. >> facebook recordly -- the social media giant also face paying major global outage all at this hour we have full team coverage of the three big stories. it is thursday, march 14th,

2019 you are watching worldwide exchange, and it begins right now. let's get to your topgs this morning. the federal aviation administration, the faa, grounding all boeing 737 max jets following two deadly crashes in under five months contessa brewer has the details on this story. >> ground sg temporary while the investigation continues, but, look, this is a dramatic reversal from the support the faa was voicing earlier this week about the safety of the particular aircraft.

>> we are a data-driven action-oriented agency we don't make decisions about regulating or grounding aircraft or even shutdown decisions for airports and aircraft without actionable data, and in this case the actionable data didn't arrive until today >> in the order to ground the boeing 737 both max 8 and max 9, "the acting administrator has determined that an emergency exists related to safety in air commerce." the data recorder in the cockpit voice recorder were damaged in the crash, and special equipment is needed to extract that information, so they're in paris, france, this morning. ethiopia is leading the investigation with assistance from the faa and ntsb. it's part of the information

they collect to monitor planes globally it was given to the faa monday it's a jand official tuesday night. by wednesday morning canadian officials had done an about-face and grounded their planes. the u.s. authority said they went and refined the data. it took them days to do that, and they collected more physical evidence on the ground, and then made that decision in the middle of the afternoon yesterday in reaction to grounding, those max 8 and max 9 boeing released a stanlt saying we are supporting this proactive step out of an abundance of caution safety is a core value at boeing for as long as we've been building airplanes it always will be. there is no greater priority for our company and our industry boeing shares are lower in the premarket, and yesterday we saw a big most nosedive, but then closing half a percent >> around $25 billion to $30

billion shaved off of boast agency market value because of this there is a reason why because boeing 737 line of jets have become one of the most single if not the most popular single aisle jet flown in the world at this point >> they are not slowing down the production line. the real question right now about thousands of orders for these planes delivered some 350 so far roughly are the companies who bought them going to accept delivery, accept possession of planes when there is a big question around it, and if they don't, what does boeing do to score these planes? meanwhile, analyst after analyst after analyst have come out with a note saying this is a near-term blip it's going to have an impact on the first quarter for boeing, but it's not likely to be a long-term hit to what boeing's

credit worthiness is, for instance of the order backlog, around 80% are 737 jets 6,000 orders that you have on the books, and almost -- >> yeah. >> almost 6,000. 80% of them are boeing 737 jets. production continues, but deliveries are now frozen, right? who is going to take possession of a jet when there's this kind of question? that's the question whether there will be deliveries that go on so far nobody has come out and said we're not accepting delivery dloo contessa brewer, thank you for that coverage. you're all over the story. see you later on with that one as well.

>> they've been hit particularly hard the 737 max line accounts for 11% of norwegian air's total fleet. that number is even higher for iceland air at around 14% of its fleet. norwegian is now demanding compensation from boeing to recoup losses from the grounded planes some estimates project that norwegian is losing up to around $800,000 each day than its 18 737 max jets are grounded. shares of norwegian and iceland air are both big at least decliners over the course of this time period that we're focussing on right now as you can see there in the chart iceland air down by 7% norwegian air down by 5% during that >> they will decide whether or not to delay brexit. let's get out to steve live in london with the latest details there. steve, it is still the deep

opposition if something cannot get done, it will be a no deal brexit, right? >> all other things being equal, and actually with this deal in place or not, we are leaving the second point is we need agreement with the e.u. to extend the brexit process, and as far as they're concerned, unless this is a reason to extend that brexit process, then they're not going to potentially let us do so regardless of what mp skpz parliamentarians want today. we had a vote on tuesday, and meaningful vote on mrs. may's deal she lost, and she lost that's called mb 2 meaningful vote 2. she only lors the first one in

january. we had the vote last night, which was an expression of opinion, and an expression of will not actually binding and not going into law. today we get to extend the whole process. add to the mix the fact that actually the legal advice may well change now from attorney general which may mean the hard brexiteers can get behind her original idea if indeed she brings it back to the table. >> steve, now what happens they're trying to extend it, but extending it is a request with the e.u. >> what does the e.u. gain by giving them more time to get a deal done? snoo well, they potentially get the end to the chaos

they get them precious time. >> they know there's a way forward, and, of course, they have the european parliamentary election, the european wide election, in may and they really don't want brexit going over that level as well because it creates a whole new layer of kay, on including the fact that the british would have to be part of those european parliamentary elections, which at the moment they choose not to be because they choose to be out of the e.u. by march 29th.

