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tv   Street Signs  CNBC  November 23, 2018 4:00am-5:00am EST

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welcome to "street signs." i'm julianna tatelbaum >> i'm willem marx these are your headlines renault shares hit top gear as nissan says it will nominate a new chairman within two months after ousting carlos ghosn, jeffries raises the stock to buy from hold. gibraltar's chief minister claims a deal has been reached with madrid over the spanish territory after pedro sanchez
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threatened to veto brexit. >> the british people want this to be settled. they want a good deal that sets us on course for a brighter future that deal is within our grasp. i am determined to deliver it. global retailers hope black friday will light up the bottom line with shoppers expected to snap up over $6 billion worth o deals in one day. a fresh selloff takes oil prices to 2018 lows as the saudi energy minister vows to respond to weakening demand raising the prospect of a broad supply cut it wouldn't be an exciting friday without eurozone pmi flashes. let's bring those to you composite pmi at 52.4, against expectations of 53, and lower
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than 53.1 we saw for october services in at 53.1. that's against the expectation of 53.5. that's also lower than october's 53.7 finally to give you the manufacturing pmi, that's 51.5 against an expectation of 52 again, lower than last month, 52 for october. european markets have been open for an hour european stocks showing a steady start to the day with the stoxx 600 up about 30 basis points this is coming off of a closed market yesterday in the u.s. for the thanksgiving holiday, a weaker session in asia overnight. plenty of major political events looming large on investors minds. we have the eu summit planned for sunday before that, theresa may will return to brussels to nail down
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the final details of the draft agreement. beyond that, global markets looking to the g20 let's get into the european markets and see how the different reamen e regions are . green across the board italy up about 70 basis points the budget is firmly in focus. italian banks have seen a bit of a lift on hopes that we will see resolution between the coalition and the eu still an outstanding issue we have the cac up about 26 basis points the dax up 0.5%. the ftse 100 in the uk up 30 basis points let's look at the sectors. the bottom of the leaderboard, basic resources down about 25 basis points oil and gas down oil, of course, remains a key element of the narrative this week with brent crashing down to new lows at the top of the leaderboard,
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technology up about 0.8, black friday as we have been flagging all morning, retail and tech will be in focus today we'll send that over to willem for more >> retailers are gearing up for a crucial shopping season as the black friday sales begin the day after the american thanksgiving holiday have historically marked the start to the annual shopping frenzy online sales in the uk will approach $6 billion in the uk alone and one quarter of consumers in the uk will look for online bargains this weekend. dan, thank you so much for being here >> good morning. >> your team makes money for bricks and mortar retailers. this is bad news for you >> not completely. >> tell me why not >> retail had a poor year in 2018 challenging times. it's good in some ways that we have a week and a weekend.
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it is a week now for black friday where there's focus on spending in the shops and online it's putting focus on consumers spending money in one sense, that's good. when you look under the skin of it, we think there's problems there. >> give me a sense of what those problems are >> uk consumer is a huge early adopter of online shopping we think this week we'll see for the first time in the uk 20% spend going online and if it really takes off today, it could be 22% that's an unprecedented amount of money being spent online rather than in physical shop >> the physical shops, your clients are companies that go looking for spaces in shopping centers, on high street. they're now competing with the amazons of this world and that is not good news for you guys, is it? >> it's changing we're in the middle of a huge structural change in uk retail we are only part way through that there will be a lot of redundant
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physical stock and retail unit there's a in 10, 15 years won't be retail units anymore. the response we're seeing to black friday, we're seeing interesting responses. some retailers are stepping outside and not participating. you look at primark, marks & spencer, they're not participating. they say we give you good deals all year around. also retailers, black black friday is a margin-eroding event and it's happening four, five weeks before christmas, at probably the worst time of the year for retailers to enter into low-margin dizzinesbusiness so some retailers are stepping outside of it and some retailers are tactical about the bargains they provide >> the fact we're seeing black friday extend beyond the day to the weekend to the week, longer
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in some cases, does that affect the volume some businesses get >> it can be a problem traditionally this is the period where retailers enter into full margin, full sales where traditionally they earned a lot of their profit for the year that's been disrupted by the arrival of black friday. we have a low margin event now we have a lull for a few weeks afterwards >> can we get into the demographics the older segment is tailing off in terms of their involvement in the black friday sales does that mean millennials who typically like to shop at more independent stores are coming in and filling the void of those older shoppers >> potentially what we're also seeing is the skept tiic consumer arriving arn black friday there's skepticism around what the deals are. and 90% of the deals being offered over this week are available on the same price or
