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 5g. i'm here at cnbc global headquarters. >> welcome to worldwide exchange. >> here is your five at five. stocks are. >> pullingack this morning after. >> the s&p 500. >> it hits. >> an all time. >> intraday high. >> it's now just a. tick below its december 6th. record close. >> saudi arabia tells president trump it wants to invest $600. >> billion. >> here in the u.s. elon musk keeps up his feud with sam. >> altman, while. >> openai, it shifts away from microsoft. plus, e! shares are plunging right now as it slashes its. >> full year outlook. >> as its soccer games disappoint. and later, a cnbc exclusive with the us head of santander bank. it is thursday,

january 23rd, 2025. >> you're watching worldwide. >> exchange right. >> here. >> on cnbc. good morning. thanks so. >> much for being. >> here with us. >> i'm frank hollins. >> get you ready for. >> the trading day ahead. we begin, as we always. >> do. >> with the. >> check of u.s. stock. >> futures after the. >> p 500 hit an intraday record. >> the nasdaq. >> just 1%. >> from its own. all time high. taking a. >> look. >> you see a pullback here in the futures. >> right now in. >> the. >> red across the board. >> the s&p. >> down about. >> a quarter. >> of a. >> percent or 12 points. the dow. down fractionally right now about 15 points. the nasdaq. >> the hardest hit. >> down about 97. >> points right now just. >> about a half of. >> a percent right now. >> we want to take a look at the s&p 500 premarket laggards. taking a. >> look at electronic. >> arts we. >> just mentioned. >> cutting its outlook. >> right now those shares down. >> double digits followed. >> by principal. financial micron. >> take-two interactive. that's another. >> video game. >> maker palantir. >> on this list as well. those shares down just about 2%. so yesterday on the back of that

stargate announcement we saw the tech trade just re-accelerated energy was the laggard. but take a look. >> right here. you just see the. >> big upside move for tech here. week to date techs up almost 3%. >> energy down almost 2.5%. again big upside move. >> following that stargate. >> project announcement. right now we want to take. >> a look at those same stocks. >> involved in the. >> project where they had. >> the big gains. >> on wednesday. >> well. >> this morning. >> we're seeing quite a bit of a pullback. oracle shares down just. >> about 1.5%. arm holding. shares hardest hit down almost 4.5%. >> downside moves from microsoft. >> and. >> nvidia as well. want to take a look. take a look at transports. >> right now. >> and earnings beat and strong current. quarter guidance from knight-swift boosting. >> the transport space. csx also reporting after the bell today. >> we're seeing csx shares up a. >> quarter percent. >> knight-swift obviously the. >> biggest gainer on this board. those shares up just about 5.5%. >> again broad moves to. >> the upside across transports in. >> the premarket. and we. >> want to. >> take a look. >> at treasuries bond yields. >> they ticked. >> up just a bit though they did tick up a. bit the benchmark move at about five basis points higher from the level that. >> we saw yesterday.

>> right now at 4.61. >> and we want. >> to look at. >> the energy space. >> seeing a lot of moves. >> in energy this morning. we're seeing a pullback as. >> investors weigh the impact. >> of the trump energy and immigration policies. >> the proposals. >> that we should. >> say wti. >> pulling back fractionally still in our story. >> for brant crude. however natural gas also moving. back was actually moving higher just a bit earlier. >> right before we started the show. >> but actually pulling back nearly a half a percent. >> right now. and last but. >> certainly not least, cryptocurrency. taking a look. a lot of moves in the cryptocurrency. >> space as well during this new administration. bitcoin pulling back about. >> 2.5% now falling. >> back below 105,000 right now trading at about 101. almost 750 again pulling back about. 2.5% downside. >> moves across. >> the crypto space. solana the hardest hit. down almost 8%. all right that is your setup. let's now see how europe is shaping up as its trading day gets underway. >> our sylvia. amaro is in. london with. >> a look at the early action. >> sylvia. good morning. >> good morning frank. >> so far it has been. >> a mixed. >> day really for european

equities. >> this despite. >> the very strong. >> day that we witnessed on wednesday. we had. >> the benchmark, the. >> stoxx 600. hitting a record high today. >> however we. >> are a little. >> bit off from that. >> record level. but indeed we're still. >> seeing a. >> little bit. >> of green. >> over in germany, france. >> and. as well as italy. >> but let me take you to the different sectors. because at this stage, european investors are very much. focused on what. >> we're hearing from corporates. >> at this stage. we have. >> the. >> banking sector as the best performing one. >> we're up. >> almost 8/10 of a percent. the driver here is indeed. >> the. >> latest corporate results. >> we heard. >> from a couple of banks this. >> morning that is. >> propelling some. >> of the mood there. >> however. >> let's. >> see what will continue to happen on that front because. >> it is really just the start. >> of this earnings season. >> i want to take you to the different sectors in terms of. >> the worst. >> performing sectors too, because. >> there's a. >> very important. >> market story. >> there as well. >> look at it. >> tech. >> it is the worst. >> performing sector. we are down. almost 1.5% here. though

investors are. >> digesting comments. >> from sk hynix. they basically provided. >> us with a little bit of a. >> disappointing picture in terms of their outlook for. >> the. >> year, and that has put pressure on european chipmakers. >> too. including asml. >> asml and asmi. and briefly, when you think about retail, we're. >> down almost. >> 8/10 of a percent. adidas results yesterday. >> were. >> very strong frank. >> but today. >> we heard from their rival puma. >> and those fourth quarter. >> sales were. actually disappointing. >> all right sylvia thank you very much. our sylvia morrow live in our london newsroom. >> turning back to the u.s. markets. it's time now for your big money movers. we begin with shares of. electronic arts. as you can see. >> they're down. >> more than 13.5% after the video game maker cut its guidance on net bookings for the fiscal. >> third quarter and for the full year. this is. >> a very important metric that measures both physical and digital. >> sales. >> the company blaming a slowdown in growth for. >> its. >> global football game franchise, ea. sports fc. that used to be fifa. >> it's now ea sports fc. again, shares of. >> ea, they're down more than

