it is 5:00 a.m. here at cnbc global headquarters. here is your "five@5." we are starting off with stocks looking to shake off a losing week. futures are in the red right now. we are following breaking news out of hollywood. the writers strike poised to potentially come to an end. details on the contract breakthrough. a different story around the auto workers. ford suggesting speed bumps remain in a deal with the uaw. the countdown to a shutdown

as lawmakers scramble to get a deal done before the weekend. we are live in washington with the latest. we kickoff the week long series offering the best stocky d stocky ideas headed into the fourth quarter. it is monday, september 25th, 2023. you are watching "worldwide exchange" here on cnbc. good morning. t welcome to "worldwide exchange." i'm frank holland. we will kickoff the check with the future check. indices coming off a four-day losing streak. we are in the red. dow looking like it could open up 50 points lower. we say it is early. it is a very busy week on tap for investors. tomorrow is earnings from costco and new home sales and consumer confidence. wednesday is micron earnings. thursday is nike reporting

results. we get initial jobless claims and pending home sales figures and fed chair jay powell speaking. we close out the week with the latest read on consumer sentiment. right now, we check the bond market with yields close to 4.5% for the 10-year treasury. we see the yields rise. the 2-year treasury is well above 5%. something to watch as we continue this morning. we are looking at the energy sector. specifically oil on a report that russia is tweaking to exempt some oil products from the export ban. oil right now with wti above $90 a barrel. up .50%. similar for brent crude. doing better at $93.79. natural gas down .50%. time for the check on the top corporate stories with pippa stevens. >> we have breaking news on the hollywood strikes.

writers and studios have struck a tentative labor agreement. they are still working on the final language. the union told members this deal is exceptional. wga noted the strike is not over and no members of the guild are to return to work until that agreement is officially ratified. the auto strike front with ford saying it has significant gaps to close before reaching a new labor agreement with the uaw. the remarks coming after the uaw expanded strikes at gm and stellantis facilities on friday. ford is securing a win with canadian auto workers. the members have voted to ratify a new contract with the automaker. apple is looking to make a

dramatic ramp up in production in india. the tech giant will increase output in that country five-fold within the next five years. going from $7 billion to $40 billion. apple makes iphones in india with reports it will make air pods there as well next year. frank. >> pippa, thank you. see you later on. turning attention to washington. the race is on by law an makers reach a deal before the shutdown this saturday. they hope for an agreement to satisfy both parties which is looking slim. we have nbc's drew petrimoulx joining us from washington with the latest on where the talks stand. drew, good morning. >> reporter: good morning, frank. this is a high stakes week here on chapitol hill. the federal government will run

out of money on saturday and the shutdown is inevitable. the federal government set to run out of money and a group of house republicans worked all tweaked avoid a shutdown. there are still no signs of a deal. >> i don't want to see a shutdown. there is not doubt we are headed for a shutdown. >> reporter: a budget stuck in the house as republicans look for steep spending cuts. >> that's why folks like me are sticking to our guns. we're the bad guys? >> reporter: democrats in the biden administration are warning of dire consequences if a deal isn't reached. federal law enforcement will work without pay and thousands of kids would lose access to government pre-k. small business loans in jeopardy and food safety programs affected. federal employees and service members won't get paychecks. >> the frustrating thing is the president and the administration

have a responsibility to make sure no matter what congress do does, the country succeeds. >> reporter: much of washington is dpessimistic a deal will be reached before the deadline, mccakcarthy is injecting optimi. pay for millions of federal workers would be affected under the government shutdown. social security would continue to go out and medicare and medicaid programs remain in tact and the u.s. post office would remain in operation. on capitol hill, i'm drew petrimoulx. frank. >> thank you, drew. we are kicking off the final stretch of q3 with all three indices to end in the red. s&p on track for the first quarterly loss in a year after posting the worst week in morning six months.

investors are pulling money out at the fastest pace since december. it is not just large cap, but small cap and industrials are off the highs from the year with steep drops in both sectors indicating a greater potential for recession. let's talk more about this with jeremy schwartz. global chief investment officer at wisdom tree. jeremy, good morning. >> thanks for having me, frank. good to see you. >> in recent weeks and months, consensus has moved toward a soft landing. i'm looking. both transports and somall caps are in correction. are you advising clients to prepare for a slowdown? >> coming into the year, we were cautious. we thought we had negative employment report trends by now. the high rates and the economy is resilient to those high rates. the market is confronting that rates are high.

