we all have metaphorical scars. i have a physical scar. but you don't have to live with that. you don't have to live with keith raniere haunting you. you can reclaim your life. you can -- you can learn from it, and you can move on. ♪♪ good morning, everybody. we will come to "street signs. i'm julianna tatelbaum with joumanna bercetche and thesis are your headlines european equities open in the red and u.s. futures trade lower as investors cautiously eye rising bond yields with the u.s. ten-year yield hitting highs not seen since this time last year boeing shares slip in frankfurt trade amid safety concerns as the u.s. plane maker

grounds some 777 aircraft after major engine failure forces a united plane to make an emergency landing. auto stocks drag on european equities continental slumps after scrapping its dividend with porsche ceo oliver blume telling cnbc the daily chip level is a struggle. >> it's a daily business, and we -- our calibration of our production, we have to reflect and look for measures on the long term. and bitcoin's bull run intensifies with the cryptocurrency hitting a market valuation over $1 trillion, despite elon musk taking to twitter saying, quote, the asset seems high

a very warm welcome to "street signs," everybody. happy monday to you. i want to kick off the show with some fresh data out of germany these are the ifo numbers for february they come in better than the market was expecting let me break it down for you the current conditions index has come in at 90.6 in february versus consensus forecast of 89 flat coming in at 94.2 versus consensus forecast of 91.8 looking back at the january numbers, we also have a couple of revisions the expectations index was revised to 91.5 and the business climate index revised to 90.3. so, a little bit better than the market had been expecting, and coming off what we heard last week in terms of flash pmis in germany, continued resiliency in the manufacturing sector, but as

you would expect, difficulty in services >> i think the major surprise here is that the current index is still so strong i mean, most people had anticipated on a forward-looking basis the ifo ahead number would be high relative to the current business indicator but the current business climate index has actually been holding up not just for this month, but also the previous month, got revised up as well so, that's really quite an interesting observation, especially given the extent of the restrictions we see in germany now. but, perhaps, it's just an expression of the optimism given that the vaccine rollout has started, albeit at a snail's pace in germany. but they are saying, there is light at the end of the item the thing we have been talking about a lot is germany's exposure to china. that's one reason the manufacturing sector has held up, and probably one of the

reasons the ifo numbers continue to be supported as well. this will definitely come as a relief to the markets, especially in light of those pmi numbers we got on friday as well. >> really interesting to see german business seems to be looking through the supply chain disruptions they're experiencing we're going to talk more about some of those disruptions later in the show. for now, let's get a check of how european markets are faring. the stoxx 600 opening pretty weak this morning. down over 1% already the big story, the big narrative that has been taking shape over the last few days has been what the impact of rising yields may be for equities. we did see a pullback last week in some of those growth stocks, underperformance in u.s. technology and this morning we're also seeing some pullback in the european tech sector. we'll get onto the sectors in a minute let's first look at the markets and what the regional split looks like fairly evenly spread losses across the board dax down 1% along the spanish

market in the uk, the ftse 100 down by 0.8. we're looking forward to uk prime minister boris johnson publishing the road map out of lockdown later today the swiss index down 0.7% and the italian market down by 0.9%. broad bases coming through for european equities. sectors, let's look at the breakdown. red for the majority of sectors, all but travel and lease e sure which is rebounding. technology clearly underperforming, down more than 2% i mentioned the underperformance in technology last week in the u.s. we had the nasdaq dropping about 1.6% versus fairly stable moves for the s&p 500 and the dow. so, a similar trade here in europe this morning. one part of the european market that has been outperforming year-to-date, the small cap index.

this morning we have stoxx europe markets down 1% taking a bit of a hit as well. as you can see for the majority of the year, the european small cap index has been performing quite well i want to bring in eduardo, global head of small and mid-cap strategy at jpmorgan great to have you on the program. just looking through the opening moves this morning, it looks as though european investors are somewhat rattled by the rise in yields that we've seen in the u.s. what does this mean for european small caps, in your view what is the pain threshold for yields when you think about it from an equity market perspective? >> right well, today's a day of moving the stock market it comes after three months of nothing but up you've seen the small cap index up 30% since november. so, nothing's going to go up on a straight line. you're going to have, you know, a down day here and there. perhaps this is the beginning of

