pp 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 for more "millennial money." ♪ good morning and welcome to "street signs." i'm silvia amaro and these are your headlines. the u.s. president joe biden reportedly gives the green light for ukraine to use missiles to strike inside russia marking the policy shift at the end of his time in office.

and jinping warns they will not succeed. meanwhile, european measures come off the worst session in two weeks with the trump trade struggling to keep up momentum. this as the outgoing u.s. secretary-general telling cnbc strick does not turn his back on the climate transition. >> just because there's a change of leadership in the house does not mean the united states is not all in on the energy transition. when i say that, i'm talking about the states, the cities, the non-governmental organizations and business.

very good morning. we start today's show looking at the latest on the geopolitical scene with president joe biden authorized that ukraine will use, could use long-range missiles provided by the u.s. to strike inside russia marking a significant shift in white house policy according to several reports, including to nbc news sources. it comes in response to deployment of north korean ground troops in the kursk region. the white house has not confirmed the reports, but ukraine president volodymyr zelenskyy referenced the shift in his nightly address. >> translator: the plan to strength ukraine is the victory plan i presented to our partners. one of the main points is long-range for our army. we received permission about the

ref ref vent actions. glory to ukraine. >> u.s. resident joe biden and xi jinping held their meetings in peru. they are looking to get along well with each other adding any containment with china is unwise and undesirable. biden called for continued talks saying they prevent miss cal kal miscalculations. we will discuss all this hour as they prepare to meetd for for 0 summit. we will hear from tytti tuppurainen as well as shaun rein. it is time to get a check on the european markets. we have been trading for over an

hour, really, and we are seeing a muted start to the trading week. we have the stoxx 600 down .20%. i should say last week was a negative week for european equities. just for context here, we saw the benchmark down .7%. let me take you to the different bourses at this hour to get a better indication of what is happening at this point. the ftse 100 trading slightly higher. the xtra dax german bourse is below the flat line. there is a lot of pressure in italy after the main market in italy down the most last week. down by more than 1%. let me take you to the different sectors. there are different dynamics happening with the corporate stories. we see basic resources the best at this stage up .3%.

we are seeing a bit of relief for carmakers, but it is the worst performing sector i would like to show you in detail. that tells you why we are seeing a little bit of negative most p european momentum. look at healthcare. it is down .50%. this pressure in healthcare is a continuation what have we had witnessed last week. it initially started in the united states off the back of news that donald trump had appointed robert f. kennedy jr. to lead the health department. that put pressure in u.s. healthcare names and it continues to put pressure in healthcare as well. i want to show you how u.s. futures are shaping up because we have seen a different dynamic in terms of different equity performance. at this stage, it is a mixed start to the trading day and

week on wall street after what we saw on friday which was all of the three major indices down. i would actually highlight the s&p was down 1.3%. the nasdaq was down even more down about 2.3% on the day. now, last week, one of the key points we were monitoring were retail sales. looking at those figures, they came in above expectations for october underscoring the u.s. economy's continued strengths. sales rose 0.4% last month and the september print was revised upwards to 0.81. that will had to doubts from the rate cut of the federal reserve after chairman jay powell suggested that in no hurry to c. we will get walmart and lowe's

reporting on tuesday and target on wednesday. we also heard from the chicago fed president austan goolsbee saying he sees rates coming down a lot over the next 2 to 18 months as long as inflation continues to trend down to the 2% target. that is if. speaking to cnbc on friday, goolsbee said the fed is navigating through a diverse range of data. >> the job market cooled to something about full employment, where we want it. we did get one month of weak jobs numbers that it's hard to reconcile what does it mean for the long run because we had a punch of hurricanes and a big strike from boeing. previous to that, we had a couple of very strong numbers and previous to that, we had one weak number. we got to take the through line. i think the through line as long as we keep making progress

