it is 5:00 a.m. here on cnbc global headquarters and welcome to "worldwide exchange" here is your five at 5:00. the nasdaq trying to shake a five session slide. we have a critical inflation report coming up later today. big tech hits the pause button on new year hires as the sector kicks off a very turbulent 2025. also we're getting some mixed messages from europe as inflation data impresses but german growth, that remains in the red. plus big bank earnings coming up. what is a best buy and the latest on the sec and elon musk. just days before the trump

administration takes over. it is wednesday, january 15th, 2025. you are watching "worldwide exchange" right here on cnbc. good morning and thank you for joining us. i'm frank holland and let's get you ready for the trading day ahead. the s&p and the dow on two day win streaks and however the nasdaq as we said on a five day slide. you can see futures are in the green across the board. the s&p up fractionally just about eight points and dow also up fractionally. about seven points. now we want to take a look at the biggest premarket gainers on the s&p 500. again up fractionally. biggest gainers expediters and logistics company up just about 4% right now followed by tyson foods up 2% and globe life inc.

the finalist in the top five right here also up just about 2%. speaking of gainers, this is a story we've talked a lot about right here on "worldwide exchange." quantum stocks a massive tuesday rally. still well off the recent highs and let's take a look at the premarket action right now. quantum butting inc. up 16% and similar story for d wave. overall with the exception of it itself we're seeing their stocks moving higher in the premarket and a number of tail wind for quantum in the last 24 hours including microsoft out with a blog post telling businesses that 2025, that's the year that you want to be quantum ready. also some positivity in an interview with s. a. p. ceo. however, our jim cramer still not convinced posting, very typical quantum bounce giving

you another exit point. you might need to call them and talk about the stocks. bond market. treasuries. the benchmark at 4.77% pretty much where we saw it at yesterday. also important to note that 20 years still above a 5% yield and 30 year the long bond getting very close to 5% yield. but still the same levels we've seen it at in recent days. also want to talk energy. oil also holding steady but wti gaining about $10 a barrel since the start of december. going to see the impact of the rising energy prices coming up in the cpi report later today. right now crude trading about $77.80 a barrel up almost half a percent right now. again see the impact on the cpi report and also have to talk about bitcoin benefiting from a better than expected inflation report yesterday. also seeing bitcoin moving higher right now. just up about a quarter percent right now but right now bitcoin

trading about $96,000.750. week to date up almost 2%. now a look overseas and our sill rya morrow is in london with a look at traffic trade. >> reporter: that's right. very good morning, frank. so far we are looking at a positive vibe within the investment community over here in europe. but indeed the focus is very much on the incoming economic day that we have been receiving today. let me tell you what's going on. so we have green across the board over here and in the uk we have the 100 up 0.7%. this after inflation print actually came in below expectations. and that has provided a little bit of relief for british officials after the recent selloff in uk bonds as well. and when you think about what's happened in -- what's happening in germany. we have the extra -- also up

half a percent. this despite economic that tahoing this morning that gpd in 2024 came in t minus 0.02%. the second year in a row where we saw the german economy contracting. so not very good news there ahead of the upcoming snap election in february. however, though, as you look at the moves over here in europe, no doubt frank that investors are also waiting the all important cpi print from the united states later today. >> thank you very much. live in our london newsroom. a check on the morning's top corporate stories including the u.s. reportedly looking to ramp up the pressure on china over chips. here with that and much more. good morning. >> reporter: hey frank, good morning to you. in its final days the biden administration reportly there roll out more regulations to keep advanced chips from flowing into china. that's according to bloomberg. now the report says the latest measures would look to

encourage producers like samsung and intel to more carefully scrutinize customers and increase due diligence. those new rules could come as soon as today. we know the sec filing a new lawsuit against elon musk over his takeover of twitter. accusing him of securities fraud. now the agency claims musk cheated -- cheated twitter shareholders out of more than $150 million by waiting too long to disclose his growing stake in the company as he prepared his takeover bid. now musk's lawyer calls the lawsuit a sham and a post on x musk called the sec quote a totally broken organization. and tiktok is reportedly planning to shut off the app for u.s. based users on sunday. that's the same day a federal ban is slated to take effect according to the information, the platform plans to give users the option to download all their data should the app go dark and frank, the apparent

