>> the point on everything. >> he makes it easy for someone like me to understand how to invest my money properly. >> i've always thought he's an honest broker, somebody that you could really trust. and i thought i would be able to get more insights from joining the club. >> get invested, join the club today. go to cnbc.com, slash join jim. >> president trump ups the ante in his global trade war. he says he'll introduce new 25% tariffs on all steel and aluminum imports into the u.s. as soon as today. and just maybe global reciprocal tariffs later this week. china's retaliatory tariffs on key u.s. exports take effect as beijing reportedly weighs, targeting more major u.s. technology. companies. and. lawmakers and investors remain laser focused on elon musk, his department of government efficiency and the mounting legal challenges in the way of his mission. this is monday,

february 10th, 2025, and you're watching worldwide exchange on cnbc. >> good morning. >> and thank. >> you for being with. >> us on this monday post-super bowl. i'm contessa brewer. >> in for frank. >> holland who. >> of course loves the eagles. before we get to this morning's breaking. >> trade war news a quick. >> check on the us stock futures. major averages. >> coming off. >> a negative week. but right now you're seeing them across the. board s&p 500 indicated to open higher by 25 points. the dow jones by 145 or so and the nasdaq by 138. let's get a check on the bond market now with president trump hinting he could start taking a closer. look at this particular area. he was speaking on air force one yesterday. and you can see that the yield on the two year is 4.285. going higher. and the ten year 4.489%.

>> also a. >> big week for data with cpi at wednesday and two days of powell testimony on capitol hill and two great measures of volatility in gold right now. we're seeing trading at an all time high. gold has hit $2,929. that's up about a percent and a half. we're also watching bitcoin which remains just below that $100,000 threshold at 97,633. but it's up 1.3%. and of course, our big story this morning, president trump raising the stakes in his global trade war, possibly forcing u.s. consumers to foot the bill. nbc's alice barr has the latest now from washington. >> contessa in one example of the courts intervening in the trump agenda, there is a federal hearing today about the mass buyouts offered to federal workers. labor unions are

requesting to fully block the program. >> president trump. >> returning to washington overnight after becoming the first sitting president to attend a super bowl, making news before he stepped in the stadium with a new tariff announcement on imported steel and aluminum. >> any steel coming. >> into the united. >> states is going. >> to have a 25%. >> tariff, and promising more tariffs are coming on countries that tax american exports. the growing list poised to potentially drive up costs for american consumers while in a taped super bowl pre-show interview, the president defended elon musk's cost cutting moves to slash federal agencies. >> bottom line, you. >> say you trust him. >> trust elon? >> oh. >> he's not gaining anything. >> in fact, i. >> wonder how he can devote the. >> time to it. he's so. >> into. >> it, indicating the departments of education and defense are next in the crosshairs and pushing back against judges who have

temporarily blocked some of musk's department of government efficiency actions and access. >> i disagree. with it 100%. >> i think it's crazy and we. >> have to solve. >> the. >> efficiency problem. >> as vice president j.d. vance wrote, judges aren't allowed to control the executive's legitimate power, all adding to democrats alarm about the separation of powers. >> we are at a point. where we are basically on the cusp of a constitutional crisis, seeing this administration taking steps that are so clearly illegal. >> with democrats unwilling to cosign the trump administration's moves, a bipartisan government funding bill is in peril. building toward a potential government shutdown next month. and in another announcement, president trump said he's instructed the treasury secretary to stop producing pennies because they cost more to mint than they're worth. saying he'll rip waste out of the federal government a penny at a time. contessa. >> it's not the first time that we've heard that proposal about

the pennies, and it seems fairly trivial given everything else that has happened, because we've seen from other. countries around the world that they've gotten rid of their small change, and it hasn't really had an effect. the 25% tariffs on steel and aluminum, though, immediately, what i think of here is the rebuilding efforts not only in los angeles following the wildfires, but following hurricanes helene and milton. there is a massive amount of housing stock that needs to be repaired or replaced. right now, when you're on capitol hill. >> is that. >> top of mind for lawmakers when they're wondering how to go about either pushing back against trump or supporting his trade war plans? >> it's a really good point, contessa. and we've heard president trump express a little bit of reticence about going in strongly to los angeles and the rebuilding effort there. he's talked about potentially pairing that with some other things that he wants to see out of california, out of the legislature there. but as far as

