he carries around in that box. [music playing] ♪ ♪ very good morning, everyone. welcome to "street signs." i'm sylvia mardo here are your headlines. investors brace for november jobs report with european stoxx sitting in a holding pattern at the close of another strong week for equity dial a deal. direct line shoots to the top of the stock 600 as it reaches a preliminary agreement with aviva on the terms of a takeover, giving its rival until christmas

day to make a firm offer the french president, emmanuel macron, digs in amidst calls to step down while hitting at the left and right for toppling the government. >> translator: the mandate you have democratically given me is a five-year mandate and i will exercise it until it is ended. opec opts to wait and see as concerns over u.s. output linger ♪ ♪ very good morning, everyone. happy friday we start today's show looking at what is happening at the moment in terms of equity trade across the european continent we also will look how we fared so far this week let's start with how we're moving so far this morning

we have the stoxx6 marginally positive we will get a better picture what is happening across europe. looking at the cac qarante up half a percent i want to take you to the performance week today it is friday it is also is a good moment to understand what has been happening in the equity space. looking, for instance, at 100, we are on track to finish making a positive note. it is a case across all of the major markets. i want the dig deeper into the french market. we are on track to see a performance up about 2.3 presidential, and this highlights how investors have

been to some extent shrugging off what's been happening on the political front. equity investors that is because there have been some moves when you think about the bond market. so far though, it has been a good week for european equities and a good start to this december month in terms of u.s. futures, let me also show you how we are likely to open in a couple of hours time this could be a flat start to trading day this friday. this naturally because investors are basically waiting for that all-important jobs report. that could spark a little bit more of direction for u.s. equities but let's see how they have performed so far this week it has been, you know, the bullish we have seen recently in terms of u.s. equities seems to continue looking at the s&p and the nasdaq, the nasdaq at this stage seems to be on track to end the week up about 2.5% we're only seeing a little bit of the negative sentiment there for the dow. let's see how we will end up no doubt that when it comes

today's jobs report, that could actually be the market event of this week and could ultimately change these figures that when are looking at at the moment speaking of the jobs report, the u.s. non-farms payrolls are expected to increase by 214,000 in november. that would mark a significant rise from october's figure of just 12,000. the unemployment rate is set to tick slightly higher to 4.2% average hourly wages seen rising 0.3% let's see what will be the final figures, but no doubt an important day for investors today. and you know to discuss what to expect i'm pleased with us today ben richie, the head of developed market at aberdeen good morning >> good morning. >> i would like to understand first and foremost if we look at what is happening in the u.s. equities space, how important is today's job report and ultimately is it likely to

continue the rally, what do you think? >> i think the jobs report will be quite well. there's a lot of variables we have the storm impact, the boeing strike impact, so i think the number could come out very wide i don't think people will be focus onned. focused on it. i think this will be the cocktail people are looking for. >> it is interesting when you say it because when you think about what we heard from fed officials so far this week, their message is vague, one suggesting we need to keep an open mind in terms of what we're going to do next what do you think will determine those decisions when the fed gathers later this month if it is not so much the jobs report today? >> i think they will be looking at what government policies will be coming down the track and i think they're wise to be honest to say, i don't norfolk know, b don't think the president-to-be

doesn't exactly know there are quite a lot of variables sitting there, so i think we will see the fed move cautiously from here and wait and see what happens from a government policy perspective. >> i would like to pick up on a couple of notes you sent to us you believe technology leaders of the feet are likely to come from down the market cap spectrum i would like to pick up on that point and just understand where, where do you think this is going to come from >> we think there will be a broader range of performance in 2025 if you look at earnings delivery during this year and going back to '23, a margin of out performance in the magnificent six, magnificent seven to 30%, 40% versus the rest of the market looking into 2025, the premium versus the market 4% to 5% versus other technology stocks with more or less the same earnings growth expected next year we think we will see a broadening of the opportunities within the space still bullish on the growth potential and excited about the opportunities in the mid and

