[music playing] that's all for this edition of "dateline." i'm craig melvin. thanks for watching. [music playing] welcome to "street signs." i'm arabile gumede steve sedgwick is at the nato summit these are your headlines the boe says they have enough capital and liquidity to cope with the high interest rates we'll hear from andrew bailey. that's happening imminently. >> on arievt at the summit, day

two, president zelenskyy strikes out a more slightly pragmatic tone, this after the group's hesitation to immediately invite kyiv to the alliance. >> we want to be on the same page with everybody, all the understanding. today what we here, we understand we'll have this invitation when security measures will allow. it's game on for microsoft's $69 billion takeover of activision after a federal judge rejects u.s. regulator requests to block the deal. and european equities maintain momentum while stateside the s&p 500 and nasdaq sit at less than 1% off 52-week highs as invoters await the june cpi print. await the june

cpi print. await the june cpi print. the bank has been awaiting for the treft. governor andrew bailey is speaking now let's cross over to him. >> let me start on key developments so far this year. we've had further rises in global interest rates reflecting actual and expected increases in central bank policy rights, the uk returning inflation to targets sustainably will, of course, support the objectives because it will support protecting and enhancing financial stability in the uk. now, the increase of interest

rates volatility has increased we did, of course, in march have the failure of three mid-sized u.s. banks and credit suisse that caused a rise in risk premium and volatility around march, but the impact of that stress in march on the uk banking system was limited and that since then, globally market sentiment has stabilized more broadly, the uk's financial system so far has been resilient to interest state risk compared to previous periods of high interest rates households and businesses are less likely to cut back on spending i think there are two reasons to draw out of this the first one is the resilience of the banking system. that means that the banks have options to offer support to their customers a more resilient banking system has options to support its customers. and the second reason i draw

that out is the sbc and spa have built up the household ind indebtedness and increased the resilience i'm pointing out lender resilience and borrowing resilience it is the case that the elements of the global financial system to have to do with the interest rates. really as we point to and as we saw, we point to the risk of corporate borrowing if n financial markets, lending vulnerability that has to be followed closely, global commercial real estate markets which face longer and short-term headwinds that are pushing down on prices and making refinancing more challenging in that world i think we do have to bear in mind it will take the time for the full high interest rates to come through and the other

advanced economies, so the sbc will remain vigilant to the risks and presences taking effect so let me move on to the uk banking center and the ccyb decision as we're in the ukking we've taken steps over time to ensure that the banking system is resilient to these risks and it maintains capital buffers, and the results of the stress test that we published today shows the banks are resilient to a scenario it has to do with deep unemployment rates increasing global interest rates persistently harm our advanced economy inflation and shortfalls and asset prices now, i would particularly note that while interest rates are higher today and therefore closer to those which we published in the scenario that's higher than when we first outlined the scenario, the

scenario is significantly more severe than today's conditions the very important is it's the combination of higher interest rates and simultaneous recessions around the world and in this country and materially higher unemployment that makes the stress it's not one thing on its own. that's the key point i would bring out there. second, we're announcing that the sbc has decided to maintain the capital buffer rate at 2%. this will help to ensure that banks have specific capacity to ensure future shocks without undoing lending. of course, as ever, we stand close in line with the economic and financial conditions, underlying vulnerabilities and the overall environment for risk now, we have observed some timing of lending standards with banks for the past few quarters,

but we have to make this judgment very time it's in line with changes in the outlook for the economy and the world. it's not a case of restricting lending primarily to protect capital positions, and it's that distinction between risk management and capital protection that's critical here. we will continue to monitor credit conditions, running signs of tightening, which were not changed in the macroeconomic outlook. so it is challenging that said, we continue to judge that the uk banking system has the capacity to support businesses to promote higher interest rates the stress test shows that would be the case even if economic conditions were substantially worse than we currently expect we move on to the lessons from the recent global financial banking sector stress. the recent stresses that we've seen in parts of the global

banking system underscore the supervisory standards. this is very much work in progress in terms of assessing the recent events and the sbc will continue to draw lessons from this episode. i think that the episode is underscored and spread across and within jurisdictions even when institutions are involved it highlights that while an individual institution may not be systemic in it own rights, if a risk is common or perceived to be common, it's the collective impact that has to be assessed and can pose systemic risk now the framework here seeks to ensure that it's capitalized against the risk they're exposed to include interesting rate risk we will continue to relevant international work to consider

