a new emissions scandal effects 200,000 vehicles in europe and looks to cost vw 2 billion euros. glencore is reducing it's debt with asset sales and cuts to reduce commodity prices. marks and spencers shares jumping after they raise dividend and margin guidance despite a drop when it comes to

profits. signed, sealed and delivered. shares in japan post surge higher on the first day of trade in the world's largest ipo of the year. >> good wednesday morning. let's get to break news before we get into the rest of the program. we have euro zone, the september composite pmi above the boom bust line of 50 so we're looking at a lead of 53.6. when it comes to the forecast, which would be october, we're looking at an improvement of 50 for the euro, still trading below 110 versus the u.s. dollar. now let's check in on european markets and how they're fairing on this wednesday as we had another boost yesterday on wall street which means we're at the highest since july this year. europe sees green across the

screen. the ftse 100 seeing gains. the france cac 40 as well. now one stock i want to highlight today in german trade is vw. volkswagen porsche shares are skidding back into the red and for the first time prices have been dragged into the vw scandal. the company announcing 800,000 vehicles have been effected by yet another problem involving carbon dioxide emissions that could lead to a 2 billion euro charge for the car maker. this is in addition to the on going device that involves 11 million vehicles. volkswagen does not specify which models but does say it will include petrol one as well as diesel engines. they expanded to the luxury side as well as luxury models in the

porsche division saying it would s suspend sales until further notice. he is pushing hard for a clarification of events. vw also recalling certain cars when it comes to the u.s. and canadian markets a cording to a reuters report citing a memo to dealers that reuters got ahold of. the issue could reduce engine and brake power telling dealers not to sell anymore vehicles in it's inventory. and i'm so lucky this morning because steve stuck around from squawk box. i guess more importantly this involves now carbon dioxide inside of nitrusoxide. >> they will still make cars

when this dies down. some of the best names on this planet. the problem is when this all dies down, it's getting from bad to worse. they have taken a 6.7 billion euro hit in the third quarter but if we're talking about carbon dioxide, credit suisse saying the magnitude could be four times as much plus this revelation that's shocking that mpgs on cars may not be accurate. we have all known that miles per gallons on vehicles are eroneous. they say change the rules then. so this is much focused on the regulators as it is on volkswagen today because the regulators across europe have been useless making these tough tests on emissions or mpg, making them stick as well. so the regulators have to look at themselves and say how much

did we know and how much have we been enforcing as well. bad news for volkswagen continues and european regulators as well. >> that's interesting. so i guess it goes back on the government and how much their oversight is and how sight it's useless and what the regulators knew. >> the regulators are claiming we didn't know. it's on the company to review reporting this. >> the company is in big trouble and this is a company that has porsche as the main shareholder. they had a bad couple of months. one day volkswagen will be investable again but how do you own a stock at the moment which slowly is leaking out bad news after bad news? they took a 6.7 billion euro hit. some are saying 10 billion, 20, 30, pick a number. i don't see how you can say this is the line in the sand with the

information we have today. >> okay. so wouldn't that be comparable to say toyota in 2010 with the unintended acceleration cases and toyota bounced back to be the world's largest car maker. but just to get back to this particular revelation last night, and you're right, it's interesting that you're pointing out the difference in cost because with, what, i think there were how many million vehicles involved? >> 800,000 so far this time around. >> 800,000 costing 2 billion euros where as the other recall, the emission defeat devices -- >> numbers don't add up do they? >> they say it's as easy as correcting the software. >> is it only 800,000 vehicles and i don't think any of us can say that. first of all we thought this engine. now you're talking about petrol as well. not only for volkswagen. all the auto makers are falling. bmw is falling today and one

day, there might be a bit of information that says actually we have been doing a little bit of this as well. maybe we have problems with our emissions levels as well. the other problem for this group even when they sorted out all the problems with these emissions and paid all of their fines to the epa the regulations could change and get tougher and worse for diesel as well and they're at the crux of their european and wanted to be global strategy so the whole business model could be turned. >> isn't it interesting who is leading the charge to get more adoption of diesel vehicles. >> and what is interesting is this comes at the same time that the u.s. auto sales were record breaking. october figures, 18 million units plus. the industry, apparently, and i say that because the inscentive are doing well state side. >> not many people buy diesel vehicles in the u.s. >> it's small but they were trying to push them and now that industry policy in tatters.

