here together. you know, it's not my time yet, but i just can't wait to see them again. [music playing] ♪ welcome to "street signs." i'm karen tso. here's are your headlines. madesmond marrow slashes

guidance in two months and sending auto stocks tumbling in early trade. china central bank keeps rates on hold and the boj also stays unchanged. big pre-market moves on wall street. nike ticking higher following the departure of ceo john donahoe. there's no doubt it's a big week on markets that jumbo 5 50-point reduction. as a result, we're picking up again on records from the u.s. markets. interesting to see that here in europe, we did keep pace with some of the gains. on the dax, at record levels in trade yesterday.

this morning, we are seeing a bit of a slippage of trade in europe. we are giving back .30% so far into the trading session. some of the big movers. there's been negative news flow from the auto basket and that's the likes of mercedes-benz and volkswagen. you can look at the german stock market that is trading down by .80%. i did mention how strong the gains had been to the upside. that is the market leading the losses here in europe this morning. more contained to the down side of the ftse 00. politics in play when it comes to france with the cabinet lineup on the back of election that was many months ago. the ftse mib as well is now sliding as well. to what we're seeing at the sector level, the impact on some of these baskets this morning. utilities investors playing it safe to the upside along with insurance and telecoms with a

bit of a dip this week. healthcare. a big healthcare conference in london this week. we had a lot of news flow from the sector. you see it is close to the flat line today. this is as good as it gets. in terms of the sector losers, here is how it looks today. household goods as well. we heard a lot of news around target price cuts from burberry today. that's impacted the household goods basket. disappointment that the chinese did not do anything around rates. no more stimulus coming at this stage. that impacted the basket. technology, that is a dip, too, despite what we saw stateside. technology scotocks were scoope up in session with disappointment in asml sales. basic resources also giving back some territory.

i mentioned mercedes-benz has cut despite a hit to sales in china. the german automaker now sees the adjusted return on sales between 7.5% to 8.5%. let's get out to annette with more. annette, we are seeing the stock slide today. put in context how difficult the challenges are for mercedes-benz. >> reporter: i think the market reaction is harsh given other profit warnings taking place like bmw and porsche in china. mercedes-benz is insulated when it comes to the chinese weakness. here we are quoting that china is a problem and the consumer in china continues to have a very

weak spending power also going in the second half of this year especially worrisome, i guess, for investors as they are saying free cash flow will be substantially below the level of last year. free cash flow determines how much the dividend the company paying and that makes the stock lessor m attractive. we are seeing early concerns that mercedes-benz will not be able to pay a high dividend if the free cash flow is so weak. having said that, the outlook is really negative and it's the second profit warning in two months for mercedes-benz. that is also kind of new for the management because ever since he took his job back in 2019, they steered the company with a steady hand and not too optimistic and could actually maintain or reach their own

profit guidance ever since the time or overachieve it. this time it seems to be different. the macroeconomics environment seems to weigh as well a lot on their luxury goods. on top of that comes something which we don't know what it is right now. it's valuation effect could be on easing or it could be on the stock of cars or it could be on literally everything. valuation effects according to analysts do actually chop off 1% of the profit margin as well and the return on sales margin is expected in the range of 7.5 to 8.5 for the year. that means for themainder of the year, the company will return on sales on adjusted basis of 6%. that, of course, is substantially weaker than analysts had expected. in a

disappointment. people would not believe it would be as harsh as it is now and mercedes-benz needs to explain the valuation effect. >> it's fascinating, annette, begin the dip was the 60% discount to the market and now more bad news from the china regulator saying that mercedes-benz to recall a total of just over 500,000 vehicles in china. some imported and some domestically manufactured. we don't know which vehicles at this stage. there's been a lot of dissent from those who bought evs with constant recalls. weigh in on the matter of recall and how this is usually perceived by investors. >> reporter: well, normally it's not a super big deal, but given that this is now in china and that the market is weak, one could also think this could be

politically motivated. we don't know how much is really like technical defaults or whether there's political component weighing in. clearly, the trade war between the european side with chinese is heating up even though they are willing to talk. i guess there will be some political horse trading in that respect as well. of course, the chinese will show their power when it comes to market access for european companies, especially the luxury carmakers which are dependent on that market. if the future is not -- the future is getting more uncertain, that will weigh on the shares tremendously. >> annette, thank you very much for bringing us the update there. other stocks this morning. burberry is trading lower in the ftse 100 before relegation after jeffries reduced its target price on the stock. here is the reduction.