hurricane helene and north carolina and georgia, the areas that are hard hit there, he's been very forward about saying he wants to get assistance there a lot faster. so this, i think, falls into the category of lawmakers on capitol hill trying to pick their battles and figure out when they want to go in hard against something the president is doing and when they want to maybe save their political capital. overall, there has been concern from both parties about the effects that tariffs could have on american consumers. and we're expecting more details today. and we'll see what the response is. >> and something i'll be following. because of course if rebuilding costs go up, that will affect the insurers whose businesses i follow so closely. alice, great to see you this monday morning. thank you. global investors on edge following trump's latest trade war escalation. giuliana teitelbaum in london now with european reaction. jp ong standing by in singapore with the asia trade. giuliana, let's kick it off with you. >> contessa. good morning. well, european markets as a whole have

been fairly resilient to the news of these new tariffs from the trump administration. the european equity market overall trading higher. this morning we are coming off of quite a strong run. bear that in mind. seven positive weeks in a row for the main benchmark the stoxx 600. so you can see here all the major bourses in europe are modestly higher. this morning. we are watching the steelmakers closely though. the european commission has said this morning that the tariffs would be, quote, unlawful and economically counterproductive, adding it will aim to protect the interests of european businesses. so continuing to say that they will respond to the trump administration. we don't know what that response will look like at this stage. you've got thyssenkrupp, the steel maker, trading around the flat line this morning. arcelormittal down 2.6%. norsk hydro down about 6/10 of a percent and salzgitter down 8/10 of a percent. so we are seeing some selling outsized selling in these steelmakers and the broader basic resources space in europe. overall, though fairly resilient given the threat that

looms on the horizon. contessa. all right. >> giuliana, thank you very much for that. have a great day. to asia now. and jp and jp. what are you seeing? >> well. >> contessa. >> whenever you. >> hear news about tariffs and trade tensions. >> it doesn't. >> paint a pretty. >> picture for asian. >> markets, which. started off this. >> new. >> trading week on the back foot. >> you can. >> see most. >> major indices. >> closing in the red and the. >> nikkei 225. barely closing. >> flat to. >> slightly in. >> the upside. >> as you mentioned. >> the. >> steelmakers in asia. >> also in focus because. >> of. >> that plan. >> to impose those 25%. >> tariffs on steel and aluminum imports. >> to the united states, the likes of nippon steel. >> who did. >> also refuse to. comment on news that president. >> trump is not a fan of their plan to. >> acquire us steel. well. >> their shares. >> were also a bit. >> under pressure in today's session. >> korean steelmakers. >> such as. >> such as posco. >> holdings and hyundai steel. >> also under. >> pressure in. >> today's. >> session, also. >> losing ground. but not. >> everyone was suffered. >> actually, keep. >> in mind that. bluescope steel steelmaker. >> in australia, they. >> actually operate. >> a. >> steel mill. >> just. >> about 30. >> 30 minutes.

>> outside of toledo, ohio. and they are seen. >> as. having these u.s. operations that might help. >> them escape the wrath of. >> possible trade. >> tariffs on. >> steel imports. but could. >> actually oppose. >> on an. >> uptick in. >> demand from that steel mill. >> if that does. >> happen, one. >> set of markets that did actually benefit. >> in. >> today's session were greater chinese stocks. >> and. >> that's because there is. >> hope that there might be. >> more stimulus. >> coming down the pipeline. but also take a look at some of these semiconductor stocks listed in hong kong, such as huarong semiconductor and smic. >> both of these. >> stocks are actually up more than 20% since. >> the end. >> of january, when the news. >> of deep. >> sea and. their ai model rattled markets and really. >> questioned american. >> exceptionalism in tech in the tech space. actually boosted. >> ai stocks and the. tech sector. >> in hong kong, and thus also one of those sectors to watch that might actually. >> give a. >> bit of a booster for chinese stocks and chinese markets in general in the first quarter of this year. >> back to you and. >> good morning. >> you might think that the tariff news on steel and aluminum would affect, like nippon steel even further. when you're listening to asian media, is it largely seen that this is

a negotiating tactic rather than a firm and fast rule for the way things are going to be in 2025? >> well, i think the hope. >> is. >> that this is. >> indeed. the salvo or the initiation of a possible negotiation between president trump and the trump administration and the and those hopes. but again, there's still a lot of uncertainty as to whether or not this might scupper this plan by nippon steel to acquire us steel. one thing that might actually be a bit be seen as a bit of an upside to is that if it is taken off the off the off the table, and if it does result in an equity investment by nippon steel rather than an outright takeover, it might mean that that a lot of this capital that might be devoted to acquiring us steel might, might, might, might, might not be wasted, at least on this particular acquisition, and thus might actually be seen as a bit of an upside for nippon steel. but again, there's too much actually uncertainty to read to, to try and at least read through with regards to this. and again, there is only hopes that this might actually just be the start of a negotiation, rather than an outright refusal of nippon

