gismile. it was infectious. if she was smiling, everybody else had to, you know, you had to. anita lockamy: yes. >> good morning. >> and. >> welcome to street signs. >> i'm julianna tatelbaum, and these. >> are your headlines. >> automakers lead. >> european stocks. >> lower as. >> president trump hits. >> the. >> eu with a fresh tariff threat. >> and lashes. >> out against. >> the bloc. >> the european union was formed in order to screw the united states. that's the purpose of it. and they've done a good job of it. but now i'm president. >> european chip. >> stocks move. >> lower after nvidia's. >> guidance disappoints some of the street's more lofty

expectations. speaking to cnbc, ceo jensen. huang brushes off. concerns around low cost models. >> ppe. it was fantastic. it was fantastic because it opened sourced the reasoning model. that's absolutely world class. >> rolls royce shares surge. >> as the company. >> raises its midterm guidance. >> and. >> offers its first dividend. >> in five years. >> cfo helen. >> mccabe says there is still work to do to strengthen production. the supply. >> chain has been. >> challenging and. >> we do expect it. >> to remain. >> that way for 12 to 18 months. >> as you say, it's industry wide. >> yeah, it's not specific to rolls-royce. and it's particularly around spare parts. >> availability and income grows faster than expected in 2024, boosted by. >> its tradeweb platform. >> ceo david schwimmer tells. >> cnbc he's optimistic. >> about the. ipo outlook. >> the pipeline is looking significantly better and we've had some ipos in the tail end of last year. i expect to see more

coming this year. and again, the broader markets in terms of the follow on capital raises, have been very successful. >> let's get straight to our top story this morning. president trump says the. >> us is. >> planning a 25% tariff targeting. >> quote, cars. >> and all other things from the european union. speaking to reporters at his first cabinet meeting, trump said an announcement would be made soon but did not provide further details. the european commission said it would react firmly and immediately to unjustified trade barriers, but trump dismissed the bloc's. ability to retaliate. >> all countries, frankly all different. but european union has been. it was formed in order to screw the united states. i mean, look, let's be honest. the european union was formed in order to screw the united states. that's the purpose of it. and they've done a good job of it. but now i'm president. >> what will happen if these countries. >> or the eu retaliate?

>> they can't. i mean, they can try, but they can't. >> pretty sharp words there from the us president. let's take a look at european autos which are having a tough day this morning in part in reaction to that new tariff threat, 25% potentially on european cars and other goods. you're seeing volkswagen shares down by about 2.5%. bmw down nearly three. stellantis down two and a third. ferrari the outsized loser this morning down more than 7%. but a little bit of an idiosyncratic story weighing on that stock in particular. we're also seeing this weigh on broader sentiment in europe. so it's not just the auto names. the stoxx 600 down 6/10 of a percent. so it seems as though this concern has spread beyond the auto sector. and taken a little bit of the shine off the run we've seen in european markets lately. as for the regions, take a look at the breakdown. what we're seeing in europe you've got a red across the board. so no region has been spared. but it is the xetra dax down more than 1% underperforming alongside that

italian market. so it just shows that the weight of the sell off is in the auto space this morning. having said that, i think it's worth taking a step back and looking at the performance of european stocks versus us stocks year to date. while president trump has been ramping up his rhetoric against the eu. the european stock market has just been moving from strength to strength. the stoxx 600 up nearly 10% year to date, the s&p 500 up just about 1% year to date. now, part of that is because we've seen this massive run up in defense names in europe as investors price in the prospect of more defense spending. another element there is what's been happening with the magnificent seven. you can see there the mag seven down nearly 5% year to date. we're in correction territory. actually, when you look at performance since december, the mag seven down more than 10% from december. so a little bit of the divergence is down to the outperformance of some of these names in europe. and some of it is due to a resetting of the investment case around some of

these big tech stocks. i just think that's important context. when we look at the pullback in europe today to see how far we've come. now the tech sector is sharply in focus today after nvidia gave the market yet another top and bottom line earnings beat last night. but will its numbers be enough to spur the mammoth market in moves investors have come to expect? the stock is lower in extended trade off gains of more than 3.6% before the bell, after record revenue came in at a record $39.3 billion, and earnings came in at $0.89 a share. but it's the forward guidance that will dominate investors attention. the firm expects revenues of around $43 billion in the first quarter. that's more than $1 billion higher than estimates, but around 5 billion below what some analysts had predicted. now, that figure also only represents a 65% boost on the year versus a more than 260% jump in the first quarter of 2024. that's those are the kind of numbers you get when we're talking about astronomical growth like this. if accurate, that would be the