move would be in contrast to the rules of the ban only making it illegal for app stores as well as web hosting services from distributing or servicing tiktok. >> yeah. very big story deadline coming up this week. definitely be following it. thank you very much. see you just a bit later in the show. our attention back over to the markets and investors are preparing for the next read on inflation with the december cpi report. headline figure expected to show 2.9% jump from a year ago. that's up slightly from last month's reading and core cpi expected to see 3.3% gain that would be unchanged from the month before. the data comes just two weeks before the feds' next rate decision and a hotter than expected report that will likely row lower the chances of a fed rate cut with investors only pricing in one 25% cut for the entire year. alex is chief investor officer at bernstein previous wealth management. >> pleasure to be here. >> just read it actually. cme price in just one cut this year, you are much more

optimistic and i would say contrarian. you see three cuts. how does that happen and unfold this year where so many other people only seeing one cut? >> the great thing about economic utlooks is you can always make adjustments to them over time. so the fact that we're on three today doesn't mean necessarily that we won't be on two. one i think is probably not enough. if you recall last year, number of groups were at seven and we were not. so i think we've been more conservative coming into this but look there's real merit for them cutting rates but probably not going to happen till something in the june neighborhood. be patient. >> year to date. energy is the leader now. tech is actually the laggard. what do you make of this divergence and change of leadership at least the start the new year. >> expectation for the incoming administration there'll be some change in policy that will drive solid growth and also evaluation. we talked last year and everyone has about how expensive the market is

especially in tech. and energy was at the bottom. anytime you showed an array of sectors, energy was at the bottom. so the fact that there's a little bounce off the bottom is just that. it's a bounce off the bottom. >> all right. we're also seeing a big change in flows. morningstar out with a new report today looking at the inflows into rsp. s&p equal weighted etf. for the year, $17 billion of inflows and full year but the second half of the year, $14.4 billion a lot of investors obviously worried about concentration risk. the markets you are talking to clients and are you worried about that concentration risk and how do you mitigate it? >> there's a way to balance it but the magnificent seven has gotten the acclaim that it has because there are earnings. when you look at earnings growth coming from the s&p, mid teen year over year growth in earnings but when you break it down most of that is coming from the magnificent seven so yeah, premium valuation but also driving real earnings growth. if you are investing for growth

you have to have some of that. not a lot. we're balanced about how we have exposure. >> i want to talk to you about something else. the rise in the dollar. again the megacap tech stocks and mag seven get a lot of the revenue from overseas and certainly expected to be impacted by the rising dollar. are you reducing exposure to the mag seven and big tech and putting the money in the beaten down sectors like energy? >> there are opportunities to make some adjustments and i would say that clients and taxable investors in the u.s. hate one thing. and that's paying taxes. and if you think about what technology stocks have done over the last few years, there's taxes there so you need to be careful about that and balance the cost. but yeah, there's a potential to make a rotation today. i think look, the dollar strength that we're seeing is the cleanest expression of a trump win. and expectations are on what the administration is going to create. we called in november to say

buy dollars, buy dollars, buy dollars. it's been the right call. could we get the parity of the euro for example? i think that's certainly within the range of outcomes that we think is somewhat likely. but it doesn't necessarily diminish the strength of these tech companies. that 15% growth rate for the s&p, that considers the dollars strength that's taking place. >> alex. great to see you. thank you very much. you have a great day. >> you too. all right, coming up here on "worldwide exchange" we have a lot more coming up including 2024 top performer that the kabyle lee fund says could be a repeat for this year, but first cuts and freezes. what that could mean for investors coming up. why net west market says december's moderation could be prep. and later in the show prepping for big bank research. more in the hour still ahead when "worldwide exchange" returns. do not go anywhere.

