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tv   Mornings With Maria Bartiromo  FOX Business  March 17, 2023 6:00am-7:00am EDT

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with fractional moves this morning, dow industrials up 5, nasdaq up 16, s&p 5 p hundred higher by 4 points. this after the nasdaq saw its best day yesterday since february 2nd. a rally in stocks yesterday after 11 banks put together a $30 billion rescue package for first republic after first republic's stock price fell to the lowest level in decade, down 6% this morning, i am breaking down all the details of the rescue badge the wall street journal's nick timarose coming up later this hour. interest rates have been plummeting this week ahead of the federal reserve's meeting next week, the 10 year treasury right now down another 3 and-a-half basis points at a level of 3.551%. the fed's march meeting will kick off on tuesday and we will hear the results on wednesday next week. european markets this morning look like this after the european central bank yesterday announced a rate hike of 50
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basis points, the ft 100 right now is up 66, cac is up 24, dax higher by 92. in asia overnight green across the board, hong kong was the best performer as we look you head to xi jinping's trip to russia next week, shanghai composite was up three quarters of a percent, hang seng up 1 and two thirds percent overnight. in washington, james comer out with new findings about the biden family business deals and who else received money from china. joining me to break down the details all morning long this morning, nancy tengler and lee carter are here. we'll get to the ladies coming up. "mornings with maria" is live right now. ♪
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maria: and today is the fdic's final deadline for banks to bid for silicon valley bank and a signature bank as 11 banks rescuing first republic with a $30 billion he deposit yesterday, jp morgan, citigroup, bank of america, wells fargo contributing $5 billion each in a joint statement the banks say in part, quote, this action by america's largest banks reflects their confidence in first republic and banks of all sizes. joining me is federated hermes chief investment officer of equities, steven auph is here. your reaction to the rescue package? what a wild week it's been. >> been a pretty wild week, maria. as i sit here at the end of the week, i th i think a rocky landg remains intact here. i think the good news is, we probably averted a banking crieses sis and the fed is probably pretty close to being done and the bad news is
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earnings probably have to come down further and as you know we've been below the street already and valuations are probably too high. we think this idea of a trading range for the year, 3600 to 4400 is intact. so that's the summary. maria: i mean, it's pretty incredible, look at the markets this week, that's dabbing up 5%, dow up 1%, s&p 500 up 2 and-a-half percent on the week even as markets were selling off because of all of the worries over the banks. now, the journal this morning is questioning janet yellen saying everything is fine as we see bank p runs, treasury secretary janet yellen speaking on the state of the u.s. financial banking system yesterday. heres' a bit of what she said, watch. >> i can reassure the members of our committee the banking system is sound. americans can feel confident their he deposits will be there when they need them.
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this week's actions demonstrate our resolute commitment to ensure our financial system remains strong and that deposit depositor's savings remain safe. no taxpayer money is being used or put at risk with this action. maria: steven, with that the wall street journal writes in the editorial board section, while yellen assures banks run, janet yellen offers more assurances thursday that u.s. banks are safe and sound and we doubt even the treasury secretary believes it, certainly no one else does, writes the journal. the biggest american bank has to commit 30 billion on thursday to rescue first republic bank 15 years to the day that bear sterns collapsed. happy a anniversary the journal writes, your reaction. >> you have to distinguish this crisis from '08, '09. in the case of '08, '09 the clascollateral the banks had one
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balance sheets were seriously diminished under the underlying assets under the derivatives on top of it was a real estate market that had come in substantially. they had assets that truly, the market value of them was substantially less and it wasn't clear that we would ever recover the full value of those assets so it was very difficult collateral to be used to do a bailout, if you want to call it that. in this case, most of the -- so the collateral that these banks have that's a problem from a valuation perspective are government securities. they are going to pay off at par. they're good credits. the issue just is that if you have to tell them all at once at current prices, they would be worth less because the fed raised rates so dramatically. over time, these are going to pay off at par and if the deposits sort of flow in their
