Flight to safety. Shares in semins as diagnostics takes a hit in the Third Quarter. The ceo says hes still confident despite some challenges. We saw some headwinds from Foreign Exchange over the year and we guide for this in the last quarter and because of this, we see very well underway to get to the lower end of the original guidance. Four charges and six alleged cocon coconspirators. Former President Donald Trump is indicted for attempting to overturn the 2020 election and conspiracy to defraud the u. S. Well, good morning to you. Heres the news weve been breaking across the morning. Fitch stripping the United States of its aaa reading and down to aa its over the standard of governance over the last 20 years following the buy saturday tan talk in the month of may which eventually saw the debt ceiling raised until january 2025 now, the agency had placed the u. S. On negative watch following the 11th hour deal fitch then also flagged a high debt burden along with an expected mild recession. Thats said to happen in the Fourth Quarter now u. S. Treasury secretary janet yellen heads out with the decision scribing it as, quote, arbitrary and based on outdated data reaction to this move was muted from analysts in particular with demand for treasuries actually expected to remain strong as a safe haven asset despite the downgrade. A note from Goldman Sachs even noted that the move from fitch did not reflect any new information and should not have any major impact on markets. In fact, this is what the treasury ended up looking like it was a slight tilt then in this picture overall, sub rating slipping but treasuries overall still remained they even climbed a basis point in yesterdays trade and still kind of beholding in and around that 410 that were currently seeing it at this is around the highest level since november it must be noted as well the 10 yyear treasury yield th hit a high but it slipped a little bit but its up around seven basis points thats the highest level over. The split between the 2year and the 10year the spread, i should say, thats the highest level since july 13th. What does this mean then for the dollar the currency is also one to look out for. Its still going to be a flight to safe haven trading. The dollar is still going to maintain some sense of stronghold even though it did struggle to make a little bit of headway. Initially it made a few questions about the countrys fiscal outlook, but some support then from what has been a relatively resilient economic picture so far has certainly been a key question. Of course, you have the adp private employment numbers coming out of the u. S. Today you have the nonfafrm payroll numbers which are anticipated as well there is some strength in the dollar, but as you can see, a little bit of it creeping away u. S. Futures, this is pretty much the picture were anticipating after the number we saw yesterday. Trade is continuing to assess the latest batch of Second Quarter earnings numbers also. Plus over 160 S P Companies have put out their results. 58 of those have already repor reported, and 82 have posted earning beats there. Heres a picture for europe. It has been fairly negative. Some could say its somewhat of a fitchy fetch maybe not necessarily just based off that Fitch Ratings downgrade. Global sentiment has been dragging stoxx 600 was down around 1 of the First Six Months of trading. All sitting in the red. It certainly is a riskoff start to trade here in europe looking. Every major sector trading lower as well. Looking across the commentary, you highlighted a couple of key comments there at Goldman Sachs in particular saying the financial impact, the Financial Market impact likelyto be limited from this decision i think part of the reason goldman has taken that view. Weve also seen others take that view and a number of other big banks is because this isnt a true shock because we already have s p take away that key aaa rating back in 2011. I think they was the bigger surprise to markets. Now at least investors have experience with coping with the downgrading of the u. S. Credit rating whats clear is investors are seeking safety this morning. They are fleeing those riskier assets perhaps thats why we havent seen a huge amount of movement in treasuries. In fact, investors are sitting tight for the most part. Thats mainly because you dont have as many aaa rated treasuries to kind of get into, a bond to get into across the globe, right so this is still a good measure. One thing, however, i did think was significantly different is the impact may not be or may be limited with regard to how Much Negative impact this could have i thought it was very important that despite janet yellen, of course, investigation said this is arbitrary and based on outdated data, there is concern over what the agency is calling brinksmanship, right and i think that for me is perhaps the o1 one element theres negotiations around the debt ceiling it seems theyre always willing to go toward the end this last time they were able to get clear of the debt ceiling deal just two days before x date or the date when they would not be able to pay their debt any further, yet there is still strength in the u. S. Economy, theyre able to pay off their debt, but the brinksmanship means youre going to lose a little bit of confidence in how exactly things are going to fair. Lets talk earnings. Cocacola has announced a joint plan for a philippines business in a deal thats worth 1. 