but it will grow back and heal. 10 years from now, you won't recognize this spot. come back in 10 years. ♪♪ good morning welcome to "street signs." i'm joumanna bercetche along with julianna tatelbaum. these are the headlines. a ransomware attack shuts down a major u.s. fuel pipeline a russian company may be behind the attack >> it's a top priority for the administration unfort unfortunately, these attacks are

more frequent. shares in european airline struggle after the uk admits several tourism destinations. biontech booster shares surge after the eu buys more of the vaccine with pfizer and while european leaders protest of president biden's plans to waive vaccine patents. and shares hit a 14-month high after the french lender is looking to invest the profit by focusing more on financing and advising deals good morning welcome to "street signs." we have a crammed show for you i want to take you to a story dominating the air waves over

the last 24 hours. largest fuel pipeline in america is offline after a ransomware attack on friday colonial pipeline operating a 5,000 mile system said on sunday that smaller lines had been rep o opened it connects refineries on the gulf coast to 50 million people in the southern and eastern united states. reports indicate a russia criminal group may be behind the attack on the back of that, we did see somewhat of a spike in oil and this is the picture for some of the oil companies we check closely. not major moves. if you look at bp, we are seeing a bounce of 1% let's turn to wti and see how it traded we were up 1%. we cured some of the gains, but

trading up .60% for brent and wti. the supply bottleneck had an impact on the market, but not super substantial. as for gasoline, this is the picture there. we are seeing quite the bounce up of 1.4% for gasoline today. the rehe mireminder, colon transports 45% of gas and fuel and oil. any disruption to the pipeline is having an impact on the commodities. julianna the transport department issued an emergency declaration while the pipeline remains o offline. the government was doing all it can to resume supplies >> it is an all-hands on deck effort right now we are working closely with the

company and state and local officials to, you know, make sure they get back up to normal operations >> joumanna, in terms of the impact of the pipeline coming offline, it seems to be unclear and dependent on how long the outage persists with the possibility that if the shutdown persists, we he could see shortages of fuel develop rapidly. this could hdevelop a problem with prices up and down the coast. >> the latest reports suggest that some of the smaller lines have reopened. it does seem they are working hard to get the lines back on the ground again and the u.s. passed the waiver to transport the oil via roads rather than the pipeline we are seeing a bit of reaction in the price of oil in the m majors today

juli julianna, the huge amount of overhang and inventory is a function of the pandemic and opec plus is restrictive on the production although they are boosting production back again, it is not as much as the market anticipated. you are looking at a mismatch with supply and demand with a demand shock has the potential to drive the price of oil higher while there is this restriction on the production that's coming out of opec. on the demand side, however, there is a hit coming from india as we have been talking. there are a couple of things at play here. >> absolutely. i think it is staggering when you think of how much this pipeline is responsible for it it carries 2.4 million barrels a day.

45% of the east coast supply we are talking about a huge volume with the pipeline it serves as a reminder of the threat of cyber attacks pose to national security and private companies and national security. an issue companies around the world are paying attention to and prepare for, joumanna. >> a big theme one we are watching closely. let's take you to the broader markets and spell out what is happening. of course, friday, investors were watching closely the payroll came in below expectations we expected 1 million and the estimate was 750,000 lower lots of explanations it means the fed will not be in a rush to start tapering we saw the stoxx 600 end the

week up 1.6% points. this is mixed between red and green today. the index is up .80% let's turn to individual borsa we are seeing a major bounce in some of thebasic resources this propelled by the rebound in commodities. iron and ore up 10% in the early session. on the down side, we have the travel stocks which i'll get to in a moment. dax just trading below the flat line slightly mixed you can see european index i searching for direction. let's talk about the sectors especially with oil. you see that oil is close to

