we have global markets reporter seema mody here with more. seema, good morning. this is one of the top 20 biggest banks in the country. it served the start-up and venture capital communities. in 48 hours, it basically went belly up. how did this happen and why so quickly? >> reporter: peter, good morning. it happened at alarming speed. it started wednesday when silicon valley bank needed to raise $2 billion to shore up the balance sheet due in part to a bad bet it made on bonds. that pushed customers to run to the exits. simultaneously, capital investors were telling clientsz clients to get the money out. $42 billion of money sent the stock lower. and the federal regulators took control of the bank. the powerful name in california which plays a role in the tech industry. >> seema, it is the second largest failure ever in banking history. a lot of americans are looking at this and it is making them concerned about their own savings. there will be some ripple effect or a so-called contagion in other banks. how worried should people be about their money? >> reporter

still dropping after hours seema mody is standing by with more hey, seema. >> hey, tyler, expectations were high, the stock up about 10% year to date blowout comp sales for the fourth quarter that's nearly double the analyst estimates, however, it's 2023 comp sales forecast came in below wall street targets. that's why the stock is down we saw skin care outperform ariana grande's perfume and more were cited as drivers they have plans to open 25 to 30 stores this year, while ulta is expanding its partnership with target kimble says luxury beauty, that is an emerging market for ulta they said they're looking to add new brands to all categories >> julie, let's trade ulta here. this has been a stock to my casual observation that everybody seems to love. this is probably one of the best categories in retail beauty is pretty important, that it does well in good times women love to spoil themselves my question sometimes is, what does this do when tiktok goes away that's obviously where guy and i learn all our makeup tricks. i don't know [ laughter ] >> overall, what is impressive is the level

he said he sees value here a vote of confidence for the embattled industrialist. >> seema mody, thank frances rivera in new york with the latest >> dom, good morning another norfolk southern train derailed in ohio this time 28 cars jumped the tracks near springfield. none of the hazardous materials cars deroiailed. less than a dozen residents within 1,000 feet of the site were asked to shelter in place for nine hours. >>> president biden spent his sunday in selma, alabama in the speech in front of the edmund pettus bridge, he talked about the civil rights movements and safeguarding rights today. >>> novak djokovic swung and missed to play in the u.s. organizers of the bnp in california announce he withdrew. he was seeking an exception out the covid vaccine. 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 tren

joining us now with more is cnbc's seema mody. good morning.this? >> well, jose, i can tell you it is widely seen as one of most consequential fed meetings. quarter percent hike is the expectation. it is not unanimous. the bigger focus will be what tone fed chair jerome powell strikes aç■ it relates to the future of interest rate hikes. how does powell handle questions around the banking sector, which remains under pressure? is he seeing any signs of systemic distress or a credit crunch? he'll have to acknowledge tp8 inflationarylp backdrop which still shows prices moving higher. americans are feeling it at the grocery store or when they travel or eat out at a restaurant, it is going to be questions around how he handles the banking sector and +- inflation. there is also this growing belief among economists as banks pull back on lendingflationaryç down. this will be a meeting where we'll get a lot more clarity given thee1 events that have tan place over the last twoq e1week. >> and, seema, we're getting new data that gives us a closer look at t

who learned what during the last financial crisis and who's better for it. >> seema mody on the bankss going to be an eventful set of earnings in a couple of weeks. >>> let's get a news update with contessa brewer. >> good morning, carl. the new york police department says it's seen no credible threats to the city after the indictment of former president donald trump the nypd has had mobilization plans prepared since last week in anticipation of potential criminal charges being filed against the former president trump is due to appear in court in lower manhattan tuesday for arraignment in this case. >>> the justice department has filed a lawsuit against norfolk southern over the railway company's train derailment in ohio that lawsuit alleges clean water act violations that allegedly occurred due to the derailment, which caused a fire and local evacuation. >>> the vatican says pope frances is expected to released from the rome hospital where he's being treated for bronchitis they say the pope will be in st. peter's square for palm sunday mass this weekend. wishing him the best recovery

seema mody keep an eye there.are big name llininials worth buyg foowg recent declines in we'll trade it in today therese-stock lunch. but to make it powerful enough to connect your data wherever it is, you need cdw and netapp. cdw experts will work with you to understand your needs, then customize a netapp cloud services solution to integrate data management for all your clouds, helping you reduce spend, improve security, control data 24/7 and automatically detect anomalies. in the cloud, at least. netapp makes efficient cloud management possible. cdw makes it powerful. i'm so glad we did this. i'm so glad we did this. i'm so glad we did this. i'm so glad we did this. i'm so... ...glad we did this. [kid plays drums] life is for living. let's partner for all of it. i'm so glad we did this. edward jones (funky electronic music) i'm so (narrator)d this. all in. as in, never partway in. never halfway in. all in is more than just buying in. it's investing in... her. them. him. and them. do they look "sort of" in? this

