christine lagarde says the 2% inflation target is insight. after 50 years, russian gas europe via ukraine stops flowing, raising questions about the continents security. good morning and welcome to 2025. heading towards the first trading session of the new year, futures painting and optimistic picture this morning. euro stoxx 50 futures hi 0.8%, flat on the ftse but also looking higher u.s. futures. a downward and for wall street at the end of 2024, but it was the best two year run since 1998. we will see if that continues as we go into 2025. flipping to the cross asset picture, we do have japanese markets closed so trade in cash treasuries is off until 7:00 a.m. u.k. time but euro-dollar 1.0, christine lagarde's new year's message yesterday saying the ecb's 2% target is insight. branch trading $74 per barrel after the american petroleum institute, gold up a high -- a touch higher and bitcoin with a bigger drop at the end of 2024 as investors took profits off the big rally. flipping over to the asian picture, japan closed but the broader msci

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 she talked about, you know, the ira basically being repealed in her mind?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

christine lagarde in davos. thursday, donald trump remarks from davos, virtually.nings from verizon. a rate decision. we are looking at 30 year mortgages over the last six months. rates remain elevated at 7% despite rate cuts. we will keep an eye on that. from new york, that does it for us. same time, same place next week. ♪ >> welcome to bloomberg markets. i'm sonali basak. the u.s. supreme court has upheld a law that bans tiktok. updates continuing to come out of washington around the story. we will bring you the latest. first, check on markets. s&p 500 is hitting a session high just a moment ago, firmly above that 6000 level. the last day of trading before president-elect trump begins his next term. it

and in davos, blackrock's larry fink, the ecb president christine lagarde and others, th s

lizzy: we talked about ecb president christine lagarde's new year's message yesterday but i should hateglect the snb, it has been cutting rates faster than expected, what comes next? >> the snb had a december surprise of 50 basis point cut, when 25 basis points was expected. they have cut by 125 basis points this year. very low rates. in december, it sounded like they were less worried about upside pressure on the franc, but more worried about domestic weakness. we think there is little policy space left but the snb will have to deliver more cuts. we see one more rate cut in march with risks tilted toward further easing especially if the franc starts to appreciate again. lizzy: maeva cousin, bloomberg's chief trade and climate economist, we thank you for that lookahead for the euro area economy. coming up, why london is the best place to be for that cheeky friday work from home perk. the latest results from our flexible working survey next. do stay with us. this is bloomberg. ♪ ♪♪ ♪♪ ♪♪ lizzy: to the u.k. where researchers and think tanks say that taxes on minimum wage jobs will have ef

the economics are so stark christine lagarde has been focused on growth.hereas andrew bailey has been focused on the outlook he needs to shift now and look at the bond market and fiscal headroom and the pickle the government have found themselves in and respond if he doesn't do it sooner or later, he will find the uk in had a more challenging outlook for growth. >> from what you are telling me, the biggest pressure, you said there is actually coming on the fiscal side, is because of the budget we will be on obtain in w government is number 11 and 10 listening to us in the bond market at the moment >> yup in the u.s., donald trump doesn't listen to many people, but the bond arket is one thin he should be listening to. i'm not sure of andrew bailey is listening to he should be i would be telling him to ramp up the rhetoric about the interest rate cuts over the next 12 months. the government will not change their decision making now. they've got another budget in march. if the outlook doesn't change, of course, fiscal headroom eroded by the cost of interests

we will speak to policymakers and our exclusive conversation with ecb president christine lagarde at0 a.m. london time. you don't want to miss that conversation. >>> looking at the latest from gaza, the cease-fire with israel and hamas in gaza went into effect on sunday after almost three-hour delay. three israeli hostages were the first to be released under the deal. 90 palestinian prisoners were also released while hundreds of trucks carrying humanitarian aid entered the gaza strip. nbc's raf sanchez filed this report. >> reporter: we are outside the hospital in tel aviv. it is the final destination for those three female hostages. after they were finally released after 471 days in hamas captivity. this was an epic journey. it started in gaza. really extraordinary scenes as these three women surrounded by masked hamas gunman were handed over to the red cross. the red cross drove them to the israeli position and given flown via helicopter. they are beginning a long journey of recovery both physically and mentally. the early indications are they seem to be in reasonably good shape gi