8100 p to 490 p. you see suggesting more down side with the declines today more of 4%. it is down 60% for the year. ger jeffries cut its target price for lvmh and richemont sending shares lower in early trade. the benchmark rate in japan is keeping rate on hold as it looks to normalize the policy away from the ultra easing approach. lessons learned this summer prompted a global market selloff. our colleague lynn filed this report. >> reporter: the bank of japan holding rates steady at 0.25%. of note, the central bank upgraded the view on spending after it turned positive in the

second quarter for the first time in a year. on inflation, boj noted expectations have risen moderately. the core cpi print showed another month of acceleration of 2.8% annualized and tracked above the target rate of 2%. this up beat message from the bank of japan has the issue of a rate hike. economists were split on the timing of the next hike with the majority finding there was a chance of a rate increase in december. analysts say risk events include the ruling party elections next week and potential snap general election off the back of that and the u.s. elections as well as the economic outlook stateside. the boj and board members have been vigilant in the recent weeks in the certainties to the

fx markets in the tense volatility in stocks and the yen in the beginning of august. lynn lin, cnbc business news. i want to take you to the bank of england. this is katharine mann with comments. slowing dynamics and weak economic growth prospects suggest likely path for interest rates. i agree inflation could stay above target for an extended comments. mann saying the shock looks it has shown consumption off the pre-covid trade. we had stronger than expected retail sales. can tcut aggressively later. this is a timing issue that we are hearing this morning from mann saying the uk has seeing more of an impact on services prices and guarded view on the

cutting cycle. there is more risk to the cutting in uk. curb behaviors and inflation expectations deanchoring has largely subsided. i have did vote to cut rates in august, but wanted to avoid boogie dance. mann going on to say it un underpins an unsustainable path. these are interesting comments that we are hearing today in terms of opposition to cutting at this stage. 133.04 on the trade. we broken out of the range in the last 2504 hours. those comments putting another prop on the currency today. let's get to benedict lowe. benedict, it has been a fascinating week for central

banks. from the u.s. to china to japan and to england. what jumps out to you how this impacting the equity trade? very broad question. >> i think what we can pick out in the past few days is whether the fed cuts by another 25 or 50 bps at the next meeting in november. it doesn't really matter as much for equity markets. meaning are we going to see growth that is picking back up and are we going to see the sticky core recovery expected in europe or are we going to see further deterioration of the data and head toward recession. that, i think, is what will matter for the equity markets in the end. >> the market was comfortable stateside it got a soft landing. jay powell doing his most to protect the labor market and show there is no scarring. where we go from here in terms of how much ammunition is deployed has consequences, does

sea doesn't it? europe looks ss supported. central banks will step in and on the fiscal side, there is appetite for fiscal policy. >> very good question. we see the base case and most likely outcome is the market. when you look at the prices of volatility, the volatility has come down and this gives you a better entry point if you want to position the optionality. you don't know where you will get the worsening of the data or not. given the price of the option and the move that we can see. you really want to look at optionality >> everything has a price. we are talking about autos. the 60% discount to the wider market, but still bad news flow coming through with things in

the auto market with big sales out of china and everybody wanted a german badge. that changed with the ev market. we are seeing changes. how cautious are we around autos with discount to the wider market? >> i think the auto play is a bit tricky at the moment. the way we see the open market is we prefer to belong defensive going into the u.s. electrion. what you see is a seasonality with the chips off the table. a bit of under performance of the equity market. people will go to the defensive stocks. that's the way we are positioned. we wait for the u.s. election and who is the president and then we think we will go into the cyclicals. >> what's defensive that's days? it was food and beverage and utilities and telecoms. these days, technology weighs

