tv Street Signs CNBC August 31, 2017 4:00am-5:00am EDT
. welcome to "street signs." i'm gemma acton. these are your headlines brexit talks move ahead and the stakes get higher with every tick of the clock. we spoke to the european parliament's chief brexit negotiator who says britain can't have its cake and eat it >> apparently some people think or dream that they can have all the advantages of the european union, free trade, single market, customs unit without any liability, without any
inconvenience. british prime minister theresa may says the uk will build the closest, freest trading relationship possible with japan as she continues her post-brexit trade building mission. difficult to stomach carrefour shares sink to the bottom of the stoxx 600 bringing rival casino down after issuing a profit warning on declining margins. battle stations. president trump hits the road to campaign for a tax overhaul, but there's a lack of specifics and plenty of opposition in congress good morning welcome to the show. let's look at how european markets opened there's more green than red on the screens. taking the lead from a positive u.s. close overnight and positive momentum out of asian
equities this morning. the overall market up by 1.28 points, so just over a third of a percent so far today let's look at how the individual bourses are trading across europe it's really the xetra dax which is at the highest, crossed the 12,000 point eventually and is now up again around half of a percent, around a quarter percent up for the ftse 100. let's look at which sectors are driving the markets. it's basic resources in the lead, up 1.4%, also seeing strength out of construction material, led not least by french bouygues, which reported good news this morning retail is the laggard, dragged down by 1.61% on the back of carrefour's profit warning which is pulling lower its rival casino let's get into some of the
stories in more detail let's go back to carrefour, which saw a dramatic fall in its share price which is weighing on other supermarket chains with the like of casino, tesco and there's a sting of stock trades, with jeffries and jp lowering their shares pernod ricard was boosted by strong sales by the u.s. and china the owner of absolut vodka raised its dividend by 7%. let's switch out to brussels, brexit negotiators from the uk and eu are running into disagreements as the talks reach the final day. the officials on both sides
exchanged barbs. the british team says the eu is too rigidly tied to guidelines, the eu says the uk is short of ideas. negotiators have a little over a year to agree on withdrawal terms. willem marks is out in brussels today. in a couple hours time there will be a press conference between david davis of the uk and the chief brexit negotiator for the eu, michelle ba barnier what can we expect to hear >> i imagine what both sides are hopping for is more clarity on what we've seen the last few days of negotiations the main sticking point seems to be the divorce bill. the european side back in july put forward their own methodology for how to calculate it the british have not done that publicly in terms of a final number neither side wanting to commit to one one of the other big issues is european citizens rights in the
uk after brexit, the date for that is not set entirely the deal around their rights not confirmed. the british have not yet confirmed what they're willing to do. that's something that the brexit steering committee chairman inside the european parliament was not very happy about let's listen to what he said about that >> what we need to do is not to introduce now a new system of new status for those citizens living in the uk and then in the continent. we need to agree on a system in which all these people can keep their rights as they have now. european democracy and british democracy has not been established to diminish the rights of citizens but to protect rights of citizens so what we are looking for a system in which the eu citizens
have the same rights in the future as we have today. we want to guarantee uk citizens in europe continue to have the same rights as they have now we are very, as a european parliament, outspoken about that we think, for example, that the uk citizen who lives in germany, for example, after the withdrawal he has even the right to go live in another country of the european union without a problem. and that all these citizens, european citizens, uk citizens, they have the right to vote in local elections for example. that is continuing to be the case >> do you think the public pressure, whether from businesses or citizens themselves, whether it's from the media will have a role to play in softening the uk position on that >> you see what is happening economically the value of the pound, the