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normal fashion, the whole thing works. what makes the banking system tricky right now is that if everyone runs for the exit simultaneously, you've got to sell all that collateral. now, it was worse -- the worse case of this was obviously silicon valley, almost all of their collateral was government bonds. that a was the worst offender. first republic next up on the list and then it gets less from there on in so the problem does sort of get less and i know you remember '08, '09, i was on your show a few times. it was getting incrementally worse every time we kind of went up the food chain so this is a little bit different. maria: so steven, in terms of the macro story, are you expecting recession later this year? you said -- i know you've been on the low end in terms of estimates and you think earnings estimates are going to continuing to come down but what about what markets are expecting
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from the broader economy? >> we've been calling it, maria, a rocky landing and the difference between that and a recession is i would call it an asynchronous recession. so, you know, as opposed to something systemic that causes the entire economy to drop simultaneously, we think it's more likely that you're having a kind of revolving recession, if you will, through different sectors of the economy as they adapt to the new environment. obviously the tech sector is an example. they've been in a recession for the last 12 months now. and you know, they're probably still in it, particularly since the big funding sources now have just blown up on them. so that sector's kind of in a recession. the financial sector, there's going to be a credit tightening here as a result of this and that's the good news for me, frankly,, is that the fed's job
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is really done. whether they admit it or not next wednesday, i don't know. maybe they'll could do 25 or whatever. but this credit tight benning tg that's resulting from this little bank crisis we've had here in the last 10 days it's probably ebbing vent of rough -- equivalent of roughly 100 basis points of tightening and the defldeflationary impulse comingm that, you can imagine. the drunken sailors in the room were these kids running these tech companies being handed money by the capital markets at 40 times, they're hiring people at whatever price. they're at the edge, driving up pricing in the labor market. they're now dragged down by their heels. i think that we're -- this little blow-up we've had is probably having a disproportionate effect on the inflationary impulses that we're seeing and the fed, if they're
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smart, -- he m me, if i was rung things, i would pause here and see what's going on before i did much more. maria: we'll see, yeah. >> but we'll see. you know. we'll see what they do. maria: we'll see what happens next week, the meeting is tuesday and wednesday. we're expecting a 25 basis point hike but we'll see what happens after that and whether or not a pause is coming. one of our guests earlier in the week says he's expecting a cut by july 4th. we'll see. steven, it's good to see you. thanks so much. i want to check your morning mover, fed ex up in the premarket. it missed on revenue but it's raising the profit forecast for the year, despite laying off 25,000 workers. fed ex is cutting more costs by charging higher shipping rates and reducing expansions in the ground and freight divisions. the stock is up nearly 18% year-to-date and this morning up another 11% right now. we're just getting started. coming up, we're watching the market reaction after a week of financial turmoil.
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the wall street journal's chief economic correspondent nick timarose will join me in a few moments. first, a biden family member is unmasked as also receiving money from a chinese energy company. hear what house oversight committee chairman james comer told me as the investigation into the biden family ramps up. don't miss that. you're watching "mornings with maria" live on fox business. ♪ everybody's working for the weekend. ♪ everyone wants a new romance. ♪
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we now live in a place our ancestors have been for many, many years and we had no clue. nigerian. i got a lot of it from you. explore your family story with ancestrydna. now on sale. maria: welcome back. house oversight committee chairman james comer revealing new evidence showing president biden's daughter in law hailey received chinese payments from business associate rob walker. bank records show that hailey biden got $35,000 in 2017 for walker's state energy hp limited, a firm affiliated with cefc china energy. the white house is dismissing
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the findings telling fox news, quote, after a disgusting attack, lamenting that the president's deceased son was never prosecuted while alive, congressman comer has decided to go after his widow. joining me now, warren davidson. thank you for being here this morning. your reaction? >> good morning, maria. you know, not really surprised frankly. the biden family is really continuing the legacy the clinton family never got the kind of scrutiny they're getting and frankly i'm glad that chairman comer is providing this visibility to the american public. the frustration is, you know, people have asked for years since i got elected, when is somebody going to jail. we keep outing things that normal people would be not just investigated for, that a trial would already be underway. and they don't see the departdepartment of justice goig