into the basket, too. is that the same? technology is considered defensive now or go back to the old playbook? >> we take it name by name. the big european tech name, we like it. the tech story is more specific names. on the side of the defensive, the sectors we like is utility. this is a rate sensitive sector and we look at what happens when the central bank starts cutting rates. this is one of the sectors that out performs in the soft landing or the hard-landing scenario. >> on the move this morning household goods. this used to be a basket that was real any thely in the spotl. we have something similar to that called luxury goods. there is a huge reset to china not firing on all cylinders and not much stimulus coming and um

p impact with the luxury customer and you cannot afford to trade up to the luxury basket. cut today for burberry and the stock has plunged this year. is there an entry point with luxury or is that further out in the horizon? >> we are waiting for luxury. we think the demand out of china is warranted concern. we were expecting a bit more support from the government on the china play this summer. it didn't come. it was a brief pro-growth view from the government, but failed to deliver really specific measures to boost the economy. really, we're not seeing that leg coming from the consumer. in china, that delayed, actually, the recovery from europe. luxury is not the place. you want to look at defensive. >> if china surprised everyone and luxury would spike. we would see a knee-jerk reaction in the sector? >> if you get a recovery with the consumer in a better stance

in china, we would go long with the luxury stocks. >> thank you for talking with us. benedicte lowe at bnp paribas. w sehe ahead, set to relea t necabcabinet, but it comes amid the key debt dilemma for the country. we'll discuss. kick of confidence. cirkul is the effortless energy that gets you in the zone. cirkul, available at walmart and drinkcirkul.com.

the moment i met him i knew he was my soulmate. "soulmates." soulmate! [giggles] why do you need me? [laughs sarcastically] but then we switched to t-mobile 5g home internet. and now his attention is spent elsewhere.

but i'm thinking of her the whole time. that's so much worse. why is that thing in bed with you? this is where it gets the best signal from the cell tower! i've tried everywhere else in the house! there's always a new excuse. well if we got xfinity you wouldn't have to mess around with the connection. therapy's tough, huh? -mmm. it's like a lot about me. [laughs] a home router should never be a home wrecker. oo this is a good book title.

france is on the brink of having a new government with the prime minister set to propose his cabinet to emmanuel macron. he is set to call barnier as the new minister as well as the defense nminister to stay in th current role.

denmark and malta are the only member countries expected to meet today's date. let's get to our next guest. thank you for joining us. what is the point of the deadline if the bulk of the members are not going to meet it? >> the regulations said that the deadline is today, but the next sentence immediately said that countries can agree to the commission on extending the deadline. i think this is sensible because preparing this plan is a complex task. this will be the first times countries made these plans. i think many countries need more time. >> when it comes to france, clearly, fiscal challenges and putting a cabinet together is one thing. if we talk about the macro first, what we had more difficult conditions with the member countries and we also had a rate cutting cycle that start t ed. how does this help or hinder the budget in the challenges

situations? >> the political situation in france, i think, is the main complicating factor. what happens in the short-term with interest rates is less important because the plan has to be covered the next four-to-seven years and it must include new reforms and investments. you know, agreeing on such reforms and investments in france could be a major political challenge. >> if we look at that situation this france, big spending desires here, but squeezing the budget issues into a shoe at the same time the populist policies come up with barnier. how does the state cut back on the spending plans without irritating those in the voter establishment that have been swinging to the left, far left and the far right? >> this is going to be a major challenge. the budget deficit of france was

more than 5% of gdp last year. why the eu requires it to be kept below 3%. moreover, the framework it entered into this year, required a substantial budget cuts for france. you have a very difficult and delicate job of cutting or rising taxes by trying to preserve social peace in the country. >> if you look at themarket reaction to some of the spending plans we have seen in europe to date, there's not been any concern. the bond vigilantes have been somewhat tame. now with interest rates coming done as well, is there any urgency if you look at the market reaction if you try to tame some of the spending measures? >> on the markets in my view are waiting for the medium plan of the government because even if there is a large budget deficit

