it is 5:00 a.m. on wall street here is your top "five@5." there is one market bucking all the trends bob iger dropping the hammer cutting thousands of jobs. should investors like it a warning from jamie dimon over inflation and the policy path going forward communist government taking the ai segment down a peg. some stocks have surged triple digits in a week. could the layoff ripple turn

into a wave? slashing staff to save cash. it is thursday, february 9th and this is "worldwide exchange" here on cnbc good morning, good afternoon or good evening as always, welcome from where ever in the world you are watching i'm brian sullivan thank you for being with us. let's jump in and kickoff the hour with the markets and your money. the sun is not up, but futures are bright dow futures popping 270. nasdaq up 159. a lot of moomentum so stocks go up. 10-year treasury at 3.6% in the world of energy, oil again beginning to creep higher. crude is coming off the highest close in a week.

right now it is up .1% it is $78.57 still above $78 a barrel natural gas down, what is new for that 2.50 bitcoin and ethereum is lower this morning this is the hottest asset class this year. not higher every day, but most days bitcoin has cooled off a bit $1,000 from the high of last week we had a mixed session in asia hong kong popped 1.5%. their reopening continues to gain steam as well haven't had any covid headlines out of china for a while now completely different than how it was for the better part of three years. the market there is responding and europe is just getting started.

european markets looking good. all major averages are looking higher if you were there or you care, one of my five predictions is european stocks with the europe energy problems and whatever would do better than u.s. stocks for the year that is how markets work sometimes. long way to go, but good start to the year overseas maybe i'll go 1 for 4 in predictions this year? we shall see we have a huge corporate story this year. disney shares popping as the new/old ceo bob iger drops the hammer and lays off thousands. moving to reorganize the company. pippa stevens is here with that. pippa. >> brian, shares of disney are popping in the pre-market on the heels of the first quarter top and bottom line beat that shows smaller subscriber losses. the story from the call and

report is the restructuring plan unveiled by ceo bob iger disney says it plans to cut 7,000 jobs and slash $5.5 billion in costs as part of the reorganizat reorganization here is iger from the call last night. >> i have always believed that the best way to spur creativity is to make sure that people managing the creative processes feel empowered therefore, our new structure is aimed at returning greater authority to the creative leaders and making them accountable for how content performs financially the former structure severed that link and it must be res restored >> iger says it will be three segments disney entertainment which is streaming and media. espn which includes the tv

network and espn plus and parks and experiences unit this move is significant for iger since he returned as ceo in november the stock is up 20% so far this year iger has been under pressure to make the streaming business profitable and looking at nelson peltz who launched a proxy war last month some concerns where iger is looking to reinstate the dividend before year's end that stock up 6% here, brian >> up 35% or 36% on the year incredible start to the year for disney pippa stevens, thank you to some other headlines happening now. jamie dimon says it is simply too early to declare victory against inflation. warning the federal reserve

could raise and keep rates above 5% for some time in an interview with reuters, dimon adding that investors should take a deep breath and not put so much stock in one month's good numbers shares of baidu, the ai tech company falling after the warning of state media after investing in the sector. in the front page in the securities times, they highlighted several other trendy technologies that spurred buying before fizzling out like augmented reality and 5g and virtual reality, et cetera some of the chinese tech stocks have doubled or tripled this year alone some on a promise of a revolutionary ai move. the sharks are circling. hedge fund third point to the long list of investors taking the stake in salesforce. according to multiple reports,

the size of the stake is not known. if it is confirmed, third point will join elliott management and star board and value act which reported stakes in salesforce. that stock up 1.11%. now to a big story in global banking and more woes for credit su suisse the stock down again as they post a big loss. geoff cutmore is joining me now. they are making headlines. geoff, this is one of the biggest corporate stories in a rough way for years. it doesn't look like it is getting better any time soon >> reporter: brian, these numbers were horrible. the bank has had a tumultuous last two or three years with the legal challenges and assets

under management walking out the door the net loss of 1.4 billion swiss franc ss. the 2022 loss of 7.4 billion swiss francs 110 billion swiss francs assets under management leaving the business in the fourth quarter alone. they have reputational issues to deal with. they announced therestructurin program last year. they are working through the restructuring. the ceo stillacknowledges thes are not good figures >> these numbers are completely unacceptable no question. the transformation program announced in november and if you look at the numbers, it tells you how necessary the transformation program was needed

