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tv   Squawk Box Europe  CNBC  October 31, 2014 4:00am-5:01am EDT

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last day of the week. we are heading for a perfect day of trading for the market. at least that's what the futures were indicating a few minutes ago. on the back of the session we had in asia last night and on the back of the positive session we had yesterday in the united states. we'll talk about this in a moment. fist on the stoxx 600, we are up 0.8%. 1% now, over 1% with plenty of
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sectors in focus. the banking sector in particular, we have numbers from rbs, we have numbers from bnc paribas. the auto sector is underperforming at this moment, up 0.3%. at the other end of the board, we've got basic resources up almost 2%. oil and gas 1.8%. and here we are, the banks, important sector today. we'll talk about this in details in just a few moments. banks, is 1.6% higher at the moment. also rbs trading higher in the first minutes of this session
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0.8% higher. let's have a look at the european markets, the indices with a 1.2% increase. the stock with the ftse 100. the bank reported a third quarter profit of 1.2 billion pounds. the stock is up 2.6%. steve. >> the flashes hitting the wires, in talks with a number of regulatory authorities to settle forex probes. the finance director says they will start editioning capital next year will not start thinking about dividends until the bank has had really good capital build under way. catherine is joining us around the set as well as foster is
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with us. catherine, let me start off with you. we would all like to see an increase in dividends, but it's impossible for banks struggling below the prices. >> we don't like to see -- we're all shareholders in rbs. but i think when you've got increased focus on the capital, particularly this factor is more strenuous stress test by the bank of england later this year, it would look like a waste of money, you know, trying to get back to shareholders. and that's -- >> the treasury, then, wouldn't it? >> can i ask you, with the mediati mediation? >> in terms of rbs, i'm just trying to work out, if i was
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allowed to invest in individual stocks, which i'm not allowed to, why would i buy rbs at the moment? it remains significantly below. is there any compelling valuation on rbs? >> there are some mitigating features. one of them is that they took enormous provisions which they will gradually be dipped into as each quarter goes by. the second is that they've got the right management team for the job that needs to be done. and the third is if they need to make disposals and to boost capital that way, then they've got a relatively simple set of businesses which they can dispose of rather than unwinding a very complicated investment bank. >> very interesting. so the book value at the moment -- i mean, the book va e
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value -- >> it's a bank, so it's a pretty opaque structure. but in the kingdom of the blind, rbs is probably one of the easiest banks to get to grips with. >> ultimately, what we'll be left with here is effectively the old rbs or the old rbs -- >> i think investors will be delighted if that was the case. you've got a core and reasonable business and then you've got a subscale kind of commercial and investment banking business that doesn't really seem to have a particularly strong rationale for existing. >> from the uk banking sector, which is very paired back and less than exposure, lloyd's is doing the job, rbs is doing the job and we're going to be more reliant on the uk housing
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market, uk consumer market and is that a good thing or a bad thing? >> well, that's what we want, isn't it? we want banks to be simple, straightforward, financial inventories. they make short-term deposits and make long-term loans for businesses that are going to grow and things like that. i think there's a widespread degree of comfort. >> but not necessarily the investment rationale. i appreciate that from an economic stability point of view, perhaps from a political point of view, as well. let's face it, investment banking is throwing up large amounts of cash. >> your base case is that you go through a super cycle of banking in which these kinds of businesses eventually get rid of restructuring xhth management, bring in their myth and so you
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think they're going to start buying their assets back again? >> well, we're speculating. >> 0.78 going forward 12 months, as well been. >> well, i think you make some good points, but i think -- you know, the direction of travel is very clear. whether it's a good direction of travel or not, we're still moving away from complex, opaque banks where regulators can't see to the sense of it and management can't, either. we're rowing away from that too much subverse, tight, tight models. that's the ongoing fallout from the financial crisis.
