ble place to do that. for more great stories about work, money, and successful living, scan this qr code and head over to cnbcmakeit.com. i'm ashton jackson, and we'll see you next time ♪ good morning and welcome to "street signs." i'm silvia amaro and these are your headlines. european equities make strong early gains and more green on wall street after a week that saw the trump trade fuel the dow and the s&p 500 to new highs. continental sales soar as

the company confirms the metrics ahead of expectations. and the chinese consumer inflation hits the lowest level in four months while factory deepens despite stepped up stimulus measures. and in hgermany, the chancellor olof scholz is looking to move up the confidence vote paving the way for snap elections sooner than later. >> translator: if everyone sees it that way, then it's not a problem to hold a vote of confidence before christmas. very good morning, everyone. we start today's show looking at the equity session in europe because we are witnessing a change in narrative among european investors this morning. at this stage, you have the stoxx 600 trading above 1% and just for some context here, the

stoxx 600 ended the week last week down .8%. so, there's a difference here in mood as we start a new trading day and a new trading week for european investors. it is true that earlier this morning throughout the asian session, we had witnessed a bit of disappointment really with investors with the chinese stimulus measures, but that is not continuing here in europe at least thus far. let me show you how the different bourses are trading thus far so you get how the european shares are trading at the moment. the ftse 100 is up .8%. looking at france and making strong gains up 1%. similar moves in germany, the dax up 1%. this despite the political uncertainty. as i was telling you in the headlines, the latest economy in germany at this stage will

perhaps get a snap election earlier than the month of march which had been the time line indicated by olof scholz. that could be also adding a little bit of positivity for the german stock market. let me take you to the different sectors to see what is trading and what are the corporate stories this morning. the best sector is construction and materials up by more than 2%. we're also seeing insurance, industrials and chemicals making significant gains this morning. some of these moves are related to the earnings that we gathered so far this morning, but all in all, it is the positive narrative that we are witnessing across the board, across all of the sectors, really. let me show you the worst performing sectors at this stage. we are also still seeing a lot of pockets of green even when thinking about the worst perp forming sectors. look at tell comes, up .6%.

food and beverage trading higher at this stage and moderate pressure with basic resources and autos. when it comes to u.s. futures, this show we're shaping up as we approach the open on wall street. they indicate they could be a positive start to the trading session on wall street. this after what we witnessed last week what was an incredible performance, really, when you think about the u.s. equities. let me just run you through some of the numbers here. looking at the dow, it ended the week at 4.6%. the s&p registering gains of 4.6% as well. the tech heavy index, the n nasdaq, closed the week up 5 5.74%. listen to this, even the small and medium cap index, russell 2k, registered up 8.57%. will this continue this week? we'll find out. at this stage, when you think about how futures are trading at

this staplge, we could continueo see the momentum for the u.s. equities. let's discuss the u.s. with christian at capital fund management. christian, good morning. good to see you. first, i would like to understand and what i highlighted the performance for wall street last week. we know this is very much related to the trump trade and comments from the federal reserve. ultimately, do we have more room to grow when it comes to u.s. equities? >> good morning. thanks for having me. i think the answer to that question is yes. really, what you have to focus on is the fiscal picture in the u.s. baseline, president-elect trump's proposal is to cut corporate taxes from 21% to 15%, extend the individual tax cuts which are set to expire at the end of 2025. basically, that adds to the u.s. deficit and stimulative and

inflationary. i suspect the price action we're seeing will continue. this is not a, you know, a short-term price reaction. it is more of a secular trade that unfolds over the next several months. you know, the u.s. is running a 6% deficit rcurrently and the republican proposals are an increase of 2% to 3%. we are running a 9% deficit in the u.s. again, very stimulative. if we look at europe, for example, the underperformance part of the story is fiscal expansion. the problems in germany, if you look at the finance minister, it's a fiscal conservative. the debate is over spending. the u.s. expansion and part of the out per fformance is relate to expansion. >> let's stay with the u.s. for a moment. you are highlighting a deficit of 9% to 10% for the united states. at what point do you think