>> thank you for being so generous with your time. >> how long have we got? another hour and 53 minutes. it's very difficult to stop. ask jeff. >> now don't forget stay tuned because at half past 10:00 cet we'll get to an auto analyst on this at ubs because he says this could be even worse than the emissions scandal. they'll be joining us with more about the widening scandal. staying with calrs and recalls this was the largest in history involving japanese takata air bags. this comes after the emotions battled auto safety firm was hit with a $70 million fine from u.s. auto regulators for the way that it handled recalls of effective air bags. the chairman and ceo saying the firm is cooperating with authorities. >> we think psan inflaters are

safe. but it's the fact that the end users, the car makers and authorities have concerns. we're trying hard but it's still under investigation unfortunately. this comes from a business decision. >> it's a different story for shares in honda with the group trading higher after a 6.9% increase on strong u.s. sales. now the performance stateside offset a domestic picture in honda with the 127 billion yen net profit still slightly missing consensus forecasts. staying with car makers, tesla reported a third quarter loss which is the biggest in ten quarters for the company on costs related back to launching the model x in september however investors are cheering tesla's ramp up of production following the strong roll out. they're also naming a new ceo. jason wheeler will be stepping

up to the plate. tesla jumping 9% after hours and over in frankfurt we're also up by similar gains as well. staying with earnings, marks and spencer is trading higher after upgrading the full year gross margins and also raising it's dividend by 6.3% and this is by posting a 24% drop when it comes to first half profits citing a challenging market both domestically and abroad. >> we also have glencore coming out with results. it struck a bullish tone in the latest trading update says it's debt reduction plans are on schedule. the mining and trading giant cut it's guidance for the full year to scale back on its costs. it will also bank $900 million on a deal selling around a third of its mines silver output to silver wheaton minerals.

joining us now, a man that says maybe glencore isn't going into extinction. good to have you. what did you make of this trading update? it's trying to cut down debt but still looking at 25 billion dollars in 2016. >> trying to get that down to low 20s there after. glencore is using this production update not just to talk about it's numbers of copper and zinc but to hit the strategic concerns that investors have been talking about and that's why this emphasis on the debt reduction is so key. it's been financial leverage that's hurt the mining sector in this latest sort of commodity downturn and glencore has had a significant amount of debt on its books and it's listen looking to cut that. it's a critical part of that. it's not the only deal they're talking about.

>> when is that going to happen? >> they haven't given us a time line but they're proactive when it comes to getting these deals done on an accelerated time frame. that's one of the hall marks of the glencore management team is when they put these announcements out they tend to execute on them rapidly. >> how are they reducing debt, raising cash? they had the $2.5 billion rights placement. >> they scrapped the dividend. >> they cut the dividend. they have this deal and we've seen a number of mining ones go down this course. they saw their silver, you know, out of that. so there's another streaming deal that the company is talking about before year end. so we're likely to see another quantum of cash there. we're looking to see the mines get sold over the short-term and the agriculture part of that agriculture business and trading business will also see net

inflows of cash there for glencore. >> so you sound bullish. are you saying glencore is a buy right now? >> certainly it's a buy when it hit 65 pence. >> was it a buy when there was a 50% default rate. >> absolutely. that didn't reflect reality as far as i could see it it's very difficult to call is this the bottom of the cycle. but for those that can take the volatility over the short-term t longer term value is there. >> so i guess this buy call is predicated on the fact that you think we have stabilization in commodity prices i assume. >> on any call on any mining company, be it glencore, they're going to be a call on the commodity price deck. if you think the commodity price

