Transcripts For CNBC Street 20240703

And humanitarian aid enters the gaza strip as the conflict with hamas stretches into its third week. Israels president defends its actions. It is easy to blame israel. Remember what happened and we have the rate toight to defend ourselves. Corporate earnings season kicks in high gear with 30 of s p reports this week as investors hope big tech helps markets out of their slumps. Good morning. Welcome to street signs. We will kickoff with Global Markets. A lot of focus on the events in the middle east. We have not seen a major escalation, but investors are worried about the risk of a broader conflict within the region with the likes of hezbollah and lebanon and iran getting involved with israel and hamas. Big focus for the Investment Community. Asia markets trading in the red. Shanghai down 1. 5 . Below 3,000. This is the lowest level the chinese index has been since the pandemic. We are at the prepan demdemic now. We have come back which tells you how investors are viewing the chinese stock market as we talk about the faltering recovery on china with the geo he political concerns. The shanghai composite is down 1. 9 . Taking the cue from wall street. Nikkei is weaker on the session today. Oil minors and chipmakers under pressure as well. Lets switch to europe. A lot of red on the board. Perhaps not as much as the Asian Session, but broad based. Cac 40 down. 40 . Germany is down. 60 . Volkswagen is announcing a downgrade for the year. We are seeing the automakers in europe with volkswagen and renault come under selling pressure. Ftse mib is down. 30 . We got the rating review on friday unchanged which is a positive, but given the riskoff sentiment, we are trading in the red. The ftse 100 is down. 60 . We have consumer names rep reporting. The ecb on thursday and we have the flash pmi tomorrow. In terms of sectors, this is where leadership is coming from. The only patch of green is retail up. 25 . Real estate is coming under pressure with the move in yields. Basic resources is down 1. 7 . Lets talk about yields. This is the picture for bonds today. We have the bund up a couple of basis points. 2. 92 . Tenyear gdp is moving up. 87 . This prompted the bank of japan to perform a stabilization buying opportunity. Last week, we got to 5 . Just to give you an idea of how much the u. S. Yields have traveled and the tenyear treasury fell on friday, but they were up 30basis points for the year. This tells you how much the u. S. Curve has steepened. How has this impact ed the mood today . All of the majors are seen opening up in the negative territory. We have the weak hand over from the european markets and asian mar markets. It is shaping up to be a busy week with 35 of the s p reporting. Microsoft and alphabet kickoff tomorrow and investors hoping this tech earnings continue on wednesday and thursday with meta and amazon and intel all set to report. We are also set for another big earnings week in europe. Some of the regions biggest names reporting with big banking names tomorrow from barclays and unicredit. Wednesday is another big day for banks with results from santander and lloyds. Thursday will see results from totale and volkswagen. Before we close out the week, we have nat west and iag. That is not all. It is poised to be a data driven week as well with the key releases. Flash pmi is tomorrow and eurozone. We have the ecb decision as it happens on thursday and on friday, we get the Third Quarter gdp from spain. We have our representative from kepler. Lets me start out with the question of how you are advising clients positions into earnings season . Good morning. We have been advising clients to be cautious. We had the geopolitical tensions rising much higher with the hamas attack on israel. Of course, this is not helping at all with risk assets. This is consistent with the previous message to invite investors to push further into the defensive sectors and on the more cash position and revisit the Long Duration with yields which are starting to be attr attractive. Lets unpack that thesis of switching to yields here. I was talking about the moves in u. S. Treasury yields last week. A lot of focus with the tenyear yield getting to 5 . It feels many players are hesitant still to get involved simply because they have shortterm memories and moves have been astounding in last couple weeks. There are also concerns of the downgrades with the fitch move a couple of months ago and in addition to the fact that the major buyers of u. S. Treasuries, like china, are no longer active in the space. What is your counter to that . Thats certainly right. You mentioned all of the risks. I think on the upside, we have a situation where this higher for longer rate is more likely to increase the risk of recession in the u. S. Of course, everywhere else, europe to start with and you see the European Data is starting to weaken for a few weeks. We are on the verge of recession in europe. China is not growing as expected. U. S. Is still looking strong, but it is consumption driven. We see the first sign of the investment part with more Interest Rate sensitive part of the economy is starting to weaken. Overall, you are contemplating not right here and right now, but if you look beyond the next six months, you are looking at a cooling off economy and thats more favorable to defensive space and also as you said we are at 5 . Shortterm volatility on the duration is not helping investors. Of course, you have to trail it a bit. 5 is starting to be attractive. Arnaud, take into account you switched