there will be a shift in ownership. >> the main thing is not just. >> cutting costs, but getting rid of. all the regulations. >> i will very simply put america first. >> the trump impact on business and the economy for the first 100 days and beyond. cnbc. it is. it is 5:00 a.m. here at cnbc global headquarters, welcome to "worldwide exchange." here is your five at 5:00. president trump launches stargate aimed at a massive ai investment here in the u.s. trump asked china to his february 1st tariff target as the ec b's christine leg guard weighs in on day three of donald trump # 2.0. record user growth and new price hikes plus the race between nvidia and apple takes an unexpected turn and why tiktok's future in the u.s. could be in elon musk or another

billionaire's hands. it is wednesday, january 22nd, 2024. you're watching "worldwide exchange" right here on cnbc. good morning, thanks for being here with us, i'm frank holland. let's get you ready for the trading day ahead. we begin with a check of u.s. stock futures with all three indices finishing higher on the first trading day of the second trump administration. futures are higher as well. the s&p up about 25 points, the dow looks like it will open almost 75 points higher, the nasdaq best performer up 169 points. we are about three quarters of 1%. with the nasdaq leading the major indices we will do a quick check of the top nasdaq 100 gainers in the premarket. netflix not surprisingly the leader, shares up over 14%, followed by arm holdings, marvell technology, nvidia and palantir. a chip and ai theme after netflix. palantir shares up over 2% as well. much more on netflix and the

action on nvidia and microsoft coming up. we also want to check the russell with the small caps outperforming yesterday, taking a look at russell futures, fractionally higher at this hour but far outperformed the market up over 1.5% yesterday. in general in the market we saw a big broadening with industrials leading as well as transports gaining nearly 1.5%, both areas getting a big boost from president trump saying the u.s. will become a manufacturing nation. you see the upside moving industrials up about 2%. again, dow transports up almost 1.5%. we will follow the movies throughout the day. we want to look at the bond market. yields eased a few basis points as investors digest the proposed policies of this new administration's tariff and immigration proposals, both potentially seen adds inflationary. we saw bond yields ease back, benchmark 4.6%, falling from the levels we saw last week and recent weeks overall. want to look at the energy market as well. oil prices they are moving lower this morning, the president also

issuing a national emergency order focused on increasing production. the middle east ceasefire also a factor. i have to take that back, we're seeing reversal. earlier not so long before the show we saw oil pulling back, right now we're seeing oil higher. wti crude and brent crude also up. we also want to look at cryptocurrency, bitcoin back above 105,000 on the launch of those donald trump and melania trump meme coins, also comments from the s.e.c. it's launching a cryptocurrency task force. we are seeing crypto pull back, bitcoin trading just under 105,000 right now. crypto trades around the clock. ether, solana pulling back. we want to turn back to stocks and big "money movers." we already talked about t it is netflix surging after adding a

record number of subscribers in the quarter, topping the previous record it set during the pandemic and more than double the estimates. netflix said the record numbers are the result of its content investments and live streaming events. netflix also raising its prices. standard ad-free plan will start at $17.99 a month. netflix says starting in april of 2025 it will stop providing quarterly subscriber numbers including average revenue per user. shares of united airlines are higher thanks to strong travel demand. shares up over 3.5%. current quarter outlook coming in ahead of estimates. shares are up more than 180% over the past year ahead of in i other u.s. carrier. up over 3.5%. scott kirby will speak exclusively to cnbc at 9:35 a.m. eastern time. we want to turn to that horse race for market cap dominance, nvidia surpassing apple as the world's most valuable publicly-traded company and it's extending that lead

this morning. we're taking a look. nvidia coming in at $3.541 trillion, apple's market cap at 3.341. a bit of a gap there. apple lower moving on a series of downgrades in recent days. loop the most recent. say they expect a material slowdown in iphone demand this year. nvidia's move higher is also tied to d.c. and president trump, yesterday announcing his latest initiative an ai venture between oracle, openai and softbank that he is calling the stargate project. taking a look at shares of those companies, all moving higher on the news. the white house yesterday openai ceo sam altman, the kro ceo of or arcel larry altman, saying they are investing $100 billion immediately. trump speaking with reporters about the stargate project. >> this is to me a very big thing, $500 billion stargate project.

