Transcripts For CNBC Street 20240703 : vimarsana.com

Top of the stoxx 600 as it cuts its love workout. China exceeding expectations in the property sector, raising hopes that beijing can hit its full year growth target. Sterling heads higher after inflation remains stubbornly high at 6. 7 in september. There you have live images from tel aviv as President Biden steps out of air force one and begins his journey in israel. Less than 24 hours after the tragic blast at the hospital in gaza. You can see him there with Benjamin Netanyahu. Well see if we can get any sound. I believe at the moment we just have the images here, but an incredibly difficult and now even more complicated mission facing the u. S. President. Hes expected, of course, to speak with the Prime Minister Benjamin Netanyahu. There he is being greeted by him and members of his entourage in tel aviv. Of course, air force one just landed a couple of minutes ago. Later hes expected to meet as well with First Responders followed by meetings with family victims from the october 7th terrorist attack, and hes expected to deliver remarks later on as well. Remember, julianna, he was also supposed to make a trip to jordan, but that leg of the trip has been canceled in light of the hospital blast that occurred in the evening yesterday. It really has raised the political temperature. Earlier on we were speaking to an analyst from carnegie and bellman who said post the hospital blast yesterday, all bets are off. That is a quote. Thats in terms of the escalation of the region itself. Arab leaders horrified at what has happened. He was supposed to be having a facetoface meeting with mahmoud abbas. He left jordan to go back to the west bank. So that meeting is not going to be happening in person anymore. It will be happening on the phone. I guess the utmost of importance is the deescalation of the conflict and providing a secure means for humanitarian aid and assistance to parts of gaza that need it. That seems to be something that the International Community can agree on. What the International Community cannot agree on right now is who was behind the blast. Its essentially been a blame game. President biden and the Biden Administration has effectively said theyre still trying to determine who was behind the blast. They have not come out publicly saying who they believe was behind it, but theyre working together for more information about the blast, and that obviously complicates the matter. We take you back to the scenes coming out of tel aviv right now, and as joumanna said, the primary immediate goal is to find a way of safe passage to gaza, but more broadly, how do you prevent this from spreading into a wider regional conflict. Its also said President Biden isnt the first leader to go visit israel. Another was ott there last week coming out very forcibly with remarks that israel has the right to selfdefend. She has tweeted this morning about the hospital. She said theres no excuse for hitting the hospital. She said those responsible must be held accountable. There continues to be question marks over the force of that blast in the arab region. They are saying that it was an israeli target, israeli rocket that was fired at the hospital. They say it was from a group within palestine. Again, some obscurity about the source of the attack. Ultimately what it means is hundreds and were getting into the thousands now of civilian lives have been lost. Something has to be done to bring down the temperature. In terms of the meeting, biden plans to ask netanyahu and other top israeli leaders he meets with tough questions, using the verbiage the white house has used, their objections and intentions in the conflict. Of course, President Biden is heading into another election year, which i think is important at the moment. He clearly feels hes got the backing to come to israel right in the heart of this conflict and make a very strong signal in doing so. But depending on how long the conflict goes on, whats asked and required of the u. S. , i wonder how long that Political Capital will last for President Biden. No, absolutely. Youre seeing it with leaders all around the world, their response to the initial attack and whats happened in the weeks since. Many have ask why has there not be more of an International Effort to restrain israels response. These are discussions that are happening at an international level. I would say looking at it from a regional perspective as well, watch closely whats happening. Hezbollah, the Paramilitary Group based in the southern part of the country have talked about putting forward demonstrations a in a day of rage. Theyre calling it a day of rage in retaliation and protests in what went down yesterday. So there really is heightened concern now that this conflict is going to spill out of gaza and get other players involved as well. The first of those, of course, would be hezbollah. They have positions at the southern border. There is a position at the border of hezbollah and other territories. That is a concern to watch out for. Weve seen the u. S. Issue a terr flight warning about going to lebanon. Theyre saying theres no appetite to go into a war, but we have to keep a close eye on what hezbollah is doing and how they respond in the coming days. Now they talk about improving efforts. I hope there will be a determined effort to allow the entry of humanitarian goods to safe areas and safe corridors to disperse these goods and to provide shelter and safety for the palestinians within gaza. We hope also the broader perspective of the twostate solution will be reiterated as a viable matter to free the region and the palestinians from the site of violence. This is not the first time this has happened. This is the fourth escalation. At the bank we have had great suffered from the parts of two people. It can only be expected. As long as there is lack of achievement in the establishment of the two states, there will continue to be frustration, and this frustration will unfortunately transfer to conflict and violence. Do you believe the president will be able to make a difference here because as weve been discussing, Prime Minister netanyahu has been talking about a long contracted war. Thats also something hes preparing western allies and leaders for. How long are we from a ceasefire . Do you expect this to last for months . Perhaps even longer . I dont think it is reasonable for me to speculate. You began your question by asking about President Bidens ability. Here we place great value in the president of the United States as the major world power to be able to have a very determined impact in dealing with conflict situations and being able to rally support for a way forward that prevents the continuing strike, conflict, loss of life. Again, this is a bilateral relationship between egypt and the United States thats built on cooperation and trust and familiarity of interest. I