craig melvin: that's all for this edition of dateline. i'm craig melvin. thank you for watching. ♪ good morning and welcome to "street signs." i'm silvia amaro and these are your headlines. president-elect trump ups the ante vowing 25% tariffs on all imparts from canada and mexico and 10% tariff on chinese goods citing drug trafficking and illegal immigration. and trump takes aim at the

trade partners with the carmakers caught in the crossfire. the dollar jumps as trump sets the stage for a new trade war. germany's largest steelmaker thyssenkrupp announces it will cut 40% of the work force by the end of the decade. now we start today's show with what is the most important story for markets this morning. the announcement from donald trump who has vowed to impose additional 10% tariff on imports from china. the president-elect also said he would sign executive order on his first day in office putting

a 25% tariff on all goods imported from canada and mexico. so, i want to take you to what we are seeing thus far in terms of european equity reaction this morning. as you see on your screen, we have the stoxx 600, benchmark, down almost .70%. european investors not enjoying this announcement from the president-elect. let me take you to the different bourses so you get a better picture what is happening across the continent today. ftse 100 is down .50%. in france, the cac 40 is down .10%. we know there are several companies with exposure to china and they could be impacted by the announcement from the president-elect in terms of potentially seeing lower growth in china, too. let me take you to other parts of the market where we are seeing considerable amounts of pressure with the announcement

from the president-elect. look at the carmakers. volkswagen down by more than 2%. stellantis down almost 4%. we know this is another part of the market where there is exposure to china here. they have a multinational presence as and they could be impacted by the trade war. looking at spirit makers, another asset class where we are seeing pressure this morning and another part of the market that could, indeed, be impacted by the latest announcement by the president-elect. diageo down 3%. and still moving lower this morning and let me show you these at this stage. we have pronounced moves when you think of thyssenkrupp. we will discuss that in more detail later in the show.

in terms of how other parts of the market are reacting from the announcement from the president-elect, let me take you to how we traded so far in asia. look at the nikkei 225. it is down .90%. the shanghai is down marginally at this stage. when you think of the export led asian companies and how they moved so far today, indeed, a clear link in what we heard from the president-elect and how investors are positions themselves as a results. let's get a check of how u.s. futures are shaping up. yesterday, we had a strong session on wall street. to give you the idea, the dow, s&p and russell 2000 all hit intraday highs on monday. in the wake of the announcement from the president-elect, looking at futures at this stage, they suggest a mixed start to the session on wall street with quite flattish moves.

the announcement from donald trump has changed the market narrative in last 24 hours. here at cnbc, we have talked about these all morning and we want to show you comments from our guests so far. >> you look at trump and it is easy to get bogged down in the day-to-day politics really and not focus on what's driving markets. what is driving the markets is the policy set up. it is what happens with rates and what happens when we look at the fed. we will still get the rate cuts. >> the market seems to expect the trade war to be a long negotiation process where the u.s. gets something and china has to give something. the point is there is a possibility that trump implements significant tariffs. there will be a lot of pressure in europe to do the same.

we know how this will land. >> we are still reasonably cautious. obviously, realizing that statement with move 1.5% to 2% overnight. the trump administration will use tariffs as one important lever to negotiate with the xi government. it is more about negotiation rather than imposing tariffs. >> now there is another asset class where we have seen a strong reaction in the wake of the announcement from the president-elect. let's look at how currencies have moved as a result. yesterday, though, it is important to give you context. we had the dollar index down .60%. investors reacting to the announcement of the treasury secretary and thinking he was going to be perhaps a more moderate voice within the new administration. in the meantime, the announcement of new tariffs from the president-elect, from donald

trump himself, has put pressure here and changed the narrative for the dollar. we are seeing strength for the u.s. dollar. let's look at canada and mexico currencies because let's not forget the president-elect announced specific tariffs for canada and mexico. when you think about the wait and mexico and canada and canada, the weight in the u.s. imports, they represent 40% of the total u.s. imports. at this stage, we are seeing in terms of the canadan dollar, the dollar moving slightly up 1% against the canadian dollar. we have seen pressure for the mexican peso. all in all, these are some of the initial reactions we heard from the president-elect. to discuss this further, i'm pleased to say head of global

