tv Worldwide Exchange CNBC October 9, 2015 4:00am-5:01am EDT
good morning. welcome to worldwide exchange. >> good friday to you. here are your headlines from around the world. >> a sea of green across global stocks. equities are set to close sharply higher despite the federal reserve keeping markets on their toes. >> alcoa catches china's cold of the largest aluminum producer lowers it's supply forecast sending shares down in after hours. >> vw feeling the heat from congress as the u.s. chief
michael horn blames individuals for that emissions cheat. this as they say the fine should fit the kicrime. >> there's talk between europe and the u.s. on what reasonable and effective fines will be. let's not go over the top here. >> shares in glencore jump after they will battle zinc production. the move lifts stocks across europe. >> hi, everybody. good friday morning. glad you're with us to wrap up the week together. our european equities this morning flat to a little bit higher. the shocks europe 600 higher
by .5% now. our main european equity markets this morning, this is what we're looking at. ftse up by 0.3%. ftse mib by .5% as well. quite a bit of green. our memories escape us. let's see what type of week it's been so far. since monday's trade we've seen a rally there. the ftse 100 on the week higher. the dax up by .5% and the cac up by 5.5% and ibex up by 6.5%. we saw a big sell off taking place with vw in the fray the week before. you had worries about what the central banks are going to do
next. but by and large though we just need a little bit of a buying back into this recent dip. when it comes to the asian markets and what we've seen there in the overnight session we did see strength and you're seeing all green screens with the nikkei up 1.5% on the close. shanghai composite up and the hang seng index and them trading higher. we have the fed minutes. >> that's right. those fed minutes. monetary policy, tightening is going to be held up for a little bit more with the fed's decision to hold off on raising rates last month was not a close call in september as some members have maybe suggested. members from the september meeting showing the fomc was hesitant to pull the trigger on worries about global risk. most thought it was a good idea to wait but still expect strong economic data to make a case for lift off this year. not everyone agree with the
decision to wait. including morgan stanley ceo that thinks they should have raised rates back in march. he was speaking at a conference and said the fed kept rates for too low for too long. he said he would put money on the fact that the fed would be hiking interest rates in 2015. steve has been following the events and sends this report. >> minutes coming out a bit more dovish than markets expected. fomc members clearly spooked by developments overseas. they were worried about global and domestic financial market developments. they were concerned over the high level of the dollar and they were worried over the effects of slower growth in china and other emerging market countries. all of that created concern and put downward pressure on inflation. there was some lack or reduced confidence that inflation would, indeed, bounce back to the fed's
2% target. all of that said they did say their targets on the labor side were nearly met. many expected the conditions for raising rates to be in place later this year. growth was seen continuing at a moderate pace and labor slack was substantially reduced and some even said eliminated. the time for tightening was near but because of the other developments they thought it was appropriate to wait. on how the volatility in markets effected their policy decision, it didn't effect much except it effected their thoughts on the economic outlook. they were seen only having a small or transitory effect on that economic outlook. overall there was concern that a rate hike delay for some hawks on the committee could force sharper hikes down the road. they want to be sure that the effects from overseas are transitory. back to you guys. >> just to let you know be sure to tune in at 17:00 cet today
with bill dudley. that comes your way on squawk alley. we're looking at the fed minutes and right now this slack in the global economy is now putting pressure on inflation in the u.s. and also growth trajectories but they still say that we want to lift off and hike interest rates by the end of this year. they don't have that many months left. >> no, they don't. they've leaving the door open but i love how he says he should have hiked in march. but he says they should be hiking. he wants to be right. >> he has been saying this for a long time. he started off the year saying they should and they will be hiking interest rates this year. i'll put good money on it. i asked him in beijing in may and he said i'm hoping for a lift off. just get it over with and rip the band aid off. >> sure i'm in the camp of if
things change then things change and we need to change along with it because otherwise we end up making a mistake that because i said we have to hike. >> but have things changed? >> the data, i don't know. like goldman, they thought we would be hiking twice this year and four times next year. i don't know. we're running out of time. if we need to hit these quite aggressive targets but it's also smart to say we're going to sit back and wait for a second and see what happen with the world. let it settle a bit, see the china impact and trade flows and then decide whether to hike or not. >> they also want to see what other central banks are doing. if the bank of japan is exobjped to ease and the ecb, does it call for more tightening from the fed? >> exactly. you might do an ecb. >> what's that? >> when the ecb -- bless you --