>> is this something that investors and traders need to be paying more attention to it really has led to nothing so far, but some sterling volatility >> technically, of course, we're still on track in the old time frame to -- and if we don't do anything else, then we do crash out, however, having said all that, in all likelihood, i think this option here is very, very -- there's a probability that's very, very small now, and i think we just heard from your colleague as well that there is an underlying sterling, and i think that's probably going to continue if i may say, because we could either get that deal when it comes around the third round, and if the mashlgin is probably going to reach more, then if that's not the case, then we'll probably be talking about the a very long extension. we're not talking about a very

small one. >> the ripple effects are being felt on both sides much the english channel. is there a predominant play is is there a better place to be? is it the continent towards the u.k. seeing the scenario play out? >> well, yes i mean, clearlythere is an economic impact on both sides in case of leaving without a deal, but relatively speaking, i think we have to call a spade a spade here the impact on the u.k. economy

is going to be so much larger. i mean, the european economy, the relative wide diversified and very large economic entity relative to the u.k., and the impact will be felt particularly in those countries that do the most trade with them the closest neighbors such as ireland or the netherlands by and larnl, i think the impact relatively speaking for gdp is going to be more manageable on the continent than it is in the u.k. >> the economics playing out peter, thank you very much for that update on the brexit negotiations and the economic impact we are also following a very big developing story on facebook as well. the company reportedly facing a criminal investigation into a data share elizabeth joins us now with that story. a lot of details coming out now. tell us what you know. >> good morning. it's another day with facebook making headlines over its data sharing practices.

facebook saying in a statement yesterday as we have said, we are cooperating with investigators and take those folks seriously. we provide a public testimony, answer questions, and pledge that we will continue to do so this is another test for facebook, as it tries to regain

users' trust and puts privacy centers -- we know this is a big focus for the company. >> there was a user outage yesterday as well. apparently nobody else could get their feed either. >> this is an outage we've seen across facebook, instagram, and what's app there is 2.7 billion users no small amount of use ez where are partial outage not affecting everyone issues from loading messages to not being able to load your profile to not being able to send messages, and what this sort of shows is that ultimately, if facebook is down, it can affect its platform including instagram and what's app. facebook actually had to take to twitter to explain that it was dealing with the outage, that it was aware of the outage. it also said on twitter that it was not part of a hack

now, on twitter as well, instagram says its platform is back this morning, and i can say that my outfit is working in london, but not fully resolved at this point, although more than 14 hours so far into the partial outage first, break out your rally cap to just the s&p 500 just as something it has not done all year we'll tell you what that is when worldwide exchange returns after this break so with xfinity mobile

i can customize each line for each family member? yup. and since it comes with your internet, you can switch wireless carriers, and save hundreds of dollars a year. are you pullin' my leg? nope. you sure you're not pullin' my leg? i think it's your dog. oh it's him. good call. get the data options you need, and still save hundreds of dollars. do you guys sell other dogs? now that's simple, easy, awesome. customize each line by paying for data by the gig or get unlimited.

and now get $250 back when you buy a new samsung galaxy. click, call, or visit a store today. futures pointing higher. check out the early action in europe because the bulls are in charge there at least for right now the dax up a half a percent. same thing for the ftse 100, and the cac up by three-quarters of 1% china item being overnight on weak data. industrial output growth going to a 17-year low for that reason flattish mark on the hang seng and shanghai deposit, though, is down 1% in trading. let's bring in dori riley, commerce street capital. doory, the global market picture is looking a lot better than it did a month or two ago

>> the u.s. market is trying to break out. a number there is not enough to reverse the trend. i'm a little mess mystic on europe, and i'm not real optimistic on china either are you trying to say that they are pretty much the only game in town, and for that reason the market rallies because there is no other place to go for your money at this point? >> i have been calling this the best of the worst, and if you look at the dollar, it's perfect evidence for that. that's one of the reasons why we have such a strong dollar.

