i'm andrea canning. thank you for watching. good morning and welcome to "street signs. >> good morning to all of you. let's get straight to your headlines this hour. barclays shares slump as the uk lender post a 10% fall in investment banking income and cuts its net income margin outlook, but its reduced nims reflect strength elsewhere at the bank >> we run a balanced business, we run a high-quality business we want to make nim, but we want to make the right kind of nim

with the right kind of credit risk and you're seeing that play out in the numbers shell profits tumble 56% in the second quarter on the back of easing energy prices, prompting the firm to slow its share buyback program. the ceo tells cnbc that the company is powering ahead with its strategy >> the focus and what i said in new york is, we're going to be ruthless in our focus on performance, discipline and simplification and those are key. the fed hikes rates to the highest level in 22 years and refuses to close the door on more focus now turns to the ecb, which is set to raise rates for the ninth time in a row, but watchers will be looking for s signs that the halfway point may be approaching its end and meta shares rise on an extended trade after the social media giant beats on the top and bottom line and offers better than expected guidance for the third quarter, amid a rebound in

digital advertising. well, the earnings are coming thick and fast today, but let's just start off with one name in particular, and that is barclays the shares of the bank are in the red after the british lender cut its net interest margin outlook, despite first-half profit coming in ahead of expectations at 4.6 billion pounds the bank has unveiled a bigger than expected share buyback of 750 million pounds however, investment banking and revenue came under pressure. now speaking to cnbc earlier, the ceo said the bank was in a good position on return on tangible equity. so let's just take another look at those numbers, $4.6 billion pounds pre-tax profit. net interest income is the one that a lot of people are watching out for

but this number, the 3.15% is wlaelz caught the market's attention. it has come in lower than the consensus forecast consensus wassitting at around 3.23 the fact that they're guiding to slightly lower sent the markets into a bit of surprise that is the reason why we're seeing such a pullback in the stock today, down more than 5.5% on the flip side, what they have announced is this share buyback of 750 million pounds. even though the guidance was a little bit weaker, they are, indeed, providing this share buyback. let's get out to the ceo and listen to some of the comments that she provided around these earnings >> our target is 10% we're doing better than our target and what you've seen in the second quarter is a slowdown, a continued slowdown in investment banking deal activity, which has persisted well over six quarters now, and a slight slowdown in the markets business, which was very robust in the first

quarter. and what you've got as economic conditions in the world continue the fed hiked rates yesterday, and we're waiting for the ecb and the uk has, of course, gone high, is that people are assessing what is going on in the global environment and i think markets activity is likely to pick up as people finish their assessments towards the end of the summer and early in the fall. and we think, you know, we've noted that lots of deal discussions are taking place we are part of those but people who make decisions once they see more clarity and i'm fairly confident that would happen in the quarters coming up. >> i'm really cognizant of the fact that you've got light of the very expensive data sitting behind you, with listening to this next question but the fact of the matter is, you have a cost income ratio in the 60s area you want to keep for 2023 you want to keep the bankers at the same time that former staff have been warned about poaching those bankers as well. how difficult is it to keep the right investment bankers in the

right position with the horizon looking slightly better? >> well, we continue to investment in banking talent and in trading talent. you know, you have seen announcements we made yesterday for a new head of industrials in new york joining us from another bank we've hired bankers from some of the major bankers on wall street we continue to think that st important to build our franchise. we've got a number six-ranked franchise globally and we've seen in this quarter, we are number one ranked in the uk we are number two ranked in germany. and it's been a goal of ours to build upon the strength we have in the u.s. and bring it into europe in investment banking in trading, we have many, many -- you know, we are six globally, but we have many, many sectors that punch far above that, especially in fixed income and credit >> let me move to the other side of the business.

