he was, or thinks he is. that's all for now. i'm lester holt. thanks for joining us. ♪ very good morning, everyone. welcome to "street signs." i'm silvia amaro and these are your headlines. the fed decision to kickoff the rate cutting cycle with the 50-basis point move with policymakers eyeing another 50 points of easing this year. >> this recalculation of our

policy stance will help maintain the labor market and continue to enable further progress on inflation as we begin the process of moving toward a more neutral stance. not out of the woods yet. ray dalio warns of u.s. soaring debt levels saying the fed reserve faces tough challenges ahead. >> keep them good for the creditor and not so high that they're problematic for the debtor. the unicredit ceo saying he wants to open the die long with the german lender board. and iberdrola opens a wind farm in france telling cnbc the investment is critical. >> we agree you cannot already

have access. that is why countries are pushing us to invest more and more in transmission and distribution. very good morning, everyone. well, they did it. the fed announced a 50-basis point cut yesterday and, indeed, they confirmed the exppectation were indicating. there was a higher probability of a 50-basis point cut and, indeed, that's what happened when we heard from the federal reserve on wednesday. i want to highlight this quote from you. naturally the fed had to justify moving ahead with the 50-basis point cut. jay powell said the u.s. economy is in a good place and the decision yesterday was designed to keep it there. so, the fed stressing out

there's no reason to be concerned about the u.s. economy because naturally, a 50-basis point cut could be interpreted as a sign of the economic concern for the united states. that is not the message from the fed. when you look at european markets today, we are seeing green across the board. the stoxx 600 trading higher at this stage. yesterday, ended the session down .50%. the investors are digesting the commentary from the fed. worth keeping in mind, it is time to hear from the bank of england with the interest rate decision and the cpi for the month of august came in at 2.2%. at this stage, some positive momentum on the ftse, but we'll keep a close eye in uk equities today. let's look at the different sectors to understand what is the corporate story this morning. at the top, we have basic

resources. the best performing sector at this stage up 3%. significant moves when it comes to basic resources. i also want to dive in detail when it comes to autos. at this stage, up almost 2%. new car sales for the european union disappointed this morning. we got the lowest reading in three years for the month of august. some concerns here when it comes to the joutlook for the auto sector. we will be discussing that later on in the show. let's describe the worst performing sectors. pressure with theutilities down .70%. utilities was the sector on wall street that had the strongest losses yesterday. it led the down side moves down almost .8%. we are seeing pressure when it comes to telecoms at the moment. let's look at u.s. futures as we

approach the open on wall street. they indicate it will be a higher start to the trading session on wall street. when you look at the performance on wednesday, we have a bit of a mixed session, really, because the dow, the s&p all ended the session lower, slightly lower. so, there's a question mark here of how investors are reading the latest announcement from the federal reserve. are we in a position where we should be concerned about the outlook for the u.s. economy? some analysts are looking at the decision and expressing some concerns that the message on when it comes to further rate cuts for the rest of the year is actually lower than what some analysts were pricing in. some disappointment with the outlook for further rate cuts, but naturally, it does feel it is still a lot of volatile narrative in terms of what the fed told us yesterday.

let's understand the message a little bit better yesterday. it cut its interest rate by 50 basis points. we know that. it is from 4.75 to 5.0. it had greater confidence that inflation is moving sustain bring to target and said inflation and labor market risks are now roughly in balance. the move is the fed's first rate cut since march 2020 and over a year holding rates at the highest level since on 2001. after the decision, jay powell said policymakers don't think they're behind the curve. >> you've see it's a process of re-calibrating our policy stance away from where we had it a year ago when inflation was high and unemployment low to a place that's more appropriate given where we are now and where we expect to be. that process will take place over time. >> more detail from the fed,

michelle bowman was the sole dissenter on the decision backing a .25% cut. this is the first time one has dissented on the decision since 2005. there were signs of the dot plot projections. nine said they expected .75 points in cuts this year and while ten said they saw a full percentage point or more. the median forecast of 50-basis points of cuts in the final two meetings this year and another 100 points in 2025. economic projections released alongside the decision showed a more optimistic decision for inflation with 2.1% next year, down from the 2.3% forecast in june. policymakers weakened the labor outlook with the unemployment expected to hit 4.4% this year

from the last set of forecast. in the press conference, chair jay powell was optimistic on the outlook. >> u.s. economy is in a good place and our decision today is designed to keep it there. more specifically, the economy is growing at a solid pace and inflation is coming down closer to our 2% objective over time and the labor market is still in solid shape. >> bridgewater associates founder ray dalio spoke to cnbc after the decision and saying raising levels will have an impact on the fed. >> there's an enormous amount of debt that needs to be rolled over and new debt created by the government. the challenge of the federal reserve or any central bank is to keep interest rates high enough that they're good for the creditor while keeping them not so high that they're problematic for the debtor.

