combine both classes. austin forkner has been transported to the hospital. they are evaluating his shoulder. we will see how that turns out for austin. cooper webb has conquered at&t stadium gone. for all of us, thanks for watching. good morning and welcome to "street signs. i'm carolin roth and these are your headlines. european equities starting the week on the back foot after record highs and ahead of key inflation data this week berkshire hathaway bangs a record profit bringing warren buffett's cash to a new high, but he says it will take more to get the same returns in the year ahead. all things a.i. dominating

at world congress as deutsche bank tells cnbc they must make changes in order to compete. >> europe has lost its momentum in the digital world as well as the tech course. we are not investing san francisco sufficiently >> we will hear from borje eckholm this hour. if ukraine loses, it will be difficult and whether we suffer great losses is on you if if we remain strong, we will not lose this war.

good morning if you are just tuning in, let's check in on the equity market. we have been trading for one hour this is the picture. the stoxx 600 after hitting a couple record highs last week on the back of nvidia and strong european earnings is pulling back a little bit. taking a prbreather here off 0.% we have a lot of data on tap and still have earnings out of europe to power us forward in terms of the data, inflation numbers from the u.s. and fed's preferred inflation gauge and inflation numbers from euro own and japan and mortgage olympic applications i want to show you the markets here in europe ftse 100 is under a little bit of pressure. the uk watchdog is doing an investigation. the dax is flipping and not far away from the record highs the cac 40 is pulling back a tap

from the recent record highs we hit on friday. off .30% when it comes to the individual sectors, this is the picture. insurance and technology and financial services showing leadership with the basic resources down 1.3%. many of the metal prices under pressure we had downbeat earnings last week utilities and autos on the decline. i want to get back to the market levels and bring you an interesting stat because 11 european companies have been dubbed the granolas poboosted t market to record highs last wrweek which mirrors the magnificent seven. they have accounted for 50% of gains on the stoxx 600 index in

the past 12 months let's get perspective on this with tim hayes at net davis research thank you for coming in, tim the fact we have the leadership in the u.s. and increasingly in europe is a feature of the market or increasingly a big problem? >> it ises always the question he we had other times like this at the beginning of 2000, that was the problem with the bubble. we had the end of 2021 with a narrow period as well which was the end of the bull market we also had a period like this at the end of 2020 where you had a very concentrated market with the same big caps stocks leading the way. what happened is the market broadened out and that led to 2021 which turned out to be a good year and low volatility

with the market broadening out with anticipation of the global economic expansion with earnings growth across sectors globally that created a lot of complacency. by the time we got to the end of 2021, that's when we got narrow again and the market went into 2022 bear market it doesn't have to be negative it can be more reflective of the positive macro environment >> are you seeing the level of complacency right now once again? what would the complacency be about? >> we look at various surveys. the crowd sentiment composite which reached a similar level in 2021 what happens is often times the initial reading of high optimism is increasing competence which moves the market higher. it is when the market gets

complacent and you see dif divergence we started to see signs of the supply chain pressure and commodities moving higher and all of the things which got us into the 2022 bear market. it doesn't have to be a negative sign right now, but it means the longer we remain complacent, we are vulnerable because we priced in the good news with the expectation of the rate cuts it turns out we will not have as many as the market thought that set up a pull back. that can happen on a bigger scale if the market is too complacent and you are vulnerable to a negative surprise >> tim, also the last couple weeks this year is we are seeing a big disconnect with the economic performance of the biggest economies in europe, germany specifically, and we are

seeing record highs on the dax and record highs on the cac 40 at what point will the two diff diverge? >> in germany, for example, the markets are the best leading indicator. if you had this much economic weakness, we will raise expectation of an accommodation. earnings will come through and the market looks cheap on relative valuation basis if you priced that in, then the economy is looking into the future it is a lag to the u.s. which is coming out of the weakness earlier and now the markets are anticipating things are better going forward. >> if we can go back to the chart we showed earlier.