whether lessons can be learned for the liquidity and capital frameworks in light of the pace we saw in the runs in both the u.n. and switzerland i think crucially these have demonstrated the crucial fwramworks and maintaining confidence in the frameworks ore the weekend the uk subsidiary banks failed. we conducted a plan demonstrated the operation of the regime. in soing so we were able to protect both depositors and money. >> that's the governor andrew bailey, really talking about the stress test and how the efforts that were put in place by the banks has certainly been helpful to ensure there is a sense of stability in the banking sector. many of them passing the stress test despite the incidents that happened in march and the like so let's continue this conversation just a little bit we have with us the chief

european economist who joined us thank you so much for the time i appreciate it. your sentiments from what initially has been shared there, the stress tests being paused by the predominantly eight banks of the uk as well that would be a sigh of relief. >> i think it is a sigh of relief at the same time, there are still a lot of risks in the nonbank financial sector, and i think part of that comes from the fact that policy makers also fight the last war they always try to fix the problems at the last crisis. now i think there are issues you have the crisis in the uk. there were three highly leveraged pension funds. i think pockets of vulnerability remain and this is where the bank is to remain very vigilant. >> you're still going to get more interest rate hikes so those vulnerabilities are boujd to increase.

yes, you have these stress tests. you had a stress test about a week or so ago now but, again, it was the other banks that perhaps were the ones that should have been looked at as well in anticipation some of with interest rates still set to go a little bit higher, worried at all about that segment? >> so i think there are some worries especially with respect to interest rates because in the stress test itself it's supposed to be an extreme scenario as we all know, this is the base case, right? we have no idea how high interest rates will go in this country because of all the labor market shortage supply issues. we could see interest rates of 7% or 8% that's feasible. i think they could be a bit machine ambitious and perhaps pushing it a bit higher. >> is there a sense of understanding that these stress

tests as they currently stand are doing enough we spoke about the 1-lments. there are parts to this. one, there's presumed monetary tightening of 6%, gdp contracting 5% is this sort of enough to kind of say this is the ultimate stress perhaps to the economy? should we still be looking at what can go wrong when it comes to these banks where are the vulnerabilities? >> i think for the banking system, it is a very severe stress system and i think forcing banks to hold a lot more capital than they did before so from an economy banking system perspective, this is a very tough stress test there is no doubt about that like i said, the nonbank sector is often an issue, but also anyone who's got news to a very, very low interest rate, in some sense where authorities haven't done such a good job is warning people that, hey, interest rates

aren't going to stay at zero forever, right there's a chance we might go back to normal interest rates, which is 5%, 6%. i think this is an issue they haven't done very well. it's not just consumers but governments that have become very reliant on the interest rates and long-term financial plans. we may also see more sovereign stress if not in the uk, certainly across the world. >> a recalibration overall needs to be done here s that what you're saying? >> i think so. going forward, we may stay at these higher levels of interest rates for quite some time. governments, firms, households, everyone is going to to have to recalibrate. >> you speak about recalibrating particularly on the interest rate frost one might think perhaps you have to recalibrate your thinking around inflation there was a struggle to even hit

those 2% levels not so long ago. now it's a struggle to bring it down to 2% are you of the concept that perhaps even in the long term we should think the way inflation should be targeted at? >> so i would keep the inflation target where it is because i think there is a risk that actually changing the inflation target now will lead to additional financial instability. if you look, for example torsion the 5-year gilts, that is like a 3.r5% break. epi is 2.5%. the market still believes it's credible in bringing inflation down if challenged, there would be a big selloff in gilts and the bank of england would lose a bit of the yield curve because now people are pricing in the credibility loss so as a result of this, i think that would be very undesirable from a fiscal financial stability point of view.

>> you also decided to keep the capital rate at 2% and maintain it there is that a good decision then considering how much needs to be done, how much strain and stress the banks are going to have to take on? there's going to be a clear sense of even more tightening when it comes to lending even though take-up right now is low. maintains the level, is that still a good decision, do you think? >> the purpose of it is meant to be cyclical. so they've been raising this over the past couple of years. now it's at 2% that's good. when there is more bank stress in the company when banks are subject to more stress, it will be a good time to lower it, relieve some of the stress, and relieve some of the pockets of vulnerabilities to spread to a more economic issue. >> keeping it that way is accepting that the economy has perhaps gotten a little bit better

