and that's all for this edition of "dateline." i'm craig melvin. thank you for watching. ♪ good morning. welcome to "street signs." i'm julianna tatelbaum and these are your headlines. tesla and netflix kickoff tech earnings stateside with the pre-market shares surging double digit on strong is subscriber growth, but investors hit the brakes on tesla. the stoxx 600 mulls back 1% tracking asia in the red.

s.a.p. out performs thanks to double digit cloud revenue growth. the u.s. says egypt will open the rafah crassiossing to w aid into gaza. coinbase picks ireland as the base and washington is preferring to pick fights than resolutions. >> it is perhaps they take advantage of the tragedies that occur to focus on sectors or industries. good morning. welcome to "street signs." tesla and netflix have kicked

off the tech earnings with both reporting after the bell yesterday. netflix is up a whopping 13%. tesla in contrast down 4.5%. let's detail what we learned. tesla has posted the first top and bottom line miss since the second quarter of 2019. vehicle price cuts drove margins down 16.3% excluding credits and marking a fourth straight quarter of decline. shares initially rose in trade, but dipped as ceo elon musk said he is concerned about high rates weighing on consumers and emphasized the need to make its cars more affordable. >> i'm not saying things are bad, i'm saying they might be. i think tesla is an incredibly capable ship. we need to make sure if the

macroeconomics conditions are stormy, even the best ship will have tough times, the weaker ships will sink. we're not going to sink. even a great ship in a storm has challenges. >> john blank joins us now to talk through tesla earnings. john, thanks for being with us this morning. we just had elon musk there with a warning of the impact on high rates for the demand for tesla cars. i wonder to what extent the softening demand for tesla is down to the macro environment over increased comepetition fro peers? >> it's a great question. i think the answer is more or less what elon musk was referring to which is a weak macro economy environment. it is very difficult to make a decision on a car other than a monthly payment and monthly

payments are driven on a f five-year loan which is about 5% or 6% now. that puts auto payments much higher. that is the pushback with the price cuts. if you factor in the interest rates, they are flat from the monthly payment perspective. that is softening demand. that is what they are seeing n. a cyclical environment with cyclical tools, auto is the place you look and tesla caught that factor in their earnings report this time around. >> even before rates rose to where they are now, elon musk made it clear that his strategy would be to take market share by competing on price. ho how long do you think this strategy will persist? you are looking at margins dropping to 16.3%. i had a look back historically,

we were at 26.8% a year ago. we have seen a market impact on margins already. >> that's correct. i don't think there is much more effort he can make in the model 3 context on price cuts. he is where he needs to be. you factor in the $7,500 tax cut for auto buyers and that is a good deal for the model 3. the next generation that did not get a lot of air time in the call, but should have, is the cheaper price point than the model 3. that may be volume growth for them. the model 3 price cuts are close to being done in the u.s. context. >> john, elon musk talked about cost cutting on the call yesterday and clearly under pressure with the dip in margins. he said they will ruth llessly t

costs. where are the further cost cuts come from? >> it's a good question. the only problem here is you have cap ital expense which is eating up the cost savings in the overall expense column. i don't know where they will get the cost cuts. they have this next generation vehicle which whill put them in the low 30s. that will mean a new framework. that is the problem here. if they try for a new framework in the u.s., that's a different model car and that is multiple years out. the other solution is to do it here in china with the shanghai factory. they raised the volume. the other solution is to scale big in china. that's a different model that gets into trade and tariffs and a lot of sticky politics.

i doubt they'll do that. they often talk in the conference calls about pennies and that's the solution. you have to go to the tier two suppliers, not the tier one and carve out pennies on small parts. that's the problem. >> john, what is the latest on china? you talk about the opportunity and what they might do moving forward. how is the business doing? they have substantial manufacturing base in china that ex-pports to other parts of the world and then the chinese consumer itself. how is the business doing there? >> from what i understand, they are doing relative lly well. th they have ha low price point. from the middle price point consumer in china, that is a very a tttractive price.

there is a 5% growth rate for 2023 which is pretty strong. i expect out of the covid pan pandemic, there is cyclical purchasing. they do have lower rates and rate cuts coming from their central bank. they have a lot of support from the idea they are making this car in shanghai and for the chinese market. all in all, it is one of their strong points. >> john, let's wrap up with the cyber truck. this was another downbeat point for elon musk. he said we dug our own grave with cyber truck. it will take massive investment to reach a price point people can afford. is this a negative take already priced into the stock? >> this is the key usuaissue he. you have a stock that is trading -- $4 a share on earnings available next year. that's next year.

