that's all for this edition of "dateline." i'm andrea canning. thank you for watching. [theme music] good morning and welcome to "street signs. i'm joumanna bercetche and these are your headlines uk inflation slows down sharply in june, coming in at 7.9%, the slowest pace in 15 months. raising hopes that the bank of england will slow the pace of hike and keep the peak rate below 6% chief secretary john glenn tells cnbc the fight against inflation continues. >> we're working closely in

lockstep with the bank of england as we try to get it down to its long-term normal 2%. gilt yields drop sharply with the 2-year back below the 5% mark while equity markets cheer the inflation trends, with the country's homebuilders seeing their biggest rally since 2008. asml beat its quarter expectations as the dutch ceo says the u.s. import curves will have minimal impact this year. and bank of america and morgan stanley recorded second quarter earnings with goldman sachs' numbers due today a soft landing is now firmly on the table. >> our research team, which is

terrific, still has us in a slight recession, but they've moved that out again it's basically a soft landing, more or less well, good morning, again, everybody, and welcome to "street signs. let's get you caught up with numbers coming out of the uk and that's the inflation numbers it has eased 7.9% but is well ahead of the 2% target rate but below the 2% they had been expected it helped drag down 8.7% the core over the year is 6.9%, also showing a decrease from the month before we're still higher than when we were back in april there's still lingering

inflationary numbers nevertheless traders are looking at slightly lower points a 25 basis points move hike have increased to 65% after the cpi data was published from 58% on tuesday. now, let's just take a look at the reaction across fixed income it's quite extreme let's start with a 2-year gilt here we're below 5%, 4.83%, so we've moved 25 basis points on the back of this data. it's certainly moving in the right direction. investors have been very quick to price in a lower price from what we're seeing on the front end of the curve 10-year gilt sitting at 4.18, also seeing a sizeable move there, 13 basis points there as well switching over to sterling, this is the reaction and effects

we're seeing it slipped below about 2/3 of a percent again, going hand in hand as rates markets price in lower terminal rates as for equities, let's take a look at how equity markets are reacting it's pretty positive the ftse 100 up over 1%. 81 points higher and then the mid caps, up 2.4% so all of this has been well received by equity markets, positive signs for sectors, but also let's talk about some of those individual sectors in further detail starting with the banks obviously, this is the one we have been watching very closely throughout the last six months or so. the impact on the broader economy and the banking sector, today thebanking reaction is

sharply higher hsbc only moving a fraction higher, 0.4% uk retailers, let's take a look at how the reaction has been also noteworthy that we're seeing somewhat of an improvement in the food inflation as well. it's moved in the favor of everyone perhaps it also means consumers will have a little more c discretionary money to play with all of these names up 4% and 5%. this is actually the biggest jump we've seen since 2008, so it is a huge day for some of the home builders in the uk, and we're seeing it on the screen behind me. now, speaking this morning,

the chancellor jeremy hunt reaffirms their place in the priorities. >> it's good news inflation has fallen it shows that if the government and bang of england take difficult decisions, we can win the battle against inflation nonetheless, families up and down the country, inflation is rising too fast. 5% in the eurozone you can see if we stick to the plan, we can bring down inflation, and that's what this government is determined to do. >> well, arabile is joining me certainly some improvements with some of the high-level numbers energy, food inflation, of course, on consumers' minds, and it bodes well for the coming months. >> it does paint a good picture

and gives us a lot of optimism, having that number draw down to 7.9% yes, it doesn't, however, make the summer perhaps this should be a caution to note that's still four times almost the number the bank of england would have wanted when it comes to interest rates still at 6.9%. even higher than the figure we had in april, which was 6.8% so that will be one they'll look at and think this is still a headache for them and they'd like that figure to drop down significantly. it's very important that they don't rest on their laurels. they're looking at other ways how to help the bank of england in bringing that inflation figure down. so i got to speak to the chief to the treasury, john glenn. this is what he had to say. >> it's very encouraging it's great to see that inflation is falling that's what we've been planning

and working for. obviously it's slightly higher than was anticipated in terms that the fall is greater but there's no complacency here. we're working closely in lockstep with the bank of england as we try to get it down to its set long-term norm of 2%. >> there have been questions asked of retailers there's been profiteering and the like as well the profit margins and prepandemic have actually fallen while the food manufacturers have been the ones still fairly higher profit margins. will you be asking a few questions of them and how they can bring down those numbers >> well, the chancellor and myself have met with supermarkets we've met with the different regulators including the cma to ensure that they are taking appropriate action across the

