cooper webb taking the win. levi kitchen getting it done in the 250 class. both divisions can say they have four winners in four rounds, it's unbelievable. ricky carmichael, will christien, jason thomas, jason weigandt. thanks for watching. congrats to cooper webb. good morning. welcome to "street signs." i'm joumanna bercetche and these are your headlines. the swiss building materials giants plans to spinoff the american business and list in new york. the ceo says the move is the logical next step. >> we cannot kickoff the next level of the business to take it to $20 billion of sales.

we want to separate it to have more focus on the north american customers for the supply chain. a bruising for bayer after the german giant is ordered to pay $2 billion in the latest roundup weed killer lawsuit. and philips will not sell in the u.s. until the consent decree is figured out. the move will benefit the company in the long term. >> the first step is important and gives confidence to continue to provide innovations to market that really is in desperate need. healthcare is in a deep crisis. and evergrande shares halted after the hong kong judge orders

liqui liquidation. good morning. welcome to "street signs." i'm back after a couple of days after a strong illness. there's lots to get through with the events and the fed and the bank of england on wednesday and thursday. i'll kickoff the show starting with the main movers on the stoxx 600. this morning, we are staring at holcim. the swiss name is up 4.5% in early trading. a lot of green at the top of the stoxx 600 after announcing plans to spinoff the north american business with the valuation of

$30 billion. the swiss building materials firm announced the head of the european business will take over as ceo from may while the current ceo leads the spinoff and stays on as chairman. cnbc caught up with him to explain the spinoff decision. >> our north american business is the rock star. we doubled the business by organic growth. we have leading margins which is above 27%. now i'm happy we can kickoff the next level of performance of the business to take it to $20 billion of sales. we want to separate it to have more focus on the north american customers and get the synergy from the supply chain. >> it is not all green on the stoxx 600.

bayer shares dipping in trade after the company was ordered to pay $2.25 billion to a pennsylvania man who said his cancer was caused by the roundup weed killer. the company faces thousands of claims in the u.s. the story we have been talking about for years in the context of bayer. look at the share prices which dropped down 45%. one of the challenges for the company is getting that restructuring plan and turn around plan for the different divisions on track. bayer in focus down 4.5% at the bottom of the dax. ryan air adjusted the forecast after some sites stopped selling flights. philips is down 5%. we will talk more about ryan air on the show with our travel

guest on at 9:30. philips down 5% after the company said it would halt sales of sleep apnea devices in the u.s. until the conditions of the agreement with the u.s. fda are met. the ceo told cnbc the move was crucial considering wider struggles in the health care sector. >> the important thing is we are focusing on getting to the full potential. that was important and it gives a lot of confidence we can continue to provide innovations to market that really is in desperate need. we were discussing healthcare really is in a deep crisis. there is not enough people to take care of the patients. technology needs to step in. there is exciting a.i. technology to apply the technology that needs to be into the system. that is something we need to focus on, but it needs solutions

to progress. a lot of the top and bottom of the stoxx 600 today. you see the heat map is searching for direction. a lot of red behind me although the index level, the stoxx 600 is up six points. it is sitting at the two-year high. we have a better hand over from the asian equities which set the tone overnight. as we started off the show, there is focus on the earnings and individual companies that are coming out this morning. switching to the boards. let's give you a picture of the individual indices. ftse mib is down .50%. dax is no surprise as well. the german index under pressure down .4%. bayer down 5%. cac 40 is up .10% this morning.

we see the auto names coming off and picking up in the french index. the ftse 100, the relative out performer, up 18 points. i mentioned the bank of england is in focus on thursday with the tone and language are from the bank is key for direction. in terms of the individual names within the basket, we are seeing a bounce in oil given some of the geopolitical developments out of the middle east. that is one of the reasons we are seeing the bounce in the oil sector today. let's switch to see where leadership is coming from. oil and gas is leading the charge up 1.3%. a lot of the oil and gas companies are within the ftse 100. healthcare is up .50%. the relative defensive telco down .20%. autos coming off .23%. that is a knock off effect from the negative price action

following on from tesla last week and the disappointing couple of days of trade. switching to the european yields. you can see that we are bouncing a bit today. ten-year bund is three basis points lower. ten-year gilt is firmly at 4%. ten-year btp at 4.7%. we had comments from the french governor over the weekend. he suggested that they could cut rates at any point this year. this is coming after a noncommittal ecb last thursday. that is not stopping the market from anticipating an accelerated pace of cuts through 2024. speaking of other markets, this is the picture for u.s. yield curve. similar to european markets, we are seeing a rally in u.s. fixed income. the two-year note is down 0.34%.

