that's all for this edition of "dateline." i'm andrea canning. thank you for watching. ♪ good morning and welcome to "street signs." i'm silvia amaro and these are your headlines. european equities trade in the green with the france's cac 40 leading early gains with the speech from the prime minister. bp weighs on the ftse after the energy giant warns it could book $2 billion in charges in the fourth quarter and says a slump in ing margins will

hit profit. some respite for rachel reeves as it claws back rebounds with the stoxx 600 on the back of divergence results. and middle east leaders meet with a final peace for gaza as u.s. president joe biden ways israel and hamas are on the brink of a deal. good morning, everyone. let's start today's show looking at all the action across the ykt space across the european continent. we are in the green. the benchmark is up .50%. indeed posting a different narrative from what we witnessed

on monday with the benchmark ending the day down .50% as well. all in all, there is a lot in the minds of investors. we are looking at lower yields for the time being after the recent selloff on bonds. on top of that, recent reports as well suggesting we could see a gradual approach in terms of tariffs from the incoming president in the united states. on top of that, of course, the all important cpi print due tomorrow in the united states as well. all of that is in the minds of investors today. let me show you how the different bourses are moving. let's get a check. we have all of the major bourses in positive territory. we have the cac 40 in france leading the gains for the time being. we are up almost 1%. this, however, ahead of the very important speech from the new prime minister highlighting potential changes to the pension reform. the recent pension reform as

well. let me show you the different sectors to get a better idea of what is happening on the corporate front. this morning, we have tech up 1.3%. autos also tracking quite high at similar levels at the moment. indeed, some of these moves are related with that report i mentioned to you earlier where we could actually see the u.s. taking gradual and softer approach to tariffs. worth keeping in mind this is actually the second report that highlights that potential approach from the incoming administration. so, perhaps investors here taking a little bit of comfort from the fact this seems to be a growing narrative as well. we shall find out once donald trump is at the white house. in terms of the worst performing sectors, we have oil and gas at the bottom. we're down .40%. some of the moves here are also related to company news. we heard from bp earlier today. retail also under pressure.

we're down .30%. i also want to take you to how we are likely to open on wall street later today. we are looking at u.s. futures for the time being. they suggest a positive start to the trading day stateside. this after a mixed session on monday. we had for instance the s&p and dow ending the day in positive territory, but look at it. the nasdaq ended the day down .40%. we are seeing a little bit of pressure for some tech names. in ther developments, donald trump talked about the january 6th attack on the u.s. capitol according to the u.s. special counsel jack smith. he said trump spread false narratives about election fraud and argued if it wasn't for trump's re-election that prevented the prosecution from moving forward, the case would have ended in the president-elect's conviction.

smith's 170-page report defending the investigation into the trump efforts to maintain power after losing the 2020 election was made public earlier this morning. now donald trump's economic team is weighing tariffs gradually on a month by month basis according to bloomberg which says the president's advisories says a duty of 2.5% a month instead of all at one would help a sudden spike in inflation and boost washington's leverage in trade talks. the incoming trade secretary scott bessent was among the plan's supporters. now the white house saying it will cap the number of the a.i. chips allowed to be exported out of the country as it seeks to keep advanced technology between it and its allies. this comes as the biden administration enters the final

week in power with gina raimondo says the plans will safeguard the u.s. position as a global leader in the chip design. it will see cloud service providers with authorization to export chips outside the u.s. investors eyeing the next big or out of the u.s. with the rate cut expectations following the jobs report. the u.s. producer prices expected to show an uptick showing 3.3% on the year last month from 3% in november. core ppi, ing food and energy is expected to jump 3.8%. in the meantime, robert holzmann would not like to see interest rates lowered too quickly adding core inflation is still higher than the central bank target of 2%. let's get a check of how

european bond yields are moves. we are seeing it is very clear on your screen right now that we are seeing lower moves across the european bond yield space. i have to focus and particular really on the benchmark. we are looking at the yield on the ten-year bund tracking at the moment 2.591. let's see what will continue to happen here, but no doubt, a lot in the minds of bond investors trying to gest what's happening stateside and the controversial comment from the ecb official with the contrary yan view from what we heard from one of his colleagues yesterday. let's discuss all of this with lindsey james at quilter. lindsey, good morning. good to have you on the show. >> good morning. >> there's a lot we could talk about, but i would like to focus first on this recent increase in bond yields. we are seeing a little bit of a softer approach today, but nonetheless, how much do you think this will actually be