e ister and the imf deputy and do not miss our exclusive conversation with the ecb president christine lagarde0 london time wednesday morning. our coverage kicks off tuesday from davos across cnbc tv and the international live youtube page as well. >>> as we approach the end of the show, here are the three things to get you up to speed on wall street. we have data on housing and industrial figures state side. eyes ares on apple after the stock had its worst day since august. it closed 4% lower. it was a rough day for snap. shares ended 5% in the red after the ftc would refer a complaint to the department of justice. that is it for today's show. have a great weekend. i'm silvia amaro. orwi ehae"s mi "wlddexcng icong up next. let's say you're deep in a show or a game or the game. on a train, at home, at work. okay, maybe not at work. point is at xfinity. we're constantly engineering new ways to get the entertainment you love to you faster and easier than ever. that's what i do. is that love island? >>> it's 5:00 a.m. here at cnbc global headquarters. welcome to "worldwide exchange." here's your

. >> president christine lagarde reacts to u.s. president donald trump hold off on tariffs at least for now. also saying the european central bank is on track to meet its targets. >> we do not see ourselves behind the curve and if our baseline holds, i think the -- the anticipation that we have will put us on target. >> plus, a $500 billion plan, president trump cheers a massive ai infrastructure project backed by soft bank and openai as shares in the japanese firm soar. >> this monumental undertaking is a resounding declaration of confidence in america's potential under a new president. >> spanish prime minister pedro sanchez backs europe's advance on tech regulation telling us transparency is key. >> all of us have to be worried because of the concentration of power in a few hands. second because misinformation is one of the biggest reasons and challenges in all our democracies. >> and nato allies face calls from president trump to increase defense spending. poland's finance minister telling cnbc his country's investment is prote

christine lagarde said he would not be pessimistic to say europe is facing an existential threat.saying trump should be a wake-up call for europe to push structural reform. europe's competitive problem will get bigger with trump's economic policy. how much of this the barlow versus who actually needs to see europe come together and put in some structural reforms? you were talking about germany and what they can do but how much does it need to be europe whole project to make the region attractive? jay: that is why we talked about regional competition. it is not germany, the u.s., china. it is regional. the president in talking about america first is going against the tide. that is his brain and that is what he does and has worked for him. -- his brand. no country has what it needs to be successful in today's day and age. it is regional. it is who are your friends. europe has a good position but it has not used its weight. it has not made that move to say we are fully european. we need to joint spend and joint tax. they did it a little bit with climate and a little more with defense

this morning was christine lagarde talking about how pessimistic she is on europe.to be a buyer of pessimistic central bankers. that's good for monetary policy. and when you see. >> well, because you think they're going to just continuously cut rates into that because their economies are not great. >> yeah. but when you look at the price action euro bank's new highs euro industrials new high euro luxury stocks turning up. european credit conditions are very benign. european outflows very pronounced. and a pessimistic central bank. that's a very bullish combination that i have help from the monetary policy makers. at the same time, price is beginning to respond. so i think we really ought to consider europe here undergoing some some pretty important turn. think about these luxury stocks lvmh, hermes, richemont. they had terrible, terrible numbers and they didn't make new lows on it. they've all bottomed over the last 3 or 4 months. and i think the reality of this business is things don't bottom on good news. if things bottomed on good news, it'd be easy things bottom

christine lagarde, head of the central bank, hugely important for monetary policy.audia steinbaum, mexico's president. she won by a large margin in june, and we'll be watching her in the new year as the trump administration enacts tariffs. >> absolutely. >> we have a lot of women also alongside her who are newcomers to the list, who are the first in their position. we have rachel reeves. uk's chancellor of the british equivalent of the treasury secretary. she is the first woman in 800 years to hold that role. she's 39 on the list. at 55, we have bonnie chan, ceo of the hong kong exchanges and clearing, which operates the hong kong stock exchange. it's the ninth largest in the world. significant financial power. if i can get one more in. we have breaking news at "forbes." we are announcing our first eve taking the role in january, first in 107 years. >> that's amazing congratulations to sherry. huma, a number of women in politics and policy also made the list. many who rode a populist wave to their positions in power. what can you tell us about sort of this shift to

