to be on to see it shine. that's all. ♪ good morning welcome to "street signs." i'm joumanna bercetche >> i'm julianna tatelbaum and these are your headlines >> u.s. futures turn higher as the tea leaves are moving higher on the futures we are going to be speaking to the chancellor jeremy hunt in a few minutes. richemont looking to

comeback with a special dividend and fresh buyback. shares in pacwest plunge 20% after the lender reveals a 20% drop in deposits in may. it is exploring options. and elon musk claims he found twitter's ceo with her starting in weeks. proclaiming an nbc universal executive is taking the reins. welcome. it has been a busy 24 hours for the uk economy let's start with the data that came out this morning. the british economy has a 0.1% gain with growth with industrial action in march. this is and ever a-- this is afe

policy report. we will speak with jeremy hunt in a few minutes let's go back to the action yesterday. the bank of england raised interest rates by 25 basis points to 4.5% and warned of more to come as it revised the short-term inflation forecast higher a 7-2 majority on the committee voted to take the country's borrowing cost to the highest level in almost 15 years and vowed to stay the course with the central bank saying it will not hit the 2% target until 2025 despite raising rates, governor andrew bailey does not expect the bank of england to go into recession in england

he warned of the forecast. >> we h upgraded our growth forecast change is one of the biggest upgrades we have done. the level is still quite low the reasons for the upgrade, lower energy prices feeding through. that's not very helpful. fiscal policy. we incorporated that budget since last forecast which is providing more support and the global economy is providing more support. china, for instance, i would point there with the end of the zero covid policy which was less destructive. i think fourth and finally, i would say the uk economy is more resilient and poignant that's good. >> that was part of my conversation with the bank of england governor andrew bailey full interview online.

julianna, i think there were a couple of things that stood out to me yesterday now we had time for the information to digest. the reaction from the community is this is neutral with a slightly hawkish bias. the reason hawkish bias exists is they are keeping the door open for monetary tightening should pressures exist stressing data dependedependency the markets think they have one or two more hikes left in them if you look at the wage picture, there certainly is a strong justification for them to tighten. >> you made the point yesterday straightaway how significant the upgrades to growth and inflation forecasts were the greatest revisions we have seen from the bank of england and i wonder to what extent the

market cares given how wrong they've been >> let us get out to martin in niigata at the g7 summit martin, great to see you >> reporter: good morning, joumanna and guys. that's right here at the g7 finance leaders continues. the gdp drop came in at plus 0.1% we have jeremy hunt taking part in the meetings here the uk chancellor and he joins us now chancellor, bgreat to see you. >> pleasure, martin. >> pleasure is ours as well. reaction to the 0.1% gdp print which dropped two hours ago. is that good enough for you to say yes, the uk is back? >> i think the uk is back and

those are numbers that no one would have predicted three months ago these are much higher growth projections. the governor of the bank of england said part of the reason was the policies i've introduced and rishi sunak's government introduced in the last few months which restored public stability to public finances and started to tackle the issues we face alongside labor supply. i think we are aware there is still a long way to go we still have inflation that is too high growth is still not as high as we would like it to be when i talked to my fellow finance ministers, we talk about the same thing labor supply and productivity and increase long-term growth rates to pay for the increasing number of things taxpayers want governments to do. >> it has been described as

anemic is that fair >> i think growth is low across all advanced countries we had a once in a century pandemic and energy price shock that's the biggest since the 1970s. everyone is trying to absorb that i think we all believe, certainly we in the uk believe, that the most important thing we need to do is focus on getting inflation down once inflation is down and you have stability , you can start o get growth up. consumers don't have to worry about shopping bills and businesses are happy to invest and you credit ate a stable environment. >> your prime minister rishi sunak promised to have 10-ish on inflation to where it was by the end of the year. we'll get to that in a bit bank of england. andrew bailey and members raised

the rate to 4.5% given the print a few hours ago, was that the right thing to do >> yes we support them in doing that. what we need to do is to deal with the fundamental instability in the economy that's caused by inflation over 10% like many other countries, we have food inflation at 19% we need to bring those numbers down then the growth will be up. >> the driver of inflation in the uk >> one of the drivers. energy prices in the last year has been a significant driver. we need to get inflation down. bank of england is focused on that as the government, we have our part to play, too, by making sure we get borrowing under control and our public finances add up which reduces inflationary pressures >> chancellor, were you in d.c. a month ago and much print has

