his edition of "dateline." i'm andrea canning. thanks for watching. > g . /* good morning to "street signs." i'm dan murphy. investors get a reality check as mainland market snap a ten-day rally while the hang seng whipsaws through the session as beijing braces for another economic briefing.

plus, rio links a deal with arcade yum. plus, the justice department considers a breakup of google and could look at its units as an antitrust solution after august's landmark monopoly ruling. >> and florida braces for hurricane milton as officials upgrade it to a category 5 storm and president joe biden warns that evacuation is a matter of life and death. welcome into the program. great to have your company this hour. let's focus on what we're seeing in china, the hang seng certainly getting whipsawed with the final trades now filtering

through. the benchmark index was down heavily for most of the agent's session but quickly turned positive when the chinese government announced a press conference on fiscal policy for saturday. however, the news was not enough to sustain that rebound, this as mainland equity sawed off, reversing yesterday's gains. chinese markets, of course, looking at the result. it snapped a ten-day win streak as that rally stimulated by beijing's measures blew out. the confidence is down. you can see the hong kong down, 8.65. >> china's finance ministry will hold a news conference on

saturday with an update on the economy. st stockmarkets will be shut. it's a press briefing everyone has been waiting for given yesterday's news conference which appeared to disappoint confidence because of the lackness on fiscal spending. they're hoping for a fiscal stimulus package with a priesz tag anywhere from 2 to $10 tri trillion yen. this one reportedly being to help consumption, local government debt, and relief the financial burden on households. any such quantified support measure is likely to come from the ministry of finance. it will also need to be signed off by the national people's conference at the end of the month. now, it was a volatile morning session in the chinese stocks in the mainland and in hong kong after they saw their biggest ons

on tuesday. they managed to claw back some ground after the mf bof briefin. they're now hoping to get some clarity and details. markets will have their first chance to react to the news on monday. in singapore. sam vadas, cnbc business news. so let's bring you over to europe and give you a live look at how markets have been trading. you can see here, across europe, not too much to write home about. they have been trading up. you can see better by 2% at 517 right now. here's a live look at european markets more broadly. i guess you could say investors are holding back on big bets ahead of the fed minutes and the cpi print due tomorrow. in europe, of course, the acb also expected to deliver on another 25-point basis cut next week as well.

trading has been mostly muted. better by 4.3%. the paris contact also advancing about 2.5, but the xetra dak and the ftse on the flat line there. here are the top sector gainers right now, and assessing the performance and play across europe in terms of what's leading its media, real estate, food beverage, and utilities also rising today. here are our top sector losers as well and helping to pull markets broadly lower right now are these sectors. you can see banks down by 0.65%. at the moment, the only sector in negative territory. >> let's get to some insights and analysis on the global equity market. tim is here joining us live out of london. tim, welcome in to the conversation. great to have you here today. i wanted to kick it off with your take of what we're seeing in china right now. it seems like the stimulus

headlines are driving the capital flows at the moment. so is china investable, or is there too much volatility out there right now? what are you seeing? >> there certainly has been quite a bit of volatility in the chinese equity markets. i think one of the things that is probably true is that managers around the world, investors around the world after rather disappointing returns in the past two years have come to see china as a little bit less investable. i think part of the reaction we've seen in the equity markets, part of the volatility we've seen is actually because a large number of managers, investors were actually underweight. and when the catalyst of the stimulus came, there may not have been so much short covering as underweight covering. that might explain some of the volatility we're seeing. it is the global investor base

recalibrating their expectations, and i think to some extent catching up on a market theyhad been systemically usys systemically underweight in the first part of 1994. >> there's a valuation play out there, is there not? it looks like we could see compelling valuations coming through, and on top of that, policy makers have said more stimulus is on the way, so is this a buying opportunity? >> time will tell whether it is a buying opportunity. i think the first point that you made, you know, there's a degree of volatility here. when this kind of volatility comes to a market, it does tend to stick around. there may well be a valuation opportunity. it's less cheap than it was a few weeks ago. as i say, time will tell. but one thing investors should probably be aware of is this kind of volatility when it comes, tends to stick around for

a little while. >> okay. fair point. let's shift over to the united states. one of the other interesting things we've been watching is the 10-year. i'm curious what you think the strategy is going to be moving forward? >> i think when it comes to u.s. equities, there's a different story, and there is, of course, a connection between the yield, the rate environmental, and valuation trends, particularly in growth stocks where you're looking at potentially earnings further into the future. i think the key dynamics in u.s. equity markets to be alert to at the moment are actually the increasing degree of differentiation between different components of the markets. so we measure that with a disp dispersion, how different our stocks are performing, how high or low the correlations. not only do we have a u.s. equity environment that so far this year has seen much higher

