jp morgan is a global bank.n benefit now from some of the pressures easing off of europe because they have been extending some much into europe. they have been fighting on all fronts here. they have been expanding into equities and fixed income trading's in a volatile market, really benefiting from that extra risk-taking. also, that benefit of higher interest rates will benefit jp morgan more than anybody else, given this scale of what they have in the united states and what they are able to make from that interest. the americas the other when you think about that front. i would say the big question, going back to the beginning of this question -- of this conversation, is should some of these challenges persist into next year, what new headwinds does jamie dimon and everyone else start to face? amber: thanks so much tuition olive asset for providing that analysis paired we're going to take a quick break. what is the largest oil services company have to say about the future of electric vehicles? that interview is

an exclusive with jamie dimon, jp morgan's chairman and ceo. this is bloomberg. ♪ 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. for businesses of all sizes, there are a lot of choices when it comes to your internet and technology needs. when you choose comcast business internet, you choose the largest, fastest reliable network. you choose advanced security for total peace of mind. and you choose a next generation 10g network that's always improving, getting faster; more reliable; and more intelligent to keep you ready for today and tomorrow. the choice is clear: make your business future ready with the network from the most innovative company. comcast business. powering possibilities™. >> a live shot of the principal room. diane swonk joining bloomberg tv at 4:30. kailey: it is a pivotal week for investors. who want to get a tip from one of the

we have learned that jp morgan, morgan stanley and other traders are buying that my two cents and selling them at two cents on the dollar. bonds can actually turn into claims on credit suisse. they are still not yet a zero because ideal has not closed. it will take another few months for that to close. these traders have until then to figure out how to make money out of these bonds that are supposed to be worth zero. >> what is the latest on how the merger is being received so far? >> the market still figuring out the way forward. you so ubs shares down 16% and then up 7%. eventually settling around 1% higher for the day. investors are still trying to figure out how this will play out. they are not happy they have had to pause the share buyback plan. there was a plan to buy back about $5 billion worth of shares. that will not happen. ubs has to figure out what it will do with the credit suisse investment banking business. they will try to divest a bunch of non-core assets. that will not happen overnight. there are a lot of question marks about how this merger actually will benefit ubs. pe

that is good news for jp morgan. in terms of the tech sector, when it comes to the venture space, we are going to see maybe lower valuations. that is a good idea for venture investors. ed: what we are seeing is how we are threading what is happening with svb to what is happening with the global economy. the commonality is that large tech sectors are under duress. caroline: they're having to think about cost, that means people. it also means people managing these businesses. someone who was pricing your jp morgan, also someone who is on the board of coca-cola or disney, what do you make of executive oversight or poor oversight? mel: board oversight has never been more important. especially issues like cybersecurity, for example. are more important than ink -- more important than ever. the kind of credentials you need to be able to have and the kind of work you need to be able to do to serve on these boards has increased dramatically. ed: we family offices, mel lagomasino. issuing new equity -- amc entertainment issuin

what is jp morgan saying?hat is exactly what they are saying, that this is a worst case scenario situation they are looking at, so this is one thing to remember, the extreme case. essentially they are saying that because there is so much money poured into these options at the moment, the net national value is standing at $1 trillion, comprising about 40% of the trading volume daily on the s&p 500, so is it -- so it is a sizable amount. jp morgan laid out what would be an extreme day move so they can gain at a 5% decline? they found because of the presence of these options, that could easily spiral into a 20% decline. a big difference between 5% and 20%. this is the extreme jp morgan is trying to highlight and i understand why some people are saying that is too extreme. never say never in these markets. dani: it is the extreme example, but you mentioned the size. used to associate this with wall street that's, but we have institutions now using these types of options. kristine: it shows how much the equity mark

between the rescue efforts by jp morgan — working?cue efforts byjp morgan and _ working? between the rescue efforts by jp morgan and the _ working? between the rescue efforts by jp morgan and the reassurances i byjp morgan and the reassurances that we have heard just now from janet yellen, we are seeing that shares a first republic have jumped up shares a first republic have jumped up by shares a first republic have jumped up by more than 25% in trading today. rememberthat up by more than 25% in trading today. remember that the bank shares had created by more than 75% over the last week—and—a—half as investors were very concerned that it could possibly be the next bank to fail, but these kind of reassurances coming from the banking sector and from the treasury secretary have lifted confidence. how much of this new—found confidence that we are seeing on the stock market is investors thinking perhaps their federal reserve will hold off when kate comes to raising interest rates?— interest rates? yes, i think that's re interest rates? yes

