gerfa: i'm glad we're back. keith morrison: wonderful, wonderful. that's all for this edition of "dateline." i'm craig melvin. thank you for watching. [music playing] good morning welcome to "street signs." i'm joumanna bercetche with julianna tatelbaum in london and geoff cutmore and steve sedgwick in geneva. these are krouyour headlines bp on strong prices and trading volumes, but the stock slipped after the company cut back the share buyback program. and shares of hsbc pop with

the first dividend since 2019. jpmorgan chase agrees to the rescue deal for first republic taking overall of the assets ceo jamie dimon says this puts a halt to the banking crisis for the time being >> so many and this pretty much resolves them all. this part of the chrrisis is ov. here in geneva, 69 million new jobs will be created by 2087 the managing director tells cnbc the economic outlook remains clouded. >> there is a split down the middle in those predicting recession, 45% the 45% predicting no recession.

we are in the midst of the deeply uncertain moment. good morning welcome to "street signs." we have so much to get through on the show today. i want to kickoff by bringing you important data at least as far as the ecb is concerned. that is the bank lending survey. policymakers the last couple weeks have been consistent that there are a couple of things they are watching. both of the data points come out that the ceb survey and the second is the inflation data coming out in an hour's time in terms of the bank lending data, non-financial lending corporate growth dropped to 5.2% year on year versus 5.7% in february household lending growth has dropped to 2.9% year on year versus the 3.2% preliminary estimate in february in addition, the ecb is flagging

net 27% of eurozone banks reported a tightening of lending standards for companies in the first quarter. 38% of eurozone banks reported a full demand from credit from companies in the first quarter it is notable that this is the first set of data from the ecb since the flaring up of the regional banks in the u.s. as far as credit conditions are concerned, there is a tightening of lending standards going on. julianna, this is relevant because it tie into the broader question about the state of the european economy and growth profile going into the second half of the year remember, lots of people have been saying these bank incidents have been idiosyncratic. now we are beginning to see a real impact on lending activity. >> i wonder to what extent this boosts the case of a smaller

hike from the ecb. now i understand it is 25 basis points hike. now they could go for something bigger does this put that expectation or that debate to rest >> i say we get a better answer once inflation data comes out in 55 minutes >> one other piece of data is the final april manufacturing pmi for the eurozone it has come in at 45.8% for april. that is down from 47.3% in march. it is better than the preliminary reading of 45.5. the key with the pmi is well below the 50 mark. the manufacturing sector continues to contract in the eurozone and the down trend deepened in april. >> a lot of data to digest, julianna the pmi numbers on the investors minds. bank lending survey data showing

contraction of data. european boards were closed yesterday. we are playing catch up with the u.s. markets and the major news overnight did come from the banking sector that is with jpmorgan chase agreeing to take over first republic bank for $10 billion. this is the third regional lender to fail in just two months it is quite astonishing we are talking about several fail ures of riegional banks. we will talk about first republic on the show today the stoxx 600 is down .40% here, it is not the banks dropping the stocks lower, but the latest the european index the ftse 100 with focus on the index which is down .10% we are seeing dispersion at the top. housing names doing well after

better than expected data for the month. those stocks are right at the top. at the bottom of the ftse 100 is bp that stock is down 5%. investors not really evennvncurd that the stock is down cac 40 is down .50%. fitch downgraded france over the weekend. they concerned over the public finances and the continued industrial action and social unrest the dax is down .40% here as well we are watching a couple of names. notable, infineon and in terms of sectors, technology is up .70%.

infineon boosting that segment banks looking strong hsbc's profit basically tripled in the first quarter and they announced a higher share buyback than expected. hsbc is a strong point of green. other banks set to report. unicredit set to report tomorrow i'll be in milan speaking to the ceo. we have oil and gas down bp is dragging and basic resources down 1.3%. let's talk more about what happened at bp the profits did rise to $5 billion in the first quarter that beat expectation. the energy giant reduced share buyback and committed to using 60% of cash flow to buy back stock. the group forecast higher gas prices in europe and asia in the second quarter boosted by recovering demand in china

the stock is down 5.5% broader oil is taking a cue from bp 5.5% shell is down 4% total is down 2.2% a cloudy outlook ahead for the oil and gas names. as i stated, hsbc with a profit of $12.9 billion in the first quarter and 200% increase over last year and above estimates. revenue rose for the year fueled by rising net interest income. they announced the first quarterly dividend at 10 cents per share and buyback of up $2 billion as it prepares for a clash and paying over proposals on friday. a lot to unpack there. the stock is doing well after solid results.

