that's all for this edition of "dateline." i'm craig melvin. thank you for watching. [theme music] hello. welcome to "street signs." i'm carolyn roth here is your headlines deutsche bank raises its -- returns to profit. the cfo told cnbc the bank could benefit from circumstantial

finding. >> there is always some advantage that takes place when people are be disrupted by strategic activity and we can be focused on executing our own strategy. >> third quarter sales grow 9% and the farma giant backs its giant and tell cnbc weight loss drugs will continue to be a focus area for the company. >> obesity is a big topic and why? it goes toward prevention. addressing obesity is addressing the root cause of a number of diseases. >> world's largest beauty companies misses the forecast and facing a slow down in the chinese demand. germany weighs on the outlook for err bit. there are reasons to be optimistic. >> the economic backdrop has been improving

the risk to the downside have been lowered as the likelihood of global recession has receded. ♪ hello. good morning to everyone thank you so much for tuning in. i hoe you are ready for a busy show earnings are front and center, of course, in europe this morning. we will bring you all of the details throughout the show. i just want to show you a couple of key highlights. roche has raised its difficulty better than expected sales growth of 9% volvo car is up. reported a rise in third quarter operating profit the shares down by 2.3%. deutsche bank, of course, one of the big stories this morning, posting a 2.3 billion euros and up 31% year over year.

they are on track to meet its 31 billion revenue guidance for the full year. shares are off more than 3%. the manrket not liking the high credit provisions in this early announcement earlier today i spoke to the president of deutsche bank and asked him about litigation as the court is facing a court hearing today. >> we are looking to turn the page really this year on all of the legacy items that we have had over time, because we don't want to be surprising investors with the type of provision that we had to build in the second quarter. to your point, we were pleased to have been able to finalize settlements with 60% of the claimants by value in the third quarter and, yes, we have a court case today sort of the court ruling that was advertised orally back in april is now expected today. very hard to speculate where the

court will go with the ruling given the complexity of the matters and the history we have had really over 14 years now with this. we think our arguments are strong we, of course, by providing for 100% of the potential outflows, there is no further risk to our shareholders but we certainly would like to see some favorable comments from the court that might enable us to continue down the path of settlements as you suggest. >> of course, the deutsche bank cfo talked to me about the learned's successful quarter. >> we are pleased with the performance across the businesses the outstanding is investment bank and asset management up 11% year on year in the corporate bank and private bank, their performances is doing what we expected this year which is dealing with sort of back end of the cycle of interest rates and offsetting the interest rate pressure now

with growth and fee and commission income, so we think across those four businesses and we are encouraged with client engagement and the momentum that we have. >> when it comes to the third quarter, you saw strong numbers when it came to the fixed income rvens revenues which makes up a huge part of the profit talk to us about the momentum that you were able to carry over into the current quarter. >> well, look. for us it's great to be able to focus on the thick complex the momentum was there across really the entire product set, so we think we have gained market share obviously the numbers are a little bit trailing but our credit complex was very strong as we have made investments around the world and in flow credit emerging markets was strong around all regions in the macro area, effects did well and rates was down year on year but in an environment that was relatively mixed

again, i think across all four of those product areas we have been gaining market share based on the consistent investment and focus -- leadership that we have had in our complex. >> let's get back to our other top story. the imf is warning economic uncertainty remains a major point of concern as the focus shifts from central bank's monetary policy to government fiscal tightening. the outcome poise to significant revisions in trade and spending by new and incoming governments, as well as heightened geo political tensions and uncertainty around the appropriate monetary policy stance and particularly where stubborn inflation is paired with signs of economic slowdown. karen spoke to a lot of people over the past couple of 24 hours or so, last hour spoke also to the director of the monetary and capital markets department at the imf and asked what has changed in the outlook for financial stability. >> first is that the economic backdrop has been improving.

