$71 and hess is a company they think you can own to play añ3[■ recovery rally in oil. >> do you still think that trade is all right and about to have a recovery bounce and not only crude and the lpstocks. >> i'm looking at< ■ bryn and ss nodding yes. >> i'm going to go with that answer. >> theyt( $%w/iw let her in. >> all right. what haveñi."■e1 youc%çeu >> b of a. i would be a buyer of j.p. morgan and slightly more both. i'll see you onp,■ the closing l the exchange is now.ym■ thank you very much, scott. hi, everybody. "the exchange." more bank stocks coming to light over the weekend as u.s. officials reportedly considered expanding an emergency lending orogram, first citizens swooped ■ and depositsq andñi3narger institutions, and the odds of a

unilateral move appear very low. their chief political economist will join us to discuss. one strategist strengthened in one part of the banking sector and with european stocks some quality american names. he'll tell us momentarily which ones. plusu■xdlp the two-day hearingñ off tomorrow with the fdic chair testifying on capitol l we'll talk to house financial servicesxd committee member jim hines about whatñi moves he'd lá to see on the fdic insurane front. the market action here, though, the nasdaq's down and it's good to have you back. >> it's good to have you back at the hq mother ship kelly right here next to you. as kelly mentioned, we're mixed right now. we're seeing slowing momentum in the mal+#tplace andfá we have x' outperformance in the dow two-thirds oft( 1%,t( 232,252. the s&p isñi down 3970, and up about seven points and çów3 one-quarter of 1% and the trading range to give you ane1 idea of whyxd we've slowedi] do

the momentum and it's 23 at the highs and we're flatlp at the ls and tilting toward the lower end of thet(ñr intradaye1 trading r and the nasdaqt( composite the $ú1■ underperformer down 64fáe points and t(11,76ñw the last te of that composite index. one r$y)on why is thexd reversa of near tofáq mediu^i5■ trends tie in telecom-type stocks andñi lo at this. the tech sector?;■ spdr is upq s up year to date. energy is up 9% and that's a pretty big gap as you see her( again, the technolo&!ñ tradñ ha been a re outperformer today and a little bitlp of a reversa regional banks, speaking of value sectors also becoming añr bit more big this morning and we're off the session highs except for first citizens bankshares buying the bankrupt

assets of silicon valley banku■ and first republic and some ofe them more'c■ imjt(uáled and regl banks likei] pac west and weste alliance and broker-dealers charles schwab up?;■ 2.5% amid falloutd in context for you,v the spdr,fá etf, the ticker kre we are up 1% todayñi and off roughly 33% from the highs we saw justidp()h#rom early february so yñrñr stability and there'st( a long way to go. >> there isn't rally and maybe it was earlier on. you just highlighted up 1% after the collapse asçó we've seen. toward session lows right now for the etf and w keep in mind. absolutely, dom, come on over. you might think theñi series of bank collapse that the overall markets arexd struggling more a they've held up remarkably well and you justñiçó heard we're on track and we'll seeokxd if we s there and michael santoli h+sf more for us.

up 3% and you would have taken it probablyr think what it comes down to is how weq define the market and a h5■ was saying the huge, bulky tech stocks have obscured the damage and the reset that's happened below the surface and eq point to had a 10% pullback from the fed high and it's closer to the october low and then to the february high. so there haslp been some churnr lower and it justfá hasn't beenn the indexes much because microsoft added 2 hu00 billion the market cap and that's more combined right now andpt+q■ tells you the effect of theq narrowing type market. there is another explanation which i do think there's at least some residual hope that we boughtw3çó ourselves the fed pa nearer than we thought and maybe the cost of thatçó isn't going be so onerous. we don't know ife1 the market wl

getfá called on that position, , in fact, they're not getting th3 joke at this point, but i do think that some of that isñi in there. sentiment and positioning already very cautioust( going iá the svb collapseçó and there wasn't a whole lot of overjf optimism, and keep in mind, everything that's gone on. the lows of the recent pullback have been at thew3zv■ down 20%l from all-time highs andxd level firstt( reached a couple of wee ago. it doesn't mean it can't go lower and it tellse1 you we're t qzez a limb of i]bullishness. >> oh,lp sure.fá it's like a boat on the waves. it just keeps hitting those levels, mike. my next guest aren't so convinced thed bookmark and the cnbc contributor and i brought dom chu over. dom, appreciate it. if i'm not mistaken you'reñixf3 bullish on the banks here? >> well, i think you can buy