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welcome back to "worldwide exchange." two mag seven members annonassing new moves around head count for the new year. microsoft planning hiring in part of its consulting business in the u.s. according to an internal memo seen by cnbc. this hiring freeze is part of a broader effort by the company to reduce costs and it comes a week after it said it would lay off some employees. meanwhile, cnbc is also learning that meta is planning to cut about 5% of its work force. and a memo ceo mark zuckerberg says the cuts will focus on the

lowest performing staff members and says it will be quote, an intense year. for much more let's bring in alex big technology founder and a cnbc contributor. alex, good morning. good to see you. happy new year. >> good morning frank. happy new year. >> all right, so i want to get your broad take on that last comment. the intense year by mark zuckerberg. when mark zuckerberg says that, what does he mean in your mind? >> i think he means that these big tech companies were seen as country clubs and right before 2022, lots of perks and really tough to get fired and even in the memo himself, zuckerberg said we were not going to fire low -- poor performers in the past and manage them out. i think what he's saying with a intense year is he wants to bring back the year of the feeling of efficiency, 2023 and 2022 where employees were off- balance because they were laying off a lot of people and cutting back on perks and they worked really hard and i think trying to keep that start-up level culture within the company. and move past the country club mentality that they might have had for a couple of years. and that's where he's focusing the company. >> all right.

so trying to get out of that quote unquote what you call a country club mentality. how to view this with the work force reductions for both microsoft and meta? at the same time, they're expected to boost their cap backs. how should we view that, you know, as investors and people that are watching this company? >> well, for meta i think it's important to say that they're back filling those 5% of positions that they're cutting or planning to cut. right? it's actually not work force reduction at all. just going to hire in the place of those employees that they let go. with microsoft, you know, i do know that they're doing some cuts there. but they're tying it to artificial intelligence and i think the way that you have to look at this. we're cutting to make room for artificial intelligence, they are basically taking a negative moment for the company where they have to lay off and they're trying to spinette as a positive making room for artificial intelligence. for meta again i think maybe some positioning but small

cuts, very small cuts within microsoft and to me that sounds more like spin than reality. >> all right. when we look at tech companies, it seems like seasonally we see layoffs and work force reductions and i know you are saying one of them is not actually a work force reduction but seasonally we seem to see these in the beginning of the year. the two companies, these are expected to be big years. where really trying to scale up the ai technology and capitalize on it. growth. so do we generally see tech companies looking to cut costs while trying to actively grow at the same time? just cultural for silicon valley. is this normal? >> it's not normal. you don't really see the companies doing lieoffs and in fact they really started in 2022 and made unprecedented cuts then during, you know, facebook branded it the year of efficiency but every other company had their own nickname for it and they made cuts and amazon made much bigger cuts than meta did but i think the notion of cutting costs is a myth right now within big tech. you might find pockets here and there but ultimately they're

all surging forward and ai development and ai development is expensive. you need a ton of compute and you need the best employees possible and you need a ton of power. right? so when you are building nuclear power plants or you are thinking about building nuclear level power plants or leasing power off of them, you are not really in a position to say we're really going to take down cap bets. it's going to be a big year of spending for every single one of these companies. but i don't see the cap x going down for anyone across the board. >> alex, a bit of a cultural shift when it comes to the companies getting rid of the country club mentality as you call it. great to see you as always. thank you very much. >> thank you. still on deck here on "worldwide exchange," details behind what could be a 2025 speck comeback when we have the ceo of one company riding the azhoin. momentum. th ose chairs up about 7% right now in the premarket. stay with us.