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lower somewhere else during the year and consumers are picking up on that you can download apps now which are specific black friday apps to help you work your way through the offers so there's a bit of a game of cat and mouse arriving between the retailer and consumer. >> you go back in time and this was the period where retailers said we have a captive audience, people have to go spend money, they have to buy presents. they're doing it last minute, spending more than they would like to we'll make up on the lower margins we've had throughout the year, now you talk about this app. you got a much more intelligent consumer, don't you? that makes it harder for retailers to calm them into paying full price. >> yes there's no doubt you have an informed consumer today with powerful tools available to them retailers have to work harder to make a margin in our market now. it's a sophisticated market with some good retailers, but the
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consumer is also an early adopter and also sophisticated >> dan, thank you. my colleague, elizabeth shultz is live it tilbray, which will be turning those purchase clicks into letter box deliveries what does amazon do at this time of year? >> amazon is saying this is one of the busiest days of the year in the uk, so black friday taking off internationally as well as in the u.s we spoke with one of the regional operations managers here, he said they are already selling 100,000 toys here in the uk so it's already been a busy start to the morning you can see the robots behind me in action taking products from the shelves, getting ready to make deliveries around the uk, around the country and around the world. here's what the operations director told us about how they make preparations for a day like
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today. >> products behind me, what they do, they take the shelves from inside the field to key members who can ship it to customers we know a customer wants to get the product faster this technology allows us to do that quicker and safer for team members. so we enjoy working alongside these that help our team what about the concern that that is eliminating human jobs. we're seeing a few more robots than we are actual workers >> not at all. we opened here last year, since then we've offered 2,500 permanent jobs in fact globally since we took on this technology in 2012, we added 300,000 jobs so not seeing jobs going away any time soon. >> amazon saying it has hired 20,000 seasonal workers to deal with that busy time over the next month here during the holidays this center here currently in place, 2,500 workers
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so already a big operation uk shoppers are making most purchases online when it comes to black friday. 40% saying that's their main destination of choice when it comes to black friday and cybermonday sales. we'll have to see as the numbers come in if this turns out to be a strong year for sales. it could be a good sign for amazon whose stock has been troubled we will watch those numbers closely. back to you. >> i would like to pick up, you and i were chatting off camera, two americans living in the uk about the rise of black friday sales in london. what can you tell us about the moves that retailers are taking to make this more of an international event. >> that's right. black friday originated as a day in the u.s., the day after thanksgiving most people on holiday a perfect day to get a jump on your holiday shopping. international retailers have embraced this day to offer
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discounts to shoppers even if they're at work. that's something customers have embraced many shoppers here in the uk and europe are making purchases for themselves than holiday gifts for others this is a holiday that's taken off. we expect shoppers here will only continue to start their shopping earlier and earlier as these discounts are offered. >> thank you very much several chinese e-commerce websites stopped selling doll chi a dolce & gabbana products eunice yoon has this report. >> online dolce has been renamed dog and banana or even worse, dead and gone. this after series of ads meant to promote a fashion show in shanghai that many see here as
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racist this series features an asian female model struggling to eat italian food like spaghetti, pizza while using chopsticks making matters worse, an angry exchange about the ads by the designer who called the country a bunch of poop emojis some are boycotting the brand and d & g had to cancel its fashion show the company called its ad unfortunate and that the accounts had been hacked on instagram d & g said we are sorry for distresses caused by these unauthorized posts we have nothing but respect for the people of china. the chinese market is important for d & g. the designer also updated his instagram account to say not me, that has been turned into
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posters and appeared outside some of the d & g stores in china. eunice yoon, cnbc business news, beijing. if you have views on the retail sector or the arguments about black friday's impact, don't hesitate to get in touch on twitter, @streetsignscnbc coming up on the show, ghosn gone a united showing from nissan's board ousts the embattled executive but what is the future of the automaker's alliance with renault? that's coming up there are chefs, bakers and food order takers. doctors and surgeons and all the life savers. the world is alive as you can see, this time of the year is so much more than a bow and a tree. (morgan vo) those who give their best,
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deserve the best. get up to a $1,000 credit on select models now during the season of audi sales event.
