♪ good monday morning from london. i'm dan murphy. this is "street signs." let's get straight into our headlines at this hour. first today, rate cut optimism pushing wall street to its second week in the green as fed chair jay powel gets set to set the scene for a september cut with traders still pondering the possibility of a 50-basis point move. >> the time has come for policy to adjust. the direction of travel is clear, and the timing and pace of rate cuts will depend on incoming data.

it is a more cautious outlook in europe. the bank of england governor andrew bailey saying it's too early to declare victory over inflation while the ecb's chief economist warns a return to 2% is not yet secure. plus, israel declares a 48-hour state of emergency after trading strikes with hezbollah, the heaviest exchange of fire between the two since 2006. and the harris campaign gets a post-convention boost saying fund-raising has topped $540 million while republican vice presidential j.d. vance touts trade tariffs. >> anything you lose on the perfectist consumer you gain in wages. you have more take-home pay and we also have more reliance. welcome into the program. we begin with some breaking news this hour. first, it is germany's august

ifo business climate index which is just crossing the market right now. the efo crossing at 87 with regards to what we have seen for august. that is certainly worse than what was expected here. for the expectation number it's crossing at 86.8 and the condition number crossing in at 86.5, so what we've seen here is the business climate index not improving in germany. of course, this comes after we saw the number at 87 in july, down from 88.6 in june. the institute saying the german economy is stuck in crisis. so, we'll continue to unpack the overall market impact for you here as a result. you'ro dollar trading at 1.11 right now, and, of course, we've seen the euro strengthening actually today but pulling back ever so slightly right now in the session. of course, the primary focus though is what's happening in the united states.

rate cuts are officially on the agenda for the federal reserve after chair powell said there is good reason to think that the economy will get back to 2% inflation while maintaining a strong labor market. in his closely watched remarks at the jackson hole symposium in wyoming, listen. >> the economy continues to grow at a solid pace, but the inflation and labor market data show an evolving situation. the upside risks to inflation have diminished, and the downside risks to employment have increased. as we highlighted in our last fomc statement, we are attentive to the risks of both sides of our dual mandate. the time has come for policy to adjust. the direction of travel is clear, and the timing and pace of rate cuts will depend on incoming data, the evolving outlook and the ball of risks. >> our steve liesman spoke to fed presidents bostic and goolsbee and asked for their views on what comes next. >> inflation has come down

faster than i expected, right, and for me that says that it may be appropriate to pull forward our first rate move. you know, i was in the fourth quarter, my outlook has been in the fourth quarter for quite some time. >> and you only had one cut. >> i only had one cut. >> has that changed now? >> it is in play. >> we set the rate more than a year ago, and the conditions were really completely different, and you saw chair powell talk about that. he just kind of walked you through the history in a very clear way of the how different conditions were 14 months ago, so i kind of think this moment, i thought the spirit of chair powell's speech, look, loose the moment. everything that we've been wanting to happen, this is the path to that >> markets are currently pricing in around 38% chance of a 50-basis point fed rate cut in september according to lseg

data. randy crosner downplayed that. >> i don't think they started with 50. if they start with 350 that's sort of an admission something went wrong, something is problematic. the employment report in september is wildly disastrous, sure, but i don't think so. i think they will start gradually and then pick up pace if the labor market weakens. >> so the market, is of course, laser focused on what comes out of the united states and what type of cuts we are going to see from the u.s. federal reserve. now markets have suddenly taken this in their stride after chair powell said the time has come for policy to adjust. global equities moving higher off the back. markets now in countdown mode for that first fed cut to occur. here's how european markets are trading here. you can see germany's xetradax down by .3%, tracking losses in italy, in spain and in holland, but markets in paris and switzerland have been climbing higher. of course, markets also looking at holding on to some of last

week's gains and assessing as well the pace of cuts to come and what this means for the boe, the ecp and european borrowing costs. let's take a look at how the fx market has been moving as well. just flagged the euro for you. with regards to what we're seeing the pound trading above 1.31 which has been interesting to watch. we have seen the currency pushing back. euro dollar at 1.11 and dollar/yen in focus at 1.3 .93 so we are seeing strengthcoming into the market today. u.s. equity futures looking like this right now, and you can see the s&p 500, dow and nasdaq have all been gone higher when trading gets back under way in the united states. let's give you live analysis for what this means for the money outlook and the money markets. an economist at itr economists joins us now. lauren, great to have you on the program today.