>> if it is the u.s., there are places within the u.s. we have seen strength in places like transportation stocks and biotechnology and semiconductors dori, where would we be putting money as investors in the u.s. at this point. >> you have the problems in europe with arguably the biggest bank there in deutsche bank having troubles. it's 40% off its high. it's talking about a merger with

commerce bank. all these are good news for b of a, citigroup, and jp morgan. >> i have a tendency to try to focus on the companies and stocks that are more u.s.-focused than worldwide focused because that exposure is dragging a lot of those down if you can looking -- you can look at the historical returns or analyst expectations of those stocks from the s&p 500 and less than 50% exposure worldwide. the cuts on those estimates are a lot less than they are on the other. thank you very much. we appreciate it >> thank you

>> still ahead on the show, big pharma under fire again. johnson & johnson hit with another major fine over its baby powder products. we have the full details coming up and later on a wicked weather alert. millions of americans in the path of what meteorologists are calling, yes, a bomb cyclone we'll tell you where it's headed when worldwide exchange returns after this break so grant met his insurance: you are caller number 12. which didn't quite cover the steinway. but what if he'd met pure insurance? owned by members. he'd have met: lisa, your member advocate. who'd introduce him to gustav: leave it to me. a temporary address, temporary ivory, and help him get tickets to the mozart festival. excuse me, grant likes beethoven! uh, the beethoven festival. pure. love your insurance.

(danny) after a long day of hard work... ...you have to do more work? every day you're nearly fried to a crisp, professionally! can someone turn on the ac?! no? oh right... ...'cause there isn't any. here- (vo) automatically sort your expenses and save over 40 hours a month. without you, we wouldn't have electricity. our hobby would be going to bed early. (vo) you earned it, we're here to make sure you get it. (danny) it's time to get yours! (vo) quickbooks. backing you.

welcome back let's he get a check on the big stocks on the move this morning. johnson & johnson shares are lower. a california jury awarding a $29 million to a woman who claims asbestos in j & j's talcom powder gave her cancer. >> the stock has more than quadrupled sense the company's ipo. the there's up 21% and clodara shares are down sharply today. the software maker posting a wider than expected fourth quarter loss revenues beat forecast the respect is also forecasting larger losses this year following its acquisition of rival -- those shares up 12% let's get a check on this

morning's other top headlines outside of business. nbc's francis riviera live in new york with the latest good morning, francis. >> hi, dom good morning to you. as many as 74 million people are in the path of what's called a bomb cyclone moving across the central part of the country. the national weather service urged people in colorado to not even attempt to drive in this storm. white-out conditions stranded drivers and forced massive highway closures it's also packing strong winds tornadoes slammed new mexico damaging ten homes its powerful gusts moved into texas yesterday. officials responded to multiple tractor-trailers meanwhile, president trump could issue the first veto today if the senate votes to block his national emergency to fund the border wall. five republicans have said they will join democrats to send the legislation to the president's desk trump vows to veto the bill. new york police are searching for the shooter who gunned down a reputined mob boss overnight. sources close to the investigation say frank cali was killed outside his home on staten island.

police tell nbc news the suspected gunman set way from the scene in a blue pickup truck. it was believed to be the leader of a notorious gambino crime family that's the same once headed by john gotti according to the associated press, federal prosecutors in brooklyn have referred to him in court filings as the underboss of the gambino organization. those are your headlines >> thank you very much for those headlines. coming up on the show, more on this morning's top story the faa grounding all boeing max jets after this weekend's deadly plane crash. we have the latest details ahead. and u.k. lawmakers facing another key vote today as the clock ticks towards brexit we'll take you live to london when worldwide exchange returns after this

rebekkah: opioids has taken everything and everyone i've ever loved away from me. everything. i blew my ankle out and i got prescribed pain pills by my doctor. if making my detox public is gonna help somebody i'm all for it. i just wish i would've had a warning.