this year or next year or if the government can put forward a credible plan, the markets would not panic. if the plan would be incredible from the start, if there would be major debates with the european commission, the plan is feasible at all, i think market pressures could intensify on france. >> there is a time and place to tame spending. we have seen it through the lens of the debt brake in germany that many are watching. globally, the united states is an example, where government spending is accelerating. we saw huge spend on the back of the financial crisis. it went super sonic with the pandemic and many have not cut back. is it time to try to tame spending to prepare for what could be tougher times ahead? >> this should differentiate

between the economic rationale and legal requirements. on the economic front, french public debt is 110% of gdp which is relatively high compared to other european countries, but over in the united states, much lower in japan. france could maintain such a debt level on economic grounds. the eu treaty requires public debt to be less than 60% of gdp. until this requirement is in the eu treaty, all countries must work to achieve the target. >> thank you so much for weighing in on that today. we are closely watching the spending patterns and what comes next. thank you very much for setting the scene today. ahead on the show, whe will eake a look at the equity space ahd of the big bumper move. stay with us for that big story. your business. take full

control of your brand with your own custom store. scale faster with tools that let you manage every sale from every channel. and sell more with the best converting checkout on the planet. a lot more. take your business to the next stage when you switch to shopify.

what is cirkul? cirkul is the fuel you need to take flight. cirkul is the energy that gets you to the next level. cirkul is what you hope for when life tosses lemons your way. cirkul, available at walmart and drinkcirkul.com.

welcome to "street signs."

i'm karen tso. these are your headlines. european majors close the week on the downbeat note and futures pointing to loses stateside. mercedes-benz slashes outlook for the second time in two months accepsending auto st tumbling in early trade. and bucking expectations for another cut and boj changing outlook on consumption. nike ticking higher following the departure of ceo john donahoe as customers trade down from priority services. let's get up to speed with the markets. we are seeing a further acceleration to the down side of what were modest declines

stepping up at the margin as you can see. now down close to .7% on the mark. we have been up about 1.1% on the benchmark, but higher on other boards. gaining 2% before the session which out paced the gains stateside. record levels on the individual markets in europe this week. german stock market. we are coming off high water levels. dax down 1%. french market giving back 1%. modest for the ftse 100. we had good uk retail sales data. it does look to be giving back. futureshelping. we had good news from the german market today. also out of the auto space, this is the look at the big german carmakers trading down. mercedes-benz revising down adjusted return on sales.

that is disappointing. recalls in the mix as well and, of course, volkswagen trying to negotiate with the workers. challenging with the china sales in the mix. that is a disappointing turnout in the sector today and undermining the stock market today. u.s. futures. it has been a calm trading week despite huge risk with the fed and 50-basis point reduction that recalibrated where we are going with rates, but still left the markets guessing. how quickly we are getting into a range on rates. a bit of caution mcoming into te mix off the record highs and close on the dow yesterday as it rallied 1.5% for the trading week. also on the s&p 500, that is on pace again to the upside with some record levels. fed rate cut could be negative for the banking industry in the

near term. longer term, the environment is more supportive as leslie picker reports. >> reporter: there is some complexity with how rate cuts impact the banking industry. in the near term, rate cuts can actually be a net negative for them. loan yields priced downward more quickly pressuring margins. the first cuts do little to alleviate asset risk. over the long run with loan refinancing stabilize according to moody's. capital markets volumes rebound and the environment should become more supportive barring anytime of recession. histo historically, investors are looking past the short-term noise. rallies in the first three months following the cut which is reflected in some of the action leading up to the decision to cut rates earlier this week.