interest rates at goldman sachs is joining us this morning. good morning. good to have you on the show. first and foremost, i would like to get from you as well initial reaction in terms of what you heard from the president-elect yesterday. i know you are still quite bullish in terms of the performance of the u.s. dollar going into 2025, but what do you make of this perhaps little bit more detail here from the president-elect? >> good morning. thanks for vog me. i think the first reaction here is investors should get ready for a wild ride in fx volatility. i think it will be as we go into 2025 and the months ahead, we will see some of the back and forth in the currencies. the dollar is down .60%. it is up more today. i think this is going to be something we all have to get used to. it is going to be, volatile moves in fx markets, because currencies are to some extent the primary means to respond to

the announcement. the economic mechanism that seems to react. that is the first thing to say. volatility is going to be with us. we need to be ready for that and we need to strap in for that. >> is it here with us for now? for the long run? what's the time line here? >> i think it is with us for the long run. i think, our expectation is tariffs are going to be a prominent part of the policy mix of the new administration. i think there are questions you can have about, you know, is it a negotiating tool? is it not? are these maximalist positions or not? is it priced in? all of these are relative questions to have. i think at the end of the day, we will see an increase in tariffs, primarily on china. i think that will illustrate a stronger dollar response on a broad basis. >> what sort of level are you seeing with the index going up in the next 12 months really? >> i think with the baseline

scenario, president trump and the incoming administration imposes additional tariffs on china, potential tariffs on autos. you know, we have something like 2% to 3% increase in the broad dollar index. i think we need to be aware that is the baseline scenario. throughout the campaign and throughout previous statements, there have been talks about across the board tariffs. tariffs on a wide range of countries. mexico and canada, you know, mentioned overnight. once you start factoring in the risks this is not just about china, but across the board, i think you need to factor in potentially even further upside in the broad dollar and down side in the key currencies like the euro, you know, and canada and mexican peso among the key constituents of the trade weighted index. >> give us more color on that. when you look at the detail in terms of new tariffs for china,

the number we obtained yesterday was smaller than what donald trump said on the campaign trail. given what you just told me, is there more pressure on other currencies that it is not the chinese yuan? >> i think that is a possibility from two perspectives. the first is i don't speak to anybody who doesn't expect tariffs on china. i think tariffs on china are widely expected. to some extent, china has room to respond with fiscal policy or whether it is actually maintaining a low wall regime in the currency space. when you think about the differences relative to the first trade wars in 2017 and 2018, china makes up a smaller share overall of u.s. imports compared to other countries you mentioned. i think there is a risk. the weakness you see in the rimibi or the weakness in other

currencies which could be caught within the trade war net. i think it is important that it is not just they are targets, but discussed like yesterday, the details will matter here. what is the exact level of tariffs? what are the conditions? when do they come off? are they temporary? are they permanent? >> what kind of currencies could be the biggest losers here? >> i think certainly we have to think about the mexican peso. they have a large exposure. i think ultimately we think it is in the interest of both the u.s. and mexico to reach agreement on the border. there was also some of that content in the tweet that you saw or comment you saw yesterday. but i think other currencies, things like the euro, where there is less room to respond on the fiscal side and the only response is likely to be from the ecb lowering rates even further in what is already a

soggy economic picture. i think you can see a down side there or in yuan or other places we haven't priced in risk and you could see more downside risk with the economies in asia started to get commented on. >> let's talk about the euro. are you in the school of thought we could see parity against the u.s. dollar in the near future here given the divergence in terms of policy? >> we are targeting 103 or something close to but not quite. i think you have to be open p minded here. if you get to the tariffs, you get to the tariffs across the board. if europe is particularly targeted, i think it is important that that is the kind of thing that could get you to parity and beyond. i think it really -- the details really matter here whether it is across the board or whether it's china or mexico or whether how europe can expand and fiscal response to support the economy or a monetary policy to lower