treasuries will actually become a problem for u.s. equities? at what point can the performance in the bond market actually cap the u.s. gains in equities given when have a large amount of deficit in the u.s.? >> that's an excellent question. so, if we go all the way back to the '90s, you know, bill clinton and his second term ran on a platform of austerity. he won. implemented tax hikes and spending cuts and that is when the deficit was 5%. outside of war time, we haven't run this level of fiscal deficit in the u.s. if we look at, you know, '23, before the federal reserve pivot, the federal reserve weighed on equities. post election, we hit 4.47 on t tens. i suspect pressure on five with the fiscal back drop will shift

in the performance of risk premium, including equities. the five level could just based on historics could, you know, could pressure stocks. >> we'll keep an eye on that. i would like to get a comparison in terms of the performance for the u.s. equities and european equities. i believe we have a chart that shows us the performance for the stoxx 600 versus the s&p. looking year to date, the stoxx 600 is almost 7%. the s&p is up 25.7%. christian, i would like to understand where do we go from here. is there any sort of upside for european stocks when you compare to what withe have on wall stre thus far? >> probably with historical norms with risk premiums. europe has problems at the moment. you have countries like france and italy that are bumping up to

their fiscal constraints. you have mario draghi. as i mentioned with germany, the issue is fiscal and spending. i suspect without a big fiscal impulse in europe, it's just going to be very difficult to see a similar performance to the united states. so so, the out performance will continue in the u.s. compared to europe. >> continuing with the united states. we know donald trump is going to be the next president and looking at some of his policy row pose als, there is a risk of further inflation for the united states economy. what i would like to understand is when you think about monetary policy for 2025, have you adjusted your expectation as a result of inflationary measures, i should say, from trump 2.0 presidency? >> yeah, the expectation is that inflation will go higher.

this is really the simple observation that fiscal finds its way into the real economy through spending and it's inflationary. we were pricing six cuts into 2025. the election and powell was hawkish. we are pricing now three through 2025. i think the bank of england is a good example of this. so, you know, they just cut at the last meeting, but said they would be cautious with the budget. that is not doing any austerity. it's a spending program. that's potentially inflationary and they are talking caution. we saw that in the uk as well. i suspect the federal reserve is eventually going to make similar types of comments. it was a little early for

chairman powell to make comments around president-elect trump's policies. we know it is expansionary. it is on the front end of the curve. more cuts will come out and the front end will back out. >> christian, i wonder if you are taking seriously the comments around fed independence or the lack of it inthe future to be honest because this was a debate when donald trump first had his presidency. now looking at the comments from elon musk and the #endthefed. is this a problem when you think about monetary policy going forward? are there any sort of risks for monetary policy as a result of a new trump presidency? >> the risk is not zero. we have to see how that risk plays out. there is a shout out with shadow chair. it can definitely muddy the

picture with the messaging. chairman powell has been a great central banker. the committee has been responsible. they reacted appropriately to inflation. they just have to maintain their independence. it is very important. it is a cornerstone of the institution. it ill watwill be interesting h goes forward. that is on the republican administration. in terms of managing the ex expec expectations, theed federal reserve is a suber tanker. they move very slowly. for investors, that's an important risk to watch. >> obviously. we'll continue to monitor the comments. thank you for your thoughts this morning. that was christian dury at capital fund management. speaking of the fed, neel

kashkari says president trump tariffs proposals could have an impact on inflation if other countries respond, but a one-off move would not have a long term fkt. speaking to cnbc, neel kashkari said the deportations would likely disrupt some businesses. we'll hear from a slew of fed speakers this week amid questions about president-elect trump and the future of the central bank's independence. as we highlighted in the conversation with our previous guest, x owner and tesla ceo elon musk appeared to endorse calls for the white house to have control over the u.s. monetary policy. musk replied with a 100 emoji to senator mike lee saying the president should have control of the fed and the entire executive branch of the u.s. government using the #endthefed.

looking at tesla, the ev maker moves higher to a $1 trillion market cap. we have seen this stock performing quite well in the wake of the election given the links between elon musk and donald trump. now another asset class that has performed well in the wake of the election stateside is actually bitcoin. it has surged past the $80,000 mark for the first time amid trump's sweep of the remaining electoral college votes rising as much as 4.5% on sunday alone. this put the cryptocurrency gains at more than 20% since election day. overall, crypto executives have welcomed the result with the binance ceo of the golden era for the currency. traders still think it has further room to run. you can find out more on

cnbc.com. coming up on the show, china's deflation problem isn't going away with new figures showing factory gate prices falling faster. ha me tas teilafr this break. has no idea she's sitting on a goldmine. well she doesn't know that if she owns a life insurance policy of $100,000 or more she can sell all or part of it to coventry for cash. even a term policy. even a term policy? even a term policy! find out if you're sitting on a goldmine. call coventry direct today at the number on your screen, or visit coventrydirect.com.