driving the market narrative in 2025? >> well, i think it's the most important question on investors lips at the moment and that's partly because the start to the year we've actually seen, we've had weak equity markets in the round. we've seen a lot of attention, particularly on gilt yields. rachel reeves has been lambasted to go to china on longer trade deelsz. deals. there is a case the media is smelling blood. there is more talk, of course, about tax rises. tax rises got us into the situation in the first place. so, i don't think we'll see the story go anywhere short-term. >> i want to share this comment from you. we have been hearing from companies and prepare the comments for the viewers. highlight the message. i found the narrative similar across all of the companies. if i take a look at what indeed

said, ies slow more than similar countries. hiring headwinds. higher than the budget. this is after what the recruitment company told us earlier. when you hear all of these comments from the recruitment firms, what is the outlook, the economic outlook for the uk economy? with are we likely to see a recession this year? >> the story is the economy should pick up through the year. that is partly government spending coming in and attention on things like infrastructure and nouncements recently on a.i. were recently positively. i think these are indications which we are seeing from other sources, too. there was a survey from the bank of england which said response to the insurance contributions going up was head counts going down and going up. i was speaking to a ftse chairman and i heard similar

messages coming through. they are looking at cutting staff as a result of this. when we saw this coming through the budget, there was an expectation to suppress wage growth a little bit, but we're not seeing that. we're still seeing wages continuing to rise and that's partly because we've got a skills mismatch in the economy. that means the service economy is struggling to find the workers it needs and the other parts of the economy is not an issue. the city, for example, more and more job cuts coming through. >> interesting. i would also like to put this in context with what we have seen in the bond market. whether the 30-year or the 10-year gilt, what is the outlook here? do you think there is more room for growth for gilt yields going forward? are you expecting a change in policy from the bank of england? >> no, to be honest, we will see buyers stopping in. if you look at the 30-year, you

would make a 400% return if you hold that. the uk government has not defaulted on its debt in years. those rules have been criticized in days. when we think about the headroom shrinking day by day, we are talking about 10 billion. in the 2022-2023, the government spent 1.2 trillion. it is a small portion of the overall budget. it is telling about the limitations placed on them about the fiscal rules. >> i would also like to get your thoughts on the u.s. market. i was looking at some of the expectations for the upcoming reporting period coming this week. it feels like it comes quickly. expectations are so strong, are so high, at the same time we're seeing higher bond yields basically, that's the narrative thus far this year. i wonder whether there's more room here for disappointment

within the investment community rather than upside for some of these companies. >> yeah, this is an unusual year. we've come into it with a really high degree of consensus for investors and that can be a recipe for disaster. now, at the moment, all the economic signals are positive about the u.s., however, there is so much scope of a misstep for donald trump. i think they have got an inflation problem. that isn't likely to go away when they are pushing for more and more controls on migration. a lot of inflation from the construction sector and housing. if you are removing a big chunk of the labor force, a lot of that is migrant labor and more of that coming through. add to that, donald trump has historical been critical of jay powell. he said in recent months he thinks interest rates are too high. you see the tussle with the institution that tects price stability. we have strong earnings growth

and economic growth as well, but whether investor confidence will start to show cracks, i wouldn't be surprised. that's why we are more supportive of the equal weighted index. >> interesting. i guess it will be a particularly important and relevant reporting season. explain to us, therefore, the best positioning of the portfolio at this time when you are about hear from companies with q4 results and the market when it comments to bonds. what is the best approach going into the year? >> i think don't write off europe for a start and don't write open gilts. keeping a portion in the portfolios in the area where there is more scope for upside than for example in the mag seven in u.s. with nvidia meet their forecast. the stock's been weak because it has done no better than investors are expecting. keeping that diversification is

crucial this year despite the investors are not diversified with the outlook. it is all about the u.s. there's a long way to go before we get to the end of the year and we'll ill see some surprises. >> interesting. with valuation still high, the moment to look elsewhere. thank you for your time today. lindsay james at quilter. for more on the global selloff in the bond market, check out cnbc.com. coming up on the show, uk retailers jd sports diverge in the uk. we'll bring you the latest after this break. (auctioneer) let's start the bidding at 5 million dollars. thank you, sir. (man) these people of privilege... hoarding the financial advantages for far too long. (auctioneer) 7.5 at the back. (man) look at them — unaware that robinhood gold members now enjoy the vip treatment — a 3% ira match on retirement contributions.

