it is 5:00 a.m. and here is your five at 5 a rough session for wall street yesterday and new concerns over the u.s. banking sector. and a similar picture over in europe. italy backtracks on a historic wind fall tax. also in china, deflation fears front and center with new inflation data coming in worse than expected. plus, disney set to report results after the bell announcing a major sports betting deal with penn entertainment. later in the show, the white house reportedly set to release

new investment restrictions tied to china it's wednesday, august 9th, 2023, and you're watching "worldwide exchange" right here on cnbc. ♪ good morning welcome to "worldwide exchange." i'm frank holland. let's get you ready to start this day as always kick it off with a check on u.s. stock futures. right now we're seeing them in the green across the board open up about 08 points higher nasdaq, more than a third percent higher in the premarket after a rough session for stocks yesterday. investors digesting the moody's downgrade that sent major u.s. officials sinking. goldman sachs closing 2% lower, citi down 1.5% and wells fargo jp morgan largely spared in this situation. this morning, we're seeing a bit of a mixed picture take a look at how the stocks are performing right now in the

premarket. we're seeing some of them still in the red as you can see, goldman sachs, jp morgan fractionally lower, bit of a rebound for bank of america, half percent higher, wells fargo up .25%. bond market, as always, start with the benchmark ten year. yield right now at 4.01. ten bases points lower than it was a week ago also seen the curve decline. 30-year tick up very slightly. turning back to banks and developing story out of the europe italy appears to be backtracking on yesterday's surprise announcement of a 40% wind fall tax on profits of the biggest banks. here is much more on this story. good morning >> good morning, frank you're certainly right that story has been making waves across the night and into this early morning trading picture. it has turned from what we saw yesterday. this is the story. italy's finance ministry saying

it will cap its planned wind fall tax to 0.1% of risk weighted assets what it says is an attempt to safeguard. analysts from citi saw the tax reaching this comes after the shares in italian banks fell sharply yesterday on that original announcement in that trading picture. it did hurt quite a few of these. italy's biggest bank yesterday losing quite significantly, back up 3.3% to recover somewhat of yesterday's trade. 4.5% gain for unicredit down quite substantially. all of these were down yesterday more than 3% gained across the board there. so recovery is in play the question is, just how much, frank. >> thank you very much sticking with that overseas action, china reporting july inflation over night, fueling

fears of deflationary problem in the world's second largest problem. eunice yoon is in beijing with much more on this story. eunice >> reporter: thank you a lot, frank. unlike the u.s. and europe, china is struggling with falling prices for july, both for consumer prices and the ppi, we saw drops into the deflation territory cpi minus 4.3% the ppi was slightly worse than expected the consumer price is a little better than expected even so, this has been fueling a lot of debate as to just how long we would see this weakness in prices. a lot of people have been pointing to the food and -- the core cpi for july which was the highest since january. so that strips out some of the food and energy prices also, china itself has been down playing the concerns, saying

that consumer prices are likely going to tick up by the end of the year still, others are saying that the services inflation was a little bit better. especially when it comes to tourism up by 13.1% from a year ago. however, of course, the big concern is about the slump in domestic demand, especially ginn that the export figures were also very, very weak surprising many around the world about what this means both for the domestic demand as well as the demand for chinese goods overseas and frank, spelling a lot of trouble ahead for the chinese economy. >> eunice, thank you very much eunice yoon live in beijing. what's happening on wall street, founder, ceo and ci, of decatur capital and cnbc contributor. great to have you here. >> thank you good to be here, frank. >> i want to circle back to one of our big stories, the financial sector something you've been watching

as well. bank stocks dropped on the moody's downgrade. over the last week, they're still positive following that downgrade and some of the warnings downgrade of bigger banks like jp morgan and citi, what's your view on financials >> we're actually in a recovery mode we had the stitch downgrade few weeks ago. same thing happened with the banks. same thing with moody's now. the banks will recover from this banks are still down some 24, 25% since the beginning of the year but we still think this is a time to get into banks we're starting to really start to invest back into banks in this period. >> all right so obviously this week we have cpi coming up, closely watched inflation gauge by the fed what are your expectations for cpi, how do you see it moving the markets if it comes in hotter than expected looking at the cme, more than 85% chance of a pause. how much of it we're seeing in the markets, limit disruption lately based on the idea we have

