that's all for this edition of "dateline." i'm andrea canning. thank you for watching. ♪ welcome to "street signs." i'm carolin roth and these are your headlines. the s&p 50 sees the best day since february and the ten-year treasury yield touches the lowest level since march as jay powell lines up the first rate cut of the cycle. >> the question is the totality of the data is consistent with rising inflation and maintaining a solid labor market. if that is met, the reduction of

the policy rate could be on the table as soon as the next meeting in september. shell posting a profit and buyback as it dips by a quarter. the ceo lays out a plan for net zero amid shareholder pressure. >> we are absolutely committed to the 2050 target, but we recognize the trajectory is not a linear one. we recognize there are twists and turns. soc gen beats the forecast as the unit out performs, but the net interest income forecast sends it lower in early trade. auto stocks in reverse after volkswagen and bmw miss second quarter expectations and daimler misses forecast revenue. we speak to the chair martin daum later this hour.

good morning, everyone. we have a lot to get through. let's kick you off with the data from the eurozone. the manufacturing activity not looking too pretty mired in the month of july among weakness. output declining at the fastest pace according to the survey. the manufacturing pmi held at june's 45.8 in the month of july ahead of the 45.6 preliminary estimate. we are seeing a little bit of softness with the euro/dollar. the dismal numbers from the german economy. no surprise there. also given surprise contraction with the second quarter gdp earlier this year. when it came to the french number, we still had weakness. the german number is really

taking the cake. let's show you what european markets are up to this morning because obviously we saw the strong hand overcoming from the u.s. and also asia. we couldn't pick up the rally here in europe. i'll tell you in just a second as you heard it in the headlines. i want show you the markets one by one. switzerland is not trading today. it is out for public holiday. happy birthday, switzerland. the dax is off 1.2%. the auto stocks under performing. the ftse mib is off 1.3% and the ftse 100 here in the uk is holding just below the flat line. we have the boe decision later on today. as i mentioned, a lot of earnings out today and some of them not well perceived. bmw and volkswagen are down heavily, especially down in munich. 4.75% when it comes to bmw there. shell is doing a bit better. we'll get to that in a second. when i show you the sectors, no

surprise either. we have the autos down 2%. the banks also off 2%. we'll talk soc gen later on. retail is doing a little bit better. why? raising its outlook. let's switch to u.s. futures. we are expecting a mixed start to the trading session. s&p 500 off 17 points. the dow jones could fall 60 points. nasdaq seen higher by triple digits. this is after markets rallied yesterday after the fed meeting. let's stay with that. the federal reserve held rates steady to 4.25 to 4.50 range. the fed will hold its next meeting just seven weeks before the presidential election with markets now pricing in a 100% chance of a cut and more than a

75% chance the fed will pare back its benchmark rate by 75 basis points by the end of the year. speaking to the reporters after the year, fed chair jay powell said the cut could be on the table at the next meeting. >> we made no decisions about the future meetings, that includes the september meeting. the broad sense of the economy is the economy is moving closer to the point at which it will be appropriate to reduce the policy rate. in that, we will be data dependent, but not data point depe dependent. the question will be whether the totality of the data and evolving outlook and balance of risks are consistent with rising confidence on inflation and maintaining a solid labor market. our reduction of the policy rate could be on the table as soon as the next meeting in september. >> a quick check of u.s. markets in the aftermath of the fed

meeting, the s&p 500 also up by 1.6%. we saw the nasdaq seeing its best day since february, but there's been a lot of volatility especially when it comes to the big tech names. i want to show you those right away. we saw nvidia bouncing back up by 12%. again, volatility trading. microsoft down 1%. apple up 1.5% and alphabet trading higher. meta up 2.5%. shares higher by some 7% after hours. we'll talk more about that later on during the show. when it comes to treasuries, bond the yields with the biggest decline in 2024. the ten-year yield sitting at 4.05%. this, obviously translated to some of the dollar crosses. we did see dollar weakness on the back of the fed decision. today, dollar is higher against the euro by 0.3%.

