i love you so much, and will love you forever." that's all for this edition of dateline. i'm craig melvin. thank you for watching. [music playing] ♪ very good morning, everyone. welcome to "street signs." i'm silvia amaro. here are your headlines. bracing for the french in the eurozone despite price pressures. the greenback hoefrs around the one week low as investors cling to hope that donald trump to water down his tariff threats despite the president-elect

dismissing such reports. the co-ceo of samsung says the south korean heavyweight plans to boost the a.i. strategy while welcoming the rival. >> translator: we compete with china a lot. it's helpful for us. from the consumer's point of view, they can get better products so i think we need competition. nvidia shares hit a record high just before jensen huang takes the stage at ces. >> our business is already $4 billion and this year probably on a run rate to 5 billion $5 b. really significant business. good morning, everyone.

we start today's show looking at all the action across the equity space on the european continent. at the moment, we have the stoxx 600 just marginally above the flat line. we were lower early the ier in day. that highlights the sentiment within the investment community. investors try to figure out what to do after the report from the washington post suggesting that donald trump could actually take a softer approach in terms of tariffs and the incoming president denying that report. let's see how this will develop over the next coming weeks. of course, as donald trump is also about to arrive at the white house as well. if we take a broader look at what's happening across the european continent, let's show you the different bourses at this stage and what is happening at the moment. we have a little bit of green in france with the cac 40 up .40%. the xtra dax marginally above the flat line. in italy and in uk, the bourses

are lower at the moment and this, indeed, ahead of the inflation print for the eurozone. we will get that later this morning. i want to show the different sectors to get a better idea of what is happening across the sectors. basic resources is the best sector up almost 1%. financial services also tracking higher by similar levels. i want to take you to the worst performing sectors, too. we have a little bit of pressure for the banking sector and insurance. we are roughly down more than .50% at the moment. healthcare is under pressure. we are particularly seeing novo nordisk under pressure within the healthcare space. let's see what will happen there as well. now, one of the main focus for the investors no doubt is the upcoming eurozone. we had the french coming in at 1.8% on the year in december.

that is slightly higher than the 1.7% recorded in november. we have at the moment euro tracking higher against the u.s. dollar. we are up .40%. this continuing the moves we had witnessed already on monday, but all in all, i would like to dig deeper and understand the dynamics. charlotte, the figures are coming at a time when the new government trying to decide on fiscal policy. any clarity there? >> we will see. there could be some positive news for the month on december. it is a slight uptick on november. 1.8% against plus 1.7% in november. it was still very much below that ecb target of 2%. that is a different picture from other countries like germany or

spain. some positive news. this is a bit of caution for the ecb for the next step. a slight rebound in energy prices and slight uptick in december which offset a fall in prices of manufacturing goods and food ices stabilizing. we are watching closely. still up 2.3%. overall, kind of positive news there. that may need to see the growth of 1% next year. we will wait until the next government. the new economy and finance minister giving hints where he wants the government to go. we will hear next week in the general policy speak. he said he is looking at a deficit between 5% and 5.5%. not targeting 5% like the

barnier government. they want around 50 billion euro in adjustment against 60 billion targeted before targeted by barnier. they want more spending cuts and tax hikes. they want to impact businesses and households. a lot of decisions for households at the moment because of the uncertainty politically at the moment. they are hoping if and when, big if and when, a budget for 2025 and the negotiations with the parties to see some common ground for that budget. then it would help unlock the economic situation in france. >> i wonder what the baby step approach is going to be for brussels and what the european commission is going to say about it. i guess we'll find out in a couple of months. we obtained positive news for france. let me show you the german numbers. german inflation came in hotter than expected in december.