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and cultural treasures. because when you experience europe on a viking longship, you'll spend less time getting there and more time being there. viking. exploring the world in comfort. welcome back. nvidia's rise led to renewed interest by investors in ai chip start-ups and one of those blaze going public on the nasdaq yesterday through a spec merger. the company which was launched back in 2011 is focused on manufacturing chips for edge applications and smart products opposed to the high demand chips used in giant data centers. joining us now in blaze co- founder and ceo dinikar. good morning, thank you for joining us today. >> thank you, good morning. greaten the here. >> yeah. congrats on the ipp and we're looking at shares right now

moving higher in the me premarket and they closed pretty flat yesterday. why go public now in this environment? pretty tough environment for ipos last couple of years. >> right, no, great question. we feel the timing is right. ai is in focus. we are in the eye of pure play semiconductor and software company focused on the edge. too many companies stay private too long. by going public, it allows noninstitutional investors access to high growth ai companies like us. also it results in capital for us as we build blaize. our chosen verticals including nvidia security and enterprise edge and assistance are massive. and they collect really at about $71 billion by 2028. and this -- we do have real product and serving these

markets. and the capital really does help scale the business. yeah. >> no. no. i was just going to ask you. just answered my question and i was about to ask you why go through a s pac. why go through a sp ac way to get into the market and why go public at all? you could continue to get private money into the company. >> it does help in terms of -- this particular spac actually came in with capital up front. and the capital does help accelerate our goal market functions and our road map and also to hire additional talent as we grow the business. >> all right. you are going public right now as we're about to see a new administration take over in washington. i want to ask you, how much production is going to be done here in the u.s. if any -- how would tariffs and possible immigration reform, how would that impact your business? >> actually very good question. in fact, our product is actually -- the chip is manufactured on u.s. soil. we get a lot of quotes for

that. it's manufactured in austin, texas. i think we are one of the few ai chips that's actually manufactured here and, you know, from the defense and those kind of industries we're getting a lot of interest. >> so manufactured here but i would imagine you get components from overseas, is there a tariff impact on your business or just supply chain or any impact due to tariffs in your mind? >> not really. we've actually -- our supply chain is based on u.s. suppliers. we actually -- right through covid, right? we pulled a lot of supply chain back to the u.s. and we work with tier one suppliers so a lot of the manufacturing is done here. and friendly countries as well. >> are you concerned at all about export controls on chips? during the biden administration, we've seen some new rules laid out and regulations are expected to be less under the trump

administration. but that's not 100% clear. and we were just showing this just now. as part of your ipo you have been talking about the pipeline. a quarter of the pipeline is going to unnamed entity. defense entity in the middle east. are you concerned that there might be restrictions on your ability to sell to customers like that or other customers around the world? >> so lot of the restrictions are more on ai high end training systems. especially when it comes to things like camera inference and video security. those class of u.s. cases and of course we have a law firm that helps us with all of this and we pay close attention. there is no export control restrictions on our class of products. >> okay. great to see you again con congratulatelations on the ipo shares moving higher in the premarket right now. you have a great day. >> thank you very much. coming up here on "worldwide exchange," net west is bearish on their outlook when it comes to consumer prices. we're going to tell you why the firm says investors, they should not get used to what's

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we reduce our policy right now by 100 basis points we're significantly closer to neutral. at 4.3%, and change, we believe policy is still meaningfully restricted but as for additional cuts we're going to be looking for further strength in the labor market. >> that was fed chairman powell after the latest rate cut last month repeating it's all about the data with future cuts. the fed gets its latest test on its rate path this morning with cpi. welcome back the "worldwide exchange." i'm frank holland, coming up this half hour we're going tee up the critical data point and what it could mean for the fed. but first we kick off the half hour with a check of u.s. stock futures with the s&p and dow on two day win streaks. the nasdaq however, that's on a

five divide a look at futurings right now green across the board. the s&p up fractionally just about eight points and dow up as well 75 points and moving a tick higher. the nasdaq the best performer up just about a quarter of percent or 45 points. and we want to look at the nasdaq 100 gainers right now. take a look right here the top list. cdw up over 1%. followed by warner bros. discovery and pdd holdings all rounding out the top five. speaking of gainers. quantum stocks here on "worldwide exchange" coming off a massive rally on tuesday and some jumping as much as 48%. but they are still well off their recent highs and let's take a look at the premarket action and you can see a lot of green on the board. the etf that covers quantum stocks the exception here, down about a third of a percent. but i on q up about 7%. the others here up double digits right now in the premarket. there's been a number of tail winds for quantum in the last 24 hours and that includes microsoft out with a blog post

