[music playing] that's all for this edition of "dateline." i'm craig melvin. thanks for watching. [music playing] ♪ good morning welcome to "street signs." i'm frank holland with silvia amaro. these are your headlines european equities line up the biggest drop in six months following asian stocks deep in the red. u.s. futures dip with the early trade after the selloff stateside with the yield hitting the five-month high and following the red-hot retail sales print pushing the fed rate cut expectation out further.

chinese gdp tops forecast by a wide margin in the first quarter, but it paints a mixed picture for the second large of the economy. and tesla slashing 10% of the work force as shares hit a six-week low good morning it's the second day of the trading week here in europe. there's a lot happening. now, i want to take a quick look at what is the market picture at this stage we have the stoxx 600 currently lower by 1.2%. what we are seeing here is a continuation of the move we saw stateside yesterday and earlier from china as well there are a couple of dynamics

we have the geopolitical concern with israel responding to the iran attack over the weekend and on top of that, we got retail sales data from the united states yesterday that basically pushed back expectations of a first rate cut by the fed. let me show you how we are looking in terms of the geog geographical spread in europe. all of the boards are trading lower. looking at the ftsz we 100 whics down 1.3%. we got uk labor market which paints a grim picture. at this stage, it pefeels equity investors are shrugging off the data from china today. the gdp number was above what

markets were expecting that does not seem to be the focus for investors at this stage. i want to show you the sectors at this stage in the european session. all of the sectors are trading in the red telecom is out performing the market one dynamic is we got earnings from ericsson this morning it is boosting a bit in that sector, but not enough to put it in the green at this stage at the bottom, we have basic resources down 2.5%. significant moves when it comes to basic resources some concerns there about weak metal prices which is infl influencing the sector as well as we are tracking airlines. some airlines had to cancel flights over the middle east region because of the geopolitical uncertainty

we heard from lufthansa which slashed the outlook for the year when he itit comes to the bond market, it is forimportant to se the data from the united states and the comments from the fed officials. we have the ten-year note in the u.s. yielding 4.63 it is worth knowing we will hear from the chairman of the fed reserve jay powell later today we are monitoring a diversion with the u.s. bond yields and european bond yields we are seeing a bit of divergence there it is is worth keeping in mind e expectations for the fed and the ecb which are different at this stage. when it comes to other u.s. futures, i wanted to take a quick look at what is happening there. they are pointing to a mixed open on wall street and worth

remembering that retail sales data yesterday have put some pressure on the equity space we saw all of the major indices st stateside in the red, frank. >> futures are a bit mixed after a selloff in the u.s one factor is u.s. retail sales were above expectations in march. it jumped 0.7% from the month previous february's monthly growth figure was revised higher to 0.9% which was up from 0.6% a 50% increase right there the chief u.s. economist at jpmorgan chase said the data has not changed the lender's house view and when the fed will begin cuts. >> we still have them cutting in july, but if it is tough and if they don't get a cutoff by then, they may start in december a lot of data to go between now

and the election the latest data, clearly, would not suggest easing, but we'll have to see when we get moving. >> jpmorgan chase sticking with the july forecast, but san francisco fed president mary daly said there is no rush to cut rates. she spoke at the stanford institute for policy research that policy is in a good place daly said the worst thing to do is act urgently when urgency is not necessary. >> we have fresh lines from the ecb. if the june assessment in terms of inflation data confirms convergence toward their target, they could cut interest rates. we are hearing from the ecb member is very much confirming the sentiment that we got from

the ecb at the last meeting. if the data moves in the right direction, they feel comfortable they are in a position to cut rates. worth keeping that in mind thch because they are getting information stateside and they will get comment with the rate policy. >> you cover that meeting closely here on cnbc they seem to be telegraphing that june being closely. they will cut sooner than the fed. >> absolutely. that retail sales figure you were mentioning is pushed back the further expectation from the fed. >> the question is what will jay powell say today >> exactly coming up, the economist and credit analyst at pimco. we will talk about what is going on in the bond market, but the u.s. economy nicolai, good to see you.