0.4% one of the more positive sectors is autos doing quite well banks up 1%. banks continue to go from strength to strength a strong first quarter for banks. the index is raitrading back to pre-pandemic levels. the mining stocks also reporting well today on the down side, travel and leisure trading down the uk government announced the latest countries on the green list only 12 countries and not as many as the market was hoping. the uk government will review it coming as a disappointment to people looking to travel for the

airlines as well tech down 1% health care down .50%. now jpmorgan chase is warning markets are facing the biggest bubble in years. the investment bank is treading carefully on stocks over rich growth expectations. the global head of jpmorgan chase joins us this morning. gr great to have you with us on the show your latest piece is called the biggest bubble at present. 30 years of experience has run away from it you are seeing visible warning signs in the market. what stocks should viewers of the show be avoiding >> all right with that intro, let me say one thing. i am positive on the market. i've been all year this year i think there is still opportunity there.

the question is whether you fish for them what i'm trying to say is today in the equity market, you have two markets in one there are crazy prices and crazy and cheap stocks the expensive part of it, growth, is what i think is at a bubble the bubble is starting to burst. investors have been chasing high growth expectations. paying any price for it. that is not happening to date. >> you say it is a bubble starting to burst. i want to take you to friday's payroll numbers. people are saying that this is a reason for the fed to stay the course for the time being. not even consider talking about tapering people thought if there had been a 1 million plus number, the fed would be backed into a corner and thinking about tightening. that takes that threat of that happening off the table for the time being is it the case as long as the

fed continues to be an c accommodating factor and this trend can continue a bit longer? >> one could think so. i think we have to gain a bit of perspective here this has driven interest into highest growth and paying any price for them for years the problem is that has happened for years. today, where you are, it hit a point of the 20% of stocks in europe with the highest growth expectations and you look at the average growth and you look at the earnings growth of the stocks are delivering today and you are assumethey will be abl to grow earnings as much as they are currently doing into infinity, which is assuming a lot. if you assume that, what you realize is you have to wait ten years for that to drop below the

his historic average you are already discounting ten years of growth. that is what investors need to realize. >> cyclicals are doing well in europe european banks back to pre-pandemic levels. clearly all of that is positive for a small and midcap stocks. what should investors buy in that space >> so, this argument of expensive versus cheap you mentioned miners there are many cyclical stocks which are cheap. you look at industrials. you look at navigating the stock is bid for at 35% year

to date. if you look at financials and other cyclicals which are up 49% and taken out. that is not cyclicals. you can find a lot of stocks within cyclical names tayilored to the recovery. think of this. one in five small mid-caps today, rallying around the world need to get back 10% for pre-pandemic >> fair enough i take your appopoint. we started off the year in the valuation play in the uk market. i am curious how you see the uk with the large cap and small caps evolving in the second half of the year. the shape of the uk economy is positive again looking ahead we heard that with the bank of england. there are positive tailwinds and action how do you see this playing out?

>> you have an amazing memory. we started out with the uk that was non consensus the call is working. the best performing market in europe it was the third best last month. i think one of the reasons why we continue to like it is the key driver of growth this year is how countries go about vaccinations uk had a plan and stuck to it. overall, it is not to say anything uk goes, but look for ideas. there are stocks worth buying. a uk utility 14%. hilton food. >> when it comes to the sectors

that you see value in and do look cheap, what timeframe should investors think of getting in >> sometimes we get too caught up in the short-term and what it means for today and tomorrow i think today, perhaps than other times, it is important to look at what is important. what is important to realize we're in a world of low yield. you are not making much money in cash you are not making much of a return in mixed income many parts of the world is not making up for inflation. it is a low return world when you are sitting here looking at equity and giving you small caps and more than 3% or 4% customer yield with the stocks in the 8% and 10%, this

is value when you think about economic growth, we're going to have a year of economic growth. what is expected to be less, doesn't matter we're coming up from very low lows last year next year is a story of recovery the first quarter this year was bad. we have at least 18-to-24 months of seeing economic growth and driving margins and eps growth into double digits if you focus on things that are cheap to start with, it is hard to see making money. >> eduardo, thank you very much. global head of small and midcap of jpmorgan chase. and a return of equity by 2023 on socgen it is looking to boost profits

