li. i'm andrea canning. thank you for watching. welcome to "street signs" on this wednesday morning. i'm sylvia morrow and here are your headlines. president-elect trump picks his new defense and intelligence heads. but it's elon musk who once again drives attention. taking up leadership of the new department of government efficiency. energy share surged on track for their best day ever as the german company raises its midterms outlook after

reporting a record order backlog. the ceo christian roth tells cnbc there's still work to do. >> we are not there yet where we want to be. but we gave an outlook really where do we want to go. and obviously where we are playing a role for the energy transition on the one side and this massive demand itch crease which we see on electricity side. germany gets set to vote on february 23rd after the collapse of the chancellor's governing coalition. the cdu mep david mcall ester is confident the party can deliver change. >> i strongly believe that my political party will be the strongest force and then it's up to us to form a stable government. germany is the largest country in the european union. the european union depends on the politically stable and economically successful germany. and global tech leaders gather at the web summit in lisbon with the prospect of

looser regulations and tightened trade tensions under president-elect trump. europe remains key for the company. >> there are opportunities i think for the next administration in the u.s. to be using technology in new ways and acress critical technology policy issues even in some better ways. the message today is our support for europe as a company and microsoft is steadfast. . very good morning, everyone. we start today's show looking at the latest on the political scene out of the united states. after donald trump has made the x oner and tesla ceo elon musk to a role leading a new and quote department of government efficiency. alongside the republican primary contender ramaswamy. trump said the group would exist outside of government and

deliver drastic change. giving a deadline of july 4th, 2026 to complete its work. in a post on x, musk described himself as a threat to bureaucracy. president-elect trump says he has chosen fox news host and veteran pete hegseth as the secretary of defense. he has no pentagon or government experience but played a role in trump's pardons of four soldiers convicted odd war crimes in his first term. and said on a podcast during the election campaign, that the chairman of the joint chiefs and any generals involved in diversity initiatives should be fired. trump also named the former director of national intelligence john rat cliff as his pick for director of the cia. describing the noted critic of the mueller investigation into russian election interference as a warrior for truth and honesty. now that's the latest on the

political scene. let me also tell you about how we're trading on u.s. futures at this stage. let's get a check on what hashappened on wall street and at the stage futures suggest it could be a tentative start to trading state side after what is office after a negative session on tuesday. the s&p and nasdaq breaking a five day winning streak and also worth keeping in mind that the negative performance was actually across the board and they actually ended tuesday's session down 1.8%. but let me bring you back to europe and look at how we're trading so far this wednesday morning. european equities have beentrading for just over an hour and as you can see on the screen we have the stocks 100 at this stage trading just marginally above the flat line and yesterday, however, the benchmark ended the day down almost 2%. it was its worst daily performance in about two

months. why well, investors seem to be really still digesting the outcome of the u.s. election but today there are also taking in the fact that we are seeing higher treasury yields and on top of that still digesting what the corporations have been telling us so far today. how the different forces are moving as well so we get a better picture across the continent. trading in positive pert and look at them at this stage up almost 0.4%. now though we have the certainty that the snap election in germany is actually taking place in late february. let me also take you to the different sectors so we get a better indication of what's happening on the corporate front this wednesday. the best performing sector is oil and gas up almost 1.5%. yes, we are looking at the slightly higher oil prices today. however, it is earnings and it's actually driving the performance within oil and gas

stocks at this stage. and will be discussing that later on in the show. when it comes to the worst performing sectors, let me show you what -- what are those sectors at this stage and we have quite lot of pressure when you think about car makers down significantly at this stage. also technology under pressure. so far into today's trading session. but let me just discuss what's happening in the equities space and more broadly on the market front with christina hooper chief global market strategist at invesco. good morning christina, good to have you on show. first and foremost what i would like to understand is whether the trade trump is said. we saw wall street ending the day down yesterday. do you think this is a pause or a break or is this it for the trump trade? >> i think it's just a pause. but i will caution that i don't think anything related to election results has long legs. so while i don't think it's over just yet, i do think we're likely to see the trump trade

only last for weeks, perhaps a few months. but in my opinion, the far more important factor impacting markets is central bank policy especially fed policy. >> speaking of central bank policy, today important day on the data front. we're going to get the latest cpi out of the united states and do you think this could actually be the key that changes some of the mood for investors at this stage? >> i think it certainly could have a significant impact on investors' mood. let's face it. the fed has made it clear, especially in last week's press conference, that it remains very much data dependent. and that a december rate cut is not a fait accompli. really dictated by the day that that comes out over the next few weeks. cpi today will be important. the fed messaged it would only be hiking 50 basis points in

