and since matt couldn't be here to play, said mark, he'd play for him. ♪ ♪ very good morning, everyone. welcome to "street signs." i'm silvia amaro. here are your headlines. equity markets in asia rally and hang seng hits a one-year high as china vows to a forceful cut to stimulate capital markets. the momentumcarries over to the european session and the

stoxx 600 turns green with chinese stocks leading the gains. micron shares surge in extended trade after the memory chip maker blows past guidance expectations and driving peers in asia and europe. commerzbank signs off the strategy as the independent entity as it fights off the unicredit stake holder. the ceo tells cnbc there's scope for more consolidation in the se sector. >> if i asked how many banks are in europe, i would say too many. the competition is not what you see in the region. the way you basically should get the consolidaconsolidation. >> we'll hear exclusively from the ceo of the banco sabadell at 9:30 british summertime.

good morning, everyone. we start the show looking at some breaking news out of the bank of america banking conference here in london where the incoming ceo of commerzbank, orlopp, has been speaking and she said we will have a first meeting tomorrow with unicredit. she also said they will stay very open minded. so, an important comment here from the incoming ceo suggesting that they're open to have these conversations with unicredit. let's see what happens twrfrom conversations tomorrow. it is striking a different tone what we heard thus from from members. when it comes in the commentary from the incoming ceo, she says you will exchange views. perhaps, managing expectations there. on top of that, she also

suggested we won't do any stupid things. also an interesting remark there. no crazy selldowns or acquisitions, not with us. you have to evaluate speed of any synergy and execution risks. this, however, i have to put into context for you, is coming at a time when commerzbank is announcing further revised targets. they are suggesting the road to 2027 will be upgraded and target above 12% versus the 11.5% they had previously guided for. we will continue to monditor these conversations with commerzbank and unicredit. it is the most exciting development in european banking for some time. let's see what the outcome will be. interesting comments from the ceo of commerzbank. i want to take you to asian

markets and we have seen a very interesting session in asia today. let's start by looking at the movements. we saw the nikkei 225 ending the session up 3%. when you think about the moves in south korea, the kospi is up almost 3%. that is due with the comments from micron in the united states yesterday. they upgraded their guidance. on top of that, they actually said there's momentum behind their business and that is driving a lot of the moves in asia and is also having implications here in europe. i want to take you to china, too. this is the second narrative that we are monitoring when thinking about equities today. officials have pledged stronger fiscal and monetary policy support for the country's economy. policymakers said interest rates will be cut forcefully and announced home purchase rules to stabilize the property sector.

let's dmive into this so see ho this has impacted the equity moves. china's res is up 22.6%. also for longfor group up almost 30%. the announcement from chinese officials is, indeed, having very significant repercussions in the equity space. there is another sector also hosting significant back side off that. here are some chinese names. alibaba up 6%. tencent up around the same level at 6%. baidu up almost 8%. this is the context when you look at the european equity session today. you have the stimulus from china and the message from micron and this is how we are setting up at this stage. we are seeing european investors

digesting this news very well. the ftse 100 is up .57%. it is worth keeping in mind with the stimulus announcements from china, that has a direct correlation with how we see the european luxury names trading in europe and that is partially the reason why we're seeing the cac 40 moving higher this morning. i want to discuss these announcements with the founder and manager director at china research group. first, i would like to get an explanation of how important the announcements we have gotten this week, really, not just today, put in context how important these announcements have been. >> well, it's great to be here. the last time i was on cnbc europe, i was in the london studio eight weeks now.

since then, back in shanghai, consumer condense is great. everybody was concerned that the chinese government was concerned with the ideological battles and geopolitics and national security threats. it seemed to people in china the government wasn't concerned about the economy. everybody was hoping for a mini stimulus. i think that's what the government has done the last three days by lowering the mortgage interest rates so a lot of consumers refinance and pledging the stock market which is getting everybody excited about the shares. and important today, the state media announced that is xi jinping, who is all powerful right now, held the meeting to discuss the economy. this is the first time in many, many months that it seems like xi jinping himself is getting

involved with figuring out how to reinvigorate the economy. that's got people excited that it's not just about ideology or national security, but the government is focused on rejuvenating the economy so it can hit the 5% gdp growth rates for 2024 which is its goal, silvia. >> right. you mentioned this is a mini stim stimulus. what i would like to understand is can this make a material difference and economic driver in china with the economic issues going on for so long? >> let's break it down for two ways. i think this will help in the next two months in equities. i met with hedge fund managers and they are looking for catalysts to get back into chinese equities. they were looking at this mini stimulus as a way to get in. they don't want to be the last one in or the last one out.

