Its chinamade model 3 just a year after they broke ground teheran condemns what it calls terrorist attacks on iranallied militia. We continue to demand the Islamic Republic iran act consistent in a wi i laid back in may 2018 for what it is we expect iran to do so it can rejoin the community of nations. So lets take a look at the European Markets now that they had a bit of time to warm up, although warming up is the opposite of whats going on here because they are cooling down. Nikkei down 2 ftse mib in italy down and germany down by 4. 5 its been a very good year for all of these markets year to date lets take a look at how the overnight action was while we were all fast c markets. Im looking in the correct perspective now. The nikkei 225 did finish down but has closed for the year. Year to date its tally was up by 18 . The shanghai composite was the stand out performer for the asia pacific markets up over the past ten years down by just over 7 the hang seng in Congress Hong was an underperformer because of the political unrest thats been going on and continuing to go on in hong kong but the hang seng was up by. 3 of 1 . Joumanna over to you trade tensions may once again play a major role in Global Markets this coming year with emerging markets and europe taking center stage. Cnbc makes three predictions for 2020 global stocks rebound, europe goes east and china launches a Digital Currency here are thee predictions for Global Markets in 2020 first, investors pivot to emerging markets u. S. Stocks outperformed most International Markets in 2019 but strategists are betting a handful of emerging markets have been unveiling stimulus measures to boost their economic levels despite warnings from the u. S. That huawei uses back doors to spy on customers, they will lean on the broad band. Third, china goes digital. Officials in beijing hinted in recent months that central bank is launching a digital version of the currency while the country is already on its way to becoming a clashless society, a Digital Currency could dramatically change the way consumers purchase goods putting pressure on u. S. One of the other big developments to look forward to in 2020 is a new leader at the helm of the ecb Christine Lagarde kicked off her ten year by Holding Europe ultd tra rate policy committing some of the policies of mario draghi, she was more up beat on the economy and indicated she would take a broader approach at reassessing the banks role in general after inheriting a publicly divided board of governs, one of the first orders of business for the new regime was promoting Team Building and setting the tone for a more inclusive process in the future. Speaking at her first policy meeting in december, she looked to give the market an indication of what to expect from her tenure. Neither dove nor a hawk and my ambition is to be this ole that is often associated with a little bit of wisdom im not full of vanity but i will certainly try to bring the best out of members of my governing council in order to arrive at Monetary Policy decisions and use instruments that will be as consensual as possible. Lets bring in founder and chief economist at advisers. Im sure you watched the december meeting, her first meeting as president my take away and many other people shared this she is clearly respecting the decisions of the past but wants to also exert her own flavor, ore own stamp on the ecb in the future, perhaps move towards more Team Building to quote her, to quote the lady herself can she . Yeah, i think she can she has huge experience, and she knows european leaders very well so she can actually deal with these people in a very effective way, in my view. So there will be a change in communication, for sure. Probably she will do a good job in actually communicating with general public but i think the underlying issues are much deeper first of all, what links somewhat higher wages to inflation . Have we seen any kind of structural change in this secon shocks that we have seen in the past, trade wars and so forth r structural and how much of that is cyclical. That is a big question mark. Third, how much help lagarde will have from fiscal policy and finally Financial Stability. Such low Interest Rates globally and especially in the eurozone, this would inevitably lead to some risks for Financial Stability. How lagarde will deal with this is the key for 2020. A lot of elements to pick up on that. Boy, she has a hard job ahead of her. Given her experience in the political sphere, how much success do you think shell have in convincing the German Government to do a little more heavy lifting on the fiscal side something is already happening. The big question mark is how big and how structural in the sense that, you know, polling 1 or 2 gdp in europe would not change the picture, would not be enough to change completely the story what looks like at the moment is at the margin the German Government is going to deliver, but certainly not in a big way and certainly not enough to change the outlook for Monetary Policy as a compliment to fiscal policy. What would need to happen to change the outlook for Monetary Policy. I think you would have a strong signal by finance minister saying, okay, wove a very low Interest Rate environment. This is the time to invest for the future, not just Green InvestmentGreen Investment are fine, but its not just Green Investment lets be a little bit more lenient on the fiscal side but only for structural investments, things that can enhance structurally. Thats more a question for europe than ecb. They can talk about it and something that mario draghi talked about a lot but the onus is on the politicians. I want to take it back to the tone of this incoming ecb. We had new members as well join the gc its not just the president thats been changed. The expectation out there because she will look for more consensus and