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tv   Street Signs  CNBC  February 7, 2018 4:00am-5:00am EST

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very warm welcome to "street signs. i'm sri jegarajah. >> i'm willem marx >> we have a deal, multiple media sources report angela merkel's party and the social democrats have agreed to a deal. global markets fight back. european stocks stage a rally regaining some of this week's losses following a strong rebound for u.s. equities.
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and troubles brewing for carlsberg as a fall in sales and a writedown in its key russian market sent shares in the danish beer maker lower we will speak to the carlsberg ceo at 11:00 a.m. cet. and lower sales and a tax charge take their toll sending shares lower sounds like we have a deal in germany talks forming for a coalition government between angela merkel's government and the spd. the talks deadline was sunday night, but they have blown through that deadline. it seems now like the two sides have come to an agreement.
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they have agreed on a formal deal, that's according to a conservative politician and a source associated with reuters another source says an agreement could not be seated ael sealed s still formalized writing to go through. this could take the country closer to a new government after four months of uncertainty we heard from one of the leadership positions that this is something that has happened there is a deal. that's according to the senior leader at the party. this will mean a huge amount for the european union but is still waiting for approval from spd membership we got confirmation a few weeks ago that the party was willing to have these talks, but now the
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deal will have to go through a hugenumber of spd members. we have heard from bavarian leaders that one of the challenges is trying to thread a middle ground between these quite center-left policies of the spd and the more hard-right positions of the afd it's now up to the -- if this deal has gone ahead and things are settled, it seems like it will be up to the spd membership >> it seems like a balancing act, but it looks like the devil is in the details. i think the important thing for the markets is the composition of the future coalition cabinet. the sdu will get economy and defense ministry so says the "bilt newspaper.
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so things seem to be looking goo good >> the bavarians will want control over migration, and it seems likely they will have a greater say when it comes to the immigration numbers. one challenges has been trying to get some of those right of center voters on the side with the spd has been espousing that family members of immigrants already in germany should be allowed to join those. >> reporter: in gealready in germany. this is something that it seems like they will have control of they have different party elements in different ministries we saw this over the past few years, and it means there's more
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autonomy given to the ministers and ministry, it's something that merkel has to manage and it seems like she'll have to continue to do so. >> this has been an incredibly divisive issue for the body politic and the german public as a whole and speaks to the rise of the far right of the afd. you have to ask what degree will they be a party spoiler. they have representation in the german parliament now. this will be an issue. from the market perspective, this is good news. there's an element of cdu continuity here. if you pull up the euro, seems to be muted response at this stage. but the last time i checked it was stable when we looked at that quote euro/dollar 123.74 good news for the dax as well in terms of policy continuity >> let's talk to carson nickel he joins us on the line from
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germany. what is your immediate reaction to the fact that a deal does seemingly look like it's been done today >> i would say this is as expected i don't think the major risk were the coalition negotiations between the parties. i think there was a lot of political posturing going on the real risk, the real problem for the spd leadership is only still ahead. that's the membership. >> based on that vote we had leading into the talks, where the spd membership did approve these conversations, what barriers are there to them approving these talks and the deal that seemingly has been struck today, do you think >> we have to differentiate. the vote going into the negotiations over the last couple of days, that was taken by a party delegate at a party conference this is party rank and file that ultimately has a strong interest
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in organizing voting behavior. i think with the membership is will be a different game turnout will be key. the majority that probably accepts this deal, though it will by no means love it, can this majority be turning out in order to support this deal that's the question to watch over the coming days and weeks >> one thing that, you know, we read about over the last week or two is that the spd membership was growing. people were signing up to the party. we saw that a few years ago in the uk when the jeremy corbyn was on the ballot, and people signing up for labour to vote for him. is this a case for the spd, where people are signing up for the party to have a say in this grand coalition? >> yes we've seen this dynamic. we still have to see how big
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actually this influx of new members is over the last couple of days. there have been numbers out there, tentative estimates of 6,000 people party membership is 440,000. again, to me, the bigger question than this influx is really whether the existing conservative pragmatic membership of the spg can and will turn out for this deal. >> as you say it comes down to the rank and file of the spd and membership signing off on this coalition. in terms of compromises that have to be made to find that middle ground, what would i say is the big issue here? can an immigration policy be found to heal the rift in a fragmented germany >> i think immigration has been important for the spd party leadership and the right wing of merkel's party from the market perspective we
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had a huge focus on european questions. i think the real issue here from the position of spd members is different. these are members of health, policy, pensions, the labor market the spd has been able to get a couple of pragmatic movements. no big visible one of reforms. the question is whether that is the pragmatic progress, and whether that is enough >> so we're talking about more fiscal spending here as part of the mix? >> we are, definitely. that was very clear going to into the negotiations already a couple of weeks ago. greater fiscal spending, that's a given. >> we'll leave it there. thank you very much for that carson nickel from teneo intelligence let's look at the markets in europe it is a turnaround of sorts. so the two-way volatility seems to be back in the global market.
