craig melvin: that's all for this edition of dateline. i'm craig melvin. thank you for watching. good morning and welcome to "street signs. i'm joumanna bercetche. >> and i'm julianna tatelbaum. >> restoring price stability when inflation is high can require measures that are not popular in the short term as we raise interest rates to slow the economy. the absence of direct political control over our decisions allows us to take these necessary measures without

considering short-term political factors. >> uk retail stocks diverge. jd sports tops the ftse after strong holiday sales >> airbus falls in early trade despite keeping its crown as top plane maker, climbing 8% well above boeing but below initial estimates. and paul chen says the city will rebound after a tough 12 months telling cnb exclusively that china's reopening is boosting sentiment. >> i'm very positive about this year, but, of course, we have to pay attention to the external headwinds, the rising interest rates, the geopolitical situations, and the consequential impact on the volatility of the financial market

a very warm welcome to st "street signs," everybody. they have to tackle inflation. that is what fed chair jerome powell said. he addressed the symposium and said he needed to steer clear of things not directly tied to the goals. it calls for tough and often unpopular positions. >> price stability is the bedrock of a healthy economy and provides the public with immeasurable benefits overtight, but it can require measures that are not popular in the short term as we raise interest rates to slow the economy. the absence of direct political control over our decisions allows us to take these necessary measures without considering short-term political factors. it is essential that we stick to

our statutory goals and authorities and that we resist the temptation to broaden our scope to address other important social issues of the day taking on new goals, however worthy without a clear statutory mandate, would undermine a case for our independence in the area of bank regulation as tobias mentioned, the fed has a degree of independence as do other federal bank regulators. this is so we can be sure that things are not influenced by the public. >> the fed chair also addressed the fed's role in combatting climate change. >> the fed does have a narrow but important responsibility regarding climate-related financial risks. these responsibilities are tightly linked to our responsibilities for bank supervision. the public reasonably expects

supervisors to require banks understand and can appropriately manage their material risks including the financial risks of climate change but without congressional legislation, it would be inappropriate to use our monetary or supervisory tools to promote a green economy or achieve other climate-based goals. we are not and will not be a climate policy maker >> well, if you are a bank watcher, perhaps not the commentary you were hoping for as for european markets, not a huge amount of action this morning. are trading higher we've been trading ground opening fairly steadily with a mixed bag in terms of sector performance, but now every major region is trading. the cac 40 is up and the ftse 100. lagging a little bit are the peripheral markets still those in positive

territory. from a sector perspective, here's the split basic resources are outperforming once again and a real beneficiary of the china story, boosting sentiment for the mining stocks up 5.1% this morning. well, very pleased that joumanna and i have a studio guest this morning. thank you so much for being with us let's kick off with where joumanna started the program the fed chair's comments yesterday. what we were calling a damp squib. not a lot if there my question to you is when you look at the markets, especially yield curves, they're deeply inverted, which is a warning sign, yet the fed seems very reluctant to make any big claims about going in that direction. why do you think that is why isn't the fed giving us some more realistic check on the economy? >> well, i think, they've been very clear for quite a long

time, you know, they're not going to stop cutting or imposing checks. it's clear we're seeing inflation to some extent, it's not really surprising good inflation was always going to come down the levels, you know, that's what the fed really cares about, are still very elevated. while the trend is positive, i think it's way too early for them to impose at this stage i think it's way too early to speak about cuts. >> as for markets, we have started out the year on pretty resilient footing. where do you think we go from here how is the market positioned right now, and would you say for equities, the risk is to the upside or downside >> i would say downside at this specific point we are in sort of a relief trade

following peak inflation people are obviously very happy to see inflation falling you know, any sort of downside, positive inflation was always going to be very well received by markets, but i think we should be careful not to get carried away by that trade and chasing that trade when you look at the economy which is what matters, it's really weak and it's going to get weaker and weaker. and if you look, it's still pretty robust which is what some are looking at but service pointing at very, very weak months ahead of us i think that discrepancy between such data and hard data is something the market will pay more and more attention as the weeks pass. >> it's interesting because we've had several members of the fed come out in the last several days all say that their view is

that interest rates will not only get to 5% but probably have to stay there for a long time. so for markets, what do you think is more important? the pace at which they get the speed at which they get to 5%, or how long they stay at or above 5% >> first of all, i think 5% as a terminal rate is definitely not priced in at the moment. i think that would be a surprise that could shock markets, but i think it's important for people to understand that while posing is an accessory condition for sustained market readiness, it's not enough. >> it depends where they pause, at what level. >> yeah, but historically every time the fed has posed, the economy has continued weakening in subsequent months and quarters because you have this lag from the moment you tighten and the moment it impacts the economy. we've just gone through the fastest biggest tightening cycle