dispersion, more idiosyncratic risks, more winners and losers historically, particularly from an industry perspective and individual stocks. elections tend to bring higher industry or specter inversion. what that means for investors, potentially more opportunity to take advantage, on the other hand, more opportunity for embarrassment, but more critically, the opportunity for diversification is perhaps stronger right now than it normally is. we're not in an environmental where every part of the market is reacting in the same way to 10-year yields or the reserve. that mixture of winners and losers is exactly the point of diversification. it's risk management essentially by spreading your bets. >> right. opportunity or embarrassment. i like it, tim. when it comes to the broader outlook as well, we're counting down to fed minutes too. what are they going to tell us

about the state of play in the united states when it comes to future rate cuts, because this is also critical to the fed outlook as well. >> it certainly is. it's certainly closely watched, and the markets are treading a fine line. i think it's fair to say there's a reasonable degree of optimism baked into u.s. equity prices at least compared to historical observations. what is that optimism? it's that hopefully we'll get slightly cheaper money and the fed will indeed navigate this mythical soft landing. what will the minutes tell us? we'll know soon enough. i have a suspicion that they will leave with the notion of data dependency, and i think what's really important here is there is a -- i think a relatively thin line that the market is treading here. there's not an awful lot of room for error, but the consensus of it is relatively optimistic, and hopefully na optimism will be

given grounds to continue. >> tim, just before i let you go, you are global head of index investment strategy at s&p. let me go through some of your latest findings here. what we've seen is a big underperformance that have actively managed funds in the first half of the year. what do you say to investors considering actively managed funds in light of what your most recent survey tells us about how they've performed through the first part of the year, and what's in store for the rest of 2010 2024 and 2025 now? >> first of all, thanks for the chance to share this. yesterday my company scored on the performance of actively managed funds and equities and fixed incomes all around the world. the data takes a while to compile, so it's up to the first half of 2024. anding look, what we found in terms of total headlines, firstet of all, i mentioned

higher dispersion, more opportunity in 2024. we've seen that in equities. however, there seems to be a mix about a little bit of embarrassment. three-quarters performing around the world, four out of five underperforming around the world. there were some brightspots, and i'd like to highlight bond managers have something to boast of so far this year. there's been some very supportive trends in terms of credit, liquid bonds are doing well, and favorable in terms of yield requirement. bond management has been looking good and so far ore spots, small cap u.s. where tissut active fue done well. overall for active investing or stock picking the headwinds have been somewhat stronger this year than the tailwinds that we're sees so far.

so far 2024 is not shaping up to be that long-awaited year of the stock pickup. >> even though it's been a pretty good year for stocks. tim, we're out of time. we have to leave it there. that is tim edwards. global head of index strategy at s&p dow jones industry live for us out of london. i mentioned we have those final trades filtering through in china. the hang seng is now closed and the issuing number is 20,637. we saw the index closing down at 1.4%. what we saw is the hang teng index closing down 1.2% lower at 4,640. so we have seen chinese eck request i thees getting hit today as the stimulus measures failed to materialize. we'll continue to keep track of the markets for you. in the meantime, let's shift it over to another big story in europe and globally. rio announced an acquisition of arcade yum lithium.

the deal, which values arcadium at $6.7 billion has been unanimously approved by directors of both companies. as you expected, shares in the target, surging here up 30%, rio down by 2.2%. head of research michael widmer gave his thoughts on cnbc earlier today. just listen in. >> i think the miners have been reluctant to cut production. there was always the expectation that there would be lower prices if we could get m & a activity going, which is what you're seeing for the moment. for the big miners, it's kind of attractive to move into it this year because there's a big demand. the only issue i think you have is relative to the smaller

markets. rio making an entry. it will be an interesting add-on. >> this deal is a significant moment in the global energy transition. it basically underscores rio's commitment to becoming a leader in the supply of these critical minerals, but it also reflects broader trends we're seeing in the miner sector, not just today or in the last six months, but in the last few years. this is a sector that is on a long pivot to meeting increasing demands for sustainable energysolutions. it's also a deal that puts rio at the front of lithium production, which is, of course, ooh e essential for ev batteries. here's the kicker and perhaps the most important question for the success of this deal is going to be, number one, will there be enough synergies to lower the cost of production. and, number two, will this reduce the environmental impact of these operations? and that is absolutely critical

for investors. of course, one of the other things that's been raised here is the valuation concern. that's something the market is going to be looking at. the environmental hurdles will need to be looked at as well, all challenges to be successful on both sides even though it's been pretty well received by analysts and well received by shareholders of arcadium up as well. let's move on and bring you other stocks. continental focus expected passenger car and light truck production to drop 3% in the quarter, but chinese automakers increase their market share. the german auto parts maker says it expects profitability to improve off the back. it's all changed at gucci.

