tv Street Signs CNBC February 6, 2017 4:00am-5:01am EST
♪ good morning everybody and welcome. you're now watching "street signs. kwaet "and your headlines. as it reports another record of production and profit. and saying it's been a tricky 12 months. >> we a tough year last year, which ended well. what we've shown is that we do run our business to manage the cycle isty and there is nobody
that should have a doubt about the prophetability under capacity, under pressure. they fall 8% in the third quarter with over capacity hurt hadding tick ing ticket prices. and says the bill should be reviewed but not thrown out altogether. >> there were couple of particular things we could tighten up but the assault on the major set of plans is greatly mistaken. and the new england patriots beat the atlanta falcons and win super bowl li. ♪ good morning everybody and welcome. you're now watching "street signs."
hope you had had a fantastic weekend. got off to a little bit of mischief. and initially rising a bit and then we fell back just a tad. so stoxx europe up just a tad and that is reflected on the european equity markets. the majority of europe trading in slight negative territory. a bucking trend in the ftse 100. by and large though a relatively be9 start to trade. you would have noted tat we saw banks rallying strongly on friday on the back of these proposed measurers from the trump administration. and it was quite a bit stronger than anticipated. so what tuz this mean for our fed rate cycle to come? let's get on to some of the main stories we've been following this morning. randgold shares rallying after
it rose by 76%. they increased dividends to $1 per share. they say it passed its net cash target. the chief execsaid investors have no doubt about the company's prophfitability. >> we a tough year last year. which ended well. we were able to meet another specific milestone. half a billion dollars of net cash, no debt by it end of the year and i think we've sewn we manage our business ands there runobody that sld the doubt about the profitability of randgold resources and the good thing is what's the year look like ahead and we are able to talk to a 10 year profitable
production profile at $1,000 an ounce gold. >> and looking at the minorers this morning. trading in positive territory with a rally coming through from a number of these companies out there the likes of randgold. glen core following along to tune of 1 and 1/4%. another area we're seeing quite a bit of activity is in the airlines. ryan air trading towards the bottom of the stock 600 after announcing the over capacity in aviation. the airline warned of a challenging year ahead, siting brexit as a concern for carriers. an 8% drop in third quarter profits and that's compared to last year. an aviation analyst. good morning. ryan air trading lower by
1 1/2%. a little bit shy of that. 8% drop seen year on year. we saw average fairs falling by 17% during the third quarter as well. how is the beginning of 2017 going to mark for ryan air? >> i actually think the release was such a positive read. i know the yields came in down 16.6% year on year. but they've garnered up to a 15% decline in the current quarter and bare in mind there was no easter. that suggests minus 12 on a like to like basis. i think the yield trend rate is actually a positive direction, although headlines was worse than guidance from the company. i think that suggests that we've had had over capacity. it will continue into the summer
season bought lot of airlines beginning to think about their capacity into next winter and we expect to see curtail plans and that upsets opportunity to leverage into that recovery and what i would call a land grab of passengers at this current trading period. i actually think it's a positive read, rather than negative. >> so you're indicating you think fares will continue to drop. 33 euros, 28 pounds per passenger during the third quarter. >> i think it's indicative of the season. in the summer you'll pay double that on an average fare. but in terms of long-term
direction, that has always been the case. eat your cost and fair that through consumer and that varies on the fuel position and we think fares may begin to stabilize by this winter but genetically it's about cost and there's nobody better. we saw that with cost improvements and guidance and 4% decline this year. so ryanair delivers the ability to inkrnl passengers to travel because it just focuses on cost quarter by quarter and that's what really sets it apart from the rest of the market. >> then at the same time i look at their comments with are eguard to brexit. how much of an impact do you anticipate this is going to have on the likes of ryanair?