seema mody has the details seema? >> reporter: melissa, that's right. let's take a look at shares of silvergate which are moving lower. the stock is down 23%. in a statement the bank says it requires additional time to perform analysis and record journal entries related to subsequent events and to complete management's evaluation of internal controls over financial reporting. this is, of course, one of the top banks in the cryptocurrency space. shares down 22% here over time melissa? >> wow, seema thanks, you. seema mody, probably about the worst headline you could possibly get from a company if they are going to delay their 10q. >> if you're a bank. >> yes. >> if you're khegg, not to make disparaging remarks against chegg, i totally make that up but if you're a bank, that's disconcerting. what happened, between the time they announced the earnings and the filing of the 10k, yeah, that's -- that's -- they should be concerned. >> that wasn't that long ago. >> it wasn't that long ago, so there were stories about this investigation into, you know, ftx's re

se seema mody with more >> lockdowns and covid heavily weighed on growth last year which slowed to 3%street is optimistic that the leadership will unveil ambitious gdp targets. citi the most bullish with 5.7% forecast for the year. equally important for wall street is the speech that follows the gdp unveil where the new prime minister will address how the country is addressing structural issues such as aging demographics, the debt and big tech, that's been a big headwind for names that sold off in the month of february but still up 40% from their respective lows with no resurgence in covid following the lunar new year and rebound in manufacturing, evercore strategist says do not be in panic if a stimulus package is not unveiled. expectations are high. we're looking at the kweg china etf for first upside this has been a market-moving event. goldman sachs examined the china etf from 2011 to 2020 and found that one month after the national people's congress, the index tends to have positive gains. we'll see if history repeats itself. >> seema mody, thanks. >>> this year's national people

nbc's seema mody is with us. what has investors so concerned about the collapse of the silicon valley bank? >> well, chris, svp is certainly the story of the hour on wall street as the bank has been shut down for the day by california regulators, this as the large institution in silicon valley with really broad reach across the technology industry has failed to find a buyer as a run on bank outpaced the sale process. that's according to our reporting. financial tumbling 60% on thursday after the bank announced a plan to raise $2 billion in capital, and today the stock has been halted after dropping another 60%. shares never reopen for trading, but clearly a lot of talk about how the federal reserve's aggressive rate hikes have impacted financial institutions like svp which clearly was caught off guard and now the question is whether this will have broader implications two weeks ahead of the fed meeting coming up on march 21st. >> seema mody, thank you very much for that. donald trump's attorneys say the hush mone

jose. >> seema mody, thank you very much. seeing you. >>> china's xi jinping and russia's vladimir putin together in moscow today. we'll break down why she is there and what putin is helping to get from this visit. >>> and later, how iraq is faring today 20 years after the u.s. invaded. our very own richard engel is back in baghdad. >> reporter: it's hard to believe that this is what baghdad looks like today. people are back out onto the streets. think he's posting about all that ancient roman coinage? no. he's making real-time money moves with merrill. so no matter what the market's doing, he's ready. and that's... how you collect coins. your money never stops working for you with merrill, a bank of america company. ♪♪ inner voice (kombucha brewer): if i just stare at these payroll forms... my business' payroll taxes will calculate themselves. right? uhh...nope. intuit quickbooks helps you manage your payroll taxes, cheers! with 100% accurate tax calculations guaranteed. ♪ music (“i swear”) plays ♪ jaycee tried gain flings f