believe we have worked in the past and continue to work to achieve peace and security in the region, certainly an end to this conflict in the short term with the situation related to fwz and in the long term, an invitation of a nationally recognized concern and need for a twostate solution. Mike is here to talk with us about the situation in gaza. Let me start out with bidens visit. Clearly the attack, the blast on the hospital has complicated his trip to say the least. What do you think he is hoping to achieve now . My guess is there is hoping and what he should be achieving. This is very dangerous. Everyone can provide moral support after the horrific attacks. Thats not surprising. But now the u. S. Perceived as becoming an tifr player in the conflict and moving beyond support for cheerleading and aiding and unfortunately perceived as abetting when certain things go wrong. What happened last night . Its only going to get worse. Are we going to have bigger death tolls in individual periods . Who knows . We are escalating before the attack. If were thinking about it as terror, the response to it should be very different and very calculated than the allout emotiondriven, ragedriven, humiliationdriven, were just going to go in there. There has to be a thoughtful process. My guess is one of the things he was trying to do was buy time. But the pr there, he could convince others to buy time. He wants to make sure israelis dont feel humiliation. They made a huge mistake in allowing hamas to blow up the status quo. This didnt need to happen, but now that hamas has done this, the status quo has changed. I think thats whats dangerous about the u. S. Visit. The idea that we just opened humanitarian corridors and try to restrict the Collateral Damage and return to normal . Not after this. Hamas is a cancer. Unless that is ultimately addressed in some way, and i mean it from a pr perspective as much as a longterm fundamental perspective, there has to be some messaging, dangling of carrots to the palestinians that dislike hamas or soft sympathizers. I think that carrot is important. When iraq happened and afghanistan happened, it didnt work out. In both times, it took a long time to prepare. It wasnt emotiondriven. Two, there were narratives that allowed for a carrot. Were going to bring you democracy. Were going to bring you people. Theres zero messaging that aligns with what palestinians want to hear. If biden doesnt come out with this, i mean, the u. S. Has given 15,000 to every man, woman, and child in the past 40 years and israel is asking for aid and theyre richer than some u. S. States. There has to be an ability for the u. S. To ask for something in return. The fear is biden, because hes running for office, he is now colored by the political reality. If he was not running for office and he said he was going to be a oneterm president , i would be much, much more relaxed about the geopolitical risks that are going to come out of this. Because the u. S. Is not yet behaving as a fundamentalist trying to deactivate the situation. What do you see as the problem for u. S. Becoming a player . The idea of protesting, things calming down, occasional eruptions, these sorts of things, i think thats going to be tough to return to. I think hamas has changed the narrative here. The idea that palestinians, countries sympathetic to the palestinians, turkey is a prime example. You see erdogan become enraged. Its really, really difficult to imagine a scenario where israel is not going to achievei objective in any time soon. In 2023 were not going to see a solution to get rid of hamas. It would be very, very surprising if it were to happen that soon. Over this period the headlines are going to move one way. The horrors that israel suffered was going to be one off, but this is day after day after day. Its aligned with a multigenerational narrative. The reason its risky, its too heroic to assume, oh, israel has done what its done, its deescalated, and were going to go back to the situation we were in where we effectively keep taking palestinian territory. We shouldnt send the lung patient home and tell them to keep smoking at home. I was having a conversation and they were saying, oh, israel has been quiet, getting more involved from a financial infrastructure perspective, getting more clout when it comes to Global Financial geopolitics, but actually its just because there was not a lot of focus with what was happening within palestine and gaza. What were seeing now is essentially an emotion of many, many years of resentment building up on both sides. I wonder how the regional kc calculus is going to change after october 7th, after the last couple of weeks, and whether this really is going to be a defining moment in history as to arab countries place within the global world order and how they think about their relationship with israel. I think it also changes the israeli psychology as well. The status quo was well. They could keep making concessions and not have to answer to the palestinians. Arguably that will be one of the changes, but it ooh is not something thats happening now because of the raw emotion and the hatred and the sadness and the despair. You know, its you know, the idea that the status quo can that we can go back to that status quo is difficult to imagine. I think on balance, the israeli response and u. S. Response is very important. Theyre the ones who need to make a concession. Mandela was great, but it was the parts of others to make concessions eventually. If we do not see a halting of settlement activities its too raw right now. It looks like youre awarding hamas right now. Eventually when you get to the back of the process, youll start thinking about the peace negotiations. Its not going to happen. Who are they going to work on peace with . If its going to concern, no arab regimes will be able to formalize relation showmanships with israel, but also theres the risk. This is a bit of a tinderbox. There are multigenerational events, but when it starts, its going to be tough to see where it goes. From the market perspective, to bring it back to where the listeners are most concerned, geopolitically things are going to get worse before it gets better. It seems very, very clear about that. You want the turning points where you go, okay, the risks are gone. Usually with things like terrorism, you dont price those in because theyre oneoff events. Were going to go day after day where this is in the headlines. The likelihood that someone gets involved, even if its not direct, in terms of lets not forget the use of oil, the importance of iran here, theres the scenario where the uncertainty remains, my personal view is recessionary, and it could last for a long period of time. I just hope when we go in this were thinking geopolitically. The endgame . Get rid of gaza. What after that . If theres nothing after that, i worry about what the outcomes of it is. And