>> that is what they are planning to do with the investment bank. michael klein is having his business bought for $175 million. that buys him into the credit suisse first boston operation which he will run as ceo let's hear what mr. koerner had to say about that. >> there is still a lot of interest we have very deep conversations with several serious parties who are interested in investing in csb. michael klein and company and we take it step by step >> reporter: this new operation is part of what with credit suisse management hopes will be a continual de-risking of the bank, brian, as they see it. they want to focus on less quote risky areas of the market like

asset management and private wealth management business and swiss banking business here. as you see from the market reaction, i don't think any investors are happy with the figures. >> to think that the stock here in the united states may go below $3, one of the most important banks in the world, is incredible geoff, in that interview, koerner said quote new credit suisse do we have any idea what he means by the new company what they want to do because they bought first boston he mentioned that. that is a name known to our audience i heard some people suggest or say they should completely spin back off first boston into its own company. do you have any idea what the quote new credit suisse may be >> reporter: brian, they want to streamline the operation and

make it much more focused on the wealth management operations here this move to spin out csfb by michael klein into the business is a way of, they think, bringing external capital into the operation and coming up with an m&a that will be a decent challenger on wall street to the big incumbent names. the question is will the market buy in and offer up the mandates michael klein is a well name and successful name in your part of the world, but he has a big job to take on to get csfb frontrunners the other thing they are doing is spinning off the business to apollo another way divesting. it is setting up an internal bad bank to take the non-core operations going forward

brian, it will take years for the strategy to payoff and investors will have to be very patient if they want to see this all the way through. at the moment, this bank is trading at 80% discount to the book value and shares are down over 60% in the last 12 months it tells you a lot about the challenges for koerner and the management team ahead. >> this, geoff, explain to the u.s. audience. we know the company. this is a matter of national pride for switzerland. >> reporter: oh, absolutely. they hate the fact that this bank is doing as poorly as it is it has had a succession of scandals that have dragged the name through the mud there is a two-bank strategy here in zurich the snb and authorities wants

credit suisse to regain its mojo it has had a series of managers come through and looked at the business and struggle theed to c -- astruggled the new business 9,000 jobs are set to go here. is he the kind of ceo who can grow the business and not just cut it >> you wonder if some day they merge with the other big swiss bank great interview and important stock. really systemically important for europe geoff cutmore, thank you very much when we come back, this morning's big money movers and why it is not just disney laying out big job cuts in the weeks ahead. plus, american stocks may still be well off the all-time highs, but another major market is doing better.

we will tell you who. and disney and a stellar year for the stock parks and streaming and their numbers. dow futures are soaring. go trsy rng.odhudamoin we're back right after this. er o " ming”] [music playing] ♪ imagine something of your very own. ♪ ♪ something you can have and hold. ♪ ♪ i'd build a road in gold just to have some dreaming, ♪ ♪ dreaming is free. ♪ accenture, let there be change.

welcome back stock futures are higher across the board. dow up 258 nasdaq is up 14 8. good thursday morning.

what has been a good start to the year with these gains, we are not at the highs dow remains 8% from the all-time high similar story for the s&p 500. even with the big move so far this year, the nasdaq is off 20% from its all-time high get this, a bit of a different story overseas the ftse 100, the diow jones industrial average of the uk, hitting the all-time high since early 2020 why? let's talk more about this and other things happening global with seema shah. seema, good to have you back on. i've been to europe and london and talked about the energy crisis before the war and since the war. you, like us, are lucky with the weather and preserving energy supplies i wonder if that is helping the market if it is not, i'm not sure i

