Transcripts For CNBC Street 20240703

Markets in europe open to the upside tracking wall street in asia higher. Ericsson shares are falling and declines to give guidance for 2024. The ceo remains optimistic. Depleting inconvventories thh the inventory cycle and cautious on the road out. That will come back to more normal levels. It can take a couple of quarters. It can take a bit more. Bitcoin pops more than 10 nearing the 30,000 mark before paring back before p tthe appro etf. And we have Goldman Sachs and bank of america earnings on deck. We will talk to Ceo Brian Moynihan at 16 00 cet today. U. S. President joe biden will visit israel tomorrow. The oneday trip will see biden p meet with israeli Prime Minister Benjamin Netanyahu in tel aviv following a stop in jordan where he will meet with the King Abdullah. This comes as a critical juncture in the war. Antony blinken announced the latest in the war. The United States has developed a plan to enable humanitarian aid from organizations to reach siccivils in gaza and creating yareas to keep civilians out of harms way. It is critical that aid flow to gaza as soon as possible. We share the concern that hamas may seize or destroy entering gaza or prevent the aid from reaching the people. If hamas blocks the assistance, including by seizing the aid itself, well be the first to condemn it and work to prevent it from happening again. Ellison barber filed this report from israel. Reporter u. S. Secretary of state Antony Blinken says President Biden will visit israel on wednesday shortly after the announcement at 3 30 a. M. The spokesperson for the Israel Defense forces held a briefing and we asked if he thought the president s visit would impact the military plans here. He said the short answer is he does not know. We will have to see. He expects later in the Morning Hours for the Israeli Government to comment more on the u. S. President s visit here. He does not believe this is meant to hinder the military plans here. He says this is to act as a show of solidarity to defend itself and ensure the conflict doesnt expand beyond what we have seen so far. Israel is prepared to launch the next phase of this war which they have described in an integrated attack by air, land and sea. So far, it hasnt started. We have been on the border for days now. Fired in the direction of gaza. We heard drums overhead. Military aircraft and helicopters as well as fighter jets. So far, that next phase of war hasnt started yet. That was ellison barber. Later on in the show, we will discuss the growing humanitarian cr crisis with tamara alrfari. What we did see in the last 24 hours is riskon sentiment prevailing. A lot of green on the board yesterday. Wall street did see the major indices in positive territory. The heat map with green behind me. We have the stoxx 600 up. 30 . Trading higher as some of the concerns about the broader regional configuration were shrugged off yesterday. We started with the results on friday with bank of america and Goldman Sachs. Big theme to follow in the coming days. As for the individual markets, this is the breakdown with the exception of the swiss index. All of the indices are trading in the green. We have the ibex and ftse mib up. 40 . We have been watching italy today. A bit of a rebound in the stock after the negative performance. That is being volatile within the italian index. The dax is up. 30 . Cac 40 is through 7,000. Up. 40 . In the uk, we inch higher and getting close to 7 ou7,700. We have seen a positive reaction in the stock today which is up more than 2 for rollsroyce. We have wage data coming through in the uk. Pay growth has started to moderate. Real wage growth is now in positive territory. That is a good sign for workers. The back drop is a slowing labor market. This is where leadership is coming from in sectors. Real estate up at. 80 . We are seeing yields turn around once more today. There is a upward movement in yields moving three points higher. Real estate can still do well in that environment. Healthcare up. 70 . Utilities doing well. On the flip side, basic resources. Minors under selling pressure after yesterday. Some minors are under performing at the bottom of the ftse 100. We spoke about glencore yesterday, but today we are seeing a rehe vversal about tha. It is not just about telecoms with ericsson posting a weak guidance for the year. The hand over from asia with the riskon sentiment from the u. S. At the end of the session in europe means you wouldnt be surprised to see this. Shanghai is. 30 higher heading into the close. Nikkei up 1. 2 . The for uss on the property sector. Lets bring you Country Garden stock here. You can see how it is faring over the context of the last few months. It dropped a huge amount. Trading close to penny stock levels. There is concern today because there is a Coupon Payment that Country Garden needs to pay. If they dont pay that, that could set in motion a wave of defaults and lots of questions of the offshore ability to service debt. 60 million yuan shares have been frozen by a court order according to the media report citing the chinese corporate records immemedia base. Lets look at global yields. This is the impact on yields today. Actually, we have started reversing some of the gains we had the last few days. Interestingly, we have the tenyear bund back at 2. 8. Btp is 4. 