craig melvin: that's all for this edition of dateline. i'm craig melvin. thank you for watching. [theme music playing] ♪ good morning and welcome to "street signs." i'm silvia amaro and these are your headlines. slash debt on the bank of england debt cut with the markets pricing in three moves for the whole of 2025. european stocks open in the red as investors look ahead to the series of key central bank meetings while u.s. futures point to the dow continuing its

longest selling streak since 2018. the french national assembly backs a lot over the budget in 2025 as the bank of france warns a hit to the political turmoil. and the softbank ceo masha son announces $100 million in the u.s. ahead of donald trump's second stint in the white house. very good morning. we start today's show with the latest ifo data giving us an indication of what is the business moral in germany at this stage. the business climate figure came in at 84.7. that was actually lower from what was priced in. when you compare this figure also with the prior reading in the prior month, it is also lower than expected.

this is suggesting to us at this stage that business morale in germany deteriorated in the past month. this is particularly important because it comes a day after we got pmi data for the eurozone. when you look at the numbers for germany, it was clear the chronic downturn did seize slightly in the month of december. the contraction for the suctionth ixth month running. it highlights the outlook for the german when at a time when we also see the country heading to a snap election in february with the key question here being what is germany going to do in terms of fiscal policy. there are ongoing conversations for the debt brake and that is important because we see a lot of businesses struggling at it

stage particularly in the manufacturing sector. what is the government going to do to support them? once again, the data we obtained is highlighting once again this is not a good outlook for the business industry in germany. let's see what will happen there what the officials are going to do in the medium term. in the meantime, however, we did speak arlier this morning with monica scnitzer. she said this is not the fault of the government however. >> it is important the companies get their acts together and do what they need to do. they need economic policy and the route. some of the problems the german firms are facing are also self made. it is really important they come to resolutions of their own issues. >> monica, i and other people

who want this to work have another problem. that is if they do enact a policy and tweak something along these lines, there is a constitutional court ruling that will block spending. how much do we need to worry about the courts thwarting the aspirations of the politicians? >> if congress gets together and two-thirds of majority of changing the debt brake and doing a moderate reform as we suggested, then that should be perfectly fine. if you tweak around and if you try to find loopholes, that is much more difficult. it's really important that if they want to change something to the debt brake that they find two-thirds majority. meanwhile, we are getting numbers from the german finance agency highlighting what is the plan in terms of debt issuance for next year. let me share the figures with you. the total debt issuance expected

for 2025 is expected at 380 billion euros. thinking more broadly, however, in terms of what are the plans the german finance agency has, they are uggesting 240 billion capital markets through auctions throughout 2025. it is also particularly interesting what they are saying in terms of other plans here. thinking, for instance, in terms of green bonds, they are saying this morning that germany tends to issue between 13 and 15 billion euros in green bonds for 2025. these figures are relevant, of course, because you have to put everything into context. we discussed the last evident highlighting the business community. you heard how germany is preparing for a snap election in what the country is doing in terms of fiscal policy and now we have have the plans for debt

issuance for 2025. now it is very important to understand here what is the outlook for the german economy particularly when you think about the fact they are the largest economy in the eurozone. let's now zoom oupt and t and s is happening on the stoxx 600. the benchmark is trading lower by .30%. investors at this stage trying to understand what central banks are going to tell us this week. of course, we're going to hear from the fed. no doubt that will have implications for how investors feel going forward. let's not forget as well we will hear from the bank of england here in the uk. there is also the bank of japan meeting due later this week. it will be very important to see what is the outlook because these meetings here will be the last ones this year. what will be the outlook, the message from the central banks as we prepare for the start of the new year? we shall find out. i want to take you to the different bourses to understand what are some of the individual

stories across the bourses. let's look at the ftse 100. at this stage, the equity market is down .60%. this, show, though, comes at imt time. we have seen a reaction in the bond market. it is important to put that into context as well as you think about the new year and the plans from the labour government as well. we see downward pressure in italy with the ftse mib down .50%. with the sectorial breakdown, it is technology gaining .70% followed by retail. i want to take you to the laggards. that is were the important stories are this morning. the benchmark trading down .10%. oil and gas is down 1.5%.