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but there is this ongoing tension between ro bubust earni, robust underlying economy and this move higher in the rates market and the u.s. ten-year yield as well. a lot of focus on european earnings, in commodities, oil and gas, rio tinto announcing a buyback. they raise their didividend. watching the banks as well let's look closer at what the dax is doing, just on the back of the developments on the german coalition and progress there. not a huge deal of reaction. it is in positive territory, up by 36 points and change. a turnaround in european equities and the ftse outperforming, but not by a large margin. sector-wise, let's look at what is in focus. as i said, oil and gas is one of
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the leaders today, up by 1.3%. statoil turned in some good numbers, raised their dividend so the markets like that construction and material under pressure, off by 0.3%. let's bring in eric robertson now, who is joining us from standard chartered bank. he joins us from singapore, i believe. eric, good to hear from you. we're seeing the return of volatility in equities, also in the rates market with the ten-year yield knocking on 3%, to what degree is that going to undermine your constructive view on emerging markets first of all >> hi, sri i think there's a couple of interesting angles here. the first of which is this u.s. yields going higher in a low
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volatility fashion is symptomatic or emblematic of better growth. to the degree that markets are repricing for that, that doesn't necessarily have to be a negative for emerging markets. where we would get concerned is if you were to see a significant increase in rates volatility, a steepening of the yield curve, and obviously as we've seen over the last few days a fairly dramatic increase in equity volatility i guess i would highlight in spite of what we've seen on the equity side, emerging market currencies have been enormously resilient. emerging market credit spreads are wider, but not dramatically so so this is something which is really an equity-focused, equity-volatility story. we've yet to see the spill over. >> okay. let's bring it back to europe, if we can. we've seen some encouraging developments with the coalition
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talks, with the cdu, spd in germany. how would you translate that into the investment view in europe we have to be careful given that volatility is back, does this give you more conviction towards european equities and germany in particular >> way the way we approached eue we've seen a significant increase in the return of capital back to european assets. that has been true in equities, also true in fx, which underpinned our constructive view on the euro to the degree we continue to have political or geopolitical events, which the market worries about and we get a better-than-expected solution, whether it's the french elections or news out of germany today, that continues to see a
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positive economic trajectory and a positive political trajectory. the concern for the ecb is the lack of inflation in europe. >> i wanted to ask about volatility-focused trades. some of these instruments coming under focus the last few days, some of the leverage used to try and benefit from them, do you think that will be changing and people will be rethinking that short vol trade we've seen unwind so spectacularly the last few days >> i think that's almost certain to be the case we know for a fact a number of these products had -- call it early term anything that clauses or force liquidation clauses, the equivalent of a margin call. a number of those products will be forcibly shut down. i think people had gotten very used to the idea that vol will
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stay low in perpetuity over the last few years, and we're rediscovering the hard way that's not the case. so i think the idea that you can use short volatility strategies as a yield enhancement play is probably coming under considerable scrutiny going forward. the bar for implementing those strategies has gone nearly immeasurably higher. >> can we bring it back to asia and what's been striking, very few people are talking about this, amid this risk aversion, the chinese yuan has been acting practically as a safe haven currency, outperforming the swiss, outperforming the yen you have noticed this? what is this telling you where do we go next? >> we have had a relatively constructive view on renminbi for a while now. our own forecast is for cny to
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finish the year around 6.18 versus the dollar with the risk of something -- a decent amount lower than that. i would have assumed that with the kind of volatility we've seen in global equities that, you know, risk currencies in asia like the yuan and the renminbi would have suffered a bit. we have seen nothing in terms of cny and cnh which would sittiugt panic or risk aversion so we take it as a sign of returning capital flows to renminbi assets and people are fairly comfortable with the risk in china at the moment we take it as a positive sign. >> eric, thank you very much for joining us worth letting you know, you can feel free to get in touch with us.
