that's all for this edition of "dateline." i'm craig melvin. thank you for watching. [theme music] ♪ welcome to "street signs." i'm carolin roth and these are your headquarters. headlines a bullish note on the outlook. >> with the main optimism for the year also for 2025, we actually are

checking double digit growth and operating profit we see we are more evident than ever. and announces the bank's second major shakeup splitting the bank into four units and the first female cfo european equity markets with investors counting down to the u.s. election now just two weeks away in the european auto space, monthly new car sales hit reverse as hybrid sales overtake petrol cars for the first time. meanwhile, hyundai india gets a cautious response from investors.

good morning, everyone thank you so much for tuning in on this tuesday morning. we've got a packed show for you. let's get back to one of our top stories. s.a.p. in germany lifted the full-year outlook for cloud and software revenue for operating profit and software as well. the 25% increase of cloud sales in the third quarter and it remains focused on key areas such as business a.i take a look at shares up by 5.5% speaking to cnbc this morning, the ceo chris kline pushed back against discussions the company was cautious on the outlook and gave his views on the wider economic environment in germany. >> we are, of course, performing in a very tough macroeconomics environment. on the other side, customers see i.t. s.a.p. as a different shade of challenges. we remain optimistic for the year we raised our outlook for the

year and also for 2025, we have double digit growth in total revenue and operating profit >> i think it is a very important point, christian, with your customers the adoption of new technology which is one of the super trends that, gosh, you or i or karen spoken about over the years. it allows companies to count costs as well. do you see the company as counter cyclical with the challenges you bring >> absolutely, steve they are hit by higher energy prices and looking for more productivity they have a lot of pressure on their bottom line. absolutely, they are asking what business a.i. and s.a.p. can do with the supply chain and on the shop floor this is what we do customers see us as a solution and really become more

productive or they are reshuffling their portfolio. you cannot win the same business with the legacy the last 20 years. so, we are absolutely in the sweet spot of the customer transf transformation >> christian, while i've got you to talk about the structural issues, europe and germany need to spend more money. why do you think there is an unwillingness insurtitutionallyt spend more money at the government level to galvanize the german economy when you see the benefits it can bring? >> steve, i'm not sure there are a lot of funds out there from the european union from germany to stimulate the economy. i guess what is very, very important is the energy prices we drive the energy transformation across europe that we are one european union when it comes to energy and also digital. i guess this is what companies need to scale their bausiness an

less regulation. this is even more important than increasing funds for the economy. all right. let's get back to the european equity markets we are one hour into the trading session. this is the picture. quite a lot of red on the screens. we're down 0.% modest losses for the stoxx 600. remember, this follows losses on the stoxx 600 down 1.7%. the cues from asia were mixed. not a lot of momentum in this trade. what we are watching, of course, is the earning season. we will get to those names in a second i want to show you the european markets one by one and how they're faring the dax is out performing. the ftse 100 is down by 0.4% and the cac in paris is down 0.2%. this is a reflection of the earnings here. technology, no surprise, up

1.9% autos also trending higher we'll be talking oughautos with autos guest in 20minutes time. when it comes to losers in the sector picture, this is the image. utilities down 1.3% and telcos down as well along with the strategy updates and this is an interesting one hsbc named a new cfo announced the jooutline of restructuring plan it will streamline into four business, hong kong and international wealth and premier banking. pam kaur will take over as finance chief in january the first woman to be appointed to thepost let's take a look at shares. not a lot of action here arabile joins me around the desk why is it that markets are doing

the meh with the strategy update >> the rbc cap cal markets says it is moving around the different parts of the group with no change to the big picture. that is ultimately what the market is seeing here. you are seeing parts of the business that are not doing well with other parts that are giving strategic gain ultimately, so far, not pushing the needle here. the big question mark is what parts of the group is on the chopping block which might be sold off as well? which might see a few job cuts as well? those are the questions that, perhaps, overall v, have not be answered by hsbc they will stay pat on this for the time being and asking the bigger and broader questions as the restructuring will flow. let's remember the commercial bank which provides significant services to 1.2 million

