cut short before she was finished. >> good morning and welcome to street signs. >> i'm julianna tatelbaum, and these are your headlines. soc gen fourth. quarter profits double amid a rebound in its retail banking unit. while full year revenue tops. targets and the lender. >> pledges. >> payout to the top end. >> of. >> expectations. maersk shares float to the top of the stoxx 600 after the shipping. giant reports a solid fourth quarter beat. ceo vincent clerc is upbeat. >> despite macro and. >> trade uncertainties. >> if you work on the agility

that you need to have to react to. trends or sudden shifts that might occur, such as what. >> we saw in the. >> red sea last year. then you are actually able to see. >> not only problems. >> but a lot of. >> the silver lining also. >> astrazeneca tops. >> fourth quarter revenue. >> estimates and. issues better than expected 2025 sales guidance, driven by. >> strong demand for its cancer drugs. and the bank. >> of. england is widely expected to deliver a quarter point rate cut the. >> third of the. >> cycle, with markets also eyeing a potential downgrade to growth forecasts. join us for an interview with governor. andrew bailey at 1600 gmt. a very good morning to you and welcome to the program. >> we're now. >> about an hour into. >> the european trading session. >> and we're off to a strong start. building on yesterday's gains, the main benchmark. >> stoxx 600.

>> yesterday added about 0.5%. and this morning you can see. >> we're up about 8/10. >> of a percent in early trade. >> this follows back. >> to back gains on wall street. so positive momentum on both sides of. the atlantic companies this morning being rewarded. >> properly for delivering. >> earnings beats and strong guidance. >> that's what we're seeing. >> that's the. >> overall theme today. now breaking. >> it down. >> by region. here's a look at the bourses and. >> what we're. >> seeing in european trade. you've got. >> the french market. excuse me. up 6/10 of a percent ftse 100. >> leading the gains here up more than 1%. you've got a strong bid for basic resources stocks. so that's providing a boost to the overall uk market. the xetra. >> dax up about 7/10. >> of a percent. footsie over in italy trading about. >> 7/10 of a percent. >> higher as well. now as i mentioned in the open it is a heavy earnings day across europe. here's a look at some of the main movers. you've got shipping giant maersk right at the top of the board. >> there posting. >> a beat on. >> the top and. >> bottom. >> line in the fourth quarter. >> societe generale full year net income surged.

>> 69% to ■k74.2. >> billion, while annual revenue growth exceeded. >> the bank's target at. >> 6.7%. while siemens healthineers. >> beat revenue. >> expectations in. >> the first quarter and. >> confirmed its full year outlook. you can see there on your screens the sizable share price moves to the upside. now on the downside. ing is one. >> of. the biggest. >> laggards on the stoxx 600. the dutch lender missed profit expectations in the. >> fourth quarter, posting net. >> income of. >> ■k71.15 billion against expectations of 1.29 billion. >> and you can see the. stock is down more than 3%. for more analysis and reaction to. the flurry of. >> earnings across corporate europe this morning, check. >> out our live. >> market blog on cnbc.com. >> now let's turn back to soc gen, which as you just saw is leading. >> the stoxx 600. charlotte break it down. >> for us. what's driven the strength in the bank this morning. well as you were saying a. >> little bit earlier this. >> net. >> profit more than. >> doubling in the fourth quarter. so just above 2 billion. >> so that was way above. consensus there. >> so looking at different parts

of the business. the investment bank revenue was up 12%. so not. >> the performance that we. >> saw from competitor bnp but still some decent performance there. global markets revenue. >> up 9%. >> with ficc up 8% and equities up ten. and also interesting positive note was french retail rebounding. their french retail private banking and insurance revenue up 15%, boosted by net interest income up 36% there. so they have announced that they will increase the payout ratio to 50%. that was the higher end of the guidance that had given previously of 40% to 50%, and a higher than expected. share buyback of ■k7872 million. so there could be the signs of the turnaround being operated by the ceo, islamic roopa, who joined back in may 2023. he presented just a few months later, his strategic plan for the bank, and the analysts were quite underwhelmed at that point, and the shares dived at that moment. he degraded some of the targets. he put a big focus on cost control, on strengthening the

capital. he cut some jobs, sold multiple assets, including exiting several african markets, and they sold about ■k73 billion in assets. but it looks like maybe we are starting to have the first signs that the turnaround is happening. and so this is reflected also in the 2025 targets. you see a revenue growth of more than 3% compared to 2024, a return of tangible equity above 8%. it stood at 6.9% in 24. so that's still below some of its peers, but better than what we saw. societe generale, previously in 2023, stood at 4.2%. so we see certainly a positive trajectory on that front. and they still have a target of return on tangible equity between 9 and 10% in 26. finally, the target a cet1 ratio above 13%. and we'll see this very positive reaction there on the shares. societe generale right at the top of the pack, almost 10% up.