toward the 2% inflation goal, over the next 12 to 18 months, rates will be a lot lower than where they are now. >> let's get a check on what's been happening in the treasury markets. overall, what we have seen is a rise across the treasury space in terms of yields. they are currently trading at multimonth highs as investors have been pricing. a less aggressive, really, rate cuts from the federal reserve. let's just get a quick check on the yield on the ten-year treasury yield moving slightly higher sitting at 4.43%. i'm pleased to say the international cio at jpmorgan fixed national asset is joining us this morning. good to have out the show. first and foremost, i would like in our thoughts about the fed in december. what we heard from jay powell seemed a bit of a change

sounding a lot more hawkish. are we going to get a rate cut in december? >> i think it is very much dependent on what happens in the jobs report over the next couple weeks or so. i know the fed have said data, not data point dependent, the matrix of data, but it feels we're coming down to a couple of points which are interesting. they do want to ease policy, but if we get an upside surprise in the market, it will be called into question. what we are seeing at the moment, the data has not deteriorated to the extent the fed is wanting. when you look at core pce later this week, we will be above what they are predicting in the projections which questions whether they need to actually cut rates. >> i wonder whether you think the september jumbo rate cut was actually a mistake now we know donald trump is going to be the next president. >> obviously, they didn't know that at the time.

you could say some people were saying they should have cut in july with the weak jobs report following that. they were catching up. what we have seen and heard from the federal reserve, they think rates are restrictive. they think they made very good headway on inflation. as they said, they are unwilling to let the jobs market weaken from here. the big debate is are we still seeing inflation heading in the right direction or is it becoming stickier in the mid twos or are they still expecting the weakness. jay powell said they will not speculate on the policies and the timing of those. they have to look at the economic data here and now. it just does look a little bit better than it was in september. >> i wonder as well if the december meeting is actually more relevant perhaps in terms of the commentary we might get going into 2025 or whether it will be the rate decision that will be the key moment for the markets because it seems that

everyone is trying to see what will happen in 2025. for you, when you hear from the fed in december, what will be the key thing you'll be looking for? >> i think we will get anotherp. it feels like they might take down expectations for cuts next year. that will be very key. it will be key to see what the expectations are from the unemployment rate and inflation standpoint and getting a sense in the q&a as what powell is thinking. we don't know how quickly the policies will come through. it will be interesting to see if we get a pick up in sentiment. we know financial conditions have eased off. are we going to see that come through? it really will be how powell thinks about the economy and how they're predicting for next year. >> naturally. we were mentioned, perhaps we can show on the screen of the

ten-year treasury yield. i started to see commentary suggesting it could go all the way up to 5% now we know donald trump is going to be the next president. i would like to know what range you predict the ten-year treasury to be ing over the coming months and what concern that would spark concern basically? >> it is a challenge. there is a lot of uncertainty about what is going to happen. we would see 4% to 5% over the shorter term seems reasonable. if you think where we were this time or last year when we got the spike up toward five, we were 5.5 on the fed funds rate. the fed still had another hike in their projections. we're in a very different world today particularly if they cut in december. for us really to go through five, you have to have a view

the federal reserve made a mistake and reversing and hiking quickly next year. i don't think that's base case. i think base case is they are going to be paused here or aking rates lower over -- over the shorter term. our expectation is they continue to go. that means we are going to the level where the bond market and yields are looking interestingly interesting. >> interesting. i would like your thoughts on the comparison in terms of positioning for treasuries and european debt because when i look at the commentary from the central banks, it seems we are at different points. we have a more hawkish fed. what is the right sitions when you think about debt? >> they are struggling from a growth stand point already. that is the difference from europe to the u.s. if we do get a round of tariffs, it is going to hit and impact europe.

if you are the ecb today, you should be looking at easing policy. much more convicted we are going to get the cuts coming through in europe than u.s. that said, there's a lot in the price with the spread between bunds and treasuries. it feels the market is pricing for that, but it doesn't mean it can't happen. we own european duration over u.s. duration. >> thank you for your time today. that was international cio of fixed income at jpmorgan asset management. coming up on the show, we are looking at the long time restrictions for missiles on ukraine. teth bake tas u thdeil afr isre.