look, let's unpack this. powell basically cementing the cut here. no surprises out of jackson hole, but he did leave the door open with regards to how much, so what's your take on what came out of wyoming, and what is it ultimately going to mean for the pace of cuts to come? >> powell's comments out of jackson hole were great clarity from a man who usually does not give us so much clear ideas of what's to come with fed policies, so, yes, i believe a 25 basis cut is all by cemented for september. i do think it's a pitt premature. i think the market is looking for a little bit more with that 50 basis point cut. i don't believe that would be on the table for september, but powell did give us a sign that this will not be the only cut. he alluded to rate cuts, plural, and talked about the pace and magnitude of those going forward, so this will be the beginning of a rate-cutting cycle. how long that lasts though, i do expect to see inflation rearing its head again in 2025, so i think a lot of market participants are going to be

disappointed by this cutting cycle. >> being a. so unpack that for me, because i thought your comments on the inflation outlook are particularly interesting here. you say the fundamental drivers of the next inflationary cycle are already firmly in place and inflation is going to come back in 2025 and limit the fed's ability to continue cutting rates. so, what is the primary driver of that inflation reaction in your view? >> sure. if we look at some of those fundamental leading indicators, again, things that don't affect inflation today but a year or two down the road, things like the velocity of money, things like gross treasury issuance. we see gross treasury issuance today in the united states at a higher level than it was at the peak of our pandemic stimulus spending, so there are a lot of drivers starting to align. the stars are aligning for inflation to come back again in 2025. i think we'll touch that 2% target rate, but i don't expect we'll stay there very long. the fed does have their work cut out for them in the years to come. >> so, wouldn't that justify a 50 basis point move now?

that's the argument that some economists have been making here saying the fed needs to cut hard and fast in order to tame what might be higher inflation to come? could now be the right time? >> given how they got burned with high inflation and waiting too long, even in jackson hole chair powell made comments about how many economists, and he grouped everyone in there, expected this pandemic era inflation to be transitory. that didn't really play out. so while their focus has clearly shifted to the labor marketside of the dual mandate, they don't want to let inflation out of their sites, so cutting too hard too quickly, that could bring activity back that stimulates the next round of inflation that prevents us from reaching the 2% goal so they are very sensitive to not letting inflation get away from them again as we've seen in the past couple of years. >> lauren, walk us through what we can expect to see from markets as this easing cycle begins to be priced within equities and risk assets broadly. >> sure.

i believe last i looked there were three 25 basis point cuts fully priced in for this year. i think we might get another one in early 2025, but, again, beyond that, it will just depend on how the data comes in, so i think the market is looking for a little bit more than the fed is likely to give us. again, the fed likes to wait, likes to be a little more cautious. they do not knee-jerk react to data as we saw in august very clearly, so i think the market is looking, reaching, aspiring for a little bit of more than we'll ultimately get, but at the end of the day the beginning of the rate-cutting cycle, that's likely to be good for a lot of asset prices. >> lauren, just before i let you go. anything else you're watching ahead of the u.s. open that we need to be aware of or that you haven't already mentioned? >> at this point, limited data coming in through -- well between now and the fed meeting, so i don't have any huge risk item. again, it takes more than one month of data to make a trend, so i think the path is pretty well laid out in front of us. it would just be the black swan

event, something coming that we've never expect that had i'm always watching for. >> we're always watching, lauren. thanks so much for joining us today. appreciate the conversation. we'll check in again today. lauren sidel-baker, economist. at the jackson hole conference they said it's too soon to be optimistic after consumer price inflation briefly returned to the 2% target before ticking higher again in july. money markets currently see the central bank holding rates ahead of another cut in november. meanwhile ecb economist philip lane struck a more cautious note telling attendees while the central bank is making good progress on cutting inflation, success is still not yet assured, meaning restrictive policy still has a role to play. the ecb is expected to make a rate cut next month taking its rate cut to 3.35%. up next on the program, oil

prices getting a lift as tensions flare in the middle east mid-east. we'll talk through the latest signs in the region whether "street signs" returns. stay with us.

