g left to give him. and he's worth every mile. [theme music] ♪ good morning and welcome to "street signs." i'm silvia amaro and these are your headlines. richemont surges on the unexpected boost on third quarter sales on track for its best day in 17 years and making luxury stocks shine. european equities follow wall street after the best day in two months on the back of the softer than expected cpi.

and uk gdp nudges up weaker 0.1% on the month in november, but rachel reeves will insist to work faster to kick start growth. the peace deal under threat as israel reports strikes in gaza. we start today's show taking a look at the action across the equity markets on the european continent today starting with the benchmark stoxx 600. looking at it, we have green for the stoxx 600. we are up .50%. this is continuing that positive

momentum that we witnessed yesterday when the stoxx 600 ended the session up 1.3%. there's a lot in the minds of investors, but all in all, though, the softer cpi print in the united states has provided some relief to european equity also today. on top of that, of course, we are seeing off the back of that, lower bond yields across europe, too, and very strong earnings that we will be discussing in just a moment. let me show you the different bourses we're tracking across the european continent. the ftse 100 is up almost .60% despite the weaker gdp print we obtained earlier today. i want that take a look at france. we have the cac 40 up at 1.5% at this stage. getting a lot of momentum there off the back of the earnings of richemont that we will be discussing in a moment, too. let me show you the earnings. household goods.

we're up more than 4% at this stage. we are seeing basically the results from richemont providing a lot of momentum for luxury names and that is basically boosting the whole sector at this stage. let me show you the individual luxury names to show you what is happening at this stage. look at it. richemont up 16%. they are seeing a very, very strong day, but all in all, that is providing momentum to all of the luxury names. lvmh is up 16%. christian dior up 15% here. why? richemont reported 10% increase in third quarter with sales and flagging strong performance at the key ewelry division, but warning the demand is still challenging. of course, charlotte reed has been looking at the numbers. charlotte, what is driving the momentum for richemont?

>> that someone of is one of thy plays reporting. one of the stocks in the green. q3 sales up 10%. it is the highest ever quarterly sales at 6.2 billion euro. it is across the board from different regions. in america, up 22%. again, the market is being closely watched because a lot of analysts expect the first green shoots with the luxury market there and this is reflected here. europe is resilient. sales up 19%. not just the tourist and north america, but higher domestic demand. very interesting to see that. middle eastern africa up 12%. asia is difficult. it is unclear in the numbers. sales down 7% in the region. if you compare to q2, the sales were down 18%. things are gradually looking better and improving.

china and that specific market down 18% still. you can see that thanks to the mix geographically, they are resilient. looking at the divisions, jewelry like cartier, they have the strong festive season. sales up 14%. now one division that has had difficulties in the past and difficult for different luxury players is watches. it grew across all regions apart from asia pacific. down 8%. in q2, it was down 19%. maybe signs things are finally looking up. you will see numbers much better than i expected and orders higher before they report their numbers. particularly europe being resilient. the u.s. is being very strong and a positive signal. >> it is starting the earnings season on a positive note for

the earnings season. i want to take you to latest u.s. flx print. we got that number yesterday. it rose to 2.9% year on year in december. the core figure unexpectedly slowed to 3.2%. now, energy and gasoline prices pushed the headline cpi number higher last month while food prices also rose 0.3% on the month. let's get a check of how we moved across the equity space stateside off the back of the cpi print. as you can see on the screen, it was a very, very strong day for u.s. equities. investors taking relief and p comfort from the softer cpi print. nasdaq ended 2.5%. the dow and s&p posting significant gains for the day. we also saw important moves in the treasury space. let me show you how we are

faring there. the ten-year treasury is sitting at 4.66%. what a move we have seen. not too long ago, we were discussing how treasury yields were moving higher. we were racking 4.8 a couple of days ago. and me show you how we are faring at the moment. a mildly possible itive start t trading day. it is a heavy day on the economic front. we get initial jobless claims, retail sales as well. we will see how investors will be digesting that and the earnings season is under way. today, we hear from bank of america and morgan stanley. let's digest all of this with our next guest. david grumman at citi. >> good to be here. >> i would first like to look at what is happening here. we are witnessing another change