inflation, that it is clear that the new position of the labour opposition is influenced by that vrn >> are you surprised there's not been a quicker resolution? >> on citizens right, i agree. so that's the reason why we in the coming weeks will go -- will approve new resolution in european parliament, pressing both sides pressing the negotiators to go forward with it. because, let's be honest, with the biggest victim of this whole story, the citizens. citizens will have problems today. we receive hundreds and hundreds of letters of eu citizens, also uk citizens living on the continent complaining about the new practices by the home office
in britain, but one or other public authority in a member state of the union, making it already difficult for them to continue their life at both sides of the channel >> of course the european parliament has a significant role to play in this they have the ability to veto -- >> unfortunately we seem to have lost willem in brussels. we do have -- we did have live footage of tokyo where prime minister theresa may is meeting with japanese prime minister shinzo abe we'll try to bring you those pictures shortly it's the welcome ceremony underway at the moment in the meantime, british prime minister theresa may says she is confident the uk can build a close trading relationship with japan after brexit she made the upbeat remark while addressing a business forum in tokyo. her japanese counterpart, shinzo abe sounded more cautious
calling for increased transparency in brexit negotiations we have akiko out in tokyo what should we be watching for in the discussions between prime minister theresa may and prime minister abe >> yeah. let me point out that we are awaiting that joint press conference between the two leaders, set to kick off just under an hour from now as you point out we did hear from prime minister abe as well as theresa may addressing that uk/japan business forum. you mentioned those comments coming from theresa may. but prime minister abe striking a more cautious tone saying, yes, he did have trust in the uk economy post-brexit. he believed it would continue to be a base, important base for japanese manufacturers, but he also said it was important for brexit negotiations to be more transparent. a lot of japanese business leaders are watching this three-day trip closely for
signals about where the negotiations are going you may recall they've been quite vocal in terms of addressing their concerns. just three months after the brexit vote last year, the ministry of foreign affairs here put out a note saying many of the business leaders would consider moving their headquarters away from london as a result of the brexit vote. we have already started to see that some big banks like nomura and mufg saying they would be leaving london and moving employees to other cities, but there's also business leaders contemplating their future there. we had a chance to speak with the former minister of economic and fiscal policy about what those conversations are, and what those business leaders will be looking to hear from theresa may. >> many japanese economic leaders are anxious about what happened to england after brexit at this moment, about one-third of japanese companies are
advancing to england about w40% of the companies are manufacturers. in the case of manufacturers, they have invested a lot of money in fixed assets. so it's very difficult to withdrawal that. so it's also very important for them to keep the very favorable, for example, tariffs >> as hazo tack knapointed out,s will not be easy as picking up and taking their plants to other parts over in europe we had a chance to speak to the toyota chairman yesterday who said it would also depend on whether parts suppliers plan to stay if they started to move, they would have to consider their long-term outlook. we should point out this meeting, this visit is not just about economic issues, but of course security and counterterroism as well. especially coming just days after north korea launched that
missile that flew over japanese airspace we did hear the prime minister address that earlier saying that she was 100% with japan and believed china needed to do more to rein in north korea's missile program. back to you. >> thank you very much for bringing us the latest insight from japan we'd love to hear from you e-mail the show. the address is firstname.lastname@example.org or reach out to us on twitter, streetsignseurope@cnbc please do tweet me directly. coming up on the show, a labor of love. emanuel macron was elected on a promise to overhaul the french jobs market. can he convince the country's unions to get behind his reform agenda all the analysis after this break. hey you've gotta see this. c'mon.
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. the rescue effort continued deep into the night in houston, te texas after tropical storm harvey left tens of thousands of people homeless. contessa brewer filed this report from houston where businesses slowly reopened their doors to customers >> reporter: as sunshine pierced the sky and floodwaters receded businesses that could open saw an immediate boom. >> community needs to come in, get basic necessities, that's what we're here for. >> i'm hoping the pharmacy is open >> reporter: with limited staff and overwhelming demand, stores asked customers to line up and take turns, in some cases offering water and snacks for the long wait.