>> i think it surprise to date is the way they leverage out their credit cards and still looks to be pretty robust. i think the question mark is less about the rights to fly. i think they have contingency plans in terms of how they can manage the right to fly and air operators certificates. but i think it will be the whitiness of the consumer. and so the question is does the u.k., slowing u.k. economy into next year? i think that's real wrae the question lies. too early to tell. but in this current summer it looks like a robust demand for travel to the sun belt. i think it's an issue for 2018, not 2017. . >> how does ryanair compare to
other budget airlines that moment? is this a by? >> i think if you look at the release that we've had today, we had cuts in the current trading periods from easy jet, the same for wiz. ryanair is effectively dictating the market. they are in control of the market in a degree which i thik is unprecedented in history. so i think from that perspective they gave an unchanged guidance from the march fiscal year in. i think the very fact they remained in that range just tells you they are the stronger player of the moment and to me this reminds undivided. >> aviation analyst from good body.
just want to bring you some news hitting our wires. the french presidential candidate is to hold a press conference this afternoon. so 1600 if you're watching across europe. close. . there's a lot of pressures within his own camp for him to step down after what they're calling a fake job scandal involving payments to his wife. but he'll be holding a news conference today. now -- on top of that as well. the 10-year bond yield in france rising to a 17-month high which means we're up four bases points on the day. we'll talk more about the french elections. so by all means get your questions and comments through
on france or anything. so it's on @twitter louisa europe. let's push on. shares in electroux -- an upfront cash payment of $115 million. their digital focus and direct to consumer business model. it is expected to be closed during the first quarter of 2017. . the first major german customer is suing volkswagen for reported $12 million euros for misrepresenting a legal and from
regulato regulators, this case is marking the faster first brought on in its home market. coming up on "street signs." we'll be hearing from the original co sponsor on trump's plan to quote lift the burden on banks. that and more coming up on "street signs. slightly different press conference to remember. saturday night live takes aim at the pres secretary sean spicer. we'll be covering that and more on "street signs." gh♪ h
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hi everybody. good morning and welcome back. you're watching "street signs on" cnbc. on the back of better margins, singapore also no doubt falling. keeping an eye on the meeting between shinzo abe and donald trump next week. >> they're supposed to play golf in florida. let's take a look at the nikkei. and up by 3/10 of 1%. it was the financial sector that rallied off the back of the deregulation moves by the trump administration saying they want to review the dog frank law. we saw japanese banks rallying there. also toyota reported after the close.
toyota's share dropped because of a stronger yen from a year ago. dollar was trading compared to a year ago. that's a huge difference there. we saw a similar story in terms of bank stocks rallying on the share market but it wasn't enough to offset the pressure that material stocks during the session. so the asx 200 down. and the banking stocks also rallying ahead of the rbi meeting. so we're seeing the positive sentiment. up 1/2 of 1% after reports there's progress in terms of reforms there. but the games were limited by the surprise move when the pboc announced it was going to be increasing interest rates on
short-term loans. we saw into hong kong up by almost 1% by the end of the session. back to you. >> good to see you this morning. unicredit is said to begin the largest increase. and they'll be offering that until the 10th of march. earlier when announced they had had signed a deal, this is part of its turn around plan. the british bank says it's created a new stand alone unit. once they're formally separated. it's to affect most of the
10-stocks. and president trump has signed an executive order of for a review of tdodd-frank laws. the had head of the white house's national economic counselor said the regulations are too much of oo burden banking sector. speaking to our colleagues in asia, the co sponsor of the actual original bill thds attack on the law was a mistake and there were good reasons for the legislation in the first place. >> i understand most people would rather be able to do whatever they want. let's be clear. this was not a decision by a group of politicians to make it harder on the banks. irresponsible actions by the banks essentially making loans that shouldn't have been nide
residential mortgage holders and incurring debt in complex derivative transactions beyond what they could play when the betsz didn't pay off. >> head of european equity strategists. this would be great news for financial services if we see a roll back of dodd-frank. >> i think the tide has flowed in one direction since it looks like the might be a slight bash back. and the bigger picture is what's happening to earnings and revenues. it was sort of the last thing that needed to be done in yours and we've now reached that point.
