The Fed's Rate Decision and TikTok's CEO Testimony

continue to struggle? We assess what it all means, protect your investments, the jobs in the sector with VC's and founders across this show, and as we get the c suite perspective for you too, Adobe CEO, we go live to the Creative Software Giants Summit conference in Las Vegas, whilst full coverage on TikTok as it's chief prepares to defend the social media company on Capitol Hill tomorrow Canny as wage lawmakers push a ban or a forced sale.

We'll bring you those details and so much more throughout the show. First, let's go to the CEO perspective on the micro on their own news on the Macro. Joining us from the Adobe Summit conference in Las Vegas is Adobe CEO Chintannu Narayan, and it's great to have you chanton making important announcements as you do on the day in new generative AI offerings. But first, chantonneu your perspective, Sir, you've led this business as CEO since two thousand and seven.

You know what it's like to lead a giant through a financial instability issue, through a bank crisis. What do you make of the macro economic environment for Adobe right now? Well, Caroline, thank you so much for having me on your show. And as you know, we just announced our Q one results and for us, digital really just continues to be a massive tailwind because it's reshaping how we live, how

we work, how we're entertained. And Adobe has always really focused on ensuring that we build a company for the long run. You're absolutely right their business cycles, but whether it's consumer sentiment or whether it's small and medium business creation or larger enterprises. While there's perhaps more scrutiny on the expense, people realize that in order to drive profitable growth, technology is one of those areas that you have to

continue to invest in. So maybe we're a little more fortunate because we have more mission critical solutions and we have a more diverse portfolio. As it relates to geographic exposure.

But you know the company posted really strong results. Let's talk about amid this desire to continue to focus on R and D. You are, of course today announcing all indeed and the last couple of days that your summit announcing new artificial intelligence iterations in your product, in particular fire Fly defaminative of generative AI tools, and boy, the one silver lining, the one area of growth that we keep continuing to talk about. No matter what the MAC

environment is generative AI models, it's in beta. Can you just give our audience really what this means in terms of text in generating image, what sort of is this actually? As a user of Adobe, we think it is really a transformational moment, both for the company as well as for the industry. And Caroline, where we focus on is our vision is how do we unleash creativity for all. It's our assertion and hypothesis that everybody has a story to tell, they would like to tell that story on

different media. I was listening to your show and you were talking about what's happening with other platforms like TikTok. But people fear the blank a page or the blank slate, and so I think generative AI is a great way to have an on ramp into being able to take your idea, describe that in words, and then generate an image associated with it. And you know, I think people are also really focused on what are the ethical issues associated we're generating you know, these images, and I think

we've taken a very prudent and correct approach. So we think it helps people make our products more accessible, more productive, and more fun. How are you chucking those legal concerns for creators that perhaps don't want their images used. That's part of the reason that we are actually starting with a beta, because engaging with the community has been a really important aspect of how we introduce this. We've had

a site called be Hans. Be Hans is, you know, the most popular site for creative professionals in terms of how they showcase their content and get inspired. So, you know, Adobe has had a multi decade history of engaging with our customers. In this particular case, we were very, very ruthless about ensuring that the content on which our models were trained is content that we have absolute license for.

I think other companies have not been as strict or as diligent about ensuring that the content that they used to train the models. As we all know, the more data that you have to train the models, the better the models are. And so our approach has been always to make sure that this is bulletproof in terms of having rights to it and just engaging with the community.

We've also talked about how as we continue to have our stock service, which is a very popular image three D service, that we will compensate the people who are participating in that. So it's a thoughtful approach. It's the beginning of the journey, but most important, it's transparency and engagement with our community. Chantony, you are full and you all think about ethics, and you just mentioned TikTok, so I just have to go there for a moment. What

do you make of the business? Well, I think from my perspective, you know, every few years you have multiple platforms, and for me, when I think about TikTok or I think about the other platforms, it's really this insatiable appetite that people have for both consuming and for creating content. And so you know, I am not as familiar with all of the issues that others are perhaps concerned about, but from my perspective and the role that Adobe can play.