the germans, the dutch, the austrians, people very vocal around this, she will have to shift towards a less dovish stance than mario draghi did in the past. Christine lagarde will want to get the consensus and when such a big part of the committee are still quite hawkish it means overall their stance has to be more hawkish than what it has in the past. What you said is reasonable but remains to be seen the path for Monetary Policy has been set by mario draghi keep in mind that the governing council so it would be surprising to see major changes. Its absolutely true theres been a change in leadership. Theres been a change in the committee of the ecb, so things will change over time. Of course will change. I think in the near term things are unlikely to change dramatically you are absolutely right that there will be a different style. There will be more consensual decisionmaking process. At the same time, i think the decision to go for strategy review basically raises the bar. So it becomes more difficult to change policy without the outcome of the strategy view which we already know wont be available before the end of this year so basically, i think in a way Monetary Policy is on hold unless you have major shocks, probablynge dramatic policy during the course of the year. Do you expect a major shock over the next year its possible the trade wars are still very much open in my view, first of all. So we will have to see how this will unfold and at what kind of impact we have on the eurozone economy. Secondly, as i mentioned, lets see what policymakers will do in terms of fiscal policy third, Financial Stability might become a major issue during the course of the year. Theres been a lot of talk about changing the wording around inflation, as it stands, the ecb have inflation target of close but below 2 theres been talk of them moving it to a se metric target, indicating they would be happy with an overchute than an underchute how significant woild thuld tha . I think it would be significant. One is the inflation target and second assessing the tools on the inflation targ, my feeling is that the ecb would be better advised to go for semiet rick target, thats at least my view they already tried to move in that direction and there has been already effectively a change in the definition of inflation target i think they will move in that direction. The ideal situation in my view would be point estimate for the target, so say 2 and no kind of inflation bend or no clear definition but say we want to maintain 2 in a semiet rick way. That gives a lot of flexibility to the ecb and maintains credibility which is key. Thats key. Well pick up the conversation in the next half. Founder and chief economist at lcm macro advisers. Tesla started delivering model 3 cars made at its factory in china coming a year after construction began on the 2 billion site the electric car maker originally planned to role out the cars in the plant in late january. They expect to increase deliveries next month. They discovered fraudulent activity at a plant in thailand. The eye ware group said theyre taking all possible actions to recover the funds. This stock is down about 2 on that but still up about 23 this year. Its been a good year for luxury as we have been discussing on the show. Well, we have discussed a host of different topics the last couple hours, mandy and i you want to get involved in the conversation follow us or tweet us a streetsignscnbc get involved. We want to hear from you. Ive been a lazy tweeter. My 2020 new years resolution is picking up on twitter. Im picking up your slack dont worry. Coming up on the show, antieu parties made major gains in italy over the past two years, however the countrys former Prime Minister renzi said just last months relations with the continent are looking up find out why next. Tom my mom always told me actions speak louder than words. She was a school teacher. My dad joined the navy and helped prosecute the nazis in nuremberg. Their values are why i walked away from my business, took the giving pledge to give my money to good causes, and why i spent the last ten years fighting corporate insiders who put profits over people. Im tom steyer, and i approve this message. Because, right now, America Needs more than words. We need action. I spent two years alone and homeless. Announcer as americas veterans face challenges, dav is there. Man 1 my victory was finding the support to get back on my feet. Announcer dav helps veterans of every generation get the benefits theyve earned. Man 2 im a veteran. When i got out, i felt like nowhere was safe. Announcer so veterans can reach victories great and small. Man 2 my victory was finding the help i needed. Announcer support more victories for veterans. Go to dav. Org some things are too important to do yourself. Get customized security with 24 7 monitoring from xfinity home. Awarded the best professionally installed system by cnet. Simple. Easy. Awesome. Call, click or visit a store today. Welcome back to street signs. U. S. Defense secretary mark esper has described air strikes on locations in iraq and syria as successful. The attacks were launched on sunday and targeted five weapons and ammunitions depots linked to iran its unclear if anyone was kill ord injured in the asaults irans foreign minister condemned the strikes quoting them as a, quote, clear example of terrorism the raid comes after a number of rocket attacks against american supported coalition bases in recent months. U. S. Secretary of state mike pompeo said washington took toox protect americans. The attacks that took place against iraqi facility threatened American Forces this has been going on now for weeks and weeks and weeks. This wasnt the first set of attacks against this particular ra iraqi facility and others. We took a decisive response that makes clear what President Trump has said