supply chain so it's a very complicated picture, but we work very closely with those bodies to ensure that the right savings are paced on and it's the most appropriate. >> do you feel enough has been done thus far? >> as i say, this is a journey we're working through different elements of it you're right to say we must look at all elements of that supply chain and we continue to work with the appropriate regulators to see that actions are taken. >> joumanna, we've been speaking about the bank of england and the work they need to do when it comes to the interest rate hikes in order to bring down inflation as much as possible, but actually one of the serious issues is how a monetary policy played its part but fiscal policy needs to play a role. i have to ask whether he believes a shift in monetary

policy is still the right way to tackle inflation now having seen the bank of england go through all of its measures and this is what he had to say. >> there are a number of measures the policy in the uk is the responsibility of the bank of england over the course of a century. they make those decisions. but honestly, the chief secretary is responsible for the government spending in the uk and they have to grip that i'm also responsible for productivity i should be continuing my work on the productivity review to see that we spend money wisely and that we remove unnecessary expenditure and we make sure we're optimizing the way we spend taxpayer money across the state. >> the chief secretary to it, john glenn, talking about not necessarily dropping down spending by a particular figure but ensuring the optimization

within all the departments within the government. a quick look at the drivers. we had two sort of areas in which we saw double-digit growth initially in may the june figure, however, has brought down the food inflation. it was 18.4%, the increase there, but we're in that 17.4% bracket, which is still high when one compares that to the data that came out, still, double digits. 14% here 17.4% year on year here. the retailers are the ones that perhaps one would be looking at and the manufacturers who according to a source has told the ft that for the first time in three years, retail manufacturers are now beginning to drop their prices, so we could see this fall off even more. >> i'm certainly beginning to see it in the high street as well, arabile, with the number of price cuts. thank you for bringing us all of

that information about the cpi print. let's get out to the first guest of our show, the portfolio manager. nikola, the uk market is notorious for moving really hard whenever something happens it moves a lot in both directions on good days and bad days let's start with the interest rate market. 2-year gilts are about 24 basis points lower they had a lower terminal rate out of the bank of england are these moves justified? >> well, i think that the market is obviously very sensitive to inflation, which makes sense because inflation in the uk has been surprising to the upside relative to other countries. now, i think there are reasons for that the big reason is energy prices and import prices, that are feeding into inflation and

leading to the lack of inflation in the uk versus the u.s i think some of it is the later reopening from lockdowns, which means there's some impulse there and a tight labor market but generally speaking, i do think the inflation process is going to be global and ultimately uk disinflation will follow the u.s. so i think the market is recognizing that maybe the uk is perhaps not going to be on its own, but eventually is going to follow the disinflation of other countries. if you look at the peak rate priced in the market, which is around 6%, i think it's a fairly high rate, and i think gilts look relatively attractive here, and i think the market is recognizing that. >> indeed, the peak rate has now moved down to 5.8% in the last hour or so, but core cpi is still sitting at 6.9%.

that's a very elevated number relative to where it should be sitting at i wonder to what extent the inflationary dynamics are specific to the uk you talk about the disinflationary momentum some talk about it in the u.s. yesterday we had comments out of the ecb, also signaling on the european side of things perhaps the inflationary dynamics are beginning to change. but people say the uk stands out for a different reason because of the labor shortage effects and because of some of the supply side of impacts that couldn't be wreckdied quickly with monetary policy. >> i think if you are to look at some specificities of the uk, i think the labor participation, low labor participation according to surveys reported by a lot of people reporting to be sick appears to be a bit of a

unique feature of the economy, which arguably has strength supply and ultimately boosted wage inflation, but, again, i'm not sure we should attribute too much important to that as i said, in part, what we're seeing in the uk is big increases in energy and import prices like europe, which are leading to a lot in the inflation process, especially in the goods sector you had a reopening from the pandemic which leads to the u.s. i think compared to europe, you're right, that the labor market here is tighter, but, again, we are seeing some signs that things are changing vacancies appear to be slowing we're seeing signs that unemployment is turning a corner so i would expect wages to moderate, and perhaps there is some extra supply side pressures, but i'm not sure the

uk trajectories are on a completely different path compared to the rest of the economy. >> let's talk about the growth side of things more and more it seems like more and more people are turning optimistic about countries' abilities to avoid a recession you hear the u.s. skirting around a recession as well is it your point that in spite of all that we've seen, major economies will be able to avert a worst-case scenario on the growth side? >> our view is the global economy and the u.s. economy will go into some kind of mild recession at the turn of the year there's no doubt that the recent data have race rised the chance a so-called landing. that's happening without a contraction or activity. but in our mind there have been

