soc gen and bnp and natwest. all banks moving to the underperformers on the board this morning there are significant concerns we have some commentary around the bond the 181 bond it is trading action to report unicredit 6.625 with the june call option is up slightly to 34.9% at the open from 34.5% of the small movement there unicredit has done a lot ofwor behind the scenes. investors have been buying on the stock side there is a focus geoff, i want to come back on this point we have a question over the buyer with the european banks. saudis have been dealt a fierce lesson here. saudi national bank. lost 80% in credit suisse. these industruments are high investments. the wipeout over the weekend sends a strong message >> reporter: yes, that is what i was just pointing out, karen these instruments that were created out of the last financial crisis to provide some loss absorbing capital for the banks were considered, i think, by most of the people that owned them to be okay, less secure than senior bonds. nobody expe

bnp and the market share they have in the united states.here is that market share growth going to come from? jean-yves: supporting domestic clients, but in a targeted way. know where we can be relevant, but supporting their needs in capital raising euros. as i mentioned, targeting the proper sectors where we can globally support them effectively. and on the product side it is around corporate banking, specifically supporting them in their short-term funding, bridging some of their operations as windows at times might not be the best to raise capital. we have been very active being one of the largest trade banks in the world in navigating, helping clients navigate the supply chain disruption. switching from just-in-time, which is not possible, too just in case. kriti: so it sounds like more -- jean-yves: a corridor for the bank is a very important part. sustainable finance for the bank is in the dna, our low carbon transition strategy is working well, and the train has left the station for clients on this matter. kriti: more deals necessaril

bnp paribas these a terminal rate of 4%.services data out of spain, firmly expansionary territory. basic resources at the top of the list gaining 1.3%, three sectors in the red. across the benchmark, gains of .5%, yields coming off between one to two basis points, u.s. futures softer after the rally we saw yesterday. francine: citi will cut 1% of its workforce, with those in the investment banking division the most affected. the cuts come weeks after jp morgan cut hundreds of mortgage employees. >> we are seeing banks cutting back on headcount. >> when we embarked on our journey, we were 20,000 workforce across the region and said we would reduce by 1000 a year. and this year we will go up to 1500 to year as we simplify. >> we are continuing to see very strong employment. that's going to change. >> that creates opportunity for people like us. >> we are not planning major layoffs, but we will continue to look at managing efficiency of our business. >> job cuts is not necessarily the best instrument for a cyclical process. >>

we discussed with greg boutle bnp paribas of. -- greg boutle of bnp paribas. the semiconductor index is down. first citizens stepping in for svb. yields higher, risk off going through the bitcoin, below 27,000 u.s. dollars this is a week where we are antsy, waiting for the amount of fed speak to come. this chart tells the story of the yields moving in relation to s&p futures. we thought we would get a bullish tilt. that is the macro picture with movers. >> a tech company working with nonprofits. the stock up nearly 12%. it rejected an unsolicited takeover bid from clear lake capitol for $71 a share. they said it is too low and shareholders agree. guggenheim raise the price target from nine dollars to $12. . a good day for snap. the story of the day is what is going on in the banks. first citizens will buy svb. lots in the deal for citizens in particular, one of the top 15 largest u.s. banks. stock is up 48%. that is spring a relief rally for first republic. shares higher by 16% at the moment. thanks of the big outperformer today. over the past month, a totally

bnp down more than 11%. commerzbank, down almost 10%.the banking index in europe it is down about 7% for the biggest drop going back year. we are looking at a situation where people are trying to extrapolate out what it would mean with respect to counterparty risk, with respect to other risk that is the -- that is exacerbated by rate hikes. trying to gain that out in europe and the u.s., then putting that into a scenario that used to be inflationary, and now suddenly is not. jonathan: it is so difficult. no one knows. tom, for that reason you de-risk, and ask questions later. we have had a guest after guest now talk up the trade of the year so far, which had been european banks. tom: in the crisis we are in you look to institutions, and i think everyone, we are waiting for regulatory authorities to speak. they did that in america in a measured way. we watched take by take over a long weekend -- tick by tick over a long weekend. in europe there is silence. we are going to continue to monitor credit suisse. jonathan: down 21% now. tom: it

we heard about bnp paribas and santander considering the market timing.he federal reserve getting involved, which brings us to our stock of the hour. it is credit suisse. dropping to a record low amid the uncertainty surrounding the bank. paul davies weighed in on the bank could withstand a lot more deposit outflows and some serious interest-rate stress. however, client-side investors need to keep believing this for credit suisse to see out the turbulence." paul joins us alongside allison williams, bloomberg senior analyst for investment banks and asset management. paul, i loved the title of your column today. credit suisse needs friends now more than ever. does it have any? paul: well,i'm sure they must have some somewhere but they are not treating the well today. especially the chairman of its largest shareholder, coming out this morning and saying they were not prepared to put more capital into the bank if required. i think he was talking about limits on the amounts they could owe, they do not want to go about 10%. it was still a very badly time to com