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welcome back to "street signs." president biden has authorized ukraine to use the missiles supplied by the u.s. marking the significant shift in white house policy according to several reports including nbc news sources. meanwhile, the foreign affairs ministers are gathered in brussels where the affairs meeting is taking place and indeed, ukraine is the top discussion for them as europe is looking to the potential implications of the second trump presidency. earlier, the eu representative said he hopes the bloc can reach the consensus on weapons used inside russia. >> i was saying ukraine should be able to use the weapons provided to them not only to stop, but hit the targets. i believe this continues.

i'm sure it will be discussed once again. i'm sure the members will agree on that and if not, anyone will do whatever is according with the need to support ukraine. >> i'm pleased to say the member of parliament of the social democratic party in finland is joining us for more. good to have you on the show. first and foremost, i would like to ask you about the importance, really, of the reports suggesting that joe biden has authorized ukraine to use long-range missiles inside russia. how much of -- of an important announcement is this and what does it mean for ukraine given you were just in ukraine eight weeks ago? >> thank you sore much much fo inviting me to the show. this is a critical point in the war and if true, president biden finally lifted the restrictions on the long-range missiles in

the russian territory. we welcome that wholeheartedly. if we regret one thing, it is it fact it has come so light. it is high time, but it's better late than never. i think it gives ukraine the means to defend herself from the constant terrorist strikes from the russian soil. now ukraine can use the western missiles also far away from the border line, it gives the ability to destroy the launching sites of the missiles and fuel stations. it could mark a paradigm shift in the war which has been going on too long. tuesday actually marks the 1,000th day since the full-scale war started in ukraine. >> i wonder whether the time

it's available is actually enough to make a difference here because we only have roughly two months before donald trump becomes president of the united states. he seems to have a different approach, really, compared to joe biden. what do you think the re-election of donald trump is going to mean for the conflict for the war in ukraine, really and do you think he can actually finish this war in one day? >> well, the election of donald trump to president of the united states was clearly a choice of the americans. they are in for more isolationism and we regret that in europe and we want to give incentives for the united states to continue her commitment for europe. one thing is, of course, the war in ukraine and i think it's in the best interest of the united states and donald trump, if ukraine wins the war, we have been long saying ukrainians are fighting for us.

they are fighting for ideals. would it be the case that ukraine would lose, wouldn't it mean that the western, the whole collect ive would lose. i don't think that would be a good start for trump's presidency in the united states. i think it's in the best interest of him to stay connected and continue the strong u.s. support for ukraine. we don't want to put that in question even though they are unpredicted. perhaps the decision by joe biden to -- to lift restrictions also engages the u.s., the upcoming administration to further increase the military support for ukraine. that's one scenario and i'd like to speak in favor of that. >> you had the chance to represent finland many times in meetings in brussels.

i wonder what you think will be the approach from the eu now that we've got this change in tone from joe biden, but he we o have the outcome of the u.s. election. what do you do when you hear the voices within the bloc and i'm referring to viktor orban. >> the only conclusion that should be drawn is we should tina increase, massive increase of our support for ukraine financially and militarily. we shouldn't be dependent on the u.s. side if we want. we have the capabilities also within european nations to help ukraine to stop russian aggression. i hope that decision by the u.s. could also accelerate the decision making in the uk, in london, also in france and also, perhaps, in germany to also

unlock the use of their military systems in order to ukraine defend herself. i think europe has to stand up now. this is a critical moment. this is certainly a wakeup call from the u.s. side with the election of trump tells us we have to take the responsibility of our own destiny and if russia wins in ukraine, it means that russia would only continue. i don't think there's anyone, any capital that generally believes a cease-fire along with frozen conflict. >> i'm sorry to interrupt. i have to share some latest comments from the kremlin before we continue our conversation. according to the latest flashes, the kremlin has commented on reports that joe biden has now given the green light to ukraine to use long-range missiles

