control with dominant runs he ends up getting the overall victory and retaking the points lead a little drama in the 450. chase sexton definitely kept jett lawrence honest you do not want to mess with jett, who fired back and got the win when he needed ♪ good morning welcome to "street signs." i'm joumanna bercetche and these are your headlines more signs of stalling china reports a second quarter gdp miss dragging equities into the red. luxuries lose their shine as falling sales in america take the sparkle off the surge in asian demand casino shares suspended with daniel kepinski is looking for a

bid as rivals ds drop out of th protest. italy issued a red alert for 16 cities and a quarter of the u.s. swelters under extreme temperature warnings good morning welcome to "street signs." i'm back after a couple weeks off. last week, the narrative on the inflation print in the u.s. and lower cpi number which was received well by markets stock markets 2% higher. over the weekend, and overnight, attention shifted to asia and

information from china we will talk more about that on the show the take away is the pickup in activity in china has started to slowdown the recovery has started to fizzle out that is having ramifications across all sectors and countries with exposure to china that is the number one story today. as for the stoxx 600, we opened weaker .50% weaker. we have given back what we had with the losses. now .25% to the red. for the week, coming in with a solid weekend. the stoxx 600 with the best week as well since the month of march. the last week was a positive one, but today we are starting off on rocky territory in terms of the european markets, this is the picture with the exception of the ibex, the rest of the indices under water.

dax is down .80% cac 40, the underperformer, down .7.75% we are focused on the luxury sector we are seeing hermes and lvmh under pressure the dip we saw in oil prices on friday is continuing today as well as well as the pullback on the basic resources. the defense index down .50%. in terms of sectors, this is the breakdown with the leadership and health care up .60%. european banks up .50% u.s. banks reported earnings to the end of the week last week. solid results from jpmorgan

chase. we get more from goldman sachs that is one to watch out for that bodes well for the european banks which are set to start reporting next week. on the flip side, we have real estate down .90% basic resources, commodities or any name with exposure to china is selling off that basket is down 1.3% luxury down 2.2% that is namely on the back r richemont. this is a picture across all of europe lvmh down 3.5. the owner of the boutique is down 1.4%. the one name we are watching out for is rich sdemont. that is down this morning. charlotte will talk about that on the show. again, we are seeing a dip in consumer spending in the u.s.

and disappointment in the wearables department that is one reason why richemont dipped in trade. as i said earlier on, china economic is stalling china's gdp grew by 0.8% on the quarterly basis. falling from 2.2% in the first quarter. monthly retail sales fell short sharply. >> the china economy missed expectations headline growth was better than the first quarter, but heavily skewed by the lockdowns which weighed on productivity and consumption in shanghai. on the quarterly basis, the economy grew 0.8%. distorting the economic ca

indicators in june retail sales only grew a smidge which means consumption remains weak and confidence is low with worry of jobs and income that was highlighted by another record high with youth unemployment home prices with the weakest showing all year leading to the stimulus to spur consumption there were bright spots. industrial to the upside despite exports falling the most in three years and business confidence at factories. the investment beat expectations and the foundation of the domestic economy is not solid dragging the completion international situation. it is confident china can still meet the growth target of 5% the market is now eyeing the meeting next week for clues

about how the leadership plans to shore up growth in the second half in singapore, i'm sam baddas, cnbc business news. >> let's bring in my first guest here with us duncan, let's start off by saying your take on the gdp numbers we got overnight it seems clear that the recovery we saw at the beginning of the year has fizzled out. >> you are right the expectations were that once china dropped zero covid policy, households would come out and start spending again in reality, they did come out. they spent a bit more, but mainly on services the strength of that growth has started to fade. households have not started spending at all on the big ticket items on cars and houses. >> why is that the case? >> people are worried.

