that's all for this edition of "dateline." i'm craig melvin. thank you for watching. [music playing] ♪ good morning and welcome to "street signs. i'm silvia amaro and these are your headlines the ecb is in the spotlight with the central bank widely expected to keep rates on hold with investors looking for clues on future cuts we will break the decision and bring you christine lagarde's press conference at 14:00 cet.

a profit miss sending spanish lenders lower. a strong signal from nokia sends shares to the stop of the stoxx 600 after it reveals a $653 million share buyback program, but warning of a challenging 20 24624. tesla sends shares lower in the extended trade as the ev maker warns of slower sales this year good morning welcome to "street signs."

we start the show looking at the latest announcement from the norwegian central bank let me get that for you. the norwegian central bank says the rate will be likely kept unchanged at 4.5%. looking at the comments from the norwegian central bank, they are saying the krona is stronger than expected. clear signs the central bank is monitoring what is happening when it comes to the exchange rate the central bank said the overall prospects for the norwegian economy do not appear to have changed materially since the previous report. the policy rate is sufficiently high to return inflation to target within a reasonable time horizon. the norwegian central bank actually sounding confident

about the return to inflation target of course, a very important one for the central bank you can see how we are trading when it comes to the dollar and krona. when it comes to breaking news, let me show you what it comes to the business climate survey of the ifo. this is actually coming in at 85.2 that is lower than what analysts expected of 86.7 we're actually seeing a slight decrease from the december reading which was 86.4 all in all, we are seeing german business sentiment actually a little bit lower when it comes to how they are feeling about the economy and on your korscre

you see the euro/dollar. we are keeping a close eye on the exchange rate ahead of the ecb meeting. it is important to keep an eye on all of this we have news from the norwegian central bank and data from the ifo and we are monitoring the european central bank. when it comes to the ifo data, it just comes hours before the meeting of the uecb. it is the first rate decision of the year i'm pleased to say we have annette joining us from fran frankfurt. i know the markets are not expecting any changes, but when will we get a timeline from the central bank with the potential rate cuts this year? >> reporter: the likelihood is close to zero that we are getting from the ecb of how rate

cuts might look, because the crucial data point they are looking at is wage negotiations and wage developments. only with the data coming in, step by step, they actually will look at the data and assess whether rate cuts might be okay. they are very afraid of cutting too early because inflation could pick up again with wage rounds being quiet it has been pronounced in the euro area especially in countries like germany that is what we are likely getting. i think also christine lagarde will try to push back market expectations a likelihood of 50% of rate cut in april that is ahead of the curve when we look at recent comments from the ecb. the rate cut closer to june or

july from the ecb given they will wait until the data points will come in of course, the german economy is the biggest economy turning south and probably hitting very, very low growth if growth at all during the course of the year will be a concern for the ecb. again, they don't look at growth rates. they look at inflation inflation could be pushed up again. also with freight rates and disruption this is what we should concentrate on the ecb >> annette, he we will come baco you later on don't miss our live coverage ecb rate decision. of course, christine lagarde's important press conference starting at 2:00 p.m. cet. let's turn to the ifo data with clements.

the numbers do suggest that german business numbers have turned negative. tell us what is behind this number >> good morning. it is a setback and it is coming this time from the services sector primarily in manufacturing, the data, incoming data, was better. ing manufacturing companies are telling us their business situation is improving slightly. it is a stabilization. it has been bad in several months, but it is stabilizing at the moment there is bad news from services and retail and construction has been bad for some time it seems that the positive outlook, the expectation that interest rates may come down and wages are growingdoesn't reall encourage companies at this moment they seem to be irritated by

other things by policy uncertainty. overall uncertainty has increased. this is something we see in the data >> i noticed you also recently cut your gdp forecast for the german economy for 2024. elaborate on what you just described there, what is the reason behind this worse economic picture for germany in 2024 >> so, the recent cutback in the forecast was just a result of the tax increases and spending cuts of the government in reaction to the ruling of the constitution court this incoming data is now coming on top of that it seems that companies are holding back investment and consumers are not consuming as we would expect. disposable incomes are growing because of the significant wage increases, but it seems it doesn't translate into spending.

