Speaker 1: My from the Bloomberg Interacted Burger's studios is Bloomberg day
Speaker 1: Break for Monday, March thirteenth. Coming up today, the government
Speaker 1: backstops the financial system after the collapse of Silicon Valley Bank.
Speaker 1: President Biden says those behind a failure will be held responsible.
Speaker 1: Markets dial back rate high bets in the wake of
Speaker 1: the fallout. N HSBC rescues svb's UK business, buying it
Speaker 1: for just one pound. A winter storm. Watching the facts
Speaker 1: starting tonight, and everything everywhere all at once. The big
Speaker 1: winner at the Oscars, I'm John Tucker. Will have more
Speaker 1: straight Ahead. I'm John stash Hour and swards. The Knicks,
Speaker 1: one in La the Nets, one in Denver, shutout, win
Speaker 1: for the Devils, the Rangers lost in overtime. That's all
Speaker 1: straight Ahead on Bloomberg day Break. The business news you
Speaker 1: need disturn your day in just one fifteen minute podcast
Speaker 1: each pointing on Apple, Spotify, The Bloomberg Business appen everywhere
Speaker 1: you get your podcasts. Good morning, I'm Abe Morris and
Speaker 1: I'm Karin Moscow. Here are the stories we're following today.
Speaker 1: We begin with breaking developments gripping Wall Street. US authorities
Speaker 1: have raced to stem concerns about the financial system after
Speaker 1: the collapse of Silicon Valley Bank. They've introduced a new
Speaker 1: backstop that fedeficials say is big enough to protect the
Speaker 1: nation's deposits. Treasury Secretary Janet Yellen says there will not
Speaker 1: be a bailout for SVB. During the financial crisis, there
Speaker 1: were investors and owners of systemic large banks that were
Speaker 1: built out, and we're certainly not looking and the reforms
Speaker 1: that have been put in place means that we're not
Speaker 1: going to do that again. Treasury Secretary Janet Yellen made
Speaker 1: the comments on Face the Nation from CBS heard Sundays
Speaker 1: here on Bloomberg Radio. Well, amy s andp futures are
Speaker 1: a little change and treasury yields are falling, but concern
Speaker 1: is high on the impact as VP will have on
Speaker 1: the banking industry. We spoke with Prestige Economics president Jason Schanker.
Speaker 1: The question is now how many other banks out there
Speaker 1: are there that could still have problems despite the feds
Speaker 1: moves today, And that's why they're taking such extreme measures
Speaker 1: to try to prevent other bank runs and failures, as
Speaker 1: banks might be forced to mark to market any treasuries
Speaker 1: they hold but that's the question what else is there?
Speaker 1: And Prestige Economics president Jason Schanker said the top priority
Speaker 1: for officials is stave off a run on other banks.
Speaker 1: Bill Ackman is weighing in on the fallout from SVB.
Speaker 1: The Pershing Square CEO says more banks will likely fail
Speaker 1: despite intervention from US authorities. At the same time, Akman
Speaker 1: as applauding the government for providing quote a clear roadmap
Speaker 1: for how it will manage bank failures in the future.
Speaker 1: Well Amy, the fallout from the collapse of SVB has
Speaker 1: been widespread and is showing up most in regional banks.
Speaker 1: We get the latest live with Bloomberg Steve Rappaport. It's Steve,
Speaker 1: good morning, Good morning, Karen and Amy. The ripple effect
Speaker 1: from svb's implosions stretched all the way to the East Coast,
Speaker 1: with New York state financial regulators closing Signature Bank yesterday.
Speaker 1: The Treasury Department and other federal agencies say all depositors
Speaker 1: funds will be protected under a risk exception similar to
Speaker 1: the one implemented at Silicon Valley Bank. A source tells
Speaker 1: Bloomberg's Signature managers were caught off guard by the decision
Speaker 1: to put the bank in receivership after a flood of
Speaker 1: withdrawals that began Friday had stabilized over the weekend. Live
Speaker 1: in New York, I'm Steve Rappaport, Bloomberg Daybreak. All right,
Speaker 1: thank you, Steve. The SBB collapse is also hitting First
Speaker 1: Republic Bank shares plunging sixty percent in early trading. Pagras
Speaker 1: Bankorp and Western Alliance are also feeling the heat, down
Speaker 1: more than twenty percent. Milamy. Washington appears to be moving
Speaker 1: quickly to stem the fall out, and President Biden says
Speaker 1: those behind the collapse of Silicon Valley Bank will be
Speaker 1: held accountable. We expect remarks from the President had roughly
Speaker 1: eight am Eastern time, and Scott car reports from our
Speaker 1: Bloomberg ninety nine one newsroom in Washington. President Biden says
Speaker 1: he's ordered the Treasury Department and his economic advisors to
Speaker 1: look into the failures of Silicon Valley Bank and Signature Bank.