telling businesses 2025 is the year to be quote unquote, quantum ready. also some positivity in an interview with s. a. p. ceo christian clean. coming to reality in three to four years, jensen wong had a 10 to 15 year outlook but jim cramer not buying it. he posted very typical quantum bounce giving you another exit point. gym has been a big skeptic of this trade, jim, i know you are watching and might need you to call in. all right, bonds now. treasuries, the ten year holding pretty much steady ahead of cpi today. take a look the benchmark coming in at 4.77%. the 30 year also getting very close to 5%. but also pretty much holding steady where it's at right now. 4.96%. we also want to look at energy also holding steady from the action that we saw yesterday. but still gaining about $10 a barrel since the start of december and you are seeing very clear upside moves when it comes to the oil market over the last three months also up

10%. right now wti crude trading up just about a third of percent. see if there's an impact on those rising energy prices on inflation when we have cpi later today. and we got to check bitcoin benefiting from that better than expected inflation read yesterday. also moving higher right now bitcoin up over a half a percent trading just over $97,000 per coin. all right, that's your setup and now turn to another big story today of course that cpi and investors turnings attention today to cpi with the december cpi coming out at 8:30 a.m. eastern time. so this report it could potentially lower the odds for a fed rate cut later this year. both the headline and the core cpi are forecast to rise by 0.3 from november ticking up to 2.9% from the 2.7% read back in november. the core rate expected to come in at 3.3%. for much more insight let's bring in michelle gerard. >> good morning frank. >> do you think energy, do you think that's going to be a big

factor in the read? >> well, we do have energy adding to the overall cpi. so we've got an overall gain of 0.3% and if you strip out energy which we think will be up about 1.5%, and slightly higher food prices, you get down to that core rate excluding food and energy. and there we're really kind of on the cusp. we've got 0.2%. slightly less than the overall but honestly it's right on the cusp between a 0.3% 0.2%. the last three months we've been seeing gains of 0.3%. in the core inflation rate it would be a bit of anime private. >> the keyword was a bit of an improvement. to get back down to 2%. i want to ask you how much is really riding on this cpi report with the fed meeting coming up in two weeks and does this cpi report, influence just this january meeting or do you think it impacts the rest of the year? >> you know, frank, i think

it's actually less about january especially in the wake of that very strong employment report on friday. i don't think anybody is looking for the fed to realistically consider cutting interest rates in january. but what it will impact is as you were saying these expectations for the fed over the course of 2025. i mean, right now, the market is really reduced its expectations for further rate cuts and it doesn't even have a full rate cut priced in until october. to give you a sense of how farexpectations for rate cuts have been pushed off given the strength of the data. so the one thing that you could see is if the numbers are strong, like if -- if we get our forecast i think the markets might settle after a lot of volatility last, you know, several days and the wake of that employment report. nervousness about the fed pushing the the yields higher but if we -- that might settle with a benign inflation report. on the other hand, a high reading on top of this market jitters, you could get people

pricing out fed cuts for the entire year. you know, on a disappointing higher than expected kpi. >> the guest thought we might see three rate cuts. we do have to keep going. bun last question -- okay. >> you go. just going to say, i mean, we still got two rate cuts ourselves although even that's quite tentative. honestly fraction if you get an unexpectedly high number you could have people starting to speculate could the fed hike rates this year. that is something to be you know, that kind of cater could come in very quickly. >> all right, michelle, we have to leave it there. it's always great to see you. thank you very much. >> take care. all right, heading to break we're watching shares of cvs and cig that and united health and they are dipping initially after the ftc alleged the country's largest managers hiked the prices, the markups

in some cases were by thousands of percent and helped the group rate get billions of dollars. the group calls the report flawed and incomplete but taking a look at the stocks right now, we're seeing united health up over 4% and cigna up over 2% and cvs health up over 7.5%. we'll be back right after this. ♪♪ ♪♪ ♪♪ at state street, we know everyone's trying to get somewhere. ♪♪ take the next step toward your future, by investing in the s&p 500 with spy. getting there starts here.