that's nims, as well you have had some pretty good nims in great britain. now expected to be less than 3.2%, with a current view of around 3.15. i'm interested is this self-inflicted ie, you'll deposit the deposit rates because of the political pressure, or is it the commercial pressures that is driving the diminishment of what was previously quite a fat nim figure >> it's actually a little bit of both, but it's more something that's different than that, which speaks to the quality of our client base. first of all, our uk nim, the thing that you're quoting coming down from 320 to 315 is just a quarter of our total nim so while we are very important major high street bank in the uk, we differ from the rest of them in the sense that we've got this large global investment bank the uk nim, which is -- which we've dropped our estimated on, is only a quarter of the total

why has it dropped it's dropped for a couple of the reasons you've said, which is increased passthrough in deposit and so on. but another part has been that we've been seeing increasingly people who are responding to higher inflation, high interest rates on their mortgages, use their savings to pay down their mortgages. i think this speaks to two things one, it speaks on the part of our customers to their own prudent financial management that's what they should do when they're paying higher interest rates, if they feel comfortable using their savings, they should use it to pay it down second, it speaks to the quality for our customers. we have generally been very conservative in our lending guidelines and we have a set of customers on margin who are able to do this and so what you see, as a drop in nim, equally, is a benefit for us downstream, because it will reduce our impairment risk. and that's what i mean by the balance. we run a balanced business, we

run a high-quality business, but we want to make the right kind of nim with the right kind of credit risk. and you're seeing that play out in the numbers >> and if you look at the market reactions, barclays shares are sharply lower today on track for their worst day, actually, since march, when he explained how he saw it recovering in the long-term. >> the gavel galvanization will continue to happen we're handing back distribution to shareholders. we reward our shareholders with distributions. you've got to do that. the second is to show them that you do this consistently one is actually performing and then identifying to them and demonstrating to them that you increase and maintain market share, that you operate well through the environment, and that ultimately, that you are good operators in the businesses in which you are

i think we have some wonderful businesses, where we are great operators. our uk business is topnotch in the investment bank. we are the leader in investment banking and trading. we are leading the european bank, and just behind the top five u.s. banks and catching up to them in many ways and we've got good consumer businesses in the u.s. so it's a good mix of businesses they're operating well we're delivering for the shareholder. keep doing it and the share price will react >> i want to ask you about something that you know i'm going to ask you anyway. it's a story that's dominating british banking, more than barclays numbers today, that is allison rhodes having to step down over at gnat west you and i both know allison, she's a fine banker, but made a big mistake. and when you have a shareholder that's more than 40% of the uk government, their say matters, even if it shouldn't really very open question, what do you think about the whole issue? about the banking issue and the interference that perhaps the government has played in the

demise of allison rose >> so on the issue at nat west, look, nat west has made a statement, allison has made her statement. what i would say is, and on the broader issue, i'll speak for barclays we do -- we tend on the individual side, if we're going to shut accounts down, to do so in very exceptional circumstances, primarily they relate to financial crime, fraud, and cost of service and we really welcome the efforts by the treasure -- the minister for the treasury here, mr. griffiths to standardize this approach among banks and i'm very, very strongly supportive of continuing to have customers despite any political beliefs or views that they might have or religious beliefs that they might have. so we should continue to keep customers, regardless of their views. strongly support it. allison, as you say, is a fine banker she's had a great careerat nat west, has been a great leader

and is a role model for many >> that's it, barclays ceo talking about the outlook for the business going forward and the challenges they're facing. i thought it was very interesting that he took on all the tough questions head-on. he did not dodge those questions or try to sugar coat the question he called it for what it is. net interest margins are under pressure and i thought it was interesting that the bank set close almost $900 million pounds, which is more than double the 341 million pounds that they put last year so the provisioning also went up >> if you look at what's happened today, the fact that the stock is down 2%, there are two developments that investors are focused on the first is the fact that their markets division has been disappointing relative to expectations and the research miss was across all divisions. that is notable. but he's saying that they are well placed, should activity start to pick up again in the future obviously, that's a big question and something that became apparent out of the other u.s.