a bit of a consolidation to be healthy. when you think about what it means to have higher interest rates, i think it means nothing but positive news for small and mid-caps number one, you're looking at fixing income yields today, not really making up for inflation today. if inflation goes up and interest rates go higher, i think there will be a wall of money from fixed income to equities when interest rates -- >> so, how should we think about how to interpret data moving forward? could we soon get into a situation where good news is actually bad news given, you know, vaccination rollouts are gathering pace, but the better things are the more inclined fiscal and monetary authorities are to begin to think about dialing back stimulus? >> well, i think it's more of a

fascinating time to be an investor here. there are tremendous opportunities out there. all have you to do to find them is really take a step back and think from the top down, right so, we're in a world where fixed income and real estate is not giving you much of a yield the first two assets, they don't even have yield for inflation. you go to equities, it looks like equities are all-time multiples as well but the catch is the equity market is two markets in one today they're very pricey stocks out there that you should worry about. then they're very, very cheap things that in a world of, perhaps, not good news, in general, is really where the money should continue to go. i'm talking about in european, you have 20% of the stocks still down more than 30% from pre-covid highs. you have 20% of the stocks still trading below book if you go to emerging markets, you have -- the average is less

than 15 times. there's a lot of stocks out there that are just plain old cheap. in a world where you can't get much return from any asset classes. >>. >> you talk about m&a activity being positive, especially for value stocks i want to ask you about your thoughts on the rise of spacs and whether it could be a hindrance in the thought that money and dry powder will go into companies rather than companies that are being traded and are public -- are already public does the spac hinder or help the case for investing in some of these small caps >> so, that's a very good question look, spacs like ipos is supply, right? and so the more supply you have, everything else being equal, the more options money has to go

into them. butt but at the end of the day when you put money on the table, this is a drop in the bucket we're looking at 16,000 small midcaps in the world today and you have to look at the market cap compared to whatever we get from ipos or whatever we get from spacs i don't think that will derail the case m&a, every year is a tailwind for small midcap mainly because more than 95% of m&a money is some company buying a small midcap company and i think we're seeing the impact of that kind of activity. two weeks ago we had a stock in my portfolio that was global today we have another one, aspm, up 80% on the day. >> you also talk about the underperformance of periphery of small and midcap names in your space. do you think that that might change with, say, draghi as

prime minister in italy? >> i don't think so. being spanish it can hurt me to say this, but i don't think so i think you're looking at europe with a mix of countries, some of which are doing some things better than others and i think the last 13 years are very telling so, if you look at the world of small and midcaps in spain, for example, the average stock has fallen 30% in value in the stock market if you look at the best performance mid-company in europe where the average stock, about 250 of them, has gone up five times so periphery has been lagging and it's been because about of a lot of, i think, some political decisions and where the focus is if you pick up any newspaper in spain today, i don't think you'd

see any news unless in the periphery we get our act together and we start thinking about the real issues, i do think you're going to have a world of leaders and followers. >> eduardo, just sticking with the regional split here and the opportunities that you see, how does the uk stack up from a small midcap perspective >> very good question. i think consensus view, it's still down in the uk with brexit, we don't know what it means and it could put a drag on the economy one of the points we make in our research, we would underweight just like the u.s. there's a key driver that is going to matter more for domestic economies more than anything else and that's the plan of vaccination for each country and how well they execute it when you think about those terms, the uk and u.s. are showing they have done their

homework, they have a plan, they're sticking to it and the result is in the uk you now have 28 doses per 100 in the u.s. you have 18.5. when you go to -- so i think there is something to say about how the uk and the u.s. are going about vaccinations they seem to be finding their way to put covid in check. when you look at how much they've planned it, the daily cases, the daily deaths have chaempked year to date is significant. i think those economies are going to recover, perhaps, faster than others in the world. >> makes a lot of sense. it's something we've been following very closely on the show we're going to leave it there. thank you for your thoughts today on the show. eduardo, global head ofsmall and midcap equity strategy at jpmorgan we touched on this briefly in our discussion with eduardo, but i want to take a closer look at what's been happening with

yields because the moves have been quite substantial over the last couple of weeks today is no exception. let's start with the u.s. treasury curve you can see ten-year notes are almost getting back to 140 up about three basis points. the five-year about 2.5 basis points higher. the front end, not much movement this tells you the higher yield trade is being expressed as a steepening of the yield curve as people into into the refragsary dynamic and working on the assumption that the feds will not be in a rush at any time to start hiking rates that pins the front end of the u.s. yield curve and allows the back end to move higher. as for european yields, again, the selloff is beginning to intensify there as well. when i say selloff, i mean higher yields. we have the ten-year bund trading around minus 30, around 1.7 basis points higher.

