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 questions later.

also, awaiting the february jobs report. we speak with one employer with the on the ground perspective. and then knock on from the trading and crypto crash at the lowest level since january it is friday, march 10th, 2023 you are watching "worldwide exchange" here on cnbc good morning welcome to "worldwide exchange." happy friday let's colheck the stock futures they are off session lows. something to watch this after the sharp selloff that did not hit the full stride until late in the trading day. hardest hit sector is financials down 4% yesterday which was the worst day since june of 2020 down 4%. you see the down turn as the day went on.

more on that obviously coming up. checking on the bond yield investors block to the sector. we see the 2-year treasury continuing to be below 5%. we are seeing 4.84 the inverted yield curve yields on the 10-year treasury slightly down at 3.85% something to continue to watch in energy, not a lot of movement in the oil market. it is flat wti is $75 a barrel. brent crude at $81 natural gas is down more than 1.5% in crypto, the biggest moves. bitcoin is lower in the last 24 hours. below the 20,000 mark. now back below 20,000 mark down 3% this morning much more on this story coming up let's get a check of the action in asia and trade in europe with julianna tatelbaum in the london newsroom

julianna, a lot of red on that board as well. >> that's right, frank good morning the selloff we saw late in the day on wall street has created quite a negative back drop for trade across the globe in the asian session, nikkei pulled back 1.7% bank of japan holding the the p policy meeting with rates unchanged. hang seng and hong kong dropping 3% joining that selloff in the banking sector shanghai down 1.4% in china, the big news overnight is xi jinping who is beginning his historic third term as president. as for european markets, it is red here heavy selling as well, frank, in terms of the magnitude ftse 100 is down 1.2%. cac 40 is down 1.4%. on the political front in paris, emmanuel macron meeting with rishi sunak for the first time

in five years nfor a bilateral meeting. dax is down 1.6% frank, much like you saw yesterday, it is about the banks in europe. here is the look at the individual movers. the banking index down more than 4% at one stage. deutsche bank is the worst hit among them down 7.6% hsbc in the overnight session flagged with steep losses. that bank down a5% it is broad based. investors selling the banks quickly and heavily this morning. frank. >> julianna tatelbaum live in london thank you. sticking with the weakness across the banking sector, we watch silicon valley bank. silvana henao is here with more on that story. good morning, silvana. >> good morning, frank silicon valley bank is set to continue losses after shedding 60% yesterday.

the stock now is set to open down another 30% today headwinds for the bank compounding in the past 24 hours, frank it looks to shore up the reserves peter thiel is looking to pull fund from the bank and it calls for calm union square and founders collective and as many as 15 others are pulling or considering withdrawing their money from silicon valley bank the lone standout is andreesen which is telling them to withdrawal all but $250,000 which is federally insured and bill ackman saying this could destroy the long-term driver of the economy. he is calling for a partial

government bailout >> the series of tweets on the matter we will talk more about that silvana henao, thank you see you later on sticking with stocks and futures under pressure again we are seeing red across the board. the dow could open up 150 points lower. nasdaq is least impacted after yesterday's late selloff which saw all three indexes to extend to three straight losing sessions the stekector coming off the wot day since june of 2020 joining me now to discuss it is behind today bakhshian -- linda bakhshian why is there so much concern of the issues for this particular bank >> this particular bank is more

of a liquidity crunch. this is systemic issues. we are coming into a week where the fed is raising 50 basis points potentially you had a conference with net interest margins were under pressure and earnings are potential under pressure you had silvergate closing because of crypto. silicon valley is another issue on top of everything else that investors experienced this week. however, silicon valley itself is not a systematic issue. jpmorgan chase and bank of america is fine. this is more liquidity bank crunch and very much stock specific >> i want to talk about this we heard portfolio managers say banks and financials are more attractive with the rising rate environment. when we look, we see them under

