and that's all for this edition of "dateline." i'm craig melvin. thank you for watching. [theme music] . good morning and welcome to "street signs." i'm joumanna bercetche. >> and i'm julianna tatelbaum. these are your headlines. >> 646. the european equities are set to notch another as they reach expectations in july. the latest round of the dismal data for the block. european yields edge hire while the ecb dlooks at nbim ce.

>> trade wars and all of this is driving inflation and it's negative for markets. china's real estate roller coaster is rolling. helping to stem losses on the hang seng. and tsmc signs a noncommital note saying they've not yet decided whether to invest. all right, everybody. we are kicking off the show, taking a deeper dive into what markets are doing today.

that's a lot of red on the board behind me. we're going to get into the drivers for the european session, but first let me take you back to the u.s. session yesterday. of course, it was the first day back after the holiday and all three sectors ended the seg in the red. negative sentiment being picked up in the last hours. a lot of focus on what's been happening to the price of oil. it has reached $90 for the first time since november, this after saudi arabia said they will be continuing with their output production cuts until the end of the year. it's set to continue into the latter half of this year. this has meant the backdrop for oil has been supportive, coming at a time when growth is beginning to falter in the world economy, we're now faced with the prospect of much higher oil prices. the takeaway from the market has not been that positive in terms of what it means for the trajectory of stockmarkets and where we go from here.

overnight owe see the stoxx 600 is trading deeply in the red, down 3/4 of a percent. over here in europe we're looking ahead to the ecb meeting next week. it's going to be a major one as the market is dealing with a backdrop. we've got the disappointing numbers. the composite numbers versus the flash. more evidence of a weak growth. at the same time, again, we're still staring at very high levels of core inflation. so all that for the ecb to contend with. xetra dax today in germany down 75 points, half a percent weaker, and we did have very disappointing industrial orders out of germany today coming out at minus 7.11 month over month. so, again, the industry seems to be in focus.

cac 40 france is lower. and the ftse 100 scaling off 0.8%, down about 60 points. the ftse 100, we've been focused on what's been happening on the commodity prices. it's been a knock-on effect of what's been having in china. in terms of leadership and sectors, telecoms and autos leading up. and luxuries in france seems to be one of the major focuses in the market. also scaling losses of 1% at travel and leisure. it seems to be part of the cyclical market, also down 1% today as well. well, we at cnbc had the fortune of hearing exclusively

from ceo nikolai today. he holds stakes in more than 9,000 companies around the world and he told cnbc he's concerned inflation could be a surprise to the upside in europe. >> inflation could stay longer and could stay high for longer. of course, we are talking about europe because we're situated in the banks. we worry about it spilling over into wages. we're seeing more trade wars and all of this is driving inflation. >> here's something we haven't seen in a while. that is positive reaction and real estate stocks based in hong kong. they have been trawling in the

chinese property stocks which had been on a tear with hopes of more market stimulus. this is after a state owned newspaper published an article saying restrictions and property loans are out of date and after country garden pointed to default. meantime there was a continuing downturn in the sector. the reaction has been positive. we're talking about a penny stock trading at 63 cents on the dollar. it's fallen a very, very long way. it did default back in 2021. since then there's been a period of restructuring going on. we've been talking about country garden as well. there has been some stability amid talk that authorities are going to do more to help shore up the real estate market. >> our colleagues had a chance

to ask nicolai tangen about china. >> we don't invest in china as a country. we invest in the companies. we continue to invest there and continue to think we'll stay invested there. >> what about your view on the mainland market because more broadly we're seeing that the economy itself is proving challenging month after month, week after week. the data is bad. are you concerned about what we're seeing in terms of the strength of the chinese market now? >> we are a bit surprised it has been so weak. personally i had expected the recovery after covid to be stronger, to really drive more consumption, but it hasn't seemed to happen. it's a surprising fact. >> tang again weighed in on the importance of climate effects when weighing in even when there's's a growing backlash from u.s. politicians and despite voting against a climate resolution at bp.

