that's all for this edition of "dateline." i'm craig melvin. thank you for watching. good morning and welcome to "street signs. i'm joumanna bercetche. >> and i'm juliana tattetatelba. these are your headlines. >> traders scoop up discounted shares, pushing the stoxx 600 to a three-week high. traders await the finals out of the eurozone.

gas prices pull back sharply as weather forecasters expect mild temperatures to persist this winter. and apple's market cap drops $2 trillion on the first day of the trading year, continuing a year-long decline that's wiped out a trillion dollars from its valuation. good morning, everybody, and a very warm welcome to "street signs. we've got some finals for the pmis for the euro zones for the month of december. it's committed 49.8. that is better than the flash estimate of 49.1 the composite coming in at 49.3 also better than the flash estimate of 48.8 a little better than the market had been expecting based on those initial numbers.

we are seeing that the eurozone economy continued to deteriorate in december, but the strength of the downturn moderated for a second consecutive month, tent actively pointing to a contraction in the economy that may be milder than was originally anticipated. >> 49.3 for december, just to note december was actually a five-month high for european pmi data so it's definitely moving in the right direction. we talk about the likely recession that the eurozone is in, but i guess it gives a little room for optimism. >> let's welcome in chris williamson great to have you with us as always to help us flush out these numbers. it looks like the eurozone surprises to the upside, things not as bad as initially appeared what's different compared to the initial flash numbers we got earlier in december?

>> good morning. yeah, some better than expected readings and certainly better than one would have expected a few months ago to close the year with the eurozone's pmi higher this is a very mild downturn at present. and what we're seeing really as the months preceded is a continuation of the improving trend, which stems really from this sort of easing inflation environment that we've got at the moment it looks like fears of soaring inflation and a big energy crunch that really peaked back in october have alleviated f fears, and the overall gas prices are starting to improve that's feeding the confidence, i

think. >> yesterday we got the german numbers. now this morning the french inflation numbers coming in a little softer than many had expected how is demand holding up you talk about business confidence and it being resilient in the face of easing inflationary pressures what about consumers how is demand? >> it's weakened you talk about stagflation we're in the stagnating bit, really, at the moment where high prices have really eaten into purchasing power and spending by both businesses and consumers. that's certainly nothing like what we were seeing earlier in the year, but the flip side of that is the supply constraints, that big rush of demand that led to lots of supply chain shortages. that's just disappeared now. if you look at delivery times across the eurozone, they're unchanged since december this is the first time since

december that you have not had companies reporting deliveries are getting longer, so this is leading to a structural shift, really, in pricing power away from the seller, toward the buyer. this is the key to everything, really it's changing the whole inflationary environment the weakening demand cwith the heat inflation is climbing now much stickier in the service sector we can see here the index is about 10 points higher than the manufacturing. but the point thing here is service inflation tends to lag manufacturing by about nine months some of this big fall we've got is going to feed through to the service sector in the coming months to help bring inflation down even further. >> it's interesting what you're saying especially about goods inflation and the linkages to

supply chains. i wonder because we spent the last couple of weeks talking about the china reopening and the impact it ee going to have on global supply chance. what is sentiment like as far as businesses are concerned, vis-a-vis these potential supply chain bottlenecks easing even further should china fully reopen >> this is one of the things that helped push business confidence up further. we talk about the difference between the flush and the final numbers. one thing we saw with the final numbers is a greater reaction to what's happening in mainland china in terms of the loosening of covid restrictions and helping boost confidence about the year ahead, that supplies are only going to start improving further as china lifts itself out of the depths of the covid pandemic that it's been going through in 2022. 2023 is going to look a lot different. there is a concern, though, that if china's recovery does lift

off, what that's going to do to prices as many commodity prices will inevitably start to rise as china's economy steps up again so there's a downside to that growth on the whole, it's lifting business confidence, and the supply is only going to get better in 2023 this crunch we've had that's been gone for 18 months, two years, is really behind us now. >> i wanted to pick up on the uk pmi manufacturing data that came out yesterday it came in weaker than the flash mark expectations name by because of the drop in new orders how would you describe the situation in the uk right now? >> the uk does seem to be struggling a lot more than europe at the moment it's, of course, got the disvarj of brexit. it's really hampering business in terms of lack of performance.

