that's all for this edition of "dateline." i'm craig melvin. thank you for watching. [theme music] ♪ good morning and welcome to "street signs." i'm silvia amaro and these are your headlines. at the highest premium to the german counterparts in 12 years as they weigh michel barnier's chances of the budget through parliament with the no confidence vote on the cards tomorrow. and a strong start to december with all majors firmly

in the green. investors shrugging off the turmoil and under perform as in the cac 40. and crude prices push higher ahead of the opec meeting on thursday as aramoc ceo strikes a bullish note to cnbc. >> the forecast we are seeing that demand will expand with asia, india and china and other countries. we are looking at 5 billion barrels of growth next year. and tesla shares fall in pre-market after u.s. judge up holds the decision to deny elon musk the record-breaking $56 billion pay package despite shareholders voting to reinstate it. very good morning, everyone.

let's get a check on how we are trading so far this tuesday morning across equity markets in the european continent. at this stage, we have the stoxx 600 up .6%. investors, however, are on the waiting and see mode where expectations trying to understand what will happen next in france and also waiting key data and the jobs report due on friday to understand whether the center rally is actually here to stay. i want to take you to the european bourses to get a better picture across the continent today. the cac 40. we are paying close attention to france. the bourse is up almost 1% at this stage. somehow, looking at yesterday's performance, we did see the cac 40 finishing the day marginally above the flat line. this, indeed, as we continue to track what is happening on the political scene. let me get you up to speed on

the political developments in france. the prime minister michel barnier and his government is on the brink of collapse less than three months after appointed to the role. opposition parties have submitted motions of no confidence after the article was triggered of the french constitution allowing him to pass a 60 billion euro spending bill without parliamentary approval. addressing lawmakers at the french national assembly, barnier said he was taking responsibility for his actions. >> translator: this is why on the basis of article 49, paragraph 3 of the constitution, i hold my government responsible for the entire social security bill for entire 2025. in its version, resulting from the work of the joint committee and modified by the amendments tabled. i do it by calling for the responsibility of each of the

representatives of the nation you are even if you have to leave this cycle and convinced our commission beyond our differences is to serve france and the french people. from now on, ladies and gentlemen, everyone must take responsibilities and i take mine. >> time to get a check on the bond markets reacting to the political developments. we have seen the spread with the french and german ten-year bund widening in recent days. we saw it yesterday as wide as much as 87 basis points. let's see what will happen throughout the day as we continue to figure out what will be the next steps in terms of the political uncertainty in france. to understand a little bit more and better what is likely to happen over the ing days, charlotte is joining us with more. charlotte, perhaps explain for our audience and investors out there, what are the key moments to monitor in the next 24 hours? >> it is interesting to see.

we have been watching the situation for a while with the barnier government and position for a while with the minority government and split national assembly. people are surprised this could already be the end of the road for barnier as prime minister after three months of getting the job. again, you have seen concessions of the barnier government to the far right. we know the kingmakers are the top in the national assembly. the far right supported the barnier government. it looks like all this is coming to an end. we saw the concession on electricity that was scrapped. yesterday, in the final hours just before that appearance in the national assembly, the government announcing a new concession with another red line for the far right which was reimbursement on drugs. they said they would scrub this as well. even the barnier government

thought they had enough concessions to bring up the far right. they have the two parties playing the bluff game between each other. then barnier calling the government pushing through the bill without a vote and triggering a vote of no confidence and the far right coming out saying they would support a no confidence vote triggered by the left. you have the lines with the far left and far right ing this barnier government that could happen tomorrow or thursday morning. that brings forward an unknown window. emmanuel macron is currently in saudi arabia. when he travels back tomorrow, he has to introduce a new prime minister. who can be the person who can hold a government and bring potentially reforms to tackle the budget which is expected to be above 6% this year. it is city to find one who might be able to reach a majority in

any case. barnier was one figure who looked to do that and it looks tomorrow or thursday is the end of the vote for him already as prime minister. >> when you think about how hard it was to find michel barnier in the first place. let's see what will happen in the coming days. no doubt a lot of attention happening over in france. here to discuss the implications of the latest political developments out of france, i'm pleased to stay serena kenney is joining us this morning. hello, good to have you in the studio. i would like to understand what is your working issue at this snaj stage? what are you ing at this stage? >> it seems the chance for the government to remain in place has been sub sanction. ub stangs. the rest of the budge for 2025 is impacted. the question is about the fiscal consolidation that was supposed

