there is already if you look at credit default swaps with eurozone banks like deutsche bank and commerz bank, they are risen, but not tremendously on back of the credit suisse story. they are nowhere where they were back in november last year the panic in the banking market in the euro area is pretty much contained. >> annette, what happens with the balance sheet shrinking? there are liquidity issues out there. do you think the ecb will talk about the asset purchase program today? >> reporter: yes, they will. we had the member of the governing council and member of the executive board recently elaborating to length in the presentation and speech that the balance sheet is too big they have to shrink it there are various reasons for it clearly, of course, the ecb is buying up almost all of the sovereign debt market which is not good for the repo market the ecb does not want to actually disturb the market as much anymore of course, they also want to do that because the monetary policy stance doesn't warrant that balance sheet. they need to talk about it we had the bank president talk to me and

deutsche bank is down 9.2% of the commerz bank down 6% other big names down bnp down 7 and santander down 6%. it is not stopping the fears around the banks >>> the french governor has praised the ubs move to buy credit suisse. he added the french banks are stable and solid and profitable. let's get to charlotte in paris. we heard from all voices trying to weigh in to provide calm, but the reaction is anything but in the banking names this morning >> reporter: absolutely, karen multiple voices trying to calm fears with the french banks as you said as the french governor speaking this morning and talking about svb and credit suisse these were two issues outside of the eurozone with medium-sized banks in the u.s. being less regulated. the problems for years at credit suisse the six main banks in france were stable and profitable risk management had been solid these comments this morning from the french finance minister saying he welcomes the takeover. they have been stress tested regularly. they arevi vilgilant on the mart rea reaction again, the french minister saying the french banks h

stepped up many of the european names under pressure yesterday a couple of specific ones from commerz bank to credit suisse over stability in the financial system despite big news in the u.s. markets are not calm indices stateside underlining the banking system and bond markets. as we begin the trade, we are moving higher in contrast to yesterday. we saw steep declines of 2.4% on the benchmark. we are clawing back the territory. it is modest to the upside .20% the rest in range as we talk about the gain this morning. let's dive into what we are seeing in terms of sectors and what we are experiencing with the red ink. we have real estate at the top and at the bottom is banks the fears from investors have not been apart from the market open .80% open. every basket is trading in the red. lloyds barclays is the exception. the bank in spain, a smaller bank, is under pressure. you have bbva in the spanish market with concentration of selling. other major baskets are down hsbc, of course, the bank at the front of the rescue yesterday of silicon valley bank uk the market still seeing losses in the

commerz bank in germany and santander in spain and credit suisse is down with the consolidation. i'm not sure how much we are looking at the stock price it is weaker trade the european banks more broadly. you see the mix of trade ubs is the better performer this morning. you 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 t

commerz bank up 6% deutsche bank up 3.9%. ubs building as up 4%. asian markets rallied in the overnight session. frank, back to you >> julianna, thank you. >>> turning attention this morning to the top stories as we watch shares of first republic bank which are higher after a rough session yesterday. silvana henao is here with those. silvana? >> frank, that is right. shares of first republic bouncing off a new all-time low after shedding another 47% yesterday. down more than 90% this monday after multiple reports as top executives worked to come up with a plan to shore up the lender last week's $30 billion lineline having little effect jpmorgan chase's jamie dimon, who spearheaded the deposit plan he reportedly weighing converting all or a portion of the 11 banks deposits into a capital infusion outside of that, u.s. officials look to limit any more panic in the banking sector bloomberg is reporting that they are studying ways to expand the fdic coverage of all deposits past the $250,000 cap, frank >> a discussion about that silvana, thank you welc

here is the european banks heavy selling across the space deutsche bank is down 7.4% commerz bank is c dragged down stocks there now in the uk, hsbc stock down 5.1% it is a broad based selloff in the banking sector broadly, we have investors favoring the defensive parts of the market as you expect in the risk-off environment utilities sector is trading higher up .20% food and beverage and household goods as well as healthcare also showing to be more resilient investors clearly looking to put money into those assets which are considered more defensive. on the down side, banks at the bottom down 3.8% financial services with the housing of bank stocks down as well frank. >> julianna, thank you very sto. silicon valley bank extending the massive losses after falling 60%. shares this morning are down again. down almost 40% as some of tech's biggest vcs as peter thiel told clients to pull money. and this is sending shockwaves to the banking sector. look at the four biggest banks bank of america hit the hardest. down 6.2% there. all together, the big four shed $52 tbillion in value in one da

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 capitalized. price pressure is t

co commerz bank is down here.e are seeing the fears here and concerns if interest rates go up, what does that mean for the maturity profile for the european lenders we had a special tprogram announced in the united states to manage the bond portfolios. we don't have the same here from the central banks. perhaps some questions around what that could look like and reassessment after what has been a strong trade in banks, but still risk is coming back off the table. let's get too hsbc which flipped into the red it bought silicon valley bank uk for 1 pound in a deal fac facilitated by the government. officials held all-night talks to prevent the lender from falling into solvency. we have sylvia with the rescue come monday morning. walk us through the details. >> reporter: exactly in the end, it was hsbc uk to announce it bought silicon valley bank uk for 1 pound in that same statement, hsbc made it clear that as of friday, the 10th of march, silicon valley bank uk had deposits of 6.7 billion british pounds according t