it can be largely linked to deteriorating export trends, obviously the eu being a big source of demand that's gone now with more and more clients and shifting away from the uk and all the problems in trading with the uk, and this is affecting other things if you look at employment, in europe it's holding up pretty well, yes, the rate of job creations eased, but they're still taking on more and more staff. totally different situation in the uk where the factories are shedding staff at a faster rate than 2012 with the pandemic excluded this really underscores the difference between the uk and eurozone at the moment in terms of health of factories it's decreasing at an increasing rate in tu k, but we're seeing signs of stay bbility in the

eurozone. >> you paint a pretty bleak picture. how much of the layoffs that we're seeing in the factory sector function of rising input costs and rising wages >> so this is -- in the eurozone, there's more wage growth apparently so in germany as companies are trying to keep hold of labor, a lot more so than in the uk where the wage bargaining power certainly going to be a factor that will probably keep a lid on the uk. with factors -- this is in the manufacturing section i'm talking about. with manufacturing in the uk, shedding labor, of course, it's going to weaken that wage bargaining power to a greater extent than we're seeing in the

eurozone at the moment so i think in europe, wages remain a real critical factor to be keeping an eye on as well as the course of energies as we go through the year. >> chris, certainly a difficult picture for the uk especially. let me just ask you about interest rates specifically for the eurozone we're poised to see further rate increases from the european central bank how prepared are businesses there? how does that factor in to the energy situation and rising personnel and other input costs? >> yeah. those rate hikes have been very well broadcast ahead, so businesses are prepared for more rate hikes as they've come through. we're going to see the rhetoric start to change quite dramatically after another half point rise we're going to see the inflation picture really start to cool unless we see drastic changes in the energy market achbltd i think that's going to lead to a

sea change with businesses going forward. it's hurting it's hurting the housing market in particular. we're going to see that come through. we're already seeing financial services being a key area of weakness in that services pmi, reflecting those higher borrowing costs and tighter financial conditions on the flip side of that, we do have subsidies going through to households and businesses that's helping to offset that management power tightening. you see the impact on the inflation numbers. that's really helping to offset the impact of a higher borrowing cost so it's adding a nice fiscal stimulus >> chris, thank you so much for joining us this morning. chris williamson let's take a look at hue european markets are faring because we did have a solid day yesterday for the year the stoxx 600 is up about two percentage points, 2.3 to be

precise. this morning they're suggesting a whole bunch of data coming out of the eurozone. they're coming in higher than expectations, now at a five-month high for the month of december 49.3 edging closer and closer to that 50 mark. so definitely the data in the eurozone at least is beginning to look a little bit better, combined with the fact we had french cpi numbers, german numbers yesterday, and spanish cpi numbers coming in lower at the beginning of the week. inflation also moving in the right direction. all of this has been a positive setup so far for today the index is up 0.8% this is what the picture looks like again, a lot of green on the board with the exception of the ftse 100 that's the one index only up about 0.8% we're going to talk more about the ftse 100 individual performers later on in the show.

arabile is doing that. some of the best stocks t energy stocks are the ones lagging in today's session. we're going to be talking shortly with charlotte about what's been happening with the french inflation numbers in germany, up 1.3 percentage points this is what sectors look like energy at the bottom oil and gas down two percentage points things like miners having a tough start today. up at the top, up 1.8 percentage points even though we're seeing rates rally a bit. and retail up 1.6 percentage points but there's one stock that's been getting a lot of attention over the last 24 hours, and that is apple today we're slightly higher, up