things that mitigating policy and bank lending standards including, for example, excess savings in the economy and the fact that loan and bond maturities have been longer compared to before, but we think ultimately the weakness is coming we study the lags of monetary policy to activity over time and we found that generally speaking, the peak impact on macro of monetary tightening tends to be around 18 months at the start of the hiking cycle and that would mean toward the end of the year, we're going to get to the peak impact i also think to really get inflation down to 2%, you probably need some loosening in the labor market, so central banks will keep policy tight to ensure that inflation ultimately moves toward 2%. >> so perhaps higher for longer. i also love the concept of

immaculate disinflation. that's a very good term. one last question for you. where do you see the opportunities right now? i think earlier on you see some value in owning gilts. which part of the curve, where are you looking at being involved in? >> i think we like fixed income generally at these rate levels, and i think there are arguments to be positioned across the curve. you have high yields, and you can get very interesting yields for very low duration risk, but at the same time we don't expect the yields to prevail in the market for a very long time. and as such, you want to take some exposure in the longer end of the curve because you want to lock the yields which are not going to be there tomorrow or in a year's time. so i think it's a balanced approach across the curve. i would say generally speaking when it comes to jurisdictions, we tend to favor the

jurisdictions where the tightening cycle is more advanced or there is more priced in the curves. so on a relative basis, for example, we would tend to prefer u.s. duration to european duration as the ecb has more work to do as i said, uk duration is beginning to look attractive here despite the inflation uncertainty given the very high peak rate price and also jurisdictions like australia and canada, for example. if you were to offer a value here, given they're more advanced in the monetary psych >> wonderful nikola, thank you so much. thank you for joining me today on the phone now, check out the full breakdown of the latest prints and what it means to the bank of england on cnbc.com. also coming up on "street signs," while it's green across the board as the foot sea 100 leads the european boards

higher, we're going to come back and tell you all about the market action in a few moments, and be sure to start your day with all of the market-moving headlines directly in your inbox with the dailyopen subscribe or scan the qr code on your screen right now. 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.

welcome back to "street signs. let's get a check on how the markets are faring the stoxx 600 up 0.3% more than one hour into the start of trading, and, of course, the focus not just in the uk on the inflation data but around the world has been on the beginning of the earning season as the earning numbers have started to come thick and fast. yesterday a lot of focus on the bank's earnings that came out of the bank of america. more positive results in the u.s. out of jpmorgan's results citi as well a good start to the earning

season over there as well. some positive news at microsoft with the rollout of their a.i. subscription service that also led to a balance in the u.s. markets stoxx 600 taking their cue from the u.s., up 0.3%. this is the breakdown. you can see broadly we are trading in the green across all of these different indices right at the top, we've got the owner of gucci stepping down we're seeing positive numbers. and then ftse 100, we spoke about this at the top of the show a lot of focus has been on the lower than expected cpi numbers, which has led to a big boost and some of the interest rate-sensitive sectors in terms of homebuilders. this is where leadership is coming from. utilities up 0.8% of a percent

luxuries up 0.6% on the flip side we've got autos down 0.2%. we've had car reg strags come in slower basic resources, the mining sector, can't get a break down 1.5% this on concerns about the outlook from china. in terms of chipmakers, one stop we're watching is asml. they reported second quarter profits on 6.9 billion euros it could have lifted its full year sales guidance. the marginal reaction on the stock today up 0.3%. switching to kering, the stock is up 6% the ceo will step down

he has led the company since 2015 and will depart in september and will be replaced for what is being called a transitional period. gucci sales have fallen below arrival, struggling to bounce back as strongly as its competitors. you can see that with how the stock is trading this year. switching to autos, renault's first half sales jumped 13.5% to 1.1 million vehicles worldwide it comes after four straight years of declines for the french automaker. and euroaccounted for one half of the year of auto sales. it hit the 1 million mark in jeune climbing 18% compared to last year. battery evs are holding more than 15% market share,

overtaking diesel for the first time interesting to note that one total new car sales reached almost 5.5 million for the first half of 2023 amid a rebound amid the component shortages. this is a picture of the auto space across all of the different names today, marginally trading in the green. also coming up on street signs, wall street's big banks continue to show their resilience as markets shrug off the threat of a recession. we'll dive into the latest numbers from morgan stanley and bank of america in just a few moments.

