welcome to street signs. i'm julia in davos. >> and i'm nancy in london. these are your headlines. >> all prices enjoy their biggest price in almost three months sending energy stocks across europe well into the green. prices will keep going higher. >> markets at work and i think the lines will balance by the end of 2016. inventories will draw down during '17 and i think oil will go to $70 by the end of 17. >> a friday rally to go into the

weekend. european stock markets take their queue from asia with all sectors in the green as the stoxx 600 surges. >> if you can live with volatility in the short-term there's quite interesting opportunities in motion. >> the light goes out for phillips on a $3.3 billion deal. u.s. regulators block the deal to sell it's division to a group of asian investors. >> the french economy minister tells cnbc that mario draghi is doing his best but calls for urgent structural reforms across europe. >> my view is that the measures are critical for the coming months as we have accelerating these reforms. >> hello and welcome to street signs and happy friday it is here in europe. we have been waiting all week

for a relief rally and finally we have it. green across the board. a dozen or so stocks in negative territory. jumping 2.3% brent and wti both above. ftse 100 up 1.8%. xetra dax 1.9%. cac 40 2.5% and mib 1.4%. we have another busy day throughout the show. more high powered guests. the big names will be coming. we will be talking to the ceo of investic asset management and the chairman and ceo and keeps coming with david solomon, the

co-head of investment banking division at goldman sachs. but we're keeping an eye on the global relief rally. let's get a check on how asian markets faired. sri joins us in singapore. great to see you. happy friday. you have been great at predicting whether or not the relief rallies will hold. what is your take today. >> don't get me wrong. i like a good rally as much as the next man but i don't think this is built on a firm foundation. it's the expectation and the hope of more stimulus and for the japanese markets the hope of more stimulus and not a very strong basis on which to build an investment case. if they feel they'll get more help from the central banks. the fomc next week. so a lot is riding on their commentary and on their stance

and also their rhettic. how dovish are they going to be? are they going to take a lead out of mario draghi's play book. you cannot take it away from the market. up almost 6% after the close. there's problems domestically. he is under a lot of scrutiny right now because of an accounting scandal apparently. so if he goes that's going to be a big, black eye for abenoics and set back for the trade deal as well. hang seng another market that overshot to the down side. overshooting to the upside as well. this is interesting. mainland china equities behaving themselves. not really going on for the ride. but stability up by well over 1%. so it's all about the central banks. are we going to get more hints or more candy from them than seeing if they do? if we do hear that then that

could really feed this rally that we're seeing play out in the tail end of the week. >> european markets off 10 act at the close. a lot of dependence still on central banks and we can't ignore the relationship to oil prices here and the super bearish calls continued in the last couple of weeks with standard chartered downgrading to $10 barrel. prices will likely remain volatile in the first half of 2016. but here's the reaction from our other guests. >> everyone is trying to workout whether we are entering a period of deflation or whether all the commodity price falls and as we have been talking about oil, indicate solely a supply problem. so that's why markets are trying to workout at the moment.

if it's deflation, markets are probably still overvalued. >> you have seen other speakers talk about, you know, a year of two halves. first half being weak and the second half being more stabilizing forces but longer term we see very positive prices. it is very weird this time that almost everybody is -- usually the markets are cheering but this time the markets are not cheering with the prices low. >> i think opec is as relevant, 70% of oil production and today is less than 30 in terms of traded oil. it's much, much lower than that. >> the sell off that we have seen in energy related commodities not only isolated to that sector. it's been a broad spectrum. also the commodity markets and focussing in particular and

analyst at the same time a looming coffee crisis as a result of extreme weather. our next guest says global production will have to rise by 40 to 50 million bags in the next decade to keep up with consumption. i'm joined by the chairman and ceo. good morning. >> good morning. >> wish we had a cup of coffee with us now. it's absolutely freezing. let's talk about what's going on in the coffee market. do you think it's out of whack with fundamentals and has been dragged by what we have seen more broadly in the commodities complex? >> in the short-term we see the coffee dropping as a consequence of commodity dropping lead by oil. as a matter of fact there has been a small deficit in production and the stocks are very low so the price should not be so low as now. and also there is el nino which might effect the production but the reason expectation of a bigger crop next year. so it will start a few months

from now so the price probably will not raise a lot. >> it's a big problem because coffee is one of the crops that is severely effected by climate change which is a threat in terms of too high temperature when it is produced. a threat in terms of security. or excessive rates in other regions. it goes around. problem is that apparently most of the land suitable will be reduced by 50%. it's a consequence of climate change. at the same time coffee consumption are growing until 20 years ago. coffee consumption was mostly oecd countries. maybe 800 million consumers. now 1.5 million consumers.