. i think it's probably good news. it's recognizing problems that have been around many years and coming up with a solution. so i think the picture for european banks is much clearer from here. >> does that include deutsche bank for example snl. >> it doesn't have retail operations in germany but but at the margin if there is a reduction in the regulation, there's going it be good as well. >> i've seen research indicating you should go east or west. that we should leave europe alone for the time being. we've got too many political entities to overcome in terms of elections and also the brexit
impact is still very unknown, plus trade deals. how is the it u.s. going to sign deals with because you need unpick some of the people. you need someone where they're not as big -- and what's the issue? european return on capital have been very depressed. it's been a rolling earnings section. and there was also a roll off effect from the emerging markets because a lot of the economies slowed and a different wave of sectorers, food and bever nl, theirs came under question.
the luxury goods. and most people didn't notice that. but now you have a situation where breath is pecking up round the world. and there's going to be earnings growth this year in europe. >> then i look at the u.s. and many investers are still looking money into u.s. equity markets. do i continue to buy the dow or sell? >> if you toouk talk to my american colleagues, they would have fw reasons to think the u.s. stock market can out perform. we just wrote a book and it's public inflation. i can tell you one of the things we're calling is the dollar to us looks fairly expensive.
we think investing in the u.s. is a currency head wind. >> which means buy basic resources, buy? do i play -- >> one of the other predictions is that auctions were rally. head of european equity strategy. now on a lighter note actress melissa mccarthy making a surprise appearance on "saturday night live" this weekend. she stole the show as white house pres secretary sean spicer. >> glen thresh, new york times, boo go ahead. >> i wanted to ask about the travel ban on muslims. >> it's not a ban. >> sorry? >> the travel ban is not a ban which makes it not a ban. >> but you just called it a ban.
>> because i'm using your words. >> "if the ban were announce would a one -- >> exactly he's quoting you. it's your worst. he's using your whierds uses them and you use them back, it's circular using of the word and that's from you. seriously, glen. are you going to start with this right out of the gate, glen. >> go online, take a look that entire skit because it's really funny. you watched it? >> yes. >> oh, fantastic bit of fun. another bit of fun for some of you maybe. the new england patriots completed a stunning comeback over the falcons as the game went to over time for the first
time ever. you watched the rugby snow. >> yes, it was fantastic. >> they managed to score 31 points without reply to take the title. julian edelman's miracle catch and lady gaga's half time performance but the victory it gives quarterback tom brady and coach bill belichick a record five super bowl rings. this is big stuff in the states, right? >> huge. >> i mean really big industry. britain's team has advanced after beating canada in the most likely of circumstances. after losing a point, the 17-year-old canadian vented his frustrations by smacking the ball in anger and accidently hit the umpire in the face.
the player was defaulted, handing victory to the brit. he said he was quote inyedably ashamed and embarrassed by the outburst. he'll remember that, right? anyway. coming up after the break, the brexit bill heads back to parliament. i'll find out how the opposition party will be handthal vote. ifn gs ico dsg wwea t ce tngus onieex ignt ltbeacenrotoctiv
good morning everybody. welcome back. these are your headlines this morning. banking on gold. ra randald reported improved prophet. >> we had a tough year last year, which ended well. what we've shown is that we run our business to manage the -- and there's nobody that should have a doubt about the prophetability. >> under capacity over pressure. ratings fall with over tupasty hurting ticket prices. marie lepen and rival macron
says she's betraying france's ideals. the biggest tech company thins united states write a brief opposing president trump's travel ban. hi, everybody. welcome back to "street signs." and a brief look at our u.s. futures. five hours to go befoerb the u.s. market opens. flattish open at the moment on the back of the strong numbers on friday and low and past expectations. 175,000. european harkets mostly pointing to the upside.