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welcome to "street signs." i'm joumanna bercetche and these are your headlines uk inflation rose sharply coming in at 7.9% the slowest pace in 15 months raising hopes the bank of england will slow the rate chief secretary to the treasury john glenn tells cnbc the fight against inflation continues. >> there's no complacency with

the treasury we're working in lockstep with the bank of england as we try to get it down to its long-term normal of 2%. >> gilt yields drop sharply with the 2-year back below the 5% mark while equity markets cheer that uk inflation print with the homebuilders seeing their biggest rally since 2008. asml beat their second quarter expectations and ups its sales forecast as the dutch maker ceo reports the curves will have minimal impact this year and bank of america and morgan stanley have turned. bank of america's ceo brian moynihan says the soft landing is on the table. >> they have moved that out again, reduced it to two

quarters, not three, and lessened it to basically three of soft landing more or less welcome back to the show again, everybody let's take another look at how uk fixed income is faring after that somewhat lower than expected headline inflation number, also core cpi inflation number, both of those surprising to the downside. let me tell you, the first downward surprise in five months and the biggest surprise since july 2021. it's having a notable impact across the gilt today. we're about 15 basis points lower. 5-year gilt, 4.26%, 20 basis points lower, and most of it moved, 2-year below 5% about 26 basis points lower on the day. huge moves here. and what this is telling you is that investors have been very

quick to reprice the terminal rate path out of the bink of england, now with that terminal rate set to peak at 5.8% before today investors were looking for a turn of rate at 8% it tells you the inflation rate has been quite remarkable in terms of the impact it's been having as for the impact on currency, this is the picture. you can see the pound has actually slipped 0.7%. we're below 130. again, moving hand in hand with the price action we're seeing in interest rates the dollar/yen also in focus here just shy of 1 40e so 139.50 is where we're at on the dollar and showing that. the euro is trading sideways ecb officials said yesterday that they're allowing the end near their own hiking cycle.

this is the picture. all of the majors are seen opening up in the green. s&p, dow, and nasdaq all opening up slightly more positive. nasdaq up about 18 points. of course, the focus has very much been on bank's earnings we're going to talk about that shortly. lot me show you the close for s&p, dow, and nasdaq the dow ended up 1% higher, s&p up 0.71% microsoft rose too due to the a.i. subscription so that was a bright spot. shares of bank of america and morgan stanley spiked after the second quarter earnings per share and revenues bang of america saw earnings come in at 88 cents per share while revenue topped $25 billion

largely on the become of rising net interest income. the lender says it expects net interest income to come in at about $57 billion for a t year as a whole the u.s. is on pace to stamp out inflation and potentially even avoid a recession. >> inflation is getting under control. you saw it in the spending numbers today. you see that in the inflation numbers over the last few weeks, and that is good it would be great if you can still have this at whatever the unemployment rate is we feel that if the stability continues to hold in the market, you'll see that activity come in as you move out of the summer into the fall and that's important because that capital formation is what will lessen the possibility of it as the spending is part of the drill that makes america great. >> and morgan stanley posted

earnings of $1.24 a share and revenue of almost $13.5 billion. that was held by record results and its welts maalth management division james gorman told cnbc although he sees the end of the fed hike rate cycle, he doesn't see it ending soon. >> i think it's low, but if it happened, i felt it likely to be relatively shallow and short it's just not that big of a deal where technically we have a recession. what matters is if you have a deep recession that changed the unemployment outlook that's not happening, so the fed -- i'm sure they're going to raise it this week will they do another one based on the recent numbers? it's hard to argue for more rate increases, but a counternumber could push that. you could get one more number

after. this i think the odds are definitely against that. those are calling for a rate hike, that would happen. >> goldman sachs is going to be the last of the wall street names to report with the analysts split over how much of it will one-off during the quarter. earnings per share are seen at 3 $3.50. something to watch in terms of the context of all of these bank earnings that have come out. let's get out to the u.s. financials analyst from atlantic equities good morning, john great to have you on the show. let's start with the broad question i think many will be surprised at how resilient the bank's earnings numbers will be for the quarter. we started with jpmorgan on friday that started the tone. yesterday, bank of america, morgan stanley, also quite

positive as well. >> that's right. the numbers have been good what's been more important is the outlook has been even better the guidance increase has been really quite surprising, and that's really driven stocks higher. >> let me hone in a little bit more on bank of america. i think that's quite an interesting one. the surprised income rating revenue that jumped 18%, much higher than estimates and even though the equity trading slipped, it wasn't as much as some had anticipated that's a positive. on the flip side they disappointed on net interest income especially when you think of it in the context of jpmorgan what do you think is going on there? >> on the first part, they've been gaining more respect. i think they're trying to invest a lot in that and building it up so they have flipped some good growth for three courses in a

