i really hope so. [theme music] good morning welcome to "street signs." i'm julianna tatelbaum and these are your headlines europe's banking pace is on a decline as they question the bond portfolio following the selloff in the silicon valley bank. contagion fears ripple with all of the majors deeply in the red echoing heavy losses. wall street eyes another day

of losses with investors on edge ahead of the non-farm payroll print forecasting a gain of 225,000. and china's xi jinping begins historic third term as president with the shanghai executive expected to be named premier this weekend good morning warm welcome to "street signs. let's get to the heart of the market action. that is the european banks we're seeing a steep recesellofl on the big news of the silicon valley news. the tech bank sparking fears over the risk beneath the surface for lenders across the globe. the banks in europe down 4.5% overall. in terms of the action

stateside, you have a look at svb financial. the silicon valley bank. this is frankfurt trade down 16%. we saw a massive selloff in the bank what is more worrying is the selloff we saw across wall street banks wall street's four biggest lenders lost $50 billion in market cap amid the crisis of confidence after investors dumped holdings of the parent company svb. shares ended lower after the fund raising plan and sold majority of securities and made a run on client deposits firms lined up to tell clients to get money out with peter thiel among them according to bloomberg. to recap, there was a taste of what happened, and to recap what happens with svb is silicon valley bank customers are tech

startups they deposited money with the bank svb invested those deposits into long-term government securities to give them double sensitivity to higher interest rates when rates rose t c, it createda profitability problem which forced them to sell bonds to reshape the balance sheet. they had to log significant losses when they sold securities they had to raise capital to replace losses that brings us to today. when investors ask will other banks being forced to cover deposit withdrawals? we have have red across the board. the tech heavy nasdaq falling 2% it was a tough day for the

stateside. we are lower for the week overall. 3% of losses for all of the major indices. bringing you up to speed with the latest losses are poised to continue to today's session. we are looking at a near 200 point drop for the dow jones industrial average the s&p is looking to build on yesterday's losses clearly the nerves are continuing into today and no surprise given the action in asia overnight now the selloff in europe this morning. frank holmes joins us now. executive chairman of high blockchain technologies to make sense of the action. it is wonderful to have you with me i thought it would be about non-farm payrolls. clearly the big story which has the markets attention is the banking sector what is your take on how concerning this is

>> big picture short time in the third year of the presidential election cycle in america, the markets are up. mathematically since 1955 when i was born, it has been an up year what we're witnessing now is the contagion that started last year in technology and also started in crypto. they all seem to go together we are getting close to the end. whether it is capitulation and some of it is the mark-to-market which was repealed in 2008 when obama became president because it was causing problems. it was reintroduced two years ago. maybe it has something to do with how they interpret mark-to-market warren buffett is upset because an he is focused on earnings and not mark-to-market swings. i think we are getting close to the next quarter which will be some type of capitulation or

bottom march comes in like a lamb and out like a lion. rh right now it is coming in like a lion >> it is probably good news for those who are hoping to use the weakness today as an opportunity. we take a courageous investor at this stage. >> it is the quarter not just the day between now and june, we will get is some type of peak in rates and trough in the stock market >> i guess leading into your experience as the investor, as you say, you have been around for some time. how does this selloff, the fears we see compare to other periods of peak fear looking back to the global financial chrrisis? >> that was different because it was overleveraged in real estate when you have financial stress in the industry, it repairs

itself in 13 months or 14 months so, i think that the idea that last year in the spring, late spring, we started the contagion taking place by the summer, i'll say that was behind us, and there will be structural changes >> it is surprising to me this wasn't anticipated given we all knew that the tech sector was vulnerable to interest rates and we have higher interest rates and this seems like an obvious ripple effect in hindsight that you see tech funds and tech startups pulling deposits to get funding because they weren't getting it from vcs. why do you think this wasn't easier to foresee? >> the element of greed and make quarterly performance and loans on the books and things of that