a sneeze there. >> was that a sneeze? >> small voices in our head, right. no remember when the ecb hiked by 25 basis points a number of years back now but they hiked and basically they had to cut again. >> right. >> but it was during the summer like july during the financial crisis. so they hiked and then they had to cut again which, you know, maybe to hike, if you hike then you have something to cut from as well. >> but the growing talk on the market is not about hiking interest rates. it's about easing. maybe qe-4. all of a sudden that's gaining traction. there's no tightening issue. it's more easing and more stimulus. >> we're going to be qe-5, 6, 9, 12. >> it's like the rocky films. we have headlines coming through. >> but we love the rocky films. the best is when he runs up in the steps in the morning and
he's training. >> he's fiesty. it's a friday. we're getting into it. >> sab miller just a bit of news hitting the wires. there's an investor update for us and they're meeting to discuss the recent trading statement and provide an update on their operations. they increased their targets. annual rate run cost savings from their cost and efficiency program from $500 million from march of 2018 to at least -- well, they're increasing it. so that data just coming through. measures they're announcing today are continuation of the existing cost savings program but of course a slightly closer eye on sab miller at the moment given the potential for consolidation with ab inbev as we have been talking about. let's move on because after a decade of financial crises, bailouts and endless summits europe is facing a crisis of confidence but for all it's issues europe is one of the
richest places on earth in terms of wealth and innovation. cnbc will be spending all of next week asking what it will take for europe to get it's swagger back. so we're going to be talking to a whole bunch of people about what europe can do to essentially be better, be stronger. we'll be joined by top government officials. coverage from around the continent will be taking place. squawk will have a ceo guest hosting every day. gavin patterson, mark wilson, the ceo of aviva and the ceo of li heineken will be joining as well. so be sure to tune in all of next week. now syrian troops launched a major offensive on rebel forces as the government attempts to recapture the country. they were backed by cruz
missiles fired from warships. meanwhile john kerry has spoken directly to the russian foreign minister about the country's involvement in the middle east. now according to a state department spokesperson kerry used the 30 million telephone conversation to voice suspicions that russia's targets were not related to islamic state and they've seen hundreds of thousands of refugees fleeing to europe. cnbc caught up with the vice president of the european commission. he acknowledged that the eu needs to recognize the financial effects of the migrant crisis on member states. >> it's not only a huge humanitarian crisis but also because it's physical implications which are facing this crisis and currently we're examining the member states. we'll be implementing the rules and take into account the
effects of the refugee crisis. we're looking at the matter and will be coming up with proposals in coming weeks. >> it shouldn't be taken by the states as an opportunity to slip one past the commission as it were. perhaps to justify breaching the current rules of the treaty? >> well, certainly it has to be respected and provides certain flexibility in the case of important circumstances. so we are examining this. >> now on to something completely different. the winner of the 2015 noble peace prize is due to be announced in just over an hours time at 11:30 cet. and they include the german chancellor angela merkel. she might win for the help she
extended if the syrian conflict. pope francis won for his campaigning on inequality. a lesser known winner is the gynecologist that founded a hospital in his home country where he work with victims of sexual violence and another come painer to be given the accolade is the editor and chief of a russian newspaper. now if he were chosen it would be the first time that the head of a media organization has been awarded the noble peace price and it's very humbling how little we know about a lot of these people who are doing a fantastic job. we talk about angela merkel and the job she is doing and the role she has been taking on in regards to the refugees but you have a catholic priest that founded something, an agency to help immigrants integrate in italy and he's one of the contacts that migrants use for
crossing the mediterranean sea for europe. he's a catholic priest and joined his father in italy as a refugee himself. he's been doing work too. we moe the names we know but there's a lot of names that we don't know that we should know. >> there's a lot of contenders but also front runners as well as you just highlighted in this mobile peace priceze awarding which should take place. let's talk about what else is coming up on the program today. an exhausting interrogation. volkswagen's u.s. ceo is told to clear up or go home. and it's one of the most mysterious and isolated countries in the world as preparations take place for north korea's 70th anniversary we take a look back at the country's relatively short history. and forget dr. who, it's all about doctor now. find out how apps like this are are revolutionizing the way you get treated and it's big business as well. can a business have a mind?
