and were survivors. ♪ good morning and welcome to "street signs." i'm silvia amaro and these are your headlines. european mining stocks under perform in early trade after china's csi 300 posts its worst week in more than two years as a reported plan for pboc rate cuts fail to impress. president joe biden decides to block nippon steel's proposed $15 billion takeover of u.s.

steel with the official announcement possible as soon as today. and investor attention turns to washington as lawmakers gear up to pick a house speaker in the key test of president-elect trump's influence. and the autos near the bottom of the stoxx 600 after italian car sales plunge and tesla with the first annual sales decline. very good morning, everyone. we start today's show taking a look at european equity session and how we have moved so far this friday morning. european equities have been trading for just over an hour and thus far we have the stoxx 600 in the red down .40%. this marks a shift from what we witnessed on thursday.

we actually had the stoxx 600 up on the day with gains of about .60%. we are witnessing something different today. let's dig deeper and take a look at the different bourses across the european couldn't nent and get a better idea of what's happening here. we have all of the major bourses in the red at the moment. the xtra dax down .50%. more pronounced moves over in france with the cac 40 down down .90%. there's a couple of reasons behind this. one of them is actually the weak performance we witnessed in china. we'll discuss that in more detail later on in the show. before that, let me show you how the different sectors are faring at the moment. starting with the best performing sectors. we have financial services at the top up .40%. oil and gas tracking higher by similar levels. oil and gas continuing that out performance to some extent.

we had also witnessed on thursday they were the sector that was propelling the stoxx 600 and that is one of the similar stories we are witnessing also today. i want to take you to the worst performing sectors. it is where the most important market story is at the moment. autos. we are down 1.2%. it is the worst performing sector at the moment. we're thinking about basic resources and we're also down almost 1%. indeed, we have been looking at investors digesting the weak a out of china since yesterday and concerns about what the possible trade war with the united states could mean and, therefore, all of that could have ramifications for european stocks as well. i want to take you to the u.s.

futures to see how we will open later on today. futures suggest a positive start to the day. mildly positive start to wall street. this comes after what was a lower session on thursday. we had the s&p and the nasdaq ending down on the day as well as the dow. it was down about .40%. now, one of the key highlights for markets yesterday was weekly jobless claims. let me run you through what we obtained. in terms of latest figures, they hit an eight month low coming in at 211,000 ending december 28th. that's 9,000 down on the week and below forecast. the figures add to a flurry of data points indicating consistent strength in the economy bolstering market narratives that the fed could cut rates less than expected this year.

now, the dollar hit a two-year high on the back of the news. i'm pleased to say ron william, chief investment officer and strategist at rw advisories is joining us today. good morning, ron. good to have you on the show. i like to start with the dollar. once again, the dollar strength is a narrative for the markets. we have seen no change from 2024 and the start of 2025. just guide us through the outlook here for 2025. is this story likely to continue? >> 2025 is likely a non-consensus extension year from the one that passed where a lot of the exuberance and risk-on performance starts to unwind from overall conditions. certainly, part of that story has been the trump 2.0 discount

in the market which now is unwinding as we speak and certainly the range of markets represent that. s&p, bitcoin as well as the u.s. dollar in terms of some of those momentum trades. on the dollar side, that is looking like it will unwind short-term tactical and over the next few months start to correct some to the down side and ultimately a flat-to-weakening u.s. dollar expected. also keep in mind the impact of fmoc and how that might influence interest rate differentials. >> thinking about trump 2.0 and thinking about fed as well, yesterday when you think about the performance of wall street, we were down on the day across the three major indices. i'm wondering if this is actually setting the tone for

