lizzy: the video posted yesterday, is it realistic what the ecb -- will be ecb hit the target this year? >> it is good to see they are confident that they can achieve it, but there is so much outside of their control will stop traders will be looking for the factors that will move them away from potentially achieving that. they are looking to stay around to percent but that looks unrealistic when you think about what is outside their control. the level of the euro currency is a function of what happens with the u.s. dollar as well, and would look at the u.s. dollar, it is so strong pushing around other currencies around the world especially the euro, which may go below parity against the dollar. that would impact the inflation outlook in the euro zone so if we see a decline in the euro, that would be a problem for the ecb because they may be reluctant to lower interest rates as quickly as the market expects. currently traders are pricing something like five interest rate cuts in a row coming from the and central bank on top of cuts we saw last year as well. if you get in a situation whe

it is good news for the ecb. we expect— it is good news for the ecb.ourse of 2025. it should not stop _ the course of 2025. it should not stop the ecb from cutting in january. not stop the ecb from cutting injanuary. champ's not stop the ecb from cutting in january. champ's tariffs on europe — in january. champ's tariffs on europe is— in january. champ's tariffs on europe is much more concerning. i europe is much more concerning. i want _ europe is much more concerning. i want to— europe is much more concerning. i want to come on to those in just a second. you test on energy there. it has been such a story of inflation. what has happened in russia has caused this in europe. in happened in russia has caused this in europe.— this in europe. in terms of the annual rate. — this in europe. in terms of the annual rate, monthly - this in europe. in terms of the annual rate, monthly energy l annual rate, monthly energy inflation _ annual rate, monthly energy inflation is about a 0%. that epic— inflation is about a 0%. that epic from _ inflation is about a 0%. t

we will be hearing from those ecb voices. we will have a great lineup of additional guests from the world economic forum in davos this hour. germany's finance minister. really interesting as we build up to that election in germany. cs venkat. that conversation coming up later this hour as well. stay tuned for all those interviews from the world economic forum. this is bloomberg. ♪ valerie: the chinese -- tom: president trump says his plan is still on the table. let's get more with haslinda amin who joins us from davos with a guest who straddles the divide. that divide has collapsed in terms of hong kong china and the relationship with the u.s.. hong kong is just another chinese city perhaps. haslinda: not really. you know that. that 10% tariffs. we have seen the impact on markets already. let's get perspective from the ceo of hong kong exchange. good to have you with us. >> good morning. haslinda: u.s. mulling 10% tariffs, way smaller than 60% but markets still not liking it. markets getting sold off in china and hong kong. h

it was still very much below that ecb target of 2%.hat is a different picture from other countries like germany or spain. some positive news. this is a bit of caution for the ecb for the next step. a slight rebound in energy prices and slight uptick in december which offset a fall in prices of manufacturing goods and food ices stabilizing. we are watching closely. still up 2.3%. overall, kind of positive news there. that may need to see the growth of 1% next year. we will wait until the next government. the new economy and finance minister giving hints where he wants the government to go. we will hear next week in the general policy speak. he said he is looking at a deficit between 5% and 5.5%. not targeting 5% like the barnier government. they want around 50 billion euro in adjustment against 60 billion targeted before targeted by barnier. they want more spending cuts and tax hikes. they want to impact businesses and households. a lot of decisions for households at the moment because of the uncertainty politically at the moment. they

coming up, traders are dialing back bets for ecb rate cuts this year.will discuss the outlook for inflation in europe and other risks ahead with swiss re cheap euro area economist ne lock in let's go. rated e for everyone. [rock and roll music playing] xfinity. made for gaming. rewards members, get early access to an ea sports fc25 kit. visit xfinity.com/rewards. ♪ >> good morning this is bloomberg to break up on, because he london these are the stories at your agenda the pentagon blacklists see atl to stay ahead in the race for supremacy, asian stocks surge in canada begins the search for a new leader after their prime minister steps down. you have optimism and our team will be interviewing him. european futures lower, solid day with s&p closing higher, ftse lower, flipped the board. money is moving, down on the benchmark, future cuts and japanese yen currently down versus the dolla, $76 a barrel. bitcoin up so far. inflation date or from the euro area, numbers remind policymakers 2% is not within reach. let's bring in bloom bugs editor zoe for a previ