>> charlotte thank you for breaking it down. really strong performance across the french banks to start the year. stick with us because there's. >> another stock i want to ask you about. >> in just a moment. pernod ricard cut its sales. >> outlook for 2025 after disappointing. >> first half. >> performance, weighed. >> down by weaker growth in the us and china. >> over in the luxury. >> fashion space, gucci has ended its collaboration with designer sabato di sano, just over two years after he was appointed creative director. it is the latest in a flurry of departures from top fashion houses, and comes amid weak sales in china. carrying the parent company of gucci is due to report results on tuesday. charlotte carrying shares. i had a look this morning down almost 40% in the last year, so clearly this stock has been facing challenges and the company under pressure here. what are investors likely to think of this announcement that the gucci creative director is out? is this going to be welcomed by the investment community? >> well, certainly, you know, carry has been struggling with the double whammy, though of

course, the luxury slowdown and trying to operate a turnaround at the star brand of gucci. and you know, they've been trying to do that with a new creative director, which was sabato di sarno. and his very first collection was in september 2023. and some of these products of these collections just started trickling into the stores only later. normally, the maisons, the luxury houses, allow creative directors to kind of spread their wings and give them a bit of time to see if their products are being taken up by customers. but sabato di sarno didn't have much time to do that already ousted. so, you know, less than a year and a half after being in the job, there was a radical change in esthetic really at gucci, flamboyant style from the previous creative director, alessandro michele. and that was a very big change there with more quiet luxury style there with mr. de sano. it looks like that hasn't really worked. so here again, we see this negative reaction gearing right at the bottom of the pack, because investors will be concerned that the turnaround at gucci then is not bearing fruit. and we're waiting for the full year numbers from gearing that will be posted next week. but this

could be a negative signal that, you know, the turnaround at gucci is not happening just yet. >> charlotte, thank you for keeping us up to speed on all the latest twists and turns in luxury. now let's turn our attention to the pharma sector. astrazeneca has beat fourth quarter revenue and earnings estimates this morning, with the pharma giant's full year sales outlook also ahead of expectations. the company also said it expects. >> to. increase capex by about. >> 50% this year. you can see quite a strong positive share. >> price. >> reaction in astra this morning. we're up nearly 5%. quite a big move for a pharma company like astra. emily field joins us. >> now head of european pharma. >> research at barclays. emily always a pleasure. >> to have you. >> on the program. so much to talk about in pharma right now. let me first kick off with astra. these results fresh out the gate this morning. and the stock is reacting quite well. what's your take. >> yeah i think there was a lot of. >> hesitation going into. >> results today particularly. >> as you know. >> they have this investigation going on in china. it's been flagged. >> by the. >> company that this could.

impact their operations. so that was kind of. >> the. >> fear going into results. >> it looks like. >> that's totally manageable. >> and they're. >> making some. progress in moving towards a resolution there. so that was the big worry. and so that is moving in the right direction. and then sales for most of their key oncology products looked pretty good. so i think everyone's pretty. >> excited about the year they have ahead. >> and what about. >> the pipeline at astra? it's a pretty big feature of the business. they've been focusing a lot on oncology these cancer drugs. what's the look there. oh that's the most exciting part about. >> this company. >> they had this big investor. >> day last. >> year. >> where they talked. >> about an $80. >> billion revenue. >> target by 2030. and then the. >> ceo, pascal soriot, has said that. >> they have so many trials. reading out this year that they'll have a good idea on whether they're going. >> to make that target. probably by the end. >> of this year. >> so people are very excited about the catalyst that they have that are throughout the year. so, so potentially a lot of visibility. and you won't have to wait too long for it. now, in a different part of the pharma market, we've got a ton of focus on these glp ones. the new class of weight loss drugs that everybody now is familiar

with that has revolutionized the weight loss industry. just yesterday we heard from novo nordisk we had a chance to speak to the ceo, and that company is clearly had an extraordinary run over the last five years since these drugs came to market. but a bit of the shine has come off. i mean, i just came back from maternity leave and it's the stock has basically been on the way down since i left. you recently published a note and i think the title is worth sharing battle of the bulge what we think needs to happen to get novo back on top. share with viewers what you think needs to happen. yeah, so. novo last year was almost a tale of two halves. first half. >> of the year couldn't do anything wrong. second half. >> of the year. >> missed earnings results. >> on their. >> key. >> obesity drug wegovy. and then the just before christmas. disappointing results on the next generation. >> obesity drug carissima. >> so going. >> into this year and you know, it. >> was the worst. >> performing stock of all the large cap pharmas. and there was a lot of worry about. >> was demand slowing for these drugs. and is their pipeline going to be enough to continue the story? >> and i think yesterday i

think. >> we. >> titled our note on the on the results a sigh of relief or something along the lines like that, because they. >> gave us some. >> more details. >> on the. >> pipeline that i. >> think give a little bit more promise to this next generation drug. >> and the guidance for a midpoint of 20% revenue growth was a message that don't worry about. >> demand, guys. >> it's still there in terms of demand and how it's splitting. novo is not the only horse in town. you've got eli lilly. you've got several other companies with similar drugs. >> coming to market. >> how are market dynamics, dynamics shaking out in terms of market share across these drugs? yeah. >> so right now it's really competitive. >> between eli lilly and. novo nordisk. >> and they're. >> duking it out in the united states market. >> of course. >> competitors like roche astrazeneca there's some smaller biotechs in the us also that are rushing to get these drugs. >> to market. >> but for the. time being, it's. >> still really. going to be these two companies. and of course, we'll. >> see what happens with the whole phenomenon. of compounding. >> which is. >> a big thing in the united states as well. and compounding

expand a little bit more on that. yeah. so essentially. >> because these drugs. >> are in such high. >> demand and have been in a shortage, there's. >> these off label producers. that have been allowed. >> to make the drugs. >> hims is a company that's been. >> in the media quite a bit, and really it's a fight. >> for. >> the branded. >> companies to produce enough supplies to make. >> the. >> drugs out of shortage, to kind of put. >> these guys off of compounding. and that's a narrative that will probably continue to play out over the course of 2025. and let me shift gears and ask you about gsk, another big mover yesterday. i mean, we a lot. >> of the time these pharma. >> companies are so slow moving until they're not. and this is this is what we've seen this earnings season. gsk shares were up high single digits yesterday. >> they announced. >> a 2 billion pounds share buyback program. you're still neutral on the stock. what's the counterargument to getting involved here. yeah for. >> gsk you know started. >> off 2024. >> very very strong. and then they had some setbacks. >> with their vaccines. >> business where there are new rsv vaccine. >> in the united states. >> it. >> was limited.

