completely çóagree, but c risks will become an issue the next couple of yeodm9ñ what people were note1 focusingn is interest rate risks. it's everything from the fact that under the obama regime, government bonds arei] zero weighted.cko■xd nobody talked about thist( in a way that laid it out clearly.x that is ( cf1 o we have been fighting the last war too much. >> barry?t( >> i just have to say,i] gillia

somehow corneredq me into being one of those easy money people, which i am thet( furthest thing from. part of what happened in 2021 was also a big regulatory decision. seniua democrats"n■5a■fá calledd asked them to end the exemption for cash in treasury securities critical of the ñr2021 action. i thought that the pandemic was an inflationary shot.5t) ári wa. steve and kelly know that i'm the furthest thing from an easy money xxájjyxd >> before weçó get you go here, "uz the u.s., what would you tell investors over the weekend to be on the weeks to come? >> fridays are a bad day in

banking, they really are.lpe1 we're asking people ife1 they the weekend, and we have the."■ german premier come out and say categorically, there's no reason to be concerned about deutsche bank. the reality is, what'sa5■ happeg right now is a bit like a strong wind blowing a house that's got leaky rooffá in a rainstorm.au■- everything seems fine until everyone scrutinizes the financial system, and deutsche bank hasfápa]em■ been on peopleq radars.dz"érá's got a lot of is theñi derivatives. so people are justxd scrutinizi the landscape and trying to work out where to panicok next. >> tf!juáu so much for your appreciate it. steve, thank you, as well.t( barry, stick around.xd 9■ jay powell's press conference he said it's'c■ too n to tell howt(çó the banking strs would affect credit in the u.s.

economy. he did say it would likely be a drag onxd economic growth. what should corporate america be doingxd right now? let's ask thexd president and c of the board. steve, i would like to know what kind having that can tell us what's happening on the front the economy. >> despite whatt(e1 you think sd happen with the fed, the possibility is interest rates could go higher. the credit out there will be less, aslp banks become more conservative. that means that corporations also need to becomeó[■ conservative. i was running office depot during thee1 financial crisis. the bank!úme■ how is that going me? bam, credit is dried up. the rating agencies do things retroq actively.ñiñri] sometimes theyi] do things witht a lotçó of information. they downgraded sectorsjf and people lost their funding.

you sawxdxdw3 hundreds of bankruptcies. the ceos of america today need to be looking at their baíalce sheets and becoming more fáe1 conservativ#f■ raising cash, ■fá ervativ#f■ raising cash, know. and you can't take the risk, risk if you run out oflpfá liquidity. that's theçó keyu■u■ thing here. ceos are looking at liquidity and the possibility that thexd ■ could go to 6z■6%.ñr whether or not we think they should, it could happen, soe1 companies need tofá bucklea5■ d and to battenñr the hatches on their balance sheet. >> and barry,ñi where would youe most interested in having exposure? what parts of the market right no(ehr(t&háhp rt . the title of my weekly note is the idea is, if you look at the 1pqsp&li] business sector, fore )h @r(t&háhp &hc% think.t( the bls/w model estimation of

small businesses is notorious they estimated sincexd 5a■septe last five months, that small business employment has gone up by t(400,000 t(çójobs. thefá n].re■nb■ constructed ñray has fiveu■ consecutive months o contraction, and a downxdwardñiv trajectory.ñr so smallñi businme2you hit them with ae1t)edit supply qshock,q whichw3 we were already strugglg clearly, to the other guest's ñ the supply of credit evaporate, saying small business in general is goingfá to be hit by this. 1zwhat was looking we could have açó secular cap x boom as we tp■çrebuild our capi

but business confidence is another negative thing here.u■ld this is what i think the fed is missing. ñ every week at the data to see what happens to that credit creation episode. but there is a real serious risk here that rob and eric both side it, whichxd is try to separate macro policy from monetary policy is an exercise in futility. you're supposed t.p focus on rik management, and that's whergñ w have gone awry. >> steve, this ise1 why it'su■ frustrating not to hear thisu■ morew/í sometimes from powell o the other fed members.zv■ç+ do you think he's missing the macro economic reality that we're heading into? >> you don't know. i mean, this is the thing.