prefers from equities in the last couple weeks, i want to look at the sector you like which is food and beverage. This stands out because in recent weeks and months, we talked about the Investment Community which is bearish on the food and beverage stocks on the back of the class of weight loss drugs. If more people take the drugs, there is less demand for food and befrverage. What is your counter . The counter is a risk that will spread for some time because not everybody will take the drugs at the same time and still it is expensive in the u. S. Of course, if you are just a pure food manufacturer selling very, very dirty or junk food, you are in trouble. That is clear. I think thats a lot of the big food manufacturers which are precisely trying to go in the opposite direction and they have been doing so for a long time. This trend of fighting obesity has been going on for years. They all trying to move into healthy Food Consumption pattern. Outside of that, on the beverage space, we had very weak margins. They had it all basically with the cost of glass and aluminum and the cost of cereals. You process cereals to make beer. They have a huge headwind on the margins and now things are settling down a little bit on the cost and they passed price increases on. We enter the point where margins are progressing. If you look at the sector r ratings, we are driven by the outlook of the various sectors. Let me pick up on that. We are heading into a big earnings week for many of the blue chip stocks within the european index. What are you watching out for . Do you think it matters in the context of what the indices are going or will the macro prevail . So, you are right. It is a very the second question is a very relevant question. I think with the earnings season in the u. S. Will be dehe cdecen. I think europe looks different because in europe, we have a sixmonth delay with the inflation force we have seen in the u. S. Inflation, because of the ukraine war last year in europe, has been six months later than in the u. S. So, now we are in the face of europe with inflation falling very fast. That happened before in the u. S. This is the worst moment for company margins. The price impacts will fade out and volumes, across the board, are pretty weak. Thats not a good place for european earnings. U. S. , as i say, is in a better place. In particular, all of the advertisers linked Big Tech Companies and will do okay and advertising trends remain healthy. Again, as you say, there is the macro back drop. That is the political crisis and it makes the overall equity asset class very vulnerable. Arnaud, thank you for joining us. Great to hear your views on the important week. Volkswagen has slashed its profit outlook after taking a hit from the raw material hedges. In the preliminary results released after the close on friday, volkswagen took a 2. 5 billion euro noncash hedging loss. Dragging down the automakers in europe. Philips hiked sales in the margin outlook for the year after the Third Quarter core profit of 457 million euro. The health tech Group Expects sales to rise 6 to 7 for the year and adjusted ebita margin of 10 . The ceo told cnbc the uptick in earnings will help drive investment in the health sector. We are focusing on improving the bottom line and the cash into the company. Compared to last year, where we had a very strong profitability, we now are doubling the profitability as we move forward, we have the investment with healthcare. Healthcare is under pressure. There are shortages in labor and pressure on funds. We need to step forward with our technology to help them deliver better products. Roche is in focus in the pharma space. It struck a deal to acquire telavant holdings. The swiss drugmaker will have the rights for the therapy of inflammatory bowel disease. It was formed back in 2022. Shares are trading marginally higher this morning. It is outp performing the broadr market. Joumanna, this is not a huge shock to investors. Wall street journal reported this deal was possible. Roche was in talks for a deal of this size. They got the valuation right over 7 billion. I think to put it in context. 7. 1 billion deal. Roche is over 219 billion euro of market cap. It is not a transformational deal, but the key is investors are frustrated with roche with the lack of advanced drugs in the pipeline. This is designed to bolster the pipeline. There is a challenge for pharmaceutical companies. They look to invest in r d internally and make a bet on the products being successful. In terms of roche, they havent, but they are looking to invest with acquisitions. They opted for the latter in this case. You and i have spent a lot of the last couple months talking about novo and it just feels like all of the excitement right now within the pharmaceutical industry is the obesity drugs and less so about the traditional drugs. You look at the share price of the majors. Novo has out performed all of the companies on the chart there. With astrazeneca, roche has out performed in the last year. The reason has been lack of confidence in the pipeline. They suffered setbacks in the past year. Roche was big in covid dia diagnosing and that has begun to fall away. Of course, as warned by pfizer with the move down with pfizer and biontech. Also coming up on street signs, today, humanitarian aid rolls into the gaza strip as president herzog speaks out about defending his country. Well have that next. Has over 40 flavors, so your water can be as unique as you are. Try cirkul. Your water, your way. Now with even more flavors. Available