welcome back. southern california is again facing extremely critical fire conditions caused by new period of santa ana winds today.

across parts of los angeles andventura counties. so far wildfires destroyed or damaged more than 12,000 structures turning entire neighborhoods into ash and rubble. as of yesterday, more than 92,000 people in the los angeles county. they were under evacuation orders with another 89,000 under evacuation warnings. our contessa brewer is on the scene in los angeles looking at the insurance costs and what's ahead for impacted homeowners and business owners. >> reporter: right now aerial surveillance is the only way that insurance companies are getting a sense of where they may have to pay out in claims. adjustors are still not being allowed back in, neither are homeowners right now. and we've seen a massive jump in the estimates for total economic damage and accuweather went from the high end of the range to $150 billion to now saying this could cost $275 billion in economic losses. and wells fargo is predicting that insured losses could reach

$30 billion. many of the homeowners in this pacific palisades neighborhood went to the f. a. i. r. plan. that's california's insurer of last resort and the plan just gave an update and said it's too early to know how much it could be on the hook the pay out in the claims. but it says it -- it's operating on a cash in, cash out basis. that means it won't pay claims if it doesn't have the money in reserves and it does not have a lot of money in reserves. what does that mean? if they have to come up with that money, they go to every other insurer in the state that has operated here for the last to years and make an assessment on them to come up with that money. that means insurers who were not checking premiums on many of the homes may have to pay on them anyway. in the meantime, santa ana winds expected to kick up through today and through the rest of the week. there are red flag warnings and it is still an unfolding situation. and this is a city, frank, on edge. >> all right. big thank you to our contessa

brewer and our crew out there on the scene. coming up on "worldwide exchange" the one word that every investor has to pick today and every stock pick that you need to know. plus bracing and the next earnings season test for the market. you can see all in the green in the premarket. the best performer wells fargo shares up about 1% 5%. stay with us, we'll be right back.

welcome back to "worldwide exchange." turning to earnings now and the big banks kicking off the

season with goldman sachs and citi andjpmorgan you them all moving higher in the premarket right now. it gained more than 11% on november 6th alone. then seeing a slight rebound andin recent days as well. investors foe trump and what it could mean. there's about $185 billion in excess capital across the sector and some of which could be returned to shareholders if the banks were required to hold less capital. joining me now is steven good morning. good to see you. >> good morning frank. >> all right. so big week for earnings and obviously the big banks kick it off. what's your top pick in the space and what will this report tell you in your mind about the rest of the earnings season when it comes to big the top of the heap here. you know, top lead table and

probably going to do well across the board in the capital markets. whether that's m&a activity, ipo activity, debt underwriting et cetera. also, you know, in the lending space. right, credit cards and domestic and they're expanding internationally. they're expanding in -- domestically in terms of branch offices so you know, pretty good story to tell there and i think that's the -- what we're looking for across the board from banks is, you know, kind of anemic loan growth and low single digits and i think that begins to improve in 2025. we have a lower prime rate and still expect some rate reductions in the back half of the year on funding costs and we have steepening of the card recently with the ten year moving higher. it could be beneficial. >> loan growth. you say that's going to be anemic going forward or at least the environment is pretty anemic right now. is jpmorgan the exception to

that or are all the impacted by what you all anemic loan growth? >> jpmorgan happens to have a large portion of credit cards and credit cards have been a growth area in terms of lending so that will be beneficial. banks are a bit in terms of commercial lending and whether it's a course of real estate obviously has it own problems and housing. clearly mortgage activity has been low. so if your base of business is more skewed towards have -- you will have lower loan growth than the banks with the better mix. >> which banks would be the ones you are talking about that have a better mix? which banks out of the ones we're citigroup. that is where we expect the better loan growth numbers. >> the steepening of the yield curve. that's supposed to just create a better situation when it comes to net interest income

