: i miss you so much, i miss all of you, and i hope you guys miss me a little bit. that's all for this edition of "dateline." i'm craig melvin. thank you for watching. good morning and welcome to "street signs. i'm joumanna bercetche. >> i'm julianna tatelbaum. these are your headlines. ecb dials down with chief economist phillip layne and governor lynch leaving the door open for the summer. >> it's going to be a mix of all of those there's no shorthand, no shortcuts. >> the core has been quite stable it's around 5% on a yearly

basis. we need to see core going down before considering. european markets jump in early trade where on wall street stronger confidence lays investor fears of economic slowdown. u.s. futures point toward a muted open on wall street with attention turning to the fed's bank stress test results first it was rocked by a series of regional collapses earlier this year. and u.s. reportedly considers further curbs to china, specifically on ai, amid growing concerns about the technology a warm welcome to "street signs," everybody. we're keeping our eyes on sentra

beautiful portugal layne spoke to aany ta on central bank taking place in portugal and said there are too many points but said the central bank is working to keep the levels for a long time to tame infl inflation lane told aannnette t he'll consider it when things go down. >> what weed my do versus some risk factors, but let me diff yent yat in many ways having lower yields five years out, ten years out is a sign of confidence that inflation is temporary we will get back to 2% in all canal of years, and once we're

back to 2% or on our way to 2%, then easing will happen. that is uncontested. i think where the market should ask questions is the timing or reversal of restrictive policy because essentially whey i'm saying to you and the general message here, we will not be back toward 2% for a couple of years. we will make good progress this year, especially for the later part of the year, but it's not going to collapse to 2% within a few months and so we will have a sustained period where rates need to remain restrictive to make sure we don't have any news talk that takes us away from 2%. that's, i think, the maturability of restrictiveness is very important. so anyone who thinks we're pricing the latest inflation number as opposed to looking at

the whole horizon of margin of policy over the next couple of years, when i look at the horizon for the next couple of years, i don't see rapid rate cuts i don't think it's appropriate that rapid rate cuts are priced in as expectation. so maybe there's a risk story we can tell you. >> would you look at the aspects of inflation >> i think in our strategy we were clear we have targets, which i think is very helpful in today's conditions to be clear that we will go for our 2% targets. it's also clear, as you know, we take a medium term view. it's not the case we need 2% every month, but we need to make sure the system is essentially whatever may move it away from 2%, we g back to 2% quite

quickly. >> that was the ecb chief speaking to anannetta. meanwhile they admitted that the ecb models did not work sufficiently well to predict today's level of inflation. >> there's something structural about the fact that the models have had a hard time capturing -- models have been calibrated ore a period, and, so, yes, we're outside the calibration. we're not going to be having another 30 years of data before so many years. actually we see more financial crisis than we can forecast and it's high and to some extent outlasting inflation

yes, in this environment, we have to give more to incoming data than we we've seen from models because models have not been performing well over the last two years >> well, it's all happened now le let's get out to annetta who's out there with another guest annetta. >> thank you so much i'm joined by the head of the bank thank you very much for joining us are we saying or hearing different voices it seems that the majority of the governing counselor is thinking it's better to hike inflation rather than kill the beast and not wait until we have more evidence. >> yes, i agree. i think that the bigger risk is to let the inflation get entrenched at an elevated level and then have to do more later

on as you say, it's better to bring it down or kill it that will bring the unemployment down a little low sneer let's talk immediate steps in july the rate hike is more or less a given september could be a pause, another rate hike. what could advocate? >> i think you need to see the data there are three sets of data that are coming before december and then decide. that's why i say we are data dependent. we can't say what we're going to do now for september given the underlying how inflation was, there's a good chance we'll have to hike also in september but let's see first the data we have three things on which we base our decisions