1 billion, this as the Company Raises its revenue and outlook after posting 5. 5 sales growth in the Second Quarter. The cfo of european cocacola joins us now an absolute pleasure to have you with us. Thank you for talking through the results and announcement on the deal front let me kick off with the underlying business. It looks like youve had a strong first half, so much so youve raised your guidance for the year, but breaking it down by the quarter, volume looks like its deteriorated in the second half of the quarter break down the detail. Sure. Thank you for having me. Its great to be here to talk about the results. To your question particularly, remember were cycling a very, very Strong Quarter from last year where we started off early april. We knew that going into the quarter, but despite that we were still able the grow volume in europe by half a percent. When you look at that over half a year, our volume is up 2. 5 , and i think thats a really important metric for us to focus in on that despite our taking price which is critically important to be offset the inflationary pressure, we were still able to grow volume. And when you look at the api region, when you actually strip away some of the strategic choices that we made, whether we wanted to exit certain categories, we actually are seeing our markets in australia and new zealand growing in volume and indonesia is probably one market where clearly we made the right choices to exit certain categories, but that come back in the Fourth Quarter of this year. Can you give us a little insight into which category, product in particular is holding up best . Coke zero im drinking one right now theres a huge, huge drive toward low and no sugar and coke zero continues to outperform at the same time weve had some great performance of flavors like fanta, sprite in australia, Energy Drinks with our partner monster continues to grow tremendously, sports drinks, powerade continues to grow as well you see a whole range of products we focus in on and the other is tea early start, youre probably seeing the launch that we did with jack daniels and coke. We launched is that across europe. Nik, good morning to you. Lets talk about this venture. Lets look at what you hope to unlock in terms of your own value here it is only 60 40, but it gives you a Significant Holding into that market, a slightly different market, but one believe holds your portfolio a little more . Absolutely. Just a reminder, we acquired that back in 2021 and that gave us a very strong foothold into australia, new zealand, and indonesia. Philippines is another very, very attractive market in indonesia. It has a Rich Heritage in the hichlt over 100 years. For us it was a huge additional platform to be able to bring earnings to indonesia, but at the same time with the local partner whos a very, very Strong Player in the local market we can jointly unlock a lot of value for growth in the market were very excited about the market and what it can bring to the market in indonesia for us. Certainly an interesting one well continue to follow you have noted you have an expectation to return to the top end of your net debt to adjust the core profit range. That was set to happen at the end of 2023. You pushed that back a little bit to 2024. Why that pushback in terms of the deadline essentially because well be funding the acquisition. So free announcement of this potential deal, we had looked to delevel where we would have got on the that top range of 2 1 2 to 3 times the adjusted ebitda, but now with 68 of the share back, that delayed us back six to nine months what about on the earnings front. Moderating, if you look at the first half results, we had costs go up about 9 we guided to the year about 8 you might have seen that moderate by a couple of points, so clearly were seeing the pressures easing off gas and power. Were seeing the pressures easing off on tea, which is an important element on our commitment of sustainability, so clearly thats going to help us as we go into the second half of the year. Nik, thank you so much for the time i appreciate you Nik Jhangiani is the cfo of cocacola and the joint venture in the philippines. Coming up on the show, the earnings keep on coming. Well bring you the results from europe as well as the u. S. , bringing in names such as the big chip make e. Thats after the bring bridgett is here. She has no clue that im here. She has no clue whos in the helmet. Are you ready . Im ready alright. Xfinity rewards creates experiences big and small, and onceinalifetime. A very warm welcome back to street signs. Lets get a check on the european markets it is a riskoff at the start of the trading session in europe, perhaps a bit of a downgrade, a surprise move, a downgrading from aaa to a aplus well talk with an nachlt were seeing the ftse down 1. 