you mentioned bnp paribas.pare that to deutsche bank, which is at 170 for obvious reasons, but even jpmorgan chase is at around 70 to 80 basis points. you're talking about this relativity playing out about who is more exposed or less. the european banks, for the most part, don't seem to be as effected. >> we're more focused on the cds of subdebt. it's broken up at deutsche bank into seniors, cds and seniors, and cds on the subdebt, which is trading beyond 500 basis points. that's blown out from 200 basis points to 500. we're watching cds, the entire capital structure. that part of the capital structure is a bit more relevant to -- >> you said it was a well-run bank. >> it's a well-run bank. >> so it is an opportunity here? >> it's a complex -- deutsche bank is too big to fail. it's 1.3 trillion in asset but it's essential to the german economy and one of the most relevant banks in all of europe. it's not going to fail, but will it need assistance? i don't know. we're rooting, praying for the success of deutsche

the wimbledon champion saw off aryna sabalenka in the bnp paribas final in indian wells.through in straight sets. sabalenka hit 10 double faults in the first set, which was decided on a tie break, after an hour and 19 minutes. the final score 7—6, 6—4 to earn the 23 year—old her 4th career title and first of the season. 19—year—old carlos alcaraz has won his third atp masters title, by beating danill medvedev in the bnp paribas final in indian wells. he didn't drop a set all week and saw off the russian, who was on a 19—match winning streak, 6—3, 6—2. it was a totally dominant display by the spaniard who also becomes the new world number 1. you can get all the latest sports news at our website — that's bbc.com/sport thanks for watching. all of the top business stories next. a big week of activity to rescue credit suisse. we go live to switzerland in a moment. see you then. hello. we'll need our raincoats and brollies this week. it really does look very unsettled indeed, and especially wet in western parts of the uk. monday is no different. i don't think it's going to be r

including bnp paribas and societe generale face collective fines of more than a billion euros as part investigation into tax fraud and money laundering. for more, let's bring in our bloomberg french finance reporter, raj. alex, what happened yesterday? there was a lot of noise around rates. >> the french prosecutor's office raided five banks across paris, namely bnp, its unit, hsbc and it is si -- natixis over suspicion of tax fraud. this leads to a strategy that allows investors to talk to other investors in order to avoid taxes. this was widespread on trading floors because it was a great area but french authorities change their stance over this practice. investigations opened from december 2021. more than 150 investigators were involved, several magistrates but also prosecutors from germany which shows european authorities are collaborating on the issue. the germans are focusing on similar get different trades which are referred to as comics trades. dani: this story has been circulating for some time, but now it is happening at a time when everyone is so worried about the banking s

tom: when you look at the actions of the likes of bnp paribas and santander, even traders in south korearying to reduce their counterparty risk to credit suisse. how significant do you think that risk is at this stage, particularly the vulnerability of the european banking space? fabiana: we are in a better space than we were in 2008 because the reactions you see from the counterparties stem from their. we learned what to do when something happens in order to avoid counterparty risk and avoid a domino chain reaction. for now, it does not look like this is a fundamental issue. it does not look like there is a credit issue. it looks like balance of three rules were implemented because we are seeing those issues being implemented to the fullest at large banks, but again, sentiment is a powerful driver so we need to make sure the central banks offer enough safety nets and also enough comfort to investments -- to investors that they will shore up, whatever downfall there will be. tom: would you buy european banks at this point? fabiana: again, right now is time to stop, assess what is happeni

that is not helping bnp paribas. a sickly all the banks are down this morning, so it is not necessarily just a credit suisse story. -- basically all the banks are down this morning, so it is not necessarily just a credit suisse story. all of the banking sector is down this morning after we saw the turbulent session in the u.s. yesterday. turbulence is the name of the game. there is no one else would rather navigate it with then blackrock's senior investment strategist, laura cooper. let's put aside the banking stocks for the moment because the big trade in the u.s. has been one of not believing the fed, expecting they will cut, pricing more rate cuts. that has helped stocks in general, helped risk assets paid would you want to buy into that trade too? samuel: -- laura: at this point know, but it is the decoupling of a number of factors we have seen in the markets. you alluded to the fact markets are pricing for economic shock when we look at rates and the degree of pricing there, but meanwhile equities are still fair

we discussed with greg boutle bnp paribas of.

b para bout and societe generale were targeted -- banks including bmp perry bach -- banks including bnp paribas. they accused of helping customers avoid paying tax. >> a sticky situation for banks as investigators searched offices across the paris area tuesday. the raids the climax of an investigation into alleged tax fraud and money laundering using a strategy known by its latin nickname, when foreign investors in french companies temporarily transfer ownership of their shares to french banks in order to avoid higher taxes on dividend payouts. the practice is similar to a practice in which investors use shortselling tactics to claim multiple dividend tax rebates when only a single rebate should have been due. a seminal investigative report published in 2018 by a group of european media outlets estimated fraud has drained more than 140 billion euros from european treasuries, particularly in germany. tuesday's rates are the latest stroke of bad luck for the global banking sector, already battered by a crisis of confidence that has seen spasms of selling in u.s. regional lenders and finis