82. Receiseven points higher today. If you look at the spread, we are through 200 basis points. Lots of talk about that with the rising spread differential. It is not something the ecb is worried about, but we are monitoring closely. Lets bring in the first guest. Equity strategist from sustainable asset management. Good morning, wilf. Let me start off with me in front of the board of yields and trying to make sense what have we have seen. It feels the bond markets have brushed off the geopolitical concerns we saw as tensions flared up during the week last week. We resumed the trend of yield moving higher and higher again. Why do you that i is the case . I think it is clear. We are still in an environment of fairly strong u. S. Economy in particular. If you look at the atlanta fed gdp records. We look at the ism manufacturing in the u. S. It is slightly recovered. At the same time, the fed has clearly told us we will keep rates high until the economy starts to weaken. We are not happy with inflation trending lower. We want inflation to be calmed down on a more sustained basis which requires the economy to soften the labor market to weaken. We are not there yet. The rates market is testing those limits and in my view will be self defeating in the end. We will get to that. Let me ask about the fed. I saw yesterday that the probability of another rate hike in december has moved up to 37 . It was 32 in the beginning of the week. If the fed goes for one last hike, what impact will that have on markets . I would think it would have a negative impact and on the short end of the curve will move higher. The market is not prepared for it right now. I would think that the discount rate could come a little bit with equities weakening a little bit. At the end of the day, what matters is the next six months or so where we see a slowdown coming through to impact the longer end of the yield curve and eventually see a more tradition am environment with the risk off scenario with risks coming down and equities coming down at the same time. Bonds providing a patch for the weaker economy. Lets dissect the macro. We have earnings season coming um. Q3 earnings are expected to increase 2. 2 on year. We are looking at earnings expansion going into the earnings season. Do you think the market is discounting that . I think the market it really depends on the region we are looking at. If we are looking at the u. S. , we are seeing a groewth. We have seen the first year over year eps Growth Numbers since q3 2022. We are cutting back from a mini earnings recession. The market, i think, is priced in the u. S. In particular. I would not expect much of the upside surprise on the back of the earnings and given the revisions have been positive into the season. Performance has been steady. At the end of the day, what matters more is the macro back drop with the political the scenario playing out. It does feel like going into the earnings season despite a analysts say. Let me ask you how you are thinking about the u. S. Earnings season versus the european season. My sense is people are more negative about the European Company prospects. For europe, that is the case 60 year over year. U. S. Will most likely easily beat to the upside. Europe potentially to some extent with the rates. U. S. Will likely fare better. It is a reflection of the economic reality. If you look at the u. S. Cycle compared to the european cycle, europe is showing signs of recession or stagflation which is hurting earnings across the region. In the u. S. , we have the key drivers and tech names with the tech sectors with Discretionary Services which are doing the heavy lifting on earnings and a better cyclical picture. There is a discrepancy. I would expect the u. S. Cycle to slow compared to the rest of the world in the coming quarters. Something for q4 and q1 next year. I was at the imf annual meeting last week. The take away is the Interest Rates is higher for longer. One of the conversations is we still dont know the full impact of what this cumulative monetary tightening has on the system. Monetary policy works with a lag. In your view, which parts of the economy or sectors are you most cautious of given what we know of how much tightening has been in the system . If we stay with equities, i think what is remarkable in the latest move in rates with the surge higher since the september fed meeting has not been displayed as the same characteristics when rates moved up. It was more of the highly levered which suffered heavily. It was not the Long Duration stuff. It is not the stuff which has earnings, but higher discount rate with rates moving higher. I think these are the non earners will be the ones to continue to suffer Going Forward if our scenario plays out. Even if rates were to come down, they would not manage to turn or break even or positive earnings in a weakening cycle. What we like more and i think that is an interesting position here which is the leverage names which have solid earnings. More defensive stuff like utilities or real estate in the u. S. Which has done badly with the leverage the sector has in terms of debt. Solid earnings Going Forward. We will think once earnings start to come down, these guys can benefit from an environment in which the earnings are still there and even in f the cycle i slowing. Brilliant. Thank you for joining me today on the show. Wolf von rotberg from sustainable asset management. Lets talk more about the companies we have been following today. Ericsson with the move down 5. 