banks here and more importantly financials'o cf1 o they outf%!formed european financials by ten percentagelp points and international stoc the last week. year to date and last w3year, a trend in this business aneó it' £g price tó &m!■ flow companies including in financials >> you probably can say this faster than i can bring up the d chart, but i was going to ask jeff how big have european banks have been over a 10, 15, 20-year period of time. >> oh, they've been awful and the physical austerity in europe that weighed on them in a long perio(&jt time and so manyxdjf problems as they rolled through 2011 and 2012. we started a newok cycle and ne cycles mean leadership forxd behavioral reasons and the data that we're seeing is actuallyi] encouragiáq&ates to the economic front and i have the currentñiok ifo data today andq that's an assessment of the

german economy and better than ast year showing improving economicw3 momentum. i think the concernsçó arefá go to return to inflation and growth being tooi] stronge1e1qi than worries about a financial crisis. >> one more question for t(you, jeff, are these tradesxl■1xd an opportunistic, getxd in and get out quick as sentiments improve year or couple of years over the longert( period of time? >> i do think this is a longerç period trade and investment, and i think again, focusing on the low price to cash flow on international equities out of favor for a long timeg real opportunity for long term investors. >> i know you talked about energy names if i'm not mistaken in europe. what about the banks here? down 75% from its peakçó in 200 and most of theq big ones trade we"-g■'c■ below book value. there is tremendous value there which is a question of whether it will be realized any time soon, but i do agree. i think there's a bastion of value to be had there andzv■

finally, european banks have positive nominal interest rates. negative interest rates with a negative interest ra)s&er for et was attacks on capital andv )l@■ positive territory.xd energy, large european energy companies are trading at half companies are trading at half the valm as well. >> i like to lay the backdrop as we turn our attention to thejf u.s. in some cases u.s.d done better and others have not and we'reñi talking about morga stanley having gone nowhere over the last twoe1 decades and that one of the best of the best. so when i spoke to an investor a couple of weeks ago and said to% some of the big banks? he said no. íed. he said they should be trading because the bookc is bad. that's what we're learning from

you á■ the reactionw3 of the tech stocks as date goes on and it doesn't look likeñr ther >> that's theñi p@q9ñ >> i think every time we've seen they'veñi been met with the big rallies and it discovery is in theok u.s. bank because there isn't yett( a lotf clarity despite the massive amount of governmentt( intervention and regulation now on the heelsi] ofñi siliconñr v si collapse. you still don't know the book values and the costs for theq assets are something that they should be paying for or payingça discount for. remember, if you look at thexd rescue that juste1 happened for first citizens and sivb, they paid a discount to acquire those assets and it's not to say that% in a distress situation everyr regional bank should be marked lower and there is still a moment of pause that axd lot ofd by the way, this is all playing out in this reversal that we've oft

year. the value stocks were supposed to keep that momentum higher this year and they're just not. inancials are two of the worst performers in 2023.t(ó tech and com services as we shoy%juáu in the top of the hour, the real outperformer. >>r microcosm of that. i'll let you weigh in, tech outperformingw3 or it's just a pause? >> people piled on thinking that they were somehow safeok havens and not realizing thatfá older customers small, medium and large-sized businesses were about to see a notable slowdown and that was a rotational thing more than anything. i think what's very interesting today was the stock market reaction to first citizens. the stock's up fá50% and that a lot of m and açó can take place within the small and regional banks that can cure the ills of the badlyñr managed et through this without this blanket coverage on5a■ uninsured deposi that some are calling for. >>é@■ by the way, kelly, to spe