almost ever, and, you know, posing is not going to stop the economy from weakening in the coming months. i think we would be more comfortable turning our assets once not only the fed has posed but once we see more weakness in the economy. >> interesting and then people start talking about rate cuts. where are you putting the money now? >> we like bonds. >> they've really come a long way. >> yeah. obviously they've decreased from 4.1% last year, but we think not only it's good value, we think that peak inflation narrative is going to continue benefiting them, and the last point i would say is that correlation between risk assets, we know last year was a very last year with bonds and equities positively correlated we feel as we shift from inflation to growth concerns that negative correlation will come back, and that will make them quite attractive again for

investors. >> what about the china reopening? we're trying to understand what the net/net impact that's going to have on the global economy and in turn the global markets what's your take >> it's a very difficult question to answer it's clearly meaningful. it's a game-changer, probably more for the region at the time being maybe for a group of markets, but, you know, we like e.m. assets and equity last year you had the strong dollar, zero covid policy in china, and those are turning into tailwinds now, and i think it's significant. >> do you see any tail winds for europe from the china reopening? also, i think it's interesting, yesterday i was looking at the forecast, they have eurozone not in zero percent.

others are forecasting for 2023. could we see a positive surprise in europe? >> i think it's already playing out. if you look at european markets, it's rebounded 20% since october. and this clearly has to do -- okay, peak inflation probably benefitted to some extent. the war in ukraine, the mild winter, but i think the chinese reopening is really what drove european stocks higher you look at all the asian exposed companies. they surged as a result. >> fascinating, lilia. very interesting to hear your perspective until the rest of the year is going to play out. let's get you a corporate story. blue bell capital partner is reportedly pushing to break up bayer. according to bloomberg, bloomberg has built up a stake in the pharmaceutical and has asked the supervisory board to

appoint a new chairman bluebell's assets have not been disc disclosed. this is a very interesting story. bluebell had been in the news a lot recently, being quite vocal about the stakes they had in the company. their criticism of blackrock is they weren't doing enough. this is a company that's come under so much pressure in the last couple of months. >> i think from an activist perspective, it's no surprise bayer would be an attractive market the whole pharmaceutical market has been attacked by activists a number of them when it comes to bayer, i think

there are three categories that an activist investor may want to see change in. it led to major litigation issues the contract expires in april 2024 that's one two, portfolio we may be looking at a potential breakup story here bayer has a portfolio that combines crop sciences and pharmaceuticals that don't naturally go together. the third is around the monsanto litigation right now the bayer settlement stands at $11 billion, but there are still some uncertainties and question marks and where we go from here and whether bayer could take a different approach to solving this litigation when you look at this stock, it's trading at a significant discount, so clearly investors are concerned. it trades at seven times

forward. >> fascinating to hear all your input. i know that's also an area of focus from your previous life, look at chemicals. it's been underfperforming for years now. there's definitely room to streamline their business, perhaps sell off businesses, bring in new management, and start to focus on their new business as opposed to try to lean in to a very diversified portfolio. >> definitely. i think it's interesting the same person who brokered the deal in 2016 is still at the helm, and that speaks to the governance that's in place that has allowed him to remain in place. it's remarkable given the catastrophic fallout from the acquisition. coming up on the program, airbus keeps its crown, but supply chain disruptions still

loom. also, french president emmanuel macron enter as showdown with the union as he lifts the retirement age we'll have the latest on the country's pension reforms. ah, these bills are crazy. she 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 part of it to coventry for cash. even a term policy. even

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welcome back to the show airbus says it delivered 661 planes in 2022, up 8% on the year and topping boeing for the fourth straight year boeing reported 480 deliveries last year and won 7 last year and won 774 new orders we're seeing the stock come off a little bit this morning because they have not met their targets. >> yes they had this original target of 720 planes for this year they already cut it in july saying it would be around 700, and then they said last month even that target would not be able to reach. now they've delivered 661 planes

this year, 611 the year before but the forecast from the market was somewhere around 680 of course, this is all down to supply chain issues, talking about shortages in raw materials and also labor shortages is there. they had specifically some problems with some engine deliveries however, they are sticking to their production ramp-up of their a-320, which is their best-selling plane, and they're still looking at producing 64 planes in the next few months and 75 in the middle of the decade they're sticking to free cash flow guidance. but, again, this warning from the management last night saying the supply chaen is still fragile. there are still issues despite the good news, it's the best year since 2018 so things are better during the

pandemic of course, the travel is reopening and china is reopening. of course, it's important because they take most of the cash from the planes for delivery to the airlines. >> super interesting and thank you for the insight on what's driving that stock. sticking to the french, they have announced a strike after there's been an increase in response to the new reform proposals, you've got strikes taking place nationwide, how widespread is the backlash, and is there any chance the backlash redee rails macron's plans >> that will be the question the they're raising it from 62 to