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

the ecb member mr.el, the german central bank governor saying the ecb shouldn't rush into rate cuts. let's see what will happen there as we continue to also monitor what the fed policy could mean for this side of the atlantic. on the programming note, do not miss our special coverage of the inauguration as donald trump returns to the white house. it all kicks off at 2:00 p.m. london time right here on cnbc. of course, this week, all eyes on the world economic forum coverage. we start coverage tomorrow. do not miss that special coverage. that is it for today's i'm silvia amaro. stay with cnbc. (auctioneer) let's start the bidding at 5 million dollars. thank you, sir. (man) these people of privilege... hoarding the financial advantages for far too long. (auctioneer) 7.5 at the back. (man) look at them — unaware that robinhood gold members now enjoy the vip treatment — a 3% ira match on retirement contributions. (auctioneer) 11 million sir. (man) once they discover their privileges are no longer exclusive.

monday, remarks from ecb president christine bogard and earnings.yal caribbean on starbucks. more of a read into the consumer. wednesday i said rate is instead at a press conference from chairman powell and big tech earnings kickoff. hard to know which will have a bigger impact on the market. it may be technology this time. thursday morning -- earnings from apple, intel, visa and others and and ecb rate decision. finally pce data and earnings with exxon mobil, samsung, and novartis. a slight tick up in court pce for the month of december showing an acceleration from the month before and validating the feds more cautious approach to further interest-rate cuts. looking at those estimates court pce year-over-year expected to stay roughly flat but pce month over month expected to show a rise of .3% versus .1% prior. looking at markets right now, as we head out of the final week of the year we are looking of course at an s&p 500 that has had its best run since the 80's for presidential administration in its first week. looks like the bond market is behav

no, ecb rate cuts will not be enough to bring the economy back to trend growth or above that. said that, southern europe especially, are growing nicely. the ecb rate cuts last year will help, but we need political signals from germany and france to really get the economy going again. in addition, china were to add more stimulus, that would also help. >> when you think about france, i'm glad you brought up the issue there. we heard from the president macron actually say the calling for a snap election created more division than bringing solutions. should we, at this point, actually forget to some extent what france is likely to do at the european level because it seems that the president is actually quite weak at this stage and when you think about the fact that we actually need a little bit more french input to see significant policies at the eu level, it seems we are lacking that. explain to us the lack of leadership in france and what it means for european policy. >> macron has now admitted he called for a snap election was a mistake. still europe can make progress if france

breaking news crossing the terminal from the ecb. rate cut in january not a foregone conclusion according to robert holzmann on the governing council. he says the ecb risks credibility cutting rates when cpi is rising. this, as attention turns towards growth, the risks likely to be highlighted in the pmi numbers later in the week for the euro area expected to still be in contraction territory. off the back of these lines, this interview with politico, we have euro-dollar currently stronger 0.3% at 1.03 handle. we keep an eye on that as we head towards the ecb meeting towards the end of the month in frankfurt, of course. let's get back to the sofa media story developing over the weekend. social media app tiktok restoring service in the u.s. after briefly going dark to comply with that supreme court ruling. the reprieve came after president-elect donald trump promised an executive order giving three more months to find an american buyer for the platform. our chief north asian correspondent stephen engle has been across the story. trump

102 euro-dollar and checking in terms of traders pricing around the ecb through this year. expectations you are going to get around 87. 91 basis points of cuts between now and the end of this year so still expecting as rates moderate in terms of expectations around the fed and the boe, the ecb is still fully expected to be on a cutting cycle. and we got a reminder of that from them saying that about inflation pressures a good oil prove a challenge to that trajectory, hitting its highest in more than four months after the u.s. announced fresh sanctions on russia's energy industry. let's bring in stephen. talk us through the impact these sanctions have had on the global oil markets, the details, why are they proving significant? >> this is the first time the biden administration as their last sort of act is putting real sanctions across the board on russian oil. they have hit the insurance companies, two companies that handled 30% of the crude that comes out of russia and 150 oil tankers, much larger than the packages they have done and it will make it more difficult for russ