reached the end of the hiking cycle? >> frank, we have seen most of the hikes already. what we have seen is that we still have that sticky cpi that we really look at because the atlanta fed did a lot of work on the sticky cpi and flxable cpi the sticky is starting to come down so we could see that the fed could do one more or two more rate hikes we're seeing the fed needs to control the sticky cpi it's still at 5.8. we want to get that down lower. >> you're saying we're near the end. but there could be one or two more. >> we have seen most of the hikes already. we went a long way. >> you don't think one hike or two hikes makes a big difference, is that what you're saying >> exactly. >> very interesting. it seems like there's some stress on the markets right now, but if you're saying you don't believe that as we look ahead to today and the rest of this week, where do you see opportunities in the market >> well, we see opportunities is

that we're looking at international markets also we see a lot of value. let's talk about india we started talking about china and the problems there what's happening india, india is benefitting from that because they're seeing relocation of manufacturing from china to india. you have strong, little class growth there, gdp growth there over 7% plus you have a skilled labor market so we're seeing some benefits there. icic bank, bank that's benefitting from that. we're looking at those international markets because icic bank has really strong earnings expectations and revenue expectations going forward, return on tangible equity of 15% so we really like that stock. >> looking for opportunities in india. something to watch great to you here. thank you for being right here in the studio. time now for a check on this morning's top corporate stories. our silvana henao is here with those. >> good morning. disney striking a $2 billion

deal with penn entertainment and its bar stool sports books now known as espn's bets starting this fall. as part of the ten-year agreement, disney will receive $1.5 billion in cash and warrants worth about $500 million to purchase shares of penn the stock is soaring in the premarket hours. we'll talk more about this deal and what it means for the gaming sector when we speak with the ceo of parent company of fanduel later this hour. president biden reportedly set to sign a new executive order today that will ban private equity and venture capital investments in some chinese technology companies dealing in chips quantum, computing and ai. the move is an effort to prevent beijing from developing cutting edge tech for its military, but critics argue it will have the opposite effect. and amazon is reportedly in talks about joining a consortium of other technology companies including intel and nvidia to

become an anchor investment in softbank's arm ipo arm plans to lift back in early september, according to the reports, seeking to raise 8 to $10 billion, frank wmplgtsds could certainly be a big deal. a lot more to come on "worldwide exchange," including the one word that investors have to note today. first, opec on alert as china dips into deflation. what that could mean for oil prices here at home. plus, from 47 billion to 300 million. the latest chapter in the down fall of wework just written. we'll have much more on that story coming up. then later, getting ready for disney and what, if anything, this stock can do to get out of its recent slump. we have a very busy hour still ahead when "worldwide exchange" returns. stay with us ♪

welcome back to "worldwide exchange." we're watching the price of oil this morning you see it's up. wti up almost 1%, brent crude just a tick lower. these numbers come in this morning on the heels o that have weaker than expected chinese inflation data and growing fears of inflation taking over the world's second economy, the news adding conviction by the decision by saudi arabia and russia to cut through september. they look to make up for the apparent demand. give us a sense. i want to go through the cuts russia and saudi arabia.

saudi is extending 1 billion cut. russia 300,000 barrels what does that mean for the global market? >> i think the saudis have been very, very clear they're going to do whatever it takes to essentially get this oil recovery to remain on track through the end of the year. what i think is so interesting, frank, is with the chinese economic data out this morning, you would think that oil would be potentially softer. again, i think it speaks to the strength of the saudi action in terms of supply cuts. >> so when it comes to prices, we're seeing a bit of a boost this morning long term, is this could possibly push up to the 90 bucks a barrel range >> you always have to look at this china story that has been one of the head winds for oil, big expectation of china back like gang busters. the import numbers have been solid. record numbers in june some analysts are saying it's going into storage but a barrel off the market, a barrel off the market.