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welcome back to "street signs. the saudi energy minister says demand for oil will lower in january, but he insists the kingdom will respond to cooler market anxiety he said the creation of a supply glut is in no one's interest for context, oil prices hit their lowest point of the year so far because of concerns about
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oversupply in the uk, flybe shares are soaring after sky news reported that virgin atlantic airways is in discussions to acquire the carrier. sky says the moves would help virgin expand takeoff and landing slots. both airlines have declined to comment on the report. nissan's board has voted to remove carlos ghosn as chairman. the board reiterated its commitment with renault. >> chery kang filed this report earlier today from outside nissan headquarters. >> reporter: the key word in this development in unanimous. this means renault's loyalists have also voted yes to the idea of ousting carlos ghosn as the chair as well as representative
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director from nissan board nissan says that this comes after reviewing this detailed report coming from the internal investigation. though it's not a done deal just yet, under corporate law of japan shareholders meeting is required to give full green light to decisions like this the next one in schedule is in june next year so we're also looking at a possibility of nissan's new leadership calling for an extraordinary shareholders meeting as well in the meantime the investigation by the prosecution's office in japan still ongoing, but we're getting virtually nothing in terms of anything official at this point. regarding this alliance among renault, nissan and mitsubishi, nissan's initial message seems to be one of continu stability d
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avoiding can fusion in daily operations i'm chery kang, back to you. nissan has dismissed ghosn, but renault only temporarily apoint appointed a replacement. renault's acting chief executive insisted there was no cause for ge concern over the company's operations. >> translator: during this situation our group is perfectly organized to ensure the continuity of the company's business i will make sure we stay focused on our missions to have sustainability of our alliance. bruno lemaire has promised the government will continue to support the alliance between nissan and renault, but the french government would also like to know more detail about
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the allegations he faces >> we don't have extra information about the charges against carlos ghosn we have asked to have access to this information because it's important. i say again as long as we do not dispose of supplementary information there is an essential principal in a democratic state the respect of the presumption of innocence as long as we don't have supplementary proof on the contrary, we had a long exchange with the japanese economy minister about the situation with renault and nissan as an enterprise, what is important for both of us is the preservation and strengthening of the alliance between renault and nissan >> that was the french finance minister weighing in on the situation. i'm pleased to be joined by mattias holberg from the university of oxford i want to ask you, if ghosn goes complete completely, is it inevitable we see a fracturing of this
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alliance >> good morning. no, i don't think so there'sn shun dimensions to this there's the misreporting of this, and your report highlighted broad interest by all stakeholders to maintain this alliance, but the power struggle was not for maintaining this alliance but for deepening it and turning it into a full merger so the rift in the nissan board was about a full integration of nissan into renault. essentially this, i think, has now ended by a very public unjapanese way of dealing with this case. mr. ghosn had an extraordinary career of outstanding achievements of turning around renault and nissan, so this is a very odd way of ending a stellar career in the automotive
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industry >> you mentioned a couple things i want to pick up on in terms of the potential for a formal merger, why wouldn't nissan want to formalize that relationship >> go back to 1999 nissan was showing huge debt of about 20 billion u.s. dollars. it was almost near bankruptcy. renault stepped in to save it. carlos ghosn was brought in as a foreigner to do what no japanese ceo could do, that is to cut ties within then industrial conglomerate, to lay off people. he did a great job of turning around that company. fast forward to today, 19 years on, nissan regained strength, there's been issues of fuel economy figures, but nonetheless, it's a stronger company. now you have two companies that are of roughly equal size and strength so there may be a feeling that
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nissan is not in need of being taken over but can stand on its two feet that's the power struggle we're seeing >> i want to pick up on the other point, you mentioned about the manner in which the japanese pursued their investigation and they've made this a public event. in terms of internal investigations, typically these are done to try to protect their leaders. what do you make of the fact they used this internal investigation to confirm the allegations and did so in such a public way >> you're right. it's very unlikely with hindsight we will compare how this case has been handled in regards to other cases of similar cases of misreporting. at the moment we don't know much we know allegations of underreporting of share price
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linked bonuses there are talks about properties that have been available for personal use but really we don't know much. what is very unlike japanese governance is this public and very immediate reaction of nissan not supporting their chairman >> is one other question not really about government involvement? the fact that the french have a stake both literal and metaphorical in the sense of renault, it makes these discussions more complicated, doesn't it >> yes and no. the auto industry regardless of where they're based are large employers, they support many jobs and supply chains around them so wherever there's a big discussion around a car company, governments will step in the french government holds stakes in renault and peugeot, so they are -- there's two ways in which they will engage.
