♪ warm welcome to "street signs." i'm dan murphy in abu dhabi. let's get to the headlines. chair jay powell's pre-conference is dominated by one issue. >> some of the president-elect's advisors suggested you should

resign. if he asked you to leave, would you go? >> no. >> can you follow-up? do youthink legally you're not required to leave? >> no. china looks to tackle the looming government debt highlighting 6 trillion yuan in a new debt swap plan. plus, european equity markets close out a week on a lackluster week with the stoxx 600 on the flat line. richmont posting weak china demand. and olof scholz facing pressure to hold snap elections with the warning economic conditions are too drastic. >> the businesses don't need a lot of advice. they need stability of the

political framework and that has been missing for quite some time. so, i believe this is now a good time for a new beginning. great to have your company this hour. let's get you across the moves in the global markets. first in the united states where we just have seen the fed cutting rates by 25 basis points as expected with chair powell telling reporters he believes policy is still restrictive and economic activity remains strong. the expectation is for another rate cut in december with markets now pricing a more than 90% chance of a 25-basis point move lower. powell saying he's not in a hurry to bring rates down to neutral sounding a more positive note on the health of the u.s. economy. >> we are seeing strong economic activity. we are seeing ongoing strength in the labor market. we're watching that carefully. we do see maintaining strength

there. so, we think that the right way -- the right way to find neutral, if you will, is carefully, patiently. again, that's not meant to have a specific meaning to the extent the economy remains strong. we have the ability to -- to take advantage of that as we try to navigate the middle path between the two risks. >> powell adding it was too soon to add policy changes as donald trump returns to the white house, but he did warn that u.s. fiscal policy is on an unsustainable path because of government debt levels. powell speculated that president-elect could ask him to resign prompting this exchange. >> some of the president-elect's advisors suggested you should resign. if he asked you to leave, would you go? >> no. >> can you follow-up on it? do you think legally you're not required to leave? >> no. >> do you believe the president

has the power to fire or demote you or has the fed determined the legality demoting? >> not permitted under the law. >> what? >> not permitted under the law. >> not permitted under the law. meanwhile, control of the house of representatives remains in the balance with the republican party seven he seats away from securing majority and a sweep of congressional power. nbc news now projects donald trump has won the battleground state of nevada. it's a state he lost in 2016 and in 2020. the president-elect has won six of the seven key swing states in the election and leads in arizona where the race is still too close to call. president-elect trump named his campaign manager as his chief of staff in the white house. let's get you across how global

equities are reacting to all of this. kicking off in europe, first and foremost and to our heat map where we are seeing stocks on the move. this has been a week where global stocks hit an all-time high. wall street also rallying to fresh records as donald trump defied political gravity to once again become president of the united states. stocks also getting a boost after we saw the fed cutting rates. optimism is the name of the game here. the stoxx 600 pulling lower 509. d down 0.14%. and the bank of england cutting rates. chair andrew bailey highlighting future cuts to come. across the board here, you see the markets pulling lower led by ftse mib off 0.75%. we are tracking a loss on the cac 40. germany's dax down .3.

london ftse is .3% weaker. here are the winners and losers as the markets wrap up an historic week. healthcare better by 1%. travel and leisure and utilities also helping to give the broader equity market a boost here or limit the losses. flipping it over to the sector losers at the moment and as we close out the trading week, it is basic resources dragging the market here off 2.4%. household goods and autos and banks also weaker. let's giftve you a look of how u.s. futures are shaping up with the resumption of trade stateside. the 500 and nasdaq expected to eek out a modest gain. the dow is on the flat line. a lot to focus on the united states, particularly in the aftermath of the most recent fed

cut. let's dive straight into it with matt orton with raymond james investment. matt, welcome to the conversation. thanks for being here. i think what's interesting is the market has held up here, but what's your view? was it right for the fed to cut rates as we head into a higher inflation re-environment should we see president trump moving forward with the spending he is putting in place and the tariffs as well? >> good morning. great to see you. i think it is right for the markets to move higher. there is a lot of enthusiasm over some of the pro-growth policies and what they mean for the cyclical parts of the market. that's why you see industrials and small caps benefit from deregulation to do well and i expect them to do well. we saw the same thing in 2016 play.