7 . A broadbased selling taking place this morning the xetra dax down breaking it down, on the downside of the Financial Services, down 2. 3 . Basic resources down by 2. 3 as well travel and insurance, more on the downside on the upside, oil and gas, still resilient. Food and bev down and real estate down 1. 4 so pretty sizeable selling were seeing this morning. Of course, it is the earnings season still. Lets come down to call of names. Hugo boss is down another 0. 3 it raised its outlook on the back of a 20 jump the german luxury house said its particularly strong in the asiapacific region with asia and China Growing by 56 another big mover to the downside, siemens. Shares down 7. 3 a pretty steep pullback. Earnings per share came in at 53 cents while the german sherms adjusted ebit marriage down 4 the group did confirm its outlook for the fiscal year, but it wasnt enough to get things going. The cfo said he is confident the company can maintain growth throughout the rest of the year. The Strong Quarter grew again with more than 10 in antigen. Like q2, we had to order the intake was the same level as the prior year, which was very, very strong we increased our back lot by exactly 1. 11, and we are in general very satisfied with the growth and topline momentum we see in the market as well as the respective businesses. Therefore, we feel very, very confident to get to our outlook, which is 6 to 8 x antigen on the top line and also in the upper half of it. Second quarter revenue for the german auto parts manufacturer rose to 4. 1 billion euro, but like the rest of the markets, schaeffler is under pressure, down 2. 6 . The cfo said he expected more positive results this year. We have a very solid margin in automotive technologies, 3. 6 , the same number like in q1, once again showing this is a good diversified mix between the mature business and also the new business in particular in mobility, and, yes, we have some headwind in industrial i see this as temporary. The whole mix together told us while we kept the gross outlook at the level of the previous guidance, we increased the margin a bit and also increased our Free Cash Flow guidance by 50 million, and that is not saying that we are, you know, overly optimistic on the second half, thats a reflection of the welldiversified and wellrun businesses that Work Together at schaeffler. Now, amd shares are higher revenue for the Second QuarterBeat Estimates but still fell 18 on the year amidcontinued weakness the cfo says it sees demand ramping up sharply in the second half arjun is joining us to unpack this one it was an interesting course. It wasnt great in terms of the number you read there, 18 down. It was a quarter of two halves, i would say. First, signs of stable ziegs, which is what the market wanted to see theyre saying the overall chip market is likely to improve in the second half of the year as demand for things like pcs picks up again margin is slightly better. Those are sort of the boring bits, shall we say lets get the business back on track. The second part you mentioned, that was the play for amd. The company is ramping up production and getting ready to launch its first a. I. C. H. I. P. Which is the ni 300, which is a graphics chip that nvidia makes as well. Theyre making this as a direct rival. These are the kinds of chips that are required to train huge amounts of datasets for the kinds of a. I. Sets we get with chahatgpt that is potentially where this chip is going to be sold into as well there is, of course, huge demand for nvidia chips as well theyre hoping to get in on system of the action and demand. Clearly the afterhours move higher was the stable skaggs oization of the core business and seconds, hopes that amd can become a real challenge to nvidia. Arjun, thank you for the color. Something were keeping an eye on programming note, well have an interview coming up at 3 00 p. M. Cte. Elsewhere in the tech space, uber shares fell despite its First Quarter operating profit revenue missed expectations at 9. 2 million the shares down 6 i was first taken aback. Something must be amiss for the uber shares to be down but then its up nearly 85 year to date. Was there actually cause for concern in these results or is it likely that this was just profittaking . Probably majority profit taking, but i think a little bit of concern creeping in about the competitive environment, particularly with lyft cutting prices and also doordash and the way thats eating into it, uber eats remember its just turned profitable this is what investors have been clamoring for for years, an execution from the uber team really has been very good in terms of cost cutting, getting economics up, getting the deliverability up. The key now, sustainability. Being able to say it i know it was said that actually they think theyre going to be profitable after this and continue to be profitable, again, we know it continues to be a very competitive environmentaling not only in the u. S. But internationally, even here in the uk you look at a plethora of ride hailing apps you can have in any one day. A boat or ferry may have a deal that undercuts uber to some extent, so that pricing battle is going to be a part of it, at least until further consolidation takes place. I think theres perhaps a slight bit of caution from investors, but particularly in light of the fact theres been this huge runup in shares. Its interesting you mention the price differential you see it anecdotally it seems like uber is at a higher price point than some of these rivals our producer david yesterday flagged it he had an interview with wired to take it to downtown manhattan, its like the citys ferry. I dont know 20 bucks, 20. 