it is 5:00 a.m. here at cnbc global headquarters. here's your "five@5. investors bracing for the latest read on inflation. what it could mean for the fed's historic hiking cycle. and in washington, high-stakes meeting with very little progress as speaker mccarthy and (remain very far apart on key issues around the debt ceiling and on wall street a new warning from a familiar face on the state of the u.s. economy and why we may already be in a hard landing >> plus spending cuts paying off. why they're popping ahead of the

open and later disney gets set to report after the close today but top and bottom beats for bob iger may be the least of his worry. it's wes, may 10th, you're watching "worldwide exchange" right here on cnbc ♪ good wednesday morning and welcome to "worldwide exchange." i'm frank holland. i hope your morning is getting off to a great start let's get a check. we have the s&p facing its narrowest intraday trading range since november of 2021 taking a look at futures, they're red across the board, fractionally lower at this time. this ahead of today's april cpi report with economists expecting little or no change in the year-over-year headline number we're showing it to you right here it's likely to stay pretty much steady at 5% however, core expecting to tick up just slightly you see the numbers right here

estimate, 5.5. previous month, 5.6. the yields, we have seen it move to the upside since the fed rate hike last week that yield back above 4% something we continue to talk about. we're going to talk more about that in just a second. here at the 10-year, about ten basis points higher than a week ago. we continue to monitor the short end with yields on the one-month t-bill popping yesterday's meeting with biden face-to-face. this is a sign of investors retreating to safety we're seeing the yield on the one-month at 5.79. that's more than 1% higher than it was just a week ago, something that we continue to watch. we're also looking at the energy market we saw energy prices decline on fears of the rate hike, but we have seen the move back up wti crude still above $70 a

barrel however, down a percent afnd a half natural gas down less than a percent. turning to washington and that countdown continues to june 1st. when the treasury says it will run out of cash to pay the country's bills. at the white house yesterday top congressional leaders leaving ha high-stakes meeting. there are plans to reconvene on friday as the group of 17 influential wall street leaders including ones from goldman sachs and jp moore began, they call on treasury to, quote, introduce an alternative method of enforcing fiscal responsibility by either requiring the limits to be raised simultaneously with appropriations or by repealing the debt limit all together. drew petrimoulx has more

what do you know >> there was no sign of any solution to the impasse that's leading to worries of serious harm to the economy. >> reporter: after an hour-long meeting between the president and both parties there was what sounded like good news. >> the united states is not going to go into default it never has, it never will. >> reporter: there was also a dose of reality from the republican speak over the house. >> the house has raised the ceiling, the senate has not, and the president said we're negotiating. i find that very odd. >> reporter: a stalemate has washington hurling toward an economic crisis. treasury secretary janet yellen says at the beginning of next month the u.s. will run out of money to pay its debts. >> we're going to meet daily between now and then and everyone in the media understoods the riff of course default. our economy would fall into a

risk reef session. >> reporter: the plan is unclear. democrats want a clean bill to pay the nation's obligations while pushing budget talks off until later. >> we again repeat our plea to speaker mccarthy, take default off the table and let's resume negotiations in the budget process and the in the propose yags process where we have legitimate differences. >> reporter: the leers say they'll reconvene on friday. in the meantime their staffs will continue to meet, searching for a solution with time quickly running out. now, most of the responsibility for finding a solution to this problem centers around two men, president biden and speaker mccarthy, and both are facing extreme pressure mccarthy from hard-line conservatives who could oust him from his job and president biden from the realities of what a recession would mean for his chances at re-election frank? >> certainly a contentious issue. what you're saying is there's a meeting set for friday the staffs will continue

talking. what are we expecting from that meeting on friday? >> so far we know there's a meeting. but when you talk about the staff meeting, that could be the most important part. what happens in washington when you take the political players ow and let the staffs meet to try to craft something, that's when there's progress especially when you come up toward these deadlines. so it will be very interesting to see what the staffs come up with and if there is any progress at this time, again, we're getting close to the beginning of the june deadline that the treasury secretary has laid out both sides are feeling the pressure. >> drew, thank you very much. okay if a looming u.s. default still has inflation, stan druckenmiller believes the u.s. economy is teetering on the brink of recession he is predicting that so-called hard landing speaking yesterday druckenmiller said the downturn could occur sometime in the second quarter t quarter we're in right now he cites several fa fac tors including weakness in retail