to peter's point,çó there'sxd a reason why it'sñi foamingñié@■ through the fundamental case. earlier this morning we had analysts downgradeq5a■ caterpilv shares and how will i fit it into the financial woes we had. u.s. non-residential construction was already facing headwins goingñi forward. the regional bank crisis in their mind and their estimation is now going to put a little bit more of a freeze or a little bit of a freeze on those regional banks who do a lot oid constructione1!u >> if that were to happen,xd wh happens to the construction activity? itqjf starts to maybe slow down even more which affects companies like caterpillar ande united rentals whoñii] leasesoz of that equipment out. there aret( reverberations that are happening outside of the financialsñi and the banks. >> absolutely. let me put this to you as we put it in the context of the broader marketswm+■ here. i forget how goldman put thisr earlier. just today they said ao-.ñheadw,

not a hurricane. would you agree with that? >> it'sñie1 fair. recession, but construction and retailfá andñiñr services have doing well and we may now start to see aw3 downturn. you just talked about construction, right? maybe in retail and servicesi] start to see a rollover even as manufacturing is showing signs of picking up again.7hbr(t&háhp% we are in a rolling recession and it's not overxd any time so and the banks arer that in tez other parts of the market may not be. >>t( where are youçó looking? i don't know how you wantw3 to kind of,lp yout(t( know, parse h everything, but whereñr do you think has the most opportunity? >> i think it'sxd really simple. it's a low price to cash flow screen. peter talked about some of the areas that were attractive and i think enerwlñ falls into the category and look at the companies that have strong current cash flow, not those that have potentially cash flow in the future and that might work if the fed has to reverse course and cutr

me in thelp stubbornñi inflatio rirnment and look to cut cashé@ flow across the country. >> so much news. we have bloomberg headlgtj and an auction to get?;■ through. you guys,r joining us and of course, dom chu. >> let's starz( with rick santelli andr option. how did that go over? billion and i'm with axdlp trif, and 120 billion. how did it start5a■xd off? a d minus, dogñie1 ñié@■minus. this was one noti] pretty optio from top to bottom, as yo5ñá lo at the intraday, you can clearly see the market voted. yi. it's the firstnb■ yield at an auction for twos that's under 4% sinceu■q august. last summer, and if you consider the fact that most of thexdq metrics were justlpñiñrxd horri.

the first to cover, and the ten option average isjfçó ñi2.62, b what's really fascinating here is why didn't investors flock td this? well, maybe it's b]ause the banks are doing better today. maybe it's ther one thing ii]x: sure, :a;zezq all of the rumblings i've been hearinyd al weekend and this morning it'sok probably more of avoidance than it is about a statement thatñi yields will go straight back upo it's been an awful lotxd of volatility and traders rather forego the optionçó and andq monitor the secondary market. >> 4.008, that's the two-year. coming up,t(t( backingjf the ba. is there more rescue money onq the way? goldman's chief polit) economist is on deck. grilled onxd capitol hill. apple's ceo was making his first known trip to china since the pandemic. we'll tell you why.

as we head to break, herefá is look at the markets. as wee1 mentioned, the nasdaq qr underperforming down today. the regional banks rebound,fá ì% s&p at 3977. we are only up sevent(t( points. we're back after this. ♪♪ ♪♪ ♪♪ 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. that sounds just paw-fect. terrier-iffic i labra-dore you round of a-paws at&t 5g is fast, reliable and secure for your business.

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♪♪ ♪♪ñr welcome back to "the exchange." only 48 hours after the tiktok ceo'sok grillinging on capitol hill. tim cook made his first known visit to beijing since thelp pandemic to attend the developmentq forum. jack ma has also resurfaced in the mainland after spending more than a year awayw3 andó[■ larget of public view. these high-profile appe1ejttáhì% come amid çó5a■beijing's, forts businescrñi sector. last week authorities raided the offices in the men's group and what message is beijing sending really? they're covering thep,■ summit where cook appeared. shet( joins us now alongside brn sullivan who has detailsé@hjz a china with saudi aramco. eunice,v tñ ájájjt wants, kelly, ceos to make sure that they hear

an opencw3 china. the president -- president xi jinping's chiefñr of staff read letter at theçó forumñrok that from his bossñi in anñi effort try to reassure the audience that china really qgqj welcome international business. inxd public, the boxes of apple r(t&háhp &hc% well as otherse1 hadxd to expre their support for china's in fact, tim cook had said at co one of the side sessions thatw3 apple and chinae1 have had a albert told me that the drug healthy 2030 initiative and would contribute as much as it could. the forum, though, couldn't escape thexd worries about the souring ÷du.s.-china relationsh. not only were many fewer u.s.