have rational reason, seema, the markets in the uk have been hotter than the u.s. >> yeah. it is a very interesting dynamic going on i would really separate the uk and euro area out slightly differently. since the united kingdom is considered to be the worst performing and economic market in the g7 this year. it is expected to go in recession soon and stay in recession throughout 2023. this makes it more intriguing. the reason the uk has out performed because valuations have been cheap. it is attractive and offering the highest dividend yields globally for people worried about the equity market this year, actually for a safe place, the uk is the place to go. with the weak currency as well, that is helping the ftse 100 because of the international exposure that is on one side. for europe, the story is more

compelling fundamentally, the drop in energy prices changed the outlook fairly significantly on top of that, europe is going to benefit significantly from the china reopening. that and the valuation story for europe which is compelling is one of the reasons why europe is becoming the favorite for investors this year. >> is that it? just too cheap to ignore >> it is actually yes. in a way, it is. you come into the year and look at the global markets which we stand out is expensive india and the united states. if you look at uk and europe, r valuations are cheap after the fall last year, many are saying if they are long-term investors, this is the time. they are looking for the markets which are cheap and fundamentals

stand out. the united kingdom, i look at it as a long term investment and it is not attractive. we are expecting the economy to struggle not just 2023, but beyond as well >> yeah. history says sometimes when things look worst, that is when you want to be the buyer of st stocks i'm trying to understand the u.s. start to the year, seema. we got crushed last year we're up big this year do you expect it to continue or do you think the highs for the u.s. have made already been made this year? >> so, i think it is possible that you could see this market rally that you see the start of the year continue for a little longer it does make sense wherever you are at the moment, the market is saying we are closer to the end of the fed tightening cycle than beginning. we are yet to see clear signs of recession. if you think about the labor market and how strong that was but, at the moment, what the

market is saying is it is a few more hikes to come then there will be fairly significant cuts to the end of the year they are picexpecting a soft landing. how much upside is there and the considerable down side risk? this rally could persist a little bit longer and you look at the longer year, we have to wonder how, you know, it does seem if the market varally cannt continue and declines could re-test the october lows from last year. >> yeah. what a start to the tyear european markets out performing us seema shah, thank you. love having you on. still on deck, why valentine's day love letters, you know, love messages, could

be getting little more artificial shocking report from mcafee you have to hear it is part of the top trending stories. you have to hear coming up

time for the big money movers on thursday morning shares set to soar at the open for applovin the questionable internet ad market space

applovin is up 29.9. call it 30%. applovin up 30% even if the gains hold, stock still down 80% in the last 12 months cold comfort and actually time it and shares of 23andme raised guidance for the year and it received fda clearance to provide additional support to customers. it is making progress on drug developments and clinical trial for cancer testing and affirm is eliminating 20% of the work force ceo calling the decision the most difficult one and layoffs impacting 500 employees. shares of affirm lower this morning. one of the buy now and pay later companies. let's get a check on the other headlines outside of the

markets and including the latest on the horrible earthquake in turkey phillip mena is in new york. >> brian, good morning we start with the tragedy in the middle east. rescuers are fighting frigid temperatures and racing against the clock to free survivors from the rubble the death toll climbing to 16,000 after monday's massive set of earthquakes that rocked turkey and syria according to the state department, three americans were among the thousands killed in turkey teams from more than two dozen countries are joining tens of thousands of local emergency personnel in the rescue efforts. pennsylvania senator john fetterman has been hospitalized. the staff says the senator was at the democratic retreat and began feeling lightheaded. fetterman had a stroke back in may. his primary care physician provided an update in orctober that he could work full duty initial tests did not show evidence of a new stroke

fetterman would remain at the hospital overnight for observation. they said he was in good spirits and talking with family. shifting to the super bowl budweiser brought in four additional family members. foals named baron, sergeant, stinger and razor. they will be at the watch party for the game at the ranch in missouri the theme is based on the game six degrees of separation of kevin bacon. this is the super bowl of advertisements as well, brian. >> absolutely. you have a prediction, phillip a hot take on the game >> eagles 28-27. a hedge. i think the chiefs cover by half a point. >> i was going to say. >> i get most of them wrong. take it for what it's worth.