one of the forecasts, second is inflation data, and the third is the strength of the transmission mechanism. we look at all three and decide, but i think in this situation where the uncertainty's high, i would put more weight on the observable rather than unobservables. let's talk about the inflation air trend. they're very much depend tong tourism system would you say there's a risk we're seeing, an uptick in inflation during the summer period >> yes, that's what we're seeing now. demand is very strong,and we d see the strong service of inflation. we see the high pressure of the service sector this is also because of the very high demand for the services still. >> is that something you should look through as a central bank and treat it as so-called noise because it's a seasonal effect,

or is this something you say, okay, this also would warrant more rate hikes. >> it comes every season with tourism coming into creation, but i also think these days we're seeing higher demand pressures than we've seen in the past. >> if you look at the governing towns, i mean i get the impression that they form the majority of it is that the case >> oh, i wouldn't go into judging that, but i would say there's quite a strong degree consensus -- of consensus up until now on what to do. >> the side effects. you've already mentioned it. there might be a recession, less growth how vulnerable do you think is the eurozone economy as a whole to that elevated level of

interest rates >> i think that we can still engineer kind of a soft landing without causing deep recession or maybe even without causing a recession at all the labor market is very strong, which is good. on one hand, it doesn't help with bringing down the inflation. on the other hand, i think that the job can be done without too much damage or too much. >> another tool which you don't really touch apart from reinvesting is the balance sheet of the ecb would you be in favor of perhaps rethinking that and perhaps selling assets a bit more quicker? >> being i don't think there's a need to sell, i think we should continue to bring down the balance sheet to stop with the reinvestments. there's no need anymore to

reinvest we have to shrink the balance sheet, and this is a good tool for the time being. >> perhaps we concentrate more on the macro picture because clearly the higher interest rates, we do need time to filter through the system how much time do you think will be needed until we have the full effect of the elevated interest rate level >> what you're seeing is already that they have -- they have been a very quick pass-through of interest rates into the market interest rates for mortgages or for corporate credit they have been very quick, very efficient in terms of the credit activity we're seeing a slowdown also already, and we have to continue this is one of the main things that we have to observe in the next months is what happens with the credit growth. it is slowing down, but it should take a longer term

perspective. in the last ten years it doesn't seem that anything unusual is happening, and if you look at the momentum like three months movements, we have seen that in the last, there was even the change in the trend. so i would like to see more of what we do on the real credit activity but with the economy now slowing down, this is something that we might expect >> how much do you look also at the eurozone or outside the eurozone factors like global demand, for exam tell, or the reopening of china, which is not as forcefully as many economists had expected >> yeah, this is something that certainly affects that we do look at that we look at china as the largest economy in the gdp world, but also other things.

the inflation -- and this has been discussed here also the weather has become a more and more important factor in the energy sector and in the food sector so the risks that come from things which in a way are exogenous to our policy are, i would say, elevated, and they have to carefully monitor what is going on. >> thank you so much for your time, and have a good good day here. >> thank you very much. >> guys, we head back over to you. we'll be back in half an hour's time with an assessment as well on the outlook for economic growth with the chief economist of the oecd. >> annetta, great stuff. another brilliant interview. it's fascinating to hear what all the central ecb bankers have to say it's interesting and also into the second half of the year but do not miss the later event later today. our u.s. colleague sara eisen will be monitoring the policy with fed chair jerome powell

christine lagarde and the kazuo ufeoa, and the bang of england governor, andrew bailey. for more, check out cnbc.com. coming up on the show, european equity markets enjoying the european mounts. what's driving the move 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.

ah, these bills are crazy. she has no idea she's sitting on a goldmine. well she doesn't know that if she owns a life insurance policy of $100,000 or more she can sell all or part of it to coventry for cash. even a term policy. even a term policy? even a term policy! find out if you're sitting on a goldmine. call coventry direct today at the number on your screen, or visit coventrydirect.com.

