and the holy ghost ♪ ♪ they caught the last train for the coast ♪ ♪ the day the music died ♪ happy fourth of july welcome to "street signs." i'm julianna tatelbaum these are your headlines european equities off to a solid start and then amid jitters and soaring prices. and rising risk of global rece recession. the banking boss calls on raising rates more quickly and the dak under performs

as germany moves to a trade deficit and weaker demand from eu countries chinese covid shutdowns push tesla to the first quarterly decline in more than two years on deliveries. raising questions on the ev maker to hit targets. very good morning and warm welcome to "street signs." happy independence day to those stateside. the stoxx 600 is trading higher right now .60% we had a flat session on friday last week overall with the stoxx 600 pulling back 1.4%. the fourth negative week in the last five. we had a pull back stateside

turning negative on sentiment for the previous week. clearly there is uncertainty and volatility continuing to make its way through markets. this week, it is all about the labor markets stateside. we get the survey on wednesday and payroll and claims on thursday the labor market is important for the federal reserve from here turning to the different boards in europe let's see what is behind the rally. green across the board ftse 100 is up 1%. strong gains in the energy stock. the index to the energy sector dak up 0.1%. we are still in positive territory. swiss market showing strength this morning up 1% we're up .20% in italy and spain. from the sector perspective, the majority of sectors trading

higher oil and gas up 2.6%. telecom up .25%. on the down side, pressure in real estate. technology down .90% nasdaq dropped 4% for the week overall. looking at the energy names in more detail. energy is leading the gains amid jitters overni tight supply and raising prices warning a recession is on the way as inflation soars inflation in turkey hit 7.8% topping the it 24-year high. inflation cliembed 4.5% which is

short of forecast. amazon founder jeff bezos speaking out over inflation. accusing the white house of misdirecting consumers or a deep missunderstanding of market dynamics he is calling on energy producers to bring down the cost ofs gasoline at the pump kari next jean-pierre speaking out saying that basic market dynamics is a market that is failing the american consumer. the deutsche bank ceo says he would like the ecb raise rates more quickly than previously announced. rise of inflation is increasing the risk of global recession

next year. we have the senior market analyst with us. susanna, it is great to have you with us. it was miserable for equities. reasonable to believe things will be different in the back half of the year >> miserable to say at least certainly europe has had a lift at the start of trading. i think what we are likely to see going forward is volatile environment. i think, of course, the u.s. earnings season kicking off through the month will be closely watched and just to find out if that dent in consumer confidence will start to move through a drop in revenue. that will be the outlook that investors will latch on to to establish how the economy will stay the signs are looking good with the drop in business and

consumer confidence. i do think, though, that what the focus will be on not whether there will be a recession, but the likelihood of that looks much higher. how prolonged and deep it could be is more focus going forward. >> you mentioned earnings season it feels this could be a catalyst for markets what specifically are you going to be watching when it comes to earnings it sounds like you are keeping a particularly close eye on what you hear from companies stateside? >> yes as far as advertising revenues and the likes of facebook and alphabet and powered by ap appetizing revenues. it is the key of how confident companies and businesses are going forward. that is certainly one to watch just how willing companies are

still going to be to spend and grow going forward or whether they will batton down the hatches and ride the downturn in the economy. those indicators are really how consumers feel there is a savings, but it is contin dwindling fast so many consumers are faced with prices and showing signs of being cautious of spending going forward. what is interesting to watch is these spending patterns and behavior we witnessed will continue financing budgets for experiences and services rather than buying more stuff we are already seeing that through and certainly some of the retail data that we've had >> i suppose when it comes to

stocks, everything has a price even if we do see the hit to confidence impacting companies and we see downbeat earnings update, it doesn't mean stocks go down from here. how do consensus earnings look in your view do you think the downgrades fall from here? >> i think there could still be more downside risk from here yes, a certain amount already priced in. i think it is really going back to how deep and prolonged a downturn or recession could be that is what is focusing minds and whether we see any indications of the downward inflation is turned down slowly. there will be a close watch on that as well if more aggressive starts needs to be taken by the federal reserve and other central banks

around the world the eyes on inflation and not on the strength of the economy will main a recession would be more prolonged. i think that's where you could see a more drop in valuations further. the look at the longer term and the time to look at fundamentals and strength of the under lining businesses and drip purchases going forward to try to ride out that volatility with that longer term horizon >> sussannah, what about the consumers feeling the pinch? it is showing up in consumer sentiment survey one aspect of the uk economy that is getting more attention is the housing market and how it will hold up as the bank of england raises rates and people continue to feel the pinch from higher prices.

