dominates the 250 division. takes the point lead there. and it went down to the final lap in the 450 class. and cooper webb wins arlington again for ricky carmichael jason thomas wilkinson i'm jason weigandt. see you next weekend in daytona. >> good morning and welcome to our special coverage of the german election. live from berlin and stuttgart and here in london. these are your headlines. friedrich moritz is set to become germany's next chancellor as. >> the conservative union tops. >> sunday's federal election, while olaf. schulz's spd crashes to its worst defeat in over a century. >> thank you for the trust you've placed in us and in me personally. i'm aware of the responsibility. i'm also aware of the scale of the task that

now lies ahead of us. >> this is a bitter election result for the social democratic party. it is also very important for me to say that it is a result from which you must move forward together. >> the alternative for germany. >> takes second. >> place, doubling its. vote count. >> despite the. >> firewall in place. excluding coalition talks, their leader, alice weidel, is saying that the door is wide open. >> our hand will. >> always remain. >> outstretched for. >> participation in government to. >> implement the will of the. >> people, the. >> will of germany. >> we are ready to participate. >> in government. >> defense and. >> industrial stocks drive the dax. >> outperformance on hopes for. >> a stable government. >> this is as the. >> ceo of. >> a car. parts maker. >> tells cnbc, what. industry needs from the new government. >> germany's manufacturing sector requires some. urgent action. >> in terms of taxes. >> in terms of energy costs and

also in. >> terms of flexibility of the. >> labor market. there's a three big, big things that are important. >> for everyone. >> in the manufacturing sector now. >> weeks of coalition wrangling lie ahead, but with just five parties entering the bundestag, the path is clear towards a new grand coalition. coverage of the german election. before we get into the election results, i want to bring you some fresh ifo data. and this is interesting because it serves as a backdrop to characterize the economic picture that the new government is going to be faced with. so the german ifo current conditions index for february has committed 85. that is versus the expectation for 86.3. so even worse than the market had been expecting in terms of the expectations index, the more

forward looking piece of the ifo that came in at 85.4 in february, that was a touch better than the consensus, but still extremely low when it comes to the absolute level. so the new government in germany is going to have quite the task to help restore growth and bolster the hoped recovery. now, in terms of those elections, germany's christian democrats and their leader, friedrich merz, are poised to lead the country's next government after claiming victory in sunday's federal election. in terms of market reaction, the stoxx 600 has been floating around the flat line this morning. i think in addition to investors digesting the election results out of germany, they're also reacting to quite a negative end to the week on wall street. and we'll talk about that later in the show. but essentially a lot more concern now around the health of the us economy, the health of the us consumer and the inflation outlook there. so that potentially weighing on sentiment in terms of the german election, the headline for investors this morning is no

doubt around the likelihood of this grand coalition. that means a two party coalition, not a three party coalition, which, as we saw with olaf schulz's spd, was quite a difficult government to run in terms of getting policy over the line. so markets seem to be interpreting this as positive. and why do i say that? we'll take a look at the dax. we're seeing outperformance in the german market this morning relative to the other europeans. so the xetra dax up 7/10 of a percent. while we've got a pullback in the french and italian markets. footsie 100 trading about nine basis points higher. but clearly the outperformer has been germany. and it's not just today. this is pretty telling that after the positive run the german market has had, we're continuing to see gains this morning. let's break it down and look at the individual movers, the top names in germany this morning. you've got the defensive names continuing to do well also utilities rwa up. they're up 2.2%. but it is ryan mattel once again outperforming up more than 4% on hopes that we will see more defense spending out of

germany. now on the downside the laggards this is also interesting. we've got siemens energy the worst performer in the german market this morning. it's down 4.3%. investors may be considering now what a government without the greens may mean for green energy policy and what the merits government a merits led government will mean for energy in germany more broadly. merits has so far suggested that he's going to take a pretty pragmatic view when it comes to energy, and prioritize what germany realistically needs from energy now, and that may be a negative for some of the green energies out there wind and solar, and potentially a negative for siemens energy. fortunately for us, we're going to be speaking to the chairman of siemens energy later in the program. so we'll speak to him about what this potential new government might mean for that company. now let's dive into the results and talk coalition building. the latest results put the cdu, csu, union parties on just under 29% of the vote. that's according to germany's election body. chancellor olaf schulz. social democrats slumped to third

