tv Worldwide Exchange CNBC November 13, 2015 4:00am-5:01am EST
welcome, your watching worldwide exchange. >> these are your headlines from around the world. >> friday 13th spooking investors as the global stock sell off intensifies. oil and copper sitting at 6 year lows as the federal resort policy makers line-up behind a december rate hike. >> it's not as if after the first tightening of interest rates policy will be tight. it will still be quite accommodative. still quite a bit of support for the economy. >> germany and france showing small signs of growth with gdp
data just above the flat line. hitting the wires now. >> no comments on a report. in talks on a $42 billion takeover sending shares to the top of the stock 600. and nordstrom shares losing a fifth of their value in extended trade with the u.s. retailer cutting guidance after earnings missed expectations. >> hi, everybody. good morning. thanks for joining us. happy friday carolyn. >> it's the 13th. did you know that? >> i did know that. i did know. we might be mentioning a couple of friday 13th facts here on the show. let's talk about the oil market report which is just coming out and just to summarize a couple
of the points they're talking about how crude oil benchmarks were marked during the month of october. this was due to continue global markets limiting the impact of strikes in brazil. they talk about how global demand growth is forecast to slow to 1.2 million barrels a day in 2016 after surging to a five year high. oil supply breached $97 million a day in october. non-opec output he covering in the previous months and they're looking at supply forecasts to contract by more than .6 million barrels a day next year and holding steady in october as well. declines in iraq and kuwait offset by the higher supplies in libya, saudi arabia and nigeria. so the oil market report just hitting now. trading higher on the contracts.
wti, at 41.91. we're close to that 40 handle for wti. >> that's right. moving a little bit lower say some. others say we'll see recovery but it might have to do with global growth. >> yes. let's get to that right away. preliminary 3rd quarter gdp numbers missed a tad. up 0.9% year on year. this is verse a consensus forecast 0.3% quarter on quarter and 1% year on year. so italy's economy growing slightly less than expected in the third quarter. once again, trade is one of the big factors that is dragging on that economy in the third quarter and that was a similar story for germany and france. germany and france both logging gdp growth of 0.3% in the third quarter that was in line with expectations. the german figure slowed on the previous quarter due to iz export exposure to emerging
markets. weak foreign trade also weighing on france but that was offset by strength in consumer spending. let's dig deeper into those figures with the head of economics research at barclays. i want to kick off with the german number and the drill down. private consumption was the main driver but that was investment and net trade. which of the two worries you more? >> the net trade issue is a global one. you look at the u.s. numbers we're in a similar situation. global trade volumes extremely depressed. we're still globally in an investment manufacturing sector if you want. growth is driven in the u.s. as well as europe by consumption but you make an important point, an economy like germany with full employment, very, very easy financial conditions and everyone encouraged to borrow and to invest. we still have no investment and that is a medium to long-term sign for what is considered to be the power house of european growth and that's germany.
>> the trend, though, and where we're heading in growth, are we going to continue to be lead by developed markets in growth? >> it looks like it for the coming quarters. people are getting more constructive around china but it's unlikely china can sustain the growth they want to have. it looks to us, they can create short-term stability by pump priming the investment in the old industries that they did. consumption is doing well in china as well by the way. but overall, china is slow. some emerging markets m coing out of recession like russia and brazil eventually but this is not a theme for the next few quarters. >> where do you think rate hikes can lead us state side? once the fed starts hike as good that going to make a big difference to the global growth story? >> i think it was said earlier that people said, you know, hikes shouldn't worry you. overall the monetary conditions
are still extremely accommodative. problem is of course once you hike for the first time after such a long time, markets are very likely to be nervous about it. our message in our global out tps look we just came out with is don't worry about it. it will be a hike and the fed has given the signal that they'll keep an eye on global development and if things turn sour they're likely to just hold hikes. this would be a cycle that is slow, gradual and possibly interrupted as soon as things go off track. >> let me take it back to the euro zone because in an hour's time we get the euro zone quarter on quarter figure and a print around 0.4%. if we get that number that would be the 10th consecutive quarter of expansion. it doesn't sound so bad. we're not in a recession. does that warrant more easing from the ecb in december? >> that's a very good point. the real economy was actually not doing that poorly. it's basically inflation considering the ecb at this