investment banks as well on the other side of the business, the net interest margins, because we forget that barclays is one of the few high street banks that is very present in the u.s. domestic market, but they have this investment bank to go alongside it what he was saying is the fact that the net interest margins are coming in is a sign of the strength of the uk consumer. he's saying in the short-term, it's not very good for net interest margins, but further down the track, it's a good sign that our impairments will likely move lower as well and he's saying they're very being discerning about the types of credit lending at the bank is engaged in it's interesting to hear the commentary surrounding some of the disappointing headline returns we got out of them today. >> absolutely. i think on the net interest margin issue, was had jpmorgan

analyst talk about how this might just for the very short-term, as we've been discussing, lead to downgrades for the stock, because obviously, the net interest margins get squeezed but overthe longer haul, like he said, like he explained, things might be looking up. as of now, the competition intensifying, as well as the cost of living crisis that the people are facing in the united kingdom. >> and to your earlier point, i thought it was really pertinent and he didn't mince his words when he said, we would only ever close an account under exceptional circumstances. and those exceptional circumstances are namely in relation to things like financial crime. we would not close down an account based on a personal view for strong commentary there, but he delivered it in a way that was very respectful to the outgoing ceo

very interesting interview with the ceo of barclays. >> indeed. the stock has been underperforming the euro stocks 600 for a while, over many durations. coming up on the show, on the other side of this break, shares slip as profits in the second quarter plunge. more from our first on nbc interview with the ceo right after this break when we 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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welcome back to the show, everybody. well, there is a lot going on in the markets. overnight, we've been digesting that 25 basis point point hike out of the fed and whether they've got more in them today the focus for european investors is on the ecb. we've got another 25 basis point price hike in for today, but the focus will be on that forward guidance and whether or not they leave the room open for further interest rate hikes. in addition to that, we've had a ton of earnings hit the wires this morning i'm sure you were watching "squawk box" earlier steve did plenty of those interviews, but we're seeing a lot of movement in these as well all of them is trading in the

positive the likes of mercedes and volkswagen at the bottom of the index today. we'll get to those earnings shortly. vmp right at the top there in terms of bank earnings leading some of the gains in that an ex. at the bottom, we're still seeing some underperformance in luxury as well as the likes of airbus, disappointing earnings from them, too ftse 100 up 0.2% as we spoke about at the top of the show, barclays is one of the names pulling the ftse 100 down. let me get to some of today's key earnings, in addition to barclays, shell also pulling down the ftse 100, down 1.8%, disappointing profits in line with the dip in commodities pricing we've been seeing. airbus down 1.8% they've readjusted some of their product targets. that's why they're trading in the record now up 4%. so a positive results out of the french lender. a very diversified business,

especially when you screw it up with the performance of barclays today. very similar set of results out of nestle today than what we got out of unilever the beginning of the week strong pricing momentum. they've lifted their guidance for the year that's being met positively. and in the office space, a mixed bag. volkswagen up a fraction but let me give you more commentary surrounding shell today. the stock is down 2%, as you can see. they have reported $5 billion in profit in the second quarter that is down 56% on the year amid falling energy prices the energy giant upped its dividend to 33 cents now speaking first on cnbc, the shell ceo stood by his new strategy direction, despite criticism from some shareholders and climate activists. >> we have a balanced energy transition strategy. what we are looking to do is to be able to do the right things

for now and for the future, both for our shareholders for the planet and what we announced in capital market stage just a month ago is that we are focused on creating more value with less emissions what that means is we will continue to pull all the levers to drive further value growth in the organization, while at the same time, we will continue to meet our aggressive emissions reduction targets, both for our own emissions as well as for our customers. >> this speech yours, the new york speech, as people are calling it, where i think you were quoted as saying you were going to be ruthless in the pursuit of higher returns for shareholders as well there is a whole bank of shareholders who are saying, how is it that shell and its european peers is trading at such a large discount to those of the u.s. energy majors? but is it inevitable that there will be a discount for a whole host of structural reasons, plus the fact that the european joirs, of which shell is at the front, have just got a different attitude to their transitioning

strategy >> i think the focus of what i said, we'll be ruthless in our performance on oil and gas business and energy transition businesses the way we're going to be able to actually steward the company through the energy transition is by delivering shareholder returns and doing it in a scaleable way for the coming years. and so that's where we're really focused, just to make sure that we are driving that well on your point around the valuation gap, we do think that the actions that we have announced at capital markets, they could bridge a significant portion of that valuation gap. we have already announced that we will be more disciplined with our capital, bringing the range down to 22 billion in '24 and '25. we have announced a $23 billion opex reduction and all of that will result in some 10% per capita growth that in my mind will be a compelling investment case for