what is your stake on the take of the uk housing market >> we see housing price growth slo slowing. we are reaching a tipping point. we are seareing the start of hos price growth we see demand which is resilient despite the fact we are looking at more interest rate hikes going forward to tame inflation. i think there is still so much pent-up demand and backlog of people wanting to move since the pan pandemic i think london is already seeing much slower house price growth really lagging other areas in the southwest of the uk where i am right now there is still a real fight for properties going on. i think going forward, you will see more popular areas of the country remain resilient we will see, i think, housing

prices dbeginning to stagnate an dip. that is reflected in the share prices of the house builders it will decline since the start of the year. and the forward books looks resilient. i don't think we will see a dramatic drop off in prices any time soon. particularly given the fact that interest rates may not move up wards quickly as we he see in the united states. there is still demand and the lack of affordable homes and housing across the uk. >> it is certainly important to put the bank of england in context with the other central banks around the world in the uk, there's been more industrial action than we have seen in a while. with the airline pilots in the travel sector looking to protest later this summer. we're looking at potential fuel

price protests coming through. what is your take on the state of workers' satisfaction and who is looking at industrial action in the uk? >> i think we are seeing a real summer of protests right now >> oh, it looks like we lost susannah it seems she was bracing for a summer of further discontent that is what the indication is at this point as workers across various sectoring grapple with the increased cost of living and higher wages that was susannah streeter. let's push to germany. a monthly trade dedeficit. imports came in above expec expectations rising 2.7% the germany regulator warned the credit line provided by the

government for gas storage may not be nuchlenough this amid worries it would push prices higher for the economy which is already facing shortages. the swiss government says businesses will be the first to bear the brunt of the gas shortage it will spare households switzerland relies on imported energy for around 42% of household heating. meanwhile, strike action planned by energy workers in norway could cut the country's gas output by 292,000 brl barref oil. that is according to the norwegian gas and oil survey the risk of more industrial action in the coming months as workers deal with rising inflation. coming up on the show,

crypto hedge fund files for bankruptcy seeking protection from creditors in the u.s. 'ldiusafr e eak.

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welcome back to "street signs. voyager capital can closing all trading. the digital asset broker says the move will give it time to explore alternatives invvoyage e voyager. the move for 3 arrows is filing for bankruptcy. it was ordered to liquidate in the virgin islands after failing to pay an $80 million loan it failed to pay another $670 million loan provided by voyager digital. let's get a look at bitcoin. below the $20,000 mark hovering around that level over the last three months, in

the corner of the chart, we are down 60% anthony abel is joining us now great to have out on the program. antony, you were on cnbc earlier this year and you said bitcoin crypto would be a good inflation hedge. do you still believe that? >> yes, indeed thanks for having me he back on the show yes, we are still looking at crypto we are looking at the fun fundamentals of the processes and space and where it works with the digital asset economy and were that goes to. a lot of what is happening in the marketplace is the deleveraging in the marketplace. we have a lot of action on the block 5 and voyager that you mentioned in the preliminary piece. we see ftx has come in on that one. sam bankman-fried has come in on

that one there is no central bank in crypto it is a very liquid asset. it is easy to liquidate those over others. what we see is high inflationary pressure and people are liquidating and holding off and coming back later. i note the volume of trading was the highest ever recorded. that would indicate to many there is a possibility we will see a bounce up in july. certainly if you look at the 20-day ema or the 50-day ema, we are hovering within that range at the moment. $21,000. 50-day at $25,000. we are still within the bend largely speaking we expect the market to move back up.

we say that on this perspective, we see the crypto as an extrinsic asset rather than intrinsic and volatility we see the market move into the month of july. >> antony, i take your point. you can argue there are fundamental reasons to believe in blockchain and bitcoin. specifically this being an inflation hedge was built by bitcoin proponents as a reason for holding bitcoin. it feels the last six months have been proof that at this point, anyway, that is not the case has that particular pillar of why you want to hold bitcoin fallen away? >> we don't believe so it is a highly volatility

marketplace. the user should tread carefully. the fundamentals are still there. if you look at the way the market is moving, it is looking for inflation resistant assets crypto is volatility it is a longer game. there are opportunities on the short-term and longer-term fundamentally we are still long on many of the stable cryptos. some will fall aside because it is an unregulated space, some exchanges remain the core cryptos, we think, will continue to survive after the market dip don't forget, in this market, there are no banks to step in by and large. it is largely influenced by moves in the marketplace by the institutions or big traders. that does impact the price we expect a reversal in the month of july.

