craig melvin: that's all for this edition of dateline. i'm craig melvin. thank you for watching. ♪ welcome to "street signs" on this thursday morning. i'm silvia amaro and her e are your headlines picking up the baton from asia and the u.s. with driving gains across the stoxx 600 euro chip makers adding to the global tech rallies sparked

by the nvidia ceo jensen huang who tried to put the firm's ease over the blackwell chip production. the ecb lines up the second rate cut of the cycle as the market eyes another 25 basis point move lower with ceo sergio ermotti speaking to cnbc >> in general, for the ecb, the inflation topic is still open. i would say probably a cut, but not as the market expects. and u.s. inflation falls, but core cpi surprises to the upside the dashing hopes the fed will cut beyond the 25 basis cut next week david solomon tells cnbc he remains in the soft landing camp >> it's a soft landing camp. i think that is the most likely scenario

i can't tell you there's a something to set that off. very good morning, everyone. let's get started by looking at the action in european equities this morning they have been trading for just over an hour you can see on your screen it's basically green across the board. we have the stoxx 600 at this stage up by 1% yesterday, though, we lacked conviction in the european markets. we are seeing a different narrative today. i would highlight three events at this stage with the equity session today. you had the cpi print yesterday which basically gave us an indication it is more likely the fed will cut rates by 25 basis points that's the assumption from the markets at this stage. on top of that, we got the comments from the nvidia ceo bullish on demand and that is driving momentum on chip makers. of course, we cannot forget the

ecb. the european central bank is expected to cut by 25 basis points today of course, the key question is what commentary will we get from ursula von der leyen today what will the forecast say about the outlook for the european economy? let me show you the european bourses. all of the major bourses are trading in the green at the moment i would highlight the ftse 100 is up 1% we also got important commentary this morning actually from the bank of england in terms of regulation for the banks we'll be discussing this in more detail later on in the show. it is an important development because it could lead to changes for the banks and meaning they do not need to hold so much capital. we will see what happens in the future when it comes to this let's look at the individual sectors to understand who is the top performing sector at this

stage of the session you can see it is tech we are seeing tech rebounding this morning at 2.5% tech was also the best performing sector stateside yesterday by more than 3%. partially that is related to the comments i highlighted earlier by the nvidia ceo. that is having influence, i should say, in the asian session. we'll have more detail on that in just a moment, too. basic resources are also trading higher by 2.3% of course, i would highlight we are keeping a close eye on the banking sector yesterday, we got news from unicredit buying a 9% stake in commerz bank there are questions if we see a full takeover later on we'll discuss that as well let's look at the losers to understand what is happening on the other side of the equation we have food and beverages as the worst performing sector at

this stage marginally below the flat line. you can see we have green across the board. it is a positive mood in europe so far as we await the key ecb meeting later on today let's discuss chip makers in more detail because across the u.s. and asia, they are posting strong gains after the nvidia ceo jensen huang sees robust demand for chips huang says they are getting their hands on the semiconductors huang said there is a lot of responsibility on his company's shoulders. >> the demand is so great that delivery of our components and our technology and our infrastructure and software really emotional for people. it directly effects their c compe competitiveness. we have more emotional customers today and deservedly so.

if we can fulfill everybody's needs, then the emotion would go away it's very emotional. it's really tense. in the banking sector, commerz bank wants to remain a stand alone bank according to multiple reports according to bloomberg familiar with the matter the advisory board member told reuters he would fight any takeover bid the italian lender has a 9% stake in the bank and said it would seek regulatory approval to boost the holding further when you look at the price action you have 2% trading higher yesterday shares were up 15% on these results. unicredit shares also moved higher off the back of the latest news.

you also have unicredit trading higher by almost 2%. this story has provided momentum for commerz bank and unicredit there were questions of what unicredit would do with the additional capital they have and they seem to invest that in germany and even more so going into the fauture. let's see what happens with the deal elsewhere, the dutch government reduced stake in amro bank cutting it to 40.5% on wednesday. the netherlands has been steadily trimming its stake in the lender since the national sags since the global finance at crisis the ubs ceo sergio ermotti says he expect a moderate cut today the scope for any cuts must be

to first fight inflation and stimulate the economy. the ubs chief laid out how his bank is working with capital requirements as a titan. >> it is fair to look at the situation and understand what can be done better i personally believe that capital is not necessarily the reason why, i mean, credit suisse failed and the fact that credit suisse relied too much on regulatory concessions when you look at the current regulation and currently implemented seems to be working with ubs with the same regulation was able to buy credit suisse. >> how would you characterize ubs' capital position and capital buffers? >> well, we are one of the strong capitalized banks in the world.