the possibility of other extremist groups hopping off as well, right . That was the lesson from past wars. If you push a population to an extreme, its going to give burst. I think thats fair, but ultimately its containable. Thats another question. What is it doing to the policy choice . The tragic event thats happened, it was terror, and the terror attack, you treat it largely as a oneoff and its retained. Now this is about retribution and reprisal and resetting the st stage. I think this is a dangerous trip for biden. He needs to come out of this having gotten some concessions from israel that moves beyond the humanitarian corridors and water. Hes now got a vested interest with israel doing the right thing and its going well. Considering how long he waited and tried to extract himself from afghanistan and all the risks he took, hes inserting himself in another situation that he has less control over. Mike, were going to leave it there. Really fascinating to hear your perspectives. Mike harris. Remember, you can keep up with all the latest developments and the president s movements on our live blog on cnbc. Com. Coming up on the show, chinese growth comes in battered for the quarter, boosting hopes the economy can move closer to its economic goals. 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. Hi. Im 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 thats why i chose Shipstation Shipstation helps manage orders reduce shipping costs and print out shipping labels its my secret ingredient shipstation the number 1 choice of Online Sellers and Wolfgang Puck go to shipstation. Com tv and get 2 months free welcome back to street signs. Chinas Third Quarter Economic Growth came in stronger than expected, up 4. 9 of the year, boofrting hope that the worlds second largest economy will meet or even exceed beijings target at 5 growth this year. Thats well ahead of the forecast but down from 2022. Fixed Asset Investments cooled slightly. Wall street analysts are expressing their concerns over the growth. Companies have boosted their forecasts by as much as 30 while Goldman Sachs rose 5. 3 . Michelle, what is your take on the data . Have you adjusted your forecast for the year . So after todays data, we revised up the full year gdp program from 4. 8 previously to now 5. 2 . Overall its definitely pretty positive for the Third Quarter, and i think there are a couple of reasons for that. First of all if you look at the exports over the recent months, there seems to be some stabilization and i think thats quite a positive to the industrial activity. Second is we also observed some improvement in the infrastructure investment. I think that followed what they have been ordering to speed up the special local policy issues which is very impaerative with their infrastructure project. I think thats also explaining why were seeing some momentum. Lastly, for consumption, i think were seeing more especially as you look at the data. I think what we see here is first of all, the auto sales has actually been pretty resilient. I think that has to do with other interests to encourage any research and if you look at the service aside, the reopen greop picking up pace. And if you look at over the summer and the holidays, they all have helped to see a better Third Quarter gdp here. Michelle, certainly the property sector has been a serious concern for both the chinese authorities and the market. How concerned are you about contagion from Country Garden . So actually the news about Country Garden, we already started to learn about it a couple of months ago, and i think President Biden<\/a> steps out of air force one and begins his journey in israel. Less than 24 hours after the tragic blast at the hospital in gaza. You can see him there with Benjamin Netanyahu<\/a>. Well see if we can get any sound. I believe at the moment we just have the images here, but an incredibly difficult and now even more complicated mission facing the u. S. President. Hes expected, of course, to speak with the Prime Minister<\/a> Benjamin Netanyahu<\/a>. There he is being greeted by him and members of his entourage in tel aviv. Of course, air force one just landed a couple of minutes ago. Later hes expected to meet as well with First Responders<\/a> followed by meetings with family victims from the october 7th terrorist attack, and hes expected to deliver remarks later on as well. Remember, julianna, he was also supposed to make a trip to jordan, but that leg of the trip has been canceled in light of the hospital blast that occurred in the evening yesterday. It really has raised the political temperature. Earlier on we were speaking to an analyst from carnegie and bellman who said post the hospital blast yesterday, all bets are off. That is a quote. Thats in terms of the escalation of the region itself. Arab leaders horrified at what has happened. He was supposed to be having a facetoface meeting with mahmoud abbas. He left jordan to go back to the west bank. So that meeting is not going to be happening in person anymore. It will be happening on the phone. I guess the utmost of importance is the deescalation of the conflict and providing a secure means for humanitarian aid and assistance to parts of gaza that need it. That seems to be something that the International Community<\/a> can agree on. What the International Community<\/a> cannot agree on right now is who was behind the blast. Its essentially been a blame game. President biden and the Biden Administration<\/a> has effectively said theyre still trying to determine who was behind the blast. They have not come out publicly saying who they believe was behind it, but theyre working together for more information about the blast, and that obviously complicates the matter. We take you back to the scenes coming out of tel aviv right now, and as joumanna said, the primary immediate goal is to find a way of safe passage to gaza, but more broadly, how do you prevent this from spreading into a wider regional conflict. Its also said President Biden<\/a> isnt the first leader to go visit israel. Another was ott there last week coming out very forcibly with remarks that israel has the right to selfdefend. She has tweeted this morning about the hospital. She said theres no excuse for hitting the hospital. She said those responsible must be held accountable. There continues to be question marks over the force of that blast in the arab region. They are saying that it was an israeli target, israeli rocket that was fired at the hospital. They say it was from a group within palestine. Again, some obscurity about the source of the attack. Ultimately what it means is hundreds and were getting into the thousands now of civilian lives have been lost. Something has to be done to bring down the temperature. In terms of the meeting, biden plans to ask netanyahu and other top israeli leaders he meets with tough questions, using the verbiage the white house