breaking news this morning first republic bank is the third major u.s. bank to fail tin the past two months. the regulator set to have jeff penno -- jpmorgan chase take over the monthly jobs report and earnings it is monday, may 1st, 2023. you are watching "worldwide exchange" here on cnbc

good morning welcome to "worldwide exchange." i'm frank holland. let's chkick off the fumorning f the futures. jpmorgan chase taking over first republic we will continue to watch futures. the bond market this morning the 10-year treasury at 3.46 the 2-year treasury still above 4% something to watch as we continue to watch the market action today let's get back to the top story and breaking news. california regulators seizing first republic bank in what is the third u.s. bank to fail in the past two months. the second largest ever to fail in the united states the fdic says jpmorgan chase will assume all deposits in a statement, jpmorgan chase's ceo jamie dimon saying our

government invited us to step up we did our strength and business model allowed us to develop a bid to execute the transaction to minimize the cost to the deposit insurance found. key elements are the acquisition of firstrepublic assets which include approximately $173 billion of loans and $30 billion of securities. the assumption of $92 billion of deposits that includes 30 billion of largeback bank deposits jpmorgan chase saying it is not assuming first republic corporate debt or preferred stock. it will open for business with no interruptions for clients we will have more on the story throughout the hour. concerns of first republic bank as we kickoff a new week

and month of trading other issues this week for the fed meeting and risk of more rate hikes from the central bank and possible evennsuing recessi. we have earnings and forecasts of big tech this week. joining me to discuss is executive managing director eric beiley eric, good morning >> good morning, frank >> a lot to talk about this morning. i want your reaction of the takeover of first republic bank by jpmorgan chase. how do you see this playing out today? >> the futures you are seeing are a little down. overall, it is a positive for the markets. first republic has been in the zombie structure for a while now. to get clarity and finality on the bank acquired is a positive. jpmorgan chase is also positive. i think it is positive today

it will be interesting we had a very strong end of april the last two weeks with earnings as you stated, this is a big week with the fed meeting coming up >> eric, i want to key in on finality do you see this as the end of the banking crisis i would think one more bank taken over by a big bank would ramp up the concerns of the solvency >> i hope so i think if you looked at the earnings the first week in april from the banks overall, some of the names that were a concern held up okay you saw the stocks recover and stabilize. first republic after earnings did the opposite it cratered and it showed something had to happen. >> we are looking at the market reaction jpmorgan chase up 3% first republic down 35%. the stock is moving just a bit

what areas of the market do you see being potentially impacted by the deal being done >> financials. it will be interesting to see regional banks react today to the news somebody watching that sector closely and the sectors where the momentum has been. the nasdaq has been strong and the tech sector has been strong. see if this brings more stability to the markets >> we had concerns before the deal of the tightening of credit and the fed decision in a few days overall, how do you see the cost of capital picture moving the markets today and beyond >> i think it is a negative on the markets. the cost of capital is higher. banks clearly need to shore up their balance sheets lending standards will be

tighter. that higher cost of capital will flow through the economy you think it will slow things down overall it is a negative on equities >> i want your opinion on caterpillar and mcdonald's does this story, the tightening of credit conditions and rate hike potential, does that change your thesis at all >> these are all part of the dividend-t dividend-to-aristocrats strategy they increased for the last 25 years. i clearly think mcdonald's and pepsi has shown resill sience in the economy. long term i like the names >> first republic acquired by

jpmorgan chase eric, thank you. so much is shifting in the pre-market thank you. >> thank you when we come back on "worldwide exchange," what is next for first republic and what happens next. we look at the stocks and price action and next steps ahead for crypto. and later, recapping a big week for big tech and why nine stocks with make other break the market we have a very busy hour just ahead when "worldwide exchange" returns. stay with us i struggled with cpap every night. but now that i got the inspire implant to treat my sleep apnea, i'm sleeping much better. in fact, it's making me think of doing other things i've been putting off.