of narrative for the u.s. equities. guide us what is your take at the moment. do you believe this is the narrative that will dominate the rest of the year or, perhaps, is the volatility going to be the main story really? >> i think it's tricky especially with rates. this has been a big story now and the truth is it really matters what's driving rates in terms of what knock-ons are for equities. the growth outlook is optimistic. that is okay for equities. equity with a big move in rates before it is a real problem. it is about inflation worries that equities start to get jittery. we get a news story where inflation is surprising to the down side, you can see equities take that very positively. >> investors were very keen to get a little bit of positive news, really. talk to us about how you are looking at europe because i had recent guests in days that are suggesting this is the time to

buy into european equities. do you share that view? >> yeah. >> where? >> on the global allocation and the tailwinds propelling u.s. exceptionalism. we want to get past the inauguration day. europe is our favorite diversifier and cyclical rest of world space. maybe we are moving past what is peak bearishness on europe. a quarter ago, recessionary levels were going down. now we have seen that stabilize and actually sort of flat line. as we head into the earnings season, it is not for thelevate. europe needs to see good price action. that's what we are seeing in places. >> the level of expectation. it just needs to do okay. i noticed in your notes you believe there is an implying 10%

upside for the xx 600. i would like to get more color in what sectors would see the strongest gains. talk to us about that. >> sure. we are forecasting 10% upside. that is concern with the valuations are flattish and you can get below consensus earnings of 5% over the course of 2025. that accounts for risks of tariffs and the like. what we like are the more beaten down cyclical sectors. we like consumer products and goods and tech as well. we upgraded basic sources. we are playing the european story and that's where the potential upside this year. >> given the luxury you mentioned there, i would like quick reaction to the numbers of richemont. of course, very strong earnings today. do you think that is actually telling us a oader picture? >> it is the broader story on

europe. lux goods is in the midst of the earnings recession. we saw huge downgrades to forecasts. that reset expectations on a lot of the stocks. the valuation set up is more attractive going forward. you get the upside urprises. >> david, i would also like to get your thoughts on the geographical breakdown. we have 2024 with a lot of gains for the dax. the german market doing quite well last year. i was looking at the chart for the italian market. over the past year, the performance there is quite strong compared to the stoxx 600. please explain to us how you are looking at italy in the broader european context. >> yeah. when we look at europe and breaking it down on a country basis, the places we like most are places like france. similar story. places where there were big downgrades to earnings that maybe price action was overdone

to relative to where the earnings gap was. we like france. europe is another one. it has more defensive characteristics, but interesting in the environment with dollar strength out there because of how internationally exposed there is. i think there is potential for at least relative out performance for the ftse 100. >> the call is interesting with all of the volatility on the political scene. david, i would like to get your thoughts on the banking sector as well. we just heard from some of the u.s. p imagine majors to start earnings season. what is outlook for european banking with the growing consideration with the consolidation? >> it is interesting if you think of banking in a global context. we are thinking about financials. we are overweight globally. when you think of the impact of trump on the global outlook, it is different for the u.s. than europe. it is one of the few sectors

where there has been continued upwards momentum. it is a place that out performed relative to the rest of the pack. valuation still looks okay. we still feel okay about the european banks even if trump policies have a more deflationary impact on europe. >> it is exactly where i would like to go next. would you say the wild card for european equities this year is actually whatever the trump administration is going to decide in terms of tariffs? >> yeah, certainly. >> what do you want to sell really? >> yeah, yeah. this is the tricky thing how much this is already in the price to so degree. there is a tactical view you need to take and medium view. we have soon significant under performance around the u.s. election much more than in 2016 or the key trade tensions in trump 1.0. could this be overdone?