even peripheries are coming under some selling pressure. ten-year bpps, we've been watching closely with the draghi effect on italian assets up at 64 basis points now. also up about 2 basis points very key to emphasize ten-year italian bund yields are moving the same magnitude as the german bund there hasn't been a credit spread widening. simply a higher move the reflationary trade we're seeing in the u.s. is having sp spillover effects in the u.s. as well. new york fed john williams tells cnbc he's not concerned about valuations he says it's signs the economy is on the recovery path and the fed is likely to remain accommodative. >> i see the treasury market responding to some good news on

vaccination and progress there and maybe reduce downside risk there. and news around additional fiscal support we should accelerate getting back to full, maximum employment to my mind we're seeing signs of rising inflation expectations back to levels that i think are consistent, closer to consistent with our 2% long-run goal and signs of somewhat higher real yields off in the future reflecting greater optimism in the economy. coming up on show, the chips are down for the carmaker. we'll hear from porsche ceo oliver blume about supply chain issues after the break

welcome back to the practical. the travel and leisure sector is outperforming this morning within that basket of stocks, iag is rallying. the company has raised its total liquidity by 2.4 billion pounds through a large loan and an agreement to defer pension deficit contribution payments. the british airways owner, which has seen its finances squeezed by the pandemic added, it is also exploring other plans to

increase its cash pile shares are up nearly 2% this morning. continental has scrapped plans to -- the german car parts maker will reveal full results shares are taking a hit down 2.3% vw is weighing whether to sell off bugatti rumors have been floating but resurfaced after porsche ceo oliver blume told german media over the weekend the brands would make a good fit. speaking of porsche ceo oliver blume has told cnbc the auto industry needs to see sweeping overhaul in chip supply if carmakers are to make the transition to evs.

let's get out to annette who spoke with mr. blume this isn't the first carmaker talking about the need to change the model and move away from the justice-in-time model. what else did he have to say on that front >> yeah, exactly the chip is key to all carmakers in germany and everywhere. demand research is so strong for cars in the second half of last year there's a lot of concern that the chip supply will weigh on their production possibilities, which is pretty much the case for every carmaker here on the ground, including porsche. but when it comes to porsche, of course those speculations that the parent company, voelgs volkswagen could list parts of

the business is actually key now for the market as well it's a clever idea from a corporate finance perspective to raise the brand value of porsche. some analysts are saying that could be valued up to 100 billion euro the company itself, which would make it more valuable than volkswagen i guess that was the main reason we had to ask him if there were any plans in the making and what he could tell us about that. take a listen. >> a lot of potential in the last days. that comes from porsche, from the technology story, which is behind porsche but we didn't follow speculation. at the end, the responsibility of volkswagen who owns 100% of porsche, porsche is a top

carmaker today. >> we'll circle back to the supply chain issues with the chip shortage. it does jump out there's a greater usage of chips in electrified and newer vehicles, which means that this just-in-time supply chain model that's been used may not be appropriate for vehicles of the future do you think a complete overhaul of that thinking, that industry holding these chips is too expensive, and it's essential that so many chips are going to go into vehicles >> yeah, that's very important for the future to think about the supply chain, which suppliers do we have, how they are connected, and the capacity topic is very important. what demand do we have on consumer electronics and automotive, for example. at the end we have to think about what storage do we need really for all these stocks.