latest in a series of slowing revenue growth figures. now, it's not just revenue growth that's losing momentum. developing its flagship blackwell chip could eat into nvidia's margins over the next few months. the company said it expects its first quarter margin to come in at 71%. that is lower than analysts had penciled in, and down from 73% this quarter. however, cfo colette kress told investors on the call that she expects that figure to return to the mid 70s later in the year as the company builds out its blackwell infrastructure. ceo jensen huang says demand for the technology is amazing, coming in at $11 billion for the quarter, with the firm expecting a significant ramp for sales this quarter. >> feelings about blackwell is better today than it was last quarter, and the reason for that is because we, of course, ramped up into production. we exceeded our target, and the teams did an amazing job. as you recall, we

had a hiccup in our design flaw in blackwell that we found early on last quarter or quarter before that, and we recovered tremendously well, and i'm very proud of the team for that. and so for those reasons, i feel pretty great from an execution perspective. >> huang also gave his thoughts on the impact of deep six ai development. >> deep six was fantastic. it was fantastic because it open sourced the reasoning model. that's absolutely world class. just about every ai developer in the world today has either incorporated r1 using. it's called distillation, distilled from r1, or using techniques that have been open sourced out of r1 so that their models could be a lot more capable. across the world. ai has become better as a result of the last several months. >> here's a. >> look for you at the european chipmakers. we are seeing a pullback this morning. semi down more than 3%. infineon down one

and a half b semiconductor down about two. and asml down as well by about 8/10 of a percent. investors not only contending with these nvidia earnings last night but also the latest out of president trump and concerns on the on the trade war front. let's bring in ben barringer, equity analyst at quilter cheviot. ben, thanks for joining us. great to have you on. once again. you spoke to arjun and i a couple of weeks back or maybe a couple of months now. but ben, i'm keen to hear your take on the commentary around blackwell. this was one of the key questions coming into nvidia's results, how this transition to blackwell would look. and you listen to jensen huang and he just sounds so upbeat once again. but break it down for us. what can we actually read into the numbers? >> yeah. look you. >> always get some. >> some quite hyperbolic. >> terms from jensen. >> he described blackwell demand. as amazing. >> it was. >> better than people. >> had expected. >> so they did $11 billion from blackwell. consensus was for 8 or 9, something like that. the issue is that actually the.

>> revenue number was only 1. >> billion better than people had been expected at the total level. so that probably implies that hopper revenue, the older product is less than people have been expecting. >> you know. >> you're transitioning from hopper, the. >> old product. >> to blackwell, the new product. >> and so. >> that is the first issue. blackwell demand was very, very good. >> but then new. >> products from nvidia and most other chip companies are at lower gross margins as they ramp scale. and they really. >> get, you. >> know, utilization within the fabs and. learning margins improve as you. >> basically ramp scale. >> so the. blackwell being. >> bigger basically means that there's a dilution in the margin. and so margins come down. they were trending at sort of 75. they've gone down to 73 and then down to a 71 this this next quarter they are going to collect it on the call. they're going to trend back towards 75 as it hits scale. so i don't think it's anything to be too

concerned about. but semi stocks often trade on gross margin movements right. gross margins go up. stock goes up. gross margins come down. stock goes down. so blackwell has been particularly difficult as a as a product because they're improving not just the chips but also there's a huge amount of network options. there's also cooling options. and these are very much rack scale systems. so there's a lot of complexity to the blackwell ramp that hopefully won't happen with blackwell ultra and probably won't happen with rubin either. >> ben, given the importance of gross margin, do you believe those forecasts? can we expect margins to trend back towards 75% over the medium term? how should we think about the longer term margin trajectory? >> yeah. and look, i. >> do think that assuming that they can get that product product to scale, you know, it's a little bit different because it's not just one product. it's multiple skus if you will. so margins might be a little bit

diluted. but you know collect has a long history of guiding reasonably conservatively. and we've got no reason to not believe that 75 shouldn't be a decent margin going forward. and then blackwell ultra maybe you know they've got experience with blackwell. they can they can also start to improve margins on that basis as well. but yeah this is quite normal for new product ramps for nvidia. but this is a particularly complicated ramp. >> ben one of the other big focus points heading into these results was around data center demand from the hyperscalers. and just a few days ago, td cowen published a note that seemed to really rattle the market, saying that microsoft had begun canceling leases for us data center capacity. what confidence did or not did you get from jensen huang around demand from these hyperscalers? >> yeah. >> look. >> so. >> blackwell's been introduced by all the large hyperscalers, including microsoft azure. look

that those leasing comments that cowan had were, you know, for a couple of hundred megawatts of capacity to contextualize that in microsoft's got over two gigawatts, 2000mw of capacity. and they're all these hyperscalers are constantly changing their sort of plans in terms, you know, nuancing their plans. there's the comments from the company are that there were no there's no change to the overall strategy. maybe you could speculate that because microsoft isn't going to be involved as much in the training to do with stargate, maybe that means that they are, you know, slightly flexing and changing the way that their footprint. but overall, you know, jensen was still very confident, both in demand from cloud service providers, but also from enterprises as well. no, he didn't actually talk too much about sovereign ai, which has been a trend in the past. but yeah, look, he remains confident in the cloud service providers demands. and also from as you said in your opening, you know, the extensions of the scaling laws, particularly around