johnson & johnson and intel an then more earnings bank of america, blackrock, netflix. thursday, the bank results continue. numbers out of goldman sachs and citigroup also expected to release our united health and phillip morris and then we round off next week, i can't believe we're talking about next week. i can't even see beyond my nose today but next week at the end big contenders, general electric and honeywell on friday. >> that was quite a miss by alcoa which has unofficially kicked off the earnings season in the u.s. reporting a sharp drop in q-3 third quarter profit hurt by slumping aluminum prices and other commodities. the company posted earnings of 7 cents a share. analyst calls for were 13 cents
a share. revenue also dropping 11% and alcoa is warning of a slow down of some of its markets in china with car production only expected to grow 1 to 2% this year but market fundamentals suggest that maybe prices will recover next year. now shares are down some 5% in after hours trade and if we take a look at what else is happening with alcoa we also spoke to him so let's listen in. >> demand for aluminum is going to grow 6.5%. we also see we're going from a slight surplus into a deficit. that's at least what we're expecting from next year. we also see there's really no export from chinese primary metals into the u.s. it's come down and come to at this point in time seems to have come to a slow down. >> so let's check in on their german listed shares and pretty much in line with the after
hours move. we're down to 4.5%. >> and sticking with germany, volkswagen's australia unit increased the number of cars it will be recalling to nearly 100,000. this after the german car makers u.s. chief spent the day in front of congress trying to explain how much he had known about the deception before the crisis erupted. >> it was a brutal day on capitol hill for michael horn, the president and ceo of volkswagen group of america as he testified before a congressional panel determined to learn just how his company cheated on emissions testing. >> we are determined to make things right. this includes accepting the consequences of our acts providing a remedy and beginning to restore the trust of our customers, dealerships, employees, regulators and the american public. >> he couldn't answer many questions and appeared flustered at times saying he couldn't
understand questions. members of congress weren't willing to cut him slack. >> vw betrayed a nation. it's time to clean it up or get off the road. >> legislators did not get clear answers to just what volkswagen plans to do to support car owners ordealers or exactly how much they expect to pay in fines but horn did give a time line for how long fixing the hundreds of thousands of flawed cars will take. >> you are certain the remedy will end up being a multiyear approach. >> yes. if you look at 430,000 cars and the repairs might take 5 to 10 hours even in order to fix this and if you look at the recall history in this market then these actions take, one, two years minimum. >> the company is with drawing it's application for certification of some model year
2016 vehicles but that move could leave american dealers without enough product to sell and stuck with inventory that customers might not want to buy. >> well, jeff caught up with the euro group president at an interview in the imf conference and asked whether broader europe was at risk from the fall out. >> i don't think that would be a fair point. i think that what volkswagen has done has been very damaging to volkswagen and they need to sort that out. the germans have already had the quality mark. if it's german it has a high quality standard and that is such a valuable asset to have. so i think that volkswagen has to sort this out very very quickly. it's also consumer protection.
whatever company has to realize that consumers are much more critical now than in the past. they'll change very quickly if you let them down so don't play with this kind of -- the asset of consumer trust. i think that's a very clear lesson to learn here. so no i don't think it's a european problem. it is a very much volkswagen problem and they should sort it out and if other companies have done the same they should bloody well sort it out also but let's not make it a very broad issue. >> is it all because europe has taken such a strong leadership position on climate change over the last few decades and this just appears to completely fly in the face of every endeavor that europe has pursued in putting a climate agenda down that leads the rest of the world. >> i think it just shows that
given the tough competition that you need public surveillance. you cannot leave it up to a company to say this is my quality standard and you can trust me. i'm sorry to have to draw that conclusion but that's my conclusion. underneath all of this we need public supervisors to say fine you also deliver on your promise. and for europe, that's important. internationally it's important. if we want to deliver on our climate ambition we have to be good for our consumers. we have to deal with these issues. there's a great public role to play. >> given the signs of fines that are now being talked about could have implications for the viability of the volkswagen business going forward.
do you think it's -- this is not general motors or the toyota situation. the fines are way out of proportion levied on those companies. do you think there's a need or desire to appeal for leniency? >> it needs to be effective. it hurts the person that's broken the rules but also making sure that it doesn't happen in the future. the worst way to do that is kill the company. let's not exaggerate these having higher fines all the time. we had the same thing in the banking industry. higher fines all the time. there's a strong case to make for coordination here. let's talk on what reasonable and effective fines will be. let's not go over the top here.