i grow on the small business xd side, but the finalw3ok point ie consumer, and the consumer confidence could come down dramatically. we're a consumer driven economyd that's really important. when the coste1 of÷d debt goes for the consumerxd credit card debt, mortgage debt. when the cost of leasing and e1 com]■á dt gdp. going to stop untilt( we hit 2%3 inflation. the forecast is that's notq goig to happenu?hu'til the end of 20( i think we have a long way to go here. they start unwinding.ñr we're a long way away from and so back toñi consumers will batten down the5a■ chatches, bu ceos need to get far more businesses will be hurt here. businesses will be hurt here. thanks for joining us.ñi&hc% when are you moving back from

colorado, by the way? the pandemic is over. >> you do know the tax structure infá colorado compared to new jersey, xdright? >> new jersey needs your dollars. coming e1up,r>qa÷ è1rs auto loans be thelp newq canary the coal mine? shares of coinbase are down 10% this week afterxdfá potential5a as we head to break, here is a look at markets. the dow recovering from a 300q point loss. the nasdaq has turned negative. the ten-year yield at 3.36. back after this.e1 (vo) this is more than just a building. it's billion-dollar views. perfectly located. an inspiration. and enough space to start an empire. loopnet. the most popular place to find a space.

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welcome back toe1fá thr(t&h& exchange."çóhc% the delinquency@ it's not just financing that's being impacted. the manufacturers them selves are feeling the pain-r the s&p auto component sectorlp down 6%t( since svb's collapse r joining us issv4 an equity anal at wells fargo.t;/s colin, connect some of these dots for us. >> i think there's twoq factors here. one there is açó slight, direct impact from the svb situation, the pin!u■ codes of the autoñi companies are under pressure, andfá that's a significant risì% that the cost of theñ)h#unding á go up. i thinke1 the biggerxd piece isk the macro concernsçó hereçó cou drive lendingñi spreads upw3 a and that's going to put what's already, inú■úyçóñi opinion, significant pressure with rising interest rates. we're going to see more pressure

on the vehicle pricing. customers shop for their e1 customers shop for their e1 payment, and /h$igher rates because they'reok taking higher risk spread, that meansqó lot of ■ auto companies. that'sxd been a huge driver ove the last three t(years. ifj8juáu look, it's like $17 billion since covid andrsome of that will unwind as we goñi through the year. >> i mean, you'rexd not sort of pulling any punches here. you have an underweightv so you have described the characteristics that hav=qi=u■ worried about autos a little more broadly. but what is it in particular that you think will be a catalyst here for these stocks? have a lot of expensese1 they'r trying to ramp up the evs and all the rest of it. how much more of ae1 head wind will this be?q >> i think pricing is going to unwind. that's very likely. we@$(ave never had a supply situation like this before, but as supply recovers,çrrici,oñ wil

start toq normalize.q we have already seen some9■ sig that pricing is creeping up. head wind. this mor on the uaw contractqñi coming un september. inflatj■ we are expecting a 10% wage increase. so that's meaningful. that could be $1 billion in addedñi costs for gm and ford nt year. so something that i don't think !ujye1 i think that contract will be very high chance ofe1 a strike risk. we saw that in 2019. when you are looking fore1 a bi wage increase, you have very likely new leadership at the ûñ]9ñ veryt( likelyxde1 a chance we'í% some form of strike in the fall. on top of that, on a long-term basis, you mentioned electric vehicles.d thexd economics there are very, very challenging. yesterday, ford was talking contribution today. they expectt( it to be betterxd

the end of the year, but it's negative when everyxd car you sl loses a bit of money. >> we remember that period in 2005 where we talked about cds. remember whenñr it was ford and gm?w3 arket has this memory that says theseñi events may have nothing to do withñi eh other, and yet you don't like tf see these twot( majortñ■automak goingçó through any period of financial tightening. sot( all of that qñisaid, you a overweight on some names. where do you still see opportunity and whyu■ don't you thinkñrt be as bad as what we went through in the financial crisisp >> yeah, where i do see opportunity is pricingr down significantly, but i think volume comes up. a lot of people have been up demand. cars, so we never had any fullx recovery post covid in the auto

sector. that's great newst( for the suppliers. borg warner, they're becoming a e-power train leader. that will be a growth opportunity for e1them. and just like all the suppliers, production isq up, ó.txú(ales wl be up. that yâ■ be ae1 key driver. >> that's a great point.d (áj)p today. appreciate it. >> thank you. coming up, autos aren'tfá t only group affected by the clean energy getting a lot of they could face a credit crunch, but our guest has au■e1 buying opportunity for the long run. let's take a look atñi theñrc s. (vo) sail through the heart of historic cities and unforgettable scenery with viking. unpack once and get closer to iconic landmarks, local life and cultural treasures.