the headline figure coming in at 2.9% which is above the 2.6% forecast and up 50 basis points from november. the uptick was driven by higher food prices and smaller fall in energy prices compared to previous months. investors will be on alert for the december inflation print later this morning. markets are expecting an uptick in the year on year figure expected of 2.4%. that is up from 2.2% in december. potentially dashing expectations, the ecb could cut as much as 100 basis points in the first half of the year. the u.s. president-elect donald trump shot down a washington post report suggesting he might scale back the tariff plans to only critical importance. that sent the greenback to a one-year low before trump called it fake news on his truth social

platform. i want to show you how futures are shaping up at the moment. they suggest we could be basically flat really at the start of the trading day on wall street. let's see what will however. we saw u.s. equities mostly higher. i want to dig deeper and take a look here at what's happening on the equity space with the head of european strategy at barclays. good to see you. >> good morning. >> i would like first your reaction on the comments from donald trump. as an equity strategist, how are you reading first the report suggesting he might scale back his approach on trade tariffs, but the fact the president also denied that report. how do you position the portfolio amid the confusion really? >> first, this is not coming ago as a big surprise or expectation for the next four years that we will have to deal with a lot of headlines and fluctuating

narratives. i see one of the issues for this year is how some of the trump economics will materialize. the market has been pre-positioning for the policies whether it is tariffs or deregulation. now we need to see how this is implemented and how things materialize and what it means for the economy. i think the news for integration might keep markets on the narrative. >> interesting. i want to show you how we are moving on the stoxx 600 because i feel the chart is very, very interesting over the last 48 hours or so. basically at the moment, we are actually above the level we had seen yesterday off the back of the washington post report, but you see that dip there. are markets actually ignoring the comment from donald trump basically saying he was denying that report? how do we interpret this move? >> look, i think you have to put this last couple of days of

bounce in europe in the back drop of significant under performance of equities last year. many stocks exposed to tariffs or trade uncertainties were the losers of 2024, right? look, i would say in the grand scheme of things, what we are seeing at the start of the year is a pretty decent environment. data is pretty okay in the u.s. not getting lost in europe. yes, there will be some hope that trump will be much more pragmatic with some of his policies and will try to preserve, i suppose, the economy in the u.s. to cause less damage to the u.s. economy as well. i think we should expect some degree of volatility into innovation there. look at the market today and could be up today and down tomorrow. you have headlines pointing. >> if today is any indication what what you just said, we are above the flat line.

tell bus how is us about the ou? do you expect more upside for the equities in 2025 with all of the bad news having been priced in already? >> yes, we do feel that in europe it is not that high. u.s. exceptionalism is the template for the year ahead. it is very expensive and it will be more tempered this year. as i said, the bar is not high in europe. valuation is cheap. if, a big if, if all of the trump economics are as bad as we feared, that could be bad for europe to catch up. we see the global cycle plays which have been beaten down on the expectation of a tough trump policy. we like tech and the consumer and discretionary and overweight on luxury goods last year. we are closer on autos.

we see the global second place in europe. it is hard to see the u.s. exceptionalism. we see potential for europe. there are a lot of cards in play for this year. look, i would expect a lot of volatility. we won't find out for some time what's really going to happen with the trump policies. >> i want to discuss sectors in more detail. before we get there, i would like it understand what do you think would be the out performer in the european indices in 2025 given last year germany outperformed the rest of the markets. is that likely to continue? is there more room to grow for german equities or is that likely to be overtaken by someone else? >> we like the dax. we like tech and autos. these sectors are part of the dax. we see the euro and potentially

this pro growth policy with the german election in february. one usual issue is what happens china. that may take more time. that should be quite supportive for germany. we have been cautious on cac. the french political situation is very, very complex to navigate and we don't see much reduction in the french market. we see some opportunities in part of the french market. as i said, we went back to luxury goods. >> exactly. tell us about that. why are you changing your position on luxury? i assume that is mostly french names. >> it is mostly french names. we have been bearish last year. we start to see it on the top end. we like the benefit from the weaker euro as well from the luxury good names. this is the view that china

would be less bad this year. again, let's see what plays out. we think there is a positive. we like the quality aspect of some of the luxury companies. there are long term owns in europe. the entry point is good here. >> i also see you cut your exposure to pharmacy. explain that move. >> we did that a few months back. clearly, we want to start the year with good positioning. we want to be exposed to the part of the market and benefit from the stronger back drop. we like the consumer in particular and we like tech. yes, we are less bullish on some of the bond proxies because we don't see yields coming down significantly. we don't see the support to defensive coming from lower bond yields. and the sector specific drivers that we are pretty unexciting for utilities. now we know healthcare had a

pretty significant move down before christmas on the back of novo. i have seen it well take time for investors to get confident to come back into the name. short-term is a bit of wait and see on this name. >> for the time being, we are witnessing the wait and see with the novo nordisk positioning. we'll speak again. thank you for your time today. coming up on the show, data shows uk retailers had a little less christmas cheer last year. we'll breakdown the figures and the latest house price data as well. join us after this break. (auctioneer) let's start the bidding at 5 million dollars.