reporter: last week, the imf meetings, chris taylor guard -- christine lagarde cited record high public debt is one of her biggest concerns. did that cause you to re-think any elements of the tax plan? dr. hassett: the public debt being high is something economists agree is a downside risk for growth and that it's an upside opportunity, because if you have a smart fiscal consolidation, you can get ahead of the curve on that and increase growth significantly. some places in literature suggest you can have as much as a percent to expected growth in the medium-term through fiscal consolidation. the politics of how that might work, that's outside of my lane. but in terms of the facts of how the models work and what they say, what i said before and what i just said are the best characterization. >> jerry from the buffalo news. reporter: another question about state and local tax deduction. governor cuomo has said for months now curtailing the deduction could absolutely devastate the state's economy. the high income people could flee the state. and it is a blow to new york's economy. from you

course i this morning with a high profile panel moderated by our own sara eisen, ecb president christine lagardes minister for the economy and planning and the president of singapore. they touched on everything from inflation to rates to tariffs and beyond. here are some highlights. >> you can't have. >> a global discussion. >> these days without talking about inflation. >> or that's. >> been. >> the. >> case in. >> the last few years. >> certainly a. >> managing director. >> have we put the. >> inflation. >> genie back. >> in the bottle. >> well, president. >> lagarde just sounded. >> pretty optimistic. >> so that is a very, very good question. here is the bottle. here is. >> the genie. >> the head. >> of the genie is in the bottle. most of the body of the genie is in the bottle. >> kind of. >> getting stuck there though. >> but the legs are kind of hanging still out. we need to push it all the way. >> down. >> and it is remarkable how much progress the world has made. and i want to say something that we, in our worries about today and tomorrow, we not always reflect on when we look into the pa

christine lagarde is the president of the ecb.we have ahead of the imf and we have the president of singapore. thank you all for joining us. this davos has been very interesting. so much optimism and president trump and policies in outlook. i sort of wonder as an asset manager, as a risk manager, like she would take the other side? are you worried eglin is so excited? >> larry? got me? >> it's hard to hear. >> all, it's hard to hear. okay. i was just as he you if there's much optimism around the u.s. outlook right now and whether that was worrisome? >> welcome everybody. thank you. i can hear you. is her too much optimism in the u.s.? no. but that being said there's a lot, this risk in every economy. i can say much more forcefully there's too much pessimism in europe. for someone who is been pessimistic in europe for like ten years. my number one observation this week in davos, the pessimism i've never felt, the pessimism be larger and more profound. and i believe it's probably time to be investing back in to europe, focusing on i

the outlook for europe was a major focus, with ecb president christine lagarde weighing in on the opportunitiesause of the inflation reduction act and the significant subsidies that were going to be given to those who invested in the us. i think the ira has essentially been removed, and that any subsidies under the ira will not be paid out. so people are going to have to rethink, with the prism of confidence, with the prism of cost, as is often the case and the prism of opportunities. and there is no question that what is happening outside is a challenge. but it's also a big opportunity for revisiting and deciding whether or not europe wants to be a key player. but i'm contending that it has the talent and it has the means, and it has the ambition. >> that's an interesting take. and, you know, kind of a verbal subtweet the. >> under the undercurrent there is. yeah. you take away the ira and you're going to take away why everyone's been investing. they're not going to pay out if you're a company that's been investing there. but what you're hearing from the new administration is, look, if you man

christine lagarde, hugely important for monetary policy at number four, claudia sheinbaum, she is mexico's 200-year history to hold the role. she won by a large margin in june, and we'll be watching her in the new year as the trump administration enacts tariffs. we have a lot of women alongside her, we have rachel reeds, the uk's chancellor of the british equivalent of the treasury secretary. the first woman in 800 years to hold that role, number 39 on the list. at 55, we have bonnie chan, the ceo of the hong kong exchanges and clearing which operates the hong kong stock exchange. the 9th largest in the world. significant financial power, and if i can get one more in, we have breaking news at forbes, we are today announcing our first ever female ceo, sherry phillips has been announced as the next ceo taking the role in january. first in 107 years. >> there you go. that's amazing news, and congratulations to sherry. huma, a number of women in politics and policy made the list, many who wrote a pop ulis wave to their positions in power. what can you tell us about the shift to the right globa