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after the protected people like the clintons and bidens. maria: comer has uncovered a lot even though he's getting stonewalled by this white house and these 150 suspicious activity reports. what we know so far, there are tens of millions of dollars they that biden family members have accepted but what were they getting paid for? what was this money c coming coe chinese companies to the biden family actually paying for? >> yeah. i mean, the other thing it's not like they had a good or a service, right? so they're paid for expertise that they don't have. you look at hunter. he was on burisma's board for ukraine. what exactly was he doing for china that they couldn't have possibly found other places in the commercial marketplace and so there's a strong suspicion, there's 10% for the big guy he flowing everywhere with the bidens and a lot of frustration because it doesn't seem that the department of justice is
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interested in the case. meanwhile, they're interested in all kinds of other things. they paid more attention to parents in h louden county, virginia, than they paid to the situation with the biden family. maria: let me switch gears, ask about the issues with wall street and markets right now, treasury secretary janet yellen claims the banking system is safe the journal is calling out the down playing of the crisis, writing if first republic res problems go deeper than liquidity, the risks could could be greater than regulators recognize and could grow if the economy slows. she was called out yesterday. >> why doesn't the president care. >> he cares very deeply. >> then where is his plan? >> he stands ready to work with congress. >> that's a lie. on a bipartisan group of senators has repeatedly requested to meet with him about social, we have not heard
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anything on our request. and we made multiple requests to meet with the president. that is a fact and if you've been told to say he stands ready to meet, i will tell you there is absolutely no evidence because we have not gotten our meeting. maria: so congressman, where is this going? your reaction to senator cassidy there and the fact that you haven't had any commitment from the biden administration in terms of cutting back spending and you're facing a debt ceiling issue in the coming months. >> yeah, great way to highlight the macroeconomic conditions, maria. and senator cassidy's questioning with secretary yellen, i think secretary yellen saying joe biden would accept the praise and surrender you want to give him but he doesn't want to have dialogue about the problems confronting the country. i thought dialogue between secretary yellen and senator langford was very informative as well whereas certain people are
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very protected and others like community banks in okay hoe m md presumably ohio that's not as pig of a deal. i think the wall street journal op-ed did a good job highlighting this this morning. the real issue at silicon valley bank was the management team. it was the management team's job to manage interest rate risk, lots of banks are confronting it. that is the macroeconomic environment driven by poor management from the federal reserve. i mean, they were too late to raise interest rates n . they kept them artificially low and they're like oh, my gosh inflation is real and it's not going to be transitory. they stomped on the gas. now you they've got chaos. some have reacted pretty well and managed interest rate risk. some have not. silicon valley bank, the right people were held accountable, the shareholders, and now the management team faces scrutiny. the regulators were about as
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useless at the evaldi cops at the school shooting. it was the shooter that did the bad thing and managers failed to manage the risk. >> i was wondering what the expectations are for the regulators. i mean, the president of silicon valley bank sat on the federal reserve board in san francisco and they knew for a long time that deposits were leaving and so i just wonder what if anything congress is attempting to do because i don't think getting more regulations is going to solve the problem if the supervisor is asleep at the wheel. >> this wasn't a failure of law or regulation. it was a failure by the management team and the regulators, how did they not do the right thing here and given the tight relationship it seems impossible that the president is shorting or selling shares right before everything fails and i
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think doj rightly launched a criminal investigation that's not disclosing material information to shareholders and acting on it himself, certainly gives the appearance that that's what happened and congress is asking all those questions. we're requesting all the documents. and we're fighting to get the right witnesses. we have hearings coming up on the 23rd, 28th and 29th and the struggle is in the midst of these investigationses being launched by the doj, for example, no one wants to come without a subpoena but at least we're going to have the fdic there. maria: yeah. and kim strassel writes did esg help sink svb, focused on what they had were focused on at the san francisco federal reserve instead of bank safety. thank you for joining us, sir. we'll be right back.