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welcome back to the show. time now to look at the latest

data from the uk economy. grocery inflation rose 3.7% on the annualized basis in the four weeks ending december 29th with the sales growth of 4%. saw the strongest growth in the crucial holiday period. we have some of the shares on your screen right now. ,esco down 1.2%. sainsbury down 1.5%. uk retail sales grew 1.4% in the final three months of 2024 according to the british consortium. that figure not adjusted for inflation suggesting real term decline in goods purchase. non-food sales falling more than 1% on 2024 levels in the three months through december. staying in the retail space, next hiked the profit outlook for the fourth time in six

months on the back of the 6% jump in sales for the nine weeks up to december 28th. the retailer is seen as a barometer for the retail consumer and sees a pre-tax profit of 1.1 billion pound. the firm highlighting the impact on the budget of the balance sheet and seeing changes to the national insurance contributions and minimum wage will cost it more than 70 million pounds for the year and several retailers and companies overall complain bengal the complaining about changes in the budge. and according to data from mortgage lender halifax. prices dropped 0.2% on the month with the rise of 3.3% lower than economists expected. we have on the screen at the

moment the moves in the uk home builders. we see pressure for taylor wimpey and bellway is down 1.2% at the moment. i want to discuss the real estate market with tom bill head of research. tom, happy new year. good to see you. >> happy new year. >> the figures we obtained late last week suggest annual house prices have increased in 2024. explain to us the reason behind that what is happening in real estate? >> of course, this happens sometimes in housing markets. i think what you have this morning from the halifax with figures under what were expected, that's probably the second crack that's appeared in the uk housing market after the budget. the first crack we saw last week which was a drop in numbers of

mortgage approvals from october to november. you expect outside of mini budget and financial crises, you expect mortgages to decline from october to november. they fell. house prices are now sort of seem to be heading down if you are looking at halifax and nationwide and moving in the other direction. the other picture is a slowdown is in the post. inevitably the fact that the borrowing costs have risen due to the budget. >> when you look at the numbers, do you see any reason for concern or are we talking about, let's call it normal levels, at the moment? >> i think it is quite sustainable. we are not expecting house prices to crash next year for example. we recently revised down our forecast so they went from 3% to 4% next year or this year to 2.5%. we tweaked slightly and our prices have come down given the landscape we're in.

it is not catastrophic. 2024 in terms of what happens next. there is more downward pressure to come. people are sitting on mortgage offers that predate the budget that were offered at 3%. you can't get those deals anymore. that avoided a cliff edge. things tend to happen much slower. at the moment, it is out of sync. >> and how are changes going to affect the dynamics here? >> the one thing guaranteed to affect behavior is a stamp duty change. if we look at the years and the pandemic and holiday, in april of this year, the zero rate where you don't pay any, falls back to 125,000 pounds. similar for first-time buyers. transacting before the end of march are saving which is

understandably focusing on mind. that is another force that's affecting behavior and affecting people's decision at the moment. therefore, we expect to see a bit of a lull in the second quarter of this year in the housing market as people roll off as those deals lapse and the holiday or the change takes place. you could start to see a bit more softness in the market from the second quarter of this year. >> interesting. last time we spoke, i think it was around december of 2023. we are looking at the outlook for 2024. >> yeah. >> now that we are roughly a year after that conversation, what i like to understand is whether this is the moment for people to actually step into the housing ladder and actually purchase a home. back then, you told me it was a good time to buy because we were ahead of the general election. buyers could avoid that uncertainty. what is it like now at the moment? >> well, it certainly if you can