place, picking up just over 16%, the party's worst result since 1887. the far right afd came in second place, taking more than 20%, the party's best result ever in a general election and double their tally from 2021. as germany's christian democrats celebrated the election result in berlin, the chancellor in waiting, friedrich merz, pledged to form a new government as quickly as possible. >> the. >> nicht auf uns. >> the world out there isn't waiting for us and it isn't waiting for long, drawn out coalition talks and negotiations. we must now become capable of acting quickly again, so that we can do the right thing domestically, so that we're present in europe again, so that the world sees germany is reliably governed again. and that's what the union stands for. that's what we stand for. and that's also what i personally stand for. >> the mood was very different across town at the spd's headquarters, the current chancellor, olaf scholz, urged

the party to remain united following its worst defeat in well over a century. >> this is. >> an this is. >> a bitter election result for the social democratic party. it is also an electoral defeat. >> i think, that. >> needs to be made clear at the outset in view of the result. and it is also very important for me to say that it is a result from which we must move forward together. >> and at the afd's berlin election, party leader alice weidel claimed the far right has now confirmed its place among the mainstream, even as all other parties refuse to cooperate with them. she said the afd will be ready to help govern if called upon. >> to adopt. >> we have doubled. >> our votes. >> they wanted to cut them in half. the opposite has happened and i must say one thing our hand will always remain outstretched for participation in government to implement the will of the. >> people, the. will of germany. >> we are ready to participate. >> in government. >> let's get out to anita, who's on the ground for us in berlin.

anita, very good morning to you. i'm sure you've been really busy over the last 12 hours or so. let's talk coalition building. it seems like at this stage, the most likely coalition is a grand one between the cdu and the spd. and now, despite the spd's poor performance, they could actually come up as the kingmaker. here. talk to us about what the cdu may have to give the spd all of schulz's party to get them to team up and lead this grand coalition. >> that's a good. >> question, and i have to say, that's the only possibility to form a government right now. if you look at the results of. the parties, because. >> the afd. >> is, of course, not an option to form a coalition with, and the greens are to weak. so to have the combination of the cdu and the spd, as again is the only combination. and of course the cdu has to give something away. is it the finance

ministry? most likely the defense ministry, also most likely because both incumbents are quite popular and also are quite popular with the electorate, but also with the business, the business side of things. but to talk coalition building and also the next steps and what it all means as well for very influential industry, the insurance industry. i'm john asmussen, who is the ceo of the for the industry association here in berlin. thank you very much for joining. would you say probably this so-called grand coalition is the only option? what do you think will be the next steps? >> yeah, some. >> people say. >> it's a small. coalition finally. but i think the cdu is the clear winner of the election and its leader, friedrich merz, is very likely to become the next chancellor. and now it's up. >> to him. >> to form a government. and if you look at the center of the

german politics, there's only one viable coalition. this is christian democrats with the social democrats. they have a small majority in parliament. i would expect this week only informal talks to take place because. >> we have. >> regional election in hamburg next sunday. and this informal coalition talks will then, at a certain point, formalize it's the aim of friedrich merz to have a government in place in the third week of april. this is ambitious but doable, and i think for the business community it would be very good if we have a government that is able to act relatively quickly. >> it's funny that you call that ambitious because international investors and also my colleagues actually ask me, why does it take so long in germany to actually get their act together to form a government? >> because in. >> our political system. traditionally you have coalition governments. so a government that is run by more than one party. and so we can be in. >> a. >> certain way, be happy that you. >> only have.

>> two or if you count the csu independently, you have three parties to form a government. if you would have needed another coalition partner, it would have taken probably until the summer break. >> so the afd came in second. we just talked about it, a doubling their vote count. you're representing roughly 1.9 trillion us dollar euro in assets. so do you already see them voting with their feet, so to say? >> no, i. >> wouldn't say no. >> the program. >> of the afd is clearly anti-business. i mean, they want to leave the euro area. if you look at the program, they want to leave. >> the european. >> union, the common market. i mean, this is for the german business sector, which is heavily export oriented, is not a step forward. what we need, clearly. >> is a. >> revamp of the german economic business model. we are losing competitiveness for more than a decade now. >> and i think. >> besides defense and. >> security, this is one of the biggest issues that the next. >> government has to deal with. >> but how can they do that? and

how likely is it that friedrich merz can push through an ambitious reform agenda? >> i think. >> it's. >> clearly needed, and i would sense that the center of the german politics, the christian democrats and the social democrats, can agree here. i mean, everybody knows that we need to cut red tape reporting requirements, for example, on sustainability reporting. the last corporate tax reform was in 2008. that is quite some time ago. so we need to bring down corporate. >> taxes to international. >> competitive levels. we have to become more digital. we have an over heavily focused on data protection. so i think there are things that need to be done and that have a high likelihood to be done. >> but cutting corporate taxes is something the spd would naturally be close to. so what is the present? the present to the social democrats? is it more