so the risk to the downside have been lowered as the likelihood of global recession has resided. so that has fueled optimism in financial markets. earnings surprised to the upside and so we have seen the continued easing of financial conditions, equity markets are up and credit spreads are lower and the part of interest rates is generally down compared to six months ago. >> i was struck by a comment in your report. volatily in financial markets has remained low on net. it didn't feel like that when i was live on in august and september as we had market events but now on the cusp of an election, it feels more fear of missing out on markets and more confidence even what could be a big event. how do you read on the sentiment what sort of volatility could lie ahead? >> when we are looking at equity market volatility, that is at fair low levels but also right

to point august and net results there was a sudden spike in volatility, a sharp sell-off in risk assets including in equity markets and in protection depends downside risk, so in option markets for equities as well but that was very short-lived so really it was like a sudden bout of risk of urgency but it resided very urgent. it could lead to a potential conflict between the low volatility in financial markets and the relatively high policy uncertainty and, you know, of course, we have seen elections in many countries this year and it continues to be a backdrop of uncertainty as to how economic policies are going to be evolve globally. >> there are still risks everywhere in the report you highlight -- debt and nonbank leverage and preparing banks for future marks and what is the most pressing issue? >> so we do think on the financial regulation side, we have made great advances in the

past decade but more needs to be done to really finalize the full implementation of these three standouts in the bank system around the world in the financial sector, there are also emerging changes as to how the financial sector works and so the surveillance and the data in those sectors is very first order. certain some regulatory steps are discussed at the international level so thank you this is really the baseline for financial stability. >> i want to take you back to the equity markets european equity markets have been trading for a little bit more than an hour. this is the picture. we are really struggling for a direction this morning we saw a slight pop at the open but very much investors trying to dime all of the corporate earnings that have come out of these korpts this morning as we discussed at the top of the show and we will have plenty of more insight on these earnings as we work through the show. this is the picture.

stoxx is flat as a pancake right now. movement on the segment gainers. before that, the ftse 100, there you go just gone there. auto up 1% and utilities higher to the tune of 0.91% and travel and leisure is up. the losers, this is the relative underpmplers basic resources down by two-thirds of 1% and chemicals losing a bit of ground these two have both expressed concern around the possibility of inflation falling below the central bank's market. karen spoke to the bank of finland governor and asked if

they are to expect cuts at continuing coming meetings >> i don't usually comment on market pricing i let the market courses do their job. my job is to prepare the systems on my behalf and try to influence -- of the e.cb in my view, meeting by meeting means that we can take the systems -- actually, we take the systems on policy rates at every meeting of the governing council, whether we keep them at the previous level or reduce or increase them is always depending on the incoming data as i said, now the direction is clear. we are in a red cutting circle as inflation is -- but the speed and scale indeed will depend on the incoming data and analysis we are doing. >> let's get more unless on european markets with the head

of european equity strategy. thank you so much for your time. before we talk about the earnings season and your verdict on that, i want to take you back to some of the comments we just heard from karen's interview there. there is concern about disinflation and there is a clear expectation in the markets that the ecb will need to reinflate and reinvigorate the european economy can a couple of rate cuts do that >> good morning. ecbs compared to the fed which is -- what we have seen is strong drop in inflation of course, when we look at what pricing the market we can see that already a lot of red are expected i was looking at the different -- for two years and where it is and what is expected by -- in direct market and we

have never seen such a thing it shows that -- market seeing a lot of red from the ecb. if we know what is aenticipated i don't know 1% it means that it going to be very, very nasty news because deflation fears will be back and probably growth will be much lower and what is expecting by the markets right now. >> obviously, that is a tough balancing act for the ecb any policymaker out there. i want to take you back to earnings they are coming in thick and fast, obviously. what is your verdict on what we have seen so far out of europe i want to sort of compare and contrast that to the u.s. where earnings revision have come down so much, the bar is so low and all of these companies have been, you know, very much able to beat these low expectations.