i think it's going to be something that's very special. it will lead to something that could be the biggest of all. >> in a post on x openai says our microsoft nvidia will be the impacts with mass a son chairing the project. tariff threats as a way to renegotiate the usmca. it's one that the president himself he actually brokered during his first term in office. the "wall street journal" and "new york times" say trump is especially focused on changing automotive rules under the deal forcing car plants to move from canada and mexico back to the u.s. the report adds trump will lean on yet to be confirmed howard lutnick to handle the negotiation. speaking with reporters at the white house last night he talked about pressure on china. >> we are talking about a tariff of 10% on china based on the fact that they're sending

fentanyl to mexico and canada. >> how soon on those tariffs. >> probably february 1st is the date we are looking at. for mexico and china, we're talking about approximately -- approximately 25%. >> beijing responding to his latest comments reiterating there are no winners in a trade war or a tariff war, adding, china will firmly safeguard its national interest. it is day two of cnbc's coverage from the world economic forum in davos, 3,000 leaders from business, government, academia and more are gathering to discuss this year's theme, collaboration for the intelligent age. our andrew ross sorkin joins us from davos with the first of two special guests for this hour. andrew, good morning. >> frank, it's great to see you and we do have a very special guest, the ceo of accenture. one of the largest employers in the world and one of the great advisers to many corporations around the world. i want to actually ask you about both of the things we just saw frank talking about, if i could, because it's the topic du jour

here, ai and tariffs. i don't know where you want to start. i may start with tariffs if you would indulge me. >> sure. >> what is your sense of what's really going to happen here and what you are hearing from ceos, not ceos in the u.s., necessarily but foreign ceos. >> you know, what we are hearing from foreign ceos is a lot of questions about exactly what you just said, what is going to happen, right? and a view on what does that mean in terms of, say, what does europe need to do. less about getting into a trade war and more about competitiveness in europe. as a global company with 40% of our business in europe that's a really important focus is are some of these conversations going to, you know, really make some changes in some europe is focusing on competitiveness. >> i imagine they're calling you up saying is there something that we can do, meaning is there something we should be meeting with the president about, something we should say, any way we can get a carveout. what are those conversations

like? >> those conversations are actually not happening mostly right now because it's pretty unclear what are the tariffs going to be on what products they're going to be. it's a lot more about how do we reset the conversation in terms of engagement, what do we need to do as europe, and a lot of investment in the u.s. is happening from europe and around the globe. when we talk about the u.s. ourselves as a growth market and so i think you're going to see a lot of different reactions in terms of do i need to invest more, do we in europe need to think differently about our competitiveness and of course a lot of open questions on how best to engage. it's a new administration, those are the things you always have. >> what is your sense of just the economic confidence that ceos have around the world right now? what are you seeing in terms of the different pockets? >> in the u.s. we're definitely seeing a lot more confidence in the economy and in, you know, areas like potential deregulation. in europe, europe is still facing a lot of challenges

and -- and they have had a real -- they're behind in digitization, they don't have the leading ai companies and so less confidence in europe. and asia depends on where you're at, right? japan highly confident, for example, we have one of our biggest businesses there. >> let's talk ai. and i want to relate it to the workforce, if you would indulge me, which is there is a debate happening and we have marc benioff coming up on the broadcast a little later, we also have satya nadella after that and we have dairy amodei. he said we're going to have agi three or four years from now and it's going to revolutionize and change everything. marc benioff is already saying he's not hiring he's not hiring any new engineers because he doesn't need to. and yet there is a question mark about what that means for labor, meaning -- i don't know what you're doing on hiring right now.

