inacio, really. it's 5:00 a.m. at cnbc global headquarters and here's your top 5 at 5. wall street kicking off november in the red after the dow's best monthly run in 50 years. futures right now are modestly higher. it is, of course, fed day as jay powell prepares to deliver his fourth rate hike in a row with inflation showing no real signs of abating >> first it was the saudi national bank. now credit suisse is getting a cash injection from yet another

controversial investor that could put its clie ends in an even tougher spot. plus, china and its covid change and it couldn't come for a more crucial time for apple. later on, more advertising backlash for twitter as elon musk detail as new pay-to-tweet subscription service it's wednesday, november 2nd, 2 2022 you're watching "worldwide exchange" right here on cnbc good morning i'm dominic chu in for brian sullivan today let's kick off the hour with u.s. equity futures after a lower start to the month right now the dow is implied higher by just around 75 moments, so some modest gains. the s&p by 12 points and a 50-point gain for the nasdaq

so some moves that are a little more of a wait-and-see-type thing on a fed day one market that was able to lock in some gains yesterday, the small cap stocks outperforming the russell 2000 posting it was up 1.25 of 1% in yesterday's trading. yields steadyish ahead of the fed policy decision. still t treasury 10-year note, 4.5% the 2ee year, 4.505%. the wti crude price for u.s. benchmark prices is $88.72 up 35 cents, up one half of 1% ice brent, up 18 cents

gas up 3%. cryptocurrency, still keeping an eye on the bitcoin. hochb hovering at 20,000. ether yum, down. we send it out to our own araair bee arabile gumede good morning. >> the markets have been trying to weather the storm hong kong's hang seng was actually halted after gaining that 2.1%. that halt in trading coming after a warning of a tropical cyclone. the shanghai composite also then managing to get some gains today

and reverse some of its losses from the week while the cost was fractionally higher. this cos off south korea's inflation did inch up to 5.7% in the month of october in stock news, we did see sony group raised its outlook this was helped by what was a weaker yen and solid sales in the music publishing business, which made up for some lackluster momentum in its gains and business sense of business of course, that does help apple quite a bit. the group has sold 3.5 million gaming playstations. over in europe the investors are focusing on the u.s. federal reserve's policy meeting the dax and ibex are in the red. health care stocks did add almost 1% to lead gains as most

sectors did enter somewhat of a positive territory total utilities slipping around 0.5% a quick one. they've upped their four-year guidance after posting a third quarter beat on sales. sales did rise 1.2 billion pounds on the year the company warned it expects substantially fewer sales, particularly for covid solutions. >> ar belay gumede out there we appreciate it let's turn to silvana henao for the top stories. good morning, silvana. >> good morning to you according to the "financial times," the plan is for the group to invest in a share sale alongside the saudi national bank it's confirmed the deal would result in up to 25% of credit suisse stock being owned by middle eastern investors, the saudi national banking, whose largest shareholder agreed to

invest some $1 billion in the investment bank for a stake of nearly 10% chemicals maker dupont is ending its $5.2 billion buyout of rogers corporation. this marks the first collapse of a major deal in four years over a failure to clear chinese regulatory hurdles the company had said back in september all agencies had rubber stamened the deal except for those in china and china closed its flag ship store in chai nachlt the beijing store which opened in 2013 and was tesla's first in china was shuttered last week. reuters previously reported tesla was considering closing some showrooms in malls in beijing after traffic plunged due to covid restrictions, dom. >> thank you very much. markets bracing for today's interest rate policy decision at