point and you look at the forecasts, this year we're going to have almost flat inflation. next year we think about 1% and 2017, 1.5. their target is two and this is what president draghi reiterated yesterday in speeches and newspaper articles and interviews, their mandate is 2% inflation and they're still far away from this and this drives into what we forecast in tess. >> we take a look at the euro dollar exchange rate. we're changing hands at 10764. and what you highlighted in a recent report is there's a risk that the rapid exchange rate movement will deter the two main central banks from implementing their diverging policy scenarios. so you don't actually think that the fed might hike in december if the dollar gets too strong or if the euro is too weak? the ecb might hold off? >> you picked a part of the report which we should put out
as a warning. our baseline is that it will happen. we think the ecb will ease and we think the ecb will cut by 10 basis points to minus 30 and the fed will hike. therefore you get the divergence. our dollar euro forecast is for one which dollar can reach parity but we do warn that central banks do watch each other and if the move happens without them acting very rapidly they have to take that into consideration. so we use it as we do think there's enough commitment if you see the rhetoric by the fed. rhetoric by the ecb. very difficult for them to turn around and deliver what they told markets to price. >> divergence still the main trade for december. christian thank you for your time. head of economics research at barclays. how are the markets looking this morning? >> a little soggy. we were called slightly lower and a bit more selling taking place on the equity markets at
the moment. just a bit of red out there and checking in on our main markets to show you what's happening we did see wall street suffering the biggest drop since september and we saw real selling pressure coming through through and pharma for example. some of that translating through here. asia overnight. it's been a tough session as we well. let's check in with sri in singapore. it's the fall we saw in the commodities complex. i'm talking about the complex energy shares lower and hong kong was the main underperformer
in the broader region and resources heavy air 200. the other factor here is that we had no shortage of fed speakers overnight playing up the idea of a december rate hike. so asia still trying to price that in and the price action in the markets and equities and the currency market as well with the dollar standing tall continue to tell you that we're still a little bit uncomfortable and edgy about the prospects of a higher rates environment if the fed does pull the trigger on a december rate hike. so that's where we stand. fairly grim. we're still trying to price in the impact of higher rates and we're feeling the heat from weaker commodity prices and the global oversupply in oil especially. that's where we stand. back to you. >> thank you very much. we'll be hearing from you later in the program. >> just to show you the closes we saw yesterday, we were lower than 1.5%.
less when it comes to the nasdaq composite out there but risk taking a slight step back again with what was seen as being good news. namely the stronger non-farm payrolls data a week ago might be interrupted as ify news because we are on track for the fed rate hiking cycle which could start as early as december. we had all the fed speakers yesterday giving their indications. we'll chat more about that. also to show you what's going on in commodities because we had a lot of movement this past week. we were just talking about the oil report hitting wti and brent just trading a bit higher. up by .25% or so. and then you've got copper. over a 10 year chart, over 10 year change you're looking at a change of something like that 34% to the downside. we're currently flattish on the price of copper but not to ignore the massive moves we have
seen. right around 6.5 year lows at the moment. the weekly drop is what we're setting ourselves up for and we're lower somewhere in this region on our own. it's a widely used material in industrial industry and metal so it's a big gauge for the broader economy. so that's why we're looking at that so closely. now i was talking about the fed speakers yesterday. stanley fisher saying that the strong dollar is restraining inflation in u.s. exports and delayed the central bank's first rate hike. he also says that the u.s. economy is riding it out well and it might be appropriate to start raising rates in december. william dudley also suggested the u.s. economy could handle a rate hike in december.
i'll be seeing if it confirms my expectation to further tighten the u.s. labor market. after lift off commences i expect the pace of tightening would be quite gradual. >> speaking earlier on squawk box, the oecd secretary general warned that it compromises the influence of central banks when it comes to economic growth. >> central bankers have been the heros of this story since the recession hit us in this major financial and economic crisis hit in 2008 but the problem is they have run out of room simply because they're at zero interest rates in practically all the major economies so it's really the time for the treasuries and ministers of trade and industries and innovation, for
education and competition and rnd et cetera. they'll keep us growing in the medium and long-term. that's with the governments and not the central banks. >> syngenta told cnbc it has no comment on a report. it rejected another takeover bid. they are said to have rebuffed a $42 billion from chemchina. the rejections stem from regulatory concerns however the report adds the two companies have not broken off talks and an agreement could still be reached in the next few weeks. take a look at shares in syngenta this morning. now some of those gains but still up by 7.4%. now syngenta has been a big target for a number of years now. the company was first approached by monsanto in 2011. the offer was rejected. another offer came in 2012 but that too was rejected.
