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 fabian here at cnbc global headquarters. welcome to worldwide exchange. here is your five at five. futures are pulling back after stocks hit their first record closing high of this year. president trump doubling down on his u.s. first philosophy during his davos keynote. challenging the status quo. the fed and companies that are not making their products here in the u.s. the president also fulfilling a campaign promise. signing a new executive order focused on crypto. plus, the bank of japan does something for the first time since 2008. global investors they are watching. and in davos, blackrock's larry fink, the ecb president christine lagarde and others, they speak with cnbc on

everything from the global outlook to the impact of who else, donald trump. it is friday, january the 24th, 2025. you're watching worldwide exchange. good morning. thanks so much for being here with us. i'm frank holland. hope your friday morning is getting off to a great start. let's get you ready for the day ahead. we begin with a check of u.s. stock futures after the s&p closed at its first all time high of 2025. the nasdaq and the dow just near a percent of new close to new highs. yesterday's upside moves coming after the president's comments on u.s. tax cuts and central banks at the world economic forum in davos. >> i'll demand that interest rates drop immediately. and likewise, they should be dropping all over the world. interest rates should follow us. >> and taking a look at futures this morning again after the s&p closed at a record high, we're seeing a very slight pullback in all three indices. all three

down fractionally. the dow down just about 50 points right now. we want to take a look at the s&p 500 premarket laggards this morning. taking a look at some of the stocks that are moving the index just a bit lower here in the premarket. and you see here at the top list. texas instruments following their earnings. we're going to hit on that in just a minute. those shares down nearly 5%. cf industries csx another company reporting its earnings yesterday disappointing in some metrics down just over 3%. intuitive surgical down 3%. resmed rounding out the top five. take a look at the bond market. not really reacting to the president's comments. take a look at the ten year right now 4.63 pretty much where we saw it at yesterday. we did see a very and i want to emphasize very slight downside move when it came to the two year. just a few basis points if you're looking for an impact. but generally the bond market, it held steady on this holiday shortened week. investors they returned to tech and communication services and regain those areas. regain leadership. you have to remember the high profile ceos of a number of companies in those sectors. we're talking amazon and alphabet. they were front and center at the inauguration.

we also saw industrials higher on the comments about the u.s. once again becoming a manufacturing nation. energy the laggard. you can see right here down just about 2%. remember, the president declared an energy emergency aiming to boost production. but for the week tech up about 3%. you comp services up almost 3%. industrials also up almost 3%. but again big upside moves for those sectors that the president continues to reference. we want to focus on energy right now. oil. it continues to tick lower overall. but right now we're seeing a bit of a boost maybe a kind of a rebound. wti coming off a five session slide right now up about a third of a percent. similar story for brant crude. again trump made a lot of comments about boosting production. again wti with a five session losing streak. and we definitely have to talk about crypto this morning. we're watching it on the back of the president signing an executive order to promote crypto. that opened the door for a stockpile of those digital assets. taking a look at bitcoin this morning back above 105,000. up over a half a percent. ether 4% higher.

solana almost 4% higher. litecoin and ripple also moving higher right now. all right that is the setup. it's now time for your big money movers. going to go back to texas instruments. those shares there under pressure after the chip maker signaled ongoing challenges in its auto and industrials markets which account for just about 70% of revenue. you can see the stock again down just about 5%. the company's ceo has said they have not seen a bottom, at least not yet. they also warned that gross profit margin will decrease a few hundred basis points in the months ahead. it's very important to note management did not mention artificial intelligence even once during the earnings call. taking a look at other chip makers. they're falling in sympathy. this morning again texas instruments shares down about 5%. analog devices down more than 1% on semiconductor down over 1.5%. similar story for nxp semiconductor. all right. we showed it to you before shares of csx. they're also lower. the rail giant missing top line estimates for its most recent quarter hit hard by falling coal and fuel sales. its ceo also noting a pair of

hurricanes impacted traffic to and from florida. csx ceo is going to have more on the results coming up in a cnbc exclusive interview at 10 a.m. eastern. we're also watching shares of twilio. they are surging, the company issuing an optimistic 2027 profit forecast that came in well above estimates. shares of twilio are up more than 17%. also, operating margin outlook beat expectations. and we're taking a look at shares of boeing this morning after the company released preliminary q4 results. you can see shares are down more than 1.5%. boeing says it expects to take a $4 billion hit in the final three months of 2024. that includes a $1.1 billion charge related to strikes that impacted its 777x and 767 programs. boeing has not posted an annual profit since back in 2018. again, shares down just about 1.5%. all right. taking a look at the global markets a historic trading day wrapping up in asia after the bank of japan made its latest policy decision. our jp ong joins us now from singapore with much more. jp.