to take place and in fact, the european commission has approved the budget. meaning that the or the projection to make the debt sustainable. now the question is about the fiscal consolidation as some concessions were agreed by the barnier government which would lead to a decline of the fiscal tightening. now the fact that we will probably see a redo of the budget 2024 reduce the probability to see a deficit reduction. >> so, should investors be concerned? will this likely remain a risky event or will this spread to euro? >> for the time being, it is mostly concerning france. in fact, if you look at the june election, it has reliance spreads with challenging fiscal dynamics in france. the gross differential has made

difficult to run a primary surplus to make the debt sustainable. as you described 80 basis points, it should be at that level because of the political uncertainty and the fact that we will be in a situation of redoing the budget of 2024. >> will that level, 100 basis points, spark real concern or would the ecb look at it and say let the markets do what it would do. >> that is a good point. if you look at the french yield, it was lower now than when it was president macron called the snap election. at the time, the eurozone rates have upset somehow the increase of the sovereign rates. it is a good point with the mention of the ecb. we know the french government

will be ppi especially if there is a fiscal discipline and consideration which was the case until recently. i say the european commission has agreed on the budget saying that it was on the right path to make debt sustainable. it means that if there is a widening of the spread, the ecb might step in it actually. if you look at the french yield, it remains quite contained so far. >> i would like to understand at what level would the ecb come in? do you think there is any sort of range they are, perhaps, concerned with? >> that's very hard to tell. if there is warranted widening of the spread, that is not consistent in that case that would lead to an action by the ecb. >> this is actually coming at an interesting time. all of the recent economic data in relation to france was

actually pointing to the olympics boost and how confidence had somehow returned after the election and so on. what do you think are the implications here for the economic indicators for the french economy given the political uncertainty? >> that's not great actually, because since the election, since resident macron called for the snap election, it led to this environment. companies tend to postpone investment in the future because there is no visibility. in fact, this year could have been a positive one because at the same time, the ecb is easing monetary policy and big investment is needed. france benefitted from the boost from the olympics, but this uncertainty could have implication on investment and employment going forward. if you look at the recent business sentiment, ecb has been declining. >> just to finish up our conversation, i would like to clarify how you would read a

potential use of the ecb of their tpi industry.strument. the idea is we have to tool, but we don't want to use it. if they end up using it in the french context, how would you view that? any concern or the regulator is there to sustain some of the losses? >> in fact, the ecb tools should stabilize investors. reaching a certain level. we are currently 80 basis points. it could reach 100 basis points. the fact that ecb, if ecb is credible, it should stabilize in the expectation with the ecb not forced to use it. >> we will see what happened if the ecb reaches that point. senior economist at asset management. the president-elect donald trump will visit paris this weekend for the reopening of the

notre dame cathedral which has been restored following a devastating fire five years ago. this will be trump's first overseas trip since winning the second term in the white house. coming up on the show, we will cross over to the resourcing mining conference where we will be joined by the chairman of equinox gold. that conversation is coming up after this break. at betmgm, everyone gets a welcome offer. so whether you're courtside trying to hit the over... or up here trying to hit the under. whew! or, hitting that win with your crew. ohhh! yes, see defense! or way up here with a same game parlay. yaw! betmgm's got your back. get your welcome offer. and play with the sportsbook born in vegas. all these seats. really? get up to a $1500 new customer offer in bonus bets when you sign up now. betmgm. download and bet today.