so i think the saudis have been really resolute. the fact that they said they could go deeper is indications they're very, very convinced they have this if they just continue with the cuts. >> be clear, when you say import numbers for china, you're talking about oil imports. >> i think the issue is the question is, yes, we had record numbers in june. but softer in july for crude imports. they look good the first week of august the question is china is on a buying spree cheaper russian barrels. are those going into storage some underlying weakness means these import numbers won't hold. again, though, the data on chinese import has been sol it. >> you're not concerned about china. >> i think we're in watch and wait mode on china. >> other people are pretty concerned. >> absolutely. the interest rate story has been something again holding people back they're basically saying, look, we still have these existing

macro concerns i think that's what opec is reacting to. they're saying, not out of the woods. we're going to keep these cuts going, particularly the unilateral saudi cuts. >> china is not the only area of concern. we have to look at the situation in ukraine following the collapse -- >> go ahead. >> i think this is a bigger story. i'm jumping in right there, frank. >> please. >> i think end of year the story we need to watch is what is happening in the black sea this is a broader commodity story. the russians pulled out of the black sea grain deal infacto embargo on grain exports. they started attacking russian oil tankers in the black sea, trying to drive up tanker rates. not get enough attention it should i think this is an evolving story in terms of geopolitical risk in commodity markets. what's happening in terms of the black sea. >> so risk often leads to price moves to the upside when people have concerns. so, is this another factor that could push oil higher? >> i think this is something the

white house will be concerned about. again, remember the price cap policy, that was designed to keep russian barrels on the market at a discount if we start to see significant rise in attacks on black sea tankers, again, that will send insurance rates higher what will that do for oil prices this is an area of growing concern, i think, what's happening in the black sea also a food story as well. >> absolutely, a food story. broader commodity story. what's your outlook when it comes to wheat prices? obviously the ukraine region a big exporter of wheat. >> what's interesting is we haven't had wheat prices soaring in part because there's been an abundant russian wheat harvest the russians are taking out a competitor by blocking ukraine's exports. but again, this will be something of grave concern as we get into the lasting story about basically taking ukraine's exports off the market that will be a concern for big importers. who is big importer of ukrainian grain, china it will be interesting to see what china does in response to

this russian policy. >> all roads lead to china you know the question before i can ask it thank you for being here. >> thank you for having me. coming up on "worldwide exchange," what apple plans to do with its phones that may pinch a number for a number of its users. much more of "worldwide exchange" back after this.

turning to washington and the commerce department

upgrading progress on the chips act signed into law one year ago today. they have received 460 statements for interest for funding to date and more than $230 billion in promised investment from some of those firms. a closer look at the chips act and the challenges that are still in its way >> reporter: the $53 brake light chips act celebrates one year since being signed into law and semiconductor companies across the u.s. promised to spend over $200 billion on chip manufacturing hubs even though no federal funding has been awarded yesterday. the commerce department is swamped with over 460 company requests and is hoping to start distributing funds by the end of this year. >> you know, i'm pushing the team to go fast, but even more important to get it right. >> reporter: much like silicon prauser where i am right now are able to begin construction without receiving government aid, but other chip companies have had to put their plans on hold until that chips act

funding is dispersed. >> the back end semiconductor manufacturing sector operates on very thin margins that don't make it possible without the chips act support to do this. >> reporter: but as the shovels hit the ground to begin construction, companies are realizing how difficult it is to find labor. >> work force is the predominant theme that all companies are talking about. the ability to have a work force that not only is passionate about semiconductor manufacturing, but there's a pipeline that continues to produce and grow talent. >> reporter: tsmc is the first company to publicly announce they're delaying their production to 2025 because a lack of skilled workers forcing them to fly in taiwanese workers. >> their experience in the unique aspects of those tools is what we're bringing a small number of taiwanese technicians in to support and provide assistance and the primary function they will have is to train and coach