>> yeah. good morning frank. and while half a percent doesn't seem like a lot in terms of policy rates, it's the highest policy rate for japan in about 15 years. and they also hinted at possibly more rate hikes, although they cannot determine the pace and timing of when these rate hikes will be. maybe even more important is why they made the decision in a press conference today. governor bank of japan governor kazuo ueda said that they did not want to wait until a big negative impact from a rate hike and rather proceed with caution. recall the last time they hiked rates at the end of july last year. we saw that big yen carry trade in wine, where he discovered how many trades across the world actually use the yen as a currency. we saw these traders globally rush to cover these positions after the yen appreciated, and this led to that big market meltdown. it seems, based on how the step back for the nikkei two two five inches today's session, it seems it wasn't as unruly a sell off as we saw last july, and that's what they wanted to avoid. there's also signs that the macro picture for japan is improving. they're expecting 1.1% growth next year, which is a big thing for japan, especially given we've seen stagnant growth for the better part of the last two decades.

they're also expecting inflation. take a look at inflation, expecting it to actually tick up even more, and also buffered by the fact that they are expecting that the wage spring talks at least will yield to more wage hikes, actually, which is needed for japan, which could support consumer confidence, especially since they indicated that a number of firms in japan have indicated more willingness to actually raise wages and prices, which lead to more healthy inflation upward, and give them more room to normalize some of these rates. the third reason also could be because of the japanese yen, which should continue to weaken and depreciate over time. now, a weaker yen could actually lead to more inflationary pressures on demand on people in japan, because the cost of living might rise because of that weaker yen. but it could also catch the eye or possibly of the trump administration, if they see this yen weakness as possibly being detrimental to their efforts to balance trade with other countries like japan. so a bit of a number of reasons as to why the bank of japan actually did this. but the key thing is that they will be watching for modest growth and also moving with a lot of caution, because the economic conditions in japan, while

improving, is still quite fragile. frank, back to you. >> all right. our jp ong live from singapore with the latest move from the bank of japan. jp, thank you very much. we want to keep this conversation going and bring in thomas martin, senior portfolio manager and vice president at global investments. thomas, good morning. good to see you. >> good morning. >> thanks for having me on the program. all right. so we're talking about the bank of japan hiking rates. as the president. he talks about the need for central banks all around the world to actually lower rates. jp just kind of hit on what the potential impact could be with the trump administration. i want to ask you, the president continues to talk about basically american dominance. do you see that being a similar theme when we come to investing and looking at the us markets, are the us markets the place to be, whether it's the bond market, the stock market? et cetera. well. >> it is the. >> place to be. and the reason for that, even before president trump got elected with his platform, is that we were still in a less regulatory environment than most anywhere else in the world. that's been positive. fairly low tax rates, a business friendly environment. and that's

only stepping up as we go forward as we see what happens that's actually implemented here. so most of the other countries in the world are still struggling just to get 0% or 0.1% growth in their gdp. and if you look at some of the policies they're floating, it's coming more towards the deregulatory, less taxes, less onerous government kind of structure. >> all right. so obviously the inauguration was earlier this week we got our first record high post inauguration. only a few days later. we do have a fed meeting coming up next week. in your mind, what do you expect from the fed? what do you expect the market reaction to be? a lot of this enthusiasm is based on the idea of these trump policies. we know he can't really influence the fed. they're an independent organization, but the tone of the fed does that weaken? does that kind of raise the investor enthusiasm about this so-called trump trade? >> the fed is going to try and play it right down the middle, i

think not only this month, but probably for the first six months of the year. i think the futures have it about right, that maybe there will be a cut in june and maybe, maybe there will be another one by the end of the year. the inflation data, the employment data, the strength of the economy is, is all indicating that rates are actually in a fairly good place right now, on average. and, you know, they could they go higher? sure. but the fed isn't going to raise rates unless they absolutely have to. and they see that in inflation, which we're just not seeing yet the employment numbers that we just saw are marginally weaker, certainly a little bit weaker year over year. but employment is still quite strong. so we expect the fed to play it right down the middle. talk about the incoming data and talking about a balanced risk outlook. >> all right. so you see the fed playing down the middle. what about earnings season. we're right in the middle of it right now. how important is this earnings season specifically a

lot of those tech names living up to their very high expectations considering just the valuation they're trading at jamie dimon at the world economic forum, one of many talking about kind of the lofty valuations of this market. >> right. valuations are high. they've been high for a while. that isn't a problem until the fundamentals start to weaken. expectations are still high for earnings. we're looking at a 2025 number in the 15% area for the s&p 500. and then the analysts have gotten out their crayons for 2026 and are looking at more like 13.5%. so we're continuing to anticipate strong earnings growth. and that broadening out away from just technology and many industries having growth rates over 10%, that's very good for the market. and so earnings season just becomes more important. not just this one, but all the ones that we have coming forward in the next certainly in the next year.