why not? maybe people are irritated by the impression that the german government doesn't seem to have a medium-term growth strategy. how do we respond to the fact that our key industries are effect ed by higher prices and the auto industry is impacted by the electric mobility transfer it seems that there is not much progress or not really a plan for how we should deal with that at the same time we have a growing number of strikes and all of that seems to be shattering confidence. >> i want to address the issue of strikes with you in a moment. before we get there, tell us what you are hearing from the auto industry. you mentioned they are going through structural exchange. what else and what are they saying to you at this stage? >> this month, the data from the auto industry is stabilizing and is rather positive, but it has

been volatile. the overall trend is one where production is actually shrinking and value added in germany is shrinking. with electric cars, a lot of parts and very important parts, particularly batteries, are imi imported in combustion engines, there was overall value. this is now shrinking. of course, in particular in the middle and lower price segment, there is strong competition coming in particularly from china. that prospects for the industry is not great the industry is struggling with i.t. issues. it is certainly not an industry that will drive growth in the future as it did in the last two decades in germany. >> a structural change for the german economy let's turn to the strikes t

it is unusual to see strikes taking place in germany. what could be the impact of the discontent >> i think we have a very powerful union here. it's a train drivers union they have a lot of power and high wage demand or they ask for cut in working time which is fully compensated by wages per hour this will cause significant disruption in supply chains. this comes on top of what's going on in the red sea. this is another concern for companies. it causes, of course, disruption for personal travel and we have a lot of uncertainty if this is a matter of a few days or strikes that last longer it adds to the overall uncertainty. there are estimates this causes something like 100 million euro per day. these things are very difficult

to estimate. it adds to the uncertainty >> another head achache for the economy. i would like to get your comments on what the finance minister said in davos described the german economy as the sick man of europe or rather the tired man of europe. do you agree >> yes, to some extent some people say germany is the old man of europe. being just tired is maybe a benign metaphor. he also said you drink an espresso and you're okay again i'm not sure it would be easy for the german economy the headwinds we are facing with the energy changes and structure change are serious and unlikely to go away in a year or any time soon these headwinds are staying. the challenge for economic

policy is to revcrvitalize grow. it is are more serious than what is suggested by this metaphor of just being tired >> let's see how the government will address the challenging thank you for your time. that was clemens fuest of ifo inst institute. and coming up, the strikes ploughs on we will get to the latest from charlotte after this break shipstation saves us so much time it makes it really easy and seamless pick an order print everything you need slap the label on ito the box and it's ready to go our cost for shipping, were cut in half just like that go to shipstation/tv and get 2 months free switch to shopify and sell smarter at every stage of your business. take full control of your brand with your own custom store.

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with this great offer. plus, ask how to get up to $1000 prepaid card with qualifying internet. welcome back to the show i want to turn to one of the key data points for the market today. that is u.s. dpgdp. the economic growth in the united states is likely to have slowed to the weakest pace in a year and a half. possibly setting the stage for a more pronounced slowdown ahead the fourth quarter gdp data is expected to show the u.s. economy grew at 2%

that is down from 4.9% in the third quarter. the lowest reading since 0.6% decline in the second quarter of 2022 let's turn to u.s. futures to see how we are looking as we approach the equity session stateside. there is a lot of green on the screen we are gearing up for a positive tone, but nonetheless, a cautious move in the markets let's turn to europe and se how the equities are trading in the session. you see the stoxx 600 is currently trading lower by 0.13%. we are seeing investors taking a cautious approach at this stage. let me remind you on wednesday, the stoxx 600 ended the session on a positive note we saw the stoxx 600 gaining