to recap the data from last week, the fed preferr red measu of inflation moved below 2.9%. core pce which strips out food and energy grew 2.9% in december versus a year ago. > signs of cooling inflation will lead the talk at the fed meeting. close to 50% of market participates are pricing in a rate cut in march. people are very much looking forward to hearing what will come out of the fed meeting in a couple of days time. we have kieran from wgmcio is here with me on the show. let's start off by taking stock from the two key data points

from the u.s. last week. the first was that surprisingly high gdp print alongside the softer than expected pce number as well. many people are saying the immaculate disinflation scenario has occurred. >> it is looking like the goldilocks scenario is on track if you look at the data. strong retail sales and inflation continuing to the fall. the thing that could complete that will be this week when we hear from thefed and hear about what they're thinking on interest rate cuts. if you get strong growth and falling inflation and rapid interest rate cuts from the fed, that is what it will take to move the market higher from here. >> what i found interesting is the market is priced for 50/50 chance of a cut come march. it doesn't feel that long away. we are talking about six weeks until we get to march. the year is moving quickly.

what do you think would prompt the fed to go for a cut? things have to deteriorate rapidly for them to start with the cutting cycle in march. >> that is why listening to powell is so important this week. you can say everything is humming along just fine and why change anything and on the other hand, inflation has now fallen close to the target. is it time to refocus away from inflation and tackle growth risk? if you look at the state level, you see unemployment pick up in a number of states. the fed may be wary of that and shift away from inflation and shift to growth. >> do you anticipate how much cuts will be met this year? >> the market is pricing just over five. it is important to keep in mind that is a mixture of those expecting three or four and a soft-landing scenario and some pricing in six or seven or eight

in a hard-landing scenario. we think four is most likely. we are expecting a soft landing. we think that will be the right level to support the market. >> what do you make of the earnings season so far? we have a lot of the magnificent seven reporting. of course, we had tesla last week which set the tone for many of the automakers with disappointment. chip makers are reporting this week. there is hype around a.i. not all are geared toward a.i. would you say the bar is pretty high to beat at this point? >> we have seen a sharp rally in the tech companies and the high-profile disappointments in the last week. our view is the earnings season has been pretty good. 80% of companies beating by 4% or 5% on average. that is consistent with high single digit growth for the s&p 500 with earnings. on tech, we have to see with the magnificent seven or many reporting this week.

nvidia doesn't come out until mid-february. i think everyone will be trying to judge what the systemiconduc results mean for that. >> i guess what i'm trying to figure out is what will derail your bullish sentiment? would the fed decide not to cut? is it that earnings start to di disa disappoint? is it a left field surprise with the inflationary pressure with the geopolitical reasons or further supply shocks from the red sea? >> the goldilocks scenario mean it could up 6%. the economic weakness is one we are watching out for. it is on the robust track at the moment. but if we see the sharper downside, that could come. on the inflation side, we see it

start to tick up again and we talk about the fed staying on hold or hiking again and that would be negative. to highlight on the tech side, we like the sector. there is a lot of potential in the a.i. story, but it is running sharply. there are signs it is overbought. some signs of consolidation are possible in the next few months. >> in terms of market instruments, do you have a preference whether you want equities on or fixed income? >> we think the balanced portfolio is good. the margin, we prefer bonds over equity. if you look across the potential scenarios that could happen from here, upside, base case, down side, bonds can fare well. they would rally sharply in event of recession. the fed is likely to cut rates. bonds can do pretty well across all scenarios. equities, it looks good base

case, but would fall in the economic downside. asith many things, equities and bonds is key. >> it has been a big week for the fed as well and bank of england on thursday. who is likely to start cutting interest rates first? >> i think the fed is what the market is pricing as early as march. it will be interesting to hear from the bank of england as well. if you look at the economic situation in europe, that would suggest you get interest rate cuts faster. i think the comments from the central bankers in europe is hawkish over what we heard from the fed. this week will shape the direction from the fed and bank of england. we think the fed moves othearli. >> the economic situation has not been that helpful at the