sails and the turmoil in the regional banks. >> i'm not predict something worse than 2008, so i don't want to see headlines tomorrow they said something worse than 2008 is coming, but i think it's naive to not be open-minded to some sort of possibility to that effect. >> let's spell out what he's talk about he defines a hard landing as unemployment topping 5%, quarter profits slumping at least 20% and a rise in bankruptcy he adds that policy makers have less wiggle room than in previous economic cycles let's talk much more about this. annika, great to have you here. >> great to be here. thanks, frank. >> i know you represent one of the biggest banks in europe, but certainly you have your eyes on the u.s. do you believe with stan druckenmiller's forecast that we're in for a hard landing in the second quarter. >> one of the oldest banks but, indeed, i think the issue we have right now is we've been

talking about a recession whether it's a hard landing or a medium landing since q3 of last year and whilst we've been talking about it, wall street has held up but the vix is pretty low. we look at what's going on, why are markets holding on ultimately it's all about liquidity. >> by the way, it's anneka i want to make sure i correct that we appreciate you being here. >> sure. >> you and i caught up about this you have an investment the key things are competitive position, strategy, and management investment and compensation give us a sense especially on that last one. why is that last one so

important? >> sure. maybe just zoom in on that before i zoom in on the last one. the volatility we have at the moment and the unpredictability around, for example, liquidity is enormous. that requires more discipline, strict discipline. we find that as dovish as you say whenever we look at company selection, we look at the same three criteria which is looking for a very strong usp competitive position, a strong focus and alignment, and the last one, alignments, is really looking for -- you're talking about company selection, they have shares of their own companies themselves whose incentives whether whether it's pay, bonuses are aligned with what we're looking for and funds

investments who have funds invested of their own. >> one other key authentic for you, when it comes to management compensation, that're not compensated based on sales but instead on return of investment capital or eps just kind of explain, why is that so important? >> it's really important for u i think what you're seeing in this earnings season is the first crack of visibility where you see, for example, typically sales growth is happening faster than profit growth ie, corporate margins are being eroded if you're really looking at the margin level, return on capital level, that's the sort of metric which is really acting in line with not only shareholders but also stakeholders who are interested in alignments not only with shareholders but with

stakeholders that also includes society, sustainability, carbon footprints because even from a pure capitalist perspective, not evenal truism, it's not possible for a company to be successful without taking into account the full stakeholder alignments. >> all right anneka treon. >> let's send it over to pippa stevens. >> starting with the shareholdings which are sinking, an offering better-than-expected guidance, however, the buy now pay later service did see losses more than triple due to concerns about what the company will likely have to pay to service its debts. "virgin galactic"s first quarter

loss widening dramatically as it funds its first space flights in two years with cash at $284 million at the end of the quarter down from $980 million the company says massive costs in research and development expenses will help with its delta class spaceships shares of rivian are higher after the electric vehicle maker recorded a first quarter loss that was narrower than expect and it's on track to meet a 50,000 vehicle product target this year as it works to reduce spending and focus on technologies rivian's ceo will have more on the company's quarter in a cnbc exclusive interview coming up at 7:00 a.m. eastern. >> we'll see you later on the

show. a lot more coming up on "worldwide exchange" including one word investors need to know. first disney and its stock and citi lays out its plan we'll speak with one company using ai to boost lending. later we speak with tina fordham on what the rising risk of f default could mean for your money. a business hour ahead when "worldwide exchange" returns stay with us

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all right. welcome back to "worldwide exchange." taking a look at shares of disney this morning, you can see they're fractionally lower, but they're up 20% this year as the company prepares to report its fiscal earnings for the fiscal quarter after the bell there are ongoing cost cuts including its latest plans for layoffs, but the bigger story about operating losses citigroup noting while net flick and disney have enjoyed a rapid growth in streaming, there's a $10 billion profitability between the two companies with netflix generating $6 billion compared to disney's $4 billion loss last year jason is the author of that research and joins me now. good morning. >> good morning, frank. >> we show the difference between netflix and disney as we mentioned, disney lost $4

billion on streaming how important is the commentary and updates and units that includes disney+, hulu, and espn >> i think it's vital. the most important thing going on right now across all of media is every incumbent media firm is losing money on streaming and netflix is making money and the street wants losses to narrow. i think the more interesting nuance to all this, there's nothing structural about this. there's no reason to be pessimistic about it, but it's definitely the street's number one focus. >> you say it's the street's number one focus there's also a decision bog igor has to make when it comes to hulu are you expecting any updates to give our audience a sense of it. what do analysts like you think he should do >> right so the backdrop is disney owns about two-thirds of hulu