they then came back to the table this year with a series of sweetened offered but ultimately walk addway dropping the bid for syngenta. that was worth $47 billion. now syngenta ceo quit soon after the breakdown of those talks and the company has now reportedly rejected this chemchina offer a well but you have to wonder whether this time its about regulatory concerns as the bloomberg report cited or whether it's still about price. i have a feeling that maybe syngenta will actually accept a price that is closer to monsanto's bid. that was $47 billion and they said that significantly undervalues the firm. maybe they see, look, there's no improvement in the commodity price environment. we're actually going to have to go with a bid. we don't have much choice. everyone is talking to everyone in that environment right now. that's what dupont, dow chemical ceo said. >> it's incredible.
we went from 38, 40, i'm rounding up and now what's the last one here? >> 42. >> $42 billion offer. but per share, like, it's increased and every time the analysts have said look they might go for the one that's $2 a share higher i'm going to be cynical here and a lot of it might have to do not so much with the actual price but who it is that they're teaming up with. this is pesticides and agriculture and growing stuff. it's all of these people that are going to exist and by 2050, i mean, we'll be topping out 9.5, 10 billion or something like that and there's protectionism possibly in here maybe. this is just speculation but maybe some protectionism also. i was having this discussion recently about whether or not you would see a very big and important pesticide maker or seed supplier in europe teaming up with a u.s. one when you have all of these discussions about gmo and what's healthy for populations. there's big differences still
between how they make their food there and how we make our food in europe for example. >> it's a fair point but i think the economic rational is still the overriding theme here because commodity prices, they have slumped. there's too many players in the market. we have the buyers, monsanto, they all need to cut the rnd. they need to cut costs as well and pull up their resources. so i think we'll see a deal in one way or the other. but the big question is who is going to be involved. >> and also you might have a ceo who stepped down after all the failed bids and the next one wanting to, you know, be sure that he can fulfill the mandate of doing a deal. all of that stuff. let us know what you think. love to hear why you think that a syngenta deal isn't happening or whether it will happen or not. >> okay. we're going to go for a quick break but still coming up on the show, is nordstrom hanging on by a thread? we take a look at why the u.s.
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welcome back to worldwide exchange. a huge moment to the u.k. and india. that's how the prime minister described his speech to british parliament yesterday. susan is where prime minister modi will be appearing this afternoon. susan, you have to think that he's been sitting with his wife at some point saying he just wants to come out and say hello, london. 60,000 people. >> yeah. 60,000. that's right. this is going to be the largest reception they say for any visitor. any visiting leader outside of the pope. there's going to be a warm reception with the 1.5 million that live here in the u.k. but beforehand they're in action. david cameron and modi are
walking around and they're going to head to 10 downing street and then lunch with the squeen at buckingham palace and he'll head out here to wembley stadium where he will be addressing the crowd. the biggest fireworks display promised as well ever to be held in the u.k. and performances by stars and the orchestra and modi will make his speech as well but this is also a business event and trade investment event as well between the two. so he is here trying to drum up support and investment. maybe 9 billion pounds in deals expected to be signed over the next few days and this will, you know, encompass a lot of different sectors. finance, industrials, we're expecting defense as well and climate change mind you. i should point out this is the first visit by an indian prime minister to the u. k. david cameron has been to india
three times. >> thank you for that. let me pick it up here. i want to bring you the latest coming from deutsche bank. they expect a very high burden from litigation in 2015 and 2016. that's the only comment that we're getting from the cfo right now. shouldn't be a surprise. they set aside huge amount of money more than 3 billion euros so far this year. even more than that to deal with litigation to deal with some of the legacy issues. >> well, the state bank of india teamed up to create a bond index for india. now the new index is to allow them to track income securities and help open up access as well to india's debt markets. now the ceo of the state bank of
