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tv   Street Signs  CNBC  January 31, 2018 4:00am-5:00am EST

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welcome to "street signs." i'm joumanna bercetche >> i'm willem marx these are your headlines >> the santander chairman tells cnbc she's encouraged by president trump's policies despite taking a one-off charge in the u.s. unit in the bank's fourth quarter earnings. >> i look at actions, not words. the actions so far are good for the economy. we are encouraged with the new administration's appointment on the financial side the u.s. is a great market
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julius bar opens lower as the slow asset growth and full net profits fail to impress. the ceo tells us he expects the stock markets to fall this year. >> we will see sooner or later a correction hopefully 5%, 10%, 15% correction another large one. i think that's going to happen sometime in 2018. another disappointing quarter for ericsson shares hit the bottom of the stoxx 600 after a bigger than expected loss in the chinese market. build the wall, build roads, get tough on north korea president trump's state of the union speech takes a hard line on trade and foreign policy but hales economic gains >> this, in fact, is our new american moment. there has never been a better time to start living the american dream
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good morning it is wednesday, it's fomc day but yesterday was quite a heavy session in u.s. equities we saw another big drop in equity trading at one point the dow was down almost 400 points, at the end of the day 370 points lower the picture in europe is brighter this morning. we have had earnings that have come out we'll get into some of them in a while. the stoxx 600 is up about a quarter of a percentage point. let's get into individual bourses. the ftse is the only one really lagging. just below the flat line we did have some earnings weighing on the sector over there. xetra dax is leading the charge, and we're having a strong day for ftse mib all indicating a stronger
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session than we had in the last couple of days, also in the u.s. as well. just one thing to note on the xetra dax, we have had a whole bunch of inflation numbers come through this morning we'll look out for that flash hicp print at 10:00. should give clues on to what the ecb may or may not have to do in coming months. getting back into sectors, let's lookhousehold goods which are leading the charge technology continues to struggle healthcare continues to decline in line with what we saw in price action in u.s. trading in yesterday's session. of course that is on back of the news of the combination of amazon, jpmorgan and berkshire hathaway combining forces to disrupt the healthcare sector. that pushed down the rest of the key names in that sector
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some names down as much as 9%. that theme is continuing into europe this morning. shares in banco santander are trading higher despite the spanish lender reporting a dip in fourth quarter earnings spain's big ef legest lender toa writedown on a u.s. finance group. it came in at 1.54 euros, but that was ahead of analyst estimates. they benefited in brazil where underlying net profit roads 9% during the period. geoff cutmore is in madrid this morning. it sounds like that brazil number is something they're happy about. >> absolutely. to be honest, it's no hardship coming to madrid in the winter given the weather conditions in london but thank you. the brazilian number was strong. in the conversation i hwill, thy
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said the brazilian economy may do 2.5% this year, which is stronger than expected if that transpires, that would be terrific news for santander which is strong in the brazilian market there are other tick boxes here. yes, there was the one-off item for the american business. that is a work in progress mexico actually was not bad. the expectation was for a flat performance here so i think generally the market is pleased with that the uk, that could be one area of challenge going forward and they say of the ten markets the they're active in, the uk is the one that would see the slowest growth and there is this fog around
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visibility that is brexit. so in my conversation with her, i asked her what the potential impact of the brexit story might be on the bank going forward let's listen in. >> in terms of the country, obviously there's a slowdown in the economy. if you ask me which of the countries we think would grow less in 2018, it's probably the uk of all the ten countries in europe and the mericas the slowdown is beginning to be felt you know, in terms of our bank, we are the most resilient bank, according to the bank of england stress test. i think we're well placed in a less favorable economic environment. on brexit, i'm an optimist i believe europe and the uk, it's in both interests to have a deal ta makes sense and helps sustainable and inclusive growth i have confidence in our leaders that they'll come to a good arrangement. >> and spain domestically.