analyst at jp morgan estimates this is providing as much as $2 trillion liquidity for banks. tom: wow. meanwhile, other action coming through, three jays combining for their work. jerome powell, janet yellen, and jamie dimon with 30 billion u.s. dollars for the regional lenders. is this ticking past the action or is it more substantial? russell: this is the latest effort to short deposits at one bank, first republic bank. the san francisco lender whose shares tumbled last week. concerned it may be following svb into seeing a large outflow in its deposits. this is an idea created by the three jays. treasury secretary, janet yellen mentioned this to jp morgan ceo jamie dimon on all on tuesday. he got off the call and rally to 10 other banks. there has been 11 banks that have chimed in on this. really it is an effort to prevent wider panic that would be detrimental to all things interest. it reflects the bifurcation in the u.s. banking system right now with the larger banks seeing huge inflows of deposits from depositors that are fearful that smaller lenders, the money might not

experience at the imf, jp morgan. he is a part of the research team involved with policies like basil -- basel iii. the idea that there were so involved in that fdic backstop, if it is seen as stimulative, there has to be a pain point. what is that pain point in your opinion? >> the fed's action this week could have an impact on the banking system, for sure. raising the rates would then raise the rates on money market mutual funds, the rates they pay, which would then pull deposits out of the banking system. if the weaker banks sustain some sort of run behavior, they basically fund the deposits that leave with loans from the federal reserve under the special lending program, or from the home loan banks. deposits at banks, generally banks pay little interest on them if anything. 0, 25 basis points on transaction balances. if they have to replace those with borrowing from the fed, that cost them 4.65%. judging by the republic -- first republic bank's recent statements, they are paying 5.09%. at the san francisco home lo

that stock premarket down 8% despite this lifeline being provided by jp morgan.dimon corralling the larger banks around the support of $30 billion in deposits premarket first republic down 8%. pac west down 8%. western alliance gaining .9%. more broadly, this is when you look across his markets a moment where it aims investors have taken pause, a deep breath and they are collecting their thoughts given that everything that has happened the last week. let's check in on credit squeeze because there shares -- credit suisse because there shares are up. more broadly across european bank stops, rallying this morning to point i percent of the context is double-digit losses for that sector over the last week. here is credit suisse firmly in focus for us today just getting 5%. we continue to watch the bonds and this bank. ubs and credit suisse both pushing back on the idea they will merge. coming up we take a deep dive on credit squeeze and -- credit suisse in the banking sector. this is bloomberg. ♪ as a business owner, your bottom line is always top of mind. so start sa

jp morgan, bank of america, and citigroup, and wells fargo are each contributing $5 billion of uninsured and morgan stanley will chip in $2.5 billion a piece and other banks will also deposit smaller amounts. the ecb has gone ahead with a planned half-point rate hike but offered few clues on its next move. officials lifted the move to 3% as expected, though there were no language changes in their statement about where borrowing costs are headed. this comes a day after the market turmoil over credit suisse. >> the elevated level of uncertainty reinforces the importance of a data-dependent approach to our policy rate decisions, which will be determined by our assessment of the inflation outlook in light of the incoming economic and financial data. the dynamics of underlying inflation. and the strength of monetary policy transmission. vonnie: ubs and credit suisse are said to be resisting the idea of a merger that some of the industries have said will boost investor confidence. bloomberg sources say ubs is reluctant to take on the risks related to its smaller rival, and credit suisse execut

we have an exclusive interview with the jp morgan ceo and chairman, jamie dimon. berg. ♪ 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. guy: european equity markets about to close. considering the bounce we saw last week friday in u.s. stocks, this feels quite tepid in europe today. the reason for that is you have stocks higher of the china factory is in the market so commodity stocks are low. the data are going to matter. switzerland higher than anticipated. the swiss two-year song off aggressively today. and then we come back to the commodities narrative, crude lower and watching the reaction to china. i think there is an upgrade. china is talking about driving consumption. that should be good for europe and european luxury stocks, not good for the commodity stock story. pay attention to that divergence. we are going to talk more about nuance. the equity macro st

in fact, they use fair value accounting rather than holding reserves against loans jp morgan had a note out where they talk about their discount rate assumptions used to value their loan portfolio, not keeping rate -- keeping pace with interest rate rises again, are they marking to market big issue to svb, mark to market, take losses because they had to meet a liquidity run. sophie is a fintech company but also more exposure to consumers, and parts possibly of a lending world that i think would be under more pressure. so that's the kind of story today that's tomorrow's story. i'm not saying sofi is anything close. >> no -- >> my point is simply to say you have to look at how companies are valuing their assets, what their books like like. >> liquidity issues are rorring back here. we'll continue to follow the story for you. more "options action" after a break. >> announcer: "options action" is sponsored by thinkorswim by td ameritrade. 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 thin