our shareholders >> moving forward and talking about more earnings in mercedes benz reported a 14% jump in net profits for the second quarter to more than 3.6 billion reassure owes on the back of $38.2 billion in sales this after the german automaker upped its earnings guidance for the year in a pre-release yesterday evening, saying it now expects a bid, earnings before interest and tax to come in flat on year versus its original forecast in fact, he was asked whether the firm can pass on inflation to its customers >> every company is working on keeping their costs under control, so we can see some easing now on the commodity side there was a spike on some of those raw materials. it's starting to come back down. and then, you have to work on your productivity. some of the wage inflation, i think it's the task of every company to compensate that

through productivity so we hope and think that in terms of our business, both on the one and on the other side, that that is a transitory issue that we're dealing with and not something for the long-term. >> let's look at the demand for electrified vehicles as well currently, still nine out of ten your cars sold are combustion engines. when do you see that changing, especially as you put so much money on that electrification of the fleet? >> so we grew by about 100 in the last six months. we've had dynamic growth and a good reception of the vehicles that we have put into the market but i think we have to realize that the transition to zero emission driving is really a marathon and i believe we are maybe on kilometer eight or kilometer nine on that journey right now so so it's not something that we should look at as a sprint

the strategic direction is clear. we're investing into the future. we're going to go zero emission, but i think you need to maintain some ftechnical flexibility during that journey and right now our production network is flexible to produce both combustion engines and electric vehicles >> can keeping it with european automobiles, volkswagen has reaffirmed its financial outlook for the year, but tempered its delivery forecast, that's despite reporting $80 billion euros of sales in the second quarter, a more than 15% jump. the auto giant says it will work on improving its net cash flow in the second half in fact, the cfo of the business explained that the reasons are pretty much evidence for that going forward. >> our strong operating performance is not 100% reflected in our cash flow we had a strong growth cash flow, but that didn't really come through on the net cash flow basically, two things, first and

foremost, we invest in our future, in terms of r&d and in terms of cap x we speed up the transportation and second, a lot of funds are currently tied so we were not able to deliver all of our cars to the dealers and eventually to the customers in time. and that led to a pent-up and a lot of capital was tied in inventures and this was a reason why our cash flow in the first half of the year was muted we took deliberate positions to debottleneck the value change, and based on that, we are confident we can achieve our cash flow target of the lower end of the $6 billion to $8 billion range. >> why couldn't you deliver the cars in time to your dealers and customers? >> the whole industry is stepping up currently. we came from a situation where the industry had a bottleneck of chips, so the whole industry was

able to produce enough cars. and now this bottleneck has eased, and we can produce normally almost at normal speed. but all of a sudden now, we are lack reputation capacity trains, ships, people at the ports. so this is the reason why we were not able to deliver all of the cars to the customers in time we would have loved to deliver them, was we are working on de-bottle necking, and based on these measures, we're confident that we can achieve the lower end of our cash flow guidance. >> well, lots to discuss let me bring in the portfolio manager and ceo of clean energy transition it's wonderful to have you with us on the show i don't know if you remember this, but i interviewed a couple of years ago and you were trading carbon credits back then >> that is correct >> before it was trendy. now everyone's in the trade. it's great to have you back on again. >> thank you >> we spend a lot of time on this show talking about what

different companies and sectors are doing to meet those net zero emission targets very topical this morning. i know that you have recently don a lot of research on vehicle emission standards, road transport oil demands. what are your findings showing in that space? >> so my findings -- so if you would think about about why is kind of the current view, if you look at international energy agency or bp statistical review wibld say peak oil demand is somewhere like 2030, 2035, not much to worry about. the reality is that we are just about at peak oil demand right now. so this year, you have some growth coming from -- mainly because of covid it's china reopening, airlines coming back. but that's gone. and then you have like half a percent or so of growth. and this half a percent growth