steel's possible acquisition or planned acquisition of us steel contessa. >> jp, thank you very much for the update there from singapore. the tariff news could be front and center on the agenda this week, including january cpi and two days of fed chair jay powell testifying on capitol hill. joining me now, janet mui, who's the head of market analyst analysis at rbc brewin dolphin. janet, good to talk to you right now. first of all, on air force one, the president said that he's looking into treasuries right now. he said there could be a problem. you've been reading about that with treasuries. and interesting problem. it could be. a lot of those things don't count. it's not really clear whether he's talking about our debt or payments that are processed through the treasury department right now, but heading into the fed chairman's testimony on capitol hill, how likely is that to occupy top of mind concerns for investors? >> good morning. >> thanks for having me. i think in general, investors will

remain concerned on the debt sustainability situation. >> and the huge debt. >> deficit situation in the us. >> so i guess. >> you know. the term premium. >> could still face. >> upside pressure. >> as a result. and generally we believe that us treasury yields are likely to be trading in a range in the near term because i think investors on one hand, you know, it proves that in recent weeks, when the market sentiment weakened, actually investors go back to bonds. so there is a, you know, a hedging purpose there for bonds. but at the same time, you know, there's inflation risk and there's this debt concern risk that will push up the term premium. so i guess, you know, it is very hard to say, but i. presume we're going to be in. a trading range for now. and if we hit about 5% again, that could put downside pressure on equities. >> and a hedging. we're seeing the hedging risk showing up in gold as well hitting new highs. what about in europe. do you see that there's more opportunity for rate cuts in europe than what might be factored in in the united states?

>> yeah, i think absolutely. well, i'm sitting in the uk and we just got a rate cut last week, and i believe that uk data is likely to see. further weakness. and, you know, the bank would have to focus more on supporting growth versus worrying about inflation. i think, you know, the base case is gradual rate cuts about one one cut per quarter. but there is certainly potential for, you know, faster rate cuts if the data gets worse. and i think for european central bank the consensus is a couple more rate cuts. whereas our view is that the us you know, potentially could be 1 to 2 rate cuts by the end of the year, but entirely feasible. we don't see any rate cuts in the us at all. so you get this, you know, extended monetary policy divergence, which for us we would favor for example, uk gilt versus us treasuries. >> and equities. >> well equities i think generally global equities should perform better than bonds. and

in particular we prefer we still prefer us equities. i think the case for equities versus bond is because general economic growth is still positive in the us. and i think that's very important. that implies corporate profits should continue to grind higher us equities. i think, you know in a trade war scenario i think us equities are still likely to perform better given it is more domestic focused. and also, you know, the country that has a higher trade deficit is likely to lose less relatively speaking. and i think us equities are still likely to be regarded as defensive. so you know proper profit outlook is still looking better in us versus europe and the other regions for instance. so i would say we would still prefer us equities. but again, given, you know, the risk we have with trade and valuations and the sentiment at the moment, i think we are not going to get more bullish from here. >> well, today it looks like at

least heading into the open we're heading higher janet. thank you. appreciate your time on this monday. a lot more to come on worldwide exchange including much more on president trump's new trade war threats and the growing list of legal headaches for elon musk's department of government efficiency. former chief of staff to vice president mike pence, marc short joins me to weigh in. plus, beijing raises the stakes in its tit for tat with the white house. one sector could get hit hardest. first, global policymakers, ceos and scientists descending on paris this week for a major two day summit focused on ai and our. arjun kharpal got an invite as well. hi, arjun. >> hi, contessa. >> look, world leaders and ceos are descending on paris for the ai action summit. what are they talking about here on the talking about here on the ground? i'll tell you (vo 1) when you really philosophize about it, there's one thing you don't have enough of, and that's time. time is a truly scarce commodity.

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shop, now with code tr20. >> for 20% off. >> terms apply. >> political leaders, ceos and scientists from around the globe are in paris for a two day i summit. president trump not attending, but still, there's plenty of discussion about whether the u.s. can find common ground with other countries on ai safety. cnbc senior technology correspondent arjun kharpal joins us from paris. beyonce i knew there in paris. so, arjun, talk to me about the ai chatter on the floor. >> well, contessa, look, i think a big part is what you alluded to there is about geopolitical competition and cooperation. us

vice president jd vance has landed in paris. chinese delegation is expected to be here. and of course, french president emmanuel macron said there's going to be a lot of talk about how these countries can work together at the same time, while there's continued tension in the realm of technology between the us and china, with europe somewhat caught in the middle, so you're going to hear a lot of noise from the europeans trying to talk up their companies already. president macron has announced a more than ■k7100 billion investment into ai in france as well, something that he sees as being able to match stargate project that was announced in the us. the other big theme here the name on everyone's lips deep sea. of course, this rattled markets. now everyone trying to figure out what this means for the future of ai are the established players like openai and anthropic under threat? well, i had a chance to catch up with victor, who's the ceo of synthesia, an ai video generation tool, and asked him for his take on deep sea. let's listen in. >> i think that sort of challenges the investment case may be for openai, like current