potentially. the key driver is where the u.s. dollar goes which is strength evening. maybe if we have a change of narrative on inflation or rates, that could change the narrative on the dollar which changes the outlook for europe. further out, it depends on whether we get in terms of tariffs. some of the big internationally exposed sectors. you expect autos and industrials and lux goods. we will follow-up on the threats with the 10% broad tariffs and autos. we don't know. i think that's absolutely key and dictating the medium term view. >> perhaps not long given the inauguration is next week. david, thank you for your time today. david groman at citi. coming up on the show, good and bad news for the uk as the economy grows for the first time in three months, but less than expected. we'll discuss the wider outlook after this break.

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welcome back to the show. now, the uk economy grew for the first time in three months in november, but came in at half he can expectations at 0.1%. the chancellor rachel reeves is determined to go further and faster to kick start economic growth. cnbc sister channel sky news talked about what trump 2.0 could ean for the british economy. >> i think it's going to be a challenging time for anyone responsible for trade in the bigger economy with the dges made in the campaign. look, there are opportunities for the uk. lots of things i as the business secretary would like to see

doing more closely with the u.s. like technology and digital trade and services. if we can clab ollaborate on th we will look. >> are you worried about the tariffs? >> it is greater. a lot of our work is preparing for that. meanwhile, the bank of england may need to cut as many as six times this year amid a stalling economy according to mpc member alan taylor said the gradual growth is four cuts bringing rates to 3.75% by the end of the year. he added recent uk data showed an increasingly gloomy outlook for 2025. we have uk assets on the screen right now. let's check how we are faring. the ftse 100 is higher by .60%. the sterling under pressure down .30% against the u.s.

dollar. let's discuss this with our next guest. martin at kings college london and former bank member joining us today. great to have you on the show. first and foremost, i would like to get your experience as a former member of the bank of england here. when you think about the cpi print obtained here, the latest gdp figures coming in this morning, would you be cutting or actually suggesting to the bank of england to keep rates on hold on the 6th of feb? >> i wouldn't be in a rush to cut. i think the analysis is correct about growth being weak and there are some positive indications that inflation is sustainably staying close to 2% which, of course, is the bank of england's target, but at the same time, the uk is subject to

international disturbances and so on and in particular sterling's weakness does have an impact for the cost of living in britain. he mpc will need to take that into account. >> i was interested in this latest comment from alan taylor suggesting that, perhaps, we could still see the bank of england cutting six times. what would you take to actually see the bank of england going ahead with so many cuts? >> i think what it would take is the indicators of inflation are still above target. services inflation, for example, or incompatible with the target. services inflation and growth of wages and so on. the bank of england would need to see those fall back within the 2% target. taylor is saying they are well on their way there.

i hope he's right f.. in that case, the bank of england would be able to cut without inflation. obviously, there remains a lot of uncertainty and to be pencilling now a cut at almost every meeting. it could turn out to be what happens, but who's to know what the situation would be in the autumn of this year >> exactly. i guess this is the start of this year. what i would like to understand here is whether you expect any sort of change from fiscal policy perspective, too. obviously, with the recent spike in gilt yields over the past week, of course, we're not seeing that at the moment, but given what we have seen recently, do you think the treasury has been forced coming up with a different fiscal approach going forward? >> i think the issue isn't so much a different fiscal approach

is whether the current fiscal situation is incompatible with the approach that it set out. i.e. with the chancellor's fiscal rules. if medium and long-term interest rates stay where they are, fortunately they've come down since the end of last week, but if they stay where they are, the calculations will be tight and there may be cuts in the early part of this year or announced in the early part of this year >> would you say, perhaps, they need to go back to the boardroom and discuss the possibility of changing taxation as well because at one point cutting government spending might not be enough to please the markets? >> well, i think the question is not so much pleasing markets with interest rates where they are, what will make it possible for the government to meet its