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that's why i do what i do. that and the paycheck. >> what we're seeing currently with the credit suisse is a distinct issue. its problems are not related to the current economic situation. the current economic environment. the treasury secretary -- the treasury i should say more broadly is having conversations with our counter part. maria: that was white house press secretary karine jean-pierre yesterday,
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downplaying credit suisse's decline and its relation to the u.s. economy. lee carter, nancy tengler both here this morning. lee, your reaction? >> i just think one of the biggest problems this administration has is they feel incredibly out of touch with the way people are viewing the world. for them to say there's no correlation, that there's no connection between these two makes people feel like they don't get it. the problem is right now people are seeing this economic sort of ripple effect. they see it as connected. they feel very, very pessimistic right now. when you think how cfo look at is, 20% of cfos say they plan to diversify as a result of what happened in the banks. investors, 55% are saying they feel worse about the economy than i the did last week, before all of this happened. and so what you have right now is a little bit of a panic. i don't want to overstate it. but investors are really concerned and then you have this white house and you have yellen out there saying nothing to see
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here, the issues aren't related, everything's fine and many ways it dismisses the concerns of investors. then investors are left wondering what they should do, left to their own devices, they'll start moving to cash and other problems will come as a result of that and i think this administration is out of touch. if they would just show empathy, if they say we understand that people are concerned, that these issues are contained but here's what we're going to do about it but they won't address the concern, the root case of what's going on here and that is causing so much of the problem we're seeing in the minds of investors. maria: i think part of the root cause is this. sg agenda -- esg agenda. here's kim str assel, she says the politics don't end there. even a junior banking regulator should have picked up on silicon valley bank's distress but apparently that's above san francisco federal reserve
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president, mary daily. they are more focused on hypothetical climate risk than the real risk of bank failures. who wants to clamp down on the darling of clean tech banking. there are real issues with silicon valley bank and credit suisse. underlying all of this is the climate change agenda, making the banking sector believe that there's some kind of pot of gold sitting there for those banks who invest in all clean related technologies. >> yeah. exactly. i mean, first of all, it's not the fed's mandate to focus on the environment. that's point number one. point number two is i think not just american public, but american small business owners like myself are really tired of this kind of cronyism where you cannot manage your bank balance sheet, i mean, that was banking 101, maria, you match assets with your liability. they knew deposits were leaving in the fall and late summer and yet they paid bonuses and the
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ceo as congresswoman pointed out sold stock and all the while we're hearing they're focused on esg issues. it goes so far, when russians shot down our drone our response was that's unprofessional, it's bad for the environment. i mean, enough of this. maria: unbelievable. unbelievable. reporters are slamming the whites house now over president biden not taking any questions. ladies, watch this. >> you're going to have an opportunity or your colleagues will have an opportunity to ask questions during the oval that happen every time a head of state visits. but again, this is coordinated. >> he hasn't answered questions. >> he's answered questions. >> it's not -- here's -- >> he shouts at us to get out. >> i hear you guys, i hear you
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guys. maria: what do you think, lee? ireland's prime minister will be at the white house later today. we'll see. >> we have some big questions for the president and n in these moments we need to hear directly from him and it's very difficult to try and ask these kinds of questions when he's hosting somebody else. he needs to be addressing the american people about what they're most concerned about. more than half of americans concerned about their finances. he needs to open himself up. maria: when we come back, the wall street journal chief economic correspondent nick timarose is here, he will react to how the other banks rescued first re republic bank. and then this, video proof that russia did not tell the truth about a fighter jet slamming into a u.s. drone. watch this. dad, we got this.
