Gets shown the door and off the earnings call. And later, more job cuts at tesla after marking the best day in weeks. Its tuesday, april 30th, 2024. Youre watching Worldwide Exchange right here on cnbc. Good morning and welcome to Worldwide Exchange. Thank you for being with us. Lets get you ready for the trading day hahead. We kick it off with the look at the futures after the positive day for wall street yesterday. A different story today here in the red across the board. The dow would open about 70 points lower. For the month, dow, s p and nasdaq snapping fivemonth win streaks. The dow tracking for its worst performance since february of 202. For the month, chevron and American Express is leading the dow and home depot bringing up the rear. The fed kicks off the twoday policy meeting today. We have seen yields pull back from the levels we saw yesterday. The benchmark at 4. 62 . The twoyear yield at the 5 yield. Bitcoin is popping up above 61,000. Bitcoin is sliding a bit. Down below 62,000. Down 1. 5 . We will watch the moves throughout the show. We have breaking news and data crossing in europe. Silvia amaro is here with me in london. We saw italian gdp and now eurozone gdp. There are a lot of important numbers coming from the eurozone. To give you a quick summary. In terms of inflation which came in line with what analysts were expecting at 2. 4 . We are seeing no change compared to the previous reading. However, this will be an important number for the ecb as they prepare for the potential rate cut in june. When it comes to gdp, we saw the eurozone economy growing above what the analysts expected which was in line with the National Numbers throughout the morning. Let me take you to the Market Action on the back of the numbers. We are seeing most of the european equities moving lower so far in the session. Continuing with most of the sentiment we have seen so far in the session. I want to take you to some of the corporate stories we are monitoring today. It is a very important busy day when it comes to some of the corporate releases. We have seen news from hsbc which announced the ceo is retiring. Noel quinn is retiring. This was on the back of the First Quarter announcements. They announced the ceo will be leaving. At the moment, we have seen shares moving higher by 3 . When it comes to volkswagen, also an important story that we are following this morning. Operating profits declined 20 in the First Quarter. This is an important story to monitor in the context of geopolitics. We are seeing shares moving lower by 2. 3 . Lastly, on the tech space, we are looking at logitech. The Company Reported a 5 bump in sales for the 40 qufourth qu. Frank. Silvia, thank you very much. Big day for Economic Data and earnings in europe. We appreciate the report. Turning attention back to the u. S. Today is the Halfway Point of earnings season and a big one with dozens of companies reporting. Amazon, mcdonalds and cocacola and 3m reporting. It marks the start of the t twoday policy meeting with the Powell Press Conference at 2 00 p. M. Tomorrow. The fed may be expected to keep the policy rate on hold and hint at a timeline for the cut, but the treasury markets are pricing in the opposite. The tenyear yield up 10 this month and now at 4. 62 . Joining me now is emma wahl. Emma, great to have you here in london. Thank you very much for having me. We have to start on the u. S. Fed. No decision expected tomorrow, but a lot of thoughts of what jay powell will hint at here. What is the impact on the european bond complex and broader Global Equities . It is the multitrillion dollar question. All of the Central Banks have been giving forward guidance. It will be interesting to see not so much the Rate Decision which we expect to be held, but the pressor afterwards. I think he will take the opportunity there to reinforce the higher for longer rhetoric and give some scope or some indication of when we expect to see rate cuts. We are still very much in the camp we will see rate cuts this year. It is way off what markets are expecting from the beginning of the year. A few short months ago, this was a sixrate cut year, but now not looking that way. We think a couple of rate cuts this year and a pause. A couple is nebulous. One or two . This is an interesting question. What the depth of the cuts could be here. We end with 25 or 50 basis points lower today. You have to leave room for maneuvers. Fixed income is an attractive asset class right now. We are higher rates. It will be higher for longer. The extra jtrajectory is there. The guest we had this morning hit the range of 2. 5. The fed staying higher for longer and the ecb expecting a cut in june. How does that impact fixed income . Where do you see the biggest opportunity . I think it would be on the short end of the curve in the u. S. I think the best opportunities here are a mixed bag. You have really enticing yields. Just a couple of years ago, in order to get 5 , you had to be in rock n roll territory for fixed income. High yield. Now you can basically get that in the u. S. Thats quite a thing. Knocking in income now and having a strategic option of looking around the globe which is in developed markets. I do also agree the ecb will move before the fed in cutting rates. I think the bank of england will do the same. Interestingly, not just what it does for the fixed income market, but what it potentially does for inflation in the uk because if rates are higher in the u. S. , that means rates are more attractive in the u. S. You could get the secondary imported inflation