welcome back to "street signs. markets are trading with more positive bias today. a lot of green on the board. the stoxx 600 up about half a per sen, building on some gains from the asian procession. up 1.3%. and the nasdaq rose 1.6% we had very strong data also coming out of the u.s. in the form of u.s. consumer confidence reaching the highest level since 2022 purchase of new homes rising at

a fast rate and goods rising by estimates. all of this data is dispelling the notion of an eminent recession. the positive feeling is translating to europe in the stoxx 600. in terms of the breakdown, though, let's get to the board this is what the picture is like broad-based gains. in germany, stoxx 600, up about 0.8% the focus in europe has been on the ecb central conference, which is a conference that brings together central bankers from all over the world to discuss the state of the economy, european economy, and global kmirk and one of the takeaways from the conference so far from the interviews that our colleague annetta has had is the central bank community is still very, very hawkish especially the ecb, theory still talking about more work to do

and it's going to take some years to bring inflation back to target despite that we're seeing a positive reaction in the markets today. cac 4 in france up about 0.76%. let's take a look at leadership up at the top, we've got tech. building on some of the gains from yesterday, up 0.9% there. autos also having a good sense on the flip side, basic resources dragging swhachlt remember they're very closely linked to the economic fate coming out of china. so that is one of the reasons why they've been struggle to get a sustained rally in the last couple of weeks. and retail, one of the underperformers trading around the flat line. now there are trades trading lower after germany started an

investigation into an unnamed lists real estate authority. they're investigating false accounting, market manipulation, and breach of trust having launched coordinated raid at 20 offices and apartments across europe this is the picture for european real estate companies today, german real estate companies, all trading under water at around 3%. this is the sector that's been coming under a lot of sudden pressure as of late. commercial real estate is an area of focus for the investment community. elsewhere, the usda has declined to approve a higher dose of regeneron. regeneron is working with the fda to get the drugs to patients as quickly as possible, and analysts expect it to be approved eventually. so the reaction so far has been pretty mixed

and switching to the banking story that we've been following very closely the last couple of months, that is ubs. the swiss bank is cutting half of its 45,000 strong work force in the aftermath of its emergency takeover that is according to bloomberg which says investment bank staff in new york, london, and asia are expected to be worse affected ubs had no comment when approached by cnbc. let's get a check on u.s. futures. we've got a mixed picture. no major moves indicated in either direction this follows a strong session yesterday with risk appetite returning. all three of the major indices ended higher the faang stocks performing very well the nasdaq gaining overall 1.6% yesterday, this despite mounting expectations that we are in store for higher for longer when it comes to rates. let's see what alex morris has to say, president and cio of fm

investments. he gins us around the desk great to have you with us. >> thank for having me. >> it felt like for a little while the tech trade h the tech trade and why the rebound >> well, there's two things to keep in mind one was, ai gave us a very sudden boost there was a lot of action there in a very short period of time and the markets needed that, but some of that was the stocks were depressed for some time relative to devaluation they were trading down because maybe there will be tech support on this. tech is bigger than any one export control, and if you look at where it's coming from, it's more broadly diversified, despite higher rates, despite inflation. tech is still the growth stock people are still going to buy more technology.

we're not buying more horses so inevitably the names will continue go and the rally will become more diversified. >> the problem with the growth stocks is they're just that. they're high growth stocks that are priced for tremendous kbrgrowth years out and it lowers the present value of their future earnings is that not at the case now. >> should we not associate higher rates with the high growth sector >> you're absolutely right the problem is the model they've built for years have said that and they've always struggled to keep up with demand and consumers products have continued to decrease. we're just moving numbers around on spread sheets, which by the way this company has sold to us. >> fair point. i want to go back to what you said at the beginning, which is to do with the rally itself and how the ai has been leading the

rally in the tech space. you did say the expectation is you expect there to be more diversification going forward, where and in what format >> so we've seen some tech pullback and we've seen some names to take profit namely because some of those names do need to take a breather from time to time right now the medical device space and some of the more retail and health-related properties need more air time. we think that will continue to rally, and some of the stalwart names, apple, microsoft, nvidia have pulled back some. but netflix will continue to be stronger performers. >> what do you think the risks are. you do sound pretty bullish. the story that came out over the u.s. restricting tech imports to nvidia and other artificial intelligence to chipmakers as well, would you say that's one of the major risks or some of the others you're thinking of? >> government control is all a