do you have -- do you have a view that we are five years away from really having a -- i don't know if it's a labor crisis, but a complete rethink about labor? >> andrew, last year we launched our business called learn vantage which is all about upscaling and it's exactly because today the biggest barrier to using ai is not the technology, it's actually having the talent who has been upskilled to use ai and then reskilled to take advantage of the opportunities. so we're growing and we're hiring because we're helping companies do that. >> i'm scared, though, when i hear from people like dario that it's not that we need to be upskilled, it's almost that we need to be down skilled, meaning that the higher level skills of the, quote, white-collar worker are the jobs that will go first. >> i don't believe that's accurate. why is that? because what we're seeing if you look at the companies that have been most successful, so companies who are actually, you know, the landscape, they're -- have bigger conversions in their

marketing, right, who are now starting to use physical ai to reduce downtime. what it takes to do that are actually deep specialists in the industry, in the processes, to rewire the organizations, and so it is shifting. and we're creating new roles. we use it in marketing. we now have an ai people manager because the ai actually doesn't operate completely independently. >> ai people manager. so the ai is not managing other physical people? >> it's a person now managing ai, just like you have managers for your people. >> i see. real quick, tell us -- you announced at ces a partnership with nvidia, what is that about? >> that is about building on top of nvidia technology the part form that allows companies to move from lots of experimentation to scale because you have to onboard models, you have to have a place to have your digital twins -- i mean, the digital agents be trained and you have to have the

guardrails. right now companies are using a lot of tools, but they don't have that. it's super exciting. and then we're taking real use cases like in physical ai we announced work we're doing with keon. physical ai is what you're going to hear next year. i'm telling you that is the next thing. >> physical ai. >> physical ai. >> write that down, frank. frank, you want to jump in here with a question. >> thank you, andrew. julie, good morning, it's frank holland. i wanted to ask you about physical ai and your work with keon and nvidia on pair housing. it seems focused on things like electronics and apparel coming in and going out. the president said he wants to focus on domestic manufacturing. if that happens can the same software handle that more complex supply chain where finished goods move from site to site and sometimes over borders? >> absolutely. one of the biggest areas that is still early, because physical ai is early, is actually the complete supply chain, both

complex and more simple, and that's why, you know, my prediction of what we are going to be talking about a year from now at davos is that. that's where we are investing a lot in manufacturing, in warehousing and really taking ai to the core value chain. it's going to be really important in every country in the world. >> julie sweet, thank you. great to see you. >> great to see you. >> frank, back to you. >> our andrew ross sorkin with the accenture ceo julie sweet. sticking with the conversation at davos and on one topic in particular, donald trump and what his multifront trade war what that could mean for the eu. we sat down exclusively with christine leg guard earlier this morning discussing just that and her relief that trump did not target the bloc on day one. >> this was unexpected. i think it's a very smart approach to the matter of trade because blanket tariffs are not necessarily giving you the results that you expect.

and i'm not sure exactly what result is expected whether it's a transactional tool, whether it's going to be a pure trade tool, but i'm not really surprised. but it doesn't mean to say that it will not happen. i think it will be a more selective, focused development that we will see in the next few days or weeks, but i think what we need to do here in europe is to be prepared and anticipate what will happen in order to respond. >> during our interview laggard added she is not worried the u.s. or other country will export inflation to the eu. more coming up on "worldwide exchange." my next guest is warning of a first half pull back with caution flags around the mag 7. plus donald trump says the future of tiktok in the u.s. could be in the hands of elon musk. and later alphabet makes a play against one of openai's

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>> welcome back. >> to worldwide exchange. t welcome back to "worldwide exchange." the markets are seeing positive momentum as strong earnings combined with policies by president trump boost investor sentiment but the uncertainty over the threat of tariffs over china and the eu is keeping the dollar low. we have to talk about this news, the threat of tariffs on the eu

just kind of adding to the pot and the mix of other tariffs potentially on canada and mexico, but still today this morning we're seeing the dax trading at all time high, tse at all time highs. is there more headline threat when it comes to tariffs? >> we would say that there is certainly more headline threat, especially in the oversees market, but even in the u.s. we think that there's going to be a lot of uncertainty not only with tariffs but also with other policies that are going to be there, plus with inflation and rate cuts. so that is why investors should be cautious in the first half of the year where we could potentially see a pullback in the markets. >> the markets are on a bit of streak, nasdaq up two days in a row, s&p and dow up five out of the last six days. you think there will be choppiness and volatility in the market. what causes the volatility? we've seen bond yields cool a few basis points after some of