>> good morning. >> we will jump into this. the inflation forecast for the u.s. stands at 2.5% to 3%. that is well above the fed target you said the fed will normalize this year. we hear every fed official coming out with this, that and the third. what does that mean in this situation? >> i think certainly inflation in the u.s. is likely to prove for sticky in our minds compared to other developed markets europe specifically because of the resilience with the economy there will be normalization going forward. remember the inflation pressures driven by the supply side during the pandemic which have been easing you are seeing a normalization in the labor market with the excess vacancy

normalization means core pce and inflation is what the fed focuses on and moving 2.5% to 3% area it is not a tar get, but it is moving in the right direction. that last mile to get to 2% is the issue. >> when do you expect the rate cut after that red-hot retail sales number we have jay powell speaking in the u.s. today it is becoming harder and harder to predict where do you stand when does the first rate cut come >> it is becoming more uncertain after the signs the last few miles is hard. we expect a couple of rate cuts this year. probably starting not long after. that is still our expectation. there is still no doubt risks are rising that the fed will have to wait longer. >> i want to take your thoughts

on the bond market the difference with the u.s. and europe at this stage with the expected different spooeeeds fr the central banks. we are seeing european yields rising, but less compared to treasuries what is the outlook for this part of the market when you hear the ecb is likely to cut in june, but the fed probably only later this year? >> one big thing we are focusing on is the divergence with the u.s. and the rest of the developdevelo ed markets we see the u.s. resilient with more fiscal cues in the tank from the pandemic. there is less competition from china compared to europe you have a.i. and the investments to support the

economy. you have the u.s. election that will deliver something which is positive for u.s. growth versus others given that, i think we have more confidence on the cutting cycle starting soon and being deeper in europe compared to the u.s. in the case of the ecb that we were talking about before, we see the first cut in june and we see about three rate cuts for the year in the case of the bank of england, probably a similar picture. when it comes to bonds where we have a reasonable amount of conviction is the bonds in the economy which are more interest rate sensitive like u.s. and australia and canada are those where we see performance with the economies having cutting cycles which are deeper than the fed, but the market at the moment is not pricing that it is pricing a similar picture for the economies. we think there is an opportunity there. >> i want to bring the

conversation back to europe. in some of the analysis, you made the comments that europe faces a lot of long-term headwinds, but germany is exposed. when you think of the benchmark bund, how does that play with the rest of the bond market? >> i think when it comes to europe, if you look at bunds, this morning, we are at 2.25 and you compare to australia or u.s. or canada with bigger opportunities, you would see european duration being fair here you have nearly 4% in the u.s. uk is similar at 3.50% or so for the ecb, you have a terminal rate price of 2.25%. now it looks to be too high on the relative paces

basis. i think european duration can perform. there is no doubt the recession risks remain higher in europe than the u.s i would have less of a strong view on bunds than gilts >> interesting we'll look at the gilt market in a moment that was nicolai mai at pimco. thinking about the uk, uk wage growth came in hotter than expected in the three months to february with average earnings without bonuses up 6%. jobless numbers came in at 4.2% which was slightly higher than

expected the exchequer spoke out. >> it will continue to be the case i'm confident as we approach the next election that people will feel better and we cut national insurance which is 900 pounds injection to your pockets. radically improving our child care system. we are doing a lot to help. coming up on the show, china's growth is ambitious, but there are ncnscoer still remaining. we'll have details next. uck home i knew there would be a lot of orders to fill and i wanted them to ship out fast that's why i chose shipstation shipstation helps manage orders reduce shipping costs and print out shipping labels it's my secret ingredient

shipstation the number 1 choice of online sellers and wolfgang puck go to shipstation.com/tv and get 2 months free switch to shopify and sell smarter at every stage of your business. take full control of your brand with your own custom store. scale faster with tools that let you manage every sale from every channel. and sell more with the best converting checkout on the planet. a lot more.