and mentor the work force in the united states. >> reporter: the chips act authorizes more than $13 billion for work force training. but it will take time to ramp up those programs and churn out skilled workers. time now for your big money movers take two moving higher despite missing fiscal earnings. 27 cents per share compared to 33 cents the company is optimistic about the outlook saying confident in its game release schedule and sees green chutes and the gaming industry zip recruiter tumbling double digits after reporting earnings above indications the company posting revenue that dropped by 29% and guiding towards another 34% year over year decline for the third quarter, citing ambiguity when

employer's confidence will recovery. and shares of wework plunging on a warning over whether the company can stay in business the company saying in a filing it has, quote, substantial doubt about its ability to stay afloat after losing billions of dollars building and operating global portd folio of co-working spaces wework is coming off years of head winds following failed ipo back in 2019 and slump in office space demand during the pandemic the company hit its peak $47 valuation now set to open up the market with a market cap below $400 million still to come here on "worldwide exchange," an exclusive with the ceo of flutter entertainment, parent company of fanduel on the heels of up beat earnings. we'll be back right after this

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it's around 5:30 a.m. here in the new york city area. a lot more ahead on "worldwide exchange." here is what's still on deck, roller costar week for stocks. it rolls on as wall street adds banking sector fears to its wall of worries futures are higher. getting set for disney's latest earnings report they inked a deal to get into the online gambling space. italy backtracking on market moving wind fall bank tax. we speak about the global implications and what this could mean for global investors. you're watching "worldwide

exchange" right here on cnbc ♪ welcome back to "worldwide exchange." i'm frank holland. let's get you ready to start your day as always a look at u.s. stock futures. right now in the green across the board. the dow looks like it could open 70 points higher the nasdaq more than a third of a percent higher right now all this with the s&p, the nasdaq and russell off their fifth downed day in the last six. we're also looking at the bond market this morning, as always, the benchmark ten year yield right now at 4.01, pretty much the same as where we started this show declining 10 bases points just a week ago also looking at the energy market right now we're seeing oil take a bit of a move to the upside this morning. we're seeing wti 83.64, almost a percent higher brent crude lower. natural gas up half a percent. strong moves from natural gas in

the last week or so to the upside earnings, disney prepares to report q3 results after the close today. the boost being helped in part by disney's $2 billion with penn entertainment. starting this september, disney is relaunching bar stool sports book as espn betd. this is disney underperforms streaming peers up only 1% this year compared to netflix 48% gain and warner brothers up more than 52% let's get you the set up in the report with alex sherman, cnbc.com media and technology ro reporter alex, great to he you here good morning >> frank, good morning >> let's start with espn bet, what does this mean for disney overall as a media company now moving into the gaming space >> so, look, this is something that has been speculated for several years that espn might license off its name with a gambling partner she was more prevalent when bob

chapek was ceo bob iger has been historically resistant to it, but the news is that, look, they struck this deal with penn gaming. they'll get $150 million per year for at least the next ten years allowing penn to use the espn bet name and there will also be some equity warrants attached to that, some sharing of espn talent and potentially even espn programming that goes along with the app itself. bigger picture, it means that espn is looking for a new revenue stream it needs cash. it's the same reason that espn is thinking about bringing in a strategic partner, which is another story that, you know, i and others have been reporting on for the past several weeks. that stems back from bob iger, ceo bob iger's comments to david on the air a few weeks ago saying he was interesting in finding a new partner. >> clearly a lot of story lines to follow here the earnings numbers really quickly, profit to fall by 5% but a lot to talk about beyond