welcome back to "street signs." now speculation over montcler's acquisition over burberry is heating up. staff at one of the burberry's flagship store in london have been told about the takeover. one tweet suggested the italian luxury brand could approach burberry and take on the largest

shareholder of lvmh. moncler refused to comment over the rumors when approached by cnbc. in other corporate developments this morning, continental shares are accelerating after the third quarter core profit beat with the suggested ebitda coming in at 873 million euro. the auto parts maker lowered the top part of the group outlook by 500 billion euro with sales coming in as a maximum of 42 billion. in other corporate developments hannover re hiked the profits by 200 million euro. this after sales rose to 20 billion euro in the first nine unde months of the year.

in terms of the data we obtained this morning, consumer prices in china rose at the slowest pace in october while producer price inflation deepened. i'm pleased to say duncan wrigley is joining us this morning. good to see you. i know investors were not very pleased with details we obtained on friday from chinese authorities. were they right? were you also disappodisappoint? do you think they should be doing more? >> i think they should be doing more. i think they will do more. the problem is how they are messaging to the markets. governments are not in tune with what the market expects and they have been building up expectations for a fiscal stimulus. i think the point of view from beijing, they see china's problems as structural and they need to be dealt within a

systemic fashion over several years, plus, you also have trump coming in next year and the markets are hoping for a much faster and bigger reaction which isn't happening. >> will they actually get that? you expect chinese authorities to do more. why not announce further stimulus now? >> well, the kind of policies china is likely to put together are going to be complicated. they are talking about fiscal reforms and taxation reforms and reconfiguring and local central governments. all that involves hundreds of thousands of actors. it's reform. not just money. there are other planks put together. the real estate sector, long suffering real estate sector. what beijing is doing is throwing a bit more support to see what happens. there was another round that came in and provided a boost in

the tier one in the city. we will see once that starts to fade is another dollop support for property. >> i wonder if this, to some extent, miscommunication is likely to be a problem with investors expecting more with the chinese authorities not delivering. is this the sort of environment we should expect. >> yes, in short. >> for how long? the pressure on the economy is real and the investors are demanding more action. >> i guess compared with some of the previous downturns. the global financial crisis, the pressure was very severe and short t-term and urge thant and government leapt into action. this time is different because the pressure the economy has been prolonged since covid and continuing in the reopening and because of that, because there's not a sharp urgent crisis, the

chinese government has taken a series of steps and frankly, it doesn't have a plan. frankly, what the chinese government is figuring out what to do and it results in drip free of trying to plug this hole. is it about deflation or consumer sentiment? all of the action the government is moving along is trying to figure it out as it goes along. i think the piecemeal set of policy support, from the market perspective is not ideal. >> isn't the trump re-election perhaps the trigger here for the emergency feeling you were just highlighting there? >> well, it might be if we knew what trump was going to do. >> he has promised several tariffs on chinese goods. >> he promised 60% on chinese imports. we know with trump and beijing knows because they have been

there before in the first trump presidency, he wants to do a deal. stage one, he takes office in january and both sides will be in talks trying to come up with some deal. who knows how long that will last. i don't think that will be possible to find a deal that meets the expectations of both sides. trump will want china to buy $500 billion of goods to balance the trade. that's not going to happen. how long will that drag out? in the meantime, we will have all of this volatility. >> i wonder ultimately is it likely that china will react if, indeed, donald trump goes ahead with the huge tariffs on chinese goods? what do you think will be the reaction from beijing? >> the reaction from beijing will have to be to step up fiscal stimulus to boost domestic demand. there is only so far china can get in the case of the huge tariff imposition which seems

quite likely at the end. where is that fiscal support going to go? the hope from the market is it's going to be a lot more support for consumption to re-balance the chinese economy. i think that may be coming, but i think that's going to be a slow process because it is tied up with the reforms. i think most likely in the first instance will be further substantial support for the property market and also the more traditional avenues of infrastructure, manufacturing and investment. those proven tools that work from the point of view from china. >> i like to take a step back for a moment and look at the globe, really, because i'm wonder foging if there is any r for china in the eu to come up with a trade agreement, for lack of a better word, or risk to be ready for potential trariffs frm the united states. trump will be focused on china and not on the eu.