do you feel like there's a lot more work that needs to be done by the bank of england they're possibly under the biggest amount of stress they're saying, listen, we can only do so much and now we need help how much more help are they going to have to get from government in order to achieve some of their goals right now? >> i think it should remain the bank's job to focus on inflation. i know there's a public discussion about raising taxes and so forth and lowering demands that way from what we know historically, the interest rate is the best way to achieve this, and it's also very important to respect the banks, meaning it is their job to hit the inflation market, no one else's, and they need to be held accountable for it so i think the bank needs to plow ahead of interest rate prices until the price comes down. >> that's one we'll be looking

into for quite some time thank you so much for joining us on street signs. th thomas, thank you. coming upton show, billionaire bids for supermarket casino, and european markets open in the green. we'll break down the latest action after the break hi, my name's steve. i lost 138 pounds on golo and i kept it off. so with other diets, you just feel like you're muscling your way through it. the reason why i like golo is plain and simple, it was easy. i didn't have to grit my teeth and do a diet. golo's a lifestyle change and you make the change and it stays off. golo's changed my life in so many ways. i sleep better, i eat better. took my shirt off for the first time in 25 years. it's golo. it's all golo. it's smarter, it's better, it will change your life forever.

welcome back let's take a look at the market picture, then, and how it's been faring it's been just over an hour sore so since the markets opened. we actually have a positive open two-t two-thirds higher. for the week, things have actually looked fairly good as well overall when one takes a look at the european markets, they're up for a third positive session in a row. so a fourth day is what it seemingly is headed toward if we take a look at the sectors as well some of the european markets also a genuine sense of positivity across all of those as well.

there's a 0.7% gain across the board really the odes in spain being the ones to fall. the fotse 100 has fallen not much really on the corporate as well as economic data front in europe, but a key look as we've just made note of those bank stress tests. they'll be quite important to kind of look at it and help those who have suffered from the domestic issues. they've been given a clean bill of health. that does mean their picture does look a little more rosy shall we call it as well at a time when things have been difficult for the uk economy overall, a general sense of positivity across the board. on to the sectors then these really have been pushed along into the negative by a lot of the oil and gas sort of numbers thus far, but today on the downside you have trouble.

health care taking a bit of a dip. the technology stocks, which have been the buoyant ones across stateside for the first six months of the year, now nearly 2%. better off is the tech count insurance over 1% better off so, too, retail andbasic resources. that jump will be anticipated. taking a look at the chinese numbers which certainly has been very interesting, perhaps more impetus being placed into that economy and something to look out for as well. so those numbers will be very interesting too. now if we get into some spanish numbers, inflation rising 1.9% in the 12 months to june, that's down from 3.2% in the year to may and its lowest rate in almost two years the final reading confirmed preliminary estimates. core inflation also fell compared to the previous month,

coming in at 5.9% on the year. now the airline is under some pressure. that's after it announce it will implement a reverse share split from august 31st elsewhere deutsche bank downgraded iterating on the stock from buy to hold, so that share price now dipping 4.5% this morning. tyler's has entered exclusiver cord neigh. it's a move that will strengthen its avionic business it plans to generate $200 million in revenue this year and thales hopes a deal will be completed in the first half of 2024. now, rival billionaires betting for a casino have

considered their rescue plans for the french retailer according to sources speaking to reuters. but the french newspaper reports the bidder's czech billionaire will need to raise their offer the casino has a net debt of 6.4 billion euros, 0.8% higher in the market. nato has been in the headlines. we'll continue to unpack that after the break. leaders agreeing ukraine is certainly in the alliance, but they're stopping short of extending an official invite we'll have more on the ground from ville yes, sir after the brank.

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welcome to "street signs." i'm arabile gumede our colleague steve sedgwick is at the nato summit in vilnius where we will cross lines. these are your headlines at this hour

the bank of england gives lenders a clean bill of health even though andrew bailey warns the higher interest rates has yet to take effect. >> it will take time the sbc will remain vigilant with these risks taking effect. ukrainian president volodymyr zelenskyy strike as pragmatic tone at the nato summit in vilnius, this after they hesitate to invite kyiv into the alliance. >> we want to be on the same page with everybody, with all the understanding. for today what we hear and understand we'll have this invitation with u.n. security measures that will allow. it's game on for microsoft's $60 million takeover of acti activision that's after a federal judge

refuses the request to block the deal. nasdaq is at 1% off 52-week highs. that's as investors await the june cpi print now, ukrainian president volodymyr zelenskyy has criticized nato for not providing a clear timeline for when ukraine can join the alliance calling the decision an unprecedented and absurd nato leaders said in an official declaration that ukraine's future was in the military alliance but came short of extending an official invitation let's head out to the summit where steve is joined by a special guest. steve. >> indeed. i'm delighted to say we're joined by the swedish foreign minister as well if there is concern about what's

