year, since january. motocross and supercross together. and now smx for the first time. what a great night. thanks to everyone at chicagoland speedway for opening their doors to us. todd harris, will christien, jason thomas, ricky carmichael, i'm jason weigandt. thanks for watching. the lawrence brothers on top. hunter in the 250s, jett lawrence in the 450s. a lot to play for. a world championship up next week. jett lawrence the winner tonight. "street signs." i'm jomana versace and these are your headlines. the bottom of the salt 600. the new financial targets are largely as expected. we'll hear from top execs at the french banks in just a moment.

broader equities tread water while u.s. futures hit a gain state side. u.s. investors eye the week. constructive talks in a bid to ease tensions between the two super powers while the ims calls on beijing to boost domestic consumption. insta cart raises the ipo range. they're valued at up to $10 billion as the group takes advantage of the blockbuster listing. good morning, everybody. welcome to "street signs." this morning we are closely watching one stock in europe. that's sosociete generale.

it's down more than 6.5%. we are raising the capital market and waiting for a formal statement of some of the senior exec executives. >> today was supposed to be the big day. it has been going through much of a crisis the past few years. just after the world trade scandal, the covid crisis hit societe generale, they had a lot of derivatives linked to dividend payments and then when covid hit they had huge losses hit to the big products. the exit of russia gave them a 3 billion hit. so crisis after crisis.

they're starting in london. there's been a slight turn around after the past few months. the market was very much expecting what he was going to say. it's been a little bit underwhelming. >> when i think about them, there are two things that come to mind straightaway. they are sort of the pioneer of the equity derivatives machine. the french banks were known for the very strong explosion and to investment banking as well. in an environment where other european banks were clearly trying to move away from the motdle. move away towards fee generating, more wealth generating businesses. that's one thing where societe

generale hasn't worried about pivoting. they are very diversified, almost to a fault. perhaps investors were looking for more. >> you hit it straight on. the financial work has been spot on. they're moving towards financing and advisory giving more predictable performance there. they've been moving in that direction. the investors were expecting some announcement of disposals. they were expecting that. we didn't get any elements of that. we know for the past couple of months they've moved away from four african countries where they've been active in the past. no more. there's been some remove vals of

their assets. so as you were saying, certain investors will be waiting for more information. >> whenever you have these capital markets, it is an opportunity for the ceo to spell out what they're going to do to increase profitability and return to shareholders. i think on both of those we can get into a bit more detail on the numbers. they were not that ambitious. you're looking at revenue growth potential 0 to 2% which is basically flat. if they are giving 0 to 2% guidance, they are comfortable with revenue not growing at all. that's not a strong sign of support for investors. when it comes to distribution, this is an area where societe generale has fallen short. i speak to unicredit. they have 100% profitability distribution target with societe

generale at 40%. >> that's right. they are already maybe more c conse conservative. the return on tangible equity, between 9 to 10%. they have a 10% target previously. the annual revenue growth between 0 to 2%. the previous target around 3%. cost income ratio, 60%. the previous target was 62 by 25. so here again to downgrade. the pay ratio is between 40 and 50%. a lot of focus on cost cutting. a lot of analysts are laking but certainly it's due to the costs of potential revenue increase. that's where the balance and what we hear from the management will be key. >> it's down 6.5%. let's see if investors actually

listen. >> it is one that gives us meaning and a sense of purpose every day. a job which we could not perform without our shareholders. the ones who founded us 150 years ago and the ones today. for this we are not only profoundly grateful but also we feel a great deal of accountability for. so new investors, analysts, colleagues, it is a great pleasure to welcome you today in our london office and online. our cfo and i will be presenting today but i welcome my partners, the wtco, the members of our executive committee as well as tim albertson and bernard who join us today. it is an important meeting, one where we get to present our strategy, one where you get to ask us your questions directly.