just the numbers in this report. so, you listed off a few thing what's the other big story line to watch in this earnings report and especially the call where we'll hear from bob iger >> look, this is not a great time for disney. you go segment by segment, linear advertising, not great, subscribers to linear tv, not good acceleration of cord cutting you go to the movie studio it's been kind of bomb after bomb for disney. elemental, haunted mansion, indiana jones movie. the little mermaid all of the recent movies have not done well. espn is clearly in some sort of strategic new phase here so, disney needs to give investors a reason to once again get excited about the company because if you look at the current results for almost every one of their division, maybe parks aside, there's not a lot of reason for excitement so, recently the cfo christine

mccarthy is not there anymore. perhaps bob iger talk a lot of the talking on the call. it will be interesting to see what reason he gives investors to stay with disney. look, maybe we're in a lull here, but we're going to be on our way back soon. >> yeah. i want to add one more, secret invasion certainly no mandalorian. they have issues on the tv side as well. >> yeah, of course. >> something that might generate excitement but not in a good way, the news that disney has an ai task force. i imagine most companies have an ai task force. the timing of this news seems less than ideal i would say for disney with the writers and actors on strike over some of these issues >> well, it is a big deal for disney ai is a bigger deal for disney than many of its other peers out there because of the marvel -- owning marvel ip and star wars ip it's very easy to replicate those characters in the background in ways that maybe other media companies don't have to worry about so, they want to put something

together right now so that they can move forward in this writer's strike to come up with an agreement that benefits both the writers and the actors but also disney. that's the importance of it. disney needs to become a modern media company. again, you mentioned it, their streaming losses are still weighing that company down we don't know exactly when streaming will become profitable so you can tick that one off also as this sort of being a lull for disney. even if streaming is the future, they need to make that a more profitable unit, so that's yet another issue for the company. >> alex, that just tells you how many issues there are tlch the disney plus profitability an subs at the end of this interview. a lot of other stuff going on with disney. report after the bell. alex sherman, thank you for being here. silvana henao, good morning. >> hey, frank, good morning. the federal reserve is stepping up its oversight of bank's

involvement in digital assets like crypto currencies the new program will focus on bank's partnerships with firms that are not lenders like fintech companies and the services they provide to customers. the fed also detailing a new process state banks need to go through to get approval for issuing, holding or trance acting in dollar-backed stable coins. shares of eli lilly coming off a record day as demand for a new diabetes drug mounjaro surges ahead of the fed decision on its use as weight loss treatment. ceo david riggs reiterating that bullish outlook on "mad money" last night >> it's my top priority is expanding the capacity of our ability to make not just mounjaro but other drugs like it in our pipeline to meet the challenge here, which is a great opportunity as well. people are frustrated when they can't get their medicine we understand that we're going to fix that problem. >> eli lilly rival novo nor

disreports tomorrow its stock is also coming off a banner day on some up beat clinical trials for wegovy obesity drug. apple appears to be moving the call hang a button as part of its new iphone ios operating version. frank, time to retrain that muscle. >> wait what they moving to the bottom right? >> bottom right? >> why >> i don't know why. i don't know i wish i knew. >> it was rhetorical only they know why. >> but why, right? >> the headphone jack. >> let's not go there. i'm still not over that. >> great to see you. turning our attention now back to the gaming space and watching shares of fanduel parent flutter falling in trade. its fanduel business turning a

profit our contessa brewer has much more and a special guest contessa, good morning >> reporter: frank, good to see you. they reported first half this morning that fanduel is structurally sound they beat expectations in terms of ebitda, the crucial gaming metric and average monthly players up 43% up, revenue up 63% with me this morning is flutter ceo peter jackson, fresh off the earnings call. mr. jackson, great to see you this morning or later in the day there in europe. >> good morning. lovely to see you, contessa. how are you? >> i'm great thank you. i want to dive right in on market share because we've heard this from some of your competitors, very focussed on how much market share they have in the united states flutter still comes at a solid number one with 47% market share, but draftking's gains are fanduel's loss by just a couple

