isnnocent, saying he took the plea to spare his family the pain of a second trial. welcome to "street signs." i'm carolin roth, and these are your headlines. israel vows to hit back against iran after it launches almost 200 missiles, escalating fears of a wider middle east conflict. oil searchs amid supply disruption fears. tim walz and jd vance face

off for what is likely the final time before the election lashing out about the economy. >> rising wages, rising take home pay, an economy that works for normal americans. >> kamala harris says to do the things she wants to do, we'll ask the wealthiest to pay their fair share. >> the shares of nike tumble as the sportswear giant cancels its giants and warns of a disappointing holiday season ahead. let's get back to our top story. israel has vowed to respond. the idf said most were intercepted with the assistance of a defensive coalition led by the united states. i want to show you. obviously it was most pronounced in the price of oil up another

5% today. today brent crude is up another 5% today as well. this follows a spike yesterday. so finally we do have some political risk premium in the price of oil. i want to show you what the european oil is. let's show you those energy names here. bp up with a sizeable gain of more than 2%. shell also higher to the same extent. energy in france also higher to the tune of 2.7%. the other beneficiary of this widening story, the widening conflict here, of course, the european defense names. let's show you those. we're seeing pretty big gains for those as well. now, airlines they've obviously suffered. they've diverted 80 planes bound for middle east destinations after rounds of attacks on israel. disruptions continued into today

while nations including jordan, iraq, and lebanon closed their airspaces. let's get some analysis on this the day after with dan, who's joining us with more. dan. >> carolin, hello to you. this marks a serious escalation between it real and iran. we have seen a significant impact on equities markets and commodities as well. what we saw last night was iran launch over 200 ballistic missiles. most were intercepted by israel's system, the iron dome. nbc news reporting there were no immediate casualties. what we have seen, though, is israel's prime minister, benjamin netanyahu, vowing to respond. he says iran has made a major mistake. li listen. >> translator: tonight iran attacked again israel with hundreds of missiles. this attack failed. it was thwarted thanks to

israel's air defense system, which is the most advanced in the world. i congratulates the idf for their achievement. i thank the united states for its support in that offensive. iran made a big mistake tonight and it will pay for it. the regime in iran does not understand our determination to defend ourselves and our determination to retaliate against our enemies. >> prime minister netanyahu speaking there. so, of course, the focus for market investors right now is what this response is going to look like. will it be a counterattack against iranian targets, specifically oil infrastructure? will it be an attack on military sites or maybe even nuclear facilities as well? we simply don't know at this point. what we do know is that the escalation appetite on both sides appears to be limited at this point. perhaps a bigger escalation would not be in israel's best interest. but you have to remember, this

is an emboldened israel, hellbent on getting scores for the atrocities on october 7th. it's an israel that invaded lebanon this week, assassinated the leader of hezbollah, and a leader that has waged a war undeterred by the humanitarian and s and civilian incidents. what this response looks like is, of course, a key question to anyone exposed to these markets and anyone following developments in the region. >> dan, can we talk here about the ramifications it might have when it comes to the u.s. election which is only five weeks away. a good piece in the ft this morning about essentially this benefiting donald trump, because he might paint the picture there is chaos, war under the biden administration. do you have any views on this and how it might impact the u.s.

elections? >> well, this is clearly a heart button issue. the first question asked to both of the candidates is how they would handle this. this is important for the u.s. as well, continuing to see the tensions rise in the region. of course, for the biden administration, what we have seen is ongoing diplomatic efforts with the sec of state anthony blinken hitting up a number of countries in the region in the last few months not just to get a cease-fire in gaza but also to basically deter israel from continuing its attacks on other countries as well and hezbollah targets too. the question is how effective has that necessarily been. at this point you could say not effective at all with the cease-fire very much in doubt at this point. president biden did want a cease-fire before the end of his term. it's looking increasingly unlikely that's going to happen.