is there room for china and the eu to work together? >> i guess there might be if both sides found the political route. i think the tricky thing from the view of europe is they face a lot of pressure from home. obviously, europe is taking action in import tariffs on evs because they're worried that cheap chinese and high quality evs have overrun the market. i believe there would be some kind of scope to resolve the issues with more chinese investment into more european battery factories and in turn, open up other trade barriers. perhaps it could be done, but i'm skeptical with what is going on in europe so far and in germany, whether there is that political room to be united and come together and do a deal with china to really get that going, especially in the time scale of a couple of months. >> the comments are sounding

quite protectionist at this stage. thank you for your comments. that was done canuncan wrigley. and ishiba wins leadership vote after winning 221 votes out of 465 to leave him running a fragile majority. staying with japan, it is expecting to welcome a record number of visitors this autumn with the country set to see a long awaited rise in chinese tourists following the pandemic dip. monica joins us with more. monica, i think i know at least 12 people that have been to japan over the last month. tell us about this boom in term of tourism for japan. >> that's exactly right. silvia, you know, usually in

most places, the first gusts of autumn weather spell fewer tourists. we are not seeing that with japan. we are seeing arrivals remain high in the months of august and september. we are seeing a small dip from the peak we saw back in july, but it's not as big as it used to be before the pandemic. we see that's because chinese travelers are out finally returning to japan in bigger numbers. also, travelers from the red of the world really heading there than from 2019. what is headed to japan? the better question is who isn't. according to mastercard, americans at 153% above 2019 levels. big jumps from canadians and australians and singaporeans and

kiwis. this also costing that coveted threshold. those coming from europe tend to plan longer trips. they spend more on accommodations and food. those from europe, prioritize shopping. if we look here, chinese officials are expecting 35 million people to arrive this year. that would be a new record. the country not stopping there. it's hoping to see 60 million people arrive by 2030. we spoke this morning to the ceo of jtb the japan tourism board, and asked are you prepared. he said we are prepared for welcoming 60 million people from the world. compared with other countries, japan is still lacking visitors. back to you, silvia. >> thank you for the update, mo

monica. coming up on the show, german chancellor olof scholz signaling he made be ready for a nfence vote sooner rather than later. we'll bring you the latest after this break.

welcome to "street signs," everyone. i'm silvia amaro. here are your headlines. u.s. futures point to more green on wall street after a week that saw the trump trade fuel the dow and s&p to new highs. tesla shares bounce pre-market as the elon musk led company continues a post-election rally which has seen its market cap pass is trillion. chinese consumer inflation hits its lowest level in four months while factory gate

deflation deepens despite stepped up stimulus measures. and the german chancellor olof scholz is considering moving up the no confidence vote. >> translator: if everyone sees it that way, it's not uncommon for me to hold a vote of no confidence before christmas. very good morning, everyone. let's get a new check on how european equities have been trading. we have the stoxx 600 currently up by 1%. we are indeed in the green this morning. we are starting this trading week with a positive tone, indeed, as investors seem to be focused at this stage on the economic data that we're due to get this week as well as the earnings that are coming through. let me take you to the different bourses to understand what is

going on across the continent. we have green across all of the major bourses. i would highlight the dax up by more than 1% at this stage despite the political uncertainty. as i highlighted in the headlines there for you, the latest comments from germany suggest we could see the snap election take place earlier than expected. that could be providing a bit of i boost, really, to the german equity names really. we see the strong gains in france with the cac 40 up 1% at this stage. let me show you the dynamics on the corporate front as well. we have construction and materials as the best performing sector up about 1.8%. early this morning, we were trading up 2%. nonetheless, we continue to see this positive rhetoric across all of the major sectors at this

stage. insurance, chemicals, industrials, all trading up more than 1%. indeed, some of these moves are related to the earnings we got earlier this morning. i want to take you to the worst foremaning sectors too. this high lights a positive day for european equities. we h have retail and real estat still tracking higher by .6%. looking at basic resources and autos, we are seeing a little bit of pressure in these -- in these sectors. one of the dynamics here, let's not forget, the fact that in the early asian session, investors were not really happy with the stimulus measures announced by the chinese authorities. this would be providing a little bit of pressure, really, to the basic resources sector. i want to bring you back to the political scene because we continue to monitor what is happening out of germany where the chancellor olof scholz signall led his readiness to ca