the jobs market is fairly weak youth unemployment is high elsewhere, migrant workers have jobs, but they are forced to take lower pay jobs in services sectors rather than export secr sector like last year. the chinese government would come out with a big stimulus and high growth message and households would get confidence about that this time around, we are going for high quality growth rather than high speed growth that amid a world of economic uncertainty is weighing on households and leading them to put more money to the bank and save rather than spend. >> we already started to see the moderation from the first quarter to the third quarter what does it look like in the

second half of the year? is it still feasible they reach 5% annual target they set? >> i think it is still feasible because the government will come out and top out growth with a bit more stimulus. it is not stimulus like previous cycles, but the bureau meeting in a week or two and even before that, we are starting to see some measures trickling out. if you look at the data, you can see the effect of the measures long long-term corporate loan increasing and that is feeding into manufacturing and infrastructure investments both picked up a little bit in june those are the traditional sectors. what you will see is china turning back to that traditional playbook just to keep the economy ticking over >> as you say, they want to focus on the high growth sectors and the playbook dictated with stimulus, a lot of it is

funneled in the property market. we understand the property market in china is overinvested. there is a lot of overcapacity in the space how much of a drag does the customer pose to the recovery story? >> absolutely. the property investment is still the biggest drag that is clear in the q2 data and latest data. i think it will be a drag in the second half of the year, but lesser drag. that's because the support will be gradually stepped up. again, i don't think we'll see the government step on and let loose on the property sector they are trying to calibrate policy to eveningineer a stabilization. we will see another chunk of funds going out to ensure the housing projects are completed and delivered to people so they still have confidence in the system of putting out money for

the housing to be delivered in a year or two. >> we have been talking a lot about the cpi back drop for much of the western part of the world's economy. the u.s. cpi came in lower than expectations let's talk about whether or not a disinflationary trend has come out. with the cpi, it is negative where does china stand with the inflationary or disinflationary impulse for the year >> china will deliver d disinflationary for the world. you have uncertainty with iron and steel or electric vehicles the result of that is falling prices there has been a price war in the domestic auto sector that is spilling out in china which is now selling lots more

exports of cars. russia is the biggest market for china's car export there are many other countries in the world and the way that transmits in terms of d disinflation is we are seeing falling producer prices transmit to falling consumer prices that will help the high inflation problem. >> what does it mean for the chinese consumer we have been talking about the luxury market. we know a big driver of how these luxury names operate with theconsumer. you mentioned consumer confidence is weak in china. how does that look in the second half of the year >> there is an interesting nuance happening within with the high-end consumer sector in china. i think it is true that the mass

luxury consumption has been very sluggish in line with the general p confidence issues. if you look within that really high-end stuff, there is substantial demand china's wealth population has been insulated you see with spending high luxury goods and very high-end property in shanghai and other cities there has been demand for that you know, overall, the picture is going to be set soft for luxury products, no doubt, with the china consumption being weak and so forth within that, there might be pockets of strength. >> which is why it translates to the higher performing luxury names in europe. thank you for coming on the show so much to tunpack duncan wrigley, thank you.

chinese youth unemployment has hit a record high. for more on this and the china stalling economic recovery, check out cnbc.com. coming up on "street signs," richemont jewelry loses its shine. find out more after the break. i'm andrea, founder of a boutique handbag brand - andi - and this is why i switched to shopify. it's the challenges that we don't expect, like a site going down or the checkout wouldn't work. what's nice about shopify is when i'm with my family, when i'm taking time off, knowing that i have a site up and running and our business is moving forward because we have a platform that we can rely on. that is gold to us. start your free trial at shopify today.

welcome back to the show in luxury earnings, richemont shares at the bottom of the stoxx 600 today after the jewelrymaker reported first quarter sales that fell short of expectation. the group which is behind brands saw a strong rebound in the asia region, but weaker in the americas charlotte is joining us with more we are seeing the reaction with the stock down 8%. tell us why. it seems the weakness is coming from america this time with the weakness and pull back in the u.s. consumer spending habits. >> absolutely. overall, the results were below expectations