as i mentioned, this is an israel that's taking advantage at this moment in the united states. as for the candidates heading toward the election in november, while president trump is a friend of the region, he's very well received in this part of the world, and historically he has been quite tough on iran. perhaps that is going to resonate well as he continues his pitch to be the next u.s. president. as well kamala harris. she was in the situation room with president biden as this attack unfolded against israel. she has also sought to ess essentially strike a balance here, on the one hand seeking to condemn the attack on israel and saying she would come to israel's assistance and support, but also on the other hand, condemning israel's actions in gaza and while looking out for the plight of the palestinians too. this is a delicate balancing act for both sides. of course, we'll watch closely to see who emerges victorious in november. >> of course. only 40 days away.

dan, thank you for your an all cyst. . /* we asked why oil prices have not moved significantly higher despite the political backdrop. take a listen. >> the market's short. there's a very short position not only in oil. you see it in equities. investors don't like to see this. it doesn't start until the first quarter in terms of analyst balance tables. when we look at the situation today, it's starkly different. inventory is low, curve, stimulus package on top of that, and you still have the opec production cuts. on top of that, we've thrown in potential conflict in the middle east that could take out facilities.

it's being weighed down on the back end over the fears of this big oil supply. >> let's get more analysis on all things politics with andy. thank you so much for your time. let me start by having you weigh in on what carlyle group said just now about the price of oil and the market being excessively short. >> yeah. these are dangerous times for oil markets at the moment. it's hard for anyone in that market to really gauge kind of the direction when you look at the amount of geopolitical risk that is out there now. of course, we haven't seen that reflected in the price until that. the backdrop to this is literally hundreds of attacks on oil shipping, on shipping going through the straits. this has been a key narrative over the last two years, and it hasn't really plooshed the dial in terms of oil prices over that period. we're still languishing as we are now, around $75 to date for

brent. that was after the close yesterday. where is the geopolitical risk premium? we've seen these near unprecedented events between israel and iran, the tit for tats, exchange of missiles, of attacks on each of its assets. and, you know, when you're seeing that in this big spike in prices, you know, when you look back to the attack on oil facilities in saudi arabia, you're going to naturally get a $10 per barrel surge. we haven't seen that sort of volatility yet. >> let's talk about the supply coming from iran, roughly 4% of global supply. if some of that is disrupted, if the strait of her muse is disrupted, where would you see it? >> any attack on oil facilities and refineries, it's a knock on the region. it's a be upcy ply of natural

gas into iraq. without that supply, petropumps go dry, and that's a big problem for the iraqi government. the problem for opec, it's very difficult for them. so there is a big knock-on effect within opec to any attack on iranian oil, refinery, infrastructure that could come from this by the israelis in response. in terms of the export markets as jeff currie just said, the market is looking at next year. we still have 5.6 million barrels a day of idle opec on the sidelines. saudi arabia wants to bring as much of its oil back as possible. any disruption to iranian supplies to the international

market could probably be made up by opec's spare capacity and its idle oil at the moment. >> that makes a lot of sense given the amount of spare capacity when it comes to tmid the middle east there. he warns of a 50% increase in oil. obviously this is a very much veiled threat. we're going to start a price royer if you don't stick to the rules. are we going back to 2014? >> we could be. the data speaks to itself that saudi has been squeezed in its core markets and by russia. that russian crew that was displaced, that's flowed into asia, china, india. these were markets that saudi arabia effectively owned with its major gulf partners in opec. that all changed when russia

invaded ukraine and we have the imposition of sanctions. yes, saudi arabia has problems with compliance within opec. you know, primarily countries like kazakhstan, iraq, however, it has a bigger problem in terms of russia and that's what we're not really talking about now. it's russia that's taken that market share from countries live russia and india, which is a big drive for the oil oversights. >> thank you so much for your insights. let's take you back to the market. we're roughly 1 hour and 50 minutes into the trading day. this is the picture. we're modestly higher for the stoxx 600. we've seen two days of losses for the european markets. we're a little directionless. we're loving the chinese stimulus, but some corporates are worried for the european investors. i want to show you the european markets one by one. the ftse 100 is getting nice