when you have large amounts of debt assets and debt liabilities, one man's assets is one man's liabilities, that balancing act is difficult. >> it was an important announcement. let's digest what we heard from the fed from the head of peak day wealth management. first, i would like to understand how you read the 50-basis point cut because there was an argument here about whether this could actually signal that we should be concerned about the u.s. economy. the fed making it very clear that the u.s. economy is in a sustainable footing. how did you read it though? >> i very much read it as a preemptive action. this policy re-calibration which we just heard from jay powell is in a very benign way also to do his mea culpa not to have cut

rates before. he said if he had the july pl employment report at the time of the july fmoc meeting, he would have cut the rates before. this is just to make up for the past rate cut that wasn't in july and immediately cut by 50 then, of course, you also face a communication challenge in terms of what's going to happen next. on the one hand, the economy is in a solid place and the labor market is strong . it is now time to supplement and if you start big, you do signal a concern that things might deteriorate faster down the road which was reflected in the prime rate. a little bit contradiction, but also a more benign way of the start of the rate cutting cycle which is anything but the one we had in the past. >> let me catch up here with the fed actually confirming the concerns that the markets raised

after the employment data. we saw a lot of pressure on the equity markets suggesting the fed should have moved july. what does it mean in terms of the credit buability of the fed? are they admitting yesterday that they're too late with catching up with this inflation story? >> yes, i think there is a little bit of that. it is not that big of a problem because you can make up for that and start with 50 and perhaps have another 50 down the road. it's an option and clear risk, but you do signal the fact that you are slightly behind the curve. when you have to justify yourself being behind the scurv, it is a problem. as long as the labor market stabilizes and the bar is the key for the next few meetings, is lower for the fmoc members to

switch from 25 to 50. if you really want to secure the soft landing, if you really are that sensitive. >> frederick, it seems we may have lost the connection. hopefully we can revisit that later because i do want to discuss what this means for dollar and what this means also when it comes to the bank of england. we will have that rate decision as well later today. hopefully we can restore this conversation with frederick, head of macroeconomics research. coming up on the show on the heels of the bumper rate cut, the attention turns to the bank of england, but peatns aexctiore more tempered. we will look at what we can expect after this break.

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welcome back to "street signs." now the fed is the big story, but we have our own central bank on this side of the pond, too.

arabile has more on this story. arabile, what should we expect? >> if anything, this is going to be a decision where caution is the aim of the conversation, right? this is exactly what the bank of england has said on numerous occa occasions, including back at jackson hole, which, of course, the governor was insicisvited t. the information adds to a neutral stance at present. 2.2% inflation on a month on month basis. both of those were expected. follow on from a two-month period now in which the inflation rate has been outside of that range of 2% set by the boe. interes interestingly, if that continues to be the case, of course, it does allude that the bank of england with inflation does go up to the end of the year to

2.75%. key factors to influence that and made things remain higher are wage growth which is 5%. 5.1% is the latest figure and 5.6% for the services inflation number. that actually rose from 5.2% and higher than the market was looking for. what does that mean for rate probability? there was a 20% chance of a 25-basis point from the boe. that rose to 35% on tuesday. now currently sits just below the 20% mark set at 18.8%. so, will it happen or will it not? uk ceo tina lee gave her expectation. >> we saw a promising number at 2.2% yesterday. we think given there is sticky

services inflation, the bank of england will wait a couple of months. we anticipate the first rate cut is going to come in november. >> but, even if the bank does or does not hold, it could be a pivotal meeting as it makes the decision on the pace of bond sales or kwquantitative tighteng as it's known. around 87 billion pounds of gilts are due for redemption this year and leaves 13 billion for active sales compared to 50 billion in 2023. analyst at citi as we spoken to as well as deutsche bank and jpmorgan believes they could expand to 120 billion pounds to keep more room to maneuver. there are political

implications, however, especially on the fiscal policy. chancellor rachel reeves is preparing for the first budget on october 30th and if the bank of england sells gilts as a loss, the taxpayers have to make up the difference. the forecast is the lifetime net loss of the program sits at around north of 100 billion pounds. our speculation is growing that reeves could change the way the country measures debt so these losses don't show on the balance sheet until the treasury pays the central bank handing her 16 billion pounds extra headroom. what does it mean for the gilt story? let's follow on from a the decision from the fed seeing yields go down. on the other side, however, we are seeing the two-year gilt managed to go down. the ten-year gilt sitting at

