bloomberg world headquarters in new york. the top stories this hour -- the u.s. fed and treasury are said to be considering an emergency landing program to backstop deposits as officials raced to avoid a wider ankara after seb's haidi: collapse. haidi:traders are stealing themselves as market scrap the -- grapple with shery: new data this week. shery:china signal stability with a surprise reappointing of top officials, including naming a u.s. sanctioned general as its new defense chief. take a look at how u.s. futures are opening right now. we are seeing little upside after we saw the worst week for the s&p 500 since september.

the s&p 500 coming very close to wiping out its gains for the year. volatility rattling markets around the world, the vix hit the highest this year. the futures extending those gains up .4%. we are watching the treasury space because a rally, everybody running toward the safety of bonds. the two year yield plummeting at 28 basis points in the new york session. we are watching next week's cpi report as we got a very strong jobs report when it came to those february numbers. average hourly earnings grew faster than expected. hours worked also slowed down so we will be weighing what that actually means in terms of where the fed goes from here. food prices staying steady after that weekly loss but it is all about macroeconomic headwinds and that risk off sentiment after the collapse of sv become of the biggest bank to fail in

more than a decade. leading to global concerns of what is this going to mean for their branches and all of these other countries, including china, denmark, india, israel, sweden as well. is -- coming out overnight, seeking to calm investors, reminding them operations have been independent and stable. we will continue to watch what happens in the u.s. as the fed and treasury way that is emergency authorities for emergency backstops. haidi: seb does have a presence and we are scrabbling to work out the situation, particularly in the u.k.. they are set to be declared insolvent and there are concerns not just for svp operations around the world but all of these startups and how they argue to be affected. if you look at the exposure we see in asia, roku has been one that has been singled out as one of the most exposed firms.

there are dozens of companies with exposure to the bank and customers are facing a lot of uncertainty around these uninsured deposits. hundreds of tech jeeps -- tech chiefs trying to work out their exposure in the broader ramifications for the industry that has always relied heavily on u.s. capitol and growth. we continue to watch all of these develop and's closely, including the auction process for their assets underway. regulators said to be making a portion of deposits available as soon monday. >> we know the fbi see kicked off this auction process in the u.s. they are hoping to wrap this up in a few hours. they said a big deadline is sunday afternoon in the u.s. and they want to move swiftly. but the problem is we don't know if there will be a bid that complies with regulators or if

it will be a bid they like. the bank could be broken up, whether a merger partner appears today is a question and there's a possibility they cannot reach a deal. shery: authorities here in the u.s. trying to rush this. what kind of interest has there been in achieving the deal they are talking about? nabila: we know the royal group which is backed by one of the top abu dhabi royals has expressed interest about the u.k. operations of sv be. we are not sure if they have actually launched a bid. there is a clearing bank out of london that has put in an offer hope for part of the assets in the u.k.. there are a few names circling but we don't know how fulsome those offers will be. haidi: so if a sale fails, where

do we go from there? nabila: the big question is what happens to the depositors? we know $150,000 per person per category is insured. that leaves 93% of the banks deposits uninsured. regulators need to move quickly to stave off any contagion spreading to the rest of the financial system. as soon monday, the deposits that are insured will start to get paid and then there is a specific order of the uninsured and how they get paid and that will depend on asset sales and a potential sale of the business. it is all up in the air but regulators need to be of quickly to avoid spreading. haidi: the very latest what it comes to that auction. let's continue to take a look at the risks, whether we are calling them contagion risks or at the least, a lot of asian financials and banks falling in sympathy with the issue on

friday. annabelle: probably down more to that sentiment risk. if you look, the asian-pacific financials index, that was 2.2% on the friday session, but if you put it in context with the u.s. index, it was down much further. not the same sort of picture and that comes across in this chart because analysts are upgrading their forecast for asia bank earnings. you can see the lion blue. that's the story of the different under metals, we have re-accelerating growth, concern drunk credit quality, perhaps some of those moves on friday down two more regional factors, including the bank of japan that kept the yield curve settings in place. japanese lenders where the big laggard. let's take a look at what we're hearing from analysts in this part of the world. we heard from morgan stanley -- it is a negative for banks in

