yeah. that's all for this edition of "dateline." i'm craig melvin. thank you for watching. [music playing] ♪ good morning and welcome to "street signs. i'm joumanna bercetche. >> and i'm julianna tatelbaum. testing requirements for travel and at-home quarantine, raising homes that beijing may be ready to live with the virus. shares in gsk heads for their biggest gain for the first time in 20 years and a u.s.

court throws out a class-action lawsuit claiming its heartburn medicine causes cancer. blue bell capital calls for larry fink to step down. speaking to cnbc, he says the strategy is only paying lip service. >> we see a number from that practice of the government's social embattlement perspective, which is not exactly in tune with what they say. >> nbc concludes raphael warnock wins, giving the democrats the lead in the senate and a major blow to 2024 presidential candidate donald trump. good morning well, our top story today, china has announced that asymptomatic covid patients as well as those with mild symptoms will no

longer have to quarantine in isolation centers and that close contacts of positive cases will have their quarantine period cut to five days as part of a raft of covid policy reforms. let's get out to evelyn who joins us from beijing. you and i were talking about this last week, the potential for easing the measures to be announced. talk us through the latest measures and whether this is a sign of more easing to come in the future. >> right, yeah i think it's quite encouraging what we've heard today in terms of canceling a lot of these travel restrictions. you don't need to show a negative virus test or show your health code anymore to travel between china. and state media is saying at least at train stations, they're not checking for negative virus tests or health tests anymore, so that seems like an enkourlging sign also we got official confirmation of enkourmging people to be able to quarantine

at home if they want to instead of having to go to centralized quarantine and again being more precise about the measures saying if it's not a high-risk area, you can't stop this business or factory from halting production at work, so hopefully that will keep more businesses in action on the ground. so that's all an encouraging sign there's a lot of areas we've had lots of changes in beijing city in the last couple of days how do businesses figure out the situation they're supposed to follow there's also clauses in these measures talking about special situations where people might still need virus tests some of that adds up to a lot of questions. what does this really mean on the ground certainly the tony is positive state media is also emphasizing that only con is more mild, less

severe than previous covid strains, so that's also encouraging when you're thinking about the public messaging, the severity of the disease. but official this afternoon emphasized, you know, this is not fully reopening, so it's still going to be quite a while before china opens it's going to take a while to get to the point where the rest of the world is at right now back to you. >> thank you, evelyn back to your point, we're getting good news for disneyland fans over there. we're getting some flashes that shanghai's disneyland theme park will be reopening on december 8th. thank you for the latest, evelyn now fitch says it expected chinese gdp growth to grow partially but points out that both of these figures are well below prepandemic trends as well

as this year's official target of around 5.5% it comes amid uncertainty how covid policy repeals will be implemented and a global growth slowdown. sticking with china, the country posted its worst, port figure, something like 8.7%. that's worse than the 3.5% slide. imports fell 6.6% to its worst level since may of 2020. china's reopening is set to show a positive narrative it's going take longer than anticipated. miners are trading at a premium. we're very parised that tyler is joining us tyler, wonderful to have you with us, especially today when we've got so much news flow coming out of china. we had the trade data overnight, but perhaps more importantly the

national covid restrictions. to what extent is china's reopening a tailwind for the sector >> it certainly doesn't hurt, right? it's going to be better to have china open than not as we go through this year. facing the commodity demarngsd especially steel, are related to the property market. until we see property prices move back up -- they've been down 13 months in a row -- and the property developers are all challenged on their balance sheets, it's going to be hard for us to see a real growth in steel demand certainly for things like cop e it certainly is helpful, but once again, the wider economy has been undergoing so many different structural challenges over the last couple of years that the rest of the world have having a challenge we're a bit more cautious on the commodity demand. >> on that point about what's happening to the rest of the

world, can you give our viewers an insight into how important china is as a whole for the mining sector for steel compared to the rest of the world >> yeah. it depends on the commodity, but for steel especially china produces around just under a billion tons a year of steel it s intensity of per unit of gdp or per capita is five or six times that it's about 70% of total global demand also the blast furnaces there, there's a bigger proportion of blast furnaces, which means they use iron ore obviously the west is going to impact everything. >> can you explain to me, if china accounts for so much commoditiesyies such as iron or why have they done so well