reasoning. one final point, the issue though, for nvidia, i think is very important, is that cloud capex growth is slowing, right. in 2024, cloud capex growth was about 24%. this year, it's going to be about 33% next year. the consensus is for around 9%, something like that. and so, you know nvidia's revenues are going to slow with that slowing capex growth. still very large numbers. but but slowing growth. >> what's going to be the next catalyst for nvidia now that we've got earnings out of the way. >> yeah. look so this this is very much gtc. that's on the 17th 18th of march classically actually over the last three years certainly nvidia has has risen and been strong into gtc. the average is about 8% over the last three years of outperformance. what jensen's going to talk about at gtc is obviously the new products. blackwell, ultra, rubin, maybe even the product that comes after rubin. very interestingly,

i think that there's a session at gtc on china ai. so they're going to, you know, have companies like bytedance, alibaba, baidu and so forth. and so that's a big going to be has been a big focus for the market. because china revenues have come down from 30% to 14%. then they're obviously going to talk about a lot more about what they talked about at ces. you know, agentic ai salesforce's numbers last night, you know, emphasizing agentic ai, physical ai, that's ai understanding the real the real world. and then, of course, robotics as well. so gtc is probably more of a catalyst than these numbers themselves. >> ben, super useful preview. i'm going to have to store this away and come back in in march as we head into that march 17th 18th period. ben, really appreciate your thoughts. ben barringer, equity research analyst at quilter cheviot you can find more on nvidia's results on the cnbc website. for now, we're going to take a break. coming up, a key european defense name surges on an outlook upgrade. we'll reveal which stock is on the move after which stock is on the move after the break. (vo) if you're only maxing out a 401k,

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talk. >> to them every day. >> it's more entertaining than any other morning show. >> but. >> you might get some useful information. >> squawk box weekday mornings, 6 a.m. eastern. cnbc. >> some stocks were keeping an eye on this morning. autos are down on president trump's tariff comments, but ferrari has hit a red light this morning after it announced it will buy back shares valued at more than $300 million from investment company exor, which is selling down its stake in the firm. stock down about 7.7%, ocado is continuing its downward trajectory after it posted improved profitability but still lost almost 375 million pounds before tax in 2024, down about 15% as ocado and wpp is trading at the bottom of the stoxx 600, with shares lining up their worst day since 1992 after posting a bigger than expected decline in full year revenue and flagging that it expects revenue to be flat at

best this half. that stock, down nearly 20%. rolls royce, meanwhile, has upgraded its mid-term forecast amid improving performance across the business. the engine maker posted a 55% rise in full year profit and announced a 1 billion pound share buyback, and shares are being rewarded for it. that stock, up 14.5%. cfo helen mccabe gave her outlook on the global supply chain. >> the supply. >> chain has. >> been challenging and we do expect it to remain. >> that way for 12. >> to 18 months. as you say, it's industry wide. yeah. it's not specific to rolls-royce and it's particularly around spare parts availability, particularly in casting and forging. yeah. and what's driving that? we came out of covid, there was a skill shortage. volumes were picking up. it was difficult. >> to get the parts. >> some companies weren't so financially strong coming out of covid. that was compounded by, you know, volatility and

interest rates, geopolitics, getting access to some of the materials after, you know, sanctions with russia, the war in ukraine. so that added stress to the supply chain. >> now if you were with us before the break, we flagged that mystery chart. well there you go. that was it. rolls-royce shares are up nearly 15% this morning. year to date, that stock is up nearly 30%. lseg posted full year total income, narrowly ahead of expectations supported by the performance of its tradeweb business. the exchange and data company said it expects annual income to grow between 6.5 and 7.5% in the coming year. ceo david schwimmer discussed the firm's expansion into data analytics and clearing. >> we feel very good about the transformation, and lseg has turned into one of the world's leading both financial market infrastructure but also data providers, information service providers. and the business is doing very, very well. we have seen on a global basis a pretty

subdued environment for ipos. yeah. and that's been in new york, that's been in london, that's been in hong kong, etc. so that's gotten a lot of attention. if you look at the capital raising that has taken place on the london stock exchange, not necessarily ipos, but follow ons, that market is doing very, very well. and there's more capital raised on the london stock exchange than the next three european exchanges combined. >> defense electronics maker hensoldt order intake jumped 28% for the year, with the company benefiting from rising orders across europe. the german firm forecast 2025 revenue of up to ■k72.6 billion, in line with estimates. you can see there the stock up slightly this morning, but for the last year it's up 50%. so it's really traveled quite a ways. speaking earlier to cnbc, cfo christian ladurner urged europe to boost its defense spending. >> this clearly changed when we look two weeks ago in the munich security conference. the signals from the us were more than