ceos here for the forum this year, butw3 also the mood at th forum was very pessimistic. k;ly? >> many fewer ceos, so the fact that tim cook shoenlp up was evn a bigger deal. why did most people stay home?ñ] >> well,ok a lot of people decid to stay home because they were concerned about the geopolitical situation. companies that were saying to me that they just felt like it would be ap$ú11e■ bad look. d.c. wheng holl u.s.-chinaq relations. so that's one thingq that's bee on peopleg+x■ minds. f1 o climate is somethingçó that a l of companies are worrying about and seeing is a risk. you mentionedym■ the men's grou the japanese drugmaker has said that one of its employeesq hisi also been detained and they're working8.xq!■ japaneselú!@r(t&h% authorities to try to figure out

exactly why the chinese pperson. a lot of risk here and a lot ofñ reassessment of what kind of relationship companies need with china. >> how it, iok guess i shouldq say whe someone like tim cook shows up there. >> how does who frame it? i or the5a■$x■ media. yes. >> oh, yeah. no, everyone is playing it up here. co the foreign ministry justq couple of hours ago, hadi] actually put sideçaby sideñii]ñs people shaking their hands where so, too, the tiktok ceo is being, you okknow,i]xd from a c perspective unfair by congress.ñr so thew3h7é foreign ministry pr

question which one is more friendly to foreign business. so they're definitely using tim cook's visit here for mileagexd propaganda campaign. >> very,e1çóñiçó very interestir eunice. thanks. our eunice yu is reporting. beijing also inking this big deal withxd saudilp aramco to sy more oil. brian sullivan is here with that. oxváu$ink,t( br? >> money. i think that might be the angle and the increased tie-up, kelly, we know that the east is kind o( coming together. it's really two deals thajutçó both oil related. number one, you havefá aramcor planning to spend a bunch of money and expanding a renineryñ in china and increasing an investment over a petrochemical plant because when you run the petrochemical plant or have anf ownership stake in it you can maintain the flowñi of oil neededed to do it. so refinery over here and

petrochemicals over heret( and looking at the numbers, kelllt this could beçó more than one million barrels extrat( per day1 oil sold byt(t(fá saudi arabia, jjuj xi jinping's visit to the kingdomt( of saudi arabia ine1xd december. ironically, this aramco deal haá hurte1 russia. russia has been evenq still china's biggest oil supplier and saudi arabia took that back and this should put it over theçó t and you do wonder if this will increase a little bit of tension between riyad and moscow. tim riyadt(zv■ coming together on t crude oil deal and it's back above saturday that seemsw3é@■ significant. there's been a lot un0:■ the hood and pippa talked about a lot of this is paper stuff. the dollar moving, interest rates. it is hedge funds bidding down

the price of the oil paper contract. there is disconnect with the physical delivery and this. i will say ñithis, though. there was a report out of rbc, capitalçó marketsqç"today. michael tran has seemed to be doiñwy a great job and by thg'e■ will be on last call tonight. they said that quietly, kelly, the world isq adding more oillp refining capacity thanxd any ti since 1977 between a refinery expansion in texas, mexico,e1 nigeria, the one we just talked about, and rbc says there are 4 million barrels a day couldxd ce online by the end of nevmçó yea which we'll see if it does, but what does that tell you?lp it tells me bearish and they see demand for oil being strong. >> got it. >> you don't invest like that. by the way, we talk aboutñi tha ith lehman tonight and with

goldman sachs, the inflation reduction actr having toçó payçó three or four times. >> i can't wait for you guys to dig throughñi it. thanks for yor time. >> it's opinionw3 a yeares isr government electricity stocks that stand toi] benefit. they're already ñioutperforming the s&p this year and we'll tell you which one. >> key hearings on the svb fallout this week. we'll speak with jim hines who is on the house financial services committee about what move xdd.c. may or may not make from here. from here. as we head to break, take a look

