still parked outside. and that's all for this edition of dateline. i'm craig melvin. thank you for watching. [music playing] good morning welcome to "street signs." i'm joumanna bercetche >> i'm goochlarabile gumede these are your headlines >> beijing shuts down after cases in the capital hit a record high. european oil majors jump after saudi arabia denies a report that they are looking to increase output.

instead they may cut production further. and italy's plan of a 21 billion euro asset sale as they look to slash debt and presence to just six countries. bitcoin falls below $16,000 for the first time in two years as the collapse of ftx reverberates as one company looks to deny it is the verge of bankruptcy good morning welcome to "street signs." a story we have been following clo closely. chinese authorities are shutting museums animdmalls and parks

cases are rising in guangzhou which worries of a zero covid approach next year moody's says growth is likely 3% this year. it issued slowing economic growth and pan demic disruption and a market correction. >> let's track the market with the market opening an hour ago in europe. we have seen marginal gains. .30% for the stoxx 600 markets are tracking a lot of what is happening out in asia. particularly china more lockdown restrictions on course there we saw three covid-19 deaths across the weekend

restrictions could be further enforced which would hurt the business economy that has played its part that is affected european markets which we turn to now as well that is looking to be a bit mixed across the trading picture. the european market picture is as it is smi going down ftse 100 gaining .75%. trying to shrug it off ibex up 1.5% what has been interesting is the likes of oil and gas have moved higher today you also have seen the basic resources go into positive territory. nearly 2% higher as well and 3% higher for oil and gas a lot of the chinese lockdown pictures meanss demand is the ke question lockdown putting pressure on

demand you see oil and gas and basic resources moving higher. travel and leisure consumers wondering what happens with that. if you have business in asia, it gets hit other stocks hit, hang seng's tech sector is an interesting one here of course, again, that does come on the back of the restrictions and elements from asia big losses for bibi and meituan in the negative territory. these stocks are on the up these shares are feeling impact of the tighter restrictions among the covid-19 restrictions. you see glencore with the biggest gainer so far in the uk

mining picture anglo american some consumption of the covid-19 lockdown sentiment is what investors are looking at on to the shares fear in the market is exactly what we're playing lvmh and hermes in negative territory. trying to shrug that off a lot of fear in the market asian market, particularly china with the key ingredient to the luxury market as a whole the oil majors gain as i said with demand being the key question mark across the board bp up 5% interestingly enough for shell, it does have other news from it. the chairman has told sky news it is reviewing it's 25 billion

pound investment in british projects this comes after that autumn statement by the chancellor jeremy hunt where the windfall tax extended for energy companies. it is so far up 2.6% nearly 3% higher for totalenergies. a lot of focus on what is happening in tech stocks i have to say we have results from baidu the internet search company in china. the third aquarter revenue beat estimate 32.5 billion yuan. $4.56 billion in the last few months compared to the estimate of 76.2 b

billion yuan this is up 25% year on year. total revenue 2% year on year. i thought what is interesting and this is the subject we have talked about a lot with arjun. the ad spend online is down year on year. that is the picture for baidu. we are seeing a lot of pull back for the tech stocks out in hong kong and china alibaba down 4% today. volatility is in the u.s. market the futures are down, but a bit of a clear message that things aren't necessarily moving in one particular direction stock futures with news from china pushing investors away from growth stocks and perhaps to the defensive stocks like healthcare and utilities

sticking with the u.s., cleveland fed president mester says inflation will need to ease the central bank is seeing signs price pressure are seasing >> we will enter a restrictive stance policy. at that point, i think it makes sense we slow down a bit of the pace of increases. we will have to raise the funds rate we are at a reason able point now where we can then now be very deliberate and setting monetary policy to get back to price stability and an being more judicious and balancing the risk as the pain is back to price stability. >> and mary daly said the level of tightening in the real economy is greater than the central bank target rate daly said the fed continues to be careful and deliberate.