3.85. pretty stagnant at this point. take a look at sterling. 132.50 is where you see that mark now. interestingly, still the best performing g10 currency. the best in a year for the sterling. could you see more moves following the decision a little later on? one you will be covering, silvia. >> it could be quite morning, but if we don't get the rate change, we could have information on qt. could be a big day. do not miss our coverage of the rate decision starting at 11:55 british summertime. we still have frederick with us. let's revisit our conversation. before we go to the fed, i would like to understand yesterday's decision and what it means for the bank of england today. does it put more pressure on

andrew bailey to also announce rate cuts? >> i'm not sure the fed's decision alone will have an influence on the bank of england. i think if you apply the action to the fed to the boe, there would be a stronger case to cut today. not because the inflation is high today or the unemployment is still relatively low in the uk that you shouldn't look forward, but add the same pree preemptiveness, it would be stronger. even if they don't cut today, there should be more dovish bits in the comments and more concerns about the labor markets and leading indicators are in terms of inflation as you said as well. the base effects have pushed inflation higher and it is something they have to take into account. it is actually lower and what the bank of england had in their forecast and looking forward, i think there is a case for ongoing moderations for services

inflation. if not today, then prepare for tomorrow, that would be my case for today. >> what about qt? what are your thoughts there in terms of what the bank of england might announce and indeed how does this have an implication here for the chancellor when she announces the budget in october? >> i think the bank of england is stuck between a rock and a hard base because of the choices they made in the past. the only kbank recording the losses. it is having an impact on the fiscal policy because they are asking the taxpayers to make up the losses. now you are paying the price. i don't think there is any easy option for them today. either they extend the passive and active qt and you have problem for fiscal policy in case it doesn't make the job easier or you don't look like

you are in debt from the government and you have more losses and you have to manage that over time. it is not an easy time keeping the base roughly unchanged depending on the actions. it will have an impact on fiscal policy down the road. >> let's go back to the u.s. economy. i would like to share this comment with you. you had ray dalio in singapore who said the u.s. economy still faces enormous amount of debt. he said that in the context of the latest rate decision from the fed. how much of a problem is this debt level for the federal reserve at the time when we might see a new president stepping up their spending plans? >> exactly. i think the policy outlook is more important to the fed because if you have trade tariffs and inflationary impact could make the fed more cautious going into next year. if you had, perhaps, something more, you know, strict on the

fiscal side, but less of an inflation problem. that gives the idea with the democrats winning the white house, lower rates and the fed could continue to ease policy a bit faster. longer term, of course, the dead situation is a problem. of course, the fed even implicitly will have to keep rates at the sustainable level for the economy and government at large. i don't think this has an immediate impact on their thinking. they are really looking at employment and inflation dynamic into the year and the election will have a much bigger impact than any of the long-term secular trends. >> iwould also linke to get your thoughts on the dollar. i would like to understand the softness in the u.s. dollar is here to stay between now and the end of the year now we have more clarity from the fed. >> yes, i think so. the short answer is yes.

we had been, you know, expecting some sort of short-term rebound if the fed had cut by only 25 a and/or hawkish guidance. if they don't signal another 50 down the road, the mere growth care and very slight deterioration in the labor market with the conditions that we do expect, even if a slowdown and not recession, that may be enough to keep the fed on the fence. we just realized the market pricing had an inference on the fed. it's a circular argument because they did not push back on the 50 and the market pushed for 50 and they delivered. if that mechanism stays, they may be forced to do more and the dollar kept under pressure in the short-term. >> i would like to hear from the other central bank this morning the norges bank which kept the rates unchanged. perhaps they would be in a position where they have to keep

rates this high for much longer than what we initially thought. what is the outlook here when you think about the krona as well? >> looking at sweden and richts bank with the situation there. the economy is more resilient overall and more dependent on other factors with oil prices, so that could change. when i am looking at the global easing cycle and global business cycle, if that's still a thing, i'm looking at kcanada and swedn and those that are under pressure to follow the fed. again, the effect is not direct. if the fed is, indeed, reacting to a slightly weaker outlook at home and abroad, i think those currencies would be more prone to short-term weakness than the

