♪ welcome to "street signs." i'm carolin roth and these are your headlines. u.s. president joe biden bows out of the presidential race and backs kamala harris. and u.s. futures are unfazed and top leaders stop short of backing her candidacy. china surprises markets are rate cuts as the country's

central bank steps up support for the flagging economy. and ryanair shares slump after missing earnings forecast and weaker summer fares dragging the carrier lower in early trade. good morning. let's get back to the top story. joe biden has ended his bid for re-election drawing in line on his 50-year political career. the president endorsed kamala harris to take his place at the top of the democratic ticket saying it's time for the party to come together and beat trump. former president bill clinton and one-time presidential nominee hillary clinton echoed biden's endorsement. barack obama stopped short of giving harris his endorsement,

but has confidence the leaders of his party will create a process from which an outstanding nominee is he is v revealed. the rules committee of the democratic national convention, which sets how and when the party will choose the nominee will meet on wednesday. alice barr files this report. >> reporter: a new and uncharted chapter begins in a campaign like no other. following weeks of pressure after the disastrous debate. the president announcing on x, while it has been my intention to seek re-election, i believe it is in the best interest of my party and the country for me to stand down and focus solely on fulfilling my duties as president for the remainder of

my term. one of the closest allies, chris coons, spoke out. >> he has an incredible legacy. >> reporter: mr. dbiden endorse vice president kamala harris with four months until the november election. >> we will put on full display our agenda for the american people and do what is necessary in order to leave that convention unified and get the job done. >> reporter: in her own statement, vice president harris thanking the president for his service and saying it is her intention to win this nomination and unite the democratic party to defeat former president trump as the race hits an historic re reset. propelling the nation into unknown territory. the delegates president biden won in the primaries do not

automatically transfer to vice president harris with his endorsement. while we are seeing a surge in support for her, someone else can challenge the nomination. two sources that spoke to west virginia senator joe manchin tell nbc news he is considering a run of his own. in washington, alice barr, nbc news. >> let's look at the market reaction. u.s. futures bouncing back from big losses on friday from the u.s. markets. the s&p and nasdaq posting the worst week since april. on friday, the dow tumbling 370 points. the dow jones industrial average now down 35 points. the s&p 500 is bouncing back 16 points. we did see dollar softness coming through today. it is not pronounced.

the dollar/yen is 156. let's take a look at the bond markets as well. not a lot of movement here. we are seeing bond prices higher. yields are a tad lower. the ten-year note is 4.21%. not a huge change here. let's unpack what all of this min means for markets with richard kelly. richard, great to have you on the show. we didn't see a huge market reaction here. would you expect a bigger one or do you think this is largely priced into the markets with biden stepping back and endorsing kamala harris. the writing has been on the wall for three weeks. >> the markets expected this to happen at some point. you didn't know the timing. there is a lot of talk of the trump trade. i don't think there is much of that in the market. there are still a lot of things to get there. this starts to increase the political uncertainty, if that's

possible. >> what is the trump trade? is it the stronger dollar? is it the russell 2000 booming which has unfolded in the last two days? the russell 2000 did not rally all the way through. there's conflicting messages too what can unfold. >> the three big ones are tariff policies and fiscal policies and the foreign policy. you have to wonder about the bull or bear with the growth. >> what do you think it is? >> i think in that case, it is a beer steeper. once all of the policies get in place. it should be a stronger dollar with the tariff policy in and of itself. the u.s. is more closed than europe or china. if the u.s. starts to increases tariffs, it tends to be negative

for the rest of the world than the u.s. it means central banks are easing. that feeds dollar strength. the modumodumodusomodusomod is vola volatility. that comes down to the inflation and growth that you get out of those policies. >> let's unpack economics here. we heard conflicting messages of his pick for vice president jd vance last week. let's talk aboutimmigration. >> that is the big one and most uncertain. trump said he wants the largest deportation in history. that goes back to eisenhower in the '50s. if you look at those numbers now and scale it to the labor force, that could be 3 million or 1 million. the reports up to 7 million undocumented workers in the u.s.