take your business to the next stage when you switch to shopify. i don't want you to move. i'm gonna miss you so much. you realize we'll have internet waiting for us at the new place, right? oh, we know. we just like making a scene. transferring your services has never been easier. get connected on the day of your move with the xfinity app. can i sleep over at your new place? can katie sleep over tonight? sure, honey! this generation is so dramatic! move with xfinity.

welcome back to "street signs." let's look at the data we got out of china this morning. it indicated that the chinese economy grew faster than expected in the first quarter. gdp pricine rising 5.3%. that is bigger than the forecast. the country's national bureau of stats said consumer inflation is

recovering, but the foundation of economic stability is not solid. beijing had set a growth target of 5% for the year. despite the gdp beat, key chinese data missed expe expectations. retail sales grew 3.1% in march and industrial output rose 4.5%. well below the forecast. i'm pleased to say the chinese economist at the eiu is joining us on the show. good morning. firstly, i would like to get your thoughts on the print from china. we got a mixed picture on the economy performing. how do you look at today's data? >> thanks for the question. i think you are right. china's gdp performance beat the market expectations and china's economy was a strong start. however, it is important to highlight that the improvement in the fundamentals remain

fragile. first, we are seeing the story across the sectors which remain unbalanced. the strong improvement in fixed asset investment is primarily driven by public investment which has been front loading to q1 and q2 which iswidely expected. the private sector investment, especially the projects tapped to the housing market remain. that suggests the downside risk to the economy hasn't disappeared yet. >> i want to take a closer look at the real estate he data. no doubt, it is important to think about with the chinese economy. the sector is still struggling. do you think it is, therefore, a problem for the country to reach the 5% growth target for the year? >> i think the property sector prices is one of the biggest downside risks to china's

performance for the rest of the year. as we are seeing that investment in property sector, it remains in contraction territory. the second thing is the transaction of house sales is actually really subdued. for example, if you look at the housing prices in first year cds, in shanghai, it remains in negative territory. that suggests the impact to the household wealth would be negative which would drag the consumption moving forward. we would like to highlight the headwinds of the sector which is increasing. that is suggesting that even if we're looking a stronger performance this year, but to maintain that performance would

be a challenge for the government to happenedndle. >> q1 keeps china on pace for the market. some output slumped 22% and food over capacity signals the industrial side shows a slowdown. if people are not buying food, it is hard to imagine them buying other things. how should investors read these two leading indicators? >> that's a great question. i think china's overcapacity issue is a reflection of both supply as weak in domestic demand. you mentioned food specifically. i think the overcapacity issues in the food industry is a reflection that china's catering industry hasn't returned to the pre-pandemic levels because of

covid disruption. household income is negatively affected by the subdued property market through the wealth effect. people's expectation regarding the future income is weak. if you look at the survey done by the central bank of china and the national bureau statistics of china, you can see the consumer hasn't yet returned to the pre-pandemic levels even after a year of covid lockdown relaxation. that is a weak point of the chinese economying moving forward for 2024 and 2025. >> it is important to note the gdp report is on the back of the high profile foreign visits. janet yellen was there, but tough talk from her about overcapacity and now olof scholz is there saying things like competition must be fair. what does that mean when we talk

about china as well as germany and the u.s. emphasizing they had it up to here when it comes to dumping and overcapacity and they plan to level the playing field? >> i think overcapacity is going to become the most popular topic in terms of global trade this year. it is important to note that the chinese government and u.s. government already view policymakers on the overcapacity and that suggests it rehe marem. if you are thinking of things from the china perspective, the capacity utilization rate among the different sectors not that low from the china standards. for example, ev production. that is about 70%. it is actually high by the

chinese standards. the government subsidies to the industries in the u.s. and whether those are aiming at boosting china's export and increasing the chinese market share in the global trade while squeezing out the space for other trading expporters is a concern from the u.s. perspective. the second thing is whether the foreign companies has free access to the market. regarding chinese subsidy diff which is not open to the foreign export. that is a important. that means that currently the overcapacity issue focused on the few things that china has a competitive advantage like evs or solar panels. we are seeing that this issue is going to expand to other areas. for example, medical devices

where the markets are seeking greater access in china. >> with olof scholz in china, let's see if we ease the tensions. thank you for your time. for more on the chinese gdp beat and why it might make the government more comfortable with the current policy stance, check out cnbc.com. chinese president xi jinping has told olof scholz that ties will continue to develop between the two nations providing both sides seek quote/unquote common ground and respect each other. they met in beijing among the scholz visit to china. the first visit since the derisking strategy which aims to tie germany's market to china we have annetta here with more.

