that's all for this edition of dateline.i'm n. thank you for watching. [dateline theme] good morning and welcome to "street signs. i'm joumanna bercetche, and these are your headlines. inflation inflection u.s. and spanish cpi comes in better than expected but prices are eeing for the third straight month. barclays plunges, down 14% after a trading blunder that saw it oversell u.s. securities.

sales fall, the french firm flags an encouraging start to the year in china. the iea says a resurgent china will drive 2023 oil demand higher as global supplies contract the head of the oil is up plieps supplies division toril borsoni joins us in a moment good morning, everybody, and welcome to "street signs." let me start with what happened in the u.s. yesterday. we saw u.s. inflation ease a little bit in january, but the cpi still came in slightly higher than expected at 6.4 percentage points. is higher on the year compared to december's 6.5 percentage points it came in rounded up 40 basis

points in december, raising concerns that inflation could be stickier than previously thought. now, rents, food, and energy drove the gains with food prices alone up more than 10% shelter costs rose more than 70 basis points on the month, accounts for nearly half of the cpi gain it one just in the u.s. we saw that we also saw it in the uk you can see 10.1 percentage points that's down from december's reading of 10.5% core cpi, which excludes the prices of food, energy, kohl, tobacco products, that declined 5.8 percentage points. down in negative territory so that's been quite a positive development, i would say, even though the headline is proving to be quite sticky.

in terms of the european markets, you see a mixed reaction we moved into positive territory. we started off in the negative territory. the cac is up three-quarters of a percentage point one name we're watching is caring we'll talk more about that the contact, better than expected ftse 100 you can see shy of 8 8000 barclay is down. disappointed earnings. switching over to sectors, autos are leading up 0.8%. luxury up 0.7%

we're seeing a turnaround. also news coming up later we'll talk about chemicals up half a percentage point. real estate down one percentage point and banks down 0.75% we got the cpi number and initially the fixed income markets didn't know what to do we rallied a little bit in the front end, and over the course of the session, we moved higher and higher by the end of the day they ended up 10 basis points higher proving that cpi is slightly thicker than people had envisioned i want to draw your attention to the 10-year gild, down about nine basis points. as we mentioned, even though the headline is still 1.10

percentage points, it's still coming in high the rally in the gilt market are moved up i mentioned barclays earlier on. the action is quite diverse. down eight percentage points analysts are disappointed on the year and on the buyback. it's sort of the having an impact on the rest of the sector the other banks are holding up well, i would say, standing firm switching over to forex, this is the picture we're getting. the pound is pairing some of its gains versus the u.s. dollar we're sitting at around 1.21%. it did get a bit of strength after the cpi strengths yesterday. we're talking about what's been

going on euro slipping are down a tenth of a percentage point. you can see the dollar is also stronger so about 0.2% of a percentage point. let's switch over and talk about oil because global oil supply was steady at the start of the year but could exceed demand on the spring oil prices are at pre-war levels and they say it could weather the storm if the oil's price cap is even as successful as the gas price cap. toril borsoni joins us. good morning, toril. can you the give us a little bit more detail as to what you're

seeing >> sure. good morning what we're seeing is demand is really picking up. first and foremost in china as you said, the caters we have for the start of the year is showing domestic flight activity, interprovisional mobility, congestions, numbers in china really picking up quickly as after the government lifted the restriction at the start of the year so we're expecting -- and there's sharp oil demand in china. as you know last year, chinese oil demand soldared for the firt time in decades. 're expecting to see a lot of pent up demand there china counts for roughly half, and other neighboring countries that benefit from the reopening of china's order and economy would cover the rest of the growth second it's the sector, the

reopening in china with domestic flights and regional flights jet fuel will surge this year. more than a million barrels a day in growth. we will come close but not catch up with the pre-covid levels for jet fuel demand this year. >> really interesting what you have to say there. just to give our viewers a little bit more numbers, i do see oil demands increasing in 2023 fuel, as you say, half of that by china and the rest by neighboring countries to your point. one other phenomenon i want to ask you about that was quite prominent toward the end of last year was the gas to oil switching phenomena, when gas prices got so expensive, we saw that phenomena start to occur. with gas prices lowering, will we see that switch >> yes we had seen a lot of demands from gas switching to oil not

just this last winter but also before russia's invasion of ukraine because gas prices were rallying as fresh cut-off supplies or reduced supplies to europe and the economics shifted in favor of burning more oil we were expecting a lot of additional demand, oil demand for gas, oil, and heatinger through the winter, this biwintr due to the high gas prices gas prices have fallen very sharply because of warm weather and europe and heating demand and the lower gas prices really reduced that switching from gas to oil we are still expecting some additional use, but they're a lot less than we had expected previously, also because of the warm weather we've seen in europe so far this winter. >> toriling we saw the oil