>> all right thomas martin great to see you. thank you very much. great. >> thanks for having me on. >> got more to come here on worldwide exchange, including the beaten down mag seven member. my next guest says he's buying on weakness plus energy markets on alert as president trump doubles down on his drill baby drill message and then later taking on the fed with president trump just said from the oval office that could cast a shadow over next week's fed decision. but first, a live look at the world economic forum in davos, switzerland, where cnbc's own sara eisen is moderating the final panel of the week, billed as the global economic outlook, featuring ecb president christine lagarde, blackrock's larry fink and others. we're going to be watching the conversation. i want to bring conversation. i want to bring you any headlines that come up with powerful, easy-to-use tools power e*trade makes complex trading easier. react to fast-moving markets with dynamic charting and a futures ladder that lets you place, flatten, or reverse orders so you won't miss an opportunity. e*trade from morgan stanley.

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xfinity internet customers, cut your mobile bill in half vs. t-mobile, verizon, and at&t for your first year. plus, ask how to get the new samsung galaxy s25+ on us. formula from eli lilly. see if you qualify at irokotv. >> welcome back to worldwide exchange. oil prices are heading for a weekly decline as president trump uses his first days in office to issue a sweeping plan to boost u.s. production and demand opec lower its prices. wti crude is down more than 4% this week, while brant is off more than 3%. during a speech yesterday in davos, president trump put pressure on opec and its de facto leader, saudi arabia. >> i'm also going to ask saudi arabia and opec to bring down the cost of oil. you got to bring it down, which frankly i'm surprised they didn't do before the election. that didn't show a lot of love by them not doing it. i was a little surprised by that. if the price came down, the russia-ukraine war would end

immediately. right now, the price is high enough that that war will continue. you got to bring down the oil price. you got to end that war. >> all right. let's talk about this and more and how the broader commodity market could trade under the second trump administration. phil streible is the chief market strategist at blue line futures. phil, good morning. good to see you. >> yeah. >> thanks for having me on, frank. all right. so we're just kind of hitting on oil and some of the oil impacts. i want to talk to you about three other commodities gold, copper and soybean. let's start with gold. china actually restarted its purchases of gold for its central bank in december, obviously, right after the election. that's been a boost to gold prices. what are the other factors that could be an influence on gold prices, specifically those trump tariff policies and trade policies? >> so the tariff policies. have really caused central banks to continue to purchase gold. >> we're seeing many central. banks out there. >> boosting those reserves. and what it's doing is it's helping alleviate some of the pressure, because you look at a lot of the foreign currencies, they've declined specifically against the us dollar. now, the high tariff, the high inflation from possibly from tariffs could

really throw a wrench in the in the global economy and specifically the us economy. at the same time, if he does a mass deportation, you could see the labor market become slightly strained. and what what happens is, is growth in the united states will start to stall out. so what a lot of traders are positioning for is more of a stagflationary environment down the road. in the us, you lose the unskilled, you know, labor worker. you're going to have to raise wages. and then that's how that environment is created. >> all right. so again year to date gold is up just over 5%. now copper is a bit of a different story. copper has gotten a big boost this year from strong export import numbers out of china. copper moving up almost 9% year to date. what are the trump trade policies? tariffs? seems like the obvious answer, but what are the trump trade policies and tariff policies that could impact this trade? >> so he really dialed back his, you know, his threats to china here specifically in the last 24 hours. and copper remains one of our favorite commodities and the metals complex. and it often acts as a leading indicator for

inflation and also the economy. so you can look at global demand for copper expected to double over the next decade. everything from ev vehicles. remember, an ev vehicle uses four times more copper than your traditional gas vehicle. you also have ai, which the increase in the intensity of computing really is going to cause that demand to go up. you're going to need more, better computers, new technology. also the grid and renewable technologies. the tailwind is china's demand is really shifting from that property sector to manufacturing and technology. and then we also expect that constant traditional demand to pick up in 2025, construction, infrastructure spending and also defense. >> so again, copper up just about 9% year to date. now soybeans is a bit of a different story, especially when it comes to american soybean farmers. they really rely on that export market to china. china is one of the biggest importers of soybeans. during the first trump administration, during the trade war, a lot of impact the soybean market because china stopped importing so many soybeans. what's the outlook here when it