by focusing on financing and advising deals and reducing the risk of the global market. and traton tripled to 516 million euros. strong orders helped offset the pandemic drive for buses of the vw owned truckmaker confirmed it raised outlook for the year. coming up on "street signs." eu leaders break with president biden on waiving the covid vaccine patents. we'll bring you the latest after the break. do you have a life insurance policy you no longer need? now you can sell your policy, even a term policy, for an immediate cash payment. call coventry direct to learn more. we thought we had planned carefully for our retirement. but we quickly realized that we needed a way to supplement our income. our friends sold their policy to

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welcome back to "street signs. house prices across great britain rose to the highest level in five years. that is according to halifax boosted by the government's decision to expand the holiday the uk published the green list of countries where travelers are

exempt from self isolation por portugal, australia, and israel and new zealand. the uk transport secretary said the list will be closely monitored and could change with short notice the european union signed a new contract with pfizer biontech to receive 1.8 billion doses of the vaccine through 2023 it guarantees options for donation, resale or boosters other contracts and vaccine technologies will follow the eu internal market commissioner said the bloc had not made orders for astrazeneca

after june this after several member states have limited the vaccine amid the eu ongoing action against the drugmaker for not respecting the distribution agreement in europe european leaders are pushing back the president biden plan to waive the patents. export bans in the uk should be scrapped and patent waivers may disrupt supply chains. let's get out to aneta for the latest on the european response to president biden's plan to waive or support the waiver of protections for the vaccinations aneta, this is come along side the eu ordering more doses of the biontech pfizer vaccine.

>> exactly that is one side of the story. of course, the eu, which has been blamed for a slow rollout of the vaccination is now trying to do the utmost to have enough doses in case there will be more of a rise in the cases the eu is coming from a different angle. they are arguing it doesn't help if we had a waiver for the patent of mrna-based vaccine, which, of course, is from biontech and moderna this is not that easy to replicate the vaccine. just by waiving a patent is potentially disrupting supply chains for the ingredients for

the vector 1 and mrna-based one. that is their approach they are saying we should boost production and export more instead of trying togive the patent away for free german chancellor angela merkel is at the forefront to say it is not the way she wants to go. her primary goal is to protect intellectual property. take a listen. >> translator: i made clear i don't believe releasing patents is the solution to providing vaccines for more people rather, i believe we need the creativity and ability to innovate companies for me, patent protection is part of that it is all about the question of how we can get as many vaccines to as many people in the world in the shortest period of time for that, licenses have to be granted. what i know from german

companies, that is happening in a timely manner in huge quantities >> if you talk to a w.h.o. expert when it comes to patent waivers for vaccines, they think this is not the best way to do it most likely not cure the problem that there's too less vaccines in third world countries instead of that, increase production lines biontech is doing that now you in china and we are hearing from them this morning and they are ramping up production in singapore. these kinds of production cooperations could help. of course, this is a problem with the pricing biontech is compared to astrazeneca. they never went down with the prices it is more costly to have this kind of vaccine.

essentially, they need to find a common approach, but waiving the patent right is not the way the eu wants to go back to you. >> they are pushing hard for it. thank you, aneta sticking to germany. conservatives have fallen to an all-time low published in a poll on sunday. the christian democrats are seeing polling at 23% in the latest survey. the greens came in at 3% points ahead. over in the uk, scotland's leader has told british prime minister boris johnson another independent vote is inevitable sturgeon one the party seat. there is a pro independence majority in the scottish parliament the minister said she plans to