we have the market maintaining double-digit returns we have seen the u.s. out perform. at some point, can europe catch up with the u.s. yes or no. >> we find in the secular trends where they tend to be global in magnitude. europe will maintain a double-digit return with a bit of a lag what happens over the course of the secular bull with the magnificent seven creating the narrow market and the u.s. is 65% of the market cap. it has that impact where the u.s. gets into the bear market, it will have that negative influence on the rest of the market. >> tim, what does all this mean for our asset allocation does it mean we remain overweight? we are constructive on european earnings and european companies

overall. does it tell us anything about china and asia overall? >> we were overweight at the end of 2022 and we went to maximum overweight last year and o overweight in the u.s. since last july. that is still what our indicators are telling us. stay overweight equities. europe is a market. japan is a participant. nikkei has gone back to record highs. we are waiting for that market to broaden out. in general, the issue there is you have good performance from the european markets and latin america. the emerging market is asia. china has started to look better. it looks like they are trying to form a bottom. that is something we need to pay attention to here. >> we are seeing a lot of asset allocators taking a tactical

position in china. they are marginally more constructive on the market. >> yes. i agree with that. i don't know if it is time to take a position on it. we had a lot of the false starts before. you see china which can form a bottom and breakout and have more participation of that which is too early to say. >> tim, thank you for insight. tim hayes at net davis research. let's get back to the story with the uk competition authority launched an investigation into eight british home builders over evidence some firms could share sensitive information with competitors. this as the watchdog says the planning system and limitations of private development led to under delivery of new homes. coming up on the show,

berkshire pushes the cash pile for warren buffett to new highs. we'll be back in two. ah, these bills are crazy. she has no idea she's sitting on a goldmine. well she doesn't know that if she owns a life insurance policy of $100,000 or more she can sell all or part of it to coventry for cash. even a term policy. even a term policy? even a term policy! find out if you're sitting on a goldmine. call coventry direct today at the number on your screen, or visit coventrydirect.com. hi, i'm stacey, and i've lost 60 pounds on golo. (guitar music) i was surprised with the golo plan, i was not hungry. thanks to release, i don't feel the need to go for snacks or go back for seconds. give golo a try. this plan works.

when i was your age, we never had anything like this. what? wifi? wifi that works all over the house, even the basement. the basement. so i can finally throw that party... and invite shannon barnes. dream do come true. xfinity gives you reliable wifi with wall-to-wall coverage on all your devices, even when everyone is online.

maybe we'll even get married one day. i wonder what i will be doing? probably still living here with mom and dad. fast reliable speeds right where you need them. that's wall-to-wall wifi on the xfinity 10g network.

welcome back. berkshire hathaway reported a 28% surge in fourth quarter operating earnings boosted by the gains in the insurance business. the cash pile was a record $167.6 billion as warren buffett said they were running out of investment options. there are no candidates that are meaningful options for capital deployment at berkshire hathaway. arabile, anything inside the u.s. or is the company too big to buy any company with any meaningful impact? >> he is keeping the powder dry in some ways. yes, he has the dividends and short-term treasuries and cash. he has 5% on those. $6.1 billion in short-term

treasuries and cash. he is keeping the powder tdry. he is finding it difficult to move the needle in the u.s. that is difficult with the likes of nvidia shoot the lights out. you have the likes of amd which is considered to be the second wave after nvidia. some of the tent plays in the sector. they have a massive investment in apple. that is the significant part of the business. they sold off 1.1% of the holding in apple last year. in comparison, it is saying for a while, this is a quote from warren buffett in that shareholder letter. for a while, we had abundance of candidates to evaluate. if i missed one, and i missed plenty, as he says, another always came along. there is always another opportunity. now, there are fewer and far

between. he says those days are behind us. >> does it come down to valuation? does he think the market out there and the public market and private market, is just too expe expensive? that is a reflection of the share buy bebbacks. >> that has been the case. even in the past when he has food on the sidelines, so to speak, of the u.s. equity market or equity market in general, it really has been because he felt that valuations are too high. also remember this is somebody who not so long ago did head off to japan and said it would be an interesting case of investment out of japan. this time around, nothing with regards to the side of things with investment. as you have noted, nothing in terms of capital deployment outside of the united states. overall, a net seller of stocks in 2023.