june of 2022 and at the last- minute changed its mind and hiked 75 basis points. chair powell pointed to a few different points including cpi it matter a lot and could change the mood today for the better or the worse. >> right. so what are your expectations at this stage even though we don't have that latest cpi print yet, what are your expectations for monetary policy for the fed in 2025? now that we know that donald trump is going to be the next president. >> so i think there's certainly increased risks of higher inflation. but so much of it will be kick kated by the scope of policy shah -- dictated by the scope of policy that unfeds and the timing of that policy. it's very hard to estimate what's going to happen. i think though there's the potential for inflation to be higher all else being equal. so -- part of that is because growth could be stronger all else being equal. so i think that the fed is

going to proceed cautiously. i think we -- have a 50/50 chance of getting a rate cut in december. i do think we're going to get rate cuts next year. probably -- probably three to four rate cuts. but again, the fed truly is data dependent. it's hard to guess mate. expectations have gone down in the last few weeks. >> in term of market expectations. is there a scenario here even not the one with the strongest chances at this time, where we could actually see the fed hiking rates at the start of 2025? >> i think that's extremely unlikely. i think the far more likely scenario is if the fed is spooked and concerned that inflation could become very stubborn or move higher. that it hits the pause button. i think it would be very, very unlikely early in 2025 to see

any kind of rate hike. >> i would like to get your thoughts also on the bond market and i'm starting to see more and more comments suggesting that perhaps we could see the yield on the ten year treasury hitting 5%. you know, amid more borrowing and more spending in the united states. do you think that this is likely, are we on track to see a higher treasury yield in the near future? >> so i don't know if we're likely to see higher treasury yields but i do think treasury yields could remain at elevated levels. where they are now. somewhere between 4-point #%. 4.2% for the ten year. i think that could very well happen. it's clear the markets have become increasingly concerned about the u.s.' fiscal deficit. so we're seeing a bit of a bout of bond vigilantism and that could continue. does that send yields to 5%? i think that's very unlikely. be but i do think that that -- but i do think a lot of the

concern around yields will be dictated by what the administration focuses on first. so if we do see an extension of the tax cuts, but we're not necessarily paying for them, that will cause concerns and i also think we could see bond yields go up a little bit. once it's confirmed that the house of representatives is in republican control and that constitutes a red sweep. but again, there are a lot of ifs in this scenario. i do think though that yields could remain elevated in the shorter term. but again, think of it as part of the trump trade. it may very well change in a few months. >> right. however, you did say in your notes that it is how -- looking at bond vigilantism, it's a bond market and you think is the issue that we need to monitor in the coming months. you have highlighted there are a couple of things that could spark some concern for bond investors but what i would like to understand is at what point concerns -- within the bond

market could actually cap gains for equities? at what point could this actually spark into the equities space? >> well, we could see an environment in which yields don't have a dramatic impact on stocks. i think that's certainly possible, especially the shorter amount of time that we see yields elevated. so i need to make that point absolutely clear. that we could see stocks perform well. just keep in mind, last week, we had concerns right after the election. right? but then we saw yields come down after the fed spoke and was relatively dubbish. i think we could certainly see a scenario where if the fed is a calming influence or other factors suggest that fiscal deficits won't be as large, yields could come down. but even if yields remain elevated, i think there's an environment in which stocks can perform well. there's a lot of positive

fervor right now about the potential for increased growth and i don't think that goes away. >> so let's go back to equities before i let you go i'd like to understand what are your thoughts for the tech sector going into 2025. naturally an interesting sector with all he ai performance as well. what do you think it's going to be the case for this sector going into next year? >> so i think that certainly this sector is often the one that has -- is most impacted by higher yields. but that hasn't been the case recently. we've certainly seen periods where tech has performed well even with higher yields. think a lot of it will be dictated by fourth quarter earnings. i do think there is some positive sentiment around artificial intelligence. but there's concern that spending is not going to deliver the roi. i think that those concerns may very well be dispelled as we make our way through the next earnings season.