. >> seema mody pointed out a good note there's two rock companies we let everybody merge for a longwere stupid but, you know, there are two rock companies in the country, and they are both -- they're going to be sold out because of the infrastructure bill. and i don't know where the rock's going to come from. i don't know where the earth movers are going to come from. i don't know where the workers are going to come from and so, what's happened is that we have a lot of people who are in a sweet spot here, many more than people realize, they're just going to do tremendously. >> you were hot on new corps late last year >> you talk with new corps and the amazing thing is, those are regular guys when you talk about hype, they don't have any hype. but they also have been putting up plants everywhere in order to meet demand, and as soon as the planet's done, it's sold out and they have been saying, why does the street -- take a look this is a good example of why the street is sometimes really stupid i've used "stupid" too many times. i apologize to lisa, my wife new corps is still selling

cnbc global market promoter seema mody joins us let's start with the wild woke that we had.t we had. so much volatility. the markets closed sharply down on friday after you had 11 banks essentially bailing out a regional bank. president biden wants congress to take new actions. where are we at the end of the week and how much concern is there for this stability of regional banks moving forward? >> reporter: kristen, it was an active week. bankers are working overtime this weekend as uncertainty grows around the financial sector. just last night, we learned that first republic is in talks to sell a piece of its business after just receiving a $30 billion lifeline from 11 u.s. banks. separately, the financial times reporting that ubs may acquire a part or all of credit suisse, the embattled swiss bank. a fluid situation. no deals have been formally finalized. it falls the sharp decline on bank stocks this week with concerns of customer withdrawals and treasury secretary janet yellen is said to have met with jpmorgan chase president jamie dimon with more banks under scrutiny. >

let's go seema mody for the cnbc news update. >>> starting with weather, more dangerous weather is brewingmidwest and south according to meteorologists from the national weather service's storm prediction center. an outbreak of severe thunderstorms that could cause hail, damaging wind gusts and tornados are expected to impact at least 15 states just one week after a deadly tornado killed dozens in mississippi. >>> the environmental protection agency has approved california's sale to faze out diesel-powered trucks by 2040 it's to improve air quality in heavy traffic areas. >>> wimbledon is reversing its ban on russian and belarusian players. it is set to begin on july 3rd. >>> ahead on "power lunch," lost in space virgin orbit failing to secure funding, ceasing operations. we'll explain how a once hot spac got to this point when "power lunch" returns. go. go air that runs factory. go sensors and software. go find leaks. go fix-em. emerson technology detects compressed air leaks to save manufacturers, like colgate, over 20% in energy costs. go brush your teeth. go boldly. emerson. we planned

. >>> let's get to seema mody for a cnbc news update. >> here's what's happening at this hour. a far-right extremist was sentenced to three years in jail for directing people to the office of nancy pelosi. the federal judge in the case calls the actions of riley williams utterly reprehensible. >>> in houston a suspect accused of holding hostages several days in a motel was shot and killed by fbi agents during a rescue op rags. all hostages are safe and no agents were injured. >>> and in tel aviv, police using water cannons as thousands of protesters blocked a main road with some members of the military joining ongoing demonstrations against benjamin netanyahu's plan to weaken the judiciary. the country's defense minister now wants the prime minister to drop his proposal. we'll be watching to see if he does so. >>> still to come, we're monitoring windchill where the monitoring windchill where the tiktok ceo is testifying before what if you were a global energy company? with operations in scotland, technologists in india, and customers all on different systems. you need to pull i

i'm seema mody with your news update this hour.ears no indictment of donald trump today or this week. three sources familiar with the situation tell nbc news that the new york city grand jury investigating the former president is meeting today but will be dealing with another unrelated matter. typically the grand jury has not been in session on fridays, although that could change. >>> manhattan district attorney alvin bragg's office is telling several gop house chairmen their request for testimony is, quote, an unprecedented inquiry into a pending local prosecution and an illegal incursion into sovereignty. >>> the bank of england is raising a key interest rate by a quarter of a percent to 4.25%, one day after government data shows uk inflation spiked to an annual rate of 10.4% in february. >>> a position in the s&p equal weight energy etf. >> i added rye is about 50% chevron and exxon, but i added to bhp, devon and faang. and last week at the apex of silicon valley and the regional banks selling off about fear, the markets were ac

. >> seema mody, thank you. >>> the first physical contact between u.s. and russia since the war in ukraine began what russia is saying it intends to do with that downed u.s. drone. >>> plus, we will ask senator bob menendez, chairman of the foreign relations committee about that and what it means with our relationship with russia and a whole lot more. you're watching sjose diaz-balat reports on msnbc heir parents, it's a learning opportunity. come on in. [ chuckles ] the more, the merrier. paris, huh? bonjour! we got any out-of-towners in the elevator? tom. it is not easy. 10th floor, huh? must be a heck of a view. okay, see how everyone else is facing this way? progressive can't save you from becoming your parents, but we can save you money when you bundle home and auto with us. okay, that was terrible. okay, let's hang back. we're gonna try that again. think he's posting about all that ancient roman coinage? no. he's making real-time money moves with merrill. so no matter what the market's doing, he's ready. and that's... how you collect coins. your mo