1.18%. that was the best daily performance since mid-november it is different today with investors awaiting the ecb decision in a couple hours time, but reviewing the corporate releases throughout the region with that in mind, i want to take you how we are looking with the geographic spread. you see it is mostly a negative picture across the board it is here in the uk with the ftse 100 trading above the flat line when it comes to the other boards, germany is down 0.3% more pronounced moves with the spanish market down 0.8% similar moves with the italian main market. when it comes to the sectors, this is the picture at this stage. let me start by looking at the

out performance at this stage which is oil and gas up 1% chemicals up 4%. when it comes to the out performance at this stage, let's look at autos down by 1% real estate is also struggling moving 0.88% lower i want to take you to the corporate moves this morning behind me you can see the moves in the banking sector. a bottom line miss with net income rose 1% on the third quarter levels amid expectations of ecb rate cuts this year shares are on track for their biggest one-day drop since march of 2023 dragging the other spanish lenders. taking a quick look. you can see it down 6% the rest of the sector is also

trading lower. we are seeing moves in caica bank 2%. and st micro sales miss expectations after weaker auto growth and lower demand in the sector the company which counts tesla and apple among the clients warned the upcoming quarter will see a revenue decline of 15% year on year l let me see this. we he turn to givaudan reporting a record free cash flow in 2023 up 92% year on year net income over $890 million almost double on the year.

let's look at shares and the stock at this stage. currently trading higher by more than 4%. when it comes to publicis, it will inn investvektfante inv million as it posts a 6.3% rise of organic revenue in 2023 coming above the guidance range. the stock is higher in the session. let's turn nokia the company posted a 27% fall in the fourth quarter operating profit amid lower demand for 5g technology in north america. the company has 43.1% per share. it is moving higher by 6%. nokia is important to keep in mind that earlier this week, we

heard from ericsson and they both are struggling with the america market let's turn to wizz air a more than 16% revenue jump for 2023 coming in it over $1 billion euro the airline posted an operating loss for the period amid headwinds from the geopolitical situation in the middle east cnbc spoke to the ceo earlier this morning and asked them whether recent controversy impacted them. >> we don't fly boeing we take significant interest in the industry i think the system needs to be enhanced i also think manufacturers will step up, too >> do you fear airbus has similar control issues over the quality of its products that boeing has >> we feel comfortable with the

airbus planes. i think they need to step up in light of what is happening in the industry i'm not concerned. i want to tell you about the story with politics and the corporate world. giorgia meloni blasted stellantis for the push to more production to low-cost countries. the country owns fiat and alfa and flags it is moving to morocco for ev makers. and french farmers have set up road blocks across the country and set bales of hay alight they are calling on the french government to lose even regulations and protect them from cheap imports and rising costs. charlotte joins us now with more good morning, charlotte.

it is not unusual to see strikes happening in france. tell us what makes this one different. >> it is interesting because the french government had been watching the protests by farmers in germany they have been worried about contagion effect in france it can get tough and difficult to revolve you don't want to get the farmers on your back the poll showed 80% of the people were supporting farmers in this case we have seen emmanuel macron put out a statement to listen to the demands of the farmers what are those demands that is difficult. the miryriad of concerns. the farmers have been facing higher costs with diesel and gas and electricity and fertfertilir some governments are phasing out the subsidies. the food producers in france are

putting prices down on the pressure of the government at the end of the day, they are taking the biggest cost cuts we are at the end of the chain some of the concerns are cheaper imports and some of the quotas have been waved on products from ukraine after the war in russia. we know the negotiations with ukraine and that is concerning with agriculture tcountries. the french farmers are concerned about this it is a myriad of concerns that is why it is difficult to address. there are concerns around new environmental norms. we know the green agenda is pushed from the u.n. it would be tough for the french government to address those. as we have seen in germany, we saw protests in spain as well. they will try to put some proposals on the table

the new prime minister has a big challenge to tackle the demands and he is having a meeting with the key ministers to try to put some proposals on the table. of course, as you know, in the background is the european election in june we know the far right has been taking a lot of votes from the communities in the farming industry and they have been latching on the issues over the past few days. all this is in the background. for the moment, there are protests despite the french government calling in and if the government can put on the table to try to answer the demands >> there is a lot happening when it comes to the political scene in france. thank you for updating us. coming up on the show, we will be looking at tesla the company missed expectations for its fourth quarter revenue and profit we'll have the latest after this break.