rick whether it be artificial intelligence technologtechnolog commodities, or otherwise. but i think the bigger risk is do we hit a fairly nasty depression-era concept, which i think is highly unlikely as long as consumers have iphones and android devices, we're going to find more ways to serve things up to them. long term, the bullishness isn't over the next week or next year. this was sort of tin vengs of the light bulb coming out. now we put ai through chat gdp and the large language models personalized it in ways we haven't seen that's not a week by week trend. that's a decade by decade trend. >> what about regency? do you see that outside of the u.s. clearly that's where it is when it comes to the tech leaders. >> right now it's sitting in the u.s. that's where the names are you can hop into a london taxi

and hear about tesla stock it is what it is, as of this morning. but from a more regional european standpoint, some of the industrial companies will absorb that and that will begin to super charge their next wave of growth, but it will come with consolidation i. is hard to sustain that sort of rally without concentrating names. when we're talking growth stocks, we're not talking thousands. we're talking dozens. >> being at the central forum, cnbc has been there speaking to various central bankers and policy makers, and one of the takeaways is the central bankers are still sounding pretty hawkish. the theme seems to be higher for longer is that coming as a surprise to markets, do you think, or is that pencilled in at this point? >> i hope not. they've been saying that for the last year. they have been paying attention. probably speaker, higher for longer, the u.s. has been set for a long time. they have hoped they would skirt by elements of inflation

they haven't but it is clear there is a need to beat inflation globally, an we are seeing the fear that inflation is sticky. the economist cover that came out isn't totally true we forget it doesn't mean prices get cheaper. it means they stop going up for so long. >> yeah. that's a conversation julianna and i have had in the past thank you so much for joining us on the show. alex morris, the president and cio of fm investments, and if you want to get involved in the discussion, you can follow us on twitter and tweet us directly. also, be sure to start your day with all of the latest market news with cnbc's news letter the daily open. you can subscribe by scanning the qr code on your screen right now. coming up on "street signs," we'll cross over to sentra where the ecb forum is well under way. stay with us we'll be back with more after this break

welcome back to "street signs. i'm joumanna bercetche. >> i'm julianna tatelbaum. these are your headlines. >> ecb policy makers dialed it down and we talked with philip lane and others leaving the doors open for future hikes during the summer. >> there's no shorthand, no real estate, no time. >> the core has been stable. it ee around 5% on a yearly basis. we need to see core going down before considering any post. >> later today don't miss today's cnbc headline panel where we'll hear from the world's top four central bankers. european markets jumping, tracking gains in asia and on real estate, but they come under pressure as police raid adler offices on investigation of false advertising and market manipulation. attention is turning to the

fed's bank tension results, the first after a surge of recent collapses earlier this year. and shares of inindividualion and others slipped after premarket trade as the u.s. is considering further restrictions or shipping ai to china. well, for a change of pace, we're off to a strong start in europe this morning. all the major regions are trading higher after the rally on wall street driving the u.s. indices higher in asia trade overnight, a bit of a mixed picture we're seeing a little bit of selling pressure in the selling sector, the only one in red in europe this morning after weak industrial profit data out of china. so that's the picture for e equities we're moving higher with all

eyes on is central ecb forum and the panel that's going to take place this afternoon remember, we did see a retreat of the green back, a pullback by 0.2% right now we're seeing steady trade in euro dollar and in the japanese yen in terms of sterling, we're seeing a bit of a pullback u.s. futures, we're looking at a muted start for wall street with that central bank panel firmly in focus. again, after the rebound on wall street yesterday that's all three of majors led by the tech-heavy nasdaq, a gain of 1.7%. the italian government has picked ecb executive board member fabio panetta as the next bank governor. his nomination still needs to be approved by the italian