>> to a smaller population. >> so sales on that were. >> down quite a bit last year. >> of course, as a vaccines company. and the headlines of what. >> may happen. >> in the us. >> but yesterday. >> they delivered. >> a very, very. >> clean quarter. obviously the buyback was very unexpected. >> and the reason. >> we're still neutral. >> though, is that they do have a patent cliff for their hiv drugs that will be coming towards the end of this decade. and we just want to see more out of the pipeline to see if they're going to. >> be. >> able to offset that patent. cliff, let me ask you about the us and the administration and the. >> changes we're expecting there. to what extent. >> are you seeing european pharma investors deterred from the sector, and what is your view? how cautious should european pharma investors be about the outlook there? yeah. so earlier. >> in. >> january we actually downgraded. >> our. sector view. >> to. >> neutral, partially. just because of. >> the concern. >> over. >> the obesity space. which has been the biggest driver of. >> the space. and then also. >> just the us policy risk. feedback that we've had is that, you know, these are huge organizations. >> fda. >> cdc, etc. that are very. >> very slow. >> to change. and so, you know,

will the appointment of rfk jr actually lead to any change? we still don't know. but i think people. >> are very. >> concerned about the headline risk, which i think is still evident in that after. >> the. >> senate finance committee vote, which, you know, i think. >> most people thought. >> he would get through. >> the sector, still traded down and. >> underperformed by a percent or two. so still a lot of nerves there and a lot of uncertainty. emily, thank you so much. it's great to get your to be able to pick your brain on these pharma companies. emily field, head of european pharma research at barclays. coming up on the show, carlsberg shares fizz as profit pushes toward the top of its guided range. we'll be joined by sylvia with the latest next. >> some people like doing. >> things the hard way. >> like doing their. >> finances with a spreadsheet instead of. using quicken. >> quicken pulls all your financial info together. >> in one place and updates it

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after a strong jobs. report in december, will the january jobs report continue the trend? what it signals for the economy and interest rates, employment numbers and analysis. squawk box tomorrow, 8:30 a.m. eastern. cnbc. >> welcome back to street signs. shipping giant maersk posted a beat on the top and bottom line in the fourth quarter. ebitda

hit $3.6 billion on revenue of $14.6 billion. steven caron asked the ceo. >> whether the company. >> is seeing a structural shift. >> within global trade, rather than just political noise. >> trade volumes. >> continue to increase. >> asia continues. >> to be. >> the factory of the world, and the share. >> that china has in traded volumes. >> continue to creep. >> up slowly. >> so. so while. >> there is a lot of. >> talk about this, it is actually very complicated. >> to. >> do the global supply chain as it is that the world relies on. today took. >> about 20. >> plus years. >> to get built. >> is very. >> integrated. >> it's very long. >> has very. multiple tiers of different. >> suppliers contributing to the finished products that. >> that you and i go by in our, in. >> our local. >> department store. >> and for, for. >> that to. >> change it. does take some time. so while. >> we're seeing. some movements towards more nearshoring in. >> turkey, in. morocco or in mexico. >> near some. >> of. >> the consumer markets, the overall trend is still of. >> a very.

>> resilient global supply chain. >> that copes with. >> these political pressure. more than it really structurally. >> changed so far. >> in the drink space, carlsberg has posted annual organic operating profit at the top end of its guided range, coming in 6% higher on the year. while volumes missed analyst expectations. sylvia joins us. now from copenhagen with more. sylvia. carlsberg. pretty impressive that despite volumes. >> disappointing, they. >> were still able to deliver a profit beat. >> exactly. and that's being very clear in the way that the shares are moving so far this morning. among the best performing stocks. >> in europe thus far. >> but let me. >> explain to. >> you why. perhaps we're looking at this reaction in the markets. if you think about. their 2024 performance, we actually saw a beat at the top and bottom lines for their full year results. >> and on top of. >> that. >> perhaps even. >> more importantly. >> they actually finished. >> at the. >> top range. >> of their guidance for 2024.

>> in terms of organic operating. >> profit growth, up 6%. however, it's not just a rosy. picture when you think about their message for 2025. they guided for. lower organic operating profit growth in this year. and therefore they also highlighted that there's key. challenges ahead. some markets, particularly. asia and also western europe, there are pressures. >> in those markets. >> however, when you think about the positives as well, the. ceo was very clear to say that they are focused on their growth categories. and within that is the volume growth in terms of nonalcoholic beer, which actually was up 6%. here's the ceo explaining why this is such an important part of their business. >> that's actually our. >> fastest growing category. >> when you. >> look at the accounts today, it's the fastest. >> growing category. >> and we see that as a sustainable structural trend. we think there's much more to gain in alcohol free as it's moving