is consisting of a bit of decline in developed countries and then offset by growth in developing countries so the decline in developed countries has been like 1 to 1.5% per year, roughly we are now at the absolute inflection point and they are kind of highlighted on your show here that is going to go to 4 to 4.5% and that means that we are going into negative oil demand growth. >> so much there to unpack let me bring it back to the oil companies. we had shell's ceo on the show earlier. and one of line of questions that my colleague, steve, was pursuing with him is how as an oil company you can straddle the divide between climate activists on one side who keep pushing fur further reductions in hydrocarbons, versus on the ore side, your shareholders who want to see the return on investments. do you think oil energies -- oil companies are well situated now given what you're saying about

potential peak oil demand coming sooner than markets expect at this point >> no, i don't think so. i think they have to manage the decline. in reality, i think that is what they are doing i think they are executing well. i think shell used to be an everything to everyone, but they are simplifying it and focusing on what they can do. but they are acknowledged that they are in the sunset business. >> i want to get your thoughts, when you talk about peak oil demand, how much are you factoring in terms of the china recovery here? the ieae is saying the second half of this year, they're going to bounce back, china is going to bounce back we know what's happening in china. >> this year we are going to have something like 2.2, 2.3 million barrels of year over year growth. that's a $100 million base if you break that drown, 1 million is coming from airline recovery, globally that has rofrd now the other million is coming from

china revcovery it's very, very low in china let's remember to be a driver of the change i'm talking about is what is happening in the transport sector and it might be hard, we're sitting here in london to believe it, but the reality is that china is well more advanced on this than we are in europe. you know, 40% of chinese cars are already electrical and they are pushing ahead a lot. so even china will have -- they will not probably decline, because the country is getting richer, but they're not going to grow significantly >> it's interesting, the per capita income has really gone up for people in china. i do want to get your thoughts in very quickly, since you touched on evs we heard from the volkswagen ceo. i want to get your sense on how you see the story panning out for some of the european makers who are wanting took the eu route and who's taking the full

position here. >> i think autos is an amazing interesting sector from capital markets. because the view is that evs are great, combustion cars are awful. if you then look at results, it's absolutely the opposite the automakers are making a total killing on selling combustion cars right now. you saw yesterday, stellantis, suddenly they posted 70% ebitda margin, which is three to four times what they used to do mercedes is not breaking it out the in the same way, but the reality would be the same. they posted 40% margin, probably 20 on combustion and 0 on evs. really what's going on here is that the auto industry is pushing out evs, because that's the rationale to exist if they don't push out these

evs, they can't sell the other cars and even if i'm saying that, of course, that's a share of combustion cars are going to go down over time, they have absolutely zero incentive right now to push volumes. they are just going to keep prices high, and hope that people buy them. so, but of course, they have to be in evs, because otherwise, they are dead in 2035. so they are preparing for the future, and in the meantime they are meeting the combustion side. overall, it is great and these stocks are super cheap. >> and the deflationary pressure that's coming through on ev side led by tesla i want to let you go, i want to ask you about coming back to what you said in the beginning, that we're close to it what does it mean for opec, opec plus cartel, the market follows very closely all of the decisions that have come out of the cartel, but the oil price doesn't seem to react to the fact that the saudis have been reducing production. what's going on?

>> so in a growing market, time is your friend we just need to wait a bit and things tighten up. in a declining market, time is your enemy you have to keep cutting, keep cutting, keep cutting. i would say the more negative growth is, and the less cooperation you have, and remember, the last opec decision, really, they were doing it on their own. and it was less than 10% of the overall market i would say, if my forecast is correct and i'm very sure it is, because it's really driven by regulation, you have to believe that it has changed environmental and if anything, i think they're going tighten, it's going to break, because it's -- it's going to break, because you can't get kind of -- >> what's going to break the oil price or the cartel? >> the cartel. and the fact is that since, you know, there's been a period where the cartel -- the cartel

has been there since 1974. there was a period '90s, 2000s, that oversupply was so much, they couldn't jack up the price. but for most of the time, the oil price since 1974 has been artificially too high. if the cartel can't cooperate, you go up to $35 and meet $35. >> that is definitely not priced into market. great to have you with us on this show. i'll pick your brains when you get to $30 >> over what time horizon? >> it's going to happen, you know how markets are, if that decision happens, this happens on open. but i think it depends on the recession. if you have a recession, i think it can happen next year. if the economy keeps going on, you're talking 26, 27, something like that. >> excellent, thank you, sir really appreciate having you around the desk. the portfolio manager of clean energy transition. and also coming up on "street signs," the fed hikes