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e-mail the show, particularly if you have a view on these german coalition deals that have been struck this morning. you can follow the show on twitter, @streetsignscnbc. you can also tweet us directly coming up, we'll have the latest from germany as reports say chancellor merkel's conse e conservatives struck a coalition deal with their counterparts. and shares of snap snap back after the company beats wall street estimates for the first time ever. we'll break down those numbers coming up. i love you, basement bathroom of solitude,
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welcome back to "street signs. the european central bank press conference is going on that's a member of the executive board there talking. we had some significant headlines coming out of this conference, including from that woman on the screen. she says that banks have already taken formal steps to seek a new license, referring to british banks seeking european licenses, something that the ecb suggested should happen by the mid point
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of this year she said she cannot be sure whether a brexit transition period will happen that is pretty significant in light of the fact that's something that the british government is trying to achieve by the end of march. danielle nuey saying they would like to make it clearer they will follow a case by case approach quite a number of significant ne newslines coming out of that meeting there. the european central bank press conference still going on. we'll watch that for more updates. let's talk about what's happening in germany we have heard that there is a deal struck between martin schulz's side and angela merkel's side. what's interesting is who is inheriting which ministry. the spd likely to get the foreign ministry and finance ministry that's something investors are watching closely
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and the head of the csu or former head of the csu will be taking over the interior ministry that's significant for migration policy, one of the sticking points in these negotiations >> he takes a tough line on immigration. so it's an in principle agreement, and now it comes down to 460,000 people voting on spd members rank and file. >> so there's scope for more compromise, more horse trading, but this is moving in the right direction. i guess there are implications here for that other major european country, which is heading to the election in less than a month >> this is only taking four months, let's see if italy can top that >> italy almost the india of europe back to the earnings season. tesco is reportedly facing a $4 billion pound equal pay claim.
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the suit said women at distribution centers are underpaid and could be due 20,000 pounds in back pay. tesco says it works hard to ensure all employees are paid fairly and equally electrolux says french competition regulators will move ahead with an antitrust investigation of it and other appliancemakers. the company says it can't rule out that the outcome will impact financials. rio tinto seeing a full line earnings increase of 69% underlying earnings rose to 8 3 $8.63 billion, up from 5.1 billion a year earlier the numbers were in line with expectations the global miner pointed to resilient commodity prices as a key driver of the company's cash flow. carlsberg missed expectations for 2017 profit numbers, hit by problems in its
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key russian market full-year net profit dropped to 1.26 billion danish krona hit hard by a 4.8 billion krona impairme impairment beer volumes in all other markets grew last year and it proposed raising its dividend by 60%. we will speak to the carlsberg ceo at 11:00 cet sanofi has reported a is that right drop in fourth quarter net profits and missing expectation. the french drugmaker expects to return to growth this year after two recent acquisitions and a revamped pipeline. sanofi struck to deals last month by firing a u.s. group and a belgium group. snap shares have risen in extended hours trading as the social media firm saw daily active users on snapchat rise ahead of expectations during the
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fourth quarter that figure jumped to 187 million users. average revenue per user was higher than expected and losses were slower than forecast. arjun kharpal joins thus mous t morning in the studio. this is relatively good news >> it is relatively good news. they've been hammered by competition from facebook, stagnant user base, and the inability to draw advertisers on the platform this quarter seems to be a turning point potentially. they managed to grow the daily active user number, which is a key metric that wall street is looking at the social media companies rely on scale if you look at facebook now with 2 billion users, the reason it continues to grow so rapidly is that it is able to monetize that user base. these are very important numbers
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coming through from snap and the market cheered that. >> forgive me, but it is a bit of a novelty one-trick pony, isn't it the it, but ground growing the user base what more do they have i heard they will put on stickers, et cetera. what will be transformational? >> one thing that snap says it different to other properties -- actually it does have a different user base to the other social media outlets, and it's bringing new ad media to the market it was an innovative product when it first came out before being copied by instagram. that's something it's looking to push further as well as original shows on the platform. the question is can the advertisers jump on board with this snap says for now it seems like the advertisers are getting on