resources. the xetra dax is up 0.1%. the cac 40 is also higher to the tune of half of 1%. obviously nike could be a big factor into today's trading session, down by 6% in after-hours trade, also putting quite a bit of pressure when it comes to the likes of adidas, some of the sports gear maker. we'll talk much more about that during today's show. obviously the chinese markets are still closed for the golden week holiday, but the hang seng is back, and this is the reaction. it's still getting a nice shot in the arm from the stimulus announcement from last week, up by 6.2%. the nikkei off by 2.2%. a quick check of the u.s. futures as we're just still a couple of hours away from the start of the trading session. the s&p 500 off by 2.2%. the nasdaq was down by 1.5% in

yesterday's trading session as we got the news of iran launching missiles. a lot of risks being taken off the table here, and that's why we saw the dow jones down by 0.5%. the s&p 500 losing almost 1%. still coming up on the show, candidates square off in the vice presidential debate, making their case to voters as the clock ticks down to november's election, but were their performances enough to move the needle? we'll take a look on the other side of this break. don't go away.

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candidates faced off. they clashed on immigration, geopolitics, and reproductive rights, as well as who would be

better placed for the economy. >> governor, senator. rorter: minnesota governor tim walz and ohio senator jd vance clashing on the debate stage just hours after iran's strike on israel put a spotlight on foreign policy. >> israel's ability to be able to defend itself is absolutely fundamental. >> donald trump actually delivered stability in the worlding and he did it by establishing effective deterrence. people were afraid of stepping out of line. >> reporter: a moment of unity in response to the devastation caused by hurricane helene. >> our hearts go out to the innocent people and our prayers go out to them, and we want as robusta federal response as we can get. >> reporter: and the economy. >> we'll just ask the wealthiest to pay their fair share. when we do that, our system works best, more people participate, and folks have the things we need. >> if kamala harris has such great plans how to address middle-class problems, she ought

to do it now, not when asking for a promotion. >> reporter: vance turning the issue to a top focus, border security. >> you've got to stop the bleeding. you've got to reimplement donald trump's border policies, build the wall, reimplement explorations. >> donald trump had four years to do it. he had four years. he promised you, america, how easy it would be. >> reporter: walz talking about ubs in contrast to donald trump. >> he brags about how good it was to put the supreme court judges in and overturn roe v. wade. >> as messy as democracy sometimes is to let voters make these decisions, let the states make their abortion policy. >> reporter: with voting already underway in parts of the country, each campaign is looking to leave a lasting impression in what is likely the final debate.

vice presidential debates do not sway polls significantly, but donald trump has not agreed to a second debate against kamala harris, so this walz/vance face-off could be the deciding factor in this race. let's turn to other big news out of the midwest. major shipping ports in the u.s. are expected to stay shut until demands are met. speaking at a new jersey picket line, he said either the picketers win or the ports will never open again. yes, he said that. if the impasse continues beyond a week or two, economists have told cnbc that price hikes could be in the cards if supply chain issues compound. let's add another mix here. what is your sense here in terms of how big the impact could be when it comes to inflation, when it comes to growth?

>> yeah, so i think if we're looking at this, we have to think about a couple of factors. the first is the length of time the strike persists for, the second is the kinds of goods that are at the ports, the impact on impact of growth, and the third is the question whether you could see diversion to other ports and the extent it can be aheave yated. the length of time the ports are closed is a key issue. the question is whether you would see redistribution of activity. the idea is activity could be held back for a short time whilst there's port closures and it could be distributed in terms of weeks and months. from an inflation perspective, you would have to see a

prolonged strike to see an inflation iowa impact from the strikes. >> this could throw huge works. they were just starting to relax and focus on the labor market. abi, there's so much i want to talk about. we're getting a number of jobs reports out culminating in the all-important jobs report on friday. how healthy or how fragile is the labor market? is it consistent with the soft landing that the fed is seeing? >> in our view, we think the slowing we're seeing in the labor market is what we've seen in the economy. obviously we saw some revisions last week in the national accounts in the u.s., but even accounts for that, you have seen a slowing in the economy for the first half of this year, and the slowing you've seen in nonfarm payrolls is consistent with that. i think that's kind of how the committee and the fed really reserve are reading this as well. you know, i think chair powell's signaling around this, you have seen kind of a normalization in