deck is going to go down another 20%, clearly there's down side value. if you think this is stabilization on a path to a medium to longer term recovery there's value here and that's my call. >> thank you. good seeing you today. paul gates. >> a 15 year high. closing at an all time high on tuesday breaking the 15 year record because you have to go all the way back to the years of 2000. this evening the web summit in dublin has the honor of ringing the closing bell remotely of course across the pond karen, talk to me about the mood and the atmosphere. >> it's a positive sign if you're a start up and you think

you want to get your company listed one day. the fact that you have technology stocks outperforming is a bullish sign. if you think about how this started, a lot of investors have been questioning where to put their funds. should it be going into dividend companies or corporate bonds or high-tech state side and you have seen the answer is the tech heavy index keeps on growing and showing year after year gains. it's this time around down to earnings as well. we just came out of august and september. stock markets had a bit of a wobble because of china and the background and then we got the earnings from the big tech heavy names. the likes of amazon came out and surprised with it's web services data. google as well. revenues up 50% to $4 billion in earnin earnings. many investors think it may end

up owning search. there's a lot of focus on the numbers today but i was talking to the boss of nasdaq european leaders business about the factors dominant sentiment whether it's interest rates, the u.s. political cycle next year or other macro economic factors. take a look at what he thought was the most important element of those looking to list. >> they're looking at their peers and their sectors and how they perform on the exchange and this is a key per rarameter to decide when is the right time. >> so that's more encouraging to list yourself. >> i would say peer more than rival. but that's a good time. >> it makes sense if you see a peer trading on a very high valuation that you might want to unlock the same value in your company but here's a step for you susan.

if you have a strong year on the nasdaq, it's not necessarily the best environment to go listing the following year. in fact, stats show that from 1999 to 2015, that when you have had an annual decline for the nasdaq the year after is the better year to be chasing a listing. for instance, you had returns of about 65% on ipos in 2012 coming after 2011 when this stock market went south by 2%. so, in fact, the better conditions for those companies looking to have their names up in lights would be to have a falling nasdaq this year. >> okay. not sure those long on tech stocks want to hear that but it's for the long-term interest. karen, thank you so much. she'll be joining us with the hyperloop next hour. also still to come, we are the bank of the real economy. that's the message from sanpaolo but can they rely on the

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>> making less money in the third quarter. net interest income falling 9%

on the year. meantime trading profits also close to volatility taking toll leading shares down in the session but a little bit of recovery yesterday but it was hit yesterday. let's bring in the ceo now. ceo of intesa sanpaolo joining us on the program. great to see you. good wednesday morning. best profits we have seen since almost 2007, 2008. >> yes. >> we can play dividend cash. >> i'll get to your dividend. i promise because everybody wants to talk about your dividend. so when you put in profits like this, how frustrated are you when you see your stock drop multipercentage points?

>> the point is we are the best performing stock all over the world in the last two years. so we dabble the market cap in two years and this year we increase by 30% the market share, the market price of our stock and was the best performance of all the other european banks so it could happen that you could lose 1% of 2% but now the stock is recovering because investors understood the reason why we had it. >> well it's actually just flat. there's not much recovery today from yesterday's selling. >> it is maintaining 30% increase by the beginning of the year. so it is clear that you can not ever grow and grow. so in two year's time we move from the 15 plays in europe and now we are the 3rd european bank. so i'm very happy of the performance of the stock. >> okay. so what about your confidence though when it comes to say the italian economy? from what i see, you had a

shifting in your portfolio. meaning that you have been selling off italian sovereign bonds. >> yes. we use the concentration because we think that this is what the regulators wanted so we use the concentration moving from 85% to 52% and this is the level that i consider safe for a bank like us but we are benefitting from the recovery of the economy because in reality we have such a good performance of net income because the italian wealth is improving so also it is the bank of the families in italy is improving. >> and growth once again. let me just talk to you about your dividends because i think investors heard you yesterday saying you could pay out more than 2 billion euros that you're marked for dividends. is that true? >> we considered a cash dividend machine. it's clear that the success is net income, common equity but