in january of '24 there's a put/call position with comcast disney his to buy in 100%, 30% that they don't own of hulu, or they need to off-load the two-thirds they do own to comcast. so we're sort of half pregnant right now. the street definitely wants disney to sell the hulu stake. they don't think it has much value. we're sort of in the minority camp here. we think it's incredibly valued. we think they should smash them together in a single app there's too many apps in the broader ecosystem anyway simplify it for consumers and make it a general entertainment app. but the street -- we're in the minority the street wants them to off-load hulu. >> people are talking about the so-called culture wars ron desantis, bob iger and disney, is that something investors need to pay attention to is there risk that could hurt the company? >> i don't think so.

there's sort of a carveout piece of real estate down there where disney is sort of in control in florida. let's just say that the worst-case scenario happens and it doesn't exist it essentially means you would put disney worrell at parity with every other park it hachlts i don't think it's a big deal at all. i think it's a political posture. >> speaking of parks, a lot of eyes on the park we'll see if that run can continue in the face of a slowdown jason bazi net, we have to leav it there. the later features elon musk is hoping to roll out in twitter that can second-guess you not paying byungs to go premium. a lot more of w.e.x. in just a moment

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welcome back to "worldwide exchange." the annual disrupter list 50 is out. it includes our next guest of fin tick travis holloway is the co-founder of solo funds travis, great to have you here. >> thank you for having me. >> you have a fintech. give us a sense, how are you

trying to disrupt the traditional financial system >> yeah. what separates solo from everything else in the market is largely that it's completely powered by the people, which means borrowers actually have the ability to create their loan terms and they can post it anywhere they want it means they can decide when to pay it back and how much they can fund the loan directly so it's completely community financed in the real sense of what community banking should be. >> peer to peer. >> exactly no institutional capital all peer to peer. >> we have elevated inflation. a lot of people are calling for a possible recession how would your app come o into play if we do see an economic

slowdown >> yeah, i think it's twofold. one, getting access to capital is incredibly important especially in this macro environmental. overall inflation, cost of living, increases are unable to absorb financial shock and they're looking for access to dollar loans on the flip side you have people chasing in returns with that we're providing one of the best and most attractive returns on the market in a digitalized wayle we're a true definition of digital finance. >> as we secret it conditions and loan conditions tighten up, are we expecting to see more come to the app, maybe a broader range coming to your app >> absolutely. i think we've seen that over the life of the company. when we would have government shutdowns, vanillas would be using our platform who would normally not be in the market for a small dollar loan. covid was a tailwind for us.

now what we're seeing is it's more people who need access to this emergency but, again, with individuals who are also chasing that yield, generating opportunity as well as the markets are quite tumult ross at this time. >> travis, i want to ask you about one thing. you have faced criticism for a tip fee tu on your site. for people to get loans, they're asked to pay a trip. some regulators say that makes the loans have interest instead of the 0% apr that you advertise. what do you say to that? >> yeah. we live in an economy where every day people are tipping whether it's delivering postmates on time, the uber driver or the waiter who brings your filet mignon on time. these individuals are appreciative of some stranger who's offering the ability to take care of their short-term emergency need and that's

exactly what we think should happen we have been able to work with regulators where we have created a path forward and what we're most excited about is they were willing to listen to our story and understand where we were coming from and understand that our intentions are pure and we want to provide the best opportunity for people to get this capital the last piece that i would say is it's very important that regulators are open to hearing innovative models in that regulation by enforcement is not the status quo and that they're open to considering new travis we're going to hear from the founder and chairwoman of kindbody. a surprise shakeup in xi

jinping's inner circle we have a live report coming up on "worldwide exchange" aka, weafter the break. >> announcer: cnbc disrupter 50 is sponsored by the new york stock exchange ♪ it's raising capital to help companies change the world. ♪ opportunity is making the dream of home ownership a reality. ♪ ...and driving the world forward to a greener energy future. [applause] sometimes the only thing standing between you and opportunity is someone who can make the connection. at ice, we connect people to opportunity. what if you could make analyzing a big bank's data... no big deal? go on... well, what if you partner with ibm and red hat, use a hybrid cloud solution to connect data across multiple systems globally, then analyze all that data with watson. okay, but this needs to meet our...