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good, bad or indifferent, that's why we are. >> the bank of england -- >> partying being held by ubs. >> you'll be sneaking away trying to find the leverage. >> broadly speaking, moving away from a risk weighted asset type of motion to a leverage ratio is part of that same journey, away from complexity where i say i have an enormous balance sheet, but rifts which offset each other leading us to a smaller number to a much more simple way of looking at it and looking at pure leverage. these are all points on the same journey, essentially. >> one buyer, 15 holders, six sellers and two strong sellers. it's not convincing to people at
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all. so you kwiek liekt rbs. >> right. you asked what the bull case is. it's not the whole -- >> is there a particular bank that you or -- private bank do you like? >> preferences for lloyd's in the uk at the moment. >> 9,000 job cuts this week, banks pretty strongly for it. >> no large subs go in at which ultimately don't have a rationale for distance. >> i think the class action litigation, uk class action litigation. i think it's some of the directors or former directors because of the age acquisition, as well. >> yes. it's an issue for management and an issue for shareholders, not something which changes your
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future in investment cases. >> shares of wbb trading lower. that's underperforming, of course, the british markets. the stocks trading in the u.s. and the uk has weighed on third quarter sales which have missed expectations. the ceo martin sorel are heating demand and weakness in europe was pulling its past. >> to be fair in q3, in quarter three has improved a little bit. so, actually, we see maybe a little bit of improvement. around france, around germany, although actually we did okay in germany. then the uk, of course, if you still include it in western europe, is probably the fastest growing region that we're operating in. not probably, definitely whether you look at revenues, debt sales or whatever figures you look at. but generally, i think it's fair to say that there was more
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caution in q3 and we saw more of those flying swans, the black swans or the gray swans. a lot of uncertainty whether the protests in hong kong, ebola, the rise of isis, all of this is added to the uncertainty surrounding the world economy. and the geopolitical risks, as you well know, have influenced corporate decision making and made clients even more cautious about the future. the forecast for worldwide gdp growth this year have softened as we gone through the year. but our businesses as a whole with the top line in revenue growth has been very strong, around 7%, 8%, north of 8% in terms of the nine months. so we're pleased though that. that's been driven by investment management particularly on this targeted audience buying that we're developing.
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so all in all, given the conditions, it's credible. our margins in q3 are above target, 40 basis points before the impact of currency. >> and the while, wpp is trading lower, iag is outperforming the british market. 2.6% higher for the shares. international air lines has raised its full year view after quarter profit jumped 30%. it expects to improve this year operating profit between 550 million euros and 600 million euros. standard chartered up 1.2%. it is under pressure following news u.s. sthorts have reopened an investigation into whether the bank had sanctions against iran. the probe ames to find out if
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the bank held information when reaching settlement with the u.s. justice department and the new york department of financial service that was -- let's move to the french markets for the start of trading for the cac 40. 1.3% higher. bnp in focus, the largest frerchbl bank this morning, the earnings season in the french banking sector. the profits on the back of solid investment banking revenue and net income rose 11 fers on the year with the french bank beating a net profit of 1.5 billion euros for the quarter. speaking to cnbc, the cfo is due on the credibility of the recent stress tests conducted by the central bank. >> i think the ecb has done a good job. i think the ecb has done a
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tremendous investment. i've been working on it for a year. we provided 370 million data points, allowing the ecb to resume more than 50% of the balance sheet. so i think it's a total exercise that can help. we've passed it successfully. i think it's a tribute to the balance sheet, to the asset call, to the stringent risk management and it showed that a very material stress test. it basically leaves bnp barry bass well capitalized. shares of bnp are trading 2.5% higher on the french markets. we'll have more earnings next week. let's have a look at danone, up 1.5%. danone is set to take a 25%
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stake in the chinese dairy firm international holdings. the 550 million dollar deal is expected to help danone to delve further into china's formula as markets -- that's a deposit. stefan, thank you very much indeed for that. gentlemen, both of your piece of commentary referenced volatility. the vix in your case, guy, and volatility in your case, nick, as well. sheena patel yesterday was talking about the volatility rather than being something that scares the market. actually having given empowerment to investors, as well. do you think investors revitalize, energize, empowered by the most recent moves? >> i don't think it was their first -- in volatility.