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i have to ask about catalonia. we still don't know what will happen with carles puigdemont, and he's been encouraged to come back and form a government which will infuriate madrid. what do you think the challenges are for you negotiating this story? >> well, you know, we don't know what will happen we know what is not going to happen we're not going to have the same scenario as before spain has strong institutions. i think spain is stronger than before the crisis. it was a big crisis. we have the tools to deal with that in our constitution the constitution must be respected. i think that's the key message for investors. you know, the market is telling you that the government has dealt with this crisis in the right way because our spreads are narrower than ever with germany. spain is like -- i said a couple years ago, the phone doesn't stop ringing the phone doesn't stop ringing everybody wants to invest in spain. we'll have the fourth year of
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growth, creating 500,000 jobs. the one challenge is that we need to increase productivity and create better jobs reforms in education and others, but we're in a good place. spain is ready to grow >> terrific quarter. i think the market will acknowledge that we're all looking for gray swans or black swans yesterday we got a lesson that markets can go down as well as up and volatility appeared to rise. do you think that's a tremor it's a warning that there may be a bigger earthquake coming later this year that we'll have a more significant correction should we be worried about what the impact may be on europe? >> we've had ten years of growth in the u.s spain has been growing for four, five years latin america is a bit behind. yes, there's a chance that as we get out of qe, there will be turbulence that's something difficult to predict. in our case we expect our ten
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markets to grow again this year. is it possible one will not grow i think that's hard. if you look 12 months ahead, we're end of january, that's more for 2019 we're encouraged by what we see in the underlying economy. our customers want more loans. consumers have more confidence market turbulence could happen, yes. that's a risk for this year. for us it looks like a pretty good year. >> i think the key word there was confidence clearly she's confident about growth coming through 2018 the bank is well on track to hit many of its 2018 targets at this point, difficult to know what may be around the corner that could prevent that from happening given that both latin america and the european markets, that san tanner operate in are showing improved
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momentum back to you guys >> geoff, thank you very much. we're joined by neil bates i want to pick up on the conversation said about risks. i said retail investors should keep a watchful eye on bond markets especially the u.s. ten-year as it approaches 3% are you worried? >> we're beginning to become more concerned i don't think we've reached that threshold yet, whereby we're having a red warning line for markets, but something for investors to keep an eye on. we're fairly relaxed for markets in the short-term, but i feel that the risks rise as we move through the year policy and markets are on something of a collision course. i think it's going to become more difficult for equity markets to make significant progress >> i want to pick up on some
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comments we heard from the santander interview. the chairman was saying she's concerned about the prospect of slower growth in the uk, but switching that around, looking at your portfolio, it looks like you have a significant exposure to come uk names why is that? >> quite simply, i think a lot of the bad news is already discounted in the share price of uk banks you take barclays, it trades on 0.65 times book value. maybe a little bit higher given the appreciation over the last couple of weeks. now, we believe that over time as a business that can move to 10% return on tappingibngible e. at the moment we believe that the value that resides in the retail banking operations in the uk has been obscured around the amount of capital that may or may not be put into the investment bank. >> one argument again on
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investing in banking is the rise of fintech and the disruption that's causing in the space. do you think that doesn't impose somewhat of a threat to the more traditional retail banks >> i think it does we underestimate how resilient franchises are i think there's a tendency for investors in general to get the direction of travel right when it comes to new technologies, but get the timing wrong yes, i think fintech does represent an issue longer term but shorter term i think that the outlook for the uk, it's reasonably stable as long as the global economy performs robustly the outlook for higher interest rates will be positive that will outweigh the longer-term concerns >> you're saying that the uk economy could emerge from brexit relatively unscathed as long as we see global growth >> yes what about the fact we have