and countries represent only 50%. so compound average growth rate would predict we would need twice as much coffee at least, probably three times as much by the end of the century with less than 50% available i think we have a problem we need to face. >> i agree with you. i want to pick up on the demand story in particular because we got starbucks results last night. obviously a different business model but they did see weakness in china and asia specifically. point out the different business models that you operate but what are you seeing in china? are you seeing demand weakness? we're supposed to be seeing the shift to the service lead economy. >> i'm not concerned because first, the china economy as we know is shifting from export of durable goods into an economy of

internal consumption which means they will consume more. as it did already happen, coffee consumption grows along with the increase of disposable income. so the gdp of china keeps growing by 6% which is a huge amount. much more than what used to be 10% maybe 15 years ago. so we should not do percentages only. >> it's a big economy as well. >> the demographic is stabilizing in china. so disposable income is increasing in the country and coffee consumption will continue to grow double digit. i expect china to become one of the five largest coffee consuming coffee although still one of the lowest in per capita within the range of one generation. >> very interesting. i want to talk to you about italy though now because we're seeing a bit of a divergence. if you look at the consumer confidence it's pretty buoyant and you look at the industrial

production and growth data and it's muted. what is your sense ultimately? are we going to see growth weaken or it come into line with what the confident stats are telling us? >> italy is coming back. we have some tail wind because the price of oil is stimulating consumption. very low interest rates stimulate investments and the low error stimulates the exports. so it's good for the economy. on top of this, the positive effects of reform. not only this government but the reforms of the previous governments are starting to be effected on the economy and with good political leadership this is also impacting on the mood. on the trust of citizens. so i would say that we still have a few problems. reforms would take a long time to be done. because they're really structured very strong in the

country. we have still a problem to fix with nonperforming loans in the banks that needs to be urgently fixed but all in all italy has really good cards to play in present and future. also because it's the economy of beauty and it's all over the world. there's a huge potential for our country. >> and beauty sells. the ceo of illy saying italy certainly has cards to play. nancy, back to you. >> thanks for that one. after the break i know you'll be joined in davos again by the ceo of investec asset management. stay with us. serena williams. hi watson. you are a fierce competitor. i've heard that. i have analysed your biggest matches. oh really?

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welcome back. now given the wild swings in markets. asset prices over the last few weeks a lot of people questioning whether the volatility is here to stay in 2016. listen to what top money managers have been telling us in davos. >> this year in the financial markets this is without a doubt the worst start to the year. certainly in that period and longer mathematically. >> there's a lot of anxiety in the world and volatility through the world. we have to ask ourselves what is 2016 going to bring? it's going to bring bad equity markets. >> in private people are out of our concern. both about the most likely outcome which is likely to be we weaker than what was priced in but also tells of the risk which are definitely on the down side.

>> so let's pick up on this theme with our next guest. ceo of investic asset management. thank you for joining us on the show. is volatility here to stay in 2016? >> 2016 is going to be a year where many, many market levels will be tested because opinion is divided and there's real issues and challenges but i like years that start badly. >> why? >> because opportunities start to open up. if you look at last year everything is getting better and by about march, april we realize the world isn't as good as it was and at that stage people were probably too optimistic. >> you were quoted yesterday talking about something else and you described the current environment as the bear market. do you think we're in a bear market? >> yes. i'm one of those technical people saying a bear has to be 20. we're in a bear market. people are nervous and worried. money is on the sidelines and we have had more than 20% draw

downs in various markets. particularly in the major in dollars. it's easy to measure in local currency but in dollars many markets have had it and we briefly were there with the advanced markets and one of the big investors said they felt very, very cautious. >> how much of the cash is on the sidelines in terms of proportion. >> money managers get mandates and many have to be fully invested but we have been reasonably cautious for sometime and we have cash to invest we will see quality opportunities emerge and we need to pick slowly during the course of the year and if you're a long-term investor the next few years