>> the lurng between climate and financial returns is going to be more and more important, and we're sewing the climate effect on inflation, through the food prices. you see it in places like orange juice, olive oil, you know, rice. you see it across the board. it's driving inflation. you also see it now through productivity losses. it's so hot in places in europe that you can't really work. so it's hitting productivity. so it's having an effect there and it's important for us as a shareholder to work in this feel. now, when it comes to the integrated energy companies, we do think they're also part of the solution. many of them are investing heavily in the transition, and we feel that bp is one of those companies, so therefore we continue to support them. but it's -- you know, the voting season is just finished. we have support in many companies. we have many companies against voting as well.

it's tough er than you think in terms of getting the voting right. >> they've been criticized of backtracking companies and they're require them to back comm commitments. we're talking about the vanguards, the blackrocks of the world. what's going whereon, nicolai? why are people backing down a bit? >> well, first of all, we are not backing down. we are consistent. we are as consistent as we've ever been, and we are predictable in how we vote, and that is not changing. we do see there's a backlash on the gsf side. america has been very political. it's moving into parts of europe. we're thinking climate has nothing to do with politics. in my mind, you know, climate is as political as gravity.

it's jeffust not political. >> let me start by saying it's great to get to speak to the head of the world's largest wealth fund. you can imagine their portfolio is extremely broad. they're invested in so many different parts of the financial assets in the world. earlier on in the show we were given a breakdown of what they're invested in. it's about 70% equities and 20% fixed income. that's sort of an overview where the money goes, which tells me they have a huge presence for many of these eck questionty companies. i think the energy transition point is really interesting. let's not forget the reason why norges bank has so much to invest, they're taking the proceeds from oil and gas from norway. there's a bit of a sir cue lairty here. on the one hand he talksen the

transition, but the reason they have so much money to invest in the first place is because of fossil fuels. >> it's definitely great context to listen to where the money comes from. i thought the breakdown of their portfolio was interesting that arabile ran down in "squawk box." 17% of their portfolio is in technology stocks followed by banks. they've got 16% in the banking sector. he made the point that they're recommend almost like an index fund. i suppose no surprise given the size of the technology sector. he clarified in one third of the gains have come from their top seven biggest u.s. tech holdings. so they've had massive success in the technology sector, and i think it will be interesting to see where they look to allocate those winnings, i suppose, in the back half of the year.

>> just to go back to the energy transition point as well, i think the fact they were so positive on bp was also quite telling because many of these companies that go out with these big overarching ambitions are investing in traditional oil and gas companies, and what he was saying is you have to believe that the already traditional existing oil and gas companies can fully fledged intell greated nerm and energy transition companies. this is what bp is trying to achieve. i without juld remind viewers when i interviewed the owner of it. we were on "squawk box" at the time, their capex spending is not going to be equal. the portfolio is still very much geared to oil and energy infrastructure. they're not going to be matched until 2030. and so, yes, they're moving in the right direction, but as of

now, they're investing more herbally in fossil fuels than anything else that to think what goes into norges bank, norges are real fundamental investors. the team of bp would be looking on a company level basis whether this company is equipped to continue investing in both these types of energy at the same time and whether they're well placed to do that. just lastly bringing it back to the macroand nicolai had with our colleagues on "squawk box," he was asked about europe and in comparison to the u.s. and he said he is worried about food inflation and food inflation spilling over into wages he's worried about trade wars, geopolitics, and all of these things driving inflation, which, in turn is negative for markets. on the other hand he praised them and all the fruits it's bearing for the united states and europe is lagging in many

spheres especially the data sector. >> again,taking it back to oil in the context of oil prices we're witnessing right now, breaking to the upside. he's saying there are structural reasons looking ahead why inflation rates could be higher. some of it is due to lower productivity because of climate change. >> and yet markets are so resilient. equity markets. >> absolutely. not yesterday though. let's take a lack how wall street did on the first day after that public holiday. the dow ended the session about 0.6% weaker. the s&p down 0.4%. nasdaq, the marginal outperformer only down about eight basis points. again, even in the u.s., a lot of focus on what the fed are going to do with their next meeting. nobody is expecting them to hike again. we did have some commentary from fred waller. essentially people are coming around to the view that even though the u.s. is looking like it's going to end up in a soft landing situation, that may mean