the nkering company has gone on. you can see shares on the move as a result. and informa is set to restructure its global operations after acquiring the british rival fascentiaa for 1. billion pounds. stay with us here on the program. we are back in just two minutes, and just ahead, we'll be speaking to richard teng, the ceo of binance. that story on crypto is coming up next. stay with us.

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binance kicks off blockchain

week. it brings together investors and leaders to explore blockchain and web tree technology with discussions around the crypto exchange and compliance. the buy fans founder was released from prison in the u.s. last month after serving a four-month sentence for enabling money laundering at the crypto exchange. let's kick off the conversation with the ceo of binance, richard teng. richard, thanks so much for being here. lots to discuss with you about this hour, but let's kick it off with blockchain week. why now and what the focus is for this year's event. good morning, sir. >> thanks for having me, first of all. we're very excited. it's coming out the 31st. we promise a very exciting arena. it's definitely a tradition. the theme for this year is

really momentum. we have seen strong momentum growth. but 2024 has been a landmark year. we're mainstreaming our crypto. the institutions -- phifidelityl jumping on the bajd wndwagon. this year, 54 million clients year to date, so that's a big achievement. it's an open invitation for everyone to join us at binance option week, which is going to be very exciting. it will be larger this year than last year. to help giving you a year. last year we saw more than 2,500 attendees, this year until now we've seen very strong and robust interest, so we expect more than 3,500 at least. you know, you come here to have the best network from around the

world. financials, crypto traders, founder, institutional investors, regulators, global policy makers, and innovators. we're very excited. why we chose dubai, i think dubai provides a very vibrant ee q ecosystem. we got involved to develop a smart framework to support crypto. we look forward to welcoming everybody to this very important and very interesting addition of it in october. as you say, increased institutional adoption, more mainstreaming as well. the price currently sitting at around 62,000 usd. where do you think we're at right now in the current cycle, and where do you think things are going? what activity are you seeing on

the exchange that might give us insight into how investors, how traders are currently thinking where bitcoin stands? >> absolutely. so if you think about it, you know, that's going to be volatility in the crypto space. for those of us that have been involved in it for some time now, this is part of a cause. we're very used to it. despite the volatility, if you hook at crypto asset class, bitcoin itself has returned more than 40% year to date, making it one of the best performing asset classes around the world on that front. i mentioned 2024 has been a landmark year in terms of institution and adoption. for the longest time, this sector was embraced by retail. i think in 2024 we are the largest money manager in the world. larry came up to say he has changed from a skeptic to a firm

believer of crypto. we're seeing a new dawn. coupled with more regulators coming on stream to try to regulate this space to give certainty to mainstream users. i mean i'll still bullish for the path here, and i'm thinking the numbers will serve us. this alone, we have on board 54 million users. the first 100 million users to get five-years on board, the next, two years. this alone, we saw v 4 million users. so the pace of adoption in the next five years is going to be much faster. i personally look at it. bitcoin and other prices start to move half a year. right into that half year. so i remain bullish. >> right.

okay. richard, can i also ask you? i know it's not lost on you that cz is now out of jail. you might recall i was one of the last journalists to interview him before his arrest and sentencing during a session here in abu dhabi. i want to understand, how is he doing now, and how has his conviction changed binance? >> well, first of all, we're all happy that cz is back home and back with his family and loved ones. binance and cz received a very hefty penalty for solid past mistakes. if i bring you back to 2017 -- i mentioned 2024 as a landmark year with the institution, adoption, and regulators regulating this space. but when binance started in 2017, they were regulating the

space. we have made mistakes, but we've pivoted. we've invested quite heavily in the combined space to pivot the company because we firmly believe the direction of travel is very clear. more regulators are on stream. they're providing cuts to our users, aligning on security measures, making sure there's a framework that everybody can look forward to protect their interest when trading crypto on their fund. so we invested very, very heavily in the compliance space. our compliance span last year alone was more than 230 u.s. million dollars. this year it's gone further. we've invested higher. so, again, binance today is a