>> reporter: today is all about the ties with china and especially with the car sector and many ceos are traveling with olof scholz from the chemical sphere like bmw are expressing interest in the chinese market, but they need to talk about the level playing field. that means there needs to be less subsidy for the chinese carmakers. they need to convince xi jinping to change his policy. in the end, it is about europe and the regulation which we are getting from the european level. having said that, today, as i said, it is all about politics. this is very crucial when it comes to the war in ukraine because china is said to be delivering dual use goods to

russia which can be used for military purposes and defense industry. of course, that's nol. what this fair peace deal could like like, we don't know. >> annette, thank you very much. ericsson has 4.3 billion swedish cronas. the company remains fully committed to its long-term

targets as it sees sales stabilizing in the second half of the year. you see it on the screen where shares are higher by 6%. the ceo told cnbc the company must continue on the cost cutting journey. >> we see that the market and we have said it will be challenging all year. we will face headwinds. in the environment, we need to work on what we can control. costs are clearly an important to take out costs. it is not fun. it is not what you want to do, but it is necessary to have a tight ship. ultimately, we need to invest in technology leadership and we need to invest in market leadership. we need to keep those. that's where we will win when the market comes back at some poino the geopolitics, coming up, the

response on the attack by iran. we'll have the latest after this break. what is cirkul? cirkul is the fuel you need to take flight. cirkul is the energy that gets you to the next level. cirkul is what you hope for when life tosses lemons your way. cirkul, available at walmart and drinkcirkul.com.

my name is ashley cortez and i'm the founder of the stay beautiful foundation when i started in 2016 i would go to the post office and literally fill out each person's name on a label and now with shipstation we are shipping 500 beauty boxes a month it takes less than 5 minutes for me to get all of my labels and get beauty in the hands of women who are battling cancer so much quicker 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 she's sitting on a goldmine. well she doesn't 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 you're sitting on a goldmine. call coventry direct today at the number on your screen, or visit coventrydirect.com. what is cirkul? cirkul is the fuel you need to take flight. cirkul is the energy that gets you to the next level. cirkul is what you hope for when life tosses lemons your way. cirkul, available at walmart and drinkcirkul.com.

welcome to "street signs." i'm silvia amaro with frank holland and these are your head headlines. european equities line up the biggest drop in six months following asian stocks deep into the red. u.s. futures dip in early trade after the selloff stateside with yields spiking and the dollar hitting the five h -month high which pushing the fed rate cut. and the gdp in china tops the quarter, but the monthly data is soft for tesla slashes 10% of the work force amid stiffer competition and softer demand.

let's look at european markets. they have been trading for an hour and a half so far. the picture is quite negative at this stage. looking at the major boards in europe, you see they heare all the red at this stage. we are seeing the stoxx 600, the overc overall benchmark tracking the lows. the reason is the expectation that the fed won't be in a position to cut rates in july. there is a lot in the minds of investors on top of the earnings season. i also want to look at what is the picture when it comes to currencies. what we have seen recently is the strong u.s. dollar. sterling against the dollar trading at 124.

we have seen similar weakness in sterling. we have seen flat moves at this stage after the uk labor market data earlier today. however, looking at euro/dollar, 1.06. there is a lot of difference between what the fed is telling us and what the ecb is telling us. early this morning, we did hear from the central bank governor suggesting if the data is moving in the right direction by june, they could be in a position to cut rates. pretty much signaling what the ecb said at the end of the last meeting. when it comes to the bond market, this is the picture at this stage. looking at the benchmark in germany, the ten-year yield bund is 2.44. we have seen european yieldsi moving higher. however, when you compare the recent performance with what is happening in the u.s.