90% exchange rate. the details are interesting because very much this performance was based on the asia-pacific rebound with that 2% of gdp from china and it is a worry to investors because richemont relied on this economic activity. america was down 4%. the year was resilient up 11%. that is due to france and italy with tourism boosted in the regions. this is very much the performance with them with high margin segments up 24% sales up 10% for watches a difference there with the results which were better than expected thanks to the rebound in china richemont was softer than

expected and the other part of the business with the brands also being softer than expected. china give a bit of nervousness for investors. that rebound from the a asia-pacific is worrying them. >> this ties into april where we were talking about lvmh and they had waning demand from the u.s. consumers. i wonder if the luxury stocks which have done well to date, some up 25 th%, and if they are for a bumpy ride in the rest evideof the year we had the post-covid recovery in china now we see stalling to come in the second half of the year. none of this is looking good or positive. >> that is the concern because

the stocks have pulled back. of course, a slowdown and concern and you still have a great performance. we see the cooling of inflation from the u.s it is a wait-and-see moment. things may calm down and kickoff again. this was the question of the potential higher talks with lvmh two years ago and now a question of what is next for richemont because they may do an acquisition. they have been moving with the economy. those highly rich people will still buy watches.

the question for richemont is what next. >> i want to talk about retailing. casino shares have been suspended pending announcement with the tech billionaire who is the frontrunner in the race to take over the retailer friday has been set as the deadline for the applications to be submitted one bid pulled out after a lack of information the plot thickens. casino shares down 75% in the last 12 months it has been really, really a tricky ride to get here. we know they have a lot of debt and that is an issue for investors. how much of a turn around could this be with the tech investment >> finally we may have the answer to the saga which has been going on for so long and

multiple billionaires. it's come to an end. these two groups have put offers on the table and improved o offers they did not have enough information to make a serious offer and they pulled out of the buying process maybe there is somebody that is nervous and that was not passed on there is only one man in the race it may make the job easier for them there are many business participations and in that food retailer business with the shares in west ham, et cetera of t the businesses

shares pending waiting for at announcement later today they are working on the situation closely.coming to a f answer. >> also notable that this is not coming from within the country, but outside. a tech investor. that tells you how dire the situation is the white knight came from the czech republic charlotte, thank you for joining me today let's get a check now on tesla shares which are higher in pre-market after the evmaker confirmed it has sold the first truck after two years of delays. this is how tesla is looking like it is opening today 1.6% higher in pre-market. $285. and byd says first half net profits could triple

the evmaker is rival to tesla. it is up more than 225% on the year byd has left america off its road map, but it is making in-loads in the italian market we traveled to the headquarters in germany to find out about its own move to electric >> it's a carmaker known for combining german earngineering d design now entering the electric vehicle market with the latest project. >> the future will be electric because the electric infrastructure is coming up now. it is the only way to keep our cities at a high level >> the move to electrification is part of the shakeup from the ceo. he purchased the company alongside his brother in 2016.

located in dortmund, germany, the headquarters is designed after the company logo i got a look at the thunderbolt prototype in action. >> once you get used to driving an electric car, it becomes difficult to go back to the combcome b -- combustion engine. >> it is a luxury brand with a high price point and the current economic climate with the cost of living and inflation, are you worried? >> we're not worried and that's because wiesmann is a timeless brand. it retains value unlike other cars that lose value wiesmann will go up in price when we talk to customers, they are talking about buying a

wiesmann as a piece of jewelry it is a very different strategy to buying a super car. >> what do you think sets you apart within the ev market now >> have you seen anything that looks like this? no we have a unique design. we are hand built. the first electric roadster in the world. we are now achieving things that nobody else is doing i'm proud of what we are doing >> is the current conditions for the car manufacturing are willing to take this on? >> most car manufacturing are very large oems and decided to already go down this path. i don't see this going back. there are few companies which have been able to wiswitch into the technology we have demonstrated successfully. >> you can catch the full

episode on wednesday at 23:00 cet only on cnbc coming up on "street signs," another hurdle is removed in the quest to buy activision for microsoft. we'll discuss coming up next 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.