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welcome back to the show. now into some corporate stories this morning.

bp says falling refinery margins will eat into the urth quarter profits. it expects trading to be weak compared to the previous three months. elsewhere, the austrian chemical company reported a mix energy prices in the fourth quarter hit by a 7.4% dip in the realized crude oil price. . and a different space lindt posted a 7% jump in sales as report cocoa prices weighed on consumer sentiment. it now expecting organic growth of 7% to 9% this year and improved operating profit margin. with that in mind, luxury

space. brunello rose 12.4% for the year at the current exchange rates. that was boosted by double digit sales in americas. the brand expects the revenue to increase 10% in 2025 and 2026. shares at the moment are up almost 29%. charlotte has been looking at the numbers. charlotte, so far, so good. investors are enjoying the latest update. >> it is interesting to see the results at brunello. catering to the high-end of consumers. they are doing well. you remember back in december, they upgraded the revenue guidance for the year and beat that guidance with the numbers you were saying up 12% with the exchange rate. the q4 good sales there. the turnover of 358 million euro. the best result in absolute

terms in q4. here is an interesting story because they don't realize the chinese demand. that makes a big difference for them. they are in china, but entering the market slowly. the biggest market is still the u.s. that is a positive story so far and going into 2025 because we see the u.s. markets potentially where we start to see the green shoots for the luxury market going forward. that is the biggest market. that is doing well for them. their shares were up 19% last year and up 30% for the past 12 months. one of the top picks in the luxury sector. a bit like hermes. they cater to the high-end consumer and it is working for them. again, they are growing slowly. they are still looking in the chinese market, but opening three stores per year globally. one of them in china. they are entering the market slowly. once again, when you cater to the richest consumers, you are not impacted as much as other

brands. >> you are a little bit protected. i was reading the chart wrong. it was 29% over the past year as charlotte highlighted. i want o take you to other developments in the uk. uk several market players are keeping a close eye on what's happening here as investors get the look under the hood of the uk economy. we get november inflation figures tomorrow with cpi growth expected to increase to 0.5% on the month. the treasury could receive some good news on thursday with gdp growth forecast to return up 20 basis points, but retail sales are actually expected to come in flat for the month when december's data is released on friday. this after november's uptick. and british stocks we are keeping an eye on. ocado reports accelerating sales growth in the fourth quarter.

the company reported a 17.5% jump in retail revenue delivering record sales during the peak christmas trading period and seems overall several retailers highlighting how good the christmas ason was. the utlook still under certain. when it comes to jd sports, it cut profit outlook after the. >> referee: -- revenue fell 1.5% in december. it saw weaker trading in the uk than the u.s. it says it is cautious on the coming year. in addition, games workshop beat the expectations in the first half of the year posting a more than 33% rise in profit. the british game maker was boosted by demand for the war hammer series, but warns it faces costs inflation. and persimmon expects full-year profit to come in at the top end of the view and

posted forward sales of 15 billion pounds at the end of the year and says it is well positioned for 2025. let's get a check on how home builders are moving at the moment. it has been such an interesting space, obviously, in the context of the election of the labour government. at the moment, persimmon shares tracking 6.4%. we have green basically arose the sector. barratt and taylor up 2%, too. rachel reeves will address parliament this afternoon after keir starmer says she has his full confidence. the government spoken to the a.i. minister and business leaders across key sectors as uk as the investment destination. take a listen. >> with our plans already giving

confidence to the sector to invest in the uk and the a.i. opportunity action plan looks to how we can remove the barriers. >> it's not often that a country actually puts their weight behind a.i. in the way the uk and prime minister did yesterday. so, i was delighted, first of all, to see that and the initiative with the a.i. growth, et cetera, et cetera. i felt personally very positive about it and naturally we're on board with that. >> a fiscal moment they created at the start. they said that would wipe the slate clean. i don't think it will. i think there will be multiple fiscal moments coming. the rise in gilts should be a really strong indicator. i remember as a finance director, you have to get your balance sheet under control and demonstrate to the shareholders to have the balance sheet under control. >> let's get a check on what's