>> three major developing stories. the faa grounding all boeing 737 max jets following this weekend's deadly plane crash boeing shares are on the move this morning we have the latest ahead u.k. lawmakers reject ag no deal brexit. they'll vote on to outright delay brexit with just 15 days to go. and facebook recordly facing a criminal probe investigation into a data sharing deal the social media giant also facing a major global outage at this hour. we have full team coverage of all of these three big stories ahead. it is thursday, march 14, 2019

you are watching world wooitd exchange right here on cnbc. he zblanchts the faa calls it an emergency related to safety in air commerce and grounded those boeing 737 max 8 and 9s. a dramatic about-face from its previous stance of support they told cnbc they got new information just kbred the announcement was made. that tracking data was passed along by flight aware and its

partners at arion. the take-away was there are similarities between this crash and a lion air crash about five months ago >> it was further evidence that it was similar to lion air >> boeing continues to stand behind the safety of its max aircraft and says out of an abundance of caution, it's urging faa to suspend operations of its entire max fleet. 371 airplanes globally american airlines, southwest and united have given statements of support for the safety of the plane as they say especially because they know about their pilot training programs. they trust their pilot analysts see that as a sign that -- boeing's stock plummeted

3.5% on the news yesterday. they had to go to paris for that, and investigators are expecting a mother load of information there, but it could take weeks or even months to process that information yesterday fits put out a note about boeing's credit worthiness, and what it said is no problem in the near term, but if there are delays grounding these planes for months or if this is bleeding over into the production line where they have to do a major overhaul, that could affect boeing's credit worthiness for right now the consensus coming from analysts on the street is that it would take more than just grounding the planes temporarily to do long-term damage to this company. >> all right

thank you very much, contessa, for those details on the latest in boeing. joining me now is jeffrey, senior associate dean for leadership studies at the yale school of management he is also a cnbc contributor. jeffrey, thank you so much for joining us this morning. >> lerdship has done a pretty good job not perfect. something which, you know, we saw 42 countries or whatever initially ground the fleet it was pretty disturbing the company's leadership expressed remorse, and to be out there with you and with this general media leaving us and

communities, what do they know this fellow we've seen quoted, i believe his name, from aron, his data got to the "new york times" before it left the list of the companies's top leadership they could be briefing us a little bit better on this, and i know they're trying to gather the data off site, and they also are trying to take a look at the flight patterns. >> i'm sure they put the a team on this. all members have been actively talking with one another, and we could see, like mary bower o jim burke at the recall, which was nothing compared to this, and johnson & johnson. was to take a look at what they could do to make sure we have the a team investigating the source of the problem. in the military if you have a single specific type of unexplained aircraft crash, the whole series is brought down

the whole plane series is brought down for investigation. >> irts how they gone about handing it what have you seen out of that particular line of strategy that perhaps either gives you pause or a little bit of at least positivity about what's happening at the faa level >> it's really -- again, obviously our hearts go out to the families in both of these incidents. we're now looking at 250 lives lost, sadly, and we usually have a problem between a little bit of a gap between the faa that

often actually gathers the data, the national safety board that actually analyzes the data for us, and in this case those guys are working together as far as we can tell quite fluently, and we have the whousz and the president getting out ahead of them in separate course from boeing it's all these parties that need to be together on the same vektor that's within the u.s. in terms of a keyword of effect is america first and we're number one in all this i wouldn't quite use the term shattenfreud no one celebrates this horrible tragedy. the loss of credibility that we have with the faa and the national transportation safety board were not the places that people understood the black box recorders when the ethiopians were getting the data. usually we were the gold standard, and some of our trust has been lost a little bit here, and i think that's a little bit at issue right now

i think they can figure out about this software fix. if we knew about this, gosh, why didn't we get on this faster then, of course, there's the patterns that the centsors were telling us that we have the noses bobbing with automatic pilots putting the plane downward that's really disturbing >> as you were mentioning at the top of the show, it's 4,500, you know, planes out there in order. this is a pretty big darn deal >> either lost revenues or they're not hopefully going to have to address orelse in a

bigger sense. >> before it let you go, if i may, you mentioned credibility you mentioned trying to gain trust. if i could turn you away from boeing for a moment, wells fargo has been in the story quite a bit. skb skbro. >> i give boeing's leadership a b plus, ore mients i give the whole top leadership as they've come through a crisis, and thank goodness there's no loss of life. the crisis and credibility two years ago. tim sloan of ceo weltz fargo, he has only been on the job two full years and a couple of weeks, couple of months. it's a remarkable job.

