♪♪ . good morning, everybody, and welcome to "street signs," i'm julianna tatelbaum and these are your headlines european markets slide into the red while bond yields rise to multi-month highs pushing up borrowing costs raising the prospects of central bank tightening. china's gdp grows at the weakest pace in a year but consumption remains strong as september retail sales tops

expectations. spd leader takes steps to take over for angela merkel. >> translator: let us together hopefully in the next few weeks not only get a new traffic light government on track but let us renew this country and phillips cuts its full year outlook as sales slide with the company citing supply chain issues the ceo tells cnbc that despite the shortages it's still at an all time high. >> we saw a shortage of containers and we could not deliver as much as we could have we're sitting on an all-time high book but we could not fully realize that good morning to you and welcome to the program european markets starting out the week on the back foot.

the stoxx 600 trading half a percent lower this morning so a little bit of a retreat after last week's strong performance coming in to today's session, it was up 2.6%, the second positive week in a row. in terms of what's driving markets this morning, the china data out overnight no doubt a strong reason of the trades. and the germany exploratory talks looking like they're going well and also fresh comments over the weekend from the governor of the bank of england signalingthat the bank needs to act and raise rates if inflationary pressures persist. breaking it down by region this is what the split looks like in the early hours of the session. red across the board we've got the french market underperforming down about.9%. we are seeing luxury names take

a hard hit this morning on the back of that chinese data, which we're going to go into more detail in a minute but the luxury sector underperforming. the dax in germany down. the swiss market down 6 bases points i mentioned the comments from the bank of england governor over the weekend those are getting a ton of attention in what they may mean for rake hikes forward sectors, on the down side we have retail and household goods, luxury names hit hardest within that basket. travel and leisure also down, about .9%. basic resources on the upside, about .6% and utilities up a third as well. all of this negative trade is no doubt affected by the china data overnight. let's get into it now.

china's economic recovery from the pandemic slowed in the third quarter as gdp rose 4.9% that missed expectations as economic activity grew at the weakest rate in a year industrial for september rose 3.1%, below estimates but consumption pboosted the econom 4.4% let's get to matt with a looka how the asia markets responded to the chinese data. good morning. >> reporter: good morning, we had a weaker start to the trading week for markets here in the asia pacific the catalyst was the weaker than expected q3 gdp number out of china. we had the hong kong market close, one of the last to close for the day, after spending much of the day in negative territory, the hong kong market popping into positive territory by about .5.

we had a modest decline for markets, japan off about .1% south korea down about.75% really sentiment affected by this weak chinese gdp number that we did get as you pointed out, growth slowing to its weakest in about a year or so. we had economic activity up by about 4.9% but that did trail the expectation for a number of about 5.2% and really when you look at some of the breakdowns that we got, it shows you what this energy crunch, rising energy prices and supply chain issues are doing, industrial output slowing much more than anticipated. we saw retail sales bouncing more than expected but giving you a sense the chinese economy is being affect by a number of

other considerations going on there. that was the gdp number up by 4.9%, trailing forecast of had.52%. that was weaker than the estimates out there going into this number of about 4.5%. retail sales are surprising in the month we had a gain of 4.4% versus the expected rise of 4.3% so clearly consumers doing more heavy lifting. but fixed asset investment also missing expectations, a rise of 7.3%, against forecast for 7.9%. the mainland china market closing for the day weaker by about.1% the hong kong market moving higher by about .5%. we monitor the property space, everything transpiring with these property names, most notably evergrande and the comments from the pboc today

saying the spillover effects from the evergrande debt woes are manageable but one question we've been asking on the back of the trading is it what kind policy response we'll see out of beijing as we move into the back half of the year, final few months of the year into 2022 to see how the authorities are going to try to stabilize and stem the weakening growth we've been seeing. >> i want to ask you to go further in terms of what markets or analysts are expecting in terms of a policy response it's interesting the market reaction was pretty resilient, we didn't see a selloff on the back of the weaker chinese growth numbers explain how consensus expects them respond >> we didn't see a big move to the upside with investors

pinning their hopes on some kind of sizable stimulus which would have caused -- affect the markets and you would see a strong move to the upside. we didn't see that a really flat performance. but things like triple r cuttings to inject more liquidity into the system, something spoken about for several months now we got one earlier this year but the anticipation is that authorities will come back with the cut to the reserve ratio requirement for the banks to free up more liquidity into the system that's one kind of stimulus measure we're expecting to see and most analysts and economists we've been speaking to suggest that's coming before the end of the calendar year. so something to watch out for, and, of course, just reiterated by the weakening numbers we got today. >> so great to have you with us this morning thank you for breaking it down i'm hoping to set the set the scene for the first guest this morning. in china, property stocks mostly on firmer footing today in hong