>> i really don't need anything, i was going stir crazy, i walked over here. probably get some eggs and bread. that's about it. >> reporter: getting those necessary supplies of bottled water and fresh food to the people who need it most despite flooded streets and impassable highways takes logistical genius >> our bread vendors have different routes, our milk vendors have different routes. >> reporter: walmart says it is a challenge with more than 50 stores still closed and two distribution centers flooded in galveston customers encountered nearly empty store shelves at a kroger grocery with a crucial supply chain cut off and then there's the problem of doing business when so many employees were flooded themselves >> my daughter came and picked me up and unfortunately my car, i lost my car, i lost stuff in my apartment
so she came by and picked me up. >> reporter: with limited staff, some mcdonald's offered only drive-thru service 15,000 workers typically staff the 300 mcdonald's in the greater houston area, but only half those restaurants could open today >> we will help each other out if i need to help another owner get up by helping with their computer system, i'll do that. if they need people, i have more than i can spare, we'll share. >> reporter: businesses in the same boat pulling together to get their city back up and running in houston, contessa brewer, cnbc business news let's turn back to europe where the french government is set to unveil full details of its labour reform plan aimed at cutting france's high level of unemployment, the measure also make it easier to hire and fire workers allowing workplace referendums and
extending the list of yisissues bosses can notiegotiate with hi staff. france's finance minister, bruno lemer told cnbc he was confident the reforms will help create jobs >> i'm convinced this reform, the reform of the labour market is one of the most important ones, it makes something possible, which is huge simplification of the labor market in france which will make it possible to create more job, and make the life of companies easier so that they can create jobs you know that one of the most important problem there's a we have to face in france is the creation of jobs we must create more jobs we must have growth that's more important and i'm deeply
convinced this first important reform will create conditions of more creation of jobs for all french people, and that exactly the goal that we are trying to reach with the president and with the prime minister. >> i also spoke to the ceo of total, he told me he would welcome improved dialogue between companies and unions >> it's important, but we believe in central reforms, big central rules will be important to companies, but we can have more flexibility in ways to discuss and to convince the people in the company that, yes, we can change things what we expect is that, but also a general movement for investments. i think what we can expect is that with these reforms people will have the willingness to
engage in more investments, more jobs, being in a positive world. >> let's get out to china, which is one country being making headlines this morning given its manufacturing pmi beat expectations in august, revealing surprise growth in the sector analysts had forecast a slight dip in activity on rising borrowing costs. however services pmi disappoi disappointed i'm lucky enough to be joined by jonathan fenby from t.s. lombard. thank you for joining us let's start with today's data. what is the key takeaway you read from it. >> the key takeaway is manufacturing is still strong in china. and exports are doing well there's a slight downturn in the services, but this is just one month, services tend to be more volatile but what we've got really is an unexpectedly strong manufacturing performance in china this year.
that's partly in a political context, because we're going into the big five-year communist party congress to be held late their year, and the leadership wants things to look good and be stable t.s. lombard will expect that there will be a slackening of growth in the first half of next year, partly due to a cooling of the real estate, the property market, and financial tightening, some fall off in infrastructure, which some ministers are getting worried about. >> jonathan, it's not just this month that data outclassed analysts expectations. it's been throughout the year. what's the mismatch why is china consistently underestimated? >> because you have in china a series of mini cycles. if you go back over the last five years, it is quite clear that the government, the communist party has been willing to put stimulus into the economy. that has a certain lag effect. and we've had that kind of boost