before the end of march if you are looking, there is a ticking clock to some degree. we are not expecting big double digit movements in either direction. it is a steady outlook in 2025 and beyond. most houses are bought because people need to move for jobs and schooling and that sort of thing. it's the discretionary. people hang on the sidelines more. what we are seeing at the moment, those markets that are driven by schools and jobs and all those things that affect life are performing okay. you expect to come off slightly which is mortgage rates notch above 4% which is a psychological threshold. those markets are performing well and people are confident to step into the market. >> i like to get your change on the market and we saw a lot of

reaction in the market for the home builders as a result of the majority. they have made it easier for people to actually own their property. are we actually seeing any meaningful changes on the ground? are we going to see any sort of increase in offering to consumers? >> well, politicians, i think, routinely overestimate their ability to affect how many houses are built and delivered in the country and they are applying systems are held up is the big problem when it's a very complex multilayer issue. i don't think we will see lots of houses suddenly coming online, but what are you seeing is people are finding it tougher to borrow money at attractive rates. of course, we have the change coming down the line. from the demand point of view, it is slightly more difficult since the october budget. >> just before i let you go, give us also your thoughts on the state of the rental market

for 2025? i talked a lot about buying, but what about renters? >> for renters, the problem continues to be around supply. we are looking t how much supply comes through. we have the renters' rights bill in the background which is gathering pace and more announcements coming this month. i think if we do see a few more landlords leave the sector, it would become tougher. you see most landlords who will leave have left. you will see value growth. it has been very tough for people trying to rent. in terms of that, we revised down our forecast for mortgages and up for rents because of the pressure on supply. >> we will see what happens at the start of the new year. we will see what policy changes have implications for the sector. we appreciate your time. tom bill head of research at

knight frank. uk chancellor rachel reeves is set to lead the delegation in davos this month. according to the times, reeves says she will head to davos to tell some of the world's biggest companies and investors that uk plc is burning bright. the canadian prime minister justin trudeau announced his resignation and he will step down as the ruling liberal party. trudeau said internal divisions said he would not be the best candidate in the next election. the former bank of england governor has been linked with the political role in canada. in a statement issued, he said he is considering running in the leadership election and he is encouraged by the support of mps from the liberal party. coming up on the show, the u.s. dollar hoefrs around the

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welcome to "street signs." i'm silvia amaro and here are your headlines. looking for the inflation print after hope the ecb could cut again despite price pressure elsewhere in the block. and investors cling to hope donald trump to water down his tariff threats despite the president-elect dismissing such reports.

the coceo of samsung tells cnbc the south korean heavyweight plans to boost its a.i. strategy and welcoming rivalry in the sector. >> translator: we compete with china a lot. it's more helpful for us with a lot of competitors. from the consumer's point of view, they can get better products. i think we need competition. nvidia shares hit a record high just before the ceo jensen huang takes the stage at ces outlining his intention to expand the company's reach in robotics, gaming and autonomous vehicles. >> our business is $4 billion and this year on the run rate of $5 billion. really significant business already. this is going to be very large. welcome back to the show. time now to check on the u.s.

futures. how are we likely to open on wol street in a couple hours time? let's get a check at the moment. they are suggesting moderately positive start to the trading day stateside. the s&p was up .50%. nasdaq finished the day up 1.2%. let me bring you back to europe and understand how we are moving this morning. we have the stoxx 600 just marginally above the flat line. we were lower earlier in the day. at the moment, indeed, we are tracking a little bit higher and investors try to figure out what to do with the information around what p is likely to do on tariffs, i should say. we had a report from washington post yesterday taking a softer approach, but the incoming president actually denying that report. i want to take you to the different bourses to show you how the different bourses are

moving ahead of the key inflation print for the eurozone later this morning. at the moment, we have a bit of a mixed picture. positive session over in france and in germany. however, the italian market and here the ftse 100, we are below the flat line. in terms of the corporate dynamics, let me show you how they are moving at the moment. starting with the best sectors. financial services at the top. we are at 1%. retail is faring quite well at the moment up almost 1%, too. let me take you to the worst perpforming sectors. we have seen pressure on healthcare this morning. those losses are extending at the moment. we have the healthcare sector down .40%. insurance and banking are also under pressure at the moment. we have the insurance sector down .30% and banking also down almost the same level. i want to take you to the asian