so let's begin. we envision for decades to come to be a leading bank, rock solid and sustainable. we have strengths, undeniable and distinct. we need changes undeniably. we take decisions. we have catalysts that will support our course. our zboel is to deliver consistently a sustainable value creation to our shareholders and all our stakeholders and to deliver we must be first rock solid. more capital, less costs. best in class risk management, strong culture. second, simplify. fewer businesses, less costs, less dispersion, less synergies, less dangerous. third, high performance. compete where we can win not

where we can exist. and finally, sustainable. deliver consistent earnings with low performance volatility. be a leader in helping our clients and the world solve the radical challenges we are facing as a matter of survival. so where do we start? everything starts with our clients. we have 25 million clients around the world. we have been building these relationships, long-term relationships for 160 years and we are very good at that time because clients have trusted us for decades. we have built a 27 billion euro base. we have an exceptional teams with a level of professionalism

recognized around the world, in many instances a go-to bank. a team with a unique level of commitment to our clients and to our company. a company where world leading franchises were imagined and built. one of the few places where the world derivatives markets were born, project finance or renewable financing or even dedicated esg equity research teams 15 years ago. company which built a leading online bank for 5 million real banking lines on the phone and fax in one of the most competitive banking markets in the world. a company which successfully restructured and developed leading banks in new countries. a company which nurtured step by step the most competitive fleet leasing business in the world and grew it into a world leader. these are facts you can check. can we do better? of course.

>> we were listening to the ceo at the capital market today. as we were speaking about with charlotte, the reporter following this, the reaction in the stocks has not been positive. down more than 6.5%. bit of a disappointing time i'm sure. they were hoping they could use this for the overall valuation. it is trading at a deep discount versus its peers. what has stood out for you? >> it has the shares lower than 15 years ago. that was a key, key challenge taking on the bank. it's interesting the introduction, he wants them to be a rock solid bank, you'd expect that. >> that's the question. >> exactly. that's an expression that he uses again and again, rock solid bank and sustainable. they've announced a reduction of the exposure. 80% reduction by 2030 versus

2019 and 50% to achieve that 50% by '25. that's much more ambitious than some of the previous targets. again, that focus when he said the ceo will have strengths but we'll have to change undeniably. that's what the market wants to see, what changes they want to implement. people want to see whether there's expose sals. we don't have the elements of how it's going to lack in detail. we hope to have more details. at the moment what we saw from the communique was quite light. the reaction was going to get it. maybe he can turn around the mood and convince investors. >> a couple of analysts note, the likes of jefferies, citi, citi put out a note saying if there was a pull back in the stock, they would use it as a buying opportunity. not all the street is negative. >> hsbc, the revenue is disappointing.

jpmorgan said we welcome the coast. it's a very mixed bag. with tim to be on a wait and see moment which has been hard for the past six months. for now it seems that the market's a little bit unzblel really quite remarkable stats, charlotte, that the stock is trading below the price at which freddy took over 15 years ago. that is remarkable. a long journey. that was charlotte breaking us down the top company we're watching today, societe generale. there is more news, ubs is sounding out investors over 81 bonds as a wakeup whether to re-enter the market as the controversial bond wipeout after taking over credit suisse. they are expecting to change the terms of 81 bonds to make them

more attractive to investors. speaking to myself, when they reported the results last month, the ceo said the bank wouldn't rush back into the 81 market. >> 81 will be -- will continue to be an important element but we are not in a rush to come to the determination on if and how to access the market. >> we'll see if and be when they actually do come up with that 81 issuance, but it is ultimately a part of that environment. something else to watch out for. also coming up on "street signs." we have a packed show. looking ahead to wednesday's fed decision as investors eye signs t future hiking signs. what markets are expecting after this break. just like that go to shipstation/tv and get 2 months free

