♪ good morning. welcome to "street signs." i'm joumanna bercetche and these are your headlines. people gathering at the crossing between gaza and egypt. israel and hamas deny truce deal for people to get in and out. and markets weigh the middle east risk with all major averages dropping off.

the stoxx 600 hit a fresh nine-year high as brent crude is back above $90 a barrel. and poland's ruling party is falling short to stay in power with the former president claiming victory with a path to a liberal coalition government. >> translator: this result might still be better, but already today, we can say this is the end of law and justice rule. good morning. our top story today is crowds of people in gaza moved south to the rafah border crossing in egypt. this comes as egypt agreed to open the border to allow foreign any nationals to move. hamas and israel have denied a

truce is under way. and gaza has continued to take strikes for the last week. more than 4,100 have been killed since the start of the war. nearly 500,000 residents left for the south as it gears up for the next stage of the war. the u.s. secretary of state antony blinken will return to jerusalem today. his push for diplomacy came as hezbollah launched attacks on israel. iran's foreign minister called on israel to stop the attacks on gaza warning the war might expand across the region. president biden warned iran against escalating the war with israel and hamas. in the interview on "60 minutes," he made the strongest

statements yet. urging israel to exercise restraint and not occupy gaza. nbc's ellison barber filed this report from the border with gaza. >> reporter: the section of the israel and gaza border was relatively calm other than a few pockets of the boom of arrtilley in the direction of gaza. we have seen military equipment moving through the area. so far, no indication that the expected ground assault by israel into northern gaza has begun. we heard drones flying overhead overnight. we heard fighter jets overhead. we have seen military equipment moving toward the direction of gaza and a fairly large and consistent presence of israeli troops in the area. israel defense forces have called up 300,000 reservists and

they are at the border with gaza preparing to launch the next phase of the war. they will attack hamas from the air, by sea and from land. they say the goal for israel is to make sure that hamas no longer has any military capa capabilities. a big question is what happens to civilians. this is a small pocket of land and not a lot of room for people to move to evacuate although 1.1 million civilians in the north of gaza have been told to move south. co co convoys have come under attack as people make they way south. there is not a lot of space to seek shelter. u.n. says people are shelters inside hospitals and schools. we expect the crossing into non-israeli territory, the rafah

crossing to open. the envoy from the crossing tells us it is open to foreign nationals. meaning they hold some other passport. at the same time that opens for them is when the envoy for the crossing and humanitarian aid will be allowed inside of gaza a an. >> that was ellison barber. let's bring in the chief of the post. good morning. >> good morning. >> it has been a week since the attacks on israel. israel had been retealiatiretal. there is talk of the ground offensive. let me ask you this. what is the end game here? >> i think it is important to note this is not retaliation. this is israel doing whatever it can to reduce hamas capacity to

ever carry out a massacre like last weekend. there's a great deal of support in israel for such an effort. it is a wall-to-wall campaign. we have a unity government tasked with carrying out the attack against hamas and its leadership. as far as the end game? that is to deplete hamas' ability to ever carry out this again. they are ensuring they are not impacted and israel must do what it can to ensure hamas doesn't carry out a massacre ever again. >> you say the number of casualties continues to mount. more than 2,400 people have been killed in gaza. palestinians in northern gaza

have been told to leave, but we know the crossings have been closed. today, there is talk of a cease-fire at the crossing. what is being done to minimize the loss of civilian lives? >> it is tragic that so many palestinian civilians are used as human shields by hamas for so long. hamas has embedded structure and control posts in civilian area was the intent of drawing israeli retaliation and israeli air strikes and ensure there will be maximizing casualties. israel has more support for human life than hamas. that is why it is sis urging pe to go to the south. hamas put up road blocks to prevent people from leaving. that is a dual war crime.

preventing people from reaching safety and those complaints are legi legitimate. we hope as many as possible will reach safety before israel launches the campaign. >> avi, i'm not sure if you caught the "60 minutes" interview with president biden. he said while hamas needs to be neutralized, the group doesn't represent the palestinian people. it would be a mistake for israel to occupy again. there needs to be a path to the palestinian state. do you see a path forward where israel and palestinians can live side by side and exist peacefully? >> i certainly hope so. it is important to be clear that this is not a kconflict between israel and palestinians. this was a conflict that killed