deliver a referendum adding the election result legitimizes a move >> will it permit a referendum it is predicated on the lack of scottish democracy they won a vote on the time that is right which is a pro majority in the scottish parliament the stquestion for the uk government is a simple one it should not be controversial do they accept democracy or not? i hope they will accept. >> the scottish conservatives head back to the push for another referendum telling cnbc voter priorities lie elsewhere. >> we are still in the middle of the covid pandemic scotland is under lockdown

uk is still under restrictions i guess when i was campaigning, why are you talking about constitutional change and all of what that brings and what referendums do they divide countries and communities and opinions and divide families. of course, you are distracting yourself from the day job. the job is getting on with a powerful parliament. coming up on "street signs." they order to beef up the climate change targets we'll discuss that next.

welcome back to "street signs. i'm julianna tatelbaum along with joumanna bercetche. these are your headlines shares in oil rise after a ransomware attack shuts down a u.s. fuel pipeline nbc news learned a russian criminal group may be behind an attack as the u.s. government

issues an emergency declaration to keep oil flowing. >> these sorts of attacks are becoming more frequent shares in european airlines struggle after several tourism d dis d destinations were left off and shares of the booster surge as european leaders protect against the plan to waive patents. and elon musk's "saturday night live" appearance takes a chunk out of dogecoin. >> what is it, man >> i can tell you, it is a cryptocurrency you can trade for conventional money >> oh, so it's a hustle? >> yeah, it's a hustle

>> why don't you say that? dogecoin >> to the moon welcome back let's talk about how european markets are faring on the board behind me. gains are spread between ftse 100 about 1% some mining stocks are performing well today. on the down side, travel stocks have reacted negatively to the green list in the eu cac down .20%. in terms of sectors, oil is being watched closely after the disruption of the colonial pipeline some gains of the morning have started to subside after parts of the pipeline reportedly

looking to resume again. not looking to be an extended disruption switching to currencies. the dollar continues to trade on the back foot. we are watching the pound closely this morning bre breaking 1.40. this is after the local and regional elections came through and a lot of focus on what would happen in scotland they have fallen one seat short of majority. investors have reacted positively to that news this morning. the dollar/yen is trading positivel positively a story of dollar weakness u.s. futures the s&p is going to open flat. dow up 70 points

nasdaq continues the recent weak performance. the weak jobs report was a surprise to the fed. they will not talk about tapering any time soon as far as the major stocks, s&p and dow took as positive and nasdaq as negative all eyes on the wednesday's cpi data we are expecting high numbers there. investors will watch closely julianna european commission president had hailed a ruling by germany's top court that forced berlin to beef up the environmental policies german constitutional courts decision that the previous targets did not go far enough and could lead other eu member

states to toughen climate goals. marcus zimmer joins us marcus, great to have you on the program. germany announced the ambitious plans to cut greenhouse gas emissions in the wake of the top court ruling what do you think of the proposals on the table now y >> thank you for having me it is a complex topic. i think to understand where it comes from, you have to understand what climate policy is and how it is working today in kwquantitative ambitions i have an example of that. you want to improve the yield that you have and you get 10,000 euro yield annually forever on that

that will be worth if you discount it 1% which is the common figure used by environmentalists, 370,000 euros today. if you use cost of capital approach, that yield would be abso absorbed the constitutional court rejects this way of thinking and basically tells us you shouldn't think discounting or discount future at all. rather, you should embrace the future generations in accounting on how you propose the climate policy this is exactly what has happened now and which has the yield over the weekend already forced actions on the court

decision and the yield increased in climate ambitions that we see in the current graph for the climate low in germany using emissions from 65% in 2030 and also moving to net zero going forward from 2050 to 2045. this is very important and also having a goal of negative emissions in 2050. this is very significant and in the lot, they have the term net greenhouse gas emissions. they get rid of net. now we focus on reducing greenhouse gas emissions and not only on the achievement of net greenhouse gas emission growth >> i just mentioned in the read,