at walmart or drinkcirkul. Com. Shipstation saves us so much time it makes it really easy and seamless pick an order print everything you need slap the label on ito the box and its ready to go our cost for shipping, were cut in half just like that go to shipstation tv and get 2 months free this halloween, trick or treat yourself to the blendjet 2 portable blender. Its to die for. Blendjet 2 gives you monstrous power for a delicious smoothie, shake, or frappe anytime, anywhere. Cleaning blendjet 2 is scary easy. Just blend water with a drop of soap. Recharge quickly with any usb port. Boogie on over to blendjet. Com and order yours today. The power goes out and we still have wifi to do our homework. And thats a good thing . Great in my book who are you . No power . No problem. Introducing stormready wifi. Now you can stay reliably connected through Power Outages with unlimited cellular data and up to 4 hours of battery backup to keep you online. Only from xfinity. Home of the xfinity 10g network. Heres why you should switch fo to duckduckgo on all your devie duckduckgo comes with a built n engine like google, but its pi and doesnt spy on your searchs and duckduckgo lets you browse like chrome, but it blocks cooi and creepy ads that follow youa from google and other companie. And theres no catch, its fre. We make money from ads, but they dont follow you aroud join the millions of people taking back their privacy by downloading duckduckgo on all your devices today. Welcome back to street signs. Israeli soldiers are continues with air strikes on the gaza strip. Over 6,000 people have been killed on the gaza strip according to the palestinian minister of health. Humanitarian aid has entered the gaza strip for the First Time Since the siege. A convoy entered the rafah crossing with food and water and medical supplies with 14 trucks crossing on sunday. President biden and Prime Minister Benjamin Netanyahu agreed the aid will continue after holding a call on sunday. Israeli president herzog sat down with our sister station sky news to discuss the siege. It was the breakdown of the electricity in gaza. Nothing to do with us. We supply 70 of the water. It isis hamas operation. There is fuel. We are following closely the humanitarian situation on the hour. Most of gaza is functioning. This is a real tragedy. How does the world you cant say it is functioning. How does the world cope . A lot of distorted information comes from gaza. We cant say geoaza is a functioning territory. The problem is part of the infrastructure and part of the aid is hijacked by hamas. Thats the issue. Guys, its easy to blame israel. Remember where we were and what happened and we have the right to defend ourselves when a missile flies 250 kilometers straight to israel straight for peoples living rooms. That is what we are faced with that. No other nation is faced with that. If any other nation were faced with that, they would reply the same. Rallies took place all overed world with 100,000 people taking to the streets of london. The metro police say the majority of demonstrations happened without incident. Other rallies were held in los angeles and malaysia as well as other countries. Lets bring in our fellow from chatham house. Thank you for joining us on the show. We hear lots of talk about israel preparing for ground offensive in the gaza strip. The stated aim a couple of weeks ago when israel started the retaliation from the hamas attack was to neutralize the military abilities. Is this achievable given we know hamas leadership is not inside gaza and at what cost to human life . Good morning. Thank you for having me. Two weeks is a very long time in politics and definitely in war. Yes, the instant reaction and not surprisingly to wipe out hamas all together and it would never have the military capability to ever repeat what happened in israel on the 7th of october. Obviously, events take over and right now, everyone understands that wiping out hamas is not a matter of just bombing gaza or the offensive on the ground, but you have to deal with hamas as a military force and hamas is a Political Force and idea. You need to deal with all of that. At the same time, we see the magnitude of the destruction and death among palestinians right now. The humanitarian crisis is a disaster and is unacceptable as well. How you reconcile between all of this reducing the cassidys and suffering of palestinians, but at the same time, ensuring that hamas is not capable is a challenge. I thought it was interesting over the weekend there has ban agreement to allow some form of humanitarian aid to get into the strip. Less than 40 trucks. Some humanitarian aid has come in. The International Community with the u. S. And germany and france have stopped short of calling for a ceasefire. Why do you think the International Community is stopping themselves from actually calling directly for a ceasefire . Well, some humanitarian help is better than none. This is a drop in the ocean. 