>> let's focus on financials. another step closer to privatization by applying to convert the u. s. government b shares into ordinary shares. they'll now become ordinary shares at 1 pound and start trading from the 14th of october. the treasury is still the largest investor in the bank. it's converted all of it's equity into ordinary shares. >> shares in credit suisse are higher today after the financial times reported that the bank is planning what they're calling substantial capital raising. credit suisse is still evaluating options. meantime, six financial advisors left the bank ahead of the business outcome due to be announced on october 21st. let's give it to carolin. it's interesting that this takes place a day after deutsche bank came out with that profit
announcement loss. >> the speculation of a price hike is not that new. the stock was down 2 or 3% at one point. it is recovering in today's trading session but we have been talking about a potential capital hike for credit suisse for months now. so we're going to have that big strategy unveil on october 1st. everyone is sort of expecting this big bank moment. there's so much buzz around his personality because he did a fantastic job. the share price tripled under him over there. just wanted to bring you credit suisse's statement. as we out lined on july 23rd, we're conducting a thorough assessment of the strategy. evaluating all options for the group and it's businesses and capital requirement. i'm surprised i put it out there that the need to respond to these rumors, they didn't say very much.
they're basically telling us wait for october 21st but i think expectations have almost run away a little bit. we know that he likes asia and private banking. we know there will be cut backs. wo . wouldn't be a surprise at all. essentially it's to bulk up the capital levels because the swiss are a lot more stringent when it comes to capital levels. >> you're right. we have been speculating about this for ages since he came on board. thank you very much. >> carolyn joining us here on set. nice. >> still to come on the program in worldwide exchange, an overblown slow down. find out how to navigate your portfolio through china storms. that comes your way next.
>> vw feeling the heat from congress as michael horn blames individuals from the emissions cheat. this as the president tells cnbc that the fine should fit the crime. >> there's a strong case to make for coordination here. let's talk between europe and the u.s. on what reasonable and effective fines will be. let's not go over the top here. >> shares in glencore jump after the emotions battled swiss firm says it will slash it's zinc production to battle the commodities downturn. the move lifts money stocks across europe. >> let's check in it's been a good run. the stoxx 600 has been up five straight sessions.
ftse 100 seeing gains after the advance in asia last night. ftse 100. the dax gaining by .7. the cac 40 advancing and the ftse mib seeing gains as well. >> looking at the u.k. trade data hitting our wires. the u.k. global goods trade balance minus 11.1 and rounding down. the poll is for minus 10 billion so it's coming in worse than anticipated and versus a july revised figure of 12.2 billion. looking at u.k. august total goods services and trade balance. also dropping by the looks of things 3.2 billion. and basically what we're looking at is a combined total u.k. trade deficit in july and august which is already twice as big as the deficit that was seen in all of the second quarter. so again i'll say that, total
u.s. trade deficit july and august. twice as big as a deficit in the entire second quarter. >> wow. >> pretty extraordinary. >> yeah. let's talk about, i guess, the global winds then because we heard from the federal reserve, the fomc looking at global conditions, u.s. futures meantime because as the fed is indicating maybe they'll be holding off on hiking interest rates this year, 2015 into next year when we had an advance on wall street but the implied open for the friday session is telling us we could be lower today. the s&p 500 could start down 6 points. dow jones industrials could be declining by 30 points at the open. the nasdaq is pricing in losses of 11 points or so but let's talk about the shock and politics and the house majority leader really stunned the u.s. political establishment when he abruptly with drew from the race to succeed house speaker john boehner. john harwood has more on what
this means for the state of the republican party. >> you have a group of conservatives that are much more aggressive in their approach. they want to take on president obama. the republicans in the senate, democrats in the senate more aggressively, unrealistically aggressively in ways that the people that want to keep government operating can't go along with. so john boehner stepped aside and kevin mccarthy stepped aside. so you have a chaotic situation in washington. nobody knows how it's going to sort out but john boehner may be staying as speaker longer than anticipated because of the chaos. it's a thankless job now because of the conflicting pressures we talked about. paul ryan made clear for sometime his desire not to be the speaker. he is getting a lot of pressure now though because he may be the only person in the house right now that can unite these warring factions and produce, at least temporarily a consensus within the party. so john boehner has been leaning
