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Squawk on the Street

Yellen's Backstop Message, First Republic Shares Jump, Nvidia and the AI Arms Race 03/21/23

Squawk on the Street

CNBC

Business, Investing, News

4.1567 Ratings

🗓️ 21 March 2023

⏱️ 43 minutes

🧾️ Download transcript

Summary

Jim Cramer and David Faber focused on the latest developments surrounding the turmoil in the banking sector: In prepared remarks for a speech to the American Bankers Association, Treasury Secretary Janet Yellen said that the government could backstop more deposits if necessary to stop potential contagion. First Republic led regional bank shares higher on news that JPMorgan Chase is advising the company on strategic alternatives including a capital raise. Also in focus: The Fed kicks off its two-day policy meeting, a preview of Nvidia CEO Jensen Huang's keynote speech on AI to the company's developer conference, what the CEO of TikTok said ahead of his Capitol Hill testimony on Thursday, Amazon layoffs, Moody's ups Tesla’s debt from junk status.

Transcript

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0:00.0

Market Insight and Analysis. You're listening to the opening bell of CNBC, Squawk on the Street.

0:12.5

Good Tuesday morning and welcome to Squawk in the Street. I'm David Faber with Jim Kramer. We're live from post-9 at the New York Stock Exchange.

0:19.7

Carl has the morning off. Let's give you a look at futures.

0:22.0

We get ready to start trading on this Tuesday, half hour from now.

0:25.6

And you can see we are looking for a higher, higher open.

0:29.3

All right, let's get to our roadmap this morning.

0:30.9

It starts with, give you one guess.

0:33.8

Banks.

0:34.5

Thanks.

0:34.8

George Secretary Yellen is set to tell a banking summit that the government could backstop more deposits if necessary to stop any potential contagion.

0:45.3

Of course, Republic has certainly been a focus for us.

0:48.1

Those shares are up this morning.

0:49.8

As we reported yesterday, J.P. Morgan continues to advise the bank on strategic alternatives.

0:56.2

That could include maybe a capital raise.

0:58.8

We're going to get into this, Jim and I.

1:00.7

I'll give you some ideas here and what I'm hearing, too.

1:03.1

And, of course, we'll be talking about the Fed.

1:04.6

It's kicking off that two-day meeting.

1:06.6

Policymakers are juggling financial stability versus inflation.

1:14.5

And that's the key in terms of what they will do.

1:20.8

25, 50, zero. All right, let's start with the latest developments surrounding the banking turmoil that kind of continues. You've had a few days to sort of think about things. And we say

1:26.9

turmoil, you know, yesterday was actually quite a positive base for many of the

...

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