markets, too, and understand what happened in asia earlier today. so far, what we see in asian markets was basically a positive reaction to the fact that there were reports stateside that suggested that the incoming president donald trump could take a softer approach to trade tariffs. that provided relief to several asian bourses. we had the nikkei almost up 2%. the shanghai composite also finished the day up .70%. in other developments, tencent shares closed lower after the u.s. defense department added battery makers eatl to the list as well as china's largest shippingcompany cosco. tencent and eatl said the

inclusion on the list is a mistake. we saw the u.s. dollar continuing to hover around the one week low against the euro and sterling as the hopes that the u.s. president trump will water down his take on tariffs. this after the washington post was looking at planning for certain sectors. trump has denied those reports. the dollar has been on a tear since the fed meeting nd jay powell's comments that he sees fewer rate cuts in the year, in 2025, that is. let's discuss these dynamics with our next guest. dominic, good morning. happy new year to you. i would like to understand what is the outlook for the dollar here? we are basically witnessing a little bit of a change in narrative for the greenback off the back of that report from the

washington post. do you think this change in narrative is likely to continue? are we are track to see a softer dollar? >> good morning. happy new year as well and thanks for having me back. i think there are two competing things here. there is a more thematic story and i think that's very much in place. that revolving around the ongoing or i am mplementation o tariffs. it seems clear that is one of the key sort of policies that trump wants to pursue. i do think that feeds into a stronger dollar over a multimonth horizon. the other aspect is clearly the u.s. economic performance in relation to the rest of the world. from the thematic perspective, there is room for that to run and we will get another reminder of that on friday with the payroll numbers with a relate toughly stronger report. i think, however, from the

tactic sper perspective and we about this in long dollar positions. short positioning is at the largest since the pandemic. expectations have become quite extreme around tariffs and how quickly they are implemented. if you look at euro/dollar, it probably overshot to the down side. we think there is room for a tactical stabilization or rebound. medium term thematically, the long dollar story remains in place. >> interesting. it is on the euro i like to focus on the moment. at the moment, we are seeing euro/dollar at 1.04. in the run-up to the year end, we got a lot of comments suggesting the likely issue for the pair is parity. how likely is that narrative at the moment particularly when we

expect the ecb to cut further this year? >> yeah, it's a good question and i actually spoke about this with your colleagues just before christmas when there seemed to be a huge rush of people talking about euro needing to trade below parity. we obviously pushed back on that. our belief is euro/dollar go 1. that is enough to reflect out view in macro dynamics and tariffs. i think to get euro/dollar to trade through parity and stay there, you need a clearer divergence on policy. the ecb needs to bring in 50 basis points in cuts. that seems unlikely. we need to see the fed start talking about interest rate hikes which is still a low probability event in our view. our base case is the fed only

cuts 25 basis points in 2025. the ecb brings rates down to around 1.75% by the end of the year. based on our calculations, that would suggest another 1.5% or 2% downside on euro/dollar. you get down 1.01, but not break of parity is our pace case. >> interesting. when you read the comments from jay powell recently, he is sounding more hawkish going into this year than before. what i would like to understand here is what would it take in your opinion to actually see the fed increasing rates this year because their latest suggestion of two cuts doesn't sound like a lot. doesn't sound like we are too far from seeing increasing rates. >> yeah, ultimately, the dual mandate is clear. full employment and inflation running around 2%. where are we at the moment and how would that change and what would make them think they need to tighten policy?