Speaker 1: Biden says he's firmly committed to holding accountable those responsible
Speaker 1: and to strengthen the oversight and regulation of larger banks.
Speaker 1: He's expected to outline what measures the administration will take
Speaker 1: in remarks this morning this after a statement from the Treasury,
Speaker 1: Federal Reserve and the FDIC jointly pledged that Silicon Valley
Speaker 1: Bank depositors will have access to all of their money
Speaker 1: starting today and that taxpayers won't be put on the
Speaker 1: hook for any losses. Scott car Bloomberg Daybreak, All right,
Speaker 1: thank you, Scott. We're also seeing the effects felt overseas.
Speaker 1: HSBC is coming to the rescue in the UK. It's
Speaker 1: buying the British arm of Silicon Valley Bank. Let's go
Speaker 1: to London and get the latest from Bloomberg Daybreak, Europe
Speaker 1: anchor Caroline Hepker. Days before the UK budget, a major
Speaker 1: catastrophe averted. HSBC buys SVBUK for a pound. The Chancellor
Speaker 1: says deposits will be protected with no taxpayer support and
Speaker 1: customers with SVBUK will be able to bank as normal.
Speaker 1: Hsp Ecco no Quinn says it makes strategic sense. But
Speaker 1: will the government have given HSBC any further guarantees. We
Speaker 1: don't know. In London, I'm Caroline Hepke foot Blue Bag
Speaker 1: day Break. All right, Caroline, thanks well. The collapse of
Speaker 1: SVB will have a major impact on the future of
Speaker 1: interest rates, it's according to Goldman Sachs. Economists at the
Speaker 1: firm say they no longer expect a rainheigh next week.
Speaker 1: We get more from Bloomberg's Valerie title, this is completely
Speaker 1: repricing the FED path from here. The two year notes
Speaker 1: in the last three days have rallied over seventy basis points.
Speaker 1: That is the biggest three day move since Black Monday
Speaker 1: in nineteen eighty seven. Just to give it some time,
Speaker 1: just to give it some perspective there. But the Goldman
Speaker 1: note out just a few hours ago claiming that this
Speaker 1: is enough for the Fed to communicate a pause in
Speaker 1: March to some way extended that move in the front end.
Speaker 1: It's been so notable. We've gone from pricing zero cuts
Speaker 1: in the second half of this year to nearly forty
Speaker 1: basis points of FED cuts, and Bloomberg's Valery Titel says
Speaker 1: FED officials are in a quiet period before next week's meeting.
Speaker 1: Markets are currently pricing in less than fifteen basis points
Speaker 1: of easing at that policy decision. Thank you, Karen. Forty
Speaker 1: degrees light rain in New York, but a winter storm
Speaker 1: is coming for that. We're joined by Bloomberg's John Soccer
Speaker 1: Good morning, John. It's a nor easter in fact, about
Speaker 1: to hit the Utri and State area. And let's get
Speaker 1: the very latest the update from Bloomberg Meteorologists Ron Carrolity area.
Speaker 1: But it's good, John. We have a big storm headed
Speaker 1: towards the Tristate area, but it's going to be rain
Speaker 1: on the front end of the system. Today, it'll fall
Speaker 1: off and on. It'll be breezy, highs near forty five.
Speaker 1: Rain could be heavy at times Tonight Brec. Thirty five
Speaker 1: to forty. Look for the rain to change the snow tomorrow.
Speaker 1: City's probably going to pick up one to three inches.
Speaker 1: By evening. It'll be windy, temperatures thirty five to forty.
Speaker 1: They're gonna fall the suburbs though, the snow is going
Speaker 1: to be heavier and the amounts could be higher much
Speaker 1: and many of the suburbs could see over six inches
Speaker 1: from this storm. It all ends tomorrow night. We're windy,
Speaker 1: lows thirty to thirty five, and then it gets better
Speaker 1: are on Wednesday, but certainly gonna have some problems tomorrow afternoon,
Speaker 1: especially in the suburbs. John, all right, Rob, thanks very much.