107.95. sterling-dollar in focus ahead of the boe decision. let's focus in on the asian trading session with a mixed picture. s&p 500 with a strong gain of 0.3% in comparison to the rest. an lot of ossilation on the boe. let's look at the uncertainty here with jp ong. >> reporter: good morning out there in europe, carolin. japanese markets in tokyo are one to watch after the yen strength after the surprise hike policy rates to tighten policy. we saw short yields on the curve or continue to rise for the most part. it is not but a few things in the quarterly report that they expect wages and inflation to

overshoot on the upside and the boj governor ueda saying there is room to hike rates, but they will be data dependent. it is not just the bank of japan, but chair jay powell said there may be room to consider a rate cut for the september meeting. that gap between japan and the united states could continue to narrow and thus put less pressure on the japanese which has seen significant weakness in the last 12 months. we saw it below 150 against the u.s. dollar in today's session. ag again, a stronger yen is not seen as beneficial to the stocks which is why you see the nikkei 225 pull back. we saw toyota release the first quarter operating profits meet expectations and grow by 17%. they actually saw operating profits by $2.5 billion with the weaker yen.

if we start to see the yen streng strengthen, could we see the removal of the booster for the toyota earnings? that stock actually pulled back. one trading house saw 1 1.9 billion yen. a lot of these exporters dependent on the weaker yen could see further pressure with the yen at all-time lows. one stock tracking today is advantest. the nikkei flopped, but the shares surged after they raised their operating guidance because they are expecting to sell more chip equipment to the chip makers. they are a sight for sore eyes and a very sharp contrast actually against the big selloff in japan which was the market to

watch this thursday. carolin, good morning. >> good morning and good afternoon, jp. let's get more with our guest here. thank you so much for coming in. let's talk about the fed. obviously, no change yesterday. the market behaved yesterday. we are fully pricing in the first cut to come in september. if we put this in perspective, the fed pulled off this incredible feat. soft landing. did not break the labor market. inflation is way down. can it sit back and relax now? >> for me, the main message from the fed meeting yesterday was the balance of power has shifted. i thought his comments around the way that the fed focuses on one part of the mandate depending on which is further way from target were really significant. for the past two years, the fed has been solely focus ed on inflation and rightly so.

they got close to 2%, but far, far closer. now the message from powell is we are starting to watch the labor market instead. as the balance shifts, this tilts the fmoc. he kept having to bring himself back to say our job on inflation is not done. you can tell the focus is changed and it is right first of all that are youyou are looking september cut. the question is how quickly can they go out to 2025. >> what is being priced into the market right now, you seem to believe there's a big misalignment. why? what does it mean for duration? >> so we've got 150 basis points of cuts for the fed by june of next year. in my view, the quarterly cuts is the view. 100 basis points of cuts over the next 12 months. the reason for that is the u.s. economy is holding up well.

the message from powell is yes, we need to cut, but we only exaccelerate once we see the lar market roll over. it is normalizing and cooling, but growth is still fine. therefore, at the back of the fed's minds, they will be cognizant if you go too quickly and pull in looser stimulus after the election in november, that forces the fed into a tricky position. they are more gradual and look at bond yields and think we have gone too far in terms of how quickly investors are anticipate anning rates come down. >> can we talk politics here? you brought tit up. you brought up fiscal and the next meeting is in september before the u.s. election. are they impressed or, you know, bias in any way, shape or form?