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one is a shareholder and one is as a national government that seeks to maintain employment in the latter they have spoken with the japanese government here >> thank you very much cnbc caught up with mcclaren racing's ceo to discuss these issues about nissan. >> i don't think we know what's happened or what is going to happen he's a big supporter of formula one. we are watching it closely i think formula one has done well for renault. so it's a fascinating story. i'm not sure we've heard the end of it. not exactly quite sure anyone
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knows exactly what has gone on coming up a spanish minister says britain's behavior has been treacherous as theresa may battles to gain support for her brexit deal. more on that when we come back (vo) gopi has built her business with her own two hands.
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welcome back to "street signs. i'm willem marx. >> i'm jewulianna tatelbaum. these are your headlines renault shares hit top gear as nissan says it will nominate a new chairman within two months after ousting carlos ghosn, jeffries raises the stock to buy from hold. gibraltar's chief minister claims a deal has been reached with madrid over the territory despite pedro sanchez threatening to veto brexit >> the british people want this to be settled. they want a good deal that sets us on course for a brighter future that deal is within our grasp. i am determined to deliver it.
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global retailers hope black friday will light up the bottom line with shoppers expected to snap up over $6 billion worth of deals in one day. a fresh selloff takes oil prices to 2018 lows as the saudi energy minister vows to respond to weakening demand raising the prospect of a broad supply cut >> european markets are opening up with a pretty strong start to the day across the board we are seeing green from italy over to the uk the ftse mib up about 80 basis points the ftse 100 up about 30 basis points i highlight those two because of brexit and the italian budget negotiations remain at the fore of investors minds. let's get into what we've seen
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over the course of the week. it has been a negative week overall despite this bounce that we're seeing so far this morning. the ftse 100 is down about 40 basis points not a major move there the ftse 100 is divided between stocks that actually benefit from weaker sterling and those that are hurt by it. so it masks a bit of the divergence we've seen sector-wise. we also have some big oil and gas and basic resources names that have swung wildly it is the worst week seen in switzerland and france now let's look at fx and given that fx has been a driver of what we've seen, sterling a key driver of what happens here in the uk we have a look at how sterling has traded over the course of the day so far, down about 0.24% versus the dollar. the euro down about the same versus the dollar. let's have a look at how the u.s. has traded. yesterday the u.s. markets were
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closed for the thanksgiving holiday. before that we saw massive concerns around tech this is not a new debate, but these are renewed and fresh and hil heightened concerns. looking across the board, losses of nearly 4% for both the nasdaq and the dow jones. the s&p has not escaped either, down just over 3%. let's look at how the u.s. market is shaping up today looking at another modest downward tilt despite that bounce we're seeing here in europe remember today black friday. expect retail and tech to be in focus. given the thanksgiving holiday yesterday, expect thin trading volumes. >> financial markets will be reassured in the coming days that italy will not change the pillars of its 2019 budget that's the language of deputy prime minister luigi dimaio.