>> as we work to bring policy to what we call restrictive stance which in simple terms the level to require to bring inflation down and restore price stability, we need to be mindful. adjusting too little leaves inflation too high adjusting too much could lead to an unnecessarily painful downturn there is broad agreement there is some kind of lag. there is not immediate adjustment to the policy changes and that it can at least take several quarters uk and european private companies recorded strong performance in the third quarter despite volatility the group lincoln international says they are faring better than counterparts richard olsen from lincoln international joins us let's talk about the relative

resilience of private companies versus public companies. you think in an environment whether it is talk of recession and taxes and austerity and rising interest rates, you name it, there are headwinds that companies are faring worse than they actually are. why are they proving to be more resi resilient? >> there is a triple whammy with energy spikes and labor shortages or price increases and interest rate increases. each of those hitting the company's bottom line. we have seen revenue increasing among 80% of the private companies we're valuing. lincoln values over 15,000 private valuations per year. so within that data set, we're seeing very, very good resilience. >> that is interesting revenue is rising. the theme so far for a lot of the year has been margins rising

because so far a lot of the companies have been able to pass on higher costs to consumers you are saying revenues have been rising as well. what is the outlook for both of those going forward? >> both revenue and ebita margins have been rising for companies. what we have seen is about 80% of companies on the revenue line increasing and just over 60% rising in ebita. showing very strong resilience >> richard, you have the issue where it is sitting at 3.3%. that still comes from the base of 2.2%. it is still a massive gain in the context of percentage gain to longer term or is that something you would look at and if that is beginning to gain is a worry? >> it is something we are keeping a close look at. you are right, it ticked up from 2% at year end to 3.3% now

that is well below what we saw during covid lockdowns when it was 9% we are a third of that we are still seeing interest coverage quite strong among private companies. taken together, the companies are in quite strong financial shape at the moment. >> depose that take away the lure of going public at this time you are seeing it as opposed in m & a activity and listing opportunities. does this give further grounding and evidence that going public may not be the greatest thing to do right now >> there are two separate sets of companies private equity is able to select the companies from which they try to choose the out performers that may be contributing to the selection bias between private companies and public companies it is difficult to say exactly

what the right moment would be we have been through an extraordinary period over the last two years with strong opportunities to list and be able to realize gains in portfolios that may be on pause for the moment in terms of m & a activity and ipo activity. >> richard, i want to go back to something you just said which is remark remarkable the missed payments number got to 9%currently 3%. despite of the headwinds we talked about and you outlined as well why have companies not missed more payments? what is the supporting factor here is it the fact there has been so much government help that has come through or interest rates haven't been biting as much because these companies are sitting on a bigger cash pile? >> we have seen a return to normal trading post pandemic

what we have seen is increased activity levels in terms of purchasing within the companies. that's tended to support the strength within the balance sheets and within the operating performance of the companies >> richard, it's really is a fascinating situation when one looks at the data and thinks the sectors and where they are possibly getting gains thank you so much for the time i really appreciate it richard olsen is the valuations and opinions at lincoln international. coming up on the show. crude recovers as saudi arabia comes outweighing the report that opec plus is considering a hike of hike that's coming up next. has no idea she's sitting on a goldmine. well she doesn't know that if she owns a life insurance policy of $100,000 or more she can sell all or

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welcome back crude prices have recovered after saudi arabia denied the report that opec plus is considering is increase in output hadley gamble has this report.

>> reporter: opec members are in talks and that sent prices spiraling. the only thing that stopped that was when the prince said they never make decisions ahead of sitting down at the meeltting when we talked to the saudi energy minister, he said how quickly they want to react to the volatility they look at demand and six months down the pike the cuts they put in place a month ago would be in place until the end of 2023 unless some major market move happens the other question is who is talking to the wall street journal. the reporters cover opec and done for years somebody is talking to them. whether or not they will be feeling they are speaking outside of the meeting is another question the russians have been open in