2 . Posted a 10 drop in the Third Quarter as lower demand for 5g in north america hit sales. It would not give guidance beyond the fourth youquarter as expects uncertainty to continue into next year. The ceo told cnbc he is confident sales will recover. Demand in north america has been weak and we are down 50 . We are 50 organically. It is because our customers are depleting the inventories to go through the inventory cycle as well as cautious on the rollout. What we know from experience is that will come back to more normal levels. It can take a couple of quarters or a bit more. The exact timing is hard to say because it is in the hands of the customers. What actually drives the need to invest is actually the traffic growth which continues at the high level. And lonza slashed the margin target next year citing the covid orders for moderna and lack of demand. It expects the margin of earnings to be in the high 20s rather than the previous target of 31 to 33 . Shares have come under pressure since the company cut outlook in july and depar ature of the ceo. The stock is down 9 today. Moving to the uk, rio tinto cited a rise in iron ore shipments. It is seeing the Strong Demand in china and the second largest economy is showing signs of stability. However, rio cut the annual output forecast for the canadian iron ore business due to the plant disruption. And rollsroyce has confirmed it will cut 2,500 jobs glo globe globally. It will merge the safety and tech teams into one unit. Speaking of the uk, lets touch on the macro. Regular pay in the uk grew by 7. 8 in the last three months to august. Total pay, which includes one of bon bonuses, grew 8 below forecast. The office for national st statistics published a small amount of the information this morning. Finally, renault posted Third Quarter brand sales up to 11 year over year. The carmaker announced it will reveal the International Strategy called game plan 2027 on october 25th. Sticking in the auto space on the programming yonote, we will hear about citroens strategy with the ceo with thierry koskas. Coming up on street signs, the humanitarian crisis worsens at the gaza border. We will discuss with the United Nations Spokes Person coming up next. Cmon, were right there. Cmon baby. Its the only we need. Go, go, go, go ah touchdown baby touchdown are your neighbors watching the same game . Yeah, my 5g Home Internet delays the game a bit. But you get used to it. Try these. Theyre noise cancelling earmuffs. I stole them from an airport. Its always something with you, man. Great solid greek salad . Exactly dont delay the game with verizon or tmobile 5g Home Internet. Catch it on the xfinity 10g network. Nice footwork. Man, youre lucky, watching live sports never used to be this easy. Now you can stream all your games like its nothing. Yes [ cheers ] yeah woho running up and down that field looks tough. Its a pitch. Get way more into what youre into when you stream on the xfinity 10g network. Welcome back. As Israeli Forces plan for a ground offensive in gaza, the war continues to grow. The border at rafah crossing is not open. The crossing is vital for evacuations of foreign passport holders and to bring in desperately needed supplies. Tanya is joining me at the desk. Tanya, there has been so much going in the region. Our next guest is in position to give us color on the ground. Thank you, joumanna. We are joined now by tamara alfari, the spokesperson for refugees. You are joining us from amman, jordan. Thous thank you for coming on street signs. We heard from u. S. Secretary of state Antony Blinken that there is a plan to develop between israel and u. S. Humanitarian aid to the civilians of gaza. However, there are concerns from the israelis that hamas will block the aid going in or actually take it. Im sgglad there is a plan. I would be glad if the plan is operational faster. As we speak, the largest aid agency in gaza is no longer able to assist or protect sicivilian. Especially taken being shelter in schools and buildings. We do not have the supplies or clean Drinking Water or food. We do not have hygiene kits. Mostly, we cannot move safely in gaza. That is a prerequisite for agencies to carry out their work. We need to be able to move across gaza safely and not be targeted or not have to lose more colleagues. We have colleagues in gaza. This is a heavy toll for us. Tamara, we are sorry to hear about your colleagues. Tell us about the civilians that are moving from north to south. Apparently nearly 1 million. What is happening to them . Exactly. Over the last two days, reports of 1 million people, that is a sea of people going south, moved using whatever means they could. Given the lack of fuel in gaza, they move by feet. The images we are receiving from colleagues is they are moving by feet and walking under air bombs and trying to find shelter in the middle and southern part of the gaza strip. My colleagues moved south and are now in one of our logistical bases, effectively a warehouse in the south of the strip. My colleagues are working and sleeping and eating whatever they find with around 6,000 civilians from gaza who have joined them in the building. The conditions are very, very difficult. My colleagues say in that building, they have access to one litre of Drinking Water per day. A situation which is really drastic. We have to get aid in. We have get supplies in. We have to get fuel in and mostly all of that access has to be safe and guarantees if my colleagues move across gaza, they will not die. Very clear, tamara. We are getting comments from the Israeli Military spokesperson that says no