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welcom+x@ack tolpe1 "the exchange," everybody. i'm tyler mathisen with your cnbc update.çó joe biden and theñi canadian pre minister have begunw#óñi their t announcement withfá a newi] agreement tog : talk about# stabilize haá. the man who inspired the movie "hotel i]rwanda" will be released tomorrow. more than 1,000 ethnic e1e1jftun a wamda's e11994 ethnic cleansid

after sev[2!l months as a crypto fugitive,÷ the entrepreneur isfá in custody, chargedñi with forg! he was arrested with fake identification, tryingp,■ to bo his native south korea, and in ther tok%$2■ crashed, erasep an estimated xd$40 billion and kel, i don't want to let the moment our producer, alex çócrippen, w has been writing these wonderful news updates for me and others for many years. there'sd#thing he hasn't done at cnbc. congratulations, alex, as you sail on.e1 kelly, backxd to you. >> i'll just add, pó4u+k you will be very missed, as well.

>> two superstarsq sailing ñronñ >> yes. bon voyage.w3 bon voyage.w3 bitcoi has su ♪♪ choosing miracle-ear was a great decision. like when i decided to host family movie nights. miracle-ear made it easy. i just booked an appointment and a certified hearing care professional evaluated my hearing loss and helped me find the right device calibrated to my unique hearing needs. now i enjoy every moment. the quiet ones and the loud ones.

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welcome back to "the exchange." bitcoin hast( been one of the f

mong theñi banking turmoil withtices up 40%. this week, tí%o s.e.c.t( issued coinbase warning of potential securities charges or the horizon. but coinbase said it's confident inft"át legality of its assets and service. will d.c.'s activity chill the sector?xdñrxd we were chris, welcome. >> thanks, kelly. õñ a about how much more there is to come fromñi d.c. if i were someone involved in the space, wouldn't i think twice about it took be super sa about not crossing with e1 abarea -- look at tiktok, the government may be cracking down on. >>q i would takee1 the opposite approach here. the size of the fight here is indicative of the scale of the opportunity and what iç?xñi at %

stake. you know, i've been in the crypto inw■stry forñi about ten years. everyone ,pghed andjf ridiculed us in the beginning. now here we are on the biggest stages in the middle of a banking crisis. theyú&gh at you, then they fight you, then you win. >> exactly. belief is. the timing is ae1i] little too coincidental. you have government officialse1 saying don't panic about theqtì% traditional system, they're sayingw3 hey, do panic about crypto. don't look over here. but bitcoin was builtm/o for moments like this. it's ane1 alternative for the existing system. and these are means for consumers to make a different choice. or at the at least diversify. soq it's not going to be caught up in the same contagion we see right now. so that's valuable for consummr+ to áea educated. >> so if?;■ the governmentr

down on that kind of yield farming behavior, which they have been goinge1 after this, tt significant jz of coinbase's revenues, and probably threaten thelp cryo ecosystem, as well. do you share those e1concerns? that we'reçó going to see morel regulatory pressure? >> i would differentiate between the protocols and the companies that operate them.xd so coinbase provides services on top of these protocols. coinbase is not changing their operations. their stance is our business doesn't xdchange, you approved ipo i.■d 2021.5a■ you've been inconsistent in this process. so i think that coinbase will ñ potentially the highest court. we see similar action fromko■ others for xdinconsistency, as well. so these companiuc■ do have to deal with the cost and sayok so of the complications of that process.xd

so that's importantjf for investors to be aware of. ip2q"át same time, you have bitcoin chugging along, 3m these protocols don't care.w3 last e1year, theyçó totaled ove0 trillion in value. bitcoin is, youqj■know, you've t an all-time high ofq holdersxd right now. 68% of holders haveñr not sold moved bitcoin for over a year. soxd you haveçó people not fling in spite of the regulatory fá pressure. and since the svb collapse,÷ñ they'refá shifting evene1 more bitcoin. see the strategy from the government backfire. >> so if i wereqw3 somebodyj"i concerned that the activity inñ crypto is not going to be as high goingt( forward as it was, and that has ramifications for alljflp of the startups. it's interesting to me thatfá

bitcoin isjfxde1 holding up oka what will happen tojf a lot of e companies part of the crypto economic system? does it make sense in a higher rate environment with less startup capital, where extended losses are -- where are the ones that are profitable enough on their own without these other practices to exist for the next 5, 10, 15 years? >> i wouldq say startups are al facing the same pressures. i run a venture capitali]pñ and so we're dealing with a situation where monetary is working through that. but then if you look at thisxd internet financiallp system, the again ar they're protocols,xd smart hq■ systems that operate on top of this.xd when a consumer wants to take out a loanlp or make a trade or say investq in the yield bearin position, they're doing that by