64 a gradual increase more time to get full pension. so it will be 43 years from 27 but there were also a lot of concessions to try to get people on board, the unions, et cetera. this reese form was less radical than expect and less radical than the first reform including raising the minimum pension, so it would be 85% of minimum wage. the people who started their careers young, they'll still be able to leave early the more physical jobs, they'll be allowed to leave early. the rail workers, they still have a special regime to leave earlier. only the new employees won't have the special regimes those working will benefit and leave early. so a lot of sugar with that

spoonful of medicine in that reform, but yet we still head straight away from the unions. eight unions all in unison half the government will be in spain from the franco spanish government, but a thick red line in raising the age it's a test for macron however, he's been very consistent with that pension reform from the moment he was a candidate in 2017. he wanted to do it you know, he's not running for election anymore he won't run in a re-election. if not now, never. he's in the beginning of his second mandate he wants to push through it. he can get majority with the parliament if not, he still has a way to push it through without avoiding parliament. >> 49.3 for british viewers.

>> so it doesn't have much to lose there could be strikes and while the french is expecting to barely grow, they should avoid recession long-term strikes could have an impact on growth for sure. >> a yolo approach to pension reform you only live once. >> not two words you usually put together, pension and yolo. >> jazzing things up, making it exciting. we're getting news out of switzerland. this is interesting. and remember we have davos coming up next week. switzerland has no current plans to test travelers from china for covid-19 it was announced yesterday the vice president of china will be attending davos, so he'll be at the conference in a week's time. interesting they're coming out

with this statement given so many other european countries have actually introduced covid testing, italy, france, spain, just a couple of countries that have now introduced mandatory testing for travelers from china, but switzerland is not going down that path. china has taken issue. they suspended short-term views from travelers in two nations. they're among a dozen destinations that require a negative covid test before flying it's a direct and reasonable response against political manipulation. south korea plans to back its curb on covid testing. 80% of its confirmed cases are coming from the country. a representative says the number of people traveling from china who are testing positive went up

14 times from november to december and emphasized the policy affects visitors of all nationalities coming from china. speaking exclusively to emily, paul chan says the mainland's reopening will provide a boost to the industry and trade. >> people are so excited number one, tourism, it's been an important source for us in hong kong. so if they increase tourists' arrival from the mainland, if you benefit our hotel, tourism industry, consumption restaurants, and private consumption, that's a major driver of our economic growth. that is one. secondly, in terms of export with the reopening of the border and land transfer between hong kong and mainland will resume normal, and that is very important because last year this alone has disturbed the export

volume and had a negative impact on our gdp growth. secondly, you can sense the sentiment. they've become very optimistic, and this would be very conducive for business management, which is another important contribution so overall with the reopening with the border and the mainland despite external headwinds still existing, we do think that this year for hong kong 2023 will be much better than 2022. >> let's dig into that a little bit more last year we spent most of the year in recession. as you mentioned, risks remain how did we finish out the year and looking at 2023, will we be able to emerge from recession? >> well, you know, last year was tough. we estimated that the negative

growth about 3.2% or slightly more because the export in the last two months was bad. but this year we expect much more impressive positive rebound. as you know, in 2019, 2020, hong kong suffered negatively at that time in 2020 it was 6.5%. but with the improvement in the covid situation and the international travel, the business, in 2021, the impact of economic growth was 6.1% so i'm very positive about this year but, of course, we have to pay attention to the external headwinds, to rising interest rates, the geopolitical situations, and the consequential impact on the volatility of the financial market >> well, sticking with china, we've got some news now on the health care front, this out of

merck china. they have said sinopharm is the producer and they have started talks with them on producing it. it will take all necessary legal measures so basically they are not allowing the generic manufacturing of this treatment, but they're working with sinopharm to produce it, and this is, again, a treatment that is very different from the vaccine which the chinese government has been extremely reluctant to use any foreign vaccines, but they're open to the treatments. >> yesterday our colleagues spoke to the ceo of pfizer who also said they were going to start working with china to launch their product of paxlovid it's not the vaccine but the covid treatment.

i guess many other pharmaceuticals are identifying the opportunity not necessarily for the vaccine but covid treatment. >> and making way for them to actually produce it there, which could be hugely helpful for china. also coming up on the show, the cost of living crisis is expected to dominate the risk in the short term we're going to hear more from one of the firms behind it just after the break.