rates and widens the interest rate differential further. those are the kinds of things we have to see. yes, i think the distribution of risk that investors have for 2025, i think parity is part of the distribution. >> and perhaps the sterling is where investors can look for a little bit of, lack of a better word, safe haven if you don't want to have exposure to the u.s. dollar given what you described to me? >> we have sterling at a diamond in the rough. it has the volatility we have seen in the recent market sessions. we do think, you know, sterling has some interesting properties t. . it has higher equities and the higher environment we expect in 2025. also, the bank of england looks to be hawkish outlier reftive to other banks. growth seems to be holding up. rates might actually come down

more slowly in the uk compared to the u.s. we quite like sterling in the first half of the year until the bank picks up the pace of the rate cuts. if the budget, to give a boost to growth in the near term, i think sterling could be an unlikely winner. >> interesting. it was great to speak with you off the announcement of the president-elect. that was the head of global fx, interest rates and strategy research at goldman sachs. we'll hear from the incoming national security adviser mike waltz later today on cnbc. don't miss that at 12:20 london time. coming up on the show, trouble at thyssenkrupp. the company becomes the latest to cut its work force. we'll by ring you the details after this break. been selling us billions of single-use sugary drinks. using the same old one size fits all playbook. until now. meet

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welcome back to "street signs." let's take a look at germany where the chancellor olof scholz has officially been nominated by the social democrats to lead the party into the next february election. the party's committee unanimously backed scholz after boris pistorius ruled himself out of the running last week. scholz said he was not concerned about the previous reservations whether he is the right candidate to lead the spd party into the election. >> translator: those who have spoken out behind me and this decision. i discussed it with all of them. i thought it was okay there was a brief cause for the discussion over i was the right candidate for the party. but it is a good feeling to know we have have caused together an achieved what we have done last time. the citizens of the country

voted for the spd. >> looking at the polls, spd is third with the least amount of votes. and staying in germany, thyssenkrupp is slashes 11,000 jobs. that's around 40% of the total work force. it comes as part of the series of cost cutting measure was the german industrial group warning overcapacity and cheap exports out of asia have placed quote a strain on come competitiveness. we have annette with the latest on the story. is there a sense here that the next government could actually revive the industrial capacity of germany? >> reporter: i think the pressure is actually mounting on politicians in berlin to do something about the high energy prices and, of course, also the

competitiveness of companies such as volkswagen in the international spheres. clearly, the makers are helping the subsidies elsewhere and energy prices are not helping if companies producing here in germany can't benefit from any of those subsidies because we don't have them, especially when it comes to energy prices. and, yes, just today, the outgoing economy minister is meeting with the industry heads of the companies to discuss how it is actually possible to reduce energy prices in the short-term. of course, that's now a lot of split milk. we see this with thyssenkrupp and the restructuring plan. the steel unit has been in disarray for many years. essentially, already in 2017,

when brussels did block the merger between tata steel and thyssenkrupp steel, that was probably the last chance for turning around the fortune for that unit of thyssenkrupp. the regulation authority said no to it and there was no big champion in the making. apologies. now what we are seeing is the last-ditch effort to actually safeguard the remainder of thyssenkrupp steel in a much smaller scale and then transform that into the green company. whether this is going to be successful or not also very much depends on the billionaire investor from the czech republic and also from investors from berlin. overall, to sum it up, it is a tricky mix unless we want to ruin the industrial base further here in germany. >> no doubt a lot of work for

the next government however that's shaped. thank you for the report today. meanwhile, let's get a check here in the uk where the chancellor rachel revis is under pressure after the british retailers were the latest to criticize her budget measures. no in november, the latest shop prices could signal the end of falling inflation with several billion pounds next year and increase as well in the minimum wage. speaking at the concentration at the event on monday, reeves stood by the policies and said there would be no more tax increases on british business. >> we have to wipe the slate clean and ensure the public finances were on firm footing and public finances were properly funded. if i hadn't done that, i'm afraid we would have had the

instability which plagued our economy for far too long. we saw what happened a couple of years ago when the government was not honest and realistic about the gap with the money coming in and money spent. i'm not going to be that chancellor. i'll be honest and talk about the challenges we face and take the action needed to put those problems right. we've done that now and businesses can now be certain that we're never going to have to do a budget like that again. >> the deputy bank of england governor gave her support to gradual rate cuts saying she is more concerned inflation comes in higher, not lower than forecast. a strong wage growth in the uk could be strong for inflation. i'm pleased to say the uk economist is joining us this morning. daniel, first explain how you are reading the comments from