european banks today here which is a mixed bag we have hsbc leading up 3% the french banks soc gen doing okay we have standard charter d down .80%. deutsche bank is down .30% interestingly, though, the stocks are holding in despite the major u.s. banking news overnight. julianna speaking of the major news jpmorgan chase will take over first republic after the lender became the third american bank to fail in the last two months jpmorgan chase has agreed tio take on first republic deposits and $173 billion of loans and $30 billion in securities following negotiations with the regulators fdic will absorb the loan losses and provide a $50 billion credit

line jpmorgan chase will pay $10.5 billion and expects to see a profit of $500 billion for the deal first republic will close down and shareholders wiped out wall street welcomed the deal. jpmorgan chase closed 2% higher. jamie dimon said the acquisition means the banking chrrisis is largely over. >> i think the banking system is stable you reported on regional banks with good results. modest outflow the deposit outflow is quantitative tightening. there are so many banks to offside this way there may be a smaller one, but this pretty much resolves them all. this part of the crisis is over. it does not -- down the road, rates going up, real estate, recession. that's a different issue for now, take a deep breath. >> jamie dimon there trying to

draw a line over the crisis. he is arguing this is the end of this episode this leg of the banking crisis he would say that. looking at what has happened with first republic, the markets have spoken this is a good deal for jpmorgan chase i think there are concerns out there and particularly with the commercial real estate sector and how that might crop up for the banks. >> julianna, the first thing is the amount of deposit outflows in first republic was extremely high for the first few months of the year $100 billion you have to question if this will draw a line under a lot of the banking stress as we witnessed in the u.s. banks. does this put an end to it number two, this will resonate with geoff and steve, and you talk about concentration risk. usually one allowed to control r

bank on a lot of people say this create s a too big a bank to fail geoff and steve, we are in a similar issue. the combined entity of ubs and credit suisse will have a combined shared deposit of 30% of the market share. >> yeah, the rules seem to be changing quickly as we were commenting on in "squawk box," we came out of ''08 crisis with a set of rules that we thought would be forever rules. they are being reworked on the hoof i'm not sure anybody thinks it is a great idea to have the concentration of deposits in a single entity.

i'm not sure anybody thinks it is a good idea for the fdic to guarantee deposits of organizations 100% here. as much as the element of the crisis seems to have been managed, i don't think anybody seriously thinks we are through this we need to have another look at the way the guardrails have been put in place for the industry. we need to have a rethink of the concentration of risk. we also need to think harder about the potential for cre risk and hold-to-maturity portfolios. >> julianna and joumanna, you touched upon these let's remind the audience. the huge bank failures happened amid the scenario where interest rates are going up we were told that interest rates were fantastic for banks

i always had my questions of the relationship with nims and banks and higher rate scenario now we see it here as well yet, we haven't seen and you talked about commercial real estate we haven't seen the recession or the downtick or delinquencies. we have not seen the strains appearing yet. all of this is happening amid a benign economic environment. of course, not benign interest rate environment where the federal reserve raised ten times by 500 basis points in the last couple of years. the fact of the matter is, the underlining economy is strong. remains strong what happens to the banking sector when things turn? that is my point it is all very well saying this episode of the crisis is over, but there are many strains,

including the refinancing of many levels in corporates and individuals and mortgage market and sovereign that needs to take place the next couple years. there is no massive pivot on where interest rates are >> the growth summit in geneva we asked the world economic forum managing director about the first republic deal and whether it would put broader concerns about the banking system to rest >> the chief economists do not currently see what has currently happened so far to reflect any systemic instability they are expecting that there will be weakness revealed in other banks and other parts of the financial system because of continued interest rate changes. >> so, very interesting in spite of what we heard from jamie

dimon. here at least, there are concerns of another chapter to this book to be written. let me hand it back to you, julianna >> thank you, geoff. we will be back with you later in the program we are taking a quick break now. will there be another hike we will check in on the fed and the latest next. when we started our business we were paying an arm and a leg for postage. i remember setting up shipstation. one or two clicks and everything was up and running. i was printing out labels and saving money. shipstation saves us so much time. it makes it really easy and seamless. pick an order, print everything you need, slap the label onto the box, and it's ready to go. our costs for shipping were cut in half. just like that. shipstation. the #1 choice of online sellers. go to shipstation.com/tv and get 2 months free.