2, registered there, reported that the company fired all employees. years, when he was opening the bnp. drozdner bank was one of the first banks in russia with completely foreign capital, and then varnik was a member of the supervisory board of the bank of russia, the boards of directors of transneft, rosneft and rusal. the russian stock market has been growing for 5 days in a row, but now the growth of european indices is slowing down , oil is getting cheaper, and therefore the investor in the domestic market is already moving to profit-taking and therefore the shares are selling the euro. yesterday it was trembling against the ruble and rose above 84 for the first time since april last year, but today they are already trying to take the ruble. revenge. dollar, 8 minutes and 77 2.20. but the euro, although it is getting cheaper, still holds the line of 84. the central bank of the united arab emirates announced that it was revoking the license from the russian mts bank to carry out banking operations in the country ; now mts bank must close a branch in abu dhabi. within 6 months this h

suisse faced difficulties from dochebank to bnp paribo hsbc when we hear about credituis support. bailout from the swiss national bank at this stage. we don't know and it's not certain, because if it's true then i sure not only loan suiza will ask for support. we will hear similar from many other banks. you are absolutely right. all major european banks are very strongly intertwined with each other , the european cent will try to stop the chain reaction. a bank from which some action has long been expected in connection with uncontrolled inflation after an extraordinary meeting of the central bank. announced a 3.5% increase in three key interest rates on loans will this be enough will be monitored in dynamics according to forecasts, inflation will remain at a very high level for too long high, the growing level of uncertainty reinforces the importance of our rigorous, data-driven approach to key rates without waiting for lagarde. asian stock exchanges closed in the red today quotes of the largest french banks in a confident flight. down. neighbors paradise -12 and 8 bnp -10 even a

for the team at bnp, carl riccadona is looking at 575 on peak funds.bout 16% from the close yesterday. lisa: what is the trigger for the reversal? we price and higher rates and earnings expectations that are coming down with margin compression we have seen. what's the trigger now. jonathan: 575 and growth decelerates, that's the view. they don't believe that the numbers we saw in january will carry on. tom: i would suggest there is a bet we will have disinflation. it's still in the market. jonathan: do you need growth to get hammered? tom: the growth slowdown is not so much and maybe disinflation is not that much. lisa: if you get declining growth for the rest of the year and then people say maybe inflation is not so bad and maybe we can ask to go down then reit's come in and you have the beginning of a new cycle. the bulls are arguing that it takes the pressure off the fed and accelerates some sort of pause. jonathan: if you've got that backdrop, many people would be screaming. can you get bullish earnings? it's hard. lisa: especially when you've had

it's just bnp employees scamming the stock markets.th this bbc, but the matter is still, as they say , the american catastrophe smells like kerosene for europe, as it has already been dubbed in the media, brought structural financial problems western system of banks, which are accustomed to regular infusions from the state. they fell down as soon as the first difficulties appeared. and now it concerns not only the usa but also europe has become swiss. with a bank with a 167-year history, it collapsed as soon as it faced a large -scale asset stripping, a cold albotnik, and this is very reminiscent of the situation in the usa during the 2008 banking crisis, then large banks were also in fact ordered to buy troubled banks, smaller ones, not a consistent policy of the european authorities endless sanctions against russia protracted conflict. in ukraine, demands higher rates from the other side. a miraculous rescue of the banking system at the cost of an infusion of hundreds of billions of dollars, as they are doing now in the united states

largest financial structures of france fell in price, in particular, with the saint , ralph lost 12% bnp, 10, but before that, switzerland's second-largest paper bank of the country's loans in a few hours fell by almost a third, which led to a decrease in the european banking index. seven percent of investors were frightened by poor reporting and the refusal of the largest shareholder of a loan from the national bank of saudi arabia to deposit additional funds on the balance sheet. according to reuters sources. after that, at least one foreign government and one large bank put pressure on our tsarist authorities to rectify the situation. vladimir putin appoints acting governor of chukotka autonomous okrug vladislav kuznetsov before he was the first deputy chairman of the government of the lc roman kopin who previously headed tickling dismissed at his own request the president has already held a working meeting via video link with vladivostov kuznetsov you know about possible administrative personnel decisions, uh, and related to the proposals that can be made for you. how do you feel abo

in particular, in france, firefly stocks lost 12% and bnp 10%.h parliament in spite of the mass protests today must accept the final version of the scandalous pension reform project. in the event of a failure in the vote, president macron has already threatened to dissolve the lower house, but residents do not intend to back down. they will enter new demonstrations on the eve of the action against pension reform. they swept through all the major cities of the country, one of the largest demonstrations was held in paris by young people, the bus stop thug set fire to garbage cans , law enforcement officers threw firecrackers and bottles, protesters demand to reduce the pension under the age of 60, the french are also unhappy with the fact that hundreds of billions are allocated for defense, but there is no money for the social sphere. hallelujah the legendary chegem gorge is becoming more accessible and safer. now nothing has started yet, the tourist season is a lot of work to strengthen the riverbed and reconstruction of the mountain road. every y

bnp paribas off. ing in the netherlands down by 7.3%. another bad day for the banking stocks in europe francine. francine: thank you so much. let's bring in our swiss bureau chief. claudia, thank you for joining us. there's a feeling they did a good job. >> that's the question that needs to be answered the next couple of months. i think certainly there's some people who are raising questions whether they were on the ball the whole time. the head of finma has been in charge since november of 21. the finance minister did a very good job of the press conference. he's been finance minister for 2.5 months. on the other hand, thomas of s&p has been around -- smb has quite a bit of experience. francine: we tried to get a sense of if they were happy. if you take a step back and i know we are in the thick of it. the share prices may be not doing what ubs would like it to do today. what would be the shock in switzerland and months to come. this is very quiet. it's a fairly insulated quiet country that's very proud of its banking history. claudia:

tom: we will have mike mckee hanging us and joining us is carl riccadonna with bnp paribas.lude to the limits of productivity. lots of partial differentials there. the bottom line is people like you are hoping and praying our post-pandemic productivity and efficiency is good. that it tells me, maybe not. through productivity into this about, a debate. carl: the productivity numbers are actually deep into negative territory. we have very strong job gains and an economy that is slowing. that is not really sustainable but it can run that way. the inconsistency can last for at least multiple quarters. tom: does unit level cost to a wage price spiral? doesn't lead to a gloom that we are not going to get wage growth? carl: let's look at that labor which cost. is 6.3% as i see on the bloomberg table here. 6% plus, you look at the cost index. these are the elements of wage price spiral and i know chair powell doesn't think we are in the present spiral but what you are there it is too expensive. this factors into how the price is -- michael: productivity decreased from 2021 to 2022.

bnp paribas says they are reassessing operations post-pandemic. sony urge the u.k.g to block microsoft's activision blizzard deal or force it to sell the blockbuster game call of duty and says the playstation maker says no other will prevent harm to the consumers in the cloud gaming or consol markets. microsoft is the deal cannot be completed without call of duty. shares in new zealand zero jumped in sydney after ed announced major job cuts. it plans to cut 800 roles, 17% of its headcount. layoffs are expected to streamline its business and boost profitability and marks the first major shakeup under the new chief executive. >> these are some of these stocks we are watching ahead of the market opening in hong kong and china, asian semiconductor stocks and focus as the netherlands prepares for more restrictions on certain chipmaking machines to china. watch as tsmc, home hi, and others -- hong hai, and others. shares of asian construction and mining makers may move as caterpillar flag strong demand for construction equipment. >> taking a look at the markets trading as

bnp. santander is p3% higher. we had a lot of investors wondering what the exposures are to credit suisse some of the names coming out today explaining the extent of any contagion or spillover to their banks. credit suisse is 22.5% 4.8% on ubs. hsbc is 3% higher and barclays is 3.4%. in terms of the u.s. banks and frankfurt listing today, don't forget the fears rearing their head yesterday some in the u.s. names faded and investors circled back to the earlier fears from the week. of the big banks, jpmorgan chase is the only one soggy at this hour stronger range on wells fargo in particular 1.6% higher on the frankfurt trade. goldman's is near 1% jpmorgan chase in the red to a .25% on bank of america. >>> the hsbc uk is reassuring clients deposits are safe and loans supported. the memo to staff is operations continue as normal as the takeover process continues in a first on cnbc interview, hsbc uk ceo walked us through what happened. >> woke up saturday morning and saw the announcement and after 10:30, we were in t

. >> then you go back and start to make these comparisons to 202008 remember bnp np paribas. >> that'srue. >>> coming up, regal bank stocks coming up high we'll dig into that. and later michael novogratz talks more you're watching "squawk box" on cnbc >> announcer: squawk planner is brought to you by workday, the finance and planning system for a changing world you're a rock star. you are a rock star. no more calling co-workers rock stars. look, it's great that you use workday to transform your business. but it still doesn't make you a rock star. so unless you work with an actual rock star. hi, i'm ozwald. hello ozwald. pam, you are a rock- i wasn't going to say it. ♪♪ good luck. td ameritrade, this is anna. hi anna, this position is all over the place, help! hey professor, subscriptions are down but that's only an estimated 15% of their valuation. do you think the market is overreacting? how'd you know that? the company profile tool, in thinkorswim®. yes, i love you!! please ignore that. td ameritrade. award-winning customer service that has your back. ♪ this feels so right... ♪ adt s

as you can see, behind meet you can see this branch of bnp paribas has already barricaded itself aheade protest taking place this afternoon in paris. the police chief of paris has said there will be at least 5000 police officers and an anti-riot squad in paris. 13,000 across the country to try and contain the violence we could see during this pension reform protest. the tension is not calming down. you still have disruption as well in the transport sector. in schools, you have 30% of schoolteachers on strike today. also, disruptions when it comes to gas stations. a reminder of the shortages we had last fall. about 15% of gas stations in france are currently missing one type of fuel. one improvement however on the garbage situation in paris. i have seen a lot of garbage trucks actually making rounds this morning. and the garbage piles actually started to reseed in central paris. tom: one sliver of hope on the ground. what is the next step for macron, does he stick to his guns or fold? >> at the moment, he is not expected to back down on his pension reform. he had lunch with his prime mi