like removing that tattoo of your first wife's name. but your mom's name is vicky too! that's even worse. ( ♪♪ ) inspire. sleep apnea innovation. learn more and view important safety information at inspiresleep.com. (seth) not to brag, but i just switched to verizon. safety information (cecily) wow! (seth) and i got to choose the phone i wanted. for free. (cecily) not that you're bragging. (vo) switch and choose the phone you want, like the incredible iphone 14, on us. (cecily) on the network worth bragging about. verizon

welcome back if you are just joining us, the top story and breaking news. california regulator seizing possession of first republic bank the third u.s. bank to fail in the past two months and second largest ever to fail in the u.s. the fdic says jpmorgan chase wil will assume all deposits shares of jpmorgan chase up 3% shares of first republic down 30% this morning we are watching bitcoin this morning. asset up four months in a row. it hovers below $30,000 a coin regulators continue to put the

squeeze on that sector joining us now is tech reporter mackenzie sigalos. >> good morning, frank. >> give us an idea of what is going on in the cryptocurrency space. >> there are a couple of things going on here. you mentioned coinbase with the fight with the s.e.c there are concerns with investors if there were more draconian rules coming down the pike, it may be a headwind for the sector the first republic may also have bearing on price moves this week. >> speaking of the banking crisis first republic bank taken over by jpmorgan chase. how is the banking crisis impacting the cryptocurrency market we have been watching crypto since the collapse of silicon valley bank. >> you look at march 10th with the problems with silicon valley bank and it has been an upward

trend. bitcoin gained 22% in ma march alone. they see cryptocurrency and decentralized currencies become a safe haven play. the look at the kre against the nasdaq which represents the qqq and they are out performing. >> you see a dip before march 10th and the spike to the upside since. i want to draw down on this. we hear tightening credit conditions and possibly a rate hike and cost to capital turmoil in the financial sector. is this a headwind >> you mentioned we are getting a decision from the fed in the next few days. that has one of the biggest effects of outsized price movements and the cryptocurrency market the macro data points and moves by the fed ripple into the price

of bitcoin one thing to mention, frank, when silicon valley bank closed, some did signature and the liquidity fell out of the crypto market if you have a bullish buy, it is great, but selling means they move lower >> you mentioned coinbase. why aren't we seeing this with coinbase in the past, it traded in line with cryptocurrency. specifically bitcoin coinbase taking a dip to the down side. >> it goes to the legal fight with coinbase and s.e.c. a wells notice which is formal notice means a suit could be coming they may be forced to register as a national securities exchange which means they have to jettison the customer

business a huge headwind for the business you typically see upward price movement tracking with those crypto companies >> mackenzie sigalos, you will watch the moves all day long might be a long day for you. always great to see you. >> thanks, frank. coming up on "worldwide exchange," look at the global hot spots. we are watching developments to move the needle for the markets and your money and special attention on the cyber security sector stay with us this is ge aerospace,

advancing flight for future generations. ♪ welcome to a new era of flight. lomita feed is 101 years old this year and counting. i'm bill lockwood, current caretaker and owner. when covid hit, we had some challenges like a lot of businesses did. i heard about the payroll tax refund, it allowed us to keep the amount of people that we needed and the people that have been here taking care of us. see if your business may qualify. go to getrefunds.com. (seth) not to brag, but i just switched to verizon. see if your business may qualify. (cecily) wow! (seth) and i got to choose the phone i wanted. for free. (cecily) not that you're bragging. (vo) switch and choose the phone you want, like the incredible iphone 14, on us. (cecily) on the network worth bragging about. verizon

need relief for tired, achy feet? or the energy to keep working? there's a dr. scholl's for that. dr. scholl's massaging gel insoles have patented gel waves that absorb shock to hard-working muscles and joints, for all-day energy. ♪ we're going on a bear hunt. ♪ ♪ going on a bear hunt. ♪ to hard-working muscles and joints, bear? ♪ we're gonna catch a big one♪ ♪ we're gonna catch a big one. ♪ ♪ look out for the water. ♪ ♪ can't go under it. ♪ ♪ the rocks and the mud. ♪ ♪ can't go over it. ♪ ♪ gotta go through it! ♪ ♪ we're going on a bear hunt.♪ ♪ we're going on a bear hunt.♪ ♪ oh going on a bear hunt!♪ ♪ going on a bear hunt! ♪ ♪ yeah we're going on a ber hunt! ♪ -bear! ♪ going on a bear hunt! ♪ - such a good boy. ♪ going on a bear hunt! ♪ ♪ oh what a beautiful day.♪ [ dog barks ]

welcome back to "weatx. global hot spots could impact the markets and your money the war in ukraine continues to pose a threat to the u.s. and other nato countries in the form of hack groups the efforts are initiated and supported by the russian government it is not just russia, american officials are worried about china's potential invasion of taiwan and what it means for the networks of companies providing services to the military and infrastructure operators we want forget about north korea. that includes one back in march which north korea linked hackers attached malware to a tool used by companies like coca-cola and