on him. other people will be leaning on him. he says he doesn't want to do it and he's not going to do it. we'll see in a few days. >> some more breaking news, standard chartered news just coming through. the ceo telling the staff that the bank will be cutting up to 25% of their senior staff. that's according to an internal memo which is being quoted by reuters. about a thousand senior staff likely to be cut as part of a 25% reduction targeted by the ceo. management, the management team along side with the ceo. they're saying that they're close to finalizing a clear and comprehensive strategy. standard chartered trading higher. that's a big figure. 25% of senior staff. >> a thousand jobs to be cut. it's not a good time in the world of banking. we just came off of deutsche bank and that record loss. 7.2 billion euros in total and they're also talking about cutting staff as well. >> i wonder though how the
market is going to be. we already knew they were going to be restructuring. often times once you see a clearing out and streamlining and cutting the fat from the meat sometimes you see a positive reaction from the shares. >> yeah, it's an emerging markets bank and they have been dealing with the slow down in the emerging markets lead by china. let's talk about china and the head of the international monetary fund, the imf says that fears over the china slow down might be exaggerated. the imf predicts that the world's second largest economy will grow by 6.8% this year. this is only 20 basis points lower than china's own official estimate. our next guest thinks that structural issues still persist but the government has all the necessary tools to avoid a hard landing. joining us this morning, we have the head of china equities at black rock's strategies group. the largest money manager and it's good to see you here in london. >> hey. >> so, you obviously meet with
clients and i'm sure you heard their expressed fears of the slow down in china but i feel like the markets have impretsse a china crash rather than an economic slow down. >> if you look at the offshore china equities we're looking at price to book levels of 1.1 and 1.2 times. that's pretty similar to gfc levels. the economy is slowing down but i don't think we're in a gfc type of situation. a lot of the focus is placed on electricity generation and railway cargo. they represent the old china. if you look at the new china, tourism and box office sales those numbers are still spectacular. it's a two pronged economy and it shows there's some improvement in terms of the structure of the economy if a lot of the focus and growth is shifting toward services in the new china. >> more than 50% of china's economy is now services based. it's no longer manufacturing cheap, you know, build up
economy. it's a little bit more sophisticated but we also can't ignore the fact, a lot of people point to this but the heavy debt burden on corporate balance sheets. it's rocketed on debt to gdp since 2008. >> it's very worrying that the pace of debt build up has been so rapid but what we're seeing snou the government over the last one or two years has been taking steps to address that. if you look at credit group it was 35% year on year. in 2013 the minicycle peaked out and recently the government is bringing that down and we now have total growth of 12% against nominal gdp growth. so the level of debt to gdp is still rising but at a much slower pace than before. so this round of monetary support for the economy is less about relying on credit growth and more about redeploying the existing stock of credit into
more policy supported areas and reducing funding costs very meaningfully off a high base. >> i like the point you make about the interest rates scenario and what would happen if they would be brought down and how much money would be released into the economy as a result of that. >> it's not just about interest rates. interest rates are important and china's levels are much higher than most other major economies so there's some capacity there but also important is the fact that, for example, china is now shifting toward more direct financing channels. so for example if you look at the corp. at bond market that's been very, very active this year. you see a lot of property developers that rely on 8%, 10%, 12%. either financing or offshore bonds. so it's a massive reduction in funding costs that doesn't necessarily go hand in hand with just the interest rate cut. >> when looking at the equity
markets, a lot of people look and see this massive direction and they say do i continue to buy or recognize that it's a slowing chi aeconomy and you st have to see a movement before you feel confident in investing once again? how am i supposed to feel confident? >> it depends on your time horizon. the market is going to be mostly responsive to the structural reforms. i don't think that people care whether growth needs to reaccelerate to 8% or 9% or people don't want to see that. they want to see that the growth is basically stable. we can have further deceleration but the most important thing is that the growth has to be sustainable. it has to be higher quality and the market will reward that with higher multiples even if earnings or gdp don't get revised up. we just need to see the economy basically stabilize at a certain level and then much more advancement and progress in terms of structural reforms.