you talk about it being 15 percentage points away from its 10-year high what's going on here. >> as we've gone through this inflationary phase, you've seen a lot of commodity prices moving high eric especially 2020-2021 you've also seen as well the rest of the markets really benefitted from low interest rates for a long period of time, you know, those long duration growth stocks. we've seen a real rotation into the mining sector, and so what that's done, though, according to our numbers, is put them to the point where they're trading at the high end of their valu valuations we've started to downgrade some of our exposures, taking a more bearish stance. >> we've been covering extensively what the impact the energy crisis is having on the european continent, and we talk a lot about the sectors that are sensitive to it, chemicals, of course, but the likes of commodities still making the minimums all of the sectors are energy

inform intensive what sort of impact is that having on the demand for raw materials? >> it's having supply side impacts. but it's also having a real impact on demand steel production in europe, round numbers, was down 5% over the last couple of months. these are big recessionary-type figures, but then at the same time, this challenge in power situation is going to compound as time goes on, especially as we get through the tough months in the winter on industrial activity in europe so that's going to cause, i think, even more softness in some of the demand figures. >> tyler, i see that glencore is one of your top stocks going into next year coincided today, we got a release out of glencore that's been quite disappointing their production outlook for next year has disappointed relative to market expectations on the back of we're seeing a stock drop, 2.6 percentage

point. what is it >> it's a tough one. we're relatively bearish on the space. glencore has an unbelievable amount of cash flow coming, the thermal coal as well thermal coal is going to be what's used to get us through that it's a lot less economically sensitive than the rest of the commodities we kind of discussed, and so what that means is glencore is going to have better free cash flow and be able to return more cash to investors. that said, like everybody else in the sector, and we saw it with rio tinto last week and glencore and others, we expect them actual be negative. they're very hard to operate, and costs are still a big problem, and so, you know, there's still a counter pole from that side as well. >> maybe an opportunity to buy into the dip that we're seeing today. can i ask you about demand from an ev perspective? i know that within the mining

space in the last decade, there have been a lot of sectors interested in playing the space. now there's reports of some softening demand in china, for example. is there a way or is there a reason to play the ev theme through in your view >> i think so. 2023 is going to be the downturn economically the cyclical downton is going to take away any upside as we go four, five, six years, we're not going to have enough there's not going to be enough every mining company i speak to, all are in recoverage. no one is going to be able to operate and deliver these kinds of materials yes, we're seeing a slowdown, but we saw such a rapid increase last year, and surely we're working toward decarbonization and also there's going to be a

secondary impact from that the more grid power, the more transmissions we're going to need, and 245's going to be a bigger need for copper obviously short term, we're a bit more cautious. >> so interesting. final question just to wrap things up. do you have a view on gold it's been somewhat of an inflation/disinflationary play, but what about gold? >> it's sort of an enigma. as the dollar's rolled, it's given gold a chance to flow back up i look at it as more of a medium perspective. there's a really hard path for the central banks to get things back to a level that is normalized, and i think having a bit of gold in your portfolio just from a structural perspective, helps to hedge those tail prospects.

>> we'll leave it there. tyler broda, head of mining research from rbc capital markets. >> chinese president xi jinping will attend the first summit in saudi arabia as the kingdom looks to boost trade ties. coming up on the show, farmer shares get a shot in the arm after a u.s. court throws out a class action lawsuit claiming gsk's heartburn medicine causes cancer we'll be right back. shipstation saves us so much time it makes it really easy and seamless pick an order print everything you need slap the label on ito the box and it's ready to go our cost for shipping, were cut in half just like that go to shipstation/tv and get 2 months free