clear. so please do the europeans. the germans, take care for your own security. and you have seen now that the first discussion start now ramping up defense budgets. so from my point of view, we need to be sustainable at least 2% getting to 3 to 3.5% defense spending for national gdp. and europe will be under an enormous pressure. so on the one hand, the us, on the other hand, russia, who produces in three months more defense material than the whole nato together. so the pressure will be rising in the next weeks in europe. and now it's really the hour of europe to respond to that. >> so hensoldt shares at 50% in the last year. it's not just hensoldt, though. we've seen a massive run up in all of the defense names in europe. there's a look over the last month. you've got us up 23% to rank up 23%. ryan mattel up strongly ba systems as well. so it really has been a sector wide trade. now back in terms of trading

today. let's take a look at european equities. we are lower across the board. the xetra dax down about 1%. the ftse mid down 1.3%. it is the auto sector dragging down the broader market. but several sectors are off more than 1%. so let's take a look first at the gainers. what's what's outperforming in europe this morning. it's just telcos that basket up a third of a percent. but outside of that every sector is lower. so just signifying the breadth of the sell off this morning. let's get to the sector laggards where we've got autos right down at the bottom down 3.3%. no doubt that is linked to president trump's tariff comments threatening a 25% reciprocal tariff on european cars and other goods media also underperforming, but that seems much more stock specific. wpp, the worst performer in the stoxx 600 this morning. retail also under selling pressure, down 1.6% and technology down 1.3. that sector contending obviously with nvidia earnings, as well as the threat of more pressure from

the united states, shares of hong kong exchanges and clearing are higher after the operator's full year profit rose 10%, driven by new company listings and increases in trading turnover. the group also expressed optimism in the benefits of a pickup in chinese economic activity. emily spoke to the group's ceo and asked what she made of chinese president xi jinping's recent sit down with tech executives. >> the meeting between president xi. >> and the entrepreneurs. >> is very symbolic of, you know, what they called the return of that animal spirit in. >> terms of entrepreneurship. >> and that coupled with, of. >> course, the. >> development we've seen in the generative ai. >> space, a lot. >> of very exciting technologies coming out from the mainland china, i think has led a lot of people to take a real serious look again at the. chinese economy and the prospects. and, you know, once you know, people draw their attention back to

this market, they realize that, first of all, there are a lot of very exciting companies coming out and also about for those companies which are already listed, the valuations are actually really attractive. and i think that sort of explains the rally. now the treasure hunting continues, as we can see from the volumes and how our market has been performing in the last few weeks. and i'm certainly, you know, cautiously optimistic about that phenomenon. coming up on the show. elon musk joins trump's first official cabinet meeting as the president throws his support behind doge. we'll have the latest from dc next. >> nine tablets of 100mg generic viagra for $7. honestly, i thought it was a scam. but friday plans made the process so simple. no awkward doctor visits, no hidden fees, and free shipping to my door. the pills

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are your headlines. automakers lead european stocks lower as president trump hits the eu with a fresh tariff threat and lashes out against the bloc. >> the european union was formed in order to screw the united states. that's the purpose of it. and they've done a good job of it. but now i'm president. >> the video lower premarket despite an earnings beat after guidance, disappoints some of the street's more lofty expectations. speaking to cnbc, ceo jensen huang brushes off concerns around low cost models. >> ppe was fantastic. it was fantastic because it opened sourced the reasoning model. that's absolutely world class. >> rolls-royce shares surge as the company raises its midterm guidance and offers its first dividend in five years. cfo helen mccabe says there is still work to do to strengthen production. >> the supply chain has been challenging and we do expect it to remain that way for 12 to 18 months. as you say, it's industry wide. yeah, it's not

specific to rolls-royce and it's particularly around spare parts. >> availability and income grows faster than expected in 2024, boosted by its tradeweb platform. ceo david schwimmer tells cnbc he's optimistic about the ipo outlook. >> the pipeline is looking significantly better. and we've had some ipos in the tail end of last year. i expect to see more coming this year. and again, the broader markets in terms of the follow on capital raises, has been very successful. >> let's get a check on european equity markets and the reaction to those fresh comments from president trump really hitting out at the eu. not the first time, but perhaps his sharpest yet. you've got the auto sector dragging down the broader european market. the stoxx 600 down about 4/10 of a percent right now. this after yesterday the stoxx 600 hit a fresh all time high. so yes we are seeing a pullback. but it's after quite