one of our core pillars of our strategy is to have a clear balance sheet for all seasons. if you look at the way our credit spreads in the market, we are recognized by not only bond investors as being quite a safe haven, but most importantly, if you look at our clients and how they reacted positively, we got $127 billion of inflows since we announced the acquisition of credit suisse. for me, when i look at bond markets and client inflows, this is the most important element to understand how solid we are. there is more on the banking sector the regulation authority has pushed back the b architects basel 3.1 to january

this is a mid the sector push back to force the u.s. fed to clamp down as well i'm pleased to say the global head at morgan stanley is joining us for more. good morning good to have you, elizabeth. i would first like to understand the implications of the changes in banking regulation. the fact we are seeing regulators in the u.s. and in the uk and eu making the regulation easier for banks, is this the right approach? have they forgotten what happened in 2008 >> yes, good question. these basel 3.1 rules are important for the banking sector you mentioned since the financial crisis, there is a gradual tightening of the rules and to make sure that banks have sufficient capital to deal with potential risks. um, i would say that the most recent announcement could either

be called a watering down of the final rules or the bank of england might say it's take an appropriate balance between financial stability and economic growth i mean, clearly, it's not an easy path to find because these rules are very complex and they have a lot of impacts on banks lis lending and with the final rules, they focused on trying not to make it harder for banks to lend to smes and trade finance and infrastructure so, one can understand why the bank of england would want to listen to the views of market participants and take action of course, we've also seen in other countries as well in the u.s. and in canada and in europe as being delays and some watering down of the final

rules. >> elizabeth, excuse me for a moment it is understandable with the comment and argument from the banking community. what i would like to understand is whether there's a risk here for financial stability. should we as users be concerned about the lack of financial stability as regulators rule back on some of these regulations? >> i don't see it as problematic because capital has increased in the banking sector there have been really significant improvements over the past years i mean, the bank of england has an interesting phrase that they mentioned this stability of the graveyard. you don't want financial stability rules to be so strict that it is cutting back on economic activity. so, i don't -- i think it seem to be relatively practicigmatic the bank of england has come out

with and there needs to be this level playing field. i guess we'll see further in terms of the implementation. i don't think it's a concern the banks won't have less capital, but the increase will not be as great as it might have been. >> okay. okay let's do a guy greographical comparison the eu rules will lead to almost a 10% of capital requirements for the banks. ultimately, when we saw the collapse of silicon valley bank, a lot of the comments were the rules in the united states were weaker for smaller banks compared to those in place in the european continent is there a risk here that we will see continued difficult ve diverge where banks in europe are facing tighter regulation? >> right it is very, very hard to bring

together and harmonize capital rules globally the structure is different and the amount of lending on the bank balance sheets is different in europe than in the u.s. as i see it with the final basel 3.1 rules, they are inching to actually introduce a little bit more harmonization you will never get to a place where they are completely harmonized this is the ability and calculations of capital that the banks are holding. there will be a small improvement, i think >> i also like to look at the latest developments in the banking sector the news yesterday and playing out today with unicredit and commerz bank

what is the outlook for the full takeover of unicredit? is there a time when the banking unit is not complete >> it does seem to be very challenging. presumably, unicredit has done the calculation and some potential there for them to further increase their stake clearly, given the commerzbank and state being held by the german government, that introduces that element of complexity there's regulatory approvals still in spain, we have the ongoing situation between bba. we see the deals are complex there are some benefits to having a consolidation in the banking system and we talked about comparisons between different countries. the u.s. has got much larger banks than in europe so, i think that we will have to

wait and see they'll be a lot of steps before they could, um, get to full ownership. >> a lot of steps ahead. we will see what will happen that was the global head of financial institutions at morning store. roche said the trial of the weight loss drug from six patients the swiss maker says it supports further trials at this stage, you see roche shares on the screen moving lower by 4%. it is an important market to look at as we continue to see further investment into this weight loss drug market. also where, the china's commerce minister is set to meet the officials next week. germany now stands alongside spain in calling for an end to

hikes on tariffs sanchez was the first to hit out against the eu measures this week looking to reconsider its position after talks with chinese president xi jinping saying the direction of travel is one that we share i want to share with you the latest comments from the iea that they published this morning a new report the international energy agency has now cut the 2024 oil demand growth forecast by 70,000 barrels per day. this is very important at this stage, of course, as we continue to monitor also how the geopolitical scene is having an impact on the oil market further commentary from the iea this morning suggesting they see global oil demand growth continuing to ak st.ccelerate.

