and i did. ♪ welcome to "street signs" on this thursday morning. i'm silvia amaro with charlotte in paris. here are your headlines. france in turmoil as the vote of no confidence brings down the government making michel barnier the shortest serving prime minister in over 60 years. >> translator: there was no other solution than this one. once again, i regret this.

mr. barnier, all he had do was agree not to take it out on pensioners for this situation not to exist. shell and equinor agree to merge the gas operations being the biggest independent producers. we'll speak with camilla salthe. he final green light with vodafone and three. touting the merger benefits to cnbc. >> we see this as presenting the opportunity in the global network, but also to strengthen competition in the long term. >> the vodafone ceo margherita della joins us. and bitcoin tops $100,000

for the first time accelerating the post-election rally as president-elect trump taps paul at kins to chair the s.e.c. very good morning, everyone. there's a lot happening today on the corporate front, but we start with the political front. the french government has collapsed after prime minister michel barnier and his members were ousted in a no-confidence vote. this is the first time it has collapsed in this way since 1962. let's get a check on how french assets are moving as a result or off the back, i should say, of the latest political developments. we are seeing the cac 40 up more

than .50%. seeing that silience despite the turmoil. giving back some of the losses we have seen in recent times. actually, an interesting stat is when you look at the performance for the common currency between the last political instability back in june and now the currency is down 4%. of course, there are other dynamics here t. is important to keep in mind the context of france and briefly looking at the ten-year yield on the o.a.t. at this stage, moving down 2.98%. overall, the last couple days, we did see the spread between the ten-year o.a.t. and the bund widening. let's see where this could actually go in the coming days as the political instability drags on.

president macron must appoint a new prime minister is set to address the nation in the televised speech tonight. meanwhile, the national rally leader, marine le pen, told the french broadcaster she had no choice. >> translator: we sensed the government to protect french people. there was no other solution. mr. barnier could have just decided to index pensions on inflation and not hit pensioners for this situation not to happen. >> we got a number of reactions to the no-confidence vote for the future of french politics as well as wider economy. take a listen. >> today, like mr. macron said on wednesday, our economy is strong and it's normal in the parliamentary regime you have a chance this can happen. i'm not worried about it. i know the left gets in office and everything will be fine.

i mean, we are responsible persons. i'm not really concerned. i think we can handle. >> it is another debt lock situation just as we had in june after the snap election a split landscape and parliament. barnier is a scapegoat of the parliament. it's going to be very difficult for macron to support somebody to come up with somebody who is able to manage this difficult situation. >> what probably reassures markets to some extent right now is there is not going to be anything like a government shutdown in france. the parties which voted against the government said they would vote for the special rule that will normally allow us to rollover the budget for next year. there is no immediate threat, i would say. there is no really questions

about france's debt uss sdan sustainability. there is an issue of the quality of bonds france will have in the years ahead. >> charlotte joins us now live interest from paris. i guess all eyes on president macron. >> reporter: yes, we know michel barnier is on the way to tender the letter of resignation of his government. that would be the time for president macron to pick his successor. that would be the fourth prime minister under macron this year. a bit instability. opening the door to the unknown to french politics. i'm joined by the special guest who say member of parliament for president macron. we had a guest a little bit earlier joining us that said barnier was a scapegoat of the parliament. is that the case? who can macron name to actually

be prime minister and manage the situation? >> first of all, good morning. thank you for having me. i don't think he was a scapegoat. everyone is trying to find excuses for what happened. you have to understand yesterday the mps had the choice to censure the government with the no-confidence vote. i disagreed with that budget and disagreements with the government. i do feel for our country, we needed a budget and needed to move forward and stability. you said it was an understatement. we are in a period of instability. i do think it is up to the mps to take the responsibilities. >> it is an extremely fragmented party. three blocs that don't agree. that is because it was a snap election over the summer called by president macron. was that a mistake? >> everyone is asking that question and i see why it's coming. the truth is we had a huge

participation and the citizen decided to give the national assembly. in reality, you have groups and 11 different parties in the national assembly as you know. they have different views where the solutions should be. the problem is you have two extreme parties, the far left and the far right. they're dragging the other parties in the chaos which only benefits marine le pen. >> in the compromise and coalition with the different parties, i guess the snap election was a test given the voit of no-confidence vote yesterday. the parties are not able to do the compromise. >> we are learning the hard way, that's for sure and it's taking time. obviously this was a failure. you do learn from your failures. right now, some parties continue to believe in a political opposition for the sake of it.