which is how you know a lot of the banks ma make a lot of their money or a significant portion of revenues. in your mind as we look ahead, we be inflationary and we've seen a lot of action in the bond market. how does that impact the big banks going forward? and well, look, interest rates are always a -- >> you know, tale of two stories for banks and rising yields will tend to crimp loan growth. but at the same the value of bond portfolios but at the same time, you know, there are other offsets and a steeper yield curve will help margins and banks not to a large extent but they borrow short and lend long and take advantage of the yield curve. so that's -- beneficial for banks. if the economy is strong, and they can power through that loan growth continues to improve, that's really the best of both worlds. so rates always have been a double edged sword for banks. great hedging is the name of the game and how right. sow mentioned the ipo environment as well.

before you came on we had the first ai ipo of the year, it debuted and finished flat yesterday but moving high in the premarket. this start and some of the other things in the pipeline. how do the 2025 or more of a 2026 story? >> well, the -- the fly wheel takes a while to obviously get started and we've had a two year lull two plus year lull really in ipo activity for banks. so i think is some more constructive conversations. initial conversations going on that the ipo pipeline is beginning to build. typically, at this point, yeah, you have had, you know, a long enough lull period and you have got good capital formation and a lot of cash on the sidelines. and to the extent that some of these ipos come out and do well, that tends to start that fly wheel effect and more

companies will come to market. so pent up demand in ipo activity. and i think we'll be looking for that to unfold basically in the second half of this year. >> all right, a lot of people are looking for that to unfold. steven, jpmorgan, great to see you. you have a great day. >> you too. all right, coming up here your next guest says has a very long runway. that stock up nearly 80% last year and we're going to reveal our mystery chart coming up after the break. follow our katz if you haven't already. we'll be right back after this break.

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welcome back to "worldwide exchange." as we close in on the 6:00 a.m. hour a few of the big stories we have this morning. bloombergis reporting the biden administration plans to announce more regulations to keep advancchips from flowing into china the information reporting tiktok is planning to shut off its app for u.s. users on sunday. the same day a federal ban will take effect. the agency accuses elon musk of securities fraud saying he cheated twitter shareholders out of more than $150 million. elon musk's lawyers calls the

lawsuit a sham. elon musk and mark zuckerberg and jeff bezos will all attend president trump's inauguration on monday. ahead of it the "wall street journal" reports the danish government has privately sent a message to the president- elect's team that it's happy to negotiate military and economic deals related to green land. journal says denmark wants any conversations to take place behind closed doors. also the "wall street journal" is told his company is interested in working with the incoming administration to try to finalize its takeover of u.s. steel. and south korean officials arrested president seol in a predawn raid bringing him in for questioning over the short- lived martial law declaration. back@markets one more check of u.s. stock futures with the nasdaq looking to snap a five day losing streak and turnaround what's been a very rough start to the year. in the green across the board as they've been all hour long. the dow would open up almost

100 points and three nasdaq stocks with the biggest negative impact. apple down nearly 7% this month responsible for more than 131 ndx points and netflix number two on the list. down more than 7%. shaving another 33 points off the index and then in nay void yea down nearly 2% equal to another 33 points off the nasdaq 100. more on this, chris morangi. managing the firm's media mogul fund and trust. great to have you here. >> great to be here. >> nasdaq, five day slide. with that, just because of the concentration of tech and the market, does that concern you about the trajectory of the market going forward? >> well, actually makes me excited. we were finally seeing some signs of the rotation that we've talked about for a very long time. from a concentrated group of global megacaps to some smaller and more value oriented games. where we're seeing the value and we think that a soft landing scenario really helps the case. >> we were mentioning this earlier. energy is the leading sector so