and in davos, blackrock's larry fink, the ecb president christine lagarde and others, they speak with cnbc on everything from the global outlook to the impact of who else, donald trump. it is friday, january the 24th, 2025. you're watching worldwide exchange. good morning. thanks so much for being here with us. i'm frank holland. hope your friday morning is getting off to a great start. let's get you ready for the day ahead. we begin with a check of u.s. stock futures after the s&p closed at its first all time high of 2025. the nasdaq and the dow just near a percent of new close to new highs. yesterday's upside moves coming after the president's comments on u.s. tax cuts and central banks at the world economic forum in davos. >> i'll demand that interest rates drop immediately. and likewise, they should be dropping all over the world. interest rates should follow us. >> and taking a look at futures this morning again after the s&p closed at a record high, we're seeing a very slight pullback in all three indices. all three down fractionally. the dow down just about 50 points right now.

i will say euro down to parity down to one will be the next step. >> i do want to talk ecb, but i'lleave that for a little bit later. in terms of oil prices, we see them moving slightly higher today. 2024 was not a strong year for oil prices. what do you think 2025 will have on hold? >> clearly, if you think about china trying to pivot its transport sector into evs, 50% of all new cars sold are evs. china is the largest oil importer in the world. 60% of the oil demand came from china. 6 out of 10. if china is pivoting into evs and producing that energy domestically in home, they will go an oil oversupply and demand will be weak. it is not already in peak oil demand in china. so, global activity is slowing. the largest oil importer not needing oil. we are clearly moving to an oil oversupply balance. the recent news is probably pertaining to finland grabbing a tanker off the coast between finland and estonia which was a dark fleet russian tanker. there is some if nato tries to block some of the balance coming out of russian exports. at the moment, yeah, we think oil is going to be an o

of bond investors trying to gest what's happening stateside and the controversial comment from the ecbfficial with the contrary yan view from what we heard from one of his colleagues yesterday. let's discuss all of this with lindsey james at quilter. lindsey, good morning. good to have you on the show. >> good morning. >> there's a lot we could talk about, but i would like to focus first on this recent increase in bond yields. we are seeing a little bit of a softer approach today, but nonetheless, how much do you think this will actually be driving the market narrative in 2025? >> well, i think it's the most important question on investors lips at the moment and that's partly because the start to the year we've actually seen, we've had weak equity markets in the round. we've seen a lot of attention, particularly on gilt yields. rachel reeves has been lambasted to go to china on longer trade deelsz. deals. there is a case the media is smelling blood. there is more talk, of course, about tax rises. tax rises got us into the situation in the first place. so, i don't think we'll see the st

. >> it is definitely a different comment from ecb officials.e we look at european debt markets, i also like to understand your thoughts regarding the outlook from the u.s. market. you have to put in context the upcoming presidency of donald trump and higher inflation from that. how big of a threat, let's say, is that inflation pressure from the political point of view for the fed? >> if we focus on the policy impact, we know the general trend, but we don't know the shape. if we look back to history and focused on a policy which is very stimulative for business, then that should be good for growth. equally that brings inflation. the real wild card is what happens on the tariffs where it's likely to be a one-time increase in inflation and we think that central bankers will look through that. absolutely we're in a period of elevated uncertainty and that's really causing some of the concerns that we see in bond as well as equity markets. if you think what most investors want, they want clarity at the moment. there is a lack of that across regions.