we have barclays, bnp, santander, and the loss in version is not the same as the swiss law. when the market figured that out yesterday, these at1 bonds from european banks had a lift off the lows at which they opened, but still, this throws up existential questions on the future of at1's is in general. some investors might not hang around for answers and may leave the market for good. tom: that is a broad implication for regulators from europe and the u.k. trying to highlight the fact that switzerland treated this differently around these additional tier one's. thank you. bloomberg's valerie tytel with the details. ubs's outlook has been cut to negative by s&p and moody's as the bank faces restructuring risk in the wake of its acquisition of credit suisse. get more with tom metcalf. what kind of reaction is settling in around ubs and this momentous takeover of credit suisse? tom m.: it is a mixed picture. yesterday you saw the stocks falling at the open but then recover and come out ahead. the market is taking a breath and a lot of people are seeing this as a positive. inter

credit suisse is hovering around the flat line we are firmly above the two swiss francs level you have bnp in france up 2% commerz bank up 2% again, let me emphasize after the massive selloff earlier in the week they have a long way to go to regain the ground that was lost in the last trading session. steve. >> thank you for that. >>> the slow central bank governor is an ecb policymaker kazimir has been making comments about rates. he said no need to speculate about the decision in may. upside risk to inflation dominant we are not at the finishing line says petr kazimir. he adds the current levels on the financial markets do not change my view that we need to continue i'm very well aware of the delicate situation, but we are not at the finishing line. julianna. >>> european central banks is ready to supply lenders with emergency liquidity if necessary. this as the bank stuck to the hiking path raising another 50 basis points yesterday and lifting the key deposit rate to 3% christine lagarde said the move was justified saying high inflation is the key concern and the bloc lender is well cap

with experienced traders who create complex derivatives at societe generale, or bnp paribas. >> therent locally. there is some very strong domestic players which have grown this talent. >> jp morgan, goldman stanley, and bank of america have all beefed up operations. princes home to the largest european stock exchange by market cap. >> london used to be the largest financial center of the european union. today london is the largest financial center of the u nited kingdom. >> the euro next ceo says the trend could be more acute in the long-term as fear of european study in london. dani: caroline connan unbanked speaking up their operations in paris following the brexit changes, and apparently playing more ping-pong as well. let's get the bloomberg business flash with simone foxman. >> softbank-backed u.k. chip designer arm is reportedly seeking to raise at least $8 billion in a u.s. ipo. reuters has arm will confidentially submit paperwork for its listing in april. bloomberg earlier reported that bankers had pitched a wide valuation window of between 30 and $70 billion for the company.

have solid gains and other global banks barclays up 4% unicredit is 5% in the green santander up 4.1 bnp up 4% in the green the trade with deutsche bank is 3.6. geoff. >>> thank you. the french government has narrowly survived no confidence vote in parliament over controversial pension refrefors. 278 voted in favor of it it is now considered adopted and that sparked protests in paris last night let's get to charlotte now what is next on the move for those who oppose it implemented? >> reporter: good morning. it is unlikely they will reject all together they may offer tweaks. in a sense, the pension reform is adopted as you said, it was narrower than expected. 278 mps voting in favor of the no confidence vote a tighter vote than expected consider it adopted. that means the age from september of 2023 validates the age going up from 62 to 64 it will reach 64 by 2030 geoff, what now? the prime minister has to survive the vote for how long the result was so tight and we hear she will not go just yet. maybe the president will open a new chapter in the future. by summer, maybe have a new pm in

bnp revised up there terminal rate to 4% as well. goes without saying, they are matching what the market is pricing in. the terminal rate has hit 4%. if you look at what the front are -- fronted rates are pricing. i want to focus on of speech we heard from's novel. she said, the large stock of assets acquired under qe continues to provide significant monetary accommodation. it may run counter to our efforts to bring inflation back to their 2% target in a timely manner. this thought that the asset stock is continually undermining their policy and that the balance sheet is too big for their current restrictive policy stance is pretty interesting. i would take a look at this piece on the ecb website. dani: aren't you so excited for when i start asking you about fragmentation again? aren't you excited for that debate to come back? valerie tytel there on the latest from the ecb to the fed. we got a big move in bitcoin today. it's dropping to its lowest level in two weeks. that's because of this risk appetite evaporate in. digital assets w

organizers of the bnp in california announce he withdrew.cine. the department of homeland security denied the waiver and urged president biden to allow him to play. those are the headlines, dom back to you. >>> ahead on the show, with jay powell set to speak tomorrow, we speak with roger ferguson today. what we is expected to hear tomorrow we'll be back after this break what if you were a trendy apparel company facing an avalanche of demand? to ensure more customers can buy more sherpa-lined jackets, you call ibm to automate your it infrastructure with ai . now your systems monitor themselves. what used to take hours takes minutes. and you have an ecommerce platform designed to handle sudden spikes in overall demand... as in actual overalls. ♪♪ the eagle has landed. that's one small step for man... hey, what's up? -one giant... uh... houston... we have a situation. how did you get here? you're characters in our video game! video game? yeah, it's what we can do with the xfinity 10g network. basically, the greatest achievement since the moon l