cyclical continuing to out perform. the more defensive areas with the movement sideways until the end of the year. i also think the fed was right to cut 25 basis points. even though the economy is in a did place and i argue the fundamental back drop is solid in the u.s., the fed has scoped to bringing interest rates down because the real rate of interest is still ahead of 2% moving into this meeting. there is a lot to loosen a bit and focus on the dual mandate. i actually would push back against the argument that a lot of the trump policies necessarily neaed to be in inflationary. which would be more inflationary. i think we need to see and i think that's why you're seeing rates back off a little bit, too. >> can i ask you as well, powell

was talking about trump's policy plans to come. he said the broad based tariffs will have no near-term impact on the u.s. policy. how inflationary do you think trump's policies are actually going to be? >> you know, dan, i think it will depend on how tariffs want to play out. i also thinkderogaegulatory policies are moving toward consolidation. i think those will not be inflationary and that's why those parts of the market do well. when you move to the tariff side of the equation, if you see tariffs more intended to bring negotiators to the table and actually have stdiscussions in terms of trade and bilateral trade deals, those don't have to

be inflationary and those can be constructive from the trade economic growth perspective, but on the other hand, if you implement 60% tariffs on china and the 10%, those might be inflationary that would lead to the stronger dollar. i think there's a lot that still has to be seen because what we know from politics is a lot of what's said on the campaign an trail and things are walked back and nuance is involved. i don't think right now we can say that trump policies have to be inflationary and that's why i would expect rates to continue to back off a little bit. for investors that are looking into locking in a really good yield, i talked to our financial adviser clients and pension funds and insurance companies, everyone is very excited about the current level of yields. i expect to see that keep a cap

on high longer dated yields going go until there is certainty. >> matt, walk me through how to invest around all of this. one of the key questions is if you are allocating capital in this environment, as we see trump 2.0 starting to take effect across the global markets, what's the strategy? >> i think the strategy is continue to be invested and make sure that you are long in this market. in addition to that, you want to be well diversified. the key theme for the back half of this year is very much still in place under a trump 2.0 administration is a broadening of this market. you will see more areas of the cyclical part of the market continue to work. that's going to support industrials. you can invest down market cap. those are the three key areas i'm focused on.

particularly down market cap and smaller u.s. equities. there's a huge opportunity. you still have historic valuation with large and small caps. it's an under owned part of the market. i think the enthusiasm we have seen over the past couple days sets up a very strong technical back drop as well, especially if you do start to see some movement in money really flow into the smaller cap equity space. i do think there are select opportunities in international equities. we haven't seen that great performance yet because they're treated as a monday olith. allies like india and taiwan become important dgeopoliticall. i think those countries are worth a second look on any form of weakness. >> matt, can i ask you about your strategy around alternatives as well? this is an alternative president. what does it mean for bitcoin

which really rallied off the back of this? over 10% over the course of the week, in fact. how do you want to be thinking about assets like bitcoin which is perhaps going to be back on the front of investor minds through the course of this next trump administration and with trump vowing to make the united states the crypto capital of the planet. you think there would be regulatory change coming for this space as well. >> it's a good question, dan. we don't invest in bitcoin directly, i would put bitcoin and cryptocurrency with gold and silver in the same bucket. i think those parts of the market can continue to do well. those alternative areas are a good barometer number one for risk septentiment and the quote/unquote animal spirits are going. it will continue to move things higher, especially something like a national bitcoin fund is

going to be put in place. when you look at dpolgold and cersilver and other assets, i think central banks continue to look for ways to diversify, china in particular, is going to be under pressure under a donald trump 2.0 administration. you can see those buying of assets. you will continue to see strstr strength. it is a good diversified portfolio. that is key to success in 2025. >> stay balanced. i appreciate it, matt. thanks for the conversation. enjoy your weekend ahead. matt orton at raymond james investment with the live look at the global markets. let's move over to another key central bank. the bank of england cutting its key rate by 25 basis points and