customers from startups to major questions for the business can they get a little bit more out of the clients and raise the operating profits and offer new products in this time? is the question mark going to be that the cross selling doesn't happen as they would certainly like that would be a significant portion of the business that could ultimately grow. indeed, a new cfo coming to the floor with potential growth could be in store for the company or, perhaps, alignment with the growth options the company setforth the devil is in the details. >> absolutely. kbw pointing out in the note this morning to add to the list to the analyst commentary. we don't have the full numbers yet and without the benefits and

costs, it will be difficult to judge the actual outdcome >> let's remember you now combine two divisions except hong kong and uk which means you are driving to drive closer corporation and deliver your new sort of strategy which is based on this cross sell do investors buy the idea of that thus far, not yet. >> thank you so much for that, arabile. for more on how hsbc plans to restructure, head online to cnbc.com a quick check of u.s. futures this hour. we are a couple hours away from the start of the u.s. trading session. the s&p 500 down 12 points the dow jones do the nasdaq was the only major index was the only one to gain in yesterday's session nvidia accounting for a big share of that.

the dow down 8% breaking an eight-day win streak what's on top this year? a lot with the earnings season it is in full swings tesla will be the first of the mag seven to report with the numbers after the bell on wednesday. next week, we see alphabet on tuesday. microsoft and meta on wednesday. amazon and apple on thursday nvidia will round out the big tech results due to release on november 20th. let's get more perspective and outlook for the u.s. markets are j.j. kinahan here in london. >> absolutely. >> let's talk about the tesla. the robotaxi was a downer, big disapp disappointment what do your clients want to see from the earnings and the margin side >> this is the first of the mag

seven last week, always a lot of excitement from tesla. retail trading view. it is the top three to five names traded every single day. people want to see something positive out of them especially with the robotaxi disappointment if you don't trade options, one of the things options do well is they set an expectation of movement with that, what we're seeing is an expectation of a 6% move in tesla based on their earnings. again, you know, when you look at it, it's like are you ready for that move if you're going to trade the stock overall? i think always a lot of excitement when tesla reports because of the interest in retail elon musk, himself, a lot of people buy tesla as a bet on elon musk, honestly. that is a big part of why this trades also. we will see what comes of the earnings because of that.

>> absolutely. if you bought tesla in april, you made a whopping gain of 7% there is a lot for retail investors. another client favorite is ge. why? >> what an amazing story the last couple years. you think what's happened with the breakup. this stock, legacy was always a great tolholding of clients this has come out of it looking fantastic and continues to grow and continues to go to the upside many people have this -- tesla is one on the retail side to be more in and out, if you will in ge, this is one people hold for a longer term. it's been a stalwart for years not a lot in the expected move like tesla, but one people are watching closely.

>> some of the most bearish names. you brought us starbucks and walmart. let's cover starbucks. new ceo. a lot of excitement around that. what will that do to the stock >> i think what's been really interesting about starbucks, as you mentioned with the new ceo he comes in and stock rallies. rockets up so much excitement he can do a lot of great things in the food service industry however, the sthock has been in holding period i think what the street wants to hear as they come up to earnings what are they going to do? he's talked about the price and narrowing the menu which is something he had in the previous realm before and see if it can be effective going forward this becomes interesting after the initial excitement what have you done for me lately is the theme on wall street. >> we had the graphic up on

screen here. no fomo. you have to explain this the first half of the year and the trade is driven by the a.i. fomo trade you say that is no longer in the market is that a good thing in the terms of the quality of the advances >> one of the things i like to look at where can the market go next look at it right now, you have been reporting on the markets now for a while, carolin you go to cocktail parties and people are talking about what they have. we are right near all-time high and it's i'm really nervous. i don't know if i should buy here, et cetera. there is no fomo in the market here it is the rally no one loves the path of least resistance continues to be higher because people are under invested by and large. >> it means it comes with a fair

share of volatility and that is reflect in the vix with we have seen the incredible rally. the vix is up. >> you see how the vix works volatility is to the down side volatility is the way of measuring fear no one is going oh, my god, my portfolio has gone up so much i can't stand it however, when markets go down, 5, 10, 20%, you see it we see vix start to fall significantly. >> it hasn't >> no, we're actually trading right here -- the vix right now under 19 which is what we see historically for the vix why is that? we have a lot of conflicts and we don't know what the fed will do and styou started the show wt the u.s. election. we did a tasty trade and we