kong after china's central bank said spillover effects from the evergrande crisis are controllable they added that individual financial institutions' exposure to the giant is not big. the factor has jumped over the last decade. frances wong joins us now. thanks for joining us this morning. lookingat the numbers overnight, china gdp expanded this year, down from nearly 8% growth in q2 have we seen the bottom in terms of china's growth rate and how long do you expect this slowing momentum to last >> thank you thank you for your question. no, i don't think we have seen the bottom so as you just said 4.9% year on year for q3. we're expecting around thi

5.1% and next quarter we do expect this year on year growth to take another step down towards 3% and it's likely to continue to be difficult and worries around the chinese economy slow down could carry on into early next year and for us smoother sailing could be expected for the second half of 2022 >> what are you expecting from a response from beijing if we are looking at a further stepdown in growth, does that mean that beijing is going to take a backseat at the moment when it comes to stepping in and spurring more growth how do you expect the policy response to play out >> to answer this question we have to understand what are the drivers of the ongoing slow down and simply, we have maybe temporary factors out of the chinese authority control such as the delta outbreaks so it's not something we can

assess what the response is because while chinese authorities are likely to continue to carry on a zero covid strategy so really depends more on the situation, but the other more important drivers i would say are regulatory and the -- earlier this year so on these two factors on the policy mix we are going to expect more easing from chinese policy makers. it already started in the past few months, july with the reserve requirement ratio. and we do expect another 50 bases point cut by the end of the year so further liquidity operations, liquidity management operations from the pdoc and on the fiscal side accelerating bonds to ramp up fiscal spending so it's going to react it has already started to react. and will continue to do so to

help the economy navigate the ongoing issues and on the other point i mentioned, the regulatory tightening this i would think would continue to put pressure on the economy, especially when we look at the real estate section so i think the measures we put in place last year are unlikely to be fully removed. we could see easing of communication from policy makers for example they will be easier on the time frame of the implementation they will also probably ask banks to continue to provide stable credit and liquidity to those less risky projects and real estate companies. but overall regulatory environment is likely to stay there. and that is probably the biggest weight on the chinese economy going forward. >> looking at the real estate sector in a little bit more detail, the property sector has contributed i believe a quarter of economic output in china, so

a huge growth driver for the chinese economy. if china's real estate sector is slowing down, if that growth driver is running out of steam, what is going to takeover? where is the growth going to come from from china moving forward and how should we think about long-term growth rates in your view? >> i think when we talk about this 25%, this quarter of chinese economy activity, we need to keep in mind that this means -- it's not just only construction or only real estate services that account for this large chunk of the economy it accounts for upstream and downstream, it accounts for larger than just the sector itself so seeing a slow down in the real estate sector doesn't mean we have fully a quarter of the economy that is completely so there are room for maneuvers. for example, in the short term we should expect some rebound and recovery in infrastructure

investment if local governments manage their funding as we expect but in the long term, the plan at least for chinese authorities, is to support consumer spender, it's to support higher technology manufacturing, it's to support innovation so we've talked about this for many years, actually, and now this rotation in the model of the chinese economy going from the older more traditional sectors, such as real estate, investment, going toward the next phase of higher value added manufacturing and consumption. so, of course, that's the long run target and it doesn't deny the fact that the chinese economy is on a long-term slow down path for example, for the coming decade we didn't estimate for chinese growth potential and

that should step down towards 3.8 and 3.9% on average over the coming decades compared to 7 or 8% over the past decade. so we are on a path of long-term slow down, but there is as you mention, point to, change in the structure of how this growth is built. >> thank you for joining us. senior economist for asia pacific euler hermes a traffic light coalition becomes more likely in germany as the greens give the go ahead to start talks more on that after the break