if you think about where we're starting, it is a tight labor market and difficult to find jobs. if you start to now tighten up that market, especially agriculture and construction, next would be manufacturing, those areas start to significantly boost inflation and wage pressures on the early stages and take the productive capacity out of the u.s. in year two and year three. it is inflationary up front. if it does help to reshift that growth to those in the u.s. >> what are we talking here? how many basis points are we expecting? >> if you talk only about growth, it builds over time. if you are looking at growth, it is anywhere from one or two percentage off growth. it takes longer there. that is where the bigger questions are. what other policies come in to offset that growth? just the immigration policy

itself, you have 150 basis points on inflation and 100 to 200 on growth. >> let's talk tariffs. we have a blueprint in 2019 and 2020 with the trade war. do we take that blueprint and apply it to next year? >> we don't take the blueprint, but take trump at his word. if you take that, the u.s. has been $3 trillion worth of imports. if you start off with 10% across the board, you are talking about $300 million in tariff revenue. there is some part of canadian and mexican trade not in there. that $3 trillion would shrink, but still $250 billion in revenue that come in. immediately, that is another increase to inflation. you are talking about .50% or 1% increase in inflation. what happens on the retaliation?

that is where the u.s. takes a growth hit on the back side of it. it hadds to the immigration policy. the tariffs were twice the size when trump went through the administration. >> that means whatever comes now, it will have a bigger impact? >> it is much broader and harder to escape. >> quickly, what is the fed doing in all this? big hit to growth, but big boost to inflation? >> the fed is on track to start easing. if you had the change in administration, those are your policies. it is probably the fed on hold for the first half of the year with the risk they need to hike. if that pans out, they get easing in the second half of 2025. >> we have so much to talk to richard kelly who will stay with us. for the latest on joe biden's decision to step down from the 2024 race, head to cnbc.com. coming up on the show, ryanair warns of quote

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welcome back to the show. we're roughly one hour into the trading session. let's show you where the european trading is at the moment. the stoxx 600 is trading higher to the tune of .23%. we are bouncesing back from the worst losses from 2024. we are seeing some buyers coming back into the market. we have the big banks reporting and unicredit and deutsche bank and bnp paribas. some in the luxury space including lvmh. we have earnings out today. ryanair earnings came out today and they were worst than expected. the company posted a 46% fall.

that was well below estimate. the summer fares would be materially lower compared to last year even as demand remains strong. i want to show you the airline sector across the board. ryanair is dragging them all down. ryanair down 11%. lufthansa off 7%. easyjet is trending lower to the tune of 6.5%. let's get some instant perspective and analysis on this with phil lebeau from the farnborough air show. phil, it seems as they we are really seeing pricing pressures not just in your neck of the world, but also here in europe. >> reporter: that's exactly what's happening. because of that, because you had so much capacity brought into the system in terms of the number of basic economy seats in europe and north america, fares

have become depressed. look at what happened with revenue per passenger down 10% last quarter for ryanair. that's a direct reflection of fares that are down 15%. it doesn't matter that you've got an increase in the number of people who are flying. when you are dropping that much in terms of your fares and your revenue, you can keep adding as much as you want in terms of demand out there. it will just not make up for the losses that you're seeing in terms of pricing. that's going to be an issue that ryanair will would be grappling with this summer and maybe some time into the fall, in north america, you start to see a number of airlines pull back capacity come fall and then into the nd oend of the year. i suspect we're on the same ex extra jekt ri in europe.

>> we have so many coming to the u.s. european beaches are filled with americans. you can hardly get a restaurant reservation in europe anymore. are these airlines able to offset prices pressure with volumes? >> reporter: if you are international, you are. if you are ryanair, you aren't. if you look within the continent of europe, that seat is the bread and butter for ryanair. that is the pressure. so much capacity has come into the system, they don't have pricing power. that's where you are noticing the impact. you are right. for the transatlantic travel, the numbers are great. you look at delta and united. their transatlantic revenue numbers were extremely strong last quarter. up 8% or 9%. if you don't have the international component to the network, you are paying a price.

>> there is a taylor swift effect as well for u.s. travelers coming for the concerts. phil, stay with us. the landscape looks different going into this year's farnborough air show as the industry grapples with supply disruption and delivery delays. neither planemaker is expecting a flurry of orders with airbus citing supply challenges. boeing is dealing with a safety crisis. let's get back out to phil to walk us through the details. when it comes to the outlook for the two planemakers. >> reporter: backlogs are at record results. if you are an airline or a leasing company putting your aircraft into the fleet of airlines around the world, you

already placed your orders. there is not great demand which is why we won't see a huge number of orders this year. in fact, it will be very muted compared to last year. look at the trajectory over the next 20 years. the growth is still there. boeing out with the 20-year forecast and expecting the industry to need almost 44,000 planes by 2043. that forecast is an increase of 4.2% in terms of the number of planes needed compared to the forecast last year. you are looking at a time where the demand is greatest for single aisle planes. 70% will be narrow body aircraft especially in different regions around the world. growth in terms of aircraft needed will be up about 20%. all of this is the back drop for what we will hear from airbus next week when it reports its

first half results. as far as this show? i don't think we will hear a lot from airbus and boeing with the record backlogs they already have. >> phil, i really appreciate your insights and analysis. let's get back to the other moves that made news overnight. china central bank cut interest rates in a bid to cut growth. one in five year loan rates were lowered by the same amount. not a huge impact. shanghai lower by 1.6%. let's get back to corporate news. porsche could take a direct stake in varta. it is embarking on a restrurk turing process and considering two scenarios.