this year. we had the overhang from the real estate boom, all that contributed to the 6.9% first growth -- first quarter growth but as i said that will probably tail off after the party congress, when jinping probably doesn't have the strong numbers. >> the government has been active in terms of imposing measures to try and take some of the heat out of it how appropriate and successful have these measures been >> quite successful, but the difficulty with following this, you have 70 different real estate markets across china. they all operate in different ways they're there are local factors there. a generalization is really quite difficult. but the ongoing, long-term and it will be long-term in the future quauntd gaundry quandarye
authorities is most have put money into second, third, fourth apartments you don't want the prices to go down too much or else you'll have unhappy middle class people you have tens of millions first-time buyers coming into the market and you have to make property affordable for them all the time you're playing between these two. all this is affected by the lack of other sectors into which people can put savings until you have a much better dr developed fim marknancial marke will always have this push to put your savings into real estate and therefore the government has to keep prices reasonably high. >> let's look at companies it seems the reach of the state with regard to companies keeps on being extended, more and more interference in a way. what will happen how does this play out
are they overstretching now in order to set an example? will this be a trend that continues? >> this is, i think, a trend that continues i see this as part of xi jinping's power accumulation this leader brought so much power under his own central control over the last five years, since he became communist party leader at the end of 2012. that started with politics, the party, military, he got into the economy, now it's very much going into the corporate sector. on the one hand you have the attempted reform of the state-owned enterprises, which seems to be building bigger national champions, s.o.e.s and thinking political control will make management more efficient, but also the party, it is the communist party often rather than the government is extending itself into the private sector, too. you had curbs on outflows, particularly
you have a number of prominent business people who are under some kind of official cloud on some kind of investigation was basically xi jinping and his people are saying, yes, we'll give the private sector the leeway it needs to provide jobs and growth, but you better operate according to how we want you to operate and not go off buying trophy assets in the states which don't serve china's interest >> jonathan, thank you very much something to watch as we head into the party conference at the end of this year coming up, after successfully holding the first bond sale since 2014, is greece finally back on track? we'll discuss after the break. your brain is an amazing thing. but as you get older, it naturally begins to change, causing a lack of sharpness, or even trouble with recall. thankfully, the breakthrough in prevagen helps your brain and actually improves memory.
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welcome back to "street signs. i'm gemma acton. these are your headlines brexit talks move ahead and the stakes get higher with every tick of the clock. cnbc spoke exclusively to the european parliament's chief brexit negotiator who says britain can't have its cake and eat it >> it's like a divorce, you don't leave all the bills with the rest of the family secondly, we need a government
way to deal with this. british prime minister theresa may says the uk will build the closest, freest trading relationship possible with japan as she continues her post-brexit trade building mission. difficult to stomach carrefour shares sink to the bottom of the stoxx 600 bringing rival casino down after issuing a profit warning on declining margins. battle stations. president trump hits the road to campaign for a tax overhaul, but there's a lack of specifics and plenty of opposition in congress let's look at how the u.s. futures are looking. remembering there was a strong close last night, seeing that strength continue across the board. implied open of 5 points higher for the s&p 500, but still looks unlikely to push it into positive territory for the month.
dow jones on the other hand looks like it will finish higher for a fifth consecutive month. let's look at how european markets have opened up we are again seeing positive momentum this morning. xetra dax is in the lead all morning, up over 0.6%. even the cac 40 from france, which has been the lowest of all the bourses is up almost a half percent. let's look at the 4x markets, sterling is weakening against the u.s. dollar. euro is again edging higher after a slight pullback in recent days. interesting week for the euro versus the dollar. it got above 1.20 briefly, dipped back down but showing marginal momentum this morning ♪ >> negotiators from both the eu and uk have traded criticisms over a lack of progress in brexit talks the british team says the eu is too rigidly tied to guidelines,