from being a pure replacement of a beer drinking occasion to. becoming a category in itself. so a really a beverage in itself that doesn't just replace alcohol. and the innovation is high. we've launched more than 60 different alcohol free brands over. >> the last three years. >> or so. >> assessing a. >> company is always relevant to compare how they're doing against their peers. and of course. when you think about that, we heard from the trio earlier this. >> week very. >> much suggesting that they will be impacted by these trump tariffs. but when you look at carlsberg, their sales in the united states are very limited. this is not a part of their a huge part of their business whatsoever. however, when i spoke to jacob anderson, he was very clear to say that even though there is no direct impact on their business, he is not relaxed about these escalations in trade conflicts. and we sell very little product into the us, so we don't get that direct impact as others will do. on the

other hand, we're not relaxed about it because it can have secondary impacts on. >> many markets, and there. >> can be also unforeseen impacts that we haven't thought of at this stage. but when i look at it globally, globally, across our portfolio for. >> 2025. >> it is it is not the. >> biggest concern. >> that we face. it is more around how does global consumers react. to now 2 to 3 years of higher inflation. than ordinary? and we will see how the broader picture around tariffs, global tariffs and trade wars play out. i have to say we are used to facing this type of volatility. and as a company. >> not. >> directly exposed to. >> the. >> us, and i think we take a balanced. perspective on it. >> so as i've. highlighted earlier, ahead of the market open today, shares of carlsberg were down almost 20% over the past 12 months. however, with these numbers, we are looking at investors piling back into the stock. it is, as i said earlier, one of the best performing companies this. morning in early

trades. let's see how the year is going to unfold for carlsberg. but so far, juliana, today's numbers seem. >> to. >> have pleased investors. >> sylvia, thank you so much for bringing us that interview. sticking with earnings. >> telenor posted fourth quarter. >> core operating earnings in line with estimates with ebitda before other. >> items coming in at 8.5 billion. >> norwegian crown, the telecom operator, swung to a net profit from a loss in the same period last year. torbjorn v's, cfo of telenor, joins me now. torbjorn, thank you so much for joining us this morning to elaborate on your numbers. this quarter looks like an overall solid quarter, broadly in line with what the market was expecting. how would you characterize the period? >> yeah, no, i think. >> we delivered. >> very well on these results. you know, we had very, very strong performance from the nordics. >> and despite. some of the macro headwinds that we. >> see. >> in bangladesh. we continue. >> to deliver well. >> on all. >> call it our sort of. outlook parameters and delivered a very, very strong cash flow for the year. and that gives us.

>> confidence in the outlook that we have set now. >> for 2025. >> let me ask you about bangladesh. it's been quite a challenging year over. >> in asia. >> in particular in bangladesh. any signs of recovery there? i know a lot of it has been out of your control. >> yeah. >> i'm going to be careful in terms. >> of speculating. >> on the speed of a recovery in bangladesh. but clearly in. >> the second half. >> of 2024, you know, it's been a lot of macro turmoil, both political and economic. and that. >> has affected. the group. numbers for 2024. >> so we're. obviously following the development in that country very, very closely. and you know, daily sales revenues etc. are key parameters that we will follow with a very sharp eye moving. into 25, but hopefully it will be a v-shape recovery, not the more. protracted u-shaped recoveries i saw in my former industry, the airline industry. >> hopefully you can expect a little bit more stability from from this industry. let me ask

about your home markets. a brighter spot in your your earnings. the nordics have been quite strong. where is the growth coming from in the nordics, in your home markets? >> yeah, no. >> look, i think. >> the nordics are really delivering, you know, on all cylinders. and but within the sort of nordic footprint, particularly. >> in the fourth quarter, we saw very strong. >> performance from norway and we saw very. strong performance from finland. but you know, throughout the year we see. >> strong performances. >> from from our various businesses. >> and that. >> gives us confidence in. >> call it the mid-single digit organic. >> ebitda growth expectations into 25. you know, we if we use norway as an example, which is called the home market from where i work, you know, here we have one of the world's. >> best networks. >> in, you know, one of the more. >> expensive countries in the world. >> and we're seeing that our customers are demanding. >> more and more services. so our more for more strategy. which we are using across the nordics. >> of adding on additional

service. >> elements to our mobile subscriptions. >> are really, really. helpful in terms of driving average. >> revenue per user. and that is a. >> strategy that. >> we see is working very. >> well for. >> for us as a. >> group in the nordics. >> what does it mean for profitability if you're adding more services? i certainly appreciate that that's positive from a revenue perspective, but from a cost side, how are you managing? >> yeah. >> we have a very, very sharp eye on. >> on the cost. and i won't go into. >> all the sort of operational transformation issues. >> that was outlined well by benedikte. >> in the presentation today. but, you know, we have a really sharp focus on making sure we take the cost down. and you got to remember that some. >> of the services that we are adding. >> on top of our. mobile subscriptions. >> are not necessarily that expensive. but nevertheless, it's in real demand. and i think our security filters, just as an example, we have stopped about 2 billion attempts to sort. >> of defraud our customers. >> over the last year, and that is thanks to the security

filters that has been added. both on the mobile. >> side. >> but also on on the fixed side. in, in norway. >> your cash flow generation this quarter was better than expected. you know, a key highlight i think from the earnings report. what are you planning to do with your your cash? >> well, we have a. >> very long and historical strong commitment to paying. >> dividends to our shareholders. >> we've had nominal growth every. >> year for the. last 15 years. and we have. >> a clear dividend. >> policy to which we are. >> very committed. >> so, you know, we in arriving. >> at call it the cash. flow guidance that we. >> have to the market. >> we will. >> of course. >> also include the investments. but in terms of the money that is. generated and call it in our pockets, at the end of the day, cash is king. i used. >> to say, as a former. >> treasurer, you. >> know. >> around 13 billion. >> cash. >> flow outlook before m&a for 2025 means that we are then covering the. dividends that we