mcdonald's and toyota. cybersecurity firms are confirming this attack and tomer weingarten is here with more. a lot comes with cybersecurity we mentioned threats right now, if you were talking to a ceo of another company of the biggest threat their companies should prepare for, which company should it be and which attacks? >> it depends on the industry and a difference of elevated viermts environments out there russia is a major source of a lot of the disruptive attacks. russia, as you mentioned some attacks are government aided and some are permitted by the government, let's say. if you look at china, obviously, political influence and ip theft. data theft that is what we are seeing from

the activity that is happening in the country iran is also a source of some disruption and you mentioned north korea. same there a lot of these have different motives. it depends on the industry again, the threat landscape is in an elevated state >> we have seen the transition to the cloud that heightened cybersecurity concerns we have taken steps to eliminate the chips which go to governments. how vulnerable is it in the united states for cyber attacks out there and is one region targeting the cloud structure? >> it is all the same regions and same actors. the cloud might not be more vulnerable than our premisedbinf them with the infrastructure which is heavily antiquated with

critical stinfrastructure, it creates more blind spots and tons of devices and legacy products in the environment. that creates a massive amount of data it is hard to cry to grasp what is in your network and how you protect it do i see everything? can i correlate everything and find it when someone who is trying to attack my environment and can i see what is happening and can i react fast enough? >> we have been aware of the cybersecurity issues around the globe since the start of the ukraine war. we have heightened awareness emergence of a.i. has brought on something. we have a shortage of cybersecurity professionals in the united states. according to the data, 700,000 positions are unfilled that is 40% of the positions unfilled in the u.s. how does a.i. change the

landscape when it comes to cybersecurity in the u.s. and globally >> significantly i think a.i. is really the answer right now to how you deal with an immense shortage you can do two things. one is up level the skill search every junior security analyst can now be ten times more productive or propficient in their work that is the a.i. angle the other thing with a.i. and the recent developments is scale and st. petersburg the ability to traverse that data at incredible speed sometimes in real-time on both fronts, this is the way to scale the sales force it is empowering you to be better it is entry level cybersecurity

analysts which are machine born born but you can scale with software. that is the way for us to fight back and bring order into what we are seeing in networks. >> tomer, the big story today is first republic bank. articles out over the weekend, indicates cybersecurity stocks have been battered how does the banking crisis impact the security sector >> i don't think there is a direct impact. it is a volatile macro environment. technology companies are impacted the financial sector is a big consumer of cybersecurity products there is some element of direct impact generally, it is a the volatile environment. a lot of customers from all industries are looking into the economy and they are obviously going to make sure they consume as much as they need so they are

right sizing investment. they are making sure they optimize as much as they can on their contracts. luckily, with some of the more modern cybersecurity solution, you are able to up level what you have in the environment and save costs some legacy items in the environment are expensive. there is definitely a move to modern infrastructure, but customers across industries are being prudent with the spend >> tomer, we have to have you back to talk a.i. and cybersecurity. i appreciate your time >> thank you straight ahead here on "worldwide exchange," the latest on the collapse of first republic bank, the jpmorgan chase takeover and the remaining risk to the u.s. banking sector. if you missed "worldwide exchange," check us out on your podcast apps

"wex" will be right back after this at morgan stanley, old school hard work meets bold, new thinking, ♪ to help you see untapped possibilities and relentlessly work with you to make them real. ♪ (seth) hi, cecily. i just switched my whole family to verizon. (cecily) oh, it's america's most reliable 5g network. and relentlessly work with you to make them real. (seth) and it's only $35 a line. (cecily) not that you're bragging. (vo) with verizon unlimited for $35 a line, your family now gets disney+, hulu, and espn+. all three included. verizon

it is 5:30 a.m. here in new york city. we are just getting started on "worldwide exchange. here is what's on deck breaking news. u.s. regulators seizing first republic bank in what is the third failure of a u.s. bank in months. a look at the sector dominating the market action and

why nine stocks are having an impact on your money. it is monday, may 1st, 2023. you are watching "worldwide exchange" here on cnbc welcome back good morning hope your day is off to a great start. let's check on u.s. stock futures. a move to the upside since we started a half hour ago. s&p, dow and nasdaq are in the green. we are looking at the bond market yields on the 10-year treasury are 3.46 we will watch that as we inch closer to the fed decision 2-year treasury still above 4% something to watch. let's get back to the top story and breaking news this morning. california regulators seizing possession of first republic bank in what is the third u.s. bank to fail in the last two