fiscal rules. i also think that there's a set no longer term problem with the fiscal rules. although debt is supposed to be falling in the future. what we've seen over the last 20 years is the national debt rising when things go wrong and they're not coming down when things are working better. if that happens, of course, it just keeps on rising in the long run and then people start to doubt the government will be able to collect the taxes to repay it or pay the interest. >> i would also like to get your thoughts on what we heard recently from recruitment companies basically highlighting the hiring has come down and there's pressure on businesses after the announcement of the latest budget from the labour government. what is the picture for the outlook of the uk economy here? are you concerned, really, about what 2025 will have in store for

us? >> well, there's always plenty to be worried about. i think the picture you described from the labour market is consistent with what we are seeing in the growth figures. it will be interesting to see how the chancellor thinks she can revive growth. >> do you think they can actually provide us with the 2.5% gdp growth they actually suggested going into this government? what would it take to actually see the uk economy growing by that much? >> well, first of all, i think we would need to increase labor force cipation again. secondly, it would need an upturn in private sector investment and finally, it would need an improvement in so-called residual growth. the technical progress that isn't explained by capital investment.

the trouble is the resistance on the individual growth. lots of people talk about simple explanations, but over the last 100 years, lots of policies have been tried and it's difficult to say they've worked. >> but there's one clear policy that they seem to be pursuing at the moment. we saw rachel reeves going to china. she also went to brussels. it seems that it's to the outside world they are looking at trying to have greater lengths with other parts of the world. do you think that is the right approach because that sort of policy takes a while to take momentum? >> well, i think it is the right approach. one of the issues of brexit is we were cut off from our main trading partner and i think the labour government is quite right to want to improve britain's trade opportunities. now, as you say that it's not

obviously going to work next week or next month, but the government has to think about the long term as well as the short term. >> right. we appreciate your time today. thank you for joining us. martin at kings college london and former member of the bank of england as well. on to corporate stories today. deliveroo sees the adjusted ebitda to the 110 to 130 pound range. $2. 2.07 billion wounds. wise was driven by sustained volume growth. the fintech company said it has seen rapid customer growth as well. in uk home builder news. taylor winpey said it expects

increased build cost pressure amid a changing economic back drop, but says it is well placed to build more homes this year than last. the company said it is seeing an encouraging level of inquiries and is on track to meet its full-year operating profit target as well. and whitbread increased guidance despite falling 2%. strength in germany remained robust with sales up 23% in euro terms. shares at this stage under pressure. in other news, stellantis posted a 9% fall compared to last year. that decline was even more pronounced in north america where shipments plunged 28%. the carmaker says it is normalizing entries and putting

it in a stronger position ahead of new launches next year. shares up .50%. renault says the sales jump of 1.3% in 2024 to more than 2.2 million vehicles was helped by strong revenue in the line of hybrids, but the figure was still significantly lower than 2023's 9% increase underlining the challenges of the auto sector next year. renault is expected to report full earnings on february 20th. coming up on the show, israel and hamas secure a cease-fire deal after 15 months of fighting, but the agreement is already showing its first signs of weakness. we'll discuss after this break.

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welcome to "street signs." i'm silvia amaro and here are your headlines. richemont surges on the unexpected boost of third quarter sales on track for its best day in 17 years and making luxury stocks shine. european equities follow wall street into the green after u.s. stocks post their best day in more than two months on the back of softer than expected cpi. uk gdp nudges up weaker than expected .1% in november, but chancellor rachel reeves will go further and faster. and a cease-fire in gaza hangs in the balance as israel accuses hamas of reneging on some parts of the deal with air

strikes reported in gaza. time now to get a fresh check on what is happening on the benchmark today. stoxx 600 extending earlier gains and the investors are taking softer print said tatesi and the earnings season is under way and we did get a lot of momentum particularly from richemont. let's show you the different bourses and how they are trading at this stage. we have a lot of pside in france where we have the main market up 1.6% exactly because this morning we are witnessing a lot of momentum for luxury names. let me show you how the different sectors are faring so