markets expecting 100 basis points of cuts for the ecb by the end of this year. thursday, a very different inflation dynamic with policymakers wanting to see an increase in inflation where pricing has been challenged in on friday it is u.s. nonfarm payrolls. unemployment around 4.2% and austria's far-right leader gets a chance to form a government, the latest on the developing situation in vienna next. we will bring you the details. this is bloomberg. ♪ >>. welcome back to daybreak europe. austria's freedom party is creeping closer to appointing its first chancellor after receiving an invitation by the president to discuss forming a government after efforts to form a centrist coalition collapsed when the conservative chancellor resigned. more with oliver crook. what is the latest in terms of the politics on the ground in vienna and how did we get to what could be a pretty historic moment for austria? >> absolutely. remember this is an election that took place in september and the winning party was this freedom party. they won the greatest number of votes but were

the labour mp earlier called the ecb's position "spineless, slippery and morally wrong".y gave to me was the one that we want out to the media. i felt it was non—committal, it didn't show any kind of backbone. i do stand by what i said earlier. i also understand the context in which he's dealing with it. i still think they should be seriously considering a boycott. i made my views clear to him and then he — they made their views very clear about what the consequences of doing such a thing would be. this competition hasn't been around for the last eight years. it happens to be a very big deal for people in pakistan, the pakistani government. i understand the geopolitics of it. there's a wider and bigger issue around women and girls in sport and some afghanistan. and in afghanistan. if our women cricket players from afghanistan are now living in exile, and most of the men's team are, surely there's something wrong there. staying with cricket, sir clive lloyd, the former west indies captain, says he's very disturbed by reports of a new two—tier system for international test

on the hawkish end, holzman suggesting there can be patience from the ecb. $78 a barrel on brent. there is a report suggesting inventory buildup is there now in the u.s., oil prices down 0.3%. and gold holding around levels we've not seen since the end of last year, down a 10th of a percent, but holding above levels as expectations build that there is further to run, the tariff threat is building into positioning around the yellow metal on some reports. let's get more of the asian market view with interesting lines in terms of the measures coming through for the insurance sector and state owned enterprises in china to buy more domestic stocks. avril hong in singapore for the details on that story then. avril: just in the past day, you saw how sensitive chinese stocks are to any of these trump headlines. markets are focused today on this big briefing. that included the chairman of the securities regulator for measures to support equities. what we got was how they are going to be encouraging mutual funds, insurers among other measures, to invest into onshore stock markets. but beyon

we heard from one ecb official over the weekend saying they actually do not want rates to remain too high for too long. so, we are likely to see here further disparty, frank, with what the ecb is doing and saying and what the fed might be doing this year as well. >> silvia, thank you very much. silvia amaro live in london. >>> time for the check of the top corporate stories including mark zuckerberg calling out apple and tim cook. silvana henao is here with that. silvana, good morning. >> good morning, frank. that is right. speaking on the joe rogan experience, zuckerberg said app apple hasn't invented anything great and now sitting on it 20 years later. listen in. >> they are not on their game in releasing many innovative things -- the good news is the tech industry is super die that many dynamic. if you don't do a good job, you will get beat by someone. >> zuckerberg added if apple stopped applying the ndom rules, meta stock would double. >>> and johnson & johnson looking to buy intracellular. the deal could come as soon as this week. intracellular focuses on nervous system disorde

we are looking for sizable ecb rate cuts.ink they are going to take the policy rate down to 1.5% by next year. depending on the posture of trump's policies you could get something even lower than that. scarlet: are we going to see euro-dollar parity? robert: we are not that far off right now. we are at pretty levels for euro-dollar right now, and i think our base case is that these policies at up to a stronger dollar for the u.s. line you could see the euro go lower in that environment. scarlet: speaking of currencies on a downward spiral, two to three weeks ago brazil was a mess. the currency was tanking and investors were dumping presenting assets because of the deficit spending and concerned about this wider fiscal crisis. i feel like the temperature has cooled. where do we stand? is it still in crisis mode? robert: i think the temperatures have cooled and brazil is in an interesting spot economically. it is an economy that the central bank hiked to early in the cycle, they started to cut, and then they found the economy a