higher interest rates are going to be with us for longer. let's take a look at treasuries. this is the reaction we had overnight. today we're repounding a bit. overall we did see a stronger session in terms of yields. the treasury yield was up 0.8%. this built on the seven-point basis points after the job reports on friday. 4.26% on the 10-year right now. building on the negativity from the european session, the open in the u.s. looks like it's going to be slightly negative. all of the three majors opening up in the red. it is september which means the cnbc's alpha is joining us around the corner. join us on september 28th where we're provide ideas and

analysis. you can scan the qr code on your screen or visit cnbc d.com/even. you can get in touch with us directly. we'd love to hear from you. coming up on "street signs," saudi arabia and russia agree to extend voluntary oil cuts until the end of the year. we'll discuss more about what this means for markets after the break. my name is ashley cortez and i'm the founder of the stay beautiful foundation when i started in 2016 i would go to the post office and literally fill out each person's name on a label and now with shipstation we are shipping 500 beauty boxes a month it takes less than 5 minutes for me to get all of my labels

and get beauty in the hands of women who are battling cancer so much quicker shipstation the #1 choice of online sellers go to shipstation.com/tv and get 2 months free

signs." chevron is holding a final round of talks with unions today ahead of planned industrial action at the company's two lng facilities in australia. they're set to launch a series of strikes over pay increases and gas prices slipped over high inventory and weak demand. universe says it will permanently close its cold powered plant in q3 next year. it will decommission the plant

in line with its bigger trangs formation plans. meanwhile ceo michael lewis says europe's natural gas market is in a much better place heading into this year but warned prices could still be volatile. lewis told cbc this morning diversification is greater now. >> there is a significant supply coming forld and we're going to see a big increase up until 2026. we will have challenges, but as i said, most important is to ensure we have the right infrastructure so we can import more volumes into europe. that means we can import spot cargoes and bring lng to europe when the price is right. it doesn't necessarily protect you from price spikes but protects you from physical

shortage. that's important for customers and for european industry. >> brent crude overnight cracked $90 a barrel for the first time since november. this is after and expends voluntary cuts. it's a fresh blow to the u.s., which has been pushing for more production from opec plus suppliers. our guest joins us now to talk through the internal markets. great to have you with us onthe day we're watching closely the price of oil. why now? why this decision for the extended cuts from saudi and russia? >> good morning and thank you for having me. yes, indeed, saudi arabia announced an extension of their output until the end of the year. if we look at the markets during

the last year, year and a half, the supply side of the market remains very tightly imagine d f opec plus. ice represented by saudi arabia which can be relatively easily brought back on line if there is a need for that. but as i mentioned, supplies are managed primarily by saudi arabia. overall the russian production remains relatively the same. if we look at the demand side we anticipate as solid demand grows this year, most of it, about 70% will come from china. it's high travel after the reopening of the chinese economy and petrochemicals use. therefore, we anticipate the small deficit in the global and oil market and in the first quarter of this year. while this is mostly driven by the tightly managed supply, it

provides support of the markets. you've seen a price relatively around $90 per barrel. >> given what we've seen, saudi arabia and indiana act in terms of opec. how important is opec as a block now in terms of managing the supply given that we've seen saudi arabia and russia come out on their own? >> generally opec plus is watching the supply. it's mainly represented by saudi arabia and uae, and these are the two countries which can manage the supply which can cut or increase the supply depending on the market conditions. >> just to follow up on that, what do you think will be the catalyst for saudi arabia to actually start increasing production again? are they targeting a certain price and where the spot price of oil is trading?