ftse a couple points lower. and no doubt people will it fo pay focus with shinzo abe. and i thought they're going to be talking about trade and currencies. >> that's one of the biggerer items this week. 107.48. let's talk about brexit. in a survey from top executives has revealed 58% feel the preks brexit vote has had a negative impact on their business. 31% say it made no differ ps at all. the coe said there was no sign of the economic upheaval felt by
businesses. the u.k. government's brexit bill which gives prime minister teresa may to start the divorce from the eu will fleet a final round of debate. the opposition labor party with leader jeremy corbin ready to unleash a whip. he suggested that front benchers may not be sacked. saying he was quote a very lenient person. >> a shadow secretary of state and international climate change as well. >> first of all, i want to get your take on this survey. 100 of the biggest companies surveyed say brexit has had a negative impactb on their
business. what should the government do? >> i was in a business in new yorksure last week. they make the hudson bay blankets. and the chief executive of that company had voted in the referendum to leave the eu. thee was the was absolutely unthinkable weicide move fords an increase in tariff. he thought we couldn't be serious. now the government must give real agerns on this point. because if they do income into play, then our businesses are go poog be at a real disadd vantage. . what we've seen is a boost to expert business because the value has dropped so
substantial substantially. giving tat assurance to business that access in the single market will be free. whatwit you like to see amended on the brexit bill? >> most important we need have part parliament throughout the negotiations. we need make sure the government is going to put in place the productions and inthe environment prodecks. they didn't think they were going to losegy of their rights in the workplace or any of their protections in terms of food safety or standards or chemicals or so on. those are very important but absolutely fundamental is if we can, at a really significant point in the process have the
negotiated settlement brought back the poes of kwaurmens. so we can see yees. she wrote on me at that point. and do a bit better. >> protectionism has become a buzz word heading into 2017. do you think people now are looking at brexit thinking trump means -- or that brexit means trump, essentially. that we're going to forge much closer lining said to the u.s. asministrati asministration. >> really interesting and fundamental point. if we were to go on to wt harks and what that would mean is that we had to increase our experts to the rest of the world by at
least thirty activity% where just to stand toil. trrsal our biggest market is the united states. 20% of all our experts go to the united states. the idea with a protectionest america we could increase the rest of our world trade by 37%. given the 20% of all our trade, export trade is going to the u.s. >> businesses are really worried about that. it. >> there's report by the times you received money are i want to hear if there's anything inhad appropriate.
the situation is very simple and tat is we don't have are plimtle parties. but only if you're a british citizen and an elector and only if you're a u.k. registered company can you donate to a political party. the donations were made by a uk registered company. over and agovern bord. akmmerica first means everye only at best can be second. i don't want to claim that to the u.k. is going to be in second place to america. the point is that we in the u.k.
must ensure that in all the trade negotiations we into if to that we look out for the interest of people in the u.k. we make sure we maximize the ben pt. trade should not be i win, you lose. it has to be how we both looks at how to alleviation and u.k. shadow secretary of state for nchg fremed chie-- further court filings are expected today over the policy. meanwhile the president stepped up his criticism of the federal judge who blocked the travel ban friday. kelly o'donnell with the it latest from florida where
president trump spent the weekend at his ma-a-lago resort. >> reporter: relief granted by a federal court and reinforced by welcome signs at international airports. for travellers whose visas were reinstated. "just cannot believe a judge would put our country in such parl. if something happens blame him and court system. >> the president tlamd he is using his ahoard. i have trukted had homeland security to check very kir lael. the giep president defended him broad side. >> making decisions about national security, it's very
frustrating. >> reporter: today one protest flew over the super bowl stadium in houston. part of the coverage is a fox interview with president trump taped friday. what he said about vladimir putin stunned even fellow republicans. >> putin's a killer. >> a lot of killers. you think our country's so innocent? do you think our country's so innoce innocent? >> i don't know of any government leaders that there killers. >> take a look at what we've done to -- >> but he's suspected in murders of journalists. >> i don't think equibbleancy between the way they do business. >> wyoming congresswoman called it deeply troubling and wrong.