small cap space, getting into the undercovered areas in the market and we have seen a rally in that space since the election again, the other angle, looking to find plays around the technology spaces that have been strong so far. >> it is interesting but i would like to bring your attention now back to europe because there were interesting points there you are saying you believe europe is set to out perform tell us versus what, how >> well, i think europe has been set to out perform for about 20 years, right, and it hasn't really - >> exactly >> ant d it hasn't really done that looking into next year, the prospects are okay, but ever for europe it is about the stock there's a meta overview argument for europe we think at the company level there remains some attractive opportunities with the potential to deliver as good returns as you can find anywhere else in the world. looking at the european

allocation with import failures, we expect that piece to do as well if you put money into but you have to be selective >> where do you think the opportunities are? >> again, i think it is probably not completely dissimilar, we continue to think technology looks good europe is overweight on software we have been in the capex restrictions, companies have been cautious in spending. sage, sap continues to do quite well those would be the places. in semiconductor spaces, but perhaps more nearby companies like bessie which provide packaging services to help put more processing power into micro chips and those we continue to see looking pretty good. you have to be selective but we see good opportunities and we see a rebound coming through in software which will be more positive for european stocks >> before we get there, i would like to clarify your thoughts on european banking names because obviously we're at a point where the ecb is continuing lowering

interest rate, but at the same time we are seeing more of an interest in terms of consolidation for this sector. what is the outlook? is perhaps more consolidation going to support european banking names or is more pressure coming from having lower rates? >> it is going to be more selective. looking at that sector valuations will be low, which is supportive, but differentiation in terms of delivery typically they do trade on earnings momentum and you have seen a variance in terms of delivery over the last couple of years. everyone benefited from higher rates but some areas benefited more, particularly the southern european banks and those perceived to have less political risk exposure. we would continue to think italy and spain look pretty good in european, and probably against what will be a lower interest rate environment next year >> let's talk mining

you say it is an exciting opportunity in future minerals and so on. outline for us the outlook, why you think there's an opportunity and give us your thoughts also on real changes specifically if you can given we're heard the comment from an activist investor suggesting they should delist from london >> i'm cynical about whether or not your listing domicile is going to make that much difference if you think about global capital flows, is it really the case investors have not noticed a particular company in a particular market should trade much list than if it was listed in another market? i'm not sure if that's the case. multiple differentiation is coming because companies are not as good as companies in other markets, that's the driver i would be cautious. i know there are issues around

markets. but, don see 't see it as a pan. you have to think long term. if you think about net zero decarbonization, electrification, those have been elements pushed through the side as we moved through the year, particularly with the result in the u.s. election, with the recessionary environment we've seen in china. it has been quite a tough environment for minerals prices and we have seen weak commodities in that space and we think that given the longer term structural drivers are still intact and we see demand in areas like copper, we think the pull back from $10,000, down to around 9% is an interesting opportunity. and we see more demand in the midterm than we see supply >> when it comes to mining i have a question as to whether geopolitics hinder or support the outlook here these are very important components everyone seems to want to have their hands on this, hence the

strong demand. at the same time what if we see tariffs hitting parts of this market how do you look at how geopolitics are playing a roll here >> i think the politics sits at the asset level for companies. >> okay. >> i think owning assets in markets where you are more comfortable in the political risks that you face, perhaps it is additional taxation, maybe it is labor relations, maybe it is the ability to be able to operate and supply the mining sites will be important. but, again, we see quite a lot of stocks that have some really priek assets that will be, you know, well positioned were the geopolitics were a little bit less >> we will see appreciate your time thank you for sharing your shots for us that is ben richie, head of developed markets at aberdeen. coming up on the show, a sure thing, direct line gives aviva until christmas to make a firm offer in progress of takeover costs we will bring you the latest after the break. macron digs in as polls show

the public wants an early presidential vote following the collapse of the french government we will have more after this break.