It's like, how do we allow people to express themselves? And I think that insatiable appetite is not going to go away. Of course, when it comes to authorities analyzing tech businesses like TikTok, there's some authorities eyeing M and A here in the US, in particular the DJ analyzing your deal for Figma at the moment, how integral is the Figma deal to your generative AI movement forward? How integral is that deal? Full stop? Will you fight to

protect it? Well? From our perspective, the strategic rationale for why we are excited about Figma is three things. We believe that we can accelerate product design, which enables new interactive experiences to be built for digital medium. The second reason is we think we can actually extend all of our products to do creative collaboration on the web and allow more stakeholders to participate, much like we did with

our acquisitions of Workfront and frame Io. And third, I think that there's this new emerging paradigm where the distinction between collaboration, creativity and productivity is rapidly diminishing, and everybody who wants to create a school project or a document wants to engage in it, both using words in text and images and animation. So strategically we think that it is a real extension of what we do. The Figma

business is an adjacency for us. I know there've been some questions about what does this mean for our core business. As we showed our core business is extremely strong, So we're doing this from a position of strength. We're confident about our position in this. It's such an adjacency. The overlap is diminimous to but we will engage with the authorities.

Would you ever abandon the deal of you had to, Well, at this point, you know, given we are confident about you know, the deal terms, we will just continue to operate with the authorities. And you know that's what we're focused on, which is how do we you know, continue to deliver value to customers and demonstrate why this is a good thing for the community, for customers and another

important thing for the economy. If companies that are being created the US has been the hotbed of entrepreneurship, it is really critical that you know, there be economic outcomes that are appropriate for startups as well. So at this point we're really focused on continuing to impress upon the authorities.

Why this is good? Full circle back to the macro there, Adobe CEO, We thank you so much, Chantanoon or Ayan, whether you get back to your summit now, speaking of ultificial intelligence, can send President Martin Law played well company's prospects in international gaming and AI this year. He called it a growth multiplier and said that ten Cent will gradually integrate AI capabilities across its suite of products, from

we chat to online media. Now the news comes as ten cents revenue inch to one percent higher after two successive quarters of contractions. That's where a fifteen percent jump in online advertising revenue, in particular in the final three months of twenty twenty two. Wall Street leaders and US officials are discussing an intervention at First Republic Bank, exploring the possibility of government backing to encourage a deal that

would shore up the lender. This after we learned today that pat West has beefed up liquidity after a deposit exodus from its venture banking segment. So much going on with these lenders. Meanwhile, fintech startups like Arc, like Trance, like Brex, they have moved to provide emergency funding two companies.

Brex told Bloomberger had seen record business and an excess of one billion dollars in payroll loan requests from startups that have funds trapped in Silicon Valley Bank joining us now to discuss the macro but also innovations of their own. And Rique Doubograss is brex Co CEO, who is not only onboarding at a rapid rate, but you're also announcing

new product offerings to boot. And Rique just talked to us as a highly valued startup in this environment that's been looking to service finance professionals in particular with your offerings. How have you managed to deal with the rapid uptick in people wanting to be onboard? How you what's the SBB fall up in Like, yeah, absolutely so First, thank

you so much for having me on the show. It's been honestly one of the craziest weeks in my professional career of everything that's happening and something sad for the technology industry. You know, we definitely saying our support to sub and hope they have a successful outcome with the regulators. What happened was, you know, since the fallout, I think a lot of customers moved from wanting to have a relationship with one bank to wanting to have multiple relationships.