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welcome back to "street signs." u.s. president joe biden has arrived in angola. the railway brings critical minerals from the democratic republic of congo to angola as

the u.s. looks to counter chinese influences in the region. i want to take you to how we are trade in the commodity action this morning. looking at gold up .75% at this stage. i want to discuss more the outlook for gold. joining us now from the sidelines of the the resources conference is ross beaty, chairman of equinox gold. good to have out the show. before we review the issues for the summit, let's look at gold prices up almost 30%. >> sure, it has been incredible. i just can't see anything that's going to change, though. all of the fundamentals that caused gold to have a fabulous year this year are still in tact. so, i just don't see things

changing. there is no particular reason why gold should go down. strong dollar. inflation outlook. dynamics gold supply position. it is all the bullish factors for gold are in tact. i expect another really good year in 2025 for gold. >> let's talk about the other side of the equation, however, when you think about gold equities and performance is different from gold prices. just explain to us why it you think this is the case and any changes we could actually see -- any chance, i should say, we should see a change in 2025? >> right. that's been the biggest puzzle for me. you have the fabulous upward movement in gold and flat or downward performance in the gold equities. this is the bizarre disconnect. i've been in this game for a long time. i've been running public companies for almost 40 years in the gold space.

2024 was a very weird year where you had almost no interest in the gold equities and fantastic bullish market in gold prices. this is unusually. it is either the gold prices go up or down. i don't see any reason why the gold price will decline and that means in 2025 we will have a great bull market in gold equities like my company. this will be across the board and start with the major companies and go down to the mid tiers and get down to the small companies struggling so hard to raise money in the brutal equity market within gold price environment that's record highs. it's a weird, strange situation and it will reverse in 2025. i think it will be a great year for gold equities. >> perhaps one of the stories that could change that is whether we see further consolidation in the sector. i would like to get your

thoughts office that trying to understand whether you, yourself, are on the hunt for anything on this stage to grow your business? >> sure. the gold business, the mining business is a quiztive business. they always go out of business. you either place your production. there is always m&a going on in the mining space whether it is gold or otherwise. there has been a pretty active year in 2024 in &a in the gold space. we acquired two companies. we built three mines. i expect we're going to keep doing that thing because it is a very scale counts. size really does matter in the mining business and especially in the gold business. we should continue to do that. we are trying to build on the

world stage. so far, we have done a pretty good job of that. >> is there anything in particular in areas you would like to progress with that or are you just generally keeping an eye on what's out in the market? >> no, we're always trying to improve. we're looking for value. we are looking for companies with great properties and low cash costs. we are trying to improve the value of the portfolio. we have seven mines in four countries. we're trying to make, if we do an acquisition, it is a mine that will improve our portfolio significantly. more free cash flow and more opportunity to grow with a sustainable business. >> looking at your latest results, a couple of analysts that i read commentary from were highlighting the latest performance was very much related to what they call unusual items. something that perhaps might not be as a certain for income going

forward. i would like to understand, perhaps, if you could give us more color in terms of the outlook for 2025 for your business here and whether you could also address concerns about the high levels of debt that your company has. >> oh, sure. we borrowed a ton to build our biggest mine. we spent $1.2 billion building a huge gold mine in ontario. it will be one of the biggest gold mines in canada. it is our flagship. it's in production now. it's a low cash cost mine. it will generate a tremendous amount of free cash flow and we will use that to pay down debt. we've already deleveraged this fourth quarter and we will continue to do that in 2025. that's going to be a springboard for a better equity performance going forward. it's a catalytic project for us. a catalytic mine. it's going to reposition us as nearly a 1 million gold producer

in 2025 and just as i said improve our cash costs and cash flow and reduce our debt. >> we shall keep a close eye on your upcoming results. ross n ross, in the meantime, i would like to ask about the broader geopolitical scene. we heard the president-elect announce tariffs on canada. there were also tariffs on steel and aluminum. i would like to understand how are you perhaps preparing for a more uncertain geopolitical world going forward and whether you are concerned whether you could be hit by some of the tariffs as well. >> no, we're not concerned at all. the gold industry is immune from tariffs. we can sell gold anywhere. it's a volume market. we don't have to worry about tariffs at all in our business. it's noise that we just are

completely unconcerned about. >> we'll keep a close eye on potential announcements well get from the president-elect. before i let you go, i would like your thoughts on some of the conversations you are having in london in terms of sustainability. this is the question mark for your industry. any deliverables from the conversations you are having here in london? >> it is not just here in london. this is just how you operate today. you look after your environment and you look after your community and your employees. if you do that, you have lower costs and a good run. it is good business. we have been doing this for decades. i would say investor attention in the area is more significant than it has ever been. certainly, we had a lot of questions of what we are doing and how we are looking after your water and land we are using