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everybody. a cautious low is prevailing in markets today and also a continuation of what we saw yesterday with european stockmarkets dipping into the close yesterday. overnight eve though we had the announcement of some further covid restrictions being eased out of china, that did not give a major boost to chinese industries in fact, the hang seng is almost 40 percentage points in trading. the stoxx europe 600 has tried

without success. we're down a tenth of a percentage point in the early points of trade. let's head straight to it. european markets, this is the breakdown. you can see the ftse 100 is up 0.3 of a percentage point. here we're focusing a lot on the price action and pharmas we're going to talk about that in a short while with jeulianna. also sanofi and france up about eight percentage points. pharma having a very good job in today's session. we're seeing a pullback in commodities. we had a guest from rbc on. glencore, a little disappointing to investors, so basic resources are dragging on some of these indices. final point of retailers, we have germany seeing a bit of a

turnaround in some of today's trade. sectors as i mentioned, we're going to see health care at the top, travel and leisure. retail down 0.7% despite the fact we're seeing a rally. basic resources down 1.1 oil and gas also down 1.1 percentage points. again, we're watching the oil commodity compacts brent, $79, the lowest level for 2022. >> let's dive into that pharma story as joumanna mentioned. health care is leading the gains in europe. a u.s. district judge ruled that court claims ruling that the heart burn drug zantac causing cancer was not backed by science, knocking thousands of claims out of federal court. but many claims are making their way through american courts. there you have a look at gsk shares they were up 10%, and sanofi up

6% there were concerned around this zantac litigation. this is a drug that was launched many years ago by gsk and then distributed by a number of generics companies far-ranging implications here. the news yesterday out of florida, about 2,500 lawsuits were dismissed, and there are still a number of lawsuits outstanding, but this is being taken as very good news for the pharma companies and perhaps a sign of what's to come analysts across the street welcoming the news and certainly for shareholders. >> definitely. if you can brick back up the chart of gsk's sanofi, take a look i actually tweeted this earlier. back in august we saw a substantial drop in the price of

these shares because i would guess the threat of this lawsuit hanging over their future prospects. there you have it. so you can see the big decline in august. until today, the stock is up about 10 percentage points could be another 10, 15 percentage points to go. so this lawsuit or the threat of the lawsuit has really impacted the prospects of these companies. no doubt they will be heaving a sigh of relief that it hasn't got a lot of legs. you say it's not 100% final. there's still more of a potential? >> there are outstanding cases february is going to be the months to watch once the key litigation comes to the forefront. in terms of the concern that came through in august, you highlight such an important drop there in the shares of gsk you saw similar losses for sanofi as well this is actually the chart that i wanted to bring up you've got astrazeneca shares clearly outperforming, 33% you look at gsk, and we're down

5% year to date. it shows the difference -- different performance we've seen across the two uk pharma giants. there's more at play elliott has taken a stake in gsk and argued about the company's underperformance but still very notable the last thing i would add, back in august, there were some concerns this couldle spin into a different deal of course, that's not the direction we're heading. >> a big driver in markets today as well. let's continue with markets and take a look at uk homebuilders as house prices f fell they could be going through a normalization process and how the economy and labor market perform will be key in determining house price changes next year. and airbus has dropped its four-year delivery process its target of jets is out of reach, however, the plane maker added they did not expect to

fall materially short despite supply chain difficulties. the group maintained its other financial targets for the full year. also coming up on "street signs," blue bell calls for fink to step down claiming inconsistency over strategy. we'll bring you the exclusive interview with blue bell's cio that is coming up next shipstation saves us so much time it makes it really easy and seamless pick an order print everything you need slap the label on ito the box and it's ready to go our cost for shipping, were cut in half just like that go to shipstation/tv and get 2 months free

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welcome back to "street signs. i'm julianna bercetche. >> and i'm julianna tatelbaum. >> raising hopes that beijing could be ready to live with the virus. shares in gsk head for their biggest one-day gain in almost 25 years and hal haleon and sani

also increasing. blue bell's cio says blackrock strategies are only playing lip service. >> we sue the number of practice from government's social environmental perspective, which is not exactly in tune with what they say >> and nbc concludes warnock gets the runoff, delivering a major blow to former president and major 2024 president donald trump. welcome back to the show blackrock's larry fink is facing shareholder pressure to step down as ceo over its esg claims. activist holder bluebell capital

accused fink and blackrock of hip pock tra cy by taking up investments of coal production while touting environmental issues bluebell's cio and partner told cnbc that the activist shareholder has a clear understanding of blackrock's inconsistency. >> we look at the situation we get involved it is because of our direction expe experience, and frankly we developed a clear understanding of the difference between what blackrock says and esg and what they actually do.