treasuries, we see there is a lot more with u.s. treasury yields. when it comes to u.s. futures, this is how we are shaping up ahead of the open in the united states. it seems it could be a bit of a mixed open for wall street today after we saw the dow and s&p and nasdaq and even the russell 2000 posting negative performances on monday with tech being the sector leading the losses, frank. turning from markets to geopo geopolitics, more are speaking out about the pressure. speaking in washington at the start of the meeting with u.s. president biden, he said he encouraged all efforts to keep it from escalating further. israel's response from the attack from iran is imminent,

but the u.s. suggesting it is limited in scope. u.s. officials have not been briefed on the israel decision making. >> we are closely assessing the situation. we maintain our highest level of readiness. iran will face the consequences for its actions. we will choose our response accordingly. the idf remains ready to counter any threat from iran and its proxies as we continue our mission to defend the state of israel. >> with more on the escalating tensions impacting the middle east, we bring in dan murphy.

dan, what is happening with the markets? >> reporter: the response could be imminent, but the u.s. officials expect the iran attack response to be limited in is li outside of iran according to the nbc news reporting. that is because the saturday attackdid not result in israeli deaths. israel is likely to respond with a less aggressive option here, including a possible strike in syria or a strike against shipments or storage facilities that supply weapons to iran through hezbollah. plenty of options on the table, but it is important to stress that president biden has urged restraint and has made it clear that washington will not join any israeli counter attack. i spoke with the former prime

minister earlier today on cnbc. he says the success of saturday's defense in israel bought israel more time to consider its next move. it is, of course, important to say here that it is unclear how far israel is willing to go and how far prime minister benjamin netanyahu will bend to appease his war cabinet and members of his coalition here given that israel is already entangled in the war with gaza. fair to say the ball is in israel's court now and what it does next will be material for risk assets and for safe havens and regional stability as well. >> dan murphy, thank you very much. now to look at the geopolitical tensions in more detail, we have the program

director for european council on foreign relations with us. my first question is related to the comment on the back of the tensions in the middle east. as your political expert said the market concludes that the iranian attack over the weekend was essentially symbolic. do you agree with this opinion that their move over the weekend was just symbolic? >> i think it was more than symbolic if you look at the fact that you have more than 300 drone and ballistic missiles headed that way. this was more than just symb symbolism. this was a shift of strategy. what i think was clear was that iran messaged ahead of time what it would do and it implemented

the attack which was not meant to cause casualties. it did not want to engage in the escalation. iran felt it had to respond to the attack on the embassy on april 1st, but did it in a manner that was intended to address that one-off and put this to aside. where we go next in terms of regional conflict and stability is depending on where israel goes next and if there is a wider retaliation which provoke iran. >> i want to take a step back and take a look at the geopolitical picture here. we cannot forget what is happening in ukraine and president zelenskyy has used the developments in the middle east to highlight the importance of air defense systems and what happens when so many countries come together to protect skies. in this case, israel's skies. what do you make of the comment

and what do you think of the situation in the middle east means for ukraine? >> obviously, the ukrainians are trying to draw parallels and say if you do this for israel, why not do it for ukraine? they want more response mechanism to respond to russian missile and drone attacks. from the western perspective, the u.s. and uk and french involved in helping defend israel here, these are two contexts with two risk calculations. i don't think the west or countries here are prepared to engage ukraine the same as israel. i think these are different stories and one should not imagine the same thing nhappenig in ukraine going forward. >> i want to go back to the iran attack. it is much more than symbolism. they did telegraph it days in

advance and gave the u.s. a head's up. they said the matter is concluded. is that adding to the danger in the situation? do you believe israel sees it as a sign of weakness and that may be part of the reason why we could see an escalation? >> i think there has been a sense of confidence in israel since october 7th. they have been able to take the military battle to iran without repercussions. they launched assassinations in syria. they took out the embassy. the sense was iran would not respond. iran did finally storespond, bun a way that was calibrated and not a way to cause a wider conflict. there will be some in israel who thought it was working successfully and read this as a further sign of iran on the back