but there's certainly the potential in my opinion for better performance from smaller caps and cyclicals and they're more sensitive to the economic environment and they're more attractively valued. so i could see an environment where they perform better. but not to the exclusion of tech. >> right, we'll see what they actually report in a couple of months' time but thank you for your time this morning. that was christina hooper, chief global market strategist at invesco. and coming up on the show, showdown in germany as the country's crumbling coalition settles on a date for snap elections and we'll be live in berlin after this break. 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.

welcome back to "street signs." in the corporate world this morning, rwe has announced share buyback of up to 1.5

billion euros and germany's largest utility firm cited weakening prospects for european hydrogen and offshore wind in the u.s. amid donald trump's victory. but still it's raised its profit forecast for the new year. siemens energy hiked its midterm targets, posting 345 million euros in profit before special items on the back of 34.5 billion euros in revenue. they notched an intake of 50.2 billion euros for the year putting the order backlog at record 123 billion-dollar euros and that's actually propelled the stock quite high so far in early deals. the results were avoided by a turnaround at the turbine unit but the ceo christian puth told cnbc there's still more work to do. >> it's not done yet. i want to be very, very clear.

that we're still -- have a lot of work ahead of us and we're not there yet where we want to be. but we gave an outlook where we want to go and where we're playing a role for the massive demand increase which we see on the electricity side. >> staying in germany. the country set to hold snap elections on february the 23rd. following the collapse of the country's ruling coalition last week. the leaders have tabled a conference vote on december 16th with an election then to be held within 60 days of parliament's dissolution. david mcallister joins squawk box this morning and discussed german leadership at the your lean level. >> germany is the largest country and of course generalny plays an important role in the european union especially together with france. and unfortunately, in the

moment, germany's economically not successful. but raises many concerns in brussels. now also we're not politically stable anymore. that's why we need clarity and we need a new government quickly like that's camable of taking actions and of course germany must play a constructive role in the european union. it's about german leadership. but always leadership from behind. it's an unexclusive leadership and it's about organizing majorities in the european union for the benefit of the entire continent. >> and then joining us this morning from berlin and etta, what an interesting time to follow german politics and perhaps i'm aware we're going to hear from the chancellor later today and just highlight for us what are we likely to hear from him at this stage? >> most likely what we hear from olaf scholz the current chancellor of germany is he'll be running as well as the next chancellor for his party. and that he is -- he has not done anything wrong. so he will defend his stance and also he will defend that he

has fired the finance minister. and probably blame all what's going wrong on christian lintner's management of the finance ministry. that's at least what we got from him during the last appearances. especially last sunday when he appeared on public tv. so it's a bit of a second reality. the reality here on the ground is that germany has -- the german government has lost the majority in parliament and that he needs the support from the opposition to get anything through parliament. and he wants to get a couple of -- still passed before he's going to have that vote of confidence. on december 16th. which then will trigger the new election on february 23rd: so in the meantime there's this political vacuum here in germany. if you look at the opinion polls, who the next government

might actually head up, is the christian -- these cdu the christian democrats. who are of course headed by friedrich merz. currently the results show something between 32% and 34% for his party and that would bring him the luxury of having either to choose the spd a grand coalition or a coalition with the greens. robert what arebeck is already trying to show the public that he has some sort of rationality as well about business policies. politics i should say. because clearly, what he had done in the past wasn't really successful as the economy ministry by changing regulations for all sorts of policies. well, having said that, we are currently having that political vacuum in germany as i said.

the government declaration will take place today at 1300 cet. >> at least for now we have some certainly in terms of when the election is actually taking place. thanks annette. moving on and a look at what's been happening at cop 29. the uk prime minister keir starmer unveiled new climate pledges on the second day of the cop-29. he pledged to cut emissions by 81% from 1990 levels by 2035. this means increasing on the 78% pledge under the previous government. and then joins us once again from baku. important news there out of the united kingdom from the prime minister himself. are you getting a sense that any other countries are likely to follow suit? >> well, this is the really important question. hi to you. what we saw yesterday was the uk updating its nationally determined contribution. these are the pledges that countries make ahead of cop-30.