some people from occupy wall street turned their attention to the head of jp morgan.se, jamie dimon. they went to his office, held signs outside for 24 hours a day. they hassled other presidents of banks. everybody in the media decided occupy wall street was boring. anything about economics was boring. who cares about carried interest? what's that? what we really want to talk about, they told you, is racial oppression and your role in it. and so we got a lot of that only for like 12 years now. an endless parade of lies about this or that, police shootings, they're everywhere. everyone is getting killed by the cops. hands up, don't shoot! remember that? we're all still talking about that nonsense, ripping the country apart along racial lines. guess what we're not talking about? banks. banks. they deeply appreciate that. maybe that's why this blm rioters torch major cities. democrats who took big money from big banks knelt in reverance to blm. >> we are here to honor george floyd. in a moment, we will have a moment of silence, actually eight minutes and 46 seconds of si

you also have partners here, lending bank, town bank, jp morgan chase, east bank and west bank.lley bank was arguably not necessarily a rival but a competitor in some of the businesses. you guys had crossover and when it came to certain parts of the business and venture capitalist peter teal is a backer of brex and had money at silicon valley bank and peter teal encourage add lot of startups he represented and funded to pull their money out starting on march 1 because he was worried -- march 19 because he was worried about silicon valley bank's stability. you know, there's people who are looking at this staying, well, sure he d. he backs brex and probably told them to get out of svb and put it into brex and that's how you got all the money. what do you say to that and can you give us a window on how all that worked? >> yeah, number one peter is an early investor of brex and never talked to us about saving our money out and silicon valley bank and saying to other portfolio companies may be true but definitely not to us. number two is i would say that there was every vy that i kno

jp morgan was writing about this in november, for crying out loud. explain how it's biden's economic policies, his energy policies that cause record high inflation resulting in this bank -- investing a stop of money in treasuries, et cetera. then all of a sudden people need their money and they've got to cash it out on a massive loss, isn't that a big contributing factor here and how many other banks in the country might be doing this? >> yeah, you know, it's a complicated story but in a lot of ways it's not so complicated, sean. you kind of did a pretty good of explaining, connecting these dots. first it starts with trillions and trillions of dollars of out of control spending. help the government has to borrow that money to finance all these $6 trillion of additional spending biden enacted. then the next step is, all this money is flowing into the economy and as you correctly said, that additional money caused interest rates to rise and inflation to rise. so, now the fed has to act and it has to raise these interest rates to bring inflation down an

haslinda: that was jp morgan ceo jamie dimon speaking exclusively to bloomberg. guest robert hoffman, head of investment counsel for south asia at citi private bank. that was your old boss, i believe. all eyes on powell and what he says. i think he is unlikely to say anything. the messaging has been the same time and time again, higher for longer. robert: this week he will speak but before the jobs released friday so it is unlikely he will go out on a limb to say anything that would change markets. could be a short relief rally just because the worst fears have probably been overblown during the short-term but by friday we'll get a much better picture for the path of interest rates. every data point will drive markets. haslinda: how much of a game changer candy jobs data be? robert: it would be one more drop in an otherwise overflowing bucket. it will continue to make the picture muddier. if you see a blowout number, 300,000 or a -- or above, that will change. less than that, the same data dependency. haslinda: when you look at price action in the bond market, it

jp morgan, you like it too. >> there's a lot of accounts moving over for jp morgan right now for morean handle. >> from the portfolio and hearing from someone yesterday and three days to get an account set up. as you can go to another back end and the day. as that continues, jp morgan finds interesting ways for loans and mortgages and investments to monetize the clients? that's a long-term boom for them. stuart: outcome of the modest banking crisis is the big banks get bigger and more powerful too. thank you, mike. now this, the white house approve add modified position of willow oil project and jeff flock is with us. what has the president given and what has the president taken away, jeff? reporter: i feel like i'm in alaska this morning, stuart, by the way. he's given them a drilling project, which of course is something they got from conoco phillips and they've put a lot of alaska and a lot more of alaska off limits to drilling and maybe has some per spigottive there and alaska is d petroleum reserve in alaska is about the size of indiana and taking up a small portion of that and f

let's talk about it with samuel zief, from jp morgan bank.d been a story of dollar weakness, the fed stepping back over the turmoil, the euro down 4/10 of 1% today the dollar strength euro difference. is that over now? that play? samuel: it correlated with what we saw in european bank stocks this morning. the things i am watching the most with when it comes to these markets is regional bank stocks in u.s.. when you think about what is happening in the global economy from an fx perspective, where is are going to be a tightening of lending conditions more? in the u.s. or europe? when i think about the root causes of what is happening in the global financial system, it doesn't seem to be happening specifically in the u.s. smaller regional bank system. these banks have been super important to loan growth in the u.s. over the last 3-6 months. if you are loan officer at wendy's small banks compared to a month ago you will be less likely to extend credit and less willing to do that. in europe, the banking sector is much more concentrated. we are see