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he said rome would show the highest willingness in talks with the eu. italy's eu affairs minister told cnbc he's not going to step down a paper had reported that he could resign over the government's decision to defy brussels' budget rules he told cnbc the report was the hope of my opponents german finance minister olaf scholz said germany will not create a new euro crisis he called on rome also to implement plans slowly prime minister theresa may will take calls on a bbc radio show thislunchtime to defend her withdrawal agreement the 26-page document includes a commitment to an ambitious and balanced economic partnership and includes the idea that england will respect the eu customs market
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may said a final brexit deal was within reach >> this is the right deal for the uk it delivers on the vote of the referendum it brings back control of our borders, our money, our laws and it does so while protecting jobs, protecting our security, and protecting the integrity of the united kingdom the fwreeagreement is between t and the european commission. it's up to the 27 leaders of the other eu member states to examine this agreement in the days leading up to the special eu council meeting on sunday. the prime minister has faced a barrage of criticism from remainers and brexiteers, including dominic raab who said staying in the eu would be better than may's deal jeremy corbyn attacked the plans in a commons debate. >> we have 26 pages of waffle.
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this empty document could have been written two years ago it's peppered with phrases such as the parties will look at. the parties will explore what on earth has the government been doing for the last two years? they managed less than one page per month since the referendum the prime minister said nothing is -- the prime minister said nothing is agreed until everything is agreed it's clear from this document that indeed nothing is agreed. this is the blindfold brexit we all feared a leap in the dark >> in just the last hour gibraltar's chief minister told bbc radio that britain reached a deal with madrid over the
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territory. the spanish prime minister threatened to veelt ed ted to of this weekend's eu summit. both nations are at loggerheads with gibraltar and madrid saying the territory cannot benefit from future agreements without its consent. silvia joins us in london with a bit more about this. we have this text now. we have the withdrawal agreement last week, now we're seeing a more detailed declaration about the future what happens now >> we have an agreement at the negotiator's level on the future relationship and the basis for that future relationship but the leaders will have to talk about this text on sunday the big discussion will only happen when the uk leaves the eu this march, because at the moment we have this political text they still didn't resolve the issues of gibraltar or
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fisheries. those details will come once the negotiations on the future relationship will begin. >> so a template, a wish list, but no guarantees. >> no gushiguarantees >> so these conversations will fry to flesh these details out, but there's no certainty this is not a legal binding document this is a political agreement. there will be changes in government in europe and of course what we have on the table now might change as a result the language in this text is vague. people criticized the political text in that aspect. we did get certainty when it comes to financial services. it says the regulation of financial services will be based on a system of equivalence so no reference at passporting rights it does say that the details on that financial services aspect will be negotiated by the end of june of 2020 it wouldn't be the first time we
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also miss a deadline when it comes to the brexit process. >> when we have these big eu councils, a lot of things seem to be decided ahead of time. does it feel like that's the case with this weekend >> from what i gathered when i was in brussels this week, that is the feeling because we have the text at the negotiated level and we have the exit agreement also ready, the leaders will convene on sunday and sign off on both things. the expectation is that the summit will end up actually before lunchtime at the moment the schedule is that it will end around 12:00, but the expectation from the officials we heard in brussels is that it will finish ahead of that >> i'm pleased to be joined now by steven saywell from bnp paribas. good morning thank you for joining us >> good morning. >> how big of a catalyst will this weekend summit be for
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sterling >> we actually don't think it's the real event to watch. our view at bnp paribas and the view of our uk economist specifically working on this is that there will be a deal, there will be an agreement but really the focus we think will be the vote in the uk parliament our view, as i said, the view of our uk economist is still that it's unlikely to pass. >> when would you decide to pile back into sterling, if ever? >> i think the way we would look at it is if you look at what is likely to happen, what's likely to pass, as we said, we don't think it passes in the first round. that doesn't mean there will be no deal. there is a 20% chance of no deal we would look for any kind of signal or catalyst that there will be a deal coming through. at that point, that the the time to buy the pound we agree there will be a rally
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in 2019. >> conversely, what signal would you look for to say this is not a trade we want to make? where would things get so nasty in terms of the possibility of no deal that you guys would say, all right, take our money off the table. >> we would say at the moment that is highly likely. we have a bearish view on both the pound against the euro and the dollar we think the key numbers are the numbers in parliament. we don't think theresa may will have the numbers to get that vote through if you look at the fx strategy team, you can see strong case for the pound to rally i think you're asking the right questions. what would be the catalyst for that to happen, and we think it will be politics >> have you heard the slightly circular argument, people started talking over the last couple of days about a t.o.p.s.