essentially working to raise the level of ambition here when it comes to cutting emissions. and the uk has been a leader in that. analysts that i have spoken to today though say the uk is really going to have to put its money where its mouth is in order to get that ambition to be realized. so still a lot of work to be done on the ground here and of course the focus is firmly on climate finance and we've seen world leaders really focusing in on the climate financing angle here. and what we are hearing is this move towards what could potentially be a $1.3 trillion announcement on climate financing moving forward. however, those conversations, those negotiations, are continuing. of course also on the ground here are top energy and industry leaders and i have the opportunity to speak with the exxon mobil ceo darren woods about the outlook for oil and gas and what role it will play in these climate talks here as well. also we spoke about donald trump's return to the white

house and the impact that that could potentially have on exxon and the industry more broadly. listen in. >> i would say on the ira we were supportive of that and like the fact as they focused on reducing emissions they focusedon setting targets for carbon intensity. we would continue to advocate that as long as the country is looking to reduce emissions that's a good way of doing it. if you look at the global challenge of reducing emissions, i think we need a global framework for doing it. i think the trump administration can bring a common sense approach to the discussions so i would encourage them to stay in the -- paris agreement because i think, you know, we need more people contributing their ideas on how to best to advance this in a rational and thoughtful way and i think the administration can do that. >> darren woods there with a message to the president-elect. his view is that perhaps the u.s. should stay in the paris agreement because it gives one of world's top leaders the opportunity to at least be part

of the conversation moving forward. and of course trump has been a key theme on the ground here. his election win really raises doubts about the u.s.' commitment to international climate agreements and also funding for climate related projects as well. i asked the world bank president aj banger about what this is going to mean moving forward and whether or not the world bank would also have to shift its own strategy given the change of leadership state side. >> he's won an election handily. so that's a verdict from people. i think you got to respect that verdict and work with him. so my 17 months in this job, i have had changes in government in all my major donors, japan, germany, france has had election, the uk's changed parties, and now the united states as well. so i have kind of been through the whole gamut. my attitude is i work with my shareholders the u.s. is a large shareholder. the single largest in the case of the bank. and so i have got to work with them. my experience with president donald trump in his first term

was that he listens to practical reason. no spin. give him the facts and let him take his own judgment. i think transcends any administration which is let the -- work better and make it work faster and make it more efficient and make it work as a better partner with the other mpds and get the private sector in and drive that and make sure you drive jobs. which part of that doesn't sound like anyone's right agenda. >> he's a climate skeptic though. >> my attitude in the whole thing is that what are we trying to do in the case of climate? we're trying to do better schools and better roads and -- as an example. which part of that is anything to do with not doing development the right way? and the real part of it is i'm not trying to put only public money to work. the private sector will only do something if it makes business sense for them. what i'm doing is facilitating that for them. that's a good thing to do.

>> trump 2.0. more of the opportunity or a challenge then from your perspective. >> a little bit of both. an opportunity because i think he's business focused and private sector focused. which is what biden -- in the day i arrived. i think the challenge part of it is that to make sure that he understands what we are trying to do in a fair transparent way and that's what i'm going to try and do. >> world bank president aj banga there. as you heard not just from the leaders of some of the multilateral development banks and organizations, as well as top corporate executives, the re-election of donald trump has loomed large over cop29 here and of course absence of leaders has also diminished expectations for the talks over the next couple of days. president biden is of course absent and the leaders of china and brazil and germany and france also not showing up. what can be achieved is really a big question mark at this point. >> naturally and great coverage. that argument that the united

states should continue a member of all of these climate agreements reminded me of brexit. rather be part of something and reform it from within or leave it completely? but thank you for the coverage and i'm sure we'll speak again later this week. and from our region to portugal, coming up on the show, we'll head back out to karen at the web summit in lisbon. >> plenty coming up. i spoke to the microsoft president brad smith who said he's still committed to europe and we talk about a changing landscape in the united states pot election and the password company of choice for some of the avengers. i'll be speaking to jeff shiner from password 1. that's coming up next.

hey, can you speak french? who, me? i know a few words. 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. welcome back to "street

signs." i'm silvia amaro. and here are your headlines. president-elect trump picks the new defense and intelligence heads. but is elon musk who once again draws attention taking up leadership of the new department of government efficiency. siemens energy shares surge on track for their best day ever as the german company raises its midterm outlook after reporting a record order backlog. the ceo christian burch tells cnbc there's still work to do. >> we are not there yet where we want to be. but we gave an outlook really where do we want to go. and obviously where are we playing a role for the energy transition on the one side and this massive demand increase which we see on electricity side. and germany gets set to vote on february 23rd after the collapse of chancellor olaf scholz's governing coalition. the cdu mp david mcallister is confident the party can deliver