inside russia. the kremlin is saying if such a decision has been made by the united states, this will usher in a new round of tension. the kremlin also saying that indeed if this decision has been made, it will mean a new situation with the involvement of the united states in ukraine conflict. just to return to our conversation and reading into the comments at the moment, is there a decision to give ukraine the green light to use the long-range missiles in russia, is this a conflict and actually a reason for nato to be involved on the ground? >> let's start by saying it is only russia escalating. russia is responsible for the aggression, not the west, not ukraine. there have been many times that putin has said this is a red line. this and that is a red line, but nevertheless, the war has only

continued on the ukrainian soil except the ukrainian attack on the kursk region. we should clearly notice that any peasement doesn't work. it is only the language of strength that putin and russia understands. it is up to ukraine and kyiv now to use the capability he has and try to, you know, better its position once and when the real negotiations starts. >> i just would like to also share with our viewers what's happening in brussels because the eu has seen strong indications that armed drones are being produced in china for russia according to one eu official that has been speaking to me earlier today. it is not clear whether beijing has actually aware of the

shipments. just to double check what your thoughts are on this, ultimately, what i would like to understand is whether there is a chance here that china is also involved in this conflict and how can the eu react, really, if we see china being directly involved in russia's invasion of ukraine? >> it's clear by now that the war in ukraine has also global dimensions. iran is delivering missiles for russia and north koreans have sent troops to fight on russian soil against ukraine. if it's true that china is also manufacturing drones for russia, in order to attack ukraine, i think we all are very much disappointed because we have

been trying to see over and over again to beijing it's not in the interest of china to be part of that conflict and war. we should all adhere to the u.n. charter and international law. this is the message we have been sending to beijing time and again. if it's true that china wants to be part and align herself with russia, it should be met with the strong message that it's not okay. i'm sure the ministers will discuss the proper european response. i think sanctions would be one issue that they touch upon, but clearly, it's not in the interest of beijing to cut ties with the european union and the western democracy world because the trade ties are of neutral interest. >> interesting. we'll see whether we'll see the european union actually reaching that point. thank you for your thoughts this morning. that was the member of

parliament for the social democratic party in land. coming up on the show, president biden and xi jinping meet for the final time. we'll bring you the highlights after this break.

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welcome back to "street signs." i'm silvia amaro and here are your headlines. u.s. president joe biden gives the green light for ukraine to use long-range missiles inside russia. the chinese president xi jinping warns ctions as he meets with joe biden.

and tesla shares are continuing the post election rally as the team eases rules for self driving cars. and outgoing u.s. energy secretary jennifer granholm claims it would be political malpractice if trump turns his back on the climate transition. >> just because there is a change of leadership in the white house doesn't mean the united states is not all in on the energy transition. when i say that, i'm talking about the states, the cities, the non-governmental organizations and business. let's get a check on how european equities have been trading thus far. we started today's session very much with a muted approach among the investment community. at this stage, however, it seems that we are leaning more toward

the downward side with the stoxx 600 down .3%. we are seeing only when it comes to the major bourses, only the ftse 100 marginally above the flat line. today, however, we will hear from the ecb president christine lagarde and phillip lane to see if that could impact some of the trades. in terms of the u.s. futures, this is how we are shaping up ahead of the open on wall street. it could be a mixed start stateside this after a negative day and week, really, for u.s. equities last week. to give you an idea, the nasdaq ended the week down 3% and we saw downward pressure for the tech names and healthcare companies. looking at the latest in the transition team news from the new president-elect. reportedly, he told advisers they are looking to ease rules around self driving cars

according to bloomberg. this could benefit elon musk who has bet big on self driving technology and you have currently tesla shares in pre-market move up almost 9%. in addition, donald trump has tapped chris wright, the ceo of liberty energy, as his pick for energy secretary. wright said in a social media post last year, quote, there is no climate crisis and we're not in the midst of the energy transition either. he called for higher levels of fossil fuel production. that sent shares in liberty energy sharply higher in pre-market trade. continuing with the u.s. energy team, the energy secretary for the united states, jennifer granholm says it is political malpractice.