2025. >> as the year starts, so the year follows, that's part of the seasonality pattern known as the barometer. it is certainly an early indication of what's to come and certainly the sentiment and confidence in the market. given that we did already have an exuberant 2024 year that has passed, that's record momentum and positioning levels, we're likely to unwind a little bit from the overextended extremes and certainly the s&p 500 is the case in point with the momentum and fragility and bearish cycle confidence. right here and now as we look at the chart of the s&p 500, we can see the election price gap at 5,860 as a key stress test for

the market. keep in mind, the election playbook buy the rumor and fade the fact as we go into the january 20 inauguration, that's a combination as mentioned by the pressure overbought momentum and policy stress test for the first 100 days of the new president elect. >> however, i would like to discuss this in more detail. when you think about the s&p 500, their out performance has been dominated by big tech. we are talking about all of the hype around a.i. and the investment community is still very much bullish on that. how can you expect a potential reversal here of the future for the s&p 500 when that market narrative is still seem so strong? >> great question and with all market drivers and narratives, they rotate and certainly the thesis of the triple whammy

headwinds includes that. momentum exhaustion and fragility and bearish cycle con confluence. we may have a strong concentration risk in terms of tech, a.i. and this time may be different, but nothing moves in a straight line forever and of course, markets will unwind in stages of cycles. we already saw that last year. a temporary unwind in tech. nvidia, alone, which is a big part of the tech story, was down 30% plus. we've been there and done that and that can happen again in 2025 which on the one hand spotlights the fragility, but on the other also beckons the question what new leadership could follow and i think that will be the new emerging story for 2025 and new leadership

which either way will lead to a likely unwind in the market which is overdue with a new lead to likely follow. >> talk to us about how that lead could look like. where could it come from? when you think about that new leadership, describe for us how that could actually take place. >> certainly in a market correction set up, the laggards will likely play catch up. so, perhaps, value, defense, but my money is bet more on commodity play in terms of the general overextended positive set up for commodities, but also the likely inflation resurgence that we see ahead of this year, essentially. and that, of course, looks back at some of the stickier

inflation that has come out recently, but also some historical and in analogs we'rg on. >> thank you. we will see how it shapes out. that was ron william at rw advisory. elsewhere, u.s. president joe biden has decided to block the sale of u.s. steel to nippon steel according to reuters and washington post which say an announcement is planned as soon as today. lynn lynn filed this report. >> reporter: after more than a year after the takeover bid was made public, reports suggest it is set to be blocked by president biden. it comes after the national security review could not come to unanimous decision despite ances from nippon to ve

the u.s. government veto power. the context here is key. the takeover approach is unfolded during a politically charged election stateside and involves an iconic business involved with u.s. economic power. the company is also headquartered in a critical swing state and has from the get-go faced strong opposition from the steel workers union as well. so, what we saw then was joe biden and president-elect trump opposing before and after the elections. in terms of the implications for u.s. steel, the ceo has said if the acquisition isn't approved, it could lead to the closure of steel mills and, therefore, job losses. he has said in the past this deal is all about the company confronting today's realities that u.s. steel is no longer an industry leader and it needs to stay competitive.

for nippon, they have to look elsewhere for growth and have to deal with a hefty reverse break fee as well. not to mention the chilling effect some analysts say this could have on japanese investment into the u.s. in singapore, lynn lynn, for cnbc business news. and coming up on the show, chinese markets continue to struggle as traders stress the reported plans from the pboc to cut rates this year. we'll bring you the details after this break. ah, these bills are crazy. she has no idea she's sitting on a goldmine. well she doesn't know that if she owns a life insurance policy of $100,000 or more she can sell all or part of it to coventry for cash. even a term policy. even a term policy? even a term policy! find out if you're sitting on a goldmine. call coventry direct today at the number on your screen, or

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welcome back to the show. let me show you how chinese bourses fared earlier today. we were actually down across the board for most of the chinese indices.

the only exception being the hang seng up .70%. i would like to focus on the csi 300. as you see there, we were down by more than 1% on the day, but week to date, we are also down more than 5%. this is actually the biggest weekly loss since october 2022. indeed, investors are focused on the fact that yesterday we got weak manufacturing data for the chinese economy. so investors are disappointed with the numbers we obtained. on top of that, there are ongoing concerns about what a trump arrival in the white house could mean for the chinese economy as well. on top of that, when you think about the ongoing discussions for the fiscal stimulus for china, ultimately, the lack of detail is there and the community is wonder fog we ing will see it. i want to give you more detail

in terms of what we heard today in relation to the chinese economy. the people's bank of china is reported to cut rates this year as it aims to align a little bit more policy with the federal reserve as well as the ecb. this is according to the financial times which says policymakers are looking to cut rates at an appropriate time this year and move away from quantitative loan objectives for growth. chinese rate, the main pboc main policy strument, is currently set at 1.5%. elsewhere, china is including smartphones and smart watches in consumption subsidies to promote domestic spending according to bloomberg which says by widening the trade-in program, beijing hopes to bolster demand and counter defects of any u.s.