beginning of the year. wonderful to chat. thank you for joining me on the show. kieran from ubs. ecb governing council member says the central bank should cut rates sooner rather than later telling policymakers don't need to wait for the wage data to understand from the path of inflation. we heard from a number of members. on friday, the french newspaper was told that the ecb could cut at any point this year. meanwhile, galhau insisted the officials need to see proof of slowing wage growth in the eurozone before interest rates can be lowered. we are looking forward to another big week for economic data. first reading of the eurozone on tuesday and the bank of england

on wednesday and thursday. and then the all important u.s. jobs report on friday. a big couple of days for markets coming up. elsewhere, shares of evergrande have been halted from trade after the company was ordered to liquidate from the hong kong court in $3 billion in liabilities. emily tan has this report. >> reporter: evergrande has been ordered to wind up by the judge who said enough is enough. chinese media is reporting that the company president said evergrande will cooperate in o accordance with the law. shares will not affect operations with the onshore and offshore units. the company will protect the business. a winding up order was filed back in 2022 and evergrande has

failed to make progress on the restructuring proposal since then. with these court hearings delayed seven times. the company has over $300 billion in liabilities and $240 billion in assets. this ruling will likely send ripples through the fragile capital and property market. some say this could be a sign that china is willing to let the property bubble burst. shares plunging 20% before suspended from trade. i'm emily tan in hong kong. back to you. >> big story overnight in asia. coming up on "street signs," today, hungary is threatening economic threats if it delivers for economic aid to ukraine. we'll have details coming up next. switch to shopify and sell smarter at every stage of your business. take full

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fears offes c efes escalation i middle east. a vessel carrying russian oil was struck by houthi militants. we will talk more about that on the show later on. in the meantime, angela merkel's old party launched a win over the weekend. this amid the growing scandal with the connections to the nationalist extremists. polling carried out over the weekend found that olof scholz's government has support of less than one-third of german voters. france stepped up security measures as paris is under siege in a tractor protest. the walkout stems from better pay and living conditions. over the last week, strikers

have set up road plblocks amid growing frustration. brussels warned it will c sabotage the hungary economic plan seen by the financial times. silvia has more. i had to read through the piece. it is pretty damning here. let me list them. they talk about wanting to explicitly target the hungary economy and imperil the currency and collapse the confidence to prove a point? >> i have to say we reached out to the european commission for comment. we have not heard back yet. i did have the chance to speak to a senior eu diplomat this morning who told me for a few days now it has been clear that the prime minister of hungary, viktor orban will not say yes to the 50 billion euro for ukraine

before the critical summit on thursday. here is the context to understand how we got here. there have been conversations on how the eu is preparing the financial aid for ukraine totaling 50 billion euro. hungary has so far blocked that. the summit in december had no breakthrough on that. they announced a new summit happening on the 1st of february. the idea there was to give the 26 a chance to come up with the solution and among that to give the money to ukraine or try to bring hungary on board. legally speaking, it is easier for the eu to disburse cash for ukraine if hungary is on board. that is why they are trying to bring them on board. we see an impasse here and it is unclear what will happen on thursday. >> i remember in december and you were at the summit and we

had the same discussions. it felt the approach was a carrot approach over a stick approach. what can they offer to hungary to bring them on board so viktor orban has no more reservations to provide aid to ukraine? this report from the ft suggests a different approach and they are putting hungary's back against the wall. what is the hungarian response? >> so far, the language from hungary is strong. i'm not sure if we have the statement prepared. i can tell you the political advisers and prime minister said the eu is blackmailing hungary and has nothing to do with the rule of law. they are also saying that whatever happens, change is needed in brussels. the language we get from budapest is strong. it is important to take a step back. we are approaching european elections and this rhetoric of eu and european institutions

against hungary is not helpful. whether it is true or not is not helpful as you look at the far right and other populist parties. >> they feel like it is a victory. they want to prove a point so much so and it will harm them and the unity of the eu which is the question that so many people have been asking for years now about how homogonous the block is and if they going to undermine a member state. it tells you how far down the tracks they are with the discussions not going anywhere. fascinating. let's see how it goes this week. silvia, thank you. also coming up on "street signs," ryan air is narrowing guidance after the staff costs. arabile will have the latest coming up next. hi, i'm jason and i've lost 202 pounds on golo. so when i first started golo, i was expecting to lose around 40 pounds