>> i think no in september. what jay powell is saying if we get one or two dodgy prints between now and the september meeting, we're buying wiggle room to ensure we can cut rates in september. i don't think the election plays into their thinking at all with the september decision. rather when you look further out, you think about the potential for the combination of tax cuts, tariffs also on the list, changes on immigration policy and another consideration for 2025, all of that leaves the u.s. economy starting to shift the balance where the fed will personally struggle to deliver more than the quarterly pace and shorter growth. >> let's look at the month of july. big story of july was the rotation coming out of the tech space specifically the mega caps into small caps. small caps having a bumper month of july up by more than 10%.

yeah, microsoft, 12-month basis, still looking good. meta still up 50%. the shine is starting to come off. now you think the rotation into small caps, that's not the real story. what's the real story? >> for me, the rotation continues as earnings broaden out. there are much better opportunities within the rest of the s&p 500, call it the s&p 493. there are in the small caps. the reason for that is about what you need to see small caps continue to perform well. you don't just need rates to come down, but you need growth to hold up strongly. i think the balance we are hearing from powell here is yes, rates are coming down, but we're only going to accelerate the path of cuts once we see the labor market rollover. i think in this context, you want to be earning more with the equities and that is large over small. we are still late cycle. it will be very unusual for the rally to sustain over a 12-to-18

month period. >> a final call from you on the european equity markets? we have a boe decision today. how does that play? >> the boe will cut today, but the bigger picture for the uk is about the consumer that's finding its feet and the discount. the thing i always get told on the uk is it is cheap for a reason. it is full of banks and energy. but when you look at the sector by sector, it is trading to the u.s. counterpart. it is still cheap. find a point and think about 2022. think about the way the ftse 100 was defensive in the higher yield. if we see volatility and treasury yields pushing higher as the fed is forced to walk

back, the ftse is a healthy play in the global ferportfolio. >> the ftse 100 is a hedge. thank you so much. shell has posted second quarter adjusted earnings of $6.3 billion. that's a 19% drop on the previous three months, but still ahead of forecast. the oil and gas giant announced a share buyback program of $3.5 billion offver the next three months. the ceo told this show the company is still committed to the 2050 net zero targets, but added the 2k3group's focus is t add value. >> we are committed to the 2050 target, but recognize the trajectory from here to there is not a linear one. there will be significant twists and turns. we exercising kpa patience to ce

value today and in the long term. we believe in the energy vectors. oil and gas and lng as well. we look to potentially continue to grow our low carbon vectors as well. you mentioned, steve, our r rotterdam facility which we put on pause which is a challenged set of market conditions. while we put it on pause, we still have 9.7 billion litres we sold into the customer base last year making us one of the largest players in bio-fuels. the decisions we are taking continue to be in support of growing, for example, bio-fuels and green hydrogen ambitions. importantly, we are trying to do it with real responsibility. meantime, barclays posted a first half pre-tax dollar

strength. profit dipped to 4.29 billion pounds in the period. it announced a share buyback period in line with the 2026 target. and a post on to the appand bottom line. the lender flagged the net interest income to come in lower this year than previously expect expected. charlotte, it's off 1.5%. there seems to be weakness with the french business. >> we see the trend in the quarterly business. we see the impact on the shares. as you were saying, they expect 3.4 billion euro. we are talking about subdued

loan clients with people shifting to higher yield savings kt accounts. revenue up 10%. equities doing particularly well up 24.4%. and up 3% there. the net income is better than expected up 24%. cost income ratio at 2.2% better than last year. that is the tlaendrend that sta in last year. the new ceo tried to cut jobs and also been selling assets and several businesses particularly in africa. morocco in april and then the latest announced this year. they are looking at selling the bank in germany. all of these things boosting the

ct-1 ratio for this year. one of the objectives was to boost the share price because it has very much been lagging comp competitors. it is a bank that suffered with the snap election with the exposure to france and the uncertainty. they regained ground, but they are trading lower this morning. >> i care about the banks. whatever you are telling me, i care more at this point about leon marchand. >> he was incredible. two gold in one session. no one's ever done it. >> how good are the french feeling? >> feeling good after the opening ceremony, but the extra boost. spectacular. >> is he racing again tonight? >> i'll have to check. >> okay. we have more olympics coming up later on the show. i promise you that. still coming up on the show, meta shares popped after hours a strong bump in revenue

offsetting costs. that's coming up next.