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signs," everybody. i'm julianna tatelbaum. >> and i'm joumanna bercetche, and these are your headlines. fed chair jerome powell acknowledges the pain of rising rates. >> restoring price stability when inflation is high can require measures that are not popular in the short term as we raise interest rates to slow the economy. the absence of direct political control over our decisions allows us to take these necessary measures without considering short-term political factors. >> uk retail stocks diverge. jd sports tops the ftse after

strong holiday sales but sans buries sinks on the outlook and in the face of the living crisis. >> airbus keeps its crown as the top plane maker climbing 8%, well ahead of boeing but well below initial estimates. and hong kong's financial secretary paul chan says they will rebound saying that china's reopening is boosting sentiment. >> i'm very positive about this year, but, of course, we have to pay attention to the exexternal headwinds, the rising interest rates, the geopolitical situations, and the consequential impact on the volatility of the financial market welcome back to the show, everybody. let's check in on how european markets are faring a lot more positive today than we had yesterday with all of the majors trading nicely up in the

green. we had a little bit of news to contend with overnight, mainly world bank downgrading their view for world growth, notable that for europe their outlook is still around the flat line, zero percent for eurozone as a whole. a little higher for negative growth across the full calendar year, so that's something worth pointing out but, of course, attention is going to focus now on the usc pi print coming out tomorrow and whether it will continue, what impact that will have on fed pol policy decision-making we'll have to see in the coming days the airbus stock is something we've been talking about, trading weaker after missing its target we are seeing a nice reaction to jd sports today.

as for fx, this is the breakdown in currencies. the theme today is a slight pullback in the dollar versus the euro low, so you can see the euro low is about a tenth of a percentage further, not so much the pound, trading around the flat line. here in the uk the focus is on the economic outlook as well as continual industrial action strikes as the talks between unions and the government have broken down in the last couple of days. that's something we're watching out for. of course, dollar/yen has come in about 20 big figures from the highs we go to around november of last year, holding at around 132 now. but this morning we are seeing a major rally in european yields, which is quite interesting across the board we're down to anything from eight to ten basis points remember, the rally started yesterday when we started getting the weaker than expected inflation prints from germany, spain, france.

all of those countries, surprising to the downside as a whole, also a surprise to the downside on friday as well that was a major catalyst for fixed income, and we continue to see that move throughout the course of today as well. >> one thing to add, in japan we're seeing yields move higher across the curve, really bucking the trends of yields lower as joumanna just outlined. world bank has cut its 2023 forecast citing a weaker economic climate they now expect growth of 1.7 from the previous 2.9 projection now its baseline is close to falling into recession however, world bank's president said china's reopening could be a bright spot. >> i think china is a key variable, and there may be an upside for china if they push through covid as quickly as they

seem to be doing you know, most of the world had a post-covid rebound that was sharp, and china delayed that through the lockdowns, and so it's possible that they'll come through. there is a clear difference in what policy makers, experts, and industry leaders see as short-term and long-term risks the report shows the cost-of-living crisis is set to dominate the landscape for the next two years while the mitigating climate change does remain the priority. i spoke with the risk management leader for continental leader at the company who produced the report. >> we're looking at something new but eerily familiar. we're seeing the return of older risks that we felt we had made good progress in resolving but

are very much back on the risk machl energy crisis, food scarcity, cost-of-living crisis, so there's a lot there. >> i think one of the major risks that jumped out to me, and it's not a surprise to anyone following the economy the last few years, most are saying the highest risk is the cost of living-crisis. can you flush that out >> yes it's a crisis we're very much in the middle of right now trying to manage through. the impact that that has on the most vulnerable sections of societies, of course, very difficult to accept, and governments are now really working toward mitigating that impact at the same time as they're trying to protect from spiraling inflation and servicing high debt load it's not an interesting situation. >> what i thought was