you have a stock at 240. that is a 60 pe. this is an $800 billion market cap. if you do any valuation metrics on this stock, as a stock with the hype and hope and all the expectations for a thing like the cyber truck, you end up with a double price of what it should be right now. if cyber truck as musk points out in the next 12 to 18 months delivers no cash flow benefit, he gets then 125,000 units, that's 5% of the company. there's just nothing there for the shareholder in the cyber truck in the next year or two. longer term? absolutely. not in the next year or two. markets price in the next year or two. the problem with the tesla stock and it is so hyped. it is the market cap that includes all of the additional automakers out there. that is crazy.

from the simple valuation perspective, i would pay 30 times earnings for the stock. it trades at $4 a share. that is half of what it is priced at which is 120. cyber truck is a big hype. it doesn't have the benefit from the shareholder. >> john, thank you for joining us from california this morning. john blank, chief strategist at zacks. and let's move to netflix with the pre-market numbers with the largest subscriber gains in 2020. that was driven by interest in the ad supported plan which saw memberships surge 70% in the last quarter as well as the company's crackdown on password shares. arjun joins with us more.

breakdown what has driven the stock to double digit gains? >> there was a lot of bearishness in the report from netflix. the question is how can the maturing businesslike netflix still have what it takes to continue to grow and satisfy investors as a growth company and what it showed is it still is very much leading the pack with the streamers. it is very much a key part of customers streaming pfortfolio s cord cutting continues. people are still willing to pay for netflix despite the crackdown on password sharing and the price hikes. there were fewer things investors wanted to see which was delivered by netflix. the first one is more information about the $6.99 ad supported tier. 70% year on year subscription. 30% of new signups are to the ad

supported plan. the second was on the password sharing crackdown. cancellations or subscriptions are low with the healthy retention rate. the third was margins. they expected a margin of 20%. the forecast for 2024 is between 22% and 24%. of course, they managed to hike prices as well showing pricing power in the market. the key was the forecast for q4 was positive. that is why the bearishness has gone away and we have seen a big market move for netflix. >> arjun, thank you. those results came through after the bell yesterday. let's look at european trade this morning. we are off to the downbeat start. stoxx 600 is down 1% in the opening hour of trade. this follows a downbeat session

in aircsia overnight and the pullback on wall street yesterday. we are seeing global market sentiment take a turn for the worse. it seems to be in part to rising geopolitical risks over what is happens in israel and middle east and fresh rise in borrowing costs. yields moved higher yesterday from treasuries to sovereign bonds as investors digest the stories coming through with earnings. breaking it down by region, very broadb based pull back with the dax compared to the rest of the market thanks to sach.a.p. ftse 100 is down 1%. smi in switzerland is down 1.6%. breaking it down by sector, you can see what i mean by the out performance in s.a.p. the only basket of stocks in the green. that is thanks to s.a.p. up more than 1%.

household goods is down .50%. the next best performing sector in the market. it is a standout day for technology. on the down side, autos pulling down 2%. real estate is also under per norm performing. and roche is down 4.5%. nestle is a big drag down 2% after earnings. nokia announcing job cuts and that stock taking a hit. renault is down 7%. it posted a third quarter group revenue of $2.5 billion which beat forecast. the carmaker expects operating margins to increase to 8% in the second half of this year. taking a look at the broader

auto space. you have a pullback across the board with stellantis down 4%. coulntinental down 2%. the drag on the basket is renault. let's get to charlotte for more on the numbers which is pushing renault shares down. >> they went below expectations. up 7.6% in revenue in q3. this weighed heavily on the pace of growth. they had a positive tone with the operating margin in the second half is expected to be higher than the first half. the first half did reach a record at 7.6%. they expect this number to be higher in the second half. that was a positive from renault with the strong operating margin

in the past. they were moving away from volumes and focusing on margins. consumers were looking at higher end segments with the ev released recently. all eyes are on the ev and software unit that they are reorganizing the group with nissan. they have said the carve-out will become in two weeks. they will go forward with the ipo market in 2024. they are looking at the first half for that. investors are waiting for more information. >> charlotte, you mentioned tesla. i saw renault and they said they