been made from that visit. there seems to be a running battle with yourself and the imf there. a lot more pessimistic the folks there think the uk is the slowest or weakest industrialized economy on the planet this year that the uk kmeeconomy is likelo shrink you said i will prove them wrong. what is the evidence >> i think the evidence is today's figures. i think lots of people were expecting the uk economy to contract instead, it has grown a little grown over the quarter i believe then and i believe now the uk will be resilient this year i would say in the imf figures from 2025, the uk is predicted for the three years that follow to grow faster than germany, france, italy. other big european countries

last year, we were the fastest growing in the g7. the figures is you take any snapshot and tell any story. the big picture is one that is encouraging for the uk. >> you talked about how food is one of the reasons why inflation is still eased a bit, but problematic for the uk the issue of wage growth and wa wages. we have seen widespread industrial action strikes in the uk on the one hand, you can sort of understand where they're coming from they want a wage that keeps up with the cost of living. the conundrum is and it is a vicious cycle if you end up giving it to them, it drives up inflation. if not, they strike and that affects growth what is the way out of the cycle? >> we totally understand why people are angry when they see their cost of weekly shop go up as much as it has.

we try very hard to resolve the strikes. we managed to get the support of the major unions that does resolve it one thing we won't do is agree to pay to fuel inflation because we are making the situation worse. that has made it a difficult period for industrial relations. what i would say to people looking at the uk from overseas, here i am in japan and i talk to japanese businesses and they are excited about the future of the uk economy because we are going to be europe's silicon valley. we have the largest life science business in europe and largest technology business in europe. more unicorns than france or je germany put together we want to be europe's san francisco and l.a. all in one. we think we can get there. we have big financial services and fantastic under sector

if we can get through the difficult period now and here and now, we can get to the other side when there are fantastic and exciting opportunities. >> chancellor. it is interesting you bring up japan. in the uk, one reason why there is high wage growth and also inflation as a derivative of it is a shortage of skilled workers. it is broadening if i'm not mistaken in japan's case, they had a closed and tight labor market for a long time as you know. recently in the last five or seven years, forced by circumstances, of course, including fairly not great growth, but they have been opening the doors to foreigners, immigration. in your case, both major parties have said no that is not the way out. why is it not the way out of the inflation conundrum? >> labor supply is a big issue across all advanced economies. japan is traditionally had as

close to zero migration as they can manage we have always had a level of migration whether pre-brexit or post-brexit. we don't want to be dependent on migration. that is why my budget package so sought to remove barriers and child care to make it easier for parents to get back to work to reduce the cost of child care. we have 1 million vacancies in the uk economy we have 7 million adults of working age not in work. there is plenty of opportunity to resolve labor internally. >> do your -- does the uk birth rate support that? is that sustainable? >> the demographic we have is a little bit more favorable than other countries. yes, that creates pressures.

i think there is some way to go before we have to have the debates they have been having in japan. i would say that no economy wants to waste the talent of millions of people who could be in the labor market, but prevented to with barriers beyond their control >> last question you already been voted in terms of reaction to the boe rate hike to 4.5%. it is good the boe now thinks the uk economy doesn't slip into recession. it is tough for people with mortgages. one reason inflation is still high and has and is expected to go higher is that a lot of people with mortgages are in fixed mortgages and the actual pass-through or effect of aggressive hikes by the boe have not been felt yet. with that, how do you intend to have inflation by the end of the

year to 5% or so >> that's what the bank of england forecast suggests. you are right, because of fixed rate mortgages, there is a delay in the pass-through of time. there will be an effect because every month you have to renew your fixed-rate mortgage you get a dampiening effect we have economist whos who havee job which is to bring down inflation to the target 2% level. we need to support them to do a their job. >> chancellor, thank you i appreciate your time >> thank you, martin >> reporter: the chancellor of the uk at the g7 back to you. >> martin, it is great to have you on our air time and so much is going on in the uk and you

speaking with the chancellor interesting comments out of the chancellor especially on back of the bank of england interest rate decision obviously, he is supportive of the fact that the bank of england is hiking rates to tame inflation. reiterating the number one goal is to get inflation down the chancellor's target was to bring inflation down to 5% to have that by the end of the year and if you look at the latest projections, they have inflation reaching or averaging 5% by the end of the year. >> it was a fascinating conversation and hear his take on the bank of england decision which he is supportive it. the industrial action question was interesting of martin and the balance of trying to apiece those striking and seeking wage increases and trying to satisfy them with the fact you don't want to contribute necessarily to wage pressure and in turn inflation. jeremy hunt is still trying to find that balance. you don't want to fuel inflation