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board, but it waits to be seen whether this is something that can be sustained over the long-term and we have seen that facebook reacts quickly. as soon as snap bricks out a new product, facebook is either ahead of it in product or takes it straight away >> it's amazing how some 20-signals think facebook is old has the these days lovely thank you very much for that disney shares rose in extended trade after it reported quarterly earnings that beat expectations the media giant posted adjusted eps of $1.89 ahead of forecasts as strength at its theme parks heched o e helped offset declines at abc. disney also said it is expanding the "star wars" franchise writing and producing a flu sne series of films. coming up, carl icahn warns
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of a market earthquake to come find out what he blames for the impeding implosion 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. >> i'm sri jegarajah let's give you some headlines. >> we have a deal, multiple media sources report angela merkel's party and the social democrats have agreed to a grand coalition. global markets fight back. european stocks stage a rally regaining some of this week's losses following a strong rebound for u.s. equities. and troubles brewing for carlsberg in russia as a fall in sales and a ke writedown in its key russian market sent shares in the danish beer maker lower we will speak to the carlsberg ceo at 11:00 a.m. cet. and sanofi profit drops in the fourth quarter as lower sales and a ta charge take their toll sending shares lower
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let's look at the european markets. doing fairly well, but like their peers in asia they seem to be coming off session highs. u.s. futures are suggesting more losses to come another new round of selling potentially on the u.s. markets. so that's giving markets more reason to be concerned as long as the earnings season continues to hold up well and the economic fundamentals hold up well, it should keep the market propped up. let's look at fx risk aversion seems to be abating for now. so we're seeing a degree of
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stabilization in the dollar, but again seeing renewed weakness in the greenback against the japanese yen 109.04 cable, 1.3931. euro against the dollar, 1.2360 despite we've seen considerable progress on the coalition talks between the cdu and the spd. the skittish markets have also meant money flowing into the yen and franc but also the yuan. we were talking about this with eric it strengthened over the last two days, despite the risk aversion and reached the highest against the dollar since august of 2015. so very, very interesting that the chinese yuan is behaving like a safe haven currency u.s. futures seem to be suggesting a weaker open for the major indices. the dow is off by 250 points for
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the implied open it's down to the politics arguably federal funding expires today. congress needs to come up with a deal to keep the government funded that's the next risk for these markets, more uncertainty on the political front. >> speaking of that uncertainty, the vix hit the highest level since august of 2015 in tuesday's session. it jumped above 50 for a time before settling under 30 the spike in the vix has blown up a large number of short trades how do you spell vix backwards it's xiv, and that's an exchange traded note that moves inversely to the vix, which ended down yesterday at 90% and was halted at several points. you see what they did there? carl icahn joined the cnbc team stateside to discuss the moves in the vix and expressed concern about the products available to retail investors.
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>> before the earthquake, you get the rumblings. maybe you don't have an earthquake for 20 years, 10 years, 5 years you have $27 million in the marketplace and you shouldn't be buying double and triple leveraged etfs in this market. the market is not the place for the average person to be playing around with derivatives. you have triple leverage etfs that are crazy these index funds with leveraged etfs against them. i don't see a difference between that and 1929. eventually you get through this panic thing, but one day this will implode because of too much leverage with too many people buying these things. wall street sells them these products i've been saying for a long time
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it's extremely dangerous >> hedge fund billionaire paul tudor jones says he would rather hold hot burning coal over a u.s. treasury bond he warned we're in the throes of a burgeoning financial bubble you can read all of his surprising comments on let's begin with the managing director of o'neill securities ken, very good to see you. let's talk about thursday. the government faces another shutdown unless the republicans and democrats pass a new spending bill. this kind of uncertainty is the last thing these markets in the current state need, right? >> well, yes it only adds to the negativity and potential issues out there quite honestly most traders
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going into today will be much more concerned and concentrating on market action that will be simmering in the background but it's not going to be the driver of whether the market goes up or down today or tomorrow >> a jerome powell-led fed, will it ride to the res i coucue of e stock market if it gets worse? are there implications here for the pace of rate hikes >> that's part of the problem. on monday that was certainly the talk, what was jerome powell going to do, what was inflation going to do? was he going to become more aggressive raise rates four or five times in 2018 versus the expected three whether the market comes under pressure, the last thing that jay powell should do is change the current course of fed policy the market is expecting a rate hike in march. a 25 basis rate hike in march.