the eu said britain was short of ideas. officials have a little over a year to agree on withdrawal terms. willem marks joins us. looking forward to today's press conference between david davis and michel barnier, what should we expect to hear from that? >> the last few days have focused on eu citizens rights, on that so-called brexit divorce bill, and also on the issues -- minor issues, but also the irish land border issue tied up in that we should hopefully get more clarity on the british position on that divorce bill they might lay out their methodology. they haven't done so publicly. clearly ireland is something that is weighing on both sides, particularly the irish government saying the british government needs to be far more clear. that's something we heard from michel barnier today we'll hear more of that today. the british have a point about
flexibili flexibility. we heard from david davis that he wants more imagination on the european side. michel barnier working on tight parameters, the mandate provided to him, he has to stick to that. every time he wants to move outside those parameters, he has to seek fresh approval from european leaders that is a criticism that may hold some water when it comes to the idea of european flexible they'll be arriving over the course of this morning, the two teams. they have specialized teams on these particular issues. particularly that financial one. one of the areas that is being talked about is british citizens traveling in europe may no longer have access to free healthcare >> you've been following the negotiations for quite some time how has the trajectory changed how has the power balance between the eu and uk changed in
that period? >> it's difficult to gauge essentially the europeans have been unified since day one that was not something that necessarily they expected. they said they didn't expect all 27 countries to stick together that does, of course, give them a huge amount of power that, you know, perhaps if they were more divided wouldn't exist the british have not immediately put forward all of their ideas, all of their positions, that's something that has given them a weaker hand. you have this huge parliament behind me, also a huge european wide civil service here. they're used to complex negotiations that's been just from a pure pragmatic standpoint a challenge for the british side coming together, trying to find what they can do. the technicalities there that's something worked through over the course of the next few months there's the deadline that gives the europeans quite a lot of leverage.
they said before october it's unlikely they'll move on about the future relayingship between the eu and britain so until that progress is substantial, they are unwilling to move on to the area the british want to focus on so that gives the europeans quite a lot of leverage. >> willem, thank you very much for setting the scene for us as we look forward to today's press conference which wraps up the three days of brexit negotiations, the third round out in brussels. that was willem marx ♪ >> let's stay in the eu because the greek government presented a three-year plan to reform its public sector. in a signal from prime minister alex s alex cispris that his office is looking to shrink.
my next guest is author of "game over, the inside story of the greek crisis." good morning, george >> good morning. >> we are interested to hear from you we have seen some momentum eventually from greaece. the first sovereign debt issue in three years nine consecutive months of industrial strength or positive numbers. how sustained is this momentum and what seems to be an economic recovery >> well, the picture is mixed. it looks like 2017 will be the first year that the greek economy will expand. we've had very good tourist season the government is implementing the program faithfully so in that sense it's been going in the right direction and there is some rebound in both consumer and investor confidence that is the good news. the government is making the
right noises in terms of foreign investment and reforming the public sector. at the same time it is sending mixed signals. for example, some important specifics for investment deals are having a hard time going through. there are hires in the public sector, which may not be the priority at the moment they seem to be playing out a more leftist rhetoric to sure up support. it's a mex mixed picture. the bond issue is doing reasonably well. but borrowing rates for greece are much higher than in other european countries >> george, there's been the implementation of the requirements, but in doing so alienating a lot of the core left wing base, and now new democracies figures of support
are higher how will this play out in the next election? >> well, we're going to -- as we move forward, we'll probably be seeing a clear divergence in what they're doing on one hand, ticking the boxes because it's important to be implementing the program, but at the same time ratcheting up a leftist rhetoric on issues of education to how they see greece's history in the past to other such issues. this is, in order to be able to somehow contain the loss in the polls, which is -- where the difference from new democracy is widening new democracy is ahead it looks clear they will win the next elections, whenever held.