51. Probably excluding a tip in the u. S. Its more expensive in the u. S. , though, right, i think, than here. You would know better than i, but i think they have more dynamic pricing in the u. S surge pricing seems to be much, much higher in the u. S. Its rich in this example, the report from wired says while its 10 00 a. M. On a random wednesday or tuesday. Nothing was happening. Yet, you know, the cfo may have blamed that on higher pricing. So youre quite right. The pricing is going to be the one issue theyre going to have to look at and you said competitive environmental is clearly one to look at do you think that means if prices have gone up 91 over the last couple of years, does that mean they need to relook at the way they talk about pricing . Because a we have spoken about, they seem to be doing it differently. There will continue to be the pricing. The price comes when theres more flash deals offen from some of the rivals, but also on top of pricing the issue is availability of drivers. Uber does seem being the biggest to have more availability now and that may come down to it you look for a company thats cheaper. You may hail a ride. You may not get a driver for ages, forever, and then you go back to uber because theyre the bigger driver. They keep the drivers on board. So often you see the drivers switch between apps. So its still a thing. From a drivers perspective, theyre competing all the time. Good point. Arjun, thank you for joining us. Arjun kharpal joining us. Coming up on the show, well bring you the latest reaction for fitchs decision to downgrade United States. Jane foley head of strategy joins us on the other side of this arjun, thank you for joining us. Welcome back to street signs. Im julianna tatelbaum. Im arabile gumede. These are your headlines fitch slaps the u. S. With a sharp ratings downgrade, stripping it of its aaa rating, drawing anger from the white house and sending u. S. Futures into the red billionaire investor discusses the impact with cnbc. I think from a longer term perspective, people are going to be expecting theyve got to diversify their foldings away from the u. S. And also into equ equities thats the way to protect them. Markets fall to a twoyear low. Treasury yields tick lower as investors prepare for flight to safety. Shares in Siemens Health sink to the bottom of the stoxx 600 as diagnostics revenue takes a hit in the Third Quarter the companys cfo tells cnbc hes still confident despite some challenges. We saw some headwinds from Foreign Exchange over the year and we guided for this already in the last quarter. And because of this, we see us very, very well underway to get to the lower end of the original guidance. Four charges, six alleged coconspirators. Former President Donald Trump indicted for attempting to overturn the 2020 election an conspiracy to defraud the u. S. Were about an hour and a half into the trading session. Stoxx is down 6. 7 were dealing with a soft handover from asia and part of it is due to fitchs surprise downgrade from aaa every major region in europe is trading lower. Lets split it out by the boards ftse 100 down by nearly 8 leading the markets. The cac 40 down 1. 5 1 lower for the spanish market. Really a broadbased indiscriminate selling taking place. I know a lot of bearish investors will be pleased with this pullback. Positioning has been bearish especially among the hedge fund community. Is this the start of something more sustained or will this prove to be a knee jerk reaction to the news overnight . We will have to say. Asian markets, this is how things closed up there hang seng dropped 2. 5 we saw a sizeable reaction in the market that index has had over the last several weeks. Shanghai composite ended 0. 9 . A little more resilient but obviously to the downside. U. S. Future, wall street is poised to join the selling youve got all three of the majors poised for a sizeable pullback looking at a aaa pullback if these levels hold. Now, the big story, part of the potential driver of the Market Action were seeing, fitch has stripped the u. S. Of its aaa Credit Rating, downgrading america to a plus. Billionaire investor mark mobias spoke to our colleagues on squawk box about how the move could impact markets. I think from a longer term perspective, people are going to be thinking theyve got to diversify their holdings and push away from the u. S. And also into equities because thats the way to protect them from any deteriorations of the currency so i would say the downgrade is going to have a lot of people thinking about diversification not only away from the u. S. Market but generally speak, away from the homemarkets. So lets unpack then what the currencies look like at this stage. Were seeing a little bit of weakness out of the dollar, the sterling managing to hit to 127, having to hit the highs of 129, in fact, a little earlier this week than last week. The eurodollar is 109. 