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meta shares are continuing to surge in extended trade after the tech giant beat expectations for the second quarter. it issued a better forecast. arjun has more. it wasn't a lot to complain about here, was there? >> no, it really hit everything investors wanted to hear from tech companies which is that there's strong growth and costs under control, but still investing in a.i., the trio of things. if we look at the ad business for meta, that was up 22%. this is where it makes all its money off advertising. owns two of the biggest platforms in instagram and facebook. the cap ex for this year hasn't changed. it signalled that cap ex would grow significantly in 2025. that was wn't really enough to

spook investors because growth is still there and they are happy to see the investment in a.i. and tech. we are seeing signs that the a.i., i guess, infrastructure, meta put in place is more on the back end of algorithms and recommendations and able to serve up ads more effectively, these are paying dividends with strong growth in the ad business. that say pis a positive as well meta. >> if i were to nitpick, core spending is up and a.i. spending is up as well. generative a.i. spending is not paying off yet. why is that? >> not yet. i guess meta hasn't fully rolled out the gen a.i. products across instagram and facebook as of yet. they are still working on it. >> why is that? >> it could be things like

search in the facebook app. that could include generative a.i. features. for example, if you could search within facebook, that may be an option. it could mean better algorithm with recommendations, et cetera. there are also things are instagram, if you could use gen a.i. with photo editing. entering questions by regulators. there are many ways meta to take this. it will look a way that meta will keep people more glued to facebook and instagram and they have to serve ads more effectively and charge more for the ads. >> even more glued than they already are. >> yes. >> arjun, thank you. let's stay in the tech sector. qualcomm issued a strong guidance for the quarter expecting sales up to $10.3 billion. shares of the chip maker rose 3% at one point in after hours

trade. the stock has since last ground. arm shares declined in extended trade off 12% after the chip maker disappointed for the quarter guidance. it has adjusdjusted earnings in quarter. our u.s. colleagues will speak to the ceo rene haas at cet. let's talk more about tech and chip with william. thank you for your time. i love your notes. you say when you think about the tech sector, specifically chips, you think of champagne. i guess it's 5:00 somewhere. >> the way i think about the technology sector is to think about champagne. a flat glass on top of four

glasses and a pyramid, champagne tower. you pour it on top until every glass is filled. the tech sector is the opposite. the bottom, there are four glasses with research and materials and asml. they are the companies that make the machines that make the chips. they support the entire industry. intel, samsung and tsmc and et cetera. above that, hardware companies and networking and software companies. on top, enormous layer of thousands of champagne glasses. those are the disruptors. everybody spends time running around the disruptors trying to think about what to invest. whatever disruption, it will use

technology, the middle players. whatever technology it uses, will use the semiconductors. it will be made or produced by the companies on the bottom. there is no way out of the bottom of the pyramid. all of the exciting disruptors means all of the champagne glasses are broken. we focus on the ones at the bottom. they have a high certainty they will benefit from what comes next. we don't care what the next disruption is because they will use the disruptors. that makes technology easier. >> william, thank you so much for running us through that analogy. it makes a lot of sense. i get why you like the manufacturers here of the machines, however, i will say some of them and we saw that in yesterday's trade once again they are very much subject to a lot of geopolitical risks. reports of export controls to china and exceptions to that.