13.5%. alaska airlines swinging to a fourth. quarter profit as. revenue jumped nearly 40%. the airline says results were boosted by demand for leisure travel and an uptick in business. >> passengers. >> and that momentum has carried into the new year. shares of alaska. they're up just about 4%. also taking a look at ast spacemobile. those shares they're sliding this morning after the satellite broadband company announced. plans to sell. >> $400 million. >> in convertible notes to institutional buyers. so despite the move lower in the premarket. >> shares are up more than 500%. >> over the past year. so we've got to keep it in perspective. right now those shares. >> are. >> down more than 13%. >> but again. >> over the last. >> year. >> up more than 500%. switching gears turning to dc and a news alert this morning. >> saudi. >> arabia's crown. >> prince mohammed. >> bin salman and president trump reportedly closing a deal that would see the saudis commit $600 billion into expanded u.s. trade and investment over the next four years, according to saudi arabia state news agency. the two leaders spoke on the phone yesterday, but did not comment on whether it would be

public or private spending. and they didn't really comment on how that money would be spent. trump has promised his first trip overseas would be to saudi arabia. we'll have much more later on in the hour. all right, turning back to the markets, president trump this week ordering federal workers to return to the office five days. >> a week. >> as part of his return to the white house. >> the president. >> joining jp morgan and amazon, telling their employees. remote work is just a thing of the past. and according to the global real estate services company jll. this year will see a more aggressive move in return to office. christian albrecht is the ceo of jll and he joins us now from davos. christian good morning. it is good to see you. >> good morning frank. >> thank you for having me. >> good to see you. >> i want to. >> start off you're on the ground there in davos. you're with so many ceos. what are you hearing about their plans for 2025. and bringing workers either back to the office or. >> allowing remote work. >> i mean what are those conversations. i think the. >> general perception is that the economy will continue to go well, maybe even better than we have seen over the last couple of years. and that is obviously

boosting overall workforce. and there is a common agreement amongst most ceos that they want to see their people mostly back in the office. that doesn't take away that there is flexibility and that there is some level of hybrid, but there is a clear expectation that people are mostly in the office and that will obviously help real estate markets and office occupancy. >> last quarter, you said that your your leasing. >> and market. >> advisory business that was up 21% year. >> over year. >> that was a few months ago, obviously. what's the status now. and i do want to ask i know the announcement just happened. >> earlier this. >> week, but the president. talking about. >> turning. the u.s. >> into a manufacturing nation once again. has that led to an influx of. >> calls about. >> building sites or creating new offices, just to try to. >> ramp up. >> manufacturing with the idea that there's going to be a lot more. >> government support for that? >> well, i would. >> say. >> that the inflation reduction act was already doing that to a large degree. we saw a significant interest from european manufacturers, but also

from asian manufacturers, to build up manufacturing onshore in the us or near shore in mexico. that is continued to be the case. i had several conversations with clients of ours who were interested in that approach and in our services around that, and so i think we will we will see a good demand from from overseas manufacturing to get into the us, and probably also us manufacturing to bring some of their production back into the us. >> all right. >> one other thing you mentioned when you were on our air just a few months ago is the ten year yield. you said at about 4.5% it's not really. >> a headwind to deals. >> and other market activity. >> today it's. >> a 4.62. we've seen. >> a lot of volatility. >> in general with the idea that we might see a more hawkish fed going forward. only one cut priced in this year. what's the sentiment when it comes to business leaders as far as deals, building sites, leasing etc. >> well i think the most important piece is predictability. so people want to know more or less what the

ten year interest rate will be and whether it's at the end of the day, 4.5 or 4.7, that doesn't really make a difference. what isn't that great is that that significant volatility. so if we are clear about the plans and if we understand better what the fed will do, i think that will help to continue to recover the markets and the transaction volumes, which we have already seen in 2024, and we expect that to happen also in 2025. >> well. >> obviously, you have. >> a fed meeting coming up in just a few days. does the tone of the fed does that make a big difference in what you're expecting to see from your clients and. >> other customers? >> well. >> it's certainly. >> the tone. >> has an impact. now real estate is long term investing. and so not not every comment is moving the needle. but if there is a continuous commentary that there will be much more hawkish going forward, that would bring some hesitation into the real estate investment market for institutional investors. >> all right, kristen, we mostly think about. jll when it comes

to real estate. but you also speaking of investments, you offer investment vehicles. >> what i. >> want to talk to you about is the jll income property trust. it's a reit. >> with. >> about $6.5 billion. in total assets. what are you seeing when it comes to interest in that? a lot of people have come on our show saying that now is the time to try to get income, whether it's the bond market or dividend paying stocks. when it comes to this reit, what kind of interest are you seeing right now with a lot of the volatility in the market? >> well, i think volatility is the key word. we don't only have volatility in the market. we have quite a lot of volatility in the world. and so it makes a lot of sense to have some proportion of your wealth in a very stable income stream. real estate can deliver that and especially real estate in the us. the us is obviously showing a very prosperous development on the economic front. and the outlook is also very good. that is correlating with the performance of real estate. and so it's probably not the worst time to think about investing into those type of products. >> christian albrecht, great to see you. thank you for joining

us from davos. you have a great day. >> thank you. >> all right. coming up here on worldwide exchange. we've got a lot more ahead. we're going to tell you why my next guest is not sold on the energy trade. despite the president's drill baby drill commitment. plus the growing rift between microsoft, openai and elon musk. and then later we have a cnbc exclusive with the us head of santander on the state of the us consumer and middle income families. a very busy hour still ahead on worldwide exchange. stay with us. >> how's the quarter. >> coming along, kate? >> he thinks your name is. >> kate and hates when people correct him. >> pretty great. >> 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, no, that's. >> not what i meant. >> you all should be laughing harder.