we just saw this jp morgan led initiative. but the money is coming their way.ley of having ongoing problems within the smaller regional bank sector? sonali: you have to think about it this way. it is not just among the smaller regional banking sector. there is a huge economic impact that is tied to these lenders. you have apollo estimates getting closer to 70% of the commercial real estate exposure in this country, tied to small and medium-sized banks. there is a huge debate after that systemic risk exemption that you have seen for silicon valley bank, whether these firms should have been considered systemic in the first place. even from large institutional counterparties, a lot of them brought up a great point to me. which is that even though they are reducing risk to some firms, credit suisse or whether it is loan exposure to some of these medium-sized firms, they don't love the idea of all of their risk being concentrated into a few banks in the united states. they have leverage limits per client. there are so many reasons that this really distorts the banki

shery: jp morgan ceo jamie dimon speaking to ed hammond. get to vonnie quinn with the first word headlines. >> a study has revealed the model for near inflation readings has been more accurate than the various alternatives. inflation measures are updated each business day. the price index for personal consumption expenditures. xi jinping is reportedly rallying china's private sector to overcome economic challenges driven by the u.s. china national radio said in an address to the top political advisory body. it urged companies to play a bigger role in establishing technology independence. the world's biggest provider of liquefied national gas says china may take flows away from europe as the economy reopens. its chief commercial officer told bloomberg china it will no longer act as a relief valve like it did last year by sending out emergency supplies to europe. >> we are always talking to china. we have a number of long-term transaction with chinese parties, a large breath of counter policies and some of next year's players. we are always e

it's not about jp morgan or bank of america.isa: i'm learning that the pain that is coming is that it's going to affect lots of other institutions and people are examining that. jonathan: can't get away from the banks tom:, can we? tom:well said. jonathan: want to talk about the banks? lisa: sure let's talk about ubs. [laughter] they are acquiring credit suisse, we heard about the senate finance committee coming out with explicit language this morning. shares are up as far as american depositors. ubs chair recently said we have to let everybody go through a culture filter to make sure we do not import something into the ecosystem that causes issues. i am glad i am not being filtered through a culture filter. jonathan: did he elaborate on that [laughter] lisa: talking about not wanting to create something bad from the virion and -- virulent element. tom: two hours ago i copied and pasted that out of a german newspaper headline because i didn't understand the german. it was the culture filter thing. lisa: i'm just not sure, i want

jp morgan, big of america, citibank, and wells fargo contribute in $5 billion each. and morgan stanley and goldman are kicking in. a group of additional banks are kicking in one billion each. u.s. financial authorities applauded the effort and again, bloomberg has learned that treasury secretary janet yellen have proposed the idea of a group effort on tuesday. this was during a call with officials including fed chair jay powell and the head of the fbi see. -- fbi c. fdic they both agreed the stock would demonstrate confidence in the banging system and we are told that jamie dimon took the lead in getting together other banks. they finalize the deal. quickly to the after hours, new details came out that first republic would be suspending its dividend. we saw shares dropped as much as 18%. earlier in the session, they swung wildly on speculation over details as to the rescue. bloomberg has been reporting that first republic has been exploring strategic options including a possible sale. a sale still very much a possibility. shery: what about silicon valley bank? su: the

so look, we own jp morgan. we're not selling jp morgan. we own pnc which is a little more regional. we're not going to be selling pnc but i don't think i would be very interested in searching for diamonds in the ro rough right d trying to buy any of these. maria: futures obviously a nervous market, dow industrials down 75. a few days ago president biden woke up early to respond to the silicon valley bank collapse. watch this. >> thanks for the quick action by my administration over the past few days, americans can have confidence that the banking system the is safe. no losses will be borne by the taxpayers. the management of these banks will be fired. investors in the banks will not be protected. maria: now bridgewater associates, ray dalio, co-founder, calling the bank, quote, a canary in the the coal mine, mark. >> you hear what president biden said, the banking system is safe. this is the guy who said the border is secure and inflation is transitory. what he said quite frankly was just an outright lie. when you look at these costs, these costs associated with the svb bailout, the

guy: jp morgan and morgan stanley acting on their own discretion?ng nudged towards this by the regulators? >> there is a little bit of both. first republic like i said, there is a lot to like about it. remember they sold off a lot. there a lot of things that have been discussed in the last couple days n this time period first republic, they are stock heavy bounded. looked like they were in the woods, and then cut to junk by s&p. that's when things changed in the market. you are seeing their exbid capital here looks -- equity capital here looks different than two days ago. when it comes to the federal reserve and the banks and the fdic bear and charge, regulators are always in charge when it comes to the banks. alix: i have to have the feeling that jamie diamond has learned his lesson from 2008. the trauma that happened after that. i feel like this line has to be real clear >> let me speak in generalities. we had a lot of discussions. that is absolutely true. certainly the case for silicon valley bank. there are ways to get it done. that primary way