nature things will always overreact up or down and now we overreact on the down side which presents an opportunity. can it go another 10% lower? y yes, it can. i think we're in that stage going on the math of the president election cycle since 1955 >> let's talk about what this may mean for the federal reserve. that is ultimately a major driver of markets. this kind of turmoil has to get the attention of the fed. >> usually that's what happens a big entity goes bankruptand the rates come down and the capital markets are refreshed with capital this contraction which has been taking place and we are seeing the rippling effect. i think we should be behind us in the next quarter. >> do you think this will warrant a reaction from the fed? >> it will i think the other part is when we talk about the world of gold,

gold is always the balance between monitoring fiscal policy and that's where gold shines we see central banks buying gold all last year and, in fact, when rates were rising, they usually sell gold because they can earn a higher coupon. they are buying gold there is something else that has the risk we are seeing central bank buying. it is wise to have that 10% waiting and consideration of it or buy beautiful 24 karat gold jewelry. >> i just got married and i received it. i think it was archaic now i'm splup surprised did gold catch a strong bid yet? it was muted why do you think it hasn't shown up

>> it is a one-day trade and short-term inverse relationship with the dollar. the 2-year treasury is moving around the yield that yield makes an all-time high this week that and the fiscal policies and the dollar is strong and gold is down that is a short period of time inflation is still understated if we use the 1980 time when paul volcker took rates to 18% and we use that to define the cpi number, inflation is 17% today. >> wow >> the airlines, which i love, and now listed on the london stock exchange, and itis amazing with the biggest inflation were airline tickets guess what airlines are turning cash flow to positive. a shortage of pilots and everyone wants to travel there are industries where you

get imbalance with supply and demand and turn around and look for the opportunities. airlines took it on the chin with the contagion >> absolutely. you opened by saying you think this year is coming in like a lion and go out like a lamb. what does it mean for the u.s. indices? where will they end the year >> mathematically going back to 1955, it is double digits like 11% positive they can sell off and easily have the turn. there will be stress in the economic engine and congress will resolve things and the federal reserve will make a pivot point. bankers like this are good for bottoms. >> it is a tough market. >> hold on for dear life people like to say hodl. >> thank you for joining us in studio frank holmes

executive chairman of high blockchain technologies. a lot of focus on the b banking sector today, but let's get the latest beyond the banking sector with arabile. >> thank you, julianna frank and i are wearing black. there is negativity across the board for most of the indices. barely any green to zone in on as you can see, stoxx 600 with 2% into the red today as well. negativity after the contagion from silicon valley bank overall, the market picture is negative when you focus on the regional players as well in the market and you see more than 1% lost and 2% lost for a lot of the markets. perhaps a slight under per performance there with the smi

in switzerland 1.4% in the red. fairly down beat as the market plays. we did get economic news coming from german cpi numbers in lockstep with what was anticipated in the gdp number. 0.3% higher for the month of january as opposed to 0.1% which was expected it was the services sector which seems to have done well. construction fell off there. it is a look at the banking sector in general. that is what we will look when we get into the sectors. all of those that follow on from banks in the financial services are getting hard hit more than 4% loss as we noted as well for the banks following on from sv bank as well suffering quite heavily hitting the banks with major losses across the board more than 16% lost at some stages as well for svb financial

out in frankfurt that listing getting hurt as well clearly giving you a sense of how bad things are across the board. one issue in europe is deutsche bank more than 7% lost in that picture. we zone in on deutsche bank right now. this is really giving you a clear picture of how far bad things have been as we noted, there was german cpi data to focus in on. the other banks is bringing the question of will they need a capital raise to get into the deposit withdrawals which we have seen. this is what the u.s. banks look like pre-market. we are heading into what looks likes a negative picture for the u.s. open. that gives you a clear picture the contagion is set to continue we have seen the top four banks lose a bit yesterday $80 billion wiped off the

banking sector yesterday when it comes to the u.s. trading picture. a lot of hurt. investor tension turns from banks to the non-farm payrolls which is expected to show over 200,000 new hires in the month of february. january's figure came in more than double expectations at 500,000. it is fuelling speculation over what a hot figure this month could mean for the fed's hiking path this is exactly what we're looking at for those numbers later today. >> arabile, thank you for breaking it down for you we will take a quick break stay with us we'll be right back.