india capital markets. good morning. >> good morning. >> how are you? what does this deal mean for you? >> the deal is very exciting as has been included in the prime minister's communication announcing the deal. one of the feedback is we want to have income and it needs to build up and we need certain instruments and we're responding to that need by creating the indices looking at on shore and offshore indian bonds in order to create a benchmark that investors can use. now this is huge. they have $2.6 trillion. some of which is in fixed income securities. you're looking at yields and
india is in a bright spot at this point in time when you compare across different markets. >> can everybody use this? >> the initial adoption will be through spi mutual fund which is going to launch a product on the back of it. so the answer is yes it will attract retail investors as a start but we hope everyone will use it. >> if we take a step away from the bond market, focus on equity markets looking at stats, even after the big market crash this year, china shares are up 12% this year. mumbai shares are down 6% even though india is out pacing the growth of china. at what point are we going to see a rerating of india stocks? does it have to do with the reforms implemented? once we get the rate hike out of the way? what will it be? >> i think, you know, the key thing is equity markets have certain drivers but if you go back to it, as you rightly said,
india is liberalizing at a fast pace. you've had railways having 100% fdi allowed in them. >> but there's a reason the shares are underperforming because we have seen a very, very slow pace of reforms. a lot of disappointment over that. there's been set backs on the political front. >> actually i would tend to have a slightly different point of view which sarnd, at the end of the day it's a story that someone shared with me. if you think about a super tanker and if you're turning the direction of a super tanker and you're trying to build momentum it takes time. now imagine india which is a federal structure you're moving them in a certain direction. but if you look at the government's intention, the intention is clear. it is about reform.
it's about the intent to make sure from a central government perspective that we have the right policies in place to attract investment and if you look at india recently ranked as number one in the poll position for fdi in the first half of 2015. $31 billion. >> thank you for your time. appreciate it. the ceo of state bank of india capital markets. >> now, we need to take a small break. loads coming up in the next, what, hour and a half that we have left on the show? just looking at european equity markets again trading lower at the moment. we'll recap the week for you and we'll chat much more about friday 13th. spooky. ♪
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oil and copper at 6 year slows as they line-up behind a december rate hike. >> it's not as if after the first tightening of interest rates policy will be tight. it will still be quite accommodative. so still quite a bit of support for the economy. >> germany and france showing small signs of growth with gdp data barely above the flat line but italy just misses expectations.
>> no comments on a report the swiss agribusiness is in talks on a $42 billion takeover sending shares to the top of the stoxx 600. >> nordstrom shares losing a fifth of their value with the u.s. retailer cutting guidance after earnings miss expectations. . all right we have more and more gdp data. this is a very very strong number compared to the forecast of 0.4% in the reuters poll. now if you take a look at the year on year figure that is a clear miss. 0.5% year on year versus the 1.8% average forecast so seems like there's a huge divergence from the forecast but if we focus in on the quarterly figure, 1.4%, that certainly blows past expectations. quick look at the euro dollar,
107.53. we're off by 0.6%. >> let's move on and talk about how we have seen performance shaping up this week on an equity front. european equity markets off quite a bit. seeing a bit of selling since monday. the ftse off. you have the cac and smi lower in the region of 2 to 3% and the dax down by shy of 2%. a lot of volatile tiity and peo following what's going on with all the fed speakers this week. the ecb being one of the main things we have been watching over the past week with draghi speaking as well. now the u.s. markets as well. the dow off and s&p 500 and nasdaq down by 1.25%. >> they got spooked by the fact that the fed is getting ever closer to hiking rates. >> are you superstitious?
>> i am not? are you? >> so you'd walk under a ladder? no problem. >> of course. i'd pick up a cat. of course. >> and there's something about spitting -- >> i never heard that. >> apparently it's unclear why it's feared. some historians say it was surrounding events from the late 19th century. the italian composer who died on friday 13th apparently was the first noteworthy person to have drawn attention surrounding the dates. other say it's because of biblical origins and of course you know, oh s that the movie? i can't see anything -- airlines, they do actually suffer from severe losses on friday 13th because people just don't fly and of course you go into an elevator every now and again and there's no 13. >> but for consumers it's better because ticket prices are lower. >> yeah. >> i've seen stats on that.