percentage points. when you're looking at this, how important is capturing and retaining your players >> look, it's really -- we're really pleased with the performance we see in the firs half it's a record market share for us across h1 in the online sports betting space and we have actually taken share in igaming which we're pleased about. i think from our perspective, we have the best products in the market that's what's most important to help us retain those crucial customers. we required 2 million new customers in the half. we're pleased with the performance of the business. >> and you said multiple times on the call this morning that you were capturing 50% more revenue from the handle than your competitors how does your product play into that >> look, i think it's a really important point. we have nearly half the market for every dollar, we capture 50%

more revenue the way we do that, we're much smarter in terms of the way we price our products all of the history we have, all those global capabilities means we're much tighter and smarter around our pricing capability and have a much better product suite for the customers. those things on a combined basis means we capture that 50% more revenue from every dollar handled. and of course in turn we can invest that in further product development, additional competence and capabilities and partnerships and also into generosity for our customers that gets to where we're going and we're sure we'll maintain our trajectory and momentum. >> meanwhile, bomb shell news last night about penn and espn tie-up we heard from our colleague at cnbc alex sherman about the disney perspective on that can you weigh in here? number one, i know there were talks with espn and fanduel in the previous years about a

tie-up what's your sense of how much of an advantage your competitor penn gets out of this deal with espn >> from our perspective we have seen different competitors try to arrange themselves to try to take us on we're the number one player in the u.s. market with the the number one fanduel brand we know how hard it is to operate a sub scale business this is all about scale in the u.s. that's why you see us with such a big share and obviously draftkings in it behind us and then there's a very, very long tail of smaller companies it's a really tough market to be in investments are required to have a market-leading product they're not straight forward people are scrambling around trying to find ways to get themselves out of that very long tail operation running sub scale businesses is not easy we tried it in the u.s. and it was not an easy thing to do. >> frank holland back at cnbc

headquarters big year for your stock, up over 30% year to date are you still considering a u.s. listing later this year at the start of next year and how does this news with espn impact your plans for your u.s. operations >> we're very excited about the progress we're making to attain that additional u.s. listing as we stated in our release today, progress remains on track. we're preparing all the work we need to do to file with the s.e.c. and hope subject to working through that we'll be in place to have our additional listing in the states at the end of this year or very early next year >> our thanks to peter jackson, flutter's ceo. thank you very much. you know, frank, penn announces earnings this morning and then a call at 9:00 a.m. eastern time so we'll be on that call because there's going to be a lot of pressure on penn to explain the math about this espn deal and how they get the numbers they

think they're going to get. >> busy day in the gaming space. contessa brewer, i know you'll be on top of it. thank you for that interview. coming up on "worldwide exchange," italy backtracking on yesterday's surprise announcement of a 40% wind fall tax on profits of its biggest banks. that news sent the bank shares sinking. we speak with kate kelly on the new banking riff and if u.s. investorshlde rrd. ayith us bwoie let innovation refundsp with your erc tax refund so you can improve your business however you see fit. rosie used part of her refund to build an outdoor patio. clink! dr. marshall used part of his refund to give his practice a facelift. emily used part of her refund to buy... i run a wax museum. let innovation refunds help you get started on your erc tax refund. stop waiting. go to innovationrefunds.com you really got the brows.

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welcome back to "worldwide exchange." time for your morning call sheet. we're getting back to gaming jp morgan moving draftkings from mutual to overweight. this presents an upgrade opportunity. shares of draftkings down more than 6.5%. people downgrading data dog. steeple says management's conservative outlook makes rivals more attractive shares of data dog down fractionally in the premarket. and jeffries upgrading shares of eli lilly to a buy, boosting its price target by nearly $200. jeffrey says it's getting results to a in your opinion of its pipeline drugs opens door to potential cms coverage looking at shares of eli lilly up fractionally in the premarket. and time now for your global briefing we begin with china. dipping into deflation as efforts to boost the recovery of the world's second largest