we have to be more flexible and we have to plan more deeply the immediate capacities >> so, despite the shortage, though, porsche has said they have started very well into the new year and they are thinking that demand for their product will be very strong also during the course of 2021 at the same time, though, he has announced an acceleration of the cost-cutting program they have in place, which would kind of fit into the story that there are some sort of ipo or listing in the making. clearly, their key concern is profitability and keeping up that profitability, despite all the investment needed when it comes to their electrification for that, back to you. >> thank you if you want to read more on the

chip shortage as well as the impact of porsche, check out cnbc.com hsbc is reportedly set to announce measures accelerating its, quote, pivot to asia despite intensifying political pressure in hong kong. europe's largest bank will relocate more top executives to the chinese territories while expanding in singapore and india. the lender will announce withdrawal from u.s. retail banking as part of its strategy and earnings update tomorrow, according to the financial times. still ahead on "street signs," uk prime minister boris johnson is set to unveil his road map out of lockdown we'll get comments from ed davey, leader of the liberal democrats next

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always free. welcome back to "street signs. i'm joumanna bercetche wit julianna tatelbaum these are your headlines the stoxx 600 hits a ten-day low and u.s. futures slip as investors cautiously eye rising bond yields with the u.s. ten-year yields hitting highs

not seen since this time last year german business morale beats expectations with the ifo climate index hitting its highest level since october. boeing shares slip in frankfurt trade amid safety concerns as the u.s. planemaker grounds some 777 aircraft after major engine failure forces a united plane to make an emergency landing. auto stocks drag on european equity continental slumps after scrapping its dividend while porsche ceo oliver blume tells cnbc the chip shortage is a daily struggle. >> we have no capacity on semiconductors, so it's a daily business, and our calibration of our production, we have to re -- we have to look formers in the

long term. let's get a check on european markets, how we're trading an hour and a half into the first session of the week. red across the board european investors seem to be taking money off the table this morning as they digest and assess what the impact of rising yields may be for equities and whether that is enough to trigger a pullback, a profit-taking in some of the growth stocks that have performed so well over the last year or so in favor of some of the more cyclical reflationary sectors. we are seeing investors take money off in a broad based fashion this morning the dashgs down 0.9% the ftse 100 down 0.9% as well similar moves for the italian and spanish markets. here in the uk, investors also anxiously awaiting boris johnson later on today due to unveil the road map his government sees as

the way out of the pandemic in terms of easing restrictions as a vaccine rollout kicks into high gear. that will be a focal point for uk investors let's see how currencies are faring early on we had a broad theme of dollar strength. that theme has dissipated somewhat in the last moments we have the sterling now basically flat versus the dollar at the end of last week we crossed the 140 threshold. some significant strength in sterling recently. in terms of the euro, rear trading on the back foot in terms of the dollar but it has reclaimed some ground this morning, trading around 121.07 u.s. futures, let's take a look at wall street red on the board there the dow is set to open 200 points lower if these levels hold the nasdaq looking at a pretty significant dip at the start, about 170 points lower last week we saw underperformance in the tech-heavy index falling 1.6% while the dow and s&p were

little changed on the week let's turn to some covid news that 500,000 people have died from the coronavirus in the united states according to an nbc news tally that means that more than a fit of all deaths worldwide have happened in america. president biden will hold a vigil and moment of silence along with vice president kamala harris later today schools across england are expected to reopen on march 8th as the british government moves to ease lockdown restrictions. rules are set to be removed in phases but only after meeting four key conditions. underpinned by the continued vaccine rollout. prime minister boris johnson will outline his plans to lawmakers today before addressing the nation this evening. matt hancock said the country must be careful amid the relaxation of measures. >> all of us understandably want to get back to normal.

but it is right to be cautious it's incredibly important. there is still almost 20,000 people in hospital with covid right now. almost 20,000. and the vaccination program, while it's clearly going very well, will take time to be able to reach all people who have significant vulnerability, especially because we also need to get the second jab to everybody. >> i'm really happy to say joining us now is ed davey, the leader of the liberal democrat party. thank you for taking the time to join us on "street signs." there's plenty to discuss. of course, we will turn to all-important subject of the reopening of the uk economy. but before that, i would like to sort of start out with an overarching question about the liberal democratic party itself. the reason i ask this is because

they have traditionally been the anti-brexit party, the pro-european party, but now brexit has happened. i wonder how you're going to alter your message to reflect this new reality but at the same time, stay true to your constituents >> we always remain pro-european we think in the long term britain's interests, our business, our commercial interests are better served by being a member of the european union. you're right, we have to take the situation as we find it. when you focus on the trade deal borison has agreed when we've looked at that, when we have spoken to businesses, small and large about that trade deal, many of them tell us it's a very bad trade deal. it's a botched trade deal. and we're seeing the damage already. we're seeing businesses unable to export because this is the first trade deal, more