president. meanwhile georgia meloni has criticized them. addressing parliament, meloni said the bank was right to find inflation but the current rate hike policy is not the right path very rare that you get government officials weighing in so a bit surprising to hear this commentation to come out of giorgia meloni today. >> so true. >> yeah. i think there are a lot of very unhappy people there is currently a shortage going on in italy right now, so they're getting to the heart of the problem and she's clearly addressing the situation, that too high of inflation is a problem for everybody. >> i knew there were price hikes. i didn't know about the shortage. the annual forum on central banking continues this week as

we've been discussing throughout the morning with inflation and high interest rates in focus cnbc has been speaking with some of the key voices on the direction of the monetary outlook for the eurozone. >> from where we are now all the way to our targets will take a couple of years, and so this is really, if you like, a phase where the original talk in terms of energy, in terms of pandemic, in many ways they're behind us, but now we're in this adjustment phase, and that adjustment phase where wages need to catch up where there's ongoing price adjustment will be a gradual process. >> we need to see the core going down that would be the question about when we would be maybe ready to pose when we would be comfortable with where the inflation s we have a 2% objective. now, you know, if it's going down and it's 2.3, i guess i

would be fine with that. >> it's going down it ee something we need to acknowledge. we look at the strength of the labor market and for what inflation meant for workers and firms in the last couple of years. >> as you can see it's been a busy couple of days for annetta who joins us once again with another special guest. annetta. >> yes, thank you very much. thank you very much for talking to us. we were just hearing several voices from board members and policy makers. it's kind of drawing the picture that the ecb tends to draw on caution rather than overhiking

do you think that's good strategy >> that's not how i would describe the ecb strategy. the inflation remains high and is proving to be more persistent than people expected it's right that the ecb is focused on that and is taking the action as necessary and squeeze inflation out of the system >> what does that mean for the global outlook >> the global economy is recovering we're expecting it to moderate this year and increase neck year obviously both inflation itself and also the tightening of monetary policy are weighing on growth and, you know, holding it down slightly this year and next. >> let's talk a bit about the consumer because the consumer is kind of squeezed by both

effects, the inflation and also the higher rates what's your outlook for consumption spending >> i mean inflation is incredibly painful for consumers. it's with, remembering, as you say, consumers are increasingly squeezed in terms of f their household budget in particular it's painful for people on lower incomes. so we're expecting consumption to moderate a bit, but to continue and to continue through this year and next. >> well, that's quite positive, though, despite the higher interest rates what about the real estate sector i know it's a bit bizarre. but still the real estate sector seems to feel the pain quite substantially. >> one of the ways in which monetary policy tightening is works is through the housing market and real estate sector. some of that we've seen earlier on

that's part of the policy tightening >> i won't go down won pain. the ecb is sort of optimiss titick so they can have a soft landing. do you think that's fair do you think that's right? >> we're also expecting inflation to moderate this year and -- fall this year and next year without seeing a very sharp rise in unemployment indeed unemployment remains quite high -- unemployment runs quite low through our forecast, and that's one of the very good things we've seen. one of the aspects in if economy that's very welcome. we're also anticipating unemployment to remain relatively low despite the time and financial conditions that we're seeing >> economic activity, also given

at least not in all of your countries but several are faced with very high energy prices do you think that's something that might dampen economic growth. >> it's having an impact it's the reason why we saw headline inflation go up and it's now falling, but it's also feeding into the core inflation. that's affecting economies across the board, consumers and businesses of course, energy prices are now falling and so that effect will fall out of people's experience and cause some people have purchased advance energy. >> but some people do argue that, for example, the inflation reduction action in the united states is much bolder and faster than europe responds and makes