that the european commission chief has really hailed this decision from germany's supreme court. i wonder if you think this is so important because it could set precedent for other countries to follow is this model that we have now seen emerge in germany likely to create a template for other member states? >> absolutely. i see it as a template for other court decisions as well. there is a line of argument that other ngos or other individuals can use. i not only think that von der leyen hails that line and others will follow and she hails that because others are following we see a movement to more climate ambition all over the globe right now. especially also china and the u.s. join the race to climate

neutrality the costs are expected to fall much, much quicker than we previously anticipated and it just makes sense that you increase your ambitions because the transition will be cheaper than it used to be before. >> markus, i want to ask about nuclear energy in 2000, nuclear come prised 30% clearly if they had not done this phasing out of nuclear, it would be easier for them to meet the now yorevised targets by 20 and 2045 and 2050, et cetera do you envision the german government changing the stance on nuclear in the coming years >> not at all.

this is something that would happen we see the revival of nuclear in many countries also, we see a lot of new technology developments that make it safer and more applicable and cheaper as well there is any composition of the government that we will see in the next years which will be against nuclear. this is because of the german population is largely against it it is not popular here this is different in different european countries i think this is a big issue for the commission to find consensus on nuclear energy. >> very clear there. markus, thank you for joining us markus zimmer. also coming up on the show,

elon musk calls dogecoin a hustle but the market takes him seriously. we'll discuss that in just a few moments.

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what is it, man? >> i keep telling you. it is a cryptocurrency you can trade for conventional money >> oh, so it's a hustle? >> yeah, it's a hustle >> why didn't you say that >> to the moon. >> after a record high on friday, the price of cryptocurrency dogecoin took a nose dive over the weekend following elon musk's "saturday night live" appearance here to explain is mckenzie. >> reporter: it was a rough weekend for dogecoin it looks like elon musk was the one driving the price action now, musk, who calls himself the dogefather he recently has been talking

about the cryptocurrency as the popularity soared along with the price. before the weekend began, dogecoin rallied 26,000%. when he made his snl debut, they expected the price to go higher. the sketch on cryptocurrency would go viral for days and further motivate the army of followers to drive up the price of dogecoin. an hour after the show started and the hyped cryptocurrency actually fell nearly 30% dropping to 49 cents at one point. elon musk mentioned doge a few times on the show. in the opening monologue and on "weekend update. in the clip you heard, the last thing musk said was to the moon. it is a catch phrase among doge enthusiasts to drive the cryptocurrency to $1 that didn't happen dogecoin gained back since saturday night it is trading at 54 cents.

it is still up more than 11,000% since the start of the year. this past weekend aside, musk has played a major role in that rise when he announced his snl appearance, the coin shot up 30%. dogecoin started as a joke in 2013 thanks to endorsements by elon musks and other celebrities like mark cuban and snoop dogg, we have seen interest in retail traders not wanting to miss out. this is snowballing into mainstream mark cuban is taking it in exchange for tickets and merchandise. the oakland a's are taking it as well the cryptocurrency exchange founded by tyler and cameron winklevoss bought into it last week this are betting on the

cryptocurrency sitting idle in their wallets. back to you. >> thank you for joining us this morning. >> fascinating to see how the price of dogecoin has sky rocketed this year up 11,000% points. let's bring in the professor from university of sussex business school. thanks for joining us, carol i want to ask about dogecoin everybody said it started as a joke the original creators have left. the code has not been updated in years. it is an empty vessel. there is not much going with the coding people love it it is endorsed by these very high profile celebrities how does the crypto world view the appearance of a coin that started off as a joke? >> there is a growing community of people interested in a co-branding. it started with the long island

tea company that put block chain in the name and share price went up 20% at the moment, you see musk doing it with dogecoin i call it doggycoin actually he said he will accept it for spacex branding next year. if you look at memepap.io and you will see coins produced by people using them for co-branding. that is what dogecoin is sorry, one more thing. the block chain and coin are different things dogecoin has become separated from its old fashion block chain. >> to your point, there are loads of points merging. a year ago, i would say the bitcoin enthusiasts say there could only be one cryptocurrency