i'm not sure if this is the start of the bull market, but this is more similar to february or march of this year where the markets did go up 20% or 30%. it's a good place to make money, but it's not going to be booming. back to the greater question, is this going to stimulate the country as a whole? real estate acted for 30% of the overall economy. they are now pushing xi jinping's productive forces. evs, batteries, solar power, hey, hey, as you have seen, the biden regime has slapped tariffs on chinese e vvs into the unite states. so has the prime minister justin trudeau. you see china is trying to shift the structures in the economy and going to new productive forces, but still contained by the biden regime and justin trudeau.

i'm still quite negative on the economy over the next three-to-six months. this mini stimulus is enough to get the economic markets going, but not enough to boom the economy. in order to get that running, we need to spur consumer confidence. we need to get the chinese consumer going out and spending again. they're not going to do that unless they refinance mortgages. they will save money. the only way they will spend again is if they see the income and bonuses rising and that's not happening right now. >> that brings me to my next question, really, which is understanding the outlook for the banking sector because the reports we're getting also this morning is we could see a significant injection in some of the biggest lenders in china. ultimately, do you see any sort of risk here for a potential public bubble, actually, within the banking sector? >> i don't see a risk for a bubble any time soon. i actually like the finance

sector. a lot buying insurance products and dime products. i think the question is will there be demand for borrowing money. the government can inject a lot of capital and ease the monetary policy. if there is no demand for credit, that's a problem. in the last few months it has gone up 7%, but only 1% for sme private sector. the private sector and consumer is the one that's really unstable. they're the ones if you have access to credit, they're not going to borrow and invest until they can see they will get profits again. that is how you deal with the geopolitical outlook. it's going to get worse in the run-up to november. is kamala harris going to win? is donald trump going to win? if he wins, is he going to slap tariffs on china?

it's going to take six months, at least, before we start to see the chinese economy feeling comfortable to borrow money and take out money from banks which is why i don't see a bubble happening. >> very interesting. thank you for your time. i'm afraid we have to leave the conversation there. that is the founder and managing director at china market research group. into the other market narrative we are monitoring this morning. looking at micron shares. the company posted $7.75 billion in fourth quarter revenue up 93% on the year and forecast better than expected first quarter revenue. the chip maker sees up to $8.9 billion in revenue in the first quarter and strong demand for its memory chips used in a.i. data centers. that is having an impact into the share price reaction we saw in asia this morning. shares of sk surged after the nvidia supplier announced it

started mass production of the updated a.i. chip aiming for delivery by the end of the year. when you look at european chip makers, too, this is the picture. we are seeing quite a lot of upside with asml up 5%. asmi is similar. and semiconductors are enjoying this market rally. arjun joins us with more. arjun, explain why we are seeing such positive beats and momentum from micron and how is that driving the performance from the other chip makers? >> it was the earnings that brought the themes within the semiconductor space. one of the things we saw from micron is commentary around supply and demand. micron plays in the area of memory semiconductors. this is the area sensitive to supply and demand. last year, there was a lot of supply. slightly weaker demand.

that meant prices were lower. that is working itself out according to the micron ceo who sales there is healthy industry going into next year for two of the key products as well. that was one big commentary. if we read that through to samsung and sk, the two biggest in the world, you saw the shares jumping. s second, the a.i. boom. is it sustainable and continuing? these are the questions the investors have and micron appears to be answering. you saw from the earnings, they said they had quarter record revenue for the high bandwidth memory, the type the chip they sell for nvidia for the data chips. the record data center revenue was achieved in fiscal year 2024. it's expecting more growth going

into the next fiscal year . again, the processors are being processed in the data centers. to see strong growth in the data centers signal to the market that the demanded for chips related to artificial intelligence and training is not going anywhere anytime soon. >> that's an important message particularly when you think about the political picture with the u.s. elections and china, too. all of the stories we're talking about this morning are coming together. thank you for that, arjun. our u.s. colleagues will speak to the ceo of micron today at 2:00 p.m. british summertime. coming up on the show, europe's major economiyies stutter. we'll speak to the chief economist after the break. i 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. (man) look at this silly little sailboat... start speaking a new language in as little as three weeks. these men of means with their silver spoons, eating up the financial favors of the 1%. what would become of them when they discover robinhood gold allows others to earn their very liberal rates on idle cash, unlimited deposit bonuses and handsome retirement matching? they would descend into chaos. merciless chaos.