1,300 israelis and men and women executed in the street and babies burned alive in their homes. that is what we are talking about here. i would like to believe hamas is not represented of palestinians. most palestinians would oppose the whohorrific actions that to place one week ago. it is possible there could be a peace agreement. i know majority of israelis want that, but hamas has demonstrated it is an isis like organization. >> let me ask about the broader region. one of the initial reactions, i guess, is an interpretation is it puts the saudi and israeli talks on hold. we heard that the saudis have decided to put the talks on hold.

what is the israeli position here? is there a sentiment this is a path they like to pursue? they still want to continue talks with saudi arabia? >> there's very strong support for normalization with saudi arabia. saudi arabia has long been viewed as the holy grail and significant players in the arab and muslim world. for the immediate term, israel and israelis want to live in peace and quiet. that is why it has taken this campaign in gaza. it is a goal. it is something that many israelis is interested to see happen in the longer term. in the immediate term, israel has do what it must to deplete the hamas capabcapabilities. >> what about the future of netanyahu himself? we had the israeli finance

minister admitting it was a massive failure of security that this attack was allowed to happen. while the different political parties are rallying behind the flag now, it raises questions about the viability of netanyahu's government moving ahead. how do you see this playing out? >> well, it is certainly true this is a military and intelligence failure unpr unprecedented in israeli hi history. there was a commission that brought down the rule of prime minister then. there will be a similar inquiry once things return to normalcy. we already know based on public opinion polls, people hold government responsible for the terrible failure. i'm certain there will be a reshifting of the political the

map. >> avi, thank you very much for joining me. avi meyer, editor of the jerusalem post. coming up on "street signs, "today, we will look at the poland opposition which declared st victory in the general election. we'll be right back. i'm sholeh, and i lost 75 pounds with golo. i went from a size 20 to a size 6. before golo, nothing seemed to work. i was exercising for over an hour every day. it was really discouraging. but golo's so easy, the weight just falls off. this halloween, trick or treat yourself to the blendjet 2 portable blender... it's to die for. blendjet 2 gives you monstrous power for a delicious smoothie, shake,

or frappé anytime, anywhere. cleaning blendjet 2 is scary easy. just blend water with a drop of soap. recharge quickly with any usb port. boo-gie on over to blendjet.com and order yours today. 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

here's why you should switch j from chrome to duckduckgo. duckduckgo is a browser you download to your mobile and desktop devices. unlike chrome, the duckduckgo browser has privacy built-in. it comes with a private alternative to google search, which doesn■t spy on your searches, and it blocks cookies and creepy ads. and there's no catch. it's free. we make money from ads, but they don't follow you around. join the millions of people taking back their privacy by downloading duckduckgo on mobile and desktop today.

welcome back to "street signs." let's check in on markets. you see a lot of red on the heat map. risk off sentiment as the world is focused on the developments out of the middle east and implications for the broader region. overnight from asia, nikkei dropped 2%. the set up for europe was negative as we started off the trading day. stoxx 600 is down .40%. that is building on gains from friday with the stoxx 600 index

ending down 1%. risk off is prevailing today. in terms of the individual boards, this is what the breakdown looks like. every single one of the boards is under water. ftse mib is down .60%. germany is down .50% as well. a lot of talk last week at the imf annual meetings about the longer-term challenges facing europe with competitiveness and productivity. this is the bigger theme that we are grappling with. we speak of that with the industrial names with links to china. a lot of the themes we are seeing come together floor. the cac 40 is down .60%. the ftse 100 is relative outperforming down .20%. in terms of sectors, this is the leadership this morning. minors with a bounce up .50%. that is explaining the ftse 100 with glencore doing okay.