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welcome back, everybody. as we just showed you, ibm,fá j. morgan. dow in the green. the s&p have turnedq higher and we were at sessionlp lowsñr and s&p is now 13 and the nasdaq is% still down half a percent. if you'req wondering what's dragging it down, take a look at the biggest laggards. alphabet in particular here. that stock down almost 3% and w1 also see picixd duo duo downe1 rivian, and meta also lower and in terms of alphabet, theqjfxd that's the the crypto company violated federal law toñrñi solicitq u.s users from millions in revenue. that's whylp we also have presse across the crypto ecosystemxd today including coinbase which q8guáu last week got the wells notice from the fcc warning ofq

also disney ceo bob iger tellinq employees they will begin theçó áhp'd the first of three rounds of amount to 7,000 job losses and the news priced in to some extent. the stock wasñáñ 1% today and costs in total including 3 billion inñi content. for theu■ full story on disneyñ head over toñi cdisney.com/pro. let's he@f over to tyler matheson. >> sad news. it happened again in r at least three children and one adult are dead after a shooter opened firer christian schoolxnoutside nashville, tennessee. the shooter is also dead afterñ engaging with police.ñr the xdnames, ages of the victim and the gunman has not yet been released and the school servesx students from preschool through the sixth grade. >> remains of twow3 more victim

have been discovered in connection with friday's chocolate fastry explosion inw3 pennsylvania. the death toll now seven. the cause of the explosion not known. the factory was owned by r.m. palmer company which makesñr several chocolate products includingt(ibunnies. and prime minister benjamin netanyahu has agreed to pause his controversial plan to overhaul the country'st( judici system until the next parliament session kicks off ne0ta month. this news comesçó after mass protests and a strike broke out in response to theñi controversl plan. critics say thexd proposal woul threaten theçó independence of % supreme court and limit judges'd powers. >>xd i'll see you soon. uninsured deposits after thp fallout (rom svb. geldman says they'll continue to do so and we'll hearfá exactlyqw and why next. throughout the month of march, celebrating women'szv■q heritag sharing women in business and those of our teammates andr

contributors. here is girls who code founder. >> the advice that i would give to women as a ceoq is that all f us have power. our job isr for good. as the founder of girls who po girls who code so thatt( they c find a curefáfá for covid, clim and cancer and as the founder and ceozv■qq of momsxd first, i9 my power to make sure that workpda#es finally work forfá women that we don't have to choose between our job and our child. all of us have the ability to all of us have the ability to x: [soft beach sounds] sf c'mon ref, that's a foul! jay? jay's back? gimme a time out. huddle up! i call the time outs. didn't expect to see me so soon, huh? well, i invest in a fund that fuels innovation, like next gen video conferencing, and when i saw your defense in the first half, i had to step in! anyone can become an agent of innovation with invesco qqq, a fund that gives you access to nasdaq-100 innovations. coach, what are you doing?! this thing goes fast. before investing carefully

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welcome back. heñrçó fdic. arti< rheaumeberg's prepared remarks about the svb collapse. he said fdic received one valid offer to buyçó silicon valley bk the weekend after it failed a couple of weekends ago and that offer would have cost more than estimated liquidationxd cost.r the ten largest deposit accounts q1e■ clear what will happen

with the svb's deposits with the cap right now. my next guest is it has the capacity to buy uninsuredçóñi q politicalñi hurdles to getok tot guarantee will beçó high. let's bring in alex philips. he's chief political economist qtú¢9■ sachs. good to see youxd again.cìáhp &% welcome. >> hi. thanks for havingi] me. >> let me start with, do we know for sure that svb depositors ar1 100% protected in thisxd acquisition now orçó what happe to the funds. do youçó know? >> so i haven't heard anything new specific to the svb situation, but i think the fdic has made itjf very clearxnthat y depositors in not just that resolution, but potentiallyçó aq resolutions goinglp forward in e near-term and essentially any banks. so i thinklp right now the oddsf

uninsured depositors losing funds are doing well. >> the other interestingt;/s as of this takeover is that the fdic will participate in upside here from the bank. i w3fáguess, from its turnaroun] we can call it. was it aig back during theñr financial crisis and i harken back to that period when the governmentt( benefited quite substantially from thelp fdic financiymp■ recoveryqfá and!u■ñe $20 billion, you wonder!u■ if t half a billion dollars itt( sous like. >> well, i think t#i+1ñ you kno, the history of these things is thatxd traditionally over timexe because thefá fdic deposit insurance fund is likely to take a hit at least from the near-term after this, andt< the we'll see what happens, but nsurance fund is there lbvfor. >>xd what happens to the insura