welcome back to the show. the oecd says the world is turning a corner with the resilient inflation that is

moderating. global gdp growth is expected to stabilize in 2024 and 2025 and inflation is expected to return to target in most g20 economies by the end of 2025. progress when it comes to bringing down the high levels of inflation we have seen recently. now, new oecd sees china growth expected to ease to 4.9% this year and 4.5% in 2025. now, hai had a chance to speak with the chief economist to learn more about the chinese economy. >> there will be growth about 4.9% this year and 4.5% next year. manufacturing in china is doing okay and the exports are doing very well, but consumption has been subdued and not only that, the real estate market continues to adjust.

so the measures announced yesterday are not incorporate in the forecast. the announcement yesterday is trying to convince people to buy second homes and lower rates and better conditions and lower down payments. will this be enough to turn around or turn the corner on the real estate market? we'll see in the next few months and years. it's important to say that we think that we all have been highlighting for many years that we thought high debt in the private sector together with the very large real estate sector meant there is some adjustment that has to be done which is happening now. >> and continuing the macroeconomics discussion, growth in the region is expected to hit 2.8% in 2024 and 3.5% next year. that's weaker than previously forecast according to the european bank for construction and development regional outlook which cites a weaker outlook for

the advanced european economies and stagnating output and the gas conflict and droughts in northern africa. i'm pleased to say here with us to discuss is beata javorcik. good to see you. first and foremost, i would like to understand the revised forecast you are having for the region. just to remind our viewers, you are expecting growth of 2.8% this year and 3.5% for next year. where are the downward pressures coming from? >> well, we are still feeling the fallout from the war in ukraine in emerging europe. the price of natural gas in europe remains five times as high as in the u.s. there is weak demand from western europe for exports from emerging europe and the cost of borrowing, which increased as the war broke out, still remains

high. on the positive side, in the region, we have seen progress with fighting inflation and within historical context, it was remarkably fast even though we are not back to the pre-covid level and wages have also started catching up. that is also good news. >> i would like to go back to the interest payments and we are dealing with a different inflation picture. however, i noticed in the r report, the burden for the payments for the governments and corporates increased. i would like to understand where is the biggest problem really. >> when you think about cost of debt servicing, i'm talking about public debt, the situation is most challenging in countries like egypt where debt servicing costs are equivalent to 8% of gdp. that will thaake a chunk of the

government funds. everybody is feeling the pinch in central europe. budgets are stretched because defense spending has gone up and recent flooding is also forcing governments to incur unexpected expenses. >> indeed. we have seen extreme weather across the regions. i would like to discuss the geopolitical tensions, however, because some of the regions you cover are in the middle east and the war seems to be escalating day after day. what is the risk you will be forced to downgrade the growth expectations due to the middle east conflict? >> of course, the biggest toll of the conflict is on people's lives, but there is also fallout in terms of economics. already jordan has seen decline in investment flows and decline in tourism.

the conflict were to escalate and other countries in the region probably would see higher costs of borrowing and less successful tourists season. of course, lebanon, itself, has been in a dire situation for quite a while. since 2018, 40% of lebanese gdp disappeared. >> yeah. >> that's more than what ukraine lost in the first year of the war. 80% of people in lebanon are estimated to live in poverty. so, this situation is difficult and the conflict is only going to make it orse. >> let's address the other conflict. russia's invasion of ukraine. i was interested to read your forecast for the russian economy. you are forecasting growth of almost 4% this year. at the same time, there's sa sanctions and the war is bgoing on. how is the russian economy growing this much? >> the russian economy seems to

be overheating. public spending, particularly public spending directed to weapons and to armament is fueling growth. we have seen slowdowns after the first quarter. there are signs the economy is cooling off. mobilization caused some shortages of labor and we are projecting growth of 1.5% next year. sanctions are working. russian banks, many of them -- arguably -- some sanctions are working. many russian banks have been cut off from the s.w.i.f.t. system. you see more and more transactions are processed in rupies or turkey lira.