lombardelli for the risk to monetary policy. do you agree there is a risk to changes to the monetary policy going forward as a result to the numbers we see in terms of wage growth? >> we absolutely do. i think inflation persistence is a big risk. we are at 2.2% inflation at the moment. that will rise with the base. we will be closer to % by the end of the year. lombardelli cites services acknowledge and wage inflation. i think the risks are certainly to the upside when we look at inflation. >> i want to address the elements you said. before we get there, what are you pricing in in terms of rate cuts from the bank of england? any meaningful changes in the short period of time?

>> if we were aking three months ago, we were talking 3%. we are thinking 3.5%. that is in line what with markets expect. in terms of cuts, we think it will be cautious. once every quarter. once every other meeting. >> it is important to look at some of the comments from the bank of england have been. i want to discuss that in more detail in a moment. i want to bring a flash because we hear from the chinese foreign ministry in the context of what the president-elect announced yesterday. the chinese foreign ministry saying on trump's tariff threat that china is willing to continue anti-drug cooperation with the united states on the basis of equality, mutual benefit as well. thus far, we are also hearing from the chinese foreign ministry that fentanyl is a u.s. issue. china supported the u.s. in addressing all of these challenges.

thus far, the comments we are hearing from china are negotiations. these are early developments. we will see how things develop between the u.s. and china. daniel, to return to our conversation. when you think about 2020 and 2025 and the comments from the chinese foreign ministry are very timely, really, because i was going to ask but the threat for the uk economy off the back of the election of donald trump. new announcements in trade tariffs. is there a risk here for the uk economy as well? >> i think the tariff issue, there is somewhat of a risk. i think the direct risk is quite minimal. most of our ex-pourt exports e minimal. the broader protection across the globe will protect the uk. we are a small overall economy.

>> when you think about the global dynamics here, what do you think is actually the biggest risk for the uk economy going forward because, obviously, there is a change here in the u.s. administration. there is also the continuing wars. what would you highlight in terms of the point likely to put on further uk growth? >> the one is the immediate u.s. elections, but in terms of the unexpected shot, the geopolitical aspect would kick in there. one comment i would say in the price shocks in the last 20 years, we will see more of them over the next 20 years. particularly central banks would look through the supply shock. i think it would be difficult to look through the supply shocks. >> is that, perhaps, the biggest headache for the bank of england though we heard from

lombardelli yesterday? >> i think they obviously got to be careful and not sort of, weigh into what could cause a diplomatic problem. in terms of the latest decision where we did see a cut, they couldn't incorporate that into their decision making. i think the decision came just two days after the u.s. election. i think you might see more of the -- more of the u.s. story come out in the minutes. they weren't directly attributed to the u.s., but they might talk about global pressures. you will see how it i nfluences. >> there is the reliability of the data. one citing that the work of the ons in terms of labor market data is not reliable. how much of a problem is this because this is not a debate that is near, really. i remember conversations about this earlier this year as well. >> that is the survey with the

labor market data which is important with how the bank of england decides these things. the problem there is the response rates have been falling for about ten years, so it has become unreliable. it doesn't effect the wage data. the wage data is a different source, but it effects unemployment data. you are seeing quite volatile unemployment data come through and i think as a result, what they are more looking at is the metrics not affected by that. notably wages and services inflation. >> we are approaching a specific part of the year with the christmas shopping coming up. i would like to get your thoughts on the health or lack of it on the uk consumer. what is the data telling you at this stage and how do you compare it versus what we saw last year? >> there are so data points that are encouraging. that's helped prop up disposable income. it hasn't helped with the falling wages during the pandemic. that has been a boon to the consumer. you see the confidence is not

massively brilliant at the moment. we saw a drop before the budget. we need to see more of a recovery. also the savings rate is higher than pre-pandemic wage. the consumer is sort of holding back. the tailwind to growth. we could see that fall in a sustainable way. >> we will see what it means in 2025. that was the uk economist. coming up on the show, flooding is the biggest urban catastrophe, but how can we minimize losses? we'll discuss more with swiss re 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