20 or 40 trucks makes a huge difference. You need 100 a day. I think its not only israel going through a huge trauma, but the m the middle east is going through a huge trauma because of hamas. It is really an existential threat of how you deal with this kind of Political Violence and whether it will spread beyond. We saw it with isis and al qaeda. I dont think we have a good response to that. Our instinctive response is to use a lot of force. We should remember what President Biden said in israel. Dont repeat the same mistake we did, we in the sense of america, in 9 11. It is not about avenging and revenging. The only way to deal with it is military. Part of the silence is to see how much is achieved militarily, but it is a matter of hours and days to understand that killing thousands of thousands of palestinians is not the solution. Not innocent people. The most sophisticated approach to dealing with hamas. Why the conditions were allowed to fester is the question. Let me come back to the point you were making in the first comments there around the duration the conflict is likely to take. Is there any peaceful or short solution here . Is it guaranteed to be a longterm conflict . How longterm are we talking here . There is no magic wand in the conflict. The fact that terrorists with occupation and blockades and there is no twostate solution and we expect someone to break it. What hamas did should be condemned outright. No one should commit such terrible atrocities. We need to look how we got to this spot. For weeks now, we need some level of military operation and violence from both sides. Most importantly, we need to look at the political solution for afterwards. For this, you need to go to the root causes of the conflict. This is going on not 75 years now, but it goes back hundreds of years. This needs to be reconciled. You need leadership on both political evnentities. You need peaceful existing. Twostate solution and onestate issues. You need to understand that violence will breed more violence and bloodshed. Thank you for your analysis. I appreciate it. The associate fellow of chatham house. As a reminder, for more on the israelhamas conflict, follow our live blog on cnbc. Com. Also coming up on the show, italy marks one year with Giorgia Meloni in power. We will discuss her first year and what is next for rome. Well be right back. 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Futures point to an uncertain future after the dow wiped out the gains for the year. In the health space, philips shares decline despite the upgrade and earnings beat and roche signs a new deal for televant. Israeli forces step up air strikes as the conflict with hamas stretches into the third week. Israeli president herzog defends his country. It is easy to blame israel. Remember where we were and what happened and how we have the right to defend ourselves. No other nation is faced with that and had any nation been faced with that, they would have done the same thing. Corporate earnings season kicks in high gear with big names reporting as 30 of the s p reports in the coming days. European markets have been open for an hour and a half. We are off to a fairly downbeat start to trade for the earnings week ahead. Ftse 100 is down. 40 . Dax is down. 50 . Green on the board for the ftse mib. Up. 20 . We are looking into it an ali in into italy in a couple of minutes. We have deal news in the pharma space with roche in focus. The swiss giant announcing a 7. 1 billion deal for a Biotech Company and they are in the process of developing drugs for inflammatory bowel disease. We did get a pop at the open, but turned negative. The company that owns the biotech that televant is moving higher. It is near a 222 billion market cap company. Clearly, this is a notable one for the target that isis acquir. We have all three majors pointing to a weaker start today after the down session on friday in the u. S. Closing out the negative week for wall street as investors brace for a number of big tech earnings in focus this week on what is a blackout period for the fed. We wont get Monetary Policy comments this week. In ratings news, s p has affirmed for uk and italy and upgraded greece since that crisis in 2010. S p cited the stronger budget positions and expects Government Debt to reduce. Italy avoided a downgrade staying above junk despite Giorgia Melonis moves. And Italian Economy has remained in focus. Italys government approved a 2024 budget with 24 billion euro in tax cuts and spending which delayed the plan to hit the eu deficit target by a year to 2026. This as Giorgia Meloni marked the First Anniversary of the swearing in as Prime Minister on sunday and approaching the 14month average month of postwar government. The professor of Political Science joins us now. Good morning, lorenzo. I looked at the polls this morning and one thing points out to me is how stable they have been in the last year. If anything, pd has gained. There hasnt been that much shift in terms of the elected support to the governing parties. You could say for Giorgia Meloni, it has been a successful first year. Yes, it has been. We may see this is the result of her idea of not rocking the boat too much. That is to say there were fears over her government being a threat to democracy. Instead, she was expected from the campaign. The Main Campaign slogan was ready to govern. She essentially played a loose Silvio Berlusconi 2. 