400,000 people have been hired as a result of then. dan now joins us from the middle east. you had the chance to speak with the energy secretary. what else did she say, really? >> reporter: the outgoing energy secretary jennifer granholm putting on a bold face at the cop29 climate conference in baku. granholm had a warning for president-elect trump and not to reverse the climate policy commitments. listen to this. >> other countries are urging the u.s. to stay in. major oil producer like darren woods from exxon said you need to have consistency. the business community wants consistency. this is not just about in or out or shifting back and forth. let's have a consistent practice. we have been here before.

they pulled out before and we got back in. all of this is not going to stop. these laws are ten-year laws. we have 900 factories that opened up in the united states. one thing that the president-elect has said is he wants to bring back manufacturing. that is happening. are you going to stop that now? this is momentum toward clean energy and the united states and these communities across the country hiring people are building the products that will get us there. >> just on the inflation reduction act. is it really going to stand up with a climate skeptic in the white house? >> let's say his right-hand man, elon musk, who is somebody strongly in favor of products that reduce or address climate change, obviously, he is the founder of tesla. let me also say that the idea of undoing all of this investment

coming into the united states today, there was a johns hopkins study out that would mean it would be a loss of billions and billions of export opportunities and investment in the u.s. who would want to do this for communities left behind and communities that have no other recourse? now you're seeing factories that would close and ies opening up. it is counter productive. why would we take a backseat to china? they want to be number one f. . if we get out of the game, we will cede that territory? bad for the united states and workers across the country. >> jennifer granholm there. president-elect trump has put fossil fuels at the top of his agenda and wants to pull out of the paris climate agreement

again and scale back the inflation reduction act which had significant financial implications for the climate agenda. of course, the man being tasked with executing that is the liberty energy founder and ceo chris wright. he is trump's pick for energy secretary. not just a friend of the oil and gas industry, but an oil and gas executive and a vocal skeptic of climate change. what is interesting is the u.s. is managing 13 million barrels a day of oil production. we saw production high under president biden. that is not likely to slow down under incoming president-elect trump. granholm says the clean energy transition is happening regardless of who is sitting in the white house. silvia. >> i guess also the speed of that transition would matter. thank you for bringing us that exclusive conversation, dan. meanwhile, president biden

and xi jinping have held their final meeting in peru ahead of donald trump's return to the white house. they tried to find ways to get along well with each other and adding any containment of china is unwise and undesirable and will not succeed. biden called for continued talks saying they prevent miss calculations. this is months ahead of donald trump returning. >> translator: china's goal remains unchanged. china's commitment to mutual respect for handling china/judgment china/u.s. relations is unchanged. china's desire to carry forward the friendship remains unchanged. >> managing director at china market research group is joining us to discuss the latest.

good morning, shaun. good to have you on the show. what i would like to understand, really, practically ing, what did xi jinping mean when he is ready to work with the trump administration. how is that likely to look like? >> it is good to be here, silvia. it is actually nighttime in shanghai. xi jinping wants to have good relation was the united states again and have a win-win relationship economically. let's be clear. that's not going to happen any time soon. trump has picked marco rubio to be his secretary of state, if confirmed by the american senate. this is a well run playbook by donald trump. as he said in his first administration, he put in john bolton to be the national security adviser because when he met with the iranians or ukrainians, he wanted bolton to

scare them and make on he would kill them all. he is putting rubio in to scare the chinese. right now, 2024 is very different from 2017. china is better prepared for a trade war. it is now the largest trade partner of 120 countries. i think, silvia, xi is signaling to the world he wants peace and he wants to have competition and cooperation with the united states, but at the end of the day, he's not going to bow down. he has red lines like taiwan and he wants to make sure whether it's biden or whether it's trump, they don't encroach on chinese sovereignty because china would push back. >> i wonder if we see a bit of a moment between donald trump and xi jinping in the sense that, you know, there seems to be a