perform. the ark etf. why are we seeing investors run p to the risky assets during the time when banks should be out performing >> there is really two reasons one is the net interest margins are coming down. deposits are leaving there is more churn in the deposit. the net interest margins means earnings are getting pressured and second, it is more about the economic issue are we go to a hard landing or soft landing if it is a hard landing, question comes into question the whole growth potential of financials of the section 6 to 12 months is murky than six months ago valuations have to hit rock bottom to make the sector attractive over the tech companies that were hit hard last year. >> i know this is murky with the

fed. we will get visibility with the jobs report today and jay powell's testimony he said he would watch and follow the data. what do you expect for the jobs report and how do you see the market reacting today? >> if it is too hot, the market will be selling off. if it is cooler, the market will have the sigh of relief. however, i think the jobs number with 100,000 plus or minus margin of error here that is really key to watch here the fed wants to slow the economy down that is the important part here. they do want to see that employment market weaken more to contain wage inflation. >> you are making a great point, linda. it is not just jobs, but wages linda, thank you when we come back here on "worldwide exchange," more on the selloff and the banking

sector my next guest says this is an opportunity to buy. and awaiting the february jo jobs report. one ceo employing restaurant workers across the country but first, xi jinping solidifies his place in power. we live next a very busy hour when "worldwide exchange" returns. stay with us power e*trade's easy-to-use tools like dynamic charting and risk-reward analysis help make trading feel effortless and its customizable scans with social sent help you find and unlock opportunities in the market with powerful, easy-to-use tools power e*trade makes complex trading easier react to fast-moving markets with dynamic charting and a futures ladder that lets you place, flatten, or reverse orders so you won't miss an opportunity

welcome back turning our attention to china chinese president xi jinping making history as he begins the third term as leader of the country. lawmakers voting in the ceremonial procedure and xi has the first grasp on power eunice yoon is joining us from beijing about the third term for xi good morning, eunice >> reporter: frank, good morning. it was a unanimous vote. with that vote, president xi is becoming the longest serving chinese leader since chairman mao. the first foreign leader to

congratulate him was russian president vladimir putin what is important is that at the national people's congress, lawmakers approved a reform plan that will restructure the government and essentially put a lot more power into the hands of president xi especially in areas that are important to the president for example, new commission has been created to promote the self reliance in technology as you know, that has been a mantra here with technology development with the eye on the u.s. a big topic here during the congress also regulatory oversight of financials and another new agency that would look at data development and securities two other big areas of concern for president xi president xi also is going to be more directly handling the public complaints. the ministry that looks at

public complaints. the tighter reins would be on social security and there is some discussion that hong kong affairs could also be directly managed by president xi and his top aides. over the weekend, we will be learning more who will take the top jobs in economic planning at the central bank and premier post frank, as you can can imagine, e overall direction of the policy is xi. >> i think we all expected xi to be elected what can we expect with the chinese corporations and that impact >> reporter: it is difficult to say. on the one hand, there are a few voices here who say some of the changes are positive for chinese companies and multi-national companies and specifically the

financial regulator that there's been a lot of overlap with the regulatory bodies. this is a way to cut out the bureaucracy and red tape on the other hand. it is difficult to say how this will pan out the overall indications have been that president xi is able to take more control which is often and he does want to take control and have the communist party have more influence. >> eunice yoon live in beijing thank you. coming up on "wex," the big money movers and the mystery chart will be veedreal coming up next stay with us

welcome back to "wex." time for the three stock stories of the morning oracle shares falling after the cloud business failed to meet expectation for hire growth. on the call last night, chairman larry ellison weighed in on chatgpt comparing it to a.i. tech >> we actually have shown or mb anderson has shown, if you reduce the system, you reduce admissions by 30%. that's a stunning number

people talking about chatgpt being really cool. it can write my high school essay for me how about reducing hospital readmissions by 30%. you decide which is more important. >> turning attention to the retail sector. gap tumbling shares down 8.5% after missing on the top and bottom lines for the fourth quarter and warning of the first quarter and full year revenue drop. it owns banana republic. and ulta sales benefit from the resilience from the beauty category as shoppers budget for makeup and beauty projects. turning attention to apple kicking off the investor day today with more insight into