the past saying they want to increase production. it was suggested as it has been suggested in the recent past, the uae is one of the countries as well. we have seen uae denying that report it served to highlight how the volatile the market is and tight the market is and how subject it is to the rumoring one question is who benefits from the price vol of the variety in the market as well as this is all taking place against the back drop of the war in ukraine and the pollicization of the energy markets something the russian energy minister said is bad for the economy. frankly, the bigger questions about this part of the world, the gulf arab countries and what they need with the economies to diversify away from fossil fuels

and put money in pockets a lot riding on the decision on december 4th we'll be there live to cover the meeting. >> kuwait denied potential increases at the opec plus meeting. the minister said there have been no such talks and key to maintain stability and balance in the oil market. spencer welsh joingss us to have this discussion. interestingly enough, the last time we saw brent crude sitting above $100 was september or earlier per barrel that was around the same time with suggestions around the reduction in, you know, supply of 2 million barrels per day or so that hasn't gotten the desired effect in the market, it would seem what are the chances that they have to enforce a higher or bigger reduction in place or do we sort of buy the statement

around stability here? >> hi. good to speak to you i agree with what you've said which that what makes the rumor yesterday even more strange and didn't feel logical or reasonable that owe pec plus announced a cut of 2 million barrels per day months ago and the oil price has barely moved in the last month. that cut is providing stability. it certainly is not boosting the price upwards. we saw what happened the rumor comes out to increase supply which didn't seem logical. the price suddenly dropped $10 per barrel >> the diplomacy and discussions that happened between the u.s. and saudi arabia that has also played a significant part in the discussions an cross the board

here does that mean you could see it is because of the inference from the united states there could be a sustained stability? those requests have come through from president biden and his office >> yes that was the only kind of piece of information that's added some credibility to yesterday's rumor because the u.s. has been very open that they would like oil prices to be lower they would like increased supply on to the market because there is an energy crisis. people are finding it expensive to buy gas and buy oil inflation is high and it will be a challenging winter that added some credibility, but i think i go back to how you and what you said at the start there is more likely further

cuts will be needed as we go through the northern hemisphere winter than there would be a supply increase. we are still worried about going into a global recession. oil demand in china is really not growing. the last six months, oil demand in china is down on the same six months in 2021 which is almost unheard of over the last 20 years. the world relies on china and has relied on china for a long time for the engine of oil demand growth. that is not happening. that adds weakness to the markets and may push opec plus into increased cuts. very unlikely to be increasing supply >> spencer, here in europe, we have one eye on december 5th which is the date when the eu embargo of russian crude oil

imports kicks in before the product embargo kicks in february of next year. obvi obviously, it is telegraphed. what impact should that have on the oil market >> it is hard -- it is hard to know because europe has stopped -- virtually stopped using russian crude for a number of months already. so we don't expect a dramatic change on the 5th of december. it is going to further squeeze russian oil production we expect that they will try and sell the oil that was going to europe to asia particularly to india and to china. we don't expect them to be able to dispose of all of that. we expect russian crude production to decline a little

bit further. the cuts on russian products, refined products, the ban on the 5th of february, that could be more disruptive in europe. europe at the moment is still using a lot of particularly diesel and gas oil coming out of russia it is still now in october making up more than one-third of the imports of diesel and gasoline in europe coming from russia trying to replace that will be more challenging and more costly it will have to come from further afield >> really interesting point about the february deadline. as we get closer to that, we see the situation that europe will find itself in one comment on the u.s they have been drawn down from the spr, strategic petroleum

reserve. why is that not putting a floor on where the price of oil is trading? >> because it is a relatively small flow of oil in the scheme of things. the world consumes 100 million barrels a day of oil a significant volume of strategic reserves have been released when you turn that into a flow per day, it is a relatively small amount of oil. so, it has -- it obviously helped in combination with other factors, but it hasn't made a significant change to the oil price. it certainly hasn't been able to drop the price of u.s. gasoline and oil in the way that the u.s. administration would ideally like >> spencer, thank you very much for giving your insights today we appreciate it spencer welch at s & p global.