row now. we're generally seeing declines in that business on the income, you do have quite big contrasts and that's a large part of the revenues jpm jpmorgan, you saw a 45%, bank of america, 14% quite a differential there for bank of america, they've got a lot more of those assets in long investment securities they haven't seen quite as much upside jpmorgan kept more money in cash. >> indeed, that was well flagged with the losses. that almost $100 billion number. let me turn to morgan stanley. wealth management has been a really strong spot there is that likely to continue and do you think thatwill one of mr. ambagorman's legacies? >> absolutely. it's absolutely built out over the last decade.

a lot of the credit has to go to james gorman it's been part of his tenure, which has been focused on building up. now it's become a natural powerhouse of the business revenue is up another 5% year on year despite some of the headwinds in terms of the market what was most impressive was the asset growth at $90 million. that's 8% annualized that just continues on from a very, very strong first half so very impressive numbers it's a really good legacy for mr. gorman. >> on the flip side, i think investors will be watching keenly for goldman sachs results later on today for a while now goldman sachs has been disappointing to the downside and it does appear that it hasn't been as successful as mr. solomon would have hoped for. what are you going to be hoping for in today's results >> i think we ought to look at

some of the missteps that were taken. obviously there'll be write-downs. unlikely high provisions going through too. so i really want to see -- hear more about how the consumer operations, particularly apple credit card back through the first and i think subsequently management will admit it they're looking to exit that relationship as well i think in sharp contrast to morgan stanley, there are steps into consumer banking with real missteps the actual credit card and platform businesses has been very disappointing. >> are there likely to be repercussions on david solomon himself. do you think investors will start pushing for change at the top? >> i'm not sure about that there's been press speculation obviously, but some of the core

franchises within goldman sachs have been very strong within investment banking softbank remains number one and acquisition for several years. it's unfortunate that at the time the consumer operations coincide with the investment banking we've seen for several years and the trading side as well the powerhouse are the investment banking and trading operations and that's typically very weak. i thought the board would have looked through some of the temporary weakness and given the benefit of the doubt. >> i'm not going to let you go without asking you a regulation question they're releasing new requirements, onerous ones for residential mortgages. how impactful are those likely to be and which bank do you think would be affected the most >> there's talk that some of the capital increases could be almost 20%, which is pretty

subst substantial. on the positive side, banks are delivering a lot of capital increases. so the path to deliver ratios is very good and there's ample time to get that. perhaps the market would expect it to get there within 12 months rather than the three years the regulators would allow i think they're generating a lot of capital they're reducing the buybacks temporarily. that is a big increase if it works, it's difficult to say who would be the most inviting they would try to recalibrate the business they've spent a long time building up the operations you have fee based revenues. they feel having to apply a lot of operational risks is fairly ridiculous i think we'll have to see.

i think they'll be able to cope with it. i wouldn't single out any one bank they're all taking it in stride. >> excellent john, thank you so much for joining me today john haggerty, the financial analyst for atlantic you can find out why the mood is shifting and how investors are responding via the subscription service scan the qr code on your screen right now to find out more. and global stocks have performed unevenly so far this year with u.s. and japanese earthquake i thees outperforming. you can also find out more where they see the global markets moving and how they're positioning on cnbc pro as well. coming up on our own show on "street signs," tesla and

netflix anthr d eipremarket numbers. we'll discuss coming up next 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.

that figure would increase monthly prices for enterprise numbers by as much as 83%, bringing additional revenue through recurring subscriptions. if firm has announced it will add visible search allowing viewers to upload a photo and ask for more information that's a feature i've been longing for for a very long time. well, tell la is expected to record record-setting numbers according to estimates, this after the ev maker cliffed a record 466,000 vehicles in the three months ending in june, but that sales expansion is expected to come at a cost for eps growth, seen coming in at just 8% higher on the year amid ceo

elon musk let's move to prioritize market share over pricing. arjun, a lot of the unpack here. a question on a lot of investors' minds, whether the price cuts are going to lead to market share and the impact of the gross margin as well. >> so far we've seen success they've had a record number of deliveries of 466,000 cars in the second quarter and so investors right now are happy with this balance of what tesla's doing. they're cutting prices, gaining shares, and margins will continue to be under pressure. the market's fine with that for now and they are expecting perhaps to kind of be the trough for that sort of margin compression, but it's likely sitting at lower levels. the questionis what happens next year and is tesla given the market share gains they'll start ramping prices back up i think that's a big question. >> guidelines are something both of us speak to a lot