yes, we are looking at lower oil prices this morning, but all in all, what we are witnessing is investors are concerned about the demand from china and briefly, i want to take you to healthcare down 1% at this stage. it was likely to be a very important year for healthcare. we are hearing several comments from analysts how m&a to be a big driver for healthcare in 2025. we shall find on the.ut. we see pressure in the sector. i want to dive into it for now. looking at the yields on long data uk debt, they hit the highest level in over a year this morning. this after uk wage data showed salaries increasing more than expected. traders are now trimming their bets on the bank of england easing with less than a 10% cut on thursday and pricing three cuts between now and the end of 2025.

now, in another story we have been watching. looking at france, the national assembly has approved a lot in the current budget into 2025. the law would allow the country to collect taxes and borrow money as francois looks to pass a full budget bill with the political uncertainty will add to global volatility downgrading next year's growth to 0.9%. charlotte is joining us this morning once again from paris. charlotte, no doubt, very busy teams following french politics. i would like to understand here what could actually be the event that could trigger more union within the french assembly? we heard from the bank of france. what will it take to see a compromise within the french assembly in terms of bringing down the levels of debt and

deficit? >> reporter: that's what the new prime minister francois is trying to figure out there. was a special vote for the session beats of the 2024 budget to keep or avoid a shutdown in the country. that's in the meantime while we wait for the new 2025 budget. that was why michel barnier was toppled by parliament because of the 60 billion euro of adjustment to bring the deficit down with spending cuts and tax hikes. we have to wait and see what francois is doing. he is continuing with the consultation. he will continue this today to try to figure out the red lines from the political parties and where there is room for compromise. this would be his first challenge next year to tackle. in the meantime, you saw the moody's credit downgrade over the weekend for france. the warning from the bank of france yesterday trimming the outlook to 0.9% gdp growth next

year from 1.2 previously. the growth coming back a little bit in '26 and '27 at 1.3%. they mentioned the political uncertainty weighing on the economy and that's some spending decisions by household and companies as well waiting to see whether there will be tax hikes for example. we see s saving more. maybe more subdued growth next year. spending cuts from the government that could be impacting growth. that is the message. we have to wait and see. francois will take questions from mps today in parliament for the first time. normally answering questions. it doesn't have a government just yet. he is hoping to name the government in the next few days. he said ably before christmas. once we have the formation of the government with the center right and center left which might be a difficult exercise.

once he has his team, he will try to design the budget for 2025. that will be the big one after christmas. >> still a couple of steps before the detail on how he intends to invest and spend money. in the meantime, i want to take you to what is likely to be a very important event for the markets this week. the fed is kicking off its two-day meeting today with the fmoc expected to cut rates by 25-basis points. the mystery lies in whether they will signal a pause in january. that is just a week after donald trump returns to the white house and if the fed would pause the rate cutting cycle over fiscal policy from the new trump administration. i'm pleased to say nicola at wealth club is joining us this morning. nicolas, i would like to understand first and foremost,

it is heavy on monetary policy. as you think about 2025, one of the key questions here is what will the fed say in terms of the dot plot? what do you think the fed ill tell us? >> i think we will see continuation of the trend in the next 12 months. people expected too many cuts. that will be the case in 2025 as well. the expectation will flatten out and people will not get thecipa it even out over the course of the year. >> however, how much do you think theed fed can do and pri in with the conditions of the monetary policy given we don't have much detail from the trump administration? >> this is going to be a problem regardless of who won the election. both sides were budgeting large fiscal expansion.