support for low income? what do you think? i mean, we can't have everything that's true. there will be. >> give and take in coalition agreements. >> there is. >> indeed limited fiscal space. and one has to bear in mind that we have the famous debt brake, and one would need a two thirds majority in the german parliament to change this. and currently the afd and the left party have a blocking vote here. they have more than one third of the seats. so if the government wants to change the debt brake, they have at least to deal with one of the two. >> very likely the. >> left part. but fiscal space is limited, so that will be probably the key question because we need more money, especially for defense, but also for investment domestically in all kinds of infrastructure. >> yeah, but if i listen to you, that tells me that we probably will stay on quite a high level of social subsidies in order to

get the reform of the debt brake, because if you want to win over the left, you need to have this. is that a fair summary? >> that cannot be totally excluded? but first, they need to form a coalition between the christian democrats. >> and. >> the social democrats. then they have to count how much money they have. and then if they need to change the debt brake, especially for defense, they need to talk with the with. >> the other parties, the. >> greens and one additional party. they need to get this done. >> well, this election is like done now, but i'm sure your investors or your industry or association members do look beyond the four year time horizon because they put their money into play on longer term projects. so how attractive is germany? >> i think germany is an attractive place to invest. we need to improve because the. business model that we had over the last decades is clearly gone. so we were exporting goods

very much to china. it were traditional manufacturing chemicals, cars. so we have to make a jump to the next level of, of the economy, more digital, more services. but i think this is possible. so overall we look positive as a germany, as a place to invest. >> when it comes to renewable. there's also a question mark now with this election result, but probably the focus will shift away from green topics to others. so do you think also the money will flow? no. much not not so much more into renewable energy projects. >> i mean. >> what we will do. >> is finance the transition. that's the digital transition as well as the green. >> transition. >> because there is a significant trend into renewables. and i think this will globally, in europe, in germany, not go away because we all know it was not very much debated. the topic of climate change in the current election

debate. but climate change will not go away. so we have to deal with it. what has to go is, let's say, reporting requirements that we don't really need to make a real green transition, but the issue itself stays. >> asmussen, thank you very much for your time and your insight. so guys, with that back over to you. i guess the key topics for the upcoming government might be in next to migration defense. also, as we were just speaking about the big green transition, because obviously energy supply is key to the manufacturing space. >> and that's brilliant. thanks for bringing us that interview. we will have more from berlin this hour. we'll be hearing from a greens member of the bundestag, omid nouripour, that's coming up at 930 gmt. and remember, you can follow all the latest reaction to the german election here and online@cnbc.com. coming up on the show, germany prepares for coalition wrangling as likely next, chancellor friedrich

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>> com get invested! >> join the club. >> as a woman, i wanted to experience financial independence and become financially independent in my retirement. >> join the club last day for new member savings go to cnbc.com. join now. terms and restrictions apply. >> welcome back to the program. germany's christian democrats and their leader, friedrich merz, are poised to lead the country's next government after claiming victory in sunday's federal election. the latest results with the cdu, csu union parties on just under 29% of the vote, according to germany's election body. so what do the results mean for the makeup of germany's next government? well, since the free democrats in bfw parties fell short of that 5% threshold needed to enter the bundestag, those seats will be divided up among the bigger parties. this means that a so-called grand coalition of the cdu, csu and the spd will be

enough to achieve a majority. this is what i was talking to anita about. the question now is what will cdu have to give up to get spd to agree to this grand coalition? anita said on the table could be the defense ministry as well as the finance ministry, so could have some pretty big implications for policy on those two fronts. now, speaking to cnbc earlier, lars feld, a former advisor to christian lindner, said german industry needs to see a bigger overhaul than simply reforming the debt brake. >> we need to have reforms not only regarding the regulation of the german economy. >> we also. >> need reforms in labor market and. >> social policies. in particular. >> the pension system. >> we need reforms regarding the tax system. and in particular. >> energy is much, much too expensive. >> and when you look at what the social democrats are standing. >> for. >> you cannot expect any reform regarding. >> the labor. >> market or the pension system or social policy overall. perhaps a little bit regarding

the. we, the this basic welfare system, that we have a little bit of that, but not. more than this will be feasible. the only thing that i hope for in a coalition of the christian democrats and the social democrats, is a larger reform of. >> the energy market. >> and i hope that this is going to. >> be. >> well, quickly enough and deeply enough in order to create a better cost situation for the germany, the german firms. >> let's get out to carolyn, who is standing by in stuttgart for us. carolyn. good morning. talk to us about what business leaders and union leaders have been saying in reaction to the election result. the reaction, good morning. >> to you, juliana. >> is very clear. >> there's an. >> urgent need for reforms and urgent. need to cut red tape bureaucracy. >> and to. >> move fast. >> because everyone knows we do not have a lot of time in our hands. for example. >> the association. >> of business.