Speaker 1: Michael Cohen, the longtime lawyer and fixer for former President
Speaker 1: Donald Trump, scheduled to testify today before a Manhattan grand
Speaker 1: jury prosecutors investigating hush money payments to an adult film
Speaker 1: star in the twenty sixteen campaign. Meanwhile, former Vice President
Speaker 1: Mike Pence raised some eyebrows over the weekend talking about
Speaker 1: his ex boss in Washington. Penn says history he's going
Speaker 1: to hold Donald Trump responsible for the January sixth riot
Speaker 1: of his followers. Political analyst Larry Sabadeau, you can't put
Speaker 1: Trump in the past simply by nominating somebody else. I
Speaker 1: think Pence understands that, and he understands that his record
Speaker 1: is tied to Trump's. Oh. Pence's comments came at the
Speaker 1: annual Gridyir, a dinner attended by politicians and journalists. A
Speaker 1: New York City Council member cracking down on street vendors
Speaker 1: in downtown Flushing. Main Street was declared a no vending
Speaker 1: zone in twenty eighteen, but New York City Council Member
Speaker 1: Santa On sayses not seem to be any enforcement, just
Speaker 1: calling for the streets to be cleared. At the oscars Sunday,
Speaker 1: everything everywhere, all at once when the lion's share of awards,
Speaker 1: including Best Picture, Michelle You making history as the first
Speaker 1: Asian start to win Best Actress, and Jamie the Curtis
Speaker 1: won Best Supporting Actress Surreal and Proud, and obviously I
Speaker 1: would like to see a lot more women be nominated
Speaker 1: so that there's gender parody in all the areas, in
Speaker 1: all the branches. And I think we're getting there. We're
Speaker 1: not anywhere near there. Brendan Fraser won Best Actor for
Speaker 1: The Whale Global News twenty four hours a day, powered
Speaker 1: by more than twenty seven hundred journalist and analysts, you
Speaker 1: over one hundred twenty countries. I'm John Tucker, this is Bloomberg. Amy,
Speaker 1: all right, thank you, John Tell. Now that the Sports
Speaker 1: Report brought to you by Tri State Duty. For that,
Speaker 1: we bring in John dash Our. Thanks Amy. While they
Speaker 1: were holding the Oscars in Los Angeles, the Knicks took
Speaker 1: on the Lakers, they had lost in La Saturday. The
Speaker 1: Clippers a game where Julius Randall shot only five of
Speaker 1: twenty four much better game for Randall, scored thirty three points,
Speaker 1: got a lot of help from a teammates. Randall left elbows, stops,
Speaker 1: look at Costcort deflected Barrett the catch two to shoot
Speaker 1: right wing three knocks it down RJ. Barrett delivering in
Speaker 1: the fourth quarter. Now with twenty eight points eleven of
Speaker 1: the period time out Lakers. Nicks with their largest lead
Speaker 1: one oh six ninety six with five minutes to go
Speaker 1: in Tinselton, the ESPN your Barrett scored thirty at twenty
Speaker 1: in the second half. Nicks pete the Lakers or without
Speaker 1: the injured Lebron James one twelve, one oh eighth the
Speaker 1: road Hippins tomorrow in Portland. Impressive win for the Nets.
Speaker 1: The Nuggets only lost five times all season. In Denver
Speaker 1: Brooklyn one one twenty two to one twenty. They had
Speaker 1: seven and double figures, led by mcl bridges of twenty
Speaker 1: five point. Spencer Dinwitty had sixteen assists. Rangers in Pittsburgh
Speaker 1: got a gamey time goal from Chris Tryner his twenty eighth,
Speaker 1: but lost two on a crystal tangle in overtime. Devils
Speaker 1: won three nothing over Carolina, now tied for first with
Speaker 1: the Hurricanes in the division. At the World Baseball Classic,
Speaker 1: US lost to Mexico eleven five now one and one.
Speaker 1: In Tokyo, Shohei Otani, who had pitched Japan to victory
Speaker 1: and its opener hit a four hundred and forty eight
Speaker 1: foot home run and a win over Australia. Scottie Scheffler
Speaker 1: Baccus Gulfs world number one took a Torch championship by
Speaker 1: five shots. Rutgers was hoping to hear its name called
Speaker 1: on the Ncuba tournament field. Was said ESPN's Joe Lnardi
Speaker 1: had them getting in. It's the only one he got wrong.
Speaker 1: The Scarlet Knights had a big one over Purdue, but
Speaker 1: they were hurt by losing seven of their last ten games.
Speaker 1: John Stash at Bloomberg Sports live from coast to coast,
Speaker 1: from New York to San Francisco, Boston to Washington, d C.
Speaker 1: Nationwide on Sirius XAM, the Bloomberg Business app, and Bloomberg
Speaker 1: dot Com. This is Bloomberg Daybreak. Good Monday morning. I'm
Speaker 1: Amy Moore. As we continue to follow the collapse of
Speaker 1: Silicon Valley Bank, the fallout and the risk of intagent.
Speaker 1: The US government working now to shore up banks and
Speaker 1: ensure they can meet potential demands by customers. Bloomberg Intelligent
Speaker 1: Senior analyst Herman Chan covers regional banks and he joins
Speaker 1: US now with his take. Thanks so much, Herman for
Speaker 1: taking the time. So let's talk first of all, the
Speaker 1: risk of contagion. What is that risk now? Sure? Thanks Amy,
Speaker 1: The risk has been contagient is still up in the air.