dt■n and executing a transaction they're in that's not executedu by a company. so that smart contract is not going toáwz bankrupt. it's therefore. so it will operate thatxd servi the ef situation is. >> how are your is it on companies themselves that are part of the ecosystem, or on the ecosystem itself? >> so we focus on core assets like bitbmin,i] et cetera, so cp positions in some of those major positions in some of those major liquid assets, like the and microsofts, buying those positions in the early 2000s. so that's one part. and on top of those core q positions, we makezvontureìáhp % even t traditional firm, we focus far less on t(companies. ■.)do you think this will

ne years? >> if i]anything, i have more conviction than ever, because traditional finance andçó traditional governmentñiñr spea are advertising for us right now. as they raise these questions about thefá traditionalxdñi sysd people aske1 why is that qhappe they say hey, th &!bble alternative. >> how would you explain bitcoin's collapse prior to the fetd's tightening to where we are today. even with the rebound, it's still down signaaw(p'tly, whenx true. ca? and why won't it endj8áñ being that if we see more crackdown on the leverage that is partçó of e bitcoin ecosystem, that priceñi won't come under furtherxd pressure?a5■ >> when i started,t( bitcoin wa hy weok began in 2015. so here we xdare, north of

$20,000, upok 40% since svb. that said, it's still ventujq r risk, so it does have"n■ these boom/bust cycles[gñq no doubt ak that. i think of bitcoin more asfá al supply inflation hedge than añ b so as you seewm+■ li:m+ qe■ok d from the traditional system or slosh into the sys(ksyou see bitcoin rea,$ñi >> even though it's infinitydyñj >>çó we all know there's only er going to be 21 million btc. so you've never had a more perfect supply scheduleñiok th9 what they e1offer. >> final comment.n9say you're t of congress and they say chris, why do we need this to exist? what is the fundamental purpose% that it'sxd going to serve in t kind of less risky u.s.ñi fáeco? >> the u.s. was founded on the principles of freedom and

&= that crypto stands for. f1 o &ee■q ultimately creates a bett substrate for us to learn finance and run our digital economies. but this is garbage and we should have gone the way ofñilp chinañi and outlawed itñr from beginning and yo%lne notñi convincing us. >> it will be our generation >> chris, thank you so much for joining me today. ?yrñ still qahead, cap stocks o ?yrñ still qahead, cap stocks o the run qagain,r lily! welcome to our third bark-ery. oh, i can tell business is going through the “woof”. but seriously we need a reliable way to help keep everyone connected from wherever we go. well at at&t we'll help you find the right wireless plan for you. so, you can stay connected to all your drivers and stores on america's most reliable 5g network.

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92% still active? seems high. seriously? it's just a bike. wait. they make a treadmill with an intuitive speed knob? yeah. want to try? 92% stick with it, so can you. start a 30-day home trial today. terms apply. you got this. let's go. gobble gobble. i've seen bigger legs on a turkey! rude. who are you? i'm an investor in a fund that helps advance innovative sports tech like this smart fitness mirror. i'm also mr. leg day...1989! anyone can become an agent of innovation with invesco qqq, a fund that gives you access to nasdaq-100 innovations. i go through a lot of pants. before investing carefully read and consider fund investment objectives, risks, charges, expenses and more in prospectus at invesco.com. oooohhh, it is cold outside time to protect your vehichle from winters wrath

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in particular. >>çó in jfparticular, and we ha seen this divergence. i want tozv■ show you this char. it's remarkable and tells you how the megafáñi caps have led rally over the last few weeks.p■ meta, amazon, apple, microsoft andt( google,xd up xd19%. without those names, you see the s&p 500, it's completely flat. so you can see the big tech is making up for that.q and also to your point, kelly, yes, apple and microsoft have never been more concentrated and haveçó a greater weighting in t s&p 500 than at this point in time. and they'req really seen as the fortressdq within this safeçó haven becaus+c6 of their balanc sheets.çó >> their balance sheets asg probably the most reassuring things, although did we ever see what portion of those were if■ treasuries and5a■ fámbs and all rest of 5a■it? you go back and say when we had intel and otherñi companies tha

index, i mean, that -- i don't know, you neverr be buying at the top. >> xdit's kind of like a tough position to be in, because there's nowhere else tojf go bu down. we lookçó at thexd f.a.n.g. pluá names, they were 25% at their so they've held relativelyxdqe1 steady, but weq knowñr they can hold on forever. that's why you see them spending and microsoft with this ai and alsoq meta. but to your[a8r't of balance sheets, apple has well over $100 ñ ofxd cash and cash reserves and can act as its own bank, like buy now, pay la4 how safe theseñi companies are. >> absolutely.xd diedra, thank you. wexd appreciatex still xdek dip inrcwu"e and natural gas,