>> entrepreneurs said this. >> morning if there is. >> no. >> credible reform from the new government. the de-industrialization. and the loss of businesses to the rest of the world, the so-called the sale. of germany. that will. >> only quicken. >> but of course, i'm here in stuttgart. >> this is the capital. >> of one. >> of. >> the most prosperous. >> states in germany. >> of baden-württemberg. >> and of course, it's the home of the car industry. porsche? of course. mercedes here. but this. >> morning we got a chance to take a look behind the scenes. >> and talk to one of. >> the most. >> important auto. suppliers here in stuttgart. >> we spoke to. >> the ceo en france, and. >> he told us the challenges. >> and the. >> mission for the. >> new government. >> is. >> very clear. >> germany's manufacturing sector requires some. urgent action in terms of taxes, in terms of energy costs, and also in terms of. flexibility of the labor market. there's a three big, big things that are important for everyone in the manufacturing sector, for. >> the automotive. >> industry. >> of course, the regulation is

a top issue. and we believe that in the essence of de fossilization, it's really important to open up all leverages, including, of course, better electrical vehicles, but also clean combustion engines, including hybrids for 2035. and it's really important that we make this decision right now, because over the next 12 to 24 months, many companies will have to make decisions on the long term nature of their. production footprint and also the success of the fossilization. so for us, it's now really time to stay by his word and become a stronger voice in brussels, because all these decisions are made in brussels. >> so, juliana. excessive co2 regulation. of course. >> that's not the only headache. for the car industry. >> but of course. >> also potential tariffs coming. from trump. >> and very few. >> of these. auto suppliers

actually have a fully functioning. >> supply chain. >> within the united states. >> of course, they're also gettt of optimism from the ceos, but also from the politicians here in terms ofar industry and the o suppliers could potentially help here from the. >> technological and fm. >> the know-how side. so that's the big hope here that this could be a rescue, not just the state of baden-württemberg in this industrial heartland, but to all of gerny. >> well, carolyn, you know, it's interestingistening to those comments and the comments of some election. there's so much focus on red tape within germany, high labor costs, high energy costs within germany, regulation within germany. but it's important to remember, and you made this point earlier this morning that germany is still an export oriented economy. so to what extent is all is that all

that's needed to restart the german economy? all these things that are domestically focused versus what's happening outside of germany? >> giuliani, you make an excellent point here. and obviously it's a combination of all of the above. we need stronger export. >> markets. >> but we know that chinese demand hasn't been as strong as in the past. and germany. >> very much has been. >> spoiled by that. >> there's overcapacity when it comes to, for example, the chinese car industry and the german companies. >> are very much. >> struggling with that. the us is a difficult one given the forthcoming tariffs. so i think they're fighting battles on many, many fronts here. but what is clear, coming back to the car industry, which has been the engine of growth, and of course that has been sputtering. it is very clear that the losses have been intense. this sector has lost around 50,000 jobs since 2019. many of the industrial businesses, and not just the listed one, but the family owned

ones, they've been moving overseas. they've been moving to other parts of europe just because the labor costs and the energy costs are simply too high. so we need to see change in germany, not just tinkering around the edges. >> carolyn, great overview. thank you for shedding insight onto what's happening on the corporate side of things this morning. for more on what to expect as coalition talks get underway, head to cnbc.com. ukrainian president volodymyr zelenskyy says he is willing to step down in exchange for peace in ukraine or the country's membership to nato. speaking at a press conference in kyiv over the weekend, zelenskyy said he did not intend to stay in power for decades. his comments come amid a wider public dispute with us president donald trump, who called zelensky a dictator last week. in response, the ukrainian president said he intended to hold elections after the end of the martial law in the country, adding he was focused on the opinion of the ukrainian people. zelenskyy also touched on the subject of us aid, telling

reporters he did not want to recognize grants as future debts. >> if we're forced and we can't do without it, then we should probably go for it. but i have a logical question and no one can answer it for me. when the united states of america sells weapons to israel, qatar, saudi arabia, the uae, do they earn 100% interest? everything's fine. i just want to dialog with president trump. and it seems to me that i'm right in wanting dialog. i'm not signing something that will be paid off by ten generations of ukrainians. >> european defense ministers will reportedly hold an emergency meeting today to discuss support for ukraine. that's according to bloomberg, which cited sources familiar with the matter. it comes as the bloc tries to come up with new defense plans, amid fears that the us could stop its military and financial support for ukraine. now today marks the third anniversary of russia's invasion of ukraine. coming up on the show, we will be hearing from a greens member of the bundestag, omid nouripour. that's coming up next. stay with us.