the bond rates are putting pressure on the tech stocks. there is rotation from high dividend stocks from the more expensive tech. we have been surprised by how resilient the economy is with the rates. >> are you advising any moves to get ahead of what could be a possible recession? as the fed indicates higher rates for longer and there is concern about something breaking. >> if anything, we're saying because the economy is resilient to rotate toward the value sensitive names and value stocks get hit in recession. earlier in the year, we thought that was causing pain. it was an a.i. story leading tech. we were saying because the recession has been put off, you should go toward more of the value sensitive type exposures. >> resilience is not bulletproof. how do you manage the risk? the wall of worry with the rising oil prices.

>> if anything, i think people need to be smartly managing cash. 5.5% treasuries. if i have a worry in the market, the bank dynamics from march. i don't know we're fully past all those. i think there will be a rush as people look at year-end reviews. you say are you working hard enough with zero in the bank? 5.5% is a very attractive place to be in the short-term. that is my one main worry. i think you could put your cash to work at very good rates sdprates. >> that's in the u.s. you have been bullish on japan for a bit. why do you advise clients to put money to work in japan right now? >> in many ways, following the buffett trade. we have an etx which is doing better than large cap growth. it is selling at half the

multiple. we are selling 12 times earnings at 8% earnings yield. that is higher than the u.s. growth stocks. if you want value in the market, but have the momentum behind it with the a.i. story with the companies returning dividends at reasonable prices. >> we are talking about dxj there. what are they investing if they put money in dxj? >> you hear about tesla. a lot of car companies. toyota is a top holding. you have the semiconductor companies. there's good banks that have the buffett holdings. the commodity players in those called the trading houses.

you get mitsubishi. there is a big combination of industrials and tech companies and car companies which is known in japan. >> jeremy schwartz from wisdom tree. thank you. we have more to come on "worldwide exchange," including the one word investors have to know today and the property woes insuran intensifying. and huawei is seeing pressure from overseas competitors and regulators inte intensify. could the bottom be in for the beaten up names in the sector? weava ry he ve busy hour when "worldwide exchange" returns after this.

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welcome back to "worldwide exchange." look at futures right now. the dow would open 40 points lower. nasdaq and s&p down .25%. let's see how europe is shaping up as the trading day is getting under way. arabile gumede is live in the london newsroom with the action. arabile, good morning. >> good morning, frank.

the last trading week of september. how do we start? in the red out in europe. the ftse 100 is .75% lower. it is the better of the indices out of europe. set to close out the month on a positive note. the ftse mib is interesting. the italian market with the government reversing the banking windfall tax. they decided to reverse it a bit by saying if the banks are able to maintain more credit in the banks, they he don't have to pa the windfall tax. reversal from the surprising move they put in the market around a month ago. the overall market picture is sitting in negative territory. we saw german data come out today. ifo business climate numbers showing things worsening again in germany. recessionary territory maintaining the stance.

dax going down .80%. in asia, we had the bank of japan last week deciding that they were going to keep interest rates as they were at that time. that has influenced things. nikkei is up. .80%. >> arabile, thank you very much. arabile gumede, thank you. let get to evergrande. the property developer cancelling six meetings with creditors this week saying it must revisit the restructuring plan. the company revealing it is unable to meet regulator qualifications to issue new bonds. shares of evergrande follalling double digits in hong kong. look at the rest of the chinese sector. country garden down 7%.

other names down there like longfor group town 7%. you see the damage to the sector with the stocks trading in the red. huawei is pulling back the curtain on the latest offering to consumers. the launch coming as the company faces pressures from overseas competitors and regulators. we have eunice yoon outside the huawei store in beijing. eunice? >> reporter: frank, i'm actually inside the huawei store. the event just wrapped and a lot of people lined up. most said they are excited about getting their hands on the latest version of the 60 phone. their expectation is it could be $1,800 on so. the latest is putting the company ahead with the 13.2 pro which is their highest and

thinnest tablet. short-range wireless technology is embedded in the watches. they also unveiled two watches and upgrades. one has 18 karat gold in it and one with two-way messaging. they have the mate 60 rs. this comes with ultimate innovation. no specs on what it means, frank, in terms of 5g or in terms of the chip. for any investors who are looking for a little bit of specificity on that, that's a disappointment for them. >> eunice, is there any connection to the iphone release and any indication of what sales may be like? >> reporter: they haven't said that this is timed with the iphone 15 release.