comes to soybeans? why are soybeans up nearly 11% year to date? >> it's pretty incredible. i mean, much of it. multi-month highs. it's been the unfavorable weather conditions down in south america that's reduced the global supply. but in 2024, china had imported a record amount of soybeans. 71% of the market share is for brazil, about 21% to the us. if we do implement this hard stance, these tariffs on china, you're going to see the us lose some of that market share. so but it's really him dialing it back is where we've seen china. they've already secured quite a bit of soybeans ahead of him coming into office. now today we probably have a small shift in the weather. that's why beans are down just a little bit. but it's been a great opportunity to farmers to hedge going forward their crops, especially with corn knocking on the door of $5 and then beans back at about ten and a half. >> all right. phil streible really great to see you. thank you very much. okay. >> thanks a lot, frank. >> all right. still on deck here on worldwide exchange. we're

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than 30%. the big winner this week, though, it's oklo the sam altman backed nuclear startup, which altman serves as the board chairman for those shares up just about 50%. cameco and vaneck nuclear, the vaneck nuclear etf. they're also both up just about 10%. actually, when you look at the etf, the mlr, it's up about 11%. all right. coming up with trump's fresh fight against jay powell, what it could mean next for next week's fed decision and press conference. plus we're watching shares of oracle riding a monster week its best week since december of 2021. you can see shares right now in the premarket. they're up just about 1% week to date, up more than 16%. and as we head to break another live look in davos, switzerland, we're back right after this. >> first, let me. say that i don't want to be a spoiler here. if you look at all the evidence on what ordinary people think and feel. >> 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 are a leader in public and private markets, digital assets and custom tax management, empowering. >> advisors with solutions to build the portfolios of the build thnice to meet ya.the future. today. my name is david. i've been a pharmacist for 44 years and i'm from flowery branch, georgia. when i have customers come in i recommend prevagen. number one, because it's effective. does not require a prescription. and i've been taking it quite a while myself and i know it works. and i love it when the customers come back in and tell me, "david, that really works so good for me." makes my day. prevagen. at stores everywhere without a prescription. this second trump administration? >> i think radical change.

>> i think tiktok will be allowed to continue in this country, but 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 ta

from eli lilly. see if you qualify at irokotv. >> what the world has witnessed in the past 72 hours is nothing less than a revolution of common sense. our country will soon be stronger, wealthier, and more united than ever before, and the entire planet will be more peaceful and prosperous as a result of this incredible momentum and what we're doing and going to do. >> so that was president trump delivering his america first message to leaders gathered at the world economic forum in davos. the president hitting on

a laundry list of topics from fed policy to tariffs, manufacturing and big tech regulation overseas. welcome back to worldwide exchange. i'm frank collin. coming up this half an hour we're going to have much more on that speech. and which of the president's many demands may actually yield results. but first we kick off the hour, as we always do with a check of us stock futures. after the s&p 500 closed at its first all time high of the year. the nasdaq and the dow near a percent off new highs. yesterday's upside moves coming after the president's comments on u.s. tax cuts and central banks at davos. >> i'll demand that interest rates drop immediately. and likewise they should be dropping all over the world. interest rates should follow us. >> and taking a look at futures this morning again s&p hit a record high yesterday seeing fractional declines across the board s&p down nearly ten points. the dow down just about 6770 points. the nasdaq down about 40 points as well. so again fractional declines right now i want to take a look at the nasdaq 100 premarket laggards taking a look. texas instruments right here at the bottom of the

list. technically these are the laggards down about 5% after earnings. again no mention of ai on that call. stocks certainly got hit. talking about some of the demand in its end markets. csx another earnings mover right now. those shares down more than 3%. intuitive surgical microchip tech and nxp semiconductors rounding out the laggards right now. i want to take a look at the bond market not reacting to the president's comments. take a look at the ten year pretty much where it was yesterday at 4.63. we did see a very slight downside move when it comes to the two year right now at 4.26, but again, a very slight downside move. and on this holiday short week investors they really seem to lean into those trump policies. they return tech and communication services to leadership. remember the high profile ceos of a number of companies in those sectors? we're talking amazon, meta and alphabet. they were front and center at the inauguration. you can see tech up about 3%. similar story for communication services. industrials also moving higher on comments about the us once again becoming a manufacturing nation. industrials moving nearly 3% higher. energy. you see it right here down about 2%

on the week. the laggard. remember the president declared an energy emergency aiming to boost production. want to take a look at the oil market right now. oil seeing a bit of a rebound right now. wti and brant crude both up about a third of a percent. but oil in general continues to tick lower on those. trump comments about boosting production. wti actually riding a five session losing streak. and we got to talk about crypto on the back of the president signing an executive order to promote crypto. that also opened the door for a stockpile of the digital assets. take a look at bitcoin right now. back above 105,000. up over a half a percent. ether up more than 4%. solana up nearly 4%. litecoin and ripple also moving higher. okay, that's your setup. president trump's demand for the fed to cut interest rates in his speech to the world economic forum certainly got the market's attention yesterday. just hours later, he doubled down in the oval office, arguing he understands monetary policy than those in charge of actually setting it. >> i think i know interest rates much better than they do. and i