it less competitive. would you agree? >> the u.s. is one of the top greenhouse gas emitters. it's welcome that they're investing in new technologies to address those issues, and i think that's important and given the size of the market, that will help lower the costs, create benefits for others obviously the challenge here is how do you tackle this long-term issue of climate in a way that also maintains global trading systems, that minimizes any risks from subsidies and the allocation of resources around the different countries. they'll find different ways of doing that but what the u.s. is doing in that sense is progress on the climate agenda and the eu also is making progress in its own way, but choosing a different strategy. >> you say we need more subsidies for the year, this great challenge of the energy transformation >> it's important when you think about subsidies exactly how you

design them so you don't distort markets, distort markets too much there clearly will need to be a lot of capital investment and in that sense subsidies can play a role what matters is how you design those subsidies and how you target them. >> overall, of course, there are so many particular interests because every nation is having a different system, but do you think that can happen? >> it's how do you find a way through that that, like i say, maintains the importance of price signals, that encourages the rights of investment but doesn't subsidize and encourage -- you know, doesn't create distortions with the market and global markets. >> thank you so much. >> thank you.

>> okay. back over to you that's wrapping up our live dmorj central portugal from the ecb forum. >> annetta, really insightful interviews over the last couple of days. so interesting to hear what the policy makers are thinking in the years ahead. the german real estate firm adler says police have conducted a search on their premises this morning. it says -- adler's stock is down 2.3% and you can see there was a sharp spike around mid-march when the company announced their restructuring plans, and since then, we've sort of been sitting around these levels. no doubt the action that's taking place, the police search this morning, is going to impact the stock performance from here onward. >> it's certainly been a wild ride, the stock fighting for

survival, essentially, just a mere few months ago. coming up on "street signs" t white house is considering new restrictions on ai chip exports. we'll have the latest after this break.

ah, these bills are crazy. she has no idea she's sitting on a goldmine. well she doesn't know that if she owns a life insurance policy of $100,000 or more she can sell all or part of it to coventry for cash. even a term policy. even a term policy? even a term policy! find out if you're sitting on a goldmine. call coventry direct today at the number on your screen, or visit coventrydirect.com.

welcome back to "street signs. wagner chief yevgeny prigozhin is starting his new life in exile in belarus he ended a brief mutiny against president vladimir putin held a riot in the country. meanwhile the president reasserted his authority and addressed his troops, commending them from stopping a civil war the wagner group had been fully funded by the russian states in ukraine with billions of dollars in allowance, incentives, and insurance payments. the nato secretary-general says the alliance is still assessing the situation and will react accordingly. >> we are, of course, closely monitoring the developments, and

we have all of the increased readiness and preparedness and our military presence in the eastern part of the alliance we'll make further progression with more hybrid forces, more capabilities to enshure the whol alliance we'll make those decisions in just a few days. sticking with geopolitics, the white house is considering new restrictions on the export of ai chips to china you can see on your screen there, premarket, nvidia is down microis down and micron is down 1.5%

nvidia created a chip specific if i already china when the u.s. implemented chip controls. they already worked to adapt the chips put in place they say it would be extremely difficult and expensive if not impossible in an interview with nikkei asia, they said any country would struggle to build upits own self-reliant chip sector even as the u.s., japan, and the eu look to ship exports away from china. hungary's foreign minister says cutting off ties with china holds no benefit to western europe speaking to them, he said europe's auto industry is strongly tied to its trade relations with china and said the eu leaders are struggling to form a unified china strategy. >> we do believe both decoupling and derisking would be a suicide

committed by the european economy. you know, there's an 865 billion euros of trade volume between chai in and the european union on an annual basis how could you decouple without killing the european economy, not to speak about the fact that we do not look at china as if it was a threat or a risk, and if you do not look at the country as a risk, then it doesn't make sense to talk about derisking. as we look at china as a country, which if you cooperate, you can take a lot of benefit out of it. for us, china is an opportunity. an opportunity, but a must in the meantime a must as well. look at the european economy, which is the automotive industry a new industry is being born in front of our eyes basically with the revolution of the automotive industry moving from the