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welcome back to "street signs. the reserve bank of australia hiked rates 25 basis points. the central bank is determined to fight inflation warning further tightening may be necessary in the future. it is a big week for macroeconomics data and central bank decisions we have the cpi data tomorrow, all eyes on the fed as investors anticipate a 25 basis point rate hike before a pause in the u.s. central bank tightening cycle the european central bank will announce on thursday after the turmoil in the banking sector.

u.s. non-farm payroll closes the week on friday what a busy four days ahead. mike bell is with us jpmorgan chase asset management. mike, thank you for being here on set with us let's kick off the ecb which has a more complicated job this week than the fed the data has been all over the place in europe over the last several weeks. germany is stagnating as we learned the end of last week inflation is running hot still in is spain and france and stronger than expected now the leanding survey shows continued tightening of lending standards. what do you think they do? >> i think they will hike by 25 basis poibnts. i think that should probably be it you look at the lending data in the survey this morning and the collapse of loan demand across the eurozone is stark. it is the credit condition tightening and weakening of loan

demand in the u.s. and europe is not getting enough attention the focus on inflation is like driving while looking in the rearv-view mirror inflation will stay hot and unemployment is low. if recession hits on the back of the credit condition tightening and unemployment rises, that should get inflation under control. to keep on hiking because inflation is high at the moment is like driving through the rear-view mirror when you look at tightening and credit conditions to see the future path of growth. >> i wonder if we are being complacent of the energy inflation story. i bring it up because bp expects gas prices to rise again in europe as china demand recovers. clearly that has been one key driver of inflation in europe and it has come down what if we see resurgence of the energy crisis again? >> it is possible, but it is not that likely because you've got

inventory in terms of gas storage. it has been the highest it has been at any time in the last decade given everything with ukraine and gas supplies from russia, that would be almost unbelievable that's where we stand. if we re-fill gas storage at a slower pace this summer than last summer in europe, you will go into winter with almost full storage. it needs to be an incredibly cold and long and brutal winter for europe to have a crunch this wi winter it is not possible. >> it is reassuring. to go back to what the ecb should do. it is not necessarily what they will do. i think they have been consistent with hawkishness. we are waiting for the inflation data in 40 minutes time. i think it is obvious that they do intend to keep hiking they may go for one other hike after the one this week. what does that do to the economy

in your view do you think they will come to regret the extra hikes >> i think whether they peak at 3.50 or 3.75, it doesn't matter that much. the question for the ecb and global central banks, including the fed, is not where they peak or when they come down to and exactly when the ecb may have rates of 3.50 or 3.75. by the end of 2024, all of the major central banks will cut rate they will come down to 2.5% in the face of rising unemployment and recession. >> in that context, given it is not just exclusive to ecb but the rate cuts have to happen because of the economy dipping into recession and then where do you put your money >> from the bond perspective, at the moment, if you look at end

of 2024, the market is surprising with the fed down to 3 and ecb below 3 and the bank of england come down to 4. i actually think all of them will be about 2.5. it issing iis interesting the uk is the most vulnerable of the economies because it has a short-term mortgage rate structure. the likelihood of recession in the uk is higher this year than anywhere else. the market is pricing rates coming down to 4%. it may p come down to 2.5 >> the outlook for the uk as we got fresh housing prices for the uk i think house prices rose in april after seven months of decline. mortgage rates are stabilizista.

what is next for the uk housing market it looks like rishi sunak will provide more support to get the housing market going again for those in the help to buy scheme. >> the house price numbers are based on hardly any transactions few people are selling their house at the moment. ultimately what happened is as we went into the year, only 13% of mortgage holders in the uk had felt the monetary policy tightening by the end of the year, nearly 40% of mortgage holders will have felt that end of next year, it is 60%. if you hold rates up north of 4% as the market is expecting them to through the end of next year, that feeds through to about 60% of mortgage holders. if you go through 1.2% mortgage rate to north of 4%, that is a 40% increase in mortgage payment assuming you are on a repayment

mortgage wages are not going up that much it causes people to cut back as that happens that will tip the uk economy into the recession and why rates need to come down by the end of next year. >> at a time with a cost of living crisis with inflation pressure mike, your big view is buy duration and buy gilts mike bell. jpmorgan chase asset management. coming up on the show, could your job b the outlook for the globe and wage conditions. beat ♪ ( ♪♪ ) ( ♪♪ ) ( ♪♪ ) -awww. -awww. -awww. -nope. ( ♪♪ )