for months age months and months u. S. Defense secretary mark esper did not rule out further military action. The targets we attacked included three targets in western iraq and two targets in Eastern Syria that were either command control facilities or weapons cachets for hezbollah. Strikes were successful. The aircraft returned back to base safely. I would add that in our discussion today with the president , we discussed with him other options that are available. And i would note also that we will take additional actions as necessary to ensure that we act in our own self defense and deter further bad behavior from militia groups or from iran. Towards the end of january, the Italian Government will face a key election test. A strong result could return salvini to the forefront of italian politics after he was ousted from the government by a surprise coalition between the five star and pd parties earlier in 2019. Speaking to cnbc in london in november the former Prime Minister renzi said he was confident the Italian Economy was improving and that relations with brussels was on the mend. This year is a good year for the discussion between europe and italy. One year ago you remember a lot of tension a lot of troubles now the situation is under control and i think there are two points the first is stop to increase taxation the previous government prepared and this goal was achieved so we did agreement of the european union, italian citizens dont have an increase in taxation very important first step. As italy, we need a more step, very important a great plan for infrastructure because with my government we arrive to plus 1. 7 of gdp but then we come back to zero. The forecast of 0. 2, 0. 3, 0. 1 our grksz dp not sufficient. Our proposal as member of parliament is great plan for shock infrastructure because its the only way to come back to growth. But where should that money come from . I think there is the possibility to have a shock plan for infrastructure respecting the deficit rules also because there are a lot of investment in the budget law, in the previous budget law and today and there are a lot of private funds ready to invest in infrastructure also, because this is a very strange time because we have negative tax i think there is a great possibility for the people invest in italian titles but also in italian infrastructure this is the problem in our country. The lack of stability. And we need this is the point. For this case, there is not a problem of money there is a problem of bureaucracy if we unblock these great problem of bureaucracy, i think italy could become particularly attractive to the people who want to invest in infrastructure italy is rich of possibilities also for the gap, for the im sure private equity players would love the opportunity to invest money in italy when it comes to those kind of schemes. But let me also focus on the stability of the government because the president came out i think some days ago according to media reports that he would call new elections in case the government, the current government, would be inherently instable so would you be in favor of new elections . Its not easy for me to speak about instability of Italian Government because we change the government in 73 years and i lost my job because i tried with the referendum. And i received a lot of criticism, five years of the same government is too much. There is in our dna a tradition, a change of government maybe too much and so, this is one of the problem of Italian Government. But, would that last august . Last august the former minister of internal affair tried to call election, anticipated election exactly to call for the power to make everything. This was from Matteo Salvinis side this decision was very strong decision and mistake for italy and for salvini, so we changed the government in the parliament and we created a new majority. A majority my view, a majority stable for the next three years. So we wait for next election president of republic in january of 2022 and general election in march, 2023. I dont believe possible anticipated election of course, if there is a crisis in the government, there is not election for italian system that would be a new government if in the parliament there are numbers. Its a very complicated system i dont believe in a crisis but in case of crisis, there is procedure with the president of republic, very complicated my message for investor is this parliament will be stable until 2023 okay. Thats something i want to pick up on. This parliament will be stable until 2023 thats former Prime Minister matteo renzi lets bring in lorenzo big question really for investors is should we believe mr. Renzi . Should we believe that this parliament can hold it together . Can this coalition survive not just the to 2023 but through 2020 by the way, great interview i think it was a great interview. I mean, my feeling is that this government is still fragile. Okay lets face it, salvini pulled the plug in august then italy formed this kind of strange government with people that were not expecting to side together in government okay the fivestar movement it is increasingly fragile and no common medium or longterm platform so i think inevitably you have to expect some risks for stability and some bumpy road as we move into 2020. Having said that, do they have an alternative no, theres no alternative if italy goes for early elections, probably salvini will go back to power and be a central right government so the guys in government right now know very well that they have no other option but to stick together thats the glue that binds them the threat of salvini. But going back to what you were saying about potential bumpiness in the market. Tenyear italianyearolds, we started off at 3 and down to 1. 4 and lower a couple months ago. We sold off in the last couple months do you think investor