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welcome back to the program. germany's green party has given an official go ahead for coalition talks with the central left sdp and the s fdp the fdp is the only one in the

trio left to make a decision let's get to annette with more is it only a matter of time before the fdp agrees to start coalition talks and outline what has been agreed so far >> yes, it's just a matter of time the fdp is meeting today at 11:00 local time, berlin time, so roughly in 45 minutes and it is widely expected that they are also endorsing the start of coalition talks because they got what they wanted, and that is no tax hike. so every of these parties actually got something -- brought something home to their constituencies which should make their members happen the spd got the minimum wage increase, which was crucial for them or to them. and the greens got the earlier exit from coal something that is very important to their members and, of course, the liberals, they wouldn't like -- or they

would not agree to any coalition who then would hike taxes. so they got like no tax hikes and adherence to the debt break to bring that home to their party members. so i i guess those exploratory talks came to a very good consensus, that's the reading here in germany and the coalition talks can start on thursday of course, the devil is in the detail and especially the financing will be a key issue. how to finance all these things they want to do, and at the same time honor the debt break, which is a constitutionally enshrined thing here in germany, which is not allowing to make more debt so essentially that will be really the key issue here. the leader of the -- the co-leader of the greens is said to be also interested in having the finance ministry on his

reign. just take a listen perhaps of what was said yesterday when they stepped out of the party convention of the greens >> translator: for us, for the greens, it is indeed the case that we're currently writing a piece of green history we're on the verge of becoming part of the federal government again for the second time, only the second time it has to be said in the long history of this federal republic for the second time we've been given the responsibility not only to describe this country's fate also to take responsibility for it, to tackle the tasks and stand up for them ourselves. >> so this is the co-leader of the greens and who will play an important role in any formation of a german governor, either at the helm of the finance ministry or the interior ministry will be

under his responsibility going forward what we'll see next is on thursday they're going to start the official coalition talks and olaf scholz wants to have a government ready at the latest by christmas >> thank you so much for breaking it down for us. i want to bring in christian odenhall thanks for joining us. speaking to my colleague, annette, who's been covering the twists and turns of the german election for us the last several months she outlined how one of the big questions for these three parties is how they plan to finance, to fund the green transition at this point it looks like they ruled out tax hikes, shifted away from a change in the debt break, how are they going to navigate moving forward, funding all the ambitious investmentment plans that they got. >> it's a tricky balancing act as you said, this is -- they

have ruled out the two easiest ways, increase debt or increase taxes. they need to find creative ways in the middle. the german debt rules even though they look very strict on paper, allow for some circumvention of the debt breaks for example, if you have a somewhat private distanced investment fund that the government can add its funding to, as long as it is a legally self-sufficient entity, then it doesn't count towards the debt break or if you capitalize state owned businesses which are under full government control but privately set up, then this is another way of circumventingth debt break so there are ways to do it but it does require a bit of creative accounting, i admit that >> as annette highlighted, the finance ministry is still up in the air. obviously this is a crucial appointment.

how do you see this playing out in who will ultimately succeed olaf scholz if the three party coalition is successful. and if we see christian lidner take the position, are we looking at a harder stance, talk about how you see it unfolding with the financeministry. >> it's become sort of the most important position in government after the chancellor it's usually custom that the second biggest coalition partner takes the finance ministry but this time around we have three and the three democrats are the ones jumping across the aisle as it were joining the two center left party. so we have the claim that they are the first in line to choose the biggest ministry that being said, the agreement that we've seen so far is sort of fiscally strict enough so it doesn't necessarily need a free

democratic finance minister to sort of get the symbolic victory of fiscal, you know, strictness in government. and so i think this is more up for grabs than i would have thought before the coalition -- before this paper came out the greens definitely want it. they know it's sort of a crucial ministry but at the end of the day their most important issue is climate change and getting the green investment agenda put into practice. and some say, well, if we agree in the coalition agreement that there is a certain amount available for this green agenda, isn't it more important to have the ministries that actually spend that money rather than the ministry that actually give out the money. so it may be we find ourself with a climate minister and big ermine industry for the greens spending this money. what it means for the fiscal

stance overall, in germany, i think most of the fiscal stance would be agreed within the coalition partners and among them on the european level it's trickier you have a german finance minister navigating this transition out of the pandemic spending but that being said the german finance minister's role is finding and forging compromise among everybody else this is the weight of germany's national interest of europe and my sense is this will shape christian linter more. >> let's wrap up on pension because pension reform is a hot topic, of course, within germany. i think many were hoping the policy paper put forward on friday would include more changes to the pension system but my understanding of what we saw on friday that no cuts or

increasing in the requirement age were agreed from an economic perspective is that disappointing to see >> the parties went into this campaign with mutually exclusive pension policies in a way. so it was going to be interesting how they figured this out the social democrats got the promise of securing the 48% line with just sort of the replacement rate of the pension compared to the last wage in the public pension system and the free democrats got their what we call the stock market rent which basically means allowing the german public pension system to invest in the capital markets. so this sounds like a compromise, but with the demographic change ongoing it seems they have simply postponed most controversial issues, namely, for example, increase in the pension age or cuts in the