the left may have enough for parliament majority or they may need go into coalition with the center left which is trying to regroup and form a knew party with the existing smaller parties pulling into one with a new leader >> let's look at greece in the broader context of the eu. there's been a few developments in the eu this year, first from a disruptive point of view, we have brexit negotiations that kicked off from a more positive standpoint, we had the election of president macron in france which has given momentum to the trading block. talk to us about how this is changing things for greece in the context of the eu. >> throughout the crisis period, the way greaece has developed is not only depending on what
groost h greece has but the moves and shifts of things the election of macron as the french president has brought in some hope that the debates will shift in europe. and sort of in the direction which allows more growth, less austerity, more integration, and that should benefit greece in fact, president macron is visiting athens in two weeks time thepinning hopes on that visit. following that, what is more important is the outcome of the german elections if we have a repeat of the german grand coalition, that's what probably good news for greece because a reformist macron with chancellor merkel in her legacy terms so to speak may be more willing to move, for example, in the direction of debt relief
which greece has clearly said that it needs. if you have a coalition government between angela merkel's party and the free democrats, which have been on record saying greece need to leave the eurozone, things will be much tougher, the negotiations will be difficult with greece. >> george, thank you very much for your time and insights switching tact now, the u.s. has flown two bombers and two fighter jets over south korea in a joint military exercise. this haas president trump suggested that the time for cooperating with north korea is over tweeting one day after pong yoo pyongyang fired a ballistic missile over japan, he said
talking is no longer a measure >> we're never out of diplomatic solutions, we continue to work together the minister and i share a responsibility to provide for the protection of our nations, our populations and our interests. >> let's get the latest on the ground we have chery kang out in seoul with more. bring us the latest. >> reporter: the joint military exercises between skouth korea and the united states wrap up this thursday as scheduled the pattern has been that the north korea tensions ease as these war games come to an end, but things could be different this time around especially with pyongyang feeling the need to keep testing its missiles. they seem to focus on the fact that the late efst ballistic missile flew over japan. we are getting mixed signals from washington. the u.s. president saying talking is not the answer.
his defense chief contradicted him saying they're not out of the diplomatic solutions we're lacking one voice out of washington, as well as relevant countries such as china and russia in the meantime north korea seems to be moving forward back to you. >> after that heavy situation, we'll bring you something lighter after the break. should investors read jane austin's books is there wisdom in finance we'll tackle those pressing that we'd be downloading in con. minutes. that guests would compliment our wifi. that we could video conference... and do it like that. (snaps) if you'd have told me that i could afford... a gig-speed. a gig-speed network. it's like 20 times faster than what most people have. i'd of said... i'd of said you're dreaming. dreaming! definitely dreaming. then again, dreaming is how i got this far. now more businesses in more places can afford to dream gig.
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collusion. she said she saw no difference between the business practices of american tech companies and of german carmakers. both german and eu antitrust regulators are investigating claims of collusion. uber's new ceo dara khosrowshahi says the ride booking app could go public in 18 to 36 months. speaking to an all-staff meeting, khosrowshahi said uber has to change. signaling he may seek to alter the company's culture. in a statement, travis kalanick said he welcomed his replacement. >> the u.s. economy grew faster than expected in the second quarter with gdp increasing at 3% from april to june ahead of forecasts. the figure was the strongest since the first quarter of 2015. meanwhile private sector employers hired 237,000 workers
in august, according to payrolls processor adp. the number beat expectations and was the biggest monthly increase in five months speaking to cnbc, berkshire hathaway's warren buffett appeared spectacle about the calculation of gdp results >> it's been 2% a year now since the fall of 2009, eight years. it's been remarkably close to that most of the time. the way they report those quarterly numbers, they take the quarter, and change by four. it's not year over year. so it gets a little tricky that way. if you're off by a tenth t makes it 0.4 in the annual figure they report with seasonal adjustments you never want to take a quart tear seriously. i would guess we're in a 2% growth economy >> president trump took to the stage in missouri to renew a push to sell his tax reform