change. >> i strongly believe that my political party will become the strongest force and it's up to us to form a stable government. the european union depends on the politically stable and economically successful germany. and global tech leaders gather at the web summit in lisbon where the prospect of looser regulations andheightened tensions under president-elect trump. the microsoft president brad smith tells cnbc that europe remains key for the company. >> there are opportunities i think for the next administration in the u.s. to use technology in new ways. to address critical technology policy issues and even in some better ways. the message i'm here to convey is our support for europe as a company and microsoft is steadfast. . let's get up to speed with what's been happening at the

web summit in lisbon. where karen had a chance to speak to the microsoft president brad smith. and as you heard in the headlines there, he's still committed to growth in europe. despite a change in the leadership in the white house. however, he urged faster adoption of ai. karen also spoke to smith over there as i just highlighted to you, and asked him about the importance of safeguarding this new technology. >> i would say it's three things. first i feel that we as a company and as an industry, are investing in building guardrails around ai. and in fact, if you look at all of the elections of 2024, it proved to be quite difficult for bad actors say the russians, for example, to really use ai to create deep fakes and that's because we got together in february and resolved as an industry through a tech accord that we would combat that. second, we're going to need to continue to invest in this

space. ai is going to become more powerful and we need to continue to make it safe, secure, trustworthy and most importantly, i think easy for our customers to deploy. so that every service that uses ai earns the public's trust and confidence every day. but then there's a third dimension and i think it canmake a real difference. we use ai to combat bad actors who are using ai. so when the russians tried to put out a deep fake as they did of say vice president harris, our ai detected that almost immediately. and i think the more we keep leaning in on using ai to protect people, the better off people are going to be and i think the more confidence people will have in the technology itself. >> and karen joins us now from lisbon. karen? >> thank you very much. going to talk more about online security for users and joining

me now is jeff shiner ceo of 1 password and thank you for joining us. your company comes with a lot of stock. however, you have got -- ryan reynolds and ashton kutcher and many others too as investors involved with your company. but first up, just explain how it works. what is the technology? >> so if we look at it. it's really about keeping people both productive and safe. and when you think of it from a security point of view, nowadays more and more people are using personal devices and they're bringing in their company computers. they're bringing in their personal phones and then they're bringing in their own apps like a chatgpt or something like that to be productive. and the businesses are trying very hard to figure out how to stay secure in this new world. what we do is we help the companies stay secure while at the same time keeping your own personal private information as a person, safe. >> one of the greatest issues we will have i think as consumers passwords is remembering them. i don't think i can actually

remember any one of my passwords on the company log in. this is a problem we've got password fatigue don't we? do you help with that in? very much so. >> humans are not meant to remember the strong unique passwords they tell us to use for everyone. so this is where you news a password manager like 1 password to do so. there's path eventually what's called a passkey. you can think of it just using the biometric on your device but there's a new encryption underneath that that will help us move away from passwords in the future into a better password list, more secure much more usable world. >> to date, it has been if you log into a new system, you need a separate password. and every time you join an app a different one again. the idea is that you can change it. so you can't crack it. if you put everything into one centralized system with one password, is someone cracks that they have the keys so everything. how do you -- come back against that challenge where it could

be less secure if you centralizing? >> yeah, i think the thing to remember is when you put all of your information into one password, not only is it the password that you have to remember as a human to get into one password, but there's a big -- what we call the secret key technology that's behind it which makes it essentially unguessable by anybody trying to get in. so it's a much more secure system and yet at the same time, for, you know, for us humans, it's a much more convenient system. >> talk to us about this new product that you are building because we still have a lot of -- hybrid work happening and remote work and we all have personal devices, how are you helping companies secure their devices but also ensuring that people who bring their own devices and are not being scanned and monitored by companies? >> that's right. so we call it extended access management and if you think of it, you know, ten years ago, you only had a company device. you had, you know, a blackberry. you know, and the company would give you a phone and give you a computer. and you didn't mind that the company had full control over

that but nowadays we bring in our own personal phones. my son is 24. his phone is not him. it doesn't happen. so we bring in our devices and we bring in apps that help us be productive. but the company is trying to catch up and sit there and say how do we keep this secure? and so what we do with extended access management is give you the employee, the person, the ability to still have your privacy on that phone. not have the company look at everything you do. but we still give the company the control they need to keep the business apps on that device safe. >> to me, it seems though the company has more power than ever before to monitor what employees are doing. there's you know, copilot and microsoft's technology recall. what does is that mean for employees -- that mean for employees who are worried employers can see everything they're doing? can they? how far does it go? >> i think if you have a company issued device, you should assume that the company can. whether or not they are, they can see everything you are