by giving in to the wage demands. on the other hand, the negative economic impact of the strikes and the pause of business in whatever sector. >> that was the question that i posed in the press conference. >> of course >> i said you have pay growth running 7% year on year. it is way too high to be consistent with the 2% price stability mandate. how do you bring that down without causing a huge spike in unemployment or recession? the economist from the bank of england said the factors will come down because there were shocks playing out they expect to start seeing the one-off effects subside in the coming months. then we get a real indicator for persistent of the inflation pressures and that is when the tradeoffs take place. >> he thought it was a good

question >> display his economic knowledge. marty also caught up with the european commissioner and asked if rising rates increased the risk of recession. >> we have very strong core inflation in europe. at the same time, we were concerned about the possibility to have recession in the european economy this is not the case it has not been the case in the first quarter. we had a moderate growth i would present next monday our economic forecast for the european union and we will have moderate growth. not recession. this, i think, is good news. we will have to combine monetary policy and fiscal policy to bring down inflation without killing growth coming up on the program, european corporates line up a record quarter

arabile will join us and go through the numbers after this break.

welcome back to "street

signs. it's a month since the earnings season began after tesco warned profits will stall we have arabile joining us to take a look at the winners and losers so far. >> julianna, it has been a month that has seen earnings numbers come to the floor and painted an interesting picture. 2/3 of the way through the earnings season in the first quarter and according to morgan stanley, we may have seen the biggest beat in earnings in 15 years. that is off resilient numbers and resilient corporates in the entire time. really facing up to what has been a difficult time particularly the energy crisis and high interest rates, including higher inflation, of course, taking a bit of a stance interesting to note. 4 4 41% of corporates have beaten in the first quarter. that is big p compared to 25% in

fourth quarter of 2022 it doesn't compare to the 59% average beat on estimates by corporates in the first three months of 2022 that is just the top line. on the bottom line, things like earnings per share 41% of corporates beaten estimates. if that number continues, it will mean it is the biggest beat on the earnings estimates at least since 2007 here is the style and size of entities that have beaten estimates. large cap stocks seem to be doing fairly well. 50%. more than half of the large cap stocks beating estimates between value and growth not much to really differ. which sectors have played the game really well thus far? the gains have been relatively broad based. semiconductors and the likes of i.t. and consumer items.

those have done fairly well. so, too, have financial services for the banking stocks and the like with the banking crisis in march, they have actually managed to do fairly well. you see the msi in europe ade flat this earnings season because you haven't gotten bang for your buck beaten the est estimates. the share price is not moving higher a .50% gain in the financial services in the earnings period. you look at the lolosers and winners. credit suisse and it follows on from the banking saga in march the other side of the scale with the others not doing well. tell telecoms are 4% weaker here. if you look at the losers on that front swiss comm sitting down

so, contrasting fortunes for corporates in the earnings season guys >> arabile, thank you for the break down earnings season continues and richemont is seeing shares at the top of the stoxx 600 after sales hit an all-time high at 19%. you see shares up 7% this morning. it benefitted from the china reopening and strong demand from chinese consumers for jewelry and watches. >> it is always the case with the swiss luxury firms strong demand out of china elsewhere, reporting 2.16 billion euro for allianz after the u.s. fund scandal takeover last year. the german insurance firm announced a buyback program of 1.5 billion euro the cfo told cnbc the company is

benefitting from higher flowsst. >> people are moving out of bank depositing to the managers that willmanagement. there will be more stability in the rate environment we are not in a stable situation. there is more stability. that has been the main driver of the flows come in. it is also important and we are positioned to offer solutions to our customers. depending on the situation, we can offer different products if there is a flight to quality, we can benefit out of that situation. in the banking space, soc gen rose to 8 million euro. the french bank says 2023 is a

transition year with the margin dropping one-fifth retail banking fell 11% in the quarter. and pacwest reveals a 10% drop of deposits in the month of may. we will have the latest after this break