0. Not doing too much. How do you think businesses view melonis first year . I think as you said the slogan was to get to work and to be supportive of businesses. Yet, there have been a couple of gaps as along the way with the business tax. How do the businesses and Enterprises View this government now . You have to first take into account the italian business landscape. We have a lot of large business, but at the same time, there is a number of small and medium businesses and selfemployed. What she basically did was on the one hand took measures toward small and medium businesses. Their government extended tax cuts to an higher income level with specific advances for the self employment tax. There was a point where she considered tax excessive profit for banks. That measure was watered down because there were reactions by big business. In a way, it might be the mixed relationships, but at the same time, what is clear in italy is the center right is always more favorable to businesses large and small than the center left. There is the fear any Center Left Government will present and introduce more taxes. This is why i say this is an ongoing stable relationship sony government from the center right will be better from center left. She is benefitting from that. Lorenzo, there were a lot of jitters when meloni came to power with the relationship with the eu under her tenure. It is actually conciliatory and she has worked closely with von der leyen. Would you say thats fair or are there tensions around her conciliatory approach . It is fair. In a way, she turned mainstream. They took quite staunch approach stance on the ukraine war. She developed a Good Relationship with the Commission Management and with president von der leyen. She is trying to mark the difference on immigration and discussions with other european partners. She is trying to preserve that the first right wing government in years would bring change. At the same time, she is developing Good Relationships. This is one of the reasons why she enjoys good press in italy from the Mainstream Media and good atlantic relations. The thing is she managed in a way to take some symbolic positions with the rightwing stances on civil rights and immigration and on some discussions over the need to introduce more rightwing culture on public tv compared to the domination of leftwing culture. These were symbolic moves in order to compensate the fact that she is mainstream in terms of foreign policy. She played it mainstream so far. What do you think her priorities are now . What is top of her agenda . I would say that the thing is now where she may be defensive agenda. That is to say first of all to manage her economic plans to make sense in terms of constraints. The point here is that this is the first budget law that the meloni government is approving. The first was designed bit previous draghi government. This is the first test of what will come out of the new budget law. Are these measures going to come out . How will she deal with inflation with problems of growth . In is going to be the major challenge. Then, i think, in terms of foreign policy, i think shell be trying to have as little trouble as possible. Not take too much initiative, but follow along the lines and then there is the challenge of the european elections in a few months. In that occasion, first of all, there is the opportunity which was more or less openly discussed to bring her European Parliament group, european conservatives, closer to the majority and possibly one of the supporters von der leyen would be a huge success for meloni. At the same time, there may be tensions within her coalition because there are signs that the old Berlusconi Party may be unhappy with her policies. As a result, we can expect strong competition in the next european elections because european elections are disputed under a electoral system which forces Coalition Partners to exacerbate differences. This is what we can expect in the coming months. Thank you, lorenzo. We have to have you come on in a couple of months. Professor of Political Science from luiss university. Argentinas coalition has beaten expectations taking the lead in the general elections. This has set the stage for a runoff vote in november with current minister massa and farright libertarian. Massa has 36 of the vote and mala has just over 30 . I would say a bit of a result here, julianna, mainly because the finance minister performed way better than the polls suggested going into this with the new personality on the right which emerged and garnered a lot of attention from the press as well. Milei came in with the radical policy of looking to fully dollarize the currency and lash spending by 50 . He did as well as the first round. In the runup, you see devaluation of the currency. It is 40 weaker over a month ago. It tells you the country was nervous of the prospect of milei. Ironically, it is the ruling party which has done better and the market seems on to think that perhaps this may be a better outcome for the economy. What a situation. Looking at the language that milei uses with the headlines. He pledged to take a chainsaw to the economic and political status quo. A lot of radical change here. I feel the Investment Community is looking for radical change. This is the irony of it all. This big claim to dollarize the argentinean economy works with enough dollars to finance that. It doesnt. They are left with deficit. On the back of that, the Investment Community, although the official currency is trading 350 pesos to the dollar i was in argentina at the beginning of the year and the Exchange Rate was 300. It lost value. 40 of people are living below poverty line. Triple digit inflation. A solution was needed. That makes it surprising that the incumbent, the president is mr. Fernandez, but the finance minister has gained the most in the first round. The second round is november 19th. It will be interesting to see which way the wind blows. The markets will look at it as positive today. That is counter to what you initially would think. If you want to get involved in the conversation or have anything to say about argentinean elections or italy, tweet us cnbcjou. Still ahead on street signs, we will look at the importance of phosphates on the importance of food on store shelves. Stay with us. You deserve better than that. Im hungry, im in a hurry, i dont have time to make anything healthy. You could if you had a blendjet. Blendjet . Its the portable blender that makes the healthy choice the most convenient choice. I dont know. It seems like a hassle. Hahaha wrong. Just pour in some milk, add some frozen fruit, and bam youve got a nutritious and delicious smoothie. Mmm that is good. Youre welcome, sad office guy. Get yours today at blendjet. Com are we in in an ad . We sure are. 