>> well n a statement they say, in the past, bluebelle has waged a number of campaigns to promote their climate and governance agenda blackrock is coming under so much in the u.s. there's been ire at the company. they're putting blackrock ahead of their fiduciary responsibilities they argue it should be part of it therein lies the whole discussion but in blue bell's case, they're criticizing blackrock for not doing enough on the esg front and for in some ways going down an investment path that is contradictory with some of their very clear esg goals in fact, bluebell is arguing quite the opposite, that blackrock should be doing more on the esg front. >> it's have interesting in talking with our "squawk box" partners this morning.

it's not just about esg that has them concerned energy is not the responsibility of blackrock as an asset manager, but the social piece is also a big part of their argument that they don't necessarily think blackrock has acted responsibly when it comes to the companies they invested from a perspective, and the bluebelle cio has said they don't believe it from a leadership i want to speak about fiduciary responsibility i spoke with larry last year in glasgow, and his defense is they have a fiduciary responsibility and that comes ahead of everything else, that responsibility to its shareholders. >> this is a big topic that's being debated. i actually got my cfa and esg investing a short while ago, and not so long ago, there was an -- an argument was put forth that part of a company's fiduciary responsibility nowadays is to

take into consideration all potential river tock the balance sheet. one of those is the risk that pertains to esg as a big factor there. what was interesting about bluebell going after blackrock specifically is they're a small firm how much ownership did he have in blackrock, he departidn't gi answer therein lies the discussion how much air time should individual investors have given their parnl of ownership as quite small in a firm that runs trillions of dollars in assets. >> this is the big thing about activist investors i used to cover the chemical sector and i had a discussion with one of the big german company ceos he said my biggest fear is not

what's happening from a macroperspective but waking up and seeing that they have can have just one share. all right. well, we're going to have to leave that conversation there. we'll have to pick it up when any further developments come up german industrial production fell 0.1% in october the print was better than expected despite rising energy prices across europe, beating reuters's forecast of negative 0.6%. oil is trading cautiously lower in anticipation of a demand recovery in china as the company further relaxes its strict covid measures. meanwhile oil tankers cueing to transit through the straits of bosphorus are reportedly facing more delays, according to reuters. operators are rushing to adhere to new insurance rulings imposed

by turkish authorities before the new price cap comes into force. renewable hydrogen has been touted as a potential replacement for fossil fuels and shell is working to scale up brian sullivan joins us from the plant in the netherlands your report has been fantastic yesterday it was all about the short-term response and all of this pivoting into lng today it seems as though you're talking a lot more about what the plan is long term. tell us more. >> reporter: yeah. good to see you. you know, they say that hydrogen the most common element in the universe i would disagree with that i think it's rain in the netherlands. i apologize. i literally was standing here and got crushed. we're here at this amazing new facility outside of rotterdam. this is, they hope, going to be the longer-term future of where we are, which is producing what

they call green hydrogen if your audience has heard the terms hydrogen and blue, gray, green, they probably have -- and maybe there's confusion around there -- gray hydrogen, that's kind of the dirty stuff, like taking coal, making high dloe jen. the blue hydrogen taking natural gas. that's currently what they're doing here at shell to make hydrogen green is what they're going to go for, not just shell but other companies around the world, although, this is going to be the biggest and most expensive facility in continental europe, which is offshore wind farms producing here, and all these pipes and this electrolysis stuff. they pull the hydrogen out it will ultimately go into feed stocks and ultimately after that into transportation fuels, because as they describe it, it's kind of the chicken and the egg argument the truck makers and ship makers say, hey, we'd like to use