happening on when it comes to uk gilts. it's very clear looking at the screen we are seeing lower moves for yields so far in today's session. of course, after the recent pressure we have seen here, but nonetheless, that pressure still continues, particularly on the government. let's see what will be the message coming from particularly number 11. let's see what they will say over the coming weeks. i also want to take you to the latest in real estate outlook market. of course, there is research out suggesting a gradual recovery coming this year with further investment expected into the sector despite persistent challenges according to cbre, real estate market outlook for 2025. karen gilchrist spoke to the executive director and head of leadership for europe who laid out the challenging facing the market. >> expect a recovery in 2025.

are there downside risks? of course. persistent inflation and the other is politics. yes, we have seen turbulence in the bond market. in eurozone, we don't think that expectation for interest rates have changed. if you see our forecast when it was when we did our forecast and where market expectations are now, they are pretty much in line. in the uk, yes, market has revised expectations upwards, but also let's wait and see. there are a lot of things that can happen. we are monitoring all these recent developments. >> karen is joining us now with the story. karen, i can't help but wonder at the moment when i hear them sake there saying there is a revival in the real estate market. >> speaking to him, he said there are fundamentals there that point toward this recovery.

this was talk of it in 2024, but momentum is continuing in 2025. he suggests notwithstanding the cloud volatility in bond markets and the inflationary pressures of the incoming u.s. administration. him still saying lower interest rates, they think, and improved consumer confidence as well as resilient labor market could lay the ground work for the recovery going into 2025 saying uk is the number one target despite the policy changes we've seen. a bit more stability coming out of germany with the elections coming up. also spain, great gdp growth there. solid demographics. france may be an outlier. >> the reason i was asking is because the narrative within

real estate in recent years has been what's happening in commercial real estate in particular. covid brought a lot of pressure for that part of the real estate market. are they suggesting that we could actually see a revival there going forward just because interest rate dynamics because that seems a very weak point when you think about, as you pointed out, what we are witnessing in the bond markets this year? >> yeah, yeah. i think there's more buying opportunities now. you know, it is becoming much more affordable. the disparity with the asking price and willingness of what investors are willing to pay decreased. there is a bit more agreement in the market. there are opportunities. we're seeing a lot of people returning to the office still. that is a continuing trend. there are opportunities there. one thing they were keen to.out is the a.i. data centers. that's a huge growth area saying it could be potentially capacity growing in the euro top five market.

that is a opportunity in the space. >> interesting. perhaps more niche. pbsa with a sustained environment this year. let's see what will happen there. particularly in the uk, demographics are not looking good. thank you, karen. coming up on the show, the french prime minister is set to address parliament today in his first major test in the role. we'll bring you the key test of what to tcoufoafr is eak.h t r teth r a well-rounded approach.es but i do that. i read classics and contemporary. and when it comes to learning spanish. you memorized random phrases. try babbel with bite sized interactive lessons so you nail the basics. addictive games to build long term memory. award winning podcasts and an ai conversation partner for on demand, no stress speaking practice. start speaking today at babbel.com.

i'm silvia amaro and here are your headlines. bourses in the green with the key speech ahead of prime minister francois bayrou. bp weighs on the ftse after

the energy giant warns it could book $2 billion in the fourth quarter and a slump will hit profits. some respite for uk chancellor rachel reeves, but uncertainty abounds as ocado and jd sport book on the back of divergent result. and middle east necessity -- negotiators meet in doha as president biden says israel and hamas are on the brink of a deal. time now to get another check on on how we are moving across the equity space starting with the benchmark. we are still up about .50% at the moment. continuing that change in the

narrative we have seen overnight. we had the benchmark down .50% at the end of the trading day yesterday, but deed the market narrative is quite positive. this despite the upcoming prices this thursday. and we are seeing lower yields across the board on top of the fact we are also got reports suggesting a more gradual approach to tariffs from the incoming presidency in the united states. let me show you how the different bourses are faring at the moment. we have green for all of the major bourses with more positive moves in france. we have the cac 40 up almost .90%. this ahead of the key speech from the prime minister. we'll be speaking about that in a couple of moments. this is how we are moving at the moment. we have tech as the best performing sector. we are up over 1% at the moment.