doing. and they can control that device. and i think when you are talking about personal computers and personal phones and things, as a person, you are not willing to have that level of control. and we're starting to even see legislation in some cases pushed towards that level of privacy. that's where a solution like extended access management comes into play because again, it allows you to maintain control over your device, you not share the information you are not willing to share, but the businesses still have the ability to keep it safe. >> as we kicked off the interview i mentioned some of the star power. why are these types of investors hollywood actors, why not traditional vcs? >> we have a traditional vc as part of the mix but part of it i always say how do we -- you know, how do we accelerate our mission? the last time when we did ad funding round one of the things i said is -- if you think of who 1 password is for, it's for every person and every business. how do we attract the, you know, average person? you are not going to attract them by showcasing fancy vc names. you are going to attract them

by saying hey, look, trevor noah has invested and i think that allows us a way to go out and reach far wider audience than with just sort of the traditional fundraising. >> is there an i po down the track? >> always in a position where we're looking at our options. but we're also very fortunate in a sense that from a financial position, we don't have to make our decision at any time. >> jeff, thank you so much for stopping by to see us today. jeff shiner, the ceo of 1password. we do appreciate your time. in the meantime, i have been having other conversations too and i caught up with anymore technologies chief security officer chelsea manning and i got her take on everything from privacy in the age of ai to the potential of less censorship and regulation under a second trump presidency. >> censorship is a dominant threat and it's a question of like who's doing the censoring and what the purpose is the

also censorship in the 21st century is more about whether or not you are you know, boosted through an algorithm. i think that -- social media and the monopolies of social media have sort of like gotten us used to the fact that certain things that drive engagement will be attractive. and i think that one of the ways we sort of can countervail that is to sort of go back to the -- the way the more decentralized and distributed internet of the early '90s but that make that available to more people. >> i was having a similar conversation with tim yesterday and they have technology too where you earn your identity. you can keep everything private instead of handing over all of your information to a facebook and instagram or whatsapp and every other service you want to use for free. you store it. so this is what you are talking about. >> decentralized identification. >> yes. so how do companies like facebook and instagram, how do they make money in that context? does that leave us all paying for subscriptions? >> there would be sort of a contract and more -- a better

social contract i think and even more distribution in terms of that. in terms of like oh okay. like this is the information that i through technical means am preventing you from sharing. and you know, from -- from accessing. so one of the things about distributed or decentralized identification is that through encryption, you are able to sort of -- sort of check the box yourself. instead of having to depend on the company and accept here, you are making that decision from a technical perspective. >> this gets more pressing as we talk about ai. doesn't it? because -- ai can track you and can analyze you and send you more and more targeted material. because it knows your preferences more than you know them. so this is where it gets quite pivotal in 2024. doesn't it? >> yes. it does. >> so in terms of how you stop that, because i think we're already seeing companies say that really want to go after the ai dollar and make more and more money from us. >> well, they're a bit late.

data has been selected and sifted through and analyzed and you know, now there's no -- mo -- one of the problems that companies have right now is that there's not any more data to collect. they've sort of did it all and they found that like -- especially openai first and now meta and google are figuring out that the value of information, which information is actually useful for training purposes, and for making -- for making beauticians based on, is -- intuitions based on. that data has been collected and sifted through and already been sorted and labeled. not really a whole lot more to be thrown at the problems. different ways of using ai tools and new ways of research in order to make any more progression because i think that we sort of reaching a slowdown. >> and coming up on the show. we'll be joined exclusively by the ceo of pandora as we works to transform the company into a full jewelry brand and

attract new customers. we'll be back after this break. there are some feelings you can get with any sportsbook. ohhh! the highs! no, no, no. the no, no, noooos - oooooooo! the oh, oh, ohhhhs! now whatcha wanna do with this? but the feeling that, no matter what, you're taken care of. ohhh, i just earned a hotel suite! hee! you only get that here. at the sportsbook born in vegas, where they know how to treat you right. who you talking to jamie foxx? bonus bets. exclusive offers. real world rewards. betmgm. download and bet today. it's our son, he is always up in our business. it's the verizon 5g home internet i got us. oh...