sold net $24 billion worth of stocks. remember there was $10 million of apple shares in the time frame. he has sold more stocks than he has bought which is berkshire hathaway overall. in each of the past five quarters, for five quarters in a row, they have been net sellers. clear indications that not necessarily finding anything game changing at present despite the world of a.i. which is not trusting. >> arabile, thank you. let's stick with a.i. and telco. be mobile world congress is under way in barcelona bringing together the biggest names from across the mobile and connectivity space. karen spoke be to the ceo who said europe needs to play catch up in order to compete. >> europe has lost its momentum in the digital world. we are not investing

sufficiently. there is no kind of one market for europe yet. u.s. and asia and china, all those markets are going first. germany is not making a difference. we want to make a stand that something has to change now. >> you have scaled over the significant operations in the united states. more than 61 million mobile subscribers in the past year or so. how much more scale do you need? >> we have one in the u.s. with our t-mobile activities and here in europe. the others are invested in europe. in europe, there are more than 45 players. in the other markets, there are three players. the economies of scale in our industries in europe are worse. most of the players are not earning the capital cost. how can industries who are suffering that much invest in the digital infrastructure? we are doing our part an of

better collaboration among the telcos, but we need the support from the political institutions here. >> telecoms were meant to maximize the 5g journey with new revenue and sources of revenue. have they not done that enough? >> to be honest, 5g is not making a lot of money. the opposite is the case. people are now using 5g for 4g prices or 3g prices. our price for gigabyte has gone down. telco industries find in germany lost 1% compared to others which raised by 10% or 20%. we are not able to pass through prices because of the overcompetition of our market. we are investing into the infrastructure 5g and fiber. we have to pay spectrum billions to build it. in the u.s., you buy for a long time. on top of that, we are not even

able forthe green transition in europe. we don't understand what brussels is doing for the industry and we are suffering with low capital returns. we want to invest more. >> he seems frustrated. karen asked the ceo about the impact a.i. could have on the industry. >> it will drive it. we are showing the concept and how the world can look like. we see in asia that you don't have to install all the apps. there is a century entry point by an identification. this is now going into softer devices. i'm sure we will see from one of the vendors and we have already human a.i. in the u.s. and some manufacturers coming soon with innovative devices.

maybe the next three-to-five years. >> can i ask how transformative will a.i. befor landscape and telecommunications and will you play in the journey where it won't just bethe valley? >> a.i. is a game changer. it is inventing the wheel. it is impacting every human and it will impact every process and company. this year, at the market, it came and it will stay. ther therefore, it will impact a lot of things. the data with a.i. to serve customers better. the a.i. and data will help me to detect anomalies in the network earlier. it will help automate. it will help increase productivity of my company.

it will automate routines. it can tell you every function. we have already 400 different a.i. cases running across the company which will help us on productivity and on the customer service and customer orie orientation. it will make the quality of our services cheaper and better at the same time. chinese tech firm honor launched the magic 6 pro smartphone on the sidelines of the summit with the tracking a.i. function to allow you to unlock your car by looking at your phone screen. arjun asked the ceo about his company's a.i. plans and the assistance service. >> at first, we start it as a a.i. super app. now we are shifting to transform the a.i. to a.i. personal agent

service. for example, now people in korea use it to summarize their phone call when they have a phone call. this agent summarizes the call. then the directory transforms that to his or her schedule or something. then, this is quite popular. now, we have more than 3 million subscribers. every day, you know, 500,000 are using the apple. >> what is the plan for growth and commercialization? is there a subscription model on the way? are you working with smartphone makers to bring it to the mobile world? >> two directions. one is the enhancing of services

and then if we are successful with that and we can make a subscription model. the other way is to expand to the global. we want to launch this agent service in the u.s. and other markets in the future. >> a new line of smart pphones were launched, but the company has a new operating system that will connect personal devices with our homes and cars. the firm revealed the first ev last month and the president of the company says it has big plans in the sector. >> the electric vehicle is the

traditional car and we think we have the expertise to do this. we also see that after 10 years or 20 years, we feel the landscape will be similar to smartphones. the top five brand will take about 70% of the market share. this is what we see for the future. that's why we decide to invest about $10 billion u.s. in the phase to conduct huge players. this effort with the first car factories. that is why we have announced that in the last year.