. welcome back to the show, everybody. let us check in on how markets are fairing. there is quite a lot of red on the map today. the stoxx 600 is down. the fed decision is on

wednesday. of course, the market is not expecting them to hike interest rates but we'll be watching out for their updates as well as lots of questions as to how they're thinking about next year and what the market is pricing in in terms of rate cuts. that's going to be key. bank of japan on friday with the latest commentary from the bank of japan governor uida saying they may move away. the bank of england, of course, is leaning towards an interest rate hike and we have some of the scandinavian banks as well to watch out for. plenty to come this week. in terms of the macro events overnight, we have slightly more positive data coming out of china. we'll talk more about that on the show. the profit sector tends to hang over and overshadow the performance. it's pretty negative in the end which explains some of the adverse price reactions that we're seeing in europe. every single one of these is

trading. we have the xetra dak down 400%. we have the impact the ecb heights are having. it's beginning to have an impact even after the dovish impact. one stock and one stock only. that is societe generale. down 6%. the ftse 100 here, relative outperformers. sitting above 7,700. only down 5 basis points. big week because we have the bank of england coming up and we had some housing data come out today. that actually showed while things are not looking great in the housing sector, but they're beginning to show some signs of green chooutes. in terms of sector breakdowns, food and bev at the top. on the flip side, health care is underperforming down 1.1%.

construction material down 1% as well. that is it in terms of sectors. as far as the u.s., let me go back to the price actions on friday. this is how we ended up, the dow was down .8. s&p slipped 1.2% and nasdaq slipped 1.5%. it did very well the first day but by the second day it closed down in negative territory. people are saying this might unlock the ipo market in the last quarter of the year. remains to be seen. we are watching out for further ipos. u.s. futures looking ahead. all of the majors actually seen opening up in positive territory. it was a purr pricing turn around given the negative sentiment we've had come out of asia as well as european markets. they are seen opening up marginally positive as you have on your screen right now.

we are counting down to the fed's latest rate decision on wednesday with investors pricing in 99% that the central bank will keep rates on hold. according to the fed watch tool. the fed will also release its dot plots with expectations growing that policy makers will not raise rates any further as investors mull when rate cuts could begin. so much going on in these markets. the head of macro multi joins me around the desk. let's start with the fed. nobody is expecting a rate hike out of this meeting. what are they watching out for? >> i think the key point at this moment is you see how the fed will be dealing with this entire new era of its monetary pricing. they've done a lot, very fast and now we are entering into a period where they need to convince market that rates need to remain stable enough at 5.5

for the possible future. market movement remains convincing. one of the key elements will be the projections. a lot of the attention is on the dot plot, as you know, but i think we should be monitoring what's happening in terms of current forecast and inflation forecast. last time what they did was revising up the inflation, down the headline. they are in the exact easing process. this new phase of monetary policy is a phase during which we have less co-inflation and more headline inflation. >> prices going up? >> yes. >> let's close that. i want to go to rate cuts. the market is basing in 18% of rate cuts. if out of this meeting the fed ends up where the market prices out some of those rate cuts, so let's say we move upwards to only 50% basis rate cuts, is

that key? >> very key. the key outcome, i think, is not for the short part of rates but longer rates. what the fed has been achieving very quietly is to bring rates from 1.4 to 1.5 to 2%. even as of this morning the market is trying to bridge that 2%. the fed is convinced we need to stay there. that's how we get the sufficient monetary policy and we get to tame inflation. >> in your notes you talk about how we're moving towards the late cycle phase for markets. it's not just the fed who are at the end of the road. ecb pretty much signalled they're done. maybe the bank of england can eke out one or two more. what does the late cycle phase mean for markets? how do markets tend to do? >> usually four different things. the first thing is higher rates. i think we have plenty of that.