if we take a look at the markets, now friday 13th, if you have it in november it's spookier than other times of the year. >> you still can't watch it. >> no. >> i can't believe it. >> i can't do scary stuff. >> the s&p 500 is negative 66% of the time on a friday 13th in november. what's up with november? >> i have seen others say it depends on where you start and we're pretty market neutral on the 13th. >> except for november. >> airports, many don't have a gate number 13. >> i've never flown from a gate number 13. >> no, i don't think i have either. >> i'm always like 4b. two hours in that direction. >> that's true. >> anyway, are you superstitious? do you fear friday 13th? write in and let us know. either at carolyn cnbc on twitter or email@example.com if
you're on good old fashioned e-mail. my blood pressure, my heart -- >> it's over now. you can relax. >> do you know somebody took me to watch the opening premiere of hannibal and we had front row seats and i watched the entire movie sitting like this. there were pillows because it was a fancy chair and i watched the pillow for two hours. >> i'm not going with the movie theater with you to see a spooky movie. ferragamo shares are down sharply after third quarter results showed weakness in china and the united states. the luxury goods group said it was below expectations of 58 million euros. asia pacific, traditionally the group's biggest market experienced a 5% decline in sales during the first nine months of the year. >> shares in bouygues trading higher today after a 13% gain of operating profit in the first nine months of the year and also
confirmed it's 2015 targets. improved conditions at its telecoms business and increase in construction abroad. >> now cisco systems rose 43% and revenue more than 3% beating forecasts but the second quarter outlook is below analyst estimates. slowing order growth due to currency issues and macro economic factors. shares fell 5% in after hours trade and germany off by 5.7%. the ceo will be on squawk on the street today in a first on cnbc interview at 9:10:00 a.m. eastern. don't want to miss it. >> now nordstrom has reported disappointing 3rd quarter results and cut it's outlook. sales began to fall back in august across all categories including online and at both it's full priced nordstrom stores and it's off price rack locations. the company says that shoppers were buying fewer clothes and moved quickly to mark down goods that weren't selling. now as a result it opportunity end the quarter with excess
inventory like some rivals. nordstrom falling almost, well, some 20% in after hours trade. currently down now, what? 20% in german trade as well? >> let's get back to the fed. lots of fed speak this week. stanley fischer says the strong dollar is restraining inflation and u.s. exports and delayed the first rate hike but he says the u.s. economy is riding it out fairly well and it may be appropriate to begin raising rates in december. meantime, new york fed president william dudly suggested the u.s. economy can handle a rate hike in december. take a listen. >> i think it's quite possible that the conditions that the committee has established to begin to normalize monetary policy could be satisfied. i'll be evaluating the information to see if it confirms my expectation that growth will be sufficient to further tighten the u.s. labor market. after lift off commences i expect the pace of tightening
will be quite gradual. >> but it looks like the fed might be on course for major policy divergence with the ecb. draghi hinted more easing might come at next months meeting. >> in our december monetary policy meeting we will reexamine the degree of monetary policy accommodation. >> well, joining us now is the managing director of fx strategy at rbc capital markets. good to see you this morning. so, with all of the fed speak that we had yesterday with draghi's comments as well, are we going to manage to see the euro dollar moving lower or are we going to see the 107, 10750 until we see some action in december. you have the divergence of monetary policy and then in the other direction you have the on going correlation to general risk appetite so on days when
you see equities sell off euro dollar tends to move higher but the fundamental driver is still lower and our target is parity in 2016, first half of 2016 and likely we'll see a retest of the 2015 lows before the end of the year. >> do you think that there's a chance that the ecb might choose not to act in december? not to give us an extension to the quantitative easing program or a cut in the deposit rate because of the euro having come off so much? >> it would be very unusual. draghi never disappointed and the ecb is look at financial conditions more generally and there was tightening in the summer and that's the thing they want to counter act with it's positioning. >> what can you tell us about how bullish investors still are on the dollar?