also possibility to pay divid d dividend. >> but will you pay more. >> we are in position to have excess capital and significant net income. so we're in position to pay more to our investors. we have to see the final result of the year and also the resolution because it's not something that can decide but we need to have a resolution. so i'm very happy if i can be in a position to pay dividend. >> well, i guess, you know, being a bank, you are also at the mercy of the european central bank, the ecb as well. let's update our viewers on what they're doing. a year ago today, he has given a speech in which he stressed the importance of completing the banking union and called for a

uniform system in order to protect depositors. >> in the early years of the euro we lived under the illusion that we had established a full fl monetary union. there can however only be a single money if there is a single banking system. for money to be truly won, it has to be truly fundable independent of its form and independent of its location. in particular, deposit which is are the most widespread form of money have to inspire the same level of confidence where ever they are located. to ensure that deposits are truly safe everywhere across the euro area the likelyhood that a bank fails has to be independent of the jurisdiction where it is established. resolution has to follow the same crosses in the event that a

bank fails. and when push comes to shove, depositors should have security where ever they are. >> so you're hearing mario draghi and the ecb. some say your net interest margins are really impacted by the negative interest rates. >> it is impacted by the government bond portfolio. we use it in a significant way as we told you at the beginning of this interview and it's yielding more than the other countries and also by the interest rates. so it's at the minimum. we the largest retail franchise in europe so it's clear that we have the impact arriving from it but at the same time the recovery is making benefit and provisions because it's improving the situation of the

italian companies so we're benefitting much more than the reducti reduction. so for me it's important. >> thank you for spending time with us today. that's italy's second largest bank by assets. so we'll take a break here on worldwide exchange but coming up later on the program, fed chair janet yellen will be testifying on a similar theme to what you heard from mr. draghi on banking supervision and regulation. tune in at 1600 cet time.

>> marks and spencer shares jumping after the british retailer raises it's dividend and it's margin guidance despite a drop when it comes to profits.

signed, sealed and delivered. shares in japan post a close nearly 30% higher on their first day of trade in the world's largest ipo of the year. >> okay. more breaking pmi figures to share be you. this time services september pmi for the u.s. we're higher by 5.3. 5.33 is the read. so we're still in expansion mode. meantime the forecast is informed because this looks ahead. the october services pmi is looking at improvement of maybe 54.9 or so. that is the forecast right now. interesting. so let's check in on other services pmi data because china is pretty important. china is more of a services

oriented economy than manufacturing. more than 50% -- over 50% is now coming from services and we saw that pmi rising to 52 in october from 50.5 in september. there is improvement there. now the reading also supports claims that beijing stimulus measures might actually be working. let's check in on the markets in asia and sri joins us live from singapore, sri. >> the services pmi out of china, very solid as you noted. one of the factors of several schematics that helped lift asian stocks. they're the run away winner as you can see here shanghai closing up by 4.3%. yes, there was a lot of speculation of reports and media speculation that we could see the hong kong shenzen tie up this year. we didn't get any official confirmation on this but still it was enough to really propel hong kong exchange and the brokerage stocks higher in hong kong and also on the mainland

too. you mentioned japan post, absolutely stunning debut from japan post and it's subsidiaries lifted sentiment on the nikkei 225. we had solid earnings helping sentiment on the australian market but stocks got capped really by other external factors as well. oil was in focus too. 5,242 for the aussie market is where we are standing at the close. that's where we stand. susan, back to you now. >> thank you so much. let's bring it back here to europe and we're talking about volkswagen and porsche today. both shares are skidding back into the red and petrol cars are being dragged into this vw scandal. the company announcing 800,000 vehicles have been effected by another problem involving carbon dioxide emissions. and this could lead to a 2 billion euro charge for the car maker. the issue is in addition to the