apple's business in china. shares out performing the broader market up more than 15% this year compared to the s&p's 200. for more, let's bring in gene munster. i can't get the words out. nine proposals on the docket is there one investors should pay attention to specifically? >> frank, that is proposal number six four coming from management and five coming fromshareholders proposal number six is about an annual audit in terms of how apple is doing business in china. suppliers and political connections. it is unlikely that passes i think in part because apple management is recommending you vote no for the five shareholder

proposals. that one did jump out at me. i think what it does speak to what will be one of the well traveled story lines with q&a. that is apple and exposure to china. there are two basic layers to it which i suspect and this is the juicy part of the event today is the q&a. two layers to the china conversation with apple. one is, of course, the supply chain of under 60% of revenue comes from manufacturing from china today. ultimately, they are diversifying away from that. 75% of facilities are opened outside of china that was in 2021 with the last audit. >> a lot of production moving to india. something else you are watching is the active devices for apple the. 2 billion right now.

now 8% growth last quarter how meaningful is this >> it is remarkable. just to put 2 billion and growing at 8%. the best comp we have is meta. their base is a 2 billion base for facebook daily users that grows at just under 2%. i think at the core at apple, it is the faith of the flywheel of devices. when people get a device, they get another device that is why the stock is up on a rare miss in the december quarter was investors slept well at night knowing the ecosystem is growing at an unprecedented 8% rate. >> shareholder meeting coming up proposal number six is the one to watch what with eelse can we expect ie

see -- what else can we expect we see the va r and ar is there anything else expected? >> they may hint and tim cook will hint to the ar glasses. he will say something to the effect of we believe in augmented reality. apple doesn't use the word metaverse. that is essentially what they are talking about. we may get a behint about that. we will not hear anything about the car, that is my central question that is some indication of the pace of r&d and if it is a big number, they are working on a car. that has a huge impact on where apple stock moves. apple gets 4% share of the auto market and that would add 25% to the business that is something they will not tell us much about, but that's what i want to hear about.

>> gene, you have to hold off on the juicy parts and other good part great to have you on the show. i appreciate the insight hope to have you back soon. >> thank you. as we head to break, we ggeck on the biggest nasdaq laards rivian with a 14% decline at the top. "worldwide exchange" is back with more after this at morgan stanley, old school hard work meets bold, new thinking, ♪ to help you see untapped possibilities and relentlessly work with you to make them real. ♪ what if you were a trendy apparel company facing an avalanche of demand? to ensure more customers can buy more sherpa-lined jackets, you call ibm to automate your it infrastructure with ai . now your systems monitor themselves.

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it is 5:30 a.m. in new york city we are just getting started here

on "worldwide exchange." the thursday stock selloff continues as investors brace for the monthly jobs report. futures are pointing to a lower open one index turning positive and the banking sector and the fallout over svb we are laying out if svb troubles is a signal of broader risk. and crypto not spared from the selling as the new york attorney general is going after a coin leading to regulatory worries. it is friday, march 10th you are watching "worldwide exchange" here on cnbc welcome back i'm frank holland. let's pick up with the check on u.s. stock futures following the selloff yesterday. i guess we can say they are mixed. they are off the lows this morning. nasdaq is positive the dow and s&p in the red at this point if the markets open up right

now, the dow would open 100 points lower investors flock to the sector of the bonds. the 2-year treasury is 4.813 10-year treasury is off the high from this week down to 3.815. inverted yield curve is something to watch as the recession concerns mount we are also looking at oil and energy wti is $75 a barrel. brent crude is $81 natural gas is hardest hit this morning down more than 1%. let's get a look at the trade over in europe with julianna tatelbaum who is back with more from the london newsroom julianna, again, a lot of red over there across the pond >> there are, frank. we have bounced off the lows of the morning. we are hovering around them. we have red for every single major index in the region. ftse 100 down 1.8% cac 40 down 1.3%

dax down 1.4% as investors deal with the fallout from svb. as you said, ponder the question if this is representative of further risk in the banking sector judging by the reaction, there are a lot of nerves. here is the european banks heavy selling across the space deutsche bank is down 7.4% commerz bank is down hsbc dragged down stocks there now in the uk, hsbc stock down 5.1% it is a broad based selloff in the banking sector broadly, we have investors favoring the defensive parts of the market as you expect in the risk-off environment utilities sector is trading higher up .20% food and beverage and household goods as well as healthcare also showing to be more resilient