And I think Brex, you know, as kind of like another company that has startup friendly and knows this startup market has been one of the I would say most common choices for startups wanting to diversify their funds, you know, from keeping maybe someone sub some on Brex and some on some of the big banks as well. So we've been seeing a lot of inflow of deposits and new

customers because of that. And Okay, I asked this to the pilot CEO yesterday again another company servicing largely startups in the space, do you worry about your own consolidation of the types of people that you're offering your products too? Yeah, absolutely so. Even though Brex started a startups and we're very well known for it back in twenty seventeen, we actually serve a variety of industries today, like we serve media companies and you know, a beer company CpG. So

we have a pretty diversified industries in our products. And because we're not a bank, right, we're not succeptable, I would say to bank runs because we're a cash management account. So I'm not super worried about the same problems that the banks are having because we are not a bank. That's even though we got a lot of you go ahead, well no, and okay, let's talk about what you are. Let's talk about what in particularly empower platform is because

it's cards, it's expenses management, but it's also travel. Now this is a new iteration and new announcement that you've got. How hard is it to iterate to bring new offerings to the table when you're also trying to onboard like mad Yeah for sure. So think about it as all spend right, So we have corporate cards that we started, and we went to expense management, our business account products so you can make wires, ah checks and today we're

announced and travel. So now not only are going to be able to book your travel on different websites, while inside of brex app, you can book all your travel on a super easy way and you can have the experience from your entire travel from booking the trip to swiping through your credit card and restaurants and ubers that you may need on your business expenses that you don't need, receipts, you don't need memo. Everything is automated to you. All

the approvals are automated. You can keep everyone on budget with our live budget systems. So a lot of companies we're seeing are trying to control their travel costs and a lot of them are saying, hey, you should just travel take two stops, you know, on the way to San Francisco, New York because it's cheaper. We're saying, don't do that. Give accountability to your managers to actually choose the trips that they let their teams do and keep

everyone on budget. What are you seeing with your clients in this macro environment we're thinking of the FED today with thinking of well financial issues in terms of well the conditions are contracting in many ways. Are you seeing that from your client perspective in terms of the trimming their costs? Absolutely? And I think that's, you know, a met positive for our industry. I think everyone is learning how to do more or less and using even more technology to learn how to do more or less right.

I think a lot of the AI revolution, for example, that we're seeing of general AI. We announced an AI product also a few weeks ago that you're going to be able to ask any questions you would want to de finance team and have an AI response to you, can I buy this, how do I buy this? Where do I get this approve of how you know, how I'm budget I'm spending too much on this? These are all questions that would take up the finance team to go and do reports and now can be answered by

an AI. Right. So, I think this part of doing more with less is something that is actually going to be really positive for the technology industry, which was a little bit you know, bloated over the last few years because of the excess money, and I think it will be super positive and a lot of our products are helping companies do that, like I mentioned with our travel products and the live budgets. Enrik, thank you for coming on telling us your story and what it's been like

in the last week or so. Enrik Dograss, thank you, Brex co CEO. Mean, while coming up, we're going to walking through everything you need to know before tomorrow's TikTok hearing on Capitol Hill from New York. This is m back to achieve our resales target intentivistory. So in short, Germany gross to gegu is tired and the spending are

the key for the improvement of our profitability. That one's the CFO of Chinese EV maker NEOs saying they will be meeting their target of doubling sales at two hundred fifty thousand electric vehicles this year. Now that exists to today's talking tech, and we're sticking with EV's first up forward, the company taking a small steps towards revealing losses in

the EV business. Now, the automaker will unveil an overhaul financial reporting structure for its redesign company that really lays out the profit and the loss of each business line. The new look balance sheet will give investors a more complete view of forwards at nascent EV business, including expenses, of course, and revenue how much money it's actually losing.

Turning down to chips, the Biden administration unveiling tight restrictions on new operations in China by chipmakers that get federal funds to build in the United States at the fifty billion dollar Chips and Science Act will now bar firms that win grants from expanding output in China by five percent for advanced chips or ten percent for older technology.