going on with ukraine, certainly sweden would be happy with what's going on. thank you very much for joining us first of all, many congratulations. i don't want to be premoo tour, but what does this mean to sweden and what does it mean for nato >> thank you very much this means we're now taking our 200-year military alliance and advancing it that means a lot things are standing at a cross roads, and that's important to us as well we'll bring substantial capacities when it comes to our armed forces, naval forces, air force, which is very strong, and it will mean a lot for the alliance and capabilities in this part of the world. >> for personal reasons, you've been working with nato for a very long time, for decades, i have it on good authority.

what is the difference between the sweetish air force working with nato rather than being with nato >> it's very true for decades there's been an increasing amount of joint exercises, training commissions performed with us, but we also have to put this into context. we will now join as a full member, undertaking all the responsibilities as a full member we intend to do so we plan to be a loyal member and do it with a 360-degree approach it's one thing to do it, but to do it through tequila and greece as well. >> how difficult was it for the prime minister and yourself to overcome those obstacles >> we have now for 12 months a year, we have worked with the trilateral referendum when signed as parties and i think

that we have really shown to kyiv we take the security concerns very, very seriously, and we have done several things. we have changes legislation in sweden have cooperation between sweden and the prosecutor's office. so the new statement that was produced as a result of the deliberations here in vilnius stated that we're going to have a strategic concept between the compact story between them and sweden >> some call it the nato sea with the completion of every state around it in the nation bar russia what do you say to mr. putin >> the plan has backfired. he sent a message to sweden and all the world but that sweden would never be allowed to join nato you see the results. it's quite the opposite. are joining nato and we're doing

it precisely for the reason we see russia's devastating war in ukraine has meant t way they're porping warfare against hospital, civilians. we want to be a safer country and we want to be with all the nato family. >> you are virtually passing a bit of a legislation you're virtually there into nato as well. what's the message of sweden to nato about ukraine as well are we moving too slowly some of your baltic allies think that nato has perhaps not come far enough. >> well, when you're joining a club or organization, you shouldn't be too forward when it comes to the quest of some membership we're not a member yet of the organization i would refrain from going too deep into this so far we keep a safe distance having said this, we are fully in favor of the open door policy

after all it was becoming a member, we want that to be established and to remain. also, of course, we are very much in favor of the strategic concept that's being produced and ukraine needs more military support, human support and all this, we think, that the nato family joint hand in hand with the eu and the countries in the pasting who incidentally today, we should all -- all of this those in favor of world order stand up to ukraine. >> you've mentioned ukraine. global approach or should nato in the form it is now stick to europe >> no. i think we should have a look at the world. there's no such thing as no man is an island and we all have to work hand in hand, but you can do that on different aspects

there are several aspects of this let's say critical or critical minerals, which is one aspect. there's definitely room for more improvened relationships and cooperation and i think we should do that. >> it's a real pleasure. it looks like they've overcome the final hurdle le he's talking to us about i guess the relief in scandinavia and stockholm that sweden looks like it's getting over the line. steve, back to you. >> thanks very much. the message is around ukraine and maintaining that open door policy certainly still help tofl them all let's take a quick look at the euro people markets. highly anticipated is that cpi number out of the united states. that will be one to keenly look out for markets perhaps pricing

in another interest rate hike as well when the fed does meet late eastern this month clear expectations for a figure dropping off when it comes to that inflation number in the united states. and that continues to drop off and offers the kind of sense that perhaps a lot less work needs to be done i anticipate two more hikes in interest rates is what we could be seeing on that front when we take a look at that number so european markets slightly higher today, perhaps cautiously so as we said, awaiting those numbers then out of the u.s. with regards to inflation. we also saw pce, of course, from the fed's favored move really move a lot hire. when it comes to the ftse 100, that's up for a third positive session in a row the dax as well moving for a fourth positive session of the day or rather in a row while the

cac 40 will also have its fourth positive session in a row. very quickly, here are your u.s. futures here's what we're anticipating out of the united states and a positive as we head off to, of course, that very important cpi print which is set to happen later today. we're still, of course, with our colleague steve who's in vilnius with another special guest. i'll hand it over again to you, steve. >> thanks very much, arabile we've got to one of the most senior members of nato and that's italy this is the minister of foreign affairs and international cooperation. really good to see you look, in terms of this meeting as well, has it gone the way you