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i think he needs to stay on that track. if all of a sudden he pulls back because the markets are coming under pressure, all that will say to the market and investors is we'll hold your hand a bit more we've been holding your hand for 12 years now, we need to start to normalize so i would expect, and i'd like to see jay powell continue down the path of what already the market expects >> i spend more time reading and hearing about short volatility trading than i have in my life are you more concerned about these complex derivative products or the leverage behind them >> absolutely. i think carl icahn hit the nail on the head. here's the problem it's not so much that retail investors are buying these complex computer generated derivative type products and/or leverage products. the problem is that they exist you and i as individual investors are in the market. even though we don't own those products we suffer as a result
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of what happens with those products monday was a perfect example that was all led by that big short volatility trade the big trade that all these big hedge funds get into they pile billions of dollars into the trade when the trade blows up, the market comes under pressure. who suffers? surely they suffer but we also suffer people sit there and skracratch their head and say how could that possibly happen carl icahn is right. i agree. the s.e.c. and the industry has allowed some of these products to exist why? why do they have to be two and three times levered? why do we put all this money to work and potentially cause the breakdown? monday is only a preview of what we could possibly see. carl icahn is right. this will cause the industry to have to sit back and say do we
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need this? >> the market, three rate hikes priced in. it's not ready for four? >> i don't think it's ready for four four would end up putting more pressure on it they're already talking about january of 2019 for the fourth one, that would be okay. but in 2018, a fourth one would cause the market to come under more pressure, which may not be a bad thing. take more air out of the bubble. >> thank you very much for that. we'll be coming back after this short break, we'll hear more detail on that german coalition deal that we've been talking about. that is the big breaking news story this morning stay with us
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welcome back to "street signs. republicans in the u.s. house of representatives approved stop gap spending bill which could keep money flowing to u.s.
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agencies until february 23rd it will likely not pass a senate vote where democrats would like to see an increase in discretionary spending the house and senate would need to come to an agreement before friday morning or risk another government shutdown. tracie potts is in washington. i'm sure we saw punxsutawney fill last week, but this seems like groundhog day >> it is seems like they're extending things, but in this case the extension may not happen because democrats in the senate who have to sign off on this want to see more money going to domestic spending, health an education and other things that they say benefit the middle class this is likely to go nowhere in the senate leaving them in gridlock with less than 48 hours to go. immigration still a big issue. the president says if they can't work that out, to go ahead and shut down the government there's no appetite for that here between democrats and republicans, but the president seems to be digging in on that
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issue of immigration we'll see what happens today >> thank you very much angela merkel and martin schulz are due to speak after reports that the cdu and social democrats have struck a coalition deal we are, of course, following that incredibly closely this mornin morning. >> the equity market moves may have caught a lot of people by surprise, but speaking to us at the world economic forum in davos, some of the leading bankers warned about complacency in the markets and the possible return of volatility >> asset values such as the stock market are at all-time highs, every index around the world last year grew by more than 20% volatility is at an historic low, and a lot of what is driving that low is people are selling short volatility
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if you have a lot of short positions at an all-time low level, the velocity of recovery could be something to watch. >> the underlying causes of optimism are real. we have genuine capital investment-led growth that followed a period of consumer-led growth which is synchronized in the world. >> sentiment in the market is too buoyant. there is a lot of complacency. the fact that we have record low volatility in the market means there's a risk-on period investors are taking risk. if nobody sees risk on the horizon that's when i get worried. >> markets are very dangerous. you don't see that because evaluations are at high levels, and credit risk looks like it has disappeared. it hasn't. we have to make sure we are prepared for the next market correction we don't know when it will happen, but it will happen >> we now know when it did happen
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shares in nova soozymes is after missing profit expectations revenue was down 1% with ebit down 4% for the fourth quarter the firm increased its dividend to 4.5 crowns per share. and statoil reported it will raise dividends and capex in 2018 the norwegian energy producer posted a 4.5% jump in its dividend capital expenditure will rise in the fourth quarter earlier we spoke with the statoil ceo and asked him where he sees oil prices in 2018 >> when it comes to the world market, there is always uncertainty in the market. i think there's a lot of uncertainty going into this year, coming from almost $70, i
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think we have seen a stable strong demand growth, slightly more muted on the supply side. that situation will be the case. we will see a continued rebalancing during this year if you go beyond this year, we -- at some point we will start seeing the implications of the low investment levels over the last couple of years so there might be lack of capacity coming in from the conventional part of the industry shires in handelsbanken are trading lower after delivering fourth quarter profits below expectations the ceo of handelsbanken joins us on the line you lost more than 1 billion swedish krona in bad loans earnings were below expectations but you paid a higher than expected dividend.