western multinationals have that. we are going to see an impact on the productivity growth, but this chan nel is working slowsl. >> it is astonishing. i would like to see the other side of the story. ukraine keeps being vocal about how dire the situation is. they keep asking for more financial support. from your working in ukraine, how difficult is the economic picture for ukraine at this stage? >> very challenging. the year started out very well for ukraine with a strong first quarter. ukraine was able to export grains, metals and ores through the black sea channel. government expense on defense fueled the economy. then the bombing of electricity infrastructure happened. half of the capacity was destroyed and that means rolling blackouts.

there's some imports, but that electricity comes at a higher cost. this situation is very difficult. as the ebrd, we are trying to help. since the beginning of the war, we have deployed more than 4.5 billion euro and this year around 1 billion. >> all right. we'll continue to monitor what happens on the ground. thank you for your time this morning. that was beata javorcik, the chief economist at ebrd. coming up on the show, we will speak to cesar gonzalez-bueno, the ceo of bcoan sabadell. that exclusive interview is coming up after this break. 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. shopify's point of sale system helps you sell at every stage of your business. need a fast and secure way to take payments? we've got you

covered. how about card readers that you can rely on? yep, that too. want one place to manage every sale from every channel? that's kind of our thing. whatever you sell, businesses that grow grow with shopify.

ah, these bills are crazy. she has no idea she's sitting on a goldmine. well she doesn't know that if she owns a life insurance policy of $100,000 or more she can sell all or part of it to coventry for cash. even a term policy. even a term policy? even a term policy! find out if you're sitting on a goldmine. call coventry direct today at the number on your screen, or visit coventrydirect.com. (man) these men of means with their silver spoons. what will become of them when they discover robinhood gold allows others to earn their very liberal rates on idle cash. they would descend into chaos. what is cirkul? cirkul is what you hope for when life tosses lemons your way. cirkul is your frosted treat with a sweet

kick of confidence. cirkul is the effortless energy that gets you in the zone. cirkul, available at walmart and drinkcirkul.com. welcome back to "street signs." i'm silvia amaro. here are your headlines. equity markets in asia rally and hang seng hits a one-year high as china brings a forceful cut to interest rates. and the momentum carries over into the european session

as the stoxx 600 turns green with chinese stocks leading the gains. commerzbank shares bounce as incoming ceo says she will hold a first round of talks with unicredit tomorrow. >> we are engaged in any topic and any an accommodation which clears value for the stakeholders and shareholders for sure. so, the only thing we said is we need to put stability into the situation. we're hear from another ceo about the takeover in judgst a w minutes. and micron guidance blows past expectations and driving past fears here inasia and europe. welcome back to the show.

let's look at the latest developments in commerzbank. it is extending gains after the incoming ceo, orlopp will hold talks with unicredit tomorrow after the strategy of independence. snp said the possible tieup is still not clear. orlopp said her priority is the interests of commerzbank's shareholders. >> there's a lot talking about all they have with the defense team, et cetera. you know the defense team means that we have a team which is defending the interest of our three stake holder groups. investors, clients and staff, nothing else. i can only also reiterate which i said already in meetings we will not do any stupid things. our main objective is to protect the value and the business model

and the franchise of commerzbank and that's what we do. >> staying with banking, the bnp ceo told cnbc that encouraging banking consolidation in europe would boost stability and performance for the sector. >> if i asked you how many banks in europe, the right answer would be too many. we are very fragmented in activity and the competition is not what you see. the way you get that consolidation and get that going. that consolidation across border is far away. however, what we are talking about here is the intrinsics are in one nation is what is happening. from that point of view, that should lead to limiting the number of banks and even further stabilize the uncertainty in banking in europe. >> the cross border is a far

fetched reality with europe? the political and thedomestic political reaction? >> i think the one thing is in the nation and economically, they make sense and they should economically happen. when you look at really cross border, a bank based in one cou country only, that does economically make sense because there are no synergies. we are talking about one country and logically the economy is there. >> the ceo of bbva is warning europe will fall behind if lawmakers continue to block the banking deal in the sector. speaking to charlotte here at the conference in london, it is lacking banks with sufficient scale and scope to compete globally. competition is good for the economies.