the sense you have opened a door to a credit quality debate but still concerns were asia are relatively mild. that is reflected from our bloomberg intelligence team. other analysts saying indonesia could be one of the flashpoints to watch given it is banking a lot of these tech firms. generally, it comes down to sentiment. take a look -- new zealand already online at 1.3% to the downside. australia looking to drop with risk aversion coming through in bond yields. the japanese yen this morning -- that move back into those havens. shery: we continue to watch the bond space and really anything that spells safety as we continue to see the fallout from the svp collapse. it commentary and analysis from bloomberg's expert editors. we will leave that story there

and turn our attention to our other top story which is china's new leadership team. with some familiar names retaining their positions, a sweeping overhaul of key positions was widely expected but among those that kept their jobs was that pboc governor. for the latest, let's bring in the stephen engle in hong kong. could we expect more economic policy continuity? stephen: i think continuity was key because there are a lot of names bandied about for this and i'm sure xi jinping had a short list of those he had to choose from. we expected more party stalwarts and loyalists to be put into key positions of pboc governor as well as the party chief, but also finance minister. the finance minister was retained and analysts are saying this is a sign that has china

and berks on a sweeping overhaul of financial regulation with a new financial regulator, wreps continuity will be key. the other wild card was elevated to vice premier. i put economics are there. he has not necessarily been named as the top economic person to potentially replace but that could be a powerful team. as china navigates this financial radio trait overhaul as well as the tension between china and the united states as well as the post-covid zero economic recovery. they chose some continuity but then we have the new premier. he will have his first press conference today and he is a fairly new be to central government operations.

he spent more than two decades in three powerhouses, in shanghai, those three regions contribute about 20% of national gdp end he has a track record of getting things done. he did the two month lockdown in shanghai but he achieved it. also, he smoothed red tape to get tesla's big factory open in shanghai. he cleared a lot of red tape for a big manufacturing base. the jury is out on the national level at the central government. we will get more insight into the man later today when he gives his press conference as premier. haidi: we are also expecting to hear from xi jinping himself in the closing session. stephen: i'm not expecting a lot of the news. i think he's going to ceremonially close up the national people's congress as he

has his team surrounding them. i could be surprised. he could be back on the attack again. he was last week where he addressed the advisory body to the national people's congress and got quite frank about the need to essentially be prepared to fight given all the challenges, external and internal challenges. who knows what xi jinping might say. he might be more ceremonial in his speech but he could be back on the attack. haidi: stephen engle with a wrap up out of china. the closing session of the national people's congress. let's get you back to new york with vonnie quinn in the first word headlines. vonnie: the biden edmond's ration is said to be pairing more on exports to china. the new rules may be announced next month. the plan which made up of the number of machines that need special licenses before shipment

could create fresh obstacles for equipment makers. it's part of an ongoing effort to hamper beijing's development of advanced semiconductor industry. an influence the outbreak in china has intensified with infections right is -- rising for a sixth week. the northern city is preparing to enforce pandemic style lockdowns with schools and business closures to curb the surgeon infections. positivity rate for flu jumped to about 42% last week from 25% the week before. adani is taking more steps to bring back investor confidence. it has completed the full prepayment of share backed funding worth 2.15 billion dollars weeks before its deadline. it also repaid a loan facility which financed the acquisition. they have been prepaying are owing since a short seller accused of fraud in trickle -- triggered a $100 billion wipe of its shares. india's government has opposed giving legal recognition to

same-sex marriage in a landmark hearing starting monday. the administration said marriage is accepted only between a man and a woman and any deviation can only be voted by lawmakers, not ruled by courts. the outcome is being watched in countries like thailand, japan and south korea where similar debates are gaining momentum. global news powered by more than 2700 journalists and analysts in more than 120 countries, i'm vonnie quinn. shery: big moves in the market. we are following the japanese yen against the u.s. dollar at this moment. ¥133 per dollar right now, extending its advance against the greenback. we have concerns about further turbulence following scb meltdown and this is continuing the flight to safety. we are watching the u.s. dollar on the other side because it is weaker against g10 peers.

we know the fed and treasury are considering the emergency lending program to bank stop lens from cut -- to backstop linens from customers. that could 10 -- that could potentially push treasury yields lower in the near term. we saw the yield collapsing to below the 460 level, so we are watching what is happening on that space as well as the flight away from risk assets. right now, paring back that gains come at one point falling in the asian session. big moves to follow on the turbulence caused by sbb and the potential ramifications and the banking sector. later this hour, overcoming diversity barriers in hollywood -- we will look at the entertainment industries challenges ahead of the oscars. up next, we get the view from pepper international as investors weigh the sbb fallout. new payroll numbers, not to mention the looming u.s. cpi report.