The Commerce Department also outlined other measures, including look at and one hundred thousand dollars spending cap on investments in advanced capacity in the country and sticking with China and the Biden administration, the US is assessing whether Silicon Valley banks collapse infected more pain on Chinese technology startups than the government in Beijing, and indeed Chinese companies have disclosed. The Biden administration is pulling together data on Chinese companies

that may have accounts with regional US banks. The key question is whether there is any risk of broader contagion in the world's second largest economy. Sticking with Chinese companies, the CEO of TikTok will appear before the House Energy Commerce Committee tomorrow in an effort to prevent TikTok's ban or for sale. We go now to Capitol Hill, where our own Alex Barnka is standing by, and overall, what

are you expecting to do? We think the show Chow, the CEO company, pushed back on the viewpoint coming from the lollmakers right now. Well, according to his prepared remarks that he plans on giving tomorrow, pushback is exactly what he's trying to do. His remarks are very definitive, saying things like byte dance TikTok's parent company is not an

agent of the Chinese government or any other country. He'll also say that the security plan in concert with Oracle is a American plan storing American users data on American soil by an American company. So he's coming in with kind of a really definitive tone here for his first testimony on Capitol Hill overall. Has the lot being been present? Has the viewpoint anything, is anything that we're going to hit tomorrow actually going to be new in some way?

Do you think it's really interesting you ask that, Carolina. It is sounding like a lot of the same talking points, the facts that Cho likes to lean into. He's going to be bringing those into the Hill tomorrow, talking about the security plan, talking about how he believes that TikTok is doing more to protect young users, which will definitely be on the mind of the representatives who are in the room. Now, Look, these are a lot of points

that we are familiar with. They're the points that our sources tell us they have been bringing to lawmakers in those closed door meetings ahead of the Hill. So he's facing a pretty tough crowd. Honestly, when you think about what is a win for him tomorrow. It's almost to do no more damage than the sentiment has already been done.

And if anything starts to ingratiate or kind of humanize TikTok and lay that line clear that he believes there's no chance that the Chinese government can exert any influence on the app. Very briefly addicts, do you think he'll reference us social media companies? I think he will, if not by name, then by tune, saying hey, look, we're actually doing more on data protection, we're doing more on

trust and safety policy. So maybe you should be worried about all of us and access TikTok Alex Sparenka, great to have you on from DC. Welcome active Bluemo technology. I'm Caroline Hyde in New York. It is nine thirty on the West Coast, it is twelve thirty right here in New York is four thirty pm in London. All eyes in the financial and economic world are laser focused, of course, on what Federal Chair J. Powell is going to be saying today. He's going to be trying to

balance his fight against inflation. Let me just saw in the UK against look, a sudden banking crisis that's erupted, and as part of that, there are ongoing concerns about funding, funding for startups, funding for those that have been hit by the SVB collapse, and ongoing concerns that we have

today on First Republic and now pack West. And yes, you may not realize it, for not all of these people are tech bros, because there are also non traditional founders, many that don't necessarily get thought of when we see and say Silicon Valley, who also been affected by this crisis.

In a Bloomberg opinion piece, Midi Health co founder and CEO Joanna Stroba writes that while the Silicon Valley ecosystem has plenty of men with bulging egos, there is another group quietly building startups there, many of whom were supported by Silicon Valley Bank and First Republic Bank. Founders like yourself, Joanna, and very produced to say, I can welcome to the program,

and I'm glad you got the blue memo. I'm really interested, Joanna in this piece, this thought leadership and how has business like yours been affected by the last couple of weeks, you know, like anyone else that's been a really stressful experience. It was not clear over the weekend whether we would

be able to make our pay roll. But this the following way week, it wasn't paid clear whether the company would would succeed, and so it was it was definitely an extressful experience trying to figure out how to get how to get everything secured and be sure we'd be able to continue to keep all of our employees. You know, we have employees all over the country and we wanted to make sure they would they would still have jobs.