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newly released video shows that russia was misleading about its fighter jet smashing into a u.s. drone. cheryl casone with all the details right now. cheryl. cheryl: maria, the white houses speaking out on that video release that shows a russian aircraft downing a u.s. drone over the black sea, directly contradicting russia's version of events. they declassified the video which shows the critical moments of the incident. >> the video's pretty darn conclusive about what happened and it absolutely j just desimas the russian lie about what they said happened or didn't happen. it's obvious when you look at the video that fighter jet had hit our drone. cheryl: we are learning poland is sending four jet fighters to ukraine signaling a new level of support for the country as it bassbattles the assault from ru, poland the first western nation
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in particular central and southern california. maria: wow. that is amazing video. that's just incredible watching them hoist him up. thank you, cheryl. meanwhile, 11 banks rescuing first republic with a 30 of billion dollars deposit yesterday. jp morgan chase, citigroup, bank of america and wells fargo contributed $5 billion apiece, smaller banks contributed 2 and-a-half billion and even smaller brokers, 1 billion. in a joint statement the banks said in part, this action by america's largest banks reflects their confidence in first republic and banks of all sizes, joining he me is the wall street journal chief economic core upon correspondent, nick timarose. thank you for being here. can you say this $30 billion is showing that its confidence in all banks? >> yeah, well, we'll find out this morning. we'll see how the markets react.
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this was seen as important, maria, because you had a bank run last week. you had a classic bank run and the actions by the government on sunday to bail out the uninsured depositors at a silicon valley bank and signature bank were he designed to stop the panic. and they worked most of the way. but not completely. i think what you saw earlier this week was concern about the deposit franchise at these regional banks. you had people saying wait a minute, this was a bank a week ago that looked great. their depositors ran and now nobody wants to buy svb. so what the banks did yesterday was important because it's a sign of these banks saying you can put your money in first republic bank and these other regional banks. your money will still be there. we're doing it. you think about how you stop a classic bank run, maria and it's putting money in the window, showing everyone there's money there. you're showing investors this is
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still a place where you can have your he deposits, the deposit franchise needs to be rehabilitated. maalall..maria: all of this cra about the federal reserve. the european central bank announced a rate hike of 50 basis points and we're looking ahead to the fomc meeting next week on tuesday and wednesday. let's talk about that because you write in the journal last night and this morning, more investors anticipate that the federal reserve's rate increase cycle could be over due to the broader financial s turmoil and failure of two u.s. banks in the past week. what are you expecting from the fed, nick? >> thats was on wednesday when we saw that big move in interest rate futures markets, maria. you saw investors beginning to say 50/50 chance between a rate increase next week or a skip, foregoing an increase at this
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meeting but i think what you're seeing now, you look at the action that the swiss national bank took to shore up credit swiss on wednesday, that freed the ecb as you said to go ahead with their 50 basis point increase yesterday and i think in the same way, the first republic backstop here, this vote of confidence by the banks is important if it can improve confidence in this banking crisis and you get into early next week, it will obviously depend on what the financial markets look like but what that could free the fed to continue raising interest rates in a way that the markets were beginning to doubt on wednesday so i think that's why the first republic action yesterday, another reason it's important, it keeps the fed able to raise interest rates. they have two different jobs right now, tackling inflation and a making sure the banks are all right and they don't want to use the same tool for both jobs because the same tool's going to tell you to do different things. you're easing to help with the
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banks but you're tightening to fight inflation and so the right tool for the right job, the tool for the banking issues are using the fed's balance sheet, liquidity injectionses, discount win he dough lending and this private sector action yesterday and the tool for interest -- the tool for inflation is to use interest rates and so that's why i think you now see markets saying it's more likely that the fed will go ahead and raise interest rates next wednesday. maria: but it all impacts the macro story, right, nick? i mean, we just had hit the one year mark from when the fed started raising interest rates last year on march 17th so we haven't felt the true impact of the sstring of rate hikes we'ven from the federal reserve. what are your thoughts in terms of the macro story. a number of people on this program say, look, we'll probably see this impact hit hard later in the year, fourth quarter recession is what nancy lazar is expecting. that's why yesterday we had
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larry mcdonald on who said the fed -- actually this week said the fed's probably going to cut rates going into july 4th weekend. >> well, you're seeing those cuts priced out of the market now. but you're absolutely right, maria, about the macro story. so just putting aa aside what happens next, which if you think about what the fed is thinking now in terms of how much more they will have to raise rates, they'll have the dot plot next wednesday, where they write down where they think interest rates will go under the baseline outlook, how has this credit concern and the banking sector interest rate concern in the banking sector, how has that changed the economic backdrop? i think that's the big question here. and if you think about where we were the last fed meeting, we they that really hot payroll report coming out of it and people said oh, my goodness, all of these fed rate increases have not slowed down the economy very much. everyone, maria, was saying