that's what we need. >> i agree with you. that's the key in a lot of the economic data we're getting. yes the economy is slowing but as long as it doesn't get worse the market reacts but then you haven't seen that sort of recovery in equity markets like you would expect, right? i feel like in some ways they have kind of forgotten that the slow down is engineered by the chinese government and that snap back really hasn't happened that quickly. >> we've seen a little bit off the lows, right? in this last week or so i think the offshore market has reacted to a few things. one is that clearly the expectations regarding the fed rate hike has been gradually pushed back a bit. so a little bit less pressure on the currency. some stabilization in the numbers as long as it's not getting worse that's a good start and i think people like the fact that the capital flow data for the most recent month wasn't as bad as the previous month. so incrementally if you start to
see indicators start to stabilize you'll have an immediate reaction. >> but you're buying in materials of this premium. >> are you adding to your position just quickly? >> we have certainly been buying into the market dip. we think that the hard landing fears are overdone but over the medium to longer term it will take time and there will be bumps along the road and volatility. so emerging markets is still not necessarily for the faint hearted. >> that's right. you have to have a strong stomach. always a pleasure. thank you so much. head of china equities blackrock strategy. let's talk about apple removing certain apps from its store over concerns that users personal data could be compromised in some situations so apple says the apps could install security certificates. the company didn't say how much apps were effected but among those include bean choice. have you heard of this one? this is not our generation. apparently it's generated buzz
for its ability to block ads in apps. so something maybe we should be getting. >> how apps do you have? >> three pages worth. >> i go through periods where i minimize everything and get rid of a whole bunch and then i find a bunch again. >> you need to stay consistent. that's with a we need to do. >> stability. >> apple pay is expanding it's reach. so starbucks, kfc and chilis will begin accepting the mobile payment service this year. the roll out could help the tech company to broaden it's consumer appeal and adoption of apple pay which allows users to -- all you have to do is wave an iphone or apple watch now in front of a wireless reader to make your purchases. how cool is that. >> what happened to your starbucks this morning? >> i was running into make up and i didn't get a chance to hear it. >> i'm so impressed by technology. this morning have the starbucks app on my iphone.
part of my three pages and before i headed out this morning i just ordered my latte. i picked the starbucks i was going to pick it up at and i just picked it up. it had already been paid for through my app and got back in the car and rolled on to work. >> first time it uses that. >> wow i haven't tried it yet. don't you ever change your mind? like between leaving? >> you have to be committed. you have to be committed at that point. >> sometimes you know i think i'll have a normal coffee and then when i get there i see the pumpkin spice latte and go for that again. >> consistency. >> we women are allowed to change our minds. >> that's true. >> elon musk, i mean, he is now saying that apple, speaking of apple, is a tesla graveyard. in an interview the entrepreneur said that only auto engineers that couldn't make it at tesla work for apple. his swipe at their auto ambitions didn't stop there. he criticized german auto
makers. musk said their management is too old school and they're not accepting the future. >> that's harsh. >> everybody hires everybody from everywhere. it's not like they go from being newborn to working at tesla either. they have to be somewhere before they go to tesla too. >> he says it's the engineers they didn't want that's going to apple now. >> but the question is is apple also serious about building a car. we heard some of them say a car is like the new wearable. it's like the new mobile device. can you believe it? >> in apple's defense, they have been busy with other stuff up until now. they might be look at the car. we don't know. only speculation at this point and had you not had apple you wouldn't have had a whole bunch of byproducts. apple cemented the smartphone in a completely different way than what nokia had before. >> we're going back to nokia. do you agree we lith elon musk?
are the days of the german auto makers over? apple versus tesla. you can get in touch with us. find us on twitter, e-mail. hopefully we'll hear from you soon. >> of course also you can read more about elon musk's comments on our website at cnbc.com. that's on our tech transformers special report page. >> there you go. now still to come on the program, as a country prepares to celebrate it's 70th birthday, we debate the nuclear arms risk. that comes your way next.