now, it's been down and the dow is down about 375 points at this hour joining us now is cnbc's seema mody what are you watching for today? >> good morning, jose. great to be with you that $30 billion rescue the san francisco lender first republic is certainly significant it involves many of america's largest banks from jpmorgan chase, citigroup, bank of america, among others. in total, 11 banks in a joint statement this morning, they wrote this deal should give confidence in the country's banking system however, optimism seems to be short lived. investors debating whether this deal really solves first republic's issues. the stock is down another 20% today as is the broader market it's hard not to step back and reflect as to how the stress in the financial system that has come to light in the past seven days is pushing interest rates down ahead of a key policy decision next week, jose >> how are these issues and certainly interest rates playing a part in all of this? >> well, with interest rate fund fed futures falling dramatically ahead of a fed policy decision, the question is what will

seema mody is here with their side of the story. >> the narrative has changed since the start of theurrounding china's reopening, we have seen accelerated emerging outflows in the past two weeks. asian investors have exposure to the tier 1 bonds. the biggest concern is that foreign banks will start to tighten their lending standards. that puts extreme pressure on large deficits. countries like turkey, chile, and colombia. worth noting, central banks, including the ones of these countries have implemented new risk management tools since the greater financial crisis. they're smaller countries. they have less of a buffer than developed economies like the united states. those are the countries to watch or are potentially at risk if we see some type of contagion effect. looking ahead to the fed decision, if we do see a smaller than expected interest rate hike, goldman sachs points out that is good news for the emerging markets that are sitting on high dollar denominated debt. they want lower rates and a weaker dollar. by the way, we have seen four consecutive days of losses. that sort of

thank you, seema seema mody after this we look ahead to next week's fed decision with the former fedcretary sarah bloom raskin to hear how the current crisis back tors in. >>> torsten shok joins us saying bond yields haveead d pkeanis causing for a hard landing whatever you see, at pgim we can help you rise to the challenges of today, when active investing and disciplined risk management are needed most. drawing on deep expertise across the world's public and private markets in pursuit of long-term returns... pgim. our investments shape tomorrow today. somewhere out there is that one-in-a-million. someone who thinks with their hands. who can shape raw materials into something meaningful. and who wants to serve in their own way. if you're out there. if you're looking for more. we're looking too. we're calling on a new generation of builders for navy's next-gen submarines. [music - cover of blondie's “dreaming”] [music playing] ♪ imagine something of your very own. ♪ ♪ something you can have and hold. ♪ ♪ i'd build a road in gold just to have some dreaming, ♪ ♪ dreaming is free. ♪ acce

our seema mody joins us now with a look at where thefá commodity could go from here and what the markethis economyçó gol continues to shine closing just be for its fourth positive week in a row and outperforming u.s. equitiese1 so far this year. goldman sachs joining other wall street firms in raisinge1 its 12-month price target to 2050 an ounce from 1950. writing that etf inflows and the wealth effect from the east, specifically china, will continue to providew3 support f the yellow metal. keep in mind the all-time high for gold was 2,075 hit back in this as we keep a close eye on féuhe dollar which really plays big role in gold outperformance. remember, it was in mid june 2022 when fed chair jerome powell admitted that tapering could happen. that sustained the dollar, which ra november 2nd of last year when powell raised interest rates for thee1 fourth time. at the dollar started to weaken and that's when we saw gold move higher. if the fed reverses course and keeps rates continuingi] to go higher that of course could re. >> for sure, seema. i've heardu■."■ it argued that y interest r

. >>> now to seema mody. >> large areas of northern and central california are covered by excessive rainfallwatches as another pacific storm comes ashore with heavy rains that is being fueled by what meteorologists are calling an atmospheric river, a stream of dense subtropical moisture coming from the warm pacific waters around hawaii >>> florida governor ron desantis is not a presidential candidate yet, but he's increasingly looking like one. he's in iowa signing copies of his new book and promoting his freedom blueprint before voters in the state decide who they want to be party's nominee. >>> tomorrow, american skier mikaela shiffrin will try to set a new record with her 87th career world cup win her 86th win today put her in tie with a skier from sweden who held the title for the last 34 years. >>> still to come on "power lunch," we're looking at the regional banks down as a result of svb's demise. we'll speak to an analyst who says this is not contagion and recommends some of them as a buy. buy. we're back after this. at adp, we understand business today looks nothing like it did yeste