we get a better understanding of what i mean there. household goods. look at it. the best performing sector up 4.4%. why? it's a lot to do with the moves over in the luxury names. let me show you these in specific detail. let's get a check. look at richemont shares. we are up 17%. this company's actually on track to see its best trading day in 17 years. let's see what will happen across the trading day. nonetheless, a lot of momentum across the board. you see christian dior shares up 8%. similar moves for lvmh and burberry up . let's get a look at u.s. futures. they project a positive start to the trading day on wall street. it is worth keeping in mind yesterday was a strong day off the back of the softer cpi

print. nonetheless, today is busy day on the economic front. economic claims and retail sales and let's see what is has in the health of the u.s. economy. let's not forget it is earnings season and two of the major u.s. banks are reporting later today. now, israel and hamas agreed a cease-fire and hostage release deal after 15 months of fighting. despite the deal which could take effect as soon as this weekend, israel strikes were reported in gaza late wednesday and into this morning. in the past hour, israeli prime minister benjamin netanyahu accused hamas of reneging saying it will not reconvene until all elements have been accepted. hamas said it is committed to the cease-fire agreement which

was announced by the made ediat. dan is following all this and joining us now. dan, i would like to understand what is happening at the moment. are we still on track to actually see this cease-fire implemented? >> reporter: well, we are seeing signs of fragility. this three-phase deal is complex and fragile at best. as you explained, the prime minister's office reneged on the deal until hamas has accepted all elements of the agreement. you also explained a hamas official says hamas is committed to the agreement. that is only information we have at this stage. it is fair to say skepticism is running high and it can hold after 15 months of brutal war.

we have seen president biden and president-elect trump both claiming victory for this deal which saw qatari officials free hostages held in gaza starting from sunday. the hope in the region is that the cease-fire will, indeed, hold and it will kickoff at the end of the weekend. of course, what happens now remains to be seen. here's president joe biden speaking earlier. >> this deal was gotiated under reply my term, but the implementation in the next administration. this is a time of turmoil in the middle east. as i prepare to leave office, our friends are strong, our enemies are weak and there is a genuine opportunity for a new future. >> reporter: joe biden there.

this deal, as i mentioned, is going to be completed or aims to be completed in three phases. phase one lasts six weeks. phase two will see living hostages released and the third phase is the reconstruct of gaza. we have seen phase one being successfully negotiated, but phase two and phase three are still illusive at this point. yes, a positive cease-fire, but it still does nothing to solve what is the original cause of the conflict which is the deep rooted and ongoing differences between israelis and palestinians. what we will see now is the issue inn her herited by the in

administration. president-elect trump said hell would pay before his inauguration. he got what he wanted, but now he is responsible as well as regional leaders for building back a middle east that has really been put on edge and really turned around in so many ways by israel's war by hamas and gaza and israel's war against hezbollah in lebanon as well. silvia. >> thank you for the update. a fragile situation. elsewhere, armed conflict is the risk for 2025 according to the world economic forum. the group also flagged misinformation as well as environmental risks as key concerns as 2025 global risks. the managing economic forum told me why the conflict is the top of the list. >> the climate ranking in terms

of the severity of risks and the likelihood is state-based armed conflict. this is the top risk based on the data for the current timeframe 2025. we are all seeing a more competitive geopolitical environment and we are seeing a record number of conflicts around the world. we assume, of course, that some of those data and perceptions are related to -- we have, of course, the unfortunate war going on in ukraine. we have conflict in the middle east. we have humanitarian emergencies in sudan. uncertainties, humanitarian wise, in somalia. this is the data and some of the attendant analytical pieces. next week, cnbc will be live