the labor market, slowing in the labor market, and they're looking to put a kind of flaw under that slowing and keep the economy, you know, expanding and kind of continuing to run along whilst they continue to see progress on inflation kind of toward the 2% target. >> what type of number are you looking for this friday that would keep the market and the fed at ease essentially, and to kind of keep the narrative going that we're only going to be seeing two 25-point basis cuts because jay powell has made it very clear this week they're not going to see another jumbo cut. >> yeah, you're right. you know, sticking very closely to the signal. expectations, kind of 50-basis-point cuts this year. on fraud we're looking for a consensus, a gain of payrolls in september. a big part of that is kind of a summary of government hiring. i think what's important that

we're looking for on friday is revisions to the august data. what we typically see is underreporting in the august report. our expectations are you might see the kind of three-month moving average moving a little bit higher, looking a little bit healthier after the report on friday. already it's a key input into the debate around the pace of cutting from the federal reserve from here. >> we're back to data watching. i've got to talk to you about politics on the back of the vp debate we saw yesterday, and i'm not going to talk about the vps, but the actual candidates. there's a big toss-up, big discussion in the market. who's better or worse for growth when it comes to inflationary impact. the growth impact obviously tears immigration. those are some of the key policies that donald trump will tackle. corporate tax on the other hand might be bad for growth. what's your sense here? >> yeah.

i think obviously there's a whole lot to digest in terms of the implications of the u.s. election. i think we're focused on three key areas of policy. the first is around immigration, this idea you saw kind of a labor supply shock last year and that really did help the economy run above trend while you saw disinflation. that's an important factor to think about going into the election. the second is around fiscal policy. we have the expiration of the 2015 tax cuts happening in 2025, and with that there's some risk. you know, you need to see the extension to keep the existing tax code in place. if we think about what that looks like for growth, the implications, you're kind of spending to stand still. in my opinion, you know, you're trying to keep the exiting plan in place while extending or giving further tax cuts to individuals, and the third thing is around trade policy and tariffs a and what that might potentially look like with potential implications of growth

inflation and mix with the u.s. economy going forward off the potential tariff policies. very briefly, neither candidate is going to tackle the deficit, correct? >> in our projections it looks to be wider for most of the outcomes, yeah. >> abi watt, thank you so much for your time. still to come in the show, andrew forrest will be joining us from the fortescue dialogue. that interview is coming up next.

hello and welcome to "street signs." i'm carolin roth and these are your headlines. israel vows to hit back against iran after it launches almost 200 ballistic missiles at the country, escalating fears of a wider middle east conflict. oil prices surge after a fare of supply disruption fears.

jd vance and tim walz face off in what is likely the last debate before the presidential race talking about the economy. >> rising wages, rising take-home pay, an economy that worked for normal americans that kamala harris has said to do the things she wants to do, we'll just ask the wealthiest to pay their fair share. when you do that, our system works best. theshoe drops for nuke with shares tumbling more than 6% in extended trade as the sportsware giant cancels its guidance and warns of a disappointing holiday season ahead. once again i need to draw your attention to what's been happening in the oil markets because obviously we've seen a big spike here. oil is up by 2.2% when it comes to wti crude. brent is higher to the tune of 2% as well. this is, of course, on the back of the escalation in the middle east.

yesterday we saw both prices spiking to the tune of 5%. let's stay with oil. opec plus is reportedly unlikely to shift its output policy at today's meeting. that's according to reuters which says the producer group will start to unwind cuts for december. the virtual meeting is scheduled for 1:00 p.m. london time. oil prices are likely to hover around $70 a barrel. that's according to ia executive director who expects current demand levels to continue in 2025. it was also pointed out that investment into clean energy makes up only a small percentage despite promises to be part of the green transition. >> i have so many speculations for many, many years in that context, but when it comes to the oil, big oil companies, many of them say that they are -- they want to be part of our