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is that so shareholders did not ask angry questions about that huge loss? >> i doubt that very much. if you look at our kred dislocre over the year, they were very low, and lower than the year before but they were concentrated in q4 it is in q4 that you make decisions regarding dividends and we can see that the bank's capital situation is extremely strong we have been higher than the buffers that we have, the reserve limits we have in the area and we promised that we would calibrate the capital ratio down to the buffers, so there's no connection between the two did you lose that money because of carrillion? >> part of it, yes
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>> is there a reason why your bank la nhas not been able to n them until now >> i think it was named. >> the 566 million krona that you booked address a loss in the uk, was that all one client and was that client carillion? >> the carillion -- we are not disclosing what the amount was in carillion and the high credit losses in q4 refer to carillion predominantly and one other loan loss in denmark. >> so the one client in the uk has to be carillion. >> the one client in the uk is carillion, correct >> so about a third of your loan losses were in denmark will you rethink this business model you have whereby local branchs have this autonomy to
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make these huge loans that then turn horribly bad? >> wasn't a correct description of how it works, and if we look back, as i mentioned, the loan loss ratio for the year is 8 basis points if we look back at the track record on the loan loss side. we are consistently at low loan losses so, no, we won't change the mod 8. >> the swedish housing market is plunging where do we go from here are there signs of market stabilization? more losses to come? what are the implications for your nonperforming loans >> we have not seen any losses in the swedish housing market. we don't anticipate we will have losses in the swedish housing market we only lend money to customers who we believe can afford to we pay those loans, service those loans even under stress conditions you ask what will happen to the swedish housing market in general regarding prices, we'll have to see.
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our guess is we will see a softening out of the decline in swedish housing market over time towards the back end of this year from handelsbanken point of view we have no problem whatsoever with regards to loans. >> the swedish regulators clamped down on risky mortgage practices, so we've seen rising levels of household debt because of money spent on houses, houses in some cases flat line and dip. as a business leader, how much responsibility do you think i bear for that situation? >> we bear an incredible responsibility towards customers. it's not in our interest to put our customers in any kind of situation which could be difficult from a financial strep strength of view and we don't do that, i don't think. we've had virtually no losses
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whatsoever, so i think that when it comes to lending, we are on the customer side. we act in a very responsible way. >> an question about market conditions do you think there is a risk if markets worsen it will spill over to business confidence in. >> well, you know, you can never exclude anything i don't want to give a projection on what i think will happen on the stock market, the capital market there's no doubt about it that prices have gone up for a long time it becomes more and more -- the market becomes more and more sensitive to bad news. we saw that the other day in the u.s. so absolutely. it's more volatile now, where it's going, i couldn't tell you. >> anders, we'll leave it there. thank you very much for joining us moving on, let's talk
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bitcoin which has bounced back above the $7,000 mark. it's still well off the recent highs. it briefly fell below $6,000 for the first time since november as traders worried about a regulatory crackdown the s.e.c. chairman said bitcoin's volatility is one of many concerns for regulators >> our etf products base is largely a retail products base we made it clear to the marketplace that there are a couple of issues with having an etf that's based on a cryptocurrency they go to price discovery also custody and other issues around volatility. we let the industry know those are issues of concern to us and we don't want to approve an etf product with a cryptocurrency underliar un
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underlier. u.s. futures have a renud bout of selling on the equities market the dow projected to fall by over 300 points. we are watching the politics, because federal funding expires today. government needs to come up with a deal to keep funded. a quick look at the european markets. they are doing reasonably well, because of the implied weak lead from europe and what the futures are telling us, a lot of markets are coming off highs this is a tussle between the earnings numbers, the underlying economicing fu infundamentals a higher inflation >> the big news in europe this morning is this deal in germany where the chancellor, angela merkel, and martin schulz are expected to speak shortly after a deal was agreed to that's live in berlin. for our european viewers,
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stick around for our interview shortly with the ceo of carlsberg. that's coming up at 11:00 a.m. we'll talk all things beer with cees thart that's it for this morning i'm willem marx in london. >> i'm sri jegarajah, "worldwide exchange" is up next you know what's awesome? gig-speed internet.
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you know what's not awesome? when only certain people can get it. let's fix that. let's give this guy gig- really? and these kids, and these guys, him, ah. oh hello. that lady, these houses! yes, yes and yes. and don't forget about them. uh huh, sure. still yes! xfinity delivers gig speed to more homes than anyone. now you can get it, too. welcome to the party.
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. a wild ride on wall street futures pointing to a major drop at the open after the dow posted its biggest one-day gain in more than two years steve wynn is out following allegations of sexual misconduct. and disney delivers on the bottom line. the media stock moving higher following an earnings beat we'll dive inside the numbers. it's wednesday, february 7, 2018, "worldwide exchange" begins right now good morning a warm


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