about 0.7% the big news yesterday apple broke through the $2 trillion valuation to the downside. at the beginning of 2022, apple had $3 trillion. 1 trillion do$1 trillion got wie stock. it was still a torrid year for the company. lots of concerns about consumer tee panhandle going forward and ramifications from the supply chain issues we've been talking about from china as well this is the picture for apple $26789 trillion is the number you need to know another stock jeuliana and i wer talking about yerksd tesla by the end of the day it was down about 12 percentage points in u.s. time mainly the catalyst yesterday

was them falling short of their forecast deliveries for cars by the end of 2022 in addition to growing competition in the space and the fact that they've had to start slashing prices. also let's not forget the embroilment of tesla's ceo elon musk with twitter, which hasn't helped its prospects as well this is a chart of tesla today. let's take a closer look at those inflation numbers. german consumer price inflation eased for a second month in a rein december coming in at 9.6% on the year. that's weaker than expected and significantly lower than the reading in the 12 months to november amid falling energy prices and government subsidisu. energy prices moderated. on the year, consumer prices rose 5.9%. that's the lowest level in three months and well below the 6.3%

economists had been expect charlotte joins us on the set. yesterday we saw positive reaction to the german inflation, german to the downside now it looks like a similar situation with france. >> as you said, positive surprise with this number for december, lower than expected. 6.7% of the numbers. in november looking at the details, they have the numbers energy easing thanks to low energy prices. manufacturing services also between 3% and 4%. food remains high. prices are up 12%. there is the expectation tigges that actually in france it has not peaked yet remember inflation has been kept lower in france thanks to the energy price put in place by the government it's changed now, 15%. there is the sense it will have an impact on prices in the first half of the year

actually the peak could be coming there's that expectation there that's a little bit reflected with bakeries we see in france it's part of the world heritage. there are a lot of bakeries that will have to shut down because they had the double whammy of crop prices being much higher and energy the businesses have negotiated their energy prices for january. they cannot cope a lot of prices have been kept lower. but they i'm have to go up that's a symbolic one in france. that's a very important one. the living price has been at the heart of the presidential election more than a year ago. with ukraine, even more. the cost of food is still very present and it's impacting the price of baguettes >> it's risen on prominence in the last couple of months. >> it's important. it's a staple.

it's on the table every day for people the french revolution started with higher bread prices it's very visible and very important. >> let's talk about energy costs. one of the big stories is some of the nuclear reactors have been undergoing maintenance, they've been down, there have been strikes, et cetera, et cetera what does the outlook look like. >> the nuclear energy has been the strength and waengs ironically half of those reactors have been shut down last year. the good news is a lot of the reactors are coming back online. we're at currently 41 out of 56. they said expect 47 to be back up by the end of the month that will help with energy prices france had to import some

electricity. they've never had to do. so that's helping definitely on the energy front the lack of investment has been in the infrastructure, that with the war in ukraine, it's come across as particularly crucial and tactical as well in france the good news on that front, more reactors are coming back online. >> what are we expecting as far as growth in france? clearly not what we thought but as you say, we have not seen the peak of inflation yet wrchlt are the numbers coming from? >> the forecast they will avoid -- france will avoid a recession this year, the level of growth is in the debate, but not a good growth like this year. they expect it will avoid recession. when it comes to inflation said he expected inflation to have a downward trend over the course

of 2023. they said they expect it would remain high until midyear. maybe the numbers we're seeing this morning will carry on then. there's a question mark because the energy price will be up 14%, 15%. but they do expect the country will avoid a recession this year. >> everything you needed to know about france going into 2023 also coming up on the show, the eu holds an emergency meeting over potential restrictions from travelers from china. we'll have more after the break. we'll be right back.