expensive, more delayed, more bureaucratic boris johnson hasn't been the free trader. he's been actually anti-trade. so liberal democrats as a party that believes in free trade, in businesses and business enterprise wants to back small business and the self-employed who are trying to get on with life, trying to build those jobs of the future. we will remain pro identify european we'll show this deal has to be improved in many, many practical ways, which would help trade and help business. >> talk about being pro-business, do you think the government has done enough to help small businesses and have they done enough with the furlough scheme? >> not at all. the goth has forgotten small business, as far as we can see yes, there has been some benefits but there's been about 3 million small businesses, microbusinesses, self-employed, who receive no help whatsoever

and liberal democrats don't believe we can see the strong recovery with lots of jobs created unless we're supporting small business and the self-employed. if you look over the last 30ers yao of economic history, it's been the small business sector, the microbusiness sector that created the vast amount of jobs, yet the government hasn't supported a sector anywhere near enough during the pandemic so, what liberal democrats are saying as we approached budget we're expecting in the united kingdom next week, but it needs to be a small business focused budget to make sure the recovery is sustainable, is green, is attacking climate change and also creating those jobs like getting behind the small businesses that are so crucial every village, town and city in our country. >> sir, the prime minister is set to publish the government's road map to reopening later today. and within that it's widely expected he will announce schools will reopen on march 8th

and then it will be a long road with four criteria reopening the rest of the government what do you think of their reopening policy >> first, schools, it's right schools should be prioritized above the rest of the economy because we have to put the health and welfare of our young people first they're our future without supporting them first, i don't think we can unlock the economy and society. i'm slightly worried there are hints that all schools were open all together at the same time. that might be unwise liberal democrats have been arguing for a phased reopening so we can take a caution approach to reopening. if it's schools or the wider economy, the worst thing that could happen is there might be another lockdown because there's -- because the reopening happens too fast i think caution is essential if we're going to get that

confidence coming back, it's going to be so essential to people's lives and businesses in the future, we can't go back again. i think if there was a fourth lockdown because the prime minister gets it wrong again, then that would be a sddisaster for our schools and businesses liberal democrats say, yes, everybody wants to get the economy back, but let's do it in a way that prevents and avoids a fourth lockdown, which would be truly damaging. >> the uk has received a lot of praise for its vaccination rollout, which is considered to be a pretty successful do you think the government deserves credit for the success of the vaccination rollout >> well, you're right, the vaccination program in the uk has been a big success let's hope it continues to be so and there's a lot of people that deserve credit i think the natural health service has come into its own because actually it's been run by the gps at the local level

and the gps know their communities, and they've done a fantastic job and we've seen the scientists, we've seen the local counsels, we've seen volunteers, we've seen so many people across our society get engaged. of course, i think government and parties across parliament has had success by getting behind this vaccination program, but the real champions, the real heroes are those gps, those local authorities, those local voss who have delivered very good program and have i to be frank with you, the vaccination program has been a success. we're very proud of that in the united kingdom but the way we've handled the pandemic, particularly boris johnson and his government, that's not been so good. we've got one of the worst death rates in the world, i'm sorry to tell you and a number of very poor decisions have been made by boris johnson and his ministers, which have led to one of the

worst outcomes in terms of the numbers of people who have died by head of population. and i've called for an independent public inquiry liberal democrats are the ones championing the case i've talked to the bereaved families, i've talked to people who have lost their businesses and they're saying, this didn't have to be so bad. we didn't have to have so many deaths our growth didn't have to be hit so badly because the government could have done better, could have followed other governments around the world who handled the pandemic much better >>le stats are pretty stark. i want to turn to the government's response to what happened last year and particularly the economic response and the sheer amount of support that was handed out. it looks as though, if we keep checking these numbers, the government deficit numbers will tally around 17% of gdp. we know debt is now larger as a percentage of the economy than

the economy size so, debt to gdp ratio is above 100% is this a price worth paying or do you worry about the state of the british public finances in the future >> well, it's certainly a price worth paying if we keep people in jobs and keep society going it would have been devastating if we ended up in a down cycle and we've seen employments -- it's bad enough it is, but even more closing would have been a disaster so liberal democrats always argued and, indeed, think the government should have done more to support businesses at this very difficult time. the national debt is an issue. yes, of course it is no responsible politician could look at that and say it isn't an issue. the question, though, is do we think there needs to be rapid action to deal with it or can we deal with it over time my response is, this is