valuations, but i still think that when you look. >> at users. >> of these technologies, all. >> the workflows. >> i think when we look back in three months time, i think 0.01%. >> of those. >> is going to. >> be moved to deep sea. >> from openai. >> while there was concern, there's now a view, actually, that this is not going to be as disruptive as many had thought. there's still a lot of questions, actually, the dominance we've seen from the likes of openai, anthropic and other us firms may continue, but it has obviously raised questions about compute power, about whether there may be more disruptions in the ai market to come. and i think the general view here is, yes, this is a rapidly evolving market, and you can expect some more developments on ai. i'll be having a lot more conversations on the ground over the next few days, hoping to get some more answers to these questions for now. contessa, back to you. >> arjun, i asked the super bowl players whether nvidia is on its way up or on its way out. the people that you're interacting with may have much stronger views on that. are you hearing much about it? >> with nvidia? >> the view very much still is that this is the gold standard

when it comes to training of these massive ai models. and the one of the interesting things we heard through all the tech earnings season and conversations here is that whilst deep seek proved, you can be more efficient, actually, if models are getting more efficient, the ai technology is going to be used more widespread and therefore in theory, this should boost compute power or the requirements for compute power and therefore will continue to rely on these infrastructure players like nvidia. that seems to be the view at the moment. and of course nvidia, while its chips have been key for all the training now, it's the application of ai, the chatgpt of the world, some of the business uses as well. and that's going to require chips that are designed for inferencing. this is another area that nvidia has been very strong in and is moving into very quickly. and so it feels at this point in time, nvidia is still very much a dominant player in the chip space, in the ai chip space in particular. contessa. >> arjun kharpal there in paris, thank you very much. still on deck. hours since lifting the

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>> it was a stunning eagles win over the kansas city chiefs 40 to 22. and on the heels of that win, we're getting a big picture. look at the betting for the super bowl from geocomply. 14% growth in active player accounts over the weekend from last year's big game, and more than 724,000 new online betting accounts. just before halftime of the super bowl, and right after the eagles scored their third touchdown of the game, geocomply recorded a peak of 14,300 geolocation transactions per second before the game. caesars says a bettor at the sportsbook in new orleans made a quarter million dollar bet on the chiefs to cover minus one, though eagles wagers slightly outweighed chiefs wagers before kickoff. and then, caesars said given the way that all of this

unfolded, it had its biggest in-game handle or the amount wagered ever for the super bowl. it was increasing because of that lopsided score, 24 to 0 at halftime as bettors just piled in gambling on a chiefs comeback. sports fans are engaging in live in-game betting more than ever before, and genius sports, which is the official data provider for the nfl, also provides the game on bet vision, where players can watch and bet right on their screen. the ceo told me the way people consume the game is going to change dramatically in the next three years. >> ultimately. >> what i'm get excited about is when we can personalize the feed for you and what your interests. >> are. >> so, you know, whether it's highlights or live games, we will make the experience unique to you. and that's what genius. that's where the artificial intelligence, all the stuff that's genius is able to do in the sports. >> world would be applicable. >> fanduel spokesman chris jones told me nearly 2 million fans

made a pick on the kick of destiny, and more than half picked eli manning. of course, they won ten bucks each in bonus bets. meanwhile, fanduel ceo amy howe told me friday on squawk box she wanted to see more enforcement against offshore, unregulated sportsbooks and fantasy plus operators that offer play. that looks an awful lot like sports betting. later that day, the illinois attorney general sent out a consumer alert about the risks of unlicensed betting apps and sites and said he sent cease and desist letters to bovada, which is an offshore gaming platform, and prize picks, which is fantasy. geocomply says in states where this kind of enforcement action is happening, growth in new accounts for the sportsbooks is twice as high as in states where unlicensed play is generally ignored. the other big highlight of the super bowl, of course, the commercials companies shelling out as much as $8 million for a spot during the big game to get their products in front of the millions of people watching. for more, let's bring in david droga, who's the ceo of