a vote of confidence before christmas. in an interview with the german broadcaster, scholz should he would be open to schedule a vote if all parties agreed. i had the chance to speak to the senior fellow who actually told me this morning -- i asked him how they are likely to view the situation this germany. this is what he had to say. >> the current coalition and german leadership has been terrible on its policies. it hasn't brought together the european union or restore the relationship with france or with poland where we had a positive political change. it hasn't really been able to come to good terms. so, european policies will have to play a really crucial role in

the next couple of years. europe will have to be united on trade policies and many other issues and with the current coalition, this just wasn't possible. now what the future will bring in terms of electoral outcomes, this is anybody's guess, i think. >> now we have annette here with us out of berlin. annette, i would like to understand as guntam talked about the relationship with brussels. how likely is that? >> reporter: it's probably very likely. if you see the long tradition of being good at entertaining those relations with various capitals in europe. angela merkel was at the top for many years, 16 years in total, as a chancellor.

she actually origchestrated the relaugslations very well. whether it was in the interest of everybody, that is up for discussion. i guess the next german government might actually be much better also because it's easier because they need two parties to form a coalition. having said that, we are still far away from having a government. still discussing when the vote of confidence could happen and with his public appearance yesterday on tv, olof scholz didn't really do a lot to get rid of the uncertainty because he's pushing the responsibility to call for a vote of confidence to the opposition leader and his chief which is a very unusual step because normally he should take that decision. take a listen to what he said. >> translator: if everyone sees it that way, then it's not a problem for me to hold a vote of confidence before christmas. we have to think what's best.

what's best for the public and parliamentary parties as they compete with one another. there are things we must be conscious of. i want to resolve this quickly and i want a mandate, not from the other parties, but for the public and the spd. >> reporter: so, what he was saying the government was not really good on the european level, many people would argue they haven't been really good at the national level, too. there were loads of twists and turns with the energy policy. there were loads of terms when it comes to policies on regulation on housing. just to name a few on subsidies on electrified cars then to see a plunge of sales, especially in germany. of course, the situation which is not only down to this decision, but it has actually increased the speed of the decay

of the german car industry. so, all in all, i think it's probably has been a very difficult phase for germany the last three years with the government and the war in ukraine and the energy shock. it wasn't easy. the chancellor candidate of the greens and the current communist minister is reflective of the situation in germany. take a listen. >> translator: a lot of trust has been lost with the dispute and traffic light government with decisions and the pressure on germany because certain decisions had to be made even if they were not very popular. you can't ignore the fact something's happened to the country and my party. how we succeed in regaining the trust is how to decide. i can announce i want to try and earn back this trust. >> reporter: so, while olof scholz seems to be hesitant to

decide on his vote of confidence will take place, in the meantime, germany is approaching a budget freeze. if they can't decide on anything, also not on the 2025 budget, there is an amendment to the 2024 budget which needs to pass through parliament, otherwise, we will head into a government freeze or shutdown which is not as severe as in the states, but they can only then spend 1/12 of the previous annual budget and it will prevent them from making big investment decisions. you see, it's not only about politics, well, it is about politics, but not only about when we will have the vote of confidence and the snap election, but it is also about real measures which the government still can enact in the meantime. the sooner the better, that's at least what people here in germany think.

85% of votes think the snap elections should come as early as possible. >> we'll see. we'll monitor the calendar from the german political scene. thank you for the update, annette. the kremlin reports that russian president vladimir putin spoke with trump is not true. it added putin has not plans to speak to trump at the moment. it comes after reuters and the washington post reported the two spoke where trump said to have warned putin not to escalate the war in ukraine. now to get the latest on the political scene, we have the senior analyst joining me in the is studio. good morning. good to see you again. >> good morning. >> we now have the fact that donald trump is going to be the next president of the united states. in the past, he has said he could end the war in ukraine in one day. are we likely to see that