lowering to 4.75%. voting 8 to 1 with katharin katharine mann voting against. steve sat down with the bank of england governor and asked whether he's worried about the rising trend of global debt issuance and whether those risks will increase under a trump presidency. >> the economy. we do have a strong interest in what happens elsewhere. i said this morning, in the press conference this morning, we analyze the uk rates and the issues in the u.s. are important. it is not surprising. we watch it very carefully. i think the uk government and the know the chancellor is focused on this. focused on the sustainability of

the fiscal position. let me say one thing there. of the most important things and i know the previous government a current government here emphasis this is raise the growth rate. we have by historical standards, low potential growth. if we raise the growth rate, the feasibility issue gets easier. >> if the government and public spending degoes up by the great portion, then we're stuck in a terrible loop where we have higher debt for longer and greater interest payments as a nation which eats up more of the growth going forward. >> i agree with the chancellor and the previous chancellor as well. raising the growth rate is a way to ease the situation and tackle these very big structure headwinds that -- >> then you would agreed with the quasi budget. that was all about growth,

wasn't it? >> no, sorry. there are many -- there are many ways to raise potential growth. they have to be credible. they have to be credible. stay with us on the program, when we come back, china announcing the fresh round of stimulus after the week long meeting of the national people's congress. we will bring you all of the details on the other side. stay with us.

welcome back. china plans to raise the local on government debt ceiling by 6 trillion yuan in a fresh bout of stimulus out of the national people's congress in beijing. the national financial and economic committee said the debt swap would insist on revolving

local debt risks. this as the country's finance minister announcing the government will issue sovereign bonds to replenish the capital of big state banks. let's give you a look at the u.s. listed chinese firms. showing downside moves. li auto off 4.22%. jd.com and alibaba lagging here. don't read too much into this. we have seen a 3% rally for mainland blue chips. stocks in shenzhen falling today, of course, investors looking out for the devil in the detail of the latest stimulus measures announced by beijing and assessing exactly what it's going to mean for the economy moving forward. let's get you one take on that. rory green is with us at ts

lombard. rory, we have seen a 1.4 trillion yuan package over the next few years. i want to know what this means for the chinese economy. does it go far enough to address at least the headline of the issues which is growth and, number, two, what does it mean for investor confidence in the world's second large of the economy? he he hello, sir. >> good morning. good start. these measures are not going to add much directly to growth, but they are removing a growth drag. the local governments are hammered by the loss of revenue land sale. that sis a major drag on growth with the property and hits to consumer confidence as well. these measures, which were interpreted as coming in at the

low end at 6 trillion and reading on the fine print, it is coming in at 6 trillion. although they will not add much to growth directly, this is a good sign that beijing is committed to more fiscal stimulus and confirms that beijing will do whatever it takes eventually to stabilize growth. that eventually is key. it's not all going to come in one bazooka-type package. that adds beijing with more measures rolling out some time next year. >> rory, the big question is are chinese policymakers too late here? we already know donald trump is coming back to the white house and his re-election, potentially, complicated further an already very challenging macroeconomics back drop in china.

how prepared is beijing for a new trade war with the united st states? >> yeah, they've seen this one coming. they have been tracking the polls clearly. we know it has been a high weighting within the beijing function. the apc which has been held this week was originally to be held in october. it was delayed until after the u.s. election. it's clearly a factor within the policymakers' thinking. you are right. china is weaker now than in 2019. export growth contribution for q3 was above 40%. that's close to an all-time high for recent years. the export manufacturing is higher than it was during the first trade war. china is more vulnerable to global trade shocks and it was previously. this really ups the onus on