very different entity. it's no longer an entity where you have seven members representing the world and leading the company forward in terms of strategy and global deployment. this year alone we have secured a few more regulatory approval including the likes of india, kazakhstan, asia and, and thailand. we've made the most regula toye change in a crypto space. >> all right, rich arnold. unfortunately we've run out of time. for a look into what binance is doing since cz. do stay on the program. we have plenty more ahead for you including an interview with a top fischel on the state of play in the middle east. on the other side we'll speak to

rami mortada, lebanon's ambassador to the uk. don't miss that interview, a first on cnbc conversation. robinhood gold allows others to earn their very liberal rates on idle cash. they would descend into chaos.

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signs" on cnbc. i'm dan murphy. let's recap today's top stories. first up, chinese investors are getting a reality check as they sen sallily snap a ten-day rally as beijing announces another economic briefing for saturday. plus, rio tinto announces a takeover of arcadia lithium in a deal that will make the mining giant one of the world's largest lithium producers. the u.s. doj consideris a breakup. and florida bracing for hurricane milton as officials upgrade it to a category 5 storm and president joe biden warns that evacuation is a matter of

life and death. the french prime minister michelle bonior has survived a no-confidence vote brought by the leftist coalition on tuesday after falling short of achieving the majority vote needed. let's get more on this with our charlotte reed joining us live from london. charlotte, bonior not going anywhere, at least for now. >> not for now. there's been a no vote of confidence, but that's the first one michel barnier was facing. the far right decided not to support it. the group has 125 mps, didn't support it it. so that means the barnier government survives for now, but it's expected they will have to

face many more votes of no confidence. they've got some big challenges ahead, particularly the budget they're presenting tomorrow evening. it will be debated in parliament the first week around october 21st. of about, he mentioned last week in his general policy speech in front of parliament how the public finances are a sort of dam damocles. he wants to bring it back to 5% and reach a 3% of deficit by 2029 instead of '27 previously. so they will announce some cuts. they're looking for savings, around 60 billion euros of savings next year. two-thirds of those come from actual spending cuts and one from new taxers, and they expect to i announce a new tax on the larger companies who want to have 1 billion euros turn joeshs that will affect 3 million

companies in the country, a corporate tax hike to reach 33% there. so some are concerned by what this would do for the competition. but we'll have to wait and see what other measures they could announce. it could include shares on buybacks. this week there would be a big debate over the next few weeks until christmas. the government can decide to push this budget through without a vote, using a special mechanism. if they do that, that will trigger another vote of no confidence. other key issues and one key one would be immigration. again, the far right didn't support this no vote of confidence, but they want some conditions to be met, particularly on immigration that will be presented early next year. it's a preview now, but they have many challenges ahead yesterday yet. >> indeed. french politics rolls on as you

well know it. speaking of politics, president joe biden deferring his upcoming trips to germany and angola in order to monitor preparations for hurricane milton and response efforts in the wake of hurricane helene. biden says he still plans to make the trips before the end of his term. meanwhile, israel has not briefed the u.s. on specific details of a military response to iran's missile attack last week. two fishls told nbc news, they do not believe israel has made a final decision on tany response. they were supposed to meet with lloyd austin, but it was postponed. i spoke to the ceo on the state of u.s./israel relations and asked what would they sep? >> obviously united states is a staunch partner of israel. it's quite surprising that

netanyahu seemes to be emboldend to make decisions without seeking permission from the u.s. government. but this is his opportunity. i think he's riding on a high given some of the successes he's had in his previous campaigns and i don't think he wants to stop. this is his opportunity to go after the head of the action sigs of resistance of iran. they really want to make sure they get this right and also at the same time, want to make sure they're not impacting the middle east region as a whole. >> israel continued strikes on the lebanese capital of beirut overnight while hezbollah says it has targeted soldiers in northern israel. two successors to hezbollah's former leader haason nasrallah were killed in air strikes in beirut while us real expanded

its vision. we're live with rami mortada joining me live out of london. ambassador, thank you so much for your time today. i wanted to skbin we getting your reaction to some images, no doubt, you have seen, these pictures of israeli soldiers raising the israeli flag in lebanon. how does that make you feel? >> well, it's a revolting scene. israel continues its unfetterred aggression against lebanon with unrestricted violence, sparing no civilian lives, sparing no medical facilities, no hospitals, no support teams, and something cynical about this war is that usually war continues as long as the postwar arrangements have not been negotiated, whereas, this time we have a u.n. framework, a u.n. resolution that guarantees that all concerns can be addressed,