norges. >> thank you. interesting. we will continue to monitor. thank you for joining us. head of macro economic research at wealth management. let's take a quick look at u.s. futures. very significant story stateside after the announcement from the fed. a possiblitive start to the ses on wall street. yesterday, we had a mixed reactions really, because we saw the dow and s&p hitting fresh intraday highs. the session lower with the dow down .20%. the s&p down .30%. when you think about the nasdaq, it ended the session lower. at this stages, voinvestors are trying to put together what they her f heard from the fed. let's see what we'll get stateside later today.

worth keeping an eye on jobless claims. we get new figures later as well. when it comes to what we're seeing in pre-market for some of the big tech names, we have nvidia up about 2 p.5%. microsoft, apple and meta str trading higher in pre-market moves. there is a story where we could see further upside for these names in the context of rate cuts. we know how significant that could be for some of these companies for their debt levels as well. however, i warrnt to poicnt out you about the tech stories in europe. meta and spotify, over the last 24 hours, they criticized how the european union with the decisions of data privacy and artificial intelligence. this is important as we are just starting a new political environment in brussels. let's see what their approach is in terms of these relationships

with big tech. for now, let's get out to charlotte who has the wind in her hair in the french region of whitney. charlotte. >> thank you, silvia. we are here for the inauguration of the wind farm in brittany. we will have the interview with the executive chairman ignacio galan after the break.

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welcome back to "street signs." i'm silvia amaro and here are your headlines. european stocks get a boost on the back of the fed decision rate cutting cycle with the 50-point move with another 50 for this year. >> this will help maintain the strength of the economy and the labor market and full improve progress on inflation.

u.s. futures point to a positive open after the whipsaw session on wall street which saw the dow and s&p 500 fall back from all-time highs. unicredit ceo rules out a hostile takeover bid from commerzbank telling he wants to open a dialogue with the german lend board. and iberdrola opens a wind farm in france telling cnbc the investment is critical. >> we agree. you cannot already have access. that's why countries like britain and the united states are pushing us to invest more and more in transmission and distribution. let's take a check on the european equity session.

equities have been trading for just over an hour and a half thus far. you can see it on the screen with green on the board. the stoxx 600 up almost 1%. it is a totally different picture from yesterday when the stoxx 600 ended the session down almost .50%. we are seeing european investors reacting positively, really, to the latest decision from the federal reserve cutting paces points by 50 points. it is worth expecting the decisions. we have the bank of england today and the norges bank. that could have ramifications for the equities. let's get a check on the different european bourses. we are seeing green. the ftse 100 up almost .90%. the bank of england is not expected to change rates today,

but all eyes on the communication and what they will tell us about qt and whether there's any changes to that plan. we are seeing quite a lot of upside when it comes to those bourses in the yoeuro own. in france, the cac 40 up almost 1.5%. let's get a check of the different sectors to understand the corporate stories that we're following this morning. we have at the top, basic reso resources, the best performing sector thus far up 2.9%. partially, these moves are related to the higher metal prices we have seen and at this stage, basic resources are actually on track to report their best day so far this year. let's see what will be the final number when the trading session is over here in europe. we are seeing upside when it comes to autos up by more than 2%.

this despite data this morning suggesting when it comes to new car sales in the eu, those have actually fallen to their lowest level in three years in the month of august. let's get a check when it comes to the worst performing sectors thus far in the thursday session. we are seeing quite a lot of pressure with telecoms do down .80%. and utilities with the lack of momentum on wall street. utilities was the worst performing sector on wall street yesterday. i want to take you to banking. this is, perhaps, the most exciting story in a while. unicredit ceo has told the german media he is in quote no rush to increase the lender's 9% stake in the german commerzbank bank. he has had constructive conversations with the commerzbank board and german government. both of which claim they were blindsided by the unicredit

decision to buy the stake. i want to get a check of how shares are trading so far. you have commerzbank shares down 1.5%. we've actually seen quite a lot of upside when it comes to shares of commerzbank in the last week since the announcement from unicredit. indeed, a little bit of pressure this morning partially that could be related to some of these moves that the commentary we got from orcel. claudia has been looking at this story. shares are marginally lower. claudia joins us from milan. cla claudio, how important is this comment from orcel that perhaps they are not in the rush to get a bigger stake here. >> reporter: yes, silvia, it really does depend how you look at the story and how you