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welcome back to "street signs. new findings believe there is gender equality in their country. according to ipsos, when it comes to giving women equal rights, things have gone far

enough men have a play to ensuring gender inclusion >> the time has come on women and their role in the financial sector and in governments and policy making. perhaps it hasn't turned fast enough. >> women will be more successful when we are no longer talking about being the first to do anything after i achieve that, my responsibility is deliver a good job with good results. >> women have to do what they've done for the past hundred years which is grab the opportunity. >> ensuring we have career plans for women, not just in support functions, but business side rotate the roles faster. move people around faster so women can have experiences to allow them to get to the top >> there is more concern of calling it out and about the backlash you get if you called

it out there are more people who think that are the gender equality has been achieved oregon too far >> of course, men should be part of the conversation. they are the other 50% of the world. so it is about working together. >> i'm pleased to say tanya joins us now with more and a very special guest >> thank you, julianna welcome the founder and coo of triny london thank you for joining us on "street signs," triny. you came up with the idea and everyone said it will not work no, i'm sorry. here we are. $250 million later how did you do it? >> think there are so many stages, tanya, at the early

stage, i used to follow media and he would say what can you sell in your home to boys that would be trainers. i had the journey in fashion i have to sell my clothes. i was living in a house too expensive. i had to go on the journey of self funding and really knowing that this is what i wanted to do and taking that highest risk and when it was ready going out for investment which had challenges for sure, but telling the story so people could hear what i wanted them to hear. i think how we tell the story of what we want to build is crucial as female founders going for investment in the male investment world >> you saw highlights from the week of trying to close the gender gap and women in different industries when you went, first of all, to the investors, were they

predominately male? >> we need to think on the broader level and when you go and dc brand from investment to cyber and you had the real fast track growth and new customers don't worry about the bottom line that was the zeitgeist of the moment when you come in and get strong customers and it is more important i build on bricks and not quicksand, they are listening to the last picture in the room to really be able to be objective and say what is the future i spoke to a lot of them who say i love your idea, but women in their 30s and 40s were not buying online. you should make it for millennials. the gap in the market is here. that's where you then get the classic thing with the secretary and say would you buy this you think, okay, i get that, but

it is like really? then i also think we think wow and if i was a woman and i was funding, which i will one day fund other female businesses and someone comes in and if i don't get the idea, would i test it is a male bringing in one of their assistants an d say would you buy this i knew all of the figures in my head i wanted to tell the vision. i want to bring somebody in on the whole idea sometimes you need to do chunk pieces we will do this and get to here by doing this. then we will do this people can follow how you will do it and they don't feel i'm lost in the execution. i had to learn that for myself to the investment community.

whether it is male or female, i had to learn as a founder. >> do you think the direct-t direct-to-consumer model helped in the pandemic? >> it was pivotal. we have grown and got good cohorts. we had grown steadily. during lockdown, we had personalization and match-to-me system so people actually could go straightaway and every other beauty brand had been retail they took longer to get the online presence. we did triple the business during lockdown. >> how do you so effectively harha n -- harness the power of social media which is difficult to navigate and difficult to understand how to embrace it and use it to your advantage >> it has to be and this is such a word that doesn't say what it

is, authentic. it is that you know, building a business in today's world in the industry i'm in is heralding a community of women and talking in a language they understand social media can be incredible to do that talking in an unfiltered way and not talking with lovely air brushed photograph ay and here a 20-year-old and i'll sell you these products and you're 35 we want realism and aspiration the balance with realism and aspiration is critical you want to think i can do that. social media allows you to be honest and candid and bring people on the journey. we have a trinny tribe on facebook when we go to the new year, we activist the community they are invested champions. it is a fantastic echo chamber

>> are you surprised with the reaction which is positive around the world you have been given an award by women's world daily. has it shocked you >> it shocked my daughter most is that i sat next to hailey bieber and she said you must say hi to her. he he said my name is justin. the pinch me moment is the best beauty award in america. we localized australia and started some stores there and that's been amazing going from 14% revenue in australia and now we're at 23% >> finally, trinny, we are coming to the end of the coverage for women's week. what is your advice?