accenture song, the creative group had two ads that aired during last night's games. you had bosch and you had chatgpt openai. what's the return on those investments? david. >> first of all, good morning. thank you for having me. i think it's, you know, there's so many different ways to measure it. it still remains the biggest stage for brands and advertisers in the world. and i think there's the sort of the definitely the impact, immediate impact. but they're trying to capture the nation's zeitgeist. so i think you don't just measure it in clicks and shares, you also you measure it in, you know, very much. the growth for each brand. and you take they're such very different brands. those two openai chatgpt, again, it was their first time sort of into the public forum. and i think it's such a vast growth rate for them. but it's really, you know, everybody wants to introduce themselves and everybody some people want to get platforms. >> and get products. >> out there, and other people want to sort of win people over. i think at the end of the day,

they have to participate, and it's much more than just that. 30s i think people measure it in thinking it's just 30s it's far more than that because there's so much chatter pre and afterwards. but again, you know, the public speaks and you'll see the ramifications as the weeks follow. >> other than your than your own ads, were there any that stood out to you as being especially effective. >> well it's you know, i think. >> the rules. >> of the super bowl, they've taken on sort of somewhat of a celebrities arms race. you know, obviously humor is one of the big players there and it plays well to the masses. but i think some of the ones that i, you know, apart from the ones that we worked on, i was taken by a lot of the simpler ones, the more human ones, as opposed to sort of razzle dazzle ones. some of the ones for pixel i liked, you know, i thought that was very good. i thought dove was very strong, the one with the simple messages about, you know, young girls participating in sports and self-awareness and self, you know, body images. so again, i think that those that buck the system a little bit, i felt stood out more. i mean, again, the one we did for chatgpt, we deliberately made it

very, very simple and calm because we're sort of talking about something seismic, you know, the beginning of the intelligence age. we didn't want to sort of participate in the slapstick nature of that. but again, that's not to say the slapstick doesn't go down very well with the audiences. >> i mean, martha stewart out there dancing was pretty hysterical. and so you can see the i mean, you can see the ways that i might be possible to push forward the, you know, the advertising opportunities. but it's clear that chatgpt and openai is something that's more and more going to be here. david droga, thank you. coming up, two stocks on the move this morning. we'll tell you why we're keeping an eye on bp and meta platforms. one worldwide exchange returns. >> home where routine meets remarkable with unexpected moments of inspiration around every corner and through every window. quiet mornings in the

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(clock ticking) (clock ticking) wait. (♪♪) ledcom. >> we'll also be announcing. >> steel. >> tariffs on monday. >> tomorrow? >> on monday? yeah. tomorrow. >> we will. >> go. >> on. everybody. steel. any steel. >> coming into the united. >> states is going to have a 25% tariff on aluminum to. >> president trump aboard air force one revealing new tariff plans focused on steel and aluminum. that move marks the latest by the president as he ratchets up his trade war against adversaries and allies. welcome back to worldwide

exchange. on this monday morning, i'm contessa brewer, filling in for frank collins who's likely out still celebrating that eagles win. we'll have much more on the busy weekend of policy moves by the president, with former chief of staff to vice president mike pence, marc short, who will be joining me shortly. first, let's kick this half hour off with a check of u.s. stock futures, major averages coming off the negative week, but shaping up to open in the green this morning. the s&p 500 implied to open by 25 points. the dow jones industrials by 135 and the nasdaq up by almost 150. two great measures of volatility. we're watching gold which is now trading at an all time high. it looks like we're up 1.3% to $2,925. and bitcoin, which remains below that $100,000 threshold at 97,845. but up 1.5% to washington now. and that busy weekend for president trump. you just heard he plans to impose

25% tariffs on all imports of steel and aluminum into the united states as soon as today. and of course, that raises the bar on the trade war. the president also revealed he would likely make a formal announcement tomorrow or wednesday about reciprocal tariffs on, quote, every country, with those duties likely going into effect almost immediately. let's bring in marc short, former chief of staff, to former vice president mike pence, also a cnbc contributor. marc, it's great to talk to you this morning. first of all, how literally do you take the president? >> good morning contessa. >> i actually. >> take him literally. i think. >> that markets have had a tendency to sort of discount. >> a lot of. >> these threats. >> and i think that watching. >> what happened. >> with. >> mexico and canada. >> a couple of weeks ago was. >> on again and. >> off again, reinforces the notion for many observers that this is kind of bluster. and he does. >> this. >> to get negotiations. but i really. >> got. >> to say, i think that there's a different set of advisors around. >> the president. >> at this.