now understand the gravity and consequences of their actions. i hope they come to their senses. they did it six months ago and now they see what they brought into the institution for france, i hope they will be more reasonable now. >> in the background, of course, was the budget for next year. in the final days, there was a lot of concessions, particularly toward the far right and the far right having some red lines. was it a mistake from the prime minister to try to appease the far right this much and was it played in the end or not always play ball? >> it is difficult to rewrite the story now we know the end. i, for one thing, never trusted the far right and always fought against them and their ideas because i think they are really bad for our country. the idea on nationality and immigration, i could continue for hours, i would never have done so. he was talked into the parliament with the left being

completely unwilling to discuss. he actually went to see the socialist party and even asked them to join his government and they said no. that's where i say this is a gloomy day and situation, i do believe there's some hope because now they understand they can just stick to their various stubborn position. >> some members try to tackle the deficit in the country of 6% this year and try to bring down to 5%. a lot of people are pointing at the figure of macron being responsible for the state of the public finances. there's been some crisis with the war in ukraine and pandemic, but were there mistakes made with the handling of the parliament finances from president macron? >> of course there could have been things done differently and led to different results. yesterday, during the budget discussions, these parties are now criticizing or proposing hundreds of thousands of amendments to the budget

creating more expense difficult tur s. it is easy to escape responsibility. they voted the censureship and they are responsible for france not having a budget. >> tonight, the president is addressing the nation. what does the current instability mean for his legacy? what can he say? some parties are calling for him to step down. what can he tell the nation tonight to appease the situation? >> as i said, this calls for a stepdown of the president when it is absolutely not seen in the constitution or in our law. actually hows the real reason we're here now. as you know, marine le pen has procedure. she had played the card of the reasonable and responsible, whatever it is, to try to have french people vote for her inspite of her ideas. she is now playing the last card she has to be able to be in

presidential election. he has been a candidate for several years and hoping to be in front of le pen. this is why they are calling for presidential elections. that would be a disaster for france. >> a member for the parliament. thank you for the time in these busy days. >> thank you. >> reporter: we have to wait and see the next prime minister and who president macron will pick as prime minister. it could happen as soon as today. we will wait and see. things remain difficult because the parliament remains as fragmented and as difficult, of course, to negotiate and bring up reforms particularly with the public finance issues. >> exactly. thanks for that, charlotte. i would like to zoom out and look at what is ppening with the equity session. as we await to hear from president macron, there is a little bit of caution, really, trying to understand who is

going to be the next prime minister, i should say. looking at the stoxx 600, we are seeing a little bit of green this morning. we have the benchmark up .3%. so far, this has been quite a good week and month so far for european equities. to give you a look, the stoxx 600 is up 1.5%. let's see how we'll trade also tomorrow. thus far, there is, indeed, a little bit of upside for european equities. let me take you to the different bourses to give you have an idea of what is happening across the continent. looking at the cac 40 amid the political tur moilturmoil, cac up .50%. continuing the resilience we have seen so far this week. we also know the majority of cac 40 companies are focused outside of the french company. perhaps a little bit less exposed to the domestic scene. an important part to monitor.

over in italy, we are seeing a little bit more of the upside with the ftse mib up .7%. this is what we have at this stage. travel and leisure up almost 1.5%. also a lot of upside for banks, autos and tech. tech was always actually, i should mention this, the best performing sector on wall street. so that momentum continuing in europe this morning. just briefly looking at the worst performing sector so far in today's session. real estate down .4%. industrials also tracking lower. i want to take you to other political developments also on the minds of investors. south korea will vote on impeachment on yoon suk yeol after yoon imposed martial law. cherry filed this report.

