we will hear from the cfo of deutsche bank.largest lender in germany came through with higher revenue, largely on the back of debt trading. that is an important conversation. we will be airing it in the next couple of minutes. the interview with deutsche bank's cfo is the way i approach work post fatherhood, has really trying to understand the generation that we're building devices for. here in the comcast family, we're building an integrated in-home wifi solution for millions of families like my own. in the average household, there are dozens of connected devices. connectivity is a big part of my boys' lives. it brings people together in meaningful ways. tom: good morning, this is bloomberg "daybreak europe," i'm tom mackenzie in london. an american airlines subsidiary plane with 64 people on board collides midair with a military helicopter in washington, d.c. prompting a huge search and rescue operation in the potomac river. recovery operations could take several days. jerome powell says the fed is waiting to see more progres

deutsche bank. falls toward the bottom of the stoxx 600. after a larger than expected drop in fourth quarter profit, as litigation costs continue to weigh, cfo james von moltke tells cnbc the worst of the risk is over. >> in a sense, the only good news the thing you can say about it, it's behind us. and importantly, therefore, the risk profile of the company is dramatically changed as we go into 25. >> roche raises. >> its dividend after a top and bottom line beat for the full year, the swiss pharma giant ceo tells cnbc he is confident about the impact new obesity drugs can have. >> we see. signs that you can reduce the rate. >> of. >> alzheimer's and you can probably reduce the rate. >> of cancer, you can. >> reduce the rate of other diseases there. i think more than 100 different. >> diseases that are linked. >> to obesity. >> and that's why this. >> is. >> not only an. >> obesity question. >> it's a question around. >> overall health. >> and shell launches a $3.5 billion buyback despite adjusted.

deutsche bank reporting this week, nordea, seb. >> 2025 is gearing up to be a pivotal year for europeanks. we have seen the share rally of over 75% the past two and a half years. that is defied monetary easing but going forward we see more estimate cost of the year ahead which is threatening to derail that progress. having said that, some top results from u.s. bank so far suggest positive momentum particularly for deutsche bank this week. we have seen morgan stanley and goldman sachs see positive gains in fixed revenue trading and in the fourth quarter we're expecting deutsche bank to see a 70% increase which compared to peers is at the top end of that. when it comes to the nordic banks this week, the swedish contingent is expected to come under the most pressure given rate cuts and how those will impact net interest income. having said that, we sought results from swedbank last week which were better-than-expected, which suggests the fall will be less than anticipated and we can expect more resilience than previously thought. tom: what about chipmakers in europe, asml, st micro? >> the

stefanie holtze—jen from deutsche bank private bank gave us a sense of how damaging the tariffs willstration has been following on with these tariffs as you already said. on average, chinese exports are right now tariffed at 23%, so, yes, if we look at 50 to 60%, this is a higher number, but there's also a few differences. so, number one, it doesn't come as a surprise. so the diversification of trade partners and diversification of supply chains has already taken place over the last year. so, from that angle, if you compute the potential impact these new 60% could have, we come to a point where we see this down to only 35% effective tax rate. and also, of course, then talking about the impact on the economy being also watered down to 0.5%, which is something we have incorporated into our gdp growth target, which is 4.2% for the year ahead. but one more point for the year ahead, as i said, the timing of this is also important. right now we are sitting here, they have the implementation of any higher tariffs. it is a lot retoric around it, but there are still a good amount of uncertain

deutsche bank said china competition may undermine demand for its aircrafts. gative by 0.14%. bank of america reiterating nvidia at its top pick. citing a consumer electronics show as a catalyst. the stock is up 1.5% on the morning so far he let's turn to retail. cautiously optimistic heading into the new year, oliver chen -- new product introductions in opening price points. oliver joins us for more. welcome to the show. happy new year to you. i want to talk about luxury and why you think we need to get beyond ordering, quiet luxury. who's doing that right now? oliver: the name we like is louis vuitton. we think that is a great idea in terms of the scale they offer in terms of this anyone times pe. and the rising mill class in china. there is an opportunity. they are spending $8 billion to $9 billion in marketing. the big has been getting bigger. that being said, as you know, china has been a tougher place, particularly with housing. it's something we are watching. quiet luxury has been a big trend. however, what we want to see is more fashion and more color.