months jpmorgan chase says it is assuming all first republic deposits and all uninsured assets leslie picker is here with more on the story good morning >> frank, that is the uninsured liabilities. jpmorgan chase acquiring first republic from the s.e.c. the transaction is part of the competitive bidding process including $173 billion of loans and $30 billion in securities. the fdic andeven entered into a loss share agreement. many of those under water in the newer interest rate environment. jpmorgan chase will assume $92 billion in deposits, including, and this is what we talked about earlier.

$30 billion in uninsured deposits from first republic by jpmorgan chase and other large banks in an effort to prevent contagion effects from silicon valley bank and signature bank in a statement out early this morning, jpmorgan chase chairman jamie dimon said our government invited us and others to temperstep up we did our business model allowed us to execute a bid to minimize costs to the deposit insurance fund. fdic estimates the cost of the fund will be $13 billion jpmorgan chase will not assume first republic's corporate ded debt or preferred stock. shares plummeted 97%. it will go down as the second largest bank failure in history. larger than silicon valley bank.

>> a lot to digest here. nobody is more versed in the banking industry than you. what does it mean for the banking sector in the near term? what is the ripple effect? >> in the near term, it doesn't appear there are ripple effects. just looking purely at the way various regional banks traded on friday when these negotiations were going down. in fact, the kbw index was up. if you look at credit, there are issues which widened in the ri regional banks it is interesting to pay attention to those to see how the market is reacting now we see the deal one of the things and differences this time around is they did -- the fdic seized and sold the bank immediately with the hope of preventing uncertainty. >> we are looking at regional banks which is lower in the

pre-market i want to get back to the deal why did the negotiations take so long why the until the 11th hour? >> it is a great question. these issues are not necessarily simple we are not talking about acquiring the equity or corporate debt in a clean transaction. this is something that went into receivership they have a lot of assets and loans are under water because their business model was making loans to wealthy individuals some of the jumbo mortgages which are under water by current standards. they took out loans from the federal reserve at higher interest rates than they are generating on the loans. they are looking at an unprofitable situation and it gets to be messy you have jpmorgan chase who has seen this movie before they come in and they have at least experience knowing how to

do this clean up not everybody does so they had to assess this situation to see what is means for the business model and then bid. both the fdic and jpmorgan chase said they were competitive the process was competitive with first rooepublic. >> leslie, a lot of talk of the size of jpmorgan chase largest size with assets and now holds 10% of all u.s. bank deposits what does this mean for the percentage of deposits that jpmorgan chase holds san >> itex- -- it exacerbates the e the big are getting bigger there is comfort in that idea where regional banks and an investors are wondering if that is the next domino to fall there is a bifurcation in the

banking system which is exacerbated by situations like these and people wondering if i should take my deposit out it requires the regional banks to increase the amount of interest that they are paying for those deposits to make sure they can keep deposits. the big banks is more of a safe place to store money >> let's talk about banks broadly. jpmorgan chase in a statement said it created a deal to limit the hit to the fdic balance sheet, but still hit it to $13 billion. for reference, silicon valley bank cost $30 billion. they have to help the regulator make up the shortfall. can you translate that to the audience especially with the market action today >> that is right a lot of equations at play here. the fdic is comprised with big

banks contributing a calculation in terms of the bank size for how much they put into the fund. when you take money out to pay out insured deposits for certain failures, then the larger banks have to put money back in to make up the difference so the banking system is able to abide by the idea that there are insured assets up to $250,000 per account. when you have failures like this, it is largely up to the bigger banks in order to fill that gap what is interesting about this situation as well is there were 11 firms that put in $30 billion worth of deposits to assure c confidence in first republic this situation is where you were looking at a hit to the insurance fund from the fdic to make up the difference also, you have the $30 billion worth of deposits hanging in the balance as well. in order to ensure those are

insured and, you know, safe and sound, this is the situation that they came up with and jpmorgan chase is assuming the $30 billion of deposits. you don't need to tap into the fdic fund for that >> leslie picker, thank you so much turning attention now to earnings big tech leads stock higher with the bets on growth continuing to be the hottest growth on the street when it comes to tech, nine names matter for the markets amd, amazon, alphabet, microsoft, apple and more making up a quarter of the s&p 500 index market cap and playing an outsized role in the way it trades according to bespoke, apple and microsoft accounted for 35% of the s&p gains. if you they in nvidia and meta