that's going to work in the opposite direction to the way the fed would probably like. ideally, they would like to be cutting rates rather than counter balance fiscal expansion. i suspect they are likely to sit on the sidelines in the first couple of months. it's better to sit out and see what's happened rather than emergency change of direction having cut too fast, too quickly. >> now, i read some of your comments in recent times suggesting a high concentration at this stage when you think about the stock market. this is where the consensus view is very much focused on more american exceptionalism. i would like to understand when you think about valuations and the concentration in the market at this moment. is this the risk, the biggest risk for 2025? investors are too bullish on u.s. equities? >> it is certainly something we're aware of. one thing we are focused on

building for clients is broad diversification, the important driver things. generating excitement in the market. we have seen for example nvidia come off a little the bit in the last few days. that is not because people have fallen off nvidia. when you price 60 times earnings, even a small trip up can cause a correction in price. we have seen in recent times and competition starting to catch up and do very well with and also nvidia's most recent generation of a.i. chips have struggled a bit or seem to be struggling a bit in early days. what we are seeing is a broadening out in that team and we think that is a good thing for the market as a whole. those concentrating on the market leaders are vulnerable next year. >> we did see nvidia at one

point in contraction territory. i would like to understand the outlook for the chips sector. you have nvidia with a little bit of pressure because year to date there is no pressure when you think about the performance. over the last couple of days, indeed pressure on the stock. at the same time, we have seen broadcom actually making a lot of gains in recent days. i want to understand here what is the outlook for the chip sector and are these two names basically going to be firing for who is going to be the main player going forward? >> i think when it comes to chips, there are two questions, really. the outlook for the stock and outlook for the sector. i think for revenues within the sector i should say. i think fairly clear, revenues will remain strong across the industry. whether concentrate on nvidia or broadening out for other players. that is less clear. certainly, the chances of a broadening and less focus on nvidia have increased. when you look at valuations,

it's a very different story there. when you price something for perfection as nvidia really are at the moment, the scope for tripping up is quite substantial. i think if you are looking at the investment perspective and the stock price of nvidia, i think there is substantial risk. in the long run, though, i think revenues in the industry continue to grow. it is whether the revenues generate returns and investors continue p to to make money. >> nicolas, we are a couple of days before the end of the year. can you highlight the best opportunity for 2025? >> the sectors or sector we are looking atclosely is infrastructure. one, open appetite globally is money spent in the next decade. that is not just energy with

headwinds in the next year, but also across nuclear and decentralizing the grid itself. at the moment, the way the grid works, taking power from one gas power station and distributing it to other consumers if we move to a more renewable base world, there will be distribution. rather than one place to many, you take it to many. that requires an upgrade of the way the grid works at the moment and require trillions of dollars of investment. a.i. and the expansion of a.i. will also require significant amounts of energy. some of the openai data centers are expected to need up to five gigawatts of power. that is the city of miami not to mention the data center and chip power. as you mentioned earlier in the show, government balance sheets are already really stretched.

they will probably not be able to fund that work. they will rely on private capital. >> nicolas, we have to have a new conversation in the year to check on infrastructure. the investment analyst at wealth club. in the delivering alpha segment, we are hearing from the fund manager. he told me about the midcap stocks that he is buying on both sides of the atlantic. >> listed here in the uk. they are primark. if you think about the economy and the data from the uk is not positive at the moment. if people start trading down, primark will catch the market share. it is a nice diversified business. i won't wake up tomorrow and find they are doing something

stupid. i think he is an excellent ceo. they have growth potential. they are growing around the world and attractively priced and they are buying back shares. it is out of favor because it is a midcap and listed in the uk. >> interesting. when you think about those two names is the fact it is ignored by other investors. share also your thoughts when it comes to mattel. >> it is also a midcap. mattel is the number two toy company in the world. when you think about their brands, it's barbie, hot wheels, matchbox, thomas and friends. barney. all of the names are familiar to parents and all the rest. great names and they've got a new management treatment eam un the value in the content. in the old days, it is make the

toy cars. now they have a series on netflix. it was so popular, they wrote the second season and launched the second season in september. they've got 14 products in production. movies with amazon and with apple and hopefully a "barbie 2" on the way at some point. "barbie" taking at the box office was more than "highway patrol. harry potter." you can use the a.i. games to make user content. >> you can check out more from the delivering alpha series on our cnbc web site. coming up on the show, we take you through the central bank action with the chances of the boe hike. join us after this break. ah, these bills are crazy. she