and how we are reclaiming it well. these are all important things. you know, the good companies, the successful companies and it is pretty much all companies in the public space scrutinized by investors. we are all doing a pretty good job looking after these things because it is good business. it's smart business. healthy environment, healthy employees, healthy ommunities. that's the answer to those questions. we give all examples to what we're doing. we publish our reports. we're transparent. these days with social media, you can't get caught doing anything wrong or bad. it's just so easy to be busted on those sort of things. you look after it from the board level down to the lowest level employee. everybody has to be focused on this stuff. we are and we do a good job at it and it's critical part of our business. >> interesting how you are

feeling the pressure from some social media comments. we'll leave the conversation there. that was ross beaty. i want to take you to how we're moving in terms of u.s. steel in pre-market trade. shares down almost 7% at this stage. this after we heard from the president-elect donald trump ready to talk about opposition of nippon steel. we are down almost 23%. of course, we will continue to monitor further comments from the president-elect whether that is on this front or a tariff front as well. there has been array of activity with the comments from the president-elect. and donald trump's policy actions are set to lead to more market uncertainty according to ubs. we have a chance to speak to

gerry fowler, head of ubs investment bank. we'll speak to him after this break.

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welcome to "street signs." i'm silvia amaro. here are your headlines. french yields trade to the highest premium to the german counterpart in 12 years as investors weigh michel barnier's chances of his budget through parliament with the no confidence vote on the cards as soon as tomorrow. the strong start with december with all majors in the green. crude prices push higher ahead of opec's meeting are

thursday as the aramco ceo strikes a bullish note to cnbc. >> based on the forecast we have seen, demand will expand driven by asia, india, china and other countries. we are looking at somewhere close to 1.5 million barrels of growth next year. and tesla shares fall in free market after the u.s. judge denies the decision of elon musk's the $56 billion pay package despite shareholders voting to reinstate it. time to get a check on how european equities are performing so far. it is such an interesting day when you think about the performance for european markets. we have the stoxx 600 up .6%. investors seem to be not really

focused on at least for now on the political uncertainty out of france. in terms of other market narratives we are monitoring, investors are also waiting for key economic data out of the united states throughout the week. we have jolts later today and then the all important jobs report on friday as well. in terms of the european bourses, this is the picture at this stage across the european continent. we continue to keep close eye on the cac 40 up .7%. yesterday, we finished the day in the green for the cac 40. marginally above the flat line. in terms of other bourses, we are also looking at green for the ftse 100 and the ftse mib, look at it, up almost 1.3%. i want to take you to some of the other stories we are monitoring this morning, including from the aramco ceo who has told cnbc he sees the demand expanding next year driven by asia. dan is joining us now from

riyadh. dan, you had the all important conversation. bring us up to speed what you heard from nassir. >> reporter: silvia, good morning to you. quite an important conversation happening here on the ground at the saudi green initiative. this event kicking off today. i had the opportunity to sit down with the ceo of aramco, the world's largest oil company. what was interesting here was he struck a really optimistic and even bullish tone on the outlook for on 2025. particularly from a demand perspective. that's eally critical as we come into the opec plus meeting on thursday. here's part of our exchange. listen in. >> based on the forecast that we are seeing demand will expand driven by asia, india, china and other countries. we see more in the liquid

chemical. aramco is investing almost 4 billion barrels of liquid chemical by 2050. a lot of it is upside. at the same time, fuel is picking up. if you look at the forecast for next year, we are looking at close to 1.5 million barrels of growth next year. >> reporter: aramco ceo speaking to me on stage here in riyadh. this was an important take away as i mentioned as we come into the opec plus meeting on thursday because what we see right now is a market still holding on to this 70 usd handle. the market that has really failed to launch despite geopolitical tensions we have seen and, of course, fresh stimulus from china as well. the policy is going to be to manage an increasingly volatile and bearish market right now.