on going defeat device investigation which now involves up to 11 million cars. the latest discovery was made during an internal probe and doesn't really specify which models but it does include petrol as well as diesel engine cars. separately, also recalling certain vehicles in the u.s. and canada according to a reuters report sending a memo to dealers. the issue could reduce engine and brake power with the car maker telling them not to sell any more vehicles currently in inventory. let's talk through this with the man saying these concerns could be a whole lot worse. yeah, i saw that tweet from you saying my goodness, 800,000 but this time involving carbon dioxide which is much more serious. >> it's the primary goal in europe. so it is a big issue and also involves diesel as well as petrol so potentially extends the issue to be much more

serious. >> but do you think this is also vw trying to get ahead of the scandal themselves? >> i give him a lot of credit for staying in front of the problems. i believe him when he said he left no stone unturned. >> he's finding a lot of stones now. he discovered the cheating probes spreading to co2 tests because of at the missions. on going emissions. and now that involves petrol cars. >> and also it's something that nobody else could so you could question it. a co2 is not claiming better performance than anybody else. so you question it more and also you wonder what's happening in the rest of the industry. so we'll think about the implication of the industry more as a result of co2 being involved as well. >> we're looking at 800,000 cars and steve was saying well do you believe that number. do you believe that number? >> well, as he said, so many

stones turn up. all we can be confident about is he seems committed to getting to the bottom of it. how long it takes. this comes to giving off emissions from the actual engine itself. >> co2 is an issue of inefficiency and what we use. we know that cars produce more co2. the reason why the industry and regulators like diesel sits producing less co2. >> so i'm tallying up the totals here. 6.5 billion euros is what they're estimating the coverage would be to fix the defeat device issue. 2 billion euros now for the co2

deficient engines in petrol and diesel cars. what about volkswagen itself? how concerned are you about the future of the company? >> like many of my peers i look at a 6.5 billion charge initially taken. we have all sized large. in our numbers we assume 10 billion of total fixed cost. so we're now at 8.5 but it's always very hard to gauge how much. >> are you saying sell or neutral? >> no, this will happen on the back of a series of bad news around china which derated the stock and we're probably about to get good news out of china in the coming weeks and days and we think this business -- we built a lot of caution. we assumed that volkswagen will have to spend as much as 35 billion euros on fixing cars, paying fines and on a five year view this business can cope with that spending without raising capital. so far as there's a lot of

capital. the question is when do we get to reasonable confidence. >> thank you so much for coming in today. phillip, analyst at ubs. we're going to change here. cbs has reported better than expected third quarter earnings but revenues fell short and that's on lower ad sales and content licensing fees. the top rated u.s. broadcast network expects ad spending on the super bowl and also political campaigns to boost revenue next year. cbs is also discussing an ad free version of its streaming video service. all access which could cost $9.99 a month. similar to what you're paying for netflix. rising 2% in after hours and in frankfurt up some three quarters of 1%. staying with earnings state side, groupon with lower than expected third quarter revenue as the daily deal site was hurt

by lackluster sales in north america and lower revenue overseas. also a weak outlook for the fourth quarter and 2016 and groupon says the co-founder is now stepping down as ceo. he'll return to the role of chairman. she being replaced by the coo rich williams instead. shares getting hammered in after hours. down some 25% and falling by similar levels in german trade today as well. beating forecasts but sales missed despite double digit growth in china. revenue fell some 12% but actually would have risen 5% if you actually exclude the currency swings. they spent nearly $3 million in the quarter to respond to on going attacks on its business. fell after hours trading in germany down by similar levels. shares in ing are trading higher

today after they beat the streets with third quarter results thanks to a fall in dutch loan provisions. the environment is uncertain in their view and remains vigilant for any impact. squawk box europe spoke with it's cfo earlier this morning and asked him about the european recovery. >> europe you're starting to see growth beginning to show more if it were firmer than we have seen before. consumer spending increasing and we see signs particularly in the netherlands as well as price activity picking up and improving so for us being a diversified bank operating across many jurisdictions we're able to tap into growth opportunities in the euro zone but outside as well. it's been outside of europe is