fiscal stimulus to step in and create that dmomestic demand. the pressure is on to deliver fiscal stimulus through infrastructure and through consumption boosting measures as well. >> you say they will need to deliver, rory. expand on that for me. what do we need to see from policymakers from fiscal and monetary policy perspectives and any provisions to keep growth within the 4% to 5% range? >> yeah. we're expecting fiscal measures along four categories. support on local governments. we will see more next year with the special purpose bond quota. one of the highest in recent years. more to come. some form of shantytown renovation and some form of

support for destocking and rebuilding unfinished properties. the third is a bank recap. finance minister mentioned that directly today. that is coming as well. and then the final measure is c consumption boosting. those four measures are all being discussed with additional trillion on each of those. that will give china a firm footing on the domestic demand standpoint. probably not enough with 60% tariffs looming and it is certainly a good start and we can see more coming down the pipeline. monetary is a different category entirely. it will concede the ability to ease domestic rates and push them for more to use kwquantity easing measures. they have been hurt this year by

a stronger dollar. fed in a high are for longer position. they are the same next year with the dollar strengthening and the potential back drop in the u.s. following the trump election. >> indeed. this is fascinating to watch. we mentioned the economic and market implications, but we didn't touch on the dgeopolitic. this is important for the sentiment moving forward with issues like taiwan which is likely a key flash point. we'll save it for the next conversation. rory green, chief china economist at ts lombard. moving on, european leaders about to start a second day of talks in hungary. they faced a lot of questions about the re-election of donald trump. let's go live now to our silvia amaro joining us from the office in london with more on this. silv, walk us through the key

issues on the ground as we see donald trump returning in the u.s. >> the meetings in hungary were the first opportunity for european leaders to basically come together and discuss the outcome of the u.s. election. we know the result, a new trump presidency, poses a challenge for european unity. let's see if the 27 will manage to remain united on issues such as support for ukraine and issues such as potential trade tariffs as well. one source told me yesterday the leaders did believe they could find some common ground with donald trump, particularly when it comes to issues such as china and defense and a broader i inve investment. let's see indeed what will happen. this morning, we got the chance to hear from the outgoing president of the council charles michel. he said all leaders want to work

closely with the united states. >> i'm con frinsed edvinced al want to work would the united states. we had a good debate yesterday, on all top partictopics, includ defense. i passed on this message we like to work with him, including on ukraine. we have to strengthen ukraine and support ukraine. if we do not support ukraine, this is some other regime across the world. >> the conversations are happening among the 27 eu leaders today in hungary coming at time when it is busy on the political scene. of course, we are still dealing with the outcome of the u.s. election and at the same time, there is the collapse of the german government and another source told me yesterday, at some point yesterday, the eu leaders were paying more attention to what has happened in germany compared to the out

c outcome of the u.s. election. the final point, the collapse of the german government was not a surprise for european officials. i have had conversations back in may and june in brussels where officials were telling me they were also preparing for that eventuality. let's see what will happen. it seems we are about to start the new political dynamic and new political moment in europe. let's see how european leaders will react to all of these challenges. >> silvia, thank you. enjoy your weekend ahead. as silvia was talking about the german leaders following the snap election following the government collapse. we will have the latest interview with siemens energy chairman joe kaeser. stay with us. we're back in two minutes. an ime cash payment. call coventryme direct to learn more. we thought we had planned carefully for our retirement. but we quickly realized we needed a way to

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this is "street signs." on cnbc. i'm dan murphy. let's recap the top stories. the fed cuts by a quarter point. the second consecutive cut. powell's press conference is dominated by one issue. >> some of the president-elect's advisors suggest you should resign. if he asked you to leave, would you go? >> no. >> can you follow-up on it? do you think legally you're not required to leave? >> no. plus, china looks to tackle ballooning hidden government debt green lighting a 6 trillion yuan debt plan. and closing out an historic week with the stoxx 600 treading along the flat line and on the earnings front, richemont posts a miss on the first half demand sending shares sharply lower. and the german chancellor

olof scholz faces pressure with the snap elections with the warning economic challenges are too drastic. >> the businesses don't need a lot of good advice. they need stability of the political framework and that has been missing for quite some time. so, i believe this is now a good time for a new beginning. good to have you with us. as we round out your trading week, it has been an historic week for politics and big week for global equities as well. let's show you the trading as we head into the resumption of wall street trade and flagging the major markets. the ftse mib leading losses