on the job side, you need consistent jobs growth and inflation coming down. inflationary pressures above 3% or so. that would likely start to make the fed think actually maybe policy isn't as restrictive as we thought. to me, it is always that combination of labor market and inflation dynamics. we have seen how the fed has flipped a little bit. late summer last year, they started focusing on the risks of labor market weakness. that is subdued now. now focus on the upside inflation pressure and how much of a pass through there might be from tariffs. i think to start talking about cuts or hikes, sorry, that's not going to happen anytime soon. maybe as the year evolves, if that inflation pressure from tariffs looks to be more persistent and passed through to a wider range of goods or services, you might see more of

a discussion with hikes coming through. >> right. let's look at sterling as well. at the moment, we have sterling up about .40% against the greenback as well. what i would like to understand here is what is the outlook for sterling particularly when you think about the fact that the bank of england seems to be a little bit in the middle between what the fed is doing and the ecb is likely to do as well. >> yeah, i think the bank of england in some respects faces a much tougher dilemma than the ecb. growth is showing signs of softness, but inflation still looks pretty sticky, whether that's wages or core inflation or services inflation. i think the bank of england has a trickier task. i think for the time being, most of the bank of england and ecb members seem to be more focused on the upside inflation sk. yes, there is a worry of downside growth risk. i would say a lot of the survey

data looking more negative. some of the underlining data, the harder data isn't turning as much. the question is does that negative business sentiment feed into a much weaker economy or is that just the short-term reaction to the budget into tax hikes and does the consumer provide a bit more support. if we lean into the consumer doing quite well with higher real wages for example, that might cause the bank of england to stay on the hawkish side. i do think it is more tricky than some of the others. there is a much more difficult balance with inflation and growth risks. for the time being, we think sterling has a chance to out perform because rates remain higher. the bank of england hasn't pivoted yet and the uk should be more immune from the tariff threat from the euro area. we are still optimistic on sterling, but i see downside

risks in the months ahead. >> we will see what is the monetary policy from the bank of england. we appreciate your time. dominic bunning at nomura international. coming up on the show, nvidia ceo jensen huang uses his ces keynote speech to talk about oil sector growth. we'll bring you the details after this break. (auctioneer) let's start the bidding at 5 million dollars.

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welcome back to the show. now, as we approach the end of the show, here are the four things to get out up to speed ahead of the open on wall street. on the economic front, we get international trade and jolts figures stateside. the fed president tom barkin is due to speak later today.

on the corporate front, ulta ceo is retiring and will be replaced by the chief operating officer. our u.s. colleagues will sit down with the first on cnbc interview with the ftc commissioner lina khan as she prepares to leave the post. chinese competition is a good thing according to samsung electronics vice chairman and ceo who has been speaking exclusively to our very own chery kang. he is optimistic despite risks from the new u.s. administration. >> translator: we compete with china a lot. it's more helpful for us who have a lot of competitors. from a consumer point of view, they can get better products and better serving products so i think we need competition.

in terms of what sets us apart from the products, when the internet started, our promise was the future home was a smart home. what goes above that is anything, security related technologies that improved a lot. we are getting security related approvals and appliance security. basis is it's safe to use. also, it's not just samsung products connected. it's through various themes. it is not like i'm browsing wifi and connecting with my password. it automatically connects you once you connect to the smart things. it is technology called calm onboarding. i think it will be more ted as more technology is developed. >> give me your demand outlook for 2025. are you -- do you see consumers

feeling subdued across the board in 2025? is there a market that gives you a bullish outlook? >> translator: looking at the overall market demand this year through various forecasting agencies, i think the overall market growth is 2% to 3%. i think our mobile unit will grow 4%. in case of tvs and networks and medical devices, it is showing a slight growth from the slowdown. we set a goal of growing more than the market. we've made some strategies for that and we've been explaining new models to our clients recently. we expect a slightly higher growth than the industry. nvidia ceo jensen huang touted the auto sector and robotics as he addressed the ces. huang said he expects the

automotive revenue to grow in 2026, up 25% from this year. >> so, this is going to be a very large industry. i predict this is the first multitrillion dollar robotics industry. this business for us, notice in just a few of these cars that are starting to ramp into the world, our business is already $4 billion and this year, probably on the run rate of $5 billion. really significant business already. this is going to be very large. >> huang announced the company's expansion into high performance computing with the release of the a.i. super computer. it will cost $3,000 and is expected to be available in had may. >> artificial intelligence is everywhere. it is not just researchers and start-up labs. we want artificial intelligence as i mentioned in the beginning of the talk, this is the new way