humanitarian ceasefire in gaza has been agreed at this stage. Let me ask you to go back to what you were saying. Clearly there is a need for urgent supplies of food, of water, electricity to helped the hospitals and schools running. What is the safest way to ensure that this aid does make it into the people and civilians who need it most . The safest way is to establish what we call in the humanitarian world a humanitarian cessation of hostil hostilities. This is an agreed window where all parties agree that convoys of aid will wbe going into gaza and whoever receives them, my colleagues, u. N. Agencies, will not be targeted the while organizing the distribution of water and food. Schools are not running. What we urgently need now is indeed fuel to produce electricity so the electricity can get the water plant to work so people can have clean Drinking Water. Otherwise, we really fear that were going to be running out of water and people will be dehydrated. Especially babies. This is our responsibility. This is a moral responsibility to get aid to gaza. Tamara, there is confusion at the rafah crossing. What is happening there on the ground . My colleagues are also in egypt because we want to lead that conversation about aid from egypt. What we are seeing is, indeed, truckloads of humanitarian supplies and donations. There is an immense sentiment of solidarity of the civilians in gaza at the moment and people are acceptsending a lot of dona. The u. N. Agencies and humanitarian communities that is made up of the u. N. , red cross and red credscent is gathering t the border to get ready once there is a guaranteed safe passage to go in. It is extremely important to be coordinated. It is extremely important to listen to listen to what humanitarians on the ground are listening which is food, water, fuel and nonfood like hygiene kits and hygiene products. This is very important, especially for hospitals that are completely running out of hygiene supplies. We do not want a hospital that is treating the war injured to turn into a place where there is Massive Public health risks because of lack of hygiene. Tamara, thank you so much. Thank you for shedding light on what is happening on the ground within gaza. Spokesperson for the United Nations relief and works agency for the humanitarian refugees. Thank you, tanya. For the update on the hamas war, go to cnbc. Com. Coming up on street signs, a wild session for bitcoin as rumors swirl around etf applications. Well discuss coming up next. 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We agreed to develop a plan to enable humanitarian plans to reach civilians in gaza. Markets in europe open to the upside tracking wall street and asia higher, but ericsson shares slump after a fall the in the Third Quarter revenue and declines to give guidance for 2024. The ceo tells cnbc he remains optimistic. Our customers are depleting the inventories to go through the inventory cycle as well as cautious on the rollout. That will come back to more normal levels. It can take a couple of quarters and a bit more. Investor tension turns back to wall street later this morning with Goldman Sachs and bank of america earnings on deck. Our colleagues will speak with bank of america Ceo Brian Moynihan at 16 00 cet. Welcome back to street si signs. We have been tracking the latest in the middle east. We have sky news joining us now. Alistair, what are the tensions spilling over into the west bank at this point . Reporter not really, to be honest. Certainly not in the way we may be feared they would do. Thats not to say the west bank isnt tense or violence is not continuing the west bank. It is the most violent year in the west bank for the last 20 years, 2023 has been. There have been a large number of palestinians killed in the west bank since 11 days ago. It hasnt caught fire in the way many people thought or predicted it would do. Thats not to say it wont and it is not to say that things are absolutely fine there and we shouldnt worry about it, but at the moment, the most severe violence is very, very much confined to gaza and the next front that is bubbling is the northern Israeli Border with lebanon and hezbollah on the other side of it. An area i know very well. Let me ask you this. There are reports that President Biden will be flying into israel tomorrow. What is the sense on the ground of what that means and are people hopeful that may lead to some form of restraint or possibly a ceasefire . Reporter really good question. Honestly, we are all trying to analyze what it could mean. Firstly, of course, it is a message of solidarity to the israeli people and Israeli Government. Our general analysis is it has to be more than that. You had Antony Blinken, u. S. Secretary of state, here twice. He stayed here last night as well and he has done this tour of the middle east to jordan and bahrain and uae and saudi arabia and egypt. So, why would you fly in the u. S. President into what is a very volatile situation at the moment if it is just to wave a flag and show support for israel . Is there more to it . We will have to see. I think arguably, the more interesting element of his planned trip is what you do in amman when he meets president abbas and King Abdullah and president elsisi from egypt. Certainly, the americans are more involved in this than they have been in past gazaisrael conflicts. You have the u. S. Commander of centcom here today. You have officials like Antony Blinken and lloyd austin and now the u. S. President. It boils down to the fear that what is happening in gaza is spilling out elsewhere. That is why that is the first question i asked you. Alistair, thank you for the comments today. Lets turn to markets now. You can see that even though we started off the session in positive territory in the last 20 minutes is where we have slipped south. All of the european indices trading negatively. We have the smi in switzerland down. 40 . Pharma news with the cut of sales guidance. The ftse 100 is the relative out performer. Rollsroyce is the main per performer in the british basket. American tech giants added 2. 