traditional power train to electric, and if you look at the european manufacturing companies, you'll see the autobahns, they can produce good cars but not a good battery. if you don't have a good battery, you cannot start the electric car so there we look at the cooperation of china and western countries as a midwest in order to make the new european industry operational. >> julianna, we've been talking about the importance of artificial intelligence and tech stock as bld ho much they propel leadership in that space, but i think it's also interesting to see how much the governments and policy makers are looking at is as a national security perspective. it could have huge implications on nvidia, amd, and others and

the huge exports going into china. i think it's also worth noting some of the major groups, biggest companies in china, the likes of ten centi, alibaba, other companies placed additional orders at the beginning of the year once ai started to pick up steam, and now we're looking at potentially them getting cut off from some of the key, key exports. >> let me pick up on it. when we talk about ai, it's so often in the context of how it can impact so many different industries, how it can improve productivity across so many different industries but the u.s., maybe it's easier to justify cracking down on u.s. exports if it's through the lens of a national security concern, the rationale being if other countries are able to develop weapons infused with ai, they can be a lot more dangerous. they can also be deployed in the development of chemical warfare, cyber warfare.

so that justification is a lot more concerning and perhaps easier to justify from a geopolitical view. >> that is the concern here, that they will not be discerning about the types of restrictions that they're going to to be putting up, but to quote the u.s. national security adviser jake sullivan, he said what they're trying to do is put up a high fence, quote, unquote, around a small yard of the principal technologies this is what they're trying to do here. you have to wonder if they're going to introduce it to other sectors as well. one other issue i would bring up that tends to go under the radar, if you look to the extent of trading goods that's taking place between chai in and u.s., the trading is at a record high, so the goods transfer is still going on in full force you have to wonder if any of these restrictions are going to start making a huge impact or accident in symptomatic of those trading numbers, because despite

derisking or decoupling, trading is still going on. >> you don't have to look beyond nvidia they didn't stop selling to china. they just made chips that fell outside of the purview of the regulations, so slower, less advanced chips obviously that took a lot of redesign to come up with an alternative set of chips they could sell to china, but i wonder if that's the solution if we see the new export controls come into place. i believe it's about 20% of revenue for nvidia that's why we're seeing that. >> one final point we've got to go back to what christoph was saying to nikkei he was saying decoupling the semiconductor supply chain is, number one, extremely difficult, and, number two, extremely expensive. it will take a lot of capital investment to build up the fabs to be able to compete with the likes of tsmc and other

companies have that have head starts and have had a head start for so long. this isn't something that can be achieved your night. if you cut it off too soon, that's going to have ramifications with some of the global industries. >> absolutely. we'll continue covering all the turns and twists around the chips. back to the macro. the federal reserve will release the results of its investments while analysts are able to show the banks have enough capitol to weather the crisis, it could increase caution on shareholder payouts. those results are something to watch later today in addition to our panel in sentra. we're looking at a downturn from the rally yesterday which saw all of the major indices and strongly higher. well, be sure to stay tuned because later today sara eisen will be moderating a panel with

jerome powell, christine lagarde, kazuo ueda and andrew bailey so much to unpack. there cease so much data to watch out for, the fed's preferred inflation gauge is coming up friday we have eurozone inflation numbers coming up toward the end of the week as well. it's not just about the commentarybut the data that's coming with it at the end of the week. >> hugely important since all the banks are so data-dependent. i am so very much looking forward to the panel this afternoon and i know you are too. >> that's it for "street signs." i'm joumanna bercetche. >> i'm julianna tatelbaum. thanks for watching "street signs. "worldwide exchange" is up next.

it is 5:00 a.m. at cnbc global headquarters and here is your top "five@5." stocks snapping their losing streak with tech leading the charge and the nasdaq poised to knock its -- get this -- best first half of the year in four years. futures searching for direction this morning shares of chipmakers very much taking a hit at opening bell on new reports the biden administration is taking fresh action on that sector. we'll have details in just a moment. investors keeping a close eyon