>> time in the. first administration. >> there are a lot of economic. >> advisors and. >> national security. >> advisors who. >> really advocated for the benefit of trade. >> with allies. >> and this. >> time around, there's. >> a far more protectionist. >> mentality in this. white house. and so. >> i anticipate. >> that there's. >> going to be a continued. series of tariffs. >> that come on. >> steel and. >> aluminum, but. >> also additional. tariffs as he's threatened on reciprocity. >> and also on europe coming down the path. >> when it when it comes to steel and aluminum and steel is often the topic of trade wars. it's something that americans, because of our long history and industry in steel, feel very strongly about. is it a safe bet for the president? and how do you think the other countries that supply us with steel and aluminum, which are so necessary in housing, like i mentioned earlier today, we're very focused on the rebuilding efforts post wildfires in california, post hurricanes and florida and north carolina and

georgia. it makes those rebuilding costs skyrocket. >> yeah it does. i think. it it hurts. >> economically significantly. i think. >> there's the president has used this before because. >> of a national. >> security perspective to say that that steel is. instrumental to. >> our production of a lot. >> of our defense products. but at the same time. i think that there's no. >> doubt it has. >> an economic consequence. >> i was. >> encouraged last. >> week. >> though, to see the president. >> change the. >> position he had during the campaign regarding nippon steel. and so i think that was a dramatic piece of news that in all the news that's being flooded was kind of. was kind of lost. because if. >> we're really. >> going to try to confront china, it's. important that we partner with our allies like japan. and instead, if we're basically blocking japan, investing in in u.s. steel, then all we're doing is benefiting china. >> so i. >> think that that was one big policy difference that i think runs counter to where the. >> president is. >> on these steel tariffs. but i think to get back to your question, there's no doubt that

it has significant economic consequences for the american consumer. >> okay. so we have just started on the headlines coming out of washington, d.c. over the weekend. mark, stay with us. we're going to return to that in a minute. but coming up on worldwide exchange, we have more on president trump as he and elon musk look to ramp up their war on government spending. the key area of the markets, key area of the markets, president trump says could be ♪♪ well would you look at that? jerry, you've got to see this. i've seen it. trust me, after 15 walks, it gets a little old. ugh. i really should be retired by now. wish i'd invested when i had the chance... to the moon! unbelievable. stop waiting. start investing. e*trade ® from morgan stanley. ♪♪

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>> while business headlines this morning focused on president trump and the ongoing war on government waste. he spoke yesterday on air force one and revealed his administration is looking at a key part of the market's. >> we're even. >> looking at treasuries. >> there could be a problem. you've been reading about that with treasuries. and that could be an interesting problem because it could be that a lot of those. >> things don't count. >> in other. >> words, that some. >> of that stuff. >> that. we're finding. >> is very fraudulent. >> therefore. >> maybe we. >> have. >> less debt than we thought of. think of that. >> not really clear whether the president is talking about debt or payments from treasury. but the president also revealed he's directed elon musk and his team to focus on spending at the defense and education departments. and musk has lashed out at a federal judge over an order temporarily restricting doge from accessing the treasury department's payment systems and

data and saying that the judge needs to be impeached. vice president vance is siding with elon musk. he declared that judges aren't allowed to control the executive's legitimate power. marc short is still with us. are you concerned about how much access elon musk has to government? >> well. >> i don't i don't think. that he. >> probably should have access to. >> private individual. records that. >> have been. >> suggested at treasury. >> having said. >> that, i think the democrats paint themselves into a tough corner because the president in. many cases, for americans, the heartland was elected to fix the border and tackle the bloated bureaucracy. and when elon musk is used as somebody who people view as a successful businessman, going and finding waste and fraud, and democrats oppose it, well, they're going to be defending programs like giving foreign aid to syria and tourism projects in lebanon and trans theater in guatemala. and i think that really puts politically the president on the advantage, if that's what democrats are looking to fight. >> but ultimately.

>> contessa. i really think this is going to kind of reach a peak in about a month. on march. >> 14th. >> the government runs out of funding, and. republicans need democrat votes to keep funding going. and i think the democrats will fight to say, if you. >> want our. >> support for government funding, we're going to we're going to make a fight over this and say, we want these dollars restored. and so that's where i see the political battle coming. >> you know, it's so interesting because there's so much that democrats could focus on that it seems to be a scattershot approach. another headline coming out about this, the cfpb, the consumer financial protection bureau, curtailing the activities. no new investigations, don't close investigations. i mean, the list of what not to do is longer, i think, than the list to do. you have better markets saying, look, the cfpb has forced financial firms to return almost $20 billion to nearly 200 million. they say ripped off americans. what's bad news for consumers may be really good

news for banks. >> yeah. contestants. >> exactly right. people forget. >> that cfpb was the brainchild of elizabeth warren. she's the one who created this department. and i think for many free market advocates, they've always viewed this as an onerous investigation in many cases to banks. and so i think for many conservatives and republicans, they're excited to see this administration taking on cfpb. and so i think that again, it puts democrats, i think, in an awkward position, if they're looking to fight against what many republicans view as an overarching out of control federal bureaucracy. >> marc short, it's good to see you on this monday morning. appreciate your time today. the one word every investor has to hear today coming up. and the stock pick every investor needs to know. plus china reportedly looking further to target american tech as the trade standoff between beijing and washington intensifies. we'll be right back on worldwide exchange.