the consensus view is this group will roll over the production curbs this week which would essentially bring them into 2025 with a fresh slate and fresh policy perspective moving forward. of course, what happens remains to be seen. i know what you're thinking as well. we are talking about the outlook for oil. hold short for a second. what we have spoken about on stage with nassir is the agreement from cop29. saudi arabia coming under a fair bit of pressure here for omitting wording around fossil fuels. this was a landmark agreement at cop28 in dubai. the suggestion is the saudis rallied and perhaps pressured other countries to get rid of those words in the final communique. what we have seen on the grounds here in the last few hours and in the conversations on stage here has been a really spirited defense of that strategy and at the same time, a big push from the saudis to try to champion

and really elevate some of the work they are doing in the climate atmosphere including nailing in on the agreement to reach net zero by 2050. sylv. >> thank you for the conversation. i'm sure we'll speak later on. let's get a check of what we heard from fed officials. yesterday, governor christopher waller expects the fed to cut for a third time in december, but warned on progress of tapping down inflation may be stalling. this after the cpi print showed an increase from the month prior. speaking at the forum in washington, waller said, quote, i feel like an mma fighter who keeps getting inflation in the chokehold and waiting for it to tap out and yet it keeps slipping out of my grasp. let measure you submission is

inevitable. some interesting rks there. i'm pleased to say gerry fowler is here with us this morning. good to have out the show. interesting comments from fed officials over the last 24 hours. i like to pick up our conversation on france. how are you looking at the performance in the cac 40? we're up this morning. we finished just above the flat line yesterday an might amid political uncertainty. >> we had conversations that the cac is resilient. actually, under the surface, the stocks exposed with the policy risk in france. banks and capital goods companies and utility companies are suffering and under performing the european market quite a lot. the cac itself is resilient. the big companies are global. this is more of a domestic issue for the moment.

>> we are more likely to see it on the bond market than the equity front. talk to us about how you are looking at 2025 broader european equity context. we keep hearing guests on the show saying when you think about u.s. and european equities, the performance is in the u.s. one yesterday told me we need to make europe interesting again. what are you thinking? >> the u.s. has out performed a lot throughout the year and since the election. there is definitely some risk priced into the european environment partly because of trump's election and partly because a second year of growth stagnation in europe. not just at the gdp level which is improving slightly, but earnings. earnings haven't grown in two years. you get a third year of stagnation. we say minus 5%. actually, it is not a great environment for a broad allocation into europe unless you start seeing policy momentum that supports growth. nonetheless, under the surface, there are plenty of opportunities.

>> tell us what kind. >> sure. the electrification theme say big one in europe. it's been going for two years. the capital goods companies are well valued. the growth in electrification spending goes through to the end of the decade. in in our view, that is nacent. they had bumpy years pre-covid and into covid. there is a lot of excess earnings that potentially need to be washed out from the high value sector. that value makes sense. also things like defense spending. it has been running two, two and a half years. it is not the actual wars under way, but nato spending commitments and defense companies generating a higher share of export markets with asian buyers in particular for example. we can get into sectors as well. there are opportunities.

>> comment on the defense aspect of it. is that a result of the u.s. election and what do you have a direct correlation? >> the defense spending section tore sector has surged 10% since the election. that is after a year of stagnation where the defense spending companies had been treading water after the performance the previous years. there is momentum coming back into the sector since trump has elected. these are things that supersede trump. nato spending going up. export market share. in terms of other sectors impacted by the u.s. politics. there are not many impacted favorably. we are more concerned of the sectors that might suffer. the banking sector is derated. it is partly because they might find it more competitive against the larger u.s. banks that experience deregulation. there is trade financing and he

merging markets and generally risk premium. as much as they are cheap with the high distributions, they are higher held. we have lower bond yields and credit spreads. the banks are the most vulnerable. >> i have so many questions for you. i'm trying to figure out which one to ask next. to finish on the sectors and you were highlighting banking there. we have an interesting story in european banking at this stage. is there, perhaps, you know, a pocket of hope for european banking in the near future given the consolidation we are seeing or attempt for the sector? >> there is. we did a big report that might have been entitled "making europe great again" based on what draghi said. that is to finish some of the plans that europe has been trying to work on for years. consolidated defense spending. renewable energy and energy policy is getting there.