higher longer rates. >> higher rates for longer? >> exactly. >> usually you see assets outperforming. we're still struggling to get it in that direction for the moment. commodities trending up is also that type of period. finally you should see the dollar. normally the rest of central banks are catching up with the fed and that creates a momentum for the rest of the currencies. currently we're just taking two boxes out of four, which is still nice enough. the mistake we did make collectively, i think, is to under estimate how long these late cycle periods can last. you see, we're talking about the lending. eventually we get the lending. we get the late lending but before that there is a level of what you need and we need to reposition our core to try to profit from that. >> you mentioned earlier you're watching what's happening with commodities and part of the late

cycle push. oil continues to move higher and higher. we are speaking to opec analysts and it's clear there's a deficit. unless something dramatically happens and saudis put production back on the market. unlikely oil prices are going to tip. what does that mean for macro investing? it complicates things for central banks, doesn't it? >> it does. we should look at the market from one side and the fed on the other, central banks on the other side. when it comes to the bond market we need to remember currently we have a manufacturing demand recovery in a period of low plus we have invested in a couple of cap ex in this type of sector. we wouldn't be surprised from some deflations to see oil prices reaching $110 on the wti.

>> wow. 110 target. >> now in terms of central banking, the central bank is not supposed to care about commodity inflation. it's supposed to carey a about macro inflation. central banks shouldn't be worried too much -- >> transitory. >> we remember the hike and we remember the word transitory which sends a chill down my spine now when people mention it. i want to ask you one last question before you go. this is a nice segue to my next session. how closely are you watching what's happening in china? what impact is it going to have on your thesis? >> a significant impact. china and the emerging world have a lot of bad news. so the symmetry, if you like, of being overweight in merging, that looks good. china remains a complex economy. currently we're starting to

capture a signal of stabilization. not improvement but stabilization. is it enough for us to push more? not quite. it's one step in that direction of late cycle. >> florian, thank you for coming on the road. wonderful to chat to you. giving us a little incite into what markets are expecting. ahead of this week's fed decision, we're hearing from fed treasury secretary janet yellen later today. do not miss that interview at 4 p.m. cet. and cnbc delivering alpha summit is just around the corner. you can enjoy top investors and leaders on september 28th for insights, ideas and balance risks. scan the qr code on your screen or visit cnbc

events.com/deliveringalpha to find out more. also coming up on "street signs" today, the imf calls on beijing to boost domestic consumption as it urges policy makers to move away from fuel investment. we'll discuss more after this break.

welcome back to the show, everyone. i'm jomana versace and these are your headlines. socgen slumps. the ceo says net value creation remains the bank's top priority. >> to deliver we must be first rock solid. more capital, less costs, best in class risk management, strong culture. european equities decline while u.s. futures hint at gains stateside as investors eye a big week for central bank. top u.s. and chinese officials hold candid, substantive and constructive talks in a bid to ease tensions

between the two super powers while the imf calls on beijing to boost domestic consumption. insta cart raises its ipo range valuing the grocery delivery firm up to $10 billion as the group looks to take advantage after arms blockbuster listing. well, let's move over to china and some of the action we're seeing. it has been a seesaw day fo for evergrande. police took compulsory moves against the general manager and other staff. it did not specify who it

detained nor specific charges against them. white house national security adviser jake sullivan met with the chinese national director. the white house says this weekend's meeting is part of an ongoing effort to keep lines of communication open. and the imf is set to urge china to boost domestic consumption as well as address concerns in the real estate sector. that is according to the imf managing director who told reuters she plans to deliver the message in the fund's upcoming review of china's economic policies. she says the country should move away from its bet fueled infrastructure investments towards more growth oriented domestic solutions. cnbc was told china is pointing

towards a turn around. >> economic activities may be reaching the bottom. we saw marginal improvement in retail sales, industrial production as well as in export. domestically i think the holiday travel, the summer travel was absolutely booming. that actually supported the retail sales and catering and so on and so forth. the only weakness is in the economy on the property sales. it continued be to decelerate but still at a much lower or slower pace. the slowdown was a lower pace as before. that may also be reaching the bottom. so there seem to be signs of things reaching the bottom and signs of improvement at this moment. >> let's bring in another voice, very happy to say rory green, the chief china economist joins me. good morning, rory. up until about a week ago the