Speaker 1: What the Federal Reserve and the FDIC have done with
Speaker 1: the announcements last night with backstopping the depositors of SVB
Speaker 1: and Signature is something that is very profound and I
Speaker 1: think should help reassure the fears. And the Fed also
Speaker 1: announced a new liquidity backstop, so in effect, the liquidity
Speaker 1: fears that really happened with SVB and potentially other banks
Speaker 1: has been eased. But the market is telling you something different,
Speaker 1: which is a bit surprising with First Republic in some
Speaker 1: other banks down premark today. Uh, that's that's something that
Speaker 1: we're going to be monitoring going forward. Now you focus
Speaker 1: on regional banks, that is your wheelhouse. What do they
Speaker 1: need to be watching for. What's the takeaway for them?
Speaker 1: What's the takeaway is the market fears are a bit
Speaker 1: dis concerning. Um that the management of these banks needs
Speaker 1: to come out and offer some tangible ways that they
Speaker 1: can rectify this. That's something that First Republic tried to
Speaker 1: do yesterday. Evening with the announcement that they have increased
Speaker 1: their liquidity with some funding from Jping Morgan and also
Speaker 1: the FED. So so that's something that it should help
Speaker 1: them going forward. But at the end of the day,
Speaker 1: the depositors will be made whole. What is the fear
Speaker 1: is that the bondholders and the equity holders need to
Speaker 1: reassess what's going on now in First Republic. Their shares
Speaker 1: are down sixty five percent in the pre market. Is
Speaker 1: there another shoe that is going to drop? That's hard
Speaker 1: to say. We think First Republic is a very strong institution.
Speaker 1: It has throughout its history very nigeble credit losses from
Speaker 1: their bread and butter home equity and residential mortgage lending.
Speaker 1: It's one of the banks that is viewed as the
Speaker 1: port in the storm during uncertainty. So with it the
Speaker 1: stock down today, that's something that is very disconcerting for us.
Speaker 1: Is there a concern that the efforts that the government's
Speaker 1: taking to shore up banks and to try to keep
Speaker 1: everybody whole, Is there a concern that that might go
Speaker 1: too far? At this point, the FETE is trying to
Speaker 1: reassure the market that contingent risk is something that is
Speaker 1: contained what the FETE is trying to do is that,
Speaker 1: and this is a bit different from the global financial crisis,
Speaker 1: is that the depositors are going to be made whole,
Speaker 1: the equity holders and the bondholders. That's going to be
Speaker 1: a different story. So after the fall of SVB in
Speaker 1: New York Signature Bank, what's the priority moving forward to
Speaker 1: maintain stability to keep this from happening again. Yeah, the
Speaker 1: focus now is going to be on what's going to
Speaker 1: happen with confidence with some of these other regional banks.
Speaker 1: What you've seen is that the confidence there for the
Speaker 1: largest banks in the United States, so Bank of America, JP,
Speaker 1: Morgan Chase, Wells Fargo, those are going to be the
Speaker 1: banks that will be the strength of the banking sector
Speaker 1: going forward and has been. There's going to be some
Speaker 1: reckoning given the fact that SVB and Signature were very strong,
Speaker 1: faster growing regional banking institutions that were very well established
Speaker 1: in the marketplace, and the reckoning from those fallouts. So
Speaker 1: are there risks with the deposits at original bank? What's
Speaker 1: the deposits at this point? No? I think what the
Speaker 1: rid across is that with the with the regulators backstopping
Speaker 1: the depositors for both signature and SVB that any further
Speaker 1: contagion the depositors will will be made home. This has
Speaker 1: been moving really really fast, and I was going to
Speaker 1: ask you where you're going to be watching for the
Speaker 1: next few days, but maybe the next few hours regardless,
Speaker 1: what are you going to be watching for? What are
Speaker 1: the red flags that will trigger you? Like everybody else,
Speaker 1: We're just going to be looking at the stock prices
Speaker 1: today and how the stocks react to the news that
Speaker 1: the FED is injecting liquidity into the system and backstopping depositors.
Speaker 1: Will it make a difference if the Fed decides to
Speaker 1: pause the rate hikes, that actually, fundamentally would be good
Speaker 1: for First republics. So they have been one of the
Speaker 1: banks that have seen their deposit costs rising because of
Speaker 1: the interest rix heights over the past year, and fundamentally
Speaker 1: that would be great for First republic to see rate
Speaker 1: hikes pause. So there's been a disconnect with the fundamentals
Speaker 1: and the market performance. You're listening to Bloomberg Daybreak today,
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Speaker 1: Street to Washington and beyond. Look for us on your
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Speaker 1: Join us again tomorrow morning for all the news you
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