these tariff threats that a lot of people thought would lead to bond vigilantes worried and yields going up. >> i think there's uncertainty. >> what's the uncertainty. >> uncertainty around policies, around rates, around inflation. plus there could be policy missteps. even if, let's say, for example, they do tax cuts but it's not retroactive to jan 1, 2025, that could cause scale back in business activity that would cause a pull back. so for that reason we think that the momentum names are vulnerable over here and investors should shift their focus away from momentum, more towards the value parts of the market. >> we have to talk about momentum at least on the first trading day of this new administration. we saw industrials lead, cyclical sector gained about 2% yesterday. a lot is based on the president saying he wants to see more manufacturing here in the u.s. is that becoming a momentum trade, the idea of industrials,

utilities because we will need more power, need more things built in the u.s. to achieve the president's goal? >> absolutely. even if you look at utilities, for example, with this artificial intelligence that we are seeing, data centers. we expect that the power demand from data centers is going to triple over the next three years. so the demand for artificial intelligence is going to skyrocket and utilities and electricity, the demand for that is going to increase. we really think those type of sectors will do fairly well. >> so you think they will do well. is it also based on fed rate cuts or is that going to move higher regardless of what the fed says coming up in a few days and even if the fed is hawkish? >> we think with the fed we will probably see two rate cuts of 25 basis points each this year and the reason for that is that even though the tariffs are inflationary, we have other deflation naer factors that are playing out as well. for example, we were talking about ai, productivity increases caused by that, reduction in

government spending, which are deflationary. so for that reason we think that the fed stays on track with two rate cuts and that will be positive for the markets. >> you are a bit more optimistic than everybody else. i think only one is being priced in. you also have a pick for us, the way to play the theme with more industrial expansion and manufacturing expansion. >> absolutely. we do like -- we spoke about utilities, you know, we do like the use by the utility which gives you broad ex peesh ur to that. we also like manufacturers equipment used to manufacture and distribute power. the demand for their company will go up. >> great to see you as always. thank you very much. still on deck on "worldwide exchange" netflix's big earnings beat and what's keeping my next guest from slapping a buy rating on the stock.

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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. >> this year, taxpayers in 25 states are eligible for the free tax filing program irs direct file. to qualify, you must have income from w-2 wages, social security, unemployment compensation, retirement or interest income and claim the standard deduction for cnbc. i'm sharon epperson. >> welcome back to "worldwide exchange." let's get a check on this morning's top corporate stories including one tech yient giant's new ai investment.

>> frank, good wednesday morning. "the financial times" reports google is making a fresh investment of more than $1 billion in ai startup anthropic. earlier this month reuters and others said anthropic was close to raising $2 billion in a new round of funding led by light speed venture partners valuing the firm at about $60 billion. the ft says google's investment is separate from the light speed funding. google has already invested $2 billion in anthropic, both companies haven't commented on the ft report. the ft also reporting tiktok's parent company bytedance plans to spend more than $12 billion on ai chips in 2025. the paper says that would double the amount the chinese-based company spent last year, about 60% of bytedance's domestic chip order would go to chinese suppliers such as huawei. the ft says the rest will be spent on nvidia chips that have

been reconfigured to comply with u.s. export controls. as for tiktok's future in the u.s., president trump says he is open to elon musk or oracle chairman larry ellison buying the social media app if either billionaire wants to do so. the president addressing tiktok yesterday. listen in. >> the deal i think is this, and i've met with owners of tiktok, the big owners. it's worthless if it doesn't get a permit. it's not like, oh, you can take the u.s. -- the whole thing is worthless. with a permit it's worth like a trillion dollars. so what i'm thinking about saying to somebody is buy it and give half to the united states of america, half, and we will give you the permit and they will have a great partner, the united states. >> and, frank, president trump signed an executive order monday delaying enforcement of the u.s. ban on tiktok for 75 days. >> a very different public/private partnership if it

does come to pass. >> totally. >> very different. u.s. investment in tiktok, interesting idea. thank you. coming up on "worldwide exchange," the three emerging markets expected to outperform ouder president trump. r seema mody is here with that and much more. stay with us. italy. today you're the ceo of vodafone. what is your strategy and vision for the future? >> we are changing. >> our culture to really. >> focus on our customers. >> we need to. >> acknowledge that change is. >> hard, but. >> if people. >> understand it's for. >> the right reason. >> then you get. >> the power of the organization. organization. >> with you. (vo) what does it mean to be rich?