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welcome back to the show. germany is on track for a national election on february 23rd after chancellor olof scholz lost a confidence vote. only 207 lawmakers backed the government, well short of the 367 needed to win. scholz looked to formally request the disillusion of parliament which is expected to be made official in the coming days. in the corporate world, talks with volkswagen and the union continued into the night before being paused after 13 hours of discussions. the two sides remain split including whether plant closures can be ruled out. the ig metall is unclear over

the talks to continue. the talks will resume later today. now into all of the central bank action we are expecting this week, the fed will kickoff the action with the rate decision tomorrow. then we are set for super thursday with the bank of japan, bank of england, norges bank ing their decision. the cnbc bank of japan survey shows the economists expect a hold from the central bank. lin lin filed this report. >> reporter: 54% or 13 of 24 economists surveyed took this view which is much less than market pricing which stands at 80% believing the boj will stand pat. in my mind, when you look at the analyst comments we have been gathering, it boils down to two

key things. is the central bank gore ing to focus on the data or the outlook. economy many economists told cnbc the boj is on target driven by wage growth. however, they noted the boj might prefer to wait another month to evaluate wage driven dynamics and donald trump's trade and tariffs policies as well. as far as the boj communications is concerned in the last couple weeks, it has been signaling patience highlighting concerns around external risks like u.s. economic policy and also saying that they see little risk in terms of inflation overshoots as well. with market pricing really moving on the various media reports conveying these views. the currency a major wild card

especially as this decision comes hours after the fmoc. analysts saying the cut is priced in, but the main risk is if we get a hawkish fed, it could send dollar/yen higher which is a worry for households and the government as well which could pressure the boj to adopt a more aggressive chance. lin lin, cnbc business news. coming up on the show, arjun will have the latest ambitions despite grappling with chip curbs. we'll have more 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.

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welcome to "street signs."

i'm silvia amaro and here are your headlines. traders slash bets on bank of england cuts after the hotter than expected uk wage data with markets pricing in three moving lower for the whole of 2025. european stocks in the red after the key central bank meetings and the u.s. futures continuing the dow with the longest selling streak since 2018. and german business sentiment slumps in december as political instability crystalizes around the no confidence vote for olof scholz. and the bank of france warns a hit to growth with the political turmoil. let's take a look now at the ecb, the banking arm, is telling

us this morning. the euro area banking sector remains resilient in 2024. that's according to the ecb supervisory view and evaluation process. lenders remained capital above requirements with higher interest rates sustaining profitability. the ecb did warn though that a weakening macroeconomics outlook and structure changes in the economy called for vigilance. we will hear from claudia buch at 11:30 gmt. time to look at the equities this morning. the stoxx 600 in the red down .40%. investors are trying to understand how to position portfolios amid the central bank action this week. let's me take you to the different bourses and get a better idea of what is happening across the european continent. looking at the ftse, the main

index here, down .60%. this after wage growth this morning suggested a pick up and, of course, that has impacted the way traders are looking at the upcoming bank of england meeting. in terms of the sector breakdown. this is the best sector which is technology up .70%. also a little bit of upside for household good names. i want to take you to the worst performing sectors. that's the most important market sector this morning. oil and gas down 1.2% at this stage. this is due to lower oil prices and lower concerns about chinese demand going forward. we are seeing significant pressure in healthcare down 1%. in terms of u.s. futures, this is how we are shaping ahead of wall street. it could be another day of losses on wall street.