we have seen a lot of people comparing all of the phones. including some of the people outside who said they didn't care that this could be potentially more expensive than the iphone 15. huawei is getting excitement although they have not released any sales targets. they are saying that 100 news outlets in china have been live streaming events, including state media. state media has been playing down the iphone 15 release. >> eunice, i know you are covering the iphone release, but i want to turn back to the evergrande story. how big of a development is it with the canceled creditor meetings and the inability to issue new bonds? >> reporter: that was a surprise and disappointment because the company cited there was an ongoing investigation into the domestic subsidiary. also, the company itself said it

wasn't going to be able to go ahead with the debt restructuring plan because of concerns about their property sales. the reason why that hit hard this time around was the expectation that the government would be able to roll out enough measures to stabilize the real estate market. this is a time like september or october when most people start to think about buying new homes. traditionally a time when people go out and buy homes. now we are getting a lot of bad news which is weighing on the sentiment for investors. >> a lot to consider. we are showing the chinese property stocks in the red. evergrande down 22%. eunice yoon, great to see you. thank you. coming up here on "worldwide exchange," tinder looking to get users to swipe right on the high-priced feature. we're talking the super bowl halftime show. that will be a gd ooone. more on trending stories when

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welcome back to "worldwide exchange." look at oil prices with investors focused on the tighter supply outlook. reuters is looking at tweaks to the oil products from the export ban. brent crude up .50%. wti is back above $90 a barrel.

oil has been on a climb in recent months, but it is different for solar stocks. t that sector is falling to a three-month low. pippa stevens is here with more. >> frank, solar installations fell according to the new report from global markets as the industry battles rising rates and backlog and supply chain constraints. that is leading to lackluster sentiment to stocks. despite that i.r.a., the industry is facing growing pains and more renewables are added to the grid. the solar space has given up all of the gains since president biden's election. for the quarter, it is now down 25% on track for its worst three-month stretch since 2016. still, the distinctions need to be made within the space with

several firms noting utility scale players are better positioned. jpmorgan chase pointed to next tractor as the top pick. bank of america reiterated the buy rating on the stock pointing to secular revenue growth and a track record of execution. residential solar is more challenged with sun run and sun power all down 25%, frank, in the last three months. heavy losses. >> my question is how do oil prices impact these stocks? i saw the report last week with $150 a barrel is the new $100 a barrel oil. how does that rising action in the oil market impact this market? >> that jpmorgan chase call made the rounds on friday. that is related to solar stock performance, but there is more

of a relationship with national gas. nat gas powers the grid. when oil gets high, we see fuel switching. that could boost nat gas to boost solar. solar has been under forperform here is utility bills are not rising fast enough. that is one reason we have seen a slowdown in the residential sector because utility bills are not rising fast enough to justify solar. however, yo utilities tend to spread the cost of higher nat gas prices over a longer period of time. solar companies say as utility bills continue to rise and everyone is forecasting they will rise, that will make solar a better investment. >> interesting that utility prices have not gone up enough to push people to solar. >> it is the spread between the cost of the utility bills and

cost of the solar system is the metric to watch. in texas and florida, where solar is very popular, utility prices are going up, but have slowed. now systems cost more with higher rates because people tend to lease them. the difference with the two which is important. utility bills have gone up. so have gas prices. >> rising rates impacting everything. pippa, see you later on. thank you. still on deck here on "worldwide exchange," meta looking to ramp up the a.i. ambitions. putting a more human touch to the tech. if you haven't already, follow our podcast. if you miss "worldwide exchange," check us out on your favorite podcast app. and join us for delivering alpha in new york city. scan the qr code for visit