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welcome back to "street signs. i'm julianna tatelbaum with joumanna bercetche in london and steve sedgwick is in geneva. these are your headlines bp's stock slips after the oil giant cuts back the share buyback program. hsbc pays out with a $2

billion share buyback. > and jpmorgan chase agrees to the rescue deal for first republic taking over the troubled lender. jamie dimon says the deal will put a halt to the banking crisis for the time being >> only so many banks offside this way there may be another smaller one. this pretty much resolves them all. this part of the crisis is over. and the world economic forum estimates 69 million new jobs created by 2027. 83 million will be wiped out the world forum managing director tells cnbc the economic outlook remains cloudy. >> there is a split down the middle in those predicting recession at 45% and the 45% predicting no recession. we really are in the midst of

the deeply uncertain moment. we just got the uk april manufacturing pmi crossing the wires. it is interesting. we have a more than 1 point beat on the final manufacturing pmi 47.8 still in contraction territory the flash at 46.6. a full point higher than expected in terms of the detail here, we are seeing according to s&p global market that output and new orders contracted as manufacturers felt uncertainty and stocking and tightening cost control. demand will need to pick up to war endrant increase in product. risk is skewed to the downside >> it is down beat although the

final number or revised number is higher than we thought and still worth pointing out it is at a three-month low and still lower from march 47.9 in march. 47.8 in april. a lot of issues ahead. one thing on the positive side is looking forward, i think, this is interesting. s&p global set the goal of future production hit the highest in february of last year with 61% of factories expecting output to rise that is a forward looking indicator. when we talk about the pmi and eurozone and uk, it has been a huge disparity with what is happening with the manufacturing side of things where actually activity has been holding up if the forward looking indicators are true, then we could be in for some sort of rebound in manufacturing later on in the year again, many are saying we are in

the cusp of recession. to steve's point earlier, we are looking at this through the lens of recession which hasn't hit yet. >> with mike bell saying the expectation is the uk is in rough shape and recession is on the horizon. one economy which is holding up well is the housing market we are seeing uk home builders catch a strong bid this morning. we got uk house price data as i mentioned with nationwide data which came out with price increased 0.5% last month. analysts were expecting 0.4% contraction. mike bell's word of warning was there aren't a lot of transactions taking place in the uk to take this house price data with a grain of salt and we are seeing a strong bid for the uk construction names >> you have to also again,

factor in the interest rate hike in the bank of england another is expected tnext week. that is impacting people's spending if the mortgages are tripling a year ago, then it all eats into the purses and one reason why there is so much of an issue on the worker front which ties in the next segment the world economic forum with the changing face of the jobs market and industrial policy in focus. let's head out to steve. >> i'm enjoying the conversation about the home market in the uk. i concur elsewhere, 69 million new jobs created by 2027, but, and this is the sobering stat, 83 million eliminated in the same forum according to the world economic forum. supply chain shifts are expected

to create new opportunities while technology advancements will have a positive and negative impact on future roles. we sat down with the world economic forum managing director and spoke about the changing face of the global work force. >> we like to do the surveys and work with chief economists or resource officers is because these are the people at the front lines of understanding where things are going and what is really interesting with the chief economist outlook is there a complete split down the middle in those predicting recession at 45% and the 45% predicting no recession. we really are in the midst of the deeply uncertain moment where even the people that are at the frontlines of trying to decide what to make of the economic data are very much split secrplit equally of what happens next. >> in terms of the battle of inflation, do the chief economists think we have seen

the worst of it and ultimately we are going to see the numbers come down because that is another factor in your jobs story. input costs have gone up so much and some companies will be laying off because they don't want to pay the higher costs where are your chief economists on inflation >> we are seeing rising concern that inflation will stay quite high there is still a fairly -- majority of chief economists are expe expecting inflation to stay high in europe and to stay high in the u.s. the only outlier is in china where it is expected to stay low in the next few months ahead one reason this is feeding into this is most economists are expecting central banks will have to play a delicate dance between wanting to bring down inflation further and financial stability concerns that have risen the last few months. they are expecting this tradeoff

to get worse in fact, 76% expect the tradeoff to get worse and consequently, 75% will expect inflation to stay high or not move fast enough to bring it down. >> to tie up the discussion already, and my concern is central banks and policymakers are using all of the capital to mitigate the cost of living crisis to save the banks and make sure there is not a form of debt crisis rather than spending the money which, let's face it, there is not infinite quantities available and rather than spend on green and future proofing the work force with education. the issue is the former rather than the latter. >> there is a tremendous amount of spending with the green transition it advanced economies in the way we have the not seen in the last