>> reporter: the aftermath is a complicated one. south korean president yoon suk yeol is facing an impeachment vote this saturday after the botched martial law declaration. opposition parties are looking bolstered by the recent development and voted to impeach the president accusing him of treason. they do have the majority of the national assembly, but they still need eight ruling party lawmakers to vote for the impeachment. this is where things get a little tricky because the ruling party, for now, their stance is to avoid impeachment for the president. three possible scenarios. one, the impeachment vote goes through. in that case, the constitutional court has six months to review it. two, the president steps down voluntarily. in those two cases, we will have a snap election likely in the first half of next year or the

president could stay defiant and continue to hold office through march of 2027. in the meantime, we have south korean financial authorities scrambling to breathe a sense of stabilization into the markets. bank of korea governor held a press conference this morning saying these are political events separate from economic dynamics of south korea. i'm chery kang, cnbc, seoul. coming up on the show, equinor and shell agree of the gas and oil buys siness tie you. we are joined by camilla salthe after this break. stay tuned.

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welcome back to the show. now crude prices are treading water ahead of the opec decision after sinking 2% on wednesday's trade. the group is expected to extend the latest round of production cuts by at least three months from january. let's get a check of how we are faring on oil prices. wti is slightly higher by .3% at $68 a barrel. then brent also up similar level at $72 a barrel. in other stories within the sector, jeffries has called for the overall of rio tinto. the miner should consider corporate structure considering a break up saying that model is bad for its valuation.

this after activist investors called for rio to scrap the london primary listing yesterday. we discussed that story on "street signs" yesterday's. rio tinto shares are lower. let's see whether the company will come up with a new plan and new strategy amid the calls from active investors, but also at the same time, from the investment ms highlighting the issues that rio tinto is facing and let's see whether the company will go down that road. in terms of airline sector, airbus announced just over 2,000 defense and space job cuts as the group faces tough u.s. competition, particularly in the satellite sector. the job reductions are expected to be implemented by mid 2026 with germany set to see the largest share of cuts. let me take you to one of

the most important corporate stories this morning. equinor and shell agreed to merge the oil and gas assets to create a new company with each of the oil majors owning a 50% stake in the venture. the two companies say the combination will create the largest oil and gas producer in the uk north sea. i'm pleased to say camilla salthe is joining us today. camilla, we appreciate you joining us on a busy day. first and foremost, i would like you to walk us through the rationale through the announcement today. >> thanks, silvia. it's nice to be here. the reason we are doing this, to create the company, 50/50 with shell and eqinor, we believe in the portfolios because they will be much stronger. we can actually really develop the processes and improve the

margins and actually have a long-term value creation from the assets. that is the key business rationale for doing this. >> in the statement, both companies are saying that the future, the new company, will be more agile and focused and cost competitive. i would like to understand whether this is meaning you will be announcing job cuts. >> in all our transaction, we always put the people at the front of the transactions and we have not planned any redundancies related to the transaction. >> good to get the clarification on that as well. i would like to understand any changes from the political scene have propelled or impacted the decision you announced today. we have the new labour government with the oil and gas initiatives. is that the reason behind this

deal? >> no, that was not the reason. the reason is we wanted to build something that was stronger when we combine them. that is the rationale to do this. really strengthen the companies together and really develop knows a way that we can actually create long-term value creation for our companies and for the uk. >> going forward, does this mean -- what does this mean for equinor's cap ex going forward? any changes there? >> you know, i have been in the uk for more than 40 years and we have been developing oil and gas for the good supply for many years. we have developed through a new business and we have pioneered the long solutions. equinor is in a good position going forward. by doing this, we optimize oil and gas in the uk and, of course, building a new company and making a new company. this will be outside of equinor