he hated the pangea policy at the trump team considers a gradual approach the tariffs and deutsche bankalling for no rate cuts this year. we begin this hour with stocks rising and the dollar weakening following a bloomberg report that donald trump's team is considering a gradual ramp-up in tariffs and listing negotiating leverage in avoiding a spike in inflation. joining us now, stir kaiser of city. what did you make of that report, how are you thinking about the trait approach? >> i don't want to call it the best case, that of the market is hoping for, a more rational, gradual approach. one of the reasons markets have been in the week to start the year's people are concerned about what next week is going to look like, what kind of headline risk because face. if you're getting things that seem more measured in balance, that is probably a net positive for risk sentiment. jonathan: you've been focusing on why, he said a million times that higher yields are take that so long as it is underpinned by stronger growth. isn't inflation a factor in this boost in yields feet? >> it is hard to tea

. >> upgrade on digital realty from deutsche bank raising the price target. >>> here what to watch ahead of the open. initial jobless claims, retail sales figures. consensus estimate. dana telsey is optimistic with 1%. we get the look at the manufacturing in the philadelphia area. we get the latest on the national association of home builder survey and another busy day of earnings with bank of america and morgan stanley and pnc and u.s. bank corp. also a pair of cnbc interviews on the back of earnings, including citi's jane fraser. that does it for "worldwide exchange." "squawk box" starts right now. >>> good morning. the latest is now a cease-fire setback. israel accusing hamas of last minute concessions. we is the latest from the middle east. >>> trump's pick for treasury secretary will face a panel at the senate confirmation hearing. we'll show you his prepared remarks. >>> apple has lost its crown as the biggest seller of smartphones in china. it's january 16th, 2025 and "squawk box" begins right now. >>> good morning, everybody. welcome to "squawk box" h

citing concerns over the company's growth prospects while deutsche bank shifted its position downgrading the stock to hold, palo alto itself down nearly 4% this morning. stuart: elon musk setting his sights on the sports world. is he is you looking to purchase a major league team? >> reportedly interested in buying an english premier league soccer club. liverpool. no less. one of the flagship teams in the premier league and currently in first place. going to forbes as of may of last year, it was valued at $5.37 billion making it the fourth most valuable football team in the world but liverpool is owned by the american conglomerate fenway sports group also run the boston red sox and the pittsburgh penguins among others. fenway says it has a long-term commitment to liverpool, and musk's father in an interview confirm his son's interest saying the family has relatives in liverpool and they even use some of the beatles growing up. what? it gets stranger. stuart: what would you say to elon musk owning and running liverpool? ashley: it is starting to get into the ridiculous stage. stuart: than

there is a piece from deutsche bank. okay. >> deutsche bank, and they cite the cornell study, then they cite their own, as well. >> cornell -- >> surveys. they see a minimal impact on beverages. spirits least affected. beer, soft drinks. but the cornell work and their own work does seem to point to chips and other salty snacks and sweet bakeries. >> really amazing. >> based on household income in terms of your reduction in your grocery bill on a monthly basis. >> yes. this was one i felt if you want to save money, well, you look -- it's $400 that they're saving. and the average person is -- $400, nice saving. i would point out mr. smucker told me there's been absolutely nothing wrong with the twinkie deal, hostess. still working well for them. >> look at the performance of so many of these companies' stocks. it's on the basis -- >> on the backdrop of a market that's on fire, staples relative to the s&p is at the lowest since october of 2000. >> i learned from my friend michael hailey, a demolition man, that safety never

gain users and ad dollars and morgan stanley expecting to see an upside in earnings per share and deutsche bank top 2025 pick. snap which had the largest move higher today is seen as getting the biggest percentage boost from tiktok's ad dollars moving elsewhere. you'll have to see what the incoming administration does about this tiktok issue. >> yes, we will. julia boorstin. >> we can take it from the new trump administration on the other side of the holiday weekend and we'll have the inauguration and we'll have to start learning really quick and executive orders what some of the early plans need to be and how the market will adjust to that. >> it's been quite a road, too. if you go back a couple of months and a week and you had an immediate attempt of the rerun of the standard trump playbook got completely unwound and now it's front loading some of the potential concerns, and i don't know necessarily that there's going to be one signature moment where people say it's an all clear whether it's tariffs and immigration restrictions, but if that's going to be the case, having the meeting stock and