welcome back to "street signs. i'm julianna tatelbaum. >> and i'm joumanna bercetche and these are your headlines. >> uk economy shrank in march, but has a 0.1% gain for the quarter. chancellor jeremy hunt says economic stability has been restored >> i think the uk is back and those are numbers that no one would predicted three months ago. these are much higher growth projections. the governor of the bank of england said part of the reason was the policies i've introduced european equities gain and u.s. futures turn higher as investors read the tea leaves as

the presidential meeting is delayed into next week. and richemont sales increase as the chinese demand increases. and elon musk claimis he found twitter's ceo suggesting he found a cnbc universal executive taking the reins fr the fdic will charge america's biggest banks almost $16 billion in extra fees the next two-y years to recover loss from march under the proposal, 110 banks from the 4,000 it insures will be called to a special assessment lenders will pay 95% of the total cost with fees calculated on the basis of the uninsured

deposits pacwest plunged 20% in thursday trade after the bank said outflows resumed in may that is the shift from the statement this month that it wasn't experiencing out of the ordinary deposit flows this moves the share price losses to 80% for the year pacwest was able to fund the withdrawals with the liquidity comepared to $5.2 billion on the books. martin soong caught up with the chair of the stability board on the sidelines of the g7 meeting in niigata. >> we have to rethink the liquidity requirements that the banks will have to fulfill because the deposits need to be safe they need to be safe regardless whether they are in the system or relevant institution or second tier bank or whether they are with the money market fund that should be our level of

aspiration and that should be the work that the international community together with the u.s. authorities will have to take. >> lori mauer is here with us to talk about the banking sector. renewed focus on the u.s. regional lenders yesterday, pacwest shares plunging in your view, if we were to see the collapse of another regional lender stateside, would it have significant knock-on effects for the european banking system? >> actually, i don't think it necessarily would. over the recent period where there's been huge volatility in the regionals in the u.s. as reflected in the large rating actions that we took as well, you know, we have been taking a close look at the european banks and what is different about the uk and european banks and

there's a lot that's different of tdifferent. the reason we don't through there is contagion from this is a robust balance sheet generally here higher levels of liquidity and unrealized losses flowing through capital and the profit and loss statements. to the extent that european banks have hold-to-maturity securities means they are l largely hedged this is an asset and liability issue and you have higher level of mature deposits across the uk and european systems with a few exceptions and that makes a difference to the stability of the funding. >> very reassuring with the uk and european banking systems zeroing in on the u.s. and the risks, cre exposure. how concerning is that to you as

a growing risk given higher interest rates and the change in dynamics of the commercial real estate sector and the wake of covid and the cre sector is concentrated in the small lenders? >> the cre issue is a complex issue. i think we fundamentally believe the situation now is different than it was before the global financial crisis in terms of the uk and european banks which are the ones i follow, the concentrations are lower than you see among the u.s. banks they would attract capital assessments if they had high concentrations and they also learned from the previous crisis and they have been mindful of the weaker subsectors with cre

before covid then, you know, a number of sectors like hotels and things like this never fully recovered. so, i think the issue is more one of, you know, within the financial sector, where is the exposure it is not necessarily, at least in the uk and europe, in the banks this time. there are other investors and equity holders, et cetera, bearing more of the risk the u.s. is somewhat different because there are significant concentrations among many of the regionals. it is somewhat of a different situation. >> for years sitting around the desk comparing european banks to the u.s. one issue is european banks tend to be more regulated than u.s. banks. this is the situation where actually the regulation has

worked to the european banks' advantage. do you think what has happened with the u.s. regional banks can be pointed back to the supervisory oversight because they failed to account for what higher interest rates will do to the portfolios >> sure. we can go back to what we were talking about earlier. it is very clear and i think it has been highlighted by everything going on the last month or so that uk and european banks do not want to take interest rate risk the way they managed their funding and liquidity is very different. you know, in addition to that, is the issue about concentration. concentration in sectors and single names, et cetera. the regulation penalizes them if they take exposure the risk appetites constrain the way they operate the business model. i think it is important to

remember that within the u.s., it is the smaller banks that were not suggest to the framework. the large money center banks were slightly different implementation than europe nevertheless, they don't run the level of risk we see in european legislation. >> you have the large banks bailing out the smaller banks with the special assessment fees by the fdic. they are happy to do it because they don't want financial contagion. how long will they have the appetite to keep insuring or subsidizing smaller competitors? >> this is an interesting era. we do expect there will be regulation coming given the deficiencies that have been highlighted in terms of asset