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welcome back to "street signs. i'm silvia amaro with the headlines. the central bank is looking to keep rates on hold and christine lagarde sees business sentiment worsen in the largest economy. >> companies are holding back investment consumers are not consuming as we would expect. disposable incomes are growing with the wage increases, but this is not translating into spending >> we'll bring you the ecb decision and christine lagarde's pre-conference at 14:00 cet. and a profit miss as rate cut expectations weigh on net interest income growth sending

spanish stocks lower. and nokia finishing strong after $653 million share buyback, but warns of a challenging 2024 t tesla slumps in the fourth quarter and putting pressure on theauto sector in early thursday trade welcome back to the show i want to show you how european markets are trading. this is the picture. pretty much red across the board. that is a huge change from what we had seen during the wednesday

session with the main index in europe ending the day by 1.1%. today, as we look at the equity space, perhaps investors are taking a pause as they await the ecb rate decision later on today. also as they digest corporate releases we are awaiting that ecb decision later on and i want to mention the japanese yen we have seen significant moves with the japanese yen off the back of the bank of japan meeting this week. the investors expecting a potential increase in rates around the april time. bringing you back to europe and looking at the euro/u.s. dollar. flat moves as we approach the ecb decision with the euro at 108 against the u.s. dollar. let's show you european bond

markets are trading at this stage. looking at the major yields across the board they are moving higher and actually earlier this week, we had seen investors jumping in o european debt as they try to get that higher yields ahead of potential changes to monetary policy i want to tell you that when it comes to the ecb, at the moment the market heexpectations turn o the first rate cut in june let's see what the message is from christine lagarde later on today. when it comes to u.s. futures, let's take a look as we approach the session stateside. it is a little bit of green on the screen one of the key data points to monitor later on is the latest gdp figure for the u.s. economy. let me bring you back to the corporate earnings we have been discussing here.

tesla shares slid this extended trade after the carmaker reported a fourth quarter profit as a miss. total revenue rose 3% compared to a year ago, but auto revenue rose 1%. this after the carmaker introduced price cuts in the second half of 2023. operating margin improved to 8.2% it was still half the level from a year ago eps also missed expectations tesla warned that vehicle volume growth this year could be lower as it finds itself between quote two major growth waves the ceo elon musk was optimistic about the company's offering of the cyber truck. >> as long as the price is affordable, i see us offering it

at 250,000 trucks a year. >> ar jun joins us to discuss th tesla numbers. arjun, the markets were not pleased with this. >> it was a miss on the top and bottom line, silvia. the fact that q4 auto revenue was up 1%. the warning from tesla that volume growth for the vehicles might be quote notably slower this year in 2023. tesla saw around a 30% rise in vehicle deliveries last year they are expecting a slowdown here which is a long way off the long-term goal of growing 50% year on year the question is and this has been on investors minds, what does it mean for prices and margins of the cars.

one thing tesla has done in 2023 is cut prices on the cars in europe and china as well if the company is saying this it expects deliveries and volumes to remain low this year or slower, that might mean the company may have to maintain the cut prices on the car as well as think about further cuts which, of course, could pressure margins further. that is a big question mark over this year. tesla is saying it is caught between what can calls two growth waves that is with the model 3 and model y. it is looking ahead to the next generation of cars you have the cyber truck the company admitting the production of that is more difficult than it expected due to the complexity. also, elon musk on the earnings call talking about new cars potentially coming out and being produced beginning in late 2025. that is really what the market

is watching for now which is any sign of those cars and what it means to tesla trying to revive some of the fast growth it has seen over the past few years sdplcyears. >> a lot at stake. arjun, let's discuss this with our next guest from rbc. good morning, tom. first, what did you make of the earnings and do you share the disappointment that the rest of the market seems to have felt? >> sure. first, i would say the q4 results, i would not qualify them as a miss i think they were largely in line the focus was on 2024 and the guidance they would give i think it was fairly vague. that may be little concerning. why not give more detail they said that volumes would be done notably in 2024 guess what that's what everyone was