could be very, very good but i don't see markets running away or having a blowout because the central bank is out of ammunition. >> are they really? because we've had dovishness and the bank of england. rumors that the bank of japan are going to downgrade cpi and look at stimulus. >> the more you do now to address the symptoms the longer it will take for the cause to be dealt with and so i don't think this is a 2009 moment where it was very obvious that central banks would come in yes they still have fire power and they should use them but particularly governments need to adjust fiscally and companies need to make sure that their balance sheets are right and risk profiles are appropriate. >> we haven't done enough of that in the last five years and that's not stopped investors buying. >> you know, i guess positive bias tends to reign in the

corporate world but this has been a clear wake up call and i think the caution is a good thing longer term. >> what do you think is leading this? what is driving the sell off that we're seeing now? >> well, we started with an obviously china reaching the end of its previous model and then a lack of balance sheets in certain areas. the emerging currencies have taken a very big hit in the past year and that needs to work through the system. >> tough isn't it? the factors that people have to deal with. always great to get your insight. so just talking about china there. a lot of concerns about what the slow down in china's economy

means. is it about transition? are policy makers handling it? listen in to what people are telling us about china? >> people are talking about the two part of the world in china. old economy and new economy. sometimes people describe them as fire and ice. maybe that's probably a close to reality descriptions. >> i think the new economy is doing very well. if you look at the company, most has grown rapidly and they have their own challenging. clearly, new technology competition from whether domestic player or international player or added pressure but the fundamental economics is very clear if you look at alibaba they have become a global leader but on the other hand many of those old economy companies are not in good shape. if you look at a manufacturing

industry oval i see many facing challenges. there's overcapacity issues, raising labor cost and adding pressure on their margins and many is not going to be effective and i think the recent discussion about reform on supply side will go away and means good for china. >> survival of the fittest? >> exactly. >> do you think they understand the problems and will be able to change the outlook? >> yeah. i think, you know, many government entity has really been deeply in understanding how the tech space has been. and many of those policies are toward encouraging young start ups. people are talking about, you

know, venture capital and investment and as well to build a whole eco system helping young companies. and obviously there's a lot of things to do on that side. economic reform means, you know, financial reform for example but i think the government has done a fairly good job in making sure that economic growth is on track but at the same time we are just the economic, you know, component, for example, increasing, you know, the consumer part of the economy. i think that's very critical but it's actually not easy because you have to make sure that while you're adjusting your economic, you know, structure, you have to maintain a certain growth rate. >> it's difficult, isn't it? as you say. there's also the fact that markets are driven so often by perception. what would you say that the leadership needs to do to show investors and really show the global communities, so many of

whom are represented here at davos that they have a handle on the situation. >> communication is necessary. i'm very happy to hear that the state finance office has explained the recent policies and a lot of communication needs to be done for global investors. i have a lot of phone calls in the last one to two weeks. a lot of misperception. and whoen you see the asia market is coming down by 30 or 40% but in reality the fundamental economics is quite strong and obviously the short-term, you know perception issues but i think we just need to do a better job to explain what's really going on. >> so that was hadley gamble there speaking to the managing

partner talking about investment opportunities in china. the old economy and the new economy in china and what we have seen from policy makers as far as the gyrations in the likes of the equity markets. the government needs to communicate more but we need to separate those two things and that's a very valid point and a lot of the discussion about china goes exactly to that point. back to you. >> certainly the asian markets today. the global markets trying to give all the leaders optimism into the weekend here as we're getting ahold of the global relief rally. take a look at how european markets are fairing and hitting near session highs of the day. ftse 100, cac 40, fste mib up 2 to 3%. we have wti closing up the highest level in three months yesterday and that surge

continues that's at 3086. wti crude up almost 6%. that's helping to push oil and gas stocks higher. and moves are expected to carry over. u.s. futures are calling a higher open there. the dow jones higher by 206 points. s&p 500 called higher by 27 and the nasdaq higher by 71. this will be good news given that month to date these markets are off quite significantly at yesterday's close. even the bounce we had in yesterday's session still look at declines of around 9% for the major markets there so investors will want to see if the relief rally will hold going into the weekend no doubt. >> stock movers here in the european session. shares have taken a slight dip today and reported that it's $3 billion sale has now been rejected by the u.s. government. the committee on foreign

investment gave unspecified projections to asia's go scale capital. let's get a look because they're getting a boost in the italian market. they reported a 7.4% rise in 2015 revenues. sales rose 3.7% while the americas saw a 21% up tick. favorable currency moves helped upset weakness in hong kong adding that it will open up to 15 stores this year. shares are also trading higher. this after he said in an interview with italian media that the bank is pursuing tie up options. now he tried to reassure investors saying the bank doesn't need to increase capital as it is in a strong position. let's get back out to julia who is standing by in davos. high julia. >> we do have to take a quick break but a lot of the questions we've been asking today as far

as the markets are concerned, is this now a bounce we're seeing or is it just a phase of consolidation? well i'm going to be picking up on that question with david solomon. the co-head of investment banking at goldman sachs. that coming up in a few minutes. stay with us. you're watching street signs.