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that's what markets are about. >> there have been a lot of policymakers. behind the publicly announced comments, we see policymakers were more xwernd low levels of volatility. but whether there is no volatility, there's not a great deal you can do about it. once you have markets starting to investigate, it gives opportunity to investors. you can be tactical. you can trade. obviously, that's good for the capital markets business the likes of goldman sachs. but foremost, any investor, volatility is something that is to be encourageaged. is it wrong for me to say if you're extra and you say policy
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investors are concerned about the low level of liability. wouldn't that be prudent of me to say that is hypocritical of them? >> there's two points on that. the fed is a group of individuals. some of them were clearly more concerned than others that are pretty public. then there's other policymakers who have previously embarked on programs and who we understand are very pleased that their previous programs have been wound down and we're expecting concerns about the open-ended nature of the fed's program. >> policymakers are trying to have it both ways, aren't they? they can have a situation where they can enjoy the benign effects of snr policy experiment and somehow contain whatever negative effects there are.
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>> with the imbalances in the background, that was what the debate was at the time. now you're back to a situation where at least in the u.s., the economy is behaving in a much more normal fashion. but if you look at other things like spreads and financial conditions, you find you're deep in speculative territory. i'm not sure that volatility is empowering in the way. investors are perfectly happy just to have rising asset prices and growing dividends. >> i take a slight issue with that. we trade and we take advantage of dips and we're raising a bit of liquidity when we think we're getting close to short-term peaks. but say you're less
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sophisticated than that. say you're making monthly contributions into that pension scheme. perhaps that still works for you on a pound cross averaging basis and much more so than if you had a '99 style mega bull market fomed by a complete and total collapse. i think volatility is quite positive for the majority of investors. and the other thing i think in terms of what it means for policymakers, is it hypocritical? yes, of course. but at the same time, you've got to see this all as an extension of monetary policy at the zero rate bound. you lower bond yields, ultimately raise equity prices or put a floor under equity prices. once you fall, the economy doesn't need so much million, you take some of that away and volatility returning is -- you know, it's almost a mathematically certain result of that. and as such, i think it's a great indication that hopefully
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we are now reaching a stage where we can put this hyper stimulus whiepd us. >> obviously, you know, we came off a period where volatility was very, very abnormally low. so even a return to what were clearly normal devils of volatility felt a lot like a big day. >> may last year, we had a terrible earnings season. the s&p went stratospherically upward. the fed mentioned tapering for the first time. that was a really big sell-off. >> this is an extraordinary new earnings season. 75% of companies have beaten expectations.
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75% is extraordinary. >> better on revenues, better on earnings. there was so much riding down in this earnings season as there has been in the past. it does look like a decent set of numbers. >> let me get out to steven pa sdrazy who is waiting patiently at the board. >> with a 2.8% decline, the 2.4% decline, these two banks are among the nine italian lenders that failed the stress tests on sunday. the ceo indicated that all options were on the table, a bit of speculation. right now, shares are traded at the beginning of this week and next week. let's move to the belgium markets under performing what we are seeing in europe this
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morning, up 0.2%. not even 0.2% for the 20 wi80 inbev. that's one of the reasons the index is performing. the company disappointed the market with a lower than expected increase in earnings during the third quarter. it was a hit by sales inventory by a slowdown in practice abobr. the dax up 1.3% in line with what we're seeing in europe. in frankfurt, let's have a look at citigroup, the u.s. bank trading 1 many 5% high e$1 many billion for 3.4%. the bank was forced to set aside an extra $600 million to cover
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expenses in the fourth quarter due to what it calls a rapidly inflating market. the smi, 7% higher. the bank marked 390 million litigation provisions in the third quarter. the number was outlined in full reports today as last week's -- the bank didn't elaborate from what the provision was for exactly. the stock is trading higher despite this provision. >> thank you very much for that, stephane. let's get back to guy and nick, as well. what should we be looking at to do? is there a long opportunity or should we be cautious?