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>> welcome back to worldwide exchange stocks. >> they're kind of. >> catching their breath today, as the s&p and the nasdaq are both very close to all time highs. stocks getting a boost from optimism over potential tax cuts and deregulation. joining me now is scott ladner, chief investment officer at horizon investments. scott good morning. good to see you. >> all right. >> all right so we just hit it. s&p and nasdaq very close to all time highs. s&p hitting a new intraday high yesterday. jamie dimon out there in davos. latest voice to once again say the market is trading at a very lofty valuation. are you concerned about that. >> you know. >> i'm not sure. >> a. concern is the right word. i mean. >> we're. >> certainly paying attention. but but lofty valuations have to. >> be you have. >> to be deconstructed. if we're. >> talking about something like the s&p 500. and you know, if you look at the mac seven you know those are you know those those have price earnings ratios or multiples that that are in the 30s. look at. >> the. >> rest of the market. you know those multiples are like. >> in. >> the teens. and so you know like overall like you know it seems like the market has a very high valuation. >> but if you break. >> it down into sort of component parts, it makes sense.

why why the mac has such a high valuation and the rest of the market is. >> sort of normal. >> so, you know. >> i think we're watching it. >> but but i. >> don't think concern is the right word. all right. what do. >> you think about just some of the moves we saw from tech. tech getting a big bounce from the stargate project announcement. we've seen those stocks pull back. it really seems like investors, they just kind of go back and forth on their view. do they want to see a broadening. do they want to continue to ride those tech stocks? how do you view the market right now. do you believe we're set up for a broadening. or do you see tech again taking leadership this week? it is taking leadership with tech as the leader, energy as the laggard. >> you know i. >> think actually it's going to be a tech led broadening. if i can kind of coin that one. wait, wait. >> scott how's. >> that possible. >> how could it be a tech led broadening? >> so i mean, i think it's going to be one of these where the technology, the ai tech is going to sort of diffuse into the rest of the economy. and so, you know, the firms. >> that are able to actually. >> you know. >> like adapt to the ai revolution, they're actually able to use ai processes. in their businesses to improve productivity. >> and therefore improve margins, which is really the game. >> you know. those are.

>> the those are the. >> stocks and those are the sectors that are really going to benefit. so, you know, that's you know, in terms. >> of broadening, i don't think. >> it'd be broadening from like a traditional. >> kind of small cap, you know, like everything. >> rally cyclical. >> kind of kind. >> of kind of move. >> it's really broadening like. >> that. >> is, you know, that's really kind of led by. >> those companies and those industries. >> that can really. take hold of the ai. >> you know, the power of. >> ai and the power. >> of the productivity gains. >> you can get. out of it. and use it to drive margins. >> all right. so it's. >> going to be a tech led. broadening led by ai stocks. it's a bit of a confusing thesis scott, but i do want to ask you about your other thesis here that you believe the fed's next move. i don't know if it's january. i don't know if it's a future meeting, but you think the fed's next move is to raise rates? doesn't that impact this whole broadening thesis overall of other stocks participating in the rally? >> i mean. >> tech has the balance sheet where they don't really need to borrow money. so if the fed's going to raise rates, how do we even see a broadening or even other stocks make gains. >> so. >> i'm not. >> sure. >> that's that's quite an accurate. >> read of. >> how we're thinking about the world. >> you know. >> what i was trying to say. in

the notes. >> was that we think. >> the market. >> has priced. >> in a. >> material chance that the. >> fed raises rates for their, for their next, their next move. >> we actually don't think that's going to be the case. >> we think the fed is basically on hold. >> until we get to the summertime. >> we do think the. >> next move. >> is lower, but but we think we're. >> pretty close to that to the end of this. >> of this cutting cycle. >> you know. >> this is probably, you know, a the. >> mid 90s. >> comparison is probably the most apt one. and so, you know, maybe 1 or. >> 2. >> more cuts and we're probably there. >> we're probably done. >> but but. >> but the market is concerned. >> right now. >> after the, after the fed released. >> the, you know the forecast. that that the inflation's to the upside that the market is. >> concerned that the next move is to. >> the up. >> you're going to get the fed. >> raises rates. >> we don't actually think that's the. >> case but it's possible. >> so scott you think the market is pricing in the fed hiking rates but you disagree. you're taking a contrarian view. and that's why you're feeling so bullish about things like financials. >> yeah yeah. financials is certainly one you know one place where we think actually you can can can benefit. >> from a lighter. >> regulatory touch. we think that we. >> know. >> that trump is going to bring probably more on the small side than the larger cap guys. but you know the financials you

know, if you've known. >> me for the last 30 years i've. never liked financials. we never liked financials. but this is actually a place. >> and a time where. >> we think they could actually work. >> but more on the small side than the large side. >> all right, scott ladner, good to see you. thank you very much. >> appreciate it. >> frank. >> all right. as we head. >> to break, we're watching shares of apple. new this morning uk competition regulators say they're opening a probe into the company and mobile ecosystems. taking a look at shares of apple and alphabet right now both trading lower. apple shares are down nearly 14% from its late december high and still lower again this morning, as we mentioned. the stock's lost nearly $550 billion in market value since then. so much so that microsoft is closing in on apple's number two spot in terms of the most valuable publicly traded company. stay with us. much more worldwide exchange coming up after this. >> there is one death. >> from cancer. >> anywhere around. >> the world every three seconds. >> 75% of. >> patients don't actually know. >> that they have heart failure until they've gone into a