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where are these lags of monetary policy. and now we're seeing them. so i think that is important for the fed. i think they will have to say something about you how that influences the outlook going forward and monetary policy doesn't just work in a linear manner. it doesn't -- it's not a squeezeable ketchup bottle. it's a glass bottle. you keep hitting the bottle. nothing comes out and then you hit it again, everything comes out. that's sort of what we saw last week and that's what the fed has to take into account at their meeting. maria: yeah, really good analogy there. nick, when you look at these failures, silicon valley bank, signature bank, they have a couple of things in common. that is, venture capital, technology weakness. we've been talking about all these layoffs within tech. we saw the weak spots within big tech with those layoffs. we saw some weak spots with regard to commercial real estate which showed up in signature bank. so we're eyeing commercial real
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estate potential issues and technology related issues. where else is this going? are there other areas out there what that are vulnerable as a result of those two problems? >> well, i think what's a surprise about this is that we knew that technology sector was taking a hit. we know the housing market and the real estate sector's taking a hit. but people weren't really looking at the small or the regional banks as the place where there might be really serious problems, right. and so that does make you ask, all right, where else are there problems. when the tide goes out you begin to see who is swimming naked here. that's i think the big question now is where is the pain going to be in the financial market? what other air pockets are we going to hit where something is just going to go zap and who is going to be exposed to that and so i think that does change the risk management framework for investors but also for the federal reserve here.
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maria: yeah. and real quick, nick, on this 30 of billion dollars in deposits from all these banks into first republic, was are your thoughts there? we can't see this happen to more banks, right? i mean, how many times can you actually rescue one bank? >> well, that's the point here is to make a stand, right. you're trying to defeat a little bit of a panic, right. concern about is this an okay place to put my money. and so the banks here and the regulators didn't have any formal role but i think they played an important behind the scenes part here, are essentially saying let's stop this here so you're finding the place where the pressures are the most acute and you're getting in there saying we're going to stop this right now. the fed yesterday afternoon reported big increases in discount window borrowing last week but if you look by region, you don't see it across the country. you really only see the increase in fed discount window borrowing in the west coast district and
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in the new york district and so that's a positive sign to the extent it means other regional banks aren't affected yet. maria: yeah. yeah. the bank term funding program appears to be a success. banks pulling nearly 112 billion out you through wednesday. we'll be watching that. nick, it's great to get your insight. thanks so much. >> thank you, maria. maria: nick timarose from the wall street journal. we're going to come back with jonathan ward on china, next. for safe driving with liberty mutual. they customize your car insurance. so you only pay for what you need! whoo! we gotta go again. only pay for what you need. ♪ liberty. liberty. liberty. liberty. ♪ (vo) sail through the heart of historic cities and unforgettable scenery with viking. unpack once and get closer to iconic landmarks, local life and cultural treasures. because when you experience europe on a viking longship,
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maria: welcome back. chinese leader xi jinping will travel to moscow on monday to meet with russian president vladimir putin after his three day visit, state visit, xi is expected to speak with ukrainian president zelenskyy, a new report reveals chinese companies including one connected to the ccp sent russia assault rifles, drone parts and body armor between june and december of last year. joining me is the atlas organization founder, jonathan ward. his new book is out right now. it's great to have you this morning. thanks very much for being here. >> hi, maria. good to be with you. maria: i guess this says it all a, the fact that china is supporting russia in its war against ukraine, the fact that china is shipping al salt -- asa
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weapons and body armor to russia your thoughts. >> xi jinping is on the way to have another round with putin on the strategic partnership for cooer nation for a new era, it's a deep relationship as we talked about for a long time. it's very clear whose side china is on. you add this to xi jinping's recent speeches where he's talking about u.s. containment and suppression of our country and that sort of thing in his foreign minister talking about how we're on a path to conflict. i mean, is very clear what they're doing. a russia/china axis is forming. this has been about a decade in the making. they started working together at least around the time of putin's seizure of crimea and china's island building in the south china sea. this hayes a lo -- this has a lt to do with companies, whether talking about bytedance or the company shipping assault rifles to russia, one of the nastiest china state owned assets, part
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of the supervision commission. that's the main body of the state owned enterprises. it specializes in artillery, tear gas, mean battle tanks and infantry combat vehicles, it's on the fortune global 500, $70 billion in revenue, 200,000 employees. and it's also on our sanctions list. it's one of the nastiest ones they've got. this will be about the companies. we're going to win or lose this contest in a global game against chinese corporations all of which were owned be by the state or backed by the state whether they're working with putin or sending tiktok into our cell phones, that's the battle space and they're going to go after our companies too. our corporate leaders could have been a little smarter about their china engagement and i think it's pretty clear what that china ultimately intends to retaliate in the china market against our companies. maria: i mean, this is why i'm questioning why we even say chinese company tied to the ccp. i mean, aren't all these companies tied to the ccp?