to the mix, you are looking to the upside joining me now is alex kantrowitz >> good morning, frank. >> we are looking at the market move to the upside so far this year what do you think of the mega cap names being a catalyst for the move >> it is interesting they shouldn't be the ones moves. we are in a higher interest rate environment where you imagine tech offloads that responsibility of driving the market up to other companies you see the companies like apple and microsoft driving the s&p and market forward on one hand, it is the question of where is everybody else and on the other hand, it is a testament to the resilience and continued growth in times that don't favor them. >> i understand you are saying this is counterintuitive for the companies to be out performing the strong balance sheets are

the reason is there a reason why a.i. is feeling confident in tech? >> they continue to grow most of them continue to grow. that is huge you look at the company like amazon which brought in $127 billion last quarter and jumped 9 9% from a year earlier you had the pandemic highs and it would be tough for them to measure up to the base they set previously they continue to surge forward meta has returned to growth after a few quarters of revenue decline. there are strong signs these businesses are, you know, still able to weather the economic conditions that shouldn't have favored them you look at the interest rate, but the high base they set during the pandemic and still able to surge forward. >> i want to look ahead to apple. is there anything you can read from the earnings last week to give you insight into apple this week for example, google thehas a hue

search business. microsoft has a big device business does that translate to what we will hear from apple >> if you are apparele and comi after the earnings from the fellow big tech companies, you can't afford to miss of course, apple has its strengths. last quarter was pretty bad for apple with beating market expectations it missed on everything. you don't want to do that again. especially two quarters straight yes, there is an ad business with google and device business with microsoft think about apple. it is exposed 100% to the slowdown of consumer devices that will present an extra struggle for the company to overcome this quarter. >> one thing i want to look at is amazon. you gave us grades on the tech

earnings report. you gave amazon an "a. the beat on ad spending is something to watch what does that tell us to the market ads that is the big part of the story with apple >> for amazon, you know, it is some of the search advertising is moving from google to amazon. you look at google they had relatively slow growth in advertising of 1.8% that was in the 20% range in the previous comparative quarter now you see the growth in advertising with amazon. what is happening here maybe people who want to be close to the purchase inside google and now want to be closer to amazon. this is as good as it gets as close to that as possible on. move budgets to amazon amazon's ad business is a strength for years it hasn't been talked about enough, i don't think. i think this is starting to be

strength on strength where amazon's business is snowballs once it moves, tech watches. >> alex, thank you great to see you coming up on "worldwide exchange," opec surprise cuts take effect today. have traders priced it in or are more gains coming in the sector which is treading water? pippa stevens is here with the latest on that stick with "wex. what do you get from the morgan stanley client experience? listening more than talking, and a personalized plan

♪ to guide you through a changing world. ♪ go. go air that runs factory. go sensors and software. go find leaks. go fix-em. emerson technology detects compressed air leaks to save manufacturers, like colgate, over 20% in energy costs. go brush your teeth. go boldly. emerson. (vo) sail through the heart of historic cities and unforgettable scenery with viking. unpack once, and get closer to iconic landmarks, local life, over 20% in energy costs. and cultural treasures. because when you experience europe on a viking longship, you'll spend less time getting there and more time being there. viking. exploring the world in comfort.

(swords clashing) -had enough? -no... arthritis. here. aspercreme arthritis. full prescription-strength? reduces inflammation? thank the gods. don't thank them too soon. kick pain in the aspercreme.

welcome back to "worldwide exchange." treasury out with a statement on the deal moments ago treasury is encouraged this issue was resolved in the manner to protect all deposits. this is the deal where jpmorgan chase acquired assets of first republic bank. americans should feel confident with the deposits and the banking system to fulfill the function of credit to families and businesses looking at the moves of jpmorgan chase. up 2.25% off the highs from early this morning. first republic bank moving down 40%. turning attention now to the oil market and energy market it has been roughly one month since opec plus announced a cut

of 1.1 million barrels a day that brings the cuts by opec plus to nearly 3.7 million barrels per day by the end of the year that is equal to 3.76% of global demand the move caused a spike in oil prices, but with wti crude u up .50%. a big story today and global economic slowdown. let's talk about this with pippa stevens. pippa, you have been all over this we were all thinking we would see a spike after the production cuts now they take effect, what will we see is that cut already priced in or could we finally see the spike people have been expecting >> oil has been volatile it spiked after the cuts were announced. since then, the opec cut has