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a hundred thousand delta employees so they can make every customer feel like they've arrived before they've left the ground. this is how business goes further with t-mobile for business. overlook. >> this tax break. >> the earned income tax. credit the amount depends on income. >> filing status. >> and whether or not you have children. it's a refundable. >> credit, so. >> you could get a tax refund even if you don't owe taxes. >> go to. >> irs.gov to see if. >> you qualify. for cnbc, i'm sharon epperson. >> welcome back to worldwide exchange. >> we're going to turn back to tech. and elon musk. he's not backing down from his criticism of stargate partners openai and softbank. musk saying he has it on good authority. the two do not have the money to meet their promises to president trump. but separately. and maybe just as important, is openai starring

role in this white house initiative. it's the latest sign in its move away from microsoft. cnbc senior tech correspondent arjun kharpal joins us now from davos with much more on this story. arjun good morning. good to see you. >> good to see. >> you too frank. look there's a lot to unpack. >> here frank. >> and clearly. >> president trump's. announcement has been overshadowed by. >> infighting in the tech world. and firstly there's. >> there's altman. >> and musk. then the microsoft ceo satya nadella. >> was asked. >> about the funding, to which he had a frank reply. let's listen in. >> microsoft is investing $80 billion in capital each year, and this year we are investing, and i'm not particularly in the details of what they're investing. look, all i know is i'm good for my 80 billion. i am going to spend $80 billion building out azure. customers can count on microsoft, with openai models being there everywhere in the world, serving openai models and other models. that's, i think, what i know. >> so if we read between the lines, the tension here between

microsoft and openai, that's been speculated around quite a while, maybe rearing its head here. and just this week, microsoft, the biggest investor in openai and its principal cloud partner, is losing its designation as exclusive provider of computing capacity to the startup. adding to the tension is also comments by salesforce ceo marc benioff, who said microsoft is building its own ai and won't use openai in the future. so clearly stargate is a big deal, and people i've spoken to here in davos say it's important for the us and other countries to build up the infrastructure for ai, but clearly it's been a catalyst for some division in the tech world. frank. >> all right. so this is a really interesting dispute. i want to lean on the elon musk part. he continues to. say the sides they just don't have the money. but at the same time, we're hearing from another very wealthy, very influential person in the tech world, larry ellison. he says the projects are already under construction. so based on your reporting, just kind of what's how do we parse this as investors and people that look at these companies? is there some truth in what elon musk is saying, in your opinion, or is this just in progress and

process? and maybe elon musk just doesn't have the latest details. >> look, i think look, if we look at the absolute number here, frank. $500 billion is a huge amount of money. but you look at the companies involved in this, there's no reason why they wouldn't be able to come up with the funding. you think about softbank and the amount of money it's raised for its vision funds in excess of $100 billion, huge amount. and you got to think about this. this is one of i think, president trump's big premiere projects here in terms of putting the us in the forefront of ai leadership. and so there will be a lot of companies beyond the ones that were initially announced, who probably are interested in getting involved in this, contributing funding to some of this as well. you know, you can think about some of the chip companies, you can think about some of the other infrastructure players who might like to get involved in this. so it'll be interesting to see over the coming weeks, who else sort of puts their hand up and say, hey, i'm good for another 50 billion or so? >> all right, arjun, the other. >> part of this story is just that sound bite from nadella that you were just playing, he said. for our part, making a

clear distinction between microsoft and openai. what should we make of that? >> i mean, this is fascinating because i think, you know, microsoft went head first into this deal with openai. it's a huge investor in openai, and that felt like the start of microsoft's big ai journey. but clearly for the company, it's in its own interest to begin developing and try to create a rival to openai. it doesn't want to rely on a third party. if you think about how satya nadella has run this business over the past few years, he has built up the cloud business into one of the biggest in the world, and the ai tools that can be sold through the cloud are an extension of that. so if investors want to see continued growth in this company, it's clear nadella is going to have to invest very heavily in ai to be able to sustain the growth seen in the cloud business. and so it's a very interesting proposition here. there are clearly tensions in the camp between openai and microsoft, and how that plays out over the next year or so is going to be very much in focus, i think, for investors in microsoft.

>> arjun, thank you very much. always good to see you. all right. coming up here on worldwide exchange. much more from dc, including a new multiyear, multibillion dollar deal between the u.s. and a middle east ally. we're going to tell you what that means for regional relations. we'll be regional relations. we'll be back right at morgan stanley, old school hard work meets bold new thinking. to help you see untapped possibilities and relentlessly work with you to make them real. ehh... hmm. oh, that's very, uh... - right? - mmm... this store doesn't have agentforce, so an ai agent didn't tip off the stylist as to what i might actually wear. - yes. - oh. that's a commitment. [glass knocked] hey bud! whaddaya think? you know, people can see you out here.