will not go with the discounting model like tesla. a very different approach from renault. charlotte, thank you for the breakdown. let's look at nestle. the stock is down 2.5%. nestle reporting lower than expected sales growth in the first nine months of the group. they hiked prices by 8.4% as it deals with higher input costs. sales volumes fell, but ceo mark schneider is confident in the recovery. to roche, another drag in the swiss market, down 4.5%. it reported a 6% fall of sales in the first nine months of the year. speaking to cnbc, the ceo spoke about future health crises. >> i don't believe we have learned the lessons we should have learned in the last

pandemic. i think it is important that we take those learning and implement what we need to do to be prepared. the next pandemic will come and one of the concerns i have is that potentially antibody resistant bacteria could be that pandemic. we need to focus on preparing for such situations in the future. >> on the bright side, the technology sector is out performing thanks to s.a.p. s.a.p. reaffirmed guidance after cloud revenue rose 16% to $3.5 billion. the ceo said the company has made itself a crucial supplier as companies battle inflation pressure. >> the topics in the boardroom is offsetting the information pressu

pressure. it is manufacturing and supply chain. you need to transform your bus model. this is all about our supply chain solutions. it is about the work force and how to provide skills in the next evolution of a.i. which will impact every industry. you have to have the skills. this is also our technology. this is what matters in the board boardroom and this is why we are confident. finally to nokia. the stock under pressure at 1.9% after announcing it will cut 14,000 jobs after the third quarter net profit plunged. net sales fell to 5 billion euro. the company said the jobs cuts will help create efficiency in the challenging market environment. so much to discuss in markets today. get in touch. tweet me @cnbcjoumanna.

when we return, our attention returns to israel. rishi sunak lands in the country following in the steps of u.s. president biden. we will have the details next. 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.

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welcome back to the program. the u.s. reports a deal with egypt to open the rafah border crossing with gaza to allow 20 trucks of aids to enter the territory. the site experienced damage and first sflieupplies will not come until friday. the breakthrough came after president biden held talks awit president el-sisi. and iran is threatening action against israel as it prepares for a ground incursion into gaza. tanya caught up with the foreign

officials. he said iran is doing everything it can to damage israel. >> we know after the hamas a carried out the attacks, they put out a statement thanking iran for their help to hamas. we don't know what that help was, but almost certainly we do know that hamas have been supplied with arms smuggled into gaza over the years. some of which would have been used in the hamas attacks. there is no serious doubt even the iranians do not the challenge they are doing all within their power to damage israel. that is something, incidentally, has another consequence because the other enemy in the region is saudi arabia. saudi arabia and israel have a common concern about iran and in politics as well as elsewhere, sometimes my enemy's enemy is my friend. that is why the saudis and

israelis, until recently, were struggling to improve their relationship. that will come back. there is a strategic region why israel and saudi arabia will come to the view they have more in common than that which still divides them. >> uk landed in israel for a visit. he will hold talks with prime minister benjamin netanyahu. sunak would then meet with counterparts from across the middle east without specifying further details. for us, dan murphy is in studio. you know him from the middle east. he is based in the region. it is great to have you in person, dan, to help us understand what is going on over there. let's kickoff with rishi sunak's visit. what is he looking to achieve? >> this is a great goal, julianna. first, rishi sunak is attempting to push forward in securing more

aid for arigaza which has seen t route opened on the rafah crossing. that humanitarian support which is first on the minds of the western leaders and can begin to flow. secondly, he needs to work to secure the release of british nationals still in the area. we know he ththat will be top o agenda for the foreign secretary who is touring the region. the uk diplomatic offensive begins today. it will run for the next three or four days. we will see the foreign secretary moving into turkey and into egypt and into other parts of the region and working with arab leaders and having the conversations about a pathway to deescalation. this also follows the president's visit to israel. it was a fleeting pit stop. some called it an audacious visit given biden's busy schedule. he achieved two things. the first was support for israel and then guaranteeing aid.