and yet israel continues this war, which makes us question the real war aims. had it been about as they claim about the civilians in the north, this ensuing framework addresses this concern as long as this should be mutual because we also have concerns in lebanon. rise el has been occupying part of our territory. us real has been operating our sovereignty by air, land, sea for years now. so as i said, all these concerns should be put on the table and addressed in a serious and efficient way. it's not just us. it's the whole world that is saying so. 15 ormore nations including the uae, saudi arabia, egypt, and others, the u.s. and the uk have called for an immediate 21-day cease-fire and negotiate the

details of this arrangement. yet you've got israel, the war-mongering government, insisting on continuing the totally destabilizing path of war. >> ambassador, the reason i asked you the question is because overnight we also saw the israeli prime minister, benjamin netanyahu, using this video address to say israel has a right to win and will win. what do you believe israel's end goal in lebanon actually is? >> they've said they're trying to force a change in the strategic paradigm, and not only in lebanon. in the whole region. this is totally the illusion. it cou backfire. it could bounce back at any moment. i think this is not the right way to proceed for the sake of regional security and stability. the only way to address concerns is through diplomatic ways, and the diplomatic framework exists,

as i said, u it's security council resolution 1701, that is endorsed by the security council, of course, but by the whole international community. it's not just lebanon. it's defined by the whole international community. >> so, ambassador, you say we need a diplomatic solution here. what is lebanon's diplomatic strategy to get a cease five between israel and hezbollah, given the fact there's a caretaker government in place and given the eradication of the leadership of hezbollah, which, of course, has a significant influence over lebanese politics? it's not clear how the lebanese government is going to move forward and respond here. can you shed any light on that? >> the lebanese government has been clear early on since october of last year. we've said we have this u.n.

framework, and we would be happy to sit at the table with the facilitators and mediators and discuss it in a mutual way and metry cal way because we also have our concerns. since us real chose a different trajectory, we're reaching to all of our friends throughout the world to call for an immediate cease-fire in lebanon and engage in this diplomatic process. >> so just on that, what can the lebanese fast do to curb hezbollah's influence on your economy and your politics? what's the strategy here moving forward, and is that a strategy? >> well, of course, there's a strategy. the strategy is that down the line, we would need to sit in an inclusive lebanese complex and address this unconventional situation. but in order to do that, you

would need also to address the grievances that are being presented. israel has been for decades doing its utmost to make our argument harder and harder and addressing these grievances. we need a serene moment in order to sit at the table and address it atta way that safeguards also the defense of lebanon. we don't want lebanon to become more vulnerable to israeli aggression. so as long as israel is taking this aggressive posture, it would make this exercise more diff difficult. we need to address these grievances because they remain sympt symptomatic. there's an early denial of statehood for the palestinians and the destalkizing role in the region.

and it's not just me saying that. listen to the voices of moderation in the region. listen to the uae. listen to saudi arabia, to egypt, to jordan, and others. they're all saying that unless and until there is peace, real peace, there san end to occupation, there is no way that security could prevail and could be guaranteed for all. security is always based on mutual security. the israelis have been very clever in trying to attract attention or distract attention toward challenges. while they're challenges and remain collateral compared to the core of the problem of the region, which is occupation. and we have an israeli government currently that is unwilling/incapable of

delivering a pieceeace -- a plar peace, so they just export their stability through successive wars and continuous shifting of their goalposts as a way to distract attention from the fact that they are unable and unwilling to project any peace plan. that's the situation we are facing today, and it's becoming totally disruptive and destabilizing to the whole region. all the stakeholders in the region are saying loudly, this behavior should stop and peace should be seeked, whether in lebanon where we have a security council framework to address all concerns or in the region at large. we've seen the onslaught in gaza. we've seen the catastrophe unfolding in gaza, which is continuing. we don't want lebanon to be the

gaza 2.0, and we've said early on, we dodn't want war, we don' want our country to be dragged into war. that's why we said we would be ready to look at this diplomatic solut solution, and all the ingredients exist. we have a u.n. peace-keeping force, u.n. security council resolution, and we would be ready as a lebanese government to play our part in that. >> right, right, yes. ambassador, i'm sorry. we're out of time. we have to leave it there. i appreciate the conversation. and, please, come back soon so we can continue it another time. that's rami mortada, ambassador to lebanon. stay with us on the program. on the other side, investors looking ahead to minutes from the fed as policy makers urge caution on the right path. we're going to bring you more details on the other side. stay with us. we're back in two. what is cirkul? cirkul is