global fight against climate change. this is very, very welcome. that i mention a lot in their statements, in their policies, in their interviews, but we look at numbers. what eni look at the numbers, last year of all the investments of the oil and industry globally, only 4% of the it. we just quote the numbers and we have nothing to do with the internal part of it, yes, or in other countries. meantime the secretary for germany says more financing should be directed toward developing countries to secure the green transition. >> i think the weakest link is on the finance piece of things. what we're seeing around the world is that 85% to 90% of all the investment in the energy

sector goes to developed countries and is happening in china, and, therefore, we're looking to see how can we be driving those investments in developing countries that have so much potential and desire to go renewables and looking at how to bring down the cost of capital there and also working -- many countries are working to get their next national climate plans in place. that's one of the key issues in the international negotiations right now where they can have long legal policies to give that investor certainty for the private sector to move in. >> the financial sector will really only come in increasingly if the returns are there, if the performance is right. is it right? >> well, i think there's two thoughts on that. one is, yes, the performance is right on renewables. i think we see that growth in the industry. we see the need in countries that do have higher risks to be dealing with those risks through mechanisms like guarantees. and the other thing i think more

and more is we're seeing people understand they have to calculate in the full economic cost. that means also the costs that are coming from these climate events that are happening around the world, disrupting, of course, homes, but also supply chains for companies. and that's the new normal that we are in right now, and we need to be moving those things together. and then, yes, absolutely, efficiency, renewables, that works. . >> net zero targets are flawed. that's according to our next guest. that is a very special guest. that is andrew forrest, the chair of fortescue. thank you for your time. you're saying net zero is flawed. why should the world be looking at real zero? >> carolin, thank you. well, quite simply, real zero is the ability of the planet to use the technology right now to stop

burning all fossil fuels by 2040. if we did that by 2030, we would have a 50-50 chance. that's not going to happen. we're a huge industrial company, massive polluter. we'll stop burning all fossil fuels easily this decade. not next. this decade. we're saying to the world, if you want to hold that planetary boundary to a future which is inheritable, tolerable for your kids, then we must go real zero. we must stop burning fossil fuels by 2040. i'm saying that because i'm watching from business to science. the global carbon absorption is beginning to break down on the planet. with that breaking down and carbon dioxide pollution going through the roof, record every year, thank you net zero 2050,

you're completely following organic life and humanity. now is the time to walk away from net zero 2050 has really been anything but a con to maintain fossil fuel. i've had the major oil and gas companies say to me, hey, dr. forrest, we're going mid barrel by 2050. that means there's no change. we've got to go real zero, 2040. >> that sounds very noble. there are so many hard debate centers -- you're one of them -- where the technology isn't quite there in terms of bringing the emissions down. what's the problem with offsets? >> ah, offsets just don't work. carbon sequestration is really an old lie waiting for the next idiot politician to come along and delay it. it doesn't work. it only works for 60 years. where it's been tried in

australia and around the world, it works one in 20 time. that's an absolute failure. you wouldn't put a planet on something that's an absolute failure. carbon offsets, well, you really want to know? it's a cozy relationship between the fossil fuel sector and the big banking and finance sector. there's lots of trade there. there's lots of commissions to be made. there's lots of money changing hands. it hasn't done anything for global warming, not one bit. it's done nothing but fill pockets. congratulations on that. that's not helping the planet. to help the planet, we need to go real 2040. you say wisely, carolin, what about the sector. if we fully abate our company, a big heavy industrial country, if we fully abate that, if we fully

get rid of that entirely with green electricity and green tech, which is already here now, by 2030, then the rest of the world can do it by 2040. >> i will say that obviously your company has been pushing for that move into a green hydrogen company, but you've had to adjust your targets in that respect a little bit given the feasibility of reaching those targets. obviously your business, andrew, still very much relying on oiro ore. prices have skyrocketed up more than 20%. did you pop champagne bottles when you heard of that stimulus? >> now, look. i didn't bother when it went down. i didn't bother when it went up. we run the most efficient mining company in the world, the most operating costs. we started from scratch, driven new technology. we have broken that sector into