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welcome back to "street signs. i'm joumanna bercetche and these are your headlines china reports a second quarter gdp miss. luxury stocks lose their shine and richemont is the bottom of the stoxx 600 as falling sales in america takes a sparkle off the surge in asian demand casino shares suspended with daniel ketinsky looking to snap up the company after rivals drop

out. and actors join the writers on the picket lines for the biggest strike in decades. >> now that we're on the line with them as a whole another union, i said one of the last things that i said in that negotiating room across the st table is now you couldn't make a deal with two unions congratulations. after a stellar week last week, the stoxx 600 putting in the best week since march, we are seeing european markets slip stoxx 600 is under water down .30%. the only green on the board is the ftse mib is up 11 points the ibex in spain is up .30% we are gearing up to the general election next weekend. that is something to watch out

for and the political ramifications will be keenly felt within the spanish index. dax in germany is down .10%. we see a pullback in industrials. luxury is leading the declines with lvmh and the one stock, richemont, is down 7%. that is the reason the swiss index is under performing. the ftse 100 is down .20%. some of the laggards include ocado. right at the bottom of the ftse 100 as well as under performance in the likes of glen core. basic resources names and commodities names with links to china. something to watch out for in the ftse this week as the uk cpi numbers released as well that will determine where the

bank of england is headed next and ramifications of interest rates and interest rate sensitive sectors. this is the picture across markets today with the foreign exchange the dollar weakness continues. the dollar saw the worst week in over a year. the u.s. dollar was one of the major pullbacks. we see the weakness over the euro we're about .80% weaker. 112. euro continues to move higher. we were in the very tight range and now we pushed through that now. the pound is at 130. i remember talking about very closely with the number breaking through parity at the end of the year last year what a ride. up 130 is the pound versus the u.s. dollar.

the dollar is trading firmer and .40% higher with the chinese gdp data on the downside it wasn't just the gdp data that disappointed and shown deceleration from the first quarter, but retail sales and industrial investment and other indicators have disan pppointed well this is the u.s. futures and not a lot of movement. you see the s&p will open flat dow is seen opening 30 points to the negative and nasdaq up 17 points again, last week as a strong week for all of these indices. dow up 2%. nasdaq up 3% a lot of focus has been on those weaker than expected u.s. cpi numbers. also, remember the earnings season has begun

jpmorgan chase on friday we will watch for results on goldman sachs as well on the u.s. banks earnings run. earnings season is really beginning to kickoff and pick up this week in the u.s elon musk has said cash flow at twitter is still negative amid a 50% drop in advertising revenue months after he announced the firm had a shot at becoming cash flow positive by june musk tweeted the firm's heavy debt load was weighing on the profitability. it pays 1.5% interest every year on the debt. in a separate tweet, musk said he had not seen the expected revenue in june, but this month is more promising of the twitter's rival threads hit 100

million users in five days it took chatgpt months to reach that number. that was seen to be very fast. the fact that threads was able to get more than 100 million and now 110 million users is impressive it tells you that twitter does have a lot of competition. not just in terms of social media, but in terms of ability to cap revenue that is the reason that elon musk brought on linda yaccarino. microsoft is a step closer to closing the months long quest to buy activision-blizzard to keep call of duty yon the playstation console. it could enable microsoft to

make the game exclusive to its platform which has the regu regulators objecting as the u.s. ftc had the bid to pause activision again that means the uk competition is the last regulator standing in the way of the firm's closing acquisition by the deadline tomorrow it announce d a six-week extension to get full review of the deal one last regulator standing. if it does go through, it seems the activision-blizzard deal will go ahead and it will be a huge story in the gaming industry for many years to come. also coming up on "street

signs," extreme temperatures plague the u.s. and europe we will have more on what is happening with the temperatures, soaring temperatures, around the continent in just a few moments of the -- moments. to finally lose 80 pounds and keep it off with golo is amazing. i've been maintaining. the weight is gone and it's never coming back. with golo, i've not only kept off the weight but i'm happier, i'm healthier, and i have a new lease on life. golo is the only thing that will let you lose weight and keep it off. who loses 138 pounds in nine months? i did! golo's a lifestyle change and you make the change and it stays off. (soft music)

welcome back to the show it is less than a week until the snap election and the opposition people's party is ahead in the poll polls. the ppe looks to form a coalition with the star-right party to achieve the votes needed to form a government. according to a poll, the ppe could win 37.2% of the vote or 152 seats with prime minister sanchez looking to secure enough seats for majority in a separate poll for center-left, the people's party share of the votes slipped leaving a ppe alliance short