thought it would as regards to ukraine's situation? of course, from the outside, mr. zelenskyy seemed pretty upset. on many other fronts, i think a lot of moves have been made. >> yes, sir. thank you very much for meeting with me today. that's a very important mission. everybody is in favor of ukraine. ukraine will be part of nato, but in this moment, we need to pave the way for full membership for this we are ready for yord ni nicing ukraine it's common work for the defense of ourer riders, for the defense of europe, for

the defense of nato. that's important then at the end of the work, ukraine will be part of the nato. >> if we all know -- and i heard similar comments yesterday, and germany has been seen as a bit of a holdout on the member 14i7 language if we know ukraine is going to be a member at the end of the war, why not is explicitly say the invitation is open as soon as the war is finished >> we need to achieve victory. victory and peace is freedom of ukraine. we need to respect the international law. we need to push out the russian army and then to achieve a good agreement for stability and peace in the region. second point after this, it's possible to work with ukraine when ukraine will be a full member of nato

we are ready to do what we need to do. not only today, but the future because for us, ukraine will be part of the european union we'll be part of our common market it's an opportunity for us, not only for ukraine we need this ultimate political structure. the first today and then for the second reconstruction after the end of the war for this, wes are friends with ukraine. i have spoken with the minister of foreign affairs, my good friend, and we are ready tore fordoing what we need to do. >> you were talking about your friend actually i heard him speaking yesterday about the armaments getting to the battlefield as well is europe, is nato doing enough for ukraine to win this war as well it has been very hard going as we've seen so far on o the counteroffensive as well russians are getting better at

defending themselves the war could drag on. it started in 2014 for all intents and purposes do you have those concerns >> i want to be optimistic we have to work for the conclusion of this we are in favor of international law. we need to respect international law. for this we are protecting, supporting ukraine also for supporting the population italy is in a lot of elected goods. 100 tons of electric goods we are supported day by day ukraine, but we are not -- we're against russia we are engaged in the defense of the right and the freedom of

ukraine. this is our engagement the problem is the freedom is -- we're not fighting against russia we're fighting in defense of ukraine, but our soldiers are in nato -- in europe, not ukraine for this, we are ready for supporting in e'er sector, but i want to be very clear. we're against russia we're working hard in defense of independence and freedom of ukraine. >> that's very interesting if i may move this conversation along just a little bit, we talked here in nato about the eastern flank. one could argue the northern flank. but one thing you're very keen to get on the agenda and speak hard about and conversation and you're doing so with southern turkey as well is the southern flank. just explain why this is so important for you personally,

sir. >> security the only one package. security is to protect ukraine i told you to look at the south of the war, to look at the figure torque look at it there are a lot of problems in africa illegal ammunition, trafficking. they're organizing the drugs trafficking and weapons trafficking. there are a lot of terrorist organizations. there's daesh, and others. where is wagner this is also daesh. this is very impressive. also we need to work for the stability of grouchlkt the

courier is important for africa, but we need to look at the south. we have spoken with others on this, but we want to work for the stability of indonesia and libya and the southern region. we need to invest the money because we need the mushroom plan for growth, for jobs, against climate change, in favor of health for the young generation, in favor of education. we look atafrica we look at the situation it's a dangerous situation. >> it's very fascinating i've got one more question for you. one more there are a lot of issues you raise that are very important.

they've been important for the italian government are they issues that potentially caution auger an eu defense force that could work alongside nato that's my question >> we are ready for doing more we are ready for putting more money, but pay attention italy is a strong engager, now with a lot of soldiers more than other countries because there are soldiers in lebanon, iraq and also the lithuanian sea there are a lot of italian soldiers engaging in favor of security this is also an engagement now it's security against human traff traffickers. we are ready for doing more. we are strong supporters of the

european defense it's an instrument for strengthening also nato. we need more european engagement pay attention. le first of all, it's a political organization we need through nato to defend democracy, freedom in the world. ultimately the pacific region. look at india. it's an important country, a democratic country for this, we need to work more with india. >> that's fascinating, sir we'll have to do this on another conversation it's always a pleasure speaking with you that's the minister of foreign affairs and international cooperation and you've got a very interesting gauge on italy's views, not how it works with nato but how it works on a global basis

back to you. >> thank you, steve. it certainly was fascinating there are many different parts to that conversation that are the ones to look out for. coming upton show, we'll look ahead to a crucial u.s. inflation print. investors are looking for signs that price pressures may indeed be easing.