numbers coming out of china were truly quite awful and we had analyst after analyst come on and say this recovery that the market had hoped for had completely lost momentum and that things were really on -- going down a very negative path for china. since a few days ago the numbers have actually started to stabilize. this morning we had better than expected factory output, better retail sales numbers. are there signs that things have actually bottomed out on china activity numbers? >> good morning, jomana. yes. it's sort of the classic news cycle where everything is either really bad or everything is going back to normal and we're off to the races again. of course, the picture is a little bit more known. there are signs there's very strong service sector spending is starting to ripple outwards into job creation and employment and have a broader stabilizing effect on the economy but for us

we still face the direction downward until we get to a bottom in q4. that property sector dragged 20 to 25% with all of the spillovers is going to continue to weigh on growth until late this year. >> i was going to ask you about the property perspective. deep contraction. the biggest contraction, over a decade. what can be done to unlock investments? it's not obviously just investments. we're talking about liquidity issues. you have the largest property developers defaulting or restructuring debt because they're unable to continue paying them. what can be done to turn things around in that space right now? >> yeah, it's a very difficult situation for beijing. they would love to stabilize sales, stabilize prices and then eventually that would feed through to investment and you would solve bank liquidity

problems. they're unwilling to do what we've seen in the past because the real fear and still the fear is that if they go for an all out easing on property, then the bubble inflates again and the problem is kicked down the road. they're really trying to do just enough stimulus to stabilize sales, sentiment and then bring up liquidity and investment to the developers but so far it's not enough. they're holding back on big stimulus measures, increasingly strong measures but still not enough. that's really key. >> how much of what china is going through is cyclical versus structural? when i say structural i'm talking about declining population, high leverage in the system, high level of homeownership already. that he is are issues that cannot be changed with a bit of fiscal stimulus here and there.

does this not mean that the overall landscape for the chinese economy going ahead is actually structurally a lot lower than it wasin the past because of these issues? >> that's right, jomana. structurally we talk about the three ds facing china, debt, decoupling and demographics. these are three very large structural headwinds that will weigh on growth for the next 5, 10 years at least. so china is really at the start of a post-covid structural slowdown but this is what we think is going to be a graineding slowdown, not a collapse but gradual decline knocking 1 to 2 percentage points off potential growth for the next couple of years as the sector resizes and restructures.

scyclically it is weighing on te activities. it has an up side around the grind and structural downturn that lies ahead. >> i was going to actually ask you about one point in your report because you say the risk/reward in china equities is continuing to improve. would you therefore from a cyclical perspective look to be increasing the weight exposures of china? >> yes. we just upgraded china equities in our asset allocation last week. we think the risk/reward is improving. as we said, bottoming out probably in q4. we're seeing that in the macro data and also crucially in the stimulus stance. it's still, we think, not enough, but the shift from a relatively contraction nair ri fiscal and monetary start to something more expansive has

been made. that signaled a couple of things. it's not a good thing beijing is panicking and resorting to sti stimulus. second which is where we come to our upgraded china equity outlook. ultimately the stimulus causes the real economy to bottom and the markets to bottom a month or so before that. we have upgraded china equities. >> that is very interesting given how much negativity there is out there. one sector people talk a lot about that has been doing well is the fact ev sales have done so well. to the extent the european commissioner was watching so closely, they were dominating the headlines. do you think this momentum in evs can continue? >> i think domestically there is still scope for it to continue. there are quite generous subsidies around the ev space in

china and also they benefit from regulations in terms of accessing license plates in china's major cities. globally the dm markets, i think it is going to get more difficult particularly with the eu tightening here and that could then lead to much closer attention in other dm markets. for the rest of the world i think china is really the only game in town. very competitive on price and quality so although they may be forced out of europe and the u.s., for the rest of the world, china is set to dominate those markets. >> so interesting. other automakers are taking note. rory green, the chief china economist and head of asia research from t.s. lombard. there was another stock we were watching last week and that was arm. they came to market. they started trading. the first couple of days of