not quite there. in italy, the foreign minister has been elected as the new leader of italia, the conservative party founded by silvio berlusconi. the party lost public support in recent years steve caught up with him on the sidelines of the summit last week where they caught up on the cooperation of the individual and european level issues. take a listen. >> we are ready for doing more we are ready for putting more attention on the issue italy is strong now with a lot of soldiers. more than other countries because of the investment in lebanon and iraq there are also a lot of italian

soldiers engaged in security this is also engagement security against human traffickers is also security for napoli we are also strong supporters of the european defense and european defense is an industry for strengthening. we need more european engagement >> a landmark deal brokered with -- a landmark deal brokered with ukraine is set to expire today with russia. vladimir putin did not renew for the fourth time. before the outbreak of the war, ukraine accounted for 25% of global investment. john kerry says it is imperative that the u.s. and china make

progress on the climate commitment in dubai this year. the u.s. west coast is dealing with a heat wave with temperatures reaching 50 degrees celsius in death valley. extreme heat alerts have been issued for half of the country and flash flooding in the other half of the country. temperatures in europe could hit highs with greece bracing for a heat storm rome issued hot red alerts in 16 countries. arabile has been looking at what is going and has been moonlighting as a weather correspondent today. arabile. >> joumanna, the numbers have been astro nomicalastronomical. the uk feeling it in london with

23 degrees celsius when you head down south, you will see 38 to 40 degrees celsius is the minimum this week, we could see italy surpass the 48.8 degrees celsius number from 2021 that was a record figure with the temperatures across spain, we saw quite a few areas close off. the canary islands had to be evacuated. in greece, acoropolis had to close where people could not visit. a lot of these countries saying the weather warnings are going to be severe

16 cities across italy and rome given the hot weather warnings that is really moving across the area it is because of the anticyclone from north africa. that is unfortunate for the heat wave joumanna >> arabile, i tell you, i came back from lebanon. it was very hot there the last couple weeks lebanon, for the first time, the heat is not coming from the east or the gulf or saudi arabia. it is coming from europe which is a very surprising situation we find ourselves in hotter temperatures we will have to get used to in europe arabile, thank you for that report hollywood actors have joined the screen actors on the picket line shutting down production in the first joint strike in over six decades. remarkable scenes from

hollywood. let's get to david smith from the business school. david, thank you for joining me on the show today. what i read is twofold with the strikes. picketers are asking for a decent distribution of royalties for streaming and they are concerned of the rise of artificial intelligence which is not just specific to the media industry that is something we are hearing from employees all over the world. let's start with the royalties what more can be done to ensure equitiable distribution for anyone picketing >> good morning. thank you for having me. i think that is a key issue in the negotiations as we move in the disruptive era of streaming, everyone p is trying to figure out the economics. it has worked to the detriment of the actors and they are

trying to do their best to ensure a more stable financial footing in the future. at the same time, the studios are trying to figure out how to make this a sustainable income stream and that is tricky for them. >> on artificial intelligence, i think a lot of the writers have concerns they may end up being almost fully replaced or a good chunk of work replaced by artificial intelligence. and actors are concerned about a.i. in years ahead with production how much of an existential threat is artificial intelligence for those who are demonstrating? >> that's a key issue. i think as we look at the next three years, which is the expected window of the negotiation period, a.i. is not likely to takeover the

likelihood of actors or writers, but it is an evolving threat one challenge in the environment with unscertainty of a.i. and where it might lead is coming up with a framework that works for both sides. >> let me ask you what that framework looks like the writers started demonstrating back in may. it has been going on for months now. what can be done what needs to be agreed on what assurances can the media companies and studios offer to put the story to rest? >> i think as it relates to a.i., making sure an actors likeness is not digitally reproduced in future years without some sort of opportunity for revenue to flow back to that actor. there is a lot of concern about how this might play out. there is really a lot of uncertainty. i think that is what both sides are wrestling with