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janet yellen's last meeting as chair yesterday. the federal reserve, we got the final statement today. do you think she's leaving on a high note? >> i think the challenges she faced were more nuanced than bernanke faced yellen had a different set of challenges, she has succeeded in that in general, we're skeptical around policy americas ability to manipulate the economy to do what they want at some point in time we'll see a setback. >> we've seen a shakeout in equity markets the last couple of days, this comes on the back of a strong start to the year on equities do you think that this market is due for a correction and that it could be quite sinister? or is this just a healthy correction in the market that has gone up every single day for
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a month? >> i think it's much more of the latter of curse we could see a correction nobody could forecast the short-term direction of markets. and in terms of a more significant one, we don't feel conditions are in place. we have not seen a lot of speculative success. some areas of the market are looking frothy we've not had that excess that precedes significant market correction >> want to ask about one u.s. stock, alphabet. you want to talk about frothiness is that a company when you look at the technology sect their is overvalued do you think the tech sector in the u.s. is overvalued >> i don't i think there's a lot of noise around the sector, but these are highly cash generative businesses the pe is slightly elt investigateelevated, but these businesses trade on
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3.5, 6% free cash flow yields, those are growing 10%, 20% per annum. that's a much more compelling proposition than the staples businesses today if you think about warren buffett's early success, a lot of that was built on high return, consumer staples business riding the wave of the economy. it is not far to say that technology companies are in the same position. >> you sound bullish on u.s. tech stocks. thank you for joining us this morning. julius baer posted 810 million in swiss francs in profit, it's slightly below forecast they attracted 22 billion francs
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in net new money, that exceeded the target and it's hiked its dividend speaking to cnbc earlier, the ceo explained the rational behind the latest deal >> if you look at brazil, it's in an upward trend the economy is doing much better we see a need for holistic advice interest rates have come down in brazil from over 14% to 8% we see a need for clients to diversify out of fixed income. >> if you have views on frothiness, e-mail the show. the address is you can also follow us on twitter @streetsignseurope@cnbc. coming up, electrolux shares
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charge to the top of the stoxx 600 after a fourth quarter beat. we'll be speaking to the ceo after the break.
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welcome back to "street signs. we've had a lot of earnings come out of sweden. weak demand in siemens power and gas division saw first quarter industrial profits hit 14% the ceo said the declining market for fossil power was not temporary, adding that strategic measures were needed the group revealed their were in talks to implement job cuts. ericsson reported a larger than fourth quarter loss as writedowns and rising costs took their toll the company, which is in the midst of restructuring, said it expects to see tangible results later this year. ericsson maintained its dividend despite the result h&m delivered a smaller than
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expected fall in quarterly profit the fashion retailer also said it would continue to accelerate its online push as sales at physical stores waned. last quarter the company announced it would expand a partnership with alibaba as it aims to court chinese consumers. and capita plans to raise 700 million pounds in a rights issue, this after it suspended its dividend following a cut in the 2018 profit forecast the firm says underlying pretax profit will be well below analyst estimates. they brought in a new ceo in december tasked with rebuilding following multiple profit warnings in the past year. electrolux opened sharply higher after posting a stronger than expected rise in fourth quarter operating profit the swedish home appliance maker said they expected a bigger negative impact from increasing
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raw material prices. jonas samuelson, the ceo, joins us on the line you're spending around a billion dollars on modernizing factories, including in the u.s. you're trying to cut costs is this about better efficiency? about reducing headcount >> it's an overall effort to first modernize our product range with really appealing projepr produc products, appealing to our consumers, but doing that in an efficient way. modernizing our manufacturing footprint as well as increasing the levels of automation it's covering all of that. >> when you reduce headcount in the united states, do you have concerns about reaction from the administration >> i think we announced yesterday we're investing 5$500 million in our u.s. manufacturing base i think overall that hoo should positive message