found volatility the year of elections actually tends to stay pretty flat. it's the year after the election where volatility increases as the new president comes in with their new programs >> is this the outlier that the results are close and may be contested? >> who knows how that will go on the other end is historically, we're at the average, not above average. it's next year where we will see whoever becomes new president, they have the ideas and can they get those through congress. >> j.j., thank you for the time. let's switch gears georgieva speaking ahead of the imf global forecast today, she warned higher prices are here to stay and said the world is

facing a quote unforgiving combination of slow growth and high debt. on a programming note, do not miss our coverage this week from the imf world bank live in washington, d.c. where karen will be speaking with a number of european central bank policy members and ministers including christian lindner. we start later on today with the imf chief economist pierre-olivier gourinchas. that first on cnbc conversation is up at 15:00 london time coming up on the show, vladimir putin welcomes world leaders to the brics summit. and antony blinken touches down in tel aviv to discuss the latest cease-fire push we'll have the latest. don't go away.

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russian president vladimir putin is said to welcome 20 heads of state including xi jinping and narendra modi for a three-day brics summit in the city of kazan. meantime, secretary of state antony blinken arrived to israel as the u.s. renews its push for a cease-fire following the death of hamas leader yahya sinwar blinken will meet with benjamin netanyahu before making stops in qatar. a quick check on the numbers this morning wti crude up by 0.5% this morning at $70.20. brent crude 73.p p $79 dpold pr

gold prices still holding on to $2,736 let's get more sperspective with victor at kepler they are trying to figure out the key driver at the moment whether it is geopolitics or the middle east or the good old supply and demand story. what do you think it is? >> i think it is range bound there is no good answer to that question this is geopolitics. i think the geopolitical risk premium we have seen ratchet up two weeks ago has largely disappeared. is it supply and demand? i don't think there's a good story in supply and demand that we could sell as the new development which is something we have not seen chinese imports have been weak effectively, i think the market is in search of a new story that it could believe in.

i think opec plus might actually be the only good story that's remaining in the bullish camp in 2024 otherwise, it's all the same relatively/sad stories that is repeated. >> in search a good story. i like that line let's stay with geopolitics. on the market that pricing out fears that israel will be hitting iranian oil facilities can we completely price out that risk do you think? >> absolutely not. i think there are two scenarios that could help. scenario number one with retaliation happens a couple days before the u.s. presidential election. maybe to sway the u.s. presidential election to decide that would be more beneficial. maybe to create a buzz around the middle eastern story before the election takes place the second scenario is the

retaliation strike happens immediately after the u.s. presidential election when there's less attention the market would not notice because everyone would be talking trump or harris. who won? maybe the middle eastern escalation may not see the same amount of attention. there would be the preparations are in line the iranians are constantly moving their ships around and the cargo in the main export terminal and guess where the strikes would be coming from that confirms the strike is coming the only issue is when exactly. >> the timing of the retaliatory strike is unclear for the time being. i want to come to the supply and demand story which you alluded to in the previous comments. yesterday, we heard the head of the iea saying he is bullish there is a big divergence in the

market views were do you stabbnd >> i stand more with the bears the bears, we're the sentiment bears. if chinese sentiment stagnates for the next two or three years, it is not necessarily a bad thing. it's not declining, per se the problem is it is not growing. the market has got even used to this drug. you can always rely on china growing. even in the worst covid-19 years, china was growing at a beautiful pace r right now, it is no longer happening and everyone is getting disappointed in october and november, the people expect china to rebound the summer was weak. okay give us a nice autumn. e even the autumn is not giving us any hope they don't show any pick up and the margins are still squeezed it seems more of the same for a

protracted period of time. that with ll compress the market we should not forget that china is not declining, it just reached a plateau or the demand will stick at for the up coming years and that's just about it >> viktor, final question to you. i'm curious, how many more pressure will we see in oil prices, specifically wti if trump returns back to the white house because his motto is drill, baby drill. >> i think trump is bullish for oil prices some escalation beyond what we see right now could potentially be bigger. he would be more stringent with iran and in the long term, trump is the bearish candidate for oil prices because there's more supply and less regulation and less restrictions on anything. if you have more supply, ou automa

automatically, prices go lower because demand is not that strong it is opposite from the two candidates harris in the short-term is bear i bearish and trump is the opposite. >> really interesting take from you, viktor. thank you very much. coming up on the show, car registrations fall for the first wel inyo 'lbrg u the latest next. don't go away. 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.