hydrogen in our future, but we're not sure we have an adequate supply. in comes shell with i'm sure some deals, we will build this multi-billion-dollar facility, but we want to make sure we know we have an end-use company it's one of a kind electricity, something, something, something chemical engineering, something i have no concept of what's going on back there. ultimately it will produce hydrogen as the goal 30 years from now it will wean off fossil fuels the first ones were in 1988. so i feel like we're going a little bit back to the future, are we not >> brian, so many things i want to follow up with. i'm not going to ask you to write down the formula of how the hydrogen actually created, so we're not going to get into that much technical detail. >> don't do that. >> you're standing as one of the shell facilities shell is a really interesting

company. they made a decision that was really controversial at the time you fast forward and it's put shell in a good position they have a huge market share in lng because of that bg acquisition. they have about 0% of that market share in that space talk us through how lng has been a major source of new energy for europe as a hole as they've been looking to diversify away from russian gas. >> well, yeah, and by the way, i remember that deal got widely criticized i think the market punished shell stock if i remember correctly. the viewers can correct me that deal, maybe a decade later, joumanna, looks pretty smart i don't know if you saw this there's an lng partnership with the uk that broke a few hours ago. it just came out at 12:01 a.m.

it was embargoed it's not embargoed, i hope not with the time zone the u.s. and uk just announced an energy partnership moments ago where the u.s. seeks to double -- not saying that will, but seeks to double their lng exports to the uk because obviously, you guys know better than i do, you guys need lng listen, we talked a lot about it questioned liquefied natural gas, again, not a new technology, but the industry has become just so massive and suddenly the world is in this mad rush to collect lng. you mentioned china, guys, before you came to me. here's the risk, right and by the way, we were in a boat offshore in rotterdam, and i saw a lot of lng tankers on marinatraffic.com. is there enough lng to go around and what if china does fully

reopen and does keep the lng they were rebuying and resold to the uk and continental europe. lng, liquefied natural gas, shell, looking pretty smafrmt in 25 years we'll look back and say, hey, you know that facility we visited in rotterdam? that's producing all the hydrogen so we can fuel the rocket ship so i can see you and jewel nana on mars. >> what a future. >> is brian sullivan trying to send us to mars? >> "street signs" from mars. >> what a future that you paint. >> jupiter saturn i'll go anywhere. >> it's certainly an appealing prospect back to the lng story, was over in greece. about a week and a half ago we spoke on your show stateside a lot of the lng infrastructure being built is super

interesting. right now it's going to be used for lng, but it sounds like a lot of the investment they're making could actually be converted and used for hydrogen in the future. in a way the investment they're making isn't going to be waste ed. >> reporter: you know, i saw those hits ourn show and i thought, this is why julianna is so much smarter than i am she goes to greece it's like 85 degrees in celsius. i'm in the netherlands where i could speed skate here it's so cold that aside, yes, listen, a lot of these pipes and tubes, i'm not going to pretend i know what's going on there. you're right build these facilities make them also if not immediately capable, easily switchable to the technologies and the chemical processes of the future as well maybe today it's that lng ship you're in front of in greece and then in ten years it's going

to be a hydrogen-type import facility again, what shell is doing here is creating kind of a model. and one of the reasons we're here in europe and not in the u.s. is, number one, it doesn't exist in the u.s number two, i think the europe guys are ahead of us in there climate change movements, in their energy transition. so i'm trying to tell the story of where the u.s. might be in five to ten years. shell, a global company, now based in london with the new ticker symbol, hdl, by the way, not rds. we're going to tell the story all day on cnbc, kind of the multi-billion-dollar model i can assure you guys, next year, we're going to greece, no offense to the netherlands. >> or potentially jupiter, brian. the next hit will hopefully be before five or ten years thank you for the coverage in the nether land. hopefully you can find an umbrella it looks like it's raining over