tariffs on exports. clearly, the authorities have started to think about what this could mean, the tariffs could mean for the chinese economy. we don't have that detail from the trump administration yet. the u.s. treasury department aims to address national security concerns and under the new rule, u.s. companies that invest in chinese semiconductor, a.i. and quantum computing firms, that would face criminal penalties. at the same time, they added 28 companies to the export control list as it aims to safeguard national security and interests. our own sam vadas filed this report. >> reporter: chinese stocks on the weakest start to the year. bond yields touched fresh record lows.

china reiterated the increase of funding to fuel growth, but investors are waiting for more substance. china has slapped 28 contractors on the export control list including boeing and lockheed martin. it means the trade of the dual-use goods will be banned and they have to apply for permission to ship the items. ten contractors have been placed on unreliable list over the u.s. arm sales to taiwan which china doesn't like. that means these companies will be banned from trade making new investment in china and executives will also be blocked from entering the country. the big question, of course, now is how much of an impact does this have on the defense business and whether it will affect commercial side now. in a separate move, china is now talking about expanding export restrictions on the use of

batteries and critical use minerals. some expect this to help china on lithium, but also impact the expansion plans of the companies. aussie lithium miners fell in trade today and this could throw a span in the works. in singapore, sam vadas, cnbc business news. to focus attention on the spanish economy, the december unemployment in spain is .98%. it leave 2.6 million people out of work. this is on the decline with particular concerns surrounding france and germany. this means a lack of focus on expansion area policies and

continuing trends of growth. for the full article and contrasting views on what action the ecb should take, head online to cnbc.com. you have the article there from holly elliott. i'm pleased to say we have our guest joining us. where to start when you think of europe in the moment. so many angles we could take at this stage. what i would like to understand to start our conversation is how you are feeling about the outlook for european economies. we know the ecb is expected to cut rates this year, but is that going to be enough to propel the economy? >> happy new year. no, ecb rate cuts will not be enough to bring the economy back to trend growth or above that. aving said that, southern europe especially, are growing

nicely. the ecb rate cuts last year will help, but we need political signals from germany and france to really get the economy going again. in addition, china were to add more stimulus, that would also help. >> when you think about france, i'm glad you brought up the issue there. we heard from the president macron actually say the calling for a snap election created more division than bringing solutions. should we, at this point, actually forget to some extent what france is likely to do at the european level because it seems that the president is actually quite weak at this stage and when you think about the fact that we actually need a little bit more french input to see significant policies at the eu level, it seems we are lacking that. explain to us the lack of leadership in france and what it

means for european policy. >> macron has now admitted he called for a snap election was a mistake. still europe can make progress if france is politically paralyzed. the key thing is whether germany is ready to drive the european agenda forward on some issues such as dealing with trump in terms of trade policy, it's the eu in the driving seat and france is not that important. on that angle, europe can probably deal with trump, but on the major political issues, it needs german leadership. the best to hope from france this year is that it does not get in the way and it does not block anything serious on the european level and that in terms of domestic affairs, france gets sort of a budget. doesn't matter the details. it needs a budget and should avoid back tracking on the

reforms that macron implemented. the best we can hope is not much happening and the focus is on germany and we hope after the snap elections something will happen, namely economic reforms to promote the country. >> how significant do you think those reforms in germany are actually going to be because the comments i've seen so far from german politicians and thinking about the polls as well, we are unlikely to see a massive change or massive reform of the debt brake. are we going to see fiscal expansion from germany in the near future? a significant one? >> i think the focus on the debt brake and fiscal expansion is the wrong focus. germany will probably grant itself a bit more fiscal space with the reform of debt brake. the key is german companies start to invest more in the country. that is not a matter of the debt brake. that is a matter of doing away