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shery: dear getting breaking -- we're getting the latest of measures from the u.s. authorities on the fallout from silicon valley bank. we are talking about the treasury, the fed and fbi, announcing new actions in the wake of scb, u.s. saying depositors will have access to all their money on monday. the fed will make additional funding available to banks and it is announcing new emergency bank term funding programs. this coming at a time when we are waiting for anything to try to backstop this deposit flight we are seeing from sv be and other banks and trying to stop any contagion coming from the

fallout of sv be. we are hearing the u.s. will give access to sv be depositors to all their money on monday at a time when the fed is announcing new emergency bank term funding programs, saying they are ready to address any liquidity pressures that may arise. the u.s. is saying signature bank -- this was a bank hit also by the fallout from silver gate capital's. they will be closed by state authorities. we are getting the latest in terms of authority measures and actions in the wake of the sbb collapse and we are seeing that reaction in the markets already. we had seen u.s. futures paring back earlier gains but they are rebounding on these new announcements, including that the fed will start 80 program to offer emergency loans of up to one year. signature bank will be closed by

state authority. a key intermediary between fiat and cryptocurrencies. we are seeing the repercussion from the collapse of sv be bank. this is the biggest u.s. bank to fail in more than a decade and u.s. authorities are trying to announce measures to stop the panic and the bank run we have seen around svb. our next guest expects milder moves from the fed itself given the risks emanating from svb's collapse. carol pepper joins us from new york. give us your take about the latest measures being announced by u.s. authorities. we are seeing the announcements coming from the treasury, the fed, all trying to implement some measures to stop this contagion from happening. carol: the first message they

are trying to deliver is we are in control, the u.s. is in control and we are not going to have a major collapse of our banking system. this should have been expected and it is what the u.s. does. the u.s. does not allow its banking system to fail. the fact they are going to give access to all the depositors on monday is excellent. that will calm the markets. i think they will handle us an irrational and orderly manner. this will bring confidence back to the markets but from the fed's point of view, there are additional dangers that need to be reviewed. i'm hoping this will help them have a good reason to pause because creating financial stability is the number one job of the fed. we cannot have financials to ability of more and more banks start to fail. bond portfolios being priced down to low and having this mismatch which frankly is caused by the fed's rules. the fed's independence action.

it's not like these banks ought risky securities. they bought treasuries, they just bought the wrong duration. from that perspective, i would hope the fed would ease off a little bit at least for a few weeks to see what the repercussions are. hopefully they will take their foot off the gas in the next meeting. haidi: we are getting a little more insight on this action, the fed saying the treasury will be asked topping emergency loans with 25 billion dollars. the fbi see saying no losses for scb will be borne by the taxpayer. what is interesting from this action is the u.s. is saying they will have access to all the money on monday. fdic insures deposits of up to $250,000 but a huge portion of the deposits were above that. what's going to happen to the vast majority of funds held at

svb that far exceeded that? we are hearing the u.s. will make all of that money accessible to svb depositors, the fdic's thing no losses will be mourned by the taxpayer. the fed saying the treasury will be backstopping emergency loans with $25 billion. and you just said this will delay what the fed can actually do this spring. we've seen swap markets repricing rate hike expectations. tell us about what the broader macroeconomic applications there will be from what is happening at svb. carol: i hope it slows the fed rise. i understand why the fed has been rising, but it has these unintended consequences. the next potential brick to fall off the building would be the real estate market and mortgage loans and the fact real estate markets are essentially frozen.