happening now that we know he's going to be the next president? are you more hopeful this war is going to come to an end soon? >> yes. president-elect trump has famously said he would end the war in ukraine in 24 hours. trump has made all of the promises and not clarified how he would go along ending the war. i think that it is safe to say that he is likely to run into problems pretty quickly. i do think that he wants to secure a big foreign policy win early on in the presidency. so, i expect him to start making moves in early 2025. he is likely to have a series of calls on diplomatic interventions, potentially meetings with putin and with

zelenskyy. that is willing to stop short of nothing but fully absorbing the four regions it has occupied since 2022. also, demedemiliterizing ukrain. he will have to put pressure not just on ukraine, but russia to a quick deal. russia is unlikely to agree to one any time soon. >> what is likely to happen on the ground over the next couple months now that russia is aware that trump is the next president? is the fact, is the outcome of the u.s. election likely to lead to any meaningful changes on the round from russia or the ukrainian side? >> i think it is fair to say that russia is going to try and use the next two months, the presidential transition period in the united states,to

maximize his territory gains because there is no forward path for ukraine and that ukraine cannot win. i think we can expect russia to intensify on the ground and also air attacks and including on civilian and energy infrastructure >> i was speaking with the ukrainian officials last week to understand how they are feeling about the u.s. election and one of them told me that because they had secured funding from the united states not too long ago that the next 12 months were still not very concerned about the outlook for the next year. i would like to understand from your experience and i believe you were in ukraine recently and this is enough, if this is enough to keep ukraine fighting in the war in the near future? >> i don't think it's enough unfortunately. the truth is the u.s. is the

sun single biggest military supporter of ukraine. without that support, it would be unable to continue fighting the war or be unable to secure a just resolution or conclusion to the war. unfortunately that's the case. >> you have been to ukraine recently. what is the mood on the ground? what did you see? >> the mood on the ground is grim. it was grim well before trump's re-election just this past week and in anticipation of the winter months during which russia is expected once again to start targeting energy infrastructure and leaving millions without power and water and heating. i think it is more grim now that trump was reelected because ukraine widely expects trump to cut aid to the country as well as likely force it into negotiations with russia.

>> there's been one development recently we haven't yet discussed which is the fact that north korea is also involved on the ground in this war. what i like to understand here is how is that changing the dynamics? how do you read the fact that north korea is physically involved in the conflict? >> it was a stunning development for sure. i think it really underscored that putin is incredibly reluctant to mobilize his population despite having a wider population than ukraine. he is unwilling to mobilize his mo men, so he had north korea join the war. the presence of north korean troops has been limited to the kursk region. overall, it is unlikely to change the military balance in the war more broadly. >> but does it make you think perhaps russia is under a lot of

pressure in terms of not having enough men to fight the war? >> i think that certainly is a great point. russia has its own manpower and weaponry issues just like ukraine. the one major difference here is russia does have a bigger population. so, it is still in the long run able to fight a longer war than ukraine due to more resources. >> great to speak with you. thank you for your time today. that was the senior analyst at prism. now coming up on the show, president-elect donald trump completes his sweep of u.s. battleground states as his attention turns to what this means for the economy. we'll have the latest after this break. if you're struggling to speak a new language, you should try babbel, a learning platform designed by over 200 language experts. it's like having your own personal language coach. babbel offers live classes with expert teachers for real world conversation practice.

it's totally flexible so you can learn at your own pace and with the right practice and coaching, start speaking a new language in as little as three weeks. go to babble.com to claim your limited time offer today. ♪ ♪ start speaking a new language in as little as three weeks. with so much great entertainment out there... wouldn't it be easier if you could find what you want, all in one place? my favorites. get xfinity streamsaver with netflix, apple tv+, and peacock included, for only $15 a month.

welcome blacack to the show. let's get the latest from u.s. politics. president-elect trump has won the state of arizona and the 11 electoral votes. trump narrowly lost the state to president biden back in 2020. that victory completes a sweep of all seven key battleground states for the president-elect and the sixth state he flipped over losing to president biden in 2020. the overall vote has trump on 312 , finishing well ahead of kamala harris at 226. we we are still awaiting the house of representatives with nbc news not able to project the control of the chamber. the republican party needs five more seats to secure a majority and complete a sweep of control

across u.s. congress. president biden will meet donald trump in the oval office on wednesday to kickoff the transition of power. biden promised a peaceful transfer of power and called on the country to bring down the temperature. president-elect trump is preparing to withdrawal from the paris climate agreement according to the new york times. trump's team is set to draft an executive order to remove the u.s. from the international treaty. this as cop-29 begins in baku today with that being the back drop of the forecast us. keir starmer will be in attendance along with world bank head and u.n. secretary-general antonio guttieres. dan joins us live from baku.