on the longer run, we still are very bullish about where the crypto technologies meet real-world assets and digital assets in the marketplace and starting to enter the marketplace now. in many ways, many of us view the crypto world as a training ground for what comes next >> when it comes to who could step in, if we -- if i join you on onthe path you outlined wher you see the key crypto assets recovering in the coming machmonths where will the investors come from today a big part of bitcoin and cryptocurrency has been retail into slower growth and high interest rates and incomes squeezed as a result discretionary income could become under pressure. who will step in and buy these assets >> as i said, you have ftx

starting to move in the wings to support the exchange that are out there in the positions they have we still see a lot of large institutions in a high inflation environment, the market is looking for higher returns. it diffis difficult to finds th with discretionary incomes or traditional asset classes. when we see the market move north again, we see people moving back into the market again. an lot of this is deleveraging the risk when they spot the bottom of the market >> you mentioned ftx and sam bankman-fried stepping in. he has become the buyer of last resort in many cases >> arguably. >> what do you make of the consolidation of the industry?

what are the repurcercussions o the consolidation of power under him? >> it is fascinating going back to the dot-com era and how the markets move, you know there will be winners and losers it is up to everybody's analysis to see which will be there will be a lot of reduction of cost. we have seen coinbase lose 14% of the work force. crypto.com as well it will be affected by the issues of inflation and shrinkage in the marketplace some will fall by the wayside and some will survive of the. >> antony, i appreciate you taking the questions

great to speak with you again. antony abell, director of variable pitch. covid lockdowns have pushed tesla to the worst delivery in two years. the ev maker delivered 254,000 in the second quarter. the elon musk company cited supply chain challenges and factory shutdowns beyond its control. tesla shutdown the shanghai factory for three weeks in april. fintech firm klarna is looking for more capital it is 1/7th the value from a year ago klarna told cnbc it will not comment on fund raising. we caught up with the ceo of

klarna last month and steve asked these questions about the company. >> that is unheard of. it gives us a strong recession proof model. we havehave seen that in the uk as we move to more returning customers that we are familiar with, we see a massive swing those coming on board in the u.s. and that is reduced numbers you see and we are seeing more customers coming on board. i think you're wrong, sir. there is a recession proof model. we look to meet this ninflation era. >> global volume fell in the first half tech was the top sector for deal maki

making global listings fell sharply the worst hit is 85% year on year volumes in the u.s. fell in the previous year from previous highs in early 2021. leslie picker filed this report. >> reporter: we had an onslaught of factors during the first half of the year, a little more than 2,000 deals signed of the that is less than half the 4,700 from 2021. this is part of the reason why we have seen sizable declines in the publicly traded firms especially with those with buyout exposures overall, jitters around less deal activity will play a role in bank earnings in a few weeks as pe has become an increasingly large part of the overall m & a

market a large drop off in banking revenue in qq2 relatively chilled market for sales as well. eventually valuations will stabilize and the shops are hoping they will at the lower levels they have plenty of capital to deploy $9765 billion in the u.s. alone. additionally, the depmise of th spac market has brought on competition. for cnbc business news, i'm leslie picker. >> it is fascinating to see trends develop as market volatility continues we whad an interesting conversation with raymond james. and the take privates are still in good shape. 2021 was a record year forte

privates valuations come down and this should be ripe opportunities for private equity we know it has been sitting on dry powder for years now this dip in valuations could provide excellent evntry points for private equity are they waiting for krcorrectin that remains to be seen. we have downturns and we are still seeing interest from private equity and screening at this stage we will take a quick break coming up, italy met the criteria for the second installment of the eu recovery funds. we'll have the latest after this break.

welcome back to "street signs. i'm julianna tatelbaum these are your headlines european equities off to a solid start with energy leading the gains amid the sfjitters overnih

supplies and rising prices. deutsche bank ceo cites rising risk of global reflreces. amazon founder jeff bezos reignites his future with president biden over inflation and a deep misunderstanding of market forces. and chinese covid shutdowns pushed tesla to the first quarterly decline in deliveriie raising questions to hit the delivery targets we're an hour into the trading session. green across the board. we have been gaining momentum. dak up 17 points we are flat at the start of the program. we have the ftse 100 up .90%

swiss market up 1% smaller gains in italy and france let's look at the market in terms of currencies. euro holding steady against the greenback at 104.26. the u.s. dollar trading firmer he g against the yen. still trading below the $122 market it is a big week for labor stateside. we have the jolt survey and payroll on friday and adp and jobless claims on thursday a lot to watch on the data front. let's look at european fixed income we have the ten-year bund at