2:00 p.m. eastern time expectations of a hike of 75 basis points or three-quarters of 1%, largely baked in the markets with the central bank also potentially set to signal it could reduce the size of its rate hikes starting as soon as next month yesterday's unexpected rebound in the jolts jobs report likely keeping the pressure up on the fed to extend its interest rate hike campaign. for more let's bring in mariiane bar tell it's good to see you again it's fair to say investors are trying to figure out whether or not this pace of rate hikes can be sustained is it time for the fed to back off a little bit, or is inflation too much of a worry right now for marks overall? >> good morning, dom thank you so much for having me on i don't think we have the data yell for the fed to really back

off. the fed is really committed to getting inflation down, and powell has told you that by saying he's going to keep at it. he gave you the playbook from boca, and i think we're all tired of the bear. we want the bear to g into hieb nation, but i think it's a little bit too early to be calling that i think we're going to have episodic volatility even going into next year, but i think we'll start getting what the fed is looking for. >> i guess, how far are we through this now in your mind, it sounds like we're well past the halfway point perhaps in this particular campaign on the interest rate side of things, and if so, if there is a light at the end of the tunnel, where exactly should markets be positioning as they're forward looking to what may happen after the fed gets to its terminal rate, whatever that

is >> well, the market's going to anticipate the fed move, but, you know, the market is a discounting mechanism, and once the market starts sensing that the fed is going to start to pivot, you know, markets rally, you know, double digits, and it's very interesting because i think you're already starting to see the leadership emerge. you're already seeing energy on a tear, and you're seeing stocks reach all-time record-highs. a space you don't hear people talking about is the defense space, and some of those stocks are really rocketing and hitting new highses. in the health care space, you have a number of them hitting all-time record-highs. and the small caps are the best we've seen in years. i think as we move into year end into the first quarter, i think you're going to start seeing a repositioning into the new

leadership you know, don't forget we actually now have a fixed income market we have rates. you've got rates in cash, you've got rates in the bond market you know, 60/40 is not dead anymore. i think you're going to start seeing allocation into cash and fixed income, and it's actually already started. >> all right, mary ann bartels, thank you. we appreciate it. coming up, new lockdown measures that could push workers to a breaking point. plus more advertiser backlash for twitter as elon musk issues a new paid-to-tweet subscription service. one day after netflix's ad-free launch, they're a little nervous about the product's odds of success we've got a busy hour. "worldwide exchange" returns after this commercial break.

of success of success power e*trade's award-winning trading app makes trading easier. with its customizable options chain, easy-to-use tools, and paper trading to help sharpen your skills, you can stay on top of the market from wherever you are.

as a business owner, and your bottom line islp always top of mind. so start saving by switching to the mobile service designed for small business: comcast business mobile. flexible data plans mean you can get unlimited data or pay by the gig. all on the most reliable 5g network. with no line activation fees or term contracts. saving you up to $500 a year. and it's only available to comcast business internet customers. so boost your bottom line by switching today. comcast business. powering possibilities. ™ well, we fell in love through gaming. but now the internet lags and it throws the whole thing off. when did you first discover this lag? i signed us up for t- mobile home internet

ugh! but, we found other interests. i guess we have. [both] finch! let's go! oh yeah! it's not the same. what could you do to solve the problem? we could get xfinity? that's actually super adult of you to suggest. i can't wait to squad up. i love it when you talk nerdy to me. guy, guys, guys, we're still in session. and i don't know what the heck you're talking about. welcome back to "worldwide exchange." to a developing story we're following in china where authorities are ordering a seven-day lockdown of the area around a major foxconn factory over surging covid cases among the worker population there. this comes as the chinese maker nio is suspending production due to covid outbreaks across the country. our eunice yoon joins us

eunice. >> reporter: thanks, dom the industrial area that houses the foxconn facility says it's going to reimpose very strict covid controls so these are quite harsh the authorities said there will be no transportation except for essential services, that everyone is going to be ordered to stay inside and also to work from home. they're not going to even allow people to go outside and buy groceries. the only time you are allowed to leave the house is to take part in the mass testing rounds so this is seen as potentially very disruptive for the foxconn facility, which has already been hit with a lot of worker issues. they say it's going to last until november 9th again, it was triggered because we see what in a chinese context is a surge in cases of a