this as bbva looks to tie up the merger with banco sabadell. >> we feel this is good for spain. we are giving the same numbers all the time. this gives an additional 5 billion euro lending capacity to the spanish economy. we are looking for scale. european banks, spanish banks. we need to look for scale because our costs are increasing especially in the technology space which is a fixed cost. if you are not large, you will not be able to compete globally. >> charlotte joins us live now from the bank of america financial ceo conference. charlotte. >> reporter: thank you, silvia. i have a special guest joining me. cesar gonzale az-bueno. i had a chance to speak to you and chasing your bank in the hostile takeover.

he is confident he will get the green light which is convincing shareholders. how are you ckconvincing your shareholders you will not take part in the takeover? >> our key is the shareholders. all of the approval is the regulatory path and in the hands of great professionals. what is going on here, three and a half years ago, bbva had the opportunity of buying sabadell five times cheaper than it is pursuing now. what does that mean? the value creation of sabadell is faster than the value of bbva. therefore, the price is not right. the price is insufficient. it was insufficient when the offer was made. since then, bbva has dropped 11% in value. as it is in all shares payment, therefore, the value we would be

receiving would be 11% lower than the original offer. why is that? this is happening because the mexican banks and pesos have gone down 32%. as 50% of the receipts of income and profits of bbva come from mexico, it is only logical the value has dropped. >> this is a risk in your view? >> that's right. that's what the board said. that's what the board expressed. it said first the price was not there and second that it was a very volatile offer. bbva is not a european bank. 70% of its income comes from outside europe. it presents itself as a european bank, but it is an emerging bank. that's why the value it brings to the table is much bigger. there are three elements when

you are considering a con consolidation or merger or takeover. they are relevant. the first one has to have the price. it doesn't have price. the second is it is very recom recommended, it is friendly and this is hostile. the third one, it doesn't have to have a lot of complexity around it from a regulatory perspective. this one is huge because it's an upheaval in spain against the trans transaction. >> also the performance to derail with the higher payment. is there more to highlight potentially? >> why? there is no poison pill. we follow the track much before the the hostile takeover. that's 2.9billion.

that's 29% of the current market cap of sabadell. in 18 months, people are going to get almost 30% of their investment in payouts. >> what if the offer is improved? will you change your mind? >> it is not for us to change your mind. >> the recommendation potentially? >> it will help the shareholders. it has to be significant. it has to be significant and therefore, that would grifive t a greater chance if they pay the value. >> the argument of the bbva saying yesterday it's good for spain to give an extra 5 billion euro of additional lending capability for the country. >> that is another out of thin air non justified number. >> they say the adjusted figures came up with the number. >> they can say what they want.

when it was taken over by santander, two and a half years, the liabilities were there. they lost 67% of the assets. why is this? we have one in two smes in spain. 66% in the catalonian market. 60% in the region. >> you focused on sme. they focus on busi big business >> they have overlap there. all of the situations is political and social and entre entrepreneurs. they are saying enough consolidation. it is precisely around the sme which is 70% of the wealth in spain is creating the risk. they have on average four relationships, four relationships. we are banking one in two overall spain.

they are also very important and very good, by the way. so that overlap would mean first like in the case of sabadell or santander, many clients would not want that concentration. the bank would not like that concentration. that has always meant sme reduction of share. always. it's unavoidable. >> yet, we hear we need consolidation in europe. that's why we heard from bnp. you need scale and consolidation. >> we'll have it. we'll have it. we love consolidation. as a matter of fact, sabadell had eight mergers of con consol consolidation. so, we believe in size and consolidation, but it has to have the right elements. it has to be right and it has to have price.