economy falter pressure is mounting for beijing to announce more stimulus measures consumer prices dropping .3% on annual basis in july that's the first decline since february of 2021 president biden is set to sign a new executive order banning private equity and venture capital investments in some chinese tech companies dealing in chips quantum computing and ai italy will limit the impact of planned -- this sparked a stock selloff at biggest banks and bid to reassure markets. proceeds from that tax will not amount to more than .1% of a lender's total assets. on the news, ubs expects earnings erosion at 5 and 9% for italian diversified financials after cap from 20 to 27% yesterday. bank stocks on both sides of the atlanta getting hit from italy's proposed wind fall tax to moody's downgrading several

regional lenders and putting a slew of others on review let's talk more about all this with kate kelly, money and poly reporter at "the new york times" and cnbc contributor kate, good morning. >> good morning, frank thank you for having me. >> big headline with the downgrade. when you look at the stocks, kb and kre, still positive on the week big decline but still positive, what does this announcement mean for financials going forward >> well, i think what it tells us and the market reaction yesterday tells us that these mid size and small banks continue to be on shaky footing, at least in the eyes of investors. and it's a realistic fear because we continue to be in an inflationary environment, right? the fed has continued to hike after slowing in june for a moment there and you know, the cost of capital is rising. and there are a lot of concerns about whether these banks are prepared to weather a recessionary situation or a continued inflationary situation. they also have exposure in areas

like commercial real estate that have continued to be a little bit troubled and i think people are not ready to breathe a sigh of relief quite yet. so i think this was just an excuse for investors to sort of project some of their anxieties about the regional banks and some of the other more troubled lenders on to the stock markets. >> yes you mentioned the regional banks. certainly a lot of anxiety about them, concerns about deposits moving, just competition from the bigger banks but there's also that warning about the bigger banks that are generally seen to be pretty solvent. why do we see that so often with the bigger banks >> i think there are other matters affecting the bigger banks that need to be considered for example n late july, michael barr announced he was planning to tighten up the capital requirements on banks. this, of course, would affect the smaller and mid size banks as well because one thing he wanted to do was raise the threshold of the need to have tighter capital requirements from 100 billion in assets to --

sorry, 200 billion in assets from 700, right? so you're capturing a wider swath of banks there but the larger banks are still also going to face continued and possibly tightened capital requirements and there is concern that they may be exposed to continuing head winds in the economy. we kind of don't know what's going to happen in washington. although it seems like the energy toward true and significant banking reform on capitol hill has kind of fizzled since the failure of silicon valley bank and the banking tumble of months ago. >> i want to touch on the italy news italy obviously backtracking on the extent of the wind fall tax. but wind fall taxes are nothing new in europe. this headline, does it have any real impact on the u.s. financial system >> i think it's something that the more progressive type reformist like an elizabeth warren may look at with interest but it probably has no political chance here in washington.

i just don't see us levying a european-style profit tax on our large banks in the united states i don't think there's appetite in the white house, which wants to just see the economy slow and steady and is focussed on other issues at the moment and i don't think we have sort of standard bearers in congress who have the political support to get something done. you have a republican congress, obviously, and you've got a democratic nominated senate. but i just think they have other priorities on the agenda this year so i don't think we'll see that. but it is a reminder of how government can step in and tighten the grip on banks when the need seems to present itself and that need arises when you have bank failures, depositors losing their shirts potentially and market weariness it's something to watch, but i think early in any major reform. >> thank you for being here. ahead on "worldwide exchange," the one word that every investor needs to know

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welcome back to "worldwide exchange." time now for your wrap up. we begin with wework shares plunging on warning whether the company can stay in business the company peaked at $47 billion valuation is now set to open up with a market cap below 400 million. shares are down 15% right now in the premarket. amazon is reportedly in talks about joining technology companies like intel and nvidia to become an anchor investor in softbank's arm ipo also watching shares of rivian after they reported narrower than expected q2 loss and increase in vehicle deliveries and raising four-year production guidance. those shares up almost 2%. lyft popping on a solid earnings report and guidance and

dipping after the company hinted of renewed price war with rival uber shares down almost 8%. lucky player in florida winning the estimated $1.5 billion mega millions jackpot. the largest jackpot prize in u.s. history. markets poised for a higher open following rough day for wall street yesterday. futures are in the green across the board. my next guest is likely seeing a few speed bumps for stock high on her radar. victoria green, cnbc contributor and she joins me now vicki, always great to see you >> thanks, frank. >> so you see some speed bumps correct me if i'm wrong, those seem like speed bumps already but they say these come in threes what do you see in the near future >> i see us hitting macro head winds we have seen with manufacturing continuing to go down, leis still down.