Employees like nurses, health practitioners or women's health startup you have founded to focus on menopause, on perimenopause in particular, and it's almost the antithesis of what perhaps we all started to think of and got a lot of notoriety during the unfolding of the collapse of SVB. We all thought about these rather lyld you know, white male tech bros who were on Twitter complaining loudly in all caps. Meanwhile,

this was about to effect the broader economy. How has the conversation gone behind the scenes among women, diverse founders, people of color who perhaps felt that this wasn't a great pr exercise for their industry. Many of them felt very ignored quite honestly, when you read Twitter over the weekend, or you read the mainstream media, no one was talking about the healthcare the healthcare companies, or the education companies,

or the clean technology companies. No one was talking about female founders are The discussion was about this very small group of very verbal, outspoken men on Twitter who were loudly protesting the fact that their companies would be hurt. But the reality is there are so many more people are reflected in Silicon Valley. There were also people who

run nonprofits whose money was in these banks. There's people who run camps who's many in these banks, and so none of those people felt hurt during this, and I think there was a lot of sense of wow, like we have tens of thousands around of employees around the country doing really important things that no one is talking about us, And it almost felt sort of insult injury was that we were just coming off the back. I'm sure you were of a lot of female focused events.

It was of course International Women's Day the week before, and there was a lot of talk about diversity and trying to build that momentum within the tech scene among vcs. You used to be one among founders. You now are one, and I'm interested as to whether people are now banding together a little bit more to try and amplified voices rather than just you single handedly trying to put about alpeds.

At the moment, I think I think there's a lot of sense that we need to be part of the story, right, that we need to be part of the narrative, and the women realize that they need to be a much bigger part of the of the discussion about what's going on in Silicon Valley. The percentage of women who are funding companies is increasing, the percentage of women who are founding companies are increasing, and we need to be part

of that narrative. We need to be in the mainstream press and not just doing this quietly behind the scenes. We need to be much more verbal about what we're doing, and I think there's certainly a sense of a lot of founders that we need to be expressing much more about the importance of our companies and the importance of our companies to the overall nation, because these companies are making a really big impact in all sorts of areas, including education and healthcare, and we need to make sure

those voices are amplified. Are you worried that any of those businesses aren't going to make it at the moment that all solving key issues. I think that the Silicon Value Bank issues this week are going to make it harder for at least in the short term, for companies to get funded. And I also think that often when these things happen, there's a retrenching to entrepreneurs that you're most careful, they're most confident in. And also those are

often more traditional entrepreneurs. Silicon Valley Bank and First Republic Bank did a great job at supporting non traditional entrepreneurs and women, and I'm hoping that, however those go forward, those new organizations will continue to be really supportive and not just focus on a core group, but on expanding the percentage of entrepreneurs in the country. And actually I really hope that it gets expanded nationwide and not just

in the United States. Well, we were just speaking with one of those companies, a fintech that has sort of been lent upon more in this current environment, like brex. All these FinTechs or indeed more mature, all the banks that people have turned to, some of them leaning on some of the most well systemically important banks in the country.

They is open to lending to companies like yours. Yes, they are actually, I mean, I think there's been an acknowledgement that women are a much bigger part of the ecosystem. People of color are much bigger part of the ecosystem, and they are starting to get access to capital. And that's what's really important is they have great ideas. In order to make those ideas come to fruition, you need

access to capital. And so anything you can do, like those non traditional funding sources that can enable more people to get the funding to start these companies, then you're able to grow. And that's that's really the key to starting a company in Silicon Value or any place else is getting access to capital to do that, and we need to expand the number of people who are able to get access to that capital. Now, media organizations such as ourselves care about getting your voice on the media.

Organizations such as ourselves help train people to ensure that we can get enough new voices coming on certain programs. But I'm interested in what else you can do other than write and cap blocks on certain social media companies to hear voices said, what do you think underneath the system is happening at the moment, so that you're all galvanized.

You know, it's easy sometimes to write about the loudest people, and so part of it is encouraging people who maybe are quietly building very large companies to spend more time on the press. I think awesome when when you're building a company, you spend so much time doing that that you're actually not enough in the spotlight and talking about these issues to the national audience. And so probably training people to do that and to be more aware of

what's going on in the world. We started doing a startup, you're really focused every day. I mean, we are spending time every day find to make sure that things run, that we do a great job with our care, that we're taking care of all these women, and then you forget to actually look up once in a while and go, oh, you know, I really need to be thinking about the national press as well, and so it's actually important that

everyone knows how to do that. MADI Health co found ercio John Ostroba, thank you so much for coming sharing your journey of late with us. So you assume meanwhile, coming up, we're going to be joined by initialized capitals.