to ease off a little bit, give the markets some breathing room to absorb these changes. not going hundred miles an hour but maybe 50 miles an hour will be a positive for macroeconomics because it will give the system more time to adjust. here, they are assuming these assets are quite valuable. there will be buyers for the different parts of these banks. the long-term will not be a problem for the system but we still need time to absorb these very large rate increases. i know people are screaming, saying if they don't do this, inflation will run out of control but, if you kill the entire economy trying to raise rates to quickly, then you have other problems. you are defeating the purpose of what you are doing. it will be positive from a macro economic point of view. investors should stay out of it. let the story unfold. unless you want to day trade some money you might lose 100%

of, don't try to game the system. it's going to be difficult to second-guess. who would have thought deposits well access of the fdic's move would be covered. i think that is a good move in the short-term. they are not calling it a bank bailout, it is only alone. so they are assuming these assets will be sold in the loans will be repaid. that is what they are aiming for. haidi: they are not calling it that but i wonder if it's going to be interpreted as such in terms of the backstop for markets. is this a game changer in terms of how much we are going to see the relief rally now that we know the broader fallout looks like has been contained? carol: i think the relief rally will be there. i hope people don't get overly enthusiastic because then the fed will quickly raise rates again in a month or two but i think the relief rally will be

much more possible. it is important to remember this is a huge swath of the economy that would have been affected if the fed didn't do this. it is a way to protect people supported by these jobs in the start up companies all over the country. i think it's a positive mood on the part of the fed to calm people down and give the system time to reestablish itself. haidi: what does that tell you about your asset allocation in terms of how you approach tech and some of the rate sensitive elements we are talking about? carol: i manage money for people with often over a billion dollars, so we set long-term asset allocation. a blip like this is not going to change it. these are short-term events. it's going to take a month or two and we will all be talking about something else. it shouldn't radically change our asset allocation. if you are short on tech, there will be a time when tech is

further beaten, so this is not a bad time to get into names like amazon or apple. so remember, the high rates squeeze productivity, raise expenses, so it's a time to be in more defensive names. if you are trying to say where should i sit, sit in more defensive names, but look at those long-term tech names that you can grab up now for a cheaper price. shery: good to have you with this with a reaction to its happening. the founder of pepper international as we continue to see this recovery in futures at the moment, the rebound extending with u.s. futures up 1.4%. tech futures also up by as much. this after we saw the worst week for the s&p 500 since september and that treasury rally that went along with that as we had

traders rushing to the safety of bonds with the two-year plummeting almost 30 basis points. now, we are seeing the heat being taken off from risk assets as we are hearing the fed will use the full range of tools to support households and businesses. haidi: we are hearing the new york department of financial services is taking over signature bank, collaborating closely with others. look at the statement we had from that consortium, it was a decisive action across these regulatory bodies. look at the anxiety being dialed down when it comes to us trillion risk assets. bond markets also pairing yield declines to trade at 3.16%. this is bloomberg. these days, our households depend on the internet more and more. families grow, houses get smarter, and our demands on the internet increase. that's why we just boosted speeds for over 20 million xfinity customers, on us. so you get more of the speed you need

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haidi: we are continuing to

watch the reverberations from the svb collapse. we are hearing from u.s. bank regulators saying u.s. banks remain resilient, on sound footing. we are also hearing shutting down the signature bank as well. the big name changer is saying authorities say depositors will have access to all money come monday. let's get more on the implications of all of this. we will bring in belle for a look at signature bank. this -- we bring this together in terms of the jigsaw as what happened to svb and silvercrest. annabelle: that's right. let's interesting is when you put it all in comparison, svb and silver gate, both had concentration risks. while a silver bank was focused on crypto, svb was focused on

vc. what has happened is we have another bank, signature bank, seen as being perhaps the key bank, the intermediary between the fiat world and traditional finance. this is how crypto players look at their money on and off exchanges. it was seen not so much as a winner but the last bank standing for the crypto world after the collapse of silver gate. signature bank had already taken steps to protect themselves from all the fluctuations in the crypto sector because they reduce the amount of crypto deposits holding to around 23%. however, that has not stopped what we are hearing now -- it is being taken in possession. we have a statement coming from the department of financial services saying the new york department of financial services is taking possession of signature bank and that's pursuant to new york banking law. the move is about protecting