very competitive major critical minimal supply. iron ore is key to the future of the planet. however, green iron ore and green iron mettle will help us drive to zero in 2040. mining is hard to abate. there are solutions to those very hard to abate industries. we need the leadership to take it. i say to all of those leaders, say to me, say to the world, say to the kids, you know, we can't -- we can't do it, my company can't do it, i can't do it. you don't understand, we can't actually do it. what they're really saying is you can't do it. and i'm saying to each of those chief executives and those political leaders that use the words i can't, say, okay, what about you get off the stage and lay it on a younger or wiser leader who can, someone with a

little bit of technology. we know it's there. i'm reaching out to the businesspeople and politicians across our planet to say it's time now to walk away from this proven fantasy, net zero 2050, and adopt real zero 2040. we can, we must, let's do it. >> andrew, i've got to take you back to iron ore prices. they're back above the crucial $1 mark that makes it profitable. will they stay above that level? >> look. i would never bet against the chinese economy. everyone has those -- they're relying on the united states. without the united states, they have tariffs coming on from -- greater tariff threats from the presidential candidates. so i just saying look, why bother betting against china. they're going to emerge. it's our job to make sure they

keep to, emerging peacefully. they say we're going to emerge peacefully. great. that would be a fabulous achievement. betting against china is betting against the most technologically advancing major population in the world. they have one responsibility, and that's to lift their people, 1.4 billion people, out of poverty into the middle class. they're on their way to doing it. if i was a north american, i would say, why pick a fight. you can have more than one best friend. yes, i think it would stabilize. i wouldn't try to predict a price. any prediction i make, at least i know that might happen. >> could i get your prediction on further m & a action in your space? obviously we're looking for a big deal in the space earlier this year.

it didn't materialize. that was a huge bet on copper. should there be more consolidation in your space? >> i think there should be more organic growth. the world is not short of copper. it's not short of lithium. there's nothing rare about rare earth. we're not short of any of that. what i would say is instead of taking a shortcut with your checkbook and buying out another company, why don't you increase supply. there's organic growth possibilities available to mining companies all over the world. we have a massive portfolio at fortescue from latin america to africa, all over the world. we've got a huge portfolio of sources. i cited my colleagues. instead of trying to buy someone else, build your own projects. let's get the supply cranked up, get things going with the materials and critical materials

we can supply. >> are you in the market for m & a? >> am i? look, i would never say never. we have the last year balance sheet. we have more cash than debt on our books. we're a very strong company, very strong cash flows, $80, $120. it's a very strong cash flow company. i would rather -- yes, there's exciting targets around it, carolin. never say never. i would rather say to you the prospect of rolling out a technology, which is saying trucks bigger than this massive room or ships bigger than this building going fully green. we can charge our trucks in less than 30 minutes. racing cars are the fastest. you can see the results of the formula e grand prixes around the world.

that i use our drive trains and battery system. we can charge those cars in 22 seconds. i would roll that technology out to the world. that really spsychs me. that's going to drive the economic growth the planet need, that's going to drive the investment the planet needs, and it will drive investments across latin america, north america, across europe. that technology is what we need. >> andrew, thank you for taking all of my questions. appreciate it. all right, a quick check of the european equity markets on this wednesday morning. almost two hours into the european trading session and we're seeing a little bit of green. no move with the ftse 100 benefitting from some of the oil movements by half of 1%. the dac is up by half a percent a . obviously we're seeing some of the gas and oil movers.

also travel and leisure down given the political risk. yesterday we had the all-important inflation numbers. that very much paves the way for the ecb to be cutting rates by 25 basis points for the month of october. but i want to show you the french oil yield, 2.878%. that's important because the french prime minister announced a slew of new measures intended to remedy the public's finances including temporary cuts on companies and wider companies. charlotte, explain that. >> it's an important moment. we exclusively know what they're going to announce especially after they whop an election or it's a leader with your positions. we kind of know where they sit. with this, we really don't know. macron was seen as a consensual

figure. what i would be able to navigate is very fragmented. he spoke for an hour and a half and very quickly went to talking about the public finances, how this was one of his priorities. he said the debt of 3.23 trillion euro threat was a damocles on the country. he said he was headed to attack it head on. >> translator: we want to bring the deficit in 2025. our objective is to put our country back on a good trajectory. how? let's not kid outstanding and i won't either. our public spending is at 57% of gdp versus 49% in the rest of europe. it's increased by 300 billion euros since 2019. this represents 5,000 euros on average of extra public spending