little bit of a link through russia. you have donald trump who sounds quite in favor of president putin. you have some ties as well in terms of trade between russia and china. i wonder whether there's room here for them to agree on something together given that they seem to share that link. >> that's a great question, silvia. i think you hit the nail on the head. actually chinese prefer donald trump to biden. with biden, he speaks nicely, but actions horrible. he was sanctions the chinese and putting on tariffs. trump talks a lot, but he backs down. he wants a deal. it is a well run playbook. he puts pressure on china to extract as much as he can from the business side. we all have to remember in 2020 in the run-up to the elections, trump and china and xi signed a deal essentially in many ways to end the trade war where biden with beef from the united states.

it might not happen in year one or year two or three, but i think at the end of the day, donald trump wants a deal. a business deal with china. he is not looking at trying to contain china or stabilize. that's why chinese prefer trump over biden or trump or harris. they felt harris would be ing a struggle with liberal democracies and communist parties. at the end of the day, trump is a businessman. he is transactional. the chinese feel they with buy a deal. that's why i think, frankly, silvia, you heard it here that marco rubio is going to be fired by the end of 2025 as secretary of state because he's not going to be able to scare the chinese into submission and he's not going to be able to get any type of reproachmont. >> i wonder if they will get the trade deal they initially signed

with donald trump. one of my lleagues based in china was looking at the deal and she said looking at the numbers, not really. is it likely now that china will step up all of those purchases that you just mentioned there now that we have donald trump returning to the white house? >> i think they will agree to a deal buy more, but might not go all the way. they want to also show the rest of the world that they're strong and they want to get good relations with, say, brazil and buy more soybeans from there. they want to get strong with uruguay and buy more beef. they want to be stronger with australia and buy more iron /ore. i do think the chinese will extend an olive branch to trump which is what they did throughout his first administration and the hopes of getting a deal.

again, the citing thing for investors to know, china has been expanding into the global south. i was just in saudi arabia and you see alibaba and huawei all over the place. you go to kenya and thailand, china is the global trade partner. they don't need europe or the united states like they did seven years ago. i think europe has to get an action. the previous guest from finland is saying china needs europe. i actually think europe needs china. if they don't stop the derisking nonsense, we will face a decade, a lost decade in europe. they will have to have better relations in china. they will not get it with trump. >> shaun, that is exactly where i was going to go next. we have seen a lot of chinese officials upset with the eu tariffs imposed. what is the angle here with the

trade relationship with eu and china given all of the developments in chinese politics? is there room for a trade agreement with china and the eu? >> i think there's great opportunities for europe and china to bolster trade. china will do limits. they might say caps on the number of export vehicles. they want to divide and conque the world. they want to buy from france and not boeing. they want capital can support from macron. they want to continue to have a lot of investment from mercedes-benz and bmws of the world. i think if they can ignore von der leyen and if we had a good deal, there is something to be had at the table.

if you look at it, germany's auto sector is in trouble. over 50% of german auto sales have been the evs. the vast majority are chinese. the chinese auto companies are more innovative than the german ones. they need to build in china and copy the ev and they need to sell back into the chinese marketplace. that will help inflation. it is really too bad that she has taken such not -- i don't want to say demented, but argumentative role. europe needs china more than china needs europe right now. >> i guess whoever is at the white house has implications to see how she is reacting in the context. that was shaun rein. coming up on the show, we'll discuss activist investing and wh'sring tat dvihe pick up in the space. we'll be back after this short