for cnbc business news, i'm leslie picker. >> our next guest says recent rate cuts provide more confidence in pricing and narrowing margins with c conf confidence. johnny myers is joining us now. johnny, it was a huge decision this week. some markets were not looking for a jumbo sized rate cut. in recent years, that notion has changed. what is a jumbo sized rate cut mean for the private equity appetite? >> i think it is very positive, karen, and good morning. what we have been seeing in the uk with reduction in rates is that people have become more confident. we are seeing it's boost of confidence of pricing and narrowing of margins on debt produced a more stable environment. obviously, they are not going down to the previous lows, but

it does give people more confidence. so much is about that. i would say also you have reducing inflation as well which a adds to the confidence levels. >> jonny, the relative is the economic environment has slightly started to turn and we are seeing more casualties around. does that mean we have more forced sellers giving private equity the upper hand? >> uh, we haven't seen so much as we were expecting. what we have seen is over the last year or so where some of the investments were challenged and additional equity being invested into those businesses. so, i personally was surprised we didn't see more sellers in the market and not necessarily going to see them. i think people are working out solutions. >> jonny, what is the motivation with the deals? i was fascinated to know that owners selling to private equity

are not handing over the keys and walking off to the sunset. they are reinvesting some of the proceeds into the business. what is the motivation to sell and why are some of the original owners sticking around? >> that's right, karen. particularly when you are looking at private equity to another financial sponsor, we are seeing a significant increase of rollover or people looking at rollover. it has been a low growth and still remains a low growth environment. if a private equity as an asset for further growth, there is a desire to continue to it and needing some liquidity. which a we are seeing more and more rollover. >> jonny, we were talking earlier this week that we are looking in the vc world. what does that mean in terms of the type of returns that private

equity is targeting as they get into spicier startup companies in technology universe? >> well, i think they approach it from the other side. it's more a question of what's your target return for the fund and do they have confidence that the growth will deliver that return. the dprgrowth has, as you look across portfolios, some stellar returns, but not all can deliver those returns. you take the portfolio approach, i would say. the challenge in all of this, karen, is about finding the growth and the growth particularly as you take it forward a few years. >> jonny, when we talk about route depends on the level of market confidence. all show, we have been talking about the record levels on the global stock markets. it feel thers there is a window for the public markets. >> really interesting you said

that. i was catching up with colleagues yesterday and we are seeing a significant increase in people preparing for ipo next year. as we know, ipo is challenging. preparation doesn't mean it ends up in ipo, but certainly people are looking more earnestly. >> jonny, what segments are we looking here? what is moving right now? >> not in terms of ipo, but acquisition and investments, we are seeing a fair amount of activity in defense related. we are seeing a lot where people are looking at the impact of a.i. on the business sector and if that is going to transform the business or it will deliver growth, then it is the influence of a.i. which is another factor. another remains active is health. health and data storage are particularly popular. >> on that point, having covered

technology stocks and technology events is that a.i. can be extremely expensive. particularly talking about large language models here. private equity is the obvious place to go because it has the ability to deploy large amounts of money. i know you can't talk about specific deals, but blackrock re preparing to deal with microsoft. they partner with absolutely everyone. it stands to everyone with a.i. that private equity gets involved using the expertise of industry. is that how you see it? >> on those transactions, i wouldn't want to dmcomment in detail. there will always remain the challenge that people are investing for different purposes. that's one of the pieces which private equity needs to pick through with the trade investor. often for a different purpose.

>> jonny, we appreciate your time today. jonny myers at clifford chance. with fewer days before the election, both candidates are on the campaign trail working on undecided voters. nbc's alice barr has the latest on the white house. >> reporter: today, a big batch of polling to state how close the presidential race is. the picture showing vice president kamala harris looking stronger after the debate. the battleground results are all within the margin of error. vice president harris bringing in the star power for a campaign event tonight with oprah winfrey. >> we are all together united for one cause and that is to get out the vote for kamala harris.

>> reporter: tonight's streaming event bringing together online groups like white dudes for harris and cat ladies for kamala. >> ultimately, the question is what kind of country do we want to live in? >> reporter: she lost out on a big labor endorsement. the powerful teamsters choosing not to endorse either candidate for the first time in 30 years. internal polls showed rank-and-file members supporting former president trump. >> it's a great honor they are not endorsing the democrats. >> reporter: the harris team saying teamsters endorsed her alongside organized labor. former president trump courting jewish voters at the event fighting anti-semitic.