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welcome to "street signs." i'm carolin roth and these are your headlines. s.a.p. shares soaring to the top of the stoxx 600 as third quarter cloud revenue jumps 35%. the ceo speaks out. >> we saw for 2025, we are checking double digit growth in total revenue as well as operating profit

you see we are more relevant ever than. hsbc boss announces the second major shakeup splitting the lender in four units and promoting pam kaur to be its first female cfo. and u.s. futures are pointing modestly lower with investors counting down to the u.s. election now just two weeks away in the european auto space, monthly new car sales hit reverse as hybrid sales overtake petrol fcars for the first time. and hyundai motor india gets a cautious response from investors. good morning, everyone quick check of the european market action this morning we are a little bit more than one hour into the trading session and you are seeing quite a bit of red here. down by .25% in terms of the

losses for the stoxx 600 following on from yesterday's declines of around 0.7%. it is all about earnings today let's bring you some of those. computer parts maker logitech is higher after raising full year out look the swiss american firm revenue beat forecast and extending the return to sales growth after the post-pandemic slump in demand. shares up quite a bit. now off 4.3% maersk has raised the forecast for the fourth time the shipping firm said its benefitting from strong demand and ongoing disruption in the red sea. the third quarter ebidta blowing past expectations. shares up 1.4% in frankfurt. swedish defense material company saab beating profit with

order takes rising 41% year on year the company says full-year organic saless growth will be i the 15% to 20% range we will speak to the cfo of the company at 10:15 london time shares at the top of the stoxx 600. let's talk about cars. a lot going on eu car registrations fell more than 6% on the year in september driven by double digit declines in germany sales of electric vehicles rose and petrol and plug-in hybrids saw declines the quick check of the auto ma makers for you trading to the upside. bmw up 0.3%. let's get more perspective on the european carmakers with stefano at alix partners

stefano, always great to catch up with you. how do the automakers get out of the rut they're in >> the market, as you said, has been shifting 2024 from growth of electric cars to actually a stagnant market asp expected. electric car in particular are declining, was declining 8% year to date. this is because there is a lot of uncertainty in the market and particularly in regulation and there are some rebound because of the -- not because of the experience of the car, but experience of the charging of the electric cars. so, the market has shifted into the hybrid more than into the electric now, a lot of oems have invested

a lot in electric cars and these are the ones that are kind of reviewing their strategy and putting back some of the combustion engine to shift to the mix of cars. >> a lot of the companies, as you pointed out, invested heavily in the ev and technology and that has fallen and the subsidies have subsided. the hybrids are all the rage who is best positioned when it comes to the hybrids >> well, in the past, stellantis and renault both have invested in multi-energy platforms, but the reality is the most efficient platforms for fully electric and this is what most of the players are doing certainly volkswagen has invested very heavily in ev and,

so did bmw this is 2025 standards that's the other conundrum if starting in january, if things will not be changed, which i expect they will, there will be huge penalties for emissions of 95 grams per kilometer which is a tough target to reach that target, you need to sell a lot of evs if you have a market of evs declining, it becomes impossible for the oems to reach that level and, hence, very hefty penalties. i calculated at alix partners, $15 billion fine next year and in the next five years up to 75 billion euro actually. >> stefano, these rules mandated

by the eu with the emissions reductions, they seem completely out of touch with reality as you say given the decline in ev sales. will they be watered down? will that happen for sure? >> well, this is what rationality and even common sense will say, but we are only two months away from when this penalties should be in place everybody expects it to be amended somehow. there are some oems in good shape, so even in the industry there is no 100% alignment brussels now has to decide what to do. it would be almost impossible for the european industry which is also facing a lot of other issues which is what you say in the electric cars, but the chinese cars coming as imports

and the market itself which is not particularly bouyant it is stagnant. >> it seems nonsensical or potential suicide for the automakers here. finally, i want to talk about the elephant in the room the potential tit-for tat with china and eu with the tariffs on evs. the chinese automakers warned against tariffs on chinese imported evs how big is the tit-for-tat re retaliation going to be? >> it is a tough political battle it was a controversial decision. it never really solved the problem, but it can give a bit of a breathing time to create