>> look. it's -- so far in europe, pretty a mixed bag on the profit. we haven't seen all of the companies, sectors needs to publish yet but clearly what i noticed is that on the top line, on the revenues, that we have seen a lot of disappointment which is not really a surprise when you think about what is supply, right? it's a mix of volume and price we just -- about deflation and maybe lower than the target of the ecb? it means surprise really going faster than what expecting and that means that companies are not able to increase prices as they have done in the past, so that is the reason we are seeing a lot of disappointment on the review side. second thing it i is important on the guidance on the companies as well. if you look for next year, we

have expectation at least my dream about growth expectation for next year, we are much more ready. we find we have something low sim digit in our model for next year so it mean company need also to reduce their guidance for next year and what we have seen, it could be in the united states, it could be in europe a company even come with solid revenue is a guidance next year have been hammered by the market or so. >> finally, how do you want to feed position when it comes to the sector bases in terms of european market? i know you got out of some of the cyclicals late last yern t year. keeping the tariffs in mind, how do you want to be positioned here >> definitely, things like house care and utilities are wide because those sector, you have

great -- earnings. this is what we have seen over last 12 month but almost have no growth in europe as you look at the growth for stock 600 which has been quite flat but those companies have been able to manage some growth low, but still some growth cyclical high risk and expected at 15% when you put altogether. 15% is pricey. we position to -- against cyclicals. >> we will talk about the complications of the u.s. elections next time. i know you have a lot of thought on that and who could be hit by the tariffs. thank you so much. let's get back to earnings roche has raised its difficult after expecting better than third quarter sales growth 9%. they highlighted higher

prescriptions of key eye drugs there is a strong momentum in the business. >> we have a very strong quarter yet again with 9% growth in constant change rates. the same growth, we also had in -- and these two quarters were the first quarters with no covid effects. so we can see the strong underlying growth that we have in our business and this is really driven by both the diagnostics and pharma decisions and dying -- diagnostics obesity is a big topic why? it goes toward prevention. a lot of different diseases are linked to obesity. cancer, cardiac diseases, potentially neurological

diseases and alzheimer's and parkinson's disease. >> we will be joinedby nico delvaux after the break. do you have a life insurance policy you no longer need? now you can sell your policy - even a term policy - for an immediate cash payment. call coventry direct to learn more. we thought

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welcome back volvo cars has cut its full year sales outlook by almost half, despite reporting a rise in the profit they said the key markets in china and europe are increasingly coming under pressure shares down by 2.27% and frustrate trade, these are the lines, very similar to the lines that we heard from other automakers around the world recently the co jim roland told cnbc the global industry is slowing down. >> we would growth first ten months of the year and 3% for the quarter and that is

massively outgrown the premium sector in which we operate so that is the good news that, you know, the clouds on the horizon are we starting to see a slowdown in the industry globally and driven by the lack of rollout of flinfrastructure d what we are seeing applied across the world as changing some consumer sentiment. and so, you know, you've got -- you've then got to look forward to see where are we going for the fourth quarter we think the fourth quarter is probably going to be flat for us. >> third quarter operating profit came in slightly ahead of market for assa abloy. i'm dlied to be joined by nico delvaux. the markets you're operating are, some of them are very challenging. how much are you able to

compensate through higher prices here >> good morning. thanks for having me i think we had good realization in the quarter and up 1.5% because we are operating in a market where it's possible to inflation in the market and that is what we do and we try to be the leader as a leader in the market we also want to be the leader in the first one to bring prices up and exceed our possibilities. >> talk me through the different regions. we know the activity in the euro zone is fairly week and affordability and high mortgage rates are an issue in housing in the u.s. china in the doldrums here give us a sense of how the different regions in the world are performing. >> china is a very small market for us it's less than 2% of the top

line and, indeed, market conditions in china are worsening and definitely not improving. we don't see all of the stimulus packages that china has recently introduced having a positive effect on the short-term attempt. we go to the bigger markets in north america and europe, make a distinction between what we call residential market and commercial market. we still see very good momentum on the normal residential market commercial and institutional, as well in north america, as in europe, also very good. >> i'm so sorry, nico. i have to interrupt you for one flash which is completely unrelated to your company. i want to bring viewers one flash. german court in colon is ruling