1.27%. it wasn't long ago we were above the 4% mark. a lot of action in the fixed income markets as recession fears continue to dominate the market narrative a lot of focus on the ecb and what it has to do to tame inflation. on the ecb they are looking at options to prevent banks from earnings a multibillion scheme ahead of the first rate hike this month a total of $2.2 trillion loans during covid to prevent a credit crunch eurozone lenders could gain $24 billion euros. the governing council will look at places loans back on deposit at the central bank sources say. italy met the credititeria

the recovery funds it should receive the second installment in the coming weeks. we have wolfgang tenaeo here with us. they met to qualify for the eu funds. talk to us about the significance of the next installment. what does it mean for italy? >> it means, as you suggested, $24 billion. no more than that. if you look at the measures, these were federal decrees

the controversial stuff has been delayed for the second half of the year that means competition and the justice system and some review of the pension system. it is good to get the money, but again, final point from me on this if they look at the perspective, italy is supposed to cash in $40 billion this year. the government has spent $45 billion to try to soften the impact of the higher energy bills. that is where we are at this point. >> you mentioned the more politically challenging reforms. i think back to when mario draghi took the helm in italy and many people had high hopes for who they know as super mario for his time at the ecb. how would you rate his performance in italy so far? >> first of all, it is difficult for everybody even when you are

mario draghi the optimism there was misplaced. especially with the parliament we have. at the end of the day, italy is a parliamentary democracy. you have to go through parliament to get things done. you look at the people in the parliament and that was a concern. on top of this, mario draghi had to deal with the pandemic until very recently. if we are looking at the inflation rates in italy now 54,000 people per day. nobody wants to hear about that. nobody want to talk about covid. look at september and october. and what is missing so far is the measure to promote economic growth in the long run that is missing in the facility plans. there is not much about increasing productivity and that

is a challenge of the economy. i think the record is mixed. draghi now is at the end of his parliamentary term the political back drop is weakening. it will be more and more difficult for him to get things done once we get closer to the elections next year. >> you are absolutely right about many points. in particular on the covid point. it is not something many are talking about right now which is a resurgence in italy. italy had one of the strongest responses in europe because of how hard and fast and early it was hit in the first wave back in 2020. could we be looking at return of serious restrictions in italy? is there appetite at the political level? is there appetite among the public for that? >> they already have to review the plans. and introducing masks in

workplaces and so on it will be difficult to get the public to get on board with stricter measures, especially given the fact we are getting closer to election and some political parties will try to score points around it it is a tough job here hopefully what i just stated before is wrong. the numbers are concerning it is not just italy it is everywhere in europe if you look at greece and uk and we're not paying much attention to that. we are trying to enjoy the summer as much as we can what is interesting is the numbers are increasing during the summer which was not the case last year let's see once we are in september and october and if we are forced to spend more time indoors. >> let's bring it back to pol politics luigi left last month. talk about the issues for mario draghi's government? >> draghi is meeting this afternoon with the leader of the

five-star movement that is a body of political members and they have nothing to propose at this point. the only thing he can do is threaten to pull out of the council so mario draghi will waste his time to talk about it. draghi might be forced to see and form a new government. there is a election at this point and you never say zero the reality is leaving five-star, as i mentioned before, they are all posturing for lection. the political parties are generally fairly weak. none is ahead of anybody else. this will get worse, especially after the summer with the budget cycle. we have a regional election in sicily in october. that is a test for the

five-star. the political back drop will be noisier and more difficult for the government to get things done >> everyone in financial markets is keeping an eye on italian bond yields of t ofyields we have seen a significant movement now the ecb has tried to come out with commitment to say we are going to contain spreads how does the situation compare italy for the 2011 debt chrisis? how are you thinking about the range for spreads? >> i think the situation is fairly different here. first, the downward trajectory in italy second, we have been able to exchange maturities for seven years. the banking sector is in a much better shape as well even if it doesn't look it

politically, both at the national level and european level, we have broken certain taboos if i look a view, it is not a concern. inflation will help to get rid of the debt. it is actually the long-term outlook. it is the growth story there isn't much growth. i'm uncertain if the recovery fund will make a difference. let's remember, out of the recovery fund, the bar is low. that is additional debt. the challenge for italy remains the same as the old one. trying to bring back sustainable growth over term that is a concern that i have. >> thank you for sharing your analysis with us