some, you know, competitiveness. if this is the case, that can be sustainable for not many months, i would expect, maybe a year or two. but then i think it's up to the european oem to find ways to be competitive. the problem is not in the high end where european oems are competitive. the problem is the low end below 30,000 euro just to be precise or 20,000 euro where the chinese cars are particularly competitive. they are stripped down they have started before they have access to raw materials and technologies and, therefore, this is where the battle is going to be. >> stefano, thank you for your frank assessment

global vice chairman joining us out of zurich. staying in the sector, shares of hyundai motor india falling on the debut of the stock market. the company has a 15% share in india listed a $3.3 billion ipo. india's largest ever. still coming up on the show, we talked a lot about this the election is two weeks away trump and harris are making the final sprint to election day we will have the latest from the campaign trail after this short break. don't go away.

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welcome back to the show donald trump's tax plans could exempt more than 93 million americans from at least part of their income tax according to cnbc analysis. trump proposed a sweeping overall of the tax system, including eliminating income tax on tips, benefits and overtime pay and hinting at excepemptions

for emergency workers and military trump says he wouldreplace the shortfall with revenue from tariffs, although tax experts say the sums do not add up meantime, this line coming from goldman sachs, the company says the euro could fall as much as 10% against the u.s. dollar if donald trump imposes global tariffs. saying the policies could cause a sharp rally in the dollar. quick check of the euro/dollar 108.29 obviously, it has been under quite a bit of pressure with the rate cut by the ecb. meantime, vice president kamala harris and donald trump are campaigning across battleground states to win over voters two weeks away from election day

harris joined liz cheney and trump toured the north carolina. kicking off your money and your road trip in erie where brian sullivan filed this report >> reporter: if you are wondering why we are in a warehouse in erie, erie is the most important city in the election not so with erie, pennsylvania, which is up against one of the great lakes also known as lake erie erie has the uncanny ability to predict or vote for the eventual winner of the presidential election going back to 1980, erie has not only voted with the winner one time in 1988, they voted for george bush, barack obama and trump and then biden and all eyes are on this and a couple of other what

they call swing counties in the united states. we're in this warehouse because this is a city and reamlly is area in transformation from the old manufacturing center to one that hopes to rebuild. we spoke with local woodworker armondo reyes and he spoke about the economic transformation here >> we had the mills and the typical rustbelt industries and now it had to pivot. small businesses are coming in and filling up the empty warehouses new restaurants and tech businesses anything that we can sort of innovate in a new economy. >> reporter: transformation is needed it's a trproud city it's beautiful in spots, but it is also a city that used to have a lot of manufacturing jobs that are now gone in places like this with that, the population has declined from 130,000 to just around 90,000 people

it also has an extremely high poverty rate in the city of erie, one in four residents live under the poverty line which brings us back to this warehouse. this is a former iron works which has been abandoned for decades. now the city and federal government and the state of pennsylvania are hoping to put money into it to renovate it and rebuild it as a local small business haven with artisans over here or perhaps a brewery over there or some little restaurant vendors over there. either way, a redevelopment project that, if voters in this area believe are helping them, these kinds of projects and these kinds of economic incentives several could alter the vote in a city and a county which could certainly alter the vote for the entire nation in erie, pennsylvania, united states, brian sullivan, cnbc business news.

>> great report from brian yup, still the economy, stupid. meantime, the u.s. government is finalizing rules that ban invest of the in artificial intelligence in china citing a u.s. government executive order signed by president biden in august and would require the u.s. firms to notify the specific investments in key technology. qualcomm unveiled a sm smartphone for generative a.i. coo christian spoke to the colleagues about other key areas that the company is targeting. >> when you think about automotive and compute and growth market for qualcomm those are industries that we're growing share and we see this

tailwind enabled by a.i. gen a.i. behind the wheel will transform automotive when you think about the space. when you think about it in pcs, that's our entry point enterprise transformation. you see a number of use cases for a.i. to change how they run their business >> now our next guest says venture capitalinvestment in a.i. is enormous sanjay gupta at moonfare sanjay, great to have you here on the set i talked to a vc investigor a couple of days as and he said this is an investment of a lifetime we know his story. nine of ten startups fail. will that be the same or is it different with a.i.?