the third was a failure in some respects. he failed to deescalate the situation. that is obviously front in mind for arab leaders who are concerned about the state of play between arabs and israelis and palestinians and the tensions in the region at the moment which are absolutely soaring. >> i wonder to what extent president biden's efforts were hindered by the fact he had to cancel the other stops originally on his tour in the wake of the hospital attack. many were surprised to see president biden come out yesterday explicitly taking israel's side claiming they were not behind the blast. >> indeed. so soon after the incident h happen as well w, we saw the president holding the reminder

card sitting next to prime minister netanyahu working through a tragedy on the ground. the bombing of that hospital and adjacent area has caused a huge uproar in the arab world. it is hard to understate this. it is so critical. it is a watershed moment for the region. when it comes to the blame game, the u.s. has independently done its analysis on this and it has assessed it was, it says, a palestinian-islamic jihad report that misfired and hit that hospital. backing the claim israel was not behind what happened. the u.s. has said this is based on several things. the first is analysis of overhead imagery and the second is intercepts and the third is according to the international council. it is fair to say that many palestinians and arabs across the region will refuse to accept this verdict. they say this was a targeted

attack by israel on that hospital and that vicinity. the blame game continues over exactly what happens here remains to be sign. >> dan, thank you for bringing us the details and it is important to hear the evidence that the u.s. has used to back the claims. you can follow our live blog on cnbc.com. still ahead on "street signs," coinbase takes the next stage in the european expansion. we will have an interview with chief legal officer paul grewal after this break.

welcome back to "street signs." i'm julianna tatelbaum and these are your headlines. tesla and netflix kick off earnings stateside and the streaming giant hitting double digits, but investors hit the brakes on tesla as it issues a cautious outlook. risk off. rising yields with pressure on

global equities and stocks following asia lower as the yield on the ten-year treasury hits the highest level since 2007. and roche taking a hit in the sharp pull back on covid products. there are lessons to be learned from the last three years. >> it is important that we take those earnings and implement what we need to do to be prepared because the next pandemic will come and one of the concerns i have is that potentially antibody resistant bacteria could be that pandemic. and egypt will open the rafah crossing after president biden's visit to israel, but not until friday after air strikes damaged the site. we're about an hour and a half

into the trading section. let's look at the european equities. red across the board. we bounced off the lows, but still trading lower across the board. swiss market down 1.4%. you have nestle and roche dragging on that region. meanwhile, in contrast, the dax showing more resilience down 3%. s.a.p. with shares in the tech stock up 5% after delivering earnings. ftse 100 is down 1%. you have ftse mib down 1%. a lot of the action in stock markets has been tied to what we have seen in bond markets. yields moving higher across the board. u.s. fed is expected to hold rates firm at the meeting starting october 31st with the fund futures pricing in a 90% chance of a hold. investors expect to maintain rates higher for longer.

christopher waller says more tightening is needed, but for now, wait to see what the economy does and evolves before mak making a decision. new york fed president john williams said the fed made progress on tackling inflation, but is not done. jay powell is set to deliver a key speech at the economic club at new york today with markets looking for confirmation. wall street is looking at further losses this morning. dow jones industrial average is look to up 100 points lower after the 1% pullback yesterday. s&p and nasdaq with a weaker start. yesterday, the s&p closed down 1.3%. nasdaq closed down 1.6%. 9 of 11 sectors were negative for the day. you had underperformance in the cyclicals and consumer

discretionary. the closing levels for the three indices. the dow jones transport dropped 3.4%. the worst trading day since april. a downbeat session for u.s. equities. i prmentioned treasuries. that was a key driver for d downbeat move in equities. we see the ten-year yield trading at 4.57%. closing at a new post-financial crisis high. two-year yield trading at 5.25%. the 30-year yield is back above 5%. china holdings of the u.s. debt have fallen to a 14-year low after the country was a net seller of u.s. treasuries in august. perhaps that is the weakness we have seen in treasury markets. chinese holdings fell over $16 billion to $805 billion.

the lowest level since 2009. beijing remains the second largest holder of debt after japan. let's look at commodities. it is worth keeping an eye on. gold rose to the highest level since the end of july. this morning, we are up 11 basis points or so. oil prices rose yesterday and strongly after the iran foreign minister calling for an embargo. you have brent down 1.2% to $90 a barrel. wti down 1% to $87 a barrel. crypto exchange coinbase announced ireland as the market asset pace. the decision which markets an important chapter in the expansion. this move is subject to approval by the ireland central bank.