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>> samsung is building washing machines in south carolina lg electronics is racing to do the same thing in tennessee. you mentioned that investment in the u.s. when you look at the tariffs the trump administration has posed on washing machines, do you see that as a way of favoring u.s. dema brands even if it damages the u.s. job prospect? >> this is about making sure our u.s. manufacturing base and the products we offer are as competitive as they can be so, i think the u.s. is a very -- can be a competitive place to manufacture in. we're close to the consumer base we're investing in our u.s. frigidaire brand, which is a trusted and appreciated brand to u.s. consumers for us, this is unrelated to policy and more related to the faith in the u.s. consumer >> i want to ask you about your
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investment plans the focus is on north america and latin america, but how do you pair that up with the fact that you're also looking to achieve significant cost savings? willem referred to some of the human reductions when it comes to hiring. >> as we become more efficient and more automated, our need for direct labor in some of these cases reduces on a per unit basis. at the same time we're investing in increasing the appeal and competitiveness of our product and increasing sales we have a strategy for positive growth, which is a positivefor employment >> i also see you have a restructuring charge of 75 million. can you talk us through that >> right so we are consolidating our refrigeration manufacturing that is currently taking place in two facilities in the u.s. we're consolidating that into
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one large facility in anderson, south carolina in total that entails a one-time charge of about $75 million. >> some of your largest and oldest shareholders, they essentially seem to think that europe is falling behind both the u.s. and asia when it comes to technology development. they're throwing a ton of money at research to counter that. your major rivals are in the u.s. and asia. do you agree that europe is falling behind when it comes to technological development? >> in our case, i would say that's not the situation most of the core technology development is taking place in europe at the same time, as you indicate, we are investing heavily in north and latin america as well as in asia, in refreshing our products there. i wouldn't say we're hampered by our european base. quite the contrary >> all right, sir. thank you very much for that and for bringing us your views on
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this earnings. >> jonas samuelson, the ceo of electrolux. nintendo raised its full-year guidance thanks to the switch there was better than expected operating profit, up nearly four fold from a year ago >> samsung shares have risen in seoul on the same day that the company announced a 50/1 stock split and a full-year cash dividend the firm posted a record profit in the third quarter as earnings saw a boost from memory chips. samsung also announced a clip designed for cryptocurrency mining investors are eyeing a corporate restructure at samsung and the nasdaq is still on pace for its best january since 2012, despite a sharp fall in tuesday's session. microsoft, alphabet, intel and apple have had the biggest negative impact on the index
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apple is down over 2% this month. coming up, president trump holds hits first state of the union speech hailing economic gains and setting ambitious goals for infrastructure we'll look at the impact on investments after this break for your heart... your joints... or your digestion... so why wouldn't you take something for the most important part of you... your brain. with an ingredient originally found in jellyfish, prevagen is now the number one selling brain health supplement in drug stores nationwide. prevagen. the name to remember.
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welcome back to "street signs. i'm willem marx. >> and i'm joumanna bercetche. these are your headlines >> the santander chairman tells cnbc she's encouraged by president trump's policies despite taking a one-off charge in the u.s. unit in the bank's fourth quarter earnings. >> i look at actions, not words. the actions so far are good for the economy. we are encouraged with the new administration's appointment on the financial side the u.s. is a great market it's a market where we can add value. julius baer opens lower as the slow asset growth and full net profits fail to impress. the ceo tells us he expects the stock markets to fall this year.