has used, their objections and intentions in the conflict. Of course, President Biden<\/a> is heading into another election year, which i think is important at the moment. He clearly feels hes got the backing to come to israel right in the heart of this conflict and make a very strong signal in doing so. But depending on how long the conflict goes on, whats asked and required of the u. S. , i wonder how long that Political Capital<\/a> will last for President Biden<\/a>. No, absolutely. Youre seeing it with leaders all around the world, their response to the initial attack and whats happened in the weeks since. Many have ask why has there not be more of an International Effort<\/a> to restrain israels response. These are discussions that are happening at an international level. I would say looking at it from a regional perspective as well, watch closely whats happening. Hezbollah, the Paramilitary Group<\/a> based in the southern part of the country have talked about putting forward demonstrations a in a day of rage. Theyre calling it a day of rage in retaliation and protests in what went down yesterday. So there really is heightened concern now that this conflict is going to spill out of gaza and get other players involved as well. The first of those, of course, would be hezbollah. They have positions at the southern border. There is a position at the border of hezbollah and other territories. That is a concern to watch out for. Weve seen the u. S. Issue a terr flight warning about going to lebanon. Theyre saying theres no appetite to go into a war, but we have to keep a close eye on what hezbollah is doing and how they respond in the coming days. Now they talk about improving efforts. I hope there will be a determined effort to allow the entry of humanitarian goods to safe areas and safe corridors to disperse these goods and to provide shelter and safety for the palestinians within gaza. We hope also the broader perspective of the twostate solution will be reiterated as a viable matter to free the region and the palestinians from the site of violence. This is not the first time this has happened. This is the fourth escalation. At the bank we have had great suffered from the parts of two people. It can only be expected. As long as there is lack of achievement in the establishment of the two states, there will continue to be frustration, and this frustration will unfortunately transfer to conflict and violence. Do you believe the president will be able to make a difference here because as weve been discussing, Prime Minister<\/a> netanyahu has been talking about a long contracted war. Thats also something hes preparing western allies and leaders for. How long are we from a ceasefire . Do you expect this to last for months . Perhaps even longer . I dont think it is reasonable for me to speculate. You began your question by asking about President Biden<\/a>s ability. Here we place great value in the president of the United States<\/a> as the major world power to be able to have a very determined impact in dealing with conflict situations and being able to rally support for a way forward that prevents the continuing strike, conflict, loss of life. Again, this is a bilateral relationship between egypt and the United States<\/a> thats built on cooperation and trust and familiarity of interest. I believe we have worked in the past and continue to work to achieve peace and security in the region, certainly an end to this conflict in the short term with the situation related to fwz and in the long term, an invitation of a nationally recognized concern and need for a twostate solution. Mike is here to talk with us about the situation in gaza. Let me start out with bidens visit. Clearly the attack, the blast on the hospital has complicated his trip to say the least. What do you think he is hoping to achieve now . My guess is there is hoping and what he should be achieving. This is very dangerous. Everyone can provide moral support after the horrific attacks. Thats not surprising. But now the u. S. Perceived as becoming an tifr player in the conflict and moving beyond support for cheerleading and aiding and unfortunately perceived as abetting when certain things go wrong. What happened last night . Its only going to get worse. Are we going to have bigger death tolls in individual periods . Who knows . We are escalating before the attack. If were thinking about it as terror, the response to it should be very different and very calculated than the allout emotiondriven, ragedriven, humiliationdriven, were just going to go in there. There has to be a thoughtful process. My guess is one of the things he was trying to do was buy time. But the pr there, he could convince others to buy time. He wants to make sure israelis dont feel humiliation. They made a huge mistake in allowing hamas to blow up the status quo. This didnt need to happen, but now that hamas has done this, the status quo has changed. I think thats whats dangerous about the u. S. Visit. The idea that we just opened humanitarian corridors and try to restrict the Collateral Damage<\/a> and return to normal . Not after this. Hamas is a cancer. Unless that is ultimately addressed in some way, and i mean it from a pr perspective as much as a longterm fundamental perspective, there has to be some messaging, dangling of carrots to the palestinians that dislike hamas or soft sympathizers. I think that carrot is important. When iraq happened and afghanistan happened, it didnt work out. In both times, it took a long time to prepare. It wasnt emotiondriven. Two, there were narratives that allowed for a carrot. Were going to bring you democracy. Were going to bring you people. Theres zero messaging that aligns with what palestinians want to hear. If biden doesnt come out with this, i mean, the u. S. Has given 15,000 to every man, woman, and child in the past 40 years and israel is asking for aid and theyre richer than some u. S. States. There has to be an ability for the u. S. To ask for something in return. The fear is biden, because hes running for office, he is now colored by the political reality. If he was not running for office and he said he was going to be a oneterm president , i would be much, much more relaxed about the geopolitical risks that are going to come out of this. Because the u. S. Is not yet behaving as a fundamentalist trying to deactivate the situation. What do you see as the problem for u. S. Becoming a player . The idea of protesting, things calming down, occasional eruptions, these sorts of things, i think thats going to be tough to return to. I think hamas has changed the narrative here. The idea that palestinians, countries sympathetic to the palestinians, turkey is a prime example. You see erdogan become enraged. Its really, really difficult to imagine a scenario where israel is not going to achievei objective in any time soon. In 2023 were not going to see a solution to get rid