kriti: we are talking about first republic and jp morgan and morgan stanley but we are forgetting aboutlliance, another stock that is trading like first republic and recently got its own capital infusion with ken griffin putting in a 5.3% stake. if there's another regional bank that falls of this pressure, is there enough interest in the big banks sonali: sonali: to pop in? when you think about capital in flute -- in -- infusions that are being discussed, these are pretty historic. to see the banking system tied together like this with the bigger banks saying it's us leaving money with you so that's a different type of story. it is seriously a vote of confidence when you see other banks step in in this way. there is the idea that banking mergers are very difficult. they were difficult before things got rough in the market and difficult actor. -- after. the banking regimes are difficult. they have created some giant banks and they are systemically important and deposits are moving but i would say when you look at what jamie dimon has said before, it also comes with a lot of regrets and p

regional first republic getting a $30 billion capital injection today from 11 major banks, including jp morgan, citi, bank of america, wells fargo, goldman and morgan stanley. a statement from treasury, the fed, the fdic and the comptroller of the currency. does this put an end to the turmoil that has roiled the regional banks over the past week here to break that down chris marinak. you made the comparison to a banana peel in terms of what the sector is going through. now with some hindsight and developments, do you still feel the same way >> sure. this is a solvable problem and i think that the $30 billion today really helps this is a sign of solidarity from several banks and they're stepping up. and this is important because it is wash and deposits, not equity via preferred comment. this is not a real bailout from the sense of taking equity in the company, but really providing them a lifeline, additional liquidity, and in many respects returning the deposits that fled in the past seven days those were deposits that were at first republic last wednesday and fled the scene, and now they're co

jp morgan is warning of a possible minsky moment. risky credit suisse bonds are said to be quoted near zero with pemco facing combined losses on the debt of more than a billion dollars. and president putin says he will discuss china's ukraine plan as he welcomes xi to moscow. >> we have the open of the asx 200. you can see it is moving higher. what we are focusing on is the moves into the banking sector given we saw the softer u.s. dollar in the u.s. session which helped most of the u.s. banks finish high. in the session so far without stroll you we have anz trading higher. and the etf more than a present and the green. the focus is on how the fed will interpret the turmoil we have seen in the financial sector and whether that will lead to a pause or push to a 25 basis point hike this week. what we see in the treasury spaces we have yields ticking higher with risk coming back into the market. and we see a reversal now in the aussie yield. the key we moving lower. we are also watching what is happening with the japanese yen. still fai

this from jp morgan earlier. "we cs snb liquidity support as not enough.eve the situation is about ongoing strategy in the franchise erosion. one, a complex change with limited details. two, limited outflows. although you today is still an issue. and three, wealth management historically delivery an average of 1.3 billion. in our view, the state is no longer an option. they offer a range of scenarios at jp morgan. here is one of the options. takeover scenarios. ubs is letting the leading candidate. tom: culturally it has got to be. it is not funny in zÜrich. it is a too town with a lot of private banks but there is a heritage few in the air. the majority share is including saudi arabia central bank money. they want to come in and acquire that air and that is what they thought they did with profitability. jonathan: we are at the stage when this is part of the conversation. do they really want to go to one month of the bank in switzerland or want to beef it up and have a combination? but this is all highly speculative stuff right now. christie's does not eve

on the financial journey, jp morgan chase and help them. we're juggling so many things. the household work family of sandra garcia is the founder of encounter. you're getting focus on diversity. >> in 2012, she launched after a latina beauty dot com call us cheap household officers. so whether you're a business owner and have a seat in front of your name, we are all c because we're all cho's for these it's all about supporting other up and coming. female life oftentimes is a struggle. but as long as you keep your we may to baby boom in denver. the zoo is definitely doing its part to protect this endangered species. >> last month the zoo introduced baby bongo fiddle to the world. and now there's a new little bongo joining the herd fiddles half-sister. clementine arrived on february. 16th season, mamas girl at heart, but also like spending time with her half-sister was also showing her how to. zooming around the zoo enclosure. >> i don't much about bongos. well, we been goes a large, mostly nocturnal for swelling, antelope, native to sub-saharan africa. according to the in

you've always done that with jp morgan and others.ly this morning what's the shadow you're most focused on? >> it's in the u.s. banking sector. i don't think they are idiosyncratic issues i think there is a broader problem. there are specific things that went wrong at those two banks but if you take a step back let's take stock of what's happening. first of all, depositors have other options and if you look at the online savings rate it is much higher than what you're getting on your checking account or savings accounts so depositors are looking for other options and as a result those deposits go out the banks are having to sell their sale securities or the fears that they're going to have to sell some of their maturity securities. that means a new wave of markdowns so this is, i mean this is systemic or broad-based and this is why i think the market is having a hard time saying yes, this is that, this is over because what we've seen is sort of a patchwork of piecemeal approach of regulation the depositors of these two institutions do