taken the backseat there is more concern around the slowdown we have the fed decision on wednesday. we have weak manufacturing data from china last night. the opec cuts are one part of the story. remember, we are not talking about all that many barrels given opec was under producing given the quotas opec announces the big actions and take barrels off the market. countries like saudi arabia are able to do that with the buffer and high production. some smaller players that rely on the revenue from oil production are not able to do tha that you can't just flip a switch so there are a lot of factors at play with oil production it could be 3 million barrels per day, but this price cut has been priced in we have seen how oil has rallied and come back down after the

market digested that news. >> some were already producing under the quota. the impact may not be as big as the headline sounds. one thing i want to talk about is china this morning, we saw reports that the manufacturing sector was contracting. over the weekend, china beige book released a report saying revenge spending is ramped up and travel has ramped up how big is a story with the oil market in the second quarter >> china is the story. everything is resting on china all of the oil bulls of the year have been pointing to the demand recovery china is fueling oil prices. so far, we haven't seen that we had weak travel numbers and weak manufacturing data as you noted. everything is resting on that market they are the world's largest oil importer imports have gone up, but so has the fuel exppexports. where does the demanded stand? it means there is not the demand

recovery in china. everyone is pointing to the back half recovery. they are instrumental to the market and with russia's i invasion of ukraine, we see the shuffle of the global flows. we also talk about that opec cut and russia production is more resilient than people thought when they invaded. that is another key part of the story. oil is still on the market and it is going to new places. >> one of the things i want to talk about is the macro thing. the freight recession. i talked to the u.p.s. ceo she talked about the global volumes of frateight. another big trucker jb hunt calling out an oil recession >> you have been all over this what we have seen is heating oil futures for diesel has come down a lot. there is weakness in the diesel

market jb hunt ceo said people are looking for services and not so much goods that is leading to decline for diesel that factors in oil. they are not there to support the price of oil there are all of the parts of the oil market right now that are flashing different signals that is leading to traders saying do i want to be in this china demand recovery and federal reserve. >> pippa stevens, finger on the pulse. people are worried about gas prices pippa stevens, thank you. ahead on "worldwide exchange," how today's deal for first republic will shape the trading day ahead. we have sarat sethi weighing in coming up. first, cnbc is celebrating asian american pacific islander month in may here is amazon prime video president albert cheng.

>> i'm proud of my culture and principles in which i was raised i'm proud of being born as an american where i can embrace all of the positive qualities that make this country unique you know, as a community, the asian culture or community never really had a voice what i'm happy to see is tha voice has grown louder and prouder because of the attention on individuals and community that's been given a profile on the world stage. what if beer could get to the right place, at the right time, all the time?

not like that. like this. getting this beer... all over the world... right when they need it. yes, with ibm consulting, ai-powered software can help automate your supply chain— so beer can be ordered, produced and delivered more efficiently. so happy hours keep going. salud! and the beer keeps flowing. that's the automation solution ibm and a global beer company created. what will you create? ibm. let's create. asking the right question can greatly impact your future. - are, are you qualified to do this? - what? - especially when it comes to your finances. - are you a certified financial planner™? - i'm a cfp® professional. - cfp® professionals are committed to acting in your best interest. that's why it's gotta be a cfp®.

(vo) verizon small business days are back. april 27th through may 3rd. get a free tech check and special offers. like a free 5g phone. get started today with verizon business. it's your business. it's your verizon. with gold bond... you can age on your own terms. retinol overnight means... the smoothing benefits of retinol. are now for your whole body. plus, fast-working crepe corrector diminishes wrinkled skin in just two days. gold bond. champion your skin. welcome back to "worldwide exchange." time for the "wex wrap-up. jpmorgan chase acquiring all of

first republic deposits after the california regulator took control of the bank this morning. china manufacturing activity shrank last month and growth in the service sector slowed. more signs of the uneven economic recovery. chip maker arm filed for an ipo. it plans to raise between8 billion dollars and $10 billion. charlie munger warning of trouble for the u.s. commercial property market. munger said u.s. banks are packed with bad loans which could be vulnerable. munger said it is not as bad as 2008. open a.i. closed the latest funding round adding $300 million. that puts valuation at $27 billion to $29 billion some of the firms picking up shares include tiger global.