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♪ we're back with a live look at how oil is trading right now. you can see brent just holding on to $80 u.s., better been 1.3% and wti also above $75 a barrel, up by 1.3%. what we've seen is oil prices extending gains on fears of a spillover in fighting from the gaza conflict into the middle east which could potentially disrupt oil supplies. at the same time, traders also looking at what are now imminent u.s. interest rate cuts which is lifting the global economic outlook and also demand outlook as well, so prices kind of caught between the crosshair here as we continue to monitor the global economic picture and the situation in the middle east. gaza cease-fire talks ended without agreement over the weekend after hamas and israel

rejected proposals put forward by mediators. a senior u.s. official described the talks as constructive with both sides hoping to reach a final and implementable agreement. talks are expected to continue at a lower level in the coming days. the talks came as israel's military launched a series of attacks in southern lebanon on sunday in what are called a, quote, preemptive strike against hezbollah. the exchange was the biggest between israel and the iran-backed militant group since 2006. my next guest is michael arn, the former

since of beginning of october 100,000 israelis have been place i had and dozens killed. many more ruined wounded. entire cities have been left destitute, destroyed, and it's only when hezbollah begins to threaten tel aviv that the israeli army sent up 100 warplanes. so there's lots of different responses to this reaction. it's a game-changer that we've changed the rules of the game. tomorrow hezbollah could begin shelling the north again, and the question is what is israel's reaction going to be? is israel's reaction going to be different than it has been the last ten months? until that happens, the escalation becomes inevitable because if hezbollah is firing 100, 200 rockets a day, one of them, unfortunately, is going to hit a school. it's going to hit a hospital, and we saw it already happen in

the golan heights where a rocket that was actually aimed at an army village ended up killing a village and killed 12 young people. israel has to respond massively and that's when you get the escalation. the way to de-escalate is escalate against hezbollah, convince hezbollah that even a minor infraction of the status quo will bring about a punishing reaction, maybe not just by israel, perhaps by the united states as well. >> ambassador, it's interesting because you have suggested that we need to see escalation in order to de-escalate here, but at the same time you do get the sense as well that israel does not want a wider regional war and hezbollah has also said that its operations are complete, so where does this go from here? >> well, the middle eastern history is riff with examples where neither side wanted a war and end up up going to war nevertheless. that's how the six-day war brokous, a war that nobody out but it broke out, again, because

of a miscalculation by one side or even an inaccurate rocket strike as it happened on the golan heights several weeks ago. in order to truly get that type of cease-fire that would bring about quiet on the northern front, hezbollah has to internalize that any infraction of the status quo will bring about a prohibitive price, and that price has to be exacted not just from hezbollah but from the people operating hezbollah and that's the iranians. to date iran which has basically been behind all the instability and violence in the middle east, it's, you know, the owner and operators of hezbollah but also of shiite militias in iraq and syria that have been firing dozens and dozens of times at american bases and the houthi rebels in yemen which have cut up off shipping and the waterway and hamas, the palestinian islamic jihad in gaza are supported by iran. iran hasn't paid any price for any of this, so if you want to see a true de-escalation iranians have to internalize that if they keep this up they

will pay a prohibitive price. i don't know if israel alone can exact that price. certainly the united states could, and if iran is convinced that it cannot, it doesn't have a military option against iran, then mr. sinwar, the head of hamas, will understand there's no other alternative but to reach a hostage exchange deal with the state of israel. right now mr. sinwar believes that maybe if he digs in deep enough iran will have a war with israel or perhaps the united states position will become increasingly amenable to hamas' position, and that's been the experience to date. you know, this is a business program. business people know when you make a deal on the table and the other guy rejects it, the next deal will not be that good, but with in additions with hamas, every time hamas rejects an israeli offer the united states comes back with another offer. why would hamas give in and agree to a deal at this time? >> so help me understand what this is going to mean for cease-fire talks which we understand are going to resume at a lower level through the course of the week. i spent the weekend talking to