interesting is you have your two-year global risk and 10-year global risk. there is, perhaps, a perception out there that governments will be able to come to a solution eventually to deal with this cost-of-living crisis. >> correct i would determine it as a bit of optimism, that we'll be able to navigate out of this financial distress we're in currently, which is the result of a compounding crisis it's the effect of the covid pandemic but the impact of russia/ukraine, which has had a spillover effect in so many different areas. >> this report comes out every year a week before davos what they do is send out questions to about 1,200 respondents across the private sector and public sector, and they come back and say what they think are the biggest short-term risks. i thought not really a surprise,

but the biggest risk over a two-year horizon for many of the respondents is the cost-of-living crisis which is a reflection of the era we're living in. and the 10-year, if you look at the first four major risks are cited, all have to do with climate change so it's failure to mitigate climate change, failure of climate change adaption, and natural disasters and extreme weather events you look at some of the changes they've had to make about how are we simply going to make it through the winter, how are we going to bring inflation down, what can we do to bring down the cost of energy, and in many cases it's come up with almost a contradictory approach because the way you bring down the price of energy costs is by firing up coal plants and relying more on

fossil fuel sources while gearing up on the renewable sides. it raises a dichotomy. >> it subsidized the costs of traditional energy what about supply chain issues in 2022 they were such a narrative. how will they be poised in the coming year? >> that's very interesting we chatted about it later on in the conversation the supply chain issues obviously now are more front of minds, and many companies have had to re-evaluate their just-in-time model and keep things closer to home so they don't run into issues they ran into during the pandemic the other thing is looking at access to resources. what you're seeing is the access to some of the key natural resources like, you know, water, some raw materials it's becoming even more

difficult to get ahold of, and that's going to have longer term implications. >> a huge implications if you're looking at businesses reshoring. that will require so much investment. >> definitely worth taking a look at that risk report. let's move on and focus here in the uk. jd sports has lifted its full year profit report on the back of a more than 20% bump in revenue over the christmas period the retailer has a larger market cap than sansbury. >> a big reaction we're seeing in jd sports today a plus seven percentage point tells you they've been able to recoup a lot of the losses from over the last year very notable

on the flip side, sainsbury has had a rise in sales during the holiday quarter, but the uk's second largest retainer remains cautious as the cost of living crisis hits high we check in with arabile gumede. >> one thing we're getting a clearer sense of is toward the end of the year it was a sense of spending almost for the last time is what it felt like. the key worry now for a lot of retailers is that inflationary risks and the pressures of that are going to impact proceedings quite a lot. and the fact that you have quite a few other retailers, especially the lower end of the spectrum, the low cost or the discount retailers able to take market share away from them is

going to hurt them quite significantly. some of the data that has been out late says the uk's recession, which is likely to happen, will limit food retail sales growth to around 5% max over the next year or so that's below inflation amid the biggest squeeze on living standards, of course, since the 1950s. also getting uk households, only 33% have enough money for essential spending only 5% of the uk households able to spend freely it kind of gives you a clear sense of how difficult it's been and the shift to the lower end of the spectrum when it does come to retailers on the local front. so what exactly is happening particularly for sainsbury which has now gone down 1.6% despite the sales going up, what is it, 5.9% on the year so that has been fairly interesting for them it does look like a positive q3 trading update, but it still

hasn't translated to a positive picture. let's take a look at all the other shares of the retailers over the last year or so as well, what the picture has been like there it's been negative, but today this is what they actually look like as we say, sainsbury is down 1.5% also, all of this on the back, of course, of that trading update we are expecting to get tesco's numbers later as well this week, so that will give us some sense as well as how things are looking. the biggest impact, of course, to all of that has been inflation, and that is what we're going to take a look at. 10.7% for that cpi figure for the month of november, but, of course, key to it has been food inflation. 16.5%. that clearly gives that upward pressure, rather that pressure on spending, particularly for food, particularly for consumers as they try to get through this difficult time if that continues in the latter

part of this year, it's going to hurt things. switching to around a 26% jump in december sales. so it does tell again a clearness of how people are shifting toward other competitors in this market picture as well and how things are faring sainsbury has been the best performer. traditional supermarkets, their sales going up uk retail sales growth going up. interestingly and finally, market share this is something we've taken a keen look at over the last couple of months, particularly over the last year, i should say. we saw tesco and sainsbury lose market share while there has been a gain, though, for the likes of others. they certainly have been able to gain quite a bit in this time.