>> i would say if you got a job -- if you have an idea and you go out there, you need to stick to your lane if you think what are they doing and what are they doing? it takes away your sense of vision and belief in what you are doing what you know and woke up every morning doing what you love it dilutes your proposition. stick to your lane. >> it is hard not to make comparisons. i'll take that for sure. >> trinny, thank you trinny london. thank you. >> tanya, thank you for bringing her to set and your coverage this week. let's get back to markets. chinese president xi jinping secured a historic third term in office for another five years. in 2018, the communist party amended the constitution to allow an incumbent to run for a

third term han zheng is elected as vice president. both p men served in the standig bureau committee. coming up on the program, french president emmanuel macron is welcoming rishi sunak for the first bilateral summit between the two countries in years we will have more on the ground in paris next.

welcome back to "street signs. i'm julianna tatelbaum and these are your headlines europe's banking index on base for the steepest decline since june following the overnight selloff in silicon valley bank cwall street eyes at day of losses ahead of the non-farm payroll print.

president biden reveals the $6.81 trillion budget and the inflation reduction act is no focus as von der leyen plans to visit washington let's continue with the market look right now which has been quite dire. it has been a red day across the board. things are gotten better we had seen the market tilt to the 2% to mfor most of the mark. perhaps a steadying of the picture. still under performance for the smi in switzerland with the defensive stocks thek contagion of sv bank. that stock collapsing and really

moved through the market the banking shares in the u.s. losing $80 billion in the trading picture. wiped out completely that capital raised $2 billion for sv bank hurting the market picture. will the rest of the banks go that far what does it mean for the interest rate picture in the u.s. and contagion across the world as well. speaking of contagion, the currency market is one to look at with the dollar moving in lockstep with a sense of negativity weakness against the swiss fr narc franc. still unable to shake the 106 for the euro/dollar. on to the yields which have been interesting. these have seen an interesting

come to the floor here with the german bund here 10-year yield going down 16 basis points today that could be the biggest slump since february giving you that number of 2.533 there. across the board seeing the yields actually drop substantially following from the picture of sv bank this is what the u.s. futures board looks like it has gotten slightly better. 200-point loss for the dow jones industrial average perhaps stabilization in that sector negative is where we are going with the trading picture the contagion from sv bank and non-farm payroll number will be in the view of all traders and investors today. julianna >> fascinating nasdaq is poised to open heiigh. dow jones industrial average now looking to open 111 points

lower. we were looking at 200 ten minutes ago. we are curious to see the change and if it continues. now to politicians president biden outlined the federal budget on thursday and setting plans to cut the deficit by $3 trillion by raising taxes on those earning more than $400,000 a year and reversing the corporate tax breaks from 2017 speaking in pennsylvania, biden hit out at republicans opposition which means the bulk of the proposals will be dead in the water. >> i guarantee i will protect social security and medicare without any change guarantee. i won't allow it to be gutted as maga republicans threatened to do maga republicans don't pose an answer to social security. my plan will not cut benefits

and it won't sunset programs like maga republicans want to do secure medicare through 2050 and beyond and ensuring the program is strong for generations without cutting a penny in benefits. now to the political side. president biden will meet commission president ursula von der leyen to discuss security concerns around china and the ukraine invasion sylvia joins us with more. you have been all over the story and what is motivating the european side of things for ages now. what is von der leyen looking? >> we are looking at critical raw materials. for the time being, no huge

concessions from the americans with the u.s. inflation reduction act. the reason behind that as several put it is because the west inflation reduction act is designed to support american industry and if they were to essentially give a lot of concessions to eu ss to europeat would defeat the legislation i want to show you a couple of stocks specifically. it is important to keep in mind this story is having an impact when it comes to the corporate world. enel, edp, volkswagen made comments how they will benefit from the u.s. inflation act. how they are pressing ahead with the investment plans in the united states. european officials are not enjoying that. we are just seeing they are going ahead with state aid

yesterday, they announced the member states will provide state aid within this context and i want to show you the key quote from the head of competition policy in the eu she said these rules are prop proportionate and targeted this could create frigs ction wh the eu germany and france has the power to support other companies other economies in the eu do not have that power. they will be putting pressure on the eu institutions to come up with joint eu action in the coming months. let's see what else europeans are prepared to do >> sylvia, you raised attention with the story yesterday with the chips in netherlands and restricting the advanced chip machinery. you pointed out this is a big win for the united states.