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events, we had an incredible fight, two nfl games, one of our biggest tv series ever in "squid games season 2." all successful events and titles we are thrilled about. our estimates for subscriber ads driven by those titles combined represent a small minority of our total member acquisition in the quarter. so it's really the whole service that's working. that was netflix co-ceo great peters on the call talking about the amazing quarter for the streaming giant and investors appear to agree, shares up double digits. welcome back to "worldwide exchange." coming up this half hour we will have more on the results including the announcement of another round of price hikes. first let's get you ready for the trading day ahead. u.s. stock futures, all three indexes finishing higher on the first trading day of the second trump administration. in the green across the board, s&p up 26 points, the dow looks like it would open 70 points higher, the nasdaq best performer in the premarket up 178 points, nearly 1%. we want to check some of the biggest nasdaq 100 gainers.

not surprising, here at the top of the list netflix, shares up more than 14% that ever that quarter. we will talk more about that in a moment. arm holdings, nvidia, marvell technology and palantir rounding out the top five. we want to check the russell, they outperformed yesterday taking a look, fractionally lower, essentially flat. we saw them fractionally higher a short time ago. when we look at yesterday we also saw a broadening of the market, again, small caps outperforming, also industrials the leading sector and transports gaining nearly 1.5%. both of them gaining, industrials up 2%. really getting a boost from president trump saying the u.s. will become a manufacturing nation. we also want to look at bonds, yields eased a few basis points as investors digest the proposed policies of the new administration. tariff and immigration proposals are both seen as potentially inflationary, still haven't seen a reaction in the bond market. the benchmark 4.57%. we also want to look at energy.

oil prices having some movement here in the premarket today. we're seeing oil higher right now, was lower earlier, right now wti crude up over half a percent trading at about 76.24 a barrel. the president also issuing a national energy emergency, the middle east ceasefire also a factor in some of the moves in oil in recent days. crypto rallying with bitcoin getting close to 105,000 on the launch of those donald trump and melania trump meme coins. also comments from the s.e.c. it's launching a cryptocurrency task force. right now remember crypto trades around the clock, we're seeing crypto pull back -- excuse me, bitcoin pull back 1.25%. right now just above 105,000, ether pulling back half a percent. solana flat. ripple down just about 1%. that is your setup this morning. we want to turn back to one of our big "money movers," the

biggest this morning is netflix. shares are surging on the back of top and bottom line beats. the streaming giant surprising with a record number of paid membership ads for the quarter and 19 million, that was well above estimates, total subscribers topping 300 million. shares up more than 14%. netflix raising prices on most of its u.s. plans. the co-ceo said big bets are playing off. >> it's great the big swings worked very well in the quarter. to be able to have that translate into revenue growth meaningfully, everything has to be working. the product, the pricing teams, the marketing, the advertising. all of those things have got to be working well and we saw really strong execution across the board throughout the quarter and throughout the year. >> for much more let's bring in the senior analyst at wolf research. peter, good morning. good to see you. >> good morning, frank. >> huge quarter, blowout numbers across the board, even raised guidance, but you have netflix

at perform. you think netflix is equal? why are you at peer perform? >> i thought you might lead with that. we think netflix is an expected return that ought to be something like the stock market going forward. the stock at 40 times free cash flow is very much what will happen in the future as opposed to what just happened. this quarter was absolutely fantastic and last year was fantastic. we will have carryover benefits in the next few months and the stocks reacting today makes sense to us. what will matter the most for investors who buy the stock today at the price near 1,000 will be the growth rate at the end of 2025 and into 2026. >> all right. so in all fairness your peers have it at outperform but they do have a price target below where the stock is trading at right now. one thing is that raise of guidance despite the stronger dollar. the dollar got stronger but even in international markets this company continues to see gains. >> the company put through a