foot and now is the time to launch a wider campaign against iran in the reagion or iran. iran doesn't have the physical will or capabilities to stop that from happening. yes, there are those in the war cabinet who will be pushing for a wider campaign in lebanon to take advantage of the moment. >> one thing i think we have to touch on in the middle of the clear conflict is the economic conflict going on around the world. specifically with the iran close ally with china. how does china factor into this? china was able to broker a tenuous deal with iran and saudi arabia a few weeks ago. >> i think china's role here has been understated and not what many people were expecting. obviously, they did broker the iran and saudi deal last year and many were expecting them to

play a prominent role going forward. we have not seen them active in the middle east diplomacy or security dynamics since the gaza war was unleashed. they haven't intervened to try to stop houthi attacks in the red sea which plays out on them. they have not used influence with tehran to shift the dynamic. you have not seen them leaning in closely with the iranians to deescalate the tensions which could impact the oil markets and prices. i think it has undermined the sense of growing chinese influence in the region. what we have seen is the dominant position of the u.s. and the iranians in trying to shape dynamics and shifting the secure environment that impacts the markets. >> what about russia? you are describing the potential

links here. what about russia? they have also made the comments about being concerned over what is happening in the middle east. obviously, they have close links with iran here. what is the role here? >> a couple of things here. like china, one of the things they are doing is exploiting the backing of israel and gaza to isolate the west and attempts to fight the russians in ukraine. that is global positioning. we have have seen a closer line iran. russiahad been dependent on the military support and drone support to use in russia in ukraine. we have seen a weakening of traditional israeli ties with russia. that plays out in the nuclear

field. iran has felt a greater sense of confidence to move forward with nuclear developments with the progress on the nuclear program because it no longer believes russia will join an international coalition against it. if we do now or any time soon have a nuclear crisis, that could be destabilizing for the region. that could be an issue that causes military action and that could have grave implications for oil and maritime shipping if iran retaliates. >> thank you for joining us. julian barnes at european council for foreign relations. for more on the current situation in the middle east, check out cnbc.com. coming up on the show, we will be looking at tesla which reportedly laid off 10% of the global work force as it deal was the global slowdown for evs.

we'll have details after this break.

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 it's 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.

you've got xfinity wifi at home. shipstation. the #1 take it on the go of onl with xfinity mobile. customers now get exclusive access to wifi speed up to a gig in millions of locations. plus, buy one unlimited line and get one free. that's like getting two unlimited lines for twenty dollars a month each for a year. so, ditch the other guys and switch today. buy one line of unlimited, get one free for a year with xfinity mobile! plus, save even more and get an eligible 5g phone on us! visit xfinitymobile.com today. let's look at headlines this

morning. lufthansa is slashing the full year outlook amid strikes and capacity slowdowns. lufthansa reported a first quarter loss of 849 million euro. goldman sachs beat on the top and bottom line in the first quarter with profits surging 28% to $4.1 billion off the back of the jump in trading and investment banking revenue. it cposted the best quarter in two years. ceo david solomon said it was the best decision to play to our strengths. the chairman of the crypto security warning against the nature of trading in the crypto sector with the report from esma saying 90% of the transactions

are processed by just ten exchanges. karen spoke to the head of the imf in washington and asked how the situation changes without more competition in that sector. >> i think the crypto markets really are showing that there are quite a lot of concentrations about where the trading takes place and obviously the question is who is behind the trades which is not easy to say. on top of that, we can also see that now different players are coming into the market. all of that informs a bit of the work we are doing on the regulatory front when we are about implementing crypto asset regulation in europe. >> is it fair to say if you are trading crypto, you have to have a fair amount of confidence in binance? >> i think in general, the

crypto market remains a volatile market with huge ups and downs over the period in the last few years. i think as an investor, i would caution to take care about how you look at this and are you willing to take the risk of even gaming in crypto trade and you also should look carefully who you are entering this market. is your money safe? are the operational risk issues around where you put your money safe? sently certainly as esma, we keep on warning investors as well to be careful when they go into investing of crypto. >> one of the key crypto stories this year is bitcoin etfs in the u.s.