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welcome back to "street signs. we have an update. yesterday we saw the stoxx 600 pull back in its third negative session in a row as bond yields moved sharply lower. investors on both sides of the atlantic seemed to be it a little bit in a holding pattern. we've got the u.s. dpi printout and central bank meetings across the developed worlds taking pl place. a lot ujds way next week here's a split, giving you a little bit of color on what's

driving the trade. you have health care out in front, 0.7%. we were up more than 1% at the start of the program you have haleon, sanofi trading up 200 zantac cases, providing a boost in sentiment around those stocks there had been a major concern after the litigation concerns came to the fore over the summer on the downside, oil and gas down 2%. we've seen the price of oil pull back this morning. the major oils moving in lockstep with the crude. basic performers also underperforming. the relaxation of a number of restrictions regarding covid being announced, but that chinese sector is being sold off. before we get to u.s. futures, let's take a look at the forex markets. you've got the dollar trading

higher than the swiss franc. yesterday the u.s. dollar rose to 0.3%. now to u.s. futures. there you have a picture of all three majors point to the open we're in for further losses today after all three of the majors traded lower yesterday, s&p losing about 1.4%, its seventh down day in the last eight. >> lots of commentary. they're voicing a concern about the health of the u.s. economy heading into 2023. speaking at a "wall street journal" event, the u.s. is preparing for a recession next year it follows news that morgan stanley is cutting its head count by around 2%, a total of 1,600 johns. meanwhile bank of america's brian monaghan said they're not looking to lay off staff but shrinking its head count long term. >> jpmorgan boss jamie dimon

says ongoing praerns could erode the savings, ultimately tipping the u.s. into recession next year dimon also warned the fed's tightening policy was taken the american economy into uncharted territory. >> the risk we have is quantitative tightening. we never had it before, never in the lifetime of mankind. so i look at that as something we should be quite concerned about. you know, this 10-year bond rate has been going up for ten years and it can't really be depressed anymore. qt has just started, so it's very possible. if you have 2% inflation, you should have 4% bond rate today i'm not looking at this like it's got to get better obviously it's a risk-on trade but that might change if it sticks around a little longer. >> the u.s. economy is growing better than its global peers. >> we should celebrate that a little bit

capital is coming here, business is coming here if you look in the short run, the consumer's spejt more than last year. they're spending it on different things some are doing better, some are doing worse. that's a tremendous sum of money. they have a trillion dollar in their accounts the spending is down that's the good news >> speaking of "squawk box's" business round table on tuesday, indicators remain positive heading into the new year, but a looming slowdown gives reasons to remain cautious. our survey only covers the next six month, so at least over the next six months, i think what you're seeing is a group of ceos who are largely very cautious, still hopeful that there can be some kind of soft landing in the economy, and most of them are still, and some are still looking at it. >> you can't see it in our data.

>> when you think about what's happening, families are choosing when they buy their big basket of things they need all the time torsion look for value many of them are coming to us for those big food and consumables baskets and being select tiive on merchandise. >> there's still pent-up demand. a lot depends on the economy that's for an economist to do. >> democrat raphael warnock will win the runoff election according to the nbc he defeated nfl football star herschel walker giving the democrat as 51-49 percentage republicans took control of the house of representatives last month. the outcome also marks a significant loss for former

president donald trump who endorsed walker and campaigned for him. let's bring in lee baker, president of apex. great to have you on the show. let's talk about the political result we got out of georgia 51-49 for the democrats in the senate, but, of course, they did lose the house about a month ago. what do you think this means for the passage of legislation in the coming years, especially now ta we're looking at a divided congress >> good morning, and i'm happy to be on this morning with both of you i think what it means for the legislation in the u.s. is there's going to be a very narrow scope of legislation that gets passed. don't look for anything particularly big to get done in the senate this 51-49 outright advantage for the democrats means that they'll have more committee members. it will be much easier for judicial nominees to get moved

through. but just don't look for any major legislative things to get made through. >> makes sense it's difficult when the congress is divided the signature piece that's come through is the inflation policy. here in europe,ite san jose critical because it's seen to favor u.s. companies and u.s. industries have you changed or devoted an extra part of your investment allocation toward sectors that stand to benefit from the ira? >> no. we haven't made any major changes. you know, we focus more on business cycle than we do things that are impacted from a legislative standpoint you know, historically, we tend to do better with divided government from a pure market return so not any major adjustments the adjustments we've been