thinking of what happened on monday, it was a mixed session. the nasdaq hitting fresh record highs, but the dow with the longest daily losing streak since 2018. we will see what happens today. we will have several economic bullet points to look at including retail sales. let's look at nvidia. the company entered correction territory at one point on monday after shares fell. now they are around 11% off its closing high of $148.88 which it hit in the month of november. on the other hand, looking at broadcom, they actually continued the recent rally. shares closed up more than 11% on monday falling friday's gain of excess of 20% putting the stock on track for its best ever monday. off the back of nvidia's decline, don't miss our pro talks tomorrow. i'll talk to steven wu about his stocks and get his take on how

they are likely to perform in '25. that is coming up midday gmt tomorrow. meanwhile, china's attempts with a.i. could be paying off. the chinese a.i. models are keeping pace with and even surpassing those with the u.s. in terms of performance. arjun has been looking at this. arjun, tell us why this matters? >> reporter: silvia, this is something i have been looking at for a few weeks. there are three conclusions i found. chinese open source models are proving popular ally. i'll get into that shortly. including those from the likes of openai. this is happening despite the chip restrictions from the u.s. on china as well. now the important point here is china has been pushing open source or open large language models.

these are free to download models that you can build applications on top of with no stringent censing. in the llm world, you see open source from china and alibaba and deepseek, another company making the open source models. on the open face, you see the chinese models are the most popular downloaded. q 1 is easy to use and the capabilities are good and there's plenty more you can do with it with the other closed models as well. if you think about the open source, it is the way for chinese companies to push globally. it almost is trying to become one of the key players in the large language model space. that say key development so far.

it is all happening despite the restrictions we have seen from the u.s. on american companies shipping the advanced chips to china. one aspect of the story one analyst told me the chinese companies have been stockpiling nvidia chips in anticipation of the restrictions. they don't require the advanced chips as well. that is an interesting thing to watch for 2025. all in all, it is an interesting time in the a.i. space. you see chinese coming out with the innovative chips to rival. >> absolutely, arjun. to read the entire article, go to cnbc.com. brandtech founder and ceo joins us today and arjun is also staying with us for the conversation. it is great to have you on the show. >> great to be here. >> i would like to understand

the level of competition at this stage and highlight for our viewers and brandtech with generative a.i. for faster and cheaper ad making. i would like to understand other players taking similar eps in this regard. how competitive is this space at the moment? >> i think it is insanely competitive. we have been doing gen a.i. since 2015 and gen a.i. and platform since 2018. i would say until chatgpt exploded, no one understood what we are doing and no one else is doing it, but today, everybody is trying to do it. i think 2024 is the year where everyone talked about gen a.i. 100% of headlines on gen a.i. i think 2025 is the year where we really see mass scale

deployment of gen a.i. the acceleration we are seeing through client base and we work with the top ten global advertisers. there is just a demand i have never seen in my career. >> arjun also have a question for you. >> david rjs , when you think a the broader landscape, the likes of meta and google and tiktok challenging the dominance. what does the proliferation of generative a.i. across the landscape mean for some of the platforms? is it entrenched their position further or will there be a bit more disruption in the space? >> i think we always like to talk about the new and is it perplexity or is it chatgpt? actually fact, if you look at scales presence in gen a.i., the

google ceo was talking about how they put out 1 billion overviews with gen a.i. in 100 countries and built a.i. into several products. zuckerberg and meta talking about 500 million users of meta a.i. we think one other thing that will happen in 2025 along the mass deployment of gen a.i. is the share of model or increasingly important what do the llms think of your brand and how do you change and influence that? >> we're increasingly seeing, you know, a trend for a while, but the rise of influencer driven advertising on platforms like instagram and tiktok as well. these are often content creators in partnership with brands. do you see gen a.i. impact that as well? that has been an area where brands have gone for authenticity for example? >> it is unbelievable. i like to say if the mobile phone turned everyone into a

creator, gen a.i. turns are one into an ad agency. you have 250 million people making a living in the creator economy. the text-to-video and models are getting amazing. you will see the creator economy on steroids. it will be a game changer for the industry. >> i was wondering what it was like in the moment in terms of investments? we actually mentioned one of the conversations we will have tomorrow on cnbc pro, a couple of investors that are concerned there is just too much cash in a.i. what i like to understand from your point of view, have you struggled recently in any fundraising event? what is it like? are we seeing a little bit of a start with fatigue in the investment community? >> the reason that's going on and the best analogy imagine you