do they still widely expect a rate hike in december? what can you tell us about positioning in the euro as well. do people expect that mario draghi might hold off on easing more in december? >> there's an increasing consensus that the fed will go in december certainly compared to a month ago when it was far more touch and go and consensus that the ecb will do more as well. but i don't think positioning is as heavy as you might think. we saw a lot of lightening up through the summer and at some point there were quite a few people going long euro dollar and even though that position in the short euro dollar positioning has rebuilt in recent weeks i don't think it's as heavy as earlier this year and it does give some room for euro dollar to move further to the down side. >> quick question on commodity prices and commodity currencies. we saw a sell down of many of the currencies. but there's one pair that was the aussie dollar against the green back which held up pretty well all things considering. i guess it's still in part of
the very strong jobs report. what do you do with that pair? >> my favorite way to play the aussie dollar would be against the canadian dollar. i'd be a seller of around 95 i think. we're going down into the 80s and there's a lot more down side in that pair. >> okay. thank you so much for that. managing director of fx strategy at rbc capital markets. let's get back to one of our top stories. syngenta told cnbc it has no comment on a report that it has rejected yet another takeover bid. the firm is said to are rebuffed a $42 billion offer. that's according to reports from bloomburg which says the rejections stem from regulatory concerns. however the report ads that the two companies have not broken off talks and an agreement could still be reached in the next few weeks. let's discuss this further with christian, the equity research
analyst who joins us on the line out of frankfurt. thank you for joining us. look, this bid from chem china came out of nowhere. do you think if it went ahead, would it make sense? >> it's certainly what makes sense for chem china. they own 60% of assets and they would add the innovation angle and also get sizable asset which is also innovation driven. they have a trades portfolio where they are lacking penetration in the u.s. >> according to a report by bloomburg they rejected the offer because of regulatory concerns but there wasn't a mentioning of the price and this was the key deal breaker when it came to monsanto for example.
do you believe that management would be more open to accepting a bid that's maybe very close to the monsanto bid because now they're more realistic about what sort of price they can fetch in this environment? >> it was an unclear mix between cash and shares. if the deal was straightforward cash offer they would have to consider that deal. >> good morning, how much do you think this could be down to just a ting of protectionism coming from syngenta that is in reality perhaps also about who they want to team up with. these are important areas where regards to food security and views on gmos and how crop has
grown. do you think there's an element to that? >> let's leave aside the share price for now. do believe that operationally syngenta is fine just by itself which was also the defense strategy of syngenta's management at the time when the monsanto deal was on because they do own the 57 u.s. dollar agrichemicals market and they are a great trades portfolio and they're the only company which can credibly actually have that in the credit strategy which they proposed five years now. they have a sizable franchise so i don't think they need a partner by -- they are just fine stand alone. if there was an offer from a share price point of view,
management does have the duty to consider that. >> what do you do with all the stocks in the agri chemicals space? are they a buy because of the talk of consolidation. >> if you look at consolidation in agrichemicals that industry has extremely consolidated. so, you know, the top three companies own almost 60% of the market so i don't think there's further need for it. to obviously look at ago ri chemical franchises because it does make sense to come with
that approach. >> thank you. really appreciate it. he says syngenta is fine by itself. sinking in trade after the company announces it is shutting plans as it shifts it's focus to specialty drugs. >> it's effecting roughly 1200 jobs and will lead to restructuring costs of 1.6 billion u.s. swiss franks through 2021. >> still to come right here on worldwide exchange, when it comes to start ups in europe there's no shortage but what are conditions like for entrepreneurs looking to raise money and expand. we'll have more facts on friday 13th coming up of course too. ♪ today, we're seeing new technologies
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$2.6 billion. now start ups looking to go public state side. what are conditions like though in europe for entrepreneurs looking to raise money and expand? well, nancy filed this report from the tech festival in finland. >> the time has never been better to be an entrepreneur in europe. that was the message from skype founder who says the number of unicorns are on the rise in europe as well as the number of exits and the funding coming on to the continent but the big question remains with unicorns on the rise, what will it take to get the $1 billion start ups into the $10 billion category? that's a question we're putting to investors and start ups alike asking whether or not the climate in europe was right for encouraging further growth. more exits. more entrepreneurs but to get more european companies to scale
it's about more companies thinking like the finish and like the israelis probably thinking global from day one and then helping them scale internationally. >> our goal is to make one universal camera a browser which recognizes things and gives people content. we don't want to be the owners of the content. we want to be the platform that allows people to create the conte content. these players actually enhanced the landscape. >> that's just a matter of time and what is so amazing today that we have so many fantastic companies here in europe but as i look forward i'd like to see companies continue to grow and become really big but also employing thousands of people. >> as you can see investors and