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scenario when that laegislation was put t the house of the representatives, it got tanked, then markets fell, the idea that the first vote will not work in theresa may's favor, do you believe there's a possibility of actions like banks like yours saying this is terrible news will then make politicians we think? >> that's an argument. you could broaden that out to other places in the world like italy as well. the way i would answer that question is to look at the positioning. how the market is positioned we're talking about the pound, sur currencies here. we have a monitor and it gives us an idea on a scale of plus 50 to minus 50 how the market is positioned currently that's telling us minus 23 on sterling so it's short sterling, but not excessively short sterling
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if you compare that to two years ago the market got down to minus 46 so there's potential for pound to weaken if you don't get the right political outcome from here >> to your point that you guys are expecting that the politics will be the main driver of sterling moving forward, does that mean the rate outlook is less important >> the way we would say it at bnp paribas, the pound tends to take the brunt of brexit politics debates if you look at gilts, if you look at the outcome there, it's much more dependent upon the bank of england. from that point of view, it's much more the economy, what happens and what happens with the bank of england rather than the politics of the vote >> fantastic stay with us we'll be back to discuss more. that's steven saywell from bnp paribas. for now follow us on twit r twitter @streetsignscnbc and
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tweet us directly also coming up on the show, will it be a hole-in-one for mickelson or will tiger snatch a birdie join us after the break as we dive into the unprecedented golf showdown
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welcome back to "street signs. shares in nokia and ericsson have risen on the back a report that the u.s. is pushing allies to shun huawei these are all nations that host u.s. military bases and plans to boosttelecoms aid that don't use chinese technology are being considered the chinese yew cuan softeno the back of data that the central bank spent more of the
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currency last month. the chinese yuan has lost over 6% against the greenback so far year to date we are joined once again by steven saywell from bnp paribas. all eyes are on the g20 summit coming up. give us a sense of how investors are positioned in terms of fx going into this event and where do you see the yuan going if we do see a resolution on trade >> really good question. again, i refer back to our positioning monitor at bnp paribas. what that tells us is the single largest long out there is the dollar that's very intuitive given what's happened as far as price action is concerned. when we have trade concerns, our view at bnp paribas is that tens to benefit the dollar. that's why the dollar has done well this year however as we go into 2019 and
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if we do see some developments there that may be more positive, that may be less focused on the u.s. side of things, we may start to see other current sis com currencies come back if that's the case we wouldn't be surprised to see the yuan or renminbi bounce back against the dollar >> so you're saying the dollar by far is the most long currency does that mean it's a consensual trade and there is significant downside risk from the dollar point of view? >> absolutely. that's the view of the bank, that's the view of our fx strategy team. another key point is the fed and the hikes we're getting. our view is we could be getting close to a peak. so there may be the chance of one or two rate hikes next year. far less than the fed is saying if you see that come into the market the market is overowned as far
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as the dollar is concerned a surprise trend is for the dollar maybe to weaken again >> i wanted to touch on the chinese economy and how this factors into the outlook for the yuan the market is concerned if about a slowdown in china. the government has been trying to sure up the market and support the economy. how far can these measures actually go and have they run out of steam >> what our economists in china are saying on this, yes, the economy is slowing we see that as a trend we've been saying that for quite some time. the government is trying to stimulate, to compensate for that slowdown in the economy we think they'll struggle to fully compensate for the natural slowdown in the economy. from that perspective we think the trend will be slower growth in china
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if you look at the trend for the last five years, it's a slowdown that doesn't necessarily mean a weaker renminbi. probably a good way to look at the renminbi is to look at it against other asian currencies against the dollar we think weakness could be at its greatest level here at these current levels >> you can't talk about the outlook for global growth without talking about the u.s. you already mentioned your view of the fed moving forward. it feels like europe and the rest of the world is taking its cue from the u.s is the direction of travel from here completely dependent on what we see from the u.s.? is there any way we see a divergence >> we think there may be a divergence coming in 2019. a good way to look at that is the u.s. versus europe as we highlighted, we think the u.s. economy slows from 2.8% to 1.8% however europe continues to do
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very well and particularly inflation is likely to surprise to the upside. so our chief eurozone economist expects an upside surprise to inflation in europe next year, particularly in the core i think that's likely to push bund yields higher, european yields higher, too, which could be an unexpected market outcome of 2019. >> thank you very much for joining us that's all we have time for this morning. that's steven saywell from bnp paribas. >> tiger woods has enjoyed a return to form and fitness during 2018. he will renew an old rivalry with a fellow multiple major winner, phil mickelson the two will go head to head in a golf showdown later today. adam reed joins us around the desk to answer our questions about this my first question, how is the rest of the golf world reacting to this? >> a little bit indifferently.