depositors. the fdic's appointed as receiver of the bank. signature bank is a new york state chartered commercial bank. total assets around $110 billion. total deposits around $88 billion. it is a huge developing story, it has a lot of ramifications for the crypto world and stablecoins. shery: a lot to do with just backstopping all this contagion fears and the banking sector. we are hearing from a bunch of u.s. regulators, whether it is fdic's, the fed coming out in the wake of what's happening with signature bank. depositors will have access to all of their money on monday. how much does this change the risk sentiment in the markets? annabelle: i can only see it

extending throughout the session because there's so much uncertainty around this. it does perhaps .2 a deterioration of credit conditions, but we don't change the calculus for a fed rate decision. perhaps a small hike in order but it's going to be closely watched by the crypto sector because there's a lot of unknowns here. something people will be watching is what happens with stablecoins because this is a key intermediary between the fiat and the crypto world, a way people can access and move money around exchanges. a lot of these were holding deposits. silver gate, a lot of things need to be unraveled in this area. shery: annabelle in hong kong explaining the latest moves when it comes to the banking sector and crypto. and we still have to watch whether all of this has an impact on what the fed does from here. the fed very much watching all

the data. u.s. payrolls especially rising by more than expected in february, coming pretty hot as the fed considers whether to step up the pace of interest rate hikes. martin walsh addressed concerns about tightening fed policy. he said that jobs report shows a positive outlook for jobs. >> a lot of concern in different areas. hopefully we cannot continue to move forward here. i know secretary yellen is at capitol hill testifying. lots of concerns about what the future of the stock market is. when it comes to jobs, we have a good jobs report and good signs all along. >> are you worried we are starting to see things break as the federal reserve tries to address inflation? >> know. people have been concerned about it for the last year and when you think about what we are doing, we are seeing jobs being added and up or to the patient rate going up. we see opportunity for further

participation by making investments and seeing incremental steps in inflation coming down. we need to stay focused on that. i froze there for a second because some buddy behind me is talking. >> it's the last thing we get to do together. >> i'm going to miss you. >> a couple of more questions. we heard from the chairman of the federal reserve. he took a lot of heat from some democratic senators who said he was pushing this too far and it could lead to people losing their jobs. he said woodworking people be better off if we just walk away from her jobs with inflation at 5% or 6%? how did you feel when you heard that interaction? >> as i said from day one, my focus is to see as many people back to work as possible and continue to see wages go up. that is what my focus has been for the last two years at the

department of labor. that has been the president focus and we are going to continue on that path. >> your replacement facing a little scrutiny right now. you work closely with her. is it a wringing endorsement from your side? can you give her some words of support? >> the deputy secretary and myself have been meeting with the u.s. chamber, meeting with the roundtable and independent associations, meeting with those organizations to talk about what the plan is. we have been connected at the hip and work closely together. the business has a good feel for me and i'm sure they will have the same feeling when she gets nominated. shery: marty walsh speaking to bloomberg. look at how u.s. futures are trading -- the recovery continues after we heard from u.s. regular leaders racing to try to find a solution and as -- and svb depositors having all

their money on monday. after we saw the worst week for the s&p 500 since september. volatility spiked with the vix hitting highs this year and that rush to safety led to the treasury rally. we are seeing perhaps that reversing is cash-strapped treasury markets open in the next hour. the dollar index at the moment losing ground because we heard the fed and treasury department were considering that emergency lending program. traders anticipating that could push treasury yields lower in the near term, so the dollar losing a little steam. look at how oil prices are trading. wti and brent recouping some of those losses we saw last week. a big weekly loss for wti. we had some gains on friday but it was not sustained throughout the week given the macroeconomic headwinds and concern of a

broader risk off in the markets. haidi: you could see this being such a game changer for sentiment. we could see types of fallout from the svb collapse but this move by federal regulators seemed to cut the negative tail risk by a significant out. sidney futures sitting lower by .6%. an early loss of about .5%. looking potentially to see losses in financials capped. they cuss trillion banks fell in sympathy and that friday session. the aussie dollar seeing a little upside. we are also seeing some of that anxiety being tapped out of the bond market, particular he a dial down when it comes to the three year. still above the intraday low when it comes to us trillion bonds. also watching the yen as well. as we look to see the wind being

taken out of the u.s. dollar rally as well, extending gains about 1% against the greenback. a bit of haven demand as well as lower yields and play. we continue to monitor these developments but key for investors joining the fray this monday morning, svb depositors will have access to all money on monday. a new emergency program being announced by the fed. then new york taking control of signature. getting confirmation the fed will be easing the access to the discount window to help these other banks keep up with demands from depositors to withdraw. some banks had been drawing on that access on friday to turn assets of lost value without the hefty losses we've seen really topple svb. a lot of breaking news crossing the bloomberg this monday morning as trading gets underway

in asia. this is bloomberg. ♪ hoices 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™.