far this year aztec is the laggard. we have a couple of others in correctional territory. where do you see the flows going? >> always tricky in january. you get bounces based on last year's performance. you see some in energy but we see longer term a lot of value in smaller companies. companies that are going to be targets of deals, for example. companies that should benefit from their domestic focus and deregulation. >> chris, you aremont running this. why is your word of the day today deals? >> a lot of board rooms across the country dealing with changed landscape post covid and one of the bays is getting big or getting out and they've been prevented from doing that by -- a poor attitude towards m&a in washington. the fed on hold and administration coming in ready to unleash the animal spirits. >> you think animal spirits are getting unleashed and less regulation and more deals. to your pick for today. what is your pick for us today

and why? >> well, several ways you can play deals that's buying targets but also buying companies in the deal business. whether that's banks or those in the private equity and private credit face and that's kkr one of the top performers last year and i don't expect a repeatnecessarily this year. $17 trillion of assets in that group out of $120 trillion globally. a lot of penetration to be had. helped in changes by regulation that would allow it in 401k plans and a restart of the whole deal machine that's ipos and recyclingcappal and allowing them to generate increased fees. >> kkr shares up over 70% over the last year so very strong performance. do you think kkr is taking private companies, is that the deal you are talking about or is there some other kind of deals you are looking at? >> obviously, they're a business in large part historically has been taking companies private or buying

private companies and for private investment? obviously the private credit business as well and financing deals but there are beneficiary of all that activity. >> you know what? one thing to ask you about. people talking about am terntives and another big year for private credit. but loan conditions. growth is going to be anemic. credit conditions generally been pretty good. the economy is very good. ' why do you think that people are going to go to private credit and private equity? >> the of course the banks structurally because of a lot of regulation are -- moving credit off their books. and, you know, there's -- the private credit providers are there to pick up slack essentially. so, you know, you are seeing continued growth in that area. obviously you have traditional asset managers buying private credit firms as well. so that's going to continue. >> all right. last question. we had a guest on earlier, forecasting three fed rate cuts this year. we had other people saying maybe two. the forecast, the consensus is just one, where do you stand and how does that impact the market going forward? >> yeah, think i'm in the -- generally in the higher for

longer case. sticky inflation probably one cut along with consensus and i think that's a good situation. we're going to have tension ongoing this year between the deregulation and doje and on one side and tariffs and tax cuts on the other. >> one quick question. expect a inline cpi, hotter, colder, what are you expecting? >> inline is where i would go. >> there you go. chris, we're going to leave it there and i'm going to let you put away the crystal ball. thank you very much and great to see you. >> thank you. all right, move on, here's what to watch today. the december cpi report before opening bell and we also get january empire state manufacturing and the feds' latest book and on the earnings front we have the focus on goldman and jpmorgan and others and plus a number of fed officials speaking today including john williams and austin. a voting member futures before you go. in the green overall including the nasdaq. remember

slide and positive right now up about 50 points and roughly a quarter of a percent and looks like the 100 points higher. the open up 100 pointshigher. we also want also going to take a look treasury m. we'll take a look at a couple go. let's stick with the you go. that's going to for for us here on "worldwide exchange." "squawk box" starts right now.te months, as you know. earnings season. it's kicking off this morning. reports from jpmorgan, wells fargo, goldman sachs, and citigroup all before the opening bell. also quarterly results from blackrock. the numbers in an exclusive interview with ceo larry fink. the s.e.c. filing a lawsuit against elon musk over his timing, over the timing of the disclosures of his stake in twitter. musk blasting the s.e.c. overnight on x. it's wednesday. the ides of january as "squawk

box" begins right now. ♪ ♪ good morning, everybody, and welcome to "squawk box" right here on cnbc. we've already from the ncaa market site in times square. i'm becky quick along with joe kernen and andrew ross sorkin. and yeah, it's not just every three months we get earnings -- >> every quarter. >> every quarter, every month we get cpi. that may be the more important read that we're going to get today. >> they're all important. every earning report, every -- >> the cpi really is important yesterday. >> cpi. >> we expected producer prices. >> cooler. >> cooler than expected, and that really helped markets until marketsed, we've got to do this again tomorrow. you have green arrows. u.s.