it produces a quagmire that the bank of england and ecb are inflation -- are facing.on is proving to be sticky and can limit how much they can cut rates. jonathan: cable, the pound, a better against the u.s. dollar. in the last 24 hours everything was doing better against the u.s. dollar after that report suggesting donald trump suggesting watering down a universal tariff. donald trump pushing back quickly. euro-dollar at 104. positioning and how low the boat was to one side on that release. lisa: as we talked about, we will get a whipsaw. that headline says this over truth posting that says it's not true. the point is there is a lot of hope we can unlock a dollar weakness and strength elsewhere. you see that in the equity indexes in europe. the hope that maybe the pessimism has been priced in and how little it will take. jonathan: not much needs to go right to trigger a big move in the opposite direction where positioning is lopsided like it has been building over the last month. euro-dollar at 104.08. nvidia's ceo unveiling new products at the ces trade show. the li

the labour mp earlier called the ecb's position "spineless, slippery and morally wrong".out to the media. i just felt it was noncommittal, ijust felt it was noncommittal, it did not show any backbone, so i do stand by what i said earlier. but also, i undressed, and —— understand the context in which she's dealing with it. i still think that they should be seriously considering a boycott. i made my views clear to him and then he, obviously, they made their views very clear about what the consequences of doing such a thing would be. this competition hasn't been around for the last eight years. it happens to be a very big deal for people in pakistan, for the pakistani government, so i understand the geopolitics of it. but there's also a wider and bigger issue around women and girls in sport and in afghanistan. and that is what... if there are women cricket players from afghanistan and now living in exile and most of the men's team are, surely there is something wrong there. introducing a two—tier system to the world test cricket championship would be " terrible" and "must be

it's been very much linked to some extent, policy vacuum, where i think both the ecb is constrained by services inflation. as you get closer to the german elections. as you get closer to the french elections, there might be a bit more policy, and we want to be very careful going into that. our economists remain skeptical that europe manages to generate a huge policy response, that will allow it to come seek growth accelerate material. there's no rush. so we are, at this point, watching very carefully. it's been working. it's been working a bit too well. it clearly could mean that europe does out perform a bit, less because of europe and things going well, more because the u.s. doing a bit poorly, because of higher rates. it's not a good narrative to necessarily by europe. it's narrative to trim the u.s., the equity risk, that's what we've been recommending. >> i want to say on europe, before we discuss this in detail, i want to share breaking news. the former foreign minister is becoming the interim austrian chancellor. schallenberg has been in politics for a long time. i had a chance

the last couple of days, the upcoming game, the championship trophy in 26 february, i met with the ecb, we are calling for the games to be boycotted. and also this year to play. i also would like to thank the prime minister for his intervention with the international cricket but would he agree to talk in south africa and australia across the games as well. >> and appalling erosion of the rights of women and girls in afghanistan, we all should condemn suppression of freedom in the strongest terms and that is why we provide additionally, in touch with this issue. i welcome them making strong representations in the international cricket counsel, all of afghanistan. >> the matter of this, the opposition amendments sets out clearly while the bill is so deeply flawed. we have to be completely rewritten. mr. speaker, the prime minister made much of his service as public prosecutor so we tell the house in that capacity why during this time he declined to insta kate a prosecution for sexual abuse. >> that case never crossed my desk.

ecb bands and the crowds, all of this as and the crowds, all of this as a prelude to the moving of formergton, dc, and the beginnings of thatjourney start in about 15 minutes. you can see some of the bands in place, the family there. we will continue to keep an eye and return to this in the coming minutes, those are the life pictures coming in to us from atlanta. another thing we are keeping an eye on is we are expecting a news conference from donald trump. and today the us president—elect has asked a new court to throughout his convictions on criminal charges stemming from that hush money payment to a pawn star and to dismiss the case before his scheduled sentencing on friday. we will keep an eye on what he says the next little while. you are watching bbc news. let's return to georgia because the state funeral of the former us presidentjimmy carter continues today as the coffin bearing the late president travels to washington, dc to lie in state at the capital rotunda. since sunday president carter has been lying in repose at the carter centre in atlanta for the public to pay their respe

meanwhile, you know, you also have around the world, i mean, the ecb, i just want to point out there's a lot of folks in, in at least in the futures markets, are betting on a 50 basis point cut by the ecb sometime soon. so the dynamics here in terms of what central banks are doing and the impact and some of those differentials, i don't know if it's going to help the cause in the us. i actually think it could. >> push treasury rates higher. >> we're going. >> to see, i. >> think, february 4th, how the. >> fed how the treasury. >> department is funding all. >> of this. >> and the front. >> end of the curve is so much deeper. so you can place a lot more. >> money, but. >> more risk. >> yeah. i mean, what this seems to underscore is that we don't really know the net effect of his policies. there are pushes and pulls right in both directions. and that's sort of the regime, the volatility regime that we will live in for the time being. >> yeah i mean i. >> think there's a. >> scenario i think. >> the bond market. >> is going. >> to. >> challenge this administration. when i say that, i think