>> i like it the eagles to win, but the chiefs to cover. 1.5 point favorites. phillip mena, you didn't hedge thank you. >> you got it. as we head to break, we are watching shares of alphabet. the stock getting hit yesterday following a glitch of the ai product event. ai a fail if you missed it they tried to show off the knowledge and asked a question about some, you know, telescope and planets. it was wrong so they got work to do so do we we'll take a short break and we'll beacrit teth bk ghafr is w siness unlimited. it's just right for my little business. unlimited premium data. unlimited hotspot data. (woman 2) you know it's from the most reliable 5g network in america? (vo) when it comes to your business, not all bars are created equal. so switch to verizon business unlimited today.

can the market rally to begin the year roll on it looks like it futures set for a solid start at the open a big reason is disney with shares looking magic bob iger makes big changes and big cuts. investing in here oes of net zero it is happening on this thursday, february 9th this is "worldwide exchange. welcome or welcome back. good thursday morning. i'm brian sullivan right around 5:30 on the east

coast. here is how things are looking they are looking bright. let's call them snazzy, shall we dow up 250 nasdaq up 151. it could continue a solid start for the year for stocks. in energy, oil and natural gas are going in opposite directions what's new oil his higher. natural gas down at $2.39. nat gas greatly affected by the weather. how much heat we need. it will be 52 degrees in new york city today. nearly 60 degrees tomorrow a high of 58 in boston tomorrow. i don't know if it has been the warmest winter ever, but we should run the stat. maybe do an rbi on the weather tomorrow or next week. it has to be close to a high

all of the sky high electricity bills that you are getting will come down in a few months. there is a lag i know you got crushed and bills surged maybe some of the rates will come down. big thank you to mother nature you may have saved europe and part of us this winter let's stay with commodities. a massive amount of attention on metals not just shiny ones pippa stevens is here with more on that. pippa. >> brian, lithium is the one we know about and it attracted a lot of attention it is vital and no means the only necessary raw material. bank of america's group the miss or metals important for future tech technology heroes of net zero copper and aluminum and nickel and boron and cobalt and zinc.

the forecasts hitting by 2025 will require six times more mineral inputs by 2040 some believe we won't have enough the ceo says the lack of investment in production thanks in part to focus on technology and growth stocks is now coming home to roost. last week's launch focused on energy transition metals others include the ticker gtmt and lithium and battery etf. among the u.s. re-shoring push, there are a number of companies focused on domestic mining that includes names like piedmont for lithium and materials for boron and rare early and talon.

another is lithium america which has stock up 30% this year the federal judge this year approved the decision to grant the mine out in nevada they, of course, had the $650 million investment from gm >> we use a lot of the etfs, pippa, they use green and renewable words. you know and i know and let's be sure we know the companies powering electrification, but it is amazing how much mining has to be done giant machinery digging into places that are usually not real close to other things. >> absolutely. they can face a lot of opposition it can be disruptive to local ecosystems there are critics and many who say we should focus on the raw materials we already have rather

than getting materials out of the ground it is a thorny issue, brian. >> or just walk everywhere pippa stevens. >> or that >> we just walk. pippa, thank you very much like steven wright said. everything is within walking distance if you have the time. disney shares surging as bob iger announced a transformation which includes firing or forcing out 7,000 people. iger trying to lower costs stock has been the hottest in america this year. up 25% joining us now is john hodulik john, your take on the quarter what stuck out >> sure. good morning, brian. results were better than what we expected for sure. the real focus was on bob iger's

vision of the future and disney. as you said, cost cutting was a focus. $4.5 billion in cuts over the next few years he offered a streamline vision of the streaming service >> okay. what can you tell us about disney plus or espn? i saw reorganization it sounds like espn will stay. it will not be spun off to a separate company he said it would stay. what will they do about streaming? is disney plus going to cost $20 a month soon >> it may. that is one area they think is interesting. disney is under priced i think they will reevaluate the spend on general entertainment you delineated with

marvel and disney and pixar and what they do with the entertainment side and roll back the spending there that is where that $3 billion of the $4.5 billion came from streaming is still the future of the company. i think similar to other traditional media companies that went all-in on streaming to chase netflix is a reversal from all of the companies now we saw the same from disney last night. still the focus. i think profitability comes back as really the main focus of the company. >> when will disney plus be profitable heck, when will any of these streaming services be profitable i'm asking for a friend, john. >> so each one of the companies is on its own timeline bob kept guidance and maintained guidance for the disney business being profitable by the end of