are they targeting a certain number of inventory in the system? are they targeting just a couple more months as they've adhered to yesterday? what do you think is the time line for them to eliminate some o of these production cuts that have been in place for a couple of months now? >> i think it's driven p by the supply and demand in the market. overall we expect it to be relatively solid this year. then we anticipate some next year. the key driver for the demand growth is china. generally it was in line with our expectations, but it wasn't as significant as the other market expected. the market is balanced, but it's balanced by the supply side. >> speaking of the supply side, let me just ask you about the u.s. role in all of this because what we've seen in the last couple of months is opec plus clearly have been in the

driver's seat in terms of determining where the price of oil is headed, even though they're comprised of 45% of the total market. they've been key in determining the price of oil. the flip side is the u.s. you've got elections coming up next year. the president will want to keep oil prices as low as possible. what can the u.s. do? >> generally what we observed is the u.s. oil production remains relatively stable because the companies are prioritizing dividends and leveraging growth and we believe it will continue because it's driven by the rates of the complete wells, which are leveling out in terms of the numbers. and potentially there's been a slight decline for all of this year. as long as the u.s. production remains stable, it's up to opec plus in terms of the managing supply side. we do anticipate the demand to

be broadly stable. some growth but broadly stable. unless there's a significant demand story, it's off to the supply side to manage the market. >> what do you think the u.s. will do about billing the strategic resource they ran down last year. >> i'm very sorry. there was an interruption on the line. could you please repeat the question? >> yeah. what do you think the u.s. will do since they had to run their reserves down last year. is it your expectation they'll start rebuilding or is the price just too prohibitive right now? >> the price is relatively high. it is ooh $0 per barrel and lower for wti. overall the inventory in the market is relatively comfortable. >> angelina, to round things up, where is your price target for oil over the next few months? it's important because we tack

our cues from macro based on the energy levels. what do you have pencilled in? >> we expect it to be range bound, probably $85 to $90 per barrel, and this is for brand. overall they'll be 85 to $90 taking into account the year-to-date before the markets. >> pretty much where we are right now. $85 for wti. around $90 for brent. angelina, wonderful to have you with us on the show. also coming up on "street signs," fed governor christopher waller logs a good week on the data front as he calls for caution operates. we'll have more after the break. 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. ah, these bills are crazy. she has no idea she's sitting on a goldmine. well she doesn't know that if she owns a life insurance policy of $100,000 or more she can sell all or part of it to coventry for cash. even a term policy. even a term policy? even a term policy! find out if you're sitting on a goldmine. call coventry direct today at the number on your screen, or visit coventrydirect.com.

data front as he calls for

welcome back to "street signs." i'm julianna tatelbaum. >> i'm joumanna bercetche, and these are your headlines. >> european equities line up their sixth straight negative session after german factory orders decline by three expectations in july.

the latest round of dismal data for the block. saudi arabia and russia extend production cuts through the end of the year while norges investment bank's ceo nicolai tangen speaks with cnbc and makes his position very clear. >> we're very clear climate has nothing to do with politics. in my mind climate has as much to do with politics as energy. >> there's more stimulus in the troubled sector. tsmc signed an arm agreement, saying they have not decided whether to invest.

well, here this morning european equities are trading lower once again. yesterday, the stoxx 600 lost about 0.2% its fifth straight day in the red and it looks as though we're heading toward a sixth straight day. as we were discussing earlier in the show, this morning a lot of focus on the price of oil, driving inflation fears, sending european stocks lower in part anyway. so the loss is pretty spread evenly across the bore. the cac 40 is leading the way. the ftse 100 not far behind. you have a little more, italy down 0.4%. red across the board. clearly a risk off tone in markets this morning. now, turning to currencies, yesterday we had the dollar index rally its third positive day in a row, this as bond yields rose. yo view the higher oil price driving inflation fears. and here this morning we've got

the euro trading slightly higher versus the green back. sterling is trading slightly lower. we're back below 126. we traveled quite a ways down or perhaps the dollar has traveled quite a ways up. sterling is trading around 125.50. here's a picture of wall street at this early hour. all three majors are looking to pull back slightly. yesterday we saw wall street and others lower. they pulled back about 0.4%, the dow about 0.6%. and the nasdaq, the tech-heavy index closed essentially flat on the day. >> the federal reserve governor christopher waller says a recent round of strong economic data will buy the central bank some time as it decides whether additional rate hikes are needed to control inflation. friday's nonfarms payroll report dropped to its lowest level in 2 1/ year. meanwhile wage growth was below