plans. cnbc's ylan mui has the details. >> reporter: president trump delivered his first speech on the case for tax reform during a rally in missouri on wednesday he framed the effort as part of his america first agenda saying the u.s. ranks dead last when it comes to the corporate tax rate and he argued that's forcing businesses to move overseas and hurting job creation >> we have gone from a tax rate that was low tore oer to one t is 60% higher. >> trump called for a 15% corporate rate, calling that an ideal rather than a must have. he did not lay out a timeline for getting tax reform done. he did place the burden of responsibility on capitol hill >> i'm fully committed to
working with congress to get this job done. i don't want to be disappointed by congress. do you understand me >> reporter: immediately after the speech key republicans issued statements praising trump's remarks. paul ryan saying this shows unity between congress and the white house. democrats however slammed the speech as long on rhetoric and short on substance the leadership from both parties will be meeting with the president at the white house after they return from recess next week. capitol hill is clearly preparing for a jam packed fall. ylan mui for cnbc business news, washington. for more on the tax reform plans and the state of the american economy, tune in to a cnbc exclusive interview with steve mnuchin tonight at 17:30 cet. changing entirely to something much more lighthearted, is there was come in finance should all investors read jane
austin's books our next guest can help shed light on these issues. joining me is the professor of finance and law at harvard, his latest book "the wisdom of finance" has been long listed for the f.t. mckenzie business book of the year yours is not the only book to discuss the benefits of finance. it's one of the few unique insofar as it discusses literature and jane austin to do that can you give us a short explanation of your argument >> for me part of the benefits of finance, the underlying ideas are fantastic but we don't understand them deeply enough. so the idea of the book is to open up finance to people outside of finance by humanizin it so you can learn it with stories. for people inside finance, you think about what do you in a totally different way.
one of the problems in finance is people have low expectations of behavior. we need to make it more aspirational so the goal of the book is to say look at the moral content of what you do. jane austin, mel brooks, the talents are great ways to instill that morality into finance. >> i find these days people tend to self-categorize into city types or creative types. my feeling is the education system as it currently stands is pushing people towards this. we are expected to choose a bucket and slot into it. as a professor at harvard, would you agree with that? do you think the education system is correctly set up to encourage what you think is the best path forward? >> i'm afraid you're right i'm part of that problem, i guess. i end the book with a story from c.p. snowe, a british academic who pointed out the dull between science and the humanities that same thing happens in finance.
when i travel to different parts of harvard, i feel that as well. people on the business school side demean humanities, people in humanities tend to demean finance. both are worse off it's a tragedy it's happened because of the specialization of finance, happened because of compensation levels, which people find problematic. it is a real loss. to make finance better we have to reunite >> the industry has a bad perception of being hurt by the global finance crisis. when do you think the soul was corrupted? it feels as though the client-facing, client-helping sentiment which it began with has probably eroded over time. >> i think that's right. just to be clear, finance has always been problematic. one of my favorite quotes in the book is from the 17th century, a wonderful capturing of finance as both the most noblest business and the most vulgar
business in the world. we lost the nobility we are familiar with the vulgarity today. but the underlying logic of finance is extremely noble the idea of debt, i use the debate between smith and bentum to illustrate this, it's incredibly noble and uplifting we have to get back to that. we lost touch with that. the way to do that, maybe regulation is helpful, but it has counter productive effects the way to get back to that is through ideas and approaching them in a new way. >> very quickly, some say given we're entering or are deeply embedded in an age of computers and robots, it's imperative to study computer science what is your take? >> as a father of three young daughters, i face the same question i'm skeptical about the idea that we all should be learning how to code. it strikes me that we all should have learned japanese 30 years
ago or mandarin ten years ago. i'm a believer in problem solving and the skills that lead to that. having said that, it's good to know those things. it doesn't strike me the hype is well deserved and could be quite overblown. >> professor, i would like to wish you the best of luck in the upcoming business awards that was the professor of finance and law at harvard and author of "the wisdom of finance. let's look at u.s. futures they're opening higher across the board. and this follows on from a mrov hi move higher overnight. i'm gemma acton, "worldwide exchange" is up next
harvey shutting down the main pipeline carrying fuel from texas to the east coast. the market impact straight ahead. behind the wheel the new ceo of uber makes a bold promise. and changes at the house of mouse. why some major cost cuts could be on the cards. it's thursday, august 31, 2017, "worldwide exchange" begins right now. ♪ >> good morning. welcome to