few decades. there is more spending happening. it is more directed toward national security goals and geopolitical conflicts it is meant to try to drive forward the innovation to help mitigate the climate crisis of the on the one hand, that is all very good. the jury is out if that drives the innovation and creates more geopolitical fault lines on the second point, it is clear a similar level of investment is not happening in developing human capital. that is what will leave people behind pause tbecause they will have the green skills for the rising green jobs or the skills in the sectors getting the same investment, but big job creation in the future. agriculture or other areas of growth >> i thought it was a sobering report there isn't just going to be a one-way track on great

technology and a.i. will create loads of jobs. it is important to see what a measured report it is. how is it affected how will it affect global supply chains or employment trends change what about structure changes to trade? i asked about those issues with mark gilbert with boston consulting group good morning, mark >> good morning. >> we were going to talk about supply chains. a lot of people are looking at the supply chains disruption and saying this is short-term. we will get back to normal there may be cyclical changes, but also big structural stuff going with the global basis. that is something you have been addressing. >> we looked the at the next dee two things emerged we are at the inflection point global trade >> that is the first time in 25 years, isn't it?

>> call it 40. economic growth has always been less than trade growth and we predict a switch to that that is insight number one the second insight is we are seeing a trade shift taking place in three main corridors. the first is unfortunate which deals with ukraine it is a crisis a real shift russia west. russia is still trading, but trading with other nations it is impacting energy and commodities. the second of the corridor which is moving is pre-ukraine that is the china trade dynamic. we foresee the next decade $100 billion less trade between the u.s. and china it is not that significant it is not growth it is a shift over time. the last one which is quite significant is the $1 trillion of in and out flows from southeast asia that is a major change this will lead to much less

east/west as we have known the world and more north/south and south/south trade. >> let's get back to the gdp now out performing global trade growth as well what is the significance of that change of something that happened for 40 years. for 40 years, trade has been growing at greater rate than gdp. that is reversing. >> the main adjustment is china is trying to become more self sufficient as china continues to grow and growing slowly, it will be more self sufficient and less dependent on global trade. the other is europe. europe is thougnot growing as fs it used to that will impact trade. >> and china is trying to become more self sufficient the second question within that, i hear what you are saying about u.s. and china trade

i her ard this for a long time the research i have been doing says china and u.s. trade is as good as ever it hasn't declined despite the decade of various administrations having problems with china and vice versa. >> i agree, steve. china is not about to stop trading. the trade between two nations is significant and substantial. it will not disappear. it has been years in the making and stay for years to come it is not an instant i turn off the valve. having said that, enterprises, american or european, they are tying to figure out what to do with china we see things evolving i'm doing china for china and then i'll source and supply to china. and the middle ground. i'll do china plus one everybody is trying to figure out what to do no one is leaving china. >> people are looking to

diversify the supply chains. we talked about the philippines and vietnam and a host of countries. south korea as well. you mentioned southeast asia could this be a period where the indian growth story and we know they don't have the same problems the chinese and the western nations have with a growing population where the chinese have more western demographic similarities with problems from historic policies. is this a period where viewers need to focus on the opportunities in india and southeast asia >> in our view, we distinguish and we see movement afoot.appar. they are trading with the chinese and bangladesh that is southeast asia using an

example of textile and apparel india is poised to capture much of this should they move intoca. what are they not doing? >> i don't think they have the infrastructure at the same rate as china i was there ten days ago it is amazing the last decade. what took six hours, took four hours in travel time india has comine an long way. they continue to benefit if they build out infrastructure. >> mark, the other trend you identified is what is going on with the european war and what it means for russia. what are the conclusions on that front? >> my biggest conclusion is germany is so resilient. we expect major effect over the

winter fine the weather wasn't as cold as we expected germany stood up reduced consumption and got lng. they survived. it is impressive the resiliency of the german economy and workplac workplace. >> we have to leave it there you are a person who would say i would never get on a plane we are happy you are traveling and talking to you mark gilbert managing director of boston consulting group we have more guests coming up here on cnbc throughout the day. we will speak to more guests from the world economic forum growth summit. the international labor organization and the member of parliament to talk about the german resilience.