macr why should we? >> reporter: great question, silvia. policymakers on the ground are determined to make a success of cop29 building on the achievements in cop28 in dubai. this event is under way and it shaped up to be a critical test for global climate policy and coh cohesion. as you said, this year's summit is the finance cop. how much money can be extracted to protect countries from the ongoing impact of climate change with 2024 shaping up to be one of the hottest years on record. of course, u.s. president biden and chinese leader xi jinping and the european commission leaders all deciding to stay home. the elephant in the room here is donald trump's looming return to the white house as well.

his plans to withdrawal from the paris agreement and expand fossil fuel production sparks fears of global climate cooperation. what we will see here in the next two weeks is the focus on how these policymakers can mitigate some challenges. one area they will focus in on in particular is the financing side as i mentioned. cop29 is expected to push forward talks on the global finance goal and unlocking the trillions needed to assist c countries in the efforts. that includes operational of funds which came out of cop28 in dubai and beyond. what we are expected to see next year is the update on the national contribution to meet the global climate targets. that is the specific target that each country sets and brings to this event. basically to say that's what

we're looking to achieve and here's how we are going to get there. of course, we have yet to see the commitments coming through. the stakes are absolutely running high here and the ultimate goal is to lay the ground work for cop30 which will take place in brazil. as i mentioned, silvia, expectations for this cop running low with the analysts i've been speaking to today suggest this is more of a technical conversation rather than -- an event that actually sees real concrete work and agreements coming forward. back over to you. >> well, it is, no doubt, a time when these conversations seem more pivotal and more important, dan. you know, extreme weather events are there and a reality on all of us and puts pressure on all of our economies, really. i wonder what meaningful measures we could see from cop29 that could actually address

this. >> reporter: the focus is going to be on financing, but to your point about the impact of climate change, remember, what we saw coming out of dubai was the agreement among nations to transition away from fossil fuels. progress has been extremely slow on that front. actually given the back drop of rising geopolitical tensions and trade tensions and trump's return to the white house, it is unlikely we will see anymore progress on that front as well. on the one hand, when you look at the situation on the ground here and globally, 80% of the energy mix is still made up of fossil fuels and demand for oil and fossil fuels continues to rise, at least according to the iea and opec forecasts. so, addressing the demand side is critical here and there is not much of a conversation either. that means the emissions are likely to stay until something

drastically changes. that's unlikely to happen any time soon. >> and, therefore, i wonder if some of the climate targets that areas such as the eu have in place will ultimately be achieved. we will wait. we will monitor what is happening out of cop29. i want to take you to the markets as we approach the end of the show. we are witnessing a different narrative among european investors. we have all of the major bourses trade in the green. the dax up 1.2% at this stage despite the market uncertainty. u.s. futures suggest it could be a positive start to the trading session on wall street after what was a very ro ssistngeson last week. now, that is it for today's show. i'm silvia amaro. stay with cnbc. "worldwide exchange" is coming up next.

ah, these bills are crazy. she has no idea she's sitting on a goldmine. well she doesn't know that if she owns a life insurance policy of $100,000 or more she can sell all or part of it to coventry for cash. even a term policy. even a term policy? even a term policy! find out if you're sitting on a goldmine. call coventry direct today at the number on your screen, or visit coventrydirect.com.

your business needs a network it can count on... even during the unexpected. power's out! -power's out! comcast business has you covered, with wifi backup to help keep you up and running. wifi's up. let's power on! let's power on! -let's power on! it's from the company with 99.9% network reliability. let's power on! power on with the leader in connectivity. stay connected with comcast business internet and wifi back-up or get started for $49.99 a month. plus ask how to get up to a $500 prepaid card. call today!

it's 5:00 a.m. here at cnbc global headquarters. welcome to "worldwide exchange." here's your "five@5." 44,000 and beyond. wall street looks to build on the best week in the year following donald trump's resounding election victory. pointing to more at the open. and looking to the incoming administration and what it means for their industries. ahead, a group of investors and what they think of trump 2.0. an