reported 359 for a population of 12 million of course, globally, this isn't a very significant number. but, of course, it is enough to motivate the beijing authorities and have a lot of people concerned about the foxconn facility, which is responsible for about 80% of the production factory of the iphone 14 the nio ev maker said it's also going to to be suspending production because of covid controls around its factories. >> eunice, you mentioned the importance of this foxconn facility and apple for its production globally and also for n nio. owe ta you talk about the death count. are they worried do they feel like this is a situation where eve though there's a surge in covid cases,

it may amount to just a surge in sickness without any death coming out of it >> reporter: right if you asked workers at foxconn, there would be a concern about death because one of the things they've been complaining about is there has billionaire a lot of information about the actual virusful so there is concern about death. with policy officials it's not about death but cases. at the top, zero covid policy is what they're concerned about they want to make sure they do not have any cases at all in their jurisdiction the policy has been tweaked slightly the messaging on the ground is authorities have to keep their

cases at zero, and that's why we're seeing so much disruption from the economy, because even though that one case might be someone who doesn't feel well for three days, from a chinese per speck tib, the government's perspective, that's just not good enough. >> pretty self-explanatory zero covid eunice yoon, thank you very much. the chinese tech stocks stretch into a second day despite all of this, jd.com, baidu, tencent holdings, and meituan, this despite the foreign minister saying, quote, it's not a ware of the situation, just to pour more confusion on this. it comes after a long bear run on hong kong and chinese markets as you see there joining me now is miarko papich.

the markets and chinese stocks arguably got a huge boost because of these unconfirmed reports they were looking to loosen restrictions. can you tell us whether or not china is an investable market given all this confusion >> i think in the short term, there's a trade setting up for chinese equities the reason for that is multi-faceted. first of all, the global bond selloff is likely coming to an end. china is very much a tech-heavy market if there isn't like a reopening committee. our sources have been told there was a meeting and it discussed putting together a reopening plan that may happen as quickly as march and the third issue is that we do have a new government in china that will be in place in march, so it does make sense for president xi to want his new

team, which, by the way, we all know -- we've all been hearing this for weeks now -- is purely his team i think you'll want that team to have tailwinds we've seen a loosening up of the realway regulation so it would also make sense that some covid restrictions begin being loosened by march. as an effort to give the new government a tailwind and president xi some political tailwinds from economic recovery. >> so these tech stocks over the course of the last several years have been hit pretty hard because of fears over the xi administration and its crackdown on big tech. it's gotten too much influence it's becoming too much of the big economy. it has way too much sway over what happens with the people and the economy. if that is still the case and president xi has just been elected to an unprecedented third term, making him in some

people's minds an emperor in china, then what does it mean for big tech why would you want to be there if this is the administration that's been against big tech for all these years? >> i think the administration has been against big tech gaining influence. one of the things they realize is there is a way to go too far, and they have gone too far like undergraduate students in china don't dream of working on an assembly line they want to work inhe tnt sector and big tech. unemployment is the third highest in the world after italy and india as far as major economies. they need to loosen up some of these regulatory headwinds in 2021, they didn't do anything most started in 2021 they started to loosen some of that, and i think you'll see more of those.

i'm not saying this is a long-term investment there's a lot of risks that comes with additional power. but is there a trade is there an opening for being long tech stocks in china? i think there is, as there probably will be for tech stocks broadly speaking if the bond selloff globally ends. >> marko, before we let you go, what are your favorite spots on the market then? >> i think for 2023, you know, china is going to look fine, but also i think there's macro trades that are going to work out once the fed backs off that have very little to do with china, i thinks like commodities. also a high beta place to china should do well in 2023, whether it's nikkei, the european stockmarket as well, and that should also ease the bull market and the dollar if china puts a floor in the bottom and the fed backs off. those two will be the most important macro forces in 2023.