founders alike are all abuzz. but the big question remains does europe have what it takes to go from good to great when it comes to taking on the giant silicon valley rivals. >> let's continue talking about start ups and talking about companies that are just trying to find niches. it's one of europe's young tech companies with silicon valley sized ambitions. now the online stylish service four men raised 38 million euros in venture capital funding. money it's using to fuel it's international expansion. oh he's having fun. the co-founder is with us here in the studio. tell us about outfittery. >> we're a personal shopping service for men only. we discovered that the main group is highly underestimated and every customer that signs up gets a personal stylist and then gets a box delivered to his
doorstep which could look like this one that i brought here. >> you brought an example. >> so we have this here. this is a personal handwritten note by your stylish and i even brought the beer. i thought this might be nice for the british men. >> a spare of choose and belt. it's the whole thing. i was looking online. so you have different pictures of men's outfits and then you just click that outfit or is somebody actually putting it together especially for you? >> yeah. it's a real person putting together this outfit for you. so we have 150 stylists now in our office in berlin and they are on the phone and in contact with them all day. >> i wonder if my husband is watching because i think that's a great idea. >> a lot of wives are signing up
their husbands. >> that's what i'm thinking. i don't think he would sign up himself. but if it's a subscription service but it's not. it's an ad hoc basis. if it's not the subscription service how do you plan your operating cash flow because it would be tough to forecast that. i guess there must be a lot of uncertainty around that? >> sure so it's no forced subscription. it's more an ad hoc but we have a high retention rate. we have very loyal customers. it's the good thing about men at least. they're very loyal group. at least when it comes to fashion so many of them come back because they see the advantage. so once you gave your stylist all of your information she knows how your wardrobe looks and she can complete this in further boxes. >> let's talk about funding. you secured roughly 40 million euros in funding for a number of investors but they have been from europe and one of your
investors talked about the funding gap that many of the european companies face. just how difficult was it for you being a european start up company securing that funding in europe because it's such a wide gap when compared to the u.s. >> building a start up is never easy. there's a lot of sweat in this company and all our passion and energy going into this company. so it's never easy to secure funding but we were really to find great investors that are supporting us and on the same mission as we are to dress europe's men better. >> so how big is turnover now. >> we're not talking about that. i'm sorry. we have 250,000 customers. >> and this is over how many years? >> four years. >> four years old. it's a market where most shopping still happens by women online or you look at the big ones and you go on and know what you want. is this teaching men how to shop more by themselves as well by
helping them. >> in a certain way. our mission is to make men happy in a way and take the pain out of shopping for a man and many men just don't enjoy to go to some huge online catalogs or into the brick and mortar stores and being completely underwell med so we bring the relevance and personal things to them and they choose from the box. >> sure. i'm just thinking the majority of our viewers might interest interested in this. >> might be. >> maybe some of them enjoy shopping. who knows. anna, thank you for your time. co-founder of outfittery. >> this is a fantastic picture story. a skateboarding dog in peru has broken a world record. no, we haven't gone barking mad. auto was one of around 650,000 people and and malls who are taking part in a world record's day. he broke the record for t quote, longest human tunnel travelled through by a skateboarding dog. take a look at that.
>> the only reason i'm vaguely humored is because he looks like he's having fun. >> he is. and he's steady on that skateboard. >> think about how hard it is to get your dog to sit. >> i couldn't do what the dog was doing. >> no. >> auto won for dipping through the legs of 30 humans and managed to kick off using his paws and shifted his weight on the board to turn left and right. very skilled dog. >> how do you also come up with like let's do this to get in the world book of records. a skateboarding dog through 30 people's legs or whatever it was. >> that's a very good question. quite random isn't it? >> still to come on the show. freaky friday. friday 13th upon us. a date traditionally thought to be unlucky. will the date spook wall street? we'll be looking ahead, next.
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hi watson. annabelle, your birthday is tomorrow. i'm turning seven. what did you ask for? a princess. and a pony. you like things that begin with p. i like pink frosting too. will you have a cake? yeah. i was too sick to have one last year. the data your doctor shared shows you are healthy. are you a doctor? no. i help doctors identify cancer treatments. i want to be a doctor someday. i can help with that too. watson, i like you.
friday 13th spooking investors as the global stock sell off intensifies. oil and copper sitting around six year lows as the federal reserve policy makers line-up behind the december rate hike. >> it's not as if it will be tight. it is still providing quite a bit of support to the economy. >> static on the line. sis coe