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potentially with apple. joining me now with more is shehzad kazi, managing director at the china beige book. it's good to see you. look, when it comes to these tit for tat tariffs, we've already heard from the german foreign minister this morning that it's taking very seriously trump's promise of more tariffs on steel and aluminum and perhaps global reciprocal tariffs. give me the take about how seriously china is taking it. >> yeah. look i think china is taking the tariff threat. very seriously, which is why i think what they're trying to do is see if they can offer the president some kind of deal on tiktok, which is why anything that they're doing in retaliation right now is really very symbolic. these are not things that are actually going to hurt the american economy or hurt american companies as yet. >> what about combating fentanyl? how big of a role does that play in appeasing what trump is trying to accomplish with tariffs? >> yeah, i think they are hoping beijing is hoping that they can again, make a series of pledges that are going to forestall.

>> this larger. onslaught of. >> tariffs, which would otherwise come crashing down on them. the real question is, will the president take. pledges and how soon will he want to evaluate them? because so far, the record on chinese cooperation there has been less than stellar. >> meanwhile, the impact on foreign steel makers has been, you know, lower. but the stock's sort of meh. when you're looking at chinese stocks overall, it looks like there's been a lot of enthusiasm. maybe some on the consumer about chinese stimulus, but maybe some about hopes that deep seek and other chinese companies can not only compete but potentially win. >> yeah. look, deep seek is. absolutely driving. i think a lot of the positivity that you're getting the bounce in chinese stocks. the other one, of course, is also what's happened over the course of the lunar new year. you know, january data out of china beige book showed that the travel sector was looking good. hospitality was actually seeing a pretty significant bounce this, this last month. so i think some of that is driving a

lot of the positivity right now as well. >> do you think that there's anything about sentiment the chinese versus united states sentiment that drives consumer demand for u.s. products lower? >> oh. >> there's no question about the fact that chinese consumers are incredibly nationalist, not just against the us, but whether it's japan or australia or whatever. so that will continue to be a driving factor. there's a reason why american companies or foreign companies writ large tend to be struggling and overall slowing. context in china. >> president trump last week told said to reporters that he's not in any rush to speak with chinese president xi jinping to deescalate the situation. is that a meeting that needs to happen? >> that call eventually will have to happen. the real question is what are they going to actually discuss? if the president has an overarching agenda of reorienting our trade relationship with china, this one phone call is not going to mean anything. >> shahrzad, it's great of you to join us. thank you. coming up, the tech company riding fresh momentum. our next guest says is a must buy that stock up

nearly 12% in just the last week. we'll reveal it next. and we'll be right back. >> 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. >> the portfolios of the. >> future 7 million us businesses rely on tiktok to compete. within a week of posting, i had over $25,000 in sales. i don't have a million dollars to put towards marketing and branding. tiktok was the way and it saved my company. we had a video do really good this week. sales were up 29%. about 80% of my business right now is from tiktok. small businesses thrive on tiktok. tiktok brings in so much

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>> amazing and is something. >> that we get to use every day. >> cnbc exclusive take-two interactive ceo's first interview, post earnings, the state of gaming and growth outlook. plus breaking earnings news from mcdonald's. reaction and analysis. squawk box today, 6 a.m. eastern. cnbc support black heritage month when you join the sharks and shop. the tank. >> is here to stay. >> scan the code. shop the tank. tomorrow, nine eastern. cnbc. last chance to be on the disruptor 50 list. is your startup disrupting the status quo? scan this code or go to cnbc.com. slash disruptors to apply now. entries closing soon. >> seven minutes before 6 a.m. in new york city, and a check on a few corporate stories that we're tracking this morning. meta platforms reportedly is

planning to carry out company wide layoffs as soon as today, with those affected receiving notice as early as 5 a.m. local time in most countries. it comes as shares of meta look to extend their record breaking 15 session win streak. it's the longest ever for any magnificent seven name, according to the dow jones shares, up almost a percent. elliott investment management has reportedly built a significant stake in uk oil giant bp looking to boost shareholder value through transformation. the report adds that elliott believes bp is significantly undervalued. those shares are up 6.3%, and the head of google's deepmind speaks in paris over the weekend, saying deep seeks ai model is probably the best work coming out of china, adding that its ai models show deep seek has the potential to change things on a geopolitical scale. taiwan semiconductor says its first quarter sales likely will come in at the low end of its forecast range. they say that