expe expecting. the market has a 2.1 million vehicle delivery number for 2024 that would be up still 16% it was up 40% in 2023. the market and the numbers already have a notable deceleration and growth. that was largely expected. i don't think that is really a surprise the big issue is really on margin an gain, they didn't give much there, but that was concerning because they did say it is hard to predict and there were a lot of questions on the call over what margins will be higher or lower because of the price cutting? that may have surprised folks a little bit all in all, we only value the car business as 10% of our entire price tar get most of the price target for us is on autonomy things that won't occur for several years or decades in some

cases. in that context, i think folks are getting a lot bogged down on 2024 numbers in five or six years, when we look back on the earnings season, it will be akin to netflix when they switched to streaming from davd i think the stock was already down $180 billion of market cap into the print i actually think it will get some retail support in the coming days and weeks. all in all, we have to remember what this company is, a l long-term view and not get bogged down on near-term dynamics >> it is a big company the details are important. i want to focus our conversation now on the margins as you mentioned. the comments from elon musk is interesting. if interest rates come down

quik quickly, margin rates will be good the expectation is the rates will not come down any time soon is the problem on margins actually quite significant and a big one for 2024 >> i don't know if i would share that view totally. in europe, you are certainly true our rates analyst is hawkish saying the rates stay flat in the u.s., our rates analyst here at rbc is more dovish saying it comes down in the back half of the year if you look at affordability in the u.s., remember, that is tesla's main market outside of china. the dynamics look quite favorable for the consumer unemployment is very low inflation has come down quite a bit. look at autos, they have been high we have to say look what happened to the i.r.a

the model y has lost the credit. again, all they need to do is get 525,000 you units per quarter. they did 485,000 in q4 i get it so far, the consumer seems to be healthy, at least in the u.s we have to see what happens in europe there still is a lot of demand for the products he is right. interest rates are a big factor here all in all, it would appear that interest rates should move down, not go up. especially in the u.s. >> it is arjun here. there has been a lot of spec ta ulation for tesla and the talk of the mass market cars at a

cheaper price point than the model 3. how big a deal is that for tesla? do they need to push into the price category at this point >> it is very important. especially for a lot of investors who are not in it for the car story. obviously, that is important for many folks for me, it is important. my view on the stock is 90% based on autonomy. you do need to get a lot of teslas on the road to get fsd in them you need that. we forecast 3 million of those vehicles that the lower priced one per year being sold versus 2 million of the other cars. it is very important i think the comments on the call were actually consistent with what they have been saying back half of 2025, they will be

produced and hitting the roads in 2026. they are important i think we have to take a bigger picture view and realize how this company views the world it is very tactonic. it will be a great way to get fsd on the roads fsd is one of the best consumer products we have in the world today. people just don't realize it >> tom, for you, when you talk about the software story behind tesla, when does that move the needle for the company in your view >> it's a great question again, it has to do with fsd it is an expensive product full self driving product. $200 a month 5% of drivers and people don't realize how amazing this product is and i think that is intentional due to liability once that pricing, we believe,

will come down, it will increase the ubiquity of that product once you see the attached rate of tesla fsd increase, we will see it in the margins and people will understand how amazing the product is and there is the potential of them licensing fsd to other oems. we heard comments in the q&a yesterday. that is when people will understand why the company deserves the valuation it does it is not a car business it is a software and autonomy business >> clear, tom. thank you for joining us tom narayan from rbc coming up on the show, i'll be speaking to the ceo from the from seb we will bring the first on cnbc

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microsoft's market cap hit $3 trillion on thursday making it the second company in the world to achieve the milestone after apple. before pulling back in after hours trade. the stock is up 7% this year and now the second largest company in the world the u.s. safety regulators slapped limits on the 737 max 9 yets jets there will be further restrictions where the side panel blew out after takeoff on the alaska airlines. the faa cleared the way for planes to go back in service after full inspections