>> of course i this morning with a high profile panel moderated by our own sara eisen, ecb presidentl as saudi arabia's 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 w

sacÓ sus canciones, estuvo relajado ecb hermosa y muy guapa y talentosa.os ha dado esperanza a nosotros, pero a mi hija le he dado vida. entrevistada 2: gracias a saint jude mi hija está libre del cáncer. presentador: nuestro propósito nos une a todos. dona ahora mismo. ♪today my friend you did it, you did it♪ busca un mejor tú con centrum. ♪♪ una pequeña victoria para cuidar de tu salud. ♪♪ y este año podrás decir... ♪you did it!♪ ♪♪ ♪♪ ♪♪ una orden de chewy está en camino para cash. el empleado favorito de la bodega de juan. juan usa chewy para comprarle a cash su comida favorita. a precios que juan adora. bajos precios para la vida con mascotas. chewy. (vo) algo que pasa al viajar con niños, es que cada año crecen... y crecen... pero el hotel se quede igualito. mejor un airbnb. mejor mas espacio. ♪ es noticia. durante en un minuto te cuento lo que es noticia. durante la madrugada, un condctor a mac:en un minuto te cuento lo que es noticia, una camioneta se estrello intencionalmente, el sospecho estÁ muerto. vuelve el servicio elÉctrico a puerto rico tra

jane: the market has already priced in a lot from the ecb.'s enough ammunition in the euro. we have seen a little bit of that today. the market would have to take out some of that pricing in of rate cuts and that could strengthen the euro. we are not calling the move below parity at least at this moment. they are nearly there in terms of the battle against inflation in europe. not quite. there are still those resilient uncertainties that we need to get through first. if that happens we start to talk very seriously about sustained parity. jonathan: how much control does the european continent have over its own destiny at the moment? jane: at the moment, we are lacking strong leadership in many parts of europe, it is slightly reduced. tariffs is a big threat to european trade and therefore we have strong leadership in the u.s. in the form of trump and his tariffs. weak leadership in germany, very weak leadership in france. that is a concern. the far right in austria is pro-russia. we have the ukraine war on the doorstep in europe. at a time whe

scott: i think bank of canada and ecb can cut, because the canadians and the europeans exercise some level of fiscal prudence. they are not two-footed driving. there is a natural economic cycle, and jay powell has been easing, for whatever reason, he felt compelled to ease financial conditions last fall, after the fomc meetings in november and december. the statements were very anodyne, and he walked out at a press conference and gave very dovish guidance of rate hike, rate cuts are coming and a massive ease of financial conditions. by doing that, what happened? he pushed up the stock market, which benefits the top 20%, and then we are back to the bottom 50% who don't own assets, they have debt, so rates have had to stay higher for longer. i actually think that he has hurt biden's chances by reigniting inflation, pushing economic growth, re-accelerating economic growth, when it could have been slowing. and i think they could have been cutting rates, but they are not. and i would also predict that it won't be a slowdown in inflation that causes rates to get cut. i think it will be an