trade went well. by the close on friday though we were trading weaker. i think about 4% by the end of the day on friday, but today it looks as though we are going to open up about 1.7% weaker. still significantly higher, of course, than where the arm's shares actually price. we are looking at $59 when the u.s. market opens in a couple of hours. now softbank is looking to e panned the ai reach with a potential open ai tieup in the world. he's going to put tens of billions of dollars into the technology. instacart will reportedly go public tomorrow after haking the price torgt. they say favio has hiked its own tarkt and will seek a $9 billion

in the own opening tomorrow. dragging the firm valuation down to just over $2.2 billion. it debuted at 16.25 below $17. german glass company schott is expected to launch the medical glass pharma unit. that would value schott pharma at 4.3 billion euros. this could be one of the biggest ipos in germany. pharma does apply to pharmaceutical. bob van dijk is stepping down from prosus and naspers. he will give up his seat on the

board for both companies. this is a complicated structure. luckily there is a man who is familiar with what's been happening. break it down for us. it's an interesting cross structure between the two companies. the acting ceo is stepping down. what's going on? >> what has actually happened here is something that was long touted as being too complex a structure. bob van dijk stepped in after the ceo stepped down in 2014. seen to be part of the ebay company at the time. this is a tech bohemoth that they're trying to grow. at the time naspers biggest investment has been ten cent. naspers made up nearly 25% of the johannesburg stock exchange which was a problem for a lot of fund managers.

that needed to be diluted. they split off the 10 cent holding as well as the risk of some of the tech companies within naspers and formed prosus in 2019. that listed on the euro in 25021. they bought 45.4% of naspers, its own company, which was aimed to reduce the discount they're trading at. naspers said 25% to nab. there are a few worries to consumers as well as investors. >> do we have any indication whether the incoming ceo is going to be the ceo of both companies or are they going to separate them? >> at present the incoming

ceo ervin tu is the interim ceo. he was at softbank and was part of the -- managing partner of the technology segment of goldman sachs. so really, really significant. he does seem to be a shoe in to hold that position. we are waiting. of course, in 15 minutes they have an investor call from naspers. >> keep us posted. >> will do. >> thank you for joining me. s4 capital has cut its revenue outlook. they say the advertising agency narrowed to 6.4 million pounds to over 75 million in 2022. the company has remained disciplined and the share reaction has been pretty negative. down 26%.

founder and executive chairman says recession fears are making companies less willing to spend. >> there's fear of recession. i think ceos come on your program and elsewhere and they're positive. quite rightly. the performance has been good. the perfect norm mans has been good because they've been very sort of strict on cost and going inside the company people are hesitant to commit longer sales cy cycles, indecision certainly in the first half of the year. we saw pushing cost expansion into the second half of the year. so there is fear of recession. the reality, of course, is the economies in the u.s., north and south america haven't been bad, been quite good really. west europe has been the difficult place. >> well, speaking of recessions, coming up in the show, u.k. renters feel the squeeze as landlords upload the impacts of

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thank you for breaking down this with us. let's take a look at u.s. futures. interestingly. it's a country to the price actions that we have in asian markets. it relies on that fed meeting on wednesday. not expecting to hike. we will be watching further economic projections. that is it for our show. i'm jomana versace. worldwide exchange is coming up next.

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♪ it is a 5:00 a.m. here at cnbc global headquarters. five at 5. we begin with wall street on edge as the federal reserve gets set to release its latest rate decision on wednesday. it's the not only central bank that's making moves. also, a developing story, day four of the autoworkers strike. grippaling the production capacities of detroit's big three. now the white house is getting involved. also, hot on the heels of arm holdings. how one software maker out of

st