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>> we will see sooner or later a correction hopefully 5%, 10%, 15% correction another large one. i think that's going to happen sometime in 2018. another disappointing quarter for ericsson shares hit the bottom of the stoxx 600 after a bigger than expected loss in the chinese market. build the wall, build roads, get tough on north korea president trump's state of the union speech takes a hard line on trade and foreign policy but hales economic gains >> this, in fact, is our new american moment. there has never been a better time to start living the american dream >> okay. let's look at how u.s. futures are looking as we get into possibly what is yellen's last
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fomc meeting and powell's first as incoming chair. we did have a bit of a down day in u.s. equity trading yesterday. the dow was down almost 400 points at one point, then ended down about 370 today it looks as though the picture is more positive the dow opening up around 75 points higher. s&p about 10 points higher a bit more positive in u.s. markets. switching to european markets, as we highlighted earlier, ftse 100 is the laggard. trading just below that flat line in the red. all other indices are trading up in the green we had some positive earnings, but it's been a big earnings day in sweden. the big earnings day in europe is tomorrow. switching to foreign exchange, all eyes have been on the u.s. dollar. today is a continuation of dollar weakness day. seems as though dollars and equities are having an inverse relationship here. on days when equities are up,
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we're seeing dollar weakness that theme continues this morning. you're love dollar is pushing higher again similar theme for cable, which is almost back up to that 142 level again. of course dollar/yen continues to struggle and turn around. even on days when the dollar is weaker, that dollar/yen currency pair continues to trade lower. >> speaking of a man backing the dollar eventually, in his first state of the union address to congress, donald trump talked up america's recent economic growth during his first year in office. he took credit for a soaring stock market as well as low unemployment and said there's never been a better time to start living the american dream. trump also called for unity asking republicans and democrats to work together for the good of the american people. >> i call upon all of us to set aside our differences, to seek out common ground, and to summon the unity we need to deliver for the people this is really the key these are the people we were elected to serve
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>> mr. trump pushed a hard line on immigration insisting on a border wall with mexico and asking for concessions from democrats on a bill to protect young undocumented immigrants. trump's speech gave very few details about policy, but it did outline a 1$1.5 trim ollion pla revamp the infrastructure. >> tonight i'm calling on congress to produce a bill that generates at least $1.5 trillion for the new infrastructure investment that our country so desperately needs. every federal dollar should be leveraged by partnering with state and local governments, and, where appropriate, tapping into private sector investment to permanently fix the infrastructure deficit and we can do it >> edward lawrence is with us from washington, d.c
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given that president trump made that request for greater bipartisanship in congress, how have democrats reacted to the speech >> democrats did not applaud or stand up during the speech some of them had a silent sort of protest they were wearing all black for the metoo movement that has swept through the united states. but democrats on the whole say they were not impressed with this speech going forward. the president did call on democrats to come forward and work with republicans at least on immigration and other topics. but it wasn't very well received in the hall. >> i would like to ask about the infrastructure plan. he has a big goal to introduce the infrastructure plan. it's been in the pipeline for a couple months. is this going to happen this year would democrats be willing to support him on this measure? >> the president believes that
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democrats will come on board with this. in the past democrats have supported and called for infrastructure rebuilding in the united states. one thing that the president has been able to do through executive order is to streamline the process. that's one thing he wants to do with infrastructure. he will -- say to build a bridge, it takes five years for approval he wants to remove the roadblocks and to make it two, possibly one-ye year for approvl process on a bridge. in terms of the funding he needs the democrats help and he wanted state and local governments on board to match government funding and in some cases private sector funds >> edward lawrence, thank you very much for joining us live from washington, d.c president trump did receive applause in the room as edward mentioned there, but his first state of the union did not poll as well as recent addresses by other u.s. presidents. according to a survey, trump
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received a "very positive rating for his speech" from 48% the lowest rating from a state of the union speech since the poll began back in 1998. santander chairman ann anna botin said she is positive about trump administration policies she added that the spanish bank has turned a corner in the american market after taking a one-off impairment charge in the u.s. unit in the fourth quarter. y geoff is in madrid and sat down with ms. botin she appears optimistic about growth in the u.s., even though growth for san stanner has nbeen bright >> i think the message is the american unit is a work in project. but i think anna botin says we turned the corner in terms of the restructuring aspect of the
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northweste north american business. there is the mexican operation we should focus on given that the nafta treaty is under renegotiation at the moment, and donald trump continues to sabre rattle about trade issues with mexico andsouth of the border. let's listen to a clip of the conversation i had with anna botin where she talked about her view on donald trump, some of the comments he's made and the direction of travel for the nafta deal >> there's always more work to be done, not just in the u.s 2017 was an important year for the u.s. i think we have turned the corner if you look at underlying growth in the u.s., it's up 5%. that's the first time this happened we paid the first dividend since 2011 so we're on the right track with
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regulators i'm quite excited about what we can do in the u.s. >> you're making strong progress towards the 2018 targets is there room, do you think, to move those targets up? given the performance for the fourth quarter we will reconfirm all our targets for 2018 we gave a three-year plan where we had '16 and '17 growing a bit, we said we would grow eps, all the important metrics, then there was a step up in 2018. so we will reiterate our confidence that we will make all our 2018 targets >> but you are not going to raise the target at this point >> in many targets we are already there. so underlying return on tangible equity is close to 12% our efficiency is at 47% that is actually the best of all the big banks.