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>> we've discussed higher levels of volatility. so, obviously, it raises the -- raises the prospect of doing a bit more tactical investment. and so having -- for once, having a slightly higher cash balance starts to look a little bit more attractive. where we are at the moment obviously in the process of retracing from that wobble, i think you've probably be fairley nutd ral on the market right at the moment. and then looking forward to the next peak at which you might want to raise rates, but more cash. >> you don't like the market at the current level? >> it depends where you're looking, but the u.s. has retraced a huge amount. >> this isn't my kind of thing. it still looks to me like the u.s. is best in time.
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the process stops growing. profitses are growing, so forth and so on. >> if you put the u.s. in isolation, you can write a script which involved a financial session, a recovery, and progression in the direction of normalization. if you look at japan or euroland, you are looking at economies which increasingly look like japan has come like that for many years, like pushing a car uphill. as long as you're pushing it, it's moving, whereas when you stop pushing it, it starts rolling downwards.
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i would still say the u.s. with a benign process is a much better prospect from one where you're going to hope things get better at the moment. >> japan is obviously the exciting story this morning. i think there's going to be a time of people looking at their japan weightings now. we were quite positive on the region. where is it going to come from now if you feel like it's going to come now as the details get firmed up. it's not obvious what's going to give japan the next leg up. it's a deeper earnings season, probably. that's where the opportunity is, as well. buying on blue or buying on
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green isn't the right trade. as the norwegian finance minutester said, you see things pick up, don't you? >> well, you do. in most of europe, you've got expanding employment. this is a much better environment in which to try and push through things like structural reforms than the years that have preceded it when you had employment on a downward trend. so i think, you know, you can see to the signs of optimism, but at the same time, you have got structural issues and i don't really see that we're going to make a great deal of progress in a dressing room. thank you very much, indeed. for now, okay, there are pictures of investors out there who have suffered in this market volatility. they look like this.
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>> it is halloween today. there was a lot of work. >> it was probably a bit long in the market. so we found this and he will be back on monday. very nice work. how long did it take? >> under two hours, but that was a luxury. >> we'll talk to you again at the end of the show. >> yes, thank you. >> stay with us. we'll be right back after a short break. synchrony financial partners with over two hundred thousand businesses, from fashion retailers to healthcare providers, from jewelers to sporting good stores, to help their customers get what they want and need. banking. loyalty. analytics.
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synchrony financial. engage with us. a single ember that escapes from a wildfire can travel more than a mile. that single ember can ignite and destroy your home or even your community you can't control where that ember will land only what happens when it does get fire adapted now at
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halloween failing to spook the stock market following a 5% spike on the nikkei. it's on further easing from the bank of japan. rbs sets aside more cash for forex, insurance probes, but third quarter profit is 1.2 billion pounds sending shares into the green. shares in bnp paribas are boosted after the french bank returns to profit in the third quarter. the cfo says he believes the stress tests were credible. >> i think it's really a total exercise that can help.
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shocking all things weighted over european banks. it basically leaves bnp paribas well capitalized. >> we've got them losing their fizz. volumes fall across the u.s., europe and asia forcing the drink giant to miss expectations in the third quarter. so markets looking slightly 1% higher. there are some exceptions, standard chartered, but they've had a dreadful five-year performance. standard chartered is trading higher, but shares remain on five-year lows. they're about following news, u.s. authorities have reopened an investigation into whether the bank broke sanctions against iran. the probe ames to understand out if the banks withheld information when reaching settlements with the u.s. justice department and new york
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department financial services two years ago. it follows on from a third profit warning for the lender, which also weighed on shares this week. after last week's initial release, the bank didn't elaborate on what the provisions were for. speaking to carolin last week, the cfo said he did not see any -- from the ongoing manipulation probe. >> obviously, the foreign exchange investigations have been going on for almost a year now, or a little over a year now. there's been a lot of, obviously, activity there. we still at this point don't see any material issues for us in that area. >> but you set aside a little over 2 million swiss francs for mortgage related matters. what exactly do we expect here? >> we continue to have a number
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of issues on the mortgage side. we've obviously worked through a lot of those. we'll hopefully move through quickly and get a lot of that behind us. >> u.s. lenders revised down forecasts. the bank was forced to set aside an extra $600 million to cover legal expenses in the third quarter due to what it called rapidly ee volleying inquiries. citi is one of six u.s. lenders to settle with the conduct authority over fx market mpgzs. >> let's take a look at where the market is currently trading. i can tell you 0.9% of companies are higher.