Kim My Cutler, who actually was one of those vcs behind the scenes, working amid the svv S foolout to educate policymakers what was happening in the unfolding banking crisis, and staying in Washington taking a look at bank stocks right now, the US officials discussing an intervention perhaps at

first Republic Bank. That's Bloomberg exclusive reporting. We've got packed West, of course, taking help on the liquidity side today, both down free that federal reserve decision from New York from Washington, this is Bloomberg. Shortly we'll be getting the right decision from the Fed. Will also be hearing about what Jpale thinks about the ongoing bank crisis. Of course svb's collapse, the fallout, and it's impact. We're going to now digest

on startups on the VC world at large. Kim My Cutlers with us some place to say, partner over an initialized capital joining us now. And what's so fascinating about your role in the last couple of weeks is, of course that you were one of perhaps fifty or so at least leaders in VC quietly trying to help policymakers understand the ripple effects of what an SVB true collapse would have meant. We ultimately got well the support of

the depositor. What do you make of government intervention thus far? I, you know, I've actually been very engaged with public policymakers over the last ten years. You know, I started writing about issues around housing affordability in the bearing California about ten years ago and then helped for I was part of the information of an organization that shepherd's about half a dozen pieces of legislation into state law every year.

And so I have this kind of deep bench of expertise and a deep network around engaging with public policymakers. And so there are a circle of us that are about you know, fifty hundred or more folks in the venture capital industry and tech founders who have been communicating for a very very long time around you know, the implications of our industry with respect to you know, governance

in the larger community and society at large. And so, you know, on Friday morning, when we saw that the FDIC had put Silk and Valley Bank injury severership, there was all the internal work that we were doing at initialized capital of the firm in terms of triaging our portfolio, figuring out who had to make payroll you know, the

next week. And then also at the same time, I was doing a lot more external facing work with this group of fifty or so folks, literally in a WhatsApp chat group, figuring out how to draft memos to send out to policymakers to help them understand the real the real world implications of this UM you know, for a startup UM, not only was it the issue of figuring out how to pay talent and to pay employees the following week, even the level of uncertainty around you know,

what the initial dividend was going to be. You know, startups to make very explicit plans over you know, how they're going to spend their burn and runway over a matter of months and years, and then not having certainty over that really, you know, throws a wrench into their ability to provide their team members with UM you know, the kind of long term support that they need. And so just getting that message of that the pool was really important because have you had to decide who you'll win,

is who you'll lose? Is all you having to doll back on writing checks at this moment, just because of the enveloping crisis that surround us. No, no, not at all. I mean we're doing We're doing deals every week, and I mean I made an offer last week in fact, so I mean we're we're very very active. But for what for what we needed to do? You know, last

last Fridays we went through the portfolio. We had to figure out who banked with whom, Um, you know, if they banked with SPB, what was their level of exposure, how much they were able to transfer out versus not if they had to make payroll the following week. And then we had to go and figure out what our actual like literal immediate exposure was and that was actually, thankfully, pretty small. But you know, we had to be prepared to be in a position to help our companies, you know,

pay their employees. So you know, you know, we didn't end up having to do that because of the announcement on Sunday afternoon, thankfully, But it was definitely an incredibly stressful weekend. And I remember getting the news that learning I actually worked at for Bloomberg Show, and so you know, I was just I had this feeling of oh my gosh, this is this is like the Lehman day. This is going to be a Lehman this is going to be a Leman weekend. But but then you're still writing checks

and so yeah, who do you write checks too? Is it only generative AI companies? You still able to remain focused on the breadth of types of founders that you back because you've got one hundred and seventy five plus active portfolio companies, your class climate to fintech, to you know,