85 lets bring in jane foley head of rabbobank thanks for the time. The downgrade doesnt do much to change the sentiment around weather the u. S. Economy is actually struggling or not the sentiment clearly is it actually has been fairly resilient. Does this bring even further strength to the dollar short term as well well, of course, its an interesting question because the dollar has perhaps a little bit of an odd relationship with the u. S. Fundamentals. Normally, of course, if you look across the country, fundamentals focus on the budget deficit, focus on the debt. Those are the parameters its generally currency negative but the u. S. Has i own fundamentals thats unique from that point of view, and the reason for that is because its used so much in invoicing around the world. Thats why so many different Central Banks have had dollars in their reserves because dollars are used in their invoices, and so the reality is that when you hear bad news, Risk Appetite irrespective of the cause, irrespective whether it comes from the u. S. Or not, people think, i need the dollar to pay off my invoices or to service my debt, for instance, and often the dollar then rises, and this is why news that weve had today with respect to the downgrade wont stick lightly and weaktown currency an anywhere else in the world if it related to the debt of any other country. The dollars likely to remain relatively firm because of that safe hav p bid. Would that put any pressure then on the fed to look at this and think for the sake of the economy, for the sake of the dollar as well, perhaps we should hold off on hikes from here well, you know, again, i think the fed is going to be data dependent and perhaps this is going to be one it considers, but i think what it also does, it focuses the market on the role that fiscal policy has played both in creating the do panhandle, which created some of that inflationary impulse and perhaps the role that fiscal policy should be playing to be fair, we did get a warning from this Credit Company a month or so ago talking about the strains and the u. S. Budget deficit. We all know the u. S. Budget deficit has been on the up this year, that the u. S. Is on the up, the higher Interest Rate, debt servicing will be more. And this downgrade will focus attention on that what it will do is focus the attention the fiscal policy will play on the growth of inflation dynamics as well as Monetary Policy as well. Jane, when i look at markets this morning, one of the biggest moves weve seen with them is the japanese market. Youve got the nikkei 225 plunging more than 2. 5 overnight. The dollar yen is moving quite a lot as well. Why the outsides reaction in the japanese trade well, the market has been doing quite well on the back of the gains of the nikkei, so youre going to see some position adjustment here particularly when everything is doing quite poorly, but also theres this relationship between the yen and that because of the large skpoerts dominant within that index. The market is focusing, i think, very much and has been for quite a while with respect to what the bank of japan might be doing in the future i think nobody really expects the bank of japan to be doing anything more on Monetary Policy in the months ahead. We have had some positive economic day tachl for instance, we have had news this week the jobless rate continues to see tightening in the market that should be good for Market Growth we saw last week theyre recommending, looking for 4 incarribean in minimum wage. Its generating this sort of wage price spiral, which japan wants which everyone else wants to depress you know, theyre gathering some ground, and that should keep alive hopes that they could be some further tweaks within policy in the coming year or so for japan. Okay. So for the japanese trade, clearly the japanese side is also a big factor here its not simply a reaction to the credit downgrade, but thinking about the credit downgrade and the Market Impact more broadly, do you see today as the beginning of a more sus spained risk off narrative taking hold for markets, or is this likely to be a shortlived phenomenon thats a great question i dont think today. I think yesterday we saw the news with respect to, you know, the downgrade for the us debt is part of that but i dont think it was the start. Now, of course, i think just a function of positioning is perhaps whats really behind that weve seen equities do pretty well in the year to date, very well in the year to date weve seen the u. S. Economy being very resilient you know, thats certainly been the story in the year to date. Were looking at between here and the end of the year, and people