market react to the news that russia had thought of cutting production by 5,000 barrels a day. initially we saw a 2% spike on the news, which tells you they were not really factors that in. what are the iea seeing as far as russian production is concerned? >> yeah some of russian production so far, russian production and exports have held up much better than expected a lot of it as you said initially, the price cap on crude oil that came in in december has allowed the rerouting of a lot of the crude that previously went to europe, to new markets in asia and for that aid to use maritime servicesing that helped facilitate some reallocation of trade. we even seen exports come down by 100,000 barrel as day in january after this price cap came through, some oil still

flowing through the line and some to bulgaria, both exempt from the embargo and so we're seeing china, india, turkey really picking up their purchases, but we haven't really seen other major buyers come into this market. as for products, from the 5th of february, bryce caps came into effect and embargo prices as well. we're seeing now some r reallocation of products which we had seen thai they're expecting exports to fall. the cuts announced by russia recently, it's in line with what we were expecting already. this is included in our markets

that see the markets balanced through the first of the year. we think there's enough supply to meet demand for the coming months the question will be when summer comes around, refined activity picks up to meet summer driving, and china rebound really takes off. this is when we can see the market tighten through the rest of the year. >> i guess one way to phrase it -- i'm not going to ask you that question directly -- in a sense the oil price cap isn't working because the oil production out of russia is still really high they're managing flows to your point out of china, india, and turkey. ynamic i wanted to ask you about is the u.s. what is your expectation for supply coming out of the u.s. in 2023 >> thank you for that question i just want to go back to your

previous call on the price cap so we say the price cap is not working. i think we have a slightly different view because the price cap was put in place to allow for russian oil to continue to flee, but at the sam time reducing russian revenues. what we have seen is even though russian production is coming to market, we're seeing that russia really comes down. for instance, in january, export revenues for russia were about $13 billion. that's down 13% on a year ago. russian fiscal receipts from oil industries down 48% on the year. so in that sense we can say that the price cap is having its intended effect. it's allowing oil to continue to flow to markets, but it's capping the price that russia is

getting for its crude. euro's prices are now trading around $46, $47. in a sense, it's having its intended effect. over on the u.s., we saw the biggest release ever of emergency stocks, government stocks nearly 300 billion barrels were released into market, and this really helped to bring prices down from where they were at the invasion of ukraine, the spikes in the summer. almost a billion barrels a day of oil coming into market, which allowed industry stocks to recover or at least prevent them from folding further for this year, we're not expecting -- of course, those

releases have come to an end the collective action of the dia organized for the member, they're still not finished they're watching the market. there's more if the market tightens up too quickly and at the risk of the economic growth globally so this is something we're watching there's no plans that i'm aware of at the current time, but the u.s. and all the ia member countries are obviously watching the markets very, very closely in this volunteer time. >> toril, super clear. and thanks for addressing my other point, toritoril borosi. coming up on street signs, it is confident in 2023 as china reopens. we'll dig into the latest

fashion numbers coming up next

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well, french supermarket giant

posted another profit. recurring operating profit rose 4.6% to 2.4 billion euros. carrefour's stock is up almighty eight percentage points. meanwhile nother stock we're watching is kering the french luxury group says despite missing expectations, it's working the expression is what god takes away with one hand increases with another now that china is opening up, the outlook seems to be positive. >> they had a double whammy because they do rely on the chinese market more than some of

their competitors in the luxury sector and also the brand fatigue we've seem at gucci come through the past couple of quarters already that was a result of the revenue being down gucci that makes the lion's share of revenue for the group, the revenue was down 14% in q4 we're seeing some of the other brands as well that have gone down impacted by marketing problems it had, dubious advertising campaigns. and the second largest stock, you see a normalization of the growth after the big, big success of kering. they're trying to cut some of their overreliance on gucci. their sales were up a little bit. but, look, they're working on a tern aund on gucci they're going to work on the

legacy heritage brand and slash their whole sale exposure and a week ago the name at gucci who would present his first collection for the brand in milan in september he was really the engine of the sung says at gucci with his brand fatigue. they're working on it. it looks like the market is giving them a little bit of the benefit of the doubt as you said, they've seen some encouraging signs at the beginning of the year. >> ii've seen a popular direction. he's not well known. >> no. he's italian, which for gucci is an important thing he's not a superstar, but he's been big at producing some up-and-coming designering, and they are serious about the turnaround with gucci.