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the materials giant announces plans to spin off the american business. the krsceo says the move is the next logical step. >> we will take it to $20 billion of sales. we want to separate it to have more focus on the north american customers and getting the synergy from the supply chain. this will be a success story. a bruising for bayer shares after the german giant is ordered to pay $2 billion in the latest roundup weed killer ruling. philips says the unit will not sell new products in the u.s. until the consent decree items are met. the move will benefit the company in the long term. >> the first step was important and gives confidence to continue

to provide our innovations to a market that is in desperate need. we were discussing healthcare really is in a very deep crisis. and america blames iran-b iran- iran- iran-backed militia for the latest attacks. welcome back to the show. one of the top stories we are monitoring in the airline space. ryan air saw third quarter adjusted profit after tax slump to 15 billion euro amid rising operating costs. the irish budget carrier narrowed the guidance between 1.85 and 1.95 billion euro. the market is not taking it well in response to that revised

guidance. let's bring in john strickland from jls. wonderful to have you on the show. talk to me about the reaction we are seeing in the ryan air stock today. the market hasn't reacted well or taken the guidance on board because of the higher costs that ryan air flagged in terms of higher fuel costs, but also in terms of the ongoing costs on the back of industrial action. >> they haven't been hit by higher fuel costs. we saw the conflict developing in the israel and gaza situation with prices being on the day-to-day and ryanair was exposed to that. they had a spat with online

travel agencies. they have been in dispute about the selling practices and listed a number of the concerns about that today. a lot of those travel agents took ryanair off and that impacted the higher fare bookings. something they will say they will ride out. it is a relief to consumers, but took a hit in that time period. we saw costs rising and they have talked about the amount of disruption in the last year, particularly from the air traffic control strikes in france which impacted to and from france, but markets which r report to ryanair, such as spain and portugal. >> one thing i hadn't realized until this morning is ryanair operating an all boeing fleet.

that is interesting given how much boeing has been in the news the last couple weeks. many analysts were interested in seeing what mr. leary had to say. today, if anything, he has voiced full support for the company. we fully support initiatives that dave hcalhoun and david wet are doing. again, a very strong vote of support for boeing coming out of ryanair today. what ramifications does that have on both of these companies? the fact that o'leary is sounding confident in boeing, but the futures are linked to the future of the boeing fleet. >> boeing will be absolutely relived to get that support that

ryanair expressed for the management team of getting out of the major challenges. mike o'leary has expressed concerns of quality control at boeing. that was reiterated today. they have seen improvements in quality with the recent deliveries. they met with the team in seattle this month. they are putting their own engineers on the ground in seattle to oversee the production of the aircraft to make sure it is delivered with minimum delivery defects. they have expressed prior to the alaska air accident and concerns of delay in delivery. this is the boeing challenge and question of quality control. they are delivering aircraft late. ryanair expects at least seven of the summer deliveries to be late. they could experience increases in that because the faa and regulator in the u.s. is

dictated to boeing that they would not go for production increases until quality is satisfactory. boeing has been expected to ramp up production to all customers which would have eased delivery delays. that means capacity will remain tight this summer. ryanair needs to seeconfidence in deliveries of the aircraft with the required quality because it impacts the customer confidence in flying on boeing aircraft. at the present time, we have not seen a kickback with the u.s. airlines. including alaska airlines and united. putting those aircraft back in service now. when boeing had the 18-month grounding on the max 8 series, once that aircraft was recovered to a safe operating standard and

came back into service, we did not see customers reaction then. this is linked with the two companies. >> we're coming off a challenging seasonal period for the airline industry. the winter season. you add the geopolitics which was impacted by easy jet last weekend. what is the signal for the summer season and what have you learned from the airlines the last couple days with how the demand is shaping up over the summer? >> it is interesting we have the three major low cost airlines in europe. ryanair and easy jet and wizair. wizair is the most impacted by the gaza conflict. they found impacts on surrounding markets. they had to deploy middle single digit capacity at short notice

on the ground. thatimpacted strongly the loss with wizz reported last week. easy jet has exposure to the israeli market. they had to take a hit in results. wizz did not have to do the same with the capacity deployment. r r ryanair is talking more optimistically as well as easy jet which have the most exposure to the summer holiday markets in key booking season for those destinations. they are reporting the fallout from the strong bookings. there is a current quarter of trade which is so far so good. it is quite early. it is a key time for booking into the summer.