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smooth, perfect path. but people are optimistic that we are going to run a more growth prone agenda. >> tariffs can change the dollar, but the most important thing is growth. good economic growth is good for the united states probably will strengthen the dollar. >> the us. >> debt for last. >> fiscal year was. >> equal to the entire economy size. of australia. to give you. >> a sense. >> so this is a big. >> number. >> and it creates a lot. >> of activity. >> those are the ceos of goldman sachs, jp morgan and bank of america. at the world economic forum in davos this week, giving their views on the us economy and what's in store for the months ahead. welcome back to worldwide exchange i'm frank collin. coming up this half an hour. we're going to hear from the us ceo of santander. we're going to get his take on the us economy and his look at the middle class. but first we get you ready for the trading day ahead. we kick off the half an hour, as we always do with the check of us stock futures after the s&p hit an intraday record. the nasdaq, also within 1% of its own new all time high. taking a look we're seeing a bit of a shift here. so the dow actually moving into positive territory fractionally higher up about seven points. the nasdaq down about 99 points. the s&p

down fractionally as well right now down about ten points. we want to take a quick look at the nasdaq 100 laggards right now in the premarket. taking a look. electronic arts right here at the top of the list. off of its lows falling nearly 14%. again this is after earnings. we see arm holdings micron take-two interactive. that's another video game maker. and palantir rounding out the top five. nasdaq 100 laggards. so yesterday on the back of that stargate announcement we saw the tech trade just re-accelerated yesterday. energy was actually the laggard kind of a bit of a change in leadership. tech up nearly 3%. energy down about 2.5%. the stocks involved with the project with some big gains on wednesday. but taking a look this morning we are seeing a pullback across the board. arm holdings those shares down about 4.5%. oracle after its biggest two day increase after the last two days. now you see it pull back about 1.25% microsoft and nvidia also moving lower in the premarket. i want to take a look at transports, an earnings beat and strong current quarter guidance from knight-swift. that's the biggest trucker in the us boosting the transport space. taking a look in the green across the board,

knight-swift shares up about 5.5% post earnings. werner enterprises, another full truckload carrier, up about 1.5%. csx reports after the bell today. those shares up more than a half a percent right now. but again gains across the board. we're looking at transports in the premarket. and we want to take a look at treasury bond yields. they tick back up just a bit. the benchmark moving up about five basis points higher than the level we saw yesterday right now at 4.63. and we got to take a look at energy. we've seen a bit of a pullback in energy in recent days as investors, they weigh the impact of the trump energy and immigration proposals. taking a look at oil right now pulling back right now back about a quarter of a percent for wti and brant crude. natural gas pulling back about a quarter of a percent as well. and cryptocurrency taking a look there. seen a lot of volatility in cryptocurrency this morning. we're seeing cryptocurrency pull back across the board. bitcoin coming losing about 2.5% right now. trading at about 101,900 bucks a coin. ether pulling back more than 1.5%. solana the hardest hit down more than 8%.

all right. that is your setup this morning. now we want to turn to a news alert. >> saudi arabia's crown. >> prince mohammed bin salman and president trump reportedly closing a deal that would see the saudis commit $600 billion towards the u.s. in the coming years. our dan murphy has more on the story from davos, where the president is set to address leaders virtually later today. dan good morning. good to see you, frank. >> good morning. >> to you. we're getting. >> breaking details. >> on this massive investment from. >> saudi arabia into. >> the united states. >> $600 billion over four. >> years, frank. >> it is a sizable. investment from the largest economy. >> in the middle. >> east into the world's largest economy under new administration. and this is going to be really interesting to watch. >> essentially, it signals. >> three key things here. >> analysts telling me the first. >> is on defense. these investment dollars could perhaps also mobilize what. could be a defense treaty between the united states and. >> saudi arabia. it's something that's been spoken. >> about under the trump administration. >> and now we're seeing more signs that that could actually be coming to fruition. the

second is. >> on strategy and. america's role. >> and position in the middle east. >> it is. >> indeed the most important. >> foreign policy. actor in the region. and what we're. >> seeing now is these investment. >> dollars also perhaps firming. >> up that us position. we've also seen america. >> coming under some. >> pressure on the investment side from the likes of russia and china. >> in recent years. >> so this is a clear statement. >> of. >> intent from saudi arabia that. >> it intends on. >> maintaining that. >> role of. >> proximity to the united states and ensuring that those investment deals are and trade continues to flow. and then the third thing to look at here, as we assess the impact of this new $600 billion investment pledge, is, of course. >> what it means for regional relations under. >> president donald trump. >> what we are. >> also expecting to see are closer ties between the united states and israel. so this. could also open the door for what would be the most significant push forward for peace in the middle east region in history. >> if we saw. >> saudi arabia and israel. >> actually signing a

partnership. agreement under. >> this president, then. >> that would be a. >> very significant development. >> as well. >> and of course, these investment dollars all paving the way for that to potentially happen. frank. >> so, dan, do we have any sense this morning what areas will these investments be made? we've seen the saudi sovereign fund make a lot of big investments in us companies. but do we have a sense are these going to be i don't know data centers. are these going to be infrastructure deals? where does this money all go? >> well, here's the interesting thing. the two largest sovereign wealth funds in the region, from a strategic allocation. >> perspective. >> are all focused in on the united states. this is the pif in saudi arabia and mubadala in the uae. >> we already see. >> very significant investment. >> deals between. >> those sovereign wealth. funds and the united states. >> in areas. >> like technology and. >> chips and ai. unfortunately, there's not a lot of details. >> on where. this $600 billion is going to go. >> and also. >> frank, where. >> it's going. >> to. >> come from. so we're waiting on. >> more details on this. perhaps we will get a little bit more