are looking at human flight and watching earlier attempts at human flight and they built the contraption and fly 300 yards and plummet to the ground. it is impossible to imagine passengers flying around the world and jobs like air traffic controllers and pilots and the workers at the airport taking the liquids out of our bag. the biggest luxury retailers shopping at airports. what everyone else believes this is a giant industry. i sit on the side of anyone saying all of the money going into this, it is a bigger shift in the world in the industrial revolution and bigger in world marketing and television combined. >> it is interesting you say that. it is the momentum and consensus we're getting in terms of the

re-election of donald trump and what he will mean for tech and what it will mean for cryptocurrency. what do you think he will mean for a.i. as a whole and in terms of regulation? how are you preparing for potential changes there? >> look, i think anybody who tells you they know is lying. i think we have absolutely no idea. the only thing we know is it will be super unpredictable. if i were sam altman, i would be worried. elon musk is now donald trump's right-hand man and favorable to openai. honestly, i don't think we know. you saw him change his mind on tiktok and the one consistent thing about him, love him or hate him, has been total unpre unpredict unpredictability. >> arjun has one more question. >> there are a number of challenges. we think about the hallucinations we deal with with the large language models, et

cetera. when you try to create advertising around a brand, how are you dealing with those challenges? >> i think you are absolutely right, but also the speed of progress is remarkable. our pencil platform back in 2018, 1 in 10,000 ads, today you can use 100% if you want. the issues with generative a.i. is not an issue because the human in the loop can make sure it is sorted. we have a tool called bias breaker to build in diversity in the imagery coming up. it is areas like climate and energy required which i think a lot of people are working on solutions for that. i honestly don't think the biggest issue is hallucinations. >> david, it was a pleasure speaking with you. let's touch base in 2025 to see how things are going.

david jones of brandtech group and our arjun kharpel. and mayosi son is investing 00 billion into the u.s. we will bring you the latest after this break.

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welcome back to the show. the softbank ceo masa son announced $100 with billion into the u.s. in the next four years taking to the mar-a-lago to make the anouncementannouncement. son and trump took reporters through the move. >> i would really like to

celebrate the great victory of president trump and my confidence level to the economy of the united states has tremendously increased with his victory. so, because of that, i'm now excited to commit this $100 billion and 100,000 jobs into the united states. >> this historic investment is a monumental demonstration of confidence in america's future and it will help ensure that artificial intelligence, emerging technologies and other industries of tomorrow are built, created and grown in the usa. one of the beautiful things about masa is he is very much emerged in the technology. knows it better than anybody. >> trump met the tiktok chief on

monday and comes as the app seeks to overturn the ban in the u.s. to come into effect on january 19th unless it divests from its chinese parent company bytedance. trump's team has a rollback of the ev policy. the move to see support for evs and further measures introduced to block cars, battery materials and components from china. the report says other measures the table include ies globally with negotiations individually with allies. and china's budget is highest on record which is up from 3% this year according to reuters. officials reportedly agreed to set a growth target of 5% in line with this year which the

country is on track to hit. the targets are not usually announced until the parliament meeting held in march and could still change. let's discuss this in more detail to see if the president-elect trump's tariffs plans are in focus with the head of research at ashmore group. good to have you on the show. i like to put all of that into context, into perspective, as we look at 2025. you have the threat of tariffs from the united states. you have the fiscal stimulus from china that so far keeps disappointing the investment community. what is the outlook for china in 2025? >> thank you very much for having me, silvia. great to be here. it's kind of a complex and ambiguous scenario and situation, right? i think the chinese fiscal stimulus has been almost, you know, announced or pre-announced in september, but keeps disappointing precisely because

the size of the stimulus and detail of the stimulus will be continued on the trade war. they want to have a buffer to counter whatever comes in terms of headwinds from the potential trade war in q1 2025. that is why we haven't specific specific numbers, but we get alerted to it from china and they want to backstop. the way we have been framing china since september is you should like the chinese micro story. you should like chinese stocks, but it is a bit too early to be bullish on the china macro story. >> tell us about the scenario there. you say the chinese stocks are supported in a trade war scenario. tell us is this across the board? any specific sectors? what is the narrative here? >> i think in a nutshell, china needs to increase the share