i think we are ready and our founder now is fully prepared for our first car of the launch. we will continue coverage with the interview of ericsson. now switching gears. success not returns. petrol chemicals ceo says he is focused on winning trophies after the investment in manchester united. ratcliffe is not looking for a profit. >> it has nothing to do with roi. i just like to see manchester united back to where it should be. >> ratcliffe was launching his ev, but says it is not the only solution to decarbonization. >> the biggest issue in europe

is the european legislators at the moment see the solution for everything and everybody be electric vehicle. i think there will be a range of solutions for transportation issues. there is a large auto fleet with a large carbon footprint. we need a trajectory to improve that. there are a range of solutions that are not all ready to go. hydrogen is one example. i think what we need to be careful of in europe is they don't force a one solution down your throat for all options. coming up on the show, ukrainian president volodymyr zelenskyy renews pleas for aid as the eu and u.s. launch fresh rounds of sanctions on russia. that's after this short break. don't go away.

switch to shopify and sell smarter at every stage of your business. take full control of your brand with your own custom store. scale faster with tools that let you manage every sale from every channel. and sell more with the best converting checkout on the planet. a lot more. take your business to the next stage when you switch to shopify. stop waiting for online orders. rockauto parts ship in a few hours. 24 hours a day. on the carrier, you choose, with tracking at each step. all the parts your car will ever need. rockauto.

hi, i'm kim, and i lost 67 pounds on golo. when i go out with people, they expect me to eat like a bird. they are shocked by the amount of food i eat while losing weight. with golo, i don't need a cheat day because i get to eat the foods i like any day of the week.

what is cirkul? cirkul is the fuel you need to take flight. cirkul is the energy that gets you to the next level. cirkul is what you hope for when life tosses lemons your way. cirkul, available at walmart and drinkcirkul.com. welcome back to "street

signs." i'm carolin roth and these are your headlines. european equities move ahead of key inflation data this week. berkshire hathaway banks record profit bringing the cash pile for warren buffett to new highs. the oracle of omaha says it will take more to get the same returns in the years ahead. all things a.i. dominating world congress in barcelona as europe needs to compete. >> europe has lost momentum in the digital world. we are not investing sufficiently. there is no kind of one market for europe yet. we will hear from borje ekholm this hour. russia's invasion of ukraine

pushes into the third year as the congressional standoff in the united states threatens to derail military aid for the war-torn country. >> translator: if ukraine loses, it will be in for hard times. whether we suffer a great number of losses depends on you, the partners in the western world. if we remain strong militarily, we will not lose this war. let's stay with politics. the u.s. and uk launched a fresh round of strikes on a dozen houthi targets in yemen. this is among a surge of attacks in the red sea. negot negotiators happened overnight in paris and calls for the fight

st. patri stepped up ahead of the offensive in rafah where 1.5 million palestinians are believed to be located. moving on, g7 leaders released a statement condemning the illegal and unprovoked invasion by putin. this as the u.s. aid is at a standstill in the house of representatives. nbc's richard engel asked zelenskyy what would happen if aid did not arrive. >> we would lose a lot of people. we will lose. the united states focused on interior questions. tough election period. that's why it's a little slow. the answer is if to give us

strong package, our steps will be more strong on the battlefield. we will lose less people and we will win. >> in last few minutes, danish police released the information over no foundation of further investigation into nordstream ii. it comments after sweden closed its investigation. u.s. officials say the evidence suggests that the attack was carried out by a pro-ukrainian group. the u.s. has imposed more than a500 sanctions on russia over the death of alexi navalny. the eu adopted the access to the military technology.