a strong run for the stoxx 600. it's up nearly 10% year to date. looking at the auto sector in a little bit more detail i think it's worth looking at the names here. you've got volkswagen down 2% bmw down about 2.4. stellantis down two and a half. you've also not shown there but aston martin down sharply. ferrari down 7.5%. a little bit of an idiosyncratic driver there. but overall the autos are reacting very strongly to this possibility of a 25% tariff on european cars. and we just put this out there not necessarily drawing a link, but would just put it out there that last week we saw data showing that tesla sales had dropped 45% in europe, compared with a 37% jump in overall sales of evs in europe. we know president trump is a competitive guy. we know elon musk is in his ear in washington. just putting it out there as an observation in one of the trends in the auto space, just days before trump has come out, hitting at the auto sector, highlighting them as the subject of these threats along with

other goods. but he said 25% tariffs on european cars and other goods. let's take a look at the broader european market, what we're seeing in terms of the regions this morning where we bounced off the lows. so the xetra dax now down about 9/10 of a percent. we were off more than 1% earlier. the footsie 100 a little bit of a bright spot. that index is up marginally this morning. you've got lseg shares trading higher. rolls-royce massive mover to the upside there. so that's helping the uk market french market down a quarter of a percent. and the footsie maybe still underperforming down more than 1% there in terms of the sectors. the telcos have been the outperformer this morning. we've now got a little bit more green on the board. so it looks as though the floor has been found so far anyway. a floor under the weakness this morning. you've got telcos up 2/10 of a percent. travel and leisure also now catching a bid up 2/10 of a percent. industrials and oil and gas. at the start of this show we were just looking at telcos. and so we have seen some more positive momentum come through.

now on the downside the sector laggards. autos still the worst performer in the market down 3%. media also down by about 2.3% wpp weighing on that basket of stocks. retail and technology. so still heavier selling than buying. but things have turned slightly less bad in the last 20 minutes or so. as for u.s. futures, we're looking at a positive start there. the nasdaq looking to bounce about 140 points. the dow jones about 111. this comes after a pretty muted session yesterday as investors awaited those nvidia earnings after the bell. in terms of the numbers, it seems as though they were strong enough to keep the stock flat essentially in extended trade and enough to get this market moving again stateside. now turning to politics. we've got a really interesting story coming up next. the number of countries classed as democracies by the economist intelligence unit fell by 3 in 2024, while france was downgraded to a flawed democracy. the aiu found that

nearly 40% of the global population now lives under authoritarian rule, a share that has been increasing over the past decade. well, fascinating topic here to discuss with john hoey, director, the democracy index at economist intelligence unit. thank you so much for being here. a fascinating piece. and you actually published a similar report back in 2016 titled revenge of the deplorables. and that report focused on explaining the forces behind the election of trump 1.0, the brexit vote in the uk, and the overall rise of populism in europe. what's changed between publishing that report and this one? >> thanks. >> really interesting question. >> good morning everybody. >> so the results this year actually show. >> a. >> continuation of. >> some of the. >> trends that we identified. >> in that 2016 report. so overall, we're. >> seeing a continuation. >> of this. >> democracy recession.

>> that began. >> around 2006 2007. >> so index. >> score has. >> fallen again in 2024. >> compared with 2023, down. >> to 5.17. >> from 5.23. >> and over. >> the past decade. >> we've seen. this continuing decline. >> now, a lot of that is being driven by the rise. >> or. >> entrenchment of authoritarian regimes. so over the past decade. >> we've seen an increase. >> of eight. in the number of authoritarian. >> regimes, countries. >> classified as authoritarian regimes. so it's now 60 compared with 52 back in 2014. so that's one of the drivers of this democracy. recession that they are. >> the number of countries. >> are. increasing and. >> they're becoming. >> more there's a tendency to. >> become more. >> repressive and authoritarianism. >> or authoritarian. >> but the flip side of that, obviously, is that democracies are struggling countries

classified as hybrid regimes within this kind of gray zone between democracy and autocracy. they are also struggling and sliding in the wrong direction. but the trend the most disturbing trend, i guess, over this whole period is the pervasive and rising public dissatisfaction with the functioning of democracy. in in the advanced. >> and. >> non-consolidated democracies. so there is a feeling among voters that governments are not delivering for them. they there's a very widespread feeling that the system is rigged against ordinary people, that there's a. systemic social and economic inequality there. people feel that they don't have a voice in politics, that the mainstream political parties do

not represent them, do not consult. them sufficiently or at all about issues of public interest and concern. so that was what was driving the vote for trump in 2016 and again in 2024. >> well, let me take you to germany, where we've seen just that, just what you described, this massive rise in support for the afd. they came in second in the polls, record voting, record support for this party. and yet they're not going to have a seat at the table in government. cdu has categorically ruled out ruling or governing germany in a coalition with afd. what are the long term consequences of a population legitimately voting a party like this into second place, but then not acknowledging that presence at the government level? >> well, i think. >> the consequences are quite worrying, actually, because the consequence of this is that you're a this party is obviously