karen also asked if europe is too slow to move in that direction. >> certainly what we have seen in the u.s. with etfs authorized by the s.e.c. with crypto and the other lines is something which has not yet happened in europe. at the same time, we can see there's more and more interest by investors, both retail and others into the crypto market. having the regulatory framework in place will help to credit that clear regulatory framework that might allow more trad traditional players to extend offerings. >> silvia, we were here on "street signs" with the report that hong kong would approve yesterday. our colleagueswill speak to ecb president christine lagarde from washington this afternoon. that is a conversation you do not want to miss. it is happening at 14:00 cet.

the imf spring meetings kickoff in washington, d.c. the key meetings are wednesday to friday with creditentral ban convening on the rate path expectations. we get the imf latest economic outlook later today as well. and microsoft has announced plans to invest $1.5 billion in g42 in abu dhabi. this deal comes after g42 said it would strip chinese hardware from the operations in favor of products from the united states. the u.s. is set to award samsung $6.4 billion in grants to skcale up the plants in texa. intel and tsmc secured grants

from the white house as well. and tesla will cut more than 10% of its global work force as the electric carmaker deals with the slowdown in ev demand. that is according to the internal memo sent to employees seen by cnbc. shares in the carmaker closed 5% lower on the news and have continued to decline in pre-market trade today. a lot of focus will be on tesla today to see how the market digests the story, frank. there is a question whether this is a company problem or a sector company. if you look at the company, there are concerns about the style of elon musk. some are not fans of that. the company posted the annual decline in the deliveries recently. a lot of pressure there. ultimately, when you look at the performance in europe, particularly, other companies and carmakers are getting more

traction from consumers over tesla. >> for so long, elon musk said it is not a car company, but it is a software company. it is down 9.5%. investors decided this is a car company and not delivering enough cars. the question is when is the self driving coming to fruition? do they have software that is better than other companies? investors don't have that confidence. they are facing price wars in the u.s. a lot of pressure overall. >> absolutely. >> that is it for today's show. i'm frank holland along with silvia amaro "worldwide exchange" is coming up next. hi. i'm wolfgang puck when i started my online store wolfgang puck home i knew there would be a lot of orders to fill and i wanted them to ship out fast that's why i chose shipstation shipstation helps manage orders

reduce shipping costs and print out shipping labels it's my secret ingredient shipstation the number 1 choice of online sellers and wolfgang puck go to shipstation.com/tv and get 2 months free switch to shopify and sell smarter at every stage of your business. take full control of your brand with your own custom store. scale faster with tools that let you manage every

sale from every channel. and sell more with the best converting checkout on the planet. a lot more. take your business to the next stage when you switch to shopify. what is cirkul? cirkul is the fuel you need to take flight. cirkul is your frosted treat with a sweet kick of confidence. cirkul is the energy that gets you to the next level. cirkul is what you hope for when life tosses lemons your way. cirkul is your gateway back home. so what is cirkul? it's your water, your way. cirkul, available at walmart and drinkcirkul.com. people couldn't see my potential. so i had to show them. i've run this place for 20 years, but i still need to prove that i'm more than what you see on paper.

today i'm the ceo of my own company. it's the way my mind works. i have a very mechanical brain. why are we not rethinking this? i am more... i'm more than who i am on paper. business. it's not a nine-to-five proposition. it's all day and into the night. it's all the things that keep this world turning. the go-tos that keep us going. the places we cheer. and check in. they all choose the advanced network solutions and round the clock partnership from comcast business. see why comcast business powers more small businesses than anyone else. get started for $49.99 a month plus ask how to get up to an $800 prepaid card. don't wait- call today.

it is 5:00 a.m. here at cnbc global headquarters. i'm frank holland and here is your "five@5." wall street riding a six-session losing streak and pointing to more pressure at the open. and stubborn inflation may allay concerns of the rate cut. and still awaiting the response from the iran attack. we look at the strategies that

are crucial in