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it's just after 5:30

investors look at the latest look on inflation in the u.s citi looks at what it means for the fed's policy path forward. also key to the markets and your money talks of a potential debt ceiling deal the white house and congressional leaders and a stalemate as the clock ticks toward a potential default. and can you hear me now? elon muvg featuring new features coming to twitter to compete with meta. you're watching "worldwide exchange" right here on cnbc all right. welcome back to "worldwide exchange." i'm frank holland. let's pick up with a check on u.s. stock futures right now you're seeing they're in the red across the board. the s&p, the dow, and the nasdaq all fractionally lower we'll continue to watch. sometimes you'll see an upside during the hour. we're watching treasury with particular focus on the short

end of the curve see the 2-month and 3-month above 5% even the 6-month the 1-year ticking closer since the fed decision. turning back to the u.s. ahead of today's cpi read and the strink of corporate earnings, let's find some opportunity. i want to bring in the one and only josh brown. co-founder and cnbc contributor. i love your home studio. >> these are my pajamas, frank i don't know if you know that. >> where are you looking for opportunity? i know you're looking at big tech why are you looking at alphabet right now? >> well, alphabet is a stock i've been in for a long time and for fundamental reasons, but there is something technical going on, which i pointed out on the air yesterday.

108 has been resistance really dating back to september of 2022 it's making another run. i think if you're trading it you want to see it get convincingly above 108 you want to test it again after the breakdown after lower volume, but this is one of the last cap tech names to really have a recovery. it's definitely been a laggard this year. i think there are some potential catalysts in the second half that would justify the breakout. i'm a long-term investor. >> why is energy attractive right now? >> well, it's an out of favor sector this year, but the fundamentals have not gotten any better or worse than they were last year when there was a huge

rally in the space so i think these are companies that have gotten a lot of discipline they've learned over ten year as what investors really want to see in terms of cash flow. these are not expensive stocks, and i think even though they're out of favor now, that's probably a reason why you would want to take a second look if you don't have current exposure. >> would you go to stock, etf or something like the xle >> personally i own the ieo. i'm not out there trying to pick one or two individual oil or gas producers. i'm just trying to have broad exposure to the space. the ieo differs from the xle in that the xle is predominantly the large integrated global companies like the exxons. ioe is more specific, u.s. oil

and gas producers, so they tend to be large caps, not mega caps or even mid caps, and they're very focused on that space. >> josh, we've got to let you go give us one name you would buy ahead of cpi or after. >> i don't trade that way ahead of cpi or after. but broadly speaking, my names i'm involved in with, uber, alphabet, shake shack. most of these stocks are in a continuing uptrend and i continue to hold them. >> josh brown, thanks for being here. time now to get a check on some of this morning's top stories. our pippa stevens is here. >> frank, that stock is syneos health the group, according to the report, includes elliott

investment management, patient capital and veritas capital. it will pay for clinical research to drugmakers, that stock up 12% meantime twitter is set to add some new futures, elon musk tweeting that they'll add audio and video calls soon tucker carlson has announced he'll relaunch his show on twitter. he has not signed a deal, referring to him as a content creator. he could be rewarded for possible advertising revenue it comes after tucker and fox parted ways in the wake of the dominion lawsuit settlement. >> pippa stevens thank you. turning our attention to a

developing story out of china. china names li yunze as head of the new financial regulatory body eunice yoon joins us what are you hearing about this story? >> it could be about tackling china's debt at the local level. a lot of speculation about this. this person is very little known outside of china but also little known in china his name is li lunze he's current deputy of a pro province he's a veteran banker. he ee's been at two state-owned enterprise banks but never rose to the top ranks of those banks. hi was elevated last october to president zi's elite

a surprise that there was an expectation that the leadership would end up appointing somebody at this super financial regular lighter who has a lot more expe experience the speculation was that it could have been the head of the security regulation. that's not going to happen now there's a strain from the leadership decision we saw back in march when they reappointed some more familiar faces to the west such as the central banker. so a decision that's really surprised a lot of people. and as you can imagine, especially in this kund of environmental where there isn't a lot of information forthcoming, there's a lot of speculation as to why this is, and the combination is that maybe, frank, at a local level he had a lot of experience as a local government official. also he had experience working out financial risks and reforms, and he also has been working, at least in the past, with the banking regulator or former one,

so people think that might allow for some continuity. >> so he has the experience you might expect for somebody in this role. what about the political side? how close is he to president xi? >> well that is something we're not exactly sure he's definitely repeat time and ag again the xi jinping thoughts as we've heard over here. he's been elevated to the top political elite. we're not exactly sure how close he is to president xi jinping. >> thank you as always. coming up on "worldwide exchange," we look at the government's bumping up the limit and what that means for kwlour money. first as we head to breaking some of your big money movers. we're looking at shares of