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welcome back to "street signs." i'm silvia amaro.

here are your headlines. donald trump pledges tariffs on canada and mexico and additional 10% tariff on chinese goods. european equity markets slide into the red as trump takes aim at the trade partners with the carmakers caught in the crossfire. the dollar jumps as trump sets a new trade war. the greenback climbing against the peso and hitting the highest level against the yuan since july. and it will continue operating the country on anti-drug measures. ♪ time to get a check on how we are trading so far this

morning across the european bourses. european equities have been trading for over an hour and a half and thus far we have seen red across the board really. the benchmark stoxx 600 down .60%. investors reacting to the announcement from the president-elect of new tariffs, i should say, against canada and against mexico and also against china. let me take you to the different bourses to get a better idea of what is happening so far this morning. we are seeing considerable amount of pressure with the french equities with cac 40 down .80%. we know several french companies have exposure to china. there could be ramifications here for them as well. but i want to take a look, a closer look at how we're trading with sector breakdowns. looking at the best fer perform sectors, telecoms above the flat

line. let me take you to the worst performing sectors. carmakers, no doubt here. auto sector down 1.6%. we know this is a sector that could be very much mpacted by new trade tariffs. these are businesses with multinational presence as well at the time the companies are facing other challenges with the transition to evs. and retail is down 1.3% even though this is an important week also for retailers as we approach black friday deals. let me show you how u.s. futures are shaping up at this stage. it suggests a mixed trading start on wall street with a little bit more pressure for the dow jones after the strong performance on monday for the equity names. dow, s&p and russell 2000 hit

fresh intraday highs. we will see consumer confidence released stateside. it is quiet on the earnings front, but no doubt one of the main focuses for the investment community at this stage is the announcement from the president-elect ther that's for his incoming administration or indeed new policies. looking at the risks with climate policy as well, protecting against flood risks can be up to ten times more cost effective than rebuilding. this is according to swiss re. the insurance company says governments are increasingly taking measures against floods as risks increase, but financial impacts are still high with floods costing the world nearly $52 billion in 2023 alone. i'm pleased to say the chairperson of the public solutions at swiss re is joining us this morning. good to see you, veronica.

first and foremost, i like to start the conversation about saying what happened at cop29. i know you had conversations about that. you were present in those conversations, too. how do you deem the outcome of cop29? >> hi, silvia. thank you so much for having me on your show today. well, cop29 is part of the journey toward building real climate resilience. i look at the progress that we've made through the negotiations this time and there's been some important step forwards around article vi which is helping a more orderly development of carbon markets which is integral to our organization. critically, i see an upscaling of the financing which is something as an organization we have been advocating for a long time. our own presence at cop was predicated on the actions of

mitigation and showcasing how we can support through the process. >> did you get a sense from your conversations that the governments across the world actually are taking your message seriously? you suggested you had specific measures suggesting what governments can do in regard, but do you get a sense they will listen and act on it? >> yes, i do sense a serious intensification of the engagement and real have to what we observedis escalating climates. 58% of cities around the world are going to be affected or severely exposed to flooding risks. we do know, as you pointed out, that $52 billion of losses were associated to flooding events. our analysis shows, in fact, the vast in majority of losses can

be pretty much avoided with the right, you know, green infrastructure and gray infrastructure investments. 98% of coastal flooding could be completely avoided and 95% of flooding. that is a lot of money that can go into other forms of protection. as you pointed out, the cost benefit analysis. we want to be part in parcel as a solution in the industry and the type of argument i bring forward is we can give you insight on how to better plan for the longer term. our risk analytics offers that. a long-term rise on any type of climate scenario and associated with any type of hazard around the world. we know through our analysis there is also very concrete interventions that we can model. that puts a real prize ce on th benefits. last, but not least, we are