and the confidence we have. >> what are the implications here in terms of esg? do you have to rethink or rechange some of the strategy here? >> i think when it comes to those things, we need to understand that better when we make the company and how we look into that. of course, we have a strong focus on that and we will build on the values we have from the company. it is up to the new company also to set those targets. so, this will kind of be operated by quinor with the non-operated assets. of course, we work closely with our partners and all assets to improve the footprint. >> in terms of what this means for equinor at this stage, should the investors expect further deals of this size? what are you planning in terms of potential consolidation going

forward? >> good question. i'll speak on the business development externally. >> same n i'm frayed we afraid to leave the conversation there. that was the head of equinor. and the new york times deal book summit as leaders look to the president-elect's return to the white house. >> here's what we don't know about tariffs. we don't know how big they'll be. we don't know the timing or did your duration. we don't know how that will play into prices. what will be the transmission into prices. we don't know how the people or the economy will react to that. we don't know whether other

countries will retaliate. we can't really tart making policy on that. we have to let this play out. >> there is no doubt the world looks to america for leadership. although we may do things such as threaten mexico or canada with tariffs, that is small ball. when we tell hamas release the hostages by the start of the presidency, that resonate with the world. >> you can talk about a 60% tariff on china, but is it going to be 60% or is that threatened and negotiated? is it on all products or some products? last time, iphone wasn't tariffed. it is met with retaliation? it is hard to make any calls on where or how policy will effect the economy and how monetary

policy needs to respond. coming up on the show, breaking news. the vodafone ceo joins us after the uk competition watch dog approved. the ceo joins us after this break.

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new customer offer in bonus bets when you sign up now. betmgm. download and bet today. welcome to "street signs." i'm silvia amaro and here are your headlines this morning. france plunges into political turmoil as the no-confidence vote for michel barnier. >> translator: there was no other solution than this one. once again, i regret this. mr. barnier, all he had to do

was agree not to index pensions for inflation and not take it out on pensioners for this situation not to exist. shell and equinor merge. camilla salthe says the deal is good for the country. >> that is the rationale for doing this. the two together to really develop those in the way we can actually create long-term value creation for our companies, but also for the uk. the cma gives the final green light with the tieup with vodafone and three creating the largest mobile operator. the regulators chair ting the benefits to cnbc. >> we see the merger as presenting to upgrade more networks and also strength even

competition. >> the vodafone ceo joins us on cnbc in a couple moments. and bitcoin tops $100,000 for the first time as the post-election rally and president-elect trump taps paul atkins at chair of the s.e.c. welcome back to the show. now the uk prime minister keir starmer is expected to meet six milestones by next election in a speech due today. starmer's goals are to raise living standards and cut hospital waiting lists and build 1.5 million new homes. some uk equities we're keeping an eye on this morning include ds smith including a 58% slump.

in addition, watches of switzerland kept full-year guidance and changed pre-tax profit of 41 million pounds in the irst half. and frasers shares have been cut citing weaker consumer confidence. the latest budget is a kick in the face adding trading conditions have been a lot tougher in the aftermath. let's get a check of how uk equities are performing. the ftse 100 at this stage is marginally positive, really, when you think about the other bourses. mid 250 is marginally lower. we are seeing flattish moves. let's see what the outlook is here because companies seem to be die gesting the latest budge

announcements by the government. we are seeing a lot of activity on the corporate front. let's discuss that with the competition watch dog dog with vodafone and three. this is the biggest mobile operator and reduce a number of networks from four to three. speaking to cnbc, the cma chair said there was one key reason why the watch dog approved this deal. >> the investment is very important, but not solely about investment. what we are particularly concerned about the impact of competition and impact on consumers. the network integration and upgrade program that the companies are proposing in our estimation, this is supported by the analysis provided to us during the course of the inquiry which will lead to significant improvements in mobile networks