microsoft has ponied up $10 billion in january. and "super mario brothers" tops the $1 billion mark in the box office receipts. universal is the parent company of cnbc. we are gearing up for the trading day. we get pmi data and ism manufacturing index and earnings from norwegian and mgm tomorrow is march factory orders and labor turnover survey. pfizer and ford and uber and starbucks are reporting. the fed kicks off the two-day policy meeting on wednesday with, services pmi and ism index. qualcomm and kraft is out with the earnings the fed decision is announced at 2:00 p.m. and followed by the jay powell conference at 2:30

p.m. it is the ecb's turn on thursday with the decision expected at 8:30 p.m we get results from ab-inbev we have friday jobs report at 8:30 a.m. and we have earnings from cigna and warner bros we have the matter of first republic let's bring in sarat sethi to guide us through the trading day ahead. he is the partiner and manager f his firm how does the jpmorgan chase deal influence the trading day ahead? >> i think there was uncertainty here after the earnings, investors were concerned what with will happen here. you were seeing deposits leave and people and wealth management practice leave this takes away with the

uncertainty for the market it takes away the troubled bank. will there be ramifications? what is the consequence? i think what you have seen now is the agreement where the depositors will be taken over and you have some type of guarantee. i think that is important for the market because you just don't want to see things unravel and people say what will be the next one >> we are looking at the futures, sarat they are moving to the upside a short time ago now flat between the negative and positive what should we make of the deal being done does this create finality for the sector or do you see more questions? >> i think the news came out friday afternoon it was already embedded in the market i think this will provide some type of floor for the market now the question is, frank, the

focus on other banks we have been through earnings for banks. are there other small or mid-sized banksout there i think investors will look at it and at this point you provided a floor we look forward to the things you were talking about a couple of minutes ago the leading economic indicators. the softening data is coming out, but the market hasn't discounted yet the question is do the cyclicals start discounting it things have been looking up for some of the growthy stocks. >> sarat, you gave us stock picks before the news. where would you put money to work in the market today on the back of the news >> so, you know, we have been positioned more defensively into consumer staples healthcare and yutilities. i think valuation is important i think earnings growth is slowing down unless you are really growing faster than the market, i think investors will take why am i

paying a premium i can get 4% or 5% in the bond world or companies at discounts in the market which are growing as much or higher. >> hard to not look at the short-term bonds sarat sethi, thank you for being here one last look at the futures. pretty much flat right now they moved a bit to the upside now the nasdaq is down to the down side slightly in the red. that will do it for us here on orwi exchange. "squawk box" is coming up next (seth) not to brag, but i just switched to verizon. (cecily) wow! (seth) and i got to choose the phone i wanted. for free. (cecily) not that you're bragging. (vo) switch and choose the phone you want, like the incredible iphone 14, on us.

(cecily) on the network worth bragging about. verizon we moved out of the city so our little sophie could appreciate nature. but then he got us t-mobile home internet. i was just trying to improve our signal, so some of the trees had to go. i might've taken it a step too far. (chainsaw revs) (tree crashes) (chainsaw continues) (daughter screams) let's pretend for a second that you didn't let down your entire family. what would that reality look like? well i guess i would've gotten us xfinity... and we'd have a better view. do you need mulch? what, we have a ton of mulch. we moved out of the city so our little sophie could appreciate nature. a literal ton. but then he got us t-mobile home internet. i was just trying to improve our signal, so some of the trees had to go. i might've taken it a step too far. (chainsaw revs) (tree crashes) (chainsaw continues) (daughter screams) let's pretend for a second that you didn't let down your entire family. what would that reality look like? well i guess i would've gotten us xfinity... and we'd have a better view.

do you need mulch? what, we have a ton of mulch. good morning breaking news. regulators seize first republic bank and accepted a bid from

jpmorgan chase to assume depo deposits and assets. jpmorgan chase's ceo jamie dimon will be on the media call later this morning how another bank failure factors into this week's fed decision former fed chair roger ferguson will join us it is monday, may 1st, 2023. "squawk box" begins right now. good morning welcome to "squawk box" here on cnbc we're live from the nasdaq market site in times square. i'm becky quick along with joe kernen and andrew ross sorkin. here we go it is monday, may 1st. u.s. equities are a mixed picture. dow futures up 20 points