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so let's go. the digital age is waiting. > . welcome back to the show the european union may follow other countries regarding entry from china it will be discussed at an emergency meeting today. australia and canada this week joined a growing list of countries requiring travelers from china to take a covid test before flying as the country opens up and infections rise beijing says it will hit back at those putting restrictions on

its travelers without identifying any targets. >> the uk is finalizing its details for its own china policy travelers from china will need to provide proof of a negative test to fly, but travelers who undergo random testing on arrival found to have covid are not going to be expected to quarantine they acknowledge one person in 45 in the uk currently has covid, and the main government strategy over the virus is vaccines willie walsh has criticized countries imposing restrictions on travelers arriving from china. he calls it, quote, science politics rather than china facts. >> i want to pick up on these comments if you read the full statement, he's basically saying the travel restrictions have proven to be ineffective because at most they delay the influx of the virus

onshore by a couple of days, so why go through the political challenge when it's inevitable it's going to reach our shores anyway you were so focused on the pandemic and government responses throughout 2020 and 2021. >> i think by and large travel restrictions like these are not particularly effective you don't have to look any further than australia, which had a very restring active policy when it came to incoming travelers. of course, they couldn't stop covid coming to their shores yes nrk the case of australia they were able to delay it for quite some time. but you look at the situation now, it's already spreading throughout the world, and the situation is very different than it was at the start of covid so the prevailing view is that trying to ban a virus by imposing these travel restrictions has not been shown to work very well. so i think the chief is in good

company with these concerns. >> a lot of the western world is highly vaccinated. i guess the question is how effective these vaccines are actually going to prove against other variants that will come from china. >> absolutely. it feels like deja vu like we said many times before oil prices tumbled more than 3% on tuesday after a china sector showed december activities shrunk at its sharpest pace since the covid-19 outbreak weighed on output and demand meanwhile u.s. natural gas prices hit their lowest level since february, plunging more than 10% after warmer than expected winter temperatures across most of north america there are fears of fuel shortages and spiking prices this winter. germany has received its first regular shipment of

liquefied gas from the united states at its new north sea terminal it was inaugurated last month in an effort to help it replace supplies it previously received from russia. i was able to visit it you can watch our special report on cnbc.com. it's been a fascinating topic. one of the key reasons europe has been able to avert a worst-case scenario, lng. >> i've got to admit i have not seen the video yet, but i definitely will. i'll be watching it after the show one of the reasons they were t able to divert away from russian gas is lng. >> all across europe it's a good skplancher on how lng works and what europe is doing specifically to get more of it. also coming up on "street signs," uk grocery inflation'ses slightly in december

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welcome back to "street signs," everybody. i'm julianna tatelbaum >> and i'm joumanna bercetche. the stoxx 600 was pushed to a three-week high. a lower inflation reading from germany boosted sentiment as inflation'ses off record-highs by a 0.1% in december. eurozone contracts less than expected with data provider says it may not be as high as originally forecast. and apple drops, continuing a year-long decline that swiped over a trillion dollars from its valuation.

welcome back we look at the groceryvalue. annualized gross reprice inflation stood at 14.4% for the month of december, easing slightly from december while sales growth at supermarkets continued to out pace traditional grocers in the final quarter of 2022. and the uk ftse 100 was the best, but it's not all good news for uk equities. arabile has us looking at the highs and lows of the uk stockmarket and he joins us now. >> good morning. look, it's certainly been very weird in this sense. the ftse 100 the best performer not among just major european indices but possibly the world over, particularly if you take a

look at cross the pond it will tell you a clearer picture how farthings have certainly grown. being helped by the fact you've seen strong earnings across the front as well as weakness in earnings which has pushed a little bit better off those internationally recognized companies. it's benefitted from the high concentration as well with the energy stocks as well as minors. interesting to note, bp did manage to gain around 42%. shell, 43% clearly giving you a sense that the oil majors did dovery well in this segment. the ftse 100 was defense contractor bma systems we saw them get a few contracts across the uk. sweden, the likes of turkey as well, particularly the latter part of europe

they managed to gain 56% of course, the turbulence in russia and the war in ukraine has played sa role another interesting one has been the miners, the likes of glencore going up. shares of miners, glencore going up 27% in 2022 with bhp also following onaround a 30% growth picture out on that front, outperforming last year. but the question on this one is whether that high dividend that bhp usually puts out is enough to keep investors sort of into that stock for the remainder then of 2023 will they get into that as they did last year outperforming, however, was the key factor not everything has been green, of course, in 2022 we saw the likes of the