representing a demand for change on the part of voters who have genuine grievances and concerns about important issues. and if those issues and, and concerns are not addressed within the political system, organized political system, then conflict will tend to take place outside of the political system. i mean, in the end, that's what democratic politics is meant to be about. it's about addressing the inevitable conflicts over issues that arise in society and reaching a dealing with those in the public domain. so those issues and the parties representing those issues are not being involved in the political process in that way. i think the consequences are worrying. and eventually the mainstream political parties will be pushed further aside and

political systems could be upended. so i think this points to quite significant political change. we've already seen that that at the end of the day, it's very difficult to sideline a large section of the public who are looking for change. and so eventually we saw in italy eventually, that giorgia meloni was elected. we've seen in argentina, where the demand for change led to the mla coming to power. in the uk, where we also had an election last year. we've seen a slump in support for the labor government and a rise and rise of nigel farage's reform uk. so i think we are going to see very significant change in the coming years. and also what's happening is that the political space is opening up. there is more political competition. voters who previously did not vote or were not politically engaged are being brought in to politics. so

i think that asg received the votes of about 1.8 million voters who'd never voted before. and in general, there was a very high turnout there, which shows us the polarization and the demand for change. so unless this these kind of democratic deficits, as we identify it, are addressed by the mainstream political parties, this is the direction of political change in future. >> it's fascinating when you talk about the, the, the need for change, but you would have thought that back in 2016, it would have been enough of a wake up call for some of these mainstream parties to begin to try to address the underlying issues that has led to the rise of these fringe parties. joan, talk to me about france. france was relegated in 2024. in your rankings in this democracy index. what's the rationale behind the downgrade? >> the main driver, there was a decline in trust in in

government and political institutions generally. so as we know, france has been involved in quite a long running political crisis. now, president macron's decision to call an election last year really backfired. ended up with a very fragmented parliament, with no one political bloc capable of. putting together a majority. a new prime minister was appointed. michel barnier didn't last very long. so, you know, i think there's a very strong possibility that we might have to have another election later this year. so again, what we're seeing in france is a very big polarization there, which has been the case for many years. and just plummeting trust really in the presidency and also in other political institutions.

and again, a kind of cordon sanitaire formed around the national rally, the party of marine le pen. >> joan, thank you so much for joining us. a fascinating report would would encourage viewers to take a look at it. joan hoey, director of the democracy index at the economist intelligence unit. donald trump's first month in power has brought a turnaround for canada's liberal party, with the us president's threats to impose tariffs and use economic force seeing support fall for the country's trump aligned opposition leader. an ipsos poll showed the liberals taking the lead amongst decided voters for the first time since 2021, with support for the party rising 10% from earlier in the month. interesting ripple impact of president trump and the policies he's been imposing. elon musk has joined president trump's first full cabinet meeting, trump said. trump used the occasion to once again praise musk and throw his weight behind the doge project. as departments across government brace for

large scale cuts. let's get out to nbc's alice barr, who joins us now from washington, d.c. alice, talk to us about the key takeaways from president trump's first cabinet meeting. >> juliana. well, the biggest is. >> certainly the presence of elon musk. and not just his physical. >> presence. >> but how. >> much he really loomed over that meeting. he spoke at length about his efforts to slash federal spending, and president trump really seemed in lockstep with him backing the spending and workforce cuts that we've seen. and it was interesting, the examples. that elon musk gave when he was talking about these cuts, he said to expect that there will be mistakes made and that they will move quickly to correct them. and he mentioned usaid, the foreign aid entity. >> that has. >> gone through. >> such. >> a downsizing. >> since. >> president trump took office. he said one of the things that was accidentally canceled at usaid was. ebola prevention. and he said that they quickly

restored that. and he said there had been no interruption. and we've had a number of experts spring quickly. >> to say that that's not correct. >> we heard overnight from doctor craig spencer, who famously survived ebola in 2014. he tracks outbreaks around the world and says he has been in contact with people who would normally have been setting up border screenings, doing contact tracing on the ground, and they're not getting paid for that. >> kind of work. >> president trump again, he defended spending cuts just as nbc news has obtained a new budget office memo that gives agency heads two weeks to submit plans for mass layoffs. and the president was pretty blunt. he said, we're cutting down the size of government, which he described as bloated and sloppy. and he also again defended. >> those emails. >> that have gone out to federal workers, asking them to describe what they did on the job last week and said that people who do not respond may still be fired. juliana. >> alice, in terms of the massive cuts and, you know,

agency reorganization that elon musk has been trying to push in d.c, what's been the response from the republican party? and now we've got some more insight after this, you know, extended q and a after this cabinet meeting, what's been the response from the republicans? >> yeah. so we. >> know that just yesterday. >> the. >> white house chief of staff fielded questions from senate republicans who are voicing concerns, even if they back the agenda to downsize government. they're voicing concerns about musk's approach. and we know that broadly across the country, cutting waste and fraud and abuse, that is all very popular. but elon musk himself is increasingly unpopular, and a lot of those senate republicans were asking for more transparency, more detail, and a more compassionate approach to how this is being done. >> alice, thank you for bringing us the latest from d.c. ukraine is set to dominate the agenda