are going to be paying out in 25 for the financial year 2024. so. >> you know, we have. >> a strong commitment to shareholder remuneration. and i think this is very key for a company in our type of industry. and is a central underpin of our equity story. >> for sure. i think investors will certainly be be glad to hear that the dividend is not in question, and that remains a pillar of the investment case. what about m&a? once you've paid your dividend, what's your view on m&a? the strategy. >> look we. >> have four business areas. >> you know we. >> have the nordics. we have asia. we have infrastructure and we have amp. and what we have said to the market is that, you know, we will of course look at inorganic opportunities across call it our collective footprint. in terms of business operations. and. >> you know, they being a big, large. >> global company, you know these inorganic opportunities come come across our desks many

times. and we will of course be open to exploring it. but the main focus is, of course to deliver on the strategy. the final year of the strategy period that ends at the end of this year. and then this year, we will be laying the new strategy for the next strategy period, which is 26 to 28, which we look forward to talking more about around capital markets day in q4. >> all right, torbjorn, well, if not before then, look forward to speaking to you around that capital markets day. torbjorn, the cfo of telenor. coming up on the show, the bank of england is lining up its third rate cut since the pandemic. but that decision may not be the main event. we'll have more on that event. we'll have more on that next. (auctioneer) let's start the bidding at 5 million dollars. (man) robinhood gold members get a 3% ira match. while the wealthy hoard their perks,

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>> welcome back to street signs i'm julianna tatelbaum and these are your headlines. soc gen fourth quarter profits double amid a rebound in its retail banking unit. while full year revenue tops targets. and the lender pledges pay outs at the top end of expectations. maersk shares float to the top of the stoxx 600 after the shipping giant reports a solid fourth quarter beat. ceo vincent clerc is upbeat despite macro. and trade uncertainties. >> if you work. >> on the agility. >> that. >> you need to have to react to. >> trends or sudden shifts. >> that might occur, such. >> as. >> what we saw. >> in the. red sea. >> last year. then you are. >> actually able. >> to see not only problems, but a lot. >> of the. >> silver lining also. >> astrazeneca tops fourth quarter revenue estimates and issues better. >> than expected. >> 2025 sales guidance, driven by strong demand for its cancer drugs. putting shares on track for their best day in more than nine months. and the bank of england is widely expected to

deliver a quarter point rate cut the third of the cycle, with markets also eyeing a potential downgrade to growth forecasts. join us for an interview with governor andrew bailey at 1600 gmt. let's get a check on european markets. you can see stoxx 600 up, 7/10 of. >> a percent. >> adding to yesterday's advance, we saw the main benchmark rally about half. >> a percent yesterday. >> also wall to wall. excuse me. back to back gains on wall street. so the positive momentum being felt on both sides of the atlantic here. earnings sharply in focus in europe this morning. let's take a look. >> at. >> the sectors and how the split is shaping up. on the upside you've got these are the european markets. excuse me. we've got the ftse 100 up more

than 1% being buoyed by the basic resources sector, a strong bid for the mining names today. xetra dax up 7/10 of a percent. the cac40 up 7/10 as well. and the ftse mid not far behind. so every region every sector is higher today. now let's get on to the sectors and see what's behind the gains at the level. you've got basic resources as i mentioned two and a third percent higher this morning. banks also catching a strong bid. you've got soc gen the among the best performers in the overall market today. food and bev also doing well up more than 1%. health care up 9/10 of a percent. with astrazeneca in that basket performing quite well. it's been quite a strong week for pharma overall. gsk, novo nordisk both gaining strongly yesterday in terms of the laggards in europe. here's a picture at the sectors. we've got real estate now trading just below the flat line. retail media and utilities round out the bottom performers in the market this morning. as for wall street, here is how us futures are shaping up. you've got a bounce there as well. the

nasdaq, the dow jones and the s&p 500 are all trading higher at this stage. according to us futures. this follows a decent day yesterday. as i said back to back gains for wall street. private companies added 183,000 jobs in january, according to adp. that topped expectations. now that figure, which was largely driven by service providers, comes after december's print showed growth of 176,000 jobs. adp's jobs print comes ahead of friday's key nonfarm payrolls report, with forecasts pointing to jobs growth of 169,000 roles. speaking to cnbc, adp chief economist nela richardson forecast a robust number for friday's data. >> the january report for adp and the numbers that you'll see friday from the government have been re benchmarked with a w number that it pulls the numbers together for january. and so what i think you'll see from from both adp and on the friday report is strength ending the

second half of 2024. that carried over into the first month of 2025. >> investors are watching the bank of england today as it reveals its latest policy decision, with markets. >> pricing in a. >> 25 basis point cut. the central bank's third cut since the pandemic. you can see on your screens there how gilts are trading. this morning you got the 30 year down just above the 5% level and then out toward the front of the curve. the one year is trading around 4.4%. john cunliffe joins me now, head of investment office at jm finn. john, great to have you with us this morning. what is your expectation for today's meeting? the 25 basis point cut is clearly quite well expected. but beyond the cut, what are you going to be looking for? >> i think the first thing would be whether there's any dissent. the last bank of england meeting there was a63 split in terms of no change. so there was a dovish tilt to it. catherine mann i think could be the outlier in terms of going for no change in