of hamas. It would be very, very surprising if it were to happen that soon. Over this period the headlines are going to move one way. The horrors that israel suffered was going to be one off, but this is day after day after day. Its aligned with a multigenerational narrative. The reason its risky, its too heroic to assume, oh, israel has done what its done, its deescalated, and were going to go back to the situation we were in where we effectively keep taking palestinian territory. We shouldnt send the lung patient home and tell them to keep smoking at home. I was having a conversation and they were saying, oh, israel has been quiet, getting more involved from a financial infrastructure perspective, getting more clout when it comes to Global Financial<\/a> geopolitics, but actually its just because there was not a lot of focus with what was happening within palestine and gaza. What were seeing now is essentially an emotion of many, many years of resentment building up on both sides. I wonder how the regional kc calculus is going to change after october 7th, after the last couple of weeks, and whether this really is going to be a defining moment in history as to arab countries place within the global world order and how they think about their relationship with israel. I think it also changes the israeli psychology as well. The status quo was well. They could keep making concessions and not have to answer to the palestinians. Arguably that will be one of the changes, but it ooh is not something thats happening now because of the raw emotion and the hatred and the sadness and the despair. You know, its you know, the idea that the status quo can that we can go back to that status quo is difficult to imagine. I think on balance, the israeli response and u. S. Response is very important. Theyre the ones who need to make a concession. Mandela was great, but it was the parts of others to make concessions eventually. If we do not see a halting of settlement activities its too raw right now. It looks like youre awarding hamas right now. Eventually when you get to the back of the process, youll start thinking about the peace negotiations. Its not going to happen. Who are they going to work on peace with . If its going to concern, no arab regimes will be able to formalize relation showmanships with israel, but also theres the risk. This is a bit of a tinderbox. There are multigenerational events, but when it starts, its going to be tough to see where it goes. From the market perspective, to bring it back to where the listeners are most concerned, geopolitically things are going to get worse before it gets better. It seems very, very clear about that. You want the turning points where you go, okay, the risks are gone. Usually with things like terrorism, you dont price those in because theyre oneoff events. Were going to go day after day where this is in the headlines. The likelihood that someone gets involved, even if its not direct, in terms of lets not forget the use of oil, the importance of iran here, theres the scenario where the uncertainty remains, my personal view is recessionary, and it could last for a long period of time. I just hope when we go in this were thinking geopolitically. The endgame . Get rid of gaza. What after that . If theres nothing after that, i worry about what the outcomes of it is. And the possibility of other extremist groups hopping off as well, right . That was the lesson from past wars. If you push a population to an extreme, its going to give burst. I think thats fair, but ultimately its containable. Thats another question. What is it doing to the policy choice . The tragic event thats happened, it was terror, and the terror attack, you treat it largely as a oneoff and its retained. Now this is about retribution and reprisal and resetting the st stage. I think this is a dangerous trip for biden. He needs to come out of this having gotten some concessions from israel that moves beyond the humanitarian corridors and water. Hes now got a vested interest with israel doing the right thing and its going well. Considering how long he waited and tried to extract himself from afghanistan and all the risks he took, hes inserting himself in another situation that he has less control over. Mike, were going to leave it there. Really fascinating to hear your perspectives. Mike harris. Remember, you can keep up with all the latest developments and the president s movements on our live blog on cnbc. Com. Coming up on the show, chinese growth comes in battered for the quarter, boosting hopes the economy can move closer to its economic goals. 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<\/a> 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<\/a> today at the number on your screen, or visit coventrydirect. Com. Hi. Im Wolfgang Puck<\/a> when i started my online store Wolfgang Puck<\/a> home i knew there would be a lot of orders to fill and i wanted them to ship out fast thats why i chose Shipstation Shipstation<\/a> helps manage orders reduce shipping costs and print out shipping labels its my secret ingredient shipstation the number 1 choice of Online Sellers<\/a> and Wolfgang Puck<\/a> go to shipstation. Com tv and get 2 months free welcome back to street signs. Chinas Third Quarter<\/a> Economic Growth<\/a> came in stronger than expected, up 4. 9 of the year, boofrting hope that the worlds second largest economy will meet or even exceed beijings target at 5 growth this year. Thats well ahead of the forecast but down from 2022. Fixed Asset Investments<\/a> cooled slightly. Wall street analysts are expressing their concerns over the growth. Companies have boosted their forecasts by as much as 30 while Goldman Sachs<\/a> rose 5. 3 . Michelle, what is your take on the data . Have you adjusted your forecast for the year . So after todays data, we revised up the full year gdp program from 4. 8 previously to now 5. 