by .6%. cac 40 down .3 and london's ftse is down .4. this is the week stocks hit all-time highs and wall street w rallying to fresh records and donald trump defied political gravity being elected as president. and the iag earnings rising 15% with the company saying it expect to maintain its strong financial performance. the british airways owner announced a share buyback program. richemont trading lower after the post sales of 10.1 billion euro in the first half. that is just a fraction shy of expectations. chinese sales at the swiss luxury giant fell 27% on the year with the ceo saying that confidence in the country is low at the moment.

let's go live now to charlotte reed in london. charlotte, what are the earnings telling us? >> we heard from richemont and other players. they are hitting the numbers. down 1%. it was below expectations. we saw growth actually in the previous quarter there looking at the regions and breaking it down. clear where it came from. asia pacific down 18%. the ceo saying the ckconfidencen china is low and is unsure if it reached bottom. the china slowdown is a if phenif phen phenomenon. these numbers are impacting the result. richemont, despite other regions, in america, up 12%.

they expect an uptick now the uncertainty of the election is out of the way. euro is up 6% as well. looking at the divisions, they are catering to the higher end of luxury with the brands and others which is shielding them a little bit from the downturn in the economy caters to the affluent customers there. one brand is watches which is down 19%. we heard from management this morning. the ceo will adopt production levels for the watch business and bringing that to market that matches the real demand. here, we see a stock that is more resilient with luxury up 12% against lvmh because they are exposed to the higher end of luxury. little more resilient, but not

completely resilient with the slowdown in china. that's why we see these numbers and reaction with the stock in the red this morning. dan. >> charlotte, terrific. enjoy your weekend ahead. moving on, industry leaders have urged the government to hold a snap election to address economic challenges in the country. it comes after chancellor olof scholz dismissed his finance minister christian lindner leading to the break up of the coalition. personal adviser to lindner says there is a strong case for a snap election sooner rather than later. >> it is important to reduce uncertainty in economic policy as soon as possible. that is why consumption remains low in germany. we have a stagnating economy and inflation is above 2%. we have huge structure problems

because firms face a mixture of high costs with regard to labor, energy and taxes and regulation. this paper has tried to change this in order to ensure that firms have an incentive to invest in germany again. this is necessary and, therefore, we need a government change that is really addressing these problems. >> our annette weisbach joins us with more. it is important to gauge what is happening here. the coalition is an opportunity for a long overdue economic and policy reset in germany. >> reporter: yes, that's the overall assessment. interestingly, even with ordinary germans think it is high time for a new election. a new poll conducted by the public broadcast show 85% of germans want to have recall elections as soon as possible.

so, it's interesting how a chancellor olof scholz can actually determine that public opinion because clearly he has the mandate from the electorate. it remains to be seen if he will bow to the pressure, perhaps with him saying he needs to do this vote of confidence as soon as next wednesday when he is also approaching parliament with a government declaration. so, it could -- it could be, i have to say, it could be the day when you might see more movement coming out of berlin. that's next wednesday. whether he will move? only the chancellor knows. i caught up with the chairman of siemens energy. a very seasoned business leader, if not the best connected one here in germany exclusively for cnbc. i asked him about his take on

the early elections. >> it is time now we start to have a new beginning. in berlin, it is been going on for quite some time. the businesses don't need a lot of advice, they need stability of the political framework and that has been missing for quite some time. so, i believe this is now a good time for a new beginning and then take it from there. >> reporter: currently it is not clear if the vote of confidence will happen sooner or only in january. what will be your precference? >> i was in washington, d.c. and there for the last three days which was an historical place on this historical date. it caught me from far away. i'm surprised, i would have to say, after seeing the news, that it takes so long with the vote of confidence in january. i think that all of the signs,

which are on the wall, pretty much have an answer to the vote of confidence. i was surprised it took so long. i think the sooner we have a new start and let the people decide who they want to have as a government, the better off our country is. >> reporter: of course, the fact that donald trump is re-moving into the white house, one could say, is also putting more pressure on the german government to get its act together. of course, that is the line from richemont to have a proper government. we might have a government perhaps in may, june or july. it takes a long time in germany to actually get a new government in place. i also asked joe kaeser about what he thinks will be the effects from donald trump 2.0 for germany and europe. take a listen again.