interpret what orcel said today. a little under ten days ago, they did come in and buy that 9% stake from the government. 4.5% on the market. now, at that point, the way the press report came out, it seemed as though they were ready to move and move quickly. that was the interpretation. possibly the words that are in the press report today are more about taking their time and wanting to move forward in a friendly manner. what they have excluded, orcel said they will not move forward in a hostile offer. kne now that has been said, i will be moving forward asking for authorization. to get the authorization, they need three months. it is 60 working days which is almost a little under three

months and the ecb can take more time to request more information. this gives them time to be able to approach in a more friendly manner the whole situation. this does not mean they do not want to gain a larger stake. clearly, this was made clear they do want to move forward on that. they want to do it in a way that will work out in the end. this was the first big move as you were saying in european banking sector consolidation. orcel wants to be a winner in this process, so he doesn't want to make the wrong move. he is in a position to wait and see and move forward, as you were saying, in a way that is friendly. as far as the comments that came out, we also got some comments out from a taitalian bankers. we caught up with him and this is what he had to say about what

is happening on the unicredit comments. >> translator: i think it's a very good deal. excellent diversification strategy. it's clear it's a first step to acquire that stake. it's not a complete operation yet, but a consistent strategy with the business model. we have a different business model because we focus on asset management and insurance. geographic diversification is not a priority for us. >> reporter: so, even messina commenting this is apositive move for unicredit. it still has many hurdles it needs to face, of course, with the unions with the loudest voice. as the consolidation moves forward in terms of the european move that unicredit has made, it tells us that they will unlikely to make any move in part of the consolidation that is going on

in italy which is another consolidation in the banking sector which has been in talks as of yet. that is one player, potentially, that is out of the game for now. silvia. >> interesting, claudia, to hear from other banking ceos amid the moves. thank you for your update. let's look at other corporate stories this morning. iberdrola opened the wind farm in france. the energy company says the plant will provide emission free energy to 835,000 people in the region. and charlotte has been monitoring this story. she actually went all the way to brittany. charlotte, explain to us, really, how important this announcement from iberdrola really is. >> reporter: look, when it comes to energy sources, some countries have petrol and some have sun and some have wind.

when you look at the geography of france, you think it would be an obvious choice for wind farm. we know france has relied on nuclear to produce its electricity. it has a lot of onshore wind farms, but only started to develop offshore wind farms. this has been 13 years in the making and three years of building work. just up the coast here that will produce about 10% of all electricity needs of the region of brittany. a very important one. we know many more are being developed in france. they will develop more wind farms in the uk which is the second biggest market with scottish power in particular. very interesting to talk about all this, of course, wind being very important with the energy mix of europe. just last year, wind was more important than gases in terms of

source to produce electricity. that was a big milestone. they want to increase that to reach the net carbon zero target in europe. iberdrola is focused on this and they work on the grid. that is a question here with more and more electricity and electric cars that need to be plugged in. the a.i. needs electricity and the grids are overstressed in the u.s. and uk. they are a big player there. we had a chance to catch up with executive chairman of iberdrola. ignacio galan. i asked about electricity in particular. >> a pioneer and largest investor in renewable. a lot of the business is grid. so, we are, in this moment, the first largest in grid in the country and our many investment in britain is in grid.

we have massachusetts, connecticut, maine and new york state which has 50 million americans depending on our grid. we are the largest in brazil. we are the largest in the peninsula. i agree with you it is crucial for the carbon, but electrification for the economy. without the grid, you cannot already have access to electricity. countries like britain and the united states are really pushing us to invest more and more in transmission and more and more distribution for electric vehicles and data centers and for connecting in england and south of england with wales. we are in the process.

we have a huge investment plan in britain in the next couple years. probably 20 to 30 billion pounds through 2030. mostly dedicated to grid investment. >> in the last update, you announced investment particularly in the u.s. which came off the back of the i.r.a. of course, it's a very important election coming in a few weeks. is the return of donald trump in the white house impacting your potential investment? >> our main investment or business in the united states is grid as well. 80% of our business is grid related and networks. i feel network regulation depends on the state and the federal authorities. i think we have raised our cases. i think that will continue. in terms of renewables, which is partly depends on the state

authorities and partial federal authorities. we have visited with president trump and president biden and president obama. we continue. i think we will, let's say, manage the decision the government will take in any circumstance. >> reporter: that was ignacio galan, the executive chairman of iberdrola. they want to give the blueprint with the creation of jobs krer a created here. almost 2,000 jobs here. all of this to prove how much of a future this industry can be with the kick start of the industry particularly in france and europe. silvia. >> fascinating, charlotte. safe trip back home. coming up on the show, china is working on arv rival to nvid.