everybody is acting like macro head winds and no recession coming priced to perfection like the markets are, any bad news, hawkish fed, tends to be harder for the market to digest because there's not a lot of wiggle room on the upside. so any time you see something -- concerns on sticky inflation, housing is extremely expensive, gasoline and energy prices may be ticking up again. core strips out food and gas, but those pressures might put upward pressure on the acceleration that we have seen and just by pause on the whole narrative that the fed is not going to go in september. >> i want to play off that for a minute because you're leading us towards cpi which is tomorrow. right now we're seeing futures very solidly in the green. when you look on cme, more than 85% chance of no hike. so how influential is that cpi report not only to today's market but for the rest of this week >> oh, hugely influential. we're going to have to see if it is continued the downward trend or gets stuck.

that will dictate. september is still a long way out. a lot more data drops between now and september. no august meeting. fed will hang out in jackson hole, wyoming. we have to see how it digests it sticky inflation here kind of takes away that narrative that it's not priced in for one more hike that we're completely done here and the fed is going to be more accommodative. >> but the bank downgrade hit the markets yesterday. but we're seeing them pop right back up again, futures in the green. is that confidence that inflation is under control and that cpi will come in line or cooler >> i think it's this market. we have had this market shrug off a lot of bad macro news and continued to go upward on optimism i think at some point all of these downgrades are going to matter they're going to start dragging on profits that's the problem have we hit peak interest in calm, deposit costs rise, regulatory requirements continue to rise, continuing crimp what they're doing on the lending side which will continue to crimp revenue growth

it's not that they're not profitable that's not what they're saying they're saying, hey, we're seeing heads winds to growing your profits. >> what is your word of the day? >> shakespearian tragedy think hamlet or mcbeth bubble, bubble toil and trouble. investors need to be wary for a plot twist in the markets right now when we're priced where we are. >> play for the day, company, etf stock you put your money in today knowing all these possible speed bumps that might be on the road ahead. >> it's fascinating what penn is doing with disney right now. i think that's a big upside for them they're getting rid of bar stool sports it's wonderful when a company can say i'm not going to anchor to the sunk cost if the partnership isn't working for me go ahead, buy you out and pivot to this wonderful partnership with espn bet. that's a huge brand name for them we were wondering how this was going to play on earnings. penn is one i'm watching and

then i still love my zooitis >> always great to see you thank you very much. thank you for watching we have "squawk box" coming up next have a great day

♪ good morning stock futures pointing to slightly higher open after yesterday's pull back. disney set to report earnings after today's close company just announced a big bet on sports gambling in the form of a partnership with penn entertainment. and wework once valued at $47 billion, now saying it has substantial doubts about its ability to stay in business. it is wednesday, august 9th, 2023, and "squawk box" begins right now. ♪

good morning welcome to "squawk box" right here on cnbc we're live at the nasdaq market site in times square i'm andrew ross sorkin along with melissa lee joe and becky is off again it's once again just the two of us. >> that's a song, isn't it >> it is a song. it could be the theme song this morning. let's show you u.s. equity futures looking up after maybe not so many ups recently dow looking like it would open up, 62 points higher right now looking at the nasdaq up 52 points the s&p 500 up 12 points treasury yields right now ten-year note sitting just at 4.016 and two-year at 4.760. the u.s. is planning to ban private equity in chinese technology companies reports say president biden plans to issue that executive order today. it is expected to cover direct