think i know it certainly much better than the one who's primarily in charge of making that decision. but no, i'm guided by them very much. but if i disagree, i will let it be known. >> all right. let's now bring in ed mills, washington policy analyst at raymond james. good morning. good to see you. >> good morning frank. >> all right. so really interesting. so the president trying to influence the fed saying that he knows more about interest rate policy, alluding to jay powell didn't actually name him by name. what do you make of that? what impact could that have potentially on the fed and also to bond traders. >> yeah, frank i. >> mean we. >> saw this in trump 1.0. >> i thought it. was a little bit of pulling back versus his speech at davos to go and say, you know, the guy that's primarily in charge. we all know he's talking about jay powell. i do think that this is on a collision course. if the fed is concerned about a second wave of inflation, if they are concerned about some of his policies, they're not going to cut as aggressively as they would have done. i think this is a bit of a

collision course. late last year we had the head of supervision, the vice chair for supervision, the chief regulator at the fed. step aside. to me, that was a signal from the federal reserve that they were trying not to have a big fight with trump. i don't know how much goodwill that brings. powell. he doesn't have much to lose. he's going to be out of a job anyways at the end of the year or mid year next year. so it's a collision course. he can't wave a magic wand and it's really going to be up to the fed. what they do with the interest rates not donald trump. >> all right. so the president also talked about manufacturing here in the us basically saying other countries you need to make your things here or there might be potentially some aggressive tariffs. we're going to play a sound bite. i want to get your reaction to exactly what the president had to say. >> my message to every business in the world is very simple. come make your product in america and we will give you among the lowest taxes of any nation on earth. we're bringing them down very substantially,

even from the original trump tax cuts. but if you don't make your product in america, which is your prerogative, then very simply you will have to pay a tariff. >> so there the president not only talking about tariffs but also talking about taxes. again, he continues to talk about u.s. tax policy when a deal just quite hasn't been struck yet. how important is reaching that tax deal to his america first policies, just to his general ability to create sentiment when it comes to the markets? >> yeah. so, frank, i break this into two things. number one, when he's talking about tariffs, he's serious. and what he's talking about. there is a universal tariff. and at raymond james we hosted a call this week. asked all the investors on the call in 73% of the folks on the call said there's not going to be a universal tariff this year. i think that's one of the biggest disconnects between what i'm hearing in washington, d.c, and what i'm hearing in the market. now, when it comes to taxes, i think it's going to be very difficult to lower the 21%

corporate tax rate. it's about 120 to $150 billion per 1%. that is reduced. there is momentum on the hill to maybe make the trump tax cuts permanent. but to go further i don't know if there is the ability to do that or we would see a bond market reaction that the united states is probably not going to be collecting as much taxes as they thought, therefore adding to the debt and deficit. that's a that's going to be a political and market problem for them. >> you know, so the deficit math is one thing. but the president's ability to get these tax cuts passed through congress, that's kind of a different thing. so in your mind at least, how important is it for the president to be able to pass these tax cuts? we know that people actually on both sides, they see some value in these tax cuts when it comes to sentiment, not only here in the us and for investors, but around the world, because, again, the president continues to say america first, trying to put america in a place of dominance. we're talking about global investors. how important are these tax cuts, not only for companies to make things and

build sites here, but also just for investors to invest in the us markets, whether it be stocks or treasuries. >> frank, when i talk to investors globally, i was in canada last week, go to europe a couple of times a year. when we talk about a lot of these policies, i say, what happens if he puts tariffs on that's an overweight to the us by investors. what we're seeing part of the strength in the us market right now is just how much the world is overweight, the united states equity market. and i think that continues when i talk to folks on the trump team, what they tell me tax cuts is a cornerstone, but it's also deregulation. it is moving towards tariffs. it is a strong dollar. it's an all of the above strategy. one of the big debates that's going on right now within the trump team is team trade. team tariff are trying to be much more aggressive on the trade tariff policies, where team econ is trying to say there is a step function here and we have to lay this out. i do think