where we have been getting most of our growth. >> dsm if is trading to the downside after the group unveiled a three year strategy plan which focused on organic growth and cost cutting and strict capital allocation. the dutch firm says the scheme will help deliver savings of up to 300 million euros by the end of 2018 and also making an appearance on squawk box europe this morning, exclusively, mind you, the ceo asked whether the plan could prove difficult to live up to. >> the economic visibility is a little bit less at this moment. we see external market. if you look to the imf data, the recent imf data, they anticipate a 3% growth in the years to come and we all don't know whether that will exactly happen but i base myself of course on those expectatio

expectations. >> let's talk about moodies. they see sovereign credit ratings remaining stable. in the global sovereign outlook for 2016 which is just published this morning. credit quality looks stable overall with major economic engines, the u.s. and china expected to continue to perform reasonably well in their words but the credit ratings agency highlighted risks with the outlooks they had about a year ago. joining us with more is in studio. good to have you today. >> good morning. >> busy, aren't you? what do you think is the most important part of this that we should take away with us? >> the fact that there's been a lot of talk recently about the implications of global growth and capital market flows.

we don't think that's going to disrupt the broadly stable sovereign credit trend. >> let's talk about the negatives. you're seeing more tail risk on the horizon. which one is keeping you awake at night the most? >> probably this question of capital flows. very jittery markets and capital flows reversing. big shift in capital flows driven by things that shouldn't matter. the chinese stock market shouldn't matter but it caused huge shifts in capital flows. that in itself, the unpredictability of those flows and what it might mean for the most exposed sovereigns around the world and that's probably the most concerning. >> obviously i understand the china one, when stock market isn't performing well. not just international investors local investors want to take their money elsewhere to make money but where else. >> if you you're looking at countries such as turkey it's countries that have current account deficits and fiscal

deficits as well. >> so in different regions you're seeing it. >> more negative outlooks than you did about a year ago. what do you think have the highest probability of being downgraded. >> well, any negative outlook. we only have like 17 negative outlooks. a negative outlook signals a very common downgrade. >> but if you, i guess, had to pick one. >> all we tried to do in this report is to identify those which we see as most exposed to some of these broad secular and trends or specific shocks and again those with big current account deficits and turkey is one we look at as a country which is very highly exposed to quite volatile capital flows. >> you come back when you make a move.

thank you so much for your time today. we're going to get an update on a developing story that came out this morning. at least 41 people died in a russian made cargo plane that crashed in south sudan according to a policeman speaking to reuters. the plane took off earlier today from the capital. a presidential spokesperson said one crew member and a child did manage to survive this crash but could not confirm the number of fatal at as. now families of the russian plane crash over the sinai peninsula have unanswered questions as the investigation continues. there's questions of mechanical failure, possible explosion or unsuccessful repair job years ago. >> we're going to break but coming up next, flat in berlin to 15 million customers and a frankfurt stock listing. we'll be speaking to the man

that founded it coming your way next.

>> the japanese telecom company reported a 39% increase in profits amid signs of improvement at sprint. cost cuts they say are bearing fruit. >> it's been a strong shares. they're up since last october's ipo. despite this, the group's third quarter erngs did cause concern for investors as it lowered the profit target for the full year. but let's get to karen standing by at the web summit for more. karen. >> thanks, susan. this is a company that started 7 years ago and is now worth 7.9 billion euros. it's fair to say there's a lot of tech start ups here that want to become the next deck millionaire. let's talk more about the companying. joining me is robert who is the

founder and ceo. great to see you. let me put that question to you about your story. how do you grow a company from being loss making 7 years ago to profitable and worth 7.9 billion euros in today's market. >> yeah and i think we started very, very small. so we did like 6 million revenues and then like 500 and 1.2 billion and lastly we did like 2.2 billion in revenues it was a tough ride. so we are very lucky with consumer demand and therefore -- >> how possible is it to do what you have done? because it doesn't seem there's a lot of barrier to entries. could another player, do what you have done and create a similar size business?