>> we were just talking about what you can do with your apps in terms of ordering your starbucks in the morning. the online service zocdoc became one of the most valuable stocks in august. it prompted speculation that zocdoc is now eyeing the european market. we took a closer look at a few start ups already in the digital doctor booking space. >> a recent study by citizens advice found that 1 in 7, 18 to
34 years ne 34-year-olds in the u.k. were unable to see a gp last time they tried to make an appointment. 14% didn't speak to a health professional following unavailable of an appointment. they're looking to fill that void. >> technology is a bridge between this old world of doctors and hospitals and this new world. i book everything online. why can't i do that with doctors? we schedule unscheduled care. traditionally you walk into a lot of health care services but a lot of clinics would like to schedule these times so they know when the clinics are busy and not busy. >> zesty offers an online appointment booking service enabling anyone in the u. k. to book a doctors appointment with
just a few clicks. >> we got the inspiration, wow, there must be this hidden supply of appointments that you and i as consumers and patients can get access to. it was using technology to make the patients connect to the doctors and hospitals in a lot easier way. for the first time now you can get out your iphone, download an app and be talking to a doctor in literally five minutes. that's incredible. 10 years ago or 20 years agatha was unheard of. >> doctor now is a video consultation app that allows patients to speak to a physician or gp to be triaged at their own home. they're fantastic professionals but there's a real spike of demand on their time. there's nearly 400 million consultations in the u.k. and some 50 million of them are more than 7 days waiting time.
>> both doctor now and zesty see the future of digital health care services pivoting from the same point. >> we think that the use of technology will likely take a more meaningful use within health care services. that means that we're going to use things like wearable technologies and whatever there might be to analyze the data to provide doctors with a good knowledge of a patient's health to help them diagnose in a more precipitous but also more accurate way. >> things like wearable tech, fit bit, apple health care, apple has research care which is his medical records application and that's changing the doctor-patient relationship in the sense that doctors see more information. they have more to kind of make their diagnosis. it also puts patients, they can
engage a lot more and all of this actually just connects the doctor to the patient a lot more. the fear is that people think technology will do the inverse and that the doctor and patient relationship will somehow become virtual and less connected. we think the opposite. we think it will be more connected because you and i as patients and consumers are more interested in our health. >> okay. let's turn our attention to politics and we have a big event taking place in the asia pacific this weekend with north korea preparing to mark it's 70th anniversary with a massive military parade which is what they do year in and year out. let's take a look at how we got here. after world war ii korea was divided into the soviet controlled north and u.s. controlled south. a cold war was a conflict. the korean war ended with the creation of a demilitarized zone
in 1953. in 1994 we are have kim jong il succeeding and two years on intention with the south resurfaced and north korea dropped it's korean war truce. >> meanwhile they were battling horrific floods and famine in 2006. it made the first underground nuclear test. there's been a continuous ramping up and calming down of the nuclear tensions with the threat used as bargaining tool. just la month the nuclear power plant was made operational once again. joining us now from paris is the head of asia program. good to have you with us. we have just kind of gone through a little bit of a time line are we guards to north korea. how do you see north korea at the moment. >> north korea i suppose at the moment is particularly stable.
kim jong un has demonstrated in the three years that he's been in power that he's concentrating power in his hands. he doesn't really have any challengers. it's a country trying to do two things. one is produce economic prosperity for its citizens and two demonstrate to the outside world that it's militarily strong and what we'll see tomorrow is a further reinforcement of that idea of military strength. part of that involves two key things. it's nuclear capabilities which have obviously got the region and the world as a whole very concerned and two is the ability to launch what the north koreans claim are satellites but what the rest of the world sees effectively as the beginning of a development of a ballistic missile program. >> let me ask you how dangerous north korea is right now. >> it is a state we should take seriously. it has 8 to 12 nuclear devices.
a million member under arms. it's engaged in provocation with south korea. it is to quote a phrase, a real and present danger and while i wouldn't want to argue that it's unpredictable it has a track record particularly under the current leader of selectively provoking it's neighbors and trying to challenge them so we should take it very seriously. >> john. that's all we have time for. thank you very much. head of asia program. we have to take a break. we'll be back with more. it's always interesting the nuclear argument and whether or not the west goes in and why it goes in and doesn't. >> we have the noble peace prize being awarded in the next hour.
happy friday everybody. welcome to worldwide exchange. >> hi, everybody. these are your headlines from around the world. >> a sea of green across global stocks. he he questionties set to close up the week higher despite keeping markets on their toes on whether or not to hike interest rates. >> alcoa catches china's coal sending shares down after hours. >> u.s. chief michael horn blames individuals for the emissions