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

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

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

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.

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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 finished off

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

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

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

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.

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 bankers coming

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

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

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

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 things

we talked with greg at bnp paribas. he said we could see a 16% outside in equities.athetic with that. 10:00 a.m., we hear from chair powell testifying in front of the senate banking 9:00 a.m., we get comments released ahead of it. perhaps we will get indication of where he plans to go. 3:00 p.m., u.s. consumer credit. are people still borrowing to spend? this to me is one of the main questions, how much more dynamism is there left in the consumer spending and fueled economic growth and inflation in services, and particular? is there a beginning of restraint as rates go up and people get more concerned about what is to come? jonathan: in the equity market, and a ham -- anna ham joins us now. i want to start with that line you started the week with. do not trade as if we are in a bear market. we are not. what does that mean? >> what we spoke about earlier this year, how there was a fear of the bear market. another repeat of 2022. we do not see the same signs the fed has slowed down considerably. the consumer considering -- continues to spend. wages continue to stay str

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

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

. >> 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

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

german banks such as deutsche bank and commerzbank and similar moves in paris with the likes of bnp paribas 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 person an

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