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industries. >> find out who has made this year's list. >> meet the new. icons. the cnbc changemakers reveal. today on squawk box. >> welcome to our special coverage of the german election. live from berlin, stuttgart and here in london. these are your headlines. friedrich moritz is set to become germany's next chancellor as the conservative union tops sunday's federal election, while olaf schulz's spd crashes to its worst defeat in over a century. >> thank you for the trust you've placed in us and in me personally. i'm aware of the responsibility. i'm also aware of the scale of the task that now lies ahead of us. >> this is a bitter election result for the social democratic party. it is also very important for me to say that it is a result for which we must move forward together. >> alternative for germany takes

second place, doubling its vote count. despite the firewall excluding talks. coalition talks with the far right. their leader, alice weidel, is saying the door is wide open. >> our hand will always remain outstretched for. >> participation in. >> government to. >> implement the will of the. >> people. >> the. >> will of germany. >> we are ready. >> to participate. >> in government. >> defense and industrial stocks drive the dax outperformance on hopes of a stable government. the ceo of car parts maker told cnbc what he expects from the new government. >> germany's manufacturing sector requires some urgent action in terms of taxes, in terms of energy costs and also in terms of flexibility of the labor market. there's a three big, big things that are important for everyone in the manufacturing sector. >> weeks of coalition wrangling lie ahead, but with just five parties entering the bundestag, the path is clear towards a new

grand coalition. our top story this morning germany's christian democrats and their leader, friedrich merz, are poised to lead the country's next government after claiming victory in sunday's federal election. the latest results put the cdu, csu union parties on just under 29% of the vote, according to germany's election body. chancellor olaf scholz. social democrats slumped to third place, picking up just over 16%. that was the party's worst result since 1887. the far right afd came in second place, taking more than 20%. now that was the party's best ever result in a general election and double their tally from 2021. so really extraordinary performance from the afd. now, in terms of market reaction overall, the european market has now turned positive on the morning we started out on the back foot. we've been teetering around the flat line

and now we're pretty firmly in positive territory, up 2/10 of a percent. now this comes despite the heavy selling that we saw on wall street on friday. so it seems as though investors in europe are much more focused on what this election result might mean for europe. and there is a lot of hope that it may bring stability to the government in germany and more spending for the european union overall. in terms of individual markets, we've got the german market trading higher by about 8/10 of a percent. so leading the european market ftse 100 also trading higher by about 3/10 of a percent. we've got a little bit of red on the board for the cac40. now, in terms of the dax in particular, within the dax, we're seeing strong performance of the defense names and the auto sector as well. now in bond markets here's a look at where bonds are trading right now. you've got the two year round 2.09% out at the long end of the curve we're seeing a little bit of a push higher in yields. the 30 year trading around 2.7% or so. and the ten year just under the 2.5% mark. euro dollar this

morning has been an interesting trade. we initially saw the euro trading quite trading higher versus the dollar. right now we're holding on to those early gains around 15 basis points or so 104 74 is the level, but a lot to contend with on both sides of that trade. given everything that's gone on in the us and this whole rethinking of the us economy. after some weak macro data on friday, the university of michigan confidence survey. so just to bear that in mind, when we look at euro dollar this morning in terms of the elections following the first results on sunday evening, germany's party leaders came together for a televised roundtable discussion. there. mertens stressed he wanted to avoid forming another three way government, but once again ruled out any coalition with the far right afd. >> my focus will be on forming a government that will solve the problems facing this country. we don't know what this new federal government will look like at this time, but it's no secret that i would wish to work with just one coalition partner and

not two. i always said a coalition with the afd is out of the question. the afd voters knew this and voted for them regardless. but now we need to see how we can put together a possible coalition. >> germany's current chancellor, olaf scholz, said he will play no role in the negotiations for germany's next government, effectively paving the way for his successor at the head of the spd. >> if there are coalition talks. for example, between. >> the spd and the union. >> then i won't. >> be leading negotiations for the spd. as i said, i was campaigning for the office of the chancellor. it will always be a huge honor to have served as the german. >> federal republic's. >> ninth. >> chancellor, but. >> i won't be representing the spd in a government led by the cdu. >> speaking to anita on the sidelines of the cdu's election event on sunday evening, mep david mcallister said germany's main priority on the international stage is to forge a new defense strategy in the face of a less engaged united