>> we are going to take back our country and make israel great again and america great again. >> reporter: as both nominees race for every vote. former president trump announced overnight he's planning to visit springfield, ohio in the next couple of weeks after spreading false claims about haitian immigrants there that rocked the community. local officials have said they are taxed by a surge in threats and that a visit from the former president would be an extreme strain on their resources. in washington, alice barr, nbc news. coming up on the show, britain faces an exodus of the ultra rich in the plans to scrap the non-tax status. we'll bring you all the details next.

formula 1 is headed to singapore this weekend with the twisty track at the streets leaving drivers little room for error. ahead of the race, jp ong caught

up with a racer. >> it has been a decade since we have been at the front of the field. t u ultimately, people made our biggest difference. the racing team and development on the race car and made the car quick. that is a combination from everything from aerodynamics and down force and tire wear and strategy on the pit wall. i think we've been on a great journey since austria 2023. miami was this big step forward where lando was his first race of the year. now a couple of wins in and oscar has won a couple of races. now here we are ahead of the championship in singapore. we know the sport can move quickly. >> you said austria 2023. what do you think is different

for the team now and before austria 2023 and perhaps lessons you learned and new things that you implemented that led to the improvements? >> i think when all things in life, when business is going good, it is all elements. if i had to pick one, it is the leadership of the performance team. our head of aero. those are the three drives leadership. what the team has done is unlock the potential in the great team with the individuals giving him real focus. ever since we made that change, you can see a straight line to the front of the field and it all comes down to development of the race car backed by all the men and women in mclaren. >> heading into the race, you are coming into the slender

lead. lando norris said singapore is the hardest race he has competed in. what is the strategy for mclaren? >> it is the most difficult on the drivers. the weather. it is quite humidity and hot and a difficult circuit. when you you make any mistakes and you're in the fence or i.e., the wall. this is the most physically demanding. i think we have to just keep doing what we're doing. no matter what lead we have, it will feel slim. one race at a time. execute. not make mistakes. i'm very excited with our two drivers on the grid that we have a strong grand prix. >> finally, zak, i want to go back to the question i asked lando norris last year. i want to ask you now, zak brown, in the same sepapirit.

do you feel mclaren is in the same position? >> definitely. a lot of racing to go and things can change quickly. we have to keep doing what we're doing. >> that's zak brown there. britain could be set to face a exodus. karen gilchrist is joining us now at the table. some have relocated to asia and dubai. what are you hearing? >> reporter: that is something i have been hearing from the real estate agents. some people have made the moves and preemptive effort to get away before any changes come down the pike in terms of the new charges with the scheme. they have been looking at places as you mentioned dubai and some obvious choices with switzerland and monaco. italy increasingly which is

interesting because they recently increased their tax charge for the ultra wealthy investors which have come. it is still a lower flesthreshoo give them certainty on the outlook to plan for the next coming years. in the uk, the sense of trepidation and unsure of what is happening. people are making the provisions or thinking about it. >> if you are a non-dom, you are thinking about moving anyway. you have to jump around. >> completely. that is the benefit, i suppose of the ultra wealthy group of people. there are other ties that keep them in place. businesses potentially and families. that is the toss up that i think, you know, many of them have chosen the uk for a long time and it has been appealing to them. how much will they be impacted by the change and suck up for

the things that appeal to them? >> this is an important story. we had an event before this called brexit of how the uk was viewed and the willingness to live here and incentives by big companies and relocate elsewhere. if we see any exodus, what does it do to the appeal of britain prior team and they want to improve and have a level playing field. maybe thinking we're just not sure what the layout looks like for the super wetalthy are. >> can we talk about the property market? this is the asset that many people have and there are a couple of factors at play with

the market compressed for a while. we mentioned brexit and it never picked up to a certain degree and interest rates kicked in and now a capital gains hike for those that have extra properties. it is a direction of trade that doesn't seem great for real estate. >> it is a continuation of challenging environments. recent data suggests that transactions in the super prime real estate market down 22% in the past year in anticipation of the election and other factors as you mentioned. now we look ahead to the autumn statement and we are expecting still to have hesitancy of the market and the 30 million plus reports because people just want to get out or just not sure what's going on. i'm also hearing that is creating opportunities where prices are coming down a little bit for those who do get out and that can create opportunities