against deutsche bank in the postbank litigation and this is a case going on many years deutsche bank bought postbank ten years ago roughly. many of the claimants argument that deutsche bank underpaid for postbank 60% of the claimants have already settled with deutsche bank and the remaining 40% are holding out and waiting for the outcome of this german court ruling so that is the news coming out of germany. nico, i'm so sorry i had to interrupt you here please keep on going. >> no problem. to repeat on the commercial side, still favorable market conditions, as well as in north america, which is our biggest market 50% of our sales in north america and as well as in europe it's a different picture on the residential side where we see much more challenging market conditions in both markets and we really have to see interest

rates further go down to see a recovery of that market. we believe that in the cycle, u.s. is further down in the cycle. we believe that new build residential has started in north america but still more challenging levels europe is late in the cycle but, then again, we are confident now with interest rate cuts as well as in europe and the u.s. that that market will turn and really improve again going forward. >> final question to you you've been on the record saying you are always looking out for more acquisitions. you've been pretty active on the mna front so far the last couple of years what is next what kind of bolt on acquisitions are you looking at and what kind of regions >> i think we have clear acquisition strategy built around four and four years ago was acquisitions and last year was an even better year.

we will see this year. we have a rather full plan of companies we are talking to. we have identified more than 900 potential acquisition targets and we are not talking to all of them but we are definitely g engaging with many of them a and hope to continue our successful acquisitions going forward and we have the ambition to grow top line 5% over, a business cycle through acquisitions we have delivered on that ambition in recent years and we are confident we will able to continue on that going forward. >> nico, thank you very much for your time. i really appreciate it nico del vaux is the cfo of assa abloy. weakerondee cfincin china and we will discuss this after the short break. of them when they discover robinhood gold allows others to earn their very liberal rates on idle cash.

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deutsche bank falls forward the bottom of the stock 600 as a german court rules against the learned. it comes as the bank returns to profit in the third quarter. cfo says it could benefit v surrounded by rival -- >> there is always something that takes place. >> roche tells cnbc weight loss drugs will continue to be a focus area for the company >> but obesity is a big topic and why is it a big topic? because it goes toward prevention a lot of diseases connected to obesity. mcdonald's share slump in premarket trade as the cdc

conduct an investigation l'oreal sales miss citing a slowdown in chinese demand hello. good morning let's somehow you where the stocks 600 is trading on this wednesday morning in the trading session and we are hovering close to the line and two days of declines for the stock 600. we are trying to find direction here when it comes to all of the earnings that have come in sick and fast and we will get to some of those throughout the reminder of the show. this is the picture one-by-one ftse 100 is off marginally xetra dax is under water here a bit.

cac 40 is off almost 6%. when it comes to the sectors, here are the top gainers utilities, autos, travel & leisure, with modest gains on the downside when it comes to the underperformer sector wise this is what we are looking at in terms of the underperformers, there you go basic resources leading the declines here. chemistry, construction materials also moving to the downside i do want to draw your attention to the futures yes, a couple of hours away from the start of trade look at the dow jones industrials is off nasdaq is off by 31 points the nasdaq kaw is a fifth positive session yesterday and feigning almost 2% it is all about earnings this week 20% of the s&p 500 companies are reporting this week. tesla is on top after the bell

today. shares of mcdonald's are lower premarket and that is after the u.s. centers for disease control said it is investigating e. coli linked to some of the chains they said, quote keep an eye shares and mcdonald's today let's get back to europe and france lowerial posting a disappointing growth in sales in the third quarter as the world's largest beauty company saw slowdown in demand in china. charlotte has been pouring over the numbers all morning. we hear about the lipstick effect in times of economic woes and weakness, people are still buying lipstick. is that still the case >> when things go well, people buy this product and it looks like when things are tough, when