oil and gas in focus after the spike on friday with oil jumping 5% on the day friday. brent at $90 now. not close to the highs we got to a couple of weeks ago. we got close to $100, but moving in that direction. of course, as the market continues to price in broader regional issues coming out of the middle east and that will have an impact on where people see the price of oil headed. on the flip side, construction is underperforming down 1.1%. and let's talk about the majors. no surprise with the oil companies seeing a bit of green today despite the broader complex negative. bp and shell up .80%. others with a small bounce today with brent at $90. and in the banking space, santander is expanding in the

u.s. the spanish lender hired 100 investment bankers this year from credit suisse. in sharp contrast with the american rivals shedding stock in the last kfew months. the chairman said expanding in the u.s. is the logical next step opportunity. interesting that santander is looking to expand and many european banks are pulling back. and kkr submits a landline grid. the offer will expire, but it is looking to discuss past december. it is plan of the plan to focus on the services business as it tackles the debt. and atos chair is stepping down amid anger among shareholders as the french company tries to shell to the

czech billionaire. the former chief executive of unicredit will replace him. and softwareone is in a bidding war with two companies trying to acquire the company last week and four parties interested. cnbc reached out to softwareone who has not comment on the s story. one other company in focus is biontech. you can see the biontech stock is down 2.5%. under pressure after pfizer slashed sales guidance. pfizer cut the full-year revenue forecast on lower demand for covid related products. including the vaccine it jointly developed with biontech. biontech says it is evaluating the impact on of the write offs and any changes would be

reflected in the results due next month. > f pfizer is looking to open down 3% this morning. and this is notable news over the weekend. poland opposition party declared victory in the parliamentary election. the ruling law and justice party won the most seats, but not majority. the pro eu civil coalition led by donald tusk appears to have secured the majority potentially ending eight years of nationalist rule. significant developments in poland over the weekend. you can see it has rallied against the dollar today. a bit of the positive reaction in the currency there as politics is leaning to pro-eu. tusk praised this as a victory

for democracy. >> translator: i have been a politician for many years. i'm an athlete. never in my life have i been so happy about taking second place. poland won. democracy has won. we have removed them from power. >> the leader of the law and justice party will continue to work to promote his program. >> translator: remember, there are still hard days ahead of us. days of tension. the finale in the form of our program and everything we have done for poland, means this will be our victory. above all, poland's victory. coming up on "street signs," we are looking at u.s. banks as jpmorgan chase and citi and wells fargo posed quarterly beats with others due to report this wk. stay with us. we'll be right back.

meet the portable blender we can barely keep in stock. blendjet 2 gives you ice-crushing, big blender power on-the-go. so you can blend up a mouthwatering smoothie, protein shake, or latte wherever you are! recharge quickly with any usb port. best of all, it even cleans itself! just blend water with a drop of soap. what are you waiting for? order yours now from blendjet.com before they sell out again!

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 welcome back to "street signs." i'm joumanna bercetche and these are your headlines. people gather at the crossing

between gaza and egypt as cairo allows foreign nationals to leave the area, but hamas and israel deny getting people out and aid in. and european equities turn lower as they way the escalation in the middle east for the market with the oil and gas index hitting a nine-year high. popoland's doneald dutusk c victory. >> translator: this is the end of law and justice rule. we are just going to take you to some live shots that we have of the rafah crossing. this is the border between gaza

and egypt. while you can see the pictures are a little shaky, but it shows you and tells you a lot of palestinian nationals are moving toward that border and we have news overnight that the cease-fire has been agreed to allow palestinians with a foreign passport to exit gaza and go into egypt. those were live pictures of the crossing. let's look at europe markets and how it is faring in general. it is a day of risk-off sentiment for asia markets. nikkei down 2%. shanghai down .50%. in europe, the picture it negative. not as pronounced as we got on friday when the stoxx 600 ended down 1%. we are tracking down .75%. you can see every single board is trading in the red.

the ftse 100 tends to be more commodities dominated. we he ar are seeing a guidance and gas today. in terms of fx, this is the currency for the week. you can see it is a mixed bag against the euro and pound. we are seeing weakness in the u.s. dollar. that is interesting. euro is trading .20% firmer against the dollar. the pound is firmer against the u.s. dollar. up .20%. the chart has been quite remarkable when you think of the pound and how far it has moved. in terms of u.s. futures, this is how it is opening up today. we have the s&p up a couple of points. four points higher indicated to open. the dow up six points. nasa damdaq is basically flat.