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welcome back. the&5s&ar etf was a mystery chart. we have a look at whatt( isñi driving the gains. >> kelly,xs the green th got to selling. p4/qñ the banking fallout. might have been overdone. remember, they're coming off the worst week of the year. now take a look it at thew3 headwinds. citizensok valley bank was a ke lepder. publicly traded companies had little exposure, there areán broader fields around short fallsñi and financing and the re in cost4-t capital is also weighing on the sector. however, raymondw3 james noted they werei] misplacedq and bank continue to have a strongere1 e1 appetite.

they help withñzpredicted cash flows for things like power locked in xdahead of time. now onñi the positive side, we t indication this week that■5! mat is still open. residential solar provider mosaic placed an asset back offer yesterday and they said are morexdok favorable than manñ expected. the ten-year yield helping with those rising costs of capital concerns. >> come on over, we're ' stay on this. whileñi all energy stocksi] saw gains this week, the next guest says there are a few warning signs flashing after the svb collapse. stephen, good to see xdyou. welcome. >> thank you for having fáme. the reason we're all a little cautious on new energy is this is not where you should be going right now. they come up. a clear way energy for instance. a few of the other playersí■( so why do you think the most

vulnerability in the market and where do you think people should be lookingq instead? that's driving the valuations and dividend growths. the concerns is obvious. they're certain right now. if the cost rises,fá we're not sure they're able tor that spread. that is super critical for the growth of tomorrow. so companies like that are essentially centralized around the cost of financing, concern us more than companies that are really developing projects, building projects or manufacturers that haveq a lot f exposure. >> noñi explanation. that's why we see thefá characteristic in different industries. people are trying to take advantage of of that thread. so where do you think conditions, financial conditions

are more favorable? >> some companies that just have those are the templates. a few equipment makers and clean energy world inñr really good shape. again, bloom energy. they are well financed. relatively capitalized model. this is also in a year they'll really break out in terms of significant and minimal finance requirements. then we think about reallyi] bi finance companies, development companies like sun run and aef. these are companies that are very ñibig. they have better pricingñrçó po. many of the companies have quite a bit of pricinge1e1e1 power. >> r >> for example, that will be sun run in california.

some will go to the homeowner and will show the pricing of their product compared to the utility bill. in northern california, the utility bowl is above 31 kill owe watt hour. and that's with no capital up front tojfoke1e1xdçóe1 consumer. >> this is añi fragmented marke. in terms of the lasting fallout from svb, do you think we'll see more consolidation from companies that nt access the debt market? >> we're concerned aboutjf thei smaller places and access to ip r(t&háhp &hc% as you pointed out, we havet( banks involved in finance.q often to the small developers. the so this could result in consolidation. i think that just speaks to the strength of the largest business model.t(q

the smaller plays don't have to. >> finçlx word, stephen. what happens now that we see the ten year yield dropping, if the fed cuts rates by the endt( of e >> yeah, what does that mean? we've been thinking a lot about that recent data points and, who knows where it goes from here. the credit spread is serving to offset the drop in yields. we expect that dynamic to stick around. that is the quality of the underlying assets is extremely good. they meet assets financially. een really quite good. so i do agree with theq earlier point. there isçó enduring interest in providing capital to the sector. theçó sector projects are quite high quality. whether the capital falls,ñi dmoint. frankly at this çópoint, given e fall last week, investors are much more concerned aboutçóok t dramatic increaseok in financin.

if it stayed relatively flat that, is a disappointing victory. the. or perhaps by the time we actually get rate cuts, the financing is so muchw3 higher anyway for secular reasons and off we go. great to you have here today, stephen. thanks for your time. >> thank you. >> stephen bird. pleasure. that does it for the exchange today, everybody. for more on the markets, economy, sign up for my newsletter in one easy step. scan that qr code. [music - cover of blondie's “dreaming”] [music playing] ♪ imagine something of your very own. ♪ ♪ something you can have and hold. ♪ ♪ i'd build a road in gold just to have some dreaming, ♪ ♪ dreaming is free. ♪ accenture, let there be change. the first time you connected your godaddy website and your store was also the first time you realized...

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hi, everyone. coming up on this friday, thank goodness it's friday, the latest ripple ine1 the banking crisis. stocks wm#