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that's the law. if the ccp comes to you and says we want your data, we want this, you're going to give it to them. they're all tied to the chinese communist party. the wall street journal says china's communist party overhaul deepens control over finance and technology. xi is tightening his grip over the government and the economy in a broad overhaul of the communist party announced yesterday as a he begins a third term. the set of commissions to oversee the finance and tech sectors as well as social stability of china, you've written all about this over the last several years so why doesn't corporate america get it where we have big money managers who are telling their investors to double down on buying chinese companies. are we basically funding the expansion of the ccp and funding the destruction of the united states because these money managers want to make money on chinese stocks? >> well, yes, i mean, we're absolutely funding this add ser
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adversary. that's what we've been doing from the beginning. it's a total a mess. dji is spending drones to russia. you can buy dji drones in best buy. i saw them last week. it's incredible. you have major banks creating investment vehicles. the french bank is creating investment products around chinese industrial policy to support their semiconductors industry. we're so mixed up in this. it is a path of self-destruction and it's one that we have to change course on but we still don't have in my view an administration that understands the role of companies in major power he competition. i mean, that's what this is going to be. i made that clear in china's vision of victory and he decisive decade goes into more depth on this. the way china uses corporations to execute their strategy, civil military fusion or the broader belt and road and the construction of chinese economic empire and in the meantime we're
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incentivized to go and sell the rope with which they'll hang us. they were correct about that part. it's a two part thing. business leaders need to think differently. they need to re-evaluate their china exposure, re-evaluate a their global strategies. it's not just enough to have a china strategy. have you to deal with t globall. government has to get more serious about the role that companies play because let's tface it our fortune 1000 is the bulk of the economic powernd a we need them on america's side and how long this takes to shake out will do a great deal to determine whether we win or lose this contest, what really happens to america. are we mature enough to use economic power for the right purposes or not. maria: yeah. well, look, they were enablers to nazi germany as well. weren't they? tiktok ceo yesterday told the wall street journal that forcing the app's chinese parent company bytedance to sell it will not address u.s. national security
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concerns. the ceo of tiktok set to testify in front of the house, energy and commerce committee next thursday and we talk so much about the theft of intellectual property. well, china has been doing that for years but they're beyond it at this point. now they're cull cultivating gs in aerospace telecom to outdo the united states, wall street journal says china has the answer to intensify competition with the u.s. and dominance of technology, create little giants, they can do that now after all of the intellectual property that they've stolen over the decades from america. >> well, that's right. they've gone down the path of creating national champions so the big companies, something like bytedance, a $200 billion company -- by the way, they're partnering with microsoft with a.i. right now. you can find this example pretty much any company you look at, some int grapes of our companies and -- int integration of our companies and there. communist party has board seats,
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internal ccp committees that according to courts meet regally regularly to study xi jinping speeches. we're all mixed up in this. they have a national champion strategy and variety of government guidance funds. they're going to pour almost an uunlimited amount of capital ino strategic companies. maria: you've been so spot on for so many years many thanks very much for being here this morning. good to see you. congrats on the new book. jonathan dt ward joining us. we'll be right back.
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