>> i think that -- yeah, i think everybody can do what we have done. i think in terms of our history, i think we were lucky. like in 2008 there was a huge consumer demand for on line and i think there was not that much offer. so we pretty much grasped this opportunity. >> who do you see as your national competitors? direct competitors or businesses going after an online reach? the more traditional players? who is a national competitor for you? every year about 400 billion within europe and you have lots of localen line retailers. so it's a pretty big space. what we see in the future is that the come pet tors of the past, is pretty much not that

much of the future because everything is online, off line. it is coming through. >> i have to ask you about it and it's 73 times pe. massive number. how do you justify that type of multiple when asked about your growth story. what would you say to investors about staying on board because of what you can deliver? >> usually we don't comment on valuations because it's up to the value. it's a big market. we have like a 0.7% market share. very happy that our investors believe in us and the future opportunity becoming a lot bigger than we are. >> there were a few question marks about your outlook to your profit. you have this system where you

get customers to pay later after they received the goods. is that the right strategy in term of payments these days when customers are more familiar with paying with credit cards over the internet? >> well it is because you have some countries which means they have a package. it's risk free for them. but we will keep on offering. >> there seem to be a lot of players in the sector. what do you make of the online payment processes currently and where do you think the story is going to go with those companies? >> we have about 20 or 25 different payment measures. they love cash on delivery.

germans love paying for it and even though french people still love doing it which has been amazing and for us it's pretty much there's demand of making it a lot more simple to consumers but as long as there's no disruption and i believe there will be a disruption in the future but as long as this does not happen we just keep an offering the payment methods are great for consumers. >> so online payments are ripe for disruption. interesting message to take away. thank you. the founder and ceo zalando. i hope you were listening closely to that susan about creating value because just extraordinary to go from a business that was a start up less than a decade ago to being a billion euro business today. >> that's right. i'm looking forward to the hyperloop interview next hour. wouldn't it be great to get from new york to l.a. in 45 minutes instead of five hours on a

plane. >> or london to edenborough and to portugal for you for the web summit next year. let's talk about the largest ipo of the year. japan post overly delivered on its stock market debut. it soared upon launch opening up 15% out of the gate and one of the subsidiaries japan post bank enjoying a similar spike on debut while the other one is left by 50%. also the japanese economic recovery. >> a triple listing from three entities of japan post the postal service and bank and insurance. first trade for all three entities significantly above the

ipo price indicating and confirming what brokers were saying in the run up to this mega ipo. the biggest the world has seen since last year and the biggest in the world for 2015. they're going to be raising close to 12 billion u.s. dollars but this ipo is so significant in so many other ways. first of all it's a decade in the making. it's taken ten years to get this far and when you consider the magnitude of the bank alone, the bank has deposits of 1.7 trillion yen and imagine if a lot of that money now parked in japanese government bonds starts switching into global assets. that could have a ripple effect on the global economy and in terms of the insurance, this is the biggest underwriter in addition to that. it is an attempt by the japanese government to try to get more shareholders, a new generation of shareholders into this economy. as you know we're three years

into the so-called abenomics agenda and some of them are petering because we're tinkering on the brink of recession. this is going to a fairly important test for the help of recovery here in japan. >> well it lifted and powered the nikkei. as you see, seeing declines and advanced rally in the session. we're going to go to break and in the next hour we'll talk more about donald trump.

>> here are your headlines today t. winning streak continues. wall street marching toward all time highs again with energy stocks leading the way on a big jump in oil prices. europe is following suit. tesla shifts up a gear lifting it's delivery outlook for the fourth quarter. the stock rallies 9% in after hours and also helped by higher margins. vw and porsche shares are hitting the skids as a new