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so we have done good progress. i'm happy, the teams have worked hard and delivered two good years in a row >> other political issues, the world according to donald trump. we learned about what he sees for the year ahead from the state of the union and his speech in davos, still this sort of anti-trade drumbeat nafta is being negotiated, could have a bearing on the mexican economy where you have business. do you need to worried about donald trump and nafta negotiations for mexico? >> i always said, and i apply this to myself, i look to actions, not words the actions so far are good for the economy. we are encouraged with the new administration's appointment on the financial side they are keen that we keep a strong financial sector, but
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they also want banks to support growth putting money in the hands of the private sector, we can reinvest the tax savings in high wages, more lending, this is very good news i'm encouraged i think the u.s. is a great market it's a market where we can add value. already this year we're doing much better. so i'm encouraged by what i see happening in the u.s. economy. >> wrap up on that, brazil, we talked about that as well. she thinks brazil could grow 2.5% this year, which would provide tre men domendous suppoo the business they operate in that part of the world back to you. >> the market reaction has been
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1.1% ms. botinsaying actions speak louder than words. if you want to get involved in the conversation, e-mail us. the address is and as usual, you can follow us on twitter twitter, @streetsignseurope@cnbc coming up, we'll talk with martin lundstedt, and we'll speak to sigve brekke. any object. any surface.
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if you've got a life you gotta swiffer
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welcome back to "street signs. you're watching live pictures of the chinese prime minister, he's been meeting with the british prime minister, theresa may, in the great peoples hall in beijing. they will hold a press conference now the conversation has been on a potential trade deal after brexit theresa may facing a huge amount of pressure over her future. she told journalists she's not a quitter. she's in china for a three-day
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trip aimed at boosting post-brexit trade. we'll listen in to that press conference now >> translator: and other issues. we exchange views on all these topics and we have to come to agree on the following. first, china and the uk, as major economies in the world, are committed to upholding free trade and pushing forward economic globalization in the process of promoting free trade, we'll improve relevant rules. and to enable free trade to
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benefit not just our two countries but more countries and people we agree that we will work to maintain the momentum of continued growth in our bilateral relations. to take -- >> we'll take you back to that press conference shortly, especially to hear what theresa may has to say volvo has been getting a lift after the truckmaker raised its outlook after a surge in orders in the last quarter of 2017. the swedish company expects stronger demand on both sides of the atlantic after net sales rose to 337 billion swedish krona last year. volvo hiked its dividend by one krona on the back of the results. we are joined by martin lundstedt, he joins us on the line from sweden thank you for joining us gili is hoping to buy an 8%
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stake, 15% voting shares in your company. do you have any reason to think they're not looking to reunite the volvo brands >> first of all, thank you for letting me be part of this when it comes to the board by gili, we are seeing in the communications, or the two main stakeholders -- the shareholders, that they are looking to the long-term strategy of volvo, the support of the board and planning memant >> based on your numbers today, i'm looking at 9.1% operating margin for the year, 8% for the quarter. what makes you think you can get to 10% >> we have shown this was the 12th consecutive quarter with underlying improvement in our business we are building a strong wall,
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backed on our internal efficiency improvements, new product launches but also strong market i think as i said on 12 consecutive quarters, we are showing we can improve the group in a good way. >> sir, i see you're quite positive on the european truck market you revised upwards your forecast to 310,000 units, versus 300,000 units when you hear tesla looking to get involved in the truck market and introduce electric truck vehicles, does that concern you? >> no, i think that's very good that we are seeing electromobility as one we have since 2009 been successful in the lek trelectris sector and now we are starting with electric trucks we are starting with urban distribution an waste collection, but we will move on to other applications.