we are nowhere near taking a substantial al chunk of capacit. it looks broadly okay. all carriers are commenting performance will depend on any external factors with the geopolitical situation. the question of aircraft delays will keep capacity tight. ryanair wishes wizz air sees a flatter capacity. it will be called for a high single digit growth. >> the capacity always is an issue in the context of airlines. john, thank you for joining me today on the show. john strickland from jls. coming up on "street signs," a drone strike kills three u.s. members in the middle east. we will have the latest from the region coming up next.

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welcome back to the show. three u.s. service members have been killed and at least 34 injured after the drone attack

on the military base in jordan near the country's border with syria. president biden said this is the first deadly strike on the u.s. forces since the conflict in october. let's get out to nbc's brie jackson who has more. brie, give us a sense of the white house response to this attack. >> good morning. some lawmakers are pressing president biden to take action against iran for backing the mil militia. president biden did call for a moment of silence during the campaign stop in south carolina sunday. in a statement, the president says the attack was carried out by a radical iran-backed militia group. this attack marks the first time

u.s. service members in the middle east were killed in strikes since the israel-hamas war began. the u.s. says it will hold those responsibility to account and time of its choosing. there is pressure on the biden administration to stay steps over the deadly strike. >> brie, thank you for the report. let's bring in dominic pratt. senior analyst. thank you for joining us on the show. just building up on what my colleague brie was saying over the response by the white house and the pledge to hold those responsible to account. in what format can the u.s. do

that short of a direct strike? >> it is a good question. thank you for having me. the main path it has now to respond to the attacks to carry on the trajectory it has been on with jordan's conflict. striking iran directly would be costly and risky for the u.s. stopping short of that approach, they are likely to respond to continue to an that ttack in ir syria. as you mentioned, by non military means. sanctions by iran. we already have a range of sanctions on iran, but they could be expanded further to call for support of the attacks taken place. >> dominic, why had the iranian and iranian-backed militias been stepping up with the pressure

and the u.s. allies on the commercial vessels? what are they trying to achieve if not goading the u.s. into response? >> the main objective is to actually try to encourage the u.s. to withdrawal from the countries. the u.s. has 2,500 troops in the area. syria has 900 troops which is part of the similar operations to remove isis. these groups have sought removing of the u.s. and there is pressure on the government to force withdrawal and drawdown the coalition in iraq. there have been a number of attacks in the effort to encourage them to leave. the militias can expand influence in the con tries. th countries. this is the u.s. support in

israel to launch attacks since the war began in october and this is a means of pushing the u.s. out to inflict casualties so they withdrawal to allow the space for iran to bolster those countries. >> we are in the middle of the u.s. election season. there's been a lot of rhetoric in the last 24 hours with former president trump who is quick to blame president biden for lapses in security in the region. let me ask you a question that goes back a couple of years now. how do you think iran's ambitions might have been different had the u.s. not pulled out of the jcpoa? did that contribute in allowing them to feel emboldened to go along with attacks like these via proxies? >> i believe it did.

there was never it -- the jcpoa did not remove the tensions, but it cooled them a while and it allowed them to continue with the economic system which would address the domestic problems with hyper inflation and monetary policy and all sorts of economic problems. withdrawal from the jcpoa has fueled the tensions and given the iranians a sense they have to respond in-kind to the u.s. economic. it has driven up enough with the attacks. these attacks were going on before the war in gaza and iraq and syria. the withdrawal from the jcpoa eradicated the lines of communication or the goodwill established prior to the withdrawal. >> let me ask you this, in the absence of the detane or

cease-fire in the israel-hamas war, is there other issues we need to worry about with the mic militias? >> as long as the war continues, we are likely to see this maintain positions. the houthis in particular have stated attacks on shipping is a direct result of the war and u.s. support for it. it is the same in iraq and syria. as long as this war continues, we will see an escalation of the attacks. the attacks will carry on which broadens a risk, but there will be an escalation like the one with the attack on the base in jordan. >> i'm getting into details here. the history is also very important, especially in light of the more recent surgical