>> arabile, thank you so much for the deep dive on uk retail coming up on the program, goldman sachs unveils its most sweeping cost-cutting program since the financial crisis we'll discuss next

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welcome back to the show voyager has been approved to take the next step a u.s. bankruptcy jij gave permission but it is expected to be looked at by security regulators before it is finalized. coinbase is slashing its head count because of unscrupulous actors in the industry the company should have cut more jobs last year as crypto values f fall. >> the outlook for crypto is not

horrible, but it's not great we have regulatory headwinds we didn't have before we have time to heal and rebuild narrative, and so people are going to cut costs and sur advise this transition period. >> and court filings have revealed the names ofthe collapse crypto. for more on the big name backers, and there are quite a few, head to cnbc.com. in banking news, credit suisse has declined to comment to cnbc on a bloomberg report that the swiss lender is considering a 50% cut to its overall bonus pool for 2022. we are coming up to bonus announcements now for many of these banks, so i'm sure there will be many unhappy campers there. this comes back to when all of the troubles last year started kicking off. one of the issues raised with the analyst community out there is their ability to retain talent in an environment where they're looking to reduce costs so dramatically. they talked about downsizing the investment banking unit, secure

advertising their banking, et cetera you wonder how capable they're going to be of paying and retaining talent. >> it's such a conundrum here's a bink trying to prove it can grow, that it has a future, and that means investing in talent and competingwith the other banks. at the same time they're under a massive cost pressure to bring down their expense base. so it is such a conundrum and is now at a time when deal making is slowing. >> of course, it's not just credit suisse. goldman sachs is cutting its costs which will see more than 3,000 layoffs and investment banking bonuses slashed. it comes after they reported a 43% slump in profits last year as deal making and capital markets suffered a smart slowdown. jamie dimon has walked back comments that they're facing a hurricane and insists the bank

will hire amidst the downturn. dimon said he should have never used the word "hurricane" last year but warned, quote, storm clouds could worsen. they would continue hiking rates surpassing 6%. >> that's a high number, much above consensus. >> when you think about jamie dimon, his comments have been so interesting. that obviously is a standout, but around the economy and the u.s. poised to enter a recession sometime in 2023, but then you look at the actual business, and his comments have been pretty positive around the health of the u.s. consumer and how their banging business is holding up it's going to be fascinating whether they see any signs coming through or whether it's a prediction for later this year. >> which kicks off this friday that's going to be really telling for signs, tea leaves on how the actual u.s. consumer is doing. i feel like capital market

activity has a pretty good idea that, you know, overall activity has declined in line of what we've seen in public markets, but it will be interesting to see what the likes of brian moynihan has to say, jamie dimon from jpmorgan about the strength of the u.s. consumer and whether we are finally beginning to see signs of moderation weakness there, and that is going to be, again, something that the fed will be watching very closely, too, because consumer credit so far has been holding up. >> i think the other piece to the banking story around layoffs is really interesting because it's not just about the finance sector when you read a headline that goldman sachs is laying off thousands of workers, it doesn't necessarily elicit a ton of sympathy the way it might in other sectors, but it is often seen as a leading indicator. if a bank is cutting back, they're the first line of insight into the economy that could be a sign others are going to be joining. >> one thing i would say about goldman is they have

traditionally every year taken a percentage of the bottom performers and announced job cuts with respect to those bottom performers. they stopped it temporarily, and they've now reinstated it again. it's something they've been doing on an annual basis that's something to bear in mind because goldman sachs is a bit specific we've been talking about it the last couple of days. you're seeing it in the tech sector, amazon in the uk the if you saw the news overnight, they're closing a number of warehouses that's going to affect thousands of jobs here. i believe a lot of this is on the back of a huge amount of hiring that took place during the pandemic and now things are kind of back to normal and people are no longer working from home, operating costs are rising, and they're looking at how they can improve efficiency and reduce costs. >> it's such a good point. it raises the question, how negative is this is it just a sign that

operations are normalizing after the exceptional period during c covid, or is it a sign we're headed toward a severe downturn of some kind we're just about two hours into the trading session and we've got green across the board. the gains have been building xetra dax down 0.8%. after a fairly muted start, it's building here's a sim already story all three major indices are in for a positive start do stay tuned for our continuing coverage on cnbc that is it for "street signs." i'm julianna tatelbaum. >> i'm joumanna bercetche. "worldwide exchange" is coming up next.

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it is 5:00 a.m. and here is your top "five@5." tech back on top as the nasdaq does something for the first time since november. beefed up names some investors are snapping up ahead. ahead, the 2023 global risk report the takeaways in just a moment. a major blow to samsung as apple looks to shift iphone production in-house. ftx back in bankruptcy court today. invests waiting on two key rulings. later on