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welcome back to "street signs." as we approach the end of the show, here are the four things to get you up to speed ahead of the u.s. open on wall street . joe biden agreed to let ukraine use the long-range missiles. we will hear from austan goolsbee who will be speaking later today. on the data front, we get a check of the housing market with the national association of home builder survey released. it is not a busy day on earnings wise, but nvidia set to report numbers on wednesday and that could have ramifications

for equity markets. meanwhile, corporates have seen an up tick in investor activity with nissan and pfizer on honeywell hitting the headlines recently. our next guest says although the term activist has negative connotations, it shouldn't be the case. i'm pleased to say thomas, the founder of 7square is joining us. thomas, good to have you on the show. i would like to understand what this recent uptick in terms of activist investors voicing their concerns and what they would like to see done -- what does it mean? why is this happening? >> thanks for having me. well, look, i think we're seeing a lot of change and partly dramatic change geopolitically and economically. you know, companies need to adapt. that's one thing, but the overall driver is more sort of, you know, i think in the nature

of the industry becoming more and more passive. we have, you know, about 50% of the public equity market in sort of invest and sort of more assive asset manager be it etf or actively managed index funds or -- sorry, actively managed etfs or indexed funds. the group of investors that actually, you know, spends time, effort and money to get behind sort of the details of companies becomes smaller and smaller and that's driving the broad activists. >> you mentioned the changes in the political scene. i would like to understand

whether changes in monetary policy have made investors more active at this stage. we have seen a presidential level of interest rates. they starting to come down at this stage. has this volatility made investors a lot more active, for lack of a better word? >> well, obviously, first of all, you know, return requirements on equities, you know, goes up and, therefore, sort of a bit of maybe what we've seen as a complacency of the return front has subsided now. therefore, you know, there's just a need for companies not only to adapt to a different interest rate environment, but also the requirements for higher returns on the equity side have just risen. >> i would just like to understand what are the most common demands at this stage?

for a while, it was environmentally conscious investors driving the changes, but that seems to have changed now. what are the most common demands or changes investors would like to see? >> well, i think there is at the moment also, you know, large focus on capital allocation. i think sort of, you know, overall, obviously, on, you know, activism is about holding management teams accountable and, you know, in a more different or a more difficult operating environment, decisions need to be made quicker and hence also on the operating side. i think we see more and more, you know, requests around sort of rethinking corporate

structure. i think one of the -- and its quite natural in a changing interest rate environments calling for rethinking and adaptation of capital allocation policies is top of mind. >> and right. what does that mean for the sectors that are seeing the highest activity in terms of activist investing? i was highlighting how we heard this is happening for nissan, pfizer and honeywell. is there also common ground here between the activities we are seeing? what sectors would you highlight as the ones you are seeing the activist investing taking place? >> well, first of all, i think, you know, you look at diversified companies and companies that have very high capital spending into

initiatives and projects that, you know, take long periods of time to pay off. be it in the car industry, you know, product cycles are very long in the aerospace industry and -- again, overall, that's not necessarily specific to that time. holding companies accountable is relatively difficult the less transparent they are and there is some transparency and diversified industrial companies lags and has been lagging for a long time. >> we'll continue to monitor what happens in the space whether we will see most pronounced voices within the activist investing world. thank you for your time this morning. thomas, founder of 7square. let's get a ck on the

action today. we are a little bit muted across the board. we are seeing a little bit of green here in the uk with the ftse 100 trading above the flat line. we have red across all of the major bourses. all of the other major bourses on the european continent. thinking about the u.s. futures, this is how we are shaping up ahead of the open on wall street. we are turning a little bit more negative ahead of the open after what was a negative day and week for the major indices stateside. before i let you go, i want to show you how tesla shares are moving in pre-market. this as investors are tracking changes and announcements from the president-elect donald trump. tesla shares at this stage up almost 8%. that is it for today's show. i'm silvia amaro. stay with cnbc. "worldwide exchange" is coming up next.

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it's 5:00 a.m. here at cnbc global headquarters. welcome to "worldwide exchange." here's your "five@5." trump trade troubles. stocks coming off the worst week in two weeks after reevaluating policies. the president-elect out with a number of new cabinet picks. among those picks, big energy ceo chris wright for energy secretary. why the current u.s.