pretty aggressive price increase yesterday in north america that's very important to the guidance that they've offered. and the reality is netflix offers good value. the base plan is going to be $18 this year, the premium plan now $25. the days of netflix being an $8 a month easy decision are gone, but netflix put itself in a position to test the outer limits of consumer willingness to pay by launching this advertising tier. still is $8 a month, heading towards $9. there's a tier for everybody these days. >> you have it at peer perform. what does this report and the peer perform rating what does that say about the rest of the companies in this space? seems like the stream something just a bit stickier than we thought it was. we thought people were hot from service to service or sign on and cancel after big events, but people signed up for the jay

paul/mike tyson fight and said. what is that telling us about the rest of the area? >> churn is a huge problem for streamers not named netflix or amazon or youtube for various reasons. so the rest of streaming is still under enormous pressure to get together and bundle. the bundling trend involves mergers, it involves bundles in which companies get together and offer their products together even though they're separate and really competitors. and that's essential when you have a smaller share of the consumer's wallet and they can live without you. but net links has about 15% or 17% of total streaming minutes in north america and that's why their churn rate is low. >> peter, we do have to go. give us the name that you see as the most vulnerable to this churn that you're talking about. >> paramount has long struggled with high churn and low price per month and it's because the offering is pretty narrow. cbs is an important component of paramount, people will watch it for football, they watch it for

other sports offerings during the year. if you strip cbs out of paramount it's an even tougher position. we think david ellison has his work cut out for him, that's why we have an underperform rating on that stock. >> thank you for your time and insight this morning. >> thank you. coming up on "worldwide exchange," finding opportunity overseas under a second trump administration. the three emerging markets investors could see outperform with mr. trump's return to the wee e house. 'rback right after this break. stay with us. well would you look at that? jerry, you've got to see this. i've seen it. trust me, after 15 walks, it gets a little old. ugh. i really should be retired by now. wish i'd invested when i had the chance... to the moon! unbelievable. stop waiting. start investing. e*trade ® from morgan stanley.

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>> brighthouse financial. >> build for what's ahead. >> we believe. >> our consu i believe our consumer sentiment is looking strong. we are sig more and more traffic coming to our stores. i believe as we look at an omni channel world and experience that we are all running, i think stores are going to become more and more exciting for consumers. >> that was the ceo of gap, richard dickson on the outlook on the consumer. he also touched on the company's turn around plan sending shares higher yesterday. right now in the premarket shares flat. the conversations continue today from the world economic forum in davos and our andrew ross sorkin joins us again from davos with another special guest. andrew, good morning again. >> frank, thank you. great to see you. we have lynn martin, ceo of new york stock exchange. usually we are at your home. >> yes. >> on the other side of the atlantic. here we are together. great to see you. >> great to see you as well. >> i want to know -- you've been talking to all sorts of ceos, all sorts of folks in the last

couple days and we keep talk being a vibe shift. >> yeah. >> what is the vibe? what is the biggest take away you've gotten so far out of this? >> a tremendous amount of optimism. >> optimism from u.s. folks or across the board? >> i would say across the board. >> really? >> which has sort of surprised me. i think it's a function of the importance of the u.s. economy in driving the global economy forward. >> the reason i'm surprised is i found that the americans seem to be quite optimistic, a little skittish, but that everybody else is a little bit more skittish and anxious given the prospect of tariffs and the like. >> i think on the tariffs issue, though, i think it's going to be something that this administration, who is a very pro-business administration -- >> first president since reagan to show up at the new york stock exchange. >> absolutely. absolutely. but that was a sign that he is very pro-business and pro

strength of the u.s. economy. i think the people that he has around him, a lot of very smart people going into the cabinet, are going to look at the issue of tariffs alongside the issue of inflation. so we will see how this unfolds over the course of the year. >> what does the ipo pipeline look like for you? the reason i ask is we had bill ford here yesterday for general atlantic and we were talking about how there are so many companies that have been waiting to go public for such a long time, almost no exits in the sort of private equity space, which has created its own bottleneck as it relates to fundraising and the like because nobody is able to give back money to the u.s. pension funds and things like that. what do you really see happening here? >> i think i see a mix of ipos and m&a activity. i'm sure you're talking with a variety of the banking ceos who are optimistic about the m&a forecast for the year but we're optimistic about the ipo forecast for the year. we have a company that just went last week, did really well, flow