♪ ♪ welcome back to the show time now for some corporate stories that we're monitoring this morning starting with aviva and direct line. they have now reached a pr a potential takeover, in aviva would value the direct line at 3.6 billion pounds this move comes after direct line rejected another bid last week which valued it around 250 pences per share achieve awe has until 5:00 a.m. on christmas day to make a firm offer or walk away a time pressure for aviva. in the meantime i want to take

you to house builders. we have looked at economic data out of the united kingdom. they rose 1.3% over the month. the report also forecast prices to rise again in 2025, but at a slower rate. just taking a quick look at some of the real estate names here in the uk, berkeley is the only one trading lower, looking at persimmon, land secs and taylor, marginally above the line for the time bing. airbus posted a brief recovery after a downturn this summer the aircraft maker said it will push ahead with its plans to cut 5% of the workforce at its defense and space division you have at the moment shares of airbus on your screen, trading higher by almost 1.5%.

and in the auto space, volkswagen workers will step up on monday for talks between the car workers and the union. a four-hour strike is set to take place at nine different factories in germany vw and labor representatives are locked in on standoff over cost-cutting measures and proposals to close factories in germany for first time let's get a check on how automakers have traded so far this week. so far though it seems to be quite a positive one for european auto names despite all of the pressures in the sector so i want to discuss the outlook in more detail with my next guest. i'm pleased to say the head of european automotive research at bank of america is with us this morning. good to have you on the show >> good morning. >> let's start with vw i would like to understand whether you are anticipating a compromise in the near future

and what is the outlook specifically for vw? >> yeah, i mean volkswagen is in germany which has structural problems we have too high wage costs. i think something like at volkswagen 50 to 60 euros per hour the european average is 32 euros per hour in eastern europe it is 10 euros per hour the labor costs -- not labor -- labor costs need to come down but production capacity needs to come down because production in germany got too expensive. of course, in a moment where you have elections in germany as well, it is very difficult to convince politicians and volkswagen is still driven by politicians, that the wages and jobs should cut. therefore it will be a tough q1 for the company. the election campaign that the parties are running is probably on the back of volkswagen, and you know politicians so in the moment you run up to

elections, they will not say, yes, it is a good idea to cut the jobs, to cut the wages therefore i would expect an agreement only in march, a little bit later than the market expects at the moment, but it will be painful for volkswagen, that's for sure. >> it is quite interesting how the picture for one company is very much similar to the picture for the country itself i wonder whether you are expecting with a new government perhaps there also will be a change here that will support the auto sector more broadly >> the question is what can a new government do, right i mean - >> you are discussing that break, right so maybe they will have more fiscal capacity to support the sector >> what do you want to do then of course, you can purchase subsidies, you can launch a scheme, something like that. but germany still -- i mean it is the largest car market in europe but it doesn't solve the structure problems and that's the issue. i think on a european wide basis, look at france.

i'm not sure what the individual governments or the countries really can do. so i think the easiest for europe would be, and that doesn't cost anything, to say we change the regulation. i think also that's what they want to do give the carmakers a little bit more time. i think it does not improve competitive positioning but it provides more time and i think the market would appreciate that >> exactly where i would go next the rules are coming into effect at the moment we expect 2025 are you forecasting changes here and what companies do you think are more prepared to deal with potential fines? >> yeah, i think the topic of such is very consensual already. it has known for years what would happen in 2025, so the co2 emissions need to be cut by 50%. most carmakers are running behind, maybe except bmw and stellantis volkswagen has the biggest gap because it is the largest

carmaker, most exposed to ice. ev has flopped kind of, but also was under pressure therefore i would say all of the mass carmakers except stellantis are under pressure just because the ev prices are sitting too much above other prices, something like 20%, 25%. what people need is cheaper evs. they're saying there's no need to cut the targets but in general it is good to give the carmakers more time because acceptance on the consumer side is not here. >> we are clearly seeing that. given we are approaching the end of the year, i would like more of an understanding in terms of what are your top convictions going into 2025? >> right, they always talk convictions, of course it is more difficult to figure out what are the top convictions. we have a moment where the sector is rallying, where the people desperately maybe look at steeper stocks because everything has raised so much this year.