>> marko papic, thank you very much. this morning, china global troubles ur quarter outlook the mystery chart revealed we're back after this. ♪♪ energy is everywhere... even in a little seedling. which, when turned into fuel, can help power a plane. at chevron's el segundo refinery, we're looking to turn plant-based oil into renewable gasoline, jet and diesel fuels.

our planet offers countless sources of energy. but it's only human to find the ones that could power a better future. is it possible the only thought that comes to mind is... ♪ finally? this is financial security. and lincoln financial solutions will help you get there. as you plan, protect and retire. ♪ what if you were a global energy company? with operations in scotland, technologists in india, and customers all on different systems. you need to pull it together. so you call in ibm and red hat to create an open hybrid cloud platform. now data is available anywhere, securely. and your digital transformation is helping find new ways to unlock energy around the world. with gold bond... you can age on your own terms. new retinol overnight means

the smoothing benefits of retinol are now for your whole body. plus, fast-working crepe corrector diminishes wrinkled skin in just two days. gold bond. champion your skin. exchange." time for your three stop stories of the morning first you have amd the third quarter results missing forecasts, but sales

from its data centers division held up. amd shares are moving higher after the ceo lisa su told analysts on the call they expect to get rid of excess inventory by the end of the year those shares up 4.3% of the market lisa su, by the way, will be on "mad money" with jim cramer in an exclusive interview tonight a must-watch there, 6:00 p.m. earmark time lisa su, ceo of amd with jim crime jeer stock number two is airbnb third quarter profits and revenue beat forecasts, but growth in bookings slowed to 29% in the quarter from nearly 60% in the second quarter. airbnb says revenues could fall short of revenues as the dollar is starting to affect the business and bookings would moderate the shares in the premarket. and stock number three is young china, those shares jumping nearly 14% in hong kong after

the first food chain's third quarter profits nearly doubled it's the biggest gain, however, the company warns of a resurgence in covid cases as china is darkening its outlook in the fourth quarter. let's get a check on this morning's other top headlines. phillip mena is there with more. phillip. >> good morning. breaking overnight, an exchange of fire on the korean peninsula. south korea launching air to surface missiles in response to air missiles coming from north korea. none landed in south korean territory, but one did get close enough to the eastern maritime boarder to set an an air alert on the island. in a briefing the joint chief of staff called its unacceptable and the military later responded in kind, with fighter jets guiding three missiles north toward the same sea border according to the "associated press." now to the investigation on

the attack on nancy pelosi's husband paul david depape made his first court appearance and pleaded not guilty he's being held without bail he faces a long list of state and federal charges including attempted murder and assault with a deadly weapon he said he was on a suicide mission. he wanted to use nancy pelosi to lure another individual but did not give any further information. speaker pelosi has said her husband paul is making steady progress, but it will be a long recovery. turning now to sports, the big bats came in the world series the phillies would tack on five home runs, tied for the most in a world series game. philadelphia blows out houston,

7-0, a and now leads the series, two games to one. tonight is growing for tonight's powerball's jacket which has surged to over $1.2 billion. it stands a as the second largest prize in the powerball's history. there have been 38 draws in a row without a jackpot winner finger's crossed the drawing is at 11:00 p.m. >> two bucks and a dream, it's worth it to me i'll get a ticket on my way home. shares of amazon doing something for the first time since 2020, and it's not a good ing. we'll tell you it will be huge. we'll be right back.

power e*trade's easy-to-use tools make complex trading less complicated custom scans help you find new trading opportunities while an earnings tool helps you plan your trades and stay on top of the market ♪♪ for skin as alive as you are... don't settle for silver. harness the power of 7 moisturizers & 3 vitamins to smooth, heal, and moisturize your dry skin. gold bond. champion your skin.