investors clearly looking to put money into those assets which are considered more defensive. on the down side, banks at the bottom down 3.8% financial services with the housing of bank stocks down as well frank. >> julianna, thank you very sto. silicon valley bank extending the massive losses after falling 60%. shares this morning are down again. down almost 40% as some of tech's biggest vcs as peter thiel told clients to pull money. and this is sending shockwaves to the banking sector. look at the four biggest banks bank of america hit the hardest. down 6.2% there. all together, the big four shed

$52 tbillion in value in one da. and joining me now is stephen biggar thank you for being here i think the big question is your phone is ringing off the hook with clients is what we are seeing here an isolated incident or sign of systemic risk? >> good morning, frank i think it is isolated syst silicon valley bank has two issues that put it in the specialty category and one is a high deposit ratio with funding source and we find when venture capital firms and start-ups want to remove funds and it puts undue pressure on the organization secondly, of course, catering to a specific area of the economy in terms of technology startups. you know, i don't think this is a reason for worry yesterday's bank performance had the contagion fears, but i don't

think this issing something that is uss is systemic in the banking industry. >> bill ackman called out for a bank bailout he said the risk of failure and deposit losses is the next lease on capital bank and the dominos continue to fall he goes on to say that is why government intervention should be considered. you don't think there is risk of contagion. is the fear a risk unto itself >> well, it always is, that fear factor, clearly. i think he is referring to silicon valley bank and potential bailout scenario i think there were reasons to not like the bank group today. those would be the fed unable to stick that soft landing and

having gllosses the silicon valley bank s situation will not cause bank runs outside of some of the firms that are worried about meeting payroll and funding their own growth situation again, very targeted to startups in the technology space sd. >> we saw the kre etf the fall 8% as well yesterday whether it is big banks or small banks, there are other areas and financials with holdings that could be trouble going forward >> there are smaller regional banks with pockets of overexposure to single sectors that might be of some concern.

we cover the very large banks. the systemically important institutions which have phenomenal capital cushions with wide funding sources and would not be at risk from this type of contagion. yes, are there pockets of weakness sure you know, the fed has highlighted this notion of having the available for sale and held until maturity losses when the bank portfolio exceeded $600 billion banks don't need to take the losses if they hold to maturity. i think that is where the vast ma majority of the banking sector is not forcing to sell and having funding sources over the deposit levels.

>> stephen, we have to leave the conversation there. thank you. turning to crypto. prices falling sharply amid the issues with silvergate macro and regulatory concerns is an issue silvana henao has more >> a price pull back after the attorney general classified the coin as a security and part of the lawsuit with qcoin this means it could eventually fall under the regulatory umbrella of the s.e.c. and gary gensler. the lawsuit against qcoin is the fourth largest crypto exchange claims it violated the law by selling securities that were not properly registering in new york state. it adds that qcoin offered an ethereum stake product similar to the one that got kraken in

trouble with the s.e.c also dealing with the budget proposals and rules to close the loophole and limit ability to take losses to lower tax bills the plan would subject crypto to the same sales rules that apply to stocks and bonds. frank, bitcoin is down sharply now below $20,000 and hitting the lowest level since january. >> silvana henao, thank you. coming up on "wex," investors gear up for the jobs report that is being released in hours. we talk to one guest and as we head to break, the top stories. apple launching classical music service. access to 5 million tracks and hundreds of play lists and thousands of items. and the drone delivery

company will expand delivery system beyond the test cities starting this year the wing delivery platform hopes to advance the last mile process involving the package movement from the second last stop to the final destination. and marvel movies may get fresh faces to the superhero lineup marvel studios need to focus on new characters instead of relying on the familiar faces for the third or fourth times. "worldwide exchange" is back in a moment i think i'm ready for this. heck ya! with e*trade you're ready for anything. marriage. kids. college. kids moving back in after college. ♪ here's to getting financially ready for anything! and here's to being single and ready to mingle. who's read-cha?!