cross-border rather than combining commerzbank with deutsche -- the biggest most powerful bank in europe is bnpisfaction to people. it is that type of logic, that way of thinking which is going to push things ahead. look at america. that is the way joe biden has thought about every single part of industrial policy, buy american, protect american high-tech, cajole people to work in silicon valley. guy: if banks become a way the state can influence financial policy and generate stronger areas of industry, to they want the banks to take live -- to take risk? john: that is the difficult bit. if you look at the history of finance. the idea for this piece came partly from visiting the library of mistakes in edinburgh, a room devoted to the terrible errors finance has made. you have mr. ponzi of steam fame. -- of scheme fame. the underlying idea it will be fine if the state takes a share, look and see what happens with china. once the state starts directing things you lose something. on the one hand nobody likes the idea of financiers going out to do with they want to do and then being bailed out. on

because you had this news yesterday around potential fines in total of around a billion euros, socgen, bnp paribas part of that punishment for allegations around tax fraud and money laundering. we will keep across that story. st micro, gains of .4% -- gains of 4%, prosus a major investor in tencent which is rallying on the back of news around alibaba. infineon gaining a little under 6%, the semiconductors rallying on the back of those results. from micron suggesting that maybe the lows in terms of blockbuster demand and buildup of inventories is coming to an end, the slightly brighter picture for the chip space. european ships makers are rallying on that front. francine: returning to the banking sector, letters in the u.s. are facing the biggest overhaul following the demise of banks, which has left investors on edge and lead to a knockdown effect across wider markets. we're joined by tom metcalf and j.p. barnert, the banks are having a tough time. >> it's been probably one of the most frantic few weeks for banks but on in the u.s. and in recent weeks, credit suisse. what you saw is banker

open djokovic withdrew from the bnp open after the biden administration denied his visa over the pandemicrs are calling for biden to grant the tennis superstar an exception to a ban that will expire soon anyway considering the state of emergency will be lifted in may. in a letter to president biden last week scott and rubio says it seems illogical and misaligned with the opinions of your own administration to not grant him the waiver he requests. others with speaking out. senator marsha blackburn sweeting didn't president biden say the pandemic is over? yet thousands of unvaccinated illegal immigrants are allowed to come across the southern border. florida governor ron desantis who fought early pandemic restrictions is taking aim. >> we have a big problem with the federal establishment in washington. it still clings to pandemic restrictions. they won't like novak djokovic come to the united states even though he has had covid because of the shot mandate. >> so we'll see if this pressure campaign works, dana. i will volley it back to you. >> dana: return i think is what you say. thank you.

names like socgen bnp paribas, all getting dinged pretty badly today. that is a concern about the ripple effects out of credit suisse? that is something that will take a few days to reveal itself. the stoxx 600 is down by 2.5%. 438 is where we are trading. the equity market may be the center of today's story, but the bond market is front and center. jared feller is going to join us to talk through all of this. this is bloomberg. ♪ go production. go faster and safer. emerson automation software helps breakthrough medicines get to market at warp speed. go human go. go boldly. emerson. these days, our households depend on the internet more and more. families grow, houses get smarter, and our demands on the internet increase. that's why we just boosted speeds for over 20 million xfinity customers, on us. so you get more of the speed you need for day and night streaming. more speed you need when you're work from homeing. and more speed you need as your family keeps growing. check in on your current speed through the xfinity app or upgrade to the speed that's

realized in the midst of this panic yesterday that a complete write-down of these at1's in barclays, bnp, deutsche bank, santander is less likely than in this swiss banking rule. left some at1's to rally off the lows yesterday. in the asia session overnight, those bonds with that explicit equity conversion were the ones to rally the most, but that still poses some existential questions for the at1 market generally. some investors may not hang around for clarity and leave the market for good. tom: that reassurance of seniority coming through from regulators in the -- in europe and the u.k.. how can -- how confident can we be that the rebound will be sustained? this is a key funding channel for banks. valerie: a key funding channel and they are being hit by the impact of funding costs when it comes to funding these loan portfolios, which you can say our may a bit underwater as rates have gone higher. the key thing here is that finma and in this bailout, they bypassed a lot of these rules that credit suisse most had pitched to investors on when it comes to the fine print around these bonds

if you look at cds spreads for firms like ubs, bnp, deutch, it doesn't look anything like what we sawyou know, during the european sovereign debt crisis 10 or so years ago. it looks like really just credit suisse issue, not a broad european banking issue but you know, we'll see. charles: so with that in mind, i don't see the contagion issue right now but there were banks were caught flat-footed, right? a lot were caught flat-footed or simply too slow to make adjustments n your mind, how many more failures or bailouts should we be bracing for? >> i, i'm not the person to answer that question. what i will say i think that, at least here in the u.s. we ring faced the initial shock. i don't think anyone has to worry about their deposit as the bank won't be there. that problem has been resolved. the bigger issue about future bank failures. and more about how much credit conditions will tighten for the real economy and what that means for broader economic growth. i mean i think you can make a pretty strong case that credit conditions are going to tighten from regional banks. that is going t

yelena shulyatyeva of bnp paribas, senior u.s. economist, thank you for joining us. still ahead, we are awaiting the chairman. a live shot of the house financial services committee. the chairman is speaking at the moment of day two of chair powell on capitol hill. we will bring you the market reaction to yesterday's remarks, what we can expect today given how much repricing we have already seen, next. this is bloomberg. ♪ go. go lights. go big city lights. go spotlights. go stadium lights. emerson software helps clean energy become reliable electricity. go “good night." go boldly. emerson. it's easy to get lost in investment research. introducing j.p. morgan personal advisors. hey david! connect with an advisor to create your personalized plan. let's find the right investments for your goals. okay, great. j.p. morgan wealth management. >> although they have raised rates considerably, it is not clear how long the lag effects are for the impact, and once the impact starts to play out, how damaging the impact is, so they are in a difficult place to be. if i could tell o