as a business owner, your bottom line is moi always top of mind.n. so start saving by switching to the mobile service designed for small business: comcast business mobile. flexible data plans mean you can get unlimited data or pay by the gig. all on the most reliable 5g network. with no line activation fees or term contracts. saving you up to $500 a year. and it's only available to comcast business internet customers. so boost your bottom line by switching today. comcast business. powering possibilities. ™

stocks looking to hit the reset button after kicking the new trade-off in the red. futures in a holding pattern. bracing for the big fed rate decision but with inflation still hot, is a fed rate pullback less likely? and hitting pause. one of the top advertising companies issuing new warnings to clients about working with elon musk-owned twitter. it's wednesday, november 2nd you're watching "worldwide exchange" right here on cnbc ♪ welcome back to the show

i i'm dominic chu in for brian sullivan future's in a holding pattern. it's pretty much unchanged the s&p is implied higher by 1 point and the nasdaq by 13 all of this as we get ready for the big fed rate decision. you can understand why traders are a bit more app prehence irv of taking a position ahead of the big meeting. >> let's get a check on the top stories this morning with silvana henao. >> twitter facing growing concerns among some advertisers as elon musk and his advisors continue to reshape the social platform ipg is recommending its clients suspend advertising on twitter for one week following elon musk's acquisition they want people to wait for clarity on his plan and see whether muffing will be able to

prevent twitter from becoming a free-for-all hellscape as he calls it netflix is set to roll out its ad-supported tier tomorrow, reportedly without a number of programs and other content according to the "financial times," some want to see how well the new service works before agreeing whether to put their agreements on it netflix does not own some of its most popular programs but instead licenses them from some rival studios. in some instances, the licenses does not allow them to run on an ad-tiered version of netflix. a former apple employee has pled guilty to defrauding the company out of $17 million the former parts buyer admitted to taking kickbacks, inflating invoices, stealing parts, and causing apple to pay for items and services they never received over the course of seven years

faces up to a total of 25 years in prison when he is sentenced in march, dom. >> silvana henao with the latest headlines. thank you very much. according to the cme group, investors are pricing in more than 85% chance that the fed raises its benchmark rate by 75 basis points or three-quarters of a percent for the fourth time in a row as inflation, of course, shows no signs of cooling off toward the bank's elusive 2% target rate level looking ahead to the fed's final rate meeting in december, its policy path forward looks a little bit murky, appearing at least to be a toss-up between a 50 basis point and half a percentage point hike or three quarters of a percentage point hike in a row. so joining me now are a couple experts who can help shed some light on this.

there's michelle girard, head of the u.s. markets here in the net midwest. ladies, thank you both for being here i'd like to start, michelle, with you, and the economic picture we're dealing with i had a long conversation last night with a smart man who does trafficking on the treasury side of things, and he pretty much said the fed isn't doing enough. seems like a lot to say. michelle, is the fed doing enough right now >> i think the fed has done a lot. i don't necessarily think the fed's job is done. as you said, the expectation is they'll raise it another 75 basis points and follow that up with an additional 50-basis-point increase in december so there's more to do, but the funds rate is approaching 4 president 5% to 5% that's a lot that's a sizeable move i think the fed has started slow and has worked quickly now to try to get policy certainly

beyond neutral into a restrictive stance as you said, the economic backdrop is not cooperating, if you will inflation continues to run very hot. we're at another high year over year on the cpi. we're still running at nearly 6.5% on the cpi, and the labor market does not look to be cooling very significantly we had, you know, data yesterday that showed the number of job openings it continues to be very high the demand for labor isn't pulling back even in the face of these rate increases so i think it all continues to suggest the fed has done a lot, but still has a bit more to do. >> so, priya, as you look at interest rates right now, in your mind, how much more does the sovereign bond market in the u.s. have to sell off before the rate is picture becomes more conducive to they that the

inflation and economy can co-exist in a more balanced manner >> great question. to michelle's point, inflation is still high and the rate still hot. i think they can continue to move higher. we think that's enough but it's to the upside. inflation may not cooperate, so maybe the front end rates can raise more i do think the long end has peaked it's important to think about what most of us borouge borrow it starts to put pressure on the mortgage market. i think the rates have risen because we're starting to see early signs of the consumer