in the uk. partly because of the investment, but also because of the stimulus effect it will have on competition. we see this merger as presenting the opportunity with forced upgrade of networks and strengthen competition in the long term. >> margherita della is joining us as well as arjun. we appreciate the time on the back of the important announcement. perhaps highlight what are the next steps here. >> first of all, let me say this announcement is really great news for the uk. you have just heard it, but the cma has given us the green light to create the new force in the uk telecoms. this will drive more competition and more investment. for us, we are committing to 11

billion pounds investment program that will give the uk the biggest, the best network. this will benefit consumers and businesses up and down the country and will finally give the uk the digital infrastructure that it truly deserves. today's milestone moment in the process, it comes at the end of 18 months of intense reviews and total scrutiny by the cma. we are now moving to the final phase which is next 12 weeks for going through the final leg elements of process with the cma and our partners and we expect full completion in the first half of 2025. >> can i ask a few more specification about the deal? one of the conditions of the cma is you building out in the combined entity building out the new 5g infrastructure in the uk. you previously said as part of the deal you would invest 11

billion pounds in the telecommunications infrastructure in the uk. can you give us an idea how you are planning to pay for this? >> the whole rationale for the deal was to drive scale that would unlock capital investment. we said from the outset in terms of funding, this combination and this investment plan would create no necessity for public funding and most importantly no necessity for additional cost for our customers. the logic of the deal, the rationale of the deal, is to gain network scale and true scale would get the efficiencies and returns that allow us to build this best network. >> in terms of the capital requirements, of course, this is a capital intensive project, where do you expect that to come from?

i know one of the things you have been doing recently is selling the stakes in the company. you have advantage and towers. is that a partnership you will continue to pursue? >> let me be really clear on this point because i said last year when i became ceo that free markets in europe for vodafone needed intervention precisely because of the need for scale to drive growth. we are now effectively reaching the final steps of this reshaping of vodafone in europe. we have, as you know, completed the sale of spain. we are in the final weeks for the sale of italy and we are now doubling down in our home market of the uk. from the balance sheet perspective, we have also reshaped the group balance sheet with the target leverage which is very healthy and, therefore,

we don't have any need as such, except just move forward without organic strategy. >> i'm just going to cut to the chase here because when you think about how consumers are digesting the news this morning, many people will be thinking whether they will face higher bills going forward. can you address those concerns? >> yes, i mean, very simply put, the uk is the most competitive mobile markets. there are ten brands competing for customers. none of that is going to change. what is going to change is these brands will now be able to rely on much better infrastructure as we move the uk, let's face it, a position of laggard in terms of digital infrastructure within europe with the best in class 5g

network. the rationale was to get to invest. it doesn't change our pricing strategies because of the merger. >> i want to ask about growth. you mentioned lots of smaller players who are offering very competitive deals. the industry thought at one point 5g was its savior. now the prices for tariffs for consumers are competitive and the telcos are struggling to make money off 5g. what will reignite growth at vodafone? >> infrastructure scale is of the essence in high capital intensive business as telecos. over the years, too much fragmentation has been driven in the infrastructure of our businesses. we are, today, the most capital intensive industry in europe

with a deal with the lowest return as a result of years of fragmentation. once again for vodafone, we have taken this matter in our own hands and with the reshape of europe, we will operate in markets which are all growth market from the telecommunication industry more broadly and where we will have the scale to drive returns on our investments and growth. >> i would like to get your thoughts more broadly on the sector. i would like to understand whether the process that you just started to some extent, whether you hope to serve inspiration for the telecommunications across the continent? >> it's a very good question. i think that the decision of the cma sets potentially a strong precedent for what we have just been discussing and the need for scale. you heard the cma this morning making a clear link and very

important link between more investment and more competition. this is the essential link that needs to be understood across europe in terms of shaping the rules of the future. i think we have seen some early steps in this direction where for example, the mario draghi report was advocating the need for more investment in infrastructure and more investment in telecoms. it is important we step back from some old fashioned rules of the world and think that actually investment drives coming petition because as the uk will see, there will be more competition on inn vestment itsf for the quality for customers and with investment comes capacity that is in itself favorable to retake competition. a healthy dynamic to shift

europe away from the current position. >> we'll see what policymakers might do. in the meantime, we appreciate your time off the back of the breaking news. margherita della vella and arjun kharpal. coming up on the show, jay powell speaks out about the u.s. economy. we'll bring you his comments after this break. for nearly 200 years, big beverage companies have been selling us billions of single-use sugary drinks. using the same old one size fits all playbook. think about it, we've seen technological advancements in every other aspect of our lives. but the beverage industry