autos also tracking higher by similar levels. investors are focused on the market narrative. perhaps the u.s. will be a little bit softer in the expectations on trade tariffs. in the worst performing sector, this is the picture we have at the moment. retail under pressure. it is the worst performing sector at the moment. earlier in the session, the pressure was on oil and gas where we are still down .50%. i also want to show you how u.s. futures are shaping up at the moment. this suggests a positive start to the trading day stateside. this after what was a mixed session on monday. we had the s&p and dow finishing the day positively. however, the nasdaq did end the day down .40%. important inflation data coming today. we will see how investors eact to that. the cpi number is due tomorrow. in the meantime, president biden says israel and hamas are

on the brink of a cease-fire deal to include the release of hostages after the midnight breakthrough in talks. antony blinken says the plan has been carefully negotiated between both sides. >> the president put out a framework that the first six weeks of the agreement because it is a two-step process of a phased deal. the first six weeks, the conflict stops, israel pulls back its forces, hostages come out. prisoners released. we surge in humanitarian assistance and we also use that time to finalize agreement on the enduring cease-fire. we have done a lot of work on that. we haven't waited to get to the cease-fire. we have done work with arab partners and israel and others to understand what would follow

a post-conflict plan. it is filled by something that can run gaza effectively. meanwhile, greenland's prime minister wants to work with the u.s. while greenland is not for sale, he is ready to just cooperation after the u.s. president-elect donald trump wants to buy the danish territory refusing to rule out military or economic force to take control. i had the chance to speak to the member of the danish parliament about trump's rhetoric around the country. >> i'm not concerned. i think some people in greenland are quite concerned, but i think it is important to say greenland is not for sale and never has been for sale and never will be for sale. it is specific to see how we collaborate with denmark and with the u.s. and first and foremost, with greenlanders. >> surely the language sounds a

little bit aggressive. when we talk about military intervention or escalation, we cannot help but think about the russian invasion of ukraine. how do you take the message from the incoming president vis-a-vis greenland? >> i think it is disrespectful. looking back, it was disrespectful the way it was brought upon and also this time on the 23rd of december when it was proposed for the first time. and i think it's a matter of, you know, sending some quite clear signals, but not really being quite specific on how collaboration between u.s. and greenland could be in the future. i think this typical trump and it's about creating some kind of tension, i would say, within the relationship between greenland

and denmark. in france, the french prime minister francois bayrou will face a test in the role when he outlines ies in the speech to parliament today. the country entered the new year without a budget for the first time in history. charlotte has been, of course, tracking all of the french politics. how important is this speech today because i think investors want to know what is happening with pension reform. >> the speech by francois bayrou, the new prime minister, with the budget. he promised a budget by mid-february. we have to wait and see with the essential parts of the budget to continue to have things running. we know the new economy and finance minister has been meeting the different political parties to try to reach a potential majority. you have to remember it is a very fragmented parliament since the snap election last summer and tough to reach majority.

that is why michel barnier was ousted three months into the job. he did not manage to find consensus. he tried to turn to the far right to make the compromises. that did not work out. that's why this time around, the economy minister has turned to the socialist, turned to the center left to negotiate there. it looks like the leader of the socialists is a stone's throw away from agreement. the question is who will agree to potentially freeze that pension reform? not cancel it all together, but freeze it for now and find a new way to finance the pension system in france. that way, he would not get support from socialists, but support the no confidence vote. that is what the market is watching. you have to wait and see what the market will say. is it good news or chaos or is

the government going to or survive survive survive or is it bad news? we have probably more specific number today over the coming days. we have to wait and see from francois bayrou today. >> it is a tough choice. if you freeze the pension reform to avoid political chaos, that will have fiscal implications and whatever i read, everyone expecting limited fiscal changes for this year. let's discuss this in more detail with our next guest. the chief european economists at barclays. sylvia, good to have you on the show. first and most, what are your expect ations from the pre minister later today? >> good morning. thanks for having me on the show. our expectations is the growth