clarity when the president addresses the world economic forum later today. >> it's going to be a. >> hotly anticipated speech. >> certainly a. >> lot of focus areas on the ground here, including the geopolitics, including the global growth outlook, what's happening in technology, what's happening in artificial intelligence as well. so the president has a big platform here with the world's elite and top business leaders to make his case for the next four years. >> dan murphy, really appreciate the reporting. also, you're out there without a hat and gloves on. it looks a little snowy and cold. thank you for that. thanks for being on the show today. good to. >> see you. >> coming up here on worldwide exchange, the us ceo of santander is standing by his view on what president trump's return to the white house will mean for banking and the broader american economy. that exclusive conversation coming up next. >> buying a car. >> is kind of a big deal. >> but you. >> use the. >> cargurus app. >> that's a price drop alert, so the deals come. >> to you. >> no big deals. >> right when. >> you need them. cargurus the

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>> you deserve this. >> we can just have someone on fiverr do it. >> it's no big deal. >> hiring freelancers just for small tasks is like hiring martha stewart as an. >> here's your coffee. >> oh, best. >> intern ever. >> sometimes great. >> talent is right under your nose. >> what's your name again? >> new this morning. santander bank out with its latest report looking at how the middle class sees the economy and their own personal finances. according to pew, that's about 169 million americans, with an annual median household income of about $106,000. inflation continues to be a big concern for the middle class. 53% said they've had to cut back in spending over the last three months due to higher prices. 33% say they've accessed their savings. also, more than a third said they're taking a second job because of the inflation impact on their own finances. joining me now in a cnbc exclusive to discuss this report and the banking sector, timothy wins, us ceo of santander bank. timothy good morning. good to have you on. >> good morning. great to be

with you. >> all right. so a new report out this morning. inflation was one of the big issues for many of the people that you surveyed. we're looking at inflation. obviously we have a fed meeting coming up. are people getting nervous about the idea that the fed may not be cutting? when you talk to people who in your business are they worried that the inflation might be stickier than we previously thought it may be? >> the predominance of what we're hearing from clients is more about optimism with respect to growth. growth in the us and what we saw in this survey, we've done this survey every quarter for the last two years, so that eight of these surveys and in. >> fact. >> consumers are the most positive that they've been across the two years. in terms of both the view on the economy and outlook, as. well as their own job security and their view on inflation. so two thirds of the people believe that inflation will be better in 2025. they're feeling. three quarters, are feeling secure in their job, and two and three

feel like the job market will be stronger this year. so i'd say overall what we're mostly hearing is some positive. optimism about the economy for 2025. >> yeah, we're just showing 58% of respondents said they believe inflation will be lower this year. so i have to ask if they're currently feeling the pressure of higher prices, but they're optimistic about things going forward. how is that impacting some of your loan business and your deposit business? >> yeah, so we continue. >> to see. >> healthy demand on the loan. >> side. >> not meaningful changes and rates. >> are. >> still high. and that's one of the issues that also comes out here is affordability. we're seeing middle income americans are concerned about homeownership and the affordability of homes. also for autos, more than 50% have delayed purchase of a vehicle because of either high vehicle. prices or high payments because of higher interest rates. so we're continuing to see that people are looking to make these

purchases. >> but cost. >> inflation, interest rates have been a challenge. >> we're looking at some of the stats from your study. right now. we're showing the audience 48% of renters. renters say they're actually comfortable not owning a home. 45% of your respondents say they plan to buy a vehicle in the next year. what does that say about the current state of, you know, the consumer? when we talked about millennials a few years ago now, it's been a while. there was a sense that they didn't really want to own things. now, again, according to your survey, 45, 48% say they want to continue reading, but 45% say they do want to buy a vehicle this year. >> yeah. >> so i'd say on the on the. homeownership side, we. >> also asked some. >> questions this quarter. >> about those. >> who. >> purchased a home since 2020. and 60% of those people are living paycheck to paycheck because the cost of that homeownership have been higher than they anticipated. and i'm sure that that's permeating and causing other millennials and other middle income americans to feel more comfortable with renting this on the homeowner,

on the side of purchasing vehicles. >> three quarters. >> of middle income americans rely on their car to get to work. only less than half. have access to public transportation. so i think some of that drives this pent up demand. but we've also heard from them that because of interest rates and the cost of vehicles, for some of those consumers, it feels out of reach. >> all right. again, your survey hitting on about 169 million americans, according to pew, who consider themselves in the middle class. i want to talk more broadly about banking, new administration coming in and expected change when it comes to regulation. how do you see that impacting your business? >> well. >> i think the president's executive order to pause new regulations until the new administration and new agency heads come in is a is a positive move. and i think the view of. growth in the economy and the focus on growing the economy is

good for all. the industry is well positioned. we're well capitalized to. >> be able to support. >> growth in the american economy. >> all right. timothy dennis, ceo, u.s. ceo of santander bank. really great to see you. interesting new survey out today. thank you very much for being here. >> thank you frank. >> all right. coming up here on worldwide exchange, we have the one word that every investor has to hear today. and the stock pick that every investor needs to know. plus cause for concern around one nvidia supplier that is sk hynix. our sylvia mauro mentioned it earlier. the company just said what the company just said is forcing investors to look past its quarterly profit. you see, those shares are down just about 2.5%. we'll be back right after this break. >> brian tried. >> to. >> stop you. >> from switching to coupa. >> this is sara. she's not. >> a friend. sara. >> brian. >> so i was right about coupa. >> tell me, what do you like most. >> about their ai powered. >> total spend management platform? >> ai that predicts, prescribes, and automates direct and. indirect spend management.