from the swiss alps in davos. we will speak to top policymakers and business leaders and conversations with the new chief teresa ribera and the finance minister and imf deputy. we will hear from the dutch prime minister and ceos of lseg and abu dhabi. it kicks off live on cnbc international youtube page. i want to take you to breaking news from the chinese commerce ministry. we are just obtaining flashes on this. they are saying they will initiate anti-dumping and subsidy investigation into the u.s. subsidies in the chip industry at chinese chip

industry request. they obtained a request here to look at u.s. subsidies to its chip industry and chinese commerce ministry now actually initiating an investigation here. of course, this is particularly important after the recent moves from the united states in terms of export restrictions for chip makers as well. all in all, it just highlights, really, how chipmakers, how this sector has become also heavily politicized to some extent because of their importance, really, for the industry and for global economy as well. speak of chipmakers, tsmc posted record profits in the fourth quarter with net profit rising 57% on the year. revenue from the high performance computing rose on

the quarter while internet of things fell 15%. let's get a check of eu chipmakers are moving at this stage. we have asml, asmi and st micro higher at this stage. infineon in germany up .20%. our very own emily filed this report. >> reporter: tsmc posting profits as it continued to benefit from strong artificial intelligence demand for its advanced chips. income surging 57% to $11.38 billion. revenue jumping to $26.9 billion. the chipmaker forecaster 21% revenue growth on the year on the a.i. demand. capital expense reach $32 billion to capture future growth with 70% of that for advanced

processing technology. tsmc is under scrutiny after a chip discovered in the huawei device. a company black listed by the united states. the tightened restrictions from the u.s. are not an issue. the incoming administration as well. >> the first look is manageable. meaning my customers who are being restricted. we are applying for the special permit for them and we believe we have accomplished they will get some permission so long as they are not in the a.i. area.

especially automotive, industry, or even you talk about quantum computing. >> reporter: tsmc says the first fab in arizona entered volume production. the ramp up process is smooth. stay tuned to cnbc for my interview with the cfo on monday. reporting from t'aipei, i'm emily tan. coming up on the show, as the clock ticks down for bytedance, we will discuss more after this break. (man) robinhood gold members get an ira transfer boost of 2%. when you transfer in an ira or old 401(k) by april 30th, robinhood gold will boost it by 2%.

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welcome back to the show. as we approach the end of it, here are the three things to get you up to speed ahead of the open on wall street. it is heavy with jobless claims and retail sales and international association of home builder survey due today. earnings season continues with bank of america and morgan stanley reporting today. chipmakers are in focus after tsmc reported a record quarterly profit pointing to strong a.i. demand. let's focus on u.s. banks. they kickoff the earnings season on wednesday with wells fargo, citi, goldman all close higher. only to miss on revenue or earnings per share. the moves cap a stellar run for the lenders during the biden presidency with citigroup the only one to post less than 50%

share growth. only one of the banks beat on eps with goldman the outperformer earning investors $12a share. jpmorgan posted a quarterly record earnings which beat expectations by more than $2 billion. wells fargo's revenue figure came in just short of forecast. citi announced a $20 billion buyback despite cutting its profitability target in 2026 with the first $1.5 billion ear marked for this quarter. meanwhile, the jpmorgan cfo hinted at further buybacks after jamie dimon said it would not buy back a lot of stock at this prices. all of the banks benefitted from soaring banking fees and looser

policies helping lenders boost income by as much as 59% in the case of wells fargo. the downward shift in interest rates weighed on interest income as you would expect. investors welcomed jpmorgan analyst it will bank $94 billion in nii next year. in the fourth quarter, it posted its first decline in the metric since 2021 down 3% to $20.5 billion. wells fargo net interest income figure came in higher on the quarter, but more than 7% down on the year at just under $12 billion. said the metric could rise as much as 3% this year. bank earnings will continue out of the u.s. today with morgan stanley and bank of america set to dominate the conversation. let's get a check on the pre-market moves. we have both bank of america and morgan stanley tracking higher, but let's see what will be the