silvia ishere with more. >> it is from the u.s. and eu marking two years since the russian invasion of ukraine. to give you details here, when it comes to the announcement from the united states, this is the largest issued package of sanctions since the war began. it targets 500 russian targets, but it also is aimed at russia's state-owned shipping firm. this matters because it is essentially aimed at pushing more oil to be shipped in vessels that follow the oil price cap which was also a very important announcement within the sanctions which have been introduced thus far. from the european prospective, the 13th package of sanction s hits 88 firms and 144 individuals. we are seeing the eu targeting companies in india and china.

this is important because we are seeing the europeans looking at third countries and their role in potentially supporting russia in the war in ukraine. now when you think about how efficient or not the sanctions might be and if you think about what ukrainians are going through on the ground, they will tell you they need more support and these sanctions are appreciated, but they need further support going forward. i had a chance to speak to the top diplomat of the ministry of defense in estonia. he told me he is assessment is are in the darkest hours. >> if we look back to the history before things get better, they usually get worse. probably in the next four-to-six weeks, we are in a position where this needs to happen. there are no scenarios where we

can get transatlantic security without increasing defense exp expenses. we need more weapons and sending out the message we stand firm for european and transatlantic security. >> you are saying the turning point is to happen in four-to-six weeks. that is soon. what do you need to see from higher defense spending to make that change on the ground? >> i think there are 360 degrees of support provided to ukraine. now it is time to put up more ammunition. we all recognize that the manufacturing level of the defense industry is not there yet. we have by the second half the manufacturing capabilities will be ramped up.

in order for this to continue, we need to put more contracts on the table. in estonia, we increased ourexp. we are continuing on an aggressive military support for ukraine and we are expecting new records from the gdp. we hope all of the others will do the same. we have actually calculated if the coalition, the 51 nations who have been supporting ukraine, would allocate 0.25% of the gdp annually, then ukraine would win. this is something that actually sounds fairly reasonable. >> he is the top diplomat at the eastern ministry of defense. his assessment of russia's war in ukraine is negative at this stage. he is saying he is hoping for a turning point in four-to-six

weeks, carolin. that is soon. u.s. aid is critical for the turning point. >> we talked about it lots of times during the show. the bigger question as europe heads into the elections in june and as the u.s. heads into the crucial lelections in november, how do we make sure europe keeps an semblance and united front? >> it is very tricky. the key thing to keep in mind is when you look at public support for ukraine in european union, it is still quite strong. if you think about the european elections and the next round of officials in brussels and if they listen to the public support, the ex-pickpectation iy will continue the support for ukraine. the question is more in the united states and whether a potential return of donald trump to the white house could change the dynamics here.

also to prepare for that eventuality, you hear the europeans saying they need to remain united and they need to continue support for ukraine exactly. they fear a donald trump presidency could put an end to some of the support we have seen from the united states to ukraine. >> it is a big moment for europe to come together and show its strength and unity. we have seen it many times before. brexit and covid pandemic and russi russia's aggression in ukraine. could this be the biggest make-or-break moment? >> it is a make-or-break moment. the problem is when you think about the application of sanctions, they come together, but they come together at the last minute once they convince hungary to approve sanctions. there is fighting within the eu when he it comes to supporting ukraine, but the message and rhetoric is positive when you

compare to the united states. >> silvia, thank you. let's stay with politics. the u.s. elections and former u.s. president donald trump won the republican primary in south carolina taking 60% of the vote and defeating challenger nikki haley in her home state. trump has won all of the republican nominating votes so far with the campaign advisers say they plan to ignore haley in the bid to make her campaign an afterthought. despite the losses, haley is not suspending her campaign. >> i'm not giving up the fight when the majority of americans disapprove of both donald trump and joe biden. south carolina has spoken. we're the fourth state to do so. in the next ten days, another 21 states and territories will speak. they have the right to a real

choice. not a soviet-style election with one candidate. and i have the duty to give them that choice. coming up on the show, we will be hearing exclusively from the ceo borje ekholm from the world congress in barcelona. stick around for that. ah, these bills are crazy. she has no idea she's sitting on a goldmine. well she doesn't know that if she owns a life insurance policy of $100,000 or more she can sell all or part of it to coventry for cash. even a term policy. even a term policy? even a term policy! find out if you're sitting on a goldmine. call coventry direct today at the number on your screen, or visit coventrydirect.com.