they get tough for everybody including the largest beauty player lowerial putting those numbers out worse than expected and up 3.4% -- chinathere. comments from other players, particularly luxury players last week, things worse than expected in china north asia sailes are down china had been very much an engine of growth but very much impact slowdown there and ceo talking last night to investors saying, they hope the stimulus measure might be bringing some good news in '25 but very much wait and see situation slow down in the u.s. for that unit luxury still doing okay up 5.8%. fragrance is doing as well

a lot of demand for high-end perfumes and doing well and they hope to bring new things up until the now the pbenefit from post-covid not spending is not the case any more. a lot of new launches in '25 and expect profit for 24 and 25 and have to create demand for beauty products and say they will still do the beauty market will grow between 4% and 5% next year. they want to be positioned well to take a size of that market. >> if fragrances are doing well, lipstick is not. maybe we should rephrase it and the fragrance and perfume effect than the lipstick effect a thought. >> maybe have several perfumes for several occasions.

other countries don't have as much fragrances and this is a big area for growth in the future. >> they make perfumes with a.i. now. did you know that? we should talk more about this but not today. thank you, charlotte heineken beat third quarter sales forecast boosted by higher product prices as well as demand for nonalcoholic bears left its full-year guidance is unchanged. higher to the tune of almost 2% in amsterdam trade. starbucks posted a third quarter sales decline in the scrap guidance for the next fiscal year. the company ceo said the business will undergo a complete

overhaul in the next few months taking steps simplify its offerings, fixed pricing, and improve its mobile ordering. pushing on texas instruments posted an 8.4% decline of third quarter revenue as the dallas-based chip maker continue to deal with weaker performance in its industrial business segment a quick check of the chip makers on the back of this. after bloomberg reported that arm has cancelled its architectural license deal with the company. under the agreement, qualcomm was allowed to use arms i.p. to design chips tensions between the two companies over licensing agreements have been brewing for some time. a litigation battle stemming from a lawsuit that arm filed in 2022 is set to begin with a court hearing in december. let's say in tech.

health tech firm recently rolled out a new ring in orura. hard medical research found to be the most accurate sleeve tracker yet. i hope my following guest gets a lot of sleep tom hale is the ceo of oura. >> i'm traveling in the uk i don't sleep perfectly but i get seven or eight hours a night. >> good to have you around the desk why is the iteration 4 why upgrade from 3 to 4? >> in a smart ring in general. it is wearable and comfortable and small and wear it at night and not feel it and it looks like jewelry so it fits into whatever wardrobe you're wearing but it's more than a sleep tracker. it's a full completely solution for preventive health and across whether it's sleep, heart health, women's health, stress, resilience, the device is

tracking your body and give healthy feedback. >> it's a better ring and more expensive and 50 bucks more expensive than version 3 how are you talking consumers in to upgrading at a higher cost? >> the reason to have something like this is you wanted to make a difference in your health. your has elt is pr-- your health is priceless we want to make sure that actually anyone who needs something like this can have access to it one of the things that we work very hard to do is work with health care companies to try and help them find ways to subsidize it for people who might need it for preventive health. >> the space you're operating in, the wearables market is a very competitive space and crowded market you were one of the first movers in terms of the ring but now heavy hitters like samsung are coming out with a similar product. you're a couple of years ahead in terms of the innovation here

but samsung has such deep pockets. how do you set yourself apart in this crowded environment >> the reality iscompetition i a fact of life in business and particularly in technology and maybe even more so in health technology innovation, quality, science what make the difference we thought of ourselves much more as a health company than a technology company and our advancements in science and the study you just highlighted is what sets us more apart. i think, you know, companies like oura differentiate as a company thinking about science, thinking about health, and doing raw innovation and raw research to deliver the best solution for a patient or for someone who is just trying to make a difference in their life. >> you have the health trackers embedded in the iphone, of course, or other wearables from apple, for example just having that ring and no extra features, you can't make any calls with it.