>> we dealt with him in those four years. he did a lot of things which helped the u.s. economy. i mean, he was lowering taxes a lot, which i thought was a good thing. if he brings back jobs and helps in the country. a lot of good things. good intentions. he obviously had his way of doing things. you could pretty much predict what happens or not. at the time, my company had an issue to resolve and his administration was extremely receptive. it takes probably too long to give you examples. i have to say, very receptive to business. >> reporter: what he also said in another part of the interview, though, is donald

trump wants to deal with one partner in europe and that is ideally germany. if there is no really powerful chancellor in place, because obviously, olof scholz is a lame duck by now, then this is a problem. donald trump will never call brussels because he doesn't understand the concept of the european union. it is far too complicated. he wants to have one phone number and this phone number should be germany, potentially, to dilute his attention to france. we need to get our act together with the german government. that's the message here in order to be able to represent our interests in the world given that donald trump will do that quite, i think, with a lot of focus for the united states. >> annette, thank you for your reporting. it's a unique perspective. i'm pleased to say james is

here. distinguished fellow and served as former u.s. ambassador to germany. ambassador, thank you very much for your time. i like you to react to what you just heard there. if the united states needs one phone number in europe, why should it be germany's right now? >> obviously, germany is the strong of the economy. it is the center of politics. it has a good relationship with the other europeans and particularly now with the geopolitical move with poland and others, germany is the key country that can make answers if they now call a snap election and get a new government into power. >> do you believe, though, that we need to, perhaps see that early confidence vote before january and not take so long? the issue being here the political crisis that we now see facing germany at a time when

donald trump is returning to the white house, you say germany should be the number one phone number donald trump has. what has germany done to prove they are worthy given the crisis facing the government right now? >> well, first of all, the government now has collapsed. that is important. you need to move very quickly to establish a new government. they need to do that right now. they need to have their vote of no confidence. they have a constructive vote of no confidence. there is no worry of the instability in the period. the president then needs to dissolve the parliament. the bundedach needs to vote within 60 days so by the time the new trump administration takes office, there is a new government in place. they have a lot of issues and a lot of the issues are tied to the united states and decisions that need to be made on tariffs and on working on digitalization

and other investment issues. these are all very important issues that need to be solved by the two governments together. >> ambassador, i wanted to ask you generally about the impact of the return of president trump in the u.s. on europe expectly. what will it mean for the european political landscape? is it likely we will see the return of right-wing, perhaps more populist governments in europe? or policy shifts to something that is more palatable to the u.s. under the administration? >> actually, what we have seen already in europe is a rise of populous right-wing governments in several countries, including in germany with the alternative germany and connect party have already done a lot to move into the political realm and the election of president trump will actually reinforce that.

the parties have already started talking about how they can work their agenda, particularly on immigration issues, but other issues as well. so, i think it's very important that you see the government actually the new government of germany, have a position to directly with the trump administration. they have done it in the past and they will do it in the future. it's important for them. it's critical for the relationship with the united states. that's very important as we move into the issues such as particularly the war in ukraine. >> let's unpack that then. what do you think america first 2.0 is going to mean for nato and european military and security cooperation moving forward? i was speaking to one analyst earlier today who said that european security may not necessarily be trump-proof enough for this new era as it stands right now. what's your view? >> right now, the europeans need