making, frankly, have been a function of a, hey, listen, we're in a rising interest rate environmental, which we simply haven't been in for quite some time we've been in a suppressed bond market as one of your previous clips mentioned. and so we're making adjustments around those things and not so much the legislative agenda. >> let me take you back to the election results trump had essentially hand picked walker for the georgia senate run, and now many are saying because of the election result, it's a sign to the republicans that they can't win in 2024 with trump on the ballot what is your take? what is the read-across to 2024? >> so i'd say, taking a look at that, i see why some people are saying that. it is one more spot of evidence that maybe trump is not the golden ticket that one perceived him to have been in the past, but by the same token, i would

be hesitant to count out the former president, particularly with the dynamics that are at play in the republican process so that if you have a really big field of republican candidates come 2024, don't count former president trump out because, again, he never won the majority of any of the states until i think we got to new york, which was about the 33rd state during the primary season so if it's a large field, don't count him out. on the other hand, if it's just perhaps two or three republican candidates on the stage, then he's in a weakened position in my opinion. >> it seems as though one of his key competitors if not the front-runner to counter him is ron desantis from florida. from an investment perspective, how do you think about investing if he is the one who ultimately is on the ballot in 2024 >> you know, again, i don't -- i

don't think that's going to make a huge change from an investment perspective. if we were to wind the clock back about six years, one of the things that was different in that particular scenario was you had president trump coming into office, but he had republican majorities and so you could, you know, have made a bet, hey, listen, there's going to be some tax law changes. so we have the tax cut jobs act in 2017 here so, yes, we've made lots of adjustments. then other work with clients in terms of capital gains, real estate assets, and those sorts of things. so if you've got someone like a ron desantis who's come in and the ingredients are there for republicans to take control of the senate and expand their control of the house, then we might be looking to make some changes because of the anticipated legislation that

might come out of the controlled government by one party versus a divided government like we have now. >> let's turn to the u.s. economy. just before you came on, we played a series of clips of various ceos of big american companies that our colleagues over in the u.s. spoke to, and there are disparate views out there over the health of the u.s. economy, namely because so far u.s. consumer spending has held up pretty well, but the outlook is that that's not going to continue. what is your view on, again, whether or not the fed can engineer this hard landing versus soft landing, whether the u.s. can actually skirt a recession, and whether you think 2023 will actually turn out to be a year of positive growth >> so if you ask me to make a bet on it, i wouldn't be at all surprised there's a mild recession here in the u.s. next year you know, best-case scenario, i see a slowdown, you know, but

let's call it a little more than 50% that there's at least a mild recession if it hasn't begun already. i'm in agreement that consumer spending cannot continue we're starting to see signs that, you know, credit card balances are tipping up. that having been said, the consumer has not slowed down yet, but there's going to become a point where the credit card balances get high enough and things are going to slow down. we're also starting to see some softening in automobile prices one of the big components of inflation here early on was with auto prices, and we're starting to see those come back to earth, not in a significant way and not terribly fast, but they're starting to come back some and we're also starting to see some softening in individual real estate. i don't think there's going to be an out and out correction, but things are softening some, and i think that's a combination of inflation and interest rates

being higher so the amount of house that somebody could have purchased on january 1st of this year are significantly different now, and wages have not gone up enough to compensate for the additional housing price. >> lee, thank you so much for sharing your investment views and also helping us analyze the election results in georgia, president of apex financial services >> let's take one final look at u.s. futures before we hand you over to our u.s. colleagues. we've got all three majors pointing to a weeker loss poised to continue after yesterday marked four consecutive daily losses for the s&p 500 that is it for "street signs." i'm julianna tatelbaum. >> and i'm joumanna bercetche. "worldwide exchange" is coming up next. thank you for watching

it's 5:00 a.m. at cnbc global headquarters and here's your "five @ 5." ceo sentiment across the country turns decidedly sour and covid curbs easing with a year-long covid strategy. democrats extending their lead in the senate after yesterday's georgia runoff election what the two-seat majority could mean for president biden's economic agenda. plus, housing uncertainty as one of the country's top homebuilders casts