slowing down you know, we've already seen signs of the housing market slowing down i would argue it's attractive if the economy is going to slow down and the fed is going to be -- the fed is going to final it very hard to ease policy with very high inflation. so i think the long end's done the front end may still have more room to go as the fed keeps -- they're data dependent. i don't think they can give us a whole lot of guidance today. if inflation remains high, they're going to keep going. the front end has room to go higher. >> michelle, did you agree with priya on this one? the only reason i ask, from a layperson's perspective, if you buy into this notion as priya points out, the long side of things, say the 10-year note yield, is topped out at this point, it's attractive, it might go lower because people find it attractive, and short rates continue to go higher. that kind of in the intentional

wisdom has implied recession, economic slowdown, is that what we're going to see, and will that be enough to cool off the inflationary picture over the next six to 12 months. >> that's really the question. we do actually see a recession we have negative gdp growth starting in the fourth quarter and extending through the first half of next year. very mild recession, but a downturn nonetheless the question is, one, will it bring it down, and, two will it prompt them to so-called pivot to begin to shift from a tightening cycle to an easing cycle at some point in the middle or third quarter of next year i agree with what priya is saying i actually think for the fed, even against this weak economic backdrop, it's going to be very difficult to not end up having to raise rates further if inflation does not come down, despite slower growth.

the fed may be in a very difficult position of having to do a bit more in 2023 in terms of hiking, and i think it will be very difficult for the fed to cut rates at any point in 2023 given that we don't have inflation get beg low 5% next year, and that's something the market would be disappointed about because the market is expecting if we do get this recession that the fed will be cutting interest rates, and, again, i think the risk is -- or the fed's decision next year is going to be do we stay steady, or do we have to do more, not do we stay steady and cut. >> so, priya, we'll give you the last word here people call it the pivot i heard joe kernen call it the swivel or something like that the other day. in your mind, before we let this team go, what is the rate, where does the fed stop, and how long do we have to stay at the high rate before we can perhaps take our foot off the brake, if you

can call it that >> i'll add the word downshift without any commit we expect it to stay up all the way until the end of next year we're looking for the inflation to get within a handle, 2.8, 2.9. the fed will say, look, we've done a lot, and then they'll look at the unemployment rate. it's been so hard to hire people that layoffs will be delayed but once they start, there will be a sharp rise in the unemployment rate. we're looking at close to 5% unemployment rate by the end of next year. we think that's when they'll start to be preemptive but they start to cut by the end of next year, an then we have a pretty significant easing psych 2024 it's going to be a difficult year next year because they'll have to send a message to the market they can't respond to slowing growth. >> we'll take will and

commitment apparently. priya misra and michelle girard, ladies, have a great day. credit suisse and one shareholder looking to raise its stake in the lending. and moving shares of one tech company proving to be a match with invtoesrs after earnings we'll reveal that mystery chart after this commercial break. mpl, even if you got ppp. and all it takes is eight minutes to find out. then we'll work with you to fill out your forms and submit the application. that easy. getrefunds.com has helped businesses like yours claim over $1 billion in payroll tax refunds. but it's only available for a limited time. go to getrefunds.com powered by innovation refunds. (vo) is three hundred and ninety-one thousand four hundred and thirty-four square feet... enough space for your ambition?

loopnet. the most popular place to find a space. with gold bond... you can age on your own terms. new retinol overnight means the smoothing benefits of retinol are now for your whole body. plus, fast-working crepe corrector diminishes wrinkled skin in just two days. gold bond. champion your skin. real-time ticket upgrade! meaning... i get to meet my childhood idol. that works. i named my dog joey fatone.