let's look at the close on friday. you see it was mixed. dow up .10%. the nasdaq was down 1.2%. we had a bunch of earnings to digest on friday. let me bring you what we heard out of the major u.s. lenders. jpmorgan chase and citi and wells fargo posted a beat on the third quarter earnings as customers continue to spend and b borrow. jpmorgan chase came in at $40 billion. citigroup climbed 10% on revenue to $20 billion. wells fargo was the standout. it saw earnings sky rocket 60% to $1.48 per share and revenue climbing 6% to $20 billion. shares up 3%. leslie picker filed this report. >> reporter: on friday, we

received bank earnings from jpmorgan chase and wells fargo and citigroup. each of the executives offering a cautious tone about the state of the economy and yet when you look at the provisions they set aside for loan losses, not meeting the expectations of the street for more conservative capital set aside in the event those start to deteriorate. for example, here are the comments we got. jamie dimon said consumers are spending down the cash buffers and he said this may be the most dangerous time the world has seen in decades politically. wells fargo is seeing an impact of the slowing economy with loan basss balances declining. and citi said the continued acceleration in spending indicates a cautious consumer. take all that together and you may expect to see higher provisions than wall street was

expecting. that wasn't the case. jpmorgan chase reported $1.4 billion in loan loss provisions. below what the street was expecting. wells fargo with $1 billion below what the street was expecting. $1.8 billion below for citi. we will see more when additional large banks report this week. we have bank of america and goldman on deck for tuesday and morgan stanley on wednesday. for cnbc business news, i'm leslie picker. >> i'm happy to say the lead analyst joins me at the desk. i would say the initial take from friday is the banks continue to performance defy expectations despite the macro slowdown which we have been referencing. >> absolutely. if you look at the investment banking side of things, you see

the pick up in deal making and capital raising and companies forced to go into activity although the environment is tougher. that's helped the investment banking side with jpmorgan chase and citi. on the consumer side, correctly, the consumer is spending down savings, but credit quality has been pretty strong as well as loan growth. >> it is tis interesting that jpmorgan chase released the reserves it set aside for potential losses. let me ask you about net interest income because that continues to surprise to the upside. at some point, the so-called quote/unquote easy money for the banks will come to an end. >> that's true. the question is when and if there are other things to offset it. in the short term, what you are seeing is the banks are not passing on the higher interest rates to savers partly with the

fallout from the regional banks earlier in the year and people are keeping cash in the banks for safety. >> what is the outlook for net interest income for next year? >> i think we have seen forecast for second quarter next year is when things start to turn. that is something to watch out for. as we have been seeing, the banks defy expectation. it would not surprise me if there is another leg or trick to keep growing. >> to go back to the comment about the macro economy. i thought it was interesting that the citi ceo was saying that she expect recession. consumers started to spend down excess cash buffers. they built up savings during the pandemic. that is drawn down now. is it your expectation and i'll ask you if we do enter a

recession, is that reflected in the banking stocks and where the stocks are trading? >> it's a big question and if you look at the comments from jamie dimon, consumers are spending down their savings. there is a slowdown in consumer spending and no longer warning of a cliff's edge for the end of the year. maybe a soft landing at play. >> let's zoom out and talk about p ma markets. i feel the magnificent seven and big tech has been on everyone's radars. now people are worried about in general with the risk-off sentiment for the world. how do you say the path ahead is going for the magnificent seven or big tech? >> when we speak to retail investors in particular, last year, they were excited about the big tech despite the selloff

because you saw companies setting up for profitability. you have a.i. on top of that this year with the tech names driving the performance. there is a lot of i ha idiosyncrasies. people are still taking a long-term view and are excited about them. >> are people discerning where they want to put their money? as you say, there has been a lot of interest in a.i. or any company that's related to a.i. with the production or using it. i wonder if investors are able to distinguish between the hype and noise and the companies that are really capitalizing on the advent and use cases for artificial intelligence. >> i think there are two important points here. the first is the general attitude to risk.