consumption vis-a-vis and export economy. the trade war will push them to accelerate that. we like to see is for further measures, for example, increase pensioners wages once they retire or increase healthcare provided. that would actually lead to lower savings rates than would stimulate the economy on the consumption side. the trade war is something that would lead china with action. this is the rebalance of the chinese economy. we haven't seen the details. we can't anticipate that. i think that is the direction of travel for 2025. >> let's talk about mexico as well. what is the outlook there? when you hear the president-elect announcing tariffs for mexico and looking at the links between these two economies here in terms of trade, what is the outlook? is there any part of the mexican market that can actually survive to some extent tariffs from the

new incoming administration? >> look, i think tariffs on mexico are likely to be temporary and very much targeted because at the end of the day, the north american supply chain would be disrupted if you announce 25% tariffs on mexico across the board. therefore, our view has been that tariffs will be a mechanism of getting a deal with the countries that trump is negotiating. above all, we actually think this time around this is a more comprehensive economic policy around that. for the u.s. to reduce the external debt, they need to have fiscal consolidation. if you look at the combination of policies and the fact that we wouldn't have any discussion of tax cuts, it would be 025 and 2026 and beyond. we will get some consolidation. we think that anything that comes to mexico is going to be

temporary and going to be targeted. at the end of the day, most of the negative environment for mexico took place with the mexican election and u.s. election. that was the time you had uncertainty about policy with mexico with the supermajority in congress for a month and you had some of pet projects approved which were seen as negative to the market. the implementation of the changes would be done by the pragmatic administration in our view. also, you have obviously in the run-up of the u.s. election the threat of tariffs or fear of tariffs. that impacted sentiment earlier. i think most of the negative environment is already behind us. >> okay. >> obviously, we still have headwinds and this threat hanging on. you can see the reaction with the president of mexico immediately after the 25% discussion was quick and trump actually reacted satisfactory to the call. >> i want to ask you, speaking of fiscal discipline or lack of it, i want to ask you about brazil. any sectors there that you would

highlight as opportunities in 2025? what is the outlook there? >> i think brazil is likely to do a marginal fiscal consolidation vis-a-vis one compared to today, but one easier to pass in congress. you have the negligence tough sentiment weighing in there. there are greater opportunities there. we were just talking about a.i. you have companies in brazil providing i.t. services for enterprises. that trades at discount to the history. obviously, a higher discount rate on the form of higher interest rates and people are not very keen on brazilian stocks at the moment. both local and international investors. you have high quality companies trading at discount. you have the banks and well managed companies in brazil with good opportunities. you have to look through the

noise. >> pleasure to speak with you. let's speak again in the new year to see how we are moving in emerging markets. head of research at ashmore group. speaking of south america, we are getting comments here in terms of the eu trade deal. italy is saying it will not support the eumercosur deal without changes. the prime minister of italy asking here for changes to the trade deal. let's see how the european commission is going to react to this, but nonetheless, when you put the comments from italy in context with what we heard thus far from france, both countries here on the same page. together, they could actually push for some changes here. let's see what will happen. no doubt, it is an important story to monitor as well. was approach the end of the show, here are the four things to get you up to speed ahead of wall street. the fed kicks off the two-day

meeting today. nvidia es are in focus after falling 1.7% yesterday and contraction territory. still up triple digits for the year. worldcom is continuing the rally up 11% yesterday. bitcoin topping $107,000 for the first time. meanwhile, a final check on the european markets. we are down this morning and that is mostly the mood within the investment community in europe. the ftse 100 is down .60% after the strong wage data arlier today. that is it for the show. i'm silvia amaro. stay with cnbc. nt.ldwide exchange" is coming upex

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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 fed kicks off the final meeting of the year with nearly u man in must expectations for a rate cut for 2024. the dow riding the longest losing streak. it's a different story for nasdaq. and broadcom with a new high and nvidia slide hits 10%. why micro strategy founder is calling