homebuilders go down they were all in the red for the most part. this was really around those recessionary fears, the high inflation numbers we saw people not necessarily going into the home market it's been affected quite dramatically you've seen around 47% retailers are the ones, however, to take note of. you look at the data not too long ago, coming up around 8:00, uk retailers are in a lot of trouble over 17,000 shops were closed in the year 2022. that's the worst year in five years and pretty much nearly 50 stores closing every day with over 150,000 jobs lost in the high street and other private retailers as well.

major, major losses coming through for the retailers. a tough one overall. but if you take a look at that overall picture for the ftse 100, we did say it has managed to go up nearly 1% in 2022 then and really being helped by that global sort of perspective then, that truly global attractiveness that has kept investors in that market picture the ftse 250, the ftse 250 has unfortunately been the other win that's gone down quite dramatically this is because it's more linked to the uk economy. let's take a look at what the ftse 250 looks like. it went down 20% on the year a lot of that is because it's more closely related to the uk economy. subsequently falling off by its worst number since 2008. its worst performance since then but as we noted, the likes of the gross resales being quite impactful and interesting.

this is probably the best time to kind of take a look at the ftse 250 after that symbolic statement coming from the french government not recovering to levels that we saw at the beginning of the year so clearly a picture then to say that the ftse 250 losing a little bit, the ftse 100 outperforming the market, guys >> it's so fascinating to take a look back. actually it paints a picture of the uk economy right now if you look, it was defense and energy so we had a war going on and an energy crisis. homebuilders, rising interest rates, an consumer goods retailers because of the cost-of-living increase. so it's really interesting to go back and see how these relative sectors performed based on the uk economy one of the things people always

talk about, arabile, is how cheap valuations are from a global perspective the ftse 100 relative to other indices does look quite attractive what does that say about 2023? >> the ftse looks like the best possible spot to look for some bargains yes, the problem's around inflation and the higher interest rates are still going to be quite impactful. let's take a look at the ftse 100 around 13 with a dividend around 3.8 as opposed to the likes of the s&p 500, which was a pe over on 17 and a dividend yield of 2 president 2 clearly a little more bargain and more bang for your buck could prals be found in the ftse 100, but it's about where exactly you think the bottom is and with those interest rates and inflationary fears still at play and the war in ukraine, it's still going to be a difficult one to call, but

investors are looking for a lot more bargains with the ftse 100 in 2023. >> arabile, thank you for the analysis of all things uk. let's turn now to the u.s. where tesla shares dropped more than 12% after the carmaker missed on estimates for fourth quarter deliveries investors are growing worriedover weakening demand and supply chain difficulties. elsewhere in the tech chain, apple's stop foal below $2 trillion in almost two years it's a stark reversal from the giant's first month of trading last year when it became the only company ever to reach a $3 trillion slal yags they experienced significant disruptions largely due to covid outbreaks and restrictions in china. arjun is joining us. you've got tesla, you've got apple. i'd love to hear your take on

what's happening with apple right now. it's raised eyebrows in the last few months retesting, lows. i think one of the big questions is whether this is apple-specific, tech-specific, or a sign of what's to come for broader markets? >> where do i start? firstly, look, nothing's changed in terms of the outlook in terms of gross stocks. 've still got interest rates on the rise with apple there are a number of issues firstly, investors have an eye on the quarterly results december was pretty bad because of supply chain disruptions. it's all about china we saw restrictionings there which hampered production. then there were worker disruptions as a result of pay dispute and workers walking out.