pointñi from your first comment that it was thefát( implicit backstop of all deposits that st depositaut who will ultimately pay for that backstop and do you expect congress to make it explicit? >> so that's the challenge. answer is the banks and the extent that the insurance fundl is drawn down through any further resolutions. the banks will have to cover that probably through a special assessment, but that's all bank money. that's not taxpayer money. there is sort of aé4çó bigger questionxd of if this doesn't work, if depositorsjf ultimatel don't have, you know,e1 full confidence in their deposits because some of them were uninsured and then at that point the treasury might consider steppingçó in. un but it's possible at some point depending on how things unfold

that they might come back to that. that getst( tricky because that taxpayer funds. >> how much money do you expect the fdiclp to raise from the bas and how willçó it further impac profitability right now for the smaller ones look pretty bad and even with theñi discount wsn(ju and that'sxdçó extremely f5 through other extendedq means ad we should expect mergers that don't know what will happen with commercial real estate.çó how much money is that looking to rai'í9 whg to come from. >> rightçó now. they don't necessarily need tow raise thatfá much because this things cost the fdic thatlp muc. things cost the fdic thatlp muc. their balance going was around $125 billion in the insurance fund. so this takes them down to closer to $100 billion, they might have to raise that back, and we're now seeing the cost of these two resolutions more or less. from here it's really justlp a

question of whether there arejf additional prwc7ems at other banks that end up imposing costs on the insurance fund, but right now it's not clear that that's going to happen. >> so the question nowzgeing forward, this is going to be isolated as it wasok to the kin ■ and management and all of the rest broadlyxd speaking, what do you think of people of balances of 600k, and i don't know what itq might be forq a business are goingfá to do going forward. explicit guarantee for the treasurers and anyone making these decisions even for wealthy individuals, are we going toçó enshrine this or not? >> that's the questio so i think you have sort of two issues. you have businessesa5■b.■ that o run larger balances in some accounts, transaction accounts in order to make payroll as i do the otherxd things that they need to do, andfá then you have

large balances on the household side that aren'tñi necessarily doing that sort ofñi thing.d-4a which you can see is that there probably are a few trillion dollars of business-related balancesxdxd and probably a lot that is uninsured and so i think that's going to be ajf focus. the concern around thatñi is th those might be a little bit more flighty, and so to the extent thatlp we seexd thingsxd start ( become a little bit more uncertain again, thosew3çó are about. the other question, though,e1 i on the high income and high net worth household deposits andq that's probably a bigger chunk of the total uninsured deposits that seem to be maybe a little less flighty. the question there is over time do thoselp deposits seeke1 out higherlp yields elsewhere. back to yourxd comment about tf medium-term prospect for bank

earnings, i thinklp that's a question that people will start taking. >rá absolutely. and then the final issue to moralxd hazard one because quit simply, if there's ane1xd expectation that deposits aree1 federally backstopped across all sizes, if something isn't in all details and i'm a bank executive, there's not much for me to lose. there's going to be an arms race for profitability for people t are aware of the risks of goingfo8 under and hope that wo case it's not likelp the d. >> there is essentially a de facto unlimited guarantee right now. the question is at some point will that go away? sort oft( a situationfá one wou expect that regulators and the treasury and thexd fdic et cete come back and essentially announce that at least in the

short run they will probablye1 guarantee all deposits5a■ again. the problem isçó it's not explit and solp there's always that sml amount of that's the difference between a guarantee and 2)gt sort of ae1ñ strong commitment. >> yeah. at some point they'll have toó[ xr(t&háhp &hc% i'm justñi not optimistic right now that congress in the next couple of monthsw3 will do that. couple of monthsw3 will do that. >> does it come ■ blancaset problem, or do you think the implicit guq-p'tees7■ will force it? >> i think it is unclear at thió point. what we do know is thee1 deposi outflows seem to havejf slowed somewhat, and i should say the data we got from thefá fed whic was a little bit lagged and the data that we got from the fed late last week probablye1 indicated that they were less than what people expected, but that said, it's not an explicit