willing to anticipate in the development of this market. it's for protection of people and protection of assets and protection of our economies. insurance is protection at its core. we came through public/private partnerships to share the risks and ensure the alignments are specifically part of the public/private agreement. >> given the research your team has done in this regard, what are the measures implemented in a way they don't cost a fortune and can make a significant impact in the lives of everyone and when you think about floods and thinking about spain, of course, what are the measures that wouldn't cost that much that could actually be implemented soon? >> well, you need to compare the cost of the investment with the cost of the inaction. that stands on average 1 to 10. so, there the economics are

critical or we call it the benefit-to-cost ratio analysis. that makes us make the come per built. we found what is effective. this is not just swiss re review. we came together with the demonstrated application and model analysis. for instance, the strain on dykes and the more adaptive interventions interventions tend to have less over time. we know this is more costly, but also the benefit in terms of protection and overall, recovery financial or avoidance of loss can be extremely substantial. we find many countries around the world are open to those discussions and very much interested in finding the mechanism where we can have

long-term price stability at the same time. >> veronica, if we don't see meaningful changes in the near future from the policy point of view, given what you highlighted for us and given how the extreme weather events are more and more recur recurrent, do we need to get used to higher insurance premiums? >> the analysis we have been performing today are integrated, for instance, let me take australia, the municipality uses our long term views and scenarios integrated view of developing climate risks to inform building codes and standards. that in and of itself is a key fundamental step to long-term

insure ability and loss avoidance. we see this is becoming ever more a shared view of risk which is becoming ever more part in parcel of multilateral development banks making loans available in emerging markets and the way it was designed with the integrating the risk analysis as part of the investment. of course, in the failure of such interventions, insurance prices can go up because all they do is put a price on the escalating risk. >> veronica, with all of the risk factors, what i would like to understand and have to come back to this point is ultimately what makes you so confident we're going to see the government action? i was speaking for instance yesterday, with the dutch climate minister who acknowledged the netherlands is not on track to achieve the 2030 climate targets. if you look at other parts of

europe, that's also the case. we just got donald trump reelected for the white house. we are seeing growing pop u we are seeing growing pop lism across the world and that is less friendly with climate policies, too. where are you getting this confidence from really? >> i take it from the fact that there is a need to have a very clear way forward and structured approach to a complex problem. and i think the insurance industry does not possess all the answers, has some of the critical elements to create that alignment longer term. of course, we need to engage which is why we attend cop and bring whatever we can to the table to make sure those decisions are very well informed. >> we will see what they will do. in the meantime, we appreciate your time this morning. thank you, veronica. chairperson for public sector solutions at swiss re. coming up on the show,

bitcoin bitcoin hovers just below the $100,000 mark. llt break through? we'll discuss after this break.

welcome back to the show. we continue o monitor what is the biggest story for markets today. we just heard from the chinese vice president are who says the country is willing to work with other nations to promote, quota open world economic system. he also added that the country will expend cooperation in clean energy had. these comments come off the back of the announcement president-elect trump yesterday announcing new tariffs on canada, mexico and, indeed,

china as well. staying stateside, the u.s. judge dismissed the case against president-elect trump over his mishandling of classified documents and his efforts to overturn the 2020 presidential election. meanwhile, as we approach the end of the show, here are the four things to get you up to speed ahead of the open on wall street. on the data front, there will be new home sales, consumer confidence figures and the richmond fed survey as well. the fed minutes from the november 7th meeting will be released as well later today and on the corporate front, citigroup is in focus after slashing the number of year-end promotions as the bank goes through the cost cutting plan. and in the retail world, macy's delays the quarterly results saying it found out one employee kept $132 million in expenses hidden for the past three years. checking on the bitcoin.

the cryptocurrency is trading below the 1 $100,000. i'm pleased to say carol alexander at sussex university is joining us today. carol, as this stage, we have bitcoin around $93,000 ark. are we on track to hitting that psychological level of $100,000? >> at the moment, it's unsure because actually it fell 5% yesterday, which isn't unusual for bitcoin. it often moves sometimes 10% up or down in a day. quite a few long positions were what we call liquidated. in these markets, a majority of trading is unregulated exchanges that don't have any margin calls and there is a lot of leverage. you can have up to 100%

leverage. that is called liquidation. a lot of liquidation happened yesterday on the upside. there is a lot of leverage on both sides. what we're looking at is a support level around 92 or 92.5. if it falls below that, i think we have to wait until inauguration day where the powers that be ill probably time a breakthrough of the 100k. it's initely coming. the question is whether it will be this year or a bit before or around the time the 20th of january. >> and what i would like to understand here, carol, is if this is actually sustained? we have seen a lot of support for bitcoin and other cryptocurrencies in the wake of the re-election of donald trump. you are saying we could hit the