again, are people still going to be buying just the singular ring just based on that or do you need to add any feature? >> the difference is not really about features that is a very technology way of thinking the reality is a health tracker is in the background tracking your life. most importantly, it's about this sight on the human body this is the most accurate location for tracking your biometrics those to your wrist is different. it is less accurate. >> a.i. is all of the rage. >> absolutely. >> the iphone, obviously, they want their consumers to upgrade because of new a.i. features how much a.i. is in your ring? >> a tremendous amount of a.i. in terms of the predictions it makes and also a coach that is basically using your data and your context to make some recommendations to you and provide a way for you to ask questions and get them answered

and that helps to educate yourself about yourself and your health i think maybe most important and we know about this a.i., if you have a bad day, garbage in, garbage out. if you have high quality, you'll get something and people say consistently about the ring they say i feel it really knows me. the first time it predicts you'll get six in three days and you turn out to get sick, you say how did it know? that is the magic and property of great technology. it blows you away, it's so good. >> tom, thank you very much for your time. in the meantime, i want to take you back to some breaking news surrounding deutsche bank. obviously, as we told you earlier in the show, the german court in cologne has ruled against the lawsuit. this goes litigation going back ten years and many claimants arguing that deutsche bank underpaid by 60%

the remaining 40% that were holdouts were waiting for the ruling coming out today. deutsche banger saying in a statement we will analyze the judgment and look at outstanding claims by. including interest claims accrued today and saying in the statement the bank considers itself essentially fully protected. any additional financial impact would be limited to further interest accruing. that is the latest from deutsche bank which also had earnings out today, shares down by 2.9% coming up on the show, investors are increasingly betting on one particular currency amid expectations that former u.s. president donald trump could wia tun rern to the oval office next month we will bring you more next. policy you no longer need? now you can sell your policy - even a term policy - for an immediate cash payment. call coventry direct to learn more. we thought we had planned carefully for our

retirement. but we quickly realized we needed a way to supplement our income. our friend sold their policy to help pay their medical bills, and that got me thinking. maybe selling our policy could help with our retirement. i'm skeptical, so i did some research and called coventry direct. they explained life insurance is a valuable asset that can be sold. we learned we could sell all of our policy, or keep part of it with no future payments. who knew? we sold our policy. now we can relax and enjoy our retirement as we had planned. if you have $100,000 or more of life insurance, you may qualify to sell your policy. don't cancel or let your policy lapse without finding out what it's worth. visit coventrydirect.com to find out if your policy qualifies. or call the number on your screen. coventry direct, redefining insurance. at betmgm, everyone gets a welcome offer. so whether you're courtside trying to hit the over... or up here trying to hit the under. whew! or, hitting that win with your crew. ohhh! yes, see defense!

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appears on track for a soft landing. the outlook was revised lower by ten bases points and determined by the economy the fund downgraded its outcome for china and now expecting the country to miss its growth target for this year karen spoke to the world bank executive and what he expects the chinese government stimulus measures to have. >> the jury is out the first half year of economic growth in china was about 5% so they have taken additional measures there are structural challenges that the chinese economy is facing, especially in the real estate sector, also partly in the financial sector, so those need to be addressed, but the growth rate has been at the level that many countries would love to have so i think we need to look at that very carefully and

monitoring is in order. >> karen also kaued caught with the central bank of brazil president and the complications it may have on brazil. >> when you look in the learning term, china seems to be going to a mode of export-led model as opposed to the past, the export-led model is now more based on semiconductors and things like that this is creating a lot of resistance in some other countries and we are seeing a lot of countries actually putting tariffs and putting measures against china when you look at the structure of the chinese economy, china now has one of the lowest fertile iterates of all the major economies and it has to shift from consumption model to an export model but you have resistance from a lot of different countries in export model and seeing that on a daily basis so the question if that is the case, what is going to happen to the growth in china in