guarantee and if you're the cfo of a large companye1lpxd that h lot of xduninsured deposits you probably haveñ]ñrxd to think ab that and the question now is not so much do we facejf any kind oa near-term risk. so process over the nextt(e1 sever thoseq deposits sta?á put and me all of the way. >> thank you so muchi] for the granularity especially as we prepare for the hearyn next couple of days. we appreciateqq it. alex phillips at goldman. >> still ahead, if you'reñi looking at clean energy stocks andfá subsidies and tax credit, andfá subsidies and tax credit, you migh i count on personalized financial advice from my ameriprise advisor. she knows my goals and can help me reach them with confidence. the markets may fluctuate but you're still on track. more than 9 out of 10 clients are likely to recommend us. ameriprise financial. - double check that. more than 9 out of 10 clients are likely to recommend us. eh, pretty good! (whistles) yeek. not cryin', are ya? let's tighten that. (fabric ripping) ooh. - wait, wh- wh- what was that?

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♪♪ ♪♪ welcome back. if you're looking for some stocks that can withstand a inflation reduction act,zv?hváu don't have to be limited to just

the ev a,lñ solar plays. some of the key names are5a■ electric and equipment companies that have already been outperforming this year. outptephens -- pippa is all overi] it. welcome. >> hello, kelly. >> when you think about the energy transition the first thing that probably comes to mind is solar, wind, electric vehicles and things like that, but those depend on a fáreimagid but those depend on a fáreimagid electric gridtxrr(r is the backbone of the energy transition and thexd netzero gos and the powerfá transmission an distributi.6■ need to expand frm $260+■ billion today to $820 billion by the end of this decade ackoadingxd to the internationa in the u.s. transmissionfá need to grow by 2030 and roughly triple by 2050. the inflation it's $370 billion for climate initiative is a big part of this. yai$ile the specifics of that bl are still beinge1!u■ hammered o there areñic a number of under radar beneficiaries outperforming■ broader market

this year and thatxd includes equipment companies and the picks andxd shovels of the ener ñix solutions that builds transmission lines and there are also companies liker electric and ebbxd which help wh energy management systems and kelly, the biggest hurdle is getting the projects built. >> true. it seems apparent.e1 you've done a ton of reporting on this and this is quickly becoming the most important factor forjf so many different companies and commodities, even ande1e1xd all on the yet to be out equityw3 system. how it touches on everything from raw materials to construction to utilities, but i think the main thing is that we first need clarity on what this actually looks like and it really ise1xd permitting reform. executives from every single part of the energy transition and çóenergy, old energy, new energy all talked aboutq-r■ how can't get anything built here and so manyqp!q=1im■çó

involved no onet( wants to pay. >>q was it banana? >> it was t(nimbi. absolutely nothing anywhere near it's a funny saying. >> it's a sad reality.i/tr(t&há% >> yeah. it's the fact that when you have so many stakeholders involved z pay and there's so much paperwork and oversight and as the government, there ar] a lot of different agencies and these things have to go through and it's not relaxing permitting and it's streamlining and speeding it up. uñ"át mystery chat wexd showed? quantum services, i believe. >> not the ai ç$9ñ >>çóñi no. that's quantum. this is quanta.xd >> pippa, thanku■ you. pippa stephens. the first natinilxd scoops of svb's deposits and branches and first republic surging çó20% an now. other bank gains are much more muted and it'stúdlle1 before ba regulat