every year for every citizen. deputies, the first remedies to the debt is to reduce spending. therefore, in 2025, two-thirds of this recovery will come from spending cuts. >> so you hear there from mr. barnier. he wants to bring it back to 5%. he wants to move back the target of 3% level in 2029 instead of 2027 previously. as you heard there, reduction in spending, two-thirds of the say abouting will be reduction in public spending. that means one third will be from tax increases. we don't have the details of exactly what that would be. as usual, the devil is in the details. as he said, one of the new corporate taxes there on the larger companies, more than 1 billion in turnover and an extra tax on wealthier citizens as well. but here again we have to wait for the actual budget to be presented at some point next week. the two new names, two kind of

newbies when it comes to french politics and government there. we'll have to see what they put on table. she said she doesn't want to support a vote of no confidence just yet where it would be tabled by the left, but they want a new law on immigration, and she says she has her eyes very close on this government. >> overall the big request question in the market is french debt. is it core? is it semi-core? is it peripheral? again, the devil is in the detail. so far it's not trading core. it's trading closer to the periphery. thank you so much for that, charlotte. while france rushes to fix its finances, ireland is in the nushlt position of running a luxury problem with ministers pressed on how to spend its $14 billion amount. still to come on the show, nike shares stumblewise the sportswear giant warns of its

guidance ahead of the holiday season. that's coming up next. robinhood gold allows others to earn their very liberal rates on idle cash. they would descend into chaos.

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the u.s. the sportswear giant scrapped its guidance for the year and postponed its ambassador day as it waits for the new ceo sam elliott to take the reins in just two weeks. arabile has been following the story. >> unfortunately they've been unable to do that, and that's really been a key factor in all of this right now. this is why as they try to pull away from some of the other companies that they've allowed to have access to their brand, now unfortunately those people are saying we still want to keep your brand and be able to sell it, and nike perhaps struggling with their own website with regards to traffic. so elliott stepping in in around

two weeks' time. looking to recorrect then with not just stock but also investors and the like as well in order to reposition the business as well for the upcoming years also. so just a look at these numbers then. revenue ultimately slumping. that's been the big driver. right now, seeing that decline, the question mark becomes whether, of course, they'll still be able to see the same amount of growth. what does that mean as a whole? you've seen it. again, footwear sales, that's been a marquee revenue avenue for nike, dropping off 11% in total, 14% in north america. even in the middle east as well as africa then also continuing to have a drawdown then with regard to footwear sales of 14%.

there is a bright spot, however, and that is china. surprisingly that came out better than the market had anticipated. is that a clear sign of a long-term runoff then that perhaps could be turning for nike at this stage and could be maybe seeing more gains. they offered an outlook for its september to november quarter, dropping its initiative of 8% to 10% that analysts had looked for. it also expected gross margins to fall by 150 basis points in that period, carolin. >> you know, i do wonder. adidas shares obviously under pressure on the back of this. is this nike story or is this a global sportswear story? >> it feels like a nike story. really awhat you've gotten is te competition that's come through from other sportswear brands, whether it be nike, under armour

as well playing in this space as well, the likes of others, et cetera. the growth and development of others, yes, has been important. but nike itself is struggling itself with that innovation. >> we'll see what shares do in today's trading session, down quite heavily after hours. the energy stocks premarket, we saw a big spike in those shares yesterday. exxonmobil seeing some of those gains. chevron and occidental also higher. a quick check of u.s. futures on this wednesday morning. we're still a few hours away from trade. we're seeing a modest decline of the s&p. the dow jones set to fall by 0.3. that's it for today's show. i'm carolin roth. "worldwide exchange" is up next. we'll see you tomorrow, bye-bye.

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global headquarters. you're watching "worldwide exchange." we saw tech lead wall street lower. mid east risk rising. the market fixed on the region after iran launches nearly 200 ballistic missiles at israel in a major escalation. a strike from new jersey to texas. they