how do you factor in that risk? >> if the wars for the commitment makers are near the leading edge, that would be a concern. they would be replaced by the chinese competitors. there is no real alternative to these companies anywhere outside companies based in the u.s., japan and netherlands. those three companies completely dominate any advanced equipment for semiconductors. the world will need semiconductors. they will need chips whatever happens next and long as it will use more technology. we iwill need more and more technology. it is those chips machines that can't be shipped to china, then t will be shipped some place else. you can get short-term hiccups, but in the long term, you have certainty the machines will be

bought and used. you suddenly are selling twice as many tools rather than half as many. the geopolitics is fascinating. in the end, it all comes out in the wash. >> that's interesting. tech stocks overall have seen pretty encouraging growth rates in the last few years. 15% is what we're talking. i do worry and the market worries with the a.i. inflection point. what if the a.i. hype evaporates? where does the growth go? >> as you said, the growth of tech stock prices is consistent for 15 years now growing at 15% a year. that's not in my view because it is 15% more demand every year. that would be an amazing coincidence. there was insatiable demand.

it is the biggest industry in the world and growing at more than 15% a year is impossible. you can't sustain it. we tried it during covid. we are back on the trend again. if a.i. is absorbing much more than its shares, as it were, of the technology currently, that means others are starved. cloud software. when the a.i. spend slows, because it cannot go on at this current rate, but it may for a few months or quarters, at some point it will slow. that money gets reallocated back to the bits that were there previously. there will be disjunction and volatility, but the trend continues. that volatility is at play. >> william, i appreciate your comments. portfolio manager of bluebox

asset manager uk. i want to take you to uk july final pmi because what we're seeing is the british factories recorded the best month for two years during the month of july. output and hiring rising and there is a lot more optimism, it seems, after the general election with labour coming into power. when we look at the final numbers, 52.1 versus 51.8 previously. of course, we have the boe meeting later on today, but we also have this. daimler trucks slashes the outlook for the full-year unit shares. we will speak with martin daum coming up next. do you have a life insurance policy you no longer need? now you can sell your policy - even a term policy - for an immediate cash payment. call coventry direct to learn more. we thought we had planned carefully for our retirement. but we quickly realized we needed a way to supplement our income. our

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welcome to "street signs." i'm carolin roth and these are your head lines. european equities turn tail after the best day since february and the ten-year treasury yield touches the lowest levels since march as fed chair jay powell lines up the first rate cut of the cycle. shell launching a share

buyback as income dips one fifth on the quarter. the ceo sets out the plan for net zero amid shareholder pressure. and soc gen with the net interest income is lower in early trade. daimler truck has said it will cut employee hours next month after slashing the outlook for full-year revenue and sales. it is expecting sales to fall. it is down 3% in early trade. we are joined by ceo martin daum. how much was this all down to china weakness? >> i would say the key reason why the stocks are down is certainly because of the weakness of the european truck

market. we had we call it a solid second quarter with more than $1 billion in profit nearly matching last year's second quarter. it was very favorable development in the united states all on the bus business in europe. unfort unfortunately, china and the european market showed a significant weakness which continues throughout the second half. therefore, we reduced joutput fr the year. >> how much visibility have you got here? is this more truck? we expect more cuts to come through from the ecb and stimulus from china. was this the truck of the year? >> for china, i'm bearish for next year. that tracks longer than the totality of the business.

this is what we see in china which will continue through 2025 and impair our china business. on the other side, it can turn any quarter, but didn't turn in the second quarter. the third quarter will be bad and i have a feeling the fourth quarter will be similar. let's see what 2025 brings. if you were to ask me a half year ago , i would have been bullish. those hopes did not go through. >> the recovery in europe taking longer than expected. now very bifurcated markets globally with the u.s. against the rest of the world. some of the clients on the car side have seen a lot of margin pressure coming from the u.s. market. you, not so much. you are seeing strong business there. the bus business is doing well. what can you tell us about the u.s.? >> the u.s., we have absolute

picture-picture lineup. that is a strength of daimler trucks. other segments we are strong and doing well because the construction industry, for example, are pouring into the industry helps a lot to support the commercial business. >> final question. a couple secondsleft. what about tariffs? what if trump is coming back to the white house? is there any way to prepare for that? >> first of all, i see continuity in business. there were a lot of things done very well by the biden administration and i don't think that the trump administration will create havoc in the industry because it could help the economy as always is the best. i don't expect too much change whoever wins the november election. >> martin daum, great to get your insights. the chair of daimler truck. i appreciate it. let's stay in the sector