analysts trying to understand the overall impact on these talks, and there is one view, particularly on the israeli side, that this is seen as a setback. what's your view? >> well, i don't think it's a setback. i think it actually contributes to sinwar's conclusion that maybe he doesn't have that military option that hewants in the north. let's take a step backward. why would hamas want a war between israel, hezbollah and iran? well, that would draw all of israeli forces out of gaza. it would be a devastating war for the state of israel, increased pressure on israel to agree to hamas' terms, so that's ideally what hamas would want. it wants this war, and it's been a situation where iran and hezbollah have said that if hamas accepts the cease-fire, they will accept a cease-fire. what happens if hamas doesn't accept the cease-fire? then the chances of war in the north grow immensely, and that is very much in sinwar's interest, so i think the exchange of fire over the weekend, israel's reactive response to the state of israel

is not a preemptive response, is maybe, maybe contributing to a realization on the part of hamas leaders that there isn't that military option, that is there's no alternative but to negotiate and to reach a deal around the negotiating table in cairo. >> of course, on the hamas side, they have accused israel and prime minister netanyahu of shifting the goal post here and dragging his fate on getting a deal done. i think you'd also agree that netanyahu hasn't really played a highly proactive role in chasing a deal with hamas. of course, the israeli position is that hamas should not exist, so what is next for the cease-fire talks, and is it realistic now to expect a deal to get done before the end of president biden's term given where the level of negotiation is now at? >> excellent question. keep in mind i'm not a spokesman for the government. i don't work for the prime minister, but secretary of state antony blinken has said that israel has accepted the bridging formulas, and it's hamas that keeps on rejecting the

u.s.-israel position, so sinwar can say that netanyahu is dragging his feet, but right now the united states is not saying, that and hamas keeps rejecting it. he keeps on rejecting it because as i said earlier hamas and sinwar hope that there can be a war in the middle east that will greatly, greatly increase the pressure onisrael and get it to relent and concede major concessions to hamas that otherwise israel would not make. again, the key to all of this is -- is absolutely eliminating the military option that sinwar has. it's very, very key one. what are the chances? well, i wish i were a better prophet, and i wish that the chances were -- were enhanced. i think the only way to achieve this agreement prior to the ent of president biden's term is for president biden to come out and say that the united states will no longer count the iranian action against the united states, against the shipping in

the straits. the u.s. has two aircraft carrier groups, a nuclear sub reason, f-22 raptor fighters. it's a very powerful deterrent power. it would nice -- very helpful in the crites would say to iran you see all this military equipment here. if you continue to destabilize the region this will be aimed at you, and i think that will make a major change, a sea change in the entire strategic and diplomatic situation in the middle east. >> okay. fascinating to watch. ambassador, just before i let you go. also, i want to tap into your diplomatic experience here, and help me get an understanding of how all of this is impacting the u.s. election cycle as well. we saw kamala harris referring to this in her dnc presidential acceptance speech. she sought to reassure israelis that her administration would continue to be a supporter of the state, but at the same time also said that the situation in gaza has been heartbreaking. she's seen as perhaps a little bit more tolerant towards the

situation with the palestinians than president biden. how do you see this ultimately influencing the decision for the american population on the ground here when it comes to that election, and when should we be watching harris versus trump on the israel-palestine question? >> well, it's an unfortunate situation for israel. we used to always be proud of the fact that support for israel was one of the, if not the only issue in washington that achieved bipartisan support, and now we've seen the israel-palestinian issue has generally become kind of a political football between the two parties and donald trump has come out and called on american jews who do not vote for him saying, you know, they are anti-israel or in some way not good jews, so it's an unfortunate situation. i watched the democratic national convention very, very closely and was i think relieved to the degree with which the democrats came out and supported

israel's right to defend itself, our right to exist. it did not give a platform to pro-hamas elements outside the party. the protests were much smaller than anybody anticipated so i'm hoping that the israel-palestinian situation will play a lesser role in the election. i hope it continues that trend. it's neither helpful for the israelis or palestinians for that issue to become divisive and become the political football. at the end of the day very good for american politics but not very good for the people in this region, and what's good for the people in the region is bipartisan support with israel's right to defend itself, yes, bipartisan support for the peace process, and a diplomatic horizon for the palestinians as well. that is achieved not through partisanship but by broad political support across the american political spectrum. >> ambassador, we'll leave it there. thank you for sharing your views with us on the program today.

i appreciate it. that's ax michael or in, a former israeli ambassador to the united states. meanwhile, air flights are being suspended to tel aviv and beruit saying the resumption will be tied to the resumption of the security situation. it involves british airwayses, had among others. iranian developer pavel duron was detained in iran of alleged offenses related to the messaging app. it posted a text from elon musk #freepavel and a trip to moscow to assure his rights. they said the company has nothing to hide and the company abides by eu laws including the digital services act. for more on the story and more on pavel durov's background head

over to cnbc.com for more insight and analysis. up next on the show, goal prices shine as the fed green lights a september rate cut. we'll dig into the details on the other side. stay with us. we're back in two minutes. switch to shopify and sell smarter at every stage of your business. take full control of your brand with your own custom store. scale faster with tools that let you manage every sale from every channel. and sell more with the best converting checkout on the planet. a lot more. take your business to the next stage when you switch to shopify.