let's get to arjun kharpal who spoke about the decision. this is making pretty big headlines. >> this is an important piece of regulation in the eu for mica. it is the cryptocurrency industry is looking for with regulatory clarity. one of the big parts of the regulation is the fact it allows companies to apply for licenses and passport the services across the eu rather than getting a license in every country. i caught up with paul grewal, the chief legal officer at coinbase, to ask about what this means for the european expansion. listen in to what he had to say. >> coinbase has 15% revenue across europe. we had substantial presence. we have over 100 employees in ireland. i expect that number to grow as

that business grows. for us, we will approach the opportunity in a responsible measured way and let our customers drive our investments and drive our focus on what opportunities to pursue t.. it is an exciting future. we think this is the right time and place to expand. >> europe is a big focus for coinbase as they continue to invest. crypto has been back in focus of regulators and politicians over the last week or so given the conflict with israel and hamas. in particular in regards to terrorist financing via crypto. a report a week ago, militant groups, including hamas have been using cryptocurrency and tether froze 32 wallets linked to terrorism in israel and ukraine. clearly, this raised a lot of

questions. senator elizabeth warren wrote a letter to jake sullivan as well as the treasury department. they call crypto funding for terrorism is an issue. paul grewal of coinbase touched on this. i asked if he expects further scrutiny from the u.s. government as a result of the reports. listen in to what he had to say. >> understandable and an appro appropriate. the issue of terror financing is a serious one. coinbase and crypto offer an important model for governments to partner to thwart these financial activities. i think it is unfortunate, arjun, that politicians in the united states and perhaps elsewhere, sometimes take advantage of the terrible tragedies that occur all over

the world to focus on particular sectors or industries. the reality is that the vast majority of terror financing takes place outside of crypto and in traditional financial services. it is important every industry and participant fulfill its responsibilities to keep these illegal organizations off their systems. >> on that broader topic of regulation in regards to the cryptocurrency industry, you praised the eu approach to it earlier. do you feel that regulatory clarity in the u.s. is any closer? >> we are making progress. it may be progress that is slower than i would like or coinbase would like as a company. the fact of the matter is we are seeing in court cases real questions asked about the u.s. approach to crypto regulation and in particular securities. judge after judge is asking questions about the u.s. securitiyies laws and challengi

some points on whether tokens are skrecurities at all. mica, on the other hand, offers a not quite perfect model . a more substantial approach. it is not caught up in the turf fights like in the united states with the transactions are securities transactions or commodities transactions. the question is keeping consumers safe. >> it has been a fascinating year if we look at price with bitcoin doing well. we see volumes on exchange and including coinbase being relatively low. do you think there is a whole generation of retail investors who just got burned badly that we saw last year and won't

return to the market or are you optimistic you will see the volumes come back? >> i'm encouraged that a number of the bad actors in the space are held to account through criminal trials and through aggressive regulatory action. it is critical to inspire confidence in the retail sector, but all sectors that are interested in crypto. we are excited there are a number of developments that are just around the corner or underway that will bring back investor and consumer interest in crypto. we think it is quite positive that the u.s. court of appeals rejected the s.e.c. rationale when it turned away grayscale request with the bitcoin etf. we think other etfs will come online soon enough as the s.e.c. follows the law and is required to apply the law in a neutral way to the applications that are

pending. we think there are new products and services to serve the markets to draw further interest in crypto which have little to nothing to do on the value of the assets. there is a lot to be excited about in crypto. it is taking longer than we like. >> that was chief legal officer. it was a wide ranging interview. we went across the issues with terrorism financing crypto and the broader markets as well. interesting, i think, that he feels that crypto, in particular, has had scrutiny, but over the odds that he feels other forms of money such as traditional banking are funding terrorism financing. >> he is saying they are taking advantage of the crisis as an

opportunity to push their agenda to crackdown on crypto. obviously, the flip side of that coin, this is precisely the time you would see heightened use of crypto if you see it for terrorism financing. what did you make of the comments on the outlook for the crypto? i think bitcoin trading at $28,000 right now. how does it reconcile the other comments from the crypto community? >> there is growing bullishness going into 2024 with crypto. that is based on a couple of reasons. one is we saw the s.e.c. had a chance to appeal a ruling which said it was wrong to reject an etf application for bitcoin. this is a big topic. etfs. the s.e.c. did not appeal it and that suggests we could see bitcoin etfs come to market. many see etfs as a way to

broaden the investor base of bitcoin bringing institutional investors to buy the etf rather than go on the exchange to buy bitcoin. etf is seen as a huge boon for the market if the s.e.c. allows it to come to market. the second thing is the bitcoin harvest. that is where the bitcoin miners get rewards for mining are slashed in half. that is a way to keep a lid on inflation in bitcoin, but reduce the amount of supply which creates scarcity. and every four years, you see price action to the upside. there is a little bit of that. the big question he for me is whether is propelling bitcoins to all-time highs in last few cycles is the retail investor driving this higher as the frenzy as the price continues to rise, draws in investors. the question is how scarred are