at allspring, we break away with purpose. harnessing data-driven insights and boundless curiosity. we dissect the market from every angle. helping to build portfolios that redefine what's possible. because investing isn't one size fits all. allspring. purposefully divergent. vonnie: you are watching daybreak us trillion. china has reappointed several top economic officials at the national people's congress in a leadership reshuffle. the pboc governor will remain in his post as will the finance and commerce ministers.

the general was unanimously appointed as minister of national defense and state councilor. that is china's equivalent of a cabinet member. and the head of china's health body receive the most no votes of cabinet officials confirmed. the bite and a demonstration is set to be repairing more restrictions on the export of chipmaking gear to china. sources say they have briefed local companies and the new rules may be announced next month. the plan, which made double the amount of machines that need special licenses could be a fresh obstacle for equipment makers. it's part of an ongoing effort to hamper beijing's development -- developing semi conductor industry. adani is taking more steps to bring back investor confidence. it prepaid a 500 million dollar loan facility which finance the acquisition. they have been repaying

borrowing since a short seller accused of and trickled a 100 billion dollar wipeout of shares. -- triggered a $100 billion wipeout of shares. i'm vonnie quinn. this is bloomberg. haidi: the australian premise minister is in san diego ahead of the landmark announcement on the supply of nuclear submarines. more details about these nuclear submarines have been detailed ahead of the announcement. this was hugely contentious. we have gotten some more details. >> at this rate, there will be nothing left for them to announce by the time this is announced tomorrow. i truly is likely to get to the five second hand virginia class a brains from the united states. the u.s. is assuring they will not be clunkers. the prices yet to be determined. that is a stopgap to fill the capability gap from retiring australia's old submarines. after that, us trillion will get

new virginia class a brains as the new class being designed with britain gets worked out and those will arrive in 2040. questions around this which we might hear more about tomorrow. u.s. shipyards already struggling to keep up with the current amounts. in terms of manufacturing infrastructure, how they are going to make more virginia class submarines. with that three-way alliance come how is that going to work? three nations designing one sub? haidi: questions about they capability and operating them. paul: a huge recruitment drive is needed. truly has no civilian nuclear energy industry. there was a small reactor on the out cut -- on the outskirts of sydney but that's not going to cut it. this shipyards likely in adelaide and perth, will need skill stuff from welders to engineers, designers, the works. then there is the crew itself.

nuclear subs need a lot more crew than conventional subs, so the navy will be on a recruiting drive as well. intentionally 20,000 jobs being created over decades. shery: paul allen joining us with the latest when it comes to that relationship between australia, the u.s. and the u.k.. take a look at how cryptocurrencies are trading. we are seeing that risk on trade translate into the crypto space. bitcoin gaining about 2.5%. we had seen the svb failure triggering the knock on effect in the crypto sector, especially in the stablecoin sector. we know that has been helped by several pledges to cover any shortfall.

we have relief coming from authorities announcing svb depositors will have access to all their money on monday. the fed announcing a new emergency bank funding program. the dollar index down .4%. this coming at a time when we continue to watch svb the latest on svb with treasury official saying the bank sector is more resilient than precrisis. the actions will ensure depositors need not worry and they will keep taking steps to ensure the system stays strong. be sure to tune into bloomberg radio to hear more from the big newsmakers, get in-depth analysis from the daybreak team broadcasting live. listen through the app, radio plus were bloombergradio.com. plenty more ahead. stay with us. ♪