the board has changed over dramatically and has -- the financial results, oh, my gosh, they have the best dps in the last 166 years since the company's founding, and i think what we saw is we've seen it in capital. some grandstanding at the expense of an easy scapegoat i thought it was appropriately harsh. they're missing the main story this guy is almost a -- tim sloan, he is not some wild back-slapping guy. he is really quietly getting the job done

every single problem, unlike before, we were surprised by regulators, and now the company has been surfacing those things, and the board has just endorsed that with a nice pay increase for him showing the heck with all this they've chosen to reward this guy, around 18 million that's great even giving him a bonus this past year, that shows how well they see he is doing on the job. it's a great story of quiet comeback >> always great to get your thoughts on that matter. we appreciate it >> well, let's now turn to another big story we're following this morning in brexit u.k. lawmakers rejecting a no deal brexit. they will decide whether or not to just delay brexit let's get to steve sedgwick live in london with those details

steve, are you there it looks look we're having problems with steve sedgwick we have -- let's before i in simon, chief strategist over at b & y melon. always great to have you here. let's talk about the developments here. >> if you look at sterling, i think pretty well every major move that you see on a daily and hourly basis has been connected in one form or another to breck it rs, whether that is extension of article 50, political uncertainty or whether the prime minister's deal with the e.u. will go through, and right now you have all three of those things in play i think that you probably certainly will see over the course of the next week is more

volatility starting to emerge, and it will not just be in sterling, but then in related markets. you will likely see it spread out. certainly noticeable in the last few days. >> what is it about the markets right now? what exactly are they expecting? do they know what exactly the outcome will be and what exactly can we expect to see in the markets given that they don't even know what they want out of brexit themselves. >> there's also people making forecasts about where this is going to be in a month's time or two month's time and how the negotiations are going the reality is that most people

are struggling to see where we're going to be in 24 hours time i think what happened on tuesday and wednesday made the point of not trying to make too broad a generalization i think the only thing you can reasonably say right now is we have a government, and we have seen rejections so far over the withdrawal deal. there was some hard liners that are starting to maybe move towards it, because you don't like the other alternatives. maybe we have a short extension. here's the key bit if we don't, and there's a possibility to the you want k. government going to the e.u. and not for a long extension, which would include u.k. with the election, and there is a

perfectly reasonable chance that the e.u. just goes, no, you can't have that. >> simon mentioned he feels that the government is fragile right now and that there is no clear path what exactly are we going to expect out of this we know that there is an e.u. summit coming up shortly we know that the u.k. wants to possibly delay the brexit. what exactly can we expect the negotiations to be like between the e.u. and the u.k. if they cannot come to some kind of an agreement before this deadline comes to pass? >> yeah. listen, simon talked for many years, and he is absolutely spot on i couldn't agree more. there are many parts of the most optimistic paths forward those who want this not to go

too far is that mb3 will be both coming to the table next week and it's a harder line brexiteers and from northern ireland. they get behind it as well if not, thens simon says, we have to go back to the europeans and say this is what we're going to do. the europeans will not give an extension if we're just going to argue for another six months in parliament here and not come up with an indicative solution to the way forward. the europeans will want something concrete on the table. they, like the british, do not want to see this dominating european affairs for the next two, three, four years as well they've got their own crisis still. they have problems still in southern europe. problems in italy.

problems with the physical group for the likes of the hungarians as well. this is one issue they don't want to go it, and they don't want the british in the european parliamentary elections in may >> simon, just a few moments here left. last word to you what is the bank of england and governor mark carney thinking about all of this ripe >> i think they are prepared to have something they know that june 2016 >> all right simon derek, steve sedgwick, thank you for the thoughts on brexit coming up next on the show, a double dose of facebook news a major outage impacting users globally plus, new reports this morning with the company facing a criminal probe for its data sharing deals. we'll break down both big headlines coming up. plus, big pharma coming up josohnn & johnson hit with another fine we have the full details coming up lease the 2019 rx 350 for $399 a month for 36 months.

now thru march 31st. experience amazing at your lexus dealer.