something we can deep with over time the best way to deal with it is so get back to growth strategies if we can get that green growth, particularly that green sustainable growth and move our economy particularly to a green economic recovery that can deal with climate change as well as the jobs problem, then i think that debt problem will over time just maelt way we've seen that in the history of the uk and other countries in the past when they've had good, strong, sustainable growth, then the debt hasn't worried them as long as we get those growth policies and liberal democrats have got some ambitious growth plans, particularly small business and grown industries for the future, then i think we shouldn't worry about the debt too much >> sir, thank you for taking the time to join us on "street signs" this morning. really appreciate it ed davey, mp and leader of the liberal democrat party. two doses of the pfizer b

vaccine is 98.9% effective in preventing hospitalizations and death. the findings have not yet been peer-reviewed. turning to the u.s., president biden has declared a major disaster in texas after severe winter weather hit the lone star state. nbc's dan scheneman filed this report. >> reporter: hundreds of thousands of texans need help. >> it's still been like crazy. no power, no water, it's been a lot. >> reporter: boil water notices are in place in many parts of the state. residents in houston lined up for help from a local food bank. >> we're doing water and various foods, so two things we're trying to accomplish are the people, because of the boil notice, they need water, and also for the families, the economic impact where they lost food in their freezer or refrigerator. >> reporter: crews are working on broken water lines. the demand for plumbers is high. >> we go in -- it's like triage. go in, fix it, go to the next

one. >> reporter: other texans are dealing with a financial crisis because many energy bills have skyrocketed due to inc. chas in the market the governor essentially placing all bills on hold. >> texans who have suffered through days of freezing cold without power should not be subjected to skyrocketing energy bills due to an -- due to a spike in the energy market >> reporter: the winter weather is over fo for now its impact is not. dan scheneman, nbc news. also coming up on the show, bitcoin's market cap breaks through $1 trillion, but one of its biggest cheerleaders wishes a warning. more after the break

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welcome back to "street signs," everybody. we are getting some personnel announcements out of hsbc. this follows up a report earlier suggesting the bank is going to be launching this pivot to ageist strategy. their earnings come out

tomorrow under the current ceo, there has been significant turnover and change in management structure let me just bring you the latest announcements we've got in the last couple minutes or so. hsbc has named collin bell appointed as the ceo of hsbc europe, and michael roberts will be appointed as the ceo of u.s. and americas worth pointing out that the ceo of wealth and personal banking is one of the three executives who will be moving to work out of hong kong in is followed on from a report yesterday suggesting three key executives in europe will be making that switch to start working out of hong kong and, perhaps, a little more focus on singapore. those three revenues alone account for 95% of hsbc's revenue. it is, indeed, a very big pivot and a strong statement out of hsbc a lot more when we hear from their numbers that come out

overnight tonight. the ft had been covering the story, and one line jumped out, a quote that i think is worth sharing from an hsbc executive that the job for the chairman at hsbc right now, 80% politics and 90% business the dhi niece have the potential to destroy them. this is a line that one of the executives has given to the ft just showcases how difficult this is for hsbc at the moment, given all that's happened in hong kong over the last year or so and the decision they're making now to pivot more of their focus to asia. pushing on, one corporate story that is firmly in focus right now, boeing has suspended operations of more than 100 of its 777 aircrafts. this comes after an engine on a united airlines flight caught fire and fell apart. scattering debrisin a colorado neighborhood over the weekend. the plane was forced to make an emergency landing at denver airport. no one was injured

the federal aviation has called for extra inspections of the 777 model. nbc's tom costello has taken a closer look at the damage. >> reporter: the video from purportedly from on board the flight, terrifying while on the ground, shrapnel and what appears to be the engine cowling in the front yard of a home in the denver suburb of broomfield. nearby, more chunks and pieces littering a soccer field it was just after 1:00 p.m. mountain time when the pilot on the 777 flying from denver to honolulu with 241 people on board declared an emergency. >> mayday, mayday, united air 28 328 heavy. mayday, mayday aircraft. denver departure united 328 heavy mayday, aircraft just experienced engine failure. >> witnesses heard a log loud