when your customer experience works, the world works. that's why the world works with servicenow. ♪♪ energy is everywhere... even in a little seedling. which, when turned into fuel, can help power a plane. at chevron's el segundo refinery, we're looking to turn plant-based oil into renewable gasoline, jet and diesel fuels. our planet offers countless sources of energy. but it's only human to find the ones that could power a better future. welcome back to "worldwide

exchange." time now for more of your big money movers first up you've got match group. we teased it before the break. expecting better than expected third quarter earnings match is warning the weaker global economy is hitting its brands that serve lower income consumers. nonetheless, match group shares are up 16% in the premarket trade. now, stock number two is the cheesecake factory shares are tumbling after the restaurant chain reported a surprise third quarter loss and sales that missed analysts forecasts. the company says inflation and higher costs continue to eat away at its operations, shares down 7.5%. stock number three is caesars entertainment. the forecast is boosted by revenues of online sports betting. the ceo says october was the best month on record in terms of

the company's properties we're watching shares of chegg after the third quarter results beat forecasts earlier this week the company agreed to boost security as part of a consent agreement with the federal trade commission those shares again up 19-plus percent in the premarket trade. now to a developing story and the latest on credit suisse as it tries to get its turnaround plan off the ground reports this morning the investment bank is garnering one controversial share holder who would like to boost its lending. what can you tell us about this new equity buildup in credit suisse as it kind of tries to get its turnaround track in place? it was saudi, and now it's another big investor. >> yes so last week credit suisse

announced the much awaited plan to restructure its business, trim down and look to sell some of it off and refocus the business on wealth management. do this, there's an awful lot of restructure costs involved the bill came to just under 4 billion swiss francs that's around 4 billion u.s. dollars. to fund this, it had to announce it would do a capital raise. this would be in two parts the first part would be a share placement and the second part would be a rights issued to those existing shareholders. last week they announced that the majority of the first part, the share placement, was going to be coming from the saudi national bank, which is the largest commercial bank in saudi arabia, which the largest shareholder is the saudi fund. we uncovered today that another significant investor in the

early round is the qatari investment authority which is also a shareholder in credit swiss, owning about 5% of that stake. after the whole capital raise, you're going to have just under a quarter of credit suisse shares that will be owned by middle eastern investors because you have smb, the saudis and qia, a long-term saudi investment group, which has owned credit suisse for over 20 years. >> i guess the next question i have is there's been a lot of controversy around the investments that saudi arabia, other middle east investors and private investment funds make. we're not even talking about the liv golf tour and human rights issues is there any threat with a massive ownership group from the

middle east, like you could potentially have with credit suisse right now, that it would reverberate through clients? would some clients look to maybe do business differently or at all with credit suisse because of these investors potentially >> well, i suppose with credit suisse, they have had large middle eastern investors on their list for, as i say, going back a couple of decades so the fact that that's going to grow and become a larger middle eastern shareholding block, that may create some problems for clients, but i think credit suisse has been quite vocal for quite some time, that it would like to see more business in the middle east. it's talked for a while about that being a real growth area in the special area of wealth management it would like to double down the area last week it announced there would be 9,000 job cuts in the next three years across the

group. but, you know, just a month before it was talking about hiring an extra hundred or so people in doha, qatar. so it has actually been quite vocal that it sees the middle east as a growth area. its chief executive was saying just last week, this is going to be one of the biggest hot spots over the next ten years. i don't suppose it's going to be too much of a surprise for credit suisse's client, though, i suppose there are some people who may be a bit more squeamish about some of those ties made to pull and to switch elsewhere, but i think there would be quite a lot of movement in the past year or so for the clients to other growth wealth managers. >> owen walker, thank you very much. on deck for the show here, kari firestone talks about the latest fed's rate decision keep it right here after this break. r 15 walks it gets a little old.

