Biden lands in San Diego with his daughter Ashley and granddaughter Natalie

President Joe Biden landed in San Diego on Monday with his daughter Ashley and granddaughter Natalie to sign a nuclear submarine deal with the United Kingdom and Australia, as the collapse of Silicon Valley Bank sent shock waves through Wall Street.

He stepped off Air Force One before a ceremony on the military agreement to unite nations to fight China and bolster their nuclear fleets.

The deal with British Prime Minister Rishi Sunak will help Australian Prime Minister Anthony Albanese acquire three Virginia-class fast attack submarines from the US over the next ten years.

Ashley, 41, and Natalie, 18, followed him out the plane doors into the California sun as contagion spread through financial markets.

At least 20 regional banks were affected by the halt of operations during the turmoil on Monday after the president assured Americans that the banking system is “safe” and that taxpayers would not be affected.

Hedge fund chief Bill Ackman has warned that “the economy won’t work” unless Biden “guarantees all deposits now” as contagion spread to the Big Four trillion-dollar US banks.

Wells Fargo shares fell 7.5 percent, Bank of America 7.4 percent, Citigroup 5.8 percent and JP Morgan 2.7 percent.

Among the hardest-hit regional banks was Western Alliance, whose shares plunged 75 percent when the opening bell rang. Commercial circuit breakers also prevailed in First Republic, with its price falling by two-thirds, and PacWest, which fell 35 percent.

‘Our economy will not function effectively without our community and regional banking system. Therefore, the Federal Deposit Insurance Corporation needs to explicitly guarantee all deposits now. Hours matter,’ Ackman said.

“We need to hear from our government that it is explicitly committed to preserving our system of smaller banks. While not every small bank is “systemically important” like @jpmorgan or @Citi, collectively they are just as, if not more, systemically important.

The falls came despite US authorities reassuring SVB clients on Sunday that their money would be safe and ready for withdrawal on Monday following a $200bn run on the bank that triggered the second-biggest collapse in history, the worst since 2008.

Before boarding Air Force 1, the president made brief remarks, hoping to reassure Americans that “American banking is safe” after Silicon Valley Bank collapsed on Friday.

Shortly after Biden’s departure, the New York Stock Exchange opened and promptly halted trading in three banks: First Republic Bank, Western Alliance and PacWest after shares fell 75 percent.

Financial jitters continue to overshadow international settlement as Wall Street scrambles to figure out what’s driving multiple bank failures in the US.

San Diego is Biden’s first stop on a three-day trip to California and Nevada. He will speak about gun violence prevention in Monterey Park, California, and his plans to reduce prescription drug costs in Las Vegas.

The trip will include fundraising stops as Biden steps up his political activities ahead of an expected announcement next month that he will seek re-election in 2024.

Landing in San Diego, home to the US Pacific Fleet, Biden will meet Australian Prime Minister Anthony Albanese and British Prime Minister Rishi Sunak, two of America’s closest allies, as part of the 18 month nuclear partnership known by the acronym AUKUS which stands for AUstralia, UK, USA.

The consortium, announced in 2021, paved the way for Australia’s access to nuclear-powered submarines, which are stealthier and more capable than conventionally powered ships, as a counterbalance to China’s military buildup.

Ahead of the trilateral meeting, Sunak announced he will increase UK military funding by 5 billion pounds ($6 billion) over the next two years in response to Russia’s invasion of Ukraine and Chinese aggression.

The AUKUS partnership was announced in 2021, but Monday’s announcement will cement the details. Australia is buying up to five Virginia-class ships as part of the deal, according to the Associated Press.

China opposes the deal, arguing that it violates the Nuclear Non-Proliferation Treaty, which prohibits the transfer of nuclear weapons materials from a nuclear-weapon state to a non-nuclear-weapon state.

Australian officials respond that they are working to acquire nuclear-powered and non-nuclear-powered submarines.

Biden will also hold bilateral meetings with the Albanese and Sunak in San Diego.

The three parties have been working to provide Australia with a fleet of nuclear-powered submarines, given restrictions on technology transfer and classified nuclear processes.

On the way to the United States, Sunak He said China ‘presents an epoch-defining challenge for us and for the global order. It is a regime that is increasingly authoritarian at home and assertive abroad, and has a desire to reform the world order.”

But, he added, “China cannot be ignored” given the size of its economy.

“It is right to engage with China on issues where we can find common ground and make a difference, for example climate change, global health, macroeconomic stability,” he said.

“That is the correct approach while being very strong in defending our values ​​and our interests.”

The secretly negotiated AUKUS deal included the Australian government’s cancellation of a $66 billion contract for a fleet of French-built conventional submarines, sparking a diplomatic spat within the Western alliance that took months to mend.

French President Emmanuel Macron recalled his ambassador from Washington in September 2021 and then met Biden in Italy during a G20 so the two could make peace.

Biden called Macron on Tuesday, but a reading of the White House call did not say whether the AUKUS deal emerged.

The two leaders discussed the growing Chinese influence in the South Pacific, an issue that also worries Australia.