with regulations. that is a matter of using a little bit of fiscal space to cut business taxes. so, i do hope that the new government will actually do that and, if so, even if the fiscal space will be limited by a modest reform of the debt brake, then the private sector companies will spend more investment and german consumers, which have been put off so much by a long period of political uncertainty, political wrangling, i hope they will also open their purses. the new government ending political uncertainty and modest reform of the debt brake will propel germany. >> interesting. speaking about businesses and politics, perhaps you can give us a little bit of color in terms of how you read the comments from elon musk giving

his support to the afd. is that likely to change or impact the narrative in the german election at all? >> i don't think this will have very much of an impact. it is basically those people who think about voting afd do not really care that much about elon musk. we know he is a great entrepreneur, but some of his political comments about the riots in the uk last year were really, really far away from reality. the key thing is whether in germany, the standard parties or mainstream parties, can explain to the people to get out of the current economic stagnation and how they want to deal with the russian war with ukraine. the mainstream parties would mean the german afd stays at roughly 20% which is less than

right-wing parties are almost everywhere else in europe. >> from the business point of view and economic point of view, where do you think germany got it wrong the last couple of years? obviously, when you think about the upcoming election, one party will blame the performance or weak performance of government and vice versa. they will not be admitting to mistakes here. i would like to know from your point of view where did things go wrong? >> well, germany enjoyed a golden decade in the previous decades as a result of pro-growth reforms it had some 20 years ago. the problem is when germany did so well, it became complacent. it did not follow-up with further reforms. it just laid back thinking everything is fine. as a result, the competition has become stronger. other countries such as france have kept business taxes. germany has not. germany thought it could afford

more regulation. it could afford more do good here and do good there. so german comply placency is changing. also from other european countries and the u.s. got stiffer. german complacency is the reason. the hope for the future is by now most parties in germany realize that this complacency was a mistake. they finally need to do more or to act once again to make germany a better place for business investment. we see the result of the electric, election, but most likely get a proper-growth program. >> i guess that complacency we would look at it from the european angle. we will speak again later in the show. in the meantime, i want to give viewer what is is coming up. investigators fail to

impeach the south korean president han duck-soo with a standoff with his security team. we'll have latest after this break.

welcome to "street signs." i'm silvia amaro nd here are your headlines. perform in early trade after the csi 300 posts its worst week in two years as a reported plan for the pboc rate cut fails to impress. u.s. steel slumps pre-market and president biden decides to block nippon steel's proposed $15 billion takeover. investor attention turns to washington as lawmakers gear up to pick a house speaker in

president-elect trump's influence. and stellantis trades near the bottom of the stoxx 600 after italian car registrations plunge and tesla sales decline. time now to get a check on how european equities are moving and thus far, it has been a weak start to the trading year of 2025. at the moment, we have stoxx 600 down .20%. we were down a little bit more earlier in the session, however, though, what is interesting at this moment is how it is a different story from what we witnessed in european bourses on thursday. we actually had the benchmark up .60%. today, though, we are down. one of the reasons behind that is actually the weak performance that we saw in chinese equities

today. that has actually had a little bit of an influence in terms of how european equities are moving this morning. let me show you how european bourses are trading. a big dip in what is happening on the european continent. as you see on the screen, we have all of the major bourses in the red. more pronounced moves to the down side in france with the cac 40 down .60%. that weak performance of the cac 40 was also one of the stories of 2024 when you think about the overall performance of the bourses on the european continent, we saw pressure on the cac 40. at the moment, that continues to be the case. i want to show you the different sectors so you get a better idea of what is happening on the corporate front as well. the best performing sector is financials up .60%. oil and gas is up by .50%. continuing the positive trend we

also saw on thursday off the back also of slightly higher oil prices. but it is in the worst performing sector i would like to focus because again that is where the most important market narrative is today. autos down more than 1%. basic resources were also down 1% at this stage. again, investors digesting the weak data we obtained from china on thursday on top of that trying to understand what is the outlook here and we know that weak chinese economy could have repercussions for european auto names and luxury names, too. that is, no doubt, the market narrative this morning. in terms of wall street, this is show we are likely to open on wall street today. they suggest positive start to the trading day. another changing narrative for the u.s. stock market after what was a low day on thursday.