a couple of corporates this morning. enel will sell $20 billion of assets as the company looks to slash its debt the company will reduce presence to six countries as part of the business review and invest 37 billion euro over the next three years. positive reaction today in enel with the stock up 2%. polish regulators are set to appeal a ruling to cancel fines on the gazprom and other european giants over building the nord stream 2 pipeline it fined $6 billion for the building of the pipeline without warsaw's approval. poland's court overturned the decision there are several companies to be fined uniper is up 19 points switching to the uk. shell says it will evaluate the

25 billion pound investment in the uk after the government increased windfall tax on oil producers. the company will have to consider each project in the next decade on a case by case basis. this after jeremy hunt announced plans to raise windfall tax to 35% as energy prices continue to climb. the uk government helps to plug a 40 million pound hole in the budget shots being fired from the oil and gas companies. and cevian cuts stake in thyssenkrupp to less than 1% and they are pushing for an overhaul of the business. coming up on the show, south africa gets a boost from s & p giving a sunny outlook to the rainbow nation we'll have more on that next

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>> i'm joumanna bercetche. these are your headlines. >> hong kong tech stocks slump as china shuts parks and malls as cases in the capital hit a record high. crude prices remopobound af saudi arabia denies the report of opec plus is looking to increase output. and italy's biggest utility looks to slash its debt and reduce to six countries. and bitcoin is below $16,000 for the first time in two years with crip ypto lender denies its on the brink of bankruptcy

good morning what started off as a muted session for the stoxx 600 has actually reversed course are in the last hour. we have all of the indices in the green as we head to the end of the holiday week in the u.s liquidity has been drying up overseas the focus overnight on what is happening in china with further covid restrictions and lockdowns. in addition to the property measures announced by the central government the take away is on one hand the central government is providing economic support, but on the other, the covid situation is actually deterioratideteriorati. the handover from asian stocks was negative we are shrugging off concerns coming from asia we have the dax up .60% in germany. the cac is up .40%

we have the relative out performer on the board with the stock market up 1% we are seeing a comeback day for the mining stocks that got hit the last couple sessions glencore is doing well in addition to the oil and gas stocks which have rebounded given the price action in oil in the last 24 hours. this is the picture in the foreign exchange the dollar/yen at .50% still above the 141 line the pound is back up at 118.60 .30% firmer versus the u.s. dollar the euro sit 103 as well the story for the dollar the last couple sessions has been one of retreat as for u.s. futures. this is the picture for today. you can see the three majors are opening up in slightly positive territory. s&p up the 8 points higher

the dow is 6 points higher fmoc minutes on the card tomorrow and then thanksgiving and black friday on friday now s&p has maintained positive outlook on south africa saying structure reforms could help to ease economic pressures. the rating agency did say government measures to stimulate private sector activity could also support outcomes for more, let's bring in alex montana. alex, thank you for the time i appreciate it. do you think s&p's decision holds water in this case it has been the same issue for south africa it feels like we are no longer looking at the triple junk rating, but more about the outlook. all about the positive outlook does that bode well for the

country as well? >> as you mentioned, there is some hope in the public finances in south africa mainly due to the increase of government revenue as a result of higher commodity exports and due to the progress made in reducing debt however, we have to be aware of the overall economic context in the country and on the remaining economic rate. the president will visit the united kingdom and he is facing the battles. he is facing electricity cuts and corruption accusations that will continue to deteriorate

>> the president does seem to be in the lead according to polls with regards to whether he will continue to lead the country any further from here. you mentioned some of the other institutions which remain a key element to south africa getting the stability. everything from the reserve banks and institutions all of those at the forefront of keeping south africa afloat if you want to call it that it feels they are not moving forward. they are not taking whatthey got and edging ahead what is needed here from the em perspective to latch south africa on the growth part here >> yes economic recovery has been impacted not only because of external market shocks, but as you mentioned the lack of credibility of the main institutions the government and the central bank in south africa has tried