the medium term and what we are more worried about the packages that you see are very good to address problems in the short-term but the question is what is the structural rate of growth in china more in the long-term because this is relevant for us in the market countries. >> china is growing and it equaled good news for brazil but is it not as simple as that these days >> what i'm saying the model, the model they are trying to do to grow now is switching from an internal model led by consumption to an export model and this export model is exporting things more strategic to other countries than it was in the past. if this model doesn't work, then china will have to leave with lower growth and that has an implication for us. >> karen also sat down with the imf's director of the monetary market capitals market department to talk about china's stimulus and whether it's moving

in the right direction. >> people's bank of china has supported financial markets by easing monetary policy and that has lifted isn'tsentiment in mas and financing for the housing sector is more ample now than it was, say, a month or two ago, so those steps in the right direction. there are also been some policy announcements on the fiscal side that we welcome and the authorities of course, have done quite a bit of work on financial stability particularly with respect to the residential housing market. >> something that came up in your report, which i want to dig further in to, given we have some time, we spoke about china and metaphor about the frying pan into the fire. then you report you highlighted vulnerabilities in state-owned asset management companies which are mopping up some of the

distressed assets in china. >> some of the largest banks in the world are china and have fairly high capital and fairly low number of loans. it's really the small and regiol banks we see to the local governments. as i said earlier, the government has started to consolidate some of the banks, has deployed these companies in order to collect some of the normal performing assets and that is very welcome and stabilizing the financial system. >> is that simply moving the deck chairs around if you move one deck to one vehicle to another? >> to the extent they are losses, the question is how do you absorb those losses? as a management company, they are being used for many decades around the world in order to absorb those losses and that is what is being done here.

mergers also being used so the key is to get back to well capitalized banking system that is resilient to shocks and that can support the economy by lending activity. >> let's turn our attention back to the u.s. elections. we are less than two weeks away. a quick reminder here. despite polling showing a neck and neck presidential race in the u.s., wall street investors are increasingly backing trades which could pay out in the case of a victory for former president donald trump hedge funds and money managers have begun allocating more toward inflation trades as they have a trump agenda including tariffs and the impact on the u.s. economy banking names have also seen a boost amid expectations of looser regulation on trump on the back of better than expected earnings as well the dollar index is trade ing

10428. there is the ten-year yield at 4.230% u.s. dollar is one asset traders are turning to amid increased expectation of a trump win with the green seeing a boost as markets price a victory for the former president, alongside strong economic data citi talking about the election premium we are seeing currently in the u.s. dollar karen caught up with tim adams and asked him what impact november's election could have. >> both candidates are running as change candidates which is kind of interesting. concern about trump is that he's anti-internationalist and doesn't care with the transatlantic relations and will be more focused on isolationism and protectionism and some of them may be overdone but see

that through his proposals on tariffs. no doubt that vice president harris will be much more engaged with the global community, much more interested in international organizations. >> when it comes to trump, trade fragmentation is already a key risk and there are skerngs that that gets worse but also has a trickle of inflation as it's coming down. how are your members think about this impact? >> assumption you'll have higher interest rates than you would in the absence of those tariffs that they are inflationary you can argue is it one off or over time? it's what retaliation looks like and no doubt it would be a break on the progress bringing down prices. >> tesla set to record third quarter earnings after the bell today with focus on the company's auto gross margins which have been under pressure over of the last two years traders will be looking to comments from elon musk specifically on the development of a lower cost vehicle which musk said back in the first quarter could go in to

production as soon as this year. so far, he has been pretty quiet on that so we will see whether we get any color or any commentary on that but, obviously, a big disappointment in the share price of late after that event but shares are rallied by a whopping 7% quick check of u.s. futures. a mixed day yesterday. today, the dow jones is off a percent. all eyes on tesla. keep an eye on mcdonald's after that e. coli outbreak. see you same place, same time tomorrow bye-bye. i'm carolyn roth

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it is 5:00 a.m. on cnbc global headquarters. welcome to "worldwide exchange." mcdonald's shares are sinking as the company grapples with e. coli outbreak across ten states and killed one person. starbucks shares are falling prereporting a third straight quarterly sales drop and the worst in four years. we will dig into the new challenges for the ceo investors waiting a key vote