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>> 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. >> with you. >> welcome back. time now for your morning call sheet. we start with morgan stanley upgrading its rating to on logitech to a hold. the bank says the company's long term revenue growth expectations. they moved closer in line with their forecast. piper sandler downgrading its rating on boston beer now to neutral. piper cites the diminished outlook on hard mountain dew and slower than expected sales growth on twisted tea and loop capital, raising its price target on supermicro from $35 to $40. loup says supermicro remains an important company in an important space with special catalyst and fundamentals. all right. coming up here on worldwide exchange, the media and telecom giant, our next guest says will provide investors some stability despite stumbling out of the gate to start this new year. we're going to reveal our mystery chart coming up after the break. and

on squawk box, after worldwide exchange conversations with the ceos of morgan stanley, blackrock, honeywell and liberty global from the world economic forum in davos, worldwide exchange, we're back right after this. >> nothing stands still. not technology, not the market and not franklin templeton. we've been a firm in motion for over 75. >> years. >> always innovating. today we're a leader in public and private markets, digital assets and custom tax management, empowering advisors with solutions to build the portfolios of the future today. franklin templeton, your trusted partner for what's ahead. >> americans are demanding fresh, sustainable and healthy food, a consumer category projected to grow to $241 billion. meat edible garden symbol edible on the nasdaq a fast growing, zero waste inspired food producer backed by patented technology and

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that we get to use every day. >> squawk box live from davos morgan stanley's ted pick workday's carl eschenbach, liberty global's mike breese, honeywell's vimal kapoor, blackrock's larry fink stay ahead of the market squawk box today, 6 a.m. eastern. cnbc. don't miss a members only event. >> the club. >> is really about empowerment, empowering you to manage your own money. >> join the cnbc investing club to access gyms monthly meeting. go to cnbc.com. slash monthly meeting. the day's top. stories driving wall street. brian sullivan joins kelly evans power lunch weekdays at two eastern cnbc. >> welcome back to worldwide exchange as we close in on the 6

a.m. hour. here's a check of a few big stories for this morning. shares of ea electronic arts are plunging after the video game maker cut its outlook. ea, citing stumbles by key games during the holiday period. also seeing shares of take-two and other video game maker falling in sympathy. right now, shares of ea, they're down just about 14.5%. president trump downplaying the potential threat of china using tiktok to spy on americans. trump speaking on the matter on fox news last night. >> those that say they know say it's a spying app for the communist chinese. >> so. >> but you can say that about everything made in china. >> look, we have. >> our telephones. >> made in china for the most part. we have so many. things made in china. >> so why. >> don't they. >> mention that? >> you know. >> the interesting. >> thing with. >> tiktok, though, is you're dealing. >> with a lot of young people. >> so they. >> love it. is it that important for china to be spy, to be spying on young people, on young kids, watching. >> crazy videos. >> on things? i don't want china spying on anybody. >> no, no, but. but but they make your telephones and they make your computers. >> and they make. >> a lot of other things.

>> fresh evacuations. >> have been ordered in the la area after a new wildfire broke out. the huge fire ignited north of santa clarita yesterday and has grown to more than 5000 acres. though crews are saying they're making progress. china unveiling new measures to push local mutual funds and insurers to buy more stocks as beijing looks to boost its stock market. a pilot program is set to kick off in the first half of this year, and sk hynix shares they're falling in asia despite record quarterly results. the cfo for the nvidia partner warning the outlook for memory demand this year was clouded by inventory adjustments from pc and smartphone makers. all right, turn it back to the markets. stocks coming off another solid day of gains with the dow and the s&p up for the sixth time in the last seven days. the nasdaq on a three day winning streak. the s&p ending just below its all time closing high. back in december, the index is up 3.5% so far in 2025, making this the strongest start to a year since back in 2019, when it was up just about 5% at this point. a bit of a different story for apple. once the largest publicly traded u.s. company. that stock is down double digits from its december

high, and it's on the brink of being passed by microsoft in terms of market value. let's now bring in victoria fernandez, chief market strategist at crossmark global investments. victoria, good morning. it's good to see you. >> likewise, frank. >> so we've been talking about the futures being lower. we did see the dow move fractionally higher just a short time ago. what's your word of the day. how do you see today shaping up. >> yeah my word of the day is mutable. and i think that's because we look at where the markets are. we have come in to this year, as you just mentioned, the s&p hitting an intraday high yesterday. nasdaq 1% from its high. and we have really high expectations. optimism is high. valuations are quite high on the. >> stock market. >> and so i think the market. >> is. >> going to be prone to change. i think it's. >> going. >> to be. >> inconsistent as. >> we see how new policies from the administration play out over time. versus the expectations of what we thought the policies were going to. be at. >> the election. >> so i think the markets will be mutable and a lot of volatility, at least for the first half of the year. >> so you're seeing a lot of