rates. but i think the risks around the labor market are clearly skewed to the downside. and whilst the near-term risks to inflation i think clearly are on the upside, reflecting national insurance contributions and also european energy prices, i think the focus really has to be the extent to which the bank wants to deliver some credible, forward guidance to the market and look through what will be quite a significant run up inflation in the months ahead. >> how can the hawks justify pausing now, if we do see one dissenter calling for a hold, given you've got growth down, you've got services inflation down, you've got labor market intentions, you know down. what is the justification for pausing. >> i'm not sure there is. you know the fed is restrictive with rates at 4.375. the bank of england is obviously very restrictive with rates at 4.75. i mean, there's clearly concerns about the supply side crowding out because of fiscal stimulus issues around, you know, the

increased costs coming through in the labor market. but i don't see on a two year view, there's any meaningful reason why the bank of england can't deliver certainly solid forward guidance, that rates could fall towards the 4% to 3.75 in the year ahead, with arguably risk to the downside. >> what could that forward guidance look like if we do see them give us some kind of guidance? what would it look like? >> i think it has to be risks around the labor market and also risks around demand. remember that the obr is currently a significant outlier in terms of expecting growth to be 2% this year and 1.7% flatlining thereafter. you know, even if trend growth is one and a 12:45 and a half over the medium term, there has to be downside risk to growth. and with the limited amount of fiscal wiggle room that the chancellor has, i think monetary policy activism will have to be a way of ensuring that we don't have a much more

challenged economic cycle going into 2026. >> at the moment, the mpc is looking at quarterly rate cuts. could we see that change and actually see the mpc move to cutting rates at every meeting? >> not yet. i think the bank is going to be a bit cautious near term. i think as we get through this year, we could see slightly more rapid rate cuts, certainly down towards the terminal rate of 3.5%. but that would be some way into next year. >> and what about the inflation target of around 2%? do you think that that's still valid? is that the right level? is there any chance that the bank of england adjusts it? >> it's a great question. i think if central banks in the round were to sit down today and think about what an appropriate inflation target was, i think they'd probably say two and a half to 3%. but i think the sharp run up in inflation that we've seen in 2022 was a big knock to the credibility of central banks, so it's not something they can sell to the

market. but but more broadly, you know the fed in particular, like the bank of england probably has a dual reality. it's talking about an inflation mandate that it doesn't really want to deliver against, but it doesn't want to lose credibility as well. so, you know, as a fixed income person as well as a multi-asset person, i'm happy with 2.5% inflation. i think it does. it does stave off the risk of hitting two, but then ending up undershooting and then getting out of what is a very difficult deflationary hole. >> when you layer in. also the outlook for the macroeconomic and geopolitical outlook and the potential for inflationary pressures as a result of tariffs, you've got to think that's something that they'd like to consider, even if they don't have the political capital to do so. >> no. absolutely. and i think the difficulty policymakers have had in the last 2 to 3 years is managing the supply side, you know, and geopolitics clearly are going to be challenging from a supply side perspective. and obviously in the uk you've got supply side issues around, you

know, crowding out the private sector because of fiscal stimulus. so it is a big headache for policy makers. but i think the markets and policy makers are going to have to look through that and look at the underlying demand dynamics in sort of the global economy. >> let me round out. >> by asking you how you play this in markets from a gilt market perspective. we've seen a ton of volatility in gilt markets over the last six months or so. this is the first decision since that big bond sell off back in early january, where the 30 year gilt yield hit its highest level since 1998. how do you position how do you play the gilt market here? >> you know, we've liked gilts for some time. certainly either side of the year end when we had a big a big rise in gilt yields. you know we think short and intermediate dated gilts are cheap relative to the delivered bank of england rate moves we expect in the next 12 months. so we are buyers of gilts, particularly into weakness. we've been a bit more cautious on the very long end because, you know, the concerns about fiscal stability have had an

impact there. and also rising term premia in the us has also had an effect on on long term gilts. but give you an example. in the recent past we had the market implied five year rate in ten years time, which is a break even between 10 and 15 year gilts. that was up towards 6%. i mean, that's a very high rate compared to where average five year rates have been over the last 20 years. so cut to the chase. you know, we like gilts. we're looking to add duration and our allocation as yields rise. and some of those longer dated forwards look pretty attractive as well from our perspective. >> john thank you for the conversation. helping us prep for the bank of england decision this afternoon. john cunliffe, head of investment office jm finn. now i want to also bring your attention to the ftse 100. we were just chatting about uk assets. it has hit a record high this morning. a strong gains for the uk benchmark up more than 1%. we're seeing a strong bid for the miners this morning. basic resources as a sector up more than two and a third percent. you're also seeing a strong bid for astrazeneca in

the uk market to get up to speed ahead of the bank of england's rate decision. head to cnbc.com and steve and i will bring you that decision from 1155 gmt here on tv. oh, and don't miss steve's interview with governor andrew bailey at 4:00 pm. we've got so much for you on the bank of england this afternoon. the french government, meanwhile, survived two no confidence votes on wednesday, clearing the way for a contentious state budget to finally be adopted. coming up on street signs, amazon prepares to post fourth quarter results with its key cloud unit in focus. we'll have more with arjun next. >> if you put. >> together like a classic. always working magic. >> every time we. >> make this valentine's day one to remember, don't just get