states. >> we in the. >> european union. >> always strong. >> when we are united. and we need to form a united. >> position. how to deal with the new us administration. when it comes to our own security and defense. we have to do more. we have to. >> strengthen the european pillar within nato. >> it cannot be that 64% of nato spending is only paid by the americans, and 36% by the others. we will have to spend more, but we will have to spend this money more effectively. we need. >> to do more for. >> our own security and defense. and when it comes to trade, we are very keen in maintaining a close transatlantic trade partnership. but one thing is clear we will negotiate with the us side at eye level, especially when it comes to the tariffs. mr. front mr. trump is talking about. one last question will be the next chancellor. is that a given. yes. >> well i think he clearly has a mandate to form a new government. the cdu and csu are the clear winners of this election. there can be absolutely no doubt about it. and that's why, yes, friedrich

merz will be the next chancellor of germany, and he will be a very good chancellor because i know him for many years. we can absolutely trust this man and hopefully he can bring confidence back. he can restore confidence in germany. that is his main task and i wish him all the best for that. >> anita joins us now from berlin with a member of the greens. >> well, yes, indeed, thank you very much, juliana. and i'm indeed now joined by omid nouripour, who is the former head of the green party and still an mp at the frankfurt parliament. right. so thanks very much for joining. how did that election result go down with your party? what's the first assessment? >> we lost and we cannot be part of the opposition. >> for the next four years. >> and we'll try to. >> make some pressure. >> and. >> noise. and especially on climate. >> protection. >> which is. >> direly needed and which was not that. >> present in the last campaign we had.

>> yeah. i think for international investors, it's quite important to get an assessment of the situation surrounding the debt break. the institutional enshrined commitment not to commit to too much debt. would you, as a party, be open to for a reform? >> sure. >> the break is necessary. >> it's good. >> that we. >> have this, but we. >> have to reform it. >> we need. >> much more. >> investment. >> of course. >> also private but also public investment in this country. >> and this is. >> what we are endorsing and we are supporting. >> a reform and we will we are ready. >> to. >> talk and negotiate what kind. >> of reform. >> that should. >> should be. >> and what do you what what would you be? what would you be in favor of seeing as a reform of that debt break? so like purely dedicated for investment in infrastructure, or would you be a bit more open? >> we could. >> do more. >> and we should do more. i think the biggest package of investment. >> in the next 3 or.

>> 4 years is going to be defense. and also the. >> question of how we can. >> go on supporting ukraine. >> they are defending not only their. >> their soil but but europe. so these are. >> two of the options we could. >> write down on on. >> for, for the reform of a. >> debt break. but we are we're open. >> in the negotiations. >> will start hopefully soon. and we're going to see. >> the positions of the other parties. >> yeah. but do you think we'll the negotiations start to form a government? >> to be honest. >> they. >> have a clear majority. >> they are the blacks and. >> the. >> reds, social. >> democrats and. >> the conservatives. >> and i. >> hope that. >> they speed it up because. >> it's not only about germany, it's about europe. and germany is not the tiniest country in this continent. and the european union needs us and it needs stability. and therefore there is a new. there is a need for a new and stable government. >> we will support. >> as part of the opposition when it comes to. >> the to the need for.

>> measures strengthening. >> the european union. >> do you feel that all this coalition building aside the new trump administration, especially also after the appearance of jd vance in munich, is upping the pressure to find a united response? sort of. yeah, definitely. >> the trump. >> administration is. >> a huge. >> pressure for. >> more and more united europe. i was, to be honest, not. shocked of. his speech. >> i was shocked of. >> the reactions of a lot of european leaders being. shocked because he. >> didn't say. >> anything new. >> and we noticed. >> administration. >> and we know. >> that a. >> lot of things. they say we have to take seriously, but not literally. and we are seeing in all of these executive orders signed by by the us president, who will. >> not come. >> so it's about cooperation always with the americans, but it's also. about being sovereign

countries in europe. >> and this just. can be. >> a. >> united europe. >> it's more business or as we now call it, transactional politics. so what has europe to give to the states, in your view, or what do we have to give in order to get something back? >> we have. >> the most strong full single market in the world, which is integrated among 27 states. we have very close ties to the united kingdom, so we are more than 450 million people in one market with. standardized rules, and we are capable. we are, we are. we have wealth to defend. >> and we. >> have wealth to give. and trade without tariffs would be helpful. and a win win situation for both sides. >> so what is your key focus in for the next four years. as opposition party. >> we are we going to have a government of two parties. who did not. >> care for.