ual was upgraded by bnp paribas. here's your outperformance today in the a flat market. tesla, please. i know they got the green light to build a plant in mexico, but when does production starter? susan: possibly as early as next year. so according to the mexican authority, licensing and permits are already in the final stages and final discussions. you heard tesla saying that other factories like shanghai, berlin could produce 500,000 cars a year, 10,000 a week. so mexico could possibly do the same. also some positive news from china this morning that local sales have started this year on track to match last quarter, which was pretty good, even with price cuts. and insurance registrations were up for a second straight week for tesla in china. stuart: let's follow up on rivian, because they look like they're in deep trouble. >> they are. 1.3 billion in convertible notes, to raise cash in order to stay alive. rivian, as you know, has really disappointed this year, last year. the 50,000-car production target was 10,000 for less than expected. with 2023, they made 700 less

joining me now, our trader, teddy weisberg and bnp paris baa' chief economist.y, what happened? 40 minutes ago we were roaring ahead in the stock market, and hose the regions -- hose the regionals started to the fall again. >> well, that's right because there's still so much uncertainty out there. it's a very, very difficult environment for investors. the message is so mixeded, and behind the curtain with the financial issues with some of these regional banks, what's real, what isn't real, every day we have somebody else in a position of authority pontificating on what might or might not happen or what the government will or will not co, you can't blame the markets for being jittery because investors are jilt jittery. liz: look at comerica now down 10%. regional wangs -- banks write something like 70% of commercial loans and a whole bunch of, obviously, homeowners all across america, some of these do not look very strong at all. in fact, they could be insolvent even as jay powell yesterday said that the silicon valley bank collapse was, quote, an outlier. how co

american depository receipts, european banks that trade here in the u.s., everyone from deutsche bank, bnp paribas, you know, you can put up hsbc, there are many of them. what is the latest though? when you say support, are we talking about a bailout, a full-out rescue by the swiss national bank? >> we don't know at this stage, and that is the uncertainty of that, because if that is the case, then the i am sure credit suisse isn't going to be the only institution. we welcome will be hear -- we will be hearing from a lot of other institutes asking for similar support as well. you're absolutely correct, all the european major banks, they are so much intertwined with each other and holding balance from one bank to another bank. so the exposure is absolutely concern. liz: i want to bring in bob heller, former federal reserve governor. bob, couple until i guess before the fall -- up until i guess before the fall of svb, the federal reserve was on door rately opposed to hiking its interest rate trajectory. will it be forced to pause? >> i think when the house is on fire, it's appropriate to calm

what credit suisse is facing is a crisis of liquidity, especially yesterday, when we saw bnp saying wee not going to take counterparty risk with credit suisse. that is pretty sinister for a bank. if you lose trust, and if counterparties do not transact with you, regardless of how well-capitalized you are, the game can be up. we have seen that happen during the financial crisis. and therefore, what we were looking at yesterday was a very real threat to the systemic equation in europe. but as you said, with the central bank standing behind this, and with credit suisse now , that changes the equation a whole lot. it definitely buys them time over the short-term. and they will hope that will work for now. francine: i 100% understand this but even before all of these extra facilities, look, credit suisse had many, many problems. they had to deal with huge outflows but they had healthy levels of liquid assets. should they need it, they had access already to facilities across the world with a string of central-bank facilities in multiple countries. if you look at the next big risk for europe,

french banks including bnp paribas and societe generale face collective fines of more than $1.1 billionvestigations into tax fraud and money laundering. it follows raids carried out in december relating to a dividend arbitrage strategy where shareholders transferred stock for a short period to investors based abroad to avoid a dividend tax. hsbc, natixis, and exxon are also part of the investigation. bloomberg has learned white house national security advisor jake sullivan spoke with the top diplomat amid rising tensions. the call happened just days ahead of taiwan president's plans to stop in the u.s. the white house is looking to arrange a phone call between president biden and china's xi jinping but that is not expected until after his return. global news, 24 hours a day, on air and on bloomberg quicktake, powered by more than 2700 journalists and analysts in more than 120 countries. i am vonnie quinn. this is bloomberg. kathleen: here what the corporate restructuring could mean for mounting breakup pressures. more just ahead. top u.s. financial officials tell congress there should b

does that mean that they were in coalition with the bnp on of course it on that issue?it doesn't mean, but just doesn't mean, but this is just very much, isn't it? tell me if you william, you think i'm wrong, william, that about what support that it's all about what support guessing people's thought process. because, you know , a process. because, you know, a lot people i mean, to be lot of people i mean, to be honest, this channel, for example, get cold, hard, example, will get cold, hard, right? right. i will get right? far right. i will get called far right . it right? far right. i will get called far right. it just right? far right. i will get called far right . it just loses called far right. it just loses its kind impact, called far right. it just loses its kind impact , really. what its kind of impact, really. what if you're an average joe? that's not kind of i don't know. you just might say i want to agree with extra with having to pay an extra £12.50 town and then £12.50 to go to town and then someone turns around to you because you know, you're an because you