what protections need to be in place? it is a challenging environment to come to agreement >> how disruptive are the strikes to the industry as a whole? we have two high-profile movies coming out in a week "oppenheimer" and "barbie. how much of an economic disruption could we be looking at here? >> last night, we had the writers strike it was -- last time, we had a writers strike and it was over 100 days this strike combines writers and actors, the first time in 63 years, and i think in the short-run, we are not looking at major disruption there is a lot of backlog of production and scripts as this goes on and it becomes less content, people may cancel

streaming subscriptions of the it could be devastating for both sides. this could be more costly. >> the irony is the companies are having to deal with the consequences of expanding too rapidly into streaming with the compet competition. i want to ask about the macro backdrop to this we are a business show and we spend a lot of time analyzing the economic data from the u.s we talk about the labor market to what extent are the strikes motivated by the fact that many employees and members of the work force feel empowered because of the level of job vacancies out there and they feel they could get away with higher wages if they ask for it? >> i certainly think coming out of the pandemic, we have seen labor and unions bolstered by some of the increased leverage

that labor has now in the environment with shortage of many levels and increasing wages. to some extent we see more actions like labor crop up, means more workers are emboldened by the leverage they experienced coming out of the pandemic >> how do you think this changes the power balance with actors and writers on one hand and media studios and production companies and media companies on the other side going forward how will the landscape change on the back of the strikes, if at all? >> my sense it is tilted a little bit in favor of the unions and workers i think that is really more of a picture related to how we went into the labor action. in the long run, they need to work together. they have one economic tpie they

need to eat from they have to come to agreement to see how that pie is split up. >> david, thank you so much for joining me on the show david smith. professor of economics at pepperdine university. our u.s. colleagues will speak to fran drescher at 14:30 cet. three of the largest u.s. banks reported earnings on friday with jpmorgan chase, citi and wells fargo all reporting surging net interest income on higher rates jpmorgan chase beat on revenue and profits fueled by the retail banking decision with higher loan books investment banking rose 11% and the market division took a 10% hit. both better than the bank's warning of 15% decline

citi slumm ped in the second quarter. corporate and invest mment bankg fell and fees also fell. mark mason said the banks don't expect a down tturn in the u.s. economy. >> we did have a good cpi print. i think the fed will likely want to see a couplemore months of that before taking significant actions in a different direction. when i think about our consumer, i think about the corporate clients. they have strong balance sheets. they have proven to be resilient. >> blackrock released results on friday beating on earnings and reporting assets of $9.4 trillion $80 billion were down on the month and year sending shares lower. larry fink says he sees rates

remaining high with the price pressure. >> i think it would be sticky between 3% and 4%. if i'm right about the job creation and need for labor and what it will elevate wages, we with will be in a period of inflation which will translate into a figure that is reluctant to turn off their platform of raising rates. >> u.s. earnings season ramping up this week we will have more big banks reporting with morgan stanley on tuesday and goldman sachs on wednesday. tesla and netflix will report on wednesday and we will hear from united and american airlines and johnson & johnson and capital one and american express later this week. in terms of data, you want to watch out for u.s. retail sales tomorrow u.s. housing on wednesday with

of the -- wednesday which is an interesting one to watch it is interesting to see if the numbers hold on wednesday. u.s. existing home sales on wednesday. a lot to get through this week we will not have anything on the central banking front. this is the picture for european markets today. we dipped into the red for all of the indices with the exception of the spanish ibex. a lot of focus on the ramifications of the weaker than expected chinese gdp print and impact on the sectors linked to china like commodities and basic resources and luxuries leading the decline this morning as well that is it for the show today. i'm joumanna bercetche "worldwide exchange" is coming up next. e started selling my health products online our shipping process was painfully slow. then we found shipstation. now we're shipping out orders 5 times faster and we're saving a ton. go to shipstation.com /tv and get 2 months free.

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it is 5:00 a.m. here at cnbc global headquarters. here is the "five@5." st stocks starting in the red futures are under pressure. earnings are front and center for investors, but one says it could be different in a big way. in china, disappointing data again, but investors say they are not deterred. plus, microsoft all but free and clear to close the deal for activision-blizzard with one regulator standing in its way. later in the show, two years