he used to be a competitive gamer but with the higher lag, he can't keep up with his squad. so now we're his “squad”. what are kevin's plans for the fall? he's going to college. out of state, yeah. -yeah in the fall. change of plans, i've decided to stay local. oh excellent! oh that's great! why would i ever leave this? -aw! we will do anything to get him gaming again. you and kevin need to fix this internet situation. heard my name! i swear to god, kevin! -we told you to wait in the car. everyone in my old squad has xfinity. less lag, better gaming! i'm gonna need to charge you for three people.

welcome back to "street signs." let get a check on how we're performing in the equities session so far this wednesday morning. we have the stoxx 600 at this stage just marginally really above the flat line. a little bit of green really when you think about the overall performance for european equities. this, after what was quite negative day on tuesday with the stoxx 600 down almost 2%. but let me show you as well how the different boards are trading at the stage. yesterday we saw the hunt down 2.7%. however, as you can see on your screen right now, we are trading in the green also in

france and really across all of the major forces in germany we throw the clarity that the snap election is going to take place in late february. but let me take you as well to the different sectors and understand what are some of the corporate dynamics this morning and looking at the best performing sector at this stage, it is oil and gas. as i was telling you earlier, we know that we are looking at slightly higher oil prices today. but is actually earnings that is driving the momentum for oil and gas stock this is morning in familiar after we heard from siemens energy raising its midterm margin target and indeed becoming one of the best performing stocks so far in the session today. the worst performing sectors now and what's hamming there. we have car makers as the biggest -- the worst performing sector i should say. currently down about 0.6% with its seed news out of volkswagen actually raising its investment in rivian and not really be sparking positivity really for

the stock for the time being. but indeed, quite a lot of red for car makers and tech as well and media stocks too. in other corporate story this is morning, just a takeaway has struck a deal to sell its u.s. unit grub hub in a transaction worth $650 million. according to the company, the deal which is expected to be completed in the first quarter of next year will not impact its full year guidance. and elsewhere, the swedish buy now pay later firm klarna announced it's confidently filed paperwork with the u.s. for an initial public offering. the jewelry maker pandora warned its 2026 operating profit margin target could be hit byrising precious metal prices. pandora's third quarter

operating profit rose to 980 million danish krowns slightly less than forecast and joining us now from the bank of america ema consumer and retail conference in paris is alexander lacik, ceo of pandora. good morning. good to speak with you today. first and foremost, i would like to start this conversation looking at the latest results. we didn't have the chance to speak with you on the day of the results. when i was reading the statement you did say you were looking to attract more and more consumers. what i would like to understand is where are you looking to attract more consumers at the stage? >> thanks for having me. the strategy of brand has been for many years essentially to push our -- charms and carrier business. what we are doing -- we have done in the last few years is starting to pivot this from just being associated with charms into being seen more as a full jewelry brand. which means that i have a

pretty big market share within wrist ware. wrist ware is roughly 20% of the jewelry markets which means that i have a very tiny presence from a market share standpoint in all the other segments. so this is the whole idea. i have customers coming through the door, they've accessorized themselves with necklaces and earrings and other jewelry segments somewhere else but they're in my store there to buy charms and clearly like the brand. the whole idea was okay let's take a little bit of share wallet from all these other people that are selling jewelry to them and that's been the journey we've been on. the core business keeps growing at i would sail low to mid- sting single digits and then putting, you know, double digit -- on the oar segments. >> also your thoughts on the state of the british consumer: you did report negative lfl for the uk market. now that we have had the plans the new budget plans for

thelabour government and expectation that is we could see a higher inflation in the near future, how are you looking at the british consumer? >> so -- so across the globe, before i come to the uk, we are building market share. so in countries where the market is flat or up, you know, i post stronger numbers and in markets like uk or italy for that matter, where the markets are negative, we are gaining market share. but the pie is shrinking and that's why you see the numbers being slightly in the negative. i would more categorize my business in the uk on let's say as like longer horizon flattish while the market has been kind of in the decline. now there will always be policies imposed by governments that move the needle on the consumer sentiment. of course nothing i can do about it but we're very committed to keep driving the brand in uk. so we keep bringing innovation and we keep investing in the network and we keep investing in marketing. so that's been kind of the