one including porsche. varta off 67%. porsche is up by 1.5%. ebury appoints goldman sachs for the public offering in london according to the financial times. the payments group is expected to be valued at 2 billion pounds. that is a boost to the fintech sector. and vivendi says the tv unit will be separately listed on the london stock exchange as part of the wider plan to split up the group. vivendi says it would have zero net, but could have a net debt of 2 billion euro once the listings are complete. and unilever started discussion of sales of the ice cream business which could be

worth 15 billion pounds according to bloomberg. possible bidders include advent international and blackstone. richard, let's talk about the ecb. the fed maybe a little more interesting because the market isn't quite sure whether we are going to be seeing two or three cuts. which camp are you in? >> two cuts. coming in september or december is the base case at this point. >> go ahead. >> there's still the risk there is from the fed. we almost fully priced in the september one with softer data, the risk is the data has been volatile, but there is a risk of backing off that. i think it is harder to get more cuts at this point. from the ecb, there is unanimity from the governing council. there is very little uncertainty of what is delivered. >> absolutely.

when it comes to the boe and also the ecb, service price inflation has been a headache. some taylor swift effect in the uk, probably, and very little visibility on the service price inflation can be contained. in the u.s., the biggest issue is shelter. that has recently come down. are you constructive on the shelter component? >> i think because it is computed in every economy. that side does seem to be on the back side trailing off over time. that is a more mechanical side. the services is what worries me more. goods inflation has been soft. maybe it bounces back a little bit, but far below target. some of the structure things like shelter in the u.s. will come down with the rental prices. that services side really comes down to the underlining demand. is the labor market still continuing to soften? it should scare you as a central

banker as you get stuck with higher inflation. you are coming off in aggregate. >> coming back to the european central bank and boe and ecb, how much visibility do they have on that service price inflation? obviously, it fluctuates quite a bit. it is sticky here. do you have to accept the fact it will be higher and you have to move on? >> you have to look at inflation in aggregate. the labor market in the u.s. has softened more than in the uk. there is an implication that maybe there is an ability in there. even there, it is a close call for august for the boe for how elevated that service is and should they wait more. if you are the bank of england and every other central bank start to ease, it is the first

cut and when you are ready to deliver the subsequent ones. >> based on the curve, do you think the market is too optimistic that the rate cut is coming in the month of august? >> that one is probably more of a coin toss. the market is for the easing over the six months. that is where is the implications. how much they can ease going forward, i feel more comfortable on that side especially talking about trump policies. if you have a trump administration with increasing tariffs, that is a negative for uk growth. i have a greater sense that the markets under pricing for markets in the uk. >> a big uncertainty with the european markets. we talked before about the tariffs and retaliation which is potentially coming from the trade partners, in this case, the eu. at what timeframe will the ecb look for the tariffs? they won't be put in place next

january if donald trump reenters the white house. for bureaucratic reasons might happen later in the year? >> it took trump a solid year plus to get there. they know how to do it and they know what to do. i think those things will come in the next 100 days. it will take weeks to get them through once they announce. within the first few months of the trump administration being sworn in. i think that is something for the ecb to address next year. i don't think the fed runs it. we still need to get through the election itself. >> absolutely. taking all of this into account, what is your outlook for euroeu euro/dollar? >> there is probably dollar strength. euro continues to lose ground as we are going on. you do get the dollar bid at the end of the year. i do think this is trading two halves. there is the trade that exists

up to the u.s. election. we see what happens. then i don't think there is a lot of trump trade. especially now the u.s. election is closer and areyou are talkin about fed easing. as you get past the election, if that is a trump administration, it is a dollar strength. if it is kamala or whoever the democrats pick, it is potentially dollar negative. >> and volatility? >> definitely a lot of volatility. >> richard, great to catch up with you. richard kelly head of global strategy at td securities. coming up on the show, joe biden draws a close to his half century in politics. we'll bring you the latest. that's coming up next.