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welcome back to the show. now bitcoin has passed $100,000 for the first time after more than doubling since donald trump secured the victory in the november presidential election. the incoming president is seen as a bull for the sector touting

crypto throughout his campaign. meanwhile, jay powell compared bitcoin to gold on wednesday and said it is not a competitor for the dollar. in the economic data front, private payrolls grew 146,000 according to adp. that is below expectations. wage growth reported at 4.8%. the first acceleration in more than two years. we'll get the latest non-farm payrolls print out from the united states tomorrow. the headline figure is expected to rise 200,000 according to lseg after the strike at boeing hit october's print. staying with this theme of the chair of jay powell sat down with cnbc's andrew ross sorkin at the deal book summit and weighed in on recent economic data. >> the economy is strong and it's stronger than we thought it was going to be in september. so, the labor market is better and the down side risks appear

to be less than the labor market. growth is stronger than we thought and inflation is coming in a little igher. the good news is we can afford to be a little more cautious as we -- as we try to find neutral. >> and dan is joining us live now from the milken p conferenc. dan. >> reporter: silvia, we have been having conversations with a number of leaders on the ground here and government executives as well. i just wrapped up the conversation with the trade mentor.inute minister. i asked him how much of what has been announced will actually be put into practice. let's listen in. >> pretty strong use of tariffs as a tool. the u.s. needs to bargain with or alternatively shield their economy. of course, a lot of people will

speculate what the economic impact of that is going to be. it is a quasi taxation on consumers, is it pro inflationary? probably. we have to see how it plays out. ultimately, the deals that are done. >> focus in on president trump using tariffs. what investors want to know is how much of the policy threat is going to be put into practice? you have been someone in the room. do you think president-elect trump will do what he announced with tariffs? >> i can say with firsthand experience, every negotiations with the trump administration is fraught. australia really had to go to bat for a number ever months to get exemptions on the steel and aluminum tariffs. trump will be strong again on a lot of the same issues that the territory we fought on

previously. when it comes to capital, you look at the way supply chains are reshaped and the way in which tariffs are going to affect the market, you can expect there to be quite a lot of dislocation, i think, overcoming years. >> reporter: australia's former trade minister weighing in at the summit here in abu dhabi on the impact of the trump tariffs. silvia, back to you. >> thanks, dan. in the meantime, i want to take the audience to the u.s. futures and how they will open later on today on wall street. at this stage, marginal moves to the down side. however, this comes after another strong session on wednesday with the dow, s&p and nasdaq hitting fresh record highs. in order to discuss this, i'm pleased to say fidelity's global head of market strategy is joining us today. that's a long title. i would like to get your

thoughts, first and foe mostremn the u.s. growth with the new president about to arrive at the white house and focused position on the united states. can that grow materially over the coming years and offset the fiscal pressures? >> sure, the financial pressures are a significant one. if you look at the cbo elections re-election, they were 6% fiscal deficit for the next ten years. given the policy metrics or policy proposals which the incoming administration is talking about and you have unified congress, that can go up 8%. that is a business asic expansip of the strong economy. for 2025, we think inflation can certainly be an outcome if the