2024 and profitable for the full year in 2025 there are efforts to rea to re-accelerate that. you will hear something similar from warner bros. and paramount. what happens in hollywood is disney leads the trend and they are setting the stage for further cuts as we look out the next few weeks >> you know, gosh, i forgot that disney has theme parks disneyland and disney world. how are they doing what is the recession risk we know the parks. you take your kids because they want to go and you spend the money. with savings being drawn down, you wonder if families can go and spend $1,000 a day at the parks. >> that is the worry and the push back we hear from clients

parks crushed it 35% margin highest we have even in a number of years double digit attendance global high single digit booking. as you look out a few quarters and that outlook is a bit hazy right now, they are doing well as are the parks at comcast. the parks business is doing extremely well >> john hodulik, thank you >> thank you, brian. >> you are welcome catch the cnbc exclusive interview with disney ceo bob iger at 9:00 a.m. eastern this morning. a lot of questions you can get a lot of investor attention as well. coming up, living in the big apple. never cheap. it will cost you even more

robert frank laying out the record-breaking costs of renting in new york city as we head to break, top trending stories right now nintendo announcing the latest offering legend of zelda video series the game is due in may and it will cost you $70. also, this is weird, a new poll from mcafee, showing one in three men might use chatgpt to write love letters this valentine's day. lack of confidence or inspiration or time. who doesn't have time to write a couple sentences for the one you care about ridiculous listen to this, basketball fans brooklyn nets looking to make a trade. kevin durant to the phoenix suns days after trading kyrie irving

to the mavericks durant is going for three players and four first-round picks. wow! dow futures up 270 we're back after this.

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the cost of keeping a roof over your head is more expensive. the rent in manhattan continues to break records robert frank is here to tell us how much it will cost. robert, these costs are stupid >> especially, brian, after the record rents in manhattan last fall and summer. everyone expected they could start falling in january now that record may be the new normal in manhattan. the median rent hitting $4,100 a month. up 15% last year that marks the highest january for manhattan rents ever the average rent for a one bedroom is above $5,000 a month. more renters are actually paying it the number of new leases in january jumping 8% over december and 9% over last year. real estate brokers say new york's strong job market is helping to keep up demand. then we have low inventory which

means you don't have a lot of choice the vacancy rate in manhattan is 2.5% that is below the typical average of 3%. corcoran saying the high prices are the new quote equilibrium i manhattan. the healthy buyers are staying in rentals until they see sale prices lower nearly 1 in 5 luxury rentals saw a bidding war in january brian. >> you know, you were at the top and i thought maybe i got wax in my ears. did you say $5,000 for a one bedroom? >> the median is $4,100. the average for a onewone bedros $5,000 housing is one-third of the cpi index which the federal reserve

looks on inflation new york is the largest rental markets and the rents are not coming down and going higher and that puts upward pressure on the cpi and fed and overall inflation. it is a really big component of the housing market and cpi the fact it is not coming down and won't for six months is not a great sign for inflation >> luckily education in new york is cheap and plentiful robert frank, thank you. >> yeah. >> yeah. $5,000 a month for an 800-square foot box with no outdoor space okay. as we head to break, during february, we celebrate black heritage the stories our cnbc teammates and leaders in business. here is our contributor and my good friend super genius helima croft.