rewind two caryears and investo would pile into nvidia and microsoft. now diversifying with etfs. the second point is around how a.i. plays out and everyone -- people i'm speaking to are betting those benefits are crucial to the tech players. we have not seen much. nvidia is the only one with a fundamental difference. again, with the performance of time and without a december 31st cutoff date, you can take a longer term view. >> i was at the imf annual meeting last week. one take away was central bankers are intent on keeping rates higher for longer in the fight against inflation. none has said they won. it looks like we are in the higher interest rate for a

longer period of time. what does that do to your investing framework and how you put your money in the market for this environment. what does that do to equity investing? >> it makes it a more challenging environment. the stock picker in me says this is a great environment to invest. if you look at a survey of 4,000 investors and about 20% of them are looking more and more into money market funds. they are more attractive and you are talking about banks and the context of savings rates offered or not offered. that is one aspect to think about. over time, people are excited by stocks and risk is off and relative to a few years ago. people are more diversified. overall, people are still inve investing. >> are people getting involved in trades? we talk about the re-rating for the value sectors.

here in europe, we talk about european banks and what needs to be done to capture the ratings that the valuation the u.s. counterparts have. that is a value sector. i don't get the feeling that too many people are going to hold on to the rates that do well at the beginning of the year and not in it for the long term. >> i agree. there is a difference with the retail investors and institutional investors. institutional tends to look for at value play. they don't need to run in and out and catch the opportunities. >> where would you say the retail investors looking in europe? is europe interesting to them at all? >> i think technology is always interesting. a.i. is a massive theme. as that translates to europe, you look at the chipmakers with

asml as an example or the tech plays in europe. i think overall, a lot of the focus tends to be in the u.s. because of where the opportunities lie. >> let me ask you what are people saying about the higher oil prices? it is a macro question. it is an important one. we are seeing it having a manifestation today with the oil and gas names within europe. more broadly, people are saying this could be inflationary. how are your clients looking in. >> they are looking for opportunities. it is less around higher oil prices as an opportunity. it is more around protecting the opportunity. if higher oil prices are looking to drive inflation, should we look at the complex or at etfs around oil and gas or minors and that sort of thing rather than

going into the oil futures. >> carl, thank you so much. fascinating conversation. we went around the world. great to have you with me. the lead analyst from finimize. we will have results from wall street this week with goldman sachs and bank of america on tuesday and morgan stanley on wednesday. we will get third quarter numbers from tesla and netflix later in the the week. for a full breakdown of the key earnings report and what it means for your money, subscribe to our premium service which is cnbc.com/pro. if you want to get involved in the conversations we had today, tweet me @cnbcjou. and coming up on "street signs," the man chemanchester u

sale comes to a close. we will take a look at what is happening. and 100 years for the most famous mouse in the world. we will have a look at what disney is planning. ve tim e to make anything healthy. you could if you had a blendjet. blendjet? it's the portable blender that makes the healthy choice the most convenient choice. i don't know. it seems like a hassle. hahaha! wrong. just pour in some milk, add some frozen fruit, and bam! you've got a nutritious and delicious smoothie. mmm! that is good. you're welcome, sad office guy. get yours today at blendjet.com are we in in an ad? we sure are.

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. the power goes out and we still have wifi shipstation. the #1 choice of onlto do our homework. and that's a good thing? great in my book! who are you? no power? no problem. introducing storm-ready wifi.

now you can stay reliably connected through power outages with unlimited cellular data and up to 4 hours of battery back-up to keep you online. only from xfinity. home of the xfinity 10g network. you're probably not easily persuaded to switch mobile providers for your business. but what if we told you it's possible that comcast business mobile can save you up to 75% a year on your wireless bill versus the big three carriers? it's true. plus, when you buy your first line of mobile, you get a second line free. there are no term contracts or line activation fees. and you can bring your own device. oh, and all on the most reliable 5g mobile network nationwide. wireless that works for you. it's not just possible. it's happening.

welcome back to "street signs." qatari businessman jassim pulls out of the manchester united football club. this opens the door with the board set to vote on the sale of the stake of 25% to give ratcliffe control of the sporting operations. what a sdtory this has been. i remember a report a couple weeks ago from qatar that this was a go. something has changed. >> all this time has gone on with the glaser family who owned manchester united and waited to make a decision on it. the expectation is this deal was done or set in stone to a large extent before june which is when

the transfer season opens to sell and buy players. that wasn't the case. now we are past that part and headed toward christmas and no sale in sight. it is because the glaser family is opening up and wanting more for the club. 6.8 billion pounds. the sheik offering 4 billion pounds. that means a quarter of the club will go toward ratcliffe. that is what he had put forward. i think that share price going down in pre-market gives you a sense that the expectation was that a full sale of manchester united would happen as opposed to a 25% stake going to jim ratcliffe. >> still, he would get control of the club's sporting operation. what does that mean? >> that is the hope.