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it's 5:30 a.m. in the new york city area. a lot more ahead on "worldwide exchange." here what's on deck. markets are gearing up to wrap up a really dismal third quarter. futures are suggests a further slide to start the final trading week of q3. we're putting the quarter in the rearview. the week long service with the

best ideas to make money in the final three months of 2023. we will discuss the small cap name that our next guest says could be a big opportunity. congressional leaders are racing to a deal as the deadline nears. it is monday, september 25th, 2023. you are watching "worldwide exchange" here on cnbc. good morning. welcome back to "worldwide exchange." i'm frank holland. we pick up the half hour with the check on the futures. futures are in the red. dow off the lows of earlier. it looks like it could open 11 points lower. getting close to be flat. s&p and nasdaq fractionally lower at this hour. we are looking the yields with the bond market.

the 10-year treasury is inching higher this morning. close to 4.5%. the yield on the 2-year treasury is back above 5%. we are looking at the energy market with news this morning from reuters about russia reconsidering the oil export restrictions. look at wti crude. the u.s. benchmark. up .30%. off the highs from early this morning. brent crude up .50%. natural gas down nearly .50%. big question that we ask everybody this week. did you miss out on the rally this year? do you want to lock in gains? we are kicking off our favorite stock pickers with their best ideas heading into q4. we will run them through the "worldwide exchange" gauntlet. let's start with franklin mutual advisers katrina dudley. what is your pick for q4 and

why? >> we like the small cap space in the fourth quarter. there is significant under performance of small caps. down 20% from the highs. that is part of the set up as we go into this. if you have a look at the small cap value, that is very an attractive. we like the modular rental company. what is modular? if you go to the kids classroom and they need to modernize the school, they rent the portable classroom sitting there. if you look at construction sites, they are renting offices or storage that is sitting on the sites. that's why we like it. we think the space they're in is extraordinarily attractive. we think the set up into q4 is attractive as well. you have small cap. you have good valuation and good set up. that makes for a really good stock. >> okay. very interesting. shares are only up 3% year to

date. certain a lag. what will protect this stock from being interest rate sensitive? >> it has leverage over two times. that leverage is coming as a result of the great acquisition. asset swap they did earlier this year. they swapped some of the assets which are more cyclical in the tank supply business. they swapped with another company and got their modular business. we like that because it gives more scale to them and gives more density. it helps in terms of increasing the utilization of the fleet. it was a great deal. despite the leverage, we don't think it is a concern. >> you are in favor of the acquisition. i want to ask about something else. 80% of the business is modular office space business. another 20% of rental of equipment. that business is soft recently. the recent report shows revenues fell due to lower chip demand.

that is the higher har margin business. are you concerned? >> it is baked into the business. we think it may be able to surprise. let's take a step back. it is the business which is showing slower growth and higher margin. it is higher quality. they are the only company. one other areas has been suffering in the test business is lack of equipment they he n need to rent out for suppliers. they are the partners of choice. that is something you need to look for. you need to look for companies which are partners to the customers. that really makes a win-win relationship. on that testing front, if you have a look of the transition, that is the secular long-term tai tailwind. >> they did raise their guidance. i want to ask about the 22 times forward earnings. you are paying up for the growth. are you worried the growth has already happened? these are longer-term leases

with the rentals and modular equipment. we see other things with the i.r.a. are the leases about to run out? >> the average lease is 12-to-24 months. it depends on the market. if you have a look at the monthly average rental rate on the existing equipment and compare to what they are getting on the newer equipment, there is a 48% differential. there is a runway of pricing. you see a lot of increase in cost of the equipment. that makes it less easy to justify the buy. we think the setup is great and pricing outlook is great. you mentioned the i.r.a. that is the wind in their sails as we look into the fourth quarter being positive. >> katrina dudley. modular equipment rental company. small cap. you are bullish on it for q4. thank you. we have malcolm ethridge joining

us tomorrow with the fintech stock he is looking into. thank you, katrina dudley. let's get a look at the top corporate stories with pippa stevens. >> frank, wells fargo is doubling down on the wealth management business as it is looking to advisers to the platform. barry summers says there is a significant opportunity to gain market share over the next three-to-five years after the series of scandals sent activity plummeting in 2019. the labor department is investigating perdue farms over child labor allegations. the wall street journal says perdue and tyson will investigate as they did not know

