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Biden insists that the banking system is safe, the ECB sees limited Europe consequence from US banking collapse, HSBC will inject $2.4B of liquidity into SVB's UK arm, bonds are rallying hard while yields plunge amidst banking fears, First Republic Bank's shares fell 62%, Chick-fil-A is planning a $1B Asia/Europe expansion, and Amazon and Rivian are revising their EV delivery truck deal.

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Let's dive in.

Before The Bell

Markets

• US stocks ended yesterday's session mixed on a continued decline in banking stocks following SVB's and Signature Bank's collapse

  • Global financial stocks lost $465B on SVB impact worry

  • The rate-sensitive Nasdaq ended higher as investors bet on the Fed to pause rate hikes

  • Futures markets priced in a 56% chance of a 25 bps rate hike next week, with no chance of a 50 bps hike

  • S&P 500 bank index continued its slide to lose another ~7% yesterday

  • The Dow fell for a fifth-straight day

• The pan-European Stoxx 600 closed down 2.34%

• US 2Y yield fell 0.62% to 3.96% it its biggest drop since 1987

  • 2Y yield dropped over 1% since Thursday

• Gold hit a six-week high

Earnings

• What we're watching this week:

  • Today: Lennar

  • Wednesday: Adobe

  • Thursday: FedEx, Dollar General

• Full calendar here

Headline Roundup

• Biden insists banking system is safe after two bank collapses (AP)

• Bank sell-off spreads to Japan as SVB collapse shakes global markets (FT)

• ECB supervisor sees limited Europe consequence from US bank collapses (RT)

• Collapse of SVB and Signature Bank calls Fed rate path into question (WSJ)

• Too-Big-to-Fail lenders rake in deposits after three banks fail (BBG)

• HSBC will inject $2.4B of liquidity into SVB UK (BBG)

• Banking crisis powers historic bond rally (WSJ)

• Eurozone bond yields plunge amid fears from SVB collapse (RT)

• US 30-year mortgage rates dropped to 6.57% amid SVB collapse (CNBC)

• Bond market volatility has outpaced that of stocks in past month (RT)

• CDS on US investment-grade firms rose to its highest since November (RT)

• Credit Suisse 5Y CDS hit a record high 453 bps (BBG)

• Morgan Stanley and BlackRock mutual funds were heavily exposed to SVB's and Signature Bank's collapse (RT)

• Moody's puts First Republic on Downgrade Watch on outflow risk (BBG)

• First Republic Bank shares dove 62% amid news of fresh financing (RT)

• Norway's sovereign fund expects to recover some SVB bond investments (RT)

• White House approved an $8B Alaska oil project (FT)

• Chick-fil-A is planning a $1B Asia/Europe expansion (WSJ)

• Shareholders sued SVB and its execs for fraud (RT)

• Amazon and Rivian will revise their exclusive EV delivery truck deal (WSJ)

• Growing amount of high earners are opting to rent (WSJ)

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Deal Flow

M&A / Investments

• Pharmaceutical company Pfizer agreed to buy cancer-drug maker Seagen for $43B (BBG)

• A group of investors including PE firm Silver Lake and the Canada Pension Plan Investment Board agreed to buy software developer Qualtrics International at a $12.5B valuation (BBG)

• French drugmaker Sanofi agreed to buy biopharmaceutical firm Provention Bio in a $2.9B deal (BBG)

• UK PE firm Cinven made an offer to buy German laboratory operator Synlab in a ~$2.4B deal (BBG)

• French property company Icade agreed to sell off its shares in its healthcare real estate division Icade Sante for ~$1.5B (RT)

• JPMorgan and PNC are potential suitors to buy bank SVB Financial Group, in a deal that would exclude the commercial bank under US government control (AX)

• Carmaker Hyundai is planning to buy US carmaker General Motors’ plant in India (RT)

VC

• Clara, a corporate credit and expense management startup, raised $90M in debt led by Accial Capital (RT)

• Algae biofuel company Viridos raised a $25M Series A led by Breakthrough Energy Ventures (BW)

• Carbonomy, a startup helping farms become sustainable and increase their revenue via carbon credits, raised a $16M Series A at a $130M valuation led by Hedonova (PRN)

• Shennon Biotechnologies, a biotech startup using a single-cell analysis platform to create more effective immunotherapies, raised a $13M seed round led by DCVC (BW)

IPO / Direct Listings / Issuances / Block Trades

• Chinese driverless technology startup WeRide plans to raise $500M in a US IPO (BBG)

Debt

• The US system of Federal Home Loan Banks, a key source of cash for regional lenders, raised $88.7B via sale of short-term notes (BBG)

• First Republic Bank secured additional financing through JPMorgan and the Fed to shore up liquidity (RT)

Fundraising

• African tech giant Naspers shut down Foundry, its $100M fund focused on South African startups (TC)

• Los Angeles Cleantech Incubator launched a second fund seeking to raise $30M to back women-owned green firms (BBG)

Crypto Corner

• US crypto firms are trying to open Swiss bank accounts amid banking meltdown (RT)

• Crypto fund outflows hit a record weekly high (CD)

• Hackers stole ~$200M from crypto lender Euler Finance (TC)

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• Bloomberg's Odd Lots podcast explained how the Federal Reserve grew so powerful over time.

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