co in the energy sector. we have a large deal at the moment, venture global. we have a tremendous pipeline and people are actually doing the work to go public now, not just talking about doing the work. >> how concerned are you just about the pe ratio of this market? because we are -- i don't want to say priced for perfection, but there is an argument to be made, you look at the beginning of presidential erms, we are at historic highs, meaning a new president comes in, and the pe ratio is the highest it's ever been. and i just wonder what that means for the next four years. >> i think that it underscores the demand that i hear from long only funds that they want more issues to the market and then, again, that comes back to what you just asked me about, the prospects for the ipo market. i think there will also be a bit of a rebalancing. there's a lot of great stocks that are -- don't have the same

pe ratios as some of the higher pe ratios. a lot of good value in those, those companies. so i think you will see a rebalancing. >> how do you think about your role in the world of crypto? for four years you could argue -- i don't want to say crypto was stalled because clearly bitcoin moved even before trump was in office, but clearly you now have a president who is fully behind crypto and i wonder for the new york stock exchange, we were talking to brian armstrong, coin base yesterday, just what that ultimately means in terms of do you say to yourself we need to be big time in this business? do you start to think, okay, the whole idea of initial coin offerings which were taken off the table because people thought they were scams, does that come back and change the marketplace? what does this look like? >> ultimately and i've been saying this for a few years now, we need regulatory guidelines, we need clear guidelines, clear guardrails to operate under which i think is what is driving

so much of the optimism in the crypto markets. it's that finally we will have clarity as to what that frame works look like. >> and then assuming that you get some kind of clarity, where does the new york stock exchange play in that? >> we've always been an advocate of fair, transparent markets. regulation has always been a tailwind for us. it's in we spend so much time on pie nearing the crypto etf. we started working on the first crypto etf with gray scale in 2016, we only got to market last year, which is crazy to me. so we're just going to continue to look for opportunities to add transparency to markets. >> finally, what do you make of these meme coins? no, no, really. and what does it -- what does it say about trading? what does it say about speculation? i ask because clearly president trump had a coin, melania had a coin. there's lots of questions to be

asked -- obviously the family is making lots of money doing it, there's legal and ethical questions, all sorts of things, but i'm curious what you think of the phenomenon of these kinds of coins? >> you know, i think the jury is out on them. i'm not going to comment one way or the other other than to say they're sentiment indicators as to how people are feeling about whatever coin is issued. >> lynn martin, thank you. >> great to be with you. >> i'm going to send it back across -- across the atlantic. frank. >> andrew, great to have you on "worldwide exchange." come back and visit more often. >> thanks. >> all right. andrew ross sorkin live from davos. andrew, thank you again. coming up on "squawk box" much more from davos coming up including sit-downs with a number of high-profile ceos and the conversation that continue across the day right he oner cnbc. we're back after this break.

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investors finding plenty of optimism on the first day of trading under president trump's return to the white house, all three major indices notching pretty solid gains. the president has vowed an american first agenda, overseas markets may still present some opportunities for investors. our seema mody joins us with much more on that story. good morning. >> well, frank, good morning. there is no sugar coating the fact that trade tensions and a stronger dollar make emerging markets a less favored destination for investors. we did see sentiment turn following trump's victory in november on these widening fears, but bank of america strategists now think that those risks are priced in for emerging markets. they carry the view that february and march is when we will get more certainty around trade and stimulus measures by china and that will help sort of the overall sentiment here. other fund managers we spoke to are getting more selective with hsbc's team selecting india as one of their top markets for 2025, telling investors it's less vulnerable to trade

tensions. investor mark mobi pointing to president trump's relationship with modi as a reason to warm up to the market. >> i think there was a close synergy that had been established and a number of actions that the trump administration took which were very positive for the relationship and good for india. so as we near a second term of donald trump i think there is a certain amount of optimism and also a great demand of favorable public opinion in india. >> now, the strategist at bernstein likes stocks that are exposed to the indian consumer in 2025 like indic and telecom player bharti intel. countries like brazil and turkey are also seen as less vulnerable to a trade war with the u.s., plus these markets have underperformed in recent months