there have been several production disrupting earthquakes last month. tsmc through, though, is maintaining its full year outlook. taiwan semi up a little more than half a percent. now the us markets coming off a negative week with all three major averages in the red and the dow breaking a three week winning streak. tariffs. inflation the fed. earnings. they could all be driving factors for investors this week. although futures all in the green right now. let's bring in drew pettit. us equity strategist at citi. it looks like we're shaping up for an open. is this just opportunistic buying. >> honestly i. >> think we're just. >> getting through just a revolving door of risk. and look. >> while the tariff. >> announcements really to us aren't good, fundamentally we haven't really got to the point where we're talking about broad tariffs and we're still not talking about broad tariffs as it comes to congress working it into a reconciliation bill. so yeah. >> look. >> it's a modestly. >> positive open. >> but we still have. >> a.

>> lot of risks. >> and we keep working through kind of a new story almost every day is what it feels like. >> okay. so it looks like mag seven is slightly underperforming. but you're pointing out that equal weighted growth stocks in the nasdaq are leading value. >> yeah i. >> think this is. >> really, really. >> interesting because. >> everyone who's been preaching value, value. value feels. >> like they're taking a victory lap to start. >> the year. because when you look. >> at the cap weighted style. >> indexes, value is really outperforming growth. but on. >> an equal weighted basis, you. >> actually have. growth stocks. beating value. you have the equal weighted nasdaq beating the. s&p 500. equal weight and. >> even small cap. >> so it's funny like for as much as we want to talk about it's the end of growth really. it's just the broadening of the growth trade. and a lot of those stories are still working. >> your word of the day is also your your trade of the day. >> well. >> i would say, yeah. growth is.

>> the. >> word of the day because there's a. couple of things. one, growth is still working for investors. yeah i just highlighted some key points. but on top of that it's the value companies where growth is inflecting that's driving the story. so as much as we want to talk about valuation, we want to talk about risks are really great. cure all to that is to have really good growth and to have really good fundamentals. >> okay. >> and uber which you're picking uber as your trade which you're kind of you're kind of preaching to the choir here because there's no sell ratings on uber. >> yeah it's funny. i'm not worried about consensus here. >> i'm thinking. >> about market pricing. and when we think about a lot of the growth stocks, there's actually not much of a margin of fundamental safety. but uber, while it's up a lot in the last couple of days, is coming off a pretty bad session after it reported actually good results. it's a stock that really hasn't. >> moved. >> over the past year. and even

though the top line growth is decelerating, you see a ton of operating leverage in the platform. as ebitda expands and ebitda margins are set to expand not just this year, but into next year as well. so again, growth story with some fundamental margin of safety and expanding margins ahead, we think uber is a really good trade for the growth side of your portfolio. >> well, and there you can see the shares moving in the early morning trade up more than 2%. so setting up for some really positive movement throughout the day. drew pettit, it's good of you to join us on this monday morning. thank you. >> yeah. thanks, contessa. >> here's what to watch in the week ahead. several pieces of economic data will be coming in, including cpi and ppi. meanwhile, fed chair jay powell heads to capitol hill. he'll be testifying before senate and house committees. and the earnings season rolls on. we've got results coming in. mcdonald's, softbank, coca-cola, doordash, robinhood and airbnb

not featured. you see wynn resorts on there. i'll be paying close attention to that. and draftkings also reports at the end of the week. so squawk box. oh wait. before we get there, let's check on futures. they're green up across the board. here we go. and squawk box starts right now. >> good morning. president trump expected to announce more tariffs this. >> time aimed. at steel imports. >> while china taking its own action. while elon musk. >> is lashing out. >> at judge. >> blocked access. >> by his. >> doge team. >> to the treasury payment. >> system and fly. eagles fly. that's what you hear from. >> the fans. >> eagles fly. really? is it a song? >> yeah. >> philadelphia eagles blow. >> out the. >> kansas city chiefs. it's monday, february 10th. 2025 and. >> squawk box begins right now.

>> good morning everybody. >> 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 joe kernan. and andrew ross sorkin. >> we're back at home downstairs. >> we are back. >> in the studio. >> back in beautiful. >> times square. >> times square. times square. >> nothing much happening, snowy so far. snowy. >> times square a little bit. no elmo sightings yet. although i. >> saw him. >> on a commercial. >> i did too. that was a great commercial, actually. >> was he on? >> it was. he was. >> talking to. >> roger federer. >> roger federer. roger federer. >> which was. >> very clever. >> because on doesn't. >> look like. >> on it looks. >> like he's right. >> he's like cq or qc. >> qc. qc. >> yeah it does. he's right. >> this morning the things. >> are looking up for. >> the markets. you're going to see some green a