the lesson from last year, it is not maybe lasting. we still have kind of a disruption situation if tesla projections come through, legacy oems, this do not grow units at all. i would say in general we are bearish on the sector. we think the suppliers are a little more advanced on restructuring so we are flagging few names. we will be flagging a good spin-off story, a breakup story, valeo as well purely on the tire-maker side. on the carmaker side it is a little more difficult, but given how beaten up stellantis was this year it is a good trade, especially having in mind how much volkswagen could suffer in q1 from the strikes, and at stellantis i think all of the negative news is out and therefore it is cheap and there for the model pipeline in the u.s. we have a story of stimulus that could benefit from

that >> before i let you go i would like to understand the risk of the final you made with donald trump coming into the white house at the start of next year. are european automakers prepared for potential tariffs or would it just bring more headaches to the sector >> tariffs are like co2 regulations now. everyone expects there could be a tariff raise i think in terms of the tariff raise, it depends on what he wants to do, tariffs on the mexican imports, tariffs just on the european imports, are there tariffs against the exports. at the moment it is difficult to quantify who suffers the most. i think it is fair to say those companies importing in the u.s., of course, they should be most affected these are the luxury oems which have pricing power in general, it means companies like porsche, it is a mixed portfolio. you have 911 pricing cola very level in this model.

it is a little bit more competitive segment so maybe porsche suffers the most but it depends on what trump wants to do >> of course we will find out soon. we appreciate your time. >> thank you so much >> horst schneider, head of european automotive research at bank of america. meanwhile, to france more lit cal developments out of europe usa second lardest economy. the french president, emmanuel, macron, has vowed not to step aside until his term is kpleent. he said he would appoint a new prime minister in the coming days he also accused mp, the national assembly, of creating chaos. >> translator: why did these mps vote like that not because they think about you, your lives, your difficulties, your end of the month, your projects of the let's be honest. they think about only one thing, the presidential election, to prepare for it, to trigger it, to precipitate it. and to do this with a cynicism

and with a certain sense of chaos. the mandate that you have democratically give me is a five-year mandate and i will exercise it fully until its end. >> let's get a check on how it has been impacting the bond market to be fair, looking at the latest performance we're not seeing huge amounts of concern for the time being if we put everything into context, at the start of the week we did see the spread between the hen tv year o.a.t. yield and the german bund widening let's see what comes in the coming days when we get more clarity in terms of what france is going to do next. let me tell you about the latest number from france because the majority of french people want president macron to resign and for the country to hold presidential elections that's according to a new poll by elabe it pointed out that 41% of those surveyed think president macron

is responsible for the current political turmoil. of course, charlotte is back from paris let's get an update from her charlotte, what does this mean for macron are we likely to see a change in presidency despite what he is saying now because it seems like he is under a lot of pressure. >> what he is saying is that he is not going anywhere. what we node from the far left, they're asking for him to step down and he doesn't have to constitutionally at all. that's why you have a mechanism to oust the prime minister but the president is a different job. that's why he is saying he is staying. he has 30 months left in his mandate, and to be fair he can't run for another election so he has no electoral ambition in what is going on at the moment like the other groups in parliament they said are guided only by their own electoral ambitions. so it was a feisty turn from president macron, who said the far right and far left are united on an anti-republican front. he said he would name the new

prime minister in coming day this will be his fourth prime minister just this year and their mandates are getting shorter because of the ongoing instability at the moment. he said he would ask the prime minister to form a government. we'll wait and see he is hosting big ceremonies around the opening of notre dame, dignitaries coming to visit. we will have to see how he is doing with the festivities, not having a prime minister and government he is expected to do it fast not going to wait two month as he did previously. we heard from a socialist group in parliament saying they are ready to work and negotiate potentially with macron and form the government so that's a big opening because, of course, a part of the left wing block with the far left leaders with the vote of no confidence, it looks like they're maybe open to work with the centrist bloc. that would be a big development