retention rates. probably they figure if the recovery is strong enough and the pension system gets funded via the wages in the german system, if the recovery is strong enough we don't necessarily need to decide it in the next four years and postpone it to the next government. not sustainable but probably politically expedient given they have so many thorny issues to solve. >> thank you for sharing your views. chief economist center for european reform, christian ondenhall. coming up, the heads of the central banks weigh in on inflation. we'll discuss next

welcome back to "street signs," everybody i'm julianna tatelbaum and these are your headlines. european markets slide into the red on inflation concerns as the prospect of central bank tightening drives bond yields to multimonth highs the bank of england's andrew bailey warns that rising prices

may push the central bank to step in but christine lagarde tells the imf it's transitory. >> we have no reason to believe the supply bottlenecks and disruptions are going to last long enough for inflation to then be fed through second round effect of significance china's gdp grows at the weakest pace in a year weighed down by the energy crisis. but consumption remains strong as september retail sales tops expectations. phillips cuts outlooks with the company citing supply chain issues and lack of parts the ceo tells cnbc despite shortages orders remain at an all-time high. >> we saw a shortage of containers and the ecomponents made we could not deliver as much as we could have. we are sitting at an all-time

high order book but we could not fully realize that we are about an hour and a half into the trading session and it's red across the board. we are in retreat mode after last week's strong run for the s stoxx 600 gained about 2.56%, the second positive week in a row. but this morning, the china data out overnight weighing on sentiment. and watching german with the exploratory talks going well, and now bracing for formal talks to begin a big week for earnings we have 78 companies reporting 58 in the stoxx 600 this week. data coming through from the uk on wednesday and flash pmis toward the back of the week, so a busy week for macro data and earnings european investors a little bit cautious headed into the week.

in 4x markets, a look at bond yield we'll get you a picture of 4x markets in a moment in terms of what's driving currency, bank of england's governor signalled over the weekend that the bank of england needs to act and raise rates if these pressures persist. the gilt is 1.16%. and sterling on the back foot about 20 bases points or so lower. the euro also trading a little bit lower versus the dollar down about 10 bases points or so 115.87 this is the picture for wall street red across the board for wall street this morning as well. fairly contained moves lower we have the dow jones looking t open 60 points lower, nasdaq about 50 points lower. we did see u.s. stock markets advance on friday in a solid close to a positive week for u.s. markets

dow ending about 1.6% higher, s&p 1.8% and nasdaq 2.2% higher for the week christine lagarde has looked to disspell inflation pressures speaking at the jacobson lecture she also said the ecb is keeping a close watch on potential second round effects that could lead to permanent price rises. >> obviously it's the million dollar question. you know, how long will transition be? many of us, at least, do believe that the inflation is largely transitory, largely temporary. but equally not short-lived. we have no reasons to believe that those supply bottlenecks and disruptions are going to last long enough for inflation

to then be fed through second round effect of significance there might be some second round effects, we are obviously very attentive as european central banks to wage negotiations that are beginning to take place in europe to potential second round effects. but at the moment, we are not seeing much of that. >> i mentioned the comments from governor andrew bailey are driving markets this morning he made no attempt to dismiss expectations the uk could see a rate rise before the end of the year speaking before the g-30 group of central bankers on sunday bailey said the boe will have to act to supply chain shortages and surging energy prices. the uk cpi topped 3% in august with estimates it could hit 4% by september it's a big week for uk data we

have inflation figures due on wednesday for september. it will be interesting to see how inflation has progressed over the course of the month and obviously big implications for the bank of england. let's look at gilt and how they are trading this morning when he the whole gilt yield curve higher, 30 year trading at around 1.4%, the 10 year yield around 1.17% despite climate change plpl pledges across the globe, investments remain lower than levels dee dra cooper joins me now, comanager of the global environment fund thank you for being with us this morning. reading through your bio, you've been looking at environmental

investing for nearly two decades. it feels as though environmental investing sustainability have really only entered the main stream over the last few years i'm curious how that has changed your job and changed the investment landscape for this to move from the margins to the main stream? >> i think you're absolutely right. there's been more progress i think in the last 18 months than in the previous 18 years and that's fantastic and that's, you know, given a huge amount of attention to the sector but notwithstanding your opening remarks are also right global climate finance today is probably about 6, 700 billion, that number needs to be 4 trillion just for the energy sector and add the other sectors more like 5 to 6 trillion. then there are the more difficult questions of how do we mobilize capital and how do we do it in a way that has an