that donald trump has the market as a barometer for his success. so he's listening a little bit more to team econ. he wants to get what you describe, frank. the continued investment in the united states. he's having these press conferences with business leaders. that's what he loves to do. so he is trying to create this environment where people are saying the united states is the best country in the world to invest in trying to provide the governmental infrastructure to support that. >> and mills stick around. we got a lot more to talk to you about. don't go anywhere. we're going to come back to you in just a second. but right now we're taking a look at etf inflows. so far year to date the net inflows are topping $70 billion. with popular index funds like the s&p. and the triple q seeing inflows actually below their moving averages during the week of the inauguration. remember it was a holiday shortened week. so this week the s&p and the nasdaq 100 both rising about 2% with the markets closed again on monday for that mlk holiday. and according to state street global advisors, outside the funds that mirror a single index or a

single asset class like bitcoin, these are the etfs that saw the top inflows. so first it was the sm chip etf. nvidia a top holding there with about 20% weighting. also two factor etfs. we have the m2 m2 m. the portfolio managers see it has stocks that they see having the most momentum in the s&p 500. also this one's pretty interesting. the spx xl. this is a levered etf that delivers three times the return of the s&p 500, either to the upside or to the downside. so very interesting where investors are putting their money in at least in the etf space this week. all right. coming up here on worldwide exchange. much more on that trump effect in davos. our sara eisen talking right now with leaders at the world economic forum discussing topics including the president's america first message to the attendees there. they're taking the worldwide exchange returns. stay with us. >> we have very active role of the bank of.

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be additive to any economy. and, you know, president trump's policies, if we're able to unlock private capital and put private capital to work faster, easier with less regulation, less time for permitting, it will allow the u.s. to become less dependent on its own fiscal problems. >> there was this great incentive to go and invest in the united states because of the inflation reduction act and the significant subsidies that were going to be given to those who invested in the us. i think the ira has essentially been removed, and that any subsidies under the ira will not be paid out. so people are going to have to rethink with the prism of confidence, with the prism of cost, as is often the case and the prism of opportunities. and there is no question that what is happening outside is a challenge. but it's also a big opportunity for revisiting and deciding whether or not europe

wants to be a key player. but i'm contending that it has the talent and it has the means, and it has the ambition. >> again, that was latest from davos. our sara eisen moderating that panel. and mills still with us. washington policy analyst at raymond james. and you just heard some of those sound bites from sara's panel. i want to get your take on what you heard. >> i thought that was fascinating, frank, because you could see both really driving their own agenda. so let's start with larry fink certainly wants to make sure that he's giving donald trump credit for a deregulatory agenda. credit for kind of building things in the united states. but what does he want? he wants less regulation. he wants the ability for private credit to be unleashed. there's certainly a part of that agenda that donald trump is pursuing. and when i talk to folks in and around team trump, they tell me the thing that he wants the most is things to be built in the united states. and we're certainly seeing that. and when we look at bank regulation

taking off the reins of banks and on private credit through the deregulatory push that we're largely going to see through the courts is absolutely in his purview. now we go over to christine lagarde. europe really did not like the inflation reduction act because it was a challenge to the european industrial base. i think they kind of like the fact that the ira is under attack by the trump presidency. i'll let you into something. i don't think it's going away. i think that she is overstating that. but it's almost a catch up call from the europeans trying to kind of say, hey, maybe you shouldn't be building that industrial base in the united states, stay in europe, come back home. it was a huge competitive advantage for the united states. and that's part of the reason why i think it remains frank. >> so do me a favor. can you translate this part of what christine lagarde had to say? she talked about, you know, the ira basically being repealed in her mind? i know you said it's not going anywhere, but she said that foreign companies will have

to invest through a prism of confidence and cost. i wasn't quite sure what she meant by that. did you get a sense of what that meant? >> yeah, i think the confidence is we are going to have a conversation here in washington, d.c. on what portions of the inflation reduction act might get changed. and so she is almost sending a warning to those companies who have announced massive investments in the united states. do you have the confidence that those dollars are going to be there? what is the cost going to be if donald trump enacts other policies that she would say are potentially inflationary? it really is a classic example of talking your own book editor. >> standby. we want to play a sound bite from the president of singapore that just happened a second ago. >> there was one real positive coming out of president trump's speech yesterday evening here at the forum. it was the way he spoke about china and the us. it suggested a desire for a new understanding and a desire to

avoid a continuous unraveling of a relationship that is still profoundly important for the global world economy. >> ed, your reaction to this, that's again, the president of singapore, commenting on the us-china dynamic relationship. however you want to describe it. >> yeah. so, frank, at raymond james, one of the questions we've gotten the most is are we going to get day one tariffs on china? we didn't receive them. the comments that he's referring to last night, donald trump said he wants to have a good relationship with china essentially that he will put tariffs on. he will ratchet those tariffs up. the united states has the advantage in this relationship as it relates to tariffs. but it's not something that he wants to do. he just wants it to be fair. there is that reciprocal kind of fairness that donald trump talks about. if you are a leader of a country within asia, do you want a massive fissure between the world's number one and number