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♪ well back. you're watching "street signs." let's recap your top stories today. first up, rate cut optimism pushing wall street to its second week in the green as fed chair jay powell sets the scene for a september cut with traders still pondering the possibility of a 50 basis point move. >> the time has come for policy to adjust. the direction of travel is clear, and the timing and pace of rate cuts will depend on incoming data. it's a more cautious outlook in europe. the bank of england governor andrew bailey saying it's too early to declare victory over inflation while the ecb's chief economist warns a return to 2% is not yet secure as ifo data shows sentiment falling in europe owes largest economy. plus, israel delayers a 48-hour state of emergency after

trading strikes with hezbollah. the heaviest exchange of fire seen between the two since 2006. and the harris campaign gets a post-convention boost saying fund-raising has topped $540 million while republican vice presidential candidate j.d. vance touts the benefits of trade tariffs. >> anything that you lose on the tariff from the perspective of the consumer you gain in higher wages, so you're ultimately much better off. you have more takeoff pay, better jobs and also we have more reliance. you're live on cnbc. welcome back into the program as we continue to update you on what's moving in the european equity markets. it is, of course, a bank holiday monday here in the uk, so we have london's ftse out of action, but the other major markets are trading mostly mixed her. germany's daxx down.02% and

stocks in holland and spain down. 0.3 to the downside and 0.01% to the downside hear so trading with ultimately a positive bias across the region. that, of course, comes after we saw chair powell saying the time has come for policy to adjust. global markets really taking that in their stride because powell effectively cemented a cut in september but left the door open for how much. let's give you an update on what's moving in the fx markets as well. i showed you earlier that the british pound has been rallying against the dollar trading above 1.31. that's the highest level since march of 2022. the euro also strengthening earlier in the session, but you can see pulling back now at 1.11. dollar/yen trading at 1.3479 here as well. we're seeing some yen strength come through. i flagged earlier sterling at 1.31 and the swiss franc at 0.84 against the greenback as well. another look at euro zone yields and treasuries as well with

regards to the overall treasury environment here. we're looking at yields, look, at 3.58% in italy. the ten-year bund at 2.24%. what's happening over in the united states, well, the ten-year is trading at 3.79, and, of course, we have seen movement across the curve as markets attempt to price what came out of jackson hole. speaking of markets, u.s. equities set to open higher. you can see the nasdaq, dow and s&p 500 all called higher with the nasdaq better by double digits. fed chair jay powell also setting the stage for a september rate cut in his commentary in jackson hole as i mentioned. steve liesman has highlights from the summit. >> reporter: after two and a half years of fighting inflation, fed chair jay powell took to the podium here at the jackson hole annual conference and laid out a new marker for monetary policy, delayering now is the time to adjust interest rates downward. >> the time has come for a

policy adjust. the timing and pace will depend on incoming data, the evolving outlook and the balance of risks. >> reporter: powell suggested the fed with timely adjustments to policy could stick the so-called soft landing saying the fed could get the inflation back to a 2% target with a strong jocks market. his comments on the rate cuts and soft landing caused the markets to look to a 50 basis point in september or november or looking for a total 1,600 basis points through december. the dollar sold off a bonds and stock rally. powell didn't discuss the pace or extent of rate cuts, but he did say multiple cuts were on the way. how do you know what they are going to do? look for further job weakness to figure out if it's a 25 or 50 basis point cut in september and look for inflation to continue its downward trend to know whether the cuts continue while the economy remains on or around potential. chicago fed president austan

goolsbee said on cnbc said he was concerned about the consumer job market but was upbeat on the outlook. >> i do have concerns. there are concern warning lights from parts of the job market and the consumer delinquencies and business defaults. on the other hand, we also have wide pockets of strength in the economy, so i'm hopeful that a year from now we're still chugging along. >> reporter: but market reactions suggest that powell more dovish, direct and definitive than markets maybe expected, but there's still data to come before the september meeting, and differences on the fed's committee about how far to go and how figurely to go and how to get there. steve liesman, cnbc business news. gold prices end higher about their 2,500 an ounce as fed chair powell jay powell confirm expectations of a september rate cut, escalating tensions in the middle east between lebanon also stand to further boost the safe heche as the. that's according to our next guest as we see gold trading at