attacks by israel and the deputy hamas leader in beirut. we saw a couple of years ago the u.s. which did something similar when they took out one of the lead iranian military officers at the time. yet, there hasn't been that many consequences since. not much of an impact on iran on its ambitions since the taking out of soleimani. what is the sole purpose of the strike? >> i believe it is a means to attempt to counteract iranian influence. they have not been massively successful in the discouraging of the ambitions. it provides disruption to the revolutionary guard. it did setback the operations

slightly. it is a means in which the low-level tit-for-tat conflict would continue in the region without a prolonged costly interstate conflict between the two. >> clear. dominic, we really appreciate you coming on the show. fascinating to get your pe persp perspective. dominic pratt, thank you. the mounting pressure of president biden to respond continues ahead of the election campaigns. nikki haley finished a distant expected to donald trump in the new hampshire primary told nbc's "meet the press" said she is committed to staying in the race. >> i need to do better than i did in new hampshire. this is a building situation.

it is not about which state you get and don't. >> do you need to actually -- >> i think i need -- >> you say you need to do better. don't you need to win your home state to show you can win a state and put some delegates on the map for yourself? >> we've got 17 delegates. he has 32. that's pretty good to start. what i think i need to do is i need to show i'm building momentum. i need to show i'm stronger in south carolina than new hampshire. does that have to be a win? i don't think that necessarily has to be a win. it has to be better than what i did in new hampshire. it has to be close. that's what we're focusing on. if we win, great. if not, we have to show we are continuing to narrow that margin. to give people in super tuesday states need to have a reason for us to fight on. let's go back to the markets. thursday is the bank of england and friday is the earnings with the magnificent seven reporting this week.

over here in europe, the headlines this morning have been dominated by individual companies. we were talking about holcim which is the best at the stoxx 600 this morning. on the flip side, bayer continues to be setback by issues over its weed killer and legal cases that have just continued to mount over the course of the last couple years. the stock is down 4.5% today. one of the reasons why the dax is weaker down .60%. cac 40 is trading the flat line. we are seeing a bounce in commodities. oil is putting in a good session for the equities names and not in spot space. we have the likes of crude and brent trading around .40% weaker. it was a strong week for oil last week. let's switch to yields. we are seeing a bit of a bounce this morning in terms of rates and where they are trading.

2.24% for the bund. ten-year btp at 3.75%. perhaps in response to some of the dovish comments that came through which we spoke about earlier on the show. big dove on the ecb committee saying they don't need to wait to see the inflation data in april to think about cutting. the french governor saying they could cut at any point this year. within of the last half hour, we got comments from kazimir, one of the hawkish members of the committee, saying the next move would be a rate cut and it is within our reach. rate cut in june is more probable than april. the exact timing to the decisions impact means patience is essential before the decision. ecb is not behind the curve. it is the market getting ahead

of events. very interesting comments there. one last thing, we do not yet have enough information to make a confident conclusion. that is one reason we see a y in european fixed income today as the markets digest a lot of the comments from the ecb officials over the weekend. switching to u.s. futures. here we are talking about market digestion. we had several data points suggesting that the u.s. economy for now is doing all right. that gdp figure higher than expected. pce numbers are moving along lower with the disinflationary trend and whether or not jay powell will signal they are ready to cut. the market priced 50/50 for a rate cut as soon as march. many people are saying that when they do start cutting, it will

be april at the soonest. it is a very busy week in terms of the earnings season this week with nearly 20% of the sa&p 500 reporting. we have boeing's numbers under scrutiny amid the fallout from safety concerns. thursday has big tech names with meta and amazon and bnp and exxonmobil which closes out the week. that is it for the show today. i'm joumanna bercetche. "worldwide exchange" is coming up next. why choose a sleep number smart bed? because no two people sleep the same. only sleep number smart beds let you each choose your individual firmness and comfort. your sleep number settings. it's so smart, it actively cools and warms up to 13 degrees on either side for your ideal sleep

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it is 5:00 a.m. here at cnbc global headquarters and here is your "five@5." we he start with stocks pushing into positive territory. we have breaking news this morning. a hong kong court orders evergrande to liquidate. also, in the middle east, regional risk continues to rise after the attack by the iranian-backed militants claims the lives of three u.s. service members. united