what is cirkul? cirkul is the fuel you need to take flight. cirkul is the energy that gets you to the next level. cirkul is what you hope for when life tosses lemons your way. cirkul, available at walmart and drinkcirkul.com. shopify's point of sale system helps you sell at every stage of your business. with fast and secure payment. card readers you can rely on. and one place to manage it all. whatever the stage, businesses that grow grow

with shopify. is it possible to count on my internet like my customers count on me? it is with comcast business. keeping you up and running with our 99.9% network reliability. and security that helps outsmart threats to your data. moaire dida twoo? - your data, too. there's even round-the-clock customer support. so you can be there for your customers. with comcast business, reliability isn't just possible. it's happening. get started for $49 a month. plus, ask how to get up to a $800 prepaid card with a qualifying internet package. don't wait, call and switch today!

welcome back to the show. a quick check of the european equity markets. we are seeing a lot of red attached to the boards. markets are taking a breather on the back of the record levels we saw last week. that was nvidia induced, but a lot of strong european earnings that came through and lifted the markets to record highs. the cac 40 and dax. the dax is inking out a gain of 13 points. the cac 40 is down 0.4%. we have a lot of earnings on tap this week in the form of numbers

from lufthunsa. we have the fed preferred inflation gauge. we are in a wait and see mode with inflation numbers from the yoeurozone and japan. same applied to the euro/dollar changing hands at 108.38. when it comes to the yield pirkt pic pictures in europe, we saw comments from christine lagarde on friday and she said the recent wage data had been encouraging. on the back of the that, we see the yields tailing off. the ten-year gilt yield is

dropping this morning at 4.09%. when it comes to the treasury markets, this is the picture. the benchmark here for the ten-year yield is 4.24%. everything is quiet in the data packed week. i want to show you what is happening with u.s. futures after a record-breaking week last week where we saw the dow and s&p posting fresh record highs. we saw the nasdaq losing 0.3% on friday. we are expecting a pullback in the trading session today. look at the dow jones industrial average. that market could be declining by 51 points. the nasdaq set to fall by 10. the dow gaining 1.3% week to date which is the sixth positive week in seven. we have alibaba chairman who told cnbc that investors want to see more from the company.

tsai said the chinese tech giant has been hurt in recent years by competition and geopolitical tension, increased regulation and the macro environment. emily asked tsai how alibaba is positions itself with the u.s. tensions and ahead of the u.s. november elections. >> we can work on the things we can control. geopolitics and relationships between countries is something that is difficult for us to control, but i think it does make sense for us to read the situation carefully and predict what will happen. i think as i look out into the near future or the medium-term future, the relationship between china and the united states is going to be challenged on the one hand, but also both governments have realized that the two countries need to work

together because there are so many symbiotic things with trade and financial flows and now exchange of people. we just came from the sports summit. we talked how sports can unite the world. that is important as well. i think we are in the new normal which is areas where the two countries compete fiercely against each other, but there are areas where you countries with each other. as a company that straddles these worlds, we have to learn how to deal with it and make the best of it. >> temu and shein is gaining traction in the united states as well as tiktok. can we expect alibaba to enter the u.s. market? >> we will see. they have done a very good job in the u.s. market. that is because consumers are bringing a value proposition to

the consumers in the united states. the fact is china manufactured products are of high quality and you can deliver them at reasonable prices. that's a great consumer proposition. they are very aggressive doing it and we will observe and figure out what we want to do. having said that, the u.s. is one part of the world. there are other markets in the world where we can play in and we have a platform called ali express. we have a platform in turkey called trendy. they have done a very good job in other parts of the world. we'll continue to execute our strategy there. mobile world congress is still under way in barcelona bringing together some of the biggest names from across the mobile and connectivity space. the director general of gsma gave a warning for the sector saying europe is lagging behind