when uk prime minister keir starmer meets with u.s. president donald trump in washington today, with starmer expected to stress that peace in ukraine requires u.s. military cover and reiterate the need for kiev's involvement in any negotiations. the meeting follows president trump's sit down with french leader emmanuel macron on monday, and comes as european leaders prepare to discuss trump's push for a peace deal in london this weekend. ukrainian president volodymyr zelenskyy says kyiv has reached a framework agreement with the us over access to rare earth metals and a joint investment fund for the country's reconstruction. zelenskyy said the preliminary deal does not currently include sought after security guarantees, with trump suggesting that responsibility should fall to europe. the us president confirmed zelenskyy will visit washington tomorrow and that they will sign the agreement. then. zelenskyy reiterated ukraine's desire for security guarantees, suggesting the outcome of the preliminary deal could still go either way. >> so we.

>> will definitely pay attention to. >> the. >> economic agreement. >> but i would really ask for at least an understanding that we all see this as part of future security guarantees. >> therefore. >> even in the framework agreement, i really wanted at. >> least a sentence. >> to appear. >> guaranteeing the. security of ukraine. >> this deal can. >> be a big. >> success or it can fade away quietly. a lot of it, i believe. >> depends on our. >> conversation with president. >> trump coming up on the show. $800 billion. that's how much the crypto market has lost in recent weeks. as excitement over president trump's reelection cools. we'll discuss after the break. >> the fbi. >> calls it. >> house stealing. >> the latest scam or a cyber thief. >> transfers the title of. >> your home out of your name and steals your hard earned equity. >> it's roughly. >> 60 to 90 days for that person to even figure out that they're the victim of this crime. >> you start getting. >> foreclosure notices and you

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claims and real gdp figures do. earnings season continues, with warner brothers and dell among those due to report, and we'll hear from a slew of fomc members, including philadelphia fed president patrick harker and his richmond counterpart tom barkin. and president donald trump will host his second world leader of the week, with uk prime minister keir starmer visiting the white house. the crypto market has lost over $800 billion in recent weeks, as excitement over president trump's reelection cools off. the price of leading cryptocurrency bitcoin declined over 15% in the past month, while other crypto assets have also been under pressure. let's welcome jeffrey kendrick to the program, global head of digital assets research at standard chartered bank. jeffrey, thanks so much for being with us today. president trump, he he boasts a an extremely supportive stance when it comes to cryptocurrency when it comes to bitcoin. just a couple of weeks ago, when he was speaking at the fii summit in miami, he said that he's going to end biden's, quote, war on

bitcoin and crypto. but what is he actually done to support the crypto market? >> so i think. >> the trump administration. >> will be positive. >> medium term. >> so we came into january 20th hoping for quite a lot. and you could argue there's already quite a lot of positive positivity priced in. the big change that we saw immediately was the removal of sap 121, which had been hampering us financial institutions from entering the space. so that's a huge positive. there had been expectations around a strategic reserve for bitcoin that didn't happen. instead, we got the stockpile. the stockpile for me is okay because it legitimizes other sovereigns, both within the us. so a number of us states are considering holding bitcoin on balance sheet and globally. so we have already started to see in the middle east, the abu. >> dhabi. >> sovereign wealth fund now owns 4.7 thousand bitcoin equivalent of the largest ebit etf as well. so i think the

story is good in terms of the structural gain from the trump administration. but other initiatives in the last couple of weeks have been very confusing for risk assets. and that's the biggest story here that's been driving crypto prices lower. so there i mean tariffs on off canada, mexico, eu obviously some potential positives coming around ukraine and all the middle east. but no nothing solid really on any of those. and risk assets don't like uncertainty. and so that's what we've seen. we've seen the tech stocks in the us come lower. we've also seen within the crypto space some issues around bybit where there was a hack. you've had solana meme coins in trouble as well. and so there's been a lot. >> of negativity. >> thrown at the sector. and that's what i think has driven us down to these levels. for bitcoin, we got to about 82,000 yesterday. and so somewhat challenging times. but again, for me the medium term story still remains very, very positive. under trump.