forecast and inflation rose just 2.2%. speaking exclusively to cnbc, waller who's considered one of the more hawkish members says he's encouraged but says the fed can afford to hold rates higher for longer. he said he's confident of afoying a hard landing. >> i don't think one more hike would necessarily throw the economy into a recession if we did feel we needed to do one. but at the same time like i said, the job market is still pretty strong. these numbers are still near historic lows at 3.8% unemployment. so it's not obvious that we're in real danger of doing a lot of damage to the job market. even if we raise rates one more time. >> waller also told cnbc that the fed's policy moves are having a direct impact on the economy quicker than previously thought. >> this is a tricky problem because there's never an exact number on when the lags tend to

hit, and i think, as i gave a speech back in july, that i think the lags are shorter. they're still there, but they're not like -- we don't have to wait two years for this stuff to start impacting on the economy, and we're seeing it now, as far as i'm concerned. you're starting to see the economy slow down, seeing inflation coming down. it's been just a little over a year that we've done a lot of large hikes, so i think we're already seeing the impact. the ore thing, people seem to have this idea that long invariable lags means there's this cliff effect, what i call the wile e. coyote moment where the economy is going along and then it collapses. that's not how these typical lags -- they start having an effect, they build up, and they eventually fade away. there's not this cliff effect everyone is talking about. >> fred waller. european high yields corporates have so far been shielded from the impact of higher interest

rates. that's according to maria cohen. maria, good morning. wonderful to have you with us. just to pick up on the conversation that our colleagues in the u.s. were having with the fed's waller, the fed have tightened significantly. so have central banks around the world. we've seen a massive tightening of financial conditions, tightening of credit conditions, and yet to your point, there's not been such a huge knock-on effect on high yields. why is that the case, do you think? >> european high yield bonds is -- bond market is a fixed interest rate market. rates h increase when they refinance.

it's been relatively low so far. that's why we don't see the impact to higher rates compared to loans for example. if you look at the particular european index, you see the weighted average cost of debt has increased, and if you look, it's increased. it will be felt by european high bonds. they have taken into account the full impact of haier y higher s rates. >> what has it looked like? you say there hasn't been a lot of supply coming to the market. why is that? why are companies postponed

issuing bonds? is it a function of their cash needs or a reflection of the environment they're in in. >> i would say both of that. first of all, their refinancing needs were limits because as i say, in 2021, we had a lot of issues. a lot of companies have extended a lot and refinanced a lot, the first thing. the second thing is also that strong bb companies prefer to wait if they can. that's why we'd see -- we don't see a lot of -- if you look at the growth supply, it ee already above last year at -- above $30 billion, but in net terms, it's near zero or slightly less to take into account payments. so this is a positive technical

thing for the market because when supply is limited, it tends to enter the suppository market. between now and '26, of course, we'll see more and more -- more and more needs for refinancing. >> bearing in mind that 2026 is when the real maturity woe will become a potential issue. what to you think of valuations in this space right now? to you think spreads look attr attractive in high yields? >> the spread is 450. ite e already tightened by around 50 year to tate, so it's a stronger aspect. it's difficult to see the spread tighten significantly over the coming month, especially if we expect inflation to remain

sticky, for example. but what we can say for high yield is it's attractive. the spreads are not reflecting a recession scenario. by the way, that's a slow growth scenario. clearly there is not room for tightening at this level. >> let's translate this into what you're doing in markets here. which sectors do you see the most value within high yield and which sectors are you avoiding? >> we tend to -- banks are part of the high market. and we are quite positive on banks at the moment for several reasons. first of all they're stronger than these two, the previous crisis. the higher rates had a positive impact on the profitability and for now the cost of risk is

fine. and in terms of variation, it's now -- there's still a bit of it. the sector, we tend to wait on retail and chemicals, and the reasons for that is both expectations further down on the global economy and, second, these sectors, the retail sector in particular, has a platform very well this year, so it's a question of fund mentals and evaluation. >> so interesting to hear your sector view. marina, what do you think the biggest risk is to the outlook here? >> first of all, the big risk is on the growth outlook. we have punched up numbers from china recently on the services side, so it could be on global growth. the u.s. h have benefitted from