act because of the impact on the currencies. Credi we mentioned were in the middle of earnings season here in the u. S. And in europe. Automakers under pressure after the reports. What are your expectations . We see the ftse 100 hitting new highs every day. 3 or 4 in the u. S. Indices as well. The ftse 100 hit the alltime high, but it has taken a long time. The last year, we have seen difficult months for the s p 500, but the last 12 months, we had several alltime highs. Japan at an alltime high after four decades. The ftse 100 is stronger on. We feel earnings are patchy than in the u. S. We have seen Great Results from financials. We expect it to be positive. We are mindful inflation is a factor. You are dodging a bit. Do you expect earnings to show and confirm what investors are looking at here with the a. I. Rally going or will earnings push investors one way or the other . I do think the magnificent seven story continues to run. It is a narrow trade. S p 500 will have continued volatility this year. We do think it is an opportunity to take gains and recycle it back into the value which is in the uk despite hitting alltime highs. Emma wall, thank you for coming by. For more on the markets and trading day head, head to cnbc pro at cnbc. Com pro. Time for the check of the corporate stories. Silvana henao is at cnbc hq with those. Silvana, good morning. Good morning, frank. Just one day after seeing the stock close out its best day since march of 2021, elon musk is trimming head count again. The companys senior director of the super charger business and the head of new products will both be asked to leave as soon as today along with the roughly 500 employees that work in the super charger group. Its official. Paramount global Ceo Bob Bakish is stepping down as the merger talks with Skydance Media moves forward. He will leave the companys entertainment division. Bakish joined the company in 1997 before becoming ceo 19 years later. This comes as paramount reported mixed quarter earnings with revenue coming up short of estimates following the earnings release. The company held a Conference Call that lasted less than ten minutes and included no comments from bakish and no questions from the audience. And microsoft will invest 1. 7 billion tover four years t build out Cloud Computing in indonesia. Satya nadella makesinging the announcement as he kicks off the three country tour. Microsoft will train 2. 5 Million People in the region with a. I. Skills. Silvana, thank you. We have more to come here on Worldwide Exchange, including the one word that investors need to know today. First, does mcdonalds have what it takes to break the three Quarter Sales losing streak with the stock down 7 this year. We have your big money movers and why coursera is plunging ahead of the open. Down double digits. And later on in the show, amazon numbers you need to know ahead of the report. It its a very busy hour on Worldwide Exchange. Stay with us. That you and your family need. I promise to put your longterm Financial Wellbeing above any short term transaction. Everyone has a big picture. My job is to help you invest in yours. [announcer] Charles Schwab is proud to support the independent Financial Advisors who are passionately dedicated to helping people achieve their financial goals. Visit findyourindependentadvisor. Com grandpa vo im the richest guy in the world. To helping people achieve their financial goals. Hi baby woman 1 vo i have inherited the best traditions. woman 2 vo i have a great boss. Its me. man 1 vo i have people, people i can count on. man 2 vo i have time to give grandma vo and a million stories to share. grandpa vo if thats not rich, i dont know what is. vo the key to being rich is knowing what counts. Business. Its not a ninetofive proposition. Its all day and into the night. Its all the things that keep this world turning. The gotos 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. Dopeople couldnt oday. See my potential. So i had to show them. Ive run this place for 20 years, but i still need to prove that im more than what you see on paper. Today im the ceo of my own company. Its the way my mind works. I have a very mechanical brain. Why are we not rethinking this . I am more. Im more than who i am on paper. Welcome back. We have the quick market flash on shares of sensata technology. The shares are popping after the First Quarter moves on top and bottom line. The Company Announcing the ceo retiring and new agreement with elliott investments to add new members to the board of directors and ceo search committee. Shares up 20 . Turning attention back to earnings. Consumers spending in International Foot traffic. That is something to watch with mcdonalds releasing numbers today. Mcdonalds looking to a fourth straight drop. Mcdonalds and starbucks reporting today. Thats despite higher prices. Lets talk more about this with brian harburg at morgan stanley. Brian, good morning from london. I want to start off with mcdonalds. You have an overweight rating and target of 320. A 15 upside. Higher than the street has it. What do you see with the company after the struggles earlier this year . Good morning, frank. Thanks for having me. I would say there will be sales deceleration this quarter. Mcdonalds has been cautious about that over the last couple months in the u. S. And internationally. We feel on a relative bases this is a gainer despite the slower sales environment this year which hurts the peers where the environment and mcdonalds comes out in a better place over the competition. You know, a