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there's mostly -- they would be excited about this if it was ten years ago. however tiger woods is still the biggest name in golf at the u.s. open the galleries following him were twice the side of anyone else. that was even before he did well at the open and that he showed he can still compete at the top level. tiger hasn't won a major in ten years. phil hasn't won a major in five years. at the end they are two of the most popular and charismatic men in golf this is a $9 million, winner take all one-round golf shootout they are laughing to the bank. they both made over $40 million, so do they need this money no this is what golf is about, keeping people interested and watching golf has an aging audience, they want to enjoy a younger audience
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so this is the idea now. they wanted to bring in the young speck tatd tators to enjo watch it and gamble on it. here's what both players had to say ahead of today's unprecedented round. >> this is different than anything golf has done in the past that's one of the unique things about it we can showcase our sport in a different light. all the different technologies we're bringing to this event >> we had to create the pressure and the tension of a huge event. we don't have the history of the masters or major championships, which is why the number had to be so high that creates an uncomfortable environment for us it creates pressure >> okay. so no doubt it will be an entertaining round of golf >> one way or another. what i'm interested in, from a business perspective, how does this make money for other people whether that's the broadcasters
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or betting shops >> the broadcasters are charging 19.99 in america if you want to watch this that's how they'll -- >> it's like a title fight in boxing >> it's a pay-per-view, on demand thing that golf has never done before. the way it will be unprecedented and keep people watching, advertising has to come through and there will be live odds put on screen. people can engage in it that way. sofrnlgs >> so if you're one shot ahead on the 3rd hole, that will change your odds >> and there will be side bets will phil make this putt, there's already a 200,000 wager on whether or not phil mickelson will birdie the first hole that comes out of their pocket that's separate to the 9 million. >> that's a bet they chose >> phil said he would bet 100,000. tiger said double it it was like no problem that's the way it will happen
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all the way through this will you make that bunker shot that's one way they said they want to make it interesting. it will be an interactive way of looking at golf. and it may breed other types of things other players may get more interested depending on how this goes >> adam, thank you very much before we leave you, let's have a look at u.s. futures and see how we are expecting to trade after the thanksgiving holiday. looks like a marginal down day s&p 500 indicating down about 5 points the worst performer is dow jones, expected to be opening down about 53 points that's it for today's show i'm juliannaatba telum i'm willem marx. "worldwide exchange" is coming up right now i am a family man.
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i am a techie dad. i believe the best technology should feel effortless. like magic. at comcast, it's my job to develop, apps and tools that simplify your experience. my name is mike, i'm in product development at comcast. we're working to make things simple, easy and awesome.
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it's 5:00 a.m. 5:00 a.m. at the woodbridge mall in new jersey where you are looking at retail's big day getting under way. forget cybermonday, amazon front and center today some retail therapy. china ramping up the rhetoric ahead of next week's g20 meeting. a brexit break through, we'll tell you about that. and nissan ousting its long-time chairman carlos ghosn. all those stories and more coming u


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