see headwinds you know, germany, for instance, has been in recession. Pmi and the eurozone at the beginning of last week, theory not too good we know the labor market in the u. S. Is loosening, but we know the economy should be slowing. I think the market is looking at the position looking at how well some have done in the year to date and thinking, you know, maybe i should take some of that risk off the table. I think thats whats triggered this i think the news weve had from the u. S. Government has just been part of that story. Jane, thank you so much for your views its fantastic to have you react with us on the become of this downgrade. Do stay with us for one more segment. I want to turn our attention now to the bank of England Investors are pricing in a twoyear chance by 25 basis points to 5. 25 when its Monetary Committee meeting tomorrow excuse me on thursday with a 50point bigger basis hike jane, whats your expectation for this meeting on thursday and how would you describe positioning in the pound, in the leadup to it . Well, its a done deal. I think that they will move. Youre right theres still a debate, about 25, 50 were up for 25 and certainly our corporate customers are saying there are signs that demand has been affected by the cost of living. Prices are higher by higher Interest Rate. Thats probably enough to swing that the banks do 25 rather than 50 because most Central Banks at this point arent worried about a cliff edge impact as those previous Interest Rate hikes all start seeing it at once. Theres a lag in terms of f Monetary Policy impact we think it will be 25 i think whats going to be really interesting is whether or not its going to be a hull kish hike or slightly more pragmatic hike yes, we think theyll go again once more after tomorrow, but the market really wants to know how close is the bang of england coming to the end of that cycle, how worried are they about the sticking of inflation. We had a comment a few weeks ago from governor bailey that inflation will come down in the months ahead we saw some of that, of course a few weeks ago, and the market wants to know how confident is the bank of england that were seeing the peak of inflation. Jane, always a pleasure thank you for prepping us on the meeting for thursday, aka tomorrow i just checked my diary. Jane foley at rabbobank. Dont forget jpmorgans jamie comin dimon, ceo, coming 1900 cte. This is another one trump will have to fight he can pretty much still, you know, try to be president even from prison if this was to be the case but it seems when one considers the documents, the documents case where he held documents he wasnt supposed to, that case has now been moved to may 2024 and a case like this, even bigger than that one, chances of it being completed before the november 2024 election seemingly very, very difficult to think that that would be the case, meaning donald trump could really use this in his favor to try to become president saying its just the democrats trying to go up against him here. Its certainly been his line so far take a step back and look at the reaction from trumps base to the previous indictment. This is the third indictment this year as you alluded the popularity remains strong. Its intact, growing average of opinion polls suggests that hes got a 37point lead over his closest competitor ron desantis. From an election perspective, the question is would he still be eligible to run were he to be convicted. Then youve got the question of whether they would want him to be president and based on the polls, these Legal Proceedings are not dengt his support and perhaps thats why in reaction to the latest charges, these latest allegations, the resppublicans, his peers are not outcriticizing him. Even his closest competitor, ron desantis says he hasnt read the indictment yet. Ron desantis almost looks as if hes giving up. Hes very fearful of actually taking on trump a little bit too much even in a time when hes being indicted and has all of these challenges against him in his leadership. Im not sure i would take that as ron desantis giving up so much as ron desantis and the other republicans for the most part not all, but for the most part not wanting to alienate trump supporters, and i think thats the critical piece here the Republican Party continues to refrain from publicly criticizing president trump. Maybe they hold some views privately that differ from the ones theyre putting out publicly, but at the moment, the Republican Base is fairly mute around these proceedings in fear of alienating some of the trump supporters. I was reading about the chances of either joe biden or donald trump being voted as president at this point in time, and it does seem pretty even with quite a few also around 20 saying they actually still have not decided as yet its still going to be fairly edgy. Coming up on the show, cnbc release their top 200 fintech firms. Well bring you the highlights after this ah, these bills are crazy. She has no idea shes sitting on a goldmine. Well she doesnt know that if she owns a Life Insurance policy of 100,000 or more she can sell all