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only one of them is in the red. only 1% to the good. just trying to look at some of the individual names, tale, but from here, i can't really pick anything exciting. let's move on and take a look at the scary guy. campaigning is well under way in the u.s. ahead of next week's midterm elections. while republics are widely expected to maintain control of the lower house, senate democrats are on the defensive. the gop, which is republicans, only need to take six seats to seal the majority. >> we think there's a two out of three chance the republicans
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will manage to win. it's not a slam dunk. they could end up with 52, 53, 54 senate seats. but the reason people are observing a majority with vice president biden breaking the tie in favor of the democrats is because there are nine super close senate races that are within the margin of error or even dead tied. so the assumption is that since republicans have more ways to get to 51 than democrats have to get to 50, we assume that republicans will be able to pick up at least the 51 they need to control the senate. >> assuming your base case scenario is correct and the republicans do gain control of the senate, which elements of president obama's agenda are most at risk over the next two years? >> let's remember the supreme court. if there's a vacancy on the
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supreme court, they could resign, they could be called home, let's say, if you have a vacancy, i think the president is going to have great difficulty finding someone that will draw enough republican votes when add to the democratic votes to get that many no nation through. and also the lower courts, as well. the apil pellat courts and the district courts. so appointments may be the most things affected by a republican take yoef in the senate. the county could veto a large provisions big that contains writers he doesn't like. if the ps feels strongly enough bitd, he can veto. and the democrats have far more than enough votes in both the house and the need to prevent a veto overright. so the president's veto would stick. >> hillary clinton, of course, what does the resounding
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republican victory need for hillary clinton? >> she has build up chips, we call them chips. that is political favors she's doing for candidates, running for governor, senate or house of represents. and the assumption is they will pay her back by supporting her nomination in 2016. that's the advantage for hillary clinton. if the rins takes over the senate, clearly it's a disadvantage and many of the things hillary favors will not be passed. many democrats are saying some of the republicans might go too far and hillary clinton would have an issue in 2016. essentially, she would say i'm the only thing standing between you and all republican government. elect me to check them. >> now, this gentleman you interviewed, he's a bit of a guru when it comes to following.
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>> it is. he does have a strong record and he is calling for republicans to take back the senate. about two-30s odds, i should say. >> what are the ramifications if the republicans control the senate and the lower house, as well? >> a lot of talk that we could see dead lock on some issues. republicans have been very outspoken about what they call trying to get rid of obama care. i think the priority for the republicans will be tax reform. >> in the united states, there's a huge barrier to investment in the u.s. has created all kinds of shenanigans in terms of inversions. why is it that we are so polarized on political that we cane get tax reform inspect. >> the democrats are giving some room to the republicans,
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acknowledgement over corporates like appearing to bring back without paying enormous fees. >> what role does political debate play at the moment? >> interestingly enough, it has become a bigger issue for voters, according to the pugh research polls. but the economy still tends to top the agenda, voters going into the polls. we've seen signs of the economy improving. but we're still looking at a republican gain. >> it's not situation as we have in some european economies where some of the headline numbers may look okay, but they're sort of a feeling that people aren't taking part. you know, consumer confidence is pretty high in the u.s. right now. >> absolutely 37 but i think there's a lot of concern around
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the jobs pictures. more people are dropping out of the workforce. a lot of voter say we want to say the jobs number improve. >> why should the world care about the midterms? what is the ramification on a basis of value to have a president who can't enact anything thereafter? >> it's not as if it will be a free ride for republicans to push through their agenda. >> it's not going to be -- you know, if it were something on the budget, he is able to invoke that visa power. it has repercussions of 2016 in the race.