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haidi: a quick check of the latest business flash headlines session business as usual for silicon valley bank's operations in china. it has been stabled up -- despite the collapse of its parent company. they pointed out the california banks operations and liquidity remained healthy. the china venture had 280 $9

billion registered as of june last year. a speech and oaktree are among those offering to buy claims on -- at discounted prices. talks are in the early stages and pricing could change. oaktree and hbs to claim to comment. liquidity group is planning to offer $3 billion in emergency loans to start clients hit by the collapse of silicon valley bank. the ceo says the liquidity has $1.2 billion in cash to make available in the coming weeks and is in discussion to partner with apollo global management for an additional $2 billion in loans. shery: take a look at the market reaction -- more calm with u.s. futures continuing to send those gains up more than 1% for the s&p. this after the worst week since

september as we get more lines coming from u.s. authorities on actions that will ensure depositors need not worry, we heard from a treasury official the bank is more resilient than precrisis. the treasury seeing some issues similar to svb, but they have announced a range of tools to support households and businesses. the fed and treasury will bank stop emergency loans with $25 billion, the fed using the full range of tools to support households and businesses and the u.s. saying svb depositors will have access to all their money on monday. the concern was always about what happens to the uninsured deposits. that would be exceeding $250,000 and the vast majority of funds held at svb far exceeded that. that was a key concern that we have the fed announcing a new

emergency bank term funding programs. let's bring in mark cranfield to discuss what is happening in the markets. mark, a decidedly more positive reaction after we heard all the actions and measures being announced by u.s. authorities. mark: we obviously had a knee-jerk response, particularly in equities. the s&p 500 has bounced quite nightly -- quite nicely. this may not last too long. if you look at what's going on, and the stress testing of banks in the u.s., there seems to have been some red flags we missed in terms of svb. now the u.s. treasury are saying there could be other institutions they are looking at that they have some similar exposure in the way svb had. this will means authorities will have to dig a lot deeper into the u.s. financial system. that is partly why they backed

it so quickly to reassure their deposits are covered here. however, what that means for u.s. fed policy could well mean the march meeting, they are not going to change their decision and will probably go ahead with a small interest rate hike, but the fed could be pausing a lot earlier than people expect because there's no way they can continue to raise interest rates while they are digging into the u.s. financial system to make sure there are no other large institutions with similar problems, particular from a portfolio cents. the fact that it was a high-quality portfolio, it was not junk-bond that brought them down. it was mostly u.s. treasuries and other good bonds. this is quite a serious matter and authorities will need more time to dig in and reassure everybody the system is in good shape. haidi: i don't know if you would call it a contagion -- i guess

asian financials falling in sympathy. do you think that is the end of it? we are hearing from national australia bank that they are assuring the contagion effect will be small. it is an idiosyncratic story in so many ways. mark: i think a lot of people would like to believe it is a one-off thing and that may prove to be the case. the u.s. authorities will not be jumping to that conclusion straightaway because this would have caught them blinds bite -- blindsided at the speed this happened in the direction from which it came. they do stress testing and somehow this was not picked up in the stress tests, so nobody jumped to the conclusion this is a one-off until they are absolutely sure and it's going to take a bit of time before they can say no other institution is at risk in the same way as svb. shery: is this just a new normal

in a world were online banks are so prominent in the digital age takes everything to a faster conclusion? mark: this is not a new scenario to do with the modern world. this is about interest rates going up quickly and people not doing a good enough job on their risk management. the underlying problem is somebody had a large portfolio of low bearing interest rate. the risk management did not catch up with the change in the market dynamics. that could happen to anybody. it happened before, it will probably happen again. everybody has to be diligent. if you look at major financial crises in the world, whether 1987 black monday crash, 2008, rising interest rates are often the basis of a big fallout in financial markets and potentially, that is what we are considering. hopefully we are not going that far but interest rates are going

up quickly and a lot of people are exposed the wrong way and need to be diligent about how they expose their risk. haidi: a lot of questions to be answered as this continues to play out. but for now, we are seeing that side of relief across risk assets as we have that a backstop for the banks. the fed saying all u.s. -- saying all svb depositors are safe. a program has been created to lend. we are hearing clarification from a treasury officials saying this is not 2008 and firms are not being bailed out but depositors are being protected and equity and bondholders are being wiped out. we will continue to bring you this breaking story as the details come to us. this is bloomberg. ♪

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