2 . Overall its definitely pretty positive for the Third Quarter<\/a>, and i think there are a couple of reasons for that. First of all if you look at the exports over the recent months, there seems to be some stabilization and i think thats quite a positive to the industrial activity. Second is we also observed some improvement in the infrastructure investment. I think that followed what they have been ordering to speed up the special local policy issues which is very impaerative with their infrastructure project. I think thats also explaining why were seeing some momentum. Lastly, for consumption, i think were seeing more especially as you look at the data. I think what we see here is first of all, the auto sales has actually been pretty resilient. I think that has to do with other interests to encourage any research and if you look at the service aside, the reopen greop picking up pace. And if you look at over the summer and the holidays, they all have helped to see a better Third Quarter<\/a> gdp here. Michelle, certainly the property sector has been a serious concern for both the chinese authorities and the market. How concerned are you about contagion from Country Garden<\/a> . So actually the news about Country Garden<\/a>, we already started to learn about it a couple of months ago, and i think Going Forward<\/a>, i wont be surprised if we continue to see more by the developers. What im concerned is whether the sentiment of household, buying the property buying the property. If you look at the data of the housing sales in advance, we are really seeing a divergence between the two indicators. It seems theyre pretty concerned about a glitch to complete the project and, therefore, were seeing better momentum in the housing sales already. So i think Going Forward<\/a> we see this more probably developing that are contained, and i think this will feel great under the buying sentiment of the household. Michelle, let me go back to the data that we had. Are there signs that the fiscal support measures and some of the other stabilization measures that were introduced by the authorities are having a potential impact on the economy, or are we yet to feel the full force of the measures having been introduced . I think overall, even those opposite the meeting, the policy announcements have been a bit disappointing compared to market expectations. There have actually been a lot of incremental easing measure. I think altogether, adding up all these measures, were seeing it having an impact on the data, which i mentioned. I thinkwere seeing pretty strong Sales Numbers<\/a> in the recent months and in the st infrastructure investment. I think these have definitely helped to put more on the growth. Michelle, thank you so much for sharing your thoughts with us. This is on the back of the china data out overnight. Coming up on street signs, more with chipmaker asal, under pressure amid demand concerns. My name is Ashley Cortez<\/a> and im the founder of the stay Beautiful Foundation<\/a> when i started in 2016 i would go to the post office and literally fill out each persons 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<\/a> 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<\/a> 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<\/a> today at the number on your screen, or visit coventrydirect. Com. 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. Welcome back to street signs. Im joumanna bercetche. Im julianna tatelbaum, and these are your headlines. U. S. President joe biden lands in tel aviv for talks with Israels Benjamin Netanyahu<\/a> just hours after a blast reportedly killed hundreds of people at a hospital in gaza. European markets open to the downside as earnings at a major blue chips asal disappoint but added up. Chinese gdp topped extendations in the Third Quarter<\/a> growing 4. 9 and sidestepping concerns in the property sector, raising concerns that beijing can grow its market. And headline inflation remains stubbornly high at 6. 7 in september. U. S. President joe biden has arrived in israel. He will hold talks with israeli Prime Minister<\/a> Benjamin Netanyahu<\/a> but will not head to jordan as had been planned. A faraway summit with kib abdullah and egypts president cici has been canceled in light of the deaths at the hospital with both sides. The Prime Minister<\/a> accused of palestine of the massacre after deaths at a hospital. Israel has released evidence showing the hospital was hit by a rocket fired by the Palestinian Islamist<\/a> jihad militant group, but it denies any involvement. Were keeping an eye on the close development coming out of the region, of course. But there are a couple of investments weve been watching as well. Chinese investments showing some subsequential improvement. Also retail sales coming in firmer. The takeaway is there has been some form of stabilization coming through in the form of the chinese data. The impact on chinese equities was somewhat muted. It ended up in skomewhat negatie territory. The only spot in green is the ftse mib. The others are trading slightly under water. One name were watching, of course, is adidas. They have improved their revenue guidance for the year, cut their loss revenue. Its up about 5 . Cac is trading better giving the more positive signs coming out of china this morning. The overall is negative. The ftse 100 down about a tenth of a percent. We did have the inflation number come in this morning, a bit negative. It came in flat versus the prior month. There was hope the trend would continue. What we got was a flat reading, 6. 7 versus the month before showing that perhaps this decline and some of those inflation reads have come to an end, though, of course, speaking to some of those analysts, a lot of the base energy has yet to come through. Its something to watch out for on the macro side of things. In terms of sectors, this is where leadership is coming today. Luxuries up 0. 7 . Telco up 0. 6 . Retail down 1. 4 . U. S. Yields, 13 basis poichlts higher. 16year high, up. Industrials down 1 and the miners also losing some steam today, down 0. 9 . Were watching the chipmaker space very closely. Let me take your attention to asml. It posted Third Quarter<\/a> earnings of 1. 9 billion io ion euros al line with estimates. Conductors are uncertain about the demand for recovery as it forecast flat sales. That forecast of flat sales would explain some of the downward pressure were seeing. Elsewhere, abb has posted 1. 4 billion in line with expectations, but the Swiss Industrial Group<\/a> lowered expectations for the coming quarter saying it expects comparable revenue to grow by midsingle digits and be in the low teens. Its down 5. 8 today in trading. The cpo of nordegren saidnorth america is still the driving force for the business. Europe is showing the weak oeft part if you look at the three regions. Germany is down 33 . But that is the comparable. We got some big orders last year. Its about half of that. But the source still quite weak. So the driving force is still north american. But there is a little bit of green on the board today. That is adidas. The stock is up 4 . The company has raised its revenue items and cut its expected loss for 2023. It comes as the german sportswear giant continues to sell off excess inventory of its yeezy shoes following its termination with with partner rapper kanye west. This partnership with kanye west was hanging over the face of adidas. Many people were concerned they would not be able to get rid of the inventory that was on their balance sheet, but it seems like theyve done a good job of it, annette. Yes, exactly. Its the second phase of those shoes of kanye west. Now thats the final one. Its actually going a lot better than expected. Last autumn they cut their risk because of the comments by kanye west. They look at the outlook of what that means for the bid. To get still it has been weighing on the business. That partnership is no longer there, but its less than expected. And also what adidas is saying as well is the underlying business is doing better than expected. But the new ceo since the beginning of the year says also the strategy has change. Hes focusing more on the traditional retailer, less on rebates in the online sphere. That has also improved the operation of performance. If you look at the market, theyre down year on year, now standing at 6. 