formula how we stay ahead of the rest of the players in the market. >> all right interesting. you are in paris for a conference today. and it seems that stage every single conference is really discussing what the re-election of donald trump could mean for their business. i would like to understand as well given your presence here in the united states, and the global area really, how are you reading the outcome of the u.s. election and are you taking any measures to potentially protect your business amid a potential trade tariff? >> i mean, first of all, if you think about the -- the root -- what trump has at least declared he's interested in doing is by moving jobs to the u.s. and through this tariff would be one of the means to motivate people. the challenge for the jewelry industry is that there's no traditional jewelry making in the u.s. generally speaking. so all of this comes from other places in the world. what that then means is if he then let's say imposes this tariff that he's been speaking about, that would hit the

entire industry. so essentially, this assumption would be that the industry in the any colleagues in the industry don't want to protect their margins would just see the sea level rising. essentially see the consumer pricing across jewelry in the u.s., that's the most likely scenario will go up. and we would do the same. >> sol how are you reading the health or lack of it of the u.s. consumer at this stage? are you seeing any concerns in that part of the market? >> so the u.s. market has been kind of in this slight negative space the last two years. there's been a little bit of uptick this year. now we can also see different movements depending on in which price bands we are talking about. you have top end of the market which normally is a very affluent customer and don't seem to be particularly, you know, concerned with what happens around them. then you have let's say the mid market where we play. and of course in the beginning

of this cycle where inflation was starting to go up, and, you know, interest rates were going up and mortgage rates were going up, there was a little bit of pressure obviously on the discretionary spend. and then you have the aspirational customer which i think held out a little bit longer. but based on what we read from other people, we don't have that cohort to -- as a big part of pandora. they seem to be under a little bit of pressure so it moves within the category it kind of have different movements. >> interesting. i would also like to get your thoughts on christmas. we are approaching what is a very important season for you, for retailers all over the world. just explain to us how are you preparing for this important season and are you expecting lower or higher sales compared to what you registered last christmas? >> so we have guided for -- within the band, of 2% to 5% growth like for like year on year. obviously will vary by geography but that's the guidance which we have out

there for q4. q4 for the industry means that 40% of the revenue typically of -- of profit is made in the fourth quarter of the year. the way we prepare is when we get into the budget cycle, we actually start by doing the plans for q4 and then the rest of the year. so we don't do it sequentially but make sure that q4 is well resourced and innovation we bring. so q4 needs to be the shining star in the year. now it's true that most other companies do the same. this is a very competitive period of the year. so yeah. then from let's say promotional intensity standpoint, i think it's going to be -- let's call it a normal year. >> okay. well, we'll see and find out. not long now until we have christmas. that was alexander lacik, the ceo of pandora. let me briefly show you how u.s. futures are trading at this time as we approach the

open on wall street. yesterday was quite a lower day really for u.s. equities. today, all eyes on that cpi print and at this stage futures suggest it could be a mixed start to the trading session. on wall street. and cnbc's 14th annual delivering off investors summit kicks offer today in new york where investors and leaders will convene to provide insights and ideas and analysis to help you deliver meaningful returns. we'll bring you the best bits on tv and online and just search "cnbc delivering alpha." and that's it for today's show. i'm silvia amaro and "worldwide exchange" is coming up next.

do you have a life insurance policy you no longer need? now you can sell your policy - even a term policy - for an immediate cash payment. call coventry direct to learn more. we thought we had planned carefully for our

retirement. but we quickly realized we needed a way to supplement our income. our friend sold their policy to help pay their medical bills, and that got me thinking. maybe selling our policy could help with our retirement. i'm skeptical, so i did some research and called coventry direct. they explained life insurance is a valuable asset that can be sold. we learned we could sell all of our policy, or keep part of it with no future payments. who knew? we sold our policy. now we can relax and enjoy our retirement as we had planned. if you have $100,000 or more of life insurance, you may qualify to sell your policy. don't cancel or let your policy lapse without finding out what it's worth. visit coventrydirect.com to find out if your policy qualifies. or call the number on your screen. coventry direct, redefining insurance. 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 is 5:00 a.m. here at cnbc global headquarters, welcome to "worldwide exchange." here's your five at 5:00. the trump trade takes a breather. more losses at the open. now washington, president- elect trump chooses elon musk and former rival turned ally vivek ramaswamy to lead a new agency focused on government agency. also brit coin just briefly toughs new market milestone of $90,000 and got some detate this morning over that rally's staying power and wait means for competing assets like gold