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waking up in the united states, hurricane milton is expected to make landfall. it was upgraded to a category 5 and has required evacuations. governor ron desantis says time is running out now to leave. meanwhile the u.s. doj is considering seeking the divestment of some parts of google's business such as chrome and android, which says it allows the company to hold an illegal monopoly on search. they say the requests go beyond the specific legal issues in the case. fed vice chair philip jefferson says the fed's 50-point rate cut was time lu and consistent. he said the fed's success in

tackling inflation has enabled it to address its attention with the labor market and employment roughly balanced. let's get a check on the markets. we're joined live with doug. welcome into the program. thanks for being here. welcome to the final quarter as well. i think it's the first opportunity we've had to speak with you to get the yooutlook f the rest of the year. >> thank you for having me. we just published our outlook for the current quarter, the final quarter. lots of things keeping us busy here. we think that probably on the positive side earnings should be supporting the stockmarket, but, of course, we also have quite a bunch of headwinds to deal with. so many politics, of course, but also the macro situation is quite uncertain at this point of

the cycle. >> doug, just when it comes to the outlook for the u.s., you mentioned in a previous interview this recent 50-basis-point-cut from the fed you argued was unnecessary. do you still hold that view given the recent economic data? this is important as we come into the fed minutes as well. >> sure. it doesn't feel necessary at the moment, and we like to call it an insurance cut if you want. so the 50 basis points, of course, were done in a situation where the labor market actually looked a little worse than we see it now because of the latest payrolls, right? it doesn't look like an imminent big economic problem, and the reason why the fed embarked on the 50-basis-point-cut is probably due to the fact that

inflation is still under control and looks like the most recent dynamics are even better than expected. all in all, they delivered it, and, of course, the financial markets are celebrating it. >> so how do you want to be invested right now? you've spoken about the market cap barbell. can you exexpand on that for me? >> sure. normally you talk about barbell when it comes to sectors. have one in place called banking on techs. it's still up and running. but just heading into summer, we thought it also makes sense to broaden our exposure when it comes to equities. that was leading to the market cap bobble where we actually decided to stay invested in mega caps, mainly in the u.s. really, and we actually wanted to add also other parts of the market

where you could then look at, for instance small caps. and thiswent quite well, as you know, especially in july and then, of course, we had some more difficult times, but i think this mixing of the two b parts -- these two parts of the stockmarket can add to the stability of the portfolio. in this quarter we keep recommending to do that, to really get diversified exposure, to stick with the litmus of the past but also find an eck question lib yum of stock exposure by adding other parts, namely small caps. >> okay. so much focus as well on what's happening within the yield market right now, the 10-year holding about 4%. what impact do you think that's going to have on equities broadly and the fed moving forward? >> yeah. we actually think the stockmarket can cope with it. so it's mainly about, you know,

when you look at years and what it means for the stockmarket, it's really about the speed of the adjustment and about the size of the moves. so we had this big problem in 2022. so this time around it feels very different, because the most recent ones are more due to slightly better broad index and no so much an inflation problem that had to be dealt with like a couple of years ago. in this situation, as long as high yields are driven by better growth prospects, the stockmarket can probably deal with it. the fed itself would probably also be happy to see longer-term yields going up a little bit because if you look at financial market conditions, we all know the fed is looking at that because if the financial conditions are too supportive, then you have less of a

restrictive effect of the policies. all in all, i think medium term, they're still in a fight against inflations. so there are slightly higher yields probably warranted. >> fascinating. we'll leave it there. thanks for joining us. doug stefan, chief investment strategist at deutsche bank. before we go, here's a live look at u.s. equity futures. you can see here major markets are all called lower. i'm dan murphy in abu dhabi. stay with us. "worldwide exchange" is up next. 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

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it is 5:00 a.m. here at cnbc world headquarters. welcome to "worldwide exchange." here is your "five@5." big tech busting. alphabet considering a possible breakup of one of the biggest companies. junk watch, boeing puts a new price tag on the union's strike that's crippling them. rio tinto reaches a deal to buy arcadium lithium, ending weeks of speculation. plus, out with the old as bally's makes room for a