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>> who do the democrat eggs like to put up? >> it's hillary clinton. comments from hillary clinton about being a grandmother and that being her most important role in the world. she doesn't mean that. she wants to be president, does she? >> shows spending a lot of time on the campaign trail if she intends to just be a grandmother. i expect her to announce a few months after the midterms. >> in europe, we're seeing an increasing importance of not nonconventional parties, the tea party in the u.s., we don't seem to be fair in europe here quite as much about them as we did at one stage. how is that displaying into the senate race? >> absolutely. there has been talk about the
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tea party getting behind the candidates. but we have very close run offs. in either georgia or louisiana. the tea party had a lot of influence. now that we're in the actual midterms, they want to support everyone on the right as much as they can. so we are seeing tea parties -- >> we have to leave it there, but nancy, who is our u.s. senate midterm correspondent, thank you very much for being with us today. shares in gopro jumped over 10% in after hours trade following a bullish guidance on the company. the maker of personal cameras reported better than expected sales. elsewhere, starbucks shares fell after hours as the world's top coffee chain missed the trade to
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sell at established u.s. branches. the seattle based chains themselves rose 5% in the americas, and it's below consensus expectations for a rise of just above 6%. fiscal fourth quarter net income came in at $588 million or 77 cents a share. and howard schultz is the ceo of starbucks. we speak with him at 2:00 p.m. central european time. groupon and corporate networking site linkedin have posted third quarter results. julia boorstin has all the details. >> better than expected revenues and earnings announcing its members have groan to 332 million with 47% of all traffic on mobile devices. the ceo saying for the future he's focused on growing its
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younger user base and focused on having users in belgium countries, china in particular. >> in q3, approximately 75% of members came from outside the u.s. with china providing strength. >> and though that guidance is lower than expected, shares will retire in after hours trading. >> groupon's revenue grew 27% and its earnings per share of 3 cents. beat consensus expectations by 2 cents. groupon shares were pushed higher and helping stocks recovery from a nearly 50% stock decline since the beginning of the year. back over to you. >> you may have noticed i'm without some of my regular
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colleagues around the desk. there have been complaints about working with me, turning people into zombie, blood sucking vampires. i want to get to stephane now who can categorically say that is not the case. i think you can work with me and it doesn't change your demeanor. what on earth do you like like there? >> i don't know. it's a surprise. >> i know you wear more makeup than me, but this is ridiculous. >> it's part of the global french strategy. >> this might be very, very -- stephane might be on the prowl. we've leave you with a look at stephane. anyway, hallow week weekend. we at squawk prepared our own scary surprise. that's it. okay. rk state is jump-starting business with startup-ny.
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the bank of japan will expand its balance sheet by 80
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trillion yen. monetary policy board was split, 5-4 about the move and comes as shinzo's inflation target looks increasingly difficult to achieve. do you want to see the nikkei? it's rallied to a seven had year high on the back of the move. that is 755 points to the upside. the yen taking away some of the shine on your gains in terms of the fact that we are seeing the yen continuing to be under pressure. jeffrey yew earlier on talked about 115 on camera. he's talking about even lower levels off camera. 11 146 is where it's currently trading. epb board member novatny spoke to our very own annette ta who asked whether the eurozone is head for a japanese star deflation. >> this is the scenario we want to avoid. what we have to see is that we
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have now, over a long period of low growth rates, we do not have a recession. we have low growth rates, low recession. still, i think we have quite a lot of differences to the situation in japan. and one of the important differences is that we have start started, really, to look closely at the number situation of the banks. just this weekend, we have the final steps of this stress test. so i think one of the problems the bank had was they did not solve it in a difficult way. >> so let me stress that perhaps a little bit.