>> for climate protection in the past. and this issue is getting bigger and bigger. and the longer we wait. >> the higher. >> the cost. >> is going to be. so this, of course, is going to be the major issue for my party. but defense also supporting ukraine and fighting for our democracy and fighting back against those people who are trying to destroy our democracy abroad and inside the country. these are the major challenges we, we, we going to try to tackle with our measures. >> so you would also support bills who which would be in favor of these issues from a governing coalition? >> we did it. >> all the time. we we've been part of the coalition for 16 years. during the period of the chancellery of, of merkel, and in that time when it was necessary and it was tough enough when it came to the euro crisis, when it came to lehman brothers crisis, when it came to, to the pandemic, we

supported what we thought, which is needed. it's not about just being opposing, being opposer of anything the government is doing just because they are the government of the opposition. >> yeah. well, thank you very much, mr. roper. thank you. so it will be all about constructive opposition. i assume the next four years here in germany, provided that the cdu and the spd will will find common ground to form a coalition. but that's also the only possibility to have a stable government for germany for the next four years. >> anita, thank you for bringing us that interview. i thought your question around what europe can offer the us is a really pertinent one, given what the outlook looks like between the transatlantic group. so appreciate you bringing us that insight. just eat takeaway, meanwhile, has received a ■k74.1 billion offer from dutch tech investor process. the south african owned group has made an all share offer at just over ■k0 a share, sending its parent stock naspers lower in johannesburg process already has a near 30% stake in rival

delivery hero, with the group saying it hopes to create a european tech champion with the purchase of just eat. so that's an interesting one to watch. you can see there quite a reaction in just eat shares, and we've got a story on the website if you want to check out more. for more analysis on that takeover go to cnbc.com now. still ahead on this program we'll get more reaction from the corporate world with siemens energy board chairman joe kaeser. that conversation is coming up next. >> after glow cleaned our place for $19, we fired our old housekeeper. glow tackled everything from our kitchen to our bathroom, all our laundry. you just pick a date, pick a cleaner, and enjoy a spotless house for $19. >> when a cyber thief transfers the title of your home out of your name, it's a race against time to stop the theft of your hard earned equity.

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thoughtful living. luma. >> get invested. >> join the club. >> the value you're. >> going to get from making better investments more than outweighs whatever the cost of the membership is. >> join the club last day for new member savings, go to cnbc.com. now. terms and restrictions apply. >> welcome back. u.s. equity markets sank on friday, with the dow notching its worst day of the year so far, and its worst week since october. the nasdaq led declines, though, down more than 2% for the session. this as

services pmi data came in under the 50 point threshold that separates expansion from contraction, with companies citing uncertainty around the trump administration's policy blitz. now, the difference is stark. in the space of a month, the us has gone from the world's fastest growing major developed economy to the on the cusp of stalling, expanding less than japan and the uk in february. we also got some weak university of michigan confidence data. long term inflation expectations there rose to the highest level in almost three decades. so there that has caused some alarm bells in terms of the inflation outlook. and pair that with some weak walmart earnings earlier in the week. some weak retail sales data. investors are rethinking the strength of the us economy and the impact of potentially higher inflation on the back of president trump's policies. so quite a difficult session for us equities on friday. and in terms of us futures here's what we're looking at now to start out the week. we're looking at a rebound. so the dow jones looking to add back more than

300 points. the nasdaq looking to add back about 100 points in the s&p. also looking at a stronger start in terms of the week ahead. mark your calendars for wednesday. we've got nvidia earnings that could be a major driver of the market narrative as well. we've got us core cpi, core pce, i should say, and another confidence reading this time from the us conference board. now germany's christian democrats and their leader friedrich merz, are poised to lead the country's next government after claiming victory in sunday's federal election. us president donald trump said germany's election results showed the country is, quote, tired of the no common sense agenda. in a post on truth social, trump said the election marked a great day for germany and the united states. french president emmanuel macron said they are more determined than ever for both nations to do great things together. ukrainian president volodymyr zelensky congratulated meretz and his party, noting how important their victory is for europe, and

said continuing their joint work can bring real peace closer to ukraine. the president of the european council, antonio costa, said that he looks forward to working together with merits, to quote, make europe stronger, more prosperous and more autonomous. let's welcome joe kaeser to the program, chairman of the supervisory board at siemens energy. sir, thank you so much for being with us. very keen to get your take on what this election result means for germany. at this point, it looks like if friedrich merz wants his grand coalition, it's going to have to be with spd. if so, what does that mean for corporate germany? >> well, it's been an interesting. >> sunday, obviously. >> seems that there will be a likely coalition between the christian democrats and the social democrats, which is a challenge on its own because i believe europe or germany needs the biggest reforms in the social area, which obviously the