4 trillion to the market caps in the past year as a. I. Fueled interest in the Technology Sector according to axl. The company sees signs of pressure easing on the global cloud sector after the challenging year in 2022. Im happy to say the partner of axl and the company that put together the report is with me. The major take is for me means it has been a good year for tech stocks, but on the public side rather than the private companies which are more involved in the startup and funding rounds. Talk through what has been going on with what you are seeing in public versus private sector tech. Thanks for having me. It has been very interesting in the past year to see how the technical system globally has been resilient and the rise of generative a. I. Which is defining every piece of software and that has a big impact into it. I think on the private side, it is fair to say we are now back to precovid level. If we look at the investments in private software and Cloud Company in the past year, we are around 31 billion which is very close to where we were in 2019. So it has been exciting to see how the ecosystem has bounced back quickly. There are two reasons for that. The first one is over the period of 20202021, Cloud Companies raised a lot of money. They had a lot of money on the Balance Sheet going into the reset. Then the second aspect is the fact that a. I. Is actually pushing the boundary of i innovation and that will continue to push the ecosystem for a long time. One other thing that shot out to me from the report is the u. S. Is leading the way from the funding deals with a. I. What does that tell you about the relative competitiveness of other nations around the world and they are actually falling behind the u. S. On generative a. I. Deals . I would say first that we are at the early innings of the generative a. I. Revolution. I think it is a bit early to take stock. I think a large amount of money has been invested into foundational models and thats where the u. S. As a lead with Companies Like open a. I. And anthropic and we look at the seven rounds, the u. S. Was 14 billion. Ten of that was open a. I. And in europe, it has been around 1 billion. There is a difference. However, when we look at the european ecosystem, you see there is a lot of talent in a. I. If you look at one of the most used texttoimage open source models, it was created by the lab in munich. There is a ton of talent in europe in this sector and if you look at the coming year, i think the investment the will shift from foundational model to a more specialized model by industry. Think about model targeting the Construction Industry and healthcare and targeting legal. As we move into the application layer, i think we will see the balance with the u. S. And europe shifting. So interesting. I want to ask about dealmaking. This ties into the bank guest later. We talked about the appetite for deals. There has been a tremendous dip in terms of ipo activity. Within the big tech space, you know there were only ten transactions involving a Big Tech Company this year. That is down sharply from prior years. In 2021, faang stocks led 27 acquisitions. Why do you think the ealmaking has moderated . I think as you mentioned at the beginning, big tech is getting bigger. When you are north of 1 trillion or 2 trillion of market cap and you want to make an acquisition to move the needle, it needs to be a big one. We have seen the regulatory pressure making this harder. We saw it with microsoft with the acquisition of activisionblizzard. If you look at the software landscape, it has been a pretty good year. You see a lot of m a activity. It is not just the five tech companies. Philippe, so interesting to get your take. For more on accels report, check out our latest story on cnbc. Com. Coming up on street signs, more u. S. Big banks are set to unveil the latest results before the opening bell today. We will discuss the latest coming up next. When we started our business we were paying an arm and a leg for postage. I remember setting up shipstation. One or two clicks and everything was up and running. I was printing out labels and saving money. Shipstation saves us so much time. It makes it really easy and seamless. Pick an order, print everything you need, slap the label onto the box, and its ready to go. Our costs for shipping were cut in half. Just like that. Shipstation. The 1 choice of Online Sellers. Go to shipstation. Com tv and get 2 months free. 