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welcome to "street signs." i'm carolin roth and these are your headlines. u.s. president joe biden backs out of the presidential race. harris wins key early

endorsements and former president obama stopped short of endorsing her candidacy. and the central bank steps up support for the flagging economy. ryanair shares slump after the airline misses the forecast and warns of weaker summer fares dragging forecasts lower in early trade. all right. you probably know this by now. joe biden has ended his bid for re-election drawing a line on his more than 50-year political career after weeks of speculation over his age cognitive ability. hakeem jeffries strouck a tone n the issue. >> they are running scared because the focus is going to

turn back to project 2025 which is the trump plan to end america and our values and our path forward as we know it to turn back the clock. the focus is going to be on the extreme supreme court justices who ripped away reproductive freedom from the women of america. the focus is going to be on trump and his policies to enact big tax cuts and we will contrast that with our vision of putting people over politics and fighting for lower costs and defending democracy and standing up from a woman's freedom to make her reproductive health care decision and growing the middle class. >> the democratic national convention is set to begin on august 19th in chicago. there is no clear picture of what will happen. biden will release all delegates pledged to him, but it is up to the convention to decideto back his successor.

the issue is whether they endorse harris and risk a democratic vote or hold a selection process and open the door to potentially damaging in-fighting. the wall street journal reports that joe manchin is considering a run for the top job. republican nominee and former president donald trump criticized biden's presidency. he said biden had done more damage to the u.s. than any other president. his running mate jd vance accused harris of lying about biden's mental capacity and describing open border and green scam policies. elon musk reiterated his backing for the republican party saying on x that his smartest friends were excited about the trump-vance campaign. microsoft president brad smith praise

praised biden for his lifetime of public service. he will work with the administration for the rest of his term in office. democratic online donation processor actblue says $46.7 million was raised for the harris campaign and other democratic campaigns as of 9:00 p.m. eastern last night. that marks the platform's biggest fundraising day of the 2024 cycle. nbc's brie jackson joins us with more. brie. >> reporter: good morning. on sunday, we were told that vice president harris had multiple phone calls with president biden before he made the announcement he would not seek re-election and endorse her instead. harris placed calls to more than 100 party leaders and members of congress and civil rights organizations and more making it clear she plans to work hard to earn the democratic nomination.

all this comes after president biden made the announcement he is dropping out of the race. writing on sunday, i believe it is in the best interest of my party and the country for me to stand down. his decision follows weeks of calls for him to step aside citing concerns about his poor debate performance. the 81-year-old is offering his full support of vice president kamala harris to be the democratic nominee. in a statement, harris says i will do everything in my power to unite the democratic party and unite our nation to defeat donald trump. former president trump's team has been preparing to run against harris for weeks. >> brie, what are the chances of harris actually defeating trump? what are the polls indicating right now? >> reporter: well, in certain polls, it does have a close race there. it remains to be seen how we go

forward. we know in some cases trump is beating vice president kamala harris in the polls. they are fairly close. in some cases, she is closer than president biden was when it comes to that match up between biden versus trump when you compare the match ups. it remains to be seen. the numbers are close and this does change things around. will this energize other members of the democratic party now that kamala harris appears to be the frontrunner for the top of the ticket. it remains to be seen. >> all right. brie, thank you for your analysis. i appreciate it. a quick check of the market reaction. buyers coming back in after the steep losses on friday. the dow tumbling 370 points on friday. the s&p and nasra nasdaq with t

worst days in weeks. we saw indiscriminate selling in the russell 2000. the dow jones up by 17. still a couple of hours to go before the trading session. let's look at the forex. we saw dollar softness as joe biden dropped offut of the election. the dollar/yen is 156.87. we are seeing some mixed performance here in terms of bond prices. the two-year yield at t 4.951%. the european markets this

morning up 0.7% as far as the stoxx 600 is concerned. friday saw the biggest drop in 2024. the ftse 100 is up .50%. the cac 40 adding on more than that up 1%. the dax showing a similar percentage gain here two hours into the trading session. global cybersecurity agencies have warned of increased malicious activity as bad actors look to pounce on global i.t. outage. crowdstrike says a significant number of affected devices are back online, but some industries, including the aviation sectors face continued disruption. crowdstrike ceo told cnbc the company withdrew the software update as soon as it became aware of the problems. >> it initially went out and we started to see issues and pulled it back. not all of our customers are

impacted. those on linux are not impacted. as soon as we saw this issue that did not manifest before we rolled it out, we rolled it back. now we're dealing with the impact of the systems. >> i want to show you how crowdstrike shares are trading after the 11% drop we saw on friday and what we are seeing here if we can show you the hot board. down another 3%. there you go. crowdstrike off another 3% after the big losses, understandably so, that we saw on friday. let's get more analysis with this from matthew hodges. arjun also joins us for the conversation. matthew, thank you for your time. how long until everything is fixed? days, weeks, months? >> it could be a number of days. some of the machines, you physically have to get to fix the underlying problem.