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. 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. Shipstation. Heres why you should switch fo to duckduckgo on all your devie duckduckgo comes with a built n engine like google, but its pi and doesnt spy on your searchs and duckduckgo lets you browse like chrome, but it blocks cooi and creepy ads that follow youa from google and other companie. And theres no catch, its fre. We make money from ads, but they dont follow you aroud join the millions of people taking back their privacy by downloading duckduckgo on all your devices today. Welcome back to street signs. The price of food fertilizer has more than doubled the last year over raw materials. One country that could play a role is morocco which has phosphate reserves. You may have seen that sylvia joined us at the desk. Tell us what you learned. We had a chance to go to the Imf World Bank last week and we are looking at the fascinating organizations with 70 of the phosphate reserves. Without these minerals, we might have the same food fertilizers. Morocco could play a Critical Role in food prices. About an hour north of merrakech has 70 of the Global Reserves of this mineral. What are phosphates and why do they matter . Phosphates are saedimentary roc. It is crucial for agriculture. Phosphorus, along with nitrogen and potaspotassium, is used in fertilizer. Without phosphates, many farmers might struggle to get good crops. Farmers may choose to use less fert fertilizer. This will reduce yields and quality of crops which then reduces the amount of available food. This, in turn, translates into higher food prices. China, africa and United States are among the biggest importers of phosphorus for the farming sector. Moroccan group is the largest phosphate fertilizer country and States Africa holds the key. The Global Leader in phosphate fertilizers. We are the custodians of 70 of phosphate reserves. We are strong believers that africa could be part of the solution with the global Food Security. The potential is huge. It is critical to keep in mind that phosphates are used and important in the context of the energy transition. Phosphates are used for lithium iron phosphate batteries. It ises alsoes it is in thist to remember this. My Neighbor Calls me the plant killer, but it sounds phosphate is crucial for getting to the Food Security because it provides technology to advanced Food Development and agriculture policies. Im surprised we dont hear more about moroccos essential part in the Food Security chain. True. It is huge. 70 is a huge more than Global Market share. When it comes to phosphates ouphosphates, one reason it is special is you cannot create them in the lab. You need to use what the earth makes available to us. Within that in mind, also important is the role morocco plays here. Sylvia, it is on cnbc d. Com . Yes. Brilliant. Thank you for that report on phosphates. You can watch it on cnbc. Com. Lets look at european markets. You can see although the hand over from the Asian Session was negative, but what we have seen in europe is a turn around. Two indices in the green. Ftse mib is up. 25 in italy. This after i suspect positive news from the s p on friday with no change in the outlook or rating for the Italian Economy d despite the wider deficit. Cac 40 is up slightly up. 02 . Lets look at wall street and how it is poised to open. We have red across the board there. Dow looking to drop 70 points at the open. Nasdaq is looking to pull back slightly as well. This after all fthree majors sod off friday. S p dropped 1. 3 with all 11 s p sectors negative led by energy and tech on friday. It is a big week, joumanna. A lot could change depending on the big tech names due to report this week. A lot going on in earnings. Europe as well. We have plenty of earnings from luxury banks. Ill report from unicredit. Dont forget ecb on thursday and flash pmi numbers. A lot to watch out in the u. S. With pce. One notable piece of the market narrative which has been critical over the last several weeks is the fed. Not this week. We are in the blackout period ahead of the fmoc meeting next week. This will give us a chance to look at earnings. Keep an eye on global yields. Tenyear yield close to 5 . That is having ramifications as we head into the earnings season as well. That is it for the show today. Im Joumanna Bercetche. Im julianna tatelbaum. Worldwide exchange is coming your way next. This halloween, trick or treat yourself to the blendjet 2 portable blender. Its to die for. Blendjet 2 gives you monstrous power for a delicious smoothie, shake, or frappe anytime, anywhere. Cleaning blendjet 2 is scary easy. Just blend water with a drop of soap. Recharge quickly with any usb port. Boogie on over to blendjet. Com and order yours today. Hi. 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We will tee up the key numbers to watch. Also israel is ramping up strikes against hamas as humanitarian aid continues to flow into the gaza strip as the conflict enters its third week. Plus, we hav