liability management and concentration risk management et cetera for the banks which haven' regulation it is important when we look at jpmorgan chase's acquisition of first republic in normal businesses usual times, they would not have been allowed to do that because they are already so big this is, right now, about financial stability. i think what we're waiting to see is what regulation is proposed and what the timeframe will be for implementing it. it will have an impact on the business model of these smaller banks and it gets back to the profitability point. it will have an impact on profit profitability. >> laurie, great to chat with you. more to ask you. pleasure to have you on the show laurie mayer a second debt ceiling meeting with president biden and congressional leaders originally

set for today has been postponed until next week ago to nbc the nbc report claimed a delay is a positive move u.s. treasury secretary janet yellen reportedly plans to hold talks with topple wall street bankers in washington next week. kevin mccarthy continues to downplay the prospect of a breakthrough >> the staff met the last two days we think it is productive for the staff to meet again. i have not seen a seriousness of the white house that they want a deal they want to default more than they want a deal all right. let's get a check on the markets trading today. you can see we are ending the final trading day of the week up .60%. there has been so much to digest in the last week with central bank meeting and inflation numbers and earnings season. the tilt today for the stoxx 600

is leaning into positive territory despite the issues with the u.s. yesterday. let's switch to see how the indices are faring all in the green dax up .60%. the cac 40 is up 1%. we have reporting today with a beat on the bottom line profit numbers from the bank capping out the banks earnings season. ftse 100 in the uk up 1% bank of england hiked interest rates yesterday to keep the door open for further interest rate hikes. we had gdp numbers showing the uk has grown 0.1% in the first three months of the year again, that's tonot negative switching over to sectors. real estate continues to lag down .80%. some issues cropping up in

swedish real estate markets. that has been an issue that potentially could have contagion effects with the continent autos coming under selling pressure down .40% at the top is luxury up 1.4% richemont reaching an all-time high today financial services also putting in a good session today. joumanna, you and i have been looking forward to the next segment all week euro vision is taking over liverpool as they prepare for the grand final tomorrow we will have the latest next

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welcome back to the program. in terms of elections, we have turkey coming into forcus. it is heading into parliamentary elections on sunday. recep tayyip erdogan faces his toughest challenge yet with the

republican leaders party with a slight lead. let's get a check of the turkish lira you see that against the dollar. the lira has been on a significant downward trajectory. today, we are seeing not a lot of movement. up .30% of the dollar against the lira this story hits home for me. peloton is recall going millions of the exercise bikes after defect was blamed for dozens of injuries blaine alexander has the story >> reporter: it is one of the country's popular home workout brands peloton issuing a recall of the original bike sold in the u.s. between january of 2018 and may of 2023. the issue? the seat post which the company says can break unexpectedly during use of the more than 2.1 million

bikes the sold, it received 35% of posts breaking and a wrist fracture and lacerations and bruises. >> the way i hit the ground, i landed on my wrist >> reporter: daniel was doing a cool down ride and the seat gave way of the. >> there was no sign on the bike that something was wrong it was just one minute you are sitting on the bike and next, on the floor. >> if people have the bikes? >> stop using it right away. you don't want this to happen. >> reporter: if you have a recalled bike, peloton says it is an easy fix they will mail another part free of charge and replace it yourself it is just the latest uphill climb for the already embattled brand. peloton stock dropped 9% thursday with the third recall in four years. the tread machine was recalled after a child was pulled

underneath and died. the company was slowing production due to slowing demand. >> there are 2.2 million recalled a popular exercise bike. pay attention to the recall. >> reporter: blayne alexander, nbc news >> i'm sorry to hear it. >> i like my peloton so does will, our director we talk about our personal records. he is way ahead of me in terms of overall fitness he is saying that in my ear. it is worrying peloton stock continues to come under pressure they had one issue after the next concerns about safety. i am a fan i find it convenient of course, we all have to be mindful of what this may mean in terms of health and safety i'm going to look into it. >> you should. you can resolve it quickly if you decide to call in and take action on the recall let's move on to tesla which

is trading higher this morning that's pre-market up 1.3%. this after elon musk announced appointing a new ceo and she will start in six weeks. the new york times and wall street journal cite anonymous sources say nbc universuniversa executive is in talks with the position the current ceo is his dog >> that explains a lot of decision making. i wonder about the new ceo is how much pouwer will she have after the changes musk introduced he cut 90% of the work force already. he introduced the twitter blue subscription removed legacy blue. it makes for a very different