of doing computing. every software engineer and creative artist, everybody who uses computers today as a tool, will need an a.i. super computer. i just wish, i just wish dgx-1 was smaller. you -- so, imagine, ladies and gentlemen -- [ applause ] >> this is nvidia's latest a.i. super computer. >> the speech at ces is already having some implications for pre-market moves. we are looking at micron shares up at the moment in pre-market after the ceo said micron makes

memory for the gaming chips. on top of that, we see uber shares as they expect to expand the autonomous mobility. look the at at the shares in prt many up 50%. and aurora innovation. let's see how these stories will evolve. for the time being, already having implications for some of those pre-market moves. let's discussion with this ben. ben, good morning. good to have out the show. first and foremost, i would like your thoughts on the speech from the nvidia ceo. clearly, investors are digesting this already. just explain to us the highlights and how much innovation has actually been put forward. >> one of my colleagues out in vegas and attended it said the press conference was like a rock

concert with 12,000 people in the vegas arena to watch jensen's keynote. you already highlighted the new gaming chips with very strong entry level pricing. the physical a.i. element with what they're calling cosmos foundation models. that will enable the training of self driving cars and the excerpt you played out, that could be an enormous market in the future. the training data they are talking about where you can understand the physical world so you can help robots and cars understand what's going on around them in a similar way to the large language models used in a.i. platforms and chatbots generate natural language responses is very important indeed. >> you made comments in the past suggesting there is a bit of

a.i. fatigue risk. what i would like to understand is whether you think nvidia ceo actually delivered on providing the market with more enthusiasm over a.i. going forward? >> well, i think nvidia is very much insulated from this a.i. fatigue problem. they are the people building these massive platforms that the hyper scalers delivering the platforms on. we do feel there is a certain amount of a.i. fatigue creeping in and ces is the lightning conductor for people going crazy about a.i. as a revolutionary and transformative technology, when in truth it has almost failed to generate that kind of real useful and beneficial apps in some cases. it's certainly not helped by products. some of the crazy stuff from ces. one example i'll give you is a barbecue called brisket. generative a.i. for cooking and

personalize recipes. that is not helpful as we get people to understand the real power of a.i. lies. >> i think i saw that one at least from a visual point of view. it was an interesting one. i would like to go back to the announcement on the a.i. super computer from nvidia. i would like you to draw comparison here between what we heard from nvidia and what other players are already trying to do in this space. >> i think the nvidia have gained such a foot hold in the marketplace, it is challenging for the others to catch up. they are all working as hard as they can. bear in mind, nvidia has the capacity with tsmc with the chips you need to build. no question they are building on the momentum already and pushing into new areas. creating the desktop computer they talked about which is

helping to get more accessibility to the nvidia platform itself is another way of locking people into what they're doing. i think they remain very strong. automotive, they talked about new partnerships there. toyota, for example, is using the orange chips for the development of their next automotive platforms. that's very, very important as well. >> before we let you go, i would like to understand what is the level of innovation we have seen so far from ces because investors want to know whether the investments in a.i. is actually bearing fruit. from hat we have seen so far from ces, is that the case? >> i think ces is a challenging show now. there are focus on automotive apparent home entertainment and tvs. we have seen developments in pcs with chip updates from qualcomm and others.

there's nothing like it used to be. i don't feel it is as disruptive as the show a decade ago. pet tech is launching a pet tracker. they are doing well. we have seen the intersection of agriculture and technology with john deere and autonomous vehicles which is fabulous. >> ben, we appreciate your time this morning. chief analyst at ccs insight. before we let you go, final look at european markets. we are hovering around the flat line really as investors are trying to understand what is the rhetoric out of the united states in terms of tariffs. that is it for today's show, however. i'm silvia amaro. "worldwide exchange" is coming up next.

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it's 5:00 a.m. here at cnbc global headquarters. welcome to "worldwide exchange." here's your "five@5." nvidia ceo jensen uang teases the latest a.i. frontier calling it a multitrillion dollar opportunity. investors and governments grappling with elon musk and his x feed and a warning what the next four years could bring. a developing story as port workers and operators meet for weeks to avoid a strike. and new development in china and u.s. trade sending shares in china sinking this morning.