$2,25.23 u.s. an ounce. great to have you here tom. >> thanks for having me. >> let's talk about what jay powell confirmed what we were all expecting, that a cut is confirming. what do you think about gold moving forward? >> well, it's bullish. it lowers the cost of holding a no-yield low asset gold so a lot of people are getting into it. it's had a great run, up 20% year to date. one of the outperforming commodities that we cover. >> so where to from here? if it's bullish could we see maybe testing 2.6, 2.7, 2.8 even? >> pick a number. it's gone nuts at the moment. based on rates alone, i think we'll people just see the price stabilize. it's based on just how gold performs in right-cut cycles, so if you think of the last 20, 25

years, the dotcom fade in 2021 and the gse fade in 2008, the prices stabilized when the rate-cut cycle began so we're basing the stability on that alone. there's other factors in play. >> the ud usd is at a higher level. does that signify the price of gold higher? >> people will be buying at higher prices. >> what else is drivers the market? >> the cash rate policy reporting 3.2 bond yields and real rates, so -- so -- but there's some real chunky bullish drivers that played out like war so we've got lots of conflict happen, russia/ukraine, israel versus hamas and hezbollah and we've got the china/taiwan confrontation, so these things we've noticed have actually pushed the price up in steps in

the last 12 to 18 months so that can't be ignored. they are also real difficult to quantify because we are not really sure how the market perceived those risks. >> how would you say the traders are responding to the use of gold as that is traditional safe haven asset if i guess comparison to other safe havens like treasury for example, even the usd? some might even say bitcoin, for example. >> bitcoin. >> is a safe heche. doesn't come up all the time, but it's still being used in portfolios, so how is gold being treated as an asset class right now? >> well, the investors and clients that we speak to always have a little bit of gold in their portfolio, and some of the braver ones also have other things like bitcoin in their portfolio, so think try to keep a mix going. they would be quite excited about, you know, this rate structure shift led by the fed because that just makes gold a little bit more appealing so they may stock up a little bit over the next six to 12 months so there's that strategy coming, and that's the feedback we're getting.

it's an appealing asset to buy. >> what are the other assets that we should be watching through this coming easing cycle? anything else on your radar. >> great question. i thought this was gold only. lots of other commodities are responding to it and most try to trade in u.s. global dollars and the entire industrial metals complex is starting to report a recovery in prices. they have been hammered for about three or four months, come off 10%, 30%. the superstar asset that everyone is following is copper, so that's lifted, but in fact all of the base metals have lifted in response to this theme alone so they are all pricing in lower rates at the moment, not just gold. >> okay. what do you think is copper is responding to as well? traditionally it's been seen as dr. copper, the barometer of global economic sentiment, global economic health. where has copper come, from and where is it going? >> well the copper thing applies when things improve in terms of economic growth, particularly in

a major economy like the u.s., it's going to report some sort of recovery as well because it feeds into the power gen systems of that economy. there are additional appealing features to copper. we're trying to green the planet and improve things in terms of generation and distribution, electrify transport systems, decarbonize and copper is considered a critical factor for that. that's another overlay, a bullish thing that people are drawn to on that market so that's all kick considering the price along too. >> one of the major factors that determines where a lot of the industrial metal complex goes is the outlook for china. lots of demand concerns emanating from the economy right now beginning the conversation and lack of stimulus that we're seeing from policy-makers. is that a concern you share? >> yes. so one of the big challenges for me is a commodity analyst is trying to balance up the bullishness of rates coming down in the u.s. against the fact that china's economy has been struggling for probably two or three years now? >> right. why is china reporting to the commodity world?