children were working at the plants. investigations into both companies are conducted separately and come amid a 69% increase in children employed illegally nationwide in recent years. meta platforms is planning to unveil chatbots this week to attract younger users. according to the wall street jo journal, the bots are tested by employees and aimed at driving engagement with users as well as helping with productivity. meta is working on a product for celebrities and creditors to develop their own chatbots as it looks to combat tiktok popularity. thank you, pippa. in washington, hopes to avoid a shutdown is now looking slim to get the deal done before the

deadline. we have emily wilkins with the latest in washington, d.c. >> reporter: good morning, frank. it is not looking good. there is no sign at this point that congress is going to be able to fund the government before saturday night. that's going to set up a shutdown that could last for weeks, potentially. house speaker kevin mccarthy wants a stop-gap measure to the floor this week to avoid the shutdown. others don't want to continue the government funding currently e even if it is for a bit. they want to pass the longer-term spending bills. republicans teed up four spending bills for a vote this week, but it is not a guarantee that they will pass. you saw a handful of problems last week where a small number of republicans blocked the bills from going forward. frustrations are growing within the larger republican party with

the small fraction of members. garrett graves said not funding the government would be a failure for the entire gop. >> our troops to go out and put their lieves on the line and no be paid. we need to fight to close the southern border, but not have the border patrol paid. this is an unreasonable situation. it would be a failure on our part if we reach that point. >> reporter: meanwhile, the senate has entered the ring to work on their short-term spending bill. that is likely to be bipartisan and include funding for ukraine. if the senate passes the bill first, mccarthy has to decide to bring the bill to the house floor and work with democrats to end the shutdown. that would mean that members of his own party would then try to oust him from his speakership.

frank, it is set to get complex in d.c. which is not where members wanted to be six days before the shutdown deadline. >> a lot of hand wringing going on in d.c. you touched on it a second ago. what does it mean for mccarthy's future as the speaker of the house? >> reporter: it could mean the end of his ability to be speaker. it depends how things play out. at this point, you have the small number of republicans who want to see mccarthy ousted, but the majority of the house republicans who back mccarthy. they say there is no one else who can do what he is doing right now. they think he has been good at leading the conference through the rocky periods. the fact of the matter is, if a small number of republicans team up with democrats, that will be enough to force mccarthy to give up his speakership. the question is what deposition

w -- what democrats will do and they are keeping their powder dry. >> emily, thank you very much. coming up on "worldwide exchange," new developments for china's evergrande over the ability to survive. as we head to break, we have top trending stories. we start with the quest for love getting expensive. tinder looking for a subscription tier for $499 a month. that is hundred. it is offered to the most active users and will begin accepting applications on a rolling basis. a no-go for lego. they will halt making bricks from recycled plastic instead of oil-based plastic. saying it is impossible to find the right material for factories and switch would have led to higher carbon emissions.

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exchange." we start with the morning call sheet. jefferies hikes the astrazeneca rating to buy. shares of astrazeneca up over is.5% 1.5% in the pre-market. a . and wolfe initiatives brings instacart to a buy. shares of instacart are down right now in the pre-market. time now for the global briefing. we start with the big story. property developer in china evergrande cancelling meetings this week with creditors. saying it must restructure it's

payment plan. shares of evergrande falling double digits in hong kong down 22%. eu warns of more assertive fair competition calling out the lack of reciprocity. the comments coming during the eu's trip to china as they investigate the supply chains at home and takes on a de-risking str strategy. shares of qantas airlines will spend more on customer demands than planned. this as investors question the profitability outlook due to high costs and series of cancellations and complaints of lost luggage. eu regulators are blocking booking holdings deal of

etravel. it would strengthen bookings independin the market. coming up on "worldwide exchange," one word every investor needs to know and it could be more trouble ahead for stocks. if you haven't already, follow us on "worldwide exchange" by using your favorite podcast app. and as we head to break, we are celebrating hispanic business leaders with you as we celebrate hispanic heritage month. >> as somebody who emigrated from latin america, one thing i'm proud of is the value i am able to bring. my family is from argentina and peru and i came from mexico. embrace who you are and knowing where you have come from is critical to set the path for success.