target will be to the downside and the target that was set by this economic minister will not be reachable to the extend it would likely to be announced. on the growth front, our forecast is significantly lower than that of the previous. we are expecting growth to be .7% this year. that is not far from the bank of france has. on the deficit targets, we already thought with the government from prime minister barnier, many measures were not obtainable. we had the forecast for 2025 slightly below the 2024 one aside from gdp. i think that given that some of the measures that re announced

by the prime minister have already been abandoned for constitutional reasons will not be implemented. even our own target might be difficult to achieve. >> silvia, you are outlining a difficult position for france going forward. overall, your comment was you expect a mild fiscal adjustment this year. i can't help but think about what this could mean with brussels. historically, no country has beening rules. do you think we have a different team in brussels, do you think there is opportunity for a clash with france? >> i don't think so. i think the teams in brussels have very much focused on the medium term adjustment programs which have been submitted last to be implemented in seven years in the case of france. i think they understand the political situations and challenges for france and also

the government with the cyclical slowdown. overall, what's important is there will be some fiscal adjustment even if that is minimal. i think this case is one in which we don't have a budget and then in that case, our own assessment is the deficit will continue to grow rather than decrease. >> silvia, can i ask if this government survives, not if, of course, there is a case the political party will agree to disagree until the summer and potentially a new snap election and try to reset parliament. what does that mean potentially for the french economy for that wait and see situation? >> well, one of the main reasons we are such a weak growth outlook for france is precisely this uncertainty on top of the job and political uncertainty in the space. we have in france crowded

olitical uncertainty and that's a climate which at best business decisions have delays and consumers are becoming more concerned and more cautious. we will keep maintaining high rates. i'm saying if the government does not survive and the small political volatility over the summer, the risk to the growth outlook is definitely to the down side. >> of course, it is a bit of nervousness in the markets about the french situation. what do you think is the better news is the potential the government survives or the cost of reviewing the pension reform or is this reopening pension reform bad news? which is the public more nervous about? >> i think if we have just a suspension of the year, we have commitment of, you know, continuing the pension reform and that is still, you know, the significant amount of negative

news and for brussels. it will be negative if the government were to consider abandoning the pension eform. the pension reform is a pillar for the fiscal is adjustment. it is difficult for brussels to adjust the plan without the pension reform in place >> silvia, i would like to ask you whether the bond investors need to wake up for what's happening in france as well. at the moment, we have the yield on the ten-year french paper moving actually lower. do you think this is actually a moment that investors need to be concerned with the french economy exactly because we are expected limited fiscal adjustments this year? >> i don't think investors will be surprised by that. that's news with french bonds priced a lot in the past year or six months or so. a again, today might be more of a

technical move after the rocky start of the year. i think the french situation and the challenges the economies face are well understood by the markets. >> i like to broaden the conversation out to the wider eurozone. what is the issue for the eurozone with the lower growth dynamics across the board and indeed the fiscal position of germany and france remain a huge question mark? >> we think the growth outlook as a whole is lackluster. we have a forecast for growth for this year which is exactly the same of last year to the tune of .8 with a weak half of the first year. the ecb will continue to decrease policy rates by 25 basis points at every meeting to

june and we also forecast the additional policy rate to 1.5. we disagree with the market moves that have been recently. in a sense, we think inflation is converging to 2% and the economy is weakened and that ensures this economy will be sustainable and leading to the ecb to cut rates. in that, i don't think there is -- if anything, it should help with the interest rate burden that the country's ies w have to pay in the future >> we will see. silvia, thank you for your time. of course, our very own charlotte reed. elsewhere, mark rutte is attending finland to attend the baltic sea agreement. speaking at the european

parliament committee session on monday, rutte said nato must spend more on defense. >> the 2%. everything i'm seeing at this moment is not nearly enough f.. if we don't do it, we are safe for now, but if we don't do it, go to your language courses or go to new zealand or spend more. that is something we have to finalize the next three or four months to stay safe in this part of the world and defend ourselves. >> interesting. learn russian or move to new zealand or spend more now. coming up on the show, could tiktok's bytedance find a suitor for the business? one name is in the running. we'll discuss after this break. (auctioneer) let's start the bidding at 5 million dollars. thank you, sir. (man) these people of privilege... hoarding the financial advantages for far too long. (auctioneer) 7.5 at the back. (man) look at them — unaware that robinhood gold members