the chief downturn is happening in china at the same time, they said the world supply has increased in august despite the outages we saw in libya, for susinstance i want to look at the oil prices brent is trading higher by 1.3%. wti is moving higher at this stage. indeed, so far, we are also tracking what's happening with the hurricane francine this is also having implications to the moves in the oil market. coming up on the show, we'll look ahead to the ecb's rate decision with the central bank expected to deliver its second rate cut of the cycle. we'll be live from frankfurt after this break much more. take your business to the next stage when you switch to shopify.

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to get the entertainment you love to you faster and easier than ever. that's what i do. is that love island? welcome to "street signs." we are counting down to the ecb rate decision this afternoon the central bank is all but certain to deliver its second rate cut with markets pricing in

a 99% chance of a 25-basis point move lower investors will closely watch commentary alongside the decision as well as data on the economic forecasts with the markets split on whether we will see a 50 or a 75-basis point rate cut by the end of the year. of course, annette joins us with more from frankfurt. good morning again i would like to understand where the surprises could come from today given that the 25-basis point cut is very much priced in at this stage. >> reporter: probably the ecb is not in for a lot of surprises, i have to say, but i think the markets were very carefully watch out for any commentary from the ecb whether inflation is coming back to the target and perhaps the discussion has started they are also with the side effects or detrimental

comments of keeping rates too high for too long. that debate has been charted by the chief economist of the ecb in jackson hole. this is a very interesting one schnabel is very dovish when it comes to cutting rates she also said that it is time to cut. so, what we could see during the press conference, perhaps more meat for the argument that the ecb could start to cut more forcefully given that inflation is coming back and wage data does seem to show that wage pressure is abating. we have, of course, that weakness in the manufacturing space in the economy and that could also trigger and show signs the moves over to the services sector which means the price pressure from the service sector could actually go down

which is another positive sign for the ecb. then we could see the ecb cut more forcefully. that, of course, would be market moving clearly, the economy of the euro area is in a difficult situation, especially the manufacturing space, and that could be held or that consideration could be alleviated by lower rates. we also will get a new round of staff projection for inflation and gdp growth from the ecb today which then will show us, most likely, over the medium term that inflation is coming back to target and perhaps even with the potential of slightly undershooting the target over the three-year time horizon. that is probably mainly it what we have on the table for today's policy meeting >> annette, if we see the latest

round of economic forecast later today putsignificant pressure on the ecb to cut rates significantly between now and the end of the year or is it more likely we will continue to see this gradual and cautious approach from the central bank >> reporter: yeah. i think they would rather err on the side of caution. that is a different condition enshrined into the market and they are not here to -- yeah, brave or daring when it comes to cutting rates. i think the most we will see during the course of the year is today the cut and then 50 or 25 basis points depending on what they think about inflation in december the next policy meeting in october will be in slovenia and outside the frankfurt meetings won't see much policy action of course, it all depends on the

data that is what we will hear from the ecb. they will do the decisions on the very data dependent every time they are going to meet. there's no pre-commitment for another rate hike. it's all in the data and, of course, the argument why they probably will wait until december to cut more is there will be more wage data and also more economic data out there for them to make a decision about what will be the appropriate rate cut >> well, thank you, annette. we will have a chance to speak later on today of course, for more on the ecb's latest decision, check out cnbc.com we have our live blog up and running and, of course, bringing you all details as we await that decision on there. we'll bring you special coverage of the ecb decision on decision

time j join me at 2:00 p.m. from the press conference from ursula von der leyen. the nikkei is up nearly 3.5%, but china's cpi is at a three-year low we'll have more after this break.