how does that factor into the relationship and where things go from here? >> it is very interesting to take a step back and look at all of the dynamics. in essence, we are likely to hear positive statements from von der leyen and biden. they need one another. the americans need the europeans when it comes to their agenda to counter china's actions. the europeans need the americans when it comes to the russian visi invasion of ukraine. they need to realize they need to work with one another how will that impact the dynamics over trade and in particular with the u.s. reduction act? >> that is a good point. we had a guest on yesterday who made that point. since the war has broken out, europe needs the u.s. more than ever that is complicating the relationship sy sylvia, througank you for joini

us now french president emmanuel macron will meet rishi sunak in paris today the summit which is the first in nearly five years will focus on establishing cooperation and defense and energy and migration policies charlotte has more live on the ground in paris. charlotte, what is on the agenda and what is at stake for the meeting? >> reporter: good morning, julianna we are here at the palace. we are waiting for rishi sunak, the prime minister, who is about to arrive any minute now this is a first in five years for the summit this venue is supposed to be a yearly one, but the relations between the countries reached a low and the pandemic had an impact the tension with the boris johnson being prime minister and the issues with france and australia which was canceled

it caused trouble with the two countries. you remember the english channel and et cetera and et cetera. and if france was a friend or foe. this is making relations difficult. now this is the sense of the reset and new chapter in the post brexit relations with the countries. the war in ukraine is making this reset necessary the two countries are the two main armies in europe with the nuclear bombs as well. they want to open the chapter with macron and rishi sunak with similar ages and both ex-bankers they have met on the side of the g20 before they are now coming in with key ministers who will meet their peers with foreign affairs and defense, et cetera we discuss all this with the weapon delivery to ukraine and

training of ukrainian soldiers nuclear energy is where the countries worked together in the past in the context, just about a week ago, you had the northern ireland framework and the deep freeze with the relations with the uk and eu. in a few weeks, king charles will do the first foreign trip and he will start with france. there is a sense of an effort to rebuild the relation with the two countries. rishi sunak will arrive in a few minutes and he is meeting emmanuel macron and we will see if there will be cordial relations again. >> charlotte, thank you for breaking it down for us. interested to see what comes out of the meeting. we will squeeze in a quick break. leonardo expects higher orders we will discuss more with the ceo next

welcome back let's follow through on the market picture and check on the banking sector which has been in the news the last couple hours following from silicon valley bank with the raise. will they need to capital raise to deal with the withdrawals we have seen in the market? this is the european banking sector we are seeing negativity across the board. although the overall picture has actually 4.2% weaker now 3.8% a slight reversal in the stance. you see the likes of deutsche bank at 7.4% weaker. general sense with hsbc moving 5% into the red. societe gen moving heavily credit suisse cannot catch a break down 4% in lockstep with

the banks. here is the european market picture. we noted there was negativity across that and that continues to still be the sense which has come off from the weakness we saw earlier on we expected to see a lot of the move toward 2% that has come off with the likes of the dax at 1.5% weaker. now seeing the ftse mib at the 2% level so is the ftse 100 speaking of the ftse 100, we did see the gdp number come from the united kingdom 0.3% growth for the month of january. it is better than 0.1% it seems to be evading that recession fear even if it is for now. let's continue with the banking picture. this is pre-market in the united states you are seeing negativity across the board to follow through the negligence trading picture on thursday

$80 billion wiped ouptt across e financial picture in the united states that is a similar sense across today's trading picture. u.s. futures are headed in a slightly positive sense for the nasdaq that is interesting. tech heavy nasdaq is moving little bit better than early on. so is the dow jones industrial average. that was 200 points weaker to open the trading picture, but that is falling off slightly the weakness may come back it is an interesting pull back we are noting for this market picture. on the earnings front, leonardo expects 90 billion euro worth of orders in the next four years. the italian defense company says the civil aviation company is stronger and it is looking to aid from the defense spending from the government. we have the ceo from leonardo.