because that would mean a vote of no confidence would not be successful in taking part of the government very important there we will have to wait to see what it means for the pick of the prime minister and when we will have a new name. >> exactly in the meantime do you get a sense of where this could actually backfire? is it likely to impact the far right when we see france heading to the polls again or the far left anyone that's to blame here apart from the president according to the latest polls? >> looking at these polls, people hold president macron responsible and, again, from his speech yesterday he said he is kind of taking responsible for calling the snap election but not taking responsible for the current chaos, and that's down to the people who supported the vote of no confidence. so not really taking responsibility a lot of people, public opinion holds him responsible for the current situation. for maureen le pen, she wants to

work for the government influence because she could influence on immigration she decided to change strategy and now at the top of the government she did not want to be an agent of chaos before, so maybe that will work. they wanted this vote to go through so they have what they wanted we have to look forward whether it paid off for her or not >> we will find out in the near future we will have more to talk about when it comes to the french political scene. our own charlotte reed there we will be discussing ukraine, we will be joined by a member of ukraiapaiantinn rlme that conversation is coming up after this break

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welcome do "street signs" on this friday morning. i'll sylvia amaro and here are your headlines investors brace for november jobs report with european stoxx sitting in a holding pattern at the close of an otherwise strong week for equities. dial a deal. direct line shoots to stop of stoxx600 after it reaches a preliminary agreement with aviva, giving its rival until christmas day to make a firm offer. french president emmanuel macron digs in amid calls from the left and right >> translator: the mandate you have democratically given me is a five-year mandate and i will exercise it fully until its end. >> opec and its allies delay plans to increase production yet again, opting to wait and see as concerns over chinese demand and u.s. output linger ♪ ♪

well, let's get a check on how we're trading so far this friday morning starting with the stoxx 600, at this stage it is trading higher by about .2 of a percent this week has been an interesting one for the markets with investors seeming to not be really concerned about the political turmoil in france. nonetheless i want to take you to the boards to get a better indication of what is happening across the european continent. there you have it. the kakka cac quarante up at th stage, with investors focused on the fact that french investors are less impacted by what is happening on domestic scene. nonetheless, we will continue to monitor what happens in french assets just very briefly, looking at

this, it is up half a percent. in terms of the sector break down we have this starting at the best performing sector at this moment. autos at the top, up about 1.4%. one of the main important stories for the sector was the announcement out of stellantis with carlos navarro leaving the company effective immediately. they will have a new ceo in place start of next year we are seeing household up 1.2% and real estate up about .8% what is happening on the other side of the equation let's find out worst performing sector so far is actually media, but just marginally lower when you think about the worst performing sectors what we have is basically marginally lower, so highlighting really positive momentum ultimately we have so far today and so far this week really it has been quite a strong week overall. in terms of what has happened in

asia, let's get a check on how asian boards fared earlier today. in asia one of the main stories they've been digesting was the political turmoil in south korea. the kospi ended the day down .6 of a percent looking at the nikkei 225, we had a reversal compared to what happened on thursday it ended today's session down .7% it was a bit of a change really compared to what happened on thursday but i want to bring our next into the conversation, i want to move on to the geopolitical scene at this stage. the biden administration is reportedly continuing efforts to bolster aid to ukraine ahead of president-elect donald trump's return to the white house. that's according to "the guardian." the u.s. national security adviser, jake sullivan, met with ukrainian officials on thursday, pledging to provide additional ammunition and weaponry between now and january. now, i'm pleased to introduce

lisa yak, a member of the ukrainian parliament thank you for being here today >> thank you >> it is great to have you here because obviously we don't have the chance to be in ukraine and see exactly what is happening on the ground let's start the conversation there and just paint a picture for us, how is it like at this stage in kyiv and for the front line >> so on average since november, each of us, having a number of hours every day when the drones are flying, it is like normal, when ballistic missiles are flying every night, we are all in a situation when we don't know whether we should go to the shelter but we are too tired to go to the shelter. and it just doesn't stop and there is no electricity. so i can tell you that i have a small daughter and every time i need to bring her out to the nursery, there is no lift.