because he specifically asked for that to be put in the contract which means he would be responsible for things like who is in charge of the club as it runs. meaning the ceo could change and sha chairman of operations could change. a different direct of football. y you could bring in fresher players. you could revamp the stadium. we have a story which we are working on that manchester united stadium which has been dilap dilapidated, could go from a 75,000-seat stadium to a 90,000-seat stadium. it would still be the largest stadium in the uk. just as big as wembley stadium. >> does that mean it goes from old trafford to new trafford? >> i don't think the name will change. that is a good one.

>> i thought you would appreciate it, arabile. great to have you on. thank you for staying on. you did three hours this morning. great to have out the show. okay. mickey and company will host a party as disney celebrates 100 years. bob iger returned for a second spell as ceo in 2022, but it has not been clean sailing with investors increasing their stakes. earlier this month, nelson the peltz reignited a proxy war with the firm, less than a year after dropping the initial battle. let's talk more about disney and the house of mouse with alex. great to have you with us, alex. i don't think the disney stock has done that well since we last spoke. the stock has been under a lot of sustained selling pressure.

14% in the last year. down 30% in the last five years. it really feels there is a lot on bob iger to turn this around. >> absolutely right, joumanna. it has been a weak performer this year. i think there is pressure for some decisive action from the company. it feels to me like a conglomerate that needs to find a more slimmed down structure and the presence of nelson peltz and possibly other investors will hasten demand for a breakup. the company talked about the cost cutting plan which has helped, but the price stock remains weak. the company has debt of $34 billion and market capital of 145. the debt is weighing them down slightly. as for the losses, it is in the streaming business. >> let me ask you about the

streaming business. everyone was excited for disney plus and netflix and so many companies made a push into the space. it seems it is increasingly competitive and it is a challenge to keep building up the subscriber growth and also building up your average revenue per user. rpu. what does this do for disney and will they have to reevaluate how much of a push they made to dismd disney plus? >> they will have to reevaluate. they have subscriber growth which flattened out and not finding out growth with the disney plus product. if you do back to the pandemic, everybody was stuck at home and streaming. netflix was flavor of the month. from that, there was a surge of new entries including disney

plus. the problem is the subs are not there. now we are free to go back out and go to theaters, we are not willing to consume online or stream as much. the big financial problem they have are the heavy losses which are incurred in the streaming business. that's got to be cut back. don't forget they are on the hook to buy the equity stake they don't own in hulu. that's the u.s. streaming business which they co-own with comcast. they have other liabilities. this is a big problem to solve. >> it seems like it. even if you go back to the core business, the media business is not doing well with. disney media. lots of challenges there. the parks business is a relative bright spot. >> that's right. the parks business is performing well. it is like having two escalators. one going up and one going down. traditional media going down and traditional parks business is going up. in the u.s., the problem is, we

are worried about the macro and outlook in terms of recession and what it means for consumer spending. the trend in recent quarters has been pretty good in the parks business p. the company has signalled they are looking to deploy more capital in this space. my overall impression of the company is the company trying to do too much and it needs to pare back. >> how much of a problem is nelso nelson peltz? he is pushing for a board seat. he went quiet for a few months. how much of a headache is this for mr. iger? is there any chance that nelson peltz gets a board seat? >> he would be the biggest share shareholder, but not big enough to warrant a board stake. these things have a habit of gaining momentum. the habit of developing momentum particularly if the investor is putting forward a tangible plan

for driving shareholder value. you mentioned, joumanna, the problem here is the stock is underperforming. it has performed for some time. it is incumbent on the company for shareholders to create value and reinstate dividends. >> they paused dividends back during the pandemic. that will be a big question mark for investors. let me ask you about streaming and the challenging with streaming. we have netflix earnings this week. that will be a bellwether for the sector. what are you watching out for there? >> i'm looking for more messaging around content spend going into 2024 because that's the variable cost which they have control together with marketing. they have less control over sub is de growth. the other issue is advertising in general will remain soft.