it could be weeks or months. >> what have we learned in this? we know the world is more interconnected. is it too interconnected? should we decouple from each other once again? >> i think that's a good way of putting it. we are seeing the perils of centralization. we druifted putting too much control in third-party organizations and we ended up with disasters like friday. imagine this was a real cyber attack? imagine this was used as a mechanism to put ransomwares on pcs rather than a crash. >> matthew, we talked about the need to diversify supply chains across the board and i.t. is no different from that. how much do you think this is a wake-up call for businesses to diversify effect toughly their i.t. stack within their organization and how easy is it

to do that? >> it is a clear wake-up call. the angle is through communication where so many use teams or slack to communicate today and put all of the core communication capability behind a single american vendor who could go down in the manner we have seen crowdstrike take out all of these pcway from teams i a hard challenge. really, it is up to the industry as a whole to make sure that the decentralized alternatives are available to run their tools and pairing it to run inside their one countries so you don't end up in crazy situations where sweden or france or germany is dependent on a u.s. tech company like microsoft or crowdstrike. >> how much as you look at it, as more businesses talk about digitize and move to the cloud,

how much do you think this moves the needle in terms of business talking about things like on premise data centers and servers as well as the need to go with organizations in countries like data sovereignty? >> this swings the needle back the other way. we have seen the swing to the cloud many because it's a great way for vendors to locks customers into the cloud products over the on-premise ways. in practice, you need hybrid. it is fine to use a cloud -base solution, but something running in your country or offices or own capabilities is a really important thing to still have s an option. microsoft is killing off describe for business and trying to get everybody to move over to

teams. we have the alternatives to have people run their own communication if they need. >> matthew, digital sovereignty would be a dream come true for many. i expect we will see more of a regulatory and political push here. i want to talk about the cyber threat and we talked about this earlier on the show as we introduced the segment here. do you expect that more cyber threats are coming because some bad actors are i mpersonating microsoft and crowdstrike here? >> yes, unfortunately, this is a wake-up call for the bad guys. if they have seen how vulnerable a system can be to a simple content update, anti-virus update, i imagine the bad actors are thinking how else could we exploit this supply chain risk and also just simple social engineering where bad actors

could offer to help fix your machines and leave them in a state which is worse than the first place. >> matthew, i suspect this is not the last time something like this is going to happen given the state of the i.t. infrastructure globally. as you assess that infrastructure, where do you see some of the biggest vul vulnerabilities currently? >> it is certainly true the risk of the security projects like crowdstrike to attack the people it is meant to protect. it was turned to fight the other way. we definitely see a risk of communication. as i said, it is far too centralized and it is only a matter of time before somebody breaches huge sets of history from governments or companies a bit like the email con vversatis

impacting microsoft at the moment. that is a reality check for everybody who thinks it is okay to communicate on a cloud communication system. >> matthew, thank you for your time. matthew hodgeson. thank you. stick around, arjun. the reputational damage is now settling. do you see a bigger kind of fallout in terms of the legal i am reimplications? >> businesses will look at what will happen from friday and how much this cost our business and is crowdstrike here libel for some of the costs that the businesses incurred? you will see a lot of legal action around businesses as they assess the impact on what happened friday on their companies. >> cyber insurance doesn't cover this. this wasn't a cyber incident? >> this is the chat about regulation. regulation is in place from the

u.s. and eu where large organizations in the event of a data break or hack, need to disclose a level of the breaches. this was a different kettle of fish. this was a botched software update. there is not any kind of regulation around this at this point in time. where does it fall in terms of insurance and those recouping costs? >> arjun, thank you so much. nvidia reportedly working to create a version of the flagship a.i. chip for the china market. that is according to reuters which says nvidia is working with one of the distribution partners on the launch and distribution plan tentatively called the b20. still coming up on the show, this is a good one. we bring you the behind the budies look of ferrari's new