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welcome back to "street signs. i'm silvia amaro and here are your headlines european equities are picking up momentum from the u.s. with gains across the stoxx 600. europe chip makers adding to the global tech rally with the comments from nvidia's ceo jensen huang >> if we could fulfill everybody's needs, the emotion would go away. it's very emotional and it's very tense. the ecb is looking at a second cut with ubs ceo sergio

ermotti talking with cnbc. >> in general, for the ecb, the inflation topic is still open. i would say probably a cut, but not as the market expects. u.s. inflation falls, but core cpi is a surprise goldman sachs ceo david solomon tells cnbc he remains in the soft landing camp. >> it's a soft landing camp. i think that is the most likely scenario i can't tell you there can't be a disruption or something to set that off welcome back to the show let's take a look at european equities at this stage which have been trading for over an hour and a half. you can see that we have green in the stoxx 600 it is trading higher by almost

1% we lack strong conviction, either side, really, during wednesday's session. we are seeing a little bit more positive trade so far this morning. of course, we are awaiting the ecb rate decision later today. that could, perhaps, change things for equities. nonetheless, investors priced in a 25-basis point cut from the ecb. the key question at this stage is what sort of communication they will provide us with and what will the new economic forecast tell us about the outlook for the european economy at a time when we know that, for instance, a lot of pressure with the german economy in particular let's take a look at the different buourses to understand how we are trading all of the major bourses are trading in the green we will discuss the news from the united kingdom with the eyes on the ecb with the regulations

from the banks and they are easing them and delaying some of that unintroduction the ftse 100 is trading higher we are awaiting the ecb rate decision as well i want to take you to some of the action in asia today, too, because we have seen some interesting moves during that session. you have some of the trades on your screen at this stage. i would highlight the nikkei 225 ending the session by almost 3.5% the nikkei actually got a bit of a boost on the fact we are seeing a weaker yen, but perhaps more importantly, the comments from the ceo of nvidia jensen huang with the bullish outlook on demand which boosted momentum for some of the chip names and that had an influence for what we saw in the nikkei today let's look at the asian chip

makers in the comments of the commentary from the nvidia ceo some of the names in the asian trade with samsung closing higher by 2% tsmc up by 4%. tokyo electronics up almost 5% on the back of the comments. we are seeing an important rebound also in the tech space because let's not forget the pressure on that sector as we saw it at the end of last week let me take you to u.s. futures before they open on wall street. it will be a possiblitive starto the trading sessions over there. all eyes on the job numbers at 8:30 a.m. eastern time today investors are digesting with the latest cpi print which indeed seems to put an end on the debate among investors whether we will get 50 or 25 b-basis pot

cut. definitely the probability on the 25-basis point camp. we will find out next week as america goes, so goes the world according to barclays. it expects a softish landing for the west the lender highlighted the u.s. election as the key focus saying a second trump presidency could trigger a global trade war head of economics research at barclays joining me for more >> good morning. >> looking at the report, you are highlights quite a lot of concern here when it comes to the upcoming u.s. election highlight for us what could be the economic implications of this vote? >> i think first of all, the concept of the two candidates is quite different. on the one hand, we have very much something on tariffs, very

high tariffs if that is what was p proposed that is contrast to the increased taxes, but not change much of tariffs or immigration policies those are two divergent paths. now, harris would less likely be able to implement those because she would need congress. the one thing we don't have a view on how the presidential election goes on, but the congress will remain split because the senate will go to the republicans. you cannot implement tax hikes you need congressional approval. with tariffs, however, this is where trump, by himself, could i am implement what he said. that could be a change for the global outlook >> what does that mean for the snarkts markets? how the u.s. election will turn

out, what are you pricing out in terms of the monetary policy from the fed >> i think for the market, it means the market will be very careful. no one is going to make big bets ahead of the election. our focus at the moment, to be frank, also are based on the continuation we see the gradual cuts by the fed. we think three 25s there is a chance they go 50, but we think the market has exaggerated that probability we are in the softish landing camp we feel the u.s. consumer is holding up there is no doubt the labor market is cooling. it is not falling off the cliff to call for the radical cuts the market is pricing. >> it seems the markets have been getting this wrong this whole time they had several rate cuts priced in at the start of the year we heard from sergio ermotti from ubs saying the markets are

still ahead of pricing in rate cuts for this year how are markets getting it so wrong? >> i think it's a very difficult cycle to price this is not your monetary policy cycle of 50 or 60-year cycles and read from that it has been very much influenced by covid and the large fiscal stimulus and the inflation boost which we haven't seen since the '70s or '80s the markets had gotten conflicting statements since last year. remember the waller comments with the price cuts starting from march and inflation came in early in the year much higher and now the reverse has happened the last few months, something was reassurreassuring, maybe no print yesterday. now we are clearly in the camp