you need to carry your daughter, and at least half of the day there is no electricity at this point. the missiles and the drones started reaching more and more the west of ukraine more intensively. it wasn't like that before so it is the approach of exhaustion that putin is using he wants to exhaust all of us so that we are tired, that we are demoralized so that he wins. that's his strategy. >> so what do you think about what is happening on the front line we had one change here in recent months which we haven't seen until then, which was obviously the fact that north korean soldiers are now also taking part here. do you think that ukraine is actually losing the war in an international political scene? are you struggling to get enough support to fight this war? >> well, of course we are not losing we have our brave people

fighting every day and i don't think you will find any nation that would be as crazy brave as we are, ready to die unfortunately, we have a huge number of killings and casualties, but the fact that north korea joined the war against ukraine, i believe from international law point of view can be called definitely as the beginning of the third world war because we have not only two countries, we have other countries joining. but i'm not happy with the reaction that is coming from -- from the global scene, meaning that we only have a few resolutions. for instance, european parliament voted to condemn that north korea has joined, but we need much more of course, i do hope that this winter hopefully will reach us more or less to some certainty, but at this stage it looks like

putin is increasing all the stakes he wants to kill more, to -- and he's not only targeting energy infrastructure and the military infrastructure he also is doing it against civilians because he knows that it is very important to exhaust us so this is what he wants, and we need to have very strong reaction and we need security reaction, which means that nato needs to be working together with us, and hopefully we could become the member of nato one day and we need an invitation from nato as the tool to protect us and to protect global security >> do you get a sense, given all of the conversations that you have -- and i see you traveling across the world really at this stage. do you get a sense that you are going to get that invitation from nato in the near future >> i get a sense that the temperature about this topic has changed. if some years ago it was almost like impossible to talk about

it, now some countries i actually -- some governments are discussing it very seriously and since our position is very clear that we cannot have the postponed decision we need to have the decision about the peace, and if the peace comes it needs to come with something very, very strong about the security because we don't want putin to attack us in one day after that or in one year after that, and only nato or some alternative security alliance, but it currently doesn't exist, could work together so this is what -- what we need. and i think there is more awareness, more understanding, but it needs political will. this is, as our president zelenskyy said, this is where we need to work more because not all western leaders are ready for such a political will. you need to have some bravery for that, and courage as well. >> do you think donald trump is going to help you getting that nato membership invitation

>> at this stage it is hard to say, but we are working as much as we can to spread this message very widely. we have different meetings with the u.s. officials, and i do hope that trump can hear that, and because he wants to be strong and to end the war, i hope he understands the whole picture. but he has some people around him that do understand the problematics very well, and i really hope that nato would be a part of the discussion >> now, you are a member of the president's party, zelenskyy's party in ukraine parliament, and you were talking about that exhaustion that, you know, you guys are having to fight every day. do you get a sense that the president has also reached its peak exhaustion? >> no, i don't think so. i actually think that president is very much committed and very strong and has energy to make

things happen and finally to reach international coalition and to have so much support to end this war, he's not exhausted. as you know, he is traveling everywhere, so i think that exhaustion that we currently have in society doesn't mean that we are not as much committed as we were before. the thing is that everyone got used to the war inside ukraine, but also abroad. this is the problem. we don't want to live with the war for so many years. we want to end the war, but it needs to come with a just peace. not just peace for the sake of finishing it now because then it will start tomorrow. it has to be something very wise and, yes, it is very complex and complicated and requires international architecture of security to be shuffled. it needs political leadership and, hopefully, next year maybe it could happen. but we need to work all of us together it is not only about ukrainians.