>> thank you russia has captured the ukrainian city of lysychansk the ukraine president volodymyr zelenskyy confirmed the withdrawal of troops in the area saying will save lives volodymyr zelenskyy vowed to regain ground. >> translator: if the command withdraws people from the certain point from the front with the greatest fire power, there is a chance of one thing we will return thanks to the fact tactics when someone in moscow reports, let them know the reports before february 24th. in the spring and now, let them

evaluate what they got over this time and how much they paid for it the current reports will turn to dust as previous ones. we are gradually moving forward in the kharkiv region and the sea. snake island is a good example there will be a day when we say the same about donbas. >> for the latest on the ground, matt bradley filed the report. >> reporter: russia gaining more ground in ukraine as the defense ministry claims to have taken the ukraine's and giving them control of the province. volodymyr zelenskyy making this promise. we will return, he said. ukraine does not give anything up ukraine is once again bringing the fight to russia itself moscow says missiles killed three people in belgrade

civilians are bearing a huge part of the burden with american volunteers also caught in the cross-hairs. his son alexander is one of two veterans captured after traveling on their own to help ukraine. she just had her second phone call with him. >> he sounded tired. >> reporter: alex said his captors were ready to negotiate. >> are you worried >> of course i'm worried remember before alex went over there, he said, mom, if i should die over there, just know that i was doing what i felt was a noble cause. >> reporter: it is unclear who is holding alex. it is likely pro russian ac separatists in ukraine. >> i'm proud of him for being

willing to give up everything to go over and help these people and to defend democracy and to save, hopefully, from this becoming another world war i'm just -- i'm just so proud of him. >> reporter: having taken the city, the russians are focusing another city west where russian shelling killed six people today. we have fresh lines on uniper right now, a spokesperson for u uniper saying gas receipts are 50% of volume. they went commonon to say they t comment on the news of uniper. we have shared how low the volumes are with uniper to try

to provide support to the company. that is the latest on the situation around uniper. shares are down 2.2% this morning. coming up on the show, flight cancellations and delays snarl travel in the u.s. for the long weekend we'll have the latest after this break.

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welcome back to "street signs. r ryanair had the best month in june this is the airline's cabin crew based in spain planned to strike for 12 days to demand better working conditions unions representing the workers urged the spanish government to not allow ryanair to violate labor legislation. the airline had to cancel flights last month

scanwizz air reported a 180% increase of traffic in june. they reported improvement of the planes with the load factor of 86% of the month american airlines experienced a dpglitch in scheduling which allowed pilots to drop plflights in july. they added they restored a majority of the flights. delays have weighed on travel in the u.s. george solis filed the report. >> reporter: before the fireworks begin, americans already blowing up in frustration. >> never come to an airport before wondering if my flight is taking off

>> reporter: the last-minute scramble to get home for the fourth of july tsa screened 4.6 million on friday at the airports >> my wife booked two flights. one of them just canceled. >> reporter: since friday, 1,400 flights canceled and 15,000 del delayed. >> it is a miss right now. no other way of saying it. i've never seen this not in all these years >> reporter: travel experts say it is a perfect storm where supply is not meeting demand calling on airlines to be transparent. >> they have to get in front of it >> reporter: american had a scheduling glitch leading up to 12,000 flight without pilots in july the issue has been fixed and they don't expect operational

impact >> this is not just one incident this is bigger this is not going fix itself next week. >> reporter: drivers facing other challenges >> i think the gas prices are insane >> national average $4.81 a gallon still a bargain compared to california where gas is $6 prices are projected to go higher and other states imposing gas taxes on friday. some drivers still shelling out the green to see red, white and boom >> worth every penny, right? to be with family over the fourth of july weekend >> it really is incredible the global nature of the travel chaos. you see on the video the incredible stories from the u.s. how difficult it has been to travel with cancellations and here in the uk, the stories are plentiful as well. it feels like a perfect storm.

you have thousands of pilots and crew laid off during the pandemic you have the issue of getting staff members back to work and then looking at issues with ground staff and getting more people back to work and in the airports a lot of the delays in uk is related to ground staff rather than flight crew now you have industrial action picking up steam as people, pilots and other crew, trying to grapple with the cost of living crisis and we're looking at a difficult summer ahead the last thing i would say is this seems to push up demand for staycations as families begin to think about the alternative to traveling abroad given the chaos that seems to weigh on the other side of xpected to announce cancellations this week something to watch if you have travel planning coming up.

in terms of the peeweek ahe non-farm payrolls released on friday dow jones industrial average forecast the economy to add 250,000 jobs over the month. sharply lower than may's gain of 390,000. this is after the federal reserve has the minutes released on wednesday rates hiked .75 at the june meeting. we have the adp report and jobless claims plenty of market data to keep an eye on in europe, we are seeing green across the board u.s. markets are closed today for the fourth of july holiday that is it for me. i'm julianna tatelbaum for you celebrating, happy fourth stay with us here on cnbc.

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