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welcome back to the show chinese firms are creating a rival to nvidia chips. they are facing challenges with the u.s. sanctions ham apering production check out the full story on cnbc.com our very own arjun kharpal has been looking at all of these details. now the eu competition signalled that ribera said it is important to take measures to develop the european car industry and create a level playing field which she shade wo said would avoid a trade war with china avoiding that clash war is important and measures are already being considered the head of tax policy at university is joining us with more good morning good to have out the show. i would like to understand, really, what this message from

the eu's new commission competition chief likely to be, of course, after approval from the european parliament, what that message means she seems to be looking to have a deal with china. how likely is it to avoid the ev tariffs? >> well, both the european union and china understand they don't want to get into a trade war there is much to lose from the trade war. both benefit and benefitted many years from the mutual exchange of goods and services. now, however, china has to move up china is no longer as poor as it was 10 or 15 years ago china has to move up the value chain. they have to move up in the value industry with cars yes, the chinese government is helping the companies much of the same way the european car companies have benefitted by

their own governments. what you want as an economist, what you want as a policymaker, is a level playing field you want the companies win if they have better products and better cost management and not the handouts i think both come to agree they don't want a trade war that's what this message is all about. >> how likely is that level playing field? european officials have been complaining about this for years? they have not just this sector, but other sectors, too why will this change >> i don't think it will exchchange on the one hand, they have done it historically. everyone does it there's no level playing field however, every time you see that both governments help their own companies and you see how inefficient that is, you come together and say, wait, we should stop that we should stop doing that.

that's why in the past, you had agreements in the world trade organization and in the eu to restrict aid you will see calls for restrictions in the future at the same time, we will see incentives provided for companies, for domestic companies, to produce more that battle will continue. >> is further consolidation in the auto sector the only way to see benefits for some of the european brands? >> i think there must be some consolidation. you now have new players china moved into it. that is unfortunate. europe was big and continues to be a big player in the car industry now a foreign player moved into the industry that is competition and you don't like it. that means the players in europe have to figure out how to opiwin in the new environment. they need to figure out the business solutions to the new environment and competition from china and part of it is working

together. >> okay. so assuming we see more con consol consolidation, whow does that pa out? who is seeing more consolidation here >> first of all, the issues on the car companies at the low-end cost that is where they will have access to the european market. that's where the big impact will happen first the luxury brands that mostly rely on the brands and unique design, they will collaborate, too, i think to the extent it can reduce costs without undermining the value of their brand the first um pakt impact we wiln months the chinese companies like volkswagen. >> i would like your thoughts on the new rules implemented in europe let me just share your comment with you we heard in the last 24 hours new carmakers risk billions of

fines because of the new emissions rules implemented as of next year how likely is that the eu is actually going to avoid these new rules because the sector is under so much pressure >> absolutely. the european car companies are suffering from many developments and one is the fact there is a new technology and we still have to figure out how to serve and how to cater that market the second one is the increased competition from china of course, there are homemade problems the regulations in europe has been hostile to consar companies the european governments, including the german government, increasingly realizing that this new regulation actually hurts their own comar companies >> it is interesting picture thank you for some of your

thoughts dr. stefan legge at university of st. gallen. as we approach the nd end of the show, here are the four things today after the fed fired the starting gun on its cutting cycle with a 50-basis point reduction, investors will assess the latest jobs claims with the expectations of a slight dip eyeing the bank of england decision with the markets expecting the ecb to hold. boeing was continuing as the embattled plane maker furloughs tens of thousands of employees that it is for the show. i'm silvia amaro "worldwide exchange" is coming up next. stay with the channel.

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it is 5:00 a.m. here at cnbc global headquarters. welcome to "worldwide exchange." here is your "five@5" fed edition. global markets rally after the fed's first interest rate cut since 2020 a 50-basis point move. also sending a signal another 50-basis points of cuts before the end of the year. >> you have a cooler labor market with the activity what that tells yo