with bmw backing the guidance after posting a lower than expected profit margin. the german carmaker flagged weaker growth in europe as well. investors not liking the numbers too much. shares down 4%. and profits at volkswagen fell 2.4% for the year as they continue with the restructuring process. the company confirmed the full-year outlook, but will have to cut in the second half to meet objectives. the cfo of the company touch ded on the company's outlook and sanctions. >> we are a global company. let me tell you another thing. a little bit more on one level deeper. i think the tariffs help local

companies. you just lose time. for example, in the european market, we talk about potential tariffs on chinese companies, but that opinion that keeps chief imports out is dangerous because you just lose time. chinese companies said already plans in eastern europe and we have to prepare accordingly. we have great products in the u.s. and in europe. great premium brands. great volume products. we have to prepare on the cost side. let's talk geopolitics. israeli prime minister benjamin netanyahu has warned he will respond with force to any attack on the country. addressing the nation, he said militants have attacked in recent days.

his comments come with revenge as those call for vengeance in the wake of the assassination of ismail haniyeh. the supreme leader issued a strike directly according to the new york times which cites he gave the order at the emergency meeting around national security council. let's have a quick check of the oil prices. it is up 10%. i don't have the numbers for that. we are seeing a big geopolitical risk premium in there in the price of oil. brent crude up 0.6% on the day. wti crude over the last seven

days up 1.2%. there is also an opec meeting today, but we're not expecting any change here. let's switch to the u.s. where former president donald trump has questioned the identity of his rival for the oval office. democratic presidential nominee kamala harris saying he downplayed her heritage and saying she decided to "turn black." he was speaking at the association of black journalists association. harris has identified as black and asian and is both indian and jamaican heritage. one of the moderators of the question and answer session trump claimed he did not know the vice president was black until a few areas ago. >> i have known her a few years directly. she was always of indian heritage and promoting indian heritage.

i didn't know she was black unless a couple of years ago when she turned black. i don't know. is she indian or black? >> she has always identified as a black woman. >> i respect either one, but she doesn't. she was indian all the way and then all of a sudden, she made a turn and became a black person. >> the harris campaign called the former president's performance at the convention a quote absolute disaster. harris responded to the remarks by the former president is describing it as the same old show of divisiveness and disrespect. we have more coming up on the show and could today be the day? attention turning to the bank of england rate decision this afternoon. we'll get you set up in two minutes. don't go away. what is cirkul? cirkul is what you hope for when life tosses lemons your way. cirkul is your frosted treat with a sweet kick of confidence. cirkul is the effortless energy

that gets you in the zone. cirkul, available at walmart and drinkcirkul.com.

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i'm sure you watched this. team gb's producing a stunning sprint finish to wrestle gold from hayden wild.

alex yee claimed a 6-minute deficit. that was an incredible finish. the race had been postponed after heavy rain added to health concerns over swimming in the river seine. it went ahead. in the meantime, leon marchand secured two gold medals with two olympic records with two strokes in one session. the 22-year-old delighted the home fan as he won the 200-meter butterfly and 200-meter breaststroke a couple hours apart. what a talent. and this is sad. nadal's olympic run is over along with al ckalcaraz. they lost in doubles. nadal lost in the singles on monday and he said he would make a decision on his tennis future

after the games. let's switch gears. the bank of england is not doing the olympics, but is counting down to the decision of whether or not to cut rates. although the decision is expected to be a very close call with a 5-4 split predicted. chris harris, the uk economist at hsbc is here. you are not expecting such a close call when it comes to the votes. you are expecting a 7-2 vote? >> precisely. we like to tally up the numbers where we think the mpc will go. we think two members are voting for cuts. a couple, maybe three, are online to stay at hold. we are looking for the swing