lot of times when we talk about mcdonalds, we talk about higher food prices and consumer being stretched. We forget the business is franc franchising. It is not making food. Franchises increasing year over year at 10 . Is there a danger of it not meeting that level . High are for longer impacts people trying to buy a Small Business which a mcdonalds is here. The economic proposition of owning a mcdonalds is still attr attractive. We have gone through several years of high cost inflation in the u. S. , but also around the world. Opening new stores globally is still a key driver of the franchise revenue. We dont think that equation has necessarily changed. You can have small changes quarter to quarter. Im not worried about the First Quarter and in the long run, it is an attractive impetus to open a mcdonalds. That drives the royalty revenue. We are showing the price increases for the big mac and fries. Sometimes you get sticker shock. I want to move on to starbucks. Implies a 12 upside. You are higher on the street here. What do you expect here from starbucks . Mcdonalds is more on the rocr working class and lower end. This will be a difficult quarter for starbucks. You could see negative samestore sales growth in the u. S. And in china as well. Investors are prepared for this and it is a difficult comparison to last year with starbucks in the u. S. And globally. This could be a tough quarter. I think they may have to adjust their annual guidance as you think about the pressures in the u. S. With the pressures in the middle east and china. You know, brian, you mentioned international with 22 sales. What do you hear in the middle east . Starbucks is facing western focus boycotts. Those have continued. We may see a bit of easing, but not really substantially. It is not unique to starbucks. This is across the brands i cover. It will take time to work through some of the issues. In china, i would expect negative same sstore sales groh this quarter. It is competition and the macro environment. I think the macro environment is the driver with china posting negligative same store sales got it. Im hearing a lot of reports with the Chinese Consumer from beverage makers. A lot of reports. Brian, thank you for your time. Coming up here on Worldwide Exchange, a multibillion dollar shot at halfcourt for the future rights ttohe nba. Details on that report when Worldwide Exchange returns. Stay with us. Its all the things that keep this world turning. Its the gotos that keep us going. The places we cheer. Trust. Hang out. And check in. They all choose the advanced Network Solutions and round the clock partnership from comcast business. Powering more businesses than anyone. Powering possibilities. [disconcerting stomach gurgle] not again. Maybe i should get this looked at . [suggestive stomach gurgle] zocdoc . [talkative stomach gurgle] youre right, i bet they deal with this all the time. Dr. Finley really puts you at ease. Lets do it youve got more options than you know. Book now. Welcome back to Worldwide Exchange. We start off with the big money movers. Chegg posts a 7 revenue decline. They are shifting to a more a. I. Model. You see shares are down 12 . Similar for coursera. The stock is on track to open at or close to the alltime low as investors digest weak Current Quarter and guidance beat. You can see shares down 13 . Nxp semiconductor gaining ground in the early hours. Revenue in the industrial and internet of things segments growing by 14 . The chipmaker is optimistic about the cyclical downturn. Shares of f5 network sinking. Beating estimates, but missing on guidance. F5 is up 20 in the past five months, but under performing in the cyber etf. Shares down 10 as you see here. Time for the check of the headlines with Frances Rivera in new york. Frances, good morning. It happens, frank. Lets start with the diplomatic pressure on hamas to accept the ceasefire with israel. In saudi arabia, secretary of state Antony Blinken called the deal extraordinarily generous on the part of israel and said hamas is the only thing standing between the people of gaza and the ceasefire. The idf is certain to push in rafah if the temporary truce is not reached. Overnight at Columbia University, demonstrators entered a building on campus and some seen breaking windows after students refused to leave campus. And the Denver Nuggets bounced the lakers from the playoffs. Denvers murray delivered the dagger for l. A. The jump shot from the guard allowed them to punch their ticket for the timberwolves and elsewhere, the thunder sweep the pell icans in four games. They go to the second round of the playoffs for the First Time Since 2016. I hope you are set with the cough, frank. Back to you. Im feeling pretty good. I feel pretty good about the playoffs. Excited to see the next generation of stars. Frances, thank you. Coming up here on Worldwide Exchange, changes at the top at one of the major european banks. The stock has popped 17 in the last year. If you havent already, check Worldwide Exchange out on your favorite podcast apps. More Worldwide Exchange coming up after this. 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. It is 5 30 a. M. In the new york city area. 10 30 here in london. Theres more ahead on Worldwide Exchange. Heres whats on deck. Pivoting for the fed. Preparing for the latest fed policy meeting and offering up clueing if or when rate cuts are coming. Earnings also topping the agenda today with results from amazon, but will we follow knockout numbers from microsoft and alphabet . We tee up what you need to