two economy? no. do you like the comments that donald trump said last night? yes. does that mean we're going to avoid a fight? absolutely not. we're still base case going to have a fight with china. it's just kind of laying the groundwork, warming it up before he starts getting more aggressive, because i don't think china is going to be willing to go as far as donald trump wants to go without that fight. >> you know, once you're talking about tensions between the us and china, if you're a leader of an asian nation, that you don't want those tensions to happen. but we have seen a shift in supply chains and dollars going to other asian countries like vietnam, south asia, india. why would they want the us and china to have a very solid relationship when they want some of those tensions to still continue and perhaps lead to more capital flowing to their countries? >> yeah, two things. number one in vietnam, watch for a push on a currency manipulation charge in tariffs that are specifically on vietnam. that's an underappreciated risk here. and with india, when i talk to folks

on trump teams, they say we hate india because of how high their tariffs are. but we love india because of how high their tariffs are. a free trade agreement with india is something donald trump would love to do in his first term, opening up the market of a billion plus people of us companies at very low tariff rates. >> and it's great to see you. thank you for your time and for your insight. always appreciate having you on. >> thanks, frank. >> all right. coming up here on worldwide exchange, the one word that every investor has to hear today in the stock pick that every investor needs to know, plus fresh headwinds for one of the most important companies in the world. the new concerns around apple and one of its around apple and one of its flagship power e*trade's easy-to-use tools, like dynamic charting and risk-reward analysis, help make trading feel effortless. and its customizable scans with social sentiment help you find and unlock opportunities in the market. e*trade from morgan stanley. ♪♪ with powerful, easy-to-use tools power e*trade makes complex trading easier. react to fast-moving markets with dynamic charting and a futures ladder that lets you place, flatten,

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business. >> no that's not what i meant. >> you all should. >> be laughing harder. >> welcome back to worldwide exchange. we're going to turn back to davos. is the ecb president christine lagarde talking about the dynamic between the eu and us companies, institutions. >> any literature that you have about stability, about economic equilibrium always reminds us that institutions have a huge value and that frameworks are here for players to know the rules of the game. and, you know, whether you look at trade, whether you look at financial regulations. i know that basel three is in play, but there are values in having frameworks. there are values in all banks around the world, learning and understanding and appreciating that having safeguards, having rules vis a vis each other actually matters. and the best can win. but within a set of

rules, that's how the world has to operate. >> a lot of agreement here in this room. >> managing director georgieva. >> i mean, you have you. >> don't like tariffs. you've been warning against. >> trade friction. >> at the imf. >> you are. >> the institution that advocates multilateralism. >> so what do. >> you do in this environment? >> what we do is we look at the evidence and here is what we find. it actually confirms that saudi arabia has the right strategy. we have been seeing over the last years increase in protectionist measures, tariffs as well as industrial policy measures. and we have seen countries gravitating towards politically aligned countries in their trade practices. and what the evidence shows is that trade among politically aligned

countries is higher than trade across politically aligned countries. but guess which category of countries is performing the best? the countries that are friends with everybody. so there is, in my view, what we see. >> this is. >> the very latest from the world economic forum, one of the last panels of the world economic forum are sara eisen moderating, talking to blackrock's larry fink, christine lagarde, the president of the ecb, a number of other notable people. we'll have much more worldwide exchange coming up right after this break. >> more regional. >> 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. clinical setting. >> as healthcare. >> demands grow. >> the urgency. >> for innovative. >> solutions has never been greater. with every challenge comes an opportunity a chance to

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>> want to apply to be on cnbc's disruptor 50 list? is your startup disrupting the status quo? scan this code or go to cnbc.com. slash disruptors to apply before february 10th. >> welcome back to worldwide exchange. we have a market flash for you on novo nordisk. you can see right here shares are surging up just about 9.5% on word of a successful clinical trial for a new glp one drug. again the weight loss drug area taking taking a look at the stock right now, as we just said, up about 9.5% after that successful trial. all right. as we close in on the 6 a.m. hour, a few big stories that we're following this morning looking at shares of texas instruments. they're under pressure after signaling ongoing challenges in its auto and industrials markets, which account for about 70% of revenue. the ceo saying they've they've yet to see a bottom also warning of gross profit margin decreases in the months ahead. shares down nearly 5%. other chip makers also