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welcome back activision shares rallied more than 10% in u.s. trade that's after a u.s. judge rejected the u.s. federal trade commission's request to block its $69 billion acquisition of microsoft. in her decision, the judge dismissed the ftc's claim that the deal would hurt competition, saying instead that the evidence pointed to more consumer access, to call of duty and even other activision content let's take a look at u.s. futures then and how the market is anticipated to open as we head to that all important cpi number, of course, which is said to break things down is to see whether there is a little more

respite when it comes to prices then as well and how that's going to fair. so it's a start that's bound to look a little bit green. speaking of inflation, u.s. core numbers are expected to have up to 5% as the latest data point that fed officials will get to look at as they weigh the next policy move. it comes off jeune's nonfarm payrolls report which shows future job gains have appeared in over two years. the founder and chief u.s. economist joins us now ian, thanks so much for the time i suppose it's very interesting to note that those numbers, indeed, are going to drop off as we want them to do so, but clearly the pause has been good for the fed. >> well, they haven't received all that much information since the last meeting, so this is

really quite a key data point for them but having said that, i think so many officials have said over the last week or so they still want to raise rates further, that the pause is going to end on july 26th when they next meet, regardless of what the number is today. i think it would have to be a real off the wall print to get them to pause again in july, but i'm really hoping by the time the september meeting comes around after we'll have two more cpi reports, we'll have a lot more information, i suppose the upcoming labor market data will be softer than it has been over the first half of the year, and i'm really hoping as a result of that, this july rate hike will be the last one. >> yeah. some of the fed speakers have been speaking about how they admitted they're near the end of this hiking cycle, but at least their anticipation of around two more is certainly on the cards is the question still just around those two more hikes or even more hikes or is it more

critical as well to understand when this begins to drop off in order to stabilize that economy too? >> well, they made it very clear that they need to keep raising rates until they see clear evidence that inflation will soon be heading back toward the target to my mind, they've already done enough to make it likely that evidence appears over the next few months but because of the disaster of the transitory inflation fiasco, in which they expected only a brief one, they can't afford to be wrong again that means they're playing it much more cautiously or aggressively than, i think, any previous fed would have done most would have been easing by now and yet this fed is still talking about further fed rate increases. there's no question they're near the end of the road than the start of the road. for markets, it makes the difference whether they do one more hike, two more hikes, three

more hikes it's very important to asset prices both to stocks and to bonds. the question of what happens over the summer after july, i think everyone expects them to raise rates. it's really important to the performance of asset prices not everywhere in the u.s. but elsewhere and i think that's why it's really important that we get a good handle on exactly what's happening with the sticky components where we've had a real inflation problem my hope and my expectation is that those data will improve quite markedly over the next few months and by the time they meet in september, they'll look back and hopefully that means one more hike and they're done. >> okay. so does that mean then for pantheon macro that the final destination is around 5.5? >> one more hike

july 26th, i think they will keep it open they're data dependent and the data that will come out over the intervening period, there that will give them a great more deal of information my guess is both the inflation numbers and labor market numbers will be soft i think it was indicative of a softening trend. so by the end of the summer when they come back and look back at the summer data, i think they'll be able to say, you know, there's been a meaningful downshift. some of the pressures and components have been very sticky, things like rent, car prices, some of the food price data, insurance prices, all of which have been really quite troublesome, i'm expecting to see downshifts there's plenty of evidence to suggest the worst is really behind us, but this fed is very much of the view you have to see it in the data flats aren't good for them

they tried that and it didn't end very well. the're very much of the opinion when the data changes, they'll stop raising rates but don't expect us to change our rates until the forecast changes. we don't care about your forecast we just care about the data. >> we don't care about the forecast that's pretty much the task. that thank you for your time ian, the founder and chief u.s. economist at pantheon macro economics. that does close things off for us today of course, we are looking toward the u.s. opens the cpi print is what we're going to focus in. the final drop of the penny before that rate decision by the fed. thank you so much for joining us on "street signs." i'm arabile gumede

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it's 5:00 a.m. cnbc headquarters and here are your "five@5. they're more caution on the recent rally today it's all about inflation with the june cpi report due out in just over three hours from now. why one index is getting some outside attention ahead of that report. and microft clears a major antitrust hurdle in its pursuit of activision, the tech giant setting its sights on roadblocks overseas. plus, why cathie wood' lov