impact on real world emissions that's what we're really trying to do with the impact report for the strategy that launched today. because we know that you can have a low carbon portfolio by having a portfolio that has a lot of asset-light companies that doesn't necessarily mean you're investing to help reduce real world emissions so we try to report on every position we hold and not report on just their sustainability data, which has to be viewed in context and with explanation but actually report on the things that they're doing to help reduce real world emissions, not just those portfolio emissions. >> deirdre different companies are taking different paths to the green transmission i'm curious when you think about investing, how do you incorporate those different approaches into your investment process? >> ours is a really global

strategy we're very acutely aware of the fact that 90% of emissions going forward will come from emerging markets and the vast majority of emissions today are also in emerging markets, even though if you look over history, of course, those countries didn't cause the problem. it's the stack of carbon rather than the flow that matters so our strategy is overweight on emerging markets because that's where you can have the most impact in terms of investments to help solve climate change and we see a lot of the supply chain for climates that's in emerging markets. looking at the raw materials, the lithium, cobalt to make the materials, even the manufacturing of the batteries, a lot of that sits in emerging markets. so we think it's an ability to have a positive impact because a ton of carbon avoided in the

emerging market is intrinsically more valuable than one in a developed market because of where they are in their industrialization market but to have the outperformance because a lot of companies will thrive from the tailwind as we said in the beginning we said this grows from 4 to 6 billion to 4 to 6 trillion and those companies should outperform. >> it feels like we are in a tricky period, because asset managers, portfolio managers are used to valuing companies based on pe multiples, looking at cell cite research which is divided on a sectoral basis but when it comes to decarbonization, it's a different topic, a different knowledge set. at what point will investors begin to put a premium and maybe they are already, put a premium on companies that are investing in decarbonization, even if it

means short term detriment to their business model to their business performance >> i think you could not be more right. our genuine belief is that we are moving to a world that is going to price and value externalalties, not just carbon, might be bio diversity, human capital, a company's role in society much more quickly than they ever did before and that requires a completely different investing mindset, the way that we looked at companies ten years ago and is not the way we're look them in ten year's time so the entire staff has gone back to work we worked on a climate training program to ensure that everyone in our business understands climate risk both physical and transition risks and incorporates that into their cash flow model and investment decision making. i think that will allow us to

help find the companies, as you say, that maybe are investing a lot today so not seeing it in the cash flows but that will turn into much fast ergrowth, better returns in the future and we are already seeing that p you look at the companies we hold in the strategy in the u.s., for example, we hold a u.s. that is net zero energy they've outperformed the rest of the peer group because they've been so early in terms of investing in decarbonization so they're more than twice as big as the next biggest. the auto sector ev sales are still single digit percentage of car sales but you look at the combined market cap, they're almost half the cap of the auto sectors. so we see it across sectors and we believe the trend is just beginning. >> let's wrap up on how you approach green washing and what sort of advice you may

have for investors who are trying to distinguish between gren initiatives and green washing. >> it's transparency i'm here because we just released our global environment impact report and that report doesn't tell you just what the metrics are for the portfolio it doesn't tell you a selection of good news story from a highly selected list of companies through the portfolio it talks about every hodding and the financial data and non-financial data what is the company doing over times in terms of emissions and what's it doing well and badly, so we feel like sustainability reporting needs to grow up and look like financial attribution. no one would tell you their top five positions you want to know the bottom finve and the same needs to move to

sustainability reporting that we need absolute transparency and investors know every position and why we, as a manager, feel this fits with an environmental strategy. >> great to speak with you this morning. thanks for taking the questions. food for thought speaking on the asia stage of our sustainable future forum earlier today, the mall dooefs minister said the world's biggest polluters need to step up. >> i don't think the largest entities are listening to what's happening to our world we have seen what the ipcc reports says and we understand what it means for countries like the maldives with 1.5 degree in area that means a large percentage of coral reeves in the world could die and that is the bedrock of

our economy, our protection and the survival of the maldives depends on the health of our r reefs. so i don't feel and believe the largest developed world is listening to the science listening to what's happening to small island countries like the maldives >> you can watch a special week of programming exploring new issues from europe and asia fostering sustainable growth you can catch it all week on youtube and cnbc.com today's theme is responsibility and regulation. we'll speak with imagine to founder paul polman who said corporate leaders have a duty to engage catch that at 12:30 cet.