[golf ball bounces off rover] [ding] ugh. here, is cvs health. here, we'll never be told our concerns are all in our head. here, we don't think we should pay more than men for the same thing. or pay taxes for period products. here, we can ask tough questions, day... ...or night. and here, we're actually heard. and because of that, we can focus on getting healthier... together. together.

together. here, healthier happens together. cvs health.

welcome back to "worldwide exchange." let's turn back to the fed and what signals if any the fomc and jay powell will give later on today. joining me now is kari firestone, chairman and ceo of asset management and cnbc contributors there's a lot of conversation around the fed and what's going to happen. we pretty much know what's going to happen at this stage, but what does it mean for markets? do we still v a way to go before things bottom out? >> hi, dom of course, this is the big day, and everyone is going to be trying to read tea leaves. the market with an inability to do that exactly is going to continue to trade within a range. that's where we've been trading for many months, and on days when the market feels optimistic that the fed is going to slow

down the rate increases or the economy's slowing but not going into recession, we strayed higher, and on the days where people become pessimistic, that higher rates are going to go on for longer and the economy maybe is a little bit stronger and there's too much demand and inflation will remain in place and the fed will remain tough? that's when the market trades down so the strategy should be to try to find a comfortable place when you're in equities they're buying large if you're looking for the right place, you have to have a mix between what is defensive and you feel comfortable with your earnings level and stocks that have been washed out and give you more opportunity over the next year or two. >> and which stocks are those because, kari, you always come armed with picks out there i wonder from a stock picker's perspective, what represents a bargain for you in these markets? >> yeah.

so if we're looking on the side of companies that can continue to perform and meet expectations and we feel good about it and have been this year, booz allen. they have a great company in place. that has been a positive whether or not they're consulting to those countries. but that's been a good stock they do not trade for a high multiple all of the waste companies, they had a couple of years where offices and, you know, major commercial buildings were not being used they are now, and that's improved the waste production. they have escalators within their clauses. that's been a stock that's held in and is flat for the year. we still like it o'reilly auto. other people like this one too you can see the stock has been a big outperformer this year, but as long as people are, you know, still driving, can't buy new car, hard to get a used car, much more do it yourself car

repair and professionals working on cars, that's been a great one. we still like it but on the side of stocks that have been hammered and we think have opportunities right now, i'll give you two. one is sales force okay, they've been a tough stock. we think it will continue to grow 20% on the year. they had the slack acquisition the dwiend behind them it might not have been the best acquisition, but it's controlled now. there's more accuracy in the stock. we like that charter communications also has been hit hard. 45% down this year i is like a utility being in the cable business buying back a lot of shares. and we see this over the next year or two as maintaining its growth you know, there's always a little churn, but people need their internet, and 5g is going to command that they have better

internet service in their homes and businesses so those are a few. >> kari firestone. more than just a few i like those picks there we appreciate the time, kari we'll see you soon. >> you bet. that does it for "worldwide exchange." futures are pointing to a muted open that's ahead of the fed decision coming up at 2:00 p.m. eastern time, widely expected that the fed's going to raise by 75 basis points ghs dow's lower by 5 point rit now. "squawk box" picks up coverage it comes up next we'll see you tomorrow this is financial security. and lincoln financial solutions will help you get there. as you plan, protect and retire. ♪

good morning futures relatively flat as markets wait the latest decision from the fed. the biden administration planning to spend $13 billion to help american families lower their energy bills. plus amazon no long never the trillion-dollar club we'll show you the stock move that brought the market cap below that milestone it's wednesday, november 2nd, 2022 "squawk box" begins right now. ♪ good morning, everybody.

welcome to "squawk box" here on cnbc we're live from the nasdaq market site in times square. i'm becky quick along with joe kernen and andrew ross sorkin. as joe mentioned, things are relatively flat. we wait to hear what the fomc has to say the fed will set the rate at 75 basis points this morning the futures up by just a point at fair value s&p futures by 3 the nasdaq up by 25. this comes after a slightly down day yesterday across the board treasury yields haven't budged much either. yesterday the 10-year was below 4% this morning, just above that at 4.04%. the biden administration planning to announce more than $13 billion in aid to moderate and low income americans to lower their energy bills it include