social democrats are determining that to be their domain. so we'll see how it goes. it's an uphill battle, but we do need structural reforms. it is a new beginning. it's a big opportunity. but the jury is still out. >> if we do see this grand coalition come together, it would mean the greens would become the opposition. siemens energy shares are under pressure today. i wonder to what extent that is investors taking the view that this german government may be deprioritizing green energy. what is your take? what is the future of the energy situation look like? if we do get this two party coalition? >> well. >> i mean, first of all, germany does need a long term energy agenda. they haven't had that for a while. it was going back and forth and back and forth. a lot of good talks, but very little action. so i did see the slump in the in the shares this morning north of 300% in the

last 52 weeks. so if people are taking profit now and wait and see how things, you know, be straightened out in germany, i wouldn't be too concerned. i think i think merits should he become chancellor, together with the social democrats, as i said, which is still a quite an uphill battle. i would have rather seen the green party because they are much more liberal in the, in the, the whole matter of social welfare and all that kind of stuff. so i think america needs an agenda 2030, a long term agenda 2030 very clearly lays out how it's going, how germany is going to be restructured. it is a restructuring case. we need to be honest about this one. and i would call out five points. the first two points, the economy and the new way of working. second would be infrastructure and energy. the third one basically would be education and innovation. germany's lifeblood depends on innovation, that's all. we have

no natural resources, no nothing. it's all the what we have between our two ears. and that is about innovation. fourth would be the whole matter of restructuring the pension scheme, which is inevitable. and then last but not least, regaining government control and the government reforms. people in germany are wondering, is our country safe? and they are wondering whether the government and the institution have everything under control. that's been one of the main reasons why so many people were looking towards this afd, because they are wondering whether our government, our state, our country is still in control. it's not so much the migration per se. it is about the control. and lack of control is one of the worst things you can have entering society. so that's how i would do it if that was my company. 55. program 2030, i

would call out a 500 billion program. so this is what we are going to invest into germany 3.0. >> well, mr. kaeser, i hope that friedrich mertz is watching this program, not just because it would be great to have him listen to those five key points. i'm sure from your perspective. you talk about safety being really key to germans right now, and that being one of the key reasons why people have migrated to support the afd. right now, we are sitting in a geopolitical landscape where the us and europe are moving further and further apart. and meretz has said he wants germany to become more independent of the united states. he says that the us administration doesn't care about the fate of europe. is this a good thing for germany? >> well, first of all, i would take a deep breath and see where we are. germany. and by the way, all of europe is going to be lost in terms of security and

defense. if the united states were to pull back. it's a fact, whether you like it or not. and we would have had our chances. you know, the last several years to change that. and we didn't and we didn't. so now we are stuck basically with with the dependency on the united states. not saying it's good or bad. all i'm saying is this is the fact. and i do believe also given, let's say, the developments in the united states, that europe needs to get its act together also in terms of defense and security. and the challenge is that this europe 27 has the european union has actually failed to become a political power when it when it got started 50 years ago, it was an economic union without doing the taxes and everything was good. then they figured out, oh, the volatility of currency is not a

good thing. so they invented the euro was also not too bad. but then the transformation from the phase two to phase three becoming a political union has totally failed. and that needs structural reform. and i'm wondering where maybe chancellor merkel is going to visit first. traditionally it has been france. i would not be too surprised if it went to poland. >> what? >> so let's see how it goes. >> let me just jump in here. we're up against the clock. you have said before that the trump administration was really constructive to deal with. from a company perspective, if you've got one piece of advice or one thing you'd like the german government to adopt from the trump administration, what would it be? >> create a vision where the people of germany can follow and get energized that it's worthwhile creating the future together. >> so we will have to leave the conversation there. really appreciate your perspective. joe

kaeser, chairman of the supervisory board, siemens energy. now, european markets have been moving higher this morning in reaction to the german election result. the xetra dax now up 9/10 of a percent. we're seeing strong demand for defense names as well as the auto sector in germany, amid hopes that a grand coalition between the cdu and the spd will be good for german business and may lead to a reform of that debt brake. u.s. futures positive the dow jones, looking to reclaim about 300 points after that massive sell off we saw on friday. that is it for our special program. i'm julianna tatelbaum. worldwide exchange is up next. >> they are. trying to shut. down this legal loophole. >> to get. >> 100mg generic viagra. or 20mg. generic cialis, delivered to your door. for just $0.87 in

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