it's very interesting, and it goes to show just how serious jp morgan is taking the lawsuit.t trying to dismiss them out of hand but shipped the blame. tom: this is a deadly serious issue. lawyers have been kept busy on multiple fronts on the story and we will across it. tom metcalf from our finance and banking team. thank you very much indeed. let's get to the first word news with laura wright. laura: president biden will hit billionaires with a 25% minimum tax and income taxes on corporations and wealthy americans would also be raised including a big hike in the capital gains rate for investments. the proposal has little chance of passing congress however with republicans now in control of the house of representatives appeared the netherlands is preparing restrictions on the export of some chipmaking machines to china amid pressure from the united states. according to a letter to dutch lawmakers, the plan adds to existing curbs on the sale of advanced chipmaking machinery. the country is home to asml, the world leader in high-tech chip equipment. several ukrainian cities ha

morgan stanley, jp morgan, citibank, the whole list of the larger banks. the thing that people have been forgetting is our job as an investor, as a fiduciary sitting on the board to these companies, is to make sure we are giving them the best device and to help them think about what they need to do. for a large set of us, we started giving this advice a couple weeks ago, more so over the last week and over the last 24 to 48 hours. it is about diversifying the risk and how you are sweeping that cash, into treasuries depending on how many deposits you have in the first place. the second piece is that a lot of these companies do rely on banks. silicon valley bank was a pillar of the committee that helped support -- of the community that helped support a lot of venture funds. they were a lender for capital. funds banked with them, the funds themselves. this reverberates pretty quickly in the ecosystem around what it will look like for not just the companies but their backers. we do not bank with svb. we bank with a larger set of providers, and our capital call

katie: joining us to discuss his jp morgan kelce barrel.hrilled to say she joins me on set which is a particular treat. we have a lot to talk about because it feels like the bond market fundamentally changed its view on the fed over the past month. have you fundamentally changed your outlook? kelsey: we have not fundamentally changed our outlook. the fed is data-dependent and we are data dependent, the market is data dependent, everybody right now is really focused on two things coming up. i know you know them well, we have the payrolls report on the 10th and the cpi report on the 14th. i think governor waller laid it out well, he said we need to see if these trends that are in place in q3 and q4, slowing growth and slowing payroll and slowing and facial -- inflation, they going to continue or was this last data print in january the sign of a re-acceleration? we do not think this is a sign of a reacceleration. this was a strong data point and means that will hike more but ultimately the fed is going to be able to pause as the rate hikes fee

so much volatility and you jp morgan say this enough liquidity in the system at this point. >> there is definitely the sense there's plenty of liquidity. if you look at the debt spread for instance there's no panic in the market. there is no flight to safety assets. what you're seeing is the expectations of whether that's going to trump or matter more than price stability for the fed and that's what we've seen play out. i think the decision and possible dissent and dot plot together will provide more direction and therefore we expect rate volatility to come off of that after the meeting. >> i'm torn because i want to ask about the dot plot at the fed and what the boe will do. it's now fully priced in 25 basis points. >> i think they will take the market pricing on this. no one expected inflation to come in as hot as it did. at 10% plus there is no -- you've got a boe policy rate that's hardly respective. they need to keep going at what previously they may have thought. i think they will now go definitely to 425. tom: thank you very much indeed for the analysis and preview of the fed.

jp morgan was writing about this in november for crying out loudcrying. but explain how it's biden'sec economic policies, his energyred policies that caused record high inflation, record high inflation resulting treasuries, et cbankk investingn of money and treasuries, et out on athen all of a sudden people need their money and they've go massivet to cash. a massive loss. isn't that a bigor contributing factor here? >> and how many other banks around the country might be doing this? licate >>d yeah, you know, it's a complicated story, but a lot of ways it's not so complicated. thesa pretty, you kind of did ay good job of explainingit and connecting these dots. first, it starts with trillionso and trillions of dollars out ofn control spending. then the government has to borrow that t money to finane all of these six trillionad dollars of additional spendingdm enacted.s flow then the next step is alinl thit money is flowing intoy the economy. and as you just correctly said , that additional money so caused interest rates to risew and inflation to rise. o an

jp morgan, bank of american, wells fargo in the citi. there is a bank in the west coast called silicon valley bank. [laughter] not as well-capitalized. did the regulators not understand what was going on? do people in the banking world, people like you, were you surprised? jane: you had a combination of two pieces, the macro and igo syncretic factors around silicone -- idiosyncratic factors around silicon valley bank and the acceleration of social media about what went down. the increasing rates have been the fastest and steepest in 40 years. there is pain that comes with that. secondly, you had idiosyncratic factors, that is the polite british way of describing them in silicon valley bank. as all of this played out, you saw serious holes in the balance sheet management. they had a concentrated client base. that client base ended up burning cash much faster than anticipated. and they ended up under duress capital and it went down pretty quick. david: in 2007 the u.s. passed tarp legislation. under it, large amounts of capital were inject