time for the round of big money movers allbird shares tumbling after the revenue loss shares down 23%. the company announcing a plan to spark sales. docusign dropping after the better than expected results issuing guidance in line with

estimates. announcing the cfo will resign later this year. the company cut 10% of work force after layoffs last fall. shares down 12%. vail resorts missing forecasts, but cutting guidance with weather disruption. the western resorts were hit by travel disruption and lake tahoe by severe snowstorms shares are down 1.5%. investors waiting for the economic data point due out in under three hours from right now. february jobs report economists forecast 225,000 jobs added last month much lower than the blowout 5 517,000 from january unemployment expected to hold at 3.4% the key segment is leisure and hospitality. the net gain in the space is 130,000.

let's get on the ground insight with one of the employers is chris tomasso. a fast casual restaurant across 29 states employing 29,000 penal. ch -- people chris, thank you for being here. >> thank you, frank. >> you have real-time insight into the jobs market give us a sense of what it is like to hire people. 46% of people are full-time. 40% part-time. >> we have 13,000 employees across the united states and all of our restaurants i have to say for us, you know, hiring hasn't been a challenge we are fully staffed on the hourly level we are staffed on the management level with enough to support growth we have been the fastest growing full service restaurant in america in the last few years. to take advantage of the growth attracts the brightest

we are a day-time concept only it is easier now than it was in the early days of the recovery of covid >> i have to be honest i have never been to one my producer was telling me about it i have to talk about inflation and consumer spending. the same-store sales increased 15% year over year is that the sign that consumers willing to spend or have to spend because things are more expensive. >> we have seen a resilient consumer that can be said across the board. for us, when we are thinking about the consumer and looking at their behavior and any red flags, we are not seeing anything you see consumer manage the check by not ordering or managing the check we are seeing beverage

attachment up and traffic is up. >> we are seeing a lot of rate hikes that are increasing the costs of anything. that is the intent to slow down the economy. how does that impact you is there a level where car financing gets into eating your business no pun intended. >> we watch that we have been conservative on our prices with the goal of improving the value. i think the consumer has experienced tremendous inflation in groceries making meals at home we tried to make it more appealing to go out to eat we are an affordable luxury. we feel like we are in a good sweet spot for the consumer as they become more discrik discri

with how they spend. >> how do you deal with the bottom line with inflation over what you serve wheat, bread and eggs, et cetera >> so, our pricing filphilosophi to raise prices only to cover inflation. we took a deviation from that. we didn't take any menu prices into 2021. you had significant commodity inflation and we got back to the price increase this past quarter. we really have been focusing on trimming and getting more consumers in restaurants and working harder with the culinary and supply team and working with the partners on that we were all impacted by avian flu last year and that was transitory we didn't want to pivot the something that was transitory.

we have been more conservative than everybody else in the industry >> first watch shares up 12% year to date you know what? i'm inviting you back we will have you and the chef in studio next time. >> we would love to be there >> thank you very much ahead on "wex," we have the futures selling off. we have degas wright with the latest coming up. and we have march as women's month. here is our own deidra bosa. >> i grew up with three brothers in toronto all hockey players one day i watched one game in a cold arena i was shivering next to my dad he said why aren't you playing the next week i was on the ice i learned something valuable

get out and try. you can keep up. i played hockey for years and carried that through my life and career my advice for other women is don't sit in the stands. you cannot only keep up, but lead

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welcome back time for the wex wrap-up oracle shares falling on the revenue miss after failing to meet expectations on the cloud business the ceo says the revenue of the businesses for the earnings beat chinese president xi jinping is starting the third term as the leader of china. tiktok is looking to hire a consultant according to politico, it tapped

skdk to provide support to the company. and nissan has been stalled according to reuters with the ariya model with problems at the production line. former president trump is invited to testify before the new york grand jury with hush payments made on behalf of his campaign in 2016 this according to one of his lawyers who says it is unclear if the jury would proceed with the first criminal case ever brought against a former u.s. president. and vinyl records out selling cdss fo for the first t in years. gearing up for the trading day ahead, the jobs report set to be released at 8:30 a.m we get the budget statement at 2:00 p.m janet yellen is testifying on the budget proposal which starts at 9:00 a.m.