$100,000 mark in january off the back of the inauguration. is this likely to continue into 2025 or is there a point next year where this is all going to come down? >> definitely not. i've been predicting the price of bitcoin quite well for the last three years probably because i don't hold it and also i study the price formation in my research. i've never been so bullish. in fact, 2021, i was about the only bear. other people were saying it was going to go up to this sort of level then. i said, no, it will probably go down to 10. it went down to 14.5 then. i've been moderately bullish the last couple years. this year, the beginning of the year, i did say it could hit 100k. i think we will beyond that level. trump is a game changer in crypto. so much has changed. i could not say there is a policy shift because there is no

policy. there are so many signs. ask me about them. they're everywhere. >> tell me about that. why is it so positive for the cryptocurrency world? >> well, first of all, he's doing away with regulation. i mean, there's been a lot of discussion in senate, congress about the bills to try to regulate crypto industry with nothing really happening. in europe, we have much more clarity, but gary gensler's position, of course, he's resigning and stepping out of office on inauguration day. making a point about that. he has been litigating, he's been litigating against the exchanges in particular and these token offerers calling them securities. he's going. you know, the new commerce

secretary howard lutnick is deeply embedded in this rather dubious company called tether which issues the largest stablecoin. trump has said we will establish a bitcoin reserve. this is the bill. buying 1 million bitcoin in the next five years and holding those for 20 years, that would give a market value of the so-called strategic bitcoin reserve of $100 trillion. things that he says, his new token offering -- >> carol, what you were just describing to me raises the question whether we're actually something a conflict of interest here with the incoming administration and the cryptocurrency world. you just highlighted there how the commerce secretary pick is heavily invested in the space.

we also know that donald trump's family has their own crypto project. world financial. >> world liberty financial. >> exactly. i always confuse the ords. is there conflict of interest here is my question? >> yes. they are doing a token offering at the moment and holding 20% for trump for that token. this token offering is for a shadow bank. it's undermining traditional banking and giving the power to trump and his family. >> is that -- you know, is that right? is this how we're supposed to go going forward? where is this regulation going to come from with the conflict of interest with the incoming president? >> no regulation on the who are horizon. >> interesting. carol, before i let you go, if we see them take crypto more

seriously going forward, will other governments follow suit? >> europe is completely different. we have had clarity with the cryptocurrency industry with switzerland with the token. it is crowd funding. you don't need to go through an ipo to raise money through equity now. any project can get up a web site and put a white paper and road map. a lot of these are just scams. europe has -- we have the asset regulations. we have held off on the stablecoins mostly. we restricted the flow of stablecoins in u.s. denominations and the tether corporation, which is the genie in the bottle that's going to come out now has not been issuing any more stablecoins in

other countries. trump said we don't want central bank currency. we'll just have tether. >> it is no doubt an interesting story to follow as we track the incoming administration. we have to leave it there. that was carol alexander at sussex university. before i let you go, a quick check of the markets this morning. so far, we have seen red across the board as the european investors are digesting the announcement of the tariffs on canada and mexico and china. looking at u.s. futures, we are expecting at the moment we just turned positive. let's see what will happen on wall street. that's it for today's show. i'm silvia amaro. "worldwide exchange" is comi upex nt.ng

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it's 5:00 a.m. here at cnbc global headquarters. welcome to "worldwide exchange." here's your "five@5." the president-elect shaking up global markets as he talks tariffs on china, mexico and canada. that is putting risk here in the u.s. as the russell and s&p pull back. and the hawkish fed warning of another rate cut. shares of kohl's sliding after the c-suite shake up. and morning star thinks the best