>> it is hard to predict exact failure rate with the startups there will be a failure rate and it will be high. most believe in the fundamental transformative power of artificial intelligence. we, over the next fiv5 or 10 or years, will see transformative companies. we will also see transformations of business models not dissimilar to the mobile revolution swept the world in the late 2000s and early 2010s. >> you are equally excited here. let's broaden out and talk about the industry private equity, 2024 was the year when the gps returned money to investors and lps lps reupped their ammo a bit it hasn't happened to the extent everyone was hoping for. is that going to come in '25 >> it is our believe it will these are remarkably hard to

predict. i heard a manager say glibly 2025 is the new 2024. >> is it okay. >> that encapsulates there will be a lot of exits in 2025 and 2026 a lot of it, frankly, will be driven by the end-of-life phenomena. mean are ten years under duration are reaching their end-of-life. there will be exits next year and the year after that. >> what is driving that end-of-life? the lower interest rates we're in the goldilocks scenario it should be conducive to deal making >> we have seen a pick up in deal flow. we havehave seen a pick up in te m&a. that started in the tail end of summer and heading to the autumn expect that to accelerate into the winter and next year as well. >> in the meantime, we have seen very much a slowdown with the deal making on the pc side

we have seen the surge in second areas in 2023 and continued to this year and continued into 2025 with deal making and exits will pick up >> don't forget the secondary world is still small despite the m meteoric growth. just to throw some numbers at you, secondary flow should hit $140 billion that sounds like a big number and it is large to where it was five or ten years ago, but its dwa dwarfed by the market. there is trillions locked in the portfolios alone while we see a large increase in secondaries and we will continue to see a larger increase in secondaries next year and the year after that, it is still small. >> a small sliver at this point. i want to talk about the so call

democratization of private equity it's a very crowded market now because a lot of the institutionals are maxed out with the alternative exposure. what is the natural new clie clientele? the private wealth and retail community who is not maxed out yet. how are we seeing in terms of competition and how long is this trend going to continue you think? >> i think it's an actually structural change rather than cyclical change. i think we're still in the early innings of it. i think there is a paradigm shift in how you think about the asset allocation i think we will see greater allocation of private markets not only for the tail end this year, but next year. no matter what happens in the broader market, i recognize the

individual is and a lot of folks want to capture that to tie it back to something you mentioned. if we see artificial intelligence from the venture capital or surging secondary deals, individuals will want to be part of that. they're not going to want to let that alpha disappear. >> can i sask a question who is better harris or trump? >> i see positivity coming from both sides i see deal making continuing into november and into december and into the first couple quarters of next year. >> all right thank you so much. sanjay gupta at moonfare i appreciate it. quick check of the european markets on this tuesday morning. not too much activity here we're seeing the ftse 100 slightly under perform off by .50%. we got hsbc, the big

reorganization out this morning. that failed to impress investors. we need more numbers that's the tenure. s.a.p. lifted its guidance we saw pretty good cloud numbers. the current cloud backlog jumping 29% year on year that has taken that stock to the regard high. the cac 40 is up .25% of 1%. saab is doing very well as well. quick check of hyundai motors with the india debut. accelerating declines off 7.2% in india trade. we are still a couple hours away from the start of the u.s. trading session. this is the picture and it is fairly bleak at this point

the s&p 500 seeing up 0.3% similar declines for the dow jones and nasdaq nasdaq eeked out a modest gain yesterday. all eyes on the earnings with tesla out tomorrow on a programming note, do not miss coverage from the imf world bank meetings in washington, d.c. where karen will speak with a number of policy members and finance ministers, including christian lindner. tune in for the conversations throughout the week. we start with the imf chief economist p irkterre-olivier gourinchas atth is it for "street signs." "worldwide exchange" is up next. see you tomorrow same time. bye-bye. that gets you in the zone.

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it's 5:00 a.m. here at cnbc global headquarters. welcome to "worldwide exchange." this is your "five@5." futures are lower as investors brace a busy day of earnings. nvidia powers higher becoming the second stock ever to milestone. and number of fed heads on the path for the rate cuts ahead for the next