the communal feast. potluck. this parade of dishes will soon be yours to scrub. and they're not even... yours. new and improved dawn ultra can finish off this buffet. each drop now has even more grease-cleaning power. so you can scrub 50% less, and get done faster.

next month, their place! a drop of dawn and grease is gone. let's get you up to speed on the other top headlines. leslie picker with those over to you. >> hey, dom, we're keeping an eye on global airlines stocks this morning after the faa grounded all boeing max planes norwegian airlines is rebounding this morning after a big drop this week. the 737 max line accounts for 11% of norwegian's total fleet some estimates project that the company is losing up to $800,000 each day the jets are grounded

facebook shares are lower. the "new york times" is reporting the federal prosecutors are conducting a criminal probe into the social media jiegiant's data sharing f. they said the company is facing ongoing federal investigations and takes those probes seriously. meantime, facebook is dealing with its biggest outage in years. users globally are experiencing problems logging on to facebook, instagram, and what's app. also reported outages. they've since been fixed.

>> up next, betting on the whnk y one top strategist could lead the way higher this year. they'll make the case when the show returns after this. for your heart... your joints... or your digestion... so why wouldn't you take something for the most important part of you... your brain. with an ingredient originally discovered in jellyfish, prevagen has been shown in clinical trials to improve short-term memory. prevagen. healthier brain. better life.

>> welcome back. futures nearing their highs of the promarket sessions joining us now is julia emman l emmanuel, derivative specialist, and julian, 28 is a, we're just about below there, but we did get above it yesterday >> there's definitely some more positive psychology building, and, look, you've been talking about it all morning part of it is sort of resolving this incertainty surrounding brexit what we know now that we didn't know at the beginning of the week is that there isn't going to be an imminent hard brexit, no deal brexit, and that's got markets feeling a lot better

>> the pair docks is the fed is pulling back from hiking at the short end. it's actually likely to boost the longer end of yields, and we think actually you're going to see higher ten-year yields, but it's really sort of an all in idea >> julian, there is no inflation out there. we've been seeing all of this data that shows inflation is rather tepid what is the case for higher rates if there is no fear of real hyper growth or inflation out there? >> well, there may be no inflation in terms of the backward looking data, but the fact is that inflation expectations along with the equity markets and really, in part, they sort of fed off each other, and they have all turned higher, and if you look at washington, whether it's the fed going easier and actually probably in our view about to curtail the balance sheet roll-off or expanding the government deficit or some of the new social programs, there are reasons to expect that inflation is going to come back,

and part of part of that story is also china reflating. we think we'll be successful employ resolving brexit. >> on this from my end, just covering markets now, is that higher rates generally mean good for the banks. is it good for the banks >> the banks because of all the global growth here and, again, in particular this notion that the european financial system might be under attack because of brexit and these goings on, the banks have suffered disproportionately, and that's translated into a very flat yield curve. we think that pressure could be alleviated in the weeks and months to come that's good for banks. >> just a few moments here regional banks or money centers? >> yes and yes many n terms of pure liquidity, we say the money centers, they've been punished disproportionately, but they're both going to work if we're right in our thoughts.

>> all right julian emmanuel, thank you very much that's it for worldwide exchange this morning tus fureare higher we'll see if the 2018 levels get broken today "squawk box" is coming up next

>> good morning. the faa grounding all boeing max jets following this weekend's deadly crash we'll talk about the impact on the shares of boeing and the airlines that depend on that plane. u.k. lawmaker says rejecting a no deal brexit they'll now vote on a brexit delay. we'll take you live to london. facebook reportedly facing a criminal investigation into its data sharing deal with the smartphone makers. social media giant also facing a major global outage overnight. missed that. it's thursday, march 14th.

friday how many des men places can you do that's me too. live from new york where business never sleeps. this is "squawk box." welcome to "squawk box" here on cnbc. we are live from the nasdaq market site in times square. i'm becky quick along with joe kernan and andrew ross sorkin. let's take a look at the u.s. equity futures you're going to see that things are in the green the nasdaq indicated up by 27. this all comes after an daup i yesterday once again for the markets. that was the third day in a row that you have seen the s&p and the nasdaq higher. it was up out of three sessions yesterday. by the way, the s&p 500 closed its highest level since november