tariffs policy is more moderate than the metric has been. >> right. let's talk about the fed because the recent comments from fed official has been vague saying we'll keep an open mind. chances of a cut are still quite high. why do you think they are providing us with the vague message at this moment? >> i think if you look at the trade policy in the u.s. and fiscal policy in the u.s., it has shot up until the time the new administration comes in and clarity starts to come into play. that will have a meaningful impact on monetary policy trajectory. i think it makes sense to hedge your bets right now because the economy is strong as chair powell said yesterday. then wait for the big policy announcements on the fiscal and trade side to come in play before you calibrate the next cycle. >> interesting. i would also like to get your

thoughts on the chances of tariffs. yesterday we heard from jay powell, he said we can't factor in what we don't know. how much or retaliation and some on. when you look at the importance of mexico, for the u.s. consumer, is there a risk here that we'll be seeing the u.s. importing inflation going forward? >> i think tariffs, by construct, can potentially give a price level shift up for the u.s. because that's the entity, if you will, applying those taxes, if you will. i think whether they turn into a more significant inflationary force depends on a number of factors and one of those important factors is how the fed will respond to it. so, i'm not surprised that chair powell is talk about that rhetoric and calibrated. monetary policy will have to wait in this case for specific details and implementation to come through. you can jump the gun that

doesn't pan out. >> that's talk asset allocation. given all of the dynamics, tariffs and fed and new president. what are your top convictions for next year? >> we think nominal gdp will get a boost in the u.s. however, the risk profile around the base case is different from a year ago. now we have to be concerned with a stagflation scenario. for the recession to happen, the fed will have to become very hawkish. we don't see that happening until later in 2025 with more clarity. the risk profiles are more focused on inflation once again after talking about the labor market for the better part of 18 months. >> what sectors would you highlight as potential gains for investors here? i was reading how u.s. financials were looking quite attractive. do you share that opinion? >> definitely u.s. financials and tech is going through the

earning cycle. as long as that remains undisturbed, they are highlighting the stability of the announcements is very high. it is nothing to do with macro. the financial side, i think, as you rightly pointed out, is another one we are focused on. we are also holding energy as a hedge because there are interests in the set up. it's a cheap hedge right now if you are long risk. especially u.s. risk. so, certainly energy i want to flag as a hedging opportunity in the environment. >> i would also like to talk credit for a moment. spreads are looking interesting in some parts. i would like to understand if you see any areas within the space that offer a couple of gains really. >> you said spreads are very tight. oil yields are very attractive. let's see. it's a very close call if you get a december cut or not.

if anything, yields or the short-term rates are likely to bottom out at around 4%. you will still get quite a bit of oil and yields. the areas we are focused on are within financials lagging on a relative basis from other sectors. there are some pockets there. some european credit there with the oil being an interesting opportunity. everything, you know, melts down, which is not our view. there is some better spread there available in europe. >> any you would highlight in particular? >> i think financials again because it has been a decoupling with the u.s. and european financials. european banks are in much better shape now. that is more are we there really or absolute from an absolute view on the credit side at the moment. >> one, of course, one of the

tools we are discussing is bonds. we will leave that for another day. as we head toward the end of the show, here are the four things to get you up to speed. we get initial jobless claims. we hear from fed's tom barkin after jay powell said he not worried about the fed losing independence under trump. oil prices plunge after the opec is meeting. and bitcoin is in focus after the crypto currency crossed $100,000 mark with donald trump tapping paul atkins as the next s.e.c. chair. before we let you go, a quick look at european markets. they are trading higher today. we have the cac 40 up .22%.

ignoring the political turmoil. the ftse mib up .7%. here in the uk, more flattish moves in the ftse 100 despite the corporate activity we have seen today. in terms of u.s. futures, this show we are shaping up ahead of the open on wall street. this suggests a mild trading day over there despite the economic activity. we are going to see economic data we are going to see. nonetheless, i would highlight tomorrow is a very important day for you across the u.s. assets really with the jobs report due as well. however, 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." the dow closed bove 45,000 for the first time ever. jay powell hints at the fed's next move. >> the good news is we can afford to be more cautious as we try to find neutral. bitcoin making history breaking past $100,000 for the first time ever. doge to d.c. elon musk