the retail investors after what we have seen with ftx and after 2022. will they be confident enough to dip their toe back into the water and will that be enough to propel bitcoin back to the all-time highs which were near $70,000. >> combined with the fact that the retail investors are facing economic pressure separate from what is happening in creypto markets and the experiences in the past and there is concern we could head to the recession in the u.s. where the bulk of the retail investors come from. is there consensus around how bitcoin will perform if they do see a meaningful economic downturn? >> the pitfalls means this is a hedge against inflation and it is an effective hedgetheory, in

strive, bitcoin is where you should park your money. others say bitcoin is a risk asset and in particular similar to some of the technology growth names we see. in time, interest rates and economic difficulties, and they may not perform as well as investors look to more safe haven markets. this is the first real, real test of that thesis for bitcoin. i don't think bitcoin has been in the economic cycle like the one we are seeing currently. it remains to be seen how it plays out and which ideology wins over. this year, bitcoin has proven safe haven status up 70%. people are flocking to it. it out performed gold and stocks. it has done very well. going into next year with the positive catalyst behind it, can it continue that momentum? there is still a question. >> you will be hear to walk us

through the twists and turns. the full story from arjun's interview and what is happening with coinbase choosing ireland as headquarters is all on cnbc.com. we are going to take a quick break. here is a look at european equities. we are lower across the board after a weak hand over from asia and the down beat session from wall street. all three majors ending more than 1% lower. 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!

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welcome back to "street signs." let's get a check of markets. european equities trading lower following their global peers. the ftse 100 down 1.25%. selling has accelerated once again. swiss market under pressure down 1.4%. the dax showing resilience down po down .50% thanks to s.a.p. shares up 5% after strong growth in cloud revenue. cac 40 in france trading down

1%. turning to bond markets. this is important to note that a lot of the downturn in equities has been tied to the move higher we have seen in yields across regions. you have all european sovereign bond yields trading higher this morning. yesterday, sovereign bonds continued to sell off hard on both sides of the atlantic. uk was the big either underperformer yesterday. now you can see european bond yields continue to move higher today. similar picture state side with the ten-year closing at the post-crisis high. the 30-year bond closing at the highest yield since 2007. yesterday, the dollar index road 0.3%. this morning, we are seeing stabilization. sterling is down against the

greenback at 121.08. stable moves in the dollar against the yen and the swiss franc. in europe politics, jim jordan has failed to win enough votes in the bid to become the n next speaker of the house. the house is now in the 17th day without a speaker after kevin mccarthy was ousted by a group of right-wing republicans. jordan believes the house will vote on his candidacy on thursday. mccarthy said the house should give jordan another chance to unite the chamber. >> i feel we're very broken. we have to find that ability to bring us back. you have to give jim the opportunity to do that. i think people are frustrated in a number of ways because of these eight. they are expressing that. if you are able to bring them all back, we could be strong in getting the work done. >> that was kevin mccarthy

speaking there. we will continue to keep an eye on that. i want to give you a check of where we stand on treasuries. two-year at 5.5%. the 30-year bond back above 5%. all higher on the day. that is certainly a story to continue watching and as we saw just moments ago, that move higher in yields spread to europe as well. the move higher in interest rates in the u.s. is having a substantial impact on the mortgage market. the average interest rate on the 30-year fixed rate has hit 8%. that is the highest level since 2000. we have been on a steady move rise. 8%. a key benchmark for housing for americans. a different structure to what we have here in the uk. wednesday saw a series of mixed indicators for the u.s. housing

market. adjusted housing starts rose 7% on the month after the 12% dip in august. meanwhile, building permits declined 4.4% having risen the previous month. in terms of the day ahead, we get weekly jobless claims and home sales for september and consumer confidence for september as well. if that wasn't enough, the fed chair jay powell is due to speak on the economic outlook. putting it all together, this is hue how the u.s. futures are shaping up. dow looking to drop another 100 points after yesterday's 1% drop. thank you for joining me. i'm julianna tatelbaum. "worldwide exchange" is up next. 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.

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it is 5:00 a.m. here at cnbc global headquarters. here is the "five@5." the rate shock hitting stocks again as treasuries surge to the highest level in a decade. ten-year yield closing in on 5%. investors looking for calm and may turn to paljay powell i closely watched speech and offering hints. and it may not be magnificent, but netflix surged double digits ahead of the open. and on the flip side, elon musk sharing a cautious outlook on tesla and the globa