wh where globally that has now been clearly a tipping point. i think the market is not wrong. it tends to exaggerate in a way with one direction or another. it is now doing this with the cuts. >> so, legat me get your thoughs on what happened in the bond market the yield curve or yield inversion. are we at the point where this no longer matters and we can interpret this that we are in a recession because you described to me this cycle has been just so hard to read. >> the yield curve had been inverted for such a long time, you would thought recession would be on the way. i think this has largely to do with the central banks being big be in the markets. the benefits are large and mostly they are taking out the

u-curve shapes the u.s. yield curve has gone down too much. think also longer term, you know, if you look at the fiscal outlook for the u.s., risk premium has come down a lot. we think over time, it is difficult. over time, there could be pressure there is again. >> very interesting. let me shift focus and look at the uk outlook what we are looking at with the uk economy and we are expecting the budget on the 30th of october. what is theo outlook here? >> we see the gdp print and it is sluggish growth all eyes are on the budget and what happens fiscally, but also what happens with regard to the eu, markets got optimistic, i think, on the new administration we saw this also with the strengthening of the pound and some movement with regards to europe we know the red lines.

we feel there is hope that some could get close and that would help trade and services, et cetera, and that could give a boost to the uk growth we are remaining cautious for now, but it will take time in the medium term, there is a fear of higher gilts to finance the financing needs. >> rhow are you looking at the u budget as the next fiscal event here are you concerned this is going to lead to more borrowing? >> whe think that is already in the cards that we will have more borrowing than we initially thought. it is well announced this is clearly not going to go there, but this is clearly not the mini budget crisis type of situation. you know, we think it is more boring, but it is likely to be a smooth adjustment. >> let's talk about china as well you are also looking at the chinese economy suggesting in the report it continues to

disappoint other banks highlighting concerns about the chinese economy. explain to us whythis is such big concern. >> frankly, china had a boost in the beginning of the year and there was hope as we came out of covid, there would be a rebound. as turned out to be the case, the real estate troubles really continue the policy as we have seen, maybe they avoided the worst i think they are managing the financial fallout okay what it does mean is huge negative wealth effect the consumer is concerned. real estate investment is very important and consumption is very weak. that is something that china needs to grow. with he seewe see now the concef the debt deflation, not spiral, but weak inflation and weak consumer demand. this is like japan in the '90s

it is what you would call a balance sheet crisis that could be prolonged and it just means china continues to grow very weak and that is a concern we had for a while, but a tendency now to recognize it >> pressures for the global economy. >> as a lack of demand from china. correct. >> that was christian keller, head of economics research at barclays. coming up on the show, the fallout continues from the u.s. presidential debate. we'll bring you thlast fe terom the campaign trail after this break. ill become of them when they discover robinhood gold allows others to earn their very liberal rates on idle cash? ♪ they would descend into chaos.

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welcome back to "street signs. let's look at u.s. polipolitics u.s. house speaker mike johnson temporerature temporarily pulls funding bill vote. it would require people to show prove of citizenship to register

to vote. democrats called for a funding bill to keep the government open until december while republican presidential candidate donald trump said republicans should shut the government down if they don't getassurances on election security donald trump has called for abc to have its broadcast license revoked for hosting what he described a rigged debate against vice president kamala harris speaking to fox news, trump said he did great and said he would be less inclined to accept a second debate because he quote had a great night. trade experts said tariffs like those proposed by trump would create higher inflationlike those he proposed in 2018. check out the story on cnbc.com. we'll hear from jd vance on cnbc later today. do not miss that interview at

1:45 p.m. cet. looking at u.s. inflation, it dropped to its lowest level since 2021 the 12-month rate is from july is 2.5%. below estimates and lowest level in more than three years the greatest gains seen in shelter and food with gasoline and used vehicles saw decline of 10% on year. the u.s. treasury yields rose following the data with the spreads narrowing and traders slashed bets on the 50-basis point cut next week. traders see an 87% chance of a 25-basis point move. speaking to cnbc, david solomon o outlined his expectations for this year. >> i certainly see two or three cuts as we move through the fall i think to go further than that

depends on if we are continuing to make progress or is inflation stuck at 2.5%. that means the fed will watch the data we'll see. >> george brown at reuters joins me to discuss the u.s. economic outlook. good morning, thanks for being here i like to pick up on the comments from david solomon that he still sees two-to-three fed rate cuts this year. do you agree with that assessment >> that is our view. our house view is two cuts september and december both at 25-basis point cuts. next week, we have the fed meeting and with that, the economic projections with the all-important dot plot it will be hard to push back against that. >> what did you make of the cpi print yesterday? did it settle the 25 or 50 basis point cut? >> i think it is for september