atmosphere i traditionally use twitter, but it feels there is a different vibe on the platform these days. i think a lot of people feel empowered to say whatever they want and it can be abrabrasive >> brian sullivan, our colleague in the u.s., did a segment on this news story. one guest on his show said elon musk has a grasp of the tech, but not necessarily a grasp of the advertising side of things perhaps that is connected to your point with the vibe and atmosphere on twitter has cha cha changed since he has taken over. perhaps she will play a role in making it a place that is attractive to people who have fallen out of love with it. >> that is the appeal with her advertising background the other, of course, is for anyone who is a tesla investor

or shareholder they may be encouraged that elon musk may go back to the original day job. this segment is here liverpool is prepare for the euro vision song contest grand final with thousands expected at the city's arena and sold out event. sweden and finland are hotly contested for the competition. karen has been in liverpool and joins us on set with more. karen, we want to talk about so many pieces to the euro vision conversation for me, my first year watching i'm excited. let me talk about the video you put together the crux is looking at the cost of the competition joumanna was at the bank of england with the cost of living and last week was the coronation

and ex-ttra cost there and now this week with euro vision. >> it is outlandish outfits and so much more to it the uk is hosting on behalf of ukraine. soaring inflation has caused countries to withdrawal from the contest. macedonia and montenegro it is not the best time for the uk to spend money on this. 25 million pounds or $30 million to host this contest that is from sources including the government and bbc which is under pressure facing cuts you know, some are hoping it could provide a much-needed boost to the economy we head up to liverpool and spoke to the city authorities and local businesses to see how they are preparing for the event. >> we're from ukraine. we came to cheer >> euro vision is the best thing

in the world. >> liverpool is worth 47% of the economy. this isn't chicken feed. this is people's jobs. >> they say the long-term economic benefit for five years is too much of 50 million pounds we know the short-term is 25 million pounds. >> people speak of the ripple effect we saw this in 2008. the city is talking about the boost in numbers similar to 2008 which was transformative it is hard to put a metric >> james bates was telling me he expects a 50% up parttick in customers. he hopes that enduring after the party. the competition alongside the coronation and the three bank holidays this month could provide 1 billion pound boost to the uk economy that could be needed

>> definitely much-needed. when you put it that way, may has been a massive party it is a shame the weather isn't holding up. >> speaking to the people in liverpool and those travels from australia are enjoying it. >> there has been controversy overnight. the first thing i said to julianna is volodymyr zelenskyy has been banned from addressing the euro vision this year because the broadcasting >> the union, organizers of the event, maintain it is a non-political event. they don't want the distractions i think, as we are aware, it has been political that is true when we see the uk performance over the years spoken to academic of euro vision, which is a thing, he told me so often this contest is about the political zeitgeist in

europe maybe the sentiments are changing we saw last year the uk managed to come second maybe she will stand a chance. >> it is a tpolitical event, but you see it is always political and uk is relying on ireland ireland looks to uk. you have greece and cyprus you have the political blocks. you have so much to learn and look forward to. >> so much to find out about the contest. look at the full package which has gotten entertaining with the people to go watch >> i can't wait. >> we will debrief on monday >> sequence. anything cheescheesy i'm all for it >> karen, thank you.

one final check on the european markets we are trading higher across the board. the strongest gains seen in italy. ftse mib up 1% cac 40 is strong this morning. u.s. futures here is the picture for wall street green across the board europe trading in line with the u.s. dow jones industrial average looking to gain 140 points at open s&p and nasdaq looking to open higher debt ceiling meeting scheduled today has been postponed until next week. that debate is fresh on investors minds. that is it for the show. i'm julianna tatelbaum >> i'm joumanna bercetche. "worldwide exchange" is coming up next. have a great weekend

this week is your chance to try any subway footlong for free. like the subway series menu. just buy any footlong in the app, and get one free. everyone loves free stuff chuck. can we get peyton a footlong? get it before it's gone. on the subway app.

it is 5:00 a.m. here at cnbc global headquarters. here is your "five@5." we begin with stocks on a high note as the investors try to overlook the wall of worry futures are in the green. not done yet a trifecta of fed speakers giving a point of concern with the historic hiking cycle. debt limit meeting delayed janet yellen looks to take her warnings straight to the wall street. the regional bank reckoning appearing far from over after a brutal