falling in sympathy. texas instruments again down about 5%. analog devices on semiconductor and nxp all down more than 1%. boeing shares pulling back following preliminary q4 results. boeing says it expects to take a $4 billion hit in the final three months of 2024. that includes a $1.1 billion charge related to strikes that impacted its 777x and 767 programs. a blackstone unit is buying a virginia power plant located very close to some data centers. blackstone energy revealing for the deal for the potomac energy center to reuters, saying the sources with sources saying it will pay $1 billion and the bank of japan hiking rates by 25 basis points as expected, bringing its policy rate to the highest level since 2008. the move comes as policymakers face sustained inflation and rising wages. all right, one more check on us stock futures. we've been watching all morning long and the red across the board but just fractionally throughout the morning. taking a look right now our latest check we are seeing. well we'll show them to you just a second. again still in the red

across the board. we also want to return back to davos right now larry fink. that's the blackstone ceo speaking. excuse me blackrock ceo speaking in davos just a moment ago on why you should be keeping your eye on the bond market. >> i think the bond market is the best reflection of what's going on in the world. it is the barometer for every politician, for every central bank. it really informs us every day where. the mood of the global economy. and that i believe the bond market is indicating that inflation may be higher than we think. >> so for more, let's bring in kevin simpson, founder and ceo of capital wealth planning. kevin, good morning. i want to get you to react to those larry fink comments right there. the tail end. i want to make sure you caught it. he said that the bond market may be signaling that inflation is higher than we actually think. >> well. >> we know that. >> the bond. >> market is bigger and smarter than the stock market. >> so he's right that we need to pay attention to it. and if we

see rates. >> approaching 5%. >> then i feel like we're. >> in a position that that yes, in fact, and indeed the bond market's concerned about inflation. >> and really i think it was some of the previous. >> speakers from. davos talking about tariffs because. >> i think that's the wild card. that's really the unknown. and if we see tariffs that are restrictive and inflationary it's going to cause a problem for all of us because the headwinds would be a fed not cutting rates. a fed talking about rate hikes. and the only time that would come into the conversation, frank, the only time that would play is if we see inflation really returning into the into the economy here. >> kevin, i want to get to your word of the day. it is history. why is that important? as we look at trump 2.0. >> i mean we couldn't have a better setup. you know history doesn't always repeat itself, but it often rhymes. and i think about tariffs being the same story that we had back in 2017. how is this going to affect trade policy. and ultimately how is it going to affect the us economy and inflation. so following up on our previous conversation, if tariffs are inflationary that's problematic.

and to mr. fink's point, we'll probably see that in the bond market long before we see that in the equity markets. >> all right. you also have a pick for us today. what is your pick and why. >> well i like to be contrarian frank. i like to buy things that people are hating on. so we added to apple this week. apple was trading around $260 a share at christmas time. it's come down 15% to 220. i'm not suggesting we're calling the absolute bottom by any means, but there's reasons down here why this metric looks a lot better. obvious reasons with the eyeball test, it's cheaper. but there are things going on at apple beyond the iphone 16 and 17 supercycles that still make this an incredible utility. the service model is massively profitable, and the share buybacks, which we dismiss a lot as something that's just sort of a taken for granted thing, $110 billion of share buybacks is relevant, and it helps earnings per share for 2025 and into 2026. so we bought this in devo, devoe. our dividend strategy

again. and interestingly it's also in our growth strategy. so one of the few names we have in both frank. >> all right. your pick for us today. that's apple kevin simpson. it is always great to see you. thank you very much. >> go birds. >> all right. when we look at the futures before we let you go in the red across the board right now just fractional declines. taking a look very quickly. looks like the dow woul open up just about 70 points lower. that does it for us. squawk box starts right now. >> good morning boeing. shares are under pressure. the company warned that it likely cost $4 billion. lost $4. >> billion. >> in the fourth quarter. president trump says he knows interest rates better than the. >> fed. >> and he will demand they go lower. the comments set up a clash with fed. >> chair. >> jay powell. >> ahead of next week's policy. >> meeting, and. >> costco won't roll back its dry policy. shareholders are siding with management to fend off an anti die proposal brought by activists. it is friday, january 24th, 2025. and squawk box begins right now.

>> good morning and welcome. >> to squawk box. >> right here on cnbc. we are live from the nasdaq market site in times square. >> i'm becky. >> quick along. >> with mike santoli and robert frank. gentlemen good morning. >> good morning. >> good to see you guys. >> joe and andrew. >> are. >> both off today. it's friday and we're going to take a look at what's been happening with the us equity futures at this hour. you see some modest declines. dow futures off by about 70 points. nasdaq down by 30. the s&p futures off by nine. but you were talking about quite a week that we have had the s&p 500 at a record high once again. and just about every day the dow has climbed higher. yesterday was up i think more than 400 points. yes at the end of the session. >> dow outperforming yesterday. >> so s&p hit a new high. the dow is within