deutsche bank, bank of america. paribas expected no cuts in 2025 based on an inflationary upsurge. dani: then you get someone like kevin warsh writing an op-ed saying that the central bank is being too political and using pa ris as a scapegoat for possible inflation. that is not what the central bank should be doing. you need to be smaller. annmarie: with three days out from trump inauguration, we have a break for the fed chair. if you go back to how this incoming administration might use tariffs, there was something in the op-ed about trump's policy being not just about tariffs. scott said tariffs were to address the unfair trade processes -- practices. basically everything is on the table. jonathan: a lot to talk about this morning. welcome to the program. equity futures up by zero .3%. we will catch up with christian notling on the challenging start to the year. isaac boltansky and the head of ubs following strong q4 results. christian notling writing the following, expectations and uncertainties about tariff policies drove treasury yields higher from the start of the year. it h

deutsche bank is worried about that in the account deficits in our view the single most important variabletrump policy suc success, they are struggling as far as the debt ceiling which is going to happen at some point. >> we are seeing the push and pull on the debt ceiling in the house and the senate and if there is any uncertainty with what trump wants to do and his nominees, will they be able to get into the house and the senate and will they be able to agree to your point what is the time going to look like. we are seeing the uncertainty play itself out. if it does not get done in a timely matter and were not seen coalescing around the certainty timeline then i think we will start to see shakiness. maria: we will take a break, we have to get your take on the fox news poll trump is more popular today than he ever has been look at your morning mover taiwan semiconductor of 5% a double be on fourth-quarter earnings, tsmc net income hit a record of 57% from a year ago due to the a.i. boom the computing division driving sales last quarter contributing to 53% on the overall revenue, the copy

so i think once the people that do these things listen to oppenheimer, citi, wolf, bernstein, deutsche bankses on servicenow, they'll understand that's a misinterpretation. liz: that's why i said straight from the horse's mouth -- >> yeah. thank you. liz: i think that really clarifies things. the agentic a.i. tools that you offer, can you put that in regular english for our investor audience? because it's better when they understand exactly what what that can do and why it's so profitable for you. >> yeah, absolutely. so let's talk real stuff here. we have been building agentic a.i. for six years. i started doing this with jensen huang in nvidia, my great friend, and we started from the gpu chip and went right to the servicenow platform. it's a gorgeous thing. he calls this the a.i. operating system for the enterprise, and that's how he runs nvidia just as an example. here's what we do. our a. agents are delivering 20% productivity increases in i.t., in hr, in customer service. and just for our company, can you imagine what it could do for the size of the u.s. government, the biggest employ

deutsche bank upping theirs from about 505 to 585.f the big stories of the day, meta's ceo, mark zuckerberg, saying his platform wills invest as much as $65 billion this yearal to expand the a.i. infrastructure. the investment will include building a 2-gigawatt data center and ramping up hiring for a.i. positions. the social networking company also announcing that it will begin limited early testing on its threads app with a handful of brands in the u.s. and japan. and we also just want to say that $65 billion blew away analyst expectations for, like, $50 billion in cap-x, so the spending continues. >>> all right. president trump may have ended those ev mandates work but one -- but one company is letting that rain on their parade. aptera sees nothing but blue skies and sunshine as it rolls out the first ever solar-powered car. we're getting a first hook with the ceo in a fox business exclusive. and people looking for more fun in the sun are heading out to the world's longest running boat show this weekend. we're taking you live to to

jonathan: deutsche bank said it early on, bank of america saying the same thing to kick off the week, crude, brent, wti rounding today. brent crude went through 81 today. up by 1.4%. wti up by 7.8. this is not just about the economic data or growth. this is about policy in washington. annmarie: sanctions. the boldest move we have seen yet on russian companies, the vessels carrying russian crude, going after two of the larger producers. it is certainly impacting. one analyst put it at potentially 800,000 barrels impacted from this. critics are saying why is the biden administration doing this now? they are heading toward the exit. you have to think they are doing it now because gas prices for the domestic consumer are no longer there problem. jonathan: that is pretty shocking stuff. annmarie: given the fact that the incoming trump administration, if they were to do a deal with putin, beaumont sanctions relief, part of any deal that he does with ukraine. to get these sanctions lifted, you cannot just go to the treasury department. one analyst was saying, they have to go to congress to g

and some analysts at deutsche bank are even suggesting it's a good buying opportunity now to tap intohares. so let me bring you back to what siemens energy now said last late, last last evening. essentially the free cash flow target might be over exceeded. and we'll know more from them when they actually report their full set of earnings for their first quarter. but also, what we know already is that they're beating expectations more or less across the board. the only small item where they don't beat is in their gamesa unit when it comes to the bottom line loss, that's a bit wider than expected. but overall, orders are stronger than expected. revenues are stronger, operating profit is stronger, so they are on a good way out of the trust they were in. but mind you, the shares had a gigantic rally last year. they are up more than 230%. last year, around the same time they were trading at around ■k714. jt to give you an idea of the dimension that the way the shares went up last year, of course a lot of bad news was priced in, and also the possibility of a state rescue was still on the ta