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welcome back to all of you these are your headlines this morning. >> barclays shares slump as the uk lender posts a 10% poll in investment banking income. the ceo tells cnbc thats reduced nims to reflect strength elsewhere at the bank. >> we run a balanced business, a high-quality business. we want to make nim for sure, but we want to make the right kind of nim with the right kind of credit risk and you're seeing that play out in the numbers >> shares tumble prompting the firm to slow its buyback program. he tells cnbc that the company is powering ahead with its strategy >> the focus of what i said in europe is we'll be focus on our

performance and simplification and those are key. >> the fed hikes rates to the highest level in 22 areas and refuses to close the door on more, focus now turns to the ecb, which is set to raise rates for the ninth time in a row, but watchers will be looking for signs the hiking pathway may be approaching its end. >> and meta shares rise in premarket after the social media giant beats on the top and bottom line and offers better than expected guidance for the third quarter amid a rebound in digital advertising. >> the preserve has resumed its tightening cycle, while hinting at more hikes to come. they lifted its overnight funds rate to 2.5 to 5.5%, as expect,

it's highest level in years. it's pricing in a 22% chance of a hike in september and a 38% likelihood of a november hike. >>, speaking at the performance, when the fed might start to bring rates down >> we'd be comfortable cutting rates when we're comfortable cutting rates. tha. that won't be this year, i don't think. that's just going to be a judgment we have to make then, a full year from now and it lbt how confident we are that inflation is, in fact, coming down to our 2% goal >> the other events of the week, a 25 basis point rate is what they expected from the ecb decision, with traders eyeing president christine lagarde's press conference this afternoon. harmonized inflation stuck at 5.5% in june

that is down from may, but core inflation increased in the period to 5.4%, leaving an uncertain path for the central bank as pmi indicators show the first signs of an economic contraction. annetteta is live in frankfort with more. the outlook going forward is a little more uncertain, isn't it? >> exactly i think we can expect the ecb to reiterate its stance that everything is very data dependent. and in we can't like expect committing herself for another rate hike in september especially given that we will be se seeing they are worse than expected and that could factor in a new round of staff projections by the ecb

in september when they have new data, also what they think about the inflation trajectory, of course, but also how the cooling of the economy will reflect inflation going forward. then they will make an assessment, whether there needs to be more hike or whether it's time to pause. clearly, the governing counsel in southern europe, they are very concerned about what this fast tightening cycle will mean to their economic outlook, especially in countries like portugal, but also italy there is much concern about these higher rates and the tightening could mean they could be headed into a substantial crisis, on the labor market side of things, because clearly many people there don't earn as much on average as in the northern hemisphere, where economies are much richer. having said that, of course, the

inflation outlook is key for the ecb, and they have been very vocal about the fact that they are willing to sacrifice growth big-time to get inflation back to its target. but when we look over the coming weeks and months, the summer period, that also and suspected that we're seeing an uptick of inflation here because of the service sector phillip lane has been telling me that this can well happen over the summer period, but the long run-term perspective, whether they are going toe see round effects, that is crucial for the outlook and the interest rate depends on whether they think substantial second round effects will push inflation even higher or whether they think the economic downturn will bring inflation rather sooner back to target than previously expected.

>> lovely. well, i'm looking forward to covering the event with you in a couple hours' time do not miss it >> yeah, don't miss that coverage i want to mark that ahead of that important position. we are looking higher by a percent and a half i think a lot of that comes from the fact that a lot of companies that have reported earnings in this part of the world it seems that a lot have impressed on top-line and bottom line performance smi as well as the ftse have been trading higher by about 1%. and that's the case of the german market. german futures, it's obviously been a good, good run for the markets overall. the implied open suggesting that we could be in for another

rally, now that the fed deegs is out of the way, especially with the nasdaq expected with 65 going for the dow jones. i want to talk about the news maker, meta shares are higher after the tech client beat and advertising revenues was up in the second quarter, returning to double-digit growth for the first time since 2021, popping in pre-trade coming up on the show then, stronger emerging markets left the first-half operating income. the ceo joins us next to talk more