volatility obviously coming up. we do have a fed meeting and the fed decision. what are your expectations for that. and more importantly what do you see the market reaction being to that. >> yeah i. >> think it's going. >> to be interesting. >> obviously the market is pricing in only one and a half. >> cuts so. >> far this year. a pause for january. i don't think the fed is going to. come out and surprise. >> the market. >> by. doing anything different. so i think we'll get a pause. >> it's going. >> to depend on what the press conference sounds like if powell is hawkish. i think that, you know, the market kind of expects a little bit of that. but if he comes out really dovish saying we're going to continue to get more cuts, i think you could see the bond vigilantes come in like. >> you did before. >> and push yields back up towards that 475. >> level that. >> we saw previously, because they just don't believe we need to have more stimulus in this economy. so i think it's all going to come down to what powell says in the press conference. no surprises by pausing. >> all right. speaking of the broader economy, after the president's remarks, we've seen industrials move higher. a lot of talk about manufacturing here in the us. so just based on your

thesis here where bond vigilantes they move yields up higher. how does that impact industrials. and i know there's another area you like financials. how do you see those two areas being impacted. >> yeah both of those. >> areas have been really strong leadership all year. and you look at financials the shape of the yield curve deregulation coming in loan growth growing i think that's going to continue to be positive for financials. we still like that sector and industrials should benefit some from that as well. the idea of reshoring it's a huge thing with the america first component of the new administration coming in. so i think we'll see a lot of capex coming from companies. obviously, guidance and earnings this quarter will give us a clue to that. but both of those areas continue to do well in a large percentage of those sectors hitting 20 day highs. that's a good positive outlook. >> so you're mentioning earnings. we're getting off to a pretty strong start to the earnings season. but we have mega mega cap tech coming up in just a few days. what are your expectations for earnings season? coming into earnings season we saw a rally in the dollar. it has cooled off quite a bit. that was thought to

possibly have a big impact on this earnings season. >> there's a lot. >> of optimism for earnings season. i mean expectations for eps growth i think are what, 12% for the fourth quarter year over year and for 2025, it's double digits for every single quarter. i think if earnings don't live up to expectations, we could see a pretty significant pullback in this market as people rate companies and what they see going forward. but as you said, the big tech names are coming. mag seven itself. expectations are around 2,022% earnings growth. so there's a lot to live up to. we'll see if it happens or not. >> all right a. >> lot to live up to. we're less than a month away from nvidia earnings on february the 20th. we also saw another chip name report sk hynix seeing some weakness across the chip sector. we're going to show the audience right now. earlier we were showing nvidia down more than 1.5%. are you starting to get concerned about some different parts of this ai trade specifically? nvidia very lofty expectations. arms kind of pulling back. it had a big rally

after the news about stargate pulling back after that. but are you getting concerned that this is a cyclical sector we keep depending on these chip stocks specifically nvidia, to move the market higher, but it is cyclical. >> it is. and you look at this ai trade and there's so much momentum going forward. and then obviously the announcement we had about stargate it continued and made the nasdaq rally on that. but we're firm believers. when we speak with our clients, we tell them, look, we have exposure to these names in our portfolios, but they've had such large runs. there's nothing wrong with trimming a little bit of your holdings. take some of your gains off the table and maybe find some other areas of the market that are bottoming or that look like they might benefit from some of the new policies going forward and putting some money to work there. so not concerned that these sectors are going to do very poorly. but i think you can go ahead and mitigate some of your risk there and put money to work elsewhere. >> all right. so you are looking at some other parts of the market. i want to get to your pick. what's your pick for today and why. >> yeah my pick is comcast. >> not just because we're here

on cnbc this morning frank. but when we talk about immutable market a market that we think is going to be inconsistent, you want some defensive stability in your portfolio. and one of the ways you get that is a solid cash flow comcast is a great company for this. that core business, that broadband business gives them really strong cash flows and stability. you get a 3.4% dividend. so it's a great name in our dividend strategy that we like. and with the stock down about 10 or 11% over the last quarter and earnings coming out next week, you can start to dip your toe in the water a little bit. it's trading at nine times earnings. and with the spinoff coming and the comcast being able to focus more on that broadband business again, i think it's a great long term holding in your portfolio. >> yeah. you just mentioned the broadband business by the way. shares are down double digits since december 9th where the company did guide that. they expected to lose just about 100,000 broadband customers. but we'll have to watch. as you mentioned comcast earnings just one week from today. victoria fernandez great to see you. thank you very much. >> thanks, frank. >> all right. here's what to

watch. today we get initial jobless claims ahead of the open. and then on the earnings front we get results from ge aerospace. union pacific csx, texas instruments and american airlines. the ceo of american will be on with our phil lebeau exclusively at 7:30 a.m. eastern time. also another exclusive with the ceo of alaska air at 1:15 p.m. all right. that's going to do it for worldwide exchange. have a great day. squawk box starts right now. >> good morning. chip stocks trading lower weighing on the nasdaq futures. we're going to show you what is. >> moving straight ahead. >> plus the growing divide. >> between elon musk and. sam altman. the big tech ceos. >> battling on x. >> we'll bring. >> you the details. and a. >> lot of it comes out of our conversation here in davos. >> and then new this. >> morning the uk's competition watchdog launching an investigation into apple and google's mobile ecosystem. it is thursday january 23rd, 2025. and squawk box begins. >> right now.

>> good morning. >> everyone. >> and welcome to. squawk box right here on cnbc. >> i'm becky quick. >> i am. >> live from the nasdaq market site in times square. joe is off today and andrew is live from davos in switzerland. and there. >> are so many headlines. >> that are coming out. i think from the interviews yesterday, andrew. maybe starting with jamie dimon talking about how he thinks stocks are overvalued at this point. it came on a day where the s&p once again was sitting at a fresh all time high. and that into the entire spat that took place between elon musk and sam altman. that was satya nadella getting drawn into things too. so some very interesting things that have been percolating. >> we're going to get into all of that. in just. >> a.