messages and respective share price moves later today. we will hear from citi's jane fraser. she will speak to cnbc at 18:30 gmt. we will hear from the bank of america ceo brian moynihan coming up at 7:45 p.m. gmt. now apple ceo tim cook is expected to attend president-elect trump's inauguration according to bloomberg. several tech titans are expected to attend next week's ceremony with insider reporting that google ceo sundar pichai will be there alongside the likes of amazon founder jeff bezos and meta ceo mark zuckerberg and tesla founder elon musk. tiktok's susie has received an

invite. this as president biden is looking to keep tiktok in the u.s. as the deadline to sell is fast approaching. the president-elect is mulling an executive order to suspend the enforcement for two months giving his administration time to negotiate a solution. let's discuss this with our next guest gene munster. gene, great to you have on the show. first and foremost, i'm curious how you are reading all of these developments. it seems a little bit confusing the messages we seem to be getting from the biden administration. what is the most likely scenario here? are you expecting this ban to be implemented? >> silvia, i think the most

likely outcome surprisingly is a sale. i knee will come to a low probability to some, but play this through a little bit. there are so many layers to this. before i get to why there is a sale, i want to draw a clear wlien line with the fate of tiktok and the geopolitical landscape around trade that's going on. i think they are inter related. when it comes to a sale, the reason why i think that is most problemable probable, at the end of the day, there is support for the ban. 80% in the house. 82% in the senate. we never see that tip. on what you see on the congressional vote is a 55% for any sort of measure. what we have here is something in terms of bipartisan we haven't seen for a long time. what that means is despite

trump's commentary about anting to keep this around, it is unlikely with his political strength to get this across the goal line. that begs the question why is trump continuing to support this. i think there are two factors to that. from one side, it is giving a nod to his base who loves this product. this is a highly addictive product. we're talking about over an hour of average time spent. 170 million americans use this daily. so, i think some of his commentary speaks to that group and also, i think, it elevates this concept there must be some sort of way forward and a sale would be one of those ways forward. silvia, just one more piece to this is, of course, bytedance and chinese leadership said this would amount to robbery if they were forced to sell this company. i put that in the category of i

think rhetoric, too. at the end of the day, if they can monetize 50 or $100 billion for this asset, i think they will gladly take it. i think we're a long way away, but my expectation is this ends in a sale and the platform stays active in the u.s. >> so, you are a assuming a sale. who would be buying it? we saw elon musk could be involved here. do you think that is actually likely and talk to us about the winners here of that potential sale? who would have to win the most from that? >> well, i think from the sale perspective, the x musk is one obvious. "the wall street journal" is reporting conversations. bytedance has denied that as they should deny that. that would probably be the most likely outcome for all of these wonderful factors that are in

play. i think there is something that goes around this relationship with zuckerberg and trump and how that has been moving forward. as you can play through the calculus of this, as zuckerberg gets closer to trump, you could build an argument that bodes well for tiktok to be banned. it also could open a window for what would be a big surprise here which should be for meta to acquire the company. google from what they are doing in reels and youtube and other players that orbit that universe that aren't on the top list. i could potentially see telco participate in something like this, too. i think there are buyers out there for this. i think there is an incredible sticky product they have. i think those are probably the top two or three that i would expect. >> all right. let's see what will happen. no doubt it is a fascinating one to monitor. thank you for your time today.

gene munster. managing partner at deepwater asset management. a final check of how we are trading in the european markets. all in all, it is a positive day with particular upside in france with the main market up 1.8%. why? let me show you the luxury names they are driving a lot of the momentum for the european equities today. we had richemont earnings very strong. richemont shares up 17%. so that providing a lot of momentum across the sector. that is it for today's show. i'm silvia amaro. stay with cnbc. "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." big tech comeback. mag seven doing something for the first time in more than two years. and the white house warning. president biden with the ominous outlook for the next four years and his farewell address. oil surging highest since august with the prices eyeing the georgia the gaza deal. and watching the man who could become the next secretary