>> bitcoin was often touted by enthusiasts and evangelists as a diversifier. but you know, listening to you and looking at the market moves this year, it feels like it trades like any other risk asset. is that diversify or arguments still valid? >> certainly when we see large moves like we've seen in the last few weeks, you tend to get on the negative direction. risk assets all trade together. so no great surprise when the nasdaq comes lower, as it has done in the last little while. when you have concerns about us growth, that crypto also gets thrown into that mix. but medium term, yes, i think the diversification story is reasonable. the use case for bitcoin in particular is to diversify against risks around traditional financial markets, be it banks. so we saw that with the sbb collapse a couple of years ago or around treasury markets. so if you saw a looser fiscal position in the us, something which looks less likely right now, then bitcoin

can help diversify against that. so yes, medium term diversification. but when you get risk off moves like these, all assets do tend to trade together. >> how much of the heavy selling that we've seen since trump's inauguration has come from etfs. >> so even in the last week we've seen about $3 billion of outflows in terms of etfs. so we got to a net position of about 40 billion of inflows over the first 12 months of those etfs in the us, which quite frankly, is the strongest etf performance by any asset class in history. but in the last week or so we've seen 3 billion of outflows. now, the concern there is that those that bought post the us election in november and now heavily underwater, i estimate that those that bought since november the 6th are now losing $2 billion just on those positions. so that's part of what we've seen this week, is those that are relatively new to the asset class. so again, post trump election victory in november,

taking off some of those positions and hence that $3 billion worth of outflows coming through. so part of it is that part of it is also the sector quite frankly, is still very retail heavy compared to equities and others. and so it's much more difficult for investors then to hold through losses. so when you see moves like we saw this week you tend to get some panic selling, which i think is what we saw a little bit of yesterday. and perhaps we get a little bit more today and tomorrow as well. >> what about the story last week about the hack? there is this story emerged that a hacker stole $1.5 billion worth of digital tokens and what researchers are calling the biggest crypto heist of all time. what impact has that had on the crypto market? >> so it's come at a very bad time. so we already had the solana meme coin story around a couple of weeks ago. obviously risk assets coming lower. and then you had the bybit hack too. so within the crypto ecosystem, what we need are traditional financial players like standard chartered, like blackrock and

others that have the etfs. now to really step in in size. and it's institutions like ours that now offer custody, businesses that are much more secure than some of the hacks that you mentioned just now. so as the industry becomes more institutionalized, it should be safer. we should get a lot less of these negative headlines. hopefully we'll get some regulatory clarity in the us too. and that can see, again, a lot more traditional players entering the market probably that will see volatility come lower. and again, that should add to that medium term top, top side potential, which for me is bitcoin up to 200,000 this year and $500,000 before trump leaves office. >> you just alluded to it. but in terms of kick starting, that institutional buying, what's going to be the catalyst for that? >> so it'd be very handy if risk assets could just stabilize. now, the main change we've seen in the us is sab 121 going as as as i mentioned, we should get more regulatory clarity through the year this year. stablecoin

regulation. we should get some kyc type regulations come through which can help the industry as well. and that should further legitimize. so you'll see more us banks involved. you'll see larger institutions in the us continue to push through. and then the etfs. so far, we haven't really seen much of the very long term pension funds in the us. so here i'm thinking state pension funds etc. that are huge in size. they have $40 trillion worth of assets, and they only currently own 1% of all the etfs in the us. so there's that very long term sector that is still to participate. more regulatory clarity will help that and then also sovereign. so the only sovereign that we know so far has bought the etfs is abu dhabi sovereign wealth fund. 4.7 thousand btc equivalent. they own of the blackrock etf as at the end of 2024. and i'd expect more of that to come through this year as well. so long term pension funds, sovereigns, etc. getting involved. >> okay. >> well, jeffrey, really

appreciate your views. look forward to having you on again. jeffrey kendrick, global head of digital assets research at standard chartered bank. let's get you a final check on nvidia pre-market. i think the whole market is very keen to see how these shares move, and we're actually higher now, still hovering around the flat line. but i think important to note that we are essentially holding steady. that stock up 4/10 of a percent seems to be enough to get the broader us market going. us futures are looking up. you've got more than 100 points higher poised for the dow and the nasdaq. so with that we will leave you. that is it for street signs i'm julianna tatelbaum but the coverage continues worldwide. exchange is coming your way next. >> anybody who owns property should worry about home. >> title theft. there's no other. >> crime that is so easy, so quick, and so lucrative. >> your home, your equity, and your peace of mind can all be

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>> here's what's. >> on tap tonight. >> fast money live investors and fast money fans join melissa lee and the team of traders live and on air. >> we put the party hats on now. >> for an all access fusion of trades, trends and tips. fast money live today five eastern. >> cnbc money, money. >> not too. >> hot, not too cold. nvidia shows investors. >> the ai. >> spending boom. >> it is far from over. >> topping estimates in. >> its. >> earnings report even. >> as. it sales. >> growth that continues to slow from a year ago. taking a look at the chart right now. >> hsi. >> shares are. >> up just over a half a percent. >> ceo jensen. >> huang however, he still sees a strong quarter ahead, fueled by. demand for his company's blackwell chips. >> we had a fantastic quarter, a terrific ramp. nothing was easy about it. and a couple of quarters ago, of course, people were worried about how successfully we'd be able to ramp something as complex as blackwell.