to build up their military. the defense industrial base is not strong enough to resist russian federation. they need to have that. it's not like you have to do this overnight. you have a period of four or five years in which you need to have that done. that's where the united states and europe and particularly along with the east europeans and the baltics and now the scandinavians who have strong militaries immediate to work together to ensure to keep the peace in europe. it's not -- it's not something you can do without a german government. >> right. you know, trump says he wants to end the war. what's the timeline for that in your view in and what would neeo happen in order for an effective agreement to be reached between russia and ukraine from your

perspective? >> well, there are several things. the first thing that has to happen is we have to decide. we can stop the russian aggression. that is to say in an ideal world, ukraine would win. short of ukraine winning, you need a cease-fire that has to be backed up with security guarantees for ukraine. it looks like it will be a much longer run or the idea of ukraine and nato which russia objects to, obviously. you have to have some sort of security guarantee. that is have an agreement that fits not up like the minsk agreement, but a cease-fire which was broken repeatedly and provided a pause in the fighting. you have to have the ukrainians decide what they want to do. if they are not willing to do the kinds of cease-fire and security agreements, then you also have russia. if russia is not interested, if they get something they don't have to pay for, then they will

continue to -- continue their military aggression in ukraine and we will continue the war. remember, that it is not just in ukraine. it is a larger coordination between russia and china and with iran and now with north korea not only providing military hardware, but also actually troops on the ground. you have -- you have considerable concern about the next greater war that comes in the next period of four or five years. we need to think about it in those terms as well. >> ambassador, fascinating conversation. thank you for taking the time to be with us today. that is ambassador james bindenagel. former u.s. ambassador to germany. coming up on the show, we will wrap up the market moves and traders review the results of the u.s. election. that's next. stay with us.

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welcome back. formula 1 drivers taking a break from racing this weekend after a dramatic grand prix in sao paolo after drivers crashed out in poor weather conditions. in this week's "inside track," we take a close look at how host cities and how the sport provides an economic boost for them. here's a sneak peek of what you can expect. >> the first ever grand prix in sin city generated $1.5 billion in economic value according to local officials. in comparison, the miami grand prix recorded $800 million over it's first two years.

in f1, what happens in vegas will not stay in vegas. liberty media, the owners of f1 have high hopes that race weekends elsewhere will be of epic proportions. >> at the end of the day for me, sport is entertainment. within that world, entertainment is a great world. it relates people. connecting people. given the chance of business to be developed through relationships. >> we really committed to the vision that liberty have to make formula 1 the ultimate sports and entertainment. they are linked together. >> we said we wanted to make a super bowl every event. people smiled and not sure she believed. now with vegas last year, they believe. what is fascinating is having these variety of entertainment options of the core of a formula 1 fan. it has seen a growing fan base.

>> we drive a lot of revenue for these cities which is great, but i also think with the initiatives and popularity of formula 1, we are able to do things like the f1 academy where 60 scholars with 60 women and we bring this cool sport and show the diversity and inclusion and opportunity. hopefully that broadens awareness for our sport and opportunities for young adults around the world. >> so do not miss this weekend's "inside track." it airs saturday at 17:00 gmt. as we approach the end of the show, here are four things to get you up to speed. michelle bowman is due to speak today after the fed cut of 25 basis points. we get the latest consumer sentiment figures out of the u.s. at 10:00 a.m. eastern time. we are looking out for earnings

from paramount global before the wall street open. traders will watch rivian after the third quarter earnings miss. rivian to replace nvidia will r in intel. it has been a week to remember politically and also from the equity market front as well. before we go, let's give you another look at how u.s. equity are shaping up. all of the majors here, the 500, dow and nasdaq are flat. stay with us here on cnbc. that wraps up "street signs." stay with us. "worldwide exchange" is up next. i'm dan murphy in abu dhabi. enjoy your weekend ahead.

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it's 5:00 a.m. here at cnbc global headquarters. welcome to "worldwide exchange." here's your "five@5." can the records keep coming? futures are flat this morning with the dow and s&p on pace for the best week in a year. the fed provides best fuel for investors with the rate cut. jay powell sheds light on the plan for easing. former cleveland fed chief is here. and breaking news in china. new stimulus news to prop up the economy, but shares are falling