here are your headlines. >> back above 30. oil prices enjoy their biggest spike in almost three months sending energy stock across europe well into the green. crude guru says prices will keep going higher. >> markets at work and i think the lines will balance by the

end of 2016. inventories will draw down during 17 and i think oil will go to $70 by the end of 17. >> stock markets take their cue as the stock 600 surges. >> if you're prepared to take a long-term view and you can live with volatility in the short-term there's quite a lot emerging. >> the light goes out for phillips on the $3.3 billion deal. u.s. regulators block the deal to sell it's division to a group of asian investors. >> the french economy minister tells cnbc that mario draghi is doing his best but calls for urgent structure reforms in europe. >> my view is that these measures are critical for the coming month and we keep pushing and accelerating these reforms.

>> welcome back to street signs. it's shaping up to be a very happy friday for our global markets. we can give you a look at how the u.s. futures are calling the open on wall street. the s&p 500 due to open up 27 points. it follows a descent gains on wall street and markets did come off their highs of the day. investors continue to take a queue from the move to the upside in oil prices. both wti and brent getting back above $30 barrel. strong gains in the asia session and here in europe as well a look at the markets one by one. we're seeing the stoxx 600 up at a session high and no surprise buying across sectors but particularly for oil and gas, basic resources and that helps to explain why we're seeing the ftse 100 up at 2% right now and the french cac 40 leading the way higher by 3% and the ft ftse mib higher by 2%. part of these gains are tied to

mario draghi's comments yesterday and did say that policies are not working and that the fed's next move should be easing, not tightening. now just a couple of the views of our guests. listen in. >> they have to temper it a little bit given the emotional state the markets are in. you hate to do that. you hate to think that your monetary policy is driven off short-term market but i would be surprised if we don't see more rate increases this year. i would be. >> it's hard to believe the impact that people ascribe but governor draghi has credibility here. he came out and said he would do whatever it takes. >> i think it doesn't have this tightening effect. as long as the american economy is strong they should raise a little bit more. >> i think the next major move in fed policy will be toward quantitative easing and not toward a tightening. >> this will be a negative for the economy. this market movement and that

will mean that the fed should remain flexible, right? it shouldn't be so wedded to a path. >> just some of the views on the central bank debate and mario draghi striking a dovish tone yesterday in his policy statement so many banking on additional easing in march. meanwhile let's get you up to date on the stock movers here in europe. sap raised it's outlook for revenue in profit next year. this despite a decline in the fourth quarter. the german software maker made progress in it's transition from a software firm to a cloud supplier. they're targeting operating profit between 6.7 billion and 7 billion euros for 2017. if you can look at how the stock is fairing off just about 1% and this comes against quite significant gains for the broader german market. there won't be a u.s. style compensation scheme for european drivers in response to its

diesel emission scandal. volkswagen is concentrating on the repair and service process in europe and there's no grounds for the type of compensation program. the announcement comes in response to such a scheme from the eu's commissioner. >> starbucks first quarter earnings got an investment with shares sinking after hours. this as the group underwell med with the second quarter outlook. should investors be pretty steamed over these results? >> even as guidance on earnings for starbucks was a little light and the top line last quarter was a little light, ceo howard schultz talked about what a record breaking quarter it was. operating income topping $1 billion for the first time. record revenues of $5.4 billion but a couple of things to highlight. china and k-cups. first china. same store sales growing 5% down

from 8% in the last quarter. they plan to open 500 stores a year for each of the last five years and schultz was there for an opening where he was joined by jack ma and now they can send digital gifts. starbucks being the first allowed to sell a stored value card this way and they plan to double per capita income from 2010 to 2021 and create a chinese middle class twice the size of the united states is sustainable. >> first let me say that china is here to stay. during today's period of transition it's necessary for it to move on its next stage of development. >> the second issue, k-cups. starbucks now has the lead in k-cup sales and with the sale of keurig starbucks is in the k-cup business to stay. the question is whether that will be in conjunction with