your stock is one of the few up in europe this morning a positive reaction in the context to the results you delivered yesterday. can you talk us through just how much you are benefitting from the ramp up in military spend on the back of the war in ukraine and efforts that governments around the world are making to deliver more and prepare more for the future >> many thanks for the question. i think in reality, the main benefit we have is related to the fact that all over the world the defense expense will happen. as you know, all of the nato countries will go 2% in defense. it is sensing more structure and what is related to the ukrainian war. leonardo being present in the market and we have the platform

with aircraft which are quite strong however, incredibly strong in electronics and the name of the game is information and mu multi-domain the electronics is really incredibly important element for our future of the company. the results are there. not only now, but in the market which is quite stronger. for us, what is reallyimportan is the fact there are sustainable results with the positive sperperspective. >> our viewers were being shown the meeting with rishi sunak and emmanuel macron alongside you.

one approach is what they will do with ukraine and what they want the security strategy for europe moving forward. what is the sustainable growth rate, do you think what is the sustainable picture with military spend from the key nato countries >> first of all, i think that we have to spend more we will go up in terms of 2% and we have to spend better. what this means to spend better? it means we have more common programs and more european programs this is one of the strengths as you know, in the aircraft domain, we are part of the euro fighter and now we're on the program. now we have been part of the nh-90 program. it is really a way for leonardo

to work with our partners and sometimes our competitors, but to create a stronger european perspective. with this in mind, it is really relevant with specific strength as i am used to saying in the driving seat in some businesses where electronics is one of them for instance, the training activity on aircraft it is relevant to spend more, but to spend better as well. >> in addition to aerospace and structures and helicopters, you are involved in cyber and security what trends are you seeing from your customers in this space >> first of all, it is important that everything we produce is a cyber secure by design

this is very relevant. if you want to be operable and multi-domain approach. communication needs to be in a secure way that is to be more complex to be realized this is an area which we are focused. we have seen attack on the network in the past. so a strong capability with the strong infrastructure which is important. here, we have a combination of physical supervision as well as satellite supervision and connected with digital approach.

we are very strong, for in instance, in the cyber range area we h have an entity in order to test attacks on the systems. we reproduce the system of our customer and we manage attack and defense on a real system, but in a secure environment. this is relevant as leonardo, we have a strong presence in the uk and in many different international countries. >> thank you for joining us this morning and talking us through what you are seeing in the market ceo of leonardo. thank you. now sticking with earnings,

daimler trucks is looking to improve the business after earnings and revenue for the fourth quarter and full year improvements it posted adjusted ebita of adjusted earnings for the fourth quarter and revenue at 14.7 billion euro we will interview martin daum later this morning on cnbc. and it has been a bloodbath. heavy losses for the banks this morning. deutsche bank down 8%. the worst hit among them hsbc is not far behind down 5% credit situation is down 3.8% after the selloff yesterday. all of this on the back of the major selloff in svb silicon valley bank. it spooked the market. raised concern over what risks

are stateside and across the globe. u.s. banks are indicating opening lower. losses set to continue after we saucer yus lo-- sauw serious los the kbw index fell 8%. these are serious moves. if i can sum it up, the question investors are asking is will other banks be forced to sell at a loss to cover deposit withdrawals. there is a look at u.s. futures. the nasdaq had turned positive, but now back in the red. all three majors pointing lower. all this in addition to the payroll report due later today plenty of action ahead that is it for "street signs." i'm julianna tatelbaum "worldwide exchange" is up next. has no idea she's sitting on a goldmine. well she doesn't know that if she owns a life insurance policy of $100,000 or more she can sell all or part of it to coventry for

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it is 5:00 a.m. at cnbc global headquarters. here is the top "five@5. global namarkets in turmoil pointing to more losses at the open. and banks with shares of silicon valley bank shedding millions in market value some of the biggest clients rush to pull out funds. it is not just svb the stat that you have to hear about related to the four biggest banks in the u.s. as traders sell first and ask