to mitigate inflation pressures by increasing interest rates however this will have a side effect of slowing down economic growth at the same time, the president will have to improve his credibility about his economic and anti-corruption reforms which are currently suffering skepticism from the public as the president faces accusations and the public company suggests disruption >> alex, you said the public company, the power company, every time i look at south africa, this is the name that comes up because it is a drag on the public finances. how would you characterize south africa's ability to deal with the energy chrisscrisis all ove

world right now especially in its system which is so ineff inefficient? >> energy security is particularly representing an extreme risk for south africa because of the realliance of a company that generates most of the electricity in the country as you well said, the company is experiencing disruption and inefficiencies that are caused by fiscal mismanagement and global energy costs. to highlight the gravity of the situation, escom announced it has run out of funds to acquire diesel the companies have depended on diesel to run the plants that they are running during peak

consumption or emergencies which will make disruption more common and accuse more disruption for citizens and companies alike in fact, we saw over the past few months that level three was the new normal we expect level four to become more common over the following months >> it does seem status quo with the power cuts as it continues to happen. prioritizing that power mix and energy mix for the country is clearly a no-brainer, alex can the country afford to focus on just this one area and perhaps forego a little of the other areas in order to get a firm stability on growth or is it a case of this is where growth hinges on ensuring the power energy mix gets right

soon >> yes, definitely to secure sustained growth, the government will need to prioritize energy sustainability in south africa however, as i mentioned before, president is looking to secure survival as leader and president of south africa. the structure with the unemployment and poverty and the rest of the existing risks in the social aspect will continue to require a comprehensive and structured social package in order to make improvements in that area. however, energy will definitely be critical areas that will

require financial assistance from international players they will also need to ensure that it doesn't have a negative impact on us as a society apart from financial challenges. a lot of citizens in south africa are employed in eskom or fossil fuels sector. as for the government, it will need to assure in their plan, they mitigate the impact of transitioning from fossil fuel based economy to the implementation of renewalables >> it certainly has been the same risk for the longest time getting it right is absolutely crucial. as the president does visit the uk on the state visit his majesty. alex, thank you very much.

very interesting to note that the rating agency s&p will relook at things if the president wins re-election as the president of the ruling party of african national congress and possibly as leader of the country >> happening in december >> yeah. >> something to watch out for. we are also keeping a close eye on energy shares today just to note that bp, which you see in the top left corner, is up 5.7%. that is the biggest one day gain since may. we are seeing asurge in oil an gas stocks so many have reported stellar earnings for the year. the profits have been really enormous from the oil and gas companies. that will just continue. big day for the energy sector today in europe. also coming up on "street

signs. bitcoin hits a two-year low as crypto continues theri csis in the bankruptcy of ftx. we'll break it down in a moment.

welcome back to the show chinese authorities will slap a $1 million fine on jack ma's company. the pboc is set to prepare the fine and hold talks with other regulators this year about the overhaul the penalty is part of the crackdown on tech giants and focus on the breach of capital expansion. disney shares surged 6% as investors welcomed the unexpected return of bob iger as ceo. this came after the board received complaints from senior management that bob chapek was not fit for the job. iger was approached on friday to return to the entertainment giant. julia boorstin filed this report >> reporter: after two years running disney, bob chapek is

out and bob iger is back for a two-year contract as returning ceo of disney. sources telling me that iger started to do virtual meetings and phone calls with executives first thing monday morning the creative side of disney is thrilled with the change one source telling me there is hope that iger will restore the vision which prioritizes creativity over data sources tell me there is a lot of talking of iger's historyof the restructuring of october of 20 which wut put groups at oddst decision making. iger to move to amend the structure to what it was before the restructuring. on day one, iger's challenges are different. not just from when he left as ceo in 2020, but when he stepped

down as chairman at the beginning of the year. first the ad recession is expected to challenge the networks and ad supporting streaming service. a pull back in consumer spending to hit the parks and products division and streaming business. the streaming landscape is competitive than ever. disney may be at a disadvantage. iger is mworking on morale out f the gate he is looking to handle content. julia boorstin, cnbc business news, los angeles. >> disney investors are cheering on the return of bob iger. beijing will start tightening requirements for covid testing from november 24th this as they reported 634 new