apple is holding the shareholder meeting which kicks off at noon. ahead of the jobs report, mas markets are looking for pain ahead of the data. the dow, nasdaq and s&p closing above the 200 day moving action. let bring in degas wright. degas, i have to talk about the futures. nasdaq swing into the green for a bit. jobs report coming up before the bell what are you expecting >> so, frank, a pleasure to be on with you. i recently met with my investor group comprised of economists and business owners and wealth managers we feel the fed will continue to control the inflation and we'll be in the trading range because the fed will continue to hike rates for longer and we'll be in

the range of 3,700 to 4,100. we believe the non-farm payrolls will come in hotter at 225,000 and we are believing that we will see a 50 basis point rate hike coming up >> so you already believe 50 basis point hike will happen regardless of the jobs report and cpi next week? >> yeah. once again, we are seeing that the fed will have to control interest rates and one of the things people are saying when they drop down to 25 basis points, that may have been too soon we have to control inflation moving to 50 basis points is what we are forecasting. >> interesting despite what jay powell said, you see it baked in there. i want to talk about banking do you believe the systemic risk with the banking sector? that is one factor weighing on the market today >> frank, what we are seeing is an opportunity to focus on

companies with competitive advantage. those are the companies with leaders focusing on the big bet and momentum and building around the business we like european banks you've spoken to some of that today. which like a spain-based bank with markets in spain and mexico the advantage is the digital transformation serving as a catalyst for efficiency and growth it has increase in net interest margin by 49% and returning value to shareholders at 6% dividend yield. >> it is interesting you have a european bank pick can we show you european bank wall again a lot of banks in the red right now. is there a bank you would stay away from? >> once again, we want to focus on the banks that have the competitive advantage. for instance, banco.

you have to be careful and the banks that are really focused on net margin interest and those banks that have really strong balance sheets we are seeing a lot of that in the european banks >> well, we'll get to the stock picks, degas you have interesting ones. names we don't talk about often. bbba i want to get on another one in the logistic space ticker mnmh. a logistics software company >> manhattan associates. let's look at the competitive advantage. the leadership of the company is focusing on research and development investment in the tune of 15% of revenue that has allowed it to build a moat of innovation it has a cash return of invest to capital of 81% and no debt. >> you are looking into other picks.

more industrial here ticker hei in the aircraft space. this is a play on the defense spending and things like that? >> exactly this will benefit. if you look at heico, the leadership has focused on providing cost leadership with quality faa approved parts in 1990, heico had one faa approved part. today, it has over 5,000 faa approved parts and it has a cash return on investment of 31%. so this is a company that we really like. >> not surprising pick from you former army captain. degas wright, thank you for the insight. >> thank you, frank. one more quick look at the futures right now. nasdaq is least impacted if the markets opened right now with the dow opening up 140 points lower. that is it for us on "worldwide

exchange." "squawk box " is coming up next. have a great friday. i screwed up. mhm. i got us t-mobile home internet. now cell phone users have priority over us. and your marriage survived that? you can almost feel the drag when people walk by with their phones. oh i can't hear you... you're froze-- ladies, please! you put it on airplane mode when you pass our house.

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good morning stock sets to slide after 500 point selloff for the dow. the next market catalyst is today's employment report. shares of silicon valley bank plunge the lender is the backbone of silicon valley and now down 70% in the last 24 hours stocks losing billions in value. bitcoin and ethereum tumbling more than 10% for the

week it is friday, march 10th, 2023 "squawk box" begins right now. good morning welcome to "squawk box" here on cnbc we are live from the nasdaq market site in times square. i'm becky quick with andrew ross sorkin joe is off today i want to look at the u.s. equity futures a lot of things happening this morning. you see the dow futures are off by 150 points. this comes after the down day of almost 550 points yesterday. you are now looking at the dow down for three days in a row week to date, down 3.4%. the s&p is indicated off by 13 points after dropping 74 points yesterday. it is down