the strong consumer that could fade over the coming months. the second one is inflation. you mentioned earlier the higher oil prices. we don't know if it will be long lasting but it could weigh on inflation. inflation could be stickier than we expect and maybe the third one is central bank mistakes that could close too early or increase too much. it's a main issue. >> very clear. marina, such a pleasure to chaet to you from the sidelines of the conference. also coming up on street signs, arm reveals more details of its long ai wanted ipo ahead of next week's expected debut. we'll bring you the latest 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. ah, these bills are crazy. she has no idea she's sitting on a goldmine. well she doesn't know that if she owns a life insurance policy of $100,000 or more she can sell all or part of it to coventry for cash. even a term policy. even a term policy? even a term policy! find out if you're sitting on a goldmine. call coventry direct today at the number on your screen, or visit coventrydirect.com.

welcome back to "street signs." china has reportedly banned government officials from using apple iphones or even bringing them to work.

according to "the wall street journal," central government employees will not be per milted to use iphones or other non-chinese branded devices at work. it's the latest move by beijing. there are similar bans on huawei and tiktok. apple generated one-fifth of its revenue from china. the ftc will file a lawsuit on amazon after it failed to offer specific concessions to the regulator over antitrust claims. the suit will target a number of amazon's business practices including favoring its own products over competitors'. and the new justice commit ter didier renders takes over. the she's taking unpaid leave to

focus on her candidacy. nicolai tangen lauded their ifrts over the $1.4 trillion fund this year. >> the a.i. space is a very interesting one. this morning we released a forecast in good company series we made. i have to say what's going on in the a.i. space and how we use it, this is a huge revolution, which, of course, we should talk a bit more about. >> we see huge bets place. do you think it's a bit overoptimistic given that we haven't seen the proof in the pudding over what the productivity gains will be? >> the productivity gains h be huge. i kind of thought we would

improve by 10%. that's a number i took straight out of the air. i asked him, what do you think about it. he thought we should increase it by 20%. it's real. it's very big. it's in more and more sectors, more and more industries, more and more applications. this is a true revolution. >> how disruptive do you think it's going to be to market leaders. we've seen the likes of nvidia. there were the faang stocks over the past month that they oosh been watching. how disruptive do you think it will be? >> it's really going to change things. one, you have the beneficiary of this. nvidia is one, microsoft is one. you have the large tech companies that are going to do well, at least many of them. then you have the rest of the market and, there, the people who really apply this technology

and are the leaders in terms of how they are making their companies more efficient, they will just run away from the rest of the pack. this is really going to change the leadership in many different ways. >> and arjun caught up exclusively with qualcomm's ceo and asked him why the company has lagged behind rival chipmaker nvidia given its a.i. aspirations. we're doing something different. we're bringing a.i. to the deviet. one of the most popular demos we had was on this concept car how we show it become a natural language communication. in our toech summit, i think it

will be around incredible use cases that we saw in early phones and maybe it could create a new upcycle for your phones. we don't know the timing, but it's definitely happening. you've seen what microsoft has done for pcs. you saw our announcement. so as those things get to the hands of consumers, i think it's going to be material. qualcomm will just have to wait. >> amon says he sees tensions. >> we have not been restrictive. we have been focused not on data centers. we've brought intelligence to phones, pcs, cars, the internet. so far i think we see opportunities to grow in china, and as you look, i think our view is we continue to be optimistic that, you know, there's going to be

opportunities for corporations. i think qualcomm has been a great example of that in their china relationship. our relationship has respective intellectual property. all of our chinese companies are paying for 4g and 5g licenses. it has the ability to provide growth for every country. now on to arm, the company plans to price shares between $47 and $51 in its long awaited ipo later this month. the chip designer says customers including apple, nvidia, and samsung have expressed interest in shares ahead of the listing, which is set to be the biggest this year. tsmc was also named the biggest chipmaker. wellesley picker has the story. >> arm is hitting the road to investors which is likely to be the largest in years. softbank is selling all 96

million shares in the offering and is ask for as much as $51 each. that implies an offering size of about $5 billion of which 15% is already claimed by arm's large tell companies. think nvidia, apple, and google which have indicated a price. it includes fully diluted amount. that's below the $64 billion that arm was reportedly valued last month when they bought back the remaining quarter of the company and didn't own from the vision fund. however, it implies a decent return when soft bank took it private seven years ago. it's still relatively expensive when compared to earnings. the nondiluted market cap represents about 100 times trailing earnings through fiscal year of marriage. that's about double the level. for cb business news, i'm leslie