8 . But sales are actually growing slightly by 1 . So overall it seems that the turnaround story is actually materializing also in the numbers. If you look at where adidas stands in terms of performance, of course, china was always a problem, and now with what were seeing with the growth, that surprising positive growth in the Third Quarter<\/a> with china, that could also be a positive outlook for adidas Going Forward<\/a>. Looking at the share price performance, a lot of it is priced. The shares are up by 38 since the beginning of the year. Thank you so much for breaking it all down for us. Quite a notable share price reaction as weve already flagged. Now on to the data, uk inflation remains steady, defying expectations of a fourth straight month of decline. Core inflation fell slightly to 6. 1 while Services Inflation<\/a> rose from augusts level. Heres a look for you of uk assets. The ftse 100 flat on the day. Sterling has a bounce on the back of the data. Were currently trading just under the 122. The yields up 5. 78 . A couple of points i wanted to add, some of them at the wall. I think it was disappointing. It came in slightly higher at 6. 7. You know, but it is it does tell you that some of the disinflationary trend has paused, but youve got to take it in light of all the other prints that weve got. You know, the prior month print was a huge downward surprise. We mad moderating pay growth as well as something to think about. In addition to that, gdp also disappointed to the downside. Taking it altogether in aggregate does paint a picture of a disinflationary trend in addition to a slowing economic backdrop as well. So with that, let us just keep an eye on what is happening in israel. The President Joe Biden<\/a> is about to speak and he is alongside the Prime Minister<\/a> of israel, Benjamin Netanyahu<\/a>. We look at the clarity since israel was attacked. You let me draw a clear line between the forces of civilization and the forces of barbarism. You despise what hamas did as sheer evil. It is exactly that. Hamas murdered children in front of their parents, murdered parents in front of their children. They burned people alive. Raped women. Just imagine the fear and the panic of those little children in their last moments as the monsters discovered, found out their hiding places. Hamas kidnapped women, children, elderly, holocaust survivors. I know you share our outrage on this, and i know you share our determination to bring these people back. On october 7th hamas murdered 1,400 israelis, maybe more. This is in a country of fewer than 10 million people. This would be equivalent to over 15,000 americans murdered in a single day. Thats 20 9 11s. Thats why october 7th is another day that will live in infamy. Mr. President , you rightly said hamas is worse than i. S. I. S. The german chancellor who visited here yesterday says that hamas was the new nazis. Youre both right. Just as in the united world, they united to defeat nazis and i. S. I. S. , the world must unite to defeat hamas. I can assure you, mr. President. Israel is united to defeat hamas and we will defeat hamas and remove this terrible threat from our lives. The forces of civilization will prevail for our sake, for your sake, for peace and security in our region and in the world. Mr. President , for the people of israel, theres only one thing better than having a true friend like you standing with israel, and that is having you standing in israel. Your visit here is the first visit of an american president in israel at a time of war. It is deeply, deeply moving. It speaks to the depth of your personal commitment to israel. It speaks to the depth of your personal commitment to the future of the jewish people in the one and only jewish state. So i know i speak for all the people of israel when i say thank you, mr. President. Thank you for standing with israel today, tomorrow, and always. Mr. Prime minister, thank you very much. Look, folks, i wanted to be here today for a simple reason. I wanted the people of israel, the people of the world to know the United States<\/a> stands for this great state. I wanted to personally come and make that clear. The terrorists of hamas have slaughtered out as pointed out over 1,300 people. Its not hyperbole. Just slaughtered. Slaughtered. Theyve taken scores of people hostage including children. You said, imagine what those children hiding from hamas are thinking. Its beyond my comprehension to be able to imagine what theyre thinking. Its beyond my comprehension. Theyve committed an atrocity thats made i. S. I. S. Look somewhat more rational. Americans agree with are grie with you, they really are, and americans are worried over what you have to do, but the fact is israel in their response to attacks seem to me have continued to have what you need to defend yourself, and were going to make sure that occurs, as you know. We have to also bear in mind hamas does not represent all of the palestinian people. You know, years ago i asked the secretary of state when he and i were working in the senate to write something. He said i wont coin it. Its taking too much time. My point is this. Im deeply saddened and outraged by the explosion of the hospital in gaza yesterday, and based on what ive seen, it appears as though it was done by the other team, not you. But theres a lot of people out there who are not sure. Also youre working in a lifesaving capacity to help the palestinians who are innocent caught in the middle of this. Anyway, thats who we are. Not just me, but the United States<\/a>. The power of example is almost as important. The worlds looking. You have the values set like the United States<\/a> does and other democracies, and were looking to see what were going to do. Prime minister, im very happy to be with your group. Thank you for having me and i look forward to having a discussion about where everybody goes from here. But thank you. I want to say to the people of israel, their courage, their commitment, their bravery is stunning. Its really stunning. Im proud to be here. Thank you. All right. Were just coming out of the press conference being held by u. S. President joe biden with the is rah i will Prime Minister<\/a> Benjamin Netanyahu<\/a>. Let me just bring you some of the headlines that we got. The israeli Prime Minister<\/a> thanked biden for unequivocal support, says bidens visit to israel at time of war is deeply, deeply moving. U. S. President biden himself has referenced the hamas terrorist attack saying