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more at stocco comm. >> every day. >> i'm reading extensively. i'm checking. >> the markets throughout the trading session, working the phones, talking to sources, and doing my own reporting to share insights, information, and all of the details that you need to be able to make money. >> welcome back to the program. well, as we approach the end of the show, here are four things

to get you up to speed ahead of the open on wall street. on the economic data front, we'll get initial jobless claims stateside ahead of tomorrow's all important nonfarm payrolls report. we'll also hear from fed governor chris waller and dallas president lorie logan, as several fomc members voiced concerns over the impact of trump's tariffs on inflation. today is the deadline for federal workers to accept the deferred resignation offer from the trump administration, and amazon will become the latest of the magnificent seven to report, with numbers due after the closing bell. disney topped first quarter profit estimates, but revealed it began to lose subscribers to its disney plus streaming service. the entertainment giant posted a 23% rise in net income, while revenue increased 4.8%. but disney plus subscriptions eased in the quarter, with the company warning that it expected another modest decline in the coming months. you can see shares down about 2.4%. disney cfo hugh johnston told cnbc he was satisfied with the overall numbers despite challenges on multiple fronts.

>> i feel. >> great about the quarter. >> well in excess. >> of expectations and. >> most importantly. >> broad based growth. >> the entertainment business came in very strongly on the. >> back of moana. >> two. >> as well as. >> mufasa. >> and the. >> experiences business performed very well in. >> excess of where we. >> expected. >> despite the fact. >> that we were dealing with. hurricanes and the. >> start. >> up costs. >> on a. >> ship. >> ford shares hit the brakes in extended trade after january. sales dipped on weak demand for internal combustion vehicles, and the carmaker forecast lower profit for the year. it sees up to $5.5 billion in losses on its ev and software operations this year. that's broadly in line with 2024 for the fourth quarter, revenue beat expectations, coming in at more than $48 billion, and you can see extended hours. the stock down 4.7%. ceo jim farley told cnbc that president trump's tariffs could spell trouble for u.s. automakers. >> if this persists. this tariff

persisted with mexico and canada. it would mean billions of losses for the domestic car industry, huge impact for jobs in the u.s. the administration knows that as well as congressional leaders. they know that ford is the most american car company we produce the most, and they have committed to us to strengthen our industry and not weaken it. >> shares of soitec are sharply lower after the french chip materials supplier cut its 2025 guidance and signaled limited growth for 2026. the chip supplier company now expects a high single digit percentage decline in 2025 revenue, having seen it as stable before. shares in arm and qualcomm fell in extended trade, with the chip stocks underwhelming investors with disappointing guidance and prompting concerns of a slowdown in ai spending. qualcomm beat on the top and bottom line in its first quarter, but issued weaker than expected estimates for its key patent licensing business and chip designer arm topped

third quarter expectations, but warned it will not meet the higher end of its full year forecast. qualcomm ceo cristiano amon told cnbc the recent developments at deep sea provide a tailwind. within days. >> of the. >> deep sea announcement, people were showing it running on snapdragon phones. >> showing on snapdragon pcs. >> as a matter of fact. microsoft announced. >> that deep. >> scar one is running. >> on copilot plus pc. starting with with snapdragon. >> we'll have more from the chip sector later today when our u.s. colleagues speak to arm ceo renee hoss. that first on cnbc interview is coming up at 1500 gmt. now, arjun joins us now with more. thankfully, he's been poring over these numbers over the last 12 hours or so. raj, what do you make of the share price reaction? what should we read into how investors are thinking about these companies? because ultimately they delivered pretty good numbers. >> yeah, investors are jittery. >> they're on edge, particularly. >> when it comes to any tech stock. now that really. >> has. >> any sort of relationship.

>> to ai. and i think that's. >> come from the earnings. reports we've seen. >> thus far, the. >> likes of microsoft, the likes. >> of google and alphabet as well. >> you know, the alphabet numbers. >> in particular, seeing. >> sort of a miss on cloud revenue and concerns over. capex and whether all this. >> capex. >> big tech. >> is spending. >> is going. >> to be worth. >> the return on investment. these are. >> all the questions swirling around. >> and so. >> when you get a good set of numbers like arm and like qualcomm. >> report. >> the market. >> and investors are pouring over. >> the very small details. and to find any reason, any excuse. to sell off here. and if you look. >> at. >> arm, it was. really actually around. the forecast for. >> the current quarter we're in. >> and it was very tight. they said we're. >> going to do. >> 1.18 to $1.28 billion in revenue. >> that was in line. with expectations, but it wasn't as high as some of the highest forecasts on the market. and so. this is a stock that's already had a. 40% run up this year. >> we're only in the. >> first few days of february. and so there was a lot. >> of room for error here. and

that one. >> number alone, you know i think was the reaction given the context i just laid out with qualcomm, the focus very much. >> was around. >> a. >> potential slowdown. >> in the smartphone market as well. and again, the analysts. >> were looking at. >> one particular number. this was the licensing business. >> projection for. >> the current quarter, looking at around 1.25 to 1.45 billion. again, the market wanted about 1.4 billion. so while. >> the higher. >> end beat. the forecast, it wasn't enough because of. >> those. >> lofty expectations. as well. and so coming in. expectations high. market on edge around these sort of ai names as well. and any excuse at this point i think to sell off is what happened here. >> super clear. i want to ask you about amazon. that's the next big tech stock coming into focus. the giant is set to post fourth quarter results later today. attention on how its key cloud business aws performs will be key. the unit has delivered consistent growth in recent quarters, with analysts looking for a 19% growth rate later