for the wealthy u.s. investors who are already subject to the worldwide taxes anyway. >> we had a fascinating discussion off camera before and the consumption habits of the segment we're talking about where they are willing to pay for certain services and products because they are less price sensitive. does that drive up inflation particularly on services where we are seeing sticky numbers here or is it a great things because they're bringing money into the economy and paying vat and the economy is supported as a result? >> it is really, really difficult to know. i think the group i spoken to have done more research on this saying they there are all of the second and third effects that contribute to the economy and those are beneficial things we could lose out on. there is the other argument that it creates this exclusive bubble of people and have an impact on the services sector. >> karen, a lot to talk about there. great dinner time conversation.

karen gilchrist with us for cnbc. look at the european markets suffering throughout the trading morning and what we are seeing on the ftse now down .40%. conservative in the markets. selling concentrated in germany with the dax at a record high this week and get through the 19,000 point handle yesterday. negative news flow with the autos and impact of the trade today. french stocks hurt by the household goods segment. luxury suffering downgrades by brokers today. that systemis impacting that ba. you know, i have to say european boards have tried to keep pace with the american counterparts this week though reaching for higher ranges. what we see on mercedes-benz and the sector with so many challenges. the standard has been the fact with the selling action leaving autos at a big discount down 60% before this session. the news this morning, adjusted returns on sales for

mercedes-benz which is a high-end player in the market. that is moving lower. 7.5% to 8.5% range. it is down from 10% to 11%. a couple of recall nos in the m. volkswagen is negotiating with the cost base. mercedes-benz stock in lower trading today. a look at market action stateside as we countdown to wall street. nike announcing it will bring back former executive elliott hill to replace outgoing ceo john donahoe. in june, nike warned the sales could jump 10% this quarter amid soft demand in china and uneven global recovery. a lot of critics which have been too focused on the online strategy and not enough focus on main street. you see the stock is bouncing. on the flip side here, adidas, the rival on the back of the

execution issues at nike, the stock is on the back foot this morning as well as puma upping the ante around the leeisure market. fedex said it is seeing consumers trading down from expensive fast delivery to cheaper and slower options. the consumer proving somewhat nimble here with cost pressures. deutsche post here in europe. a quick look at futures before we go. the friday trade is under whel being. we have seen record after record before and after the fed decision. we are suddenly turning cautious ahead of the market open. thank you for joining us this week and today. i'm karen tso. "worldwide exchange" is up next. frosted treat with a sweet kick of confidence. cirkul

is the energy that gets you to the next level. cirkul is what you hope for when life tosses lemons your way. cirkul is your gateway back home. so what is cirkul? it's your water, your way. cirkul, available at walmart and drinkcirkul.com.

hey, can you speak french? who, me? i know a few words. if you're struggling to speak a new language, you should try babbel, a learning platform designed by over 200 language experts. it's like having your own personal language coach. babbel offers live classes with expert teachers for real world conversation practice. it's totally flexible so you can learn at your own pace and with the right practice and coaching, start speaking a new language in as little as three weeks. go to babble.com to claim your limited time offer today. is it possible to count on my start speaking a new language in as little as three weeks. internet like my customers count on me? it is with comcast business. keeping you up and running with our 99.9% network reliability. and security that helps outsmart threats to your data.

moaire dida twoo? -your data, too. there's even round-the- clock customer support. so you can be there for your customers. with comcast business, reliability isn't just possible. it's happening. switch to reliable comcast business internet with security and get started for $49.99 a month. plus ask how to get up to a $500 prepaid card. call today!

it is 5:00 a.m. at cnbc global headquarters. welcome to "worldwide exchange." here is your "five@5." investors taking a breather following yesterday's fed fueled rally, but one major market event could inject fresh volatility into what's been a winning week for the stock market. shares are soaring after the company names a new