it has to have friendliness, this is hostile. it has to have the agreement of the stakeholders. this one has none. consolidation is great. we believe this consolidation is great. hostile takeovers in banking usually don't succeed. >> do you believe then in cross-border consolidation? there is a case within the commerzbank. is there a way for cross border consolidation? >> absolutely. active or passive or bhwhatever. we believe in the national ones. the problem is where they get to the point in the overlap in the segment is crucial in smes breaks down everything. it is not that the consolidation is not good, it is about the stakeholders. that's what we are all for. >> excellent. it is great to get your

thoughts. ceo of sabadell. why his bank is better off staying independent. again, consolidation is the heart of the conference here. we had a few interesting conversations here. silvia. >> charlotte, for a bit of context, the banking sector at this stage, is trading higher by almost 2%. let's broaden out and take a look at the equity session so far this morning. we have green across the board. the dax up 1.2%. in france, the cac 40 up 1.7%. the news out of china with the further stimulus is driving a lot of the market performance this morning. to give you an idea, the stoxx 600 is trading close to record highs. with that in mind, i want to take you to the oil prices because it's a different picture in terms of what we're seeing in the oil and gas sector this

morning. down 2.6% at this stage. this as we are tracking lower oil prices after the report that saudi arabia is preparing to abandon it's unofficial price target of $100 per barrel as it plans to increase output according to the report from the financial times citing people familiar with the matter. on your screen, you see how we are trading in terms of oil prices at this stage with wti crude down about 2.5%. brent also down about 2.4%. so that is also translating into some of the moves in oil majors this morning. looking at some of the european oil names so far this morning. you have bp down 4.3%. shell also lower by 3.6%. that is also similar moves when you look at total or eni and all of the oil manim majors under pe

this morning. coming up on the show, meta reveals a new headset and reality glasses. we'll bring you the details after this break.

introducing a revolution in pain relief. absorbine junior pro, the strongest numbing pain relief available. it's the only solution with two max strength anesthetics for fast penetrating relief absorbine junior pro. nothing numbs pain more.

welcome back. now openai is considering plans to restructure into the for-profit business. the structure would be more simple for investors with the non-profit segment retained as a separate entity. meanwhile, reuters and bloomberg reported that sam altman received equity for the first time. in the meantime, mira murati will leave the company after six and a half years. meta revealed augmented

reality glasses. the company also announced new a.i. features for the ray ban smartglasses and the low cost head set. juewel julia boorstin filed thi report. >> reporter: with a.i. at the center of everything. along with the new lower cost virtual reality crest 3 head set, the company revealing orion. augmented reality glasses which zuckerberg called the most innovative glasses the world has seen. you can see through them and see h holographic displays. i spoke to the company about the bottom line. >> everything we talked about with owe rion will accrue vr.

for the long-term business model of the company, it behooves us to have the ecosystem and refinements and improvements. >> reporter: zuckerberg also announcing new features for meta a.i. and whatsapp and messenger and instagram. you can pick among celebrity voices. zuckerberg saying 500 million people are using meta a.i. the ray ban glasses are getting live translation and the ability to areview set reminders. it did not review for advertisers, but continues to see strong adoption of the tools it rolled out. meta said more than 1 million advertisers are using the a.i. tools and 15 million ads are created with the tools last

month. julia boorstin, cnbc business news, menlo park, california. here are the four things to get you up to speed ahead of the open on wall street. investors are looking out for initial jobless claims due at 13:30 uk time. earnings are set to be reported before the bell and followed by costco in the afternoon. the israeli prime minister benjamin netanyahu is looking to address the unga this afternoon. we'll hear from the u.s. treasury secretary janet yellen on cnbc. that interview is coming up at 3:00 p.m. london time. i'm pleased to say the ceo

at hamilton lane is joining us today. eric, good to see you. i like to get your thoughts on the announcement from the fed last week of the 50-basis point rate cut. you describe it as a victory lap. why? >> i think it was no surprise. i think the fed has seen the cooling occurring and the rate change was not unexpected. hamilton lane has been suggesting that 50 basis points is where it came in. i think seems to be well under control. you've got a nice balance here of good growth in the economy. still seeing very strong customer spending and i think this is also signaling a chance for the private markets to get back to more business as usual. >> very clear. what do you think this means for private markets? i know that's where you are invested. i would like to understand what is the upside, if any, from the changes of monetary policy. >> i think the main upside is people want more certainty. when you see a world where there's a lot of unknowns and up