>> i'm most proud to be my father's daughter. my father, howard croft, was a civil rights activist. he went to mississippi to help register voter s. he did that at a big sacrifice he was not well known at the time i think about everything i have been able to achieve in hmy lifetime because of my father and the civil rights activists black history month is a month where i think back on all of the incredible individuals both mone known and unknown to sacrifice to bring about profound change to the country

welcome back time for the "wex wrap-up. disney laying off 7,000

employees. part of the cost cutting plan. and mattel stock falls in the fourth quarter and salesforce hedge fund third point owns a stake in salesforce. and affirm is eliminating 19% of work force after earnings miss. and jpmorgan chase's jamie dimon warns investors to watch out for trendy investments. it is time to welcome back one of our favorite guests here on "worldwide exchange" and cnbc that is amy zhang. fund manager of the small cap focus fund amy, welcome back.

every time we talk to you, you added a fund you must be kicking tail thanks for joining us. before we get into two great picks you brought for us, are you shocked how strong the macro market has been this year? >> yes, good morning, brian. great to be on the show. yes, you know, i'm a stock picker regardless of the macro factors, we enjoy finding, you know, small cap companies early. we think we can -- >> one thing you do so well and we did a pro event with you is you find the smaller cap stocks and many of them i've never heard about. one of them is called clearwater

analytics. it is a cloud company. so many are. it is in a unique space. investor relations space tell us about clearwater and why you like it. s>> clearwater is a software company and they specialize in investment, accounting and anal analytics. what is unique about them is they are the only cloud solution in the market to provide real-time data for their customers. each day, you know, clearwater aggregates data over 5.9 trillion of global invested assets reports on them and then turns the data into actionable information. what is interesting about the company is they brought automation into a very

menu-based industry with high costs and tedious process which is paramount importance. one thing i like about it is the ability with the data. every time they add a customer with more assets, it is a significant issue with large market because they have a very strong load, they have a strong unit to sustain the industry investment and revenue growth

>> okay. amy, we are having a slight, slight video feed issue. we will go to a break and give you a call and get your final pick as well no we're not going to do that what are we going to do, guys? that's it. give her a call. we will hear from amy. we'll do the old fashioned thing with the rotary dial we'll take a break no, we will not take a break i'll speak slowly so we can do the phone call thing let me know when we have amy on the line dow futures up 276 nasdaq up 170. clearwater analytics is the name amy brought to you on the cloud space. when we get amy, let me know maybe well get her back on tomorrow no amy yet >> i'm here. >> are you there >> i'm here, brian

>> this is -- i love it. viewers are getting a feel into live tv at 5:55. good to have you back on let's move on. we have graphics i have two dogs. those dogs get more attention and probably eat better than i do a lot of people love their pets. is this one reason you like heska. a veterinary platform. >> definitely. as we talk about it, there is a strong secular trend of humanization of pets and pets are part of the family you use heska diagnostics, as i recall what we like about heska is it is attractive with valuations. trading three times ev to sales. that is because during the pandemic, they accelerated growth and they almost did too well they hit some bumps in the road with some delay in getting new

product into the production. now, all of those vet visits and went on vacation and people returning to work. now all of the headwinds they experienced last year are turning to tailwinds and we think that issue will subside. they are launching a new product to accelerate growth this year one of the products is the first ever point of care that cancer screen starting with dogs which is a huge market opportunity for heska. also, they are starting or launching the rapid point test care which is significant expansion of the market. then the element game is the platform for testing they are expanding the market with revenue and we think

economic drivers for them. >> amy, we love having you on regardless by phone or video thank you. amy zhang, thank you heska and clearwater analynalyts if you have not seen the cnbc pro, go to cnbc pro and sign up today and check it out i'm out. i'll see you tomorrow. "squawk box" is next i screwed up. mhm. i got us t-mobile home internet.

now cell phone users have priority over us. and your marriage survived that? you can almost feel the drag when people walk by with their phones. oh i can't hear you... you're froze-- ladies, please! you put it on airplane mode when you pass our house. i was trying to work. we're workin' it too. yeah! work it girl! woo! i want to hear you say it out loud. well, i could switch us to xfinity. those smiles. that's why i do what i do. that and the paycheck.

good morning u.s. equity futures pointing to solid gains ahead of the open. we'll hshow you what is moving right now. including disney it is up 7 points. that is part of the move for dow. ceo bob iger announcing the reorganization resulting in 7,000 layoffs and $5 billion in cost cuts. details ahead. plus, china investors warning about hype risk. some ai names jump 200% year to date it is thursday, february 9th, 2023 "squawk box" begins right now.