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welcome back. as we approach the end of the show, here are the four things to get you up to speed ahead of the open on wall street. we get u.s. ppi ahead of tomorrow's cpi report as well. we will hear from several f moc officials, including john williams. the u.s. could hit the debt ceiling with the treasury warning it would need to take extraordinary measures. of course, we continue to monitor what happens in the bond markets after the yield on the ten-year treasury hit a 14-month high. elsewhere, china is said to be considering selling the u.s. operations to tiktok to elon musk if the company's bid to prevent a ban falls through. that is according to people familiar with the matter and chinese officials would prefer the app to stay under its owner bytedance. one scenario under discussion would see x, formerly known as

twitter, take control of the apple napp operations and run the businesses together. the eu is reassessing the probes into alphabet and meta and apple. a brief check of tech names in pre-market moves. overall, we are seeing them moving slightly higher at the moment. so, a little bit of a change in narrative from what we witnessed on monday when there was a little bit of pressure across the tech space. our next dpest says guest says frothy valuations. i'm pleased to introduce james, the cio of coast capital. james, great to have you on the show.

explain to us how you are positioning the portfolio at the moment when clearly you believe the u.s. is too expensive. however, you re believing there are opportunities in europe. where? which ones? >> there are opportunities across europe and western europe and we find compelling valuations in that part of the world have never been at the discounts they are against the u.s. markets. so, it's a historically interesting time to invest and when you add the layer of the currencies in europe having sold off so much. so, you are buying these discounted companies at valuations. also, the currency you pay as american investors to acquire the companies is depressed as well. there is an opportunity. we think there are so many companies in europe that are leaders in their sectors from a

global perspective that have attractive growth outlooks and attractive margin outlooks as well. we think that is a good place to start in europe. just because it is based in europe, doesn't mean its fortunes are based in europe as well. >> i noticed, however, you are bullish on two particular stocks. explain to us why you are bullish on these names and for transparency, do you own the stock as well? >> we own both companies. look, renew is one of the companies we are a large shareholder. the company is being acquired and taken private. the private capacity, unfortunately, will have access to a lot more capital than it would as a public company and pursue the growth opportunities that are ahead. the reason we like a company like that is, you know, across europe by year 2030, if you

manufacture a product, 50% of the raw material that you use in manufacturing process in western europe and eurozone will have to be recycled rather than virgin in nature. renewi is one of the largest had manufacturers of recycled raw material because it recycles 0% of the waste it gathers. from a multiyear perspective, it has the best growth perspectives of any p company in the sector and it had been trading at less than half of its european valuations which in turn are trading at half of the u.s. players are operating. it has one of the best prospects in the sector. public markets in europe are under valued and dysfunctional that he cost to capital is lower in many cases when the companies get taken private which is the case here.

i think it is being acquired at a very attractive valuation. >> james, we are approaching the end of the show. i would like to get a final comment really if you saw the pullback we saw recently is a good moment to buy given you said they have been very expensive? >> u.s. valuations are almost at an all-time high and a hair below where they were in the tech boom at the beginning of the century. we all know how that ended. in light of the extraordinary mix of uncertainties and risks that we don't talk about and seem to be ignoring willfully, we are cautious about u.s. markets. we think in europe, there are risks as well, of course, but well understood. that is all market participants think about. they seem to be uch more discounted. buying europe is the way to go and contrarian. >> i'm afraid we have to leave

the conversation there. james, cio of coast capital. a final check on european markets. so far, we have been in the green this tuesday morning. the cac 40 up 1%. investors taking relief from the fact we are seeing lower yields as well as potentially a less aggressive approach from the u.s. in terms of trade tariffs. u.s. futures is how we are shaping up ahead of the open on wall street. they suggest a positive trading day. we will see what will happen. 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. call coventry direct to learn more. we thought we had planned carefully for our

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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 nasdaq trying to snap a four-session losing streak. why now is the time to buy. elon musk to the rescue. the chinese government spit-balls the idea to the ceo. rough ride for the transports. citi lays out the key themes to watch under president trump. key week for the trump cabinet picks. one