he will join in the second quarter of the year. there will be a smooth transition there it will be a tough gig for him surely, but, again, he's going to bring new to gucci again. we've got a new line, pharrell has a new line. he's a talented musician. >> bringing a new skill. you're right a surprise he's not one that is not a designer he has some experience in the fashion industry he's done multiple collaborations with marc jacobs and co-founded his own street ware brand, but he's not a designer it's a completely controversial.

he's a celebrity he's bringing a buzz around the announcement some say he's more of a creator. louie vuitton is moving more toward a luxury player he's seen as someone like a star designer at louie vuitton who died in 1991 he was a black man high in his position there's a continuation there. >> it seems like it's a bit of gamble because the last couple of days julianna and i were talking about some of the brands collaborating with musicians and it hasn't worked out their collaboration with beyonce and ivy park hasn't worked out so well either

i wonder how that's all going to pay out for them it's a bit of a gamble. >> it is a bit of a gamel. it is a gamel. it's also a new thing, his firs big appointment. maybe wonders could pay off. >> charlotte, thank you very much for the luxury overview today. that's charlotte reed, french correspondent talking today about french luxury stocks. switching over to airlines air india has faced a record-breaking order for 470 new planes the airliner ordered 250 airbus jets with the majority going for the a320 narrow body it put in an option for a

further 70 so strong demands coming out of india for these jets. and in banking space, barclays posted a 14% decline in demand the british bank reported a full year pretax profit of 7 billion pounds that is just below analysts' forecasts. they paid annual dividends and doubled its year in pounds it overachieved on its goal for next year, however, the stock is down 8.5 percentage points the analyst community were a little disappoint by the scale that was announced. and heineken has posted a 2 2.4% increase.

they forecast they would jump by a mid- to higher percentage this year the ceo spoke to cnbc earlier and said it would help in the performance. >> the apec region, almost 30% volume growth. this was basically preopening in china. this was driven by a very strong re result it went up 22% and we see that coming through indeed, with the reopening in china, we may see additional momentum building in this coming year. another stock we're watching today, the supermarket group saw

a boost as it posted 23% in euro is ahold del expected an increase the company is confident it can maintain margins while keeping prices low. >> we have a rather stable market, and i think one of the most important drivers for us is keeping the prices in line we have some negotiating work to do we work very hard, and at the same time we work to increase our cost programmes. as we know, we cannot price everything through especially europe where the markets are so

tense bus of inflation, because of energy, and because of societal and the war in ukraine too. >> so two supermarket chains posting good results. elsewhere the eu expects to report on its latest sanctions ban. it pro provide up to 7% annual turnover. coming up on the show, the ai chat bat sl well underway with china and the u.s. racing to compete 'ldis e test coming up next.

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lonely at the top. join the millions at finding success on their own terms. start your journey with a free trial today. welcome back to "street signs. i'm joumanna bercetche, and these are your headlines inflation inflection u.s. and spanish cpi come in hotter than expected, but uk data shows price pressures easing for the third straight month. barclays plunges to the bottom of the stocks as andual profits slide more than expected, down 14% after a trading blunder that saw it oversell u.s. securities. shares in european retail

heavyweights surge after upbeat earnings ahold delhaize says the company is doing what it can to help consumers in the face of soaring prices >> this year we reduces prices just to support the customer as we know, we cannot price everything through especially in europe where the markets are so te tense. the iea says global demand will increase by 2 million euro a day. >> we're expecting to see penalty up release there china accounts for roughly half of the growth. and other neighbors countries that benefit from the reopening of china that's border and economy will fuel the rest of it well, barclays, the bank,

has spent a lot of focus on that, citing disappointing news relative to expectations on the earnings for the year in addition to the outlook and buyback. we're getting commentary about its consumer lending business. barclay says it's not winding down its consumer lending business it is investing in building a technology platform. it's partner finance will pause on boarding of new retail borders. bpf will only provide a few loans to existing customers. they're updating the platform and that's why they're saying the onboarding of new retail partners so perhaps a clarification of some lines out of the statements earlier. here they're saying they're actually not winding down the

consumer lending business at all. they're pausing, bringing on new clients in that space. earnings have been the major driver for the stock and it's been pretty negative it's down eight percentage points in trading. elsewhere tmc shares traded after buffett slashed its stake. it shows a rapid turnaround. it now holds 8.3 million shares in the company a fascinates story there, but you can see the reaction is quite negative, down four percentage points. now berkshire slashed stakes by 60% and u.s. bank core by 90%. activision blizzard is down 12%.