bang then saw a puff of smoke as debris started falling from the sky. >> we heard the boom, looked up and saw stuff raining down from the sky. we took shelter. >> reporter: united says the plane experienced a rare, uncontained engine failure where the engine fails and explodes rather than containing the failure. despite widespread debris, no one on the ground was hit. >> a remarkably, we have had no injuries reported yet. considering how nice the weather is today compared to last weekend, the amount of debris and how far it stretches, the dog park is right here, obviously the turf field behind me and we have had no reports of any injuries. >> reporter: the incident drawing parallels to an uncontained engine failure three years ago on a southwest airlines flight that made an emergency landing in philadelphia one passenger was killed when the shrapnel punctured her window, pulling her from her fleet. today the plane landed safely at denver international pete buttigieg. >> i know the ntsb is already

mobilizing so an independent agency can provide information as they piece together what has happened >> that was nbc's tom costello reporting. the european aviation regulator has weighed in saying it is requesting information on the cause of the jet engine failure that forced boeing to ground its aircraft. they will decide on what action needs to be taken after the review we have a read on how boeing is poised to open down 3.6% in premarket trade united airlines up about 0.4% in premarket trade. there's a look at the frankfurt listing. boeing reached its all-time high ever in march 2019. that was just before the grounding of the boeing 777 max -- 737 max plane after the

two fatal incidents. since then, the stock obviously plunged a lot during the pandemic and has recovered, but still it's got a long way to go to get back to that march 2019 level. news like this certainly does not help the airline constructor. let's switch on and take a look at another hot topic that has been really taking up all the air waves. bitcoin has once again hit fresh highs, taking its market capitalization to over $1 trillion the cryptocurrency has gained popularity as $1.5 billion investment in it elon musk struck an unusually cautious note tweeting prices of bitcoin and rival ethereum seem high tesla may have already made $1 billion in profits on its bitcoin investment one analyst estimates. head to cnbc.com to read more on the electric carmakers big

crypto bet one thing i want to add on that theoretical profit tesla have made they can't actually book it as a proper profit on their books unless they actually realize that gain. they would have to take profit on their bitcoin holdings in order for it to actually count on their total profit numbers for the year i think that'sa very important accounting note worth mentioning still, it's astonishing how much they have already gained in value since placing that initial bet when it became public a couple weeks ago of course, they did place it at the beginning of of the year it does tell you how medioric the rise of bitcoin has been some of the memes, the bitcoin investors had lasers coming out of their eyes. many are saying, well, if we wish it and give it the power,

then maybe bitcoin can get to $100,000 obviously, it's tongue in cheek. it does tell you that community is extremely mobilized, getting a lot more vocal in light of some of the moves we have seen especially given, as we've been talking about, more institutional clients are wading into the space it's not just tesla because duitch bank considering custodian services for cryptocurrencies that is helping to build an ecosystem and infrastructure around bitcoin it remains to be seen what would happen to bitcoin if we were to test and see a bear market, which has not happened yet for stocks. >> it was on the laser eye, i have to say, i didn't know exactly what they were all about initially. but it was pretty amazing to see pretty much every influential voice in the community getting involved one statistic i came across this morning from daniel ives from

wedbush, tesla is on a trajectory to make more from its bitcoin investments than profits from selling its ev cars in all of 2020. yes, bit skoin a bit of a side show for tesla, but putting those numbers into context, it's pretty astonishing what that reflects about tesla as a carmaker. let's get a check on u.s. futures and how wall street is poised to open up the week we have red across the board dow jones set to open 200 points lower. the tech-heavy nasdaq pointing to a weaker start, about 170 points lower the s&p 500 looking to open about 30 points lower. that's it for "street signs. i'm joumanna bercetche and julianna tatelbaum thanks for watching. "worldwide exchange" is coming your way next.

it is 5:00 a.m. on cnbc and here is your top five at 5:00 -- losing streak. could it be five down days in a row for the s&p 500? boeing in the spotlight again. it wants to ground some 777s after one suffers a dramatic engine failure and drops parts over a colorado neighborhood. the biden administration signing off on emergency resources for texas. power still out for thousands of home the failout and bl