still that factory has not fully come back to full production it's back but not 100% that's had a huge estimate i would estimate between between 5 to $8 billion revenue. apple is now going to see a decline in revenue for the december quarter if you look back in october, those estimate wars big jump for the holidays that's one issue and then you have china reopening, zerocovid to full-blown covid spreading across the country that's, of course, going to have a huge impact on consumer sentiment and spending as well that's one of the big issues as we look globally, we talk about recession, some of the impact on consumers. you've seen warnings for demand on consumer electronics, and that could filter into iphones

as well. there are lots of different issues where the company could see at least a short-term impact for 2023. >> one thing we haven't touched on was regulation. remember last year you and i were chatting offline about the supposed tit for tat between elon musk and tim cook, the charge that apple charges on its ios platform is apple going to come under pressure from regulators this year to change that or reduce the commission of charges? >> we've seen the eu there was a report that perhaps apple was considering or allowing users to use other app stores on their devices, which would be huge. apple has been incredibly protective over its ecosystem it's built around ios, around using the apple app store and apple's apps there's been a lot of scrutiny

around that. if apple does allow that, that will be huge we've seen them make changes one is around eu's laws around charging and apple having to make their iphones for the futurer be compatible with usb many expect it to have usc b certainly globally it would make sense to make the iphone just for europe. i think if figure there will be changes, it will be within the eu. >> it's absolutely incredible how hard to break away from the ecosystem once you're in it. the they've done an incredibly good job. yesterday joumanna and i talked about tesla shares falling and all the factors that could drive the year ahead we got a lot of feedback on this discussion around how elon musk is affect public sentiment toward tesla it was a company that a lot of

the left were really supportive of in the early days because it's very environmentally friendly, it fit the ethos so well but now because of the character that's elon muvgs a lot of people seem to be falling out of lorch with the company is. that something you're seeing featured in discussions in the investment communities when it comes to the stock >> a few things with tesla if we focus purely on the demand side, there are concerns again, i go back to china. about 23% of sales there's rising competition there. we've got concerns whether people in china are still willing to pay $3,000 for a car, which is roughly how much tesla's vehicles are and other models deechl panhandle certainly a big story there, but arguably the big factor for tesla is elon musk it's the politics, it's the twitter story, which is still huge, and the fear for many

invests you think tesla, elon musk, spacex, now twitter, the fact that his focus is not on tesla is a big concern for tesla and the fact that his attention is divided is a real big concern. loads of investors will either urge him to focus more they could say, i'll going to appoint someone to focus on tesla or the other thirngs i'm going to focus on tesla and lenlet the companies run themselves or appoint somebody else elon musk has apparently promoted the head of china to oversee larger parts of the business tesla has found huge success in china, so elon musk feels this is a person who can help run the global business as well. again, i think that's a small concession and small admittance from elon musk that he can't do it all he actually needs help

it's not been enough at this point to satisfy investors, and short term at least, the demand story is concerning. >> act the fact he keeps selling tesla stock even though he keeps saying he's done selling tesla stocks. >> arjun, i'm sure this isn't the last time we'll be talking about elon musk in 2023. also coming up on "street signs," the u.s. house of representatives fails to elect a speaker in the first vote for the first time in a century. we'll discuss more after the break. it's time for our lowest prices of the season on the sleep number 360 smart bed. science proves quality sleep is vital to your mental, emotional, and physical health. the sleep number 360 smart bed. it's temperature balancing, so you stay cool. it senses your movements and automatically adjusts to help keep you both comfortable all night. our smart sleepers get 28 minutes more restful sleep per night. the queen sleep number 360 c2 smart bed is only $899 save $200.