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. From chrome to duckduckgo. Duckduckgo is a browser you download to your mobile and desktop devices. Unlike chrome, the duckduckgo browser has privacy builtin. It comes with a private alternative to google search, which doesn■t spy on your searches, and it blocks cookies and creepy ads. And theres no catch. Its free. We make money from ads, but they dont follow you around. Join the millions of people taking back their privacy by downloading duckduckgo on mobile and desktop today. Welcome back to street signs. More u. S. Banks are set to release earnings today. Bank of america and Goldman Sachs are set to release the latest numbers before the opening bell. Tomorrow, we will get results from morgan stanley. Im happy to say John Haggerty from redburn is joining us. I feel the results we got on friday from citi and Jpmorgan Chase and wells fargo were a good start to the earnings season. Maybe the expectations have moved higher ahead of the next bunch . That is right. The bar has been raised for the banks about to report. As you say, the results on friday were good news. The three were positive and it was a beat on guidance for the year. Credit remains better for this cycle. On capital, the banks are building on the capital as well. There is good news for the banks results on friday. Banks that are more commer commercially geared. Do you get a sense that the comments means we have reached Net Interest Income . I think the banks are prepared for the rates to go up. From the banks perspective, they are trying to make sure they are well positioned to benefit from the higher rates. What is interesting is if you look back, the Net Interest Income has moved from the lows of 2021. If they do come down a little bit, they will generate higher Net Interest Income as we go forward. For the banks, they are ambivalent. Lets turn to goldman. It hasnt been a good year for deal making activity. I was speaking to somebody on the show earlier. Despite losing focus, goldman is still very much a bank propped up by the trading business. To what extend is the general slowdown in dealmaking impacts the earnings today and how is that accounted for in terms of expectations . I think they do a good job of managing expectations. Everyone knows Investment Banking has another quarter and green shoots showing at the end of q3 particularly on the oem side. That is an xpectation. The goal for goldman is they had a strong q3 last year on the trading side. Trading results have been flat, but they could be down 10 to 20 for Goldman Sachs on the comp. That will weigh on earnings today with a few negative marks in the investments. To what extent do you think the chatter around extra capital has been hanging around . Definitely, the share prices are down during the quarter and despite that, we had pretty good numbers come through. If you have to increase your capital base by 20 , that has a negative impact on the rote as you go forward unless you take mitigating actions. The banks are uncertain how things pan out. The banks have been successful of the three reported in building up the capital levels and ill single out wells fargo with the extra 30 basis points last quarter. It is already at the levels it would need to be if the couple levels are brought in. They are generating wonderful capital. There are still discussions going on and they are trying to get the changes slightly modified. I do want to ask about the top pick. I was reading through the comments this morning and you have First Citizens bank up there. Talk about the rational oirksra. They were involved in the acquisition of svb. Terrific transaction. For them, it doubled the tangible book value per share. It improved their eps by 80 to 90 . All they need to do is try to hold on to the deposits and deliver on the expense targets. So far, that is going well. The q2 result. The only bank in positive territory in q3. Up 8 for the quarter. They were retaining the deposits from svb. I think as we move into q4 or in january, we should get a capital return as well. The kicker toward the end is the influclusion in the s p. It still trades cheaply. It seems to be the case. John, we will leave it there. Thank you for joining me today on the show as we look ahead toward other u. S. Banks earnings. John haggerty, partner from redburn atlantic. We have our u. S. Colleagues speaking to Brian Moynihan at 16 00 cet. Lets navigate to the session where the optimism has faded. All indices trading in the red. Ftse 100 and cac 40 is d down. 20 . Rollsroyce is a name we are looking out for today at the top of the ftse 100. More generally, we are seeing a lot of weakness today in telecoms. Ericsson is a name we are watching. Pharmaceuticals as well after the deep reaction in the marketplace. Sw switching to fx with currencies. The pound is 121. 50. We have started to see that private wages are beginning to moderate although real wages have moved positively. The trajectory is on a more negative standpoint. Finally, lets look at yields. We are beginning to see upward movement in yields today. I was talking about this earlier. The spread between german bund and italian bond yields is something we are watching. As we leave you, ill leave you with a snapshot of the u. S. Futures. All three majors opening up in negative territory. Im Joumanna Bercetche. Worldwide exchange is coming up next. Meet the portable blender we can barely keep in stock. Blendjet 2 gives you icecrushing, big blender power onthego. So you can blend up a mouthwatering smoothie, protein shake, or latte wherever you are recharge quickly with any usb port. Best of all, it even cleans itself just blend water with a drop of soap. What are you waiting for . Order yours now from blendjet. Com before they sell out again ah, these bills are crazy. She has no idea shes sitting on a goldmine. 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