banking union has been talked about for 15 years and we're not quite there. if the politics can push the button on banking union, it frees up capital for banks and improves the margins and finance growth in europe. that would be a big step forward. also more broadly, the draghi agenda could transform europe if it led to innovation. we have r yn &d winners in euro. there are not enough of them compared to the u.s. for the market to benefit. >> we will see whether they will deliver on the draghi report. it's very good to ave the measures on the table. it is also about implementation. i would also like to get your thoughts on the ecb and the forecasting for the next couple months because there was a question mark of the ecb cutting 50 basis points in december. that seems to be dissipating at this time. i would like to understand, you

know, how is the ecb going to picture all of this together and perhaps lower growth and more tariffs. what do you think is going to happen there? >> the trends are in place that the ecb is cutting. we're expecting more cuts at every meeting for the next few and eventually getting down to the 2% ecb deposit rate. that obviously has ications for the sectors that benefit from the raising interest rates and the financials more broadly. as we get those rate cuts, there will be some earnings momentum pressure although there is a decent amount of that in valuations already. there is a risk that the ecb might go further if the growth is downwardly revised as it has been since the second quarter. you need to keep an eye on that. our banking analysts say request the forecast is cut 2% and that is wrong and you go 1%, there is down side risk in the sectors here that the ecb might need

more than currently in the forecast >> interesting it was great to have you on the show thank you for your thoughts this morning. gerry fowler at ubs investment bank global debt rose around $12 trillion $12 trillion in the first three quarters of 2024 to nearly $323 trillion that's according to the latest numbers from the iif the rise in debt during the third quarter marked the third largest increase on record beaten only by the surges during the covid pandemic we had the chance to speak exclusively to the iif representative he said debt is likely to increase. >> there are no budget hawks in washington debt is going to go up running deficits close to 6% of gdp. $1.8 trillion last year. it will go up. we will see between $4 trillion

and $8 trillion. we are the worst violator of fiscal accountability. >> debt doesn't matter until it does it feels like we're seeing in france today, a coronation with no financing issues. you see heat in the bond market. there feels like so many imbeddedex-expenditures. how far is the u.s. from extra type of situation? >> if you look at government spending, mostly social insurance with the subsidiary. general government is 12%. the new doge commission by elon musk when you talk about the cutting -- >> in cash >> unless you deal with entitlements and social insurance, you're not. debt will continue to go up. coming up on the show, tesla

shares fall in pre-market after a report rejects a $56 billion pay package for the ceo elon musk we'll have more details after this break 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. we thought we had planned carefully for our retirement. but we quickly realized we needed a way to supplement our income. 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.

welcome back to "street signs. in another corporate story overnight, intel ceo pat gelsinger, has been forced out after board members made it clear that his plan to turn the company around wasn't working. that is according to a cnbc source pat gelsinger's retirement was announced on monday after four years at what was once the premier chip companies the cfo will take the reins

while the company searches for a replacement. the stock closed around .50% lower in monday trade putting its losses for the year at more than 50% you heard it right 50%. the chinese semiconductor names fell after the u.s. imposed restrictions on 140 companies in the third crackdown on the chip sector in as many years. the dutch chip maker asml, however, does not expect the new restrictions to impact its recent financial guidance saying long term industry scenarios are based on global demand the dutch government is studying the latest u.s. measures and shares concerns over the uncontrolled chip exports. asml shares are trading higher this morning after saying they confirmed that financial guidance. the chinese commerce

ministry announced its own export controls on a variety of chip related materials, including, i should say, aluminum set to come in effect today. tesla shares are lower in pre-market after the ev maker lost its second attempt to push through the $56 billion pay package for ceo elon musk despite shareholders backing the deal the court struck down the package for a second time with the judge ruling that the board had no procedural grounds for overturning the previous decision tesla has vowed to appeal the decision with musk calling the ruling absolute corruption on x. and stellantis searches for a north american regulations and

is looking for a new ceo according to reuters which says the board is considering external candidates. two have been appointed to the committee charged with finding a new ceo. to discuss the auto sector, i'm pleased to say tom at rbc capital markets is joining us today. good morning, good to have you on the show first, i would like to get your thoughts on stellantis explain how you were reading the announcement this week and how important is it? are you forecasting any sort of turn around for the company really >> yeah, it was quite a surprise there's nothing else to say besides that you know, he was expected to leave though, and retire, in 2026 potentially earlier than that, but certainly the timing of now