or part of it to coventry for cash. Even a term policy. Even a term policy . Even a term policy find out if youre sitting on a goldmine. Call Coventry Direct today at the number on your screen, or visit coventrydirect. Com. Welcome back to street signs. Cnbc has launched their report on the top 200 Fintech Companies today. They used a rigorous test to pick 200 from over 1,000 Companies Using 10,000 data points featured companys coo has more. I would say tech giants are making inroads into the financial industry as well as amazon has Just Launched their own fintech program. Theyre also making a partnership. I think its a natural step. Its like something we can see in china i would say theyre using different parties in the payment and also customer landing and other financial applications i would say for them its really just, you know, natural to actually start to make partnerships and build products fast in order to curb it and solve the paper. We can see this in payments. Thats why were partnering with some of the Larger Companies out there. Fortunately for us, ryan joins us now what are your Key Takeaways from this report . Certainly some of the Key Takeaways from the report, the u. S. Is the Biggest Country for Fintech Companies globally you had 65 of the top Fintech Companies featured in the report were showing the scale of the u. S. As a Fintech Market second, though, was the uk a distant second of 16 still a strong economic is its been built up over the years. And germany and france trail behind germany on ten top fintechs and france on eight, so showing europe as well kind of featured. But a second point that was really interesting with this report with migration away from challenger banks and consumer apps in the Fintech Industry to other parts of the financial chain. Youve got areas like compliance and others as we finally another interesting takeaway was the nonbank players getting into finance in china youve got tencent and another group and also u. S. Tech giants like amazon, apple, an google also trying to get into the Financial Services ryan, how is the downturn in the uk economy perhaps impacting the sector you point to 16 being the number of big fintech players, which is second, which is still sizeable. But when compared to players like the u. S. Where you have them in there, the impact must be big. We dont have the big impacts like paypal who have a global influence. But you have got some companies that are interesting i think talking about the uk specifically, yeah, high Interest Rates has and the uk hasnt been immune to that. It impacts the banks significantly. Theres a lot going on there the uk is trying to push the bank itself. The government is doing initiatives around listings for examples to get companies from the early stages to the growth stages, but definitely, definitely some confidence one of the interesting bases to my mind, the pioneers, are going to be the incumbent banks, the big banks like jpmorgan, or the new institutions, are they going to end up being the leader, or are we going to see them acquire and end up as the same entity . Whats kwlour take from the report and your research on the topic . I think the big trend is the partnerships between some of those big banking players and the fintechs a lot of the companies that are on here are infrastructure players, you know, working around compliance and the customer some of the big banks thave to play into it they have to make their own digital products, the likes of clear bank which launches their own financial prfss. Lhv banks with a similar offering the banks cant go it alone. They need the Fintech Companies to help them with that journey theres still that kind of rivalry going on between the two. Ryan, brilliant thank you for joining us you can check out the port on our website at cnbc. Com. Theres a glichls of the report and i would highly encourage you to check it out. Excellent work by ryan there. Well give you a lastminute check on u. S. Futures given the heavy selling weve seen take place across the globe we have bounced on the lows but poised for a weak start to the trade. Thats it for the show im julianna tatelbaum. Im arabile gumede. Worldwide exchange is next ah, these bills are crazy. She has no idea shes sitting on a goldmine. Well she doesnt know that if she owns a Life Insurance policy of 100,000 or more she can sell all or part of it to coventry for cash. Even a term policy. Even a term policy . Even a term policy find out if youre sitting on a goldmine. Call Coventry Direct today at the number on your screen, or visit coventrydirect. Com. It is 5 00 a. M. Here at cnbc Global Headquarters and here is your five 5. We begin with arbitrary and outdated swift reaction from capitol hill and the white house after Fitch Ratings takes the ax to the longterm Credit Rating of the u. S. Government. To wall street, a question in the timing and the racitiona behind that move its picking up steam all around the world. And race on the radar. The latest read on Weekly Mortgage applications is out today as Mortgage Rates soar back above 7 . We get a check of the housin