covid cases from 3:00 p.m. on tuesday. we have been keeping a close eye in china with the flare up of covid cases and the resumption of lockdowns in certain parts of china. remember, arabile, china doesn't have a policy tolerating living with covid they have a zero covid policy which is why they are reliant on lockdowns and testing. >> they look at how to look at the system creating a three-tier system. now it is a sense of going backwards now. testing hasn't been necessarily that great also. the three peep ople that passed away were between 80 and 90 and had pre-existing conditions which dealt a blow there is a lot thatneeds to be

said this will hurt a lot of business and that economy is floundering. a lot still to be done there for china in particular. now on to the tech crypto space. looking at bitcoin which is at a two-year low below $16,000 u.s. dollar for the first time in two years. all of this coming on the back of genesis saying it is not planning to file for bankruptcy despite reports that the firm is struggling to raise new funding. genesis has warned investors it may need to file bankruptcy according to bloomberg approached two private equities for help and former ftx ceo sam

bankman-fried declined to give a report on the down fall, but said there is a potential of funds to make customers whole. hackers who stole around 4$477 million from ftx is using the service according to analytics company. arjun is back. nothing has happened in crypto, arjun. >> just catching up is fascinating. >> you can help us catch up. we have been talking about the fallout of ftx it seems you now have bad actors coming in and taking advantage of the holes in the system to

launder money. tell us more >> absolutely. what we understand is stolen 477m4 4$477 million of crypto ftx says it was unauthorized as ce access what is interesting is they converted $218 million into ethereum they are yusing a service oand moving to bitcoin. you can do this on a centralized exchange, but that leaves hackers open to the exchanges forced by law enforcement to freeze the funds by doing it in this bridge way, it decentralized way, there is no central entity controlling the moving of the funds. that helps to move the money to

bit bitcoin. >> how challenging is it for regulators to access >> it will be difficult. if they go through a central exchange, it is ease everybody easier to tell the exchanging this is a hack and there is money laundering what happens to the money they converted to bitcoin do they want to extract to fiat? that would be a difficult task they could be subject to regulation to go through central can exchange they can use a mixing service. what this is f we were a group of hackers and we all stole crypto and threw it in the pool and mixing service and it sends it out to to to different addres the regulators won't know these

addresses are related to us. they can take that bitcoin back to us. it is very complicated that is what they are hoping to do >> we finally have a real world use for crypto a clear example of money laundering taking place. the new chief executive of ftx, a gentleman with experience, he took over enron back in the day. he said he has never seen a mess such as ftx. he said i have never seen such a mess of corporate controls would this happen anywhere this. >> i think the hackers chose the moment to exploit the gaps cybersecurity across the crypto space is an issue. we have seen a number of hacking across the crypto in the last few years. hundreds of millions of dollar

dollars has been stolen. they need a standard like banks or other companies handling money. regulations are not in place what is key is the ftx fiasco kick start the action regulators have been speaking about this is an interesting story to watch. >> something we will discuss more because this ftx story is not going away thanks for joining us here on the set. a quick look at european markets. the picture is positive as we head to thanksgiving week and toward the important world cup match. argentina playing at 10:00 >> you have allegiance for this one. there is a reason for that one that is the end of the day for us we will see how argentina fares. thank you souch mfor joining us that's it for us today slee 360 s and automatically adjusts to help keep you both effortlessly comfortable. our smart sleepers get 28 minutes more restful sleep per night. save 50% on the sleep number 360 limited edition smart bed. only for a limited time. my name is ashley cortez

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it is 5:00 a.m. at cnbc global headquarters. here is your top "five@5." stocks under pressure as yet another fed official doubles down on the central bank pledge to keep interest rates higher for longer. less than 24 hours after taking the top job again at disney, bob iger already making major changes amid new revelations amid bob chapek's last hours of ceo. and the fallout of ftx now another firm is reportedly