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>> i want to take about your shareholders again in hindsight, do you think it was a help or a hindrance to have an activist investor on board. did it help having them involved >> i thinkgenerally speaking, we had good dialogue with the shareholders, and the shareholders are active and they want to drive the company forward. that's always good we have good cooperation with all shareholders we are a public company with shareholders, and i think it's important to have equity share holders. >> how was dinner with president trump last week? >> i think it was, first of all, very interesting meeting, given the fact there were so many business leaders, so it was talking about different industries for the president and us, among other things, new
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technologies as we have already discussed and also on infrastructure that was valuable to be invited and to meet with the president of the united states >> mr. lundstedt, thank you very much for your time that was martin lundstedt. sticking with earnings, telenor forecast slower growth in 2018. the norwegian telco says it sees ebita growing up to 3% down from 9% last year this as they posted a net profit of 2.2 norwegian krona, far below estimates of 4.3 billion krona. sigve brekke joins us on the line, the ceo of telenor despite the fall in profit, why have you decided to raise the dividend >> i don't think you were correct in the way you describe it we met the estimates for the
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fourth quarter and the full year we had growth of 1%, and then in '18 there are one-offs in '18 that gives us some hope of lower ebita growth so we see that we have a good program. we reduced our costs in '17 and completing that in '18 that's the reason why we take up the dividend to shareholders >> going back to your growth target over the next couple of years, you have a 1% versus 2% growth target versus old growth rates of 3% to 4%. why is growth slowing down >> the growth, we still see a very good growth in asia especially in tpakistan we have had tough competition in the markets like malaysia, however we are now easing out of
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it then in europe, we have been affected by the area we continue to modernize and we are able to increase the dividend for customers i wouldn't say growth is slowing down but that's the reason why going into next year we maintain that 2% growth forecast >> thank you very much, sir, for bringing us your views on today's results. that was sigve brekke, the president and ceo of telenor >> we promised you we would take you back to that press conference in beijing. here is theresa may speaking live in the great peoples hall >> modern slavery, threats to aviation security, build sustainable economies of the future and enhance bilateral trade and investment relationships, and to develop
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our strong education and societal links i would like to say a few more words of detail on each of these. >> translator: we also talked about the success of the past year of steel. >> we did, indeed. >> as fellow permanent members of the u.n. security council and the g20, we are continued to address global challenges, indeed steel is one of those challenges that the g20 has discussed. we are also committed to protecting the rules based system as we said, we discussed north korea. we agree that its pursuit of nuclear and ballistic missile programs is illegal, reckless and poses an unacceptable threat to international peace and security we agreed the full impleme implementation of u.n. security
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sanctions is vital we agree today new measures on aviation security, designed to improve aviation security standards in the uk and china by sharing more information and undertaking visits to share best practice and observe standards of implementation. we will also do more together to tackle the scourge of modern slavery, to disrupt and prosecute the organized crime groups responsible and to protect victims. we'll begin new joint work to tackle other forms of serious organized crime including illegal supply of synthetic drugs. we discussed how our economies have complimentary strengths trade between our two countries is already at record levels, worth over 59 billion pounds uk exports to china have grown by over 60% since 2010 the uk is already one of the largest european recipients of chinese foreign direct investment where the uk is the world's largest exporter of financial
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services and uk firms are leaders in china's market, we're determined to deepen our trading relationship further we're ambitious for what our future trade relationship will be so we will work together to explore all options. >> that is british prime minister theresa may talking about the need to deepen trade ties between the uk and china both sides agreeing they need to uphold and promote free trade. they also talked about north korea, talking about a complex and volatile international situation. the bilateral relationship, according to theresa may, will not change despite brexit. >> that's it for today's show. thanks for watching. >> "worldwide exchange" is up next
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the state of our union is strong because our people are strong president trump talking tax reform and the economy in his first state of the union address. we have a full wrap up of his comments straight ahead. wall street pointing to a higher open after yesterday's big selloff, and a sign of of the times in the printing world as japan's fuji film buying xerox. details straight ahead it's january, 31, 2018. "worldwide exchange" is straight


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