we had all of the three major indices down on thursday. perhaps we will get a different picture today. that is what the futures are telling us today. however, th keeping in minds it is a thin trading day. you are looking at live pictures -- i want to show you what is happening in korea at the moment. this following an hours long standoff in which south korean authorities failed to execute an arrest warrant for the impeached president yoon over his brief imposition of martial law. on the screen, you see actual supporters of the impeached president outside the presidential palace. now, our very own chery kang filed the report. >> reporter: suspended the attempt to arrest president yoon for now. this comes after hours of

standoff between investigators and the security service on friday. yoon's legal team said the corruption investigation office for high ranking officials that wanted to execute the arrest warrant doesn't have investigate tough rights in this case. if yoon is arrested, it would be the first for a sitting president in the country. the warrant is set to expire next monday. the investigators are pursuing the case on allegations of insurrection and abuse of power over the december 3rd martial law. the ruling party welcomed the fact that investigators backed off saying the investigation must go on without detaining the president. the opposition party floor leader urged investigators to arrest those who got in the way of yoon's arrest. separate, the constitutional court needs to rule on the impeachment. it has set the date for the

first argument for january 14th. i'm chery kang for cnbc. investor attention turning to the u.s. congress where both will reconvene for the first time this year and the house of representative will vote on the speakership. chris pollone from nbc news is joining us at the moment. chris, actually, i would like to just ask you to give us an update and expectation, really, of how this vote is likely to pan out later today. >> reporter: i wish i could tell you, silvia, that's the thing that's crazy. in the past, the vote for speaker has been very routine. generally gone quickly on one ballot. then two years ago, you might remember that it took four days and 15 ballots for republicans to elect mike mccarthy as speaker. now anything support for grabs. now with the smallest margin of

the majority that republicans have had. they hold a 219 to 215 majority. mike johnson, the current speaker, can only lose one vote and still win a majority. if he loses two votes, then it would be a tie if everybody votes. already, one representative, thomas massie of kentucky, said he is absolutely not voting for johnson. so, it's up in the air right now. we have no idea how this vote or votes are going to go today. johnson is expressing optimism saying he believes that at the end of the day he will still be speaker of the house. earlier this week, president-elect donald trump endorsed johnson for speaker after seeming to cool on him over the last few weeks. there was a budget battle in the last couple of weeks that president-elect trump did not appreciate the way it went. it seemed like he was cooling on johnson, but he did come out this week and endorse hum as speaker.

that doesn't sway some of the hard right members of the freedom caucus who oppose johnson for a variety of reasons. chief among them, they feel he has worked too much with democrats and hasn't been willing to cut the budget as much as they want the budget cut. they could really hold him over a barrel today and get concessions from him in order for him to become speaker. of course, the ramification is they need a speaker in place by monday otherwise the congress will not be able to certify the election results from the november election. >> so, no doubt, that makes it even more pressing. let's see what will happen later. thank you for the update. chris pollone, nbc news. senior u.s. treasury leaders were accessed by chinese state sponsored hackers during a recent cyber attack according to bloomberg. it gained access to unclassified material. elsewhere, 2025 could be a

crucial year according to berenberg. the key question is whether the west led by the u.s. is able to counter threats from the likes of russia and china as president-elect trump returns to the white house. i would like to get your thoughts exactly on that, particularly though, as we heard from our colleague from nbc news. ultimately, what we have is a divided political scene in the united states. we know that the support for donald trump is very, very strong, but how is that likely to influence the global geopolitical scene? >> first, it is likely to remember in europe we have divided political scenes, but we are, the global west, europe, u.s. and japan.