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

long term inflation expectations we think the bank of england is spaced it with the activists with the ecbather than what the fed are doing. there's no need for them to look at what jay powell and had fed are doing. the economics are so stark christine lagarde has been focused on growth. whereas 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. t

the second thing that is different, we have madame lagarde in ecb. [laughter] [applause] >> larry, i keep reading headlines, "larry is worried about inflation." why? >> i'm not terribly worried. >> do you think the market is being too complacent? >> the bond market is the best reflection of what is going on. it is a barometer for every politician, for every central bank. it informs us every day where the mood of the global economy. i believe the bond market is indicating that inflation may be higher than we think. the genie may be coming out of the bottle. i look at this in so many different ways. if you just think about ai for a moment and the united states right now, data centers are about to gigawatts of power. in the united states, we are estimating alone data centers represent a need 300 gigawatts of power in the next five years to meet the needs. if we are talking about -- if you expand that throughout the world, this is my optimism about growth, but at the same time, we actually are going to have labor shortages which is going to be driving up

prices in a moment you overall, maria, we have a story where, you also had a poll about rate tax cuts by ecbght be different. maria: a tumbling unexpectedly in contraction on fed survey thoughts on cpi. >> in line i think market again moved up, to about 3/10 on core a positive surprise when it comes to core print i think the fact that oer stayed light 3/10 is very important got market super excited last month a hot print on core but ier only 23 basis points this is thing that needs to come down if getting this memberingal core in inflation x shelter cpi analyzing 0.9% six months to november the shelter pieces down below fed target quickly, again, borrowing from near-term tariff risks lift praises over a very short window three to six months still on general memberingal slowdown cpi shelter is behaving market is going to latch on. >> federal reserve has been able to conduct soft landing everybody was questioning whether or not fed would do it look at this market, that is certainly looks like how investors are viewing it dow industrials up 537 points right now nasdaq up 320, adam jaings. adam:

policymakers with the e ister and the imf deputy and do not miss our exclusive conversation with the ecbhristine lagarde live at 8:10 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 "world

if that data point magically changed, could that mean that ecb is behind the curve with rate cuts. >> with ifs you cannot predict anything. yeah. and our focus and capacity is now significantly improved and we've had, you know, regular repeated forecast in terms of inflation. and we have not revisited forecast very much in the last i don't know -- five set of projections so we are more confident. but 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 and, you know, our target is 2%. medium term sustainable and we want it to be sustainable and i think that we are well positioned for that at the moment. >> you have been listening to karen cho's exclusive weighing in on the outlook for europe and the global macroeconomic picture for 2025. let's continue the conversation here in davos. greg case is the ceo of aeon and joins me around the desk. welcome to the program. great to see you today. >> great to be with you. thanks for having me. >> threat talk about the macroeconomic and business outlook for 2025.

yes, that could be telling you about how the fed is meeting, how the ecb is meeting, meeting later this week, how investors are also tracking earnings. but no doubt the deep six is the main story today. investors assessing concerns here about what their announcements could mean for the big tech players. because at this stage what we are looking at is perhaps having an ai solution here that is cheaper to build and also quicker to build. there's also question marks about we don't know yet what sort of chips actually deep seac has been using, but there is a question mark here about whether they actually manage to overcome some of the chip restrictions from. the united states. we'll be discussing this story, this story in detail across the show, so stay tuned. in the meantime, let me show you how the different bourses are also faring. so we get a better idea of what's happening on the european continent today. we have significant pressure. over in germany, the dax is down by more than 1%. the hunt. it is also lower by about 9/10 of a percent. this actually the hunt was the outperformer last

how confident are you the ecb is able to thread this needle of fighting what you need as the potential for upside inflation while also supporting an economy that a lot of news has been baked in that is bad but it does not look very good. geoff: to be frank the pivot opportunity was last year when they could have escalated or strengthened their easing. if they did not do that last year where the pmi's were given how things seem to be stabilizing, that less bad narrative, we will get a new german government coming through. france seems to have stabilized for now. if that investment narrative from the mario draghi report comes through i do not think the ecb will change its language. given my euro-dollar view it is more the fed pulling back from its rate cut at various points last year. that is what is driving things right now. i look at our flow data, you are positioning to the short is very extreme right now. if we go through parity and have a look at fundamentals, assuming no geopolitical shocks, looking to stabilization from there and see how growth performs but still on a net-net basi