it's still the 12th largest. he did add slightly to his stake in apple chri christina kristina partsinevelos looks at the report. >> he bought 60 million qc shares in q3 making it one of the top ten hold eings after we see the quick moves in and out of the stocks, less common among berkshire hathaway positions. it decreased its exposure to research and dutch equipment maker asml d 1 also dissolved its position

in asml. cadence design posted its earnings earlier this week bridgewater associates cut its stakes by 80% in q4 of last year another. lar name among the 13 filings was salesforce with five known activists in the stock you have starboard filings valueact over half a million inclusive cap over 6 million elliott management the sigh of those positions is still unknown. keep in mind 13 filings provide an update on q4 holdings and they may have changed in the past three weeks for cnbc news business i'm kristina partsinevelos. the bust could drive more inactivity this year they have already raised or are

in the process of raising $17 billion in this quarter. we have with us the ceo and founder of the company great to have you on the show. 2022 was a year of revaluation for the tech stock community we saw a massive plunge in the nasdaq down 20%. this year things are turning around somewhat. i wonder what extent over this new focus on it, how is that going to go forward? >> it's very exciting. there will be new eras later, but this is a new one opening up chat gdp is growing in the hands

of public. new applications can be developed on it. it opens up businesses and in these gloomy times when people aren't sure with the recession, it opens up a whole new very positive outlook for investments. >> let's talk about what this means for deal making. ai isn't something you can do overnight. so all of these companies have been work on their technology for years and years and years. microsoft went public with it because they did a public investment with the owner of cha chatgpt. why is it happening now? >> it's taken a very long time to get there but then you have layers of product around it, in that case the chat makes it easy to be used and then it opens up more

publicity for innovations that have been long term in the making as well as maybe smaller iteration, maybe not groundbreaking ai innovation, but smaller iterations, and that can revooiv the interest both in terms of investment but also for m & a. in the case of microsoft, what they did is effectively externalize the research, right? that worked really well for them sometimes it works differently for other companies, but they recognize that maybe smaller companies could bring more innovation. >> i think your point about externalizing the research is very interesting because doesn't that also mean that phenomenon will favor the incumbents or at least the incumbents who have the cash to go out and acquire the startups >> eight iand it's just a very

healthy product. it makes our investment more liquid either you become the massive company, you go for the listing, but you have several packets along the way to be acquired for the team or research that's what's really exciting. >> that's what was missing throughout most of 2022 because we saw ipo activity dry up and now there's a passage way for ai companies, is what you're saying. >> m & a in general has been very active. it's slowing down now. but if you look at the most attractive, you have a lot of o act activity what we're seeing is it takes a longer time, but the interest is

definitely there. >> what about the geopolitical race our guest on the show the other day said china is trying to come up with their own general active ai technology. where do they stand in the u.s. right now? >> it's incredibly important to have different competing models. geo plittics enter the picture as well as if you think in terms of languages right now all we see is mostly focused on the english language, but then you have others. >> what is your outlook for tech going into 2023? i know it is a very broad question given the pullback and a lot of it is idiosyncratic

stories. but people talk about the fact the valuations have come off a little bit it could be attractive if you still believe in the growth story, but operative word is the growth story is there still going to be growth because you've seen things that have been growing quite rapidly in the last couple of years. >> that's true i believe it's all in explaining the strengths of your foundations. we talked about it in terms of m and a, in terms of the same. it's not necessarily a bad thing. now it's building back gross sentiment and being very strong on those foundations. >> thank you do very much for joining us it's a fascinating conversation. i'm sure you'll be back. now, elon musk has called for more on the artificial

technology it has the potential to pose risks to people. he reiterated his plans the handover his control of twitter, telling delegates he wants to continue as ceo until the company finds stability. >> i think i need to stabilize the organization and make sure it's financially healthy and the product is in place and the roadmap is clearly laid out. so i don't know. probably toward the end of this year should be good times to find someone else to run the company. i think it should be a stable position around -- you know, at the end of this year >> and speaking of, tesla has adjusted prices for two of its models in the u.s. it's the fourth time the ev has changed the price. it's increased its price by $1,000 to just under $59,000,

but it slightly cut the mod ol' of one open its increases. strong demand trumps price increase you have to wonder if weak demandle trumps weak demand. you can see the shares here are down 2 percentage points they had something that caused massive delays and disruptions in the airline today the reason is still unclear, but it's caused maivs line interruptions. the stock is down two percentage points if we get more >> caller: orr a lot of what people will tell you a lot in germany are having chaotic choices. egg prices jumped 70% in the

u.s. we'll discuss after the break.