>> that was nbc's kelly o'donnell on vladimir putin. several american tech companies have filed a legal brief opposals it puopposal s it immigration ban. quote inflicts significant harm on american businesses. and as you saw a bit of earlier on the lighter note, actress melissa mccarthy made spliez appearance on saturday night live where she stole the show. sean spicer, let's take a look at another clip. >> i got to show you in pictures? when it comes to these decisions, the constitution gives our president lots of
♪ hi everyone. welcome back. you're still watching "street signs." the roam in ian government has released a decree following week long mass rotests. the decree would have protected dozens of politicians from prosecution. hundreds of thousands of protesters took to the streets in what was the largest march since the down fall of the brutal dictator. now francois fillon will be holding a press conference to launch a counterattack amidst his collapsing poll ratings, according to sources close to
the presidential candidate. the french presidential frontrunners, marie le pen and macron held conferences. le pen plans to crack down, telling her party faithful that the upcoming election would decide whether france can still be a free nation. she made a campaign pledge to hold a referendum on leaving the european union unless she can renefwoer renegotiate measures. >> worse it's imposed a form of tutelage keeping us on a short leash. who can find satisfaction in an action in a face of a systemal
that has us in chains, and worse that ruins us because of its malfunctions. that's why once elected i'll announce a referendum on whether to stay or leave the eu. >> well, independent candidate macron striking a different tone at a rally across town. >> translator: everywhere we see the temptation to close ourselves off. i have the britain choice in mind to choose a path for many thought unthinkable. i am reminded of our american's friend choice's mission to guarantee peace and order on our planet. >> well, claire joiness us from
paris. two starkly different messages. they're trying to get the votes from his fillon's supporters that might not support him anymore. >> reporter: they're both trying to gather all the electors that could be disappointed with fillon. the right' wing voters are deeply troubled by fillon's struggles. you heard him. very opposite views of where they want to be. she wants national preference on jobs and welfare while he advocates open borders and the national front leader says immigration is a problem, macron says it is an asset for france. of course what is on everybody's mind is what is fillon going to say in the press conference this afternoon at 4:00 p.m.?
many commentators are expecting him to say that he remains on the race even though there's big term oil about the alleged work that his wife held at the national assembly. he has a lot of pressure. he's under a lot of pressure within his political party. but it is expected that this afternoon he will say that he's ready to find and to remain in the race but then again we might have surprises. this is full of surprises. what is for sure is that -- so there's a lot of pressure but the problem for the right is that they don't have an alternative, a plan b. fillon had 4 million people vote for him in the primaries. he said i'm not going to be the plan b and of course this 4:00
p.m. press conference is going to be followed by everybody. >> joining us live from out std eiffel tower in paris. a litical analyst. do you think le pen can beknl president? >> i think she's not a chance in the second round. one is that front national is still toxic. there's enough french people that would never vote for le pen in the second round. when asked what they think of her on a scale of 1 to 10, 60% put her between 1 and three. i think other big reason is that the french remain attached to the euro, to the eu even if not totally in love. and every time she goes on
stage, i think her chances revees. .er for i plrp had it's okay. at the moment you have to put him as the favorite. he's very much liked by the french people at large. one is fillon comes down. >> and i think the third challenge is that he has to stay quite vague in orderer to maintain that centerest coaliti coalition. >> do you think whether or not she works according to the agreement, that can boil over? >> i think fillon was very much in the position he was.
republican kacandidate by virtu of the fact that he'd been the favorite for too long and fillon was default candidate. and it only took scandal or small issue to show you that. >> what kind of ecnauj forgram does france need? >> clearly a number of structural issues in the economy. macron at least showed the ambition to deal with a number of those and had the advantage of having some of the left on his side. so he could immobilize enough to pass this up. marie le pen is promising to close france off to the rest of
the world and for us as a house we'd say that was a step backwards, rather than forwards. >> you got to wonder what would happen with franco/german relations as well. >> i think the idea that the eu could function with marie le pen. on the other hand if we get someone like macron, i think that could energize the french/german relationship. he seize the relationshipicize stlin. uh-huh u fune fst pch -- thank you very much for being with us.
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good morning. the dow coming off its best day of the year, the nasdaq closing at a record high. a new round a new week for the markets. president trump slam as judge after they reject the request to reinstate the travel ban. and super bowl li. the highlights to. >>. monday, february the 6th. "world wide exchange" begins now." ♪