you name it, the sector you're on. Yeah, Initialist Capital has always been a generalist seed firm, and we've always kind of led the you know, let the best and brightest founders kind of take us to, you know, whatever the next trend is. Um, I've done all. I've been doing a lot of deals in the climate space. UM. We have another you know, our managing partner, Bret Gibson,

has done a lot of deals. He's increasingly looking at generative AI and has a long, deep and deep history and in doing you know, crypto and crypto deals as well, and so you know, we do a lot of deals in a lot of different spaces. UM. You know, for me, because of my background, as I mentioned at the beginning, UM, climate obviously has a lot of implications, you know, in terms of getting the private sector and private entrepreneurs to innovate and getting them to work with public policymakers to

address this, um, you know, just enormous, enormous problem. How confident are you the problems like that can be solved at this moment when you're having to put together memos policymaker is called cascade bank failure scenarios. Are we still in that scenario right now? Or do you think you can get back to the job of writing checks and

founders building companies? Um? I mean, I mean, I honestly think more of the you know, obviously, in you know, the day to day bank stability coverage that you're doing, I think it's probably affecting your side more than it is ours now. I think, um, the you know, the FEDS, the FDIC coming to assure depositors at SVB was a really important signal for a lot of founders and investors in the space, and so like the immediate payroll needs and that concern has been a suage and so we

are continuing to do new deals. Obviously, we're making you know much We're being much more proactive about the advice we're giving in terms of how founders and companies should diversify where they're having holdings and being much more thoughtful around you know, where they have access to short term cash versus where they're keeping their kind of mid term needs. We all learn a lot about treasury management all of a sudden. Initial House Capital partner, ki My Cutlet, it's

great to have some time with you. Thank you. By the way, the all important FED decision is just what abo an hour away? What will the FED say about the state of jobs. I mean, we're going to talk about it from a tech sector perspective, but lay us

more broadly and what will all this mean? Of course, amid risk assad appetite following a bank crisis that still seems to be looming, Let's bring in Brimberg's Michael McKay he's over there and Washington, Blombag, Shinani Bassek right here in New York and Mike to start the balancing act from j POW is going to be a tough one. The bank crisis on one side, inflation on the other. The FED doesn't want to mix the two, but it's

sort of impossible. The Chairman is obviously going to talk about whatever they do on the monetary policy side, but they've always believed the monetary policy is not a good tool for banking issues. They want to use supervisory regulatory

powers that they have to deal with those. So he'll talk about the banking system in general being in good shape and that the FED is doing whatever it needs to do to keep the banking system from imploding, but they want to separate that out from the monetary policy implications of inflation and the fact that inflation is still their biggest concern. Shanani, is the banking sector in good shape.

I think something to look at here is what happened over at Pack West, because you see them disclosing the twenty percent of their deposits were under pressure this year alone. Listen, a lot of that was tied to the venture commune as well. So while you've seen First Republic really have ripple effects filling into other banks, there's a question about which deposits, whose depositors at what banks are really under pressure.

Certainly the technology community their ripple effect into other banks, as you see with fat Pack West, as you see with First Republic, is still of alarm and of concern. Here, Now, how this continues to ripple on is still an unknown. And you did see pack West find a private sextra solution here with an entity that was really created by Apollo stepping in to provide a loan. Something interesting here is we had reported that Apollo is among the potential

buyers of Silicon Valley Bank assets. This shows you that not allosses are all that attractive to every private equity firm. And Mike with well the no stock on the pressure, we've got thirty seconds? Is it twenty five basis points with piketon it looks like it. It's about an eighty percent chance according to futures trading, which is not quite certain, but that's the way the more it's leaning, Mike McKee, We'll let you get back to preparing for the all

important drop a news. Shnali Bassac all over the things with the banks, will thank her stay with Bloomberg a special Bloomberg surveillance. The FED decides the coverage is starting at one thirty pm New York time. That does it for this edition of Bloomberg Technology. Ed get well soon. This is Bloomberg