let's look at shares of boeing in the pre-market. it is lower at this stage by 2%. investors are not enjoying all of the news around boeing. w when it comes to the suppliers, it is lower at this stage in the pre-market this news on boeing syeing is in other parts of the market as well and our cnbc colleagues will speak to the ceo of american airlines at 13:30 cet. they will be joined by the skceo of southwest airlines at 15:45 cet. now sweden's largest bank, seb is expecting a total dividend of 11.5 swedish krona

the net interest income falling for the first time in three years missing analyst expectations as high interest rate conditions start to diminish i'm pleased to say the ceo is joining us now johan torgeby. good to see you today off the back of the results. first, walk us through the last quarter. >> first and foremost, the quarter that differs from the earlier three in 2023. as you correctly and accurately pointed out, we lived with the tailwind of interest rates going up for some time this is clearly the quarter where nii has broken and you can see it on the loan demand where corporate lending for the investment bank and corporate bank and real estate lending and house lending moves sidelines. this is very much as expected. thinking about monetary policy

and working with the lag at 12-to-18 months, and that is what the central bankers would like to see here cooling off of the economy saying these things, we end a the solid robust year for seb. >> i want to get your thoughts on the outlook for net interest income going forward you just highlighted there in your statement with the results, you suggested that the pos positive effect from higher rates has started to abate could you have seen net interest income and what is the outlook for 2024 >> i like to divide the business we conducted into alpha and beta when you look at the last 18 months, when rates go up, we have $400 billion just shy to work for us as interest bearing assets

those are very good when rates go up. that is over consensus is clearly indicating that we now have a consensus of 75 to 100 basis points cut in the coming year and further cuts in 2025. everything we have seen is reasonable and a reversal. this is previous from negative interest rates in sweden and we operated successfully. it is a very large shift i would think 2024 is the year to navigate before the potential interest cuts then put the wheelwhee s of the economy spinning again. then, if you look at history, we should get fee and commission. activity based banking should c come back. these things swing in roundabout >> these latest results point to

higher impairment. could you explain to us the reason behind that >> we had exceptionally low, not too far off zero basis points of expected credit losses this quarter, there was a slight uptick it is still going to go down in history as one of the best asset quality years of all time. we had in particular withone sie engagement we reserved for a lot of the potential issues these are not real losses yet. we will see if they can retrieve some it is on a low level >> i also noticed in the results that you are seeing higher net expected credit losses could you outline for us where that is coming from and broadly speaking how is the outlook when it comes to the real estate market

>> i'll start by saying do not take whatever we wrote or said as we are concerned with asset quality for 2024 and 2025. it is reflected in the expected credit losses we have taken over the last year or two including the extra reserves for us, it is panning out as exp expected given the natural lag of monetary policy, anyone with a business model will start facing the pusmusic. this is, of course, something and that would impact credit quality. it is not something we are worried about. did you have a second question >> it was related to real estate i was wondering what you were expecting on that front as we are expecting changes to monetary policy. >> real estate is the number one focus where we have done quarterly results in the last 18

months we concluded the analyst call and interestingly, not a single question i think we have been saying the last 18 months, for real estate and commercial real estate weakness, which is apparent and obviously observed and to translate into large-scale losses for the system, we also say it looks unlikely. now we are in the year where real estate companies, of course, still have a lot of problems to sort out in some pockets of the real estate market it will be welcome for them if the cost of inn debtdebtedness e year >> i was wondering are you keen to making any new deals? >> i would not say keen. we have a conservative joust l outlook with 100% organic. we just concluded the business

plan for next year out of the parameters, they are based on organic growth. we announced an acquisition of the plus in germany. that is the credit card company we hope to finalize this year sdpyear >> thank you for your time that was johan torgeby from seb bank don't miss the ecb decision with christine lagarde at 14:30 ceo. that is it for the show. i'm silvia amaro "worldwide exchange" is coming up next.

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it is 5:00 a.m. here at cnbc global headquarters and here is your "five@5." we start with stocks riding a five session win streak as tech continues to power wall street higher. we will see if the key economic report adds fuel to the fire. and also another big day for earnings we are watching shares of tesla taking a hit after a major sales warning for the year ahead. and we are keeping an eye on big blue despite the sour outlook on the economy. another hit for boeing federal regulators put a