that is the assumption from deutsche bank.market. 9.5% of the market going back to those edicts, potentially from this new white house revoking the electric vehicle mandate. that will be top of the executive orders. good morning. jonathan: manus cranny, appreciate it. so much talk about the dream team lined up for the inauguration. a lot of pushback about that. what are they getting? what did they want? we never asked these questions of democratic donors of the last two years. lisa: practicality. if you have some voice to the ear of the president trump you have a better position for policies. that has always been the way it's worked. it is more clear, much more explicit this time around. that is what we are hearing in terms of davos. jonathan: annmarie is in washington, d.c. what is your response to some of the questions being asked about team america assembled out of silicon valley in washington, d.c.? annmarie: you can be a senate and say these are a lot of individuals who want to make sure they are close to power. they are

deutsche bank, cheaper ai means more ai. buying opportunity and not a time to panic. lisa: the reason people panicked is it because it challenges the assumption that has driven so much of this rally, that any kind of ai advancement would come on the backs of huge investment. if you undermine that, you undermine the buffalo on the plain. we get influenced by the narratives around us. this is how bubbles take shape and that fear is evading the market -- annmarie: he calls this an ai head fake. now is a buying opportunity. the president was talking about the fact this means the u.s. needs to be even more laser focused. maybe it means the united states is going to double down when it comes to investing in this space and wanting to build it out. jonathan: does it upend the narrative? you have to believe -- the capex narrative? i can't answer that question. that is one of the most important questions. lisa: the either cannot or if they try to they dispute it. we are speaking with an analyst this morning, stacy rasgon. deepseekdeep

but again, the private banks, even though you can argue deutsche bank is a quasi sovereign, at the end of the day, ecb is probably still the place you'd be most worried. european banks are paying higher dividends. they're cheaper. sap, siemens i mean, think about the industrial spot across europe, which is underperformed over the last couple of years. remember the underperformance of the mag seven, or at least the top five tech companies in the world is partially a, you know, partially at least. what was a big impact to the headwinds on investing around the world? again, there was a crowding out effect. so i like that call. i continue to think that you could look all the way back to march of last year and say semis peaked there. i mean, outside of nvidia, you could look at amd. i mean, amd has hurt a lot of investors over the last 18 months. it happens to be the a in band, by the way. so it may be a different year. but anyway, i think it's a fascinating time. >> you wanted broadening. you're getting it. >> all right. meantime, while stocks ended the month on a down note, our next guest

. >> bernstein, deutsche bank. >> goldman all. >> have buys out on the company. have consistently. >> beat expectations. >> and when you have that, sometimes the market. >> reacts a little strongly. >> if. >> they don't love the guide. but if. >> you look at. >> our ai. >> business, which is the most. >> important one to look. >> at right now. >> we have nearly. >> 1000 agentic ai customers. i grew. >> 150% quarter over quarter. and if you look. >> at customers who bought our. generative ai capabilities, they're. >> the biggest deals that. >> we've ever seen in the company. and right now. >> we. >> have a. >> company that in rpo terms, remaining. >> performance obligations. >> is almost. >> 23 billion. >> in software. >> revenue, growing at. >> 26% year. on year. >> with margins near 30%. >> and. >> free cash flow. >> margin at 31.5. >> so i. >> don't know of any other. >> software company in. >> the history of software. >> in. >> the enterprise. >> that's ever done this. >> so i knew you would say that. and the growth is there. and to be fair, a lot of the analy

rtx is up more than 1% after deutsche bank upgraded it to a buy from a hold with a target price of $140om 131. lockheed shares are slightly down after deutsche downgraded it to a hold from a buy. concerned about the long term support for the f35 strike jet fighter program. so those shares, keep those eyes on those defense stocks. for more on that, head over to cnbc.com/pro, subscribers get details from all of those analysts calls. >> did you gain any weight over the holidays? >> i did. i track it specifically like many americans do, over the year and into the new one. i have gained roughly seven pounds in just the last two and a half months. so i've got to get back on the training. >> any resolutions? what do you think we should do? >> i will always say this. it's not so much the carbs. i think i just have to eat better. when i tend to eat, i tend to eat things that i enjoy, and i enjoy them a little bit too much. so this year it's going to be a concerted effort on more fruits and vegetables. i will say it to my kids as well. >> i hate fruits and vegetables. i'm going to ask you or denn