he's a very known bull on tesla stock. he posted something in the context of tesla he said the ancillary revenue that would come in for tesla on the back of their charging units and that other carmakers in the u.s. want to adopt the same type of battery charged units that tesla has is going to be a game-changer for them as a company because they're moving away from the many manufacturing of cars but they're providing the ecosystem around the electric cars as well. >> that's what you get when you're the first mover that's what tesla has done all automakers to some extent have a level of jealousy around tesla. they want to be tesla because of the way it's come to market, because of the brand power, and because of now the new areas it's expanding too the bulls are very excited about the ancillary revenue, they're excited about charging, and they're also excited about the software side of the business as

we move to a world in the future of more autonomous driving and what they can do in terms of subscription revenues, et cetera, et cetera, which elon musk has spoken about a lot. that's what they're excited about for tesla. right now the focus is on the big market shane gain, price cuts, margins lower, fine, but they will ramp up at some point, and that's what the markets are looking for over the next part of the tesla story. >> what about the unveiling of the cyber truck? >> when they unveiled it a few years ago when they threw heavy metal through the window to prove it was bullet-proof? there is, again, finally a new tesla product after a very long time and that's something the market has been asking for this is a lucrative market, the pickup truck market in the u.s we've seen ford already respond cutting the price of their lightning f-150 pickup as well

there are already fears on what impact it will have. >> hopefully no gimmicks this time. stay with me, i want to pick your brains on something else. new flex is also due to post its numbers after the bell with analysts looking for a windfall. definitive estimates put the sales at just under $8.3 billion up 4% on the year. so this crackdown on password sharing has actually worked out well for netflix at the time they weren't sure how they would take it but they've signed up to new accounts. >> that's right. the big number with netflix, the market is expecting a number of about $1.77 million. it comes really from that one-two punch really from netflix. firstly, the password sharing and crackdown but then introducing support here there are interesting some

stats. it's estimated around 100 million shared passwords and at least 50% could create their own accounts the ad board is attractive because it's cheaper, $6.99 a month. it's been two full quarters since they launched the ad so we'll hear a lot more about the uptake for that but also how much is it cannibalizing the subscribers to the higher price that's going to be a balance netflix is going to need to strike. >> how immune is netflix from the strike in hollywood it opportunity feel like it's going to end any time soon and now actors are involved. there are concerns it's going to impact netflix and other streaming giants to produce new con content. how are they expected to carry

the cost of it at all. >> i think netflix appears to be more immune than others given the fact it's been ramping up its production capabilities in south korea and india and outside the u.s. while the strikes are quite confined the u.s. at this point, netflix has other avenues for content. yes, i'm sure the u.s. capabilities are potentially going to be hampered, but you look at it globally. >> it makes them relatively well cushioned against what's happened arjun, thank you so much we'll watch out for tesla and netflix earnings coming up later today. let's get a reaction on the uk market. we had the inflation number coming in lower than expectations on the headline and core we're seeing a market reaction, notable market reaction across fixed income

2-year gilts now 25 basis points lower on the session 5- 5-year, 20, and 10 yooefrmt this as investors have pointed out the price. the terminal rate is at 5.8% we were above 6% before this number came out. finally the inflationary trend has come up in the uk. core cpi still at 4.69%. as for european markets as a hole the market is pretty positive across the bore. f board. a lot of the names are up 4%, 5% today in trading cac and france, they're up kering, the parent company of gu

c gucci, the ceo being replaced. germany is up. don't forget as well the election and the general election coming up in spain, something we're likely to watch. we'll see something change from the right to left. as for u.s. futures, this is the picture for today's market s&p down, nasdaq all seen opening up in positive territory. we had very resilient earnings yesterday with bank of america and morgan stanley surprisingly to the upside. all the attention today is on goldman sack they're expected to post quite weak results we'll get more information from that that is it for my show i'm joumanna bercetche "worldwide exchange" is coming up next.

it is 5:00 a.m. here at cnbc global head quarters and here is your "five@5." we begin with the stock riding its longest win streak in two years with futures pointing to more gains ahead. and investors and what could be goldman's worst quarter in years. and it's just banking. tesla and netflix getting set to report we reveal the number one metric you need to know for each coming up. plus, tracking a wild move in microsoft shares as it looks to monetize its a.i. initiatives. and later in the