which investors say make valuations look a lot more attractive. >> seema mody with a look at emerging markets. thank you very much. good to see jaw coming up on "worldwide exchange," the industrials play our next guest says could see tailwinds under the new trump administration. we will reveal our mystery chart eaming up right after this brk. >> define pretty great. >> we added koopa's ai powered total spend management platform. so we're finding new efficiencies and multiplying margins. >> so. >> you can mind your business. >> so you can mind your business. >> no, that's not what i meant. >> ha ha ha ha. >> you all should be laughing harder. >> welcome to reinvented with accenture. today i'm here with margherita della valle, ceo of vodafone. you were employee 25, in vodafone italy. today you're

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welcome back to "worldwide exchange." one more check on u.s. stock futures in the green across the board taking a look the dow up about 75 points right now, up fractionally, the s&p up 27 points, under a half a percent, the nasdaq the best performer up 182 points over three quarters of 1%. let's bring in drew petit. good to see you. >> good morning, frank. >> so i just want to get your take on the first day of trading under the new administration. what were your thoughts and the fact we saw industrials lead? >> look, i think we were still pricing in a lot of the good news here, especially on the trump policy front, deregulation definitely in the spotlight with executive orders, and honestly the rate markets behaved. we've seen some rate volatility and that's been a negative to really close out 2024 and open up 2025. the 10 year settled down, so, you know, really not surprised with those two things in the spotlight yesterday that we have

positive market reactions, especially from the cyclicals. >> first day we saw positive market reaction. what's your word of the day? how do you see today shaping up? we're past the buzz of the inauguration, seems like more of a normalized day. >> i think the word of the day and it might be kind of the word of the month is going to be adapt. >> really? >> honestly, we've really spent -- everyone, whether it's the sell or buy side, we all spend time thinking about the outlook and what our base cases are. we really did spend more time thinking about how we could be wrong. right now we feel good about, you know, tailwinds from policy. we do think there's a lot of policy opportunity out there, but at the same time there's going to be some headwinds and a lot of things are not quite priced to perfection, but priced where there's not a lot of wiggle room at this point. so i think if you are going to be successful this year as an investor, adapt. that's the word to focus on. >> a lot of talk about the valuation in the market right now trading at what a lot of people this i is pretty frothy.

i want to get to your pick. what is your pick today and why? >> it's flow serve. when we think about our top themes for the year on the cyclical side we are focusing on names and themes where we are going to see quality improvement. flowserve plays to fossil fuels which checks a lot of boxes for us. it's an industrials name but has massive oil and gas and market exposure. it's a name that's in the early innings of a self-help story. we are seeing the end markets bottom and then with trump 2.0, which seems a lot like trump 1.0 with deregulation and a focus on fossil fuels, it only increases the earnings visibility for this name. so we think there's some tailwinds for double digit earnings growth through 2025 and into 2026 for flow serve. >> shares up three quarters of 1% in the premarket. drew, good to see you. thank you. >> thanks, frank. one more quick look at the futures. earlier in the green across the board, nasdaq the best performer

right now, getting a big boost from netflix shares up double digits. right now netflix up over three quarters of 1%, the s&p up just under a half percent, the dow moving fractionally higher. that will do it for worldwide exchange, "squawk box" from davos starts right now. now. plus top tech ceos announcing a commitment of up to half $1 trillion. that's with a t i will show you what is moving out. top technology ceos have a commitment of half $1 trillion in u.s. a.i. researcher called stargate. will bring you the details. ceos in doubles respond. we hear from cisco, j.p. morgan, microsoft, goldman sachs, and coca-cola. it is an all-star lineup. it is wednesday, january 22.

"squawk box" begins right now. welcome to "squawk box" on cnbc. we are live from the nasdaq marketplace. joe is out today. andrew is reporting live from the world economic forum in davos right now. a lot of it relates back to president trump. we have breaking news just about everywhere you go. i heard your interview earlier today with julie. i thought that was interesting with the international ceos are thinking. >> reporter: there is a firehose of news. we have reactionrom ceos across the world in