because they consume 40% to 70% of everything and they take up half the world's copper supply, and now they are struggling, so what do you do? so i'm sort of trying to balance those elements up across the modeling of all of their marks, and but the these rate cuts, china was going to be a dominant drag on price performance, so this is a nice offset for the price performance and hopefully we should see some sort of a trend lift coming out of it. >> lots in this space. tom, thanks for coming up to talk about all the impacts and trends. that's tom price, managing director of panmure. the central bank said they were keeping their rates on the 100 billion uan changed while it hadded another 170 billion

through repoz. the move comes amid forward easing as beijing grapples with data points and troubles in the proper sector. china's recent effort to stem a bond market rally revealed wider worries about financial stability. the last few weeks have seen turbulent trade with the central bank intervening heavily to stem a plunge in yields. moving on, nasa astronauts butch wilmore and sunny williams will return to earth aboard the dragon "x" spacecraft amid the starline everyone concerns that brought them into orbit. this owe think arrived spot international space station for an original agent-day visit but issues emerged over the propulsion system over the spacecraft. boeing says its focus is on the safety of the crew. nbc's marisa parra filed this report. >> reporter: a stunning announcement from nasa. >> nas has has decided that butch and sunny will return with

crew 9 next february. >> reporter: nasa astronauts were boarded the star lipoexspacecraft, the first crew, and were only supposed to be in space for a week. nasa now says that the return from the international space station eight months past schedule on boeing's dragon capsule, its biggest decision. >> not an easy decision but the right one. >> reporter: the spacecraft has been plagued by helium leaks and thruster looks and they wanted to see if they could ply home with the astronauts on board, but the risks have been too high. >> we've had mistakes done in the past. we lost two space shuttles as a result of there not being a kell tour in which information could come forward. >> reporter: boeing released this statement saying they continue to focus first and foremost on the safety of the crew and spacecraft.

>> here we are in the front of the international space station. >> nasa insisting butch and sunny have plenty of supplies to get them through and confident despite the major setback in starliner's future. >> senator nelson, how future are you that boeing will ever launch starliner with a crew on board again? >> 100%. up next on the show, former u.s. president donald trump steps up his efforts to combat post-dnc momentum from the harris campaign. we'll break down the latest when we come back. stay with us. hey, can you speak french? who, me? i know a few words. if you're struggling to speak a new language, you should try babbel, a learning platform designed by over 200 language experts. it's like having your own personal language coach. babbel offers live classes with expert teachers for real world conversation practice. it's totally flexible so you can learn at your own pace

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appear the move. nvidia shares moved higher pre-market after 4.5% jump on friday with earnings due from the chip giant on wednesday. you can see it's now up by 0.77%. in politics, kamala harris' presidential campaign says it has now raised $540 million from donors since president biden ended his campaign and endorsed harris in late july. campaign manager genomely dillon said in a memo that $84 million was received in the week of the democratic national convention. this as harris and vice presidential candidate tim walz focus their campaign's attention on georgia, kicking off a bus tour in the crucial southern swing state later this week. the harris campaign's proposal for a national price gouging ban for grocery has faced pushback with some economists expressing concerns that it could stop the market functioning properly, and republicans dissing it as a form of price control. democratic senator elizabeth warren spoke to cnbc about that

proposal saying it is about stepping in when markets are not functioning. >> how do we know that it was way, way above just passing along costs? look at what happened to their profit margins. if they had just been passing along costs, profit margins would have stayed about the same, but for some industries, some companies, profit margins shot up, and you know where they shot up most often? it was in companies or in industries where there was a lot of concentration, a lot of market power, places where the market is not functioning competitively. >> donald trump's campaign is also expected to ramp up this week with campaign stops scheduled in the key russ belt states of pennsylvania, michigan and wisconsin. meanwhile, republican vice presidential candidate j.d. vance joined nbc's "meet the press" defending trump's proposal for blanket tariffs on all imports into the u.s.