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. welcome back to the exchange. congress kicks off two days of hearings on the collapse of silicon valley bank with the focus on regulator and what they missed. martin greenberg said michael barr has the testimony out already. treasury under secretary nelly lane will testify before the

senate banking committee tomorrow. one of the lawmakers looking for answers, jim himes, congressman, welcome. >> that's right)pr(t&háhp &hc% thank you. >> it's good to see you again. i mean, it's hard not to cut to the chase and say are you going to raise the cap or not or is there going to be a tiered approach? i mean we can't kind of go on forever with this implicit -- former colleague of yours. you heard alex phillips says we can't go with this backstop of all deposits in the country. >> yeah. yeah. obviously, we can't go on forever. that's not what this is designed to do any more than the extraordinary measures put in place in 2009 were designed to last forever. let me also cut to the chase which is no, i don't think congress will act to lift the cap on deposits. i think there have been proposals, obviously, and the emergency activity, the emergency activity. i think there's some tough issues around this including whether -- who would pay and how

could you insure every dollar of deposit. i can tell you there's a lot of policy issues, you know, not a lot of direction in an already divided congress, so i think that's going to be a lot less the focus of tomorrow's hearing, largely about what went wrong and what can be learned so that it doesn't happen again. >> well, i mean, learned so that it doesn't hap again, comes down to the fdic cap or lack thereof, right? >> i don't think so. i don't think so. i think you had a management team that was presumably well paid, experienced bankers that didn't understand something your 17-year-old in a high school finance class understand, when interest rates go up, bond prices go down. that's esoteric to people out there, but that's the first thing you learn in high school finance. yet, rising interest rates were no mystery, they were not hidden from anybody, so there's an awful lot to unpack about how that was allowed to happen. secondly, we know that san francisco federal reserve in particular was in frequent

communication with silicon valley bank including raising all sorts of risk management issues. that's good but the obvious question, how do you raise these issues in a timely fashion because clearly they weren't raised or acted upon in a timely fashion. i think, look, i think that the deposit insurance number, that's something we should talk about but that is not core to understanding what happened and doing what we need to do to make sure it doesn't happen again. if you have more than the insured deposits at a deposit -- at a bank, if you've got, you know, a billion dollars of deposits you better understand that $750 million of those are not insured and act accordingly. >> if i'm not mistaken, regional banks only have 50% insured deposits. not like svb was that -- they were at 92, but the banks broadly speaking in this country only half of their deposits are insured, and it might be, you know, in bonds one day, could be commercial real estate or office space that creates losses. it could be people buying

treasuries and sucking deposits out that force people to realize other kinds of losses. i keep coming back to the cap. you don't want this blanket guarantee broadly but would you support a one-year guarantee while the details are worked snout. >> look, i think we have effectively have certainly a guarantee of the institutions that have been guaranteed. as you pointed out the banking sector seems to be stabilizing. hopefully this can come off sooner than later. my own bias is that treasures who get paid an awful lot of money to do what they do inside private corporations should be acting prudently and keeping massive quantities of deposits in banks uninsured irz not prudent behavior since you have other alternatives in the form of short-term treasuries or money market or et cetera. this will almost have the effect of migrate something uninsured deposits from the small and medium sized banks. we need to grapple with because

that may lead to further confrontation and that's an uncomfortable thing. the example is we should create more insurance with all the potential for moral hazard that would exist. >> if stanford bank, one of these kinds of local mom and pop institutions fluns problems you wouldn't support the depositors getting their money back? >> well n an emergency situation, absolutely, right, which is exactly what the government did in the middle of march. whether we want to say, you know, and there's proposals to increase the fdic insured amount proposals to lift the cap entirely, that seems that we should be thinking about look, i want banks competing partly based on their prudence and if you have a full guarantee of all deposits that competition which is very healthy, comes off the table. again, in an emergency of course, i want to make sure people aren't hurt badly, but we're talking about here, you know, the long run, the -- where we finally settle after the dust

settles here. >> we look forward to hearing more from the authorities involved. congressman, thanks for your time on the eve of that. we appreciate it. >> thank you. >> congressman himes of connecticut. we mentioned that suit against binance and a statement from the company itself saying in part, the complaint is unexpected and disappointing, but they intend to continue to collaborate with regulators. over the past few years they made significant investments to not have u.s. users active on their platform. binance defending itself on a day when crypto is broadly in the red and coinbase as well. that does it for us but up on your brain is an amazing thing. but as you get older, it naturally begins to change, causing a lack of sharpness, or even trouble with recall. thankfully, the breakthrough in prevagen helps your brain and actually improves memory. the secret is an ingredient originally discovered... in jellyfish. in clinical trials, prevagen has been shown to improve short-term memory.

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good afternoon. welcome to a busy monday on "power lunch"