to succeed if you look at ethereum to bitcoin this year, it shows other cryptocurrencies are gaining in favor as people see it widely used for other cryptocurrencies out there how do you see this space evolving do you think we can end up in an ecosystem where the cryptocurrencies can exist along side traditional >> if it is ethereum stock stopped, it would have an impact on business especially on bank-to-bank transfers it would stop. these are actually platforms for block chains that's one flavor of

cryptocurrencies there are exchanges that are massive. they are unregulated, unfortunately. there are lots of exchanges which have their own coins then the meme coins which i spoke about. tokens or nfts all of these things have value there is bitcoin it would start out as a joke bitcoin is a block chain the block chain, you can put layers on it, of course, but the proof will work. >> professor, you talk about the origin of dogecoin and how you call it doggycoin.

it started as a joke if enough of a community forms around it, could it turn it into something valuable or is that thinking not applicable? >> that is exactly what happened to bitcoin u.s. institutions are seeing it as a diversified since june of last year. the pressure on bitcoin. demand and supply has been growing. if you look at these unregulated exchange, you can see behind the scenes it is that moment in june of 2020 where u.s. banks were custodians and it took off not long after in november, it was down to 10 or $3,000 for quite a while. now we have the fourth bubble. i do see it with bitcoin i see it as a bubble there is no fundamental value. most of them have absolutely essential fundamental value. they are here to stay

definitely. >> i know the arguments on both sides of the bitcoin debate are very passionate. i guess my question to you is around the core community around bitcoin. do you think it is fair to categorize the main bitcoin as anti-establishment or does that description no longer hold given we have seen institutional money put to work in bitcoin >> i think the rebels need to find another coin. bitcoin is old hat if you want to talk to people about bitcoin, you know, everybody heard about it dogecoin was interesting because a lot of people hadn't the space of defy and what is happening in what we call decentralized exchange and the yield is amazing compared with what you get on the junk boards. a lot of interest from people

that really understand what's going on the problem with musk is in the interviews, he actually revealed he doesn't know the first thing about cryptocurrency that is the reason why on a gray scale it took a fall hours before the program that would trigger a lot of stock prices musk trumps it up again with spacex branding. i think dogecoin has had its day for the rebels it may continue for the retail people who don't understand it, think it is cool it is the most famous meme coin. the real rebels are going after the defy in particular we don't need banks anymore. >> can i ask your take on the price action we have seen on coinbase since cryptocurrency la launched we are trading close to 2.50 what do you think is going on there? there is one school of thought

that the fact they don't offer trading in dogecoin is one reason the smaller anti-establishment retail traders are avoiding the exchange perhaps more profound reasons? >> i don't think it is dogecoin. gemini doesn't have a lot of volume trying to boost volume it is still top volume on the crypto compare on coinbase, first of all, any direct sale will have a lot of volatility the main institutions will stay away until it has settled down nasdaq has not done particularly well maybe giving each employee 1,000 shares each was a little bit of an overhand. all employees got shares maybe they wanted to cash in quickly. i think we have to wait and

settle down and in time when larger institutions want to buy in and it will give them general exposure >> professor, we leave it there. thank you for sharing your thoughts carol alexander at the university of sussex business school a quick look at futures. it is not all about elon musk. dow opening 70 points higher s&p at flatline. that is it for "street signs." i'm joumanna bercetche along with julianna tatelbaum. "worldwide exchange" is coming up in just a few moments

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it is 5:00 a.m. at colonial pipeline heads in alphretta, g georgia. oil and gas shutdown we have the latest on the cyber attack and what it means for oi and gas. dow and s&p kicking off a new week at record highs and investors shrugging off the jobs miss. the dogecoin died. the red hot crypto shedding