let's go back to julianna who is talking about the may day protests. we are, steve. thank you for that interview i returned from paris. it was quiet until sunday. yesterday is where the action was kicked off 800,000 people in france took part in union demonstrations to mark may day protesting the macron's move to increase the retirement age from 62 to 64 protesters shattered windows and doors after demonstrators smashed bank windows and other property. speaking of, fitch downgraded the france credit rating to aa citing civil unrest. this could limit the reform agenda and lead to more difficult policies. coming up on the program,

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welcome back to "street signs. let's get a check of the european market. a mixed bag here patches of green and red on the board. the real standouts are banks this morning and uk home builder. both parts of the market seeing strong demand. ftse 100 crossing into positive territory. ftse mib up .25% swiss market up 0.3% this, of course, the first day of trade this week with all of europe on holiday yesterday. including the uk for the labor day holiday. turning to fx markets, the picture for currencies the fed and ecb coming into focus with rba in focus today already. the euro is holding fairly steady against the greenback hovering 109.810

sterling trading lower against the dollar fairly mixed picture with currencies similar to equities. in bond markets, we saw pretty big moves in rates yesterday to recap, 10-year treasury rose 15 basis points yesterday. 2-year treasury rose 13 basis points a sell off in rates. now this morning, the u.s. 10-year treasury is trading 3.52% as investors await the decision from the federal reserve. joumanna. another issue in the u.s., the treasury secretary janet yellen warns the u.s. could fail to pay the debts as soon as june 1st. this if congress doesn't raise the debt ceiling yellen says the treasury moved up the date to lower than expected tax receipts. brie jackson of nbc news is joining us now

brie, what hope is the senate and congreshouse to come to agrt >> reporter: joumanna, this is something they have to hammer out soon the deadline is earlier than expected forcing the lawmakers and white house to speed up talks which were at a standstill janet yellen delivered that news on monday that the deadline could be as soon as june 1st that led president biden to invite the congressional leaders to the white house for a may 9th meeting. so far, the biden administration and top republicans failed to see eye to eye on raising the debt ceiling house republicans narrowly passed the bill last week that would do so, but included government spending cuts top democrats have said that measure stands no chance in passing the senate here we are now.

president biden during that may 9th invite which was extended to the top congressional leaders were told that congress must take action to avoid a default without any conditions and adjust government spending down the road. >> brie, how are congressional leaders likely to come to a resolution here? what concessions could we see made to avoid a crisis come june 1st. >> reporter: well, we heard both sides say they don't want a default. we heard that from republicans and we heard that from democrats. it comes down to where the compromise comes thfrom we heard about the budget plan in the house they need to act fast. we have yet to hear from speaker mccarthy he is on an overseas trip.

we have yet to hear if he accepted that may 9th invitation to go to the white house both sides want to avoid a government default >> brie, thank you for bringing us that coverage now it is a big week for markets as joumanna and i hhave discussed throughout the program. ecb and the fed has been detailed, but earnings from apple which is due to report this week and a number of carmakers are reporting in europe airbus and airline carriers and lyft and uber. for me, apple is a big one carmakers fascinating in the wake of of tesla results. >> in the wake of renault reporting last week and having a clear impact not just in the

u.s., but european carmakers as well we had three u.s. lenders fail and orithe bailout in europe. you had earnings recession you had growth on growth with the numbers lower than expected, but the stock market is sitting close to 15-month high it is incredible how resilient the stock market has been. >> you have to wonder what will drive the next leg of action in markets. what will drive markets lower? we have had a number of bad news surprises and yet, as you say, equity markets have been incredibly resilient perhaps it is because of the lag. that is what we discussed with mike bell. the monetary the policy and lag is part of what we have not seen

the worst case materialize let's check on the u.s. futures. the markets were open yesterday although europe was closed we saw an uninspiring session. s&p and nasdaq and dow slipping slightly similar in terms of the sentiment to what we saw yesterday. no doubt, investors are to some extent waiting for the ecb. >> i'm waiting for the cpi data coming out stay tuned for that. we will break it out for you on "worldwide exchange. i'm joumanna bercetche >> i'm julianna tatelbaum. thank you for watching "street signs.

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it is 5:00 a.m. here at cnbc global headquarters. here is the "five@5. the federal reserve kicks off the policy meeting today and they shift back to policy playbook. there is more than rate risk wall street adding a debt ceiling deadline to the wall of worry. and a.i. strikes twice in two big ways one of which is sending a stock down nearly 30% in the pre-market the name to watch. and tracking the