voters, including governor andrew bailey if they want to cut or not. we think the data haven't moved enough to pull the trigger on the rate cuts. we believe the economists are unanimous that it will be a finally balanced decision. a lot of mpc members will be debating. it will be close. >> it is a hold, it will be a dovish hold. then again, you are outside consensus. you don't think they will move in the meeting after, but you think they will only move in november. why? >> every upcoming meeting is going to be finally balanced. in september, we will get one month's of inflation and wage data. those are some of the key numbers the economy is looking at when it is framing policy decisions. now, when we think about inflation or services inflation in particular, that's up at 5.7%. the bank was expecting that to be down at 5.1% at this point. you can talk about taylor swift

expect on the hotel prices, but there is some underlining cost pressure. we don't know how the mpc will interpret that, but if they stay sticky as we believe, over the next couple months, that will open the door to november. as i say, it really is going to be closer over the next couple meetings >> let's say they only move down in the month of november. i don't know whether this exists in the central bank role, but i feel there is a fomo or pressure with the banks. the boe and andrew bailey sees his peers at the ecb, wouldn't he have to move? >> that is true. they are moving in a united ba basis, but pressures are the number one thing that matters here. when we think about what is going on in the u.s., for example, annual wage growth is below 4%.

annual wage growth in the uk is not far off the 6% mark. there is more in the way of labor cost pressure in the uk which means the bank may wait a little bit longer before cuts. i do believe the bank does want to cut rates before too long. once it starts cutting, it will continue to cut, we think. the fomo, if it lasts, won't last all that long as the disinflation becomes a bit clearer the next few months. >> the fundamental story about the uk, every guest on the show tells me is a positive one. there is a lot of excitement on the back of the labour win and they want to improve the economy with gdp goal of 2.5% over the cycle. i don't know whether they can hit that. the uk economy has a lot going for it. that potentially could be hawkish. >> irrespective of who is

steering the ship, we knew the uk economy grew by .7% in the first quarter and another .7% in the second quarter. let's see if anything changes that picture. perhaps not. there is optimism in the planning policy changes. let's wait to see if that has impli implications. one thing that matters is if we see strong growth, that is another thing that points in the direction to cut the rates in the near term. >> there is absolutely no fiscal space as we heard earlier this week with any further spending. there is a lot of cuts down the line. >> the fiscal space is limited. we know they signed up with the rule of debt-to-gdp in five years' time. if you are thinking about the public sector pay increases which have been announced, there has to be pay or spending restraint elsewhere.

we are expecting the taps to be turned on. >> chris, thank you for your time at hsbc. don't miss our coverage at the central bang decision at midday london time with steve and silvia. before we hear from governor andrew bailey in his press conference that starts at 12:30. we will bring you the conversation with the bank of england governor here at 4:00 p.m. london time here on cnbc with steve. before we wrap up the show. a quick check of the european markets as we close out thursday for "street signs." the dax is off by 1.3%. the automakers, of course, with disappointing numbers from vw and bmw and daimler truck. a lot of china weakness is what we hear from the companies. elsewhere, we see red arrows. switzerland is not trading today.

closed for a public holiday. when it comes to the u.s. futures, we still have a couple hours to go. the s&p 500 could ekk out a modest increase. the dow jones up 48. the nasdaq up by 11 points. na nasdaq jumping yesterday. that's it for today's show. i'm carolin roth. "worldwide exchange" is up next. see you tomorrow. bye-bye.

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it is 5:00 a.m. here at cnbc global headquarters. i'm dominic chuin for frank holland. here's your "five@5." cut on the table. jay powell with the policy shift in the fall. >> we can begin to dial back the policy restriction. i believe a rate cut could be on the table in the september meeting. investors cheering what they believe is a certain interest-rate cut two months ago with gains to wrap u