just quickly, can i squeeze in a question around energy prices in europe because madame lagarde, the ecb, yesterday they were watching energy prices. is the central bank going to be spooked by energy prices in europe in 2025? >> i mean, europe has has done a tremendous job at averting the crisis because germany was able to build lng terminals at pace and then supply from the us has come at pace. there's a huge number of plants being built in the in the in the us, those have been frozen. now i think it will be open again. so i imagine the lng supply to europe will will be in place. it's a question of price. but but also the us gas is plentiful, so i don't think the price is going to move very much. for europe it's about $14 an m so i don't see much of a crisis. obviously we had 100. we had 15 bcm blocked off from russia, but that's relatively small in terms of number of cargoes that can be brought into europe. >> i think half the governing council have just breathed a sigh of relief. then. you know, we've got to leave it there. lovely to see you. thank you very. >> much indeed for your ti

be mentioning to you how we had a couple of economic data releases today, how we're heading into an ecb rate decision later this week. but no doubt that the main focus for european investors is also the deep sea story. let me show you what i'm talking about. we have read across all of the major european bourses. in fact, the benchmark is actually on track to see its worst day since october. let me take you to the different sectors so you get a better picture of what's happening here in europe. at the top we have telecoms, but let me show you the worst performing sectors because it is there where we are seeing the more the most important market story today, looking at the worst performing sectors, the pressure today, it is clearly on the tech sector. we are down more than 5% at this stage. for european tech names, those concerns around the deep sea, what they are and what their developments could mean for the broader sector is the main story today. let me show you in detail the european chip makers, because it is clear that this is front and center for european investors. today we have a

would call china a trade, not an investmen, because i think tariffs astion o the degree, you know, the ecb, the european central bank will probably cut rates next week. so there are some reasons why some of the overseas stocks could have some legs for a few weeks. again, i just i wouldn't count on it to be the trade of 2025. i'd still be happier in the us. okay. >> coming up, novo nordisk shares surging on brand new weight loss drug trial data. the skinny on whether the biotech stocks latest effort could tip the scales in the obesity drug war next. plus, the crypto craze scores one against the sec inside a major rule change that could transform the industry right after this. >> this is fast money with melissa lee right here on cnbc. >> bitcoin is the best. >> performing asset, but. >> its volatility has kept many on the sidelines until now. introducing the world's. >> first 100%. >> downside protected bitcoin etf capture bitcoin's upside potential while staying protected. asset management at a time of disruptive change. calamos today for tomorrow. >> across the globe, industries are. trans

the ecb will lower rates.om the perspective of more bank lending that we see in the u.s., mortgages that are variable or fixed for a shorter period, you can see a nice tailwind. it is harder to see it sometimes in the u.s. given interest rate sensitivity. you could have a scenario where the administration does want to be tough on china but is willing to make deals with europe, canada, mexico. if you have any area of trade policy that is tough on chinese autos, that would be a huge tailwind for europe. add one more perspective. we have spent an enormous meta-consumer savings in the u.s. that has been great for our economy. europe hasn't. there is room for that if you can drum up enough confidence. jonathan: confidence rock-bottom at the moment. lisa: that is the hope that maybe we aren't rock-bottom. maybe there will be a washout. suddenly yet for patients are so low any positive surprise, what a great thing. jonathan: meera pandit of j.p. morgan asset management. in europe, i'm reluctant -- i'm surprised how r

the ecb in the last hour or so, a discussion about deeper rate cuts.ion. that unlocks just a bit of your weakness. euro-dollar down by .2%. up next, the economic data from new york city. this is bloomberg. ♪ jonathan: the next stop for this market, the economic data is moments away. u.s. retail sales and jobless claims as well. here are the scores. equity futures on the s&p just about unchanged. with your economic data, let's get to michael mckee. mike: looks like we had a good retail month, but not a great one. month a very strong retails number. x autos and gas .3%. there is a very big gasoline component. the retail sales control group does save the holiday season up .7% compared with .4% and .4% estimate. the stuff that goes into gdp is the stuff that did well. we will get that data in a second. import prices were up .10% and x petroleum up point 2%. buried in there somewhere is international airfares. those are something that contributes to the pce. we saw a big rise in airfares. this will show us whether or not the pce comes in softer or harder. f

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