we heard about the economic problems of china. that is if we have the will to counter putin in ukraine. if we have the will to stand up to china, we easily have the means to do so. as to what trump may be up to, if he ever wants to have a chance to win the nobel peace prize, he should pressure putin to accept the peace deal acceptable to ukraine. if so, that would be great. if he manages to settle the conflict, i think it would also improve his domestic standing in the u.s. it would help a bit to bridge these big divide with between the two parties. so, in my view, trump, depending on which advicers he s to, he has the chance to heal the

wounds. or decide tariffs on everybody or a harsh clamp down on immigration and i don't care about ukraine, then a lot of things could go wrong in the western world. >> i would like to understand what are the odds according to you in terms of how likely this war can actually come to an end this year because you've highlighted there that it's one way or the other. we don't know what donald trump or president trump is going to do once he arrives at the white house. so, do you think there's a chance the ukraine war could actually come to an end in 2025? >> yes, there's a pretty good chance it could come to an end. both sides are exhausted. the russian side is gradually advancing on the ground, but with heavy losses. we see the exchange rate of the ruble. a bit of u.s. pressure on putin could get him to settle for the

acceptable to ukraine. if that is not the case, if, say, trump just pulls the plug on ukraine, then the war might end this year, but in a bad way with ukraine losing and that would mean waves of refugees coming to europe and discord in europe. i would hope that trump and his advisors realize the collapse of ukraine because of the lack of western help would be the worst possible start to his presidency and worst possible signal the u.s. could send to china. i'm slightly hopeful that trump will pursue calls in which he tries to coerce putin with more help for ukraine in which he coerces putin for something acceptable for ukraine. >> the other side, if the war is

coming to apparent n end, they have to spend as much money on that. i would like to understand what is the influence or lack of it from china in this whole context. what is the role they are likely to play when you think about the arrival of donald trump at the white house and how russia and china have been at least on a trade front working more closely together? >> well, china has been drawing closer to russia or more recisely, china has drawn russia more closely to it. in a way, russia is a satellite to some extent to china. i think with the trump tariffs ideas and unpre-dict ability, they have to not harm trump too much because trump is the one to respond with hefty tariffs on

china. in a way, china might now think twice about really helping putin more than it has done so far and that adds to this, you could say, window of opportunity. the new government in the u.s., the new president in the u.s., with the fresh approach trying to end the conflict in ukraine. all in all, china's role is not crucial, but giving china a bit of pause whether they really want to help russia as much might be useful and if china were to tell russia it is better to settle for armistice now. that could be helpful. i'm not sure the emperor in had china would go that far. >> no doubt. further busy times. we appreciate your time. chief economist at berenberg. coming up on the show, tesla reports its first annual fall in deliveries as fourth quarter figures disappoint.

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welcome back to the show. now to tesla. their shares are recovering thursday losses in extended trade after the fourth quarter vehicle deliveries missed analysts expectations coming in over 495,000. those results represent the ev maker first fall in yearly deliveries with the decline of 1% in 2024. arjun has more on the story. arjun, was it very surprising these numbers were down for the year? >> no, i'm not sure it is surprising t. has been a tough year for tesla. you have the fact they are facing increased competition, not just for the chinese

players, but also the european autos. also the price points are key. you see very affordable and competitive offerings competing with tesla. tesla still has not come out with a more affordable mass market offering. this is something the market is looking for. all in all, that was what was contributing to the decline in annual deliveries. interestingly, though, this morning a few hours ago, we heard from tesla china. they came out with numbers saying vehicle deliveries in china increased around 8.81% in 2024. bucking the global decline. that, perhaps, a little bit more surprising given the fact that was a market that was very challenged in terms of the consumer and in terms of the competition there as well. that's a bit of a positive and perhaps why you are seeing a little bit of a bounce in the shares this morning. >> let's see how they will

continue to fare. we know tesla shares have rallied not because of the business itself, but with elon musk and the incoming president. arjun, stay with us. we have a guest to discuss from the institute of the auto industry. good to have you on the show. my colleague was highlighting the numbers were not really a surprise, per se, but what do you think they tell us about the outlook for tesla in 2025? >> i think it will be challenging for them because i think it depends which market you are looking at. basically, they operate in three markets. u.s., china and europe. the really hitting hard figure was in europe. the sales figure fell by 24%. going up in china 8% and down in europe by 24%. undoubtedly with the connection with trump and musk, the u.s. will be fairly solid for them.