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welcome back to "worldwide exchange." time for the "wex wrap-up." we start with the hollywood writers and studios coming to a tentative agreement. ford says despite progress in some areas, it still has significant gaps to close on key issues before it could reach a new labor agreement with the uaw. the remarks coming after the uaw expanded the strikes at gm and stellantis fa scilities on frid. and ford says members have voted to ratify a new contract with the automaker in canada. reports suggesting that apple plans to increase output in india fivefold within ithe

next five years. apple makes iphones there and will make air pods there next year. amazon will invest up to $4 billion in artificial intelligence firm anthropic and take a minority ownership position. here is what to watch this week. we get earnings from costco and the home price index and new home sales. wednesday is micron and thursday reports from nike. we get a statement from fed we close out the week on investor sentiment. our next guest says the selling

last week is a slide for the markets. greg branch is here as our cnbc contributor and here in the house. >> good to be here, frank. >> you are known as a big bear. this is the first time you said we're on track for a slide which hasn't turned out so far this year. you said it looks like things are going in your direction. you are looking at the 10-year treasury at 4.5% right now. >> timing is notify forte, frank. i'm looking at the data. there are two things which are important here. the first is that i am probably higher than those who say higher for longer. i'm higher because the fight on inflation is not done yet. it may not be the central story any more, but you look at the metrics and few items have shown contraction. electricity at 1.7% and used autos at 70 bps.

the base effect is less favorable with energy becoming less favorable means the fed has more to do. >> with that in mind, because you are bearish -- >> not always. >> you are consistently bearish. >> yes. >> with that attitude in mind, what is the wex word of the day? >> precarious. we are willfully dismissive of information that disagrees with what we want. i want the market to go up. we want the markets to go up. i found particularly on these shows, frank, when i'm on with folks, we are willfully dismissive of things. i was on a show where a guest said we reached trough earnings. how can that be so with the cost of capital increasing and the search for workers is providing wage pressure? >> one thing is the consumer being stretched a bit. this is our today's consumer

stat. credit card losses above 3.6%. losses crimie climbing at the f pace outside the great financial crisis. what is your take on the big consumer stat? is that some of the data you are looking at which is pointing to you that things are about to slide and the consumer will weaken? >> of course. sentiment impacts spending. if we are going to see a number that is near rescicessionary levels, that is an indication of the number we will see. one of the ones i like to isolate is those most at risk. taking overall credit card holders and those who held for 30 years is not meaningful. when you look at new credit card holders, delinquency rate is 7.3%. you look at auto loans. 7.3%. well above pre-pandemic levels

sdplchlevels. >> that was a meatball over the plate. are you expecting a down day? >> i do. october 12th, the s&p was at 4,300. sorry, august 12th, s&p at 4,300. i expect a similar decline. >> futures climbing off their lows. greg, thank you very much. looking at the futures. they are off the lows right now. the dow looks to open up 20 points lower. keep an eye on treasuries. the benchmark 10-year is close to 4.5%. 4.495%. also seeing rising oil prices this morning on news from reuters on russia exports. something we continue to watch. wti crude at $90.35. brent crude up .50%. that will do it for us on "worldwide exchange." we have "squawk box" coming up next.

thank you for watching.

good morning. breaking overnight. a tentative deal to end the writers strike. we will tell you what's in the agreement and what comes next. meantime, ford says there are gaps to close before it can reach agreement with the uaw. we have the latest on the auto strike. we have the government shutdown. strike, shutdowns, all kinds of things. amazon announcing a $4 billion invest investment in an a.i. company. it is monday, september 25th,

2023. it's still raining. "squawk box" begins right now. good morning. welcome to "squawk box" here on cnbc. we're live from the nasdaq market site in times square. i'm becky quick along with joe kernen. andrew is off today. yes, it is still raining. four days later. >> okay. rain is a good thing. >> we're here. that's better. let's look at what is happening with the u.s. equities. right now, the dow is down by 3 points. s&p futures down one. the nasdaq off 12. last week was rough for the markets. if you look at the signs of the pressure from the outsides, people are writing stories, joe, about the industrials down t8% since august 1st