sally: after a tough day, credit suisse saw people saw this talking about contagion and banks like bnp stopping talking credit stops. we saw that the snb, the swiss regular came out and said it would be ready to backstop liquidity for the bank if needed. it made a few points. it did not see direct contagion. as per liquidity capital ratios the bank was meeting those. it raises questions, whether the swiss are able to provide the kind of liquidity that credit suisse would need and whether this does have contagion effects for the board of european and banking system and beyond. haidi: the u.s. treasury has a reviewed exposure for banks. sally: that's right. we saw some of the big banks like j.p. morgan, bank of america and citigroup. they have been, over the past few months, reducing their exposure to credit suisse. they have also seen, as you would expect, increased inquiries from u.s. regulators about this exposure. they're extremely worried about the u.s. banking system at the moment. we had the collapse of three banks in less than a week, silicon valley bank, signature bank, and silv

the head of the japan equities team is leaving for bnp paribas. head of equities for the region also headed for the exit. tartar consultants has resigned. tcs has named the head of its banking and financial services business, as ceo designate. he will take over in the next financial year, subject to shareholders approval. shery: a look at how u.s. futures are trading. a little more positive sentiment sweeping to the markets after we had pressure when it futures opened in the asian session. it is still early in the asian session. we are talking about coming off that jump in the new york session one pictures also rebounded. we have the s&p 500 seeing its best day since january, and the nasdaq 100 rising to a one month high. the expectations are perhaps less fed tightening being fell across markets. we even have the dollar falling for the first time in three sessions. you can take a look at the fx space. the aussie also gaining a little bit of ground against the u.s. dollar, 66 u.s. cents level. we have the aussie doing pretty well as the jobless rat

head of asian equities at bnp paribas.you back to annabelle in hong kong, talking about the preference. annabelle: overweight, that was his view. what we are seeing here with the open of training, at least for the japanese lenders, we are steel seeing the move to the downside. the biggest names all in the red here. that does come -- it is quite interesting because we haven't first citizens reportedly near a deal to acquire sbb, something that could be confirmed in the next few hours, though we did have more turmoil coming through for the sector in europe on friday with deutsche bank, declining as much as 15%. perhaps that is just feeding in to the asian session in the early moments. 10 minutes into the session for japan and korea. let's see how the korean financials are faring, because we do have these stocks trading in negative territory, the broader index down 0.4%. we see the australian banks trading higher in today's training. let's move on, another sector we are focusing on is the defense stocks in korea and japan. th

and german banks such as deutsche bank and commerzbank and similar moves in paris with the likes of bnp suisse, having these problems, it has had problems going on for a number of years. it had a chairman who resigned for breaking covid rules. it was involved in a bribery scandal in mozambique was a bit at multibillion—dollar losses in investment funds including us hedge fund. it was found guilty over allegations of laundering money linked to bulgarian drug traffickers will stop it has been involved in corporate espionage claims that it had to settle and tax evasion claims in the us. quite a list there and all these problems have ended up costing money and sapping investors�* confidence in what was switzerland�*s second biggest bank. what confidence in what was switzerland's second biggest bank.— second biggest bank. what does it mean for the _ second biggest bank. what does it mean for the regular _ second biggest bank. what does it mean for the regular person - second biggest bank. what does it mean for the regular person and l second biggest bank. what does it. mean for the regular p

one of the side effects was the growth of extremely unpleasant far right parties like the bnp and i absolutelyhat kind of thing coming back into british politics. and yet we have the likes of gary lineker basically making out that moderate tories like and the people in the one nation group are effectively like behaving as they did in the 1930. what's your reaction to that ? well i 1930. what's your reaction to that? well i think on the 1930. what's your reaction to that ? well i think on the whole, that? well i think on the whole, anyone who starts invoking the and comparing democratic politicians of any kind to them doesn't have much of an argument that that's a sort of absolute truth. so the of that now notorious tweet was was clearly pretty foolish and quite offensive. suella braverman herself has made the point that herself has made the point that her husband is jewish, so she has family members who were killed by the. so people use that kind of language freely or easily . should lineker down easily. should lineker down tomorrow then? obviously he's boycott it. this show fellow sports pund

coming up, christian noyer of bnp paribas an difference -- and bank the france. >> the wall street journalthe family denies allegations that one of the reporters was spying in russia. the american west detained any a city in russia and is expected of espionage --he is said to be collecting -- there was another sign of republicans growing uncertainty around -- about america's support of ukraine and caressed a republican say billions of dollars of ukraine's risk being misspent and could be better used for domestic priorities. michael mccaul criticized western european nations for not supplying as much assistance to the u.s.. the u.k. is set to outline aches strategy to speeding up deployment of renewable power and is being response to the green subsidies at the -- from the inflation reduction act. the price of bitcoin went up -- over 29,000, the highest it has been since last june and that is when a series of scandals began. overall increase and risk appetite in global markets has increased crisis. the latest census numbers shows that manhattan's popular growth and other euros lost residents