keurig or if starbucks might do it on its own. it talked about dramatic growth and mobile order and pay. in the united states alone there's 6 million mobile orders and payments per month using the starbucks reward card. cnbc business news. >> i want to bring you some breaking data out of the u.k. we're getting it for the month of december and that came in at 6.87 billion sterling compared to a poll so quite below expectations there and this also pointing out that the u.k. december deficit is the lowest since 2006 and we're getting retail spending facts here with the retail spending off 1% for the u.k. that compares to an up tick of 0.9%. that's the biggest fall. some of that due to weather as

well but also a drop off in foreign visitors and largely the warmer weather we have seen. a check on sterling up slightly by 0.5% but this came off highs early in the session. we did see dollar strength across major currencies in yesterday's session. let's get back out to julia standing by with more on the reaction to markets live from davos. hey, julia. >> hey, nancy. thank you. as you were saying there given the wild swings in the market since the start of 2016 we have been asking people here in davos is the volatility here to stay for the rest of the year? listen to what some of the top money managers have been saying about that prospect. >> to take a long-term view and what you have seen is not only weaker companies being hit hard but also very high quality companies being seriously derated and if you prepare to take a long-term view and live with volatility in the short-term then there are quite

interesting opportunities emerging. >> if you as an investor can identify those companies that are going to be growing independently of what's happening at a macro level of gdp then there's definitely value that's in there in the equity market. >> let's get more wisdom on this. i'm joined by david solomon. great to have you on. ceo said to me i don't care technicals. we're in a bear market. do you agree? >> it's been a volatile start to the year and everybody is watching trying to understand what's going on. i'd like to watch the market a little bit more and watch how things develop and unfold before making a stronger statement but certainly there's a lot of volatility and that's causing some angst and effecting confidence and has a bearing on how people will be in the market. >> do you think we see another leg lower here?

>> i don't predict but we'll continue to see volatility in markets. people are trying to gain their footing and confidence and have an understanding as to what's causing the volatility so i wouldn't be surprised but we'll have to watch day-to-day. >> what's the driver here. >> there's no question that there's a correction in a variety of markets. but one thing is as you talk to people about her businesses they're chugging along okay. growth has been sluggish and there's a sense that things are slower than they felt six months ago but there's still growth and people are progressing in their businesses. >> i wouldn't say it's an overreaction. markets are smart but at the same point i think we had a few weeks of volatility and you want to be cautious of determining exactly what is causing that but there's been a reprice in risk and people are risk off and that's obviously effecting

confidence and we'll have impact on decision overtime if that continues this way. sd the hasn't change s take at this moment. >> even if things just stay as they are in terms of the growth outlook for the u.s.? >> you'll have to watch and see. clearfully the markets continue to be very difficult, the markets continue to trade down and ultimately that leads to a more evident slow down in the economy then the fed will have to react appropriately. but i think it's early to see or know how that will play. >> we're going to be in this we are volatile between 20 and $40 barrel. that plays into what we're seeing in term of the spread widening in the high yield market. the big banks increasing their provisions. t playing out tha too?articular this is a key feature of the credit markets that people are it's a here and

concern. >> so. >> particularly given inventory or the lack of it. >> it spreads wide and makes financing more challenging. i would say when you look at the high yield market you can almost get it into two different portions of the market. anything related to energy, minerals, natural resources, obviously spreads have widened very materially. there's a lot of stress in that part of the market but when you look at the rest of the market indicative of the rest of the economy while spreads are wider. the market is still functioning quite well. there's been a hand full of financing been done here early in the year. more deal financing to come in the coming weeks and it will be interesting to watch those deals but my expectation will be that a number of the transactions will get completed. probably at a slightly wider price than people anticipated before the holidays. >> i have a question for you about the tech sector in particular. we look at the m&a activity we

have seen. do you think that changes this year? rates potentially higher? credit wider in terms of spreads? do we see a change? >> one of the things that's been very very interesting for the growing companies that have been coming out of silicon valley is enormous amount of private capital available. if you're a young company and you want to develop and grow taking that private capital and doing it out of the public visibility is terrific. it's allowed them to put off access much longer. there's no question that private capital is tightening. you can debate some of the valuations that have been available. >> a number of them are priced for strong execution and whether or not that happens we'll see but capital is getting tighter

and that will force companies to turn to the public market sooner. you'll probably see an increase in ipo. might force some companies to sell and a number to manage their businesses in term of the burn rate much tight for the capital is not as available as it has been. >> great to chat with you. >> they're bracing for an enormous winter weather storm which is described as potentially crippling. let's get to jay grey that joins us live from virginia. give us an update. what can we expect today with the path of this storm? >> good morning. a lot of snow, brutally high winds and what the national weather service said will be blizzard and white out conditions. we looked at the radar. we're about an hour or so away from the snow starting.