we have seen that from wells fargo, jp morgan, all talking about the same thing.u missed the program friday, we were talking about this. wells fargo essentially saying the following. recent developments in financial markets are compounding the fed's efforts to slow the -- which raises the profitability of recession. mike allete jp morgan just an hour or so ago saying, one might trip to that destination. they went on, we look for real gdp in the u.s. to contract 1.2% later this year and into early 2024. lisa: this is reason why people are reassessing their view on risk assets as well as the interest rate path bob michele saying he could see as soon as september rate cuts. that specter raises the question , ok, what about inflation? these are some of the ways that the landscape has hermetically changed for a lot of people. jonathan: -- has dramatically changed for a lot of people. jonathan: hard landing, just like that. lisa: and the big bang is getting bigger. we have not even talked about that. honestly, the consolidation everyone was hoping to avoid is only accel

and do you know how jp morgan found out they were fake?pid, they e-mailed the list, and then 70% of the emails bounced back. that's right! the person who blew the lid off this intricate plot was... mailer-daemon! what the [bleep] is going on? i think there are three factors. number one, millennials have three times less money than boomers did at the same age. so we have this feeling is millennials where we want to catch up, pay for that marriage, that mortgage. we feel behind the game and we have to come up fast, and gen x, but who cares about them. number two: 0% interest rates plus two covid stimulus bills pumped a huge amount of money into the system. and the third reason there is more grifting than ever might be the most important detail: social media. from the moment you wake up and pull out your phone, these grifters have root access to your brain. and it's never been easier for total idiots to pass themselves off as stock market gurus to millions of people. and there is no idiot more total than this guy. >> my name is tommy, i'm fro

liz: what about the blackrocks of the world that own millions of shares and vanguard and jp morgan. >t it this way for vanguard and blackrock, i don't know jp morgan but blackrock owns passively in the etf, if you buy an etf that's somehow ---liz: that's black stone. sorry, we have the wrong chart up. >> so black stone owns and not blackrock? liz: no, blackrock. >> okay, it's a passive manager and fits description of etf like a bank etf, you'll see sbv in there and vanguard. jpi don't know. it is interesting that, i heard this friday and i reported on the claman countdown on friday that jamie dimon was not going to buy the thing. everyone was thinking jamie would buy it and wells fargo would buy it. if you noticed, nobody stepped up to the plate. synergy home not? for the -- why not? simple reason last time they stepped up and jamie bought bear sterns and bank of america bought merlin much and got -- merrill lynch and got screwed and the government screwed them and they're not going to go back to the well this time. we're going to get regulations out of this and from talking to bank c

also, former jp morgan trader. what we all need to know this these uncertain times.ght back. ever better. it's when disruption hits your supply chain and ryder makes sure you're ever delivering with freig brokerage to transportatn management, truckload capacity and dedicated trucks and drivers. ♪ at morgan stanley, we see the world with the wonder of new eyes, ♪ helping you discover untapped possibilities and relentlessly working with you to make them real. ♪ because grit and vision working in lockstep ♪ puts you on the path to your full potential. ♪ ♪ what will you do? will you make something better? create something new? our dell technologies advisors can provide you with the tools and expertise you need to bring out the innovator in you. you get advice like... just stop. go for a run. go for ten runs. run a marathon. instead, start small with nicorette, which will lead to something big. >>> all right, welcome back. we've heard from so many of you today with questions about what all of this bank chaos means for your money, for your family. let's get you some answer

jp morgan analysts are saying the prices and credit suisse will most likely end in its takeover.news, 24 hours a day on air and on quicktake, powered by more than 2700 journalists and analysts in more than 120 countries. this is bloomberg. >> the japanese by minister says wage gains are pivotal to his new capitalism plan and efforts to change the way business and the economy operate, a major japanese organization has announced a wage rise, averaging around 3% for more than 160,000 workers and manufacturing services and logistics. kathleen hays has this conversation next. >> we are joined by ken. a member of the new capitalism panel. we are very happy to have you here in studio with us. you are hidden -- you are here in new york. you are a very dizzy man. take you for taking time out for us. you are on the new capitalism panel that was set up. why wages so important and how do you assess what is happening today? >> wages have not gone up in the last 30 years. japan used to be the most expensive places in the world 30 years ago. when you live in japan, you don't feel it. it is very

chase, citigroub — private banks, jp morgan chase, citigroup is including injecting some huge amount0 billion, into first republic, — money, $30 billion, into first republic, to keep it alive. the one thing _ republic, to keep it alive. the one thing that _ republic, to keep it alive. the one thing that we _ republic, to keep it alive. tie: one thing that we are seeing republic, to keep it alive. ti9: one thing that we are seeing as you mentioned, janet yellen trying to reassure the markets. it's a bit like deja vu of the 2008 financial crisis, but do you think that she is going to succeed? it has been again a very volatile time. a lot of people are waiting for the other shoe to drop with some other shoe to drop with some other bank.— other bank. well, that's the bi . other bank. well, that's the big concern. _ other bank. well, that's the big concern. we _ other bank. well, that's the big concern. we have - other bank. well, that's the big concern. we have seenl other bank. well, that's the | big concern. we have seen a positive response certainly in this country. the banks have sai