>> economists really disagree about the effects of tariffs because there can be a dynamic effect, right? so what some economists will say is what you just said that, it will actually raise costs for consumers, but what other people say, and i think the record supports what -- this other view is that it causes this dynamic effect where more jobs come into the country. anything that you lose on the tariff from the perspective of the consumer gain in heij wages so you're ultimately much better off. you have more takeoff pay, you have better jobs and also we have more reliance because one of the things we learned during covid. i don't blame democrats for this, but one of the things we learned during covid, kristen, is if our supply chains are really brittle, if we depend on the chinese to make too much of our stuff, then priced can skyrocket at a time of crisis. the economists who say that tariffs are bad, they don't take that into account. we've all learned it the hard way. >> nbc news's washington correspondent alice barr is live for us in d.c.

j.v. vance sitting down on nbc as harris and walz hit a battleground state fresh offer the convention. >> reporter: good morning, dan. you're right to highlight those two interviews. those are the ones we're really tracking over the weekend from senators j.d. vance and from senator elizabeth warren, and a couple -- one of the other big issues that they really hit on is reproductive rights. senator vance was asked by our kristen welker about whether former president trump would impose a federal abortion ban if elected, and he said that he would not. he in fact said that he would veto such a ban and said that there is no serious republican with any reasonable power as he put it saying we should have a complete national abortion ban nationwide. now that is something that senator elizabeth warren pushed back on. this is a top issue for democrats. she said that american women are not stupid and are not going to trust the futures of their daughters and grand daughters' reproductive right to two men

who have openly bragged about blocking access to abortion for women all across the country. that remains one of the big driving issues. in the final ten weeks we're down to that now before election day. the next big mile marker we've all been tracking is a september 10 debate between former president trump and vice president harris but overnight the former president cast fresh doubts on whether he would take part. on his trump social account he accused abc news of biased coverage and questioned why he would debate harris on that network. he has in the past kind of gone back and forth on whether or not he would take part, though it is the only one that is formally set at this point. vice president harris has vowed to restore reproductive rights in her convention thursday night, and the campaign says since that night as you're seeing, that since the balls dropped, the balloons dropped, the campaign has raised more than $40 million, added to the more than half a billion since president biden dropped out of the race five weeks ago.

the trump campaign says it has raised almost $139 million in the month of july, and this, again, will be another big week on the campaign trail. the vice president and her running mate, there he is, governor tim walz of minnesota, starting that bus tour through georgia while former president trump will be in battle grounds wisconsin, michigan rand pennsylvania. dan, back to you. >> alice, this will be absolutely fascinating to watch. a really critical week of politics getting under way. alice, you mentioned the september 10 debate scheduled and questions about whether or not trump is going to attend. walk me through what's happening on the democratic side now with regards to when vice president harris will sit down to conduct an interview. the criticism has been that she's very on message, but she's will be on teleprompter, so are we any closer to understanding who she might be speaking to and when? >> reporter: there's nothing formally set at this point, dan, but you're right to highlight

that because i think very's been able to benefit to this point from speaking more broadly about, you know, hope and about joy and those messages that were coming out of the democratic national convention. she has not been pinned down on a whole lot of issues other than as you pointed out some on the economic front that have been picked apart, and that's what happens when you take a firm stance on an issue and then you invite the criticism and the questions about where you stand, so i think she's been trying to bide her time. as you see there, she's been profiting off of her standing right now in the race. she's moved ahead in several key battle grounds and nationwide, and she's trying to bide her time for as long as possible before she does really have to start answering those tough questions. >> alice, well explained. always appreciate your reporting. that's nbc's alice barr there. donald trump says elon musk won't have time for a cabinet position because of his business commitments after previously saying he would offer musk a role in his administration if elected. you can check out the full story

live right now at cnbc.com. before we go, let's give you another check on how european markets have been moving in the monday session, and you can see a mixed to negative picture here with germany's xetradax down 0.42% off the back of disappointing data coming out of europe's largest economy. the ftse trending below the flat line along the smi and the dutch market as well. u.s. equity futures have been pointing higher though. you can see the nasdaq called up by 50 points. thanks so much for your company today. i'm dan murphy in london. stay with us here on cnbc. "worldwide exchange" starts right now. what is cirkul? cirkul is the fuel you need to take flight. cirkul is the energy that gets you to the next level. cirkul is what you hope for when life tosses lemons your way. cirkul, available at

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here is your five at five. stocks rallied strongly on friday after jay powell signaled a rate come is next month and the momentum could continue. investors turn attention to nvidia earning this is week. it's a pivotal return for tech and markets overall. oil prices are climbing this morning on the back of israel and hezbollah trading rocket fire, raising fears of escalation in the middle east. plus, billions of dollars in