there is still the question mark what pace the fed will pursue the rate cutting cycle the meeting next week will try to settle that and the guidance from powell will give that i think if we dial into the detail of the cpi release, i still think it is a benign reading. rent is an opportunity cost that residential homeowners are not renting out the house. that is not a price paid by anybody. that is a third of core cpi. if you are the fed, you should till still look at it as a benign inflation print. you should look at inflation being a done deal and we are in the deflationary path. the risk to inflation hasn't dissipated completely. >> i would like to get your thoughts on whether this debate is going to be reignited the 50 and 25. we are going to get new jobs data on october 4th, if i'm not

mistaken early october. could that actually reignite the discussion on whether we are going to see the fed cutting by 50 basis points in the meeting after? >> it could do depending on what the shape of the payroll report looks like we should still get a payroll print consistent with acting in 25-basis point increments. we feel 50 basis points sends the wrong signal to markets. it may think something more center is going on in the economy. from the labor market, what is interesting is the october labor market you were talking about the beginning of the segment, we have the risk of the government shutdown and that risks to the 12th of the month and we have impact on payrolls also, we have the risk of the port workers strike as well. that will create a lot of uncertainty and muddy the waters

when so much emphasis is put on that by the market >> it seems vehiclwe are shiftin the big focus for the fed. we see inflation easing and inflation is put to the side a tad. what would you highlight as the key thing to monitor and understand what the fed is going to do between now and the end of the year >> that's a really good question it is something we have been debating at schroeders we are emphasizing on the payroll. the household size is the dichotomy of what we are seeing in the holistic conditions in the labor mosarket and what is going on under the hood. if we see really weak numbers, that is what will guide the fed in its decisions in terms of whether or not it needs to cut rates more aggressively or stick to a careful and methodical path. >> between the impact of seeing pressures on the fiscal side and

potentially seeing higher tariffs applied by the united states as well, what could be more of an issue for the fed going into 2025 in terms of understanding what they should do with monetary policy? is the pressure coming from higher spending or the fact we might be importing inflation with higher tariffs? >> so, i think the bigger risk of the two of those is going to be the tariff plans or the other plans if trump were to be elected. particularly what we are concerned at schroeders, the plan of immigration. the labor force and the job market more broadly has been driven by foreign-born workers if you suddenly cut that supply off, that will creates issues in the labor market adding to that factor, the tariffs, is uncertainty and

inflationary on the labor market which is the bigger issue. >> interesting when you think about the u.s. election as well, there's a case here of potentially having a democratic president, but when you think about the senate, still very much republican so, what could that mean for actually seeing policies implemented? economic policies implemented? one, we don't have much plans on the economic plans for the candidates and if they were to get elected, could they actually get this stuff approved in congress >> it's a great question our assumption is if harris wins, she will struggle because the senate is looking very, very difficult for the democrats to retain control of. in that basis, policy is going to be very much on a bipartisan basis. there will be tax cuts because both sides want that in terms of whether trump's elected instead, he is showing

great use of kexecutive actions and orders and implement policies from that basis, we think trump could be more pro-active and if he has a narrow majority in congress at the moment, it is difficult for the democrats to get majority in the congressional elections, likewise, the republicans will not get the big majority that trump enjoyed during the first part of the presidency. >> fascinating to discuss. thank you for your time. george brown, senior economist at schroeders. as we come to the end of the show, here are the five things to get you up to seepeed ahead wall street. futures in the losses as the tech rallied closing 2% higher with nvidia finishing 8% higher. attention turns to ppi and initial jobless claims after the cpi print came in lower than expected producer prices are ticking

slightly higher than last month with the weekly jobless claims expected to dip to 125,000 oil prices are moving higher after the iea cut the oil demand forecast pointing to sa slowdown in china both candidates are on the campaign trail trump in california and harris in arizona our u.s. colleagues will speak to vice president nominee jd vance do not miss that interview that is it for today's show. i'm silvia amaro "worldwide exchange" is coming up next.

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it is 5:00 a.m. here at cnbc global headquarters. welcome to "worldwide exchange." here is your "five@5." semis surge. it helps for the market turn around as the nvidia ceo talks about extraordinary demand for the a.i. chips futures are higher in the early going. threading the needle