>> yes well, let's see what will happen and, of course, how things could change amid the reelection of donald trump we appreciate so much your time this morning thank you for coming to the studio and giving us a better indication of what is happening on the ground. that was lisa yasko, a ukrainian member of parliament south korean president yoon suk-yeol is expected to face an impeachment vote with the leader of his own party joining calls for his immediate removal. this report from seoul. >> reporter: a major pivot by south korea's ruling part in the post-martial law political turmoil. the ruling people power party called for the swift suspension of president yoon suk-yeol from his office, saying they have credible office suggesting he wanted to use the martial law earlier this week to arrest key politicians. the presidential office is

denying this, but this major reversal from his own party could definitely increase the chance of the impeachment vote that is happening this weekend going through the national assembly in the meantime, there was a big sell-off of south korean assets on this friday morning, including that big plunge of the korean one, potentially in reaction to the main opposition democratic party's claims they're receiving intel of the second martial law i'm sherri kang for cnbc, seoul. time now for our moment of the week president-elect donald trump said he would impose tariffs of 100% on the so-called s, i they were to develop a currency to replace the u.s. dollar how did it come about? the u.s. imposed heavy sanctions on russia in the wake of the invasion of ukraine, some of

which were only possible given the global currency status the u.s. dollar has. this has led u.s. political adversaries to consider alternatives in being less exposed to the hegemony to the u.s. dollars political divergences between india and china were mentioned, restrictions in capital flow given capital control of varying degrees in russia, india and china as well, among other reasons. however, market players are following these conversations. in fact, the south african dropped 1% monday off the back of the news. if we look at the performance, we see for instance how it has impacted a couple of particular currencies looking at the performance of the russian ruble, down more than 5%. when you think as well about the

yuan, we are on track to see the currency up about .3% this week. we will continue to monitor what happens in this space. meanwhile, we are going to take a look at crude prices as well coming up on the show, chris rice's search for direction after opec's latest meeting. we will tell you why after this break. hey, can you speak french? who, me? i know a few words. if you're struggling to speak a new language, you should try babbel, a learning platform designed by over 200 language experts. it's like having your own personal language coach. babbel offers live classes with expert teachers for real world conversation practice. it's totally flexible so you can learn at your own pace and with the right practice and coaching, start speaking a new language in as little as three weeks. go to babble.com to claim your limited time offer today.

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♪ ♪ welcome back to the show let's get you an update in terms of the latest appointments from donald trump he announced that the former senator, david perdue, as his pick to be the country's ambassador to china. sticking to his truth social website, the president-elect said purdue brings valuable expertise to help rebuild the

relationship with china. he meanwhile said he has picked david sacks to serve as ai and crypto czar, calling the two areas critical to the future of american competitiveness let's get a check also on how bitcoin is faring. of course, important moment this week we crossed above the $100,000 benchmark. however, looking at how we are trading at this stage we have the bitcoin below that psychological level at 98,300. time for our what to watch as we approach end of the show let's get you up to speed on what to watch out for on wall street today on data front all eyes are on the upcoming jobs report state side with consumer sentiment and credit figures also do we will hear from four fed officials today ahead of this month's rate decision. in the corporate, ulta beauty raised the outlook expectations and sees the

benefit from a financial discipline plan. lululemon shares jumped 9% after reporting strong sales abroad despite weaker performance in the united states we bring you back to the action in some of the markets at this stage we have been, of course, keeping a close eye on oil prices. this as opec and its allies have gained, again, i should say, delayed plans to unwind output cuts this as the group looks to support oil prices amid tepid global demand. amid the group's formal policy, opec's members will restrict combined production to 39.7 million barrels per day until the end of 2026. to discuss this latest move from the opec and its allies, the co-founder and head of geopolitics of energy aspects is joining us today good morning, richard. good to have you on the show i was reading the latest commentary on this announcement