you know, we see first republic is getting aid as well from the fed, as well as some jp morgan.egulators backstop all deposits at all banks or are we going to see fallout from a potential run on other banks? >> well, i think the question you asked, maria, really gets to why have the limit at all, why have the cap on deposit insurance if you're going to do this every time that there is a large enoughs institution to call into question the safety of all uninsured deposits and we saw this in 1984 with couldn't p then tall illinois, -- continental illinois, 1991 with bank of new england, the 33rd largest bank. it wasn't considered a big bank. when they failed, the fed and treasury and fdic stepped in to back the uninsured he depositors. they didn't want every money center bank monday morning saying we need to borrow, people want their money back. the question going forward is about regulation and whether you're going to see new calls here to regulate banks including the banks that had regulationses eased a few years ago like silicon valley bank. there's going to be finger pointing a

you have the likes of jp morgan saying we may have seen the peak of stocks this year already.? gina: thank you for having me, it's a delight to be back in the region. the equity market is actually anticipating this fed. pivot and that is a risk, that the fed is unable to justify market expectations. what we have seen in particular with the flight tetra tech stocks would imply that equity market is taking their cues from the bond market but if the fed does not pivot this time, that there will at least reduce interest rates materially by the end of the year. expectations for inflation to moderate paving the way for the fed. people are focused of the recession and recession risk. i think the equity market priced a recession coming. where i think there mispriced is the degree to which that can reduce inflation and force that had to prevent -- force the fed to pivot. rishaad: are they pressing and perhaps credit problems? not necessarily a credit crunch, but credit tightening, perhaps the effect of what we have been seeing with the banks? gina: yeah, we have definitely seen banks,

they have agreed with jp morgan to put $70 billion into it. my guess is they'll put in whatever needs to be put in to keep it going because the bank is a good bank. there's nothing wrong with the bank. it's got an earnings problem in the short run but it's a good bank. so i think -- go ahead. maria: brenda, i want to get your take on the consumer because the federal reserve's meeting next week. we've got that two day meeting next week and the whole thinking here was maybe this bank upset is going to change the fed's thinking and maybe we won't get a rate hike. that certainly was the conversation at goldman sachs the other day. what does this banking crisis tell us when it comes to the consumer and broader economy from your standpoint? >> exactly, maria. we also have february inflation numbers coming out in just a little bit as well. i think when it comes to the u.s. consumer, january showed that the u.s. consumer was spend morgue than it had in the last two years. but that's not sustainable. here are things that i'm looking at. for example, ye

we were speaking to jp morgan yesterday, they were saying one of the biggest risks for markets is a fed hiking at 25 basis points having to step back up to 50. that isn't something markets are adjusting to yet and that is a risk, they say potentially the biggest at this point. do you align with that view? lena: the argument is basically correct. i think it is not a risk. this is a core scenario. the reason i say this is the whole debate about when the fed will pivot, when the terminal rate will be reached and we can start talking about rate cuts is simply not relevant for this cycle, for this economy. we are in a high inflation regime, inflation is a long-term covered phenomena exacerbated by the pandemic, but is really here to stay by virtue of the fact that we are looking at a smaller labor force growth in the future and weaker productivity. that means structurally higher inflation as far as the eye can see, that is what markets are telling us, real interest rates will have to remain higher for longer. that means nomura to cuts next year, that also means we are only a third of the way

ed: jp morgan, citi, bank of america. we were excited to have you because you sat at both sides of the table. how does this play out to the real world of economy question are all of these headlines that have crossed. if you're seeing they are trying to run a business, -- if you are sitting here trying to run a business, how worried should you be? sultan: if i am the manager of a start up, i should have my capital distributed amongst number of institutions. in terms of products and services, maybe there are retail and smaller banks that make more sense. to figure out what to do with my business, that is a entirely different conversation. we are seeing a cultural fight going on between digital native people who want digital technology in their banking and financial system, whether it is any of these modern ways of using technology. a revelatory environment that is fundamentally still analog. i think we are going to see a lot of impacts. there are a lot of companies that i am looking at whether s potential or current investm

co, a scalable proof from jp morgan's private project.e of what you're trying to build and support within the ecosystem first and foremost take us to the interplay of centralized finance untraditional finance trying to interweave itself. how much are people worried about some of the contagion risks? not signature, but silver gate and what it means for the growth in that ecosystem. >> hi, next. -- thanks. companies based in the u.s. if you want to have these u.s. companies you want to have access to bank accounts and be able to do payroll and health care and things like that so it's one of these realities that a decentralized world we still have to be able to play and integrate with banks. i don't know quite where it's going but it needs to be something that happens. otherwise, for not going to have companies that function. ed: case in point we are talking about silver gate and almost traditional lender but lending to the crypto industry. this is what we asked our audience this is the worst that happened or is there more to come. how do yo