twilio they're falling. notching its second straight quarter of $1 billion in sales during q1 on the back of organizational and structural changes. airbnb shares sliding in a slowdown of bookings on its experiences segment. it had a strong start to the year and is looking forward to another strong travel season, warning against second quarter comparisons as they overlap pent up demand following the pandemic ceo brian chesky will have much more on the results in his interview at 11:00 a.m. eastern. upstart delivers an upbeat earnings outlook despite revenue coming in at a third of what it was the year before. it expects to deliver more than $2 billion to "i" platform over the next year. much more "worldwide exchange" coming back in a moment. stay with us

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and to washington, and the countdown continues to june 1st when the treasury says we'll run out of cash to pay the country's bills. a at the white house yesterday, they showed few signs of resolving the deadlock, though, there are plans to reconvene on

friday joining us now, tina fordham she's a former chief global analyst at citi advising boards and c-suites about risks and chaincht tina, good morning. >> good morning, frank. >> i don't think we got a lot of answers, and i think there's a lot of questions after which you heard knowing there's a meeting on friday, what's your biggest question and biggest takeaway from yesterday's meeting >> that we're in a hoeing pattern, there's a stalemate, and there's far too much complacency in the markets about politicians doing the right thing at the last second, which is what investors are used to. >> certainly this seems like it's going to come down to the very last minute here. ahead of this meeting on friday, if you were to advise companies and as i mentioned corporate boards that you did at city and as you do with your own company, what would you tell them about the risk of the debt limit most people think there's going to be some resolution, but in

the meantime, where's the risk >> i think it's two-fold first of all, investors are right based on the historic resolutions of this drama, this very particularly american drama around the debt ceiling, which is its a game of chicken, and just like james dean in "rebel without a cause," we go right to edge and there's a just-in-time solution you have to look at what's different in the context what's different in the macro context first of all, we have other serious risks in the million meaning the banking sector wobbles, the u.s. regional banks, obviously the war on ukraine has a geopolitical risk. when you look at the conversion of risks, i woug argue there isn't as much room as we might have seen in previous instances of that ceiling drama for a policy error, a miscalculation, or, frankly, just playing fast

and loose. >> all right so you're saying there's a constellation of risk. you also call this the polycrisis era neither of those sound very good, tina i want to focus on investors for a minute how seriously should investors take and what should they do in response to that risk? >> well, i've explained they should take it seriously people like to put probabilities on this stuff, and it's difficult to do that econ metrically, but let's say there's a material probability of at least a short-term default. that could be around 20% 20% probability events happen in real life all the time so the first thing is stress test your portfolios against even a whisker of a run-in with the debt ceiling because that is more likely now than at any time since 2011 when, you know, we were looking at these

circumstances before also, this isn't just a binary outcome. will they or won't they allow a default? teen way in which these negotiations are handled sends a signal to the world, which is looking for and at u.s. leadership and also talking a lot more about dedollarization than in the past you know, this is a built in advantage that the u.s. has that should be squandered easily so interim scenarios between default and last-minute resolution are also worth bearing in mind. >> so, tina, one last question a lot of people are comparing this to 2011 is this just like 2011, and if it's not, what's the biggest differencing especially for investors? >> i think the biggest difference compared to 2011, apart from, you know, size of majority and these kinds of technical aspects is just the cavalier attitude that we're hearing from members of

congress to be a voice of reason doesn't get you elected these days and to be a -- you know, a person who forges compromise is also not something that is seen as a helpful asset heading into yet another election season. so i worry that we're at a real period of come koz city politics and markets will pay the price. >> tina, you certainly are a voice of reason. always great to have you on. thank you very much for your insight. ahead here on "worldwide exchange," the word every investor needs to know what that critical cpi reading could mean for fed policy and your money cnbc is also celebrating asian american heritage throughout the month of may here's cnbc's global head, ida liu. >> it's prnlt for those in the

asian community to understood the values and cultural nuances and believes of asians, right? for example, we're brought up to be super humble, modest, not tout our accomplishments, work hard, keep our heads down, to be quiet, to not boast, to not brag those are sort of the opposite things that you need to have to be successful in corporate america, but just knowing that and knowing that there's differences culturally is half the battle to understanding more about the asian heritage and the asian culture.