seems surprising obviously, there was a disagreement between him and the board regarding strategy that's what we understand. in regards to a turn around. what we have seen happening in prior examples of this is a new management comes in and resets expectations perhaps brings down expectations and in doing that, potentially lead to a recovery the big pain point is the north american dealer. just cutting production and maybe cutting pricing, although i don't think that's what they want to do that could be what happens with the new management team. we have seen in the past, the chairman of the board with ferrari, when they went through a similar ceo change, they actually were able to improve

the company. the stock is up 140% since that ceo change i don't know if that will happen here since it's a little bit of a different situation. that is what some people hope. we get a new management team and potentially set the company up for a better future. >> stellantis says they will have a new ceo in the first half of 2025. we are hearing potential names to take on that role i won if you are forecasting will get that announcement sooner than what they have initially indicated and whether that could actually help the share price performance? >> that's a good question. it's in their best interest to get a new management team in because in order to do this guidance, you know, for 2025, you need to have the new management team before the report fourth quarter results potentially. that's in february or march

timeframe. it would be inn elegant not to have a ceo and give guidance shortly after and change guidance i think it is in their best interest to get a new management team as soon as possible it does make sense they are naming names now this is probably something they've been thinking about, right? mr. tavares was going to retire in early '26 anyway. if that were to happen, that would be positive. investors really want to know where they're going to guide 2025 numbers are they going to quote/unquote, kitchen sink then we can better understand what the strategy is exactly. >> interesting tell us how you are rating stellantis amid its peers. there is the interim domestic story and at the same time with

the chinese petition and electrification. how do you rate stellantis >> the auto industry is very challenging. stellantis is no exception they have north american dealership inventory and co2 issues in europe next year to your point, chinese competition. challenges on multiple fronts. it is not just them. it is happening across the board. we rate them a sector perform. we really like only a few names in our coverage. we like general motors we actually like that's and we like ferrari those are the names most people have been interested in and we feel is somewhat safe to power through the challenges ahead, but it's going to be a tough going at stellantis. there's a lot of work to do. >> well, to perhaps explain to us whether there's any sort of company at this stage within the

sector where you see, perhaps, a little bit of protection from potential tariffs in the next white house with donald trump potentially announcing further tariffs on this sector any pockets of hope here >> yeah, i mean tariffs really hit almost everybody we've written it's worse for the german oems with the trade war with europe. again, mexico tariffs would be difficult for the .s. big three. rather than look at the tariffs, i look at what is more likely to happen i don't think the u.s. will put tariffs on mexico. it would -- it would be really problematic for the auto industry jobs would be impacted also, i don't know if the president-elect would want to create that level of inflation that early when he ran on the campaign of bringing down inflation. i just don't think the mexico

tariffs would happen because of that, we do like names like gm. we think their inventory is protected. they are not really exposed to europe which is a pain point and ferrari is immune to these things and we like tesla. >> i'm sure we'll have more to talk about, no doubt thank you for your time this morning. tom narayan at rbc capital markets. as we approach the end of the slow, how, here are the thr things we are watching out for today. jolts results due at 3:00 p.m. today. two fed members are speaking after christopher waller spoke on monday anticipating a rate cut in december. and elon musk has been rejected the $56 billion pay package. a final look at how european markets are trading so far

today. we are seeing green cross acrose board. the cac 40 up almost .7% over in italy, the market up 1.3% in terms of u.s. futures, this is how we are shaping up ahead of the open on wall street they suggest it could be a slightly positive day to the trading day, but marginal moves there. this after another strong performance on monday. the s&p and nasdaq with fresh record highs a question mark whether a center rally is here to stay. we'll find out however, that is it for today's show i'm silvia amaro "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. record watch stocks look to open at all-time highs and new key voting members from the fed about the central bank's next move. search at intel with pat gelsinger out as ceo plus, a judge throws out the massive pay package for elon musk once again. later, upheaval in the auto market and what mark ford says about the shift in the