once it does it won't be finished until sometime saturday night so it's going to snow continuously here for quite sometime. the national guard has been called in. at least 500 troops on the ground right now in this area. more expected as the storm builds. we're on the leading edge of the storm on the entire east coast. as many as 80 to 90 million people expected to feel the effects of this storm. we know that every state police officer that is available is ready to move in as this storm does the same here. we also know that there have been 500 vehicles working since late yesterday when a state of emergency was declared ahead of this storm trying to keep the roadways as prepared as possible but again across the region people urging anyone that doesn't have to drive to stay off these roadways. it's going to be very dangerous for quite sometime and it's going to be dangerous over a

huge stretch of the country so a lot of people effected here. the snow expected to start here in roanoke which is the leading edge of things within the next hour and hour and a half and not stop again until sometime saturday. shaping up to be a very rough, very difficult weekend and a lot of people preparing to be without power for a week or perhaps longer, nancy. >> stay for that jay. stay warm, stay safe. not time to be traveling unless you have to. thanks for joining us for if the update. we'll be back discussing europe's financial confidence in our special cnbc date today. that includes ecb executive board member and italian finance minister, ubs chairman and bbva chairman and ceo and eu commissioner. don't want to miss that one. that's for sure. julia. >> no, absolutely. we're looking forward to that.

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jumping yesterday on the back after a strong fourth quarter trading update. the touch super market beat estimates with a rise in sales. u.s. sales are up more than a quarter as they fail to complete it's merger. i can tell you i'm joined now by the ceo of ahold. thank you for joining us this morning. investors liking the numbers yesterday. >> yeah, good trading in the fourth quarter and good sales number in the u.s. and also in europe and the netherlands.

so very pleased with the trading. and business is going well. good christmas sales. and specifically also the combination of our foods online and stores, physical worlds is doing great things together for us now. >> so as far as you're concerned no were risk about the u.s. consumer? >> no, i think the u.s. consumer seems to be as they always were, spending less money where needed but certainly on food and certainly in the current economic environment. i think you see that there is some positive news also. >> why aren't they spending? we see this huge wind fall from oil prices falling. why do you think the u.s. consumer isn't using that money? why is it saving it? >> this certain sense in the world is cause k of course some concerns of everyone in the world. and of course to be careful with spending the money. >> we have seen with our sales number that we're picking it up.

>> i want to talk to you about the merger as well. that's going to make 2-thirds of your sales based in the u.s. east coast so it's a pretty significant shift and you have competition there. you have aldi, the german cup price is going to be a competitor there more broadly. you have amazon.com as well. how are you going to position yourselves and differentiate yourselves in that market. >> that's a good question. first of all we become even a larger player. we can combine our resources, our supply chain. much better way in the future for our customers to continue to be cost efficient but also give good price to our customers and good quality. also the markets we operate will continue to do that in a merger going forward. good quality. good stores. nice environment for shoppers and together with our online proposition and expanding that

on the east coast would help us to be even a better competitor in these markets. that's what customers would like to see from us. >> it's already the biggest online in the u.s. >> the number one and certainly at food at home but also in our stores and of course with the competition around us this is a unique selling point for us. >> let's bring you back to europe, what do you think about the european backdrop? we have tensions in terms of the politics. spain without a government at this moment. mario draghi at further stimulus. what's your sense of europe more broadly? >> the economy still remains under difficult circumstances i would say. on the other hand living in the netherlands and looking at what they have done over the last couple of years to reform themselves from a government point of view and all the difficult topics from labor to mortgages, et cetera. so we have seen at least in the

netherlands growth of economy again and of course lowering the rate of unemployment helps for us in the neglecterlands to get some benefits. from the total economy it is still a situation which is fragile i would say and with all the other circumstances around we need to read very well. >> biggest risk to the european out look? >> i think in general the european union refugee situation is one of the biggest risks we see and we all see that. we have to be open for societal issues that you see around the world and we have to be open for that. on the other hand, it caused problems. we need to manage that in europe in a much better way