be super humble, modest, not the battle to understanding more

welcome back to "worldwide exchange." let's take a live look at london, hong kong, dc. no matter what time of the morning or afternoon, we're glad to have you with us this morning. time for what we like to call

the w.e.x. wrap-up we start with stan druckenmiller. he believes the u.s. economy is teetering on the brink of recessioning and he's predicting hard landing he said the downturn could occur sometime during the second quarter. china tapping a little noun government official to lead. li lunze being named the head of the new financial regulatory board. rivian said it's on track to meet a 50,000 vehicle target this year. global share buy banks, they soar this report from henderson that says the world's top 1, 200 companies bought back 1$12.3 trillioni ion ion shares. toyota expects to expect a

five-fold jump in ev sales as semiconductor shortages ease and air new zealand plans to rent bunk beds to passengers in coach for about 100 bucks an hour bunk beds. we're gearing up for the trading day ahead. the cpi reading will released at 8:30 eastern and we're awaiting earnings from disney and google. showing latest innovations with the tell giant looking to ai for new endeavors. let's dive back into the markets with cpi front and center but also uncertainty surrounding the debt ceiling and lingering worries about the banking sector joining me now, steven wieting

gl glad to have you. >> thank you. >> what is your word of the day? >> apprehension. it's the lingering issue, debt ceiling time again we've been doing this for 100 years and now they're leaving us in apprehension. there's a good deal built into the front end of the treasury market this is a partial sense that there's a small chance of a shock. we're going to move markets one way or the other the likely outcome, there will be a deal as urinal, but how far they go to the wire and what the compromises are, even fiscal, to avoid tdefault, that will be an important issue. >> it seems like we might face some turmoil if this takes longer to settle than just june

1st. in the past we saw ripples in the economy due to political wrangling. we'll call it that for now. when it comes to portfolio protection, you look at different things why is it so important at this period of time >> it's the type of company that can overarm its dividend, that can grow its dividend, ta has resources that can get through a downturn so those larger healthier firms from balance sheet perspective, that is just plain defense it outperformed really well last year after apprehension will come relief that's what we're doing. trying to earn quality income both in the bond market and in the stockmarket. during that time when the economy is constrained and the fed's, quite frankly, trying to end the expansion. >> as we mentioned, cpis coming up today what are your expectations and

how influential do you think it will be? of course, we have other reports, jobs report, inflation report before that. >> you know, cpi data is really history. the thing that they've been looking at most, the cpi for services which is linked to domestic wages, it's lagging economic indicators. ice been coming down this month is not expecting to show a lot of progress coming down the next few months, i think, will show a greater disinflation and most importantly, 2024 is going to be the period in which we're really going to see it money supply, broad money is subtracting for the first time since the late 1940s now, we can ignoret at time when it's in mild ranges, but after this macro policy boom and bust, we're seeing the burst side of it i think that means much lower inflation in the coming year i think it means the federal reserve will swerve.

there's no good reason for the u.s. economy to show so little net progress since covid started to have a serious downturn now. >> you say there's no reason for the u.s. economy to have a downturn >> there's no reason for policy makers to try to essentially surpass that. >> that's an interesting take, steven looking at the ppi, another point of inflation, the cost of business, what are you expecting there, and is that also a meaningful input for the fed because they said the banking crisis, they were suddenly looking, but they didn't make a decision based on that. >> the fact that we've seen that, we've seen some relief on the good side of the economy and certain service prices are still moving up, there's still penalty up demand, ppi for final demand in services is going to serve some strength. but what we've seen on the good side are leading indicators for

services we've seen generally restrained production we have high and falling inventories. luckily enough, we've seen a little bit of progress on that, but there's a lot further to go in inventories so it wouldn't surprise me again despite the fact we're trying to rebalance it it's going to come with some supply restraint and production in the near term. >> thank you so much that's going to do it for us on "worldwide exchange. we've got "squawk box" coming up next

^^^ good morning a debt skreeling standoff after yesterday's white house fed meeting with lawmakers details are ahead.

stock futures are relatively flat if we don't pay our debts, it's one thing. inflation data, much more important. it probably is we'll get the latest read at 8:30. plus a new warning from famed stan druckenmiller he's bracing for a hard landing. it's may 10th, 2023 and "squawk box" begins right now. ♪ good morning, everybody. welcome to "squawk box" here on c cnbc we are live from the nasdaq market site in times square, yay. i'm becky quick along with joe kernen andrew is on assign management this morning he's going to join us a little later in the show. you can see there are modest declines dow futures off by 30 points, nasdaq down by 2