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when we're young, we're told anything is possible... ...but only a few of us go out and prove it. witness the greatness of anna hall on a connection worthy of gold: xfinity mobile. only xfinity gives you the most powerful mobile wifi network, with speeds up to a gig in millions of locations. and right now, get up to $800 off the new galaxy z flip6 and z fold6 when you trade in your current phone. get the fastest connection to paris with xfinity. welcome back to the show.

ferrari is set to reveal the first ev by the end of 2025 before the sales start the following year. the super carmaker has opened an e-building. charlotte visited the factory and joins us now. what a tough gig, charlotte. >> there has to be some perks in the job. it is really fascinating to see the strategy around ferrari, of course, the ceo joined in 2021. in 2022, he took the approach to make the luxury carmaker carbon neutral by 2030 and moving to more hybrid and ev as part of the offering. targeting by 2030 with the m models they will offer and 40% hybrid and 40% ev. they already have highybrids ou

there. there is a three-year waiting list for that model. they will unveil a new ev that will go on sale by 2026. 200 million euro invested. i had a chance to catch up with the ceo where the first ferrari came out in 1947. every single ferrari built since then has been coming from that plant and i asked him why ferrari is going electric. >> reporter: a brand recognized by style and sound. ferrari, the historic italian carmaker, famous for the roaring engines and slick style is opening a new factory here and this could be a game changer for ferrari and the ev industry more widely. >> the building is not just a building. it is our ability in the

industry. there's a really big blend of solutions not just for our production needs, but also for the future. all of the engineers to dream of the ferrari of the future without manufacturing constraints. >> reporter: a fully electric ferrari is expected to be released by the end of 2025. >> i think we need to keep our clients engaged with their emotional side. to do this, you can do in different ways. in the past, we were doing with it cars and now we are looking at the emotions of the client with the hybrid. in the future, we offer the possibility of the emotional feeling of engagement with

electric car. it is a way to show that emotion can come from this technology. >> reporter: by 2030, the luxury carmaker reports that 80% of the portfolio will come from electric and hybrid models. >> if it wanted, it could continue selling internal combustion vehicles, but the fact it is pivoting to electric vehicles, shows they want to do this and there is a consumer appetite. >> reporter: the ferrari bet on evs is coming at a time where other carmake arers evs is coming at a time where other carmake are more cautious. can ferrari convince the diehard petrol heads go green? >> the fact you have a company so rich in heritage with the ferrari sound pivoting toward selling electric cars does

showcase why electric vehicles are so attractive. you can get the same ferrari driving capability with the electric vehicle driving performance. the acceleration is better. >> reporter: here at ferrari, it is impossible to acseparate history from heritage. nothing encapsulates that one moment when the car starts and you hear its roaring engine. will ferrari be able to produce this motion? >> we are sitting in the car. the 296. 2.9 litres hybrid. it means you have the internal engine and electric engine. it's nice. >> very nice. >> reporter: car enthusiasts will have to be patient before they can take the new ferrari for a spin. waiting lists are already long. the ceo says this is just all

part of the ferrari experience. >> so, it is interesting to hear him saying they don't need to do that for ferrari. consumers will say you buy ferrari when you go electric. we know ferrari is a micro producer. 30,000 cars last year. it allows it and not about volume, but making more money on a single car. when personalization is a big thing of that and electric is more expensive. making that switch is good for the strategy. we don't know the price of the new ev unveiled next year. it could be 500 million euro. we have to wait and see. it is interesting to see what it means for the ev industry at large having this iconic brand which is all about performance is a key test for the ev market and the secondary market. we know ferrari retail value is like hermes. it resells well. can the ev do it as well?

>> let's face it. the typical ferrari buyer doesn't care about the price. i don't think he will be shocked by the price tag of this. charlotte, thank you so much for this. quick check of the european markets. not quite ferrari, but gains with the cac 40 up 1.2%. the european markets are bouncing back from the big losses we sustained on friday. that was the single biggest drop these markets in the year of 2024. u.s. futures look like this. the s&p 500 pretty much unfazed by biden stepping away. the nasdaq is up by 112 points. off the highs that we saw earlier. by and large, we are seeing buyers entering back into the fray. that's it for the show. i'm carolin roth. "worldwide exchange" is up next. ugh. ah! come on. step three.

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world markets reacting to president biden ending his presidential campaign after pressure from his party. biden now endorsing kamala harris and his war chest. reactions are pouring in to the historic political development. democrats are looking to next month's convention and we look at the trump trade and the big week of earnings. it's monday, july 22nd, 2024. you're watching "worldwide exchange" right here on cnbc. ♪