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comcast business. welcome back to "street

signs. let's get a quick check on how u.s. futures are shaping up. you can see all three indices are dipping into negative territory, this after that u.s. cpi number came in yesterday we're going to talk about that shortly, but the reaction was pretty mixed by the close yesterday. we had the nasdaq higher, but the two indices lower, so today we're seeing all of these indices looking like they're going to open up in negative territory. the focus today on retail sales. we'll watch for that number. if it comes in strong, it will add fuel to the fire that the feds will have to increase rates. it did spur fed officials to hint at a higher than previously expected tour rate a federal funds rate between 5.5% and 5.25% by the end of the year, seems to be in the right

type of framing. and it means they need to continue for longer than previously anticipated. brian moynihan said the following. >> they have the capacity to borrow 3.5% inflation is tough on people who are -- the rate of goods has exceeded the wage growth, and that should come back in line as they choke it down overall consumers are in very good shape. >> meanwhile the uk is farg better as well it's down from december's reading on 10.5% core cpi which excludes prices of nerm, food, alcohol, and toe paco products,

declined to 5.8 percentage points the reaction in the market has been one of quite dovish repercussions. let's take a look at how forex is trading the pound has dipped down 0.6% gilt, we are seeing quite a strong reaction in gilts today as well. that is the picture across awe of the yield curve the gilt is down 11 basis points across the entire yield, the investors are pricing out the possibility of even more rate hikes coming out of the bank of england and reassessing the rate's outlook perspective from here let's get to the investment director good morning let's start with the uk

inflation prints the market is behaving as if this was a single-didn't rate. gilt's are rallying 10 basis points is this a dovish release for you? >> good morning, joumanna. i'm sure they can breathe a sigh of relief. let's not forget, we've had similar looking data for the last few months, and i think positions has played a big part. they've been taking the positions off in the recent days and weeks and that seems to have underperformed i think we got to the stage where the position was clean marginal progress on inflation has seen a pretty strong rally

this morning. >> how likely is this to influence the bank of england. they're moving toward a more data dependent approach. they've removed all reference to the guide answer and acting forcefully is today's number likely to influence their thinking on a further interest rate hike >> to some degree, yeah, of course pretty much each of the components, the margin, i guess, certainly the doves and the centrists will feel a little bit emboldened ultimately this is a similar problem to that whichhas been faced by the fed there's a certain amount of disinflation which is occurring. but quite how far that goes, quite the extent to the core services comes down far enough to justify policy on it really does remain to be seen

it's the name of the game for most central banks now they've broken the back. they've hiked aggressively in 2022 and it's going to be a month-by-month policy. >> i mean definitely a lot of parallels in terms of the object tissue but also i guess one of the take aways from yesterday is core inflation is proving to be somewhat sticky. the fight against inflation is another over yet, is it? >> no. it's a betterle look at conditions there is a self-fulfilling provecy because if the labor market is strong and if the labor prices are rising and they're not rising in real terms, that can fuel further consumption, hand that keeps inflation hot. the fact of the matter is services inflation is more tricky for central banks to deal

with in my opinion it's still a reflection it's going to solve these problems still do expect that i can't ignore how strong it's been in all of the major economies, and that probably -- at the margin and as we heard from mr. moynihan that probably purrs the timing of the recession a little further. >> to go back to cpi going into the weeds, i thought it was interested for the first time in three months we had good prices turn marginally positive. what does that tell you, or do you think perhaps it's a one off as far as prices are concerned >> ultimately wait tells me is they're not good at understanding it it's a highly complicated phenomenon of what they're doing. it's a best efforts basis to get their hands around inflation

you've got prices winging around up and down. we're averaging those out and try to consumption weight those to get broadly where prices are going. that's why you see things like coal to get to underlying pressures. when you get to some of those measures, the picture looks a lot more concerning for the feds than when you allow yourself to be convinced by what's going on in the headline space. that being said, i believe they have been the lead indicator here it's an agriculture price shock global in nature, service prices, core prices have sort of responded to that. it's going to come down, but the timing of that is difficult, and, of course, things like, you

know, market traded act prices will cause problems on a month-to-month basis. >> there's clearly going to be a lot more volatility in terms of interpretation of the data james, thank you so much for joining me let us round out the show. this is the picture now. all of the indices are trading in the green, even the fotsefts. that is it for "street signs. i'm joumanna bercetche "worldwide exchange" is coming up next.

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good morning it's 5:00 a.m. here's your top "five@5. january inflation numbers coming in hotter than expected. investors weighing in on what that could mean. expect a higher than expected read. there appears to be a major shift. you've got brian moynihan and david solomon weighing in. the banks may be bullish, but buffet and