from opec plus and many are suggesting it was actually a bold decision. how did you interpret it >> yeah, i think the group achieved quite a lot in their meeting yesterday. the market was expecting a three-month delay to the beginning of the unwinding of cuts, which we got, but we also got a couple of less expected moves that extended or slowed the timeline so they're going to add less supply each month starting next april, and they're persuaded the uae to agree to a delay to increasing its quota these are all really complicated elements of the deal, but what they add up to is a much slower pace as well as a delay to the start of opec plus adding supply next year. >> interesting when you think about, you know, how opec has -- opec plus has come about with this decision, it is not the first time that they take a similar decision, right, of extending these output cuts given there's a risk here that one of the members is just going to say, no, i'm actually fed up

with this decision >> i think that this is something the media and quite a lot of the oil market has kind of been looking at the outside for, some kind of sign of disunity or that there's about to be a market share war when we talk to sources in the group, when we look at the behavior of the group, we don't really see that evidence they came up with this decision. there wasn't a lot of infighting to get there, and there are challenges within the group. you know, hot every country is meeting its obligations. there are real issues with compliance from a ew countries but it is improving. i think the group is unified and that's one of the important factors to watch heading into next year, which still will be challenging for opec plus. >> if i look at oil prices at this stage, they are marginally lower so far in today's session. given the announcement from opec plus and the fact that they want to support oil prices, what is the outlook going into 2025, what sort of level we will see

in oil prices and how the reelection of donald trump actually plays into the outlook as well? >> i think the keel goal for opec plus is to manage inventories. with the decision yesterday they should eliminate the surplus we were previously forecasting next year oil prices we think will move up to $80 a barrel for brent, but it will take a while to get there. one of the reasons is the trump presidency brings uncertainty. we think more pressure on iran, sanctions, and some of his other measures will be bullish for oil but we recognize he has talked about boosting u.s. supplies, he is talking about tariffs, which could be disruptive for global demand the whole market as well as the opec plus group have to navigate the policy uncertainties for the next few months and years, in fact but we see the direction of oil prices as gradually higher from this point, particularly after opec plus has removed the surplus next year. >> well, i have to ask you why

can you give us a little bit more color there for instance, i saw how jpmorgan is expecting the price to go down to $60 a barrel >> absolutely. it is always healthy i think we think no opec supply group from brazil, from the u.s., from other countries, may not be as strong as the market is assuming, particularly after brazil disappointed expectations this year. meanwhile, opec plus is showing it maintains discipline, is cracking down on compliance and it will be very cautious about adding more supply, waiting until there's a gap in the market for it. finally, we think iran sanctions pressure is going to be meaningfully reducing flows from that country next year, and that is really going to tighten the balances now, none of this creates explosive upside to prices, but it means that we see the direction as upwards rather than downwards from current levels.

can you give us a specific range there? >> for prices, i mean we think the average for brent next year will be pretty much on average $# 0 a barrel. we think we will get there over the course of q1 you have to get through the seasonal period of stock builds, maintenance, and you have to get a bit more visibility and clarity on the fact that iranian supply is falling, exactly what trump will do on day one in terms of tariffs and other measures but i think as we get into q2 and beyond we think that the market looks pretty balanced there will be evidence that inventories are low and not building massively and that's going to be when you can unlock prices kind of towards and around the $80 a barrel, but there will be volatility as sometimes in the 70s, sometimes in the 80s, with the average around 80. >> that was richard bronze,

co-founder and head of geopolitics at energy aspect time to get a look at how things are so far this morning european forces suggest we are mostly higher, looking at the cac quarante up about 1.2% let me show you the week-to-date performance. we have it on track to end the week up 2.5% look at germany, on track to end the week up by 4%. so interesting moves here despite some of the political turmoil we are seeing, whether it is in germany or in france. now, we will have more for you next week. that is it for today's show. i'm sylvia amaro stay with cnbc "worldwide exchange" is coming up next.

it is 5:00 a.m. at global headquarters stocks pull back from all-time highs. heat today will be that november jobs report, possibly market moving data just days ahead of the fed's final rate decision of this year. president-elect trump makes good on his promise to name a white house crypto czar. plus, chevron pours cold water on his call for drill, baby, drill, and it's a big