until recently, the fed was an unknown, it really cools down deal volume. i think with the clear signaling, i think we're seeing other banks following suit here with lowering rates, i think that provides certainty for private equity investors to begin deal doing. it doesn't hurt that their borrowing costs will be lower. that makes transactions easier to accomplish. >> naturally. i would also like to understand the thoughts around ipos. in your notes, you suggested we are likely to see a significant number of ipos next year. my question to you is where and what sectors are more likely to see this activity? >> i think what you have seen is a very cool ipo market. in fact, why one of the reasons the private market is a beneficial of this is the number of companies continues to drop globally. being public continues to be challenging. that said, we're seeing a bit of a cooling off.

the pipeline of ipos is starting to build and we expect as we move into next year with the u.s. election behind us, they will start to see more robust activity. my theme for ipos is going to be profitable businesses. that's what i think we're expecting to see the biggest volume of businesses growing and generating real profits. right now, the public markets don't more more unprofitable businesses. there are already plenty in the public markets today. >> where are the profitable businesses at this stage? >> some of them are going to be very traditional. retail and manufacturing businesses and more traditional businesses still growing. we are seeing good space in the financial services business. well run businesses. i think what you will see less of is less speculative technology oriented and some revenue, but cash berurning.

>> i would like to get your thoughts on the innovation if there is an innovation in europe. this is the context of a stat i came across. there is no european company with the market capitalization of 100 billion euro that has been set up from scratch in the last 50 years. my question to you is given your visibility in the private markets, any guidance this is likely to change in the near future? >> i don't see a lot of that changing near term. i think what you see is a lot of the infrastructure for start-up businesses and technology businesses for better and worse, has gravitated back to the u.s. we're seeing entrepreneurs trying to get those businesses up and running mainly in the u.s. markets. that's back to the ipo question. that's the market that has historically been more receptive to those kinds of businesses. so, it's made sense to domicile them there. >> very clear. thank you for your time.

eric, co-ceo at hamilton lane. let's look at u.s. futures as we approach the open on wall street in a couple hours time. i want to remind our viewers we get initial jobless claims figures and latest gdp readings for the second quarter and at this stage, the futures do suggest it could be a positive start to the start on wall street. it is a positive start here in europe and we saw earlier today also in asia. when it comes to what we had seen on wall street yesterday, the dow, the s&p saw fresh all-time intraday highs. however, they did finish the session in negative territory. let's see what will happen later today. that is it for today's show. orwi e.via amaro "wlddexchange" is coming up next.

(man) these men of means with their silver spoons. what will become of them when they discover robinhood gold allows others to earn their very liberal rates on idle cash. they would descend into chaos. business just to keep the lights on. you're here to sell more today than yesterday. you're here to win. lucky for you, shopify built the best converting checkout on the planet. like the just one-tapping, ridiculously fast-acting, sky-high sales stacking champion of checkouts. that's the good stuff right there. so if your business is in it to win it, win with 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. ah, these bills are crazy. she has no idea she's sitting on a goldmine. well she doesn't know that if she owns a life insurance policy of $100,000 or more she can sell all or part of it to coventry for cash. even a term policy. even a term policy? even a term policy! find out if you're sitting on a goldmine. call coventry direct today at the number on your screen, or visit coventrydirect.com. pete g. writes, "my tween wants a new phone. how do i not break the bank?" we gotcha, pete. xfinity mobile was designed to save you money and gives you access to wifi speeds up to a gig. so you get high speeds for low prices.

better than getting low speeds for high prices. right, bruce? -jealous? yeah, look at that. -honestly. someone get a helmet on this guy. xfinity internet customers, ask how to get a free 5g phone and a second unlimited line free for a year. switch today! this is not a drill. subway dropped the price on all their subs. 20% off any sub, any size. subway did what?! any sub? yup! for a limited time. get 20% off when you order in app. hurry and get this deal before it's gone!

it is 5:00 a.m. here at cnbc global headquarters. welcome to "worldwide exchange." here are the "five@5." nasdaq futures are surging more than 1%. part of the jump in fuel by micron that is giving a boost to the chip sector. a rally in china adding to the weekly gains and the s stimulus