its peers. >> europe is in a specifically dire situation. we call this the investment gap. we launched this concept, if you like, a year ago. quite clearly, data consumption is going up. new technology is around the corner. a.i. will mean we will use the device more, but we are not seeing a return coming. we know the link between a good connectivity and good connected population with businesses to drive gdp growth forward. europe is lagging. u.s. is doing fairly well. china is doing fairly well with connectivity. middle east is moving up. europe is sitting still. this is a huge concern. we will have the commissioner on keynote stage in a while to discuss his view on this fair share. >> european commission did release a white paper last week with so much a.i. noise with

nvidia that nobody paid attention. >> unfortunately. >> right. they talked about the prospect of scale coming into the equation. when there is a move to consolidate network operators to three, there has been a pushback to where the regulators don't try anymore. how does that landscape change? if there is hope? >> in europe, we have over 90 mobile operators. the u.s. has three. smaller than three. china has three. this is a scale game. we just have to find a way to consolidate. this is in market, not across the market. spain is a great example. we have mobile and orange now having to have a remedy to a fourth player coming in. as you say, four becoming three, but there is a push for regulators to push out to have a

fourth operator in the market. it is not a good situation. it is really bad for europe. >> the ceo of the consumer division told karen he is seeing increased consumer demand for a.i. products. >> consumers get there is an application of service that can make their lives easier. it will be an important theme. consumers are weary or aware of a.i. now. there is a lot of demand for products and services that these device manufacturers are making a.i. real for consumers. >> let's get back out to karen who is no barcelona. karen, where is the biggest excitement? >> reporter: carolin, there is hype around a.i. and what that cycle will bring. a.i. has been a big part of the conference for years. we reached the real tipping point now thanks to all of the hype on markets and what will power some of the a.i. solutions

with connectivity. everything we are talking about at the ck conference. it is time to rethink the digital landscape. it was hoped that 5g would bring digital revenue, but the pricing is still 4g pricing. there is no extra profitability here in europe with 5g. we have the four big telecommunication companies on stage with me making a point that it is time for scale consolidation and rethink the landscape. you heard the conversations that there are 40 operators in europe or more with the startups. compare that to just three or two in some of the other markets on continents with the asia market and china with three players. the united states with three or

four players. that will happen mper investmen. that means running a.i. could be a problem. that is one of the big talking points here. new devices coming to the market so flying before. we have not had a huge reinvention of the smartphones in recent years. it is hoped that a.i. can reinn reinvent the smart phones of the futures. samsung has a new ring showcasing. it is plenty to talk about at the conference. >> karen, thank you for that. looking forward to the coverage. the key market to end the week is the u.s. core pce data due on thursday. the price index is the fed preferred inflation metric is

expected to rise in the month of january by 0.4%. our colleagues in the u.s. will speak with jpmorgan chase chairman jamie dimon later on today. that is happening at 18:00 cet. a quick check of the european equity market picture a couple of hours into the monday session. we are slightly under water with one exception of the dax with a modest gain of 12 points. we are not far away from the record highs that we touched at the back end of last week on the back of earnings from nvidia. a quick check on the u.s. futures. expect a pullback here. the nasdaq flipping into the green here. that's it for the show. i'm carolin roth. e u hae"s nt.ng iupex seyotomorrow. xpensive rockauto helps you fix the car you have with body parts interior parts and more do road trips, not car payments! all the parts your car will ever need, rock auto.

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 5:00 a.m. here at cnbc global headquarters and here is your "five@5." we start with a breather. stocks under pressure after the tech led surge. we will see if the rally has staying power facing the latest test and key consumer inflation report. also, speaking of tech, we will get into that with the a.i. buzz which is making its way to the consumer. we are live in barcelona in just a moment. warren buffett scores again. his big bet on japan pays off as berkshire hathaway's caspi