those are the three markets they operate in. by some of the global come pet to have competitors, toyota which operates with the three markets. >> what about the outlook for innovation for tesla in 2025? are we actually going to see them delivering on new models? they highlighted that's the plan. can they actually do that when they are facing such stiff competition across the world? >> i think it is tough to introduce new models. it does depend on the competitiveness of the price. there is a price war going on with byd and other chinese manufacturers. that does present a challenge to them. interestingly, tesla is kind of positioned in the chinese market is by comparison to the chinese manufacturer.

tesla is a brand that will be associated with them. when it comes to europe, it is a different situation. there is an issue, especially in the uk, with the retail customer just doesn't want electric vehicles at the moment. also in europe, through 2025 for the ban to take place in the internal combustion engine. it could do well in the states. i think it can compete in different segments in china. in europe, i think it has bit of a cklog. >> jim, it's arjun here. tesla's margin and how that has been pressured highly by this price car happening globally and china as well. also, when tesla introduces a more affordable mass market car which has the potential, again, to dampen margins further. how important is it for a new

model for tesla for them to regain growth? >> i think they need to -- it's a fairly bland vehicles they have in the product range at the moment. they need something distinctive to give them the tesla feel which was the excitement when the product first came out. people thought it was innovative and new. now everybody is producing something similar. i think that is the challenge for them. how do you continue to innovate especially with the existing technology? obviously, a lot of the vehicles have been produced today and their residual value in three years time when we move into the solid state batteries is very low. there is real apprehension with buying vehicles now. ev in three years time will be obsolete. that is the challenge. the change in technology and

power train will be an issue for tesla. if she stay they stay ahead of . >> where it lies is autonomy and full self driving. this is going to be huge if they are able to sell the software on top of the hardware which is the car at this point as well. the flip side of that is self driving still remains a way away in terms of regulatory approval and that being widespread. as you look at the landscape for tesla going forward over the next few years, how likely is it or do you have a view on when the self driving aspects of the story come to play out? >> i think the self driving is a long, long way in the future. we don't have the infrastructure for it. we don't have the infrastructure for the evs in most of the world. having the connectivity issue. the cyber threat. you see the situation in new orleans when somebody actually drove a car into a crowd and

that happened in nice and it happened in barcelona. when you get self driving cars and the models involved in that, it involves a cybersecurity challenge. therefore, it's a long, long way away from the point of view from governments saying, yes, let's have these things buzzing around when they could be hacked very easily and cause infrastructure damage and also the danger to human life. >> jim, let's see what will happen. we appreciate, however, your time today. president of the institute of the motor industry and our very own arjun kharpal. before we let you go, a final look at the european markets and how we are moving this friday morning. however, looking about the stoxx 600, we are down at the moment. the major bourses are all trading in the red with more pronounced moves to the downside over in france with the cac 40 down almost .70%. i also want to show you u.s.

futures and how we are likely to open on wall street later today. they will suggest it is a positive start to the trading day there despite the performance on thursday. it is thin on the data front today, however, to give you an idea, our u.s. colleagues will speak to the fed governor later today. fed president tom barkin is also set to speak. it could have implications on how stocks move in treasury markets. we shall find out. however, that is it for today's show. i'm silvia amaro. stay with cnbc. "worldwide exchange" is coming up next. do you have a life insurance policy you no longer need? now you can sell your policy - even a term policy - for an immediate cash payment. we thought we had planned carefully for our retirement. but we quickly realized we needed a way to supplement our income. if you

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it's 5:00 a.m. here at cnbc global headquarters. welcome to "worldwide exchange." here's your "five@5." stocks riding the longest daily losing streak in months. a sector shakeup showing a sign of things to come. why investors should be paying attention. shares of u.s. steel are plunging on reports that president biden has made a decision on the proposed $15 billion takeover by nippon. nearly one year since