the big hope for the streamers six months ago is to introduce a new tier for subscribers and that would help them. unfortunately, the ad market is soft everywhere, not just in the u.s., but europe and uk. i'm looking for whether advertising is going. a lot to look forward to here from netflix. they remain very much the market leader and what they say investors take note of. >> i think it is interesting if we go back to the prior earnings. i do remember the crackdown on password sharing which was relatively a positive experience for them because they managed to net gain subscribers. the second thing is the rollout of the advertising supported tier. to what extent are they set in the narrative for the streamers as well and how likely is it that streamers, if netflix raises prices on the tiers and

how likely will others follow? >> disney is raising prices and i think most streamers want to raise prices. the problem is they are not sure where the pinch point is with subscriber resistance. how much is a big price rise and how much is material? consumers in most markets are rec re reticent on the price increases. netflix has the advantage of being the number one streaming service. everybody else dances to their tune. the general rule of thumb is most households, in better times, are willing to pay for two or three services. one of which is netflix or prime and then disney plus and others fall behind. they don't set the price, but they have to trim their losses. they are losing too much money on the direct-to-consumer streaming business.

>> it seems like there are a lot of headwinds at play here. let me ask you one final question about the macro. we talked about the debt load disney is sitting on in the environment where interest rates are rising or stay higher for longer. are investors selective about which companies they are choosing based on how much debt on the balance sheets? is this a problem for disney? >> it is because the debt stands out like a sore thumb. debt is always ahead of kwekt equity when it comes to getting paid. investors want the dividend, but that has to be used to service the debt. they have found themselves with too much debt in the wrong time of the cycle. this is across all sectors. this is a problem they have to solve which is why you hear about them selling abc or lineal channels or legacy lineal

channels. if they sell the assets, they can pay down debt and focus the conglomerate structure. >> interesting. this is great to chat to you. really did to talk about the views in the sector and disney now disney is celebrating 100 years since inception. pharma shares are falling after pfizer cut the forecast on lower than expected demand for covid products, including the vaccine it jointly developed with biontech. biontech says it is evaluating the impact of pfizer's write-offs and charges reinrelated to the vaccine. you can see all of the names we used to speak about a couple of years ago around the time of the pan pandemic, the companies that came up with the vaccines are trading underwater. pfizer down 2.7 and biontech

down 4%. moderna done 4% as well. now in terms of broader european markets, we are actually inching toward the green with the ftse 100. this happened in the last half hour. we are moving slightly more positive. the ftse 100 is up .20%. we are seeing an outperformance with oil and gas. cac 40 is down .80%. dax is down similar as well. a quick look at u.s. futures before we head out. things have turned positive there. all of the three majors are opening up in positive territory. we are watching out for more bank earnings this week with goldman sachs coming up tomorrow. that is it for the show. i'm joumanna bercetche. "worldwide exchange" is coming up next. is back from the dead. take advantage of spine chilling savings. blendjet 2 gives you monstrous power for a delicious smoothie, shake,

or frappé anytime, anywhere. cleaning blendjet 2 is scary easy. just blend water with a drop of soap. recharge quickly with any usb port. boo-gie on over to blendjet.com and order yours today.

hi. i'm wolfgang puck when i started my online store wolfgang puck home i knew there would be a lot of orders to fill and i wanted them to ship out fast that's why i chose shipstation shipstation helps manage orders reduce shipping costs and print out shipping labels it's my secret ingredient shipstation the number 1 choice of online sellers and wolfgang puck go to shipstation.com/tv and get 2 months free is it possible my network could take my business and wolto the next level? it is with comcast business. powering all your devices with gig-speed wifi. and you get fast downloads and uploads. pick it up! pick it up! oh we got this!

because it's powered by the next generation 10g network. more speed for your business? it's not just possible. it's happening. get started for $59.99 a month for 12 months. plus, ask how to get an $800 prepaid card with a qualifying internet bundle. comcast business, powering possibilities.

it is 5:00 a.m. here at cnbc global headquarters. here is your "five@5." the appetite for risk appears to be waning. investors paying close attention to the middle east as the u.s. sends a carrier to the middle east to stop the conflict. and focus on earnings with big banks and tech report. we do have the set up here on "wex." pharma stocks are getting rocked after a warning from one