picker that this has been quite an interesting story to cover over the last couple of weeks. perhaps the most interesting piece is the potential cornerstone investors and the point you reached, we could be sitting here in an instance where some of the arm's biggest customers are actually their biggest shareholders if we see the likes of apple, tsmc, samsung actually take stakes in the company. as we heard this morning, a word of caution. tsmc has not decided whether they're going to invest. and going back to norges, they're not going fw a cornerstone investor, and they typically are in ipos fwib fwen that they own 1% of 9,000 companies in the world. it still looks like china is trying to decide whether arm is worth the price. >> he wasn't going to give a lot of detail, but he said there are some issues specific to arm.

you've got to wonder what they're concerned about, right? one part of it that you've been talking about quite a lot is obviously the exposure to china. that's come up a lot in terms of analyst commentary, vis-a-vis, how much. that could be one sticking point. i think, you know, the valuation that it's going to get is going to be super interesting. a far cry from the $64 overall evaluation it was hoping to get a couple of weeks ago. it looks like we're going to be closer to sort of the 50 billion handle. but, again, in terms of cornerstone investors, don't forget that last year arm were floating the idea of fully selling themselves to nvidia for a total valuation of $40 million. that was blocked by antitrust regulators. so even though that hasn't gone through, we're still looking at an overall valuation that's a

significant premium to where it was trading just one year ago, so the underlying business still seems promising, but the question is whether some of those big investors are actually going to buy into it. >> you think of the big investors, the equity investors, fund managers. in the tech space, these fund managers in many cases arecying with nvidia shares, which are up 00% in the last six months. a and there's massive question marks around the valuation there. yes, you could argue it's questionable. but valuations across the tech space are looking frothy according to many. i would keep an eye on those companies and think about it relative to the investments they have made. does arm become a more attractive proposition? >> to take it again to what he was telling us earlier on the show, ultimately leadership has been so narrow. it's been in those select stocks. and looking ahead, it's clear

that the a.i. team is going to continue to dominate the leadership in all of these markets going forward. he said to a certain extent, they track the market moves. i do have strong data. in the environmental where the leadership is concentrating on a handful of stocks, their portfolio is going to reflect that as well. this is part and parcel of that major theme that's emerging. chipmaker's a.i., we'll look at it. >> we're looking forward to continuing our coverage of it. we're wrapping up street signs for today. we'll leave you with a hack at u.s. futures. we've got red across the board. thanks for watching. i'm julianna tatelbaum. >> and i'm joumanna bercetche. "worldwide exchange" is up next. shipstation saves us so much time it makes it really easy and seamless pick an order print everything you need slap the label on ito the box and it's ready to go our cost for shipping, were cut in half just like that go to shipstation/tv and get 2 months free

every business that's why comcast business just de is launching theal. mobile made free event. with our business internet, new and existing customers can get one year of unlimited mobile for free. it's our best internet. powered by the next generation 10g network and with 99.9% reliability.

plus one line of free mobile for an entire year. it's the mobile made free event-happening now. get started for just $49.99 a month. plus, ask how to get one free line of unlimited mobile. comcast business, powering possibilities. loving this pay bump on our allowance. wonder where mom and dad got the extra money? maybe they won the lottery? maybe they inherited a fortune? maybe buried treasure? maybe it fell off a truck? or maybe they switched to xfinity mobile - the fastest mobile service. save hundreds a year over t-mobile, at&t and verizon. now i can buy that electric scooter. i'm starting a private equity fund that specializes in midcap. you do you. switch to xfinity mobile today.

it is 5:00 a.m. here at c nbc global headquarters. here's your "five@5." futures suggesting there may be even more pressure on tap. also, oil pulling back after testing the $90 mark as saudi arabia and rush announce new production moves. we're going to dig in to where prices are heading next. shares of chinese property stocks, they're soaring on reports of fresh government intervention in the embattled sector. we're going to cover the details and steps beijing may take.