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the banks' capital needs came really on the low side of analyst expectations. do you think this is now a game changer for bank lending, the stress tests we've seen? >> first, i think it came out on the low side. one has to be aware in the year before the end of tests of 2013, first half 2014, we had already a huge amount of capital increases. so in that sent, a large part of the work that had to be done had been done already beforehand. so in that accepts, i think it is much bigger. whether it will have an effect on the lending side, it helps, but we have to be aware that it helps on the surprise side of
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lending. there still is the problem on the demand side of lending. unfortunately we have very low demand. this is something where it is not so much a matter of rebossit. this is a matter of fiscal policy, expectations, of structural policy. one has to be quite aware. central banks or policy, our contribution is an important one. but it cannot be the only one. >> talking about expect ages, inflation expectation, inflation expectations mario draghi or the ecb looks to like at have fallen further after those additional measures announced by the ecb. so are you afraid that we are entering an era of sag nation
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here in the eurozone? >> no, i do not -- if you define expectation as the situation of zero or negative growth, this is not the scenario that i see. this is the biggest challenge we face now. this meets some type of kworz nation of fiscal policy. fiscal policy is different from europe than in the u.s. we do not have a european minister finance. we have now a new commission at the level of the u and this is one of the top priorities to
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become active in this week. >> well, we're coming up near the end of program. one of the key issues that we haven't mentioned, as well, is the blue in the market, isn't it? >> definitely. you can argue the u.s. shed something kinds of nrmalzation. they're responding to the fact that circumstances are very, very abnormal and very difficult. the big price change is the equity volatility that we've had. the big price change is actually in the oil price, the single most important global price. that is our mitigated good news. the transfer comes from oil producers who tend to save a lot to oil producers who tend to
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spend a lot. >> but then we get panicky about deflation. then they start adding more stimulus. >> yes. we've seen the oil price react that way in the past. they will get over that. there is definitely good deflation and bad deflation and this is definitely good deflation. >> the other bit of good news is ukraine and russia have come up with a gas deal. this is a huge progress in the relationship between those two countries. so a northbound lower tension on the goo political front. >> that is definitely not gone the bad way. and i think we should all be very grateful for that. purely from the selfish view of the markets, they were never that concerned about that one in the first place, but obviously, that's good news. >> nick, we're going to leave it there. thank you very much indeed for joining us.
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very nice to see you. very calming. not very frightening seeing you on halloween, as well. you're always a man for guiding us through the storm. but in terms of frightening, take a look at this. i was going to say stephane's face, of course. the other two, desperately frightening. >> thank you very much for having me in london. i didn't know that i would have to go through this. but thank you for having me. thank you very much to our makeup artist, maria. >> you're very welcome. >> thanks very much, indeed, maria. excellent work. thank you for that. mr. model, what is your name, sir? >> john. >> are you going out like that the rest of the day? >> yes. >> you just need your cloak, don't you? thank you very much indeed for playing. stephane, it's been a pleasure having you on set b all week, as well. i'll leave this one handlinging. is hans retiker a scary prospect, as well?
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we'll get his view on monday. he is the global head of foreign exchange strategy at morgan stanley. plenty more to come on cnbc throughout the rest of the day. we have those capital levels, those leverage ratios coming out this afternoon in the united kingdom. we've got the howard schultz interview from starbucks coming up on our u.s. programming later on, as well. and the markets looking pretty spryly. we have the japanese data and the extra stimulus. we're going to leave you with a live shot of hong kong. that is it for "squawk box" this week.. i hope you enjoyed it. we'll be back at the same time next week. to sporting good stores, we provide financing solutions for all sorts of businesses. banking. loyalty. analytics. synchrony financial. engage with us. open port twenty-two-oh-one-seven on the firewall for customer db access. install version two-point-three of db connector
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it's friday and it's heal low wean. happy halloween, everyone. welcome to social security social security. i'm seema mody. and i'm wilfred frost. >> no blad on wall street this week. >> the world's largest beermaker loses its fizz in the third kwarder. inbev loses expectations in all of its core markets. it's back in the


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