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welcome back to the show ftx founder sam bankman-fried has pleaded not guilty to eight charges he defrauded investors in his collapsed crypto exchange causing billions of costs. meanwhile u.s. regulators issued a warning to banks over the risk of cryptocurrencies. in a move, the fdic and the

office of the controller of the currency urged lenders to open their eyes for potential or inaccurate misleading disclosures. u.s. republican kevin mccarthy was blocked by three votes. the defeat marks the first time in 100 years the house has failed to choose a leader after a first round vote nbc's brie jackson joins us now with more. brie, give us an overview what the problem is and where we go from here? what happens next? >> reporter: good morning, julianna yeah, this is a historic day for republicans for the wrong reason so an overwhelming number of republicans support kevin makar thing but there's a small faction of right wing members who are blocking his bid for speakership and so kevin mccarthy is trying to rally up the votes from those members

he needs 218 votes and has fallen short of that by 11 he's hoping to persuade some of his naysayers, but his supporters say the stalemate is hurting the republican party who holds control of the house and just delays them trying to move forward with their agenda. >> brie, thank you so much for breaking it down for us. it really is astonishing to see the division within the republican party and see what they do to heal those divides in floblts ahead. let's turn to european markets and see how trade is shaping up today yesterday we saw european equities gain for a third day in a row. it was really that downside inflation surprise from germany which brought sentiments now this morning ftse 100 about a third of a percent green across the board cac 40 up 1.3%

xetra dax up so really broad-based rally. from a currency perspective, here's thepicture. the dollar is trading weaker, down by 1% versus swiss franc. and sterling up 0.8% we did get some interesting data points out this morning. the final pmis for the eurozone painted a more positive picture than we had been expected. better numbers than the flash estimates overall feeding this narrative that they have averted a worst-case scenario for now. let's take a look at how wall street is poised to open we've got green across the board here as well this is interesting that given yesterday we saw a divergent performance. s&p 500 gave a 1% gain to open

lower. we did close off the lows of the day. and in contrast to the positive moves we saw in europe yesterday. >> i love how all theeuropean analysts are out with notes saying they're massively outperforming versus the u.s. stocks we've been trading one day, so calm down. remember last month we had a month of a sub 50 reit we have the fed minutes that they'll be releasing later today. and watch out for any commentary on inflation a smaller increase after four consecutive 75 basis-point rate hikes. i think the minutes are going to be quite interesting there are a couple of things investors will be looking to take away.

number one, what sort of signal do they give, the fact that they went foo for december rrk they going to another 50 or switch to a more normal rate any indication of where things are? and then finally, remember n the u.s., we've been talking a lot about the fact that the headline inflation prints have been coming down. any word on how the committee are viewing these inflationary prints, whether they think that will be good going forward >> absolutely for all the reasons you outlined i think in terms of market narrative this year, one of the themes that's come up over and over again in the last 1 to 2 weeks is the fed and monetary policy may not be as prominent a driver of markets this year as the corporate pifr because we now have slightly better chance of where inflation is going to settle maybe that's too soon to say

but it feels relative to last year we have a better sense of where things are going to shake out. yet from a corporate perspective, it's very unclear how demand is going to hold up and how margins are going to hold up as wage pressure feeds through the system one thing that stuck out was around the supply chain issues and how we're actually seeing a massive easing in the supply chain pressures, and if china continues on this path to reopening, that could really clear the way for a lot of these remaining supply chain issues to clear up. >> it's so interesting because we're sitting here it's january 4th we're trying to read through what potentially could happen in 2023, and last year people were completely off we were talking about it yesterday. last year at this time the market was pricing in only 75 basis points out of the feds so we're complcompletely underestimating. perhaps the big surprise for

2023 is how quickly those inflation rates are going to fall with energy costs coming up pressure again at potential resumption of some of these nuclear reactors in france coming online again that takes off some of the pressure in addition to china coming online. all of that could provide something. a lot of things to watch out for. >> interesting if it ends up being a net positive or net negative sitting with valuations, much more attractive than they were this time last year. that is it for today's show. i'm julianna tatelbaum. >> and i'm joumanna bercetche. "worldwide exchange" is coming up next.

it is 5:00 a.m. at cnbc global headquarters, and here's your top "five@5." futures are pointing to a possible rebound today. and souring sentiment. look no further than apple closing at a $2 trillion market cap for the very first time since 2021 what that means for the broader market ahead. watching shares of tesla, down again this morning after posting its worst single-day drop in more than two years. plus, kevin mccarthy