welcome back to the program. phillips has lowered its 2021 outlook citing the ongoing

global supply crunch as well as a recall of 4 million of its devices. speaking to cnbc, the ceo said the group was able to make enough product but couldn't deliver it. >> during the quarter we were also hit by increasing supply chain challenges we saw ports delaying handling of shipments we saw shortage of containers and, of course, the ecomponents made that we could not deliver as much as we could have we are sitting on an all-time high order book but we could not fully realize that. >> apple will hold a launch event later today with investors awaiting the announcement of new products including a redesigned mack book pro. they've spent two years revamping the laptop they're also reportedly set to reveal more computers will rely on their own chips instead of

intel processes. ben, what are you expecting from today's event? >> i think you gave us a summary. the big news is going to hopefully be the updated macbooks and, you know, big step forward there in terms of their new chip which has been performing well. the apple platform seems to deliver benefits in terms of efficiency and processing power. but on a more mundane level i'm keeping my fingers crossed they'll have their mag safe charger, so when you trip over the wire you don't send your thousands of pounds worth of macbook tumbling to the ground. >> sounds like an improvement. before the pandemic, many seem to have been under the impression that apple was neglecting the macbook series in

favor of new businesses like the apple watch, iphones how important are macbooks to apple's overall business >> they're extremely important i think you are right. there was a feeling that apple had neglected the line perhaps with the benefit of hindsight we can now start to understand that the work they were doing on the chip sets that go into them had perhaps affected their road map a little bit but they seem to be doubling down very much on this now and it's part of that broader ecosystem that apple is delivering to their customers. they like to have you connected in a whole host of different ways and whether the touch point is an iphone or a macbook or watch whatever, they bring all those things together and it really acts as a tremendous lock in for the apple freight train >> when it comes to the lock in, apple has now, for years, been trying to get the investment community to value it more as a services company obviously the more apple

products you have the more likely you are to be hooked in, like you said. if you look ten years down the line, are we going to be buying hardware from apple or could there be a time when you actually don't even pay for the hardware you just pay for the services that apple provides? >> i'm not convinced we go to a fully services model but there's no question that apple's services business is a massive differentiator, certainly on the iphone franchise, for example, apple is the only phone maker that's able to derive ongoing revenue from dev devices. contrast that with samsung or any other maker they rely on that margin when you buy the phone and hope you buy one in the future even for apple where there's a vibrant second hand market, the iphone is a gift that keeps on giving, because if you buy one second hand, that keeps driving

revenue so it's a huge competitive advantage. in answer to your question about apple as a service that's something we have predicted in the past and we could move to a model not that the hardware is free but perhaps you don't necessarily own it so we are seeing trade in programs where you can buy an iphone, for example, and get a committed residual return rate so a price you get for the phone after a period of time and then spin it out. could we see a bundle where you can get updates every two, three, four years of devices and that's locked in as well, perhaps that's something they could consider >> interesting to think about. what is your sense of how apple is doing on the supply front right now? where are they in terms of their supply chain issues? >> super hot topic, the question i get asked more than any other. apple seems to weather the storm better than some others if i was

a consumer of electronics i'd be worried. the component shortages seem to push further and deeper into 2022 apple is legendary in terms of its control of the supply chain. it's important not to forget that's where tim cook's dna was, he came from that role to become ceo. i think that apple is better placed than most it has the scale customers want to serve them so they get prioritized over rivals. but it is biting and we've seen speculation that there's been challenges with the supply for the iphone 13, also the apple watch series 7 in particular seems to be very constrained. but i would say apple is in better shape than some rives. >> i have to say i can't stop looking at that massive cell phone in the back of your shop what is that made out of >> that model there you can see on the screen is a -- it was a model that was used in retail to

promote the old motorolla phone in the 1990s it's part of the mobile phone museum or mobilephonemuseum.com. it's a charity looking to safeguard old mobile phones and education. it makes a fabulous backdrop, though >> it does ben, thank you for taking time to speak with us this morning. let's check on wall street how u.s. futures are shaping up, red across the board dow jones set to open 80 points level as investors brace for a big week on the earnings run that's it for today's show i'm julianna tatelbaum thank you for watching "street signs," "worldwide exchange" is coming up next.

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it is 5:00 a.m. at cnbc global headquarters here are your top five at 5:00. investors bracing for a busy week earning season kicks into second gear, tesla, ibm, netflix and many more on deck. crude climbs higher as options traders pile in to more bullish bets some calling for $200 a barrel in europe. bitcoin's boom showing no signs of slowing down as wall street prepares to welcome the first crypto futures etf. china, third quarter growt