meta, reddit and spotify higher app deutsche bank analysts named the companies as top picks and raisedify particularly saying companies with pricing power will be best positioned to pass through inflationary step up pressures there. analysts noted that ai is going to remain a theme this year. markets will eward companies that display near term returns like meta and reddit as well. turning away from technology, devin energy sup, 1%, after bernstein upgraded from out perform to a market perform, and raised the target price from 45 bucks to 43. they said they are orecasting a u.s. gas super cycle with significant power demand growth through 2030. for more on that and other key calls of the day, head to cnbc.com/pro. subscribers get full access to the detail and analysis behind the calls. keep it right here. "squawk box" continues after this break. >>> all right. still to come this morning. we have the latest on the fire conditions in los angeles, and what's expected today with the weather? >>> also, a programming note for you, the markets are closed on monday, but cnbc will be bringing yo

deutsche bank and the chief european economist with this to say. total and the fourth in quick succession. there is no reason to think the ecb will not continue to cut interest rates, at least to a neutral level, and we think below neutral by year end. i think that gives you a flavor of how different the conversation is at the ecb compared to what we heard from the federal reserve yesterday afternoon. lisa: no one is challenging why they are cutting rates. even if the inflation rate is not down to a total of 2%, as the ecb said, the economy is still facing headwinds. they still in for a long invariable lag, saying the interest rate hikes from the past are trickling through to the economy. they have negative growth in certain sectors. the u.s. is growing rapidly. the story is much less clear, even though they are a single-mandate bank. jonathan: finance conditions continue to be tight at the time where maybe you can make the argument they should not be at the european central bank. this is the complete opposite of what we heard from the federal rese

of that group, deutsche bank takes lbs for the undemanding valuation has potential to grow market share of top- notch swedes are coming online after major investment of capex. by the way, las vegas, steady eddie, and room supplies, rooms are high and onventions are solid. they do predict low single- digit growth for the strip, which would benefit the wynn resorts, mgm, and caesars. on the one thing, one game, the lions versus the 49ers on december 30, it cost fanduel $74 million. >> typically, the house is always the winner, they typically figure out what the line is supposed to be and they are good at it. what has happened? >> just luck. even the house loses. the house always wins if you keep playing. if you walk away a winner, the house loses. that's way it works out roulette and blackjack. that is the way it works for the sports books. what happened was, if you have nine different touchdown scores, and they are all favorites, everybody has bet the favorite, not only did they win, but you have the parlays that are paying off for the customer and not the sports book. parlays are one re

chatter on deutsche bank. and krishna memani.ittle birds ♪ ♪♪ ♪♪ ♪♪ ♪♪ ♪♪ ♪♪ the way i approach work post fatherhood, has really trying to understand the generation that we're building devices for. here in the comcast family, we're building an integrated in-home wifi solution for millions of families like my own. in the average household, there are dozens of connected devices. connectivity is a big part of my boys' lives. it brings people together in meaningful ways. >> will be very interesting to see what the earning points will be like. it is not great with the entire capital in seven names. >> it does accentuate the need for diversification. >> when you have leaders in technology, they tend to state leaders. >> i am not worried about valuations here. >> big tech names are not an obvious loser to me. jonathan: trying and failing to pace myself this week. it continues later today, earnings from microsoft, meta and tesla. and then the big one, the federal reserve. the federal reserve decision, chairman powell news conference 30 m

deutsch tell come in europe is doing that. in the u.s. you have bead funding to bring community to underserved communities. those are going to roll out in the middling of this year. i like the bankadministration, less regulation, tax cuts, that should really help those stocks. don't forget 2023 we had to deal with the bank failures of silicon valley bank, first republic, signature. even though the s&p is up 23% or so over the last three years, the bank etf, kbwb is down about 4% over that same period of time. the final pick is the mid cap value space because, you know, you go back to covid, a lot of infrastructure spending there. then the last two years spending on ai infrastructure and the mid cap space has just been sort of left for dead as all the money has congregated into seven stocks and so you've got mid cap, small cap value names trading at 17 to 18 times, trailing with the s&p sitting up at 25 times trailing and they've underperformed by about 35% to 49% over the last five years relative to the s&p 500 that's up 82% and just been left for dead. i think this year especially if we do get a pause in ai spending, which i expect by about midyear, i think a lot of that money