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removed its a-320 intermediary target for production. >> actually, we have not changed the medium target, but we've

been using since the pandemic, the reference to 65, rate 65pe month, because this is what we had, when we entered into the covid-19, beginning of 2020. and we used that pre-covid reference, but it's no longer a relevance, as we all know, moving towards rate 75 assembly lines instead of 8, and we have changed the numbers of assembly lines, which is not the majority of what we use. and maybe very more important, we want to take all of the supply chains with us, to rate 75 so we want to use that reference as the absolute most for all the partners in the suppliers and for ourselves as well that's why we use that 75 reference as a hard reference, and we think the reference to pre-covid is no longer relevant. >> okay, so you mentioned a supply chain just now, and you

mentioned that it'complex opera. so tell us how much visibility do you have and how is it getting any better >> well, it's a mixed situation, depending on the suppliers themselves we continuethe business,

saint-gobain ceo is joining u in terms of the margin, given pressures on raw material costs and how that tallies up with your pricing strategy going forward. >> so thank you for having me. it's true that saint-gobain had

record results once again, this is the third consecutive year of consistent performance. it's true that we have also guided the market, that we are going to have the double-digit margin in 2033 this is primarily because of two reasons. one is the last four to yofive years, everything we did, we have positioned ourself in a very clearly, in a fast-growing market the growing markets like in europe, if you see, it's energy-efficiency related market, otherwise, it's not america, emerging countries. these are the countries where we see significant opportunities for saint-gobain and make an impact the second is having this argument, which is decentralized, empowered, and charring that the local managers are able to take the decisions so when you ask this question about inflation and the pricing,

i think when you have an audition which is close to the customer on the ground, taking the decision, you are anytime better off, you would make a better intelligent trade-off to ensure that you take care of the customer through solutions, bring a lot of different value-added solutions to them on the table, and you're also able to get more by the share, the wallet of share from the customer , all in all, we are excited about it, we are consistently investing on an identified growing market when you look at the capex of this year, it's 15% more than the last year, but it's primarily on the growth capex, and we optimize the maintenance capex. i'm very confidence of this year >> and what about funding that growth capex you're doubling down efforts in north america, where acquisitions are also in canada. and given the sensitivity the

market is facing on the economic front as well as on rates and inflation, how do you look at that scenario playing out? >> if you've seen the last four to five years, they have made a radical shift in the cash cul culture. it's become a a consistent factor it is not only taking care of all the growth capex, but we have taken the large part of the acquisition, like you said, in canada, u.s., and fade through the generation of cash our debt went up very small. and we continue to have a strong

balance sheet. >> very quick question i want to ask you about geographic distribution. you're seeing a dip in europe, but you are seeing good growth in the meramericas and 6.4% groh in asia. is that going to affect where you make your investment decisions? >> if you look at our investments in the last few years, we have made a conscious effort to move out more from the new construction market, which is going to suffer in the urine market, and sometimes it's important to recognize that. we are focusing on renovation. if you take the last 12 months north america is clearly, we see structurally, a very fast-growing market. because there is a shortage of homes. you can see that the inflation is coming down significantly now. the 3% of inflation in the last

two years. there is clearly a migration flow happening and this is the company where economically and financially, it's still a very strong country. >> very clear, sir we appreciate you taking the time to chat with us let's just get a quick check on u.s. markets. obviously, we are following the price action after that fed interest rate decision yesterday. 25 basis points, keeping the door open to further interesting hikes, but another major event is coming up later today, and that is the ecb. a 25-basis point hike is also priced in there. but as ever, the preference will be keenly watched. >> i'll be watching out for your analysis and your breaking down of the decision that comes out later today. that's it on the show from me and majona >> worldwide exchange is coming up next.

it is 5:00 a.m. and here is your five @ 5. the dow riding a near historic win streak looking to match a record hit more than 100 years ago. jay powell leaving the door open for more not just the fed the european central bank releases its latest policy today. all but certain it will follow the fed's lead. the biggest day of the earnings season which has so far been a catalyst in sending the market higher. shares of meta are popping and doing something for the