today. raj, why is aws so central? and maybe that's a silly question, but just remind us in the context of everything that is amazon. why aws this quarter is so key. >> it's the majority of profits for amazon and it's. >> the story. i think. >> that's going to continue to be central for. >> amazon as. >> it also. >> navigates this ai story. of course, amazon investing. heavily in data center infrastructure. >> in india in nvidia chips and. >> then selling a lot of the ai. >> products through its cloud business as well. >> and so that's why it's so crucial and so. >> in. >> focus. the market. >> here. >> looking for. revenue in. >> the quarter of around $28.9 billion. that would imply about 19.4%. >> a year. >> on year growth. >> if that is hit, that would actually be the fastest. >> growth for the segment in two years. >> and so there. >> is high. >> expectations again, going. >> into this amazon report. >> and therefore a lot. >> of room. >> for error here. if the forecast. >> isn't good, if the. >> current quarter. >> didn't meet up to. >> expectations. >> i think the other side of the equation. >> here is how investors are. >> going to be. >> looking at capex. >> last year. >> amazon signaled.

>> that it. >> would spend. >> around $75. >> billion. in capex, and. >> it also signaled. >> that it would. >> spend even more in 2025. >> now, given. the deep seat. >> story we've been. >> speaking about. over the. last few. >> days and. >> the two sides. >> of the debate, one is that if deep. >> seek shows more efficient. >> models, why do we need to invest so much in infrastructure? the second point is if deep is more efficient. >> models and it's. >> cheaper, the technology is more ubiquitous and therefore we will. >> need more compute power. >> right now, this is where big tech is sitting on that side of the coin, and. >> it'll be interesting. >> to see. >> if we hear any. >> change in terms of amazon's forecast for capex. spending investment around data center ai. >> so just give us a little bit more insight into where amazon's capex is going and where they sit on those two sides of the coin. >> it's pretty. >> much going a lot into data center infrastructure, into servers, into the chips it needs to buy from, from nvidia and elsewhere. so all of that

infrastructure, of course, you know, some of that's going to be going towards warehousing. >> and. >> logistics and all of those things that amazon's been investing heavily in as well. but a lot of it is going. towards the data center spend. and so in order for investors to be happy. >> with that. >> they need to see that actually. >> the. >> cloud business. where they should be seeing the return on investment is giving them that. >> that return. >> and so that's why it's going to be so. >> crucial linking. >> those two together, the capex and what we're seeing in aws. >> super clear. and to bring it into context of what we've heard from some of amazon's rivals, google, microsoft, in terms of their cloud businesses, what is the read and what what might translate into today's results from amazon? >> so interestingly, both alphabet. >> and microsoft have shown pretty strong growth in terms of the absolute numbers of the cloud business. >> you know, but the issue with. >> with google is. >> that. >> it missed expectations, which were very high. and i think this is what it goes back to amazon again, the market wants very healthy growth. it expects very

healthy growth from the cloud business. >> but it almost. >> feels like being in line with those forecasts is not going to be enough for amazon. it's going to need to exceed those expectations. >> as well. >> so the bar is set super high here because of everything. >> that's. >> happened in the first few weeks of this year. and going into this, you know, amazon's got a big task on its hand to manage those expectations going forward. >> well, we've been here many, many times before the bar high and then eventually these tech companies clearing it. so we'll see if that's the case this time around. raj, thanks so much for breaking it all down for us. let's broaden it out and look at european markets overall. see how things are shaping up. now nearly two hours into the trading session. we've got green across the board for ftse 100 hitting a fresh record high, up more than 1% this morning. we're seeing a strong demand for the basic resources sector. also big move to the upside in astrazeneca. so putting the ftse 100 firmly in focus from a stock perspective. and of course that comes as investors eye uk assets more broadly in the lead up to the bank of england decision

this afternoon, where the market is widely expecting a cut of 25 basis points. in terms of the gain, the in terms of the single stocks this morning, a big day for earnings. and we've been discussing some of them this morning. to recap for you some of the main movers. you've got soc gen up more than 9%. shipping giant maersk posting a beat on the top and bottom line in the fourth quarter. soc gen full year net income surging 69% to ■k74.2 billion, while annual revenue growth exceeded the bank's target at 6.7%. siemens healthineers beat revenue expectations in the first quarter and confirmed its full year outlook. and all those stocks being handsomely rewarded for those strong results. on the downside, ing one of the biggest laggards on the stoxx 600, the dutch lender missed profit expectations in the fourth quarter, posting net income of ■k71.15 billion against expectations of 1.29 billion. for more analysis and reaction to the flurry of earnings across corporate europe this morning,

check out our live market blog on cnbc.com. it is the busiest week for earnings, so a lot to digest. we did our best to pack it all into this hour, but would encourage you for sure to check out the live blog for more. and now on to us futures. wall street is looking at further gains as well, much like we've seen in europe this morning. the dow jones. jones looking to add about 90 points. the tech heavy nasdaq looking to gain further as well. and the s&p 500 looking to gain about 13 points. we've got us weekly initial jobless claims to look forward to. and of course those amazon earnings that arjun just prepped us so well for that is it for today's show. thank you for watching street signs i'm julianna tatelbaum and worldwide exchange is up next. do you have a life insurance policy you no longer need? now you can sell your policy - even a term policy - for an immediate cash payment. call coventry direct to learn more. we thought we had planned carefully for our

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