hamas slaughtered, slaughtered more than 1,300 people including 31 americans. Hamas committed atrocities that make i. S. I. S. Look more rational and added the u. S. Will give what it needs to defend itself. Its clear u. S. Will stand with israel. President biden said from what he has seen, the hospital explosion was caused by the other side. Im quoting him here. Until now the white house has been rheticent about who has sparked the attack. This is in reference to the blast that took place at a palestinian hospital. The palestinian authorities were quick to say it was on back of a target from an israeli missile. On the israeli side theyre saying it was a mislaunch of a rocket by islamic militants. And President Biden<\/a> is saying the hospital explosion was caused by the other side, but there have been hundreds of people, of casualties, and people have lost their lives on the back of the explosion and its set a very tense backdrop for the next couple of days of the session. Let us take a look at how u. S. Futures are shaping up to open today. All of the three majors are seen to be opening up in the red. S p down. Nasdaq, of course, were in the middle of earnings season. Yesterday we had results out of Goldman Sachs<\/a> and bank of america, both surprising to the upside. Of course, today were looking at results out of tesla and netflix as well. And speaking of tesla, the company is expected to post a more than 30 full on profit when it reports Third Quarter<\/a> earnings after the u. S. Closing bell as the e ve maker price cuts stretch the margins. China missed wall streets expectations. Netflix is also due to report after the bell with analysts expecting the streamer to post profits. Commentary on the impact of the continued u. S. Actor strike and the reports of potential future price rises will be in focus as some of the companys rivals begin to license content to the streaming giant instead of retaining it for their own platforms. To discuss netflix and get more detail, we have an analyst joining us now. Let me pick up, paulo, the crackdown on password sharing. Our internal tech arjun says this is one of thee things to watch in todays earnings. How committed is netflix cracking down on password sharing and what are they doing . Its a pretty hard endeavor. Good morning, good afternoon, good evening wherever youre watching the show from. Yeah, youre hitting the nail on the head. Your colleague arjun clearly has articulated it. Netflix is ultimately at a different phase of growth compared to other streamers. There arent that many new subscribers largely to go out there and acquire. Hence why the crackdown on password sharing is paramount. Of course, a lot of people have been sharing their netflix i. D. In the house and beyond. This is certainly one way along with a move toward ads to actually not only boost its subscribers but also engagement and drive revenue. Paolo let me ask you about the changes surrounding the licensing deals. Very dynamic from a few years ago when the main studios were essentially taking their content back for themselves, away from the netflix platform. Now in order to boost their own profitability, theyre selling it back to netflix once again. But there are some concerns around margins, arent there, for netflix, in terms of f what the impact of these licensing deals will be. Well, exactly. I think youve seen the model kind of flip around. Many of those Traditional Media Companies<\/a> want to jump on the next bandwagon by launching their own streaming service, but realized they couldnt simply copy and paste netflixs successful model. Obviously nay need to boost their own revenue, so theyve renewed syndicated deals with netflix. Of course, service is in the detail. We dont know the level of those commercials, so one area to look at is the numbers, not only the subscribers, but also the cost particularly, and is that going to spiral because thats obviously going to raise concerns not only in those sales, but that could move into what we might see later in the year or next year. Paulo, earlier on we were speaking to arjun. I think julianna mentioned that as well. He was saying the focus for the Analyst Community<\/a> looking ahead is less on perhaps subscriber growth but more on Revenue Growth<\/a> and how netflix is going to look to monetize on their Subscriber Base<\/a> and new subscribers as well. What are you looking at there . Exactly. Netflix as i indicated earlier, at very much a different phase of growth. Its all about extrapolating as much revenue from the subscription base as possible. Moving into new areas and buying not only physical products but services. They may move into games. At some point in time you could see games becoming available as an addon option. Theres obviously the ads here, the path to a cr password cra. Its possible they could move into other areas such as, you know, rental, making movies after the actual release. Right now you have to leave the netflix platform and go elsewhere to apple or amazon to be able to pay to watch those movies once they become available. I think netflix needs to think of itself respectfully, i think paulo, we paulo, were going to have to leave it there. Were up against the clock. Joining us from pp foresight. Thats it for street signs. Thanks for joining us. Has no idea shes sitting on a goldmine. Well she doesnt know that if she owns a Life Insurance<\/a> 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<\/a> today at the number on your screen, or visit coventrydirect. Com. Hi. Im Wolfgang Puck<\/a> when i started my online store Wolfgang Puck<\/a> home i knew there would be a lot of orders to fill and i wanted them to ship out fast thats why i chose Shipstation Shipstation<\/a> helps manage orders reduce shipping costs and print out shipping labels its my secret ingredient shipstation the number 1 choice of Online Sellers<\/a> and Wolfgang Puck<\/a> go to shipstation. Com tv and get 2 months free it is 5 00 a. M. At cnbc Global Headquarters<\/a> and here is your five 5. Treasury yields increase to the highest level in more than 15 years. Futures are lower. The latest surge in yields coming after yesterdays blowout retail sales report, but not everyone is convinced the consumer will continue spending. Also breaking this morning, President Biden<\/a> is in israel for his facetoface with Benjamin Netanyahu<\/a> just one day after the deadly andcontroversial hospital explosion in gaza. Plus, chip stocks under pressure all around the world afte","publisher":{"@type":"Organization","name":"archive.org","logo":{"@type":"ImageObject","width":"800","height":"600","url":"\/\/ia802300.us.archive.org\/21\/items\/CNBC_20231018_080000_Street_Signs\/CNBC_20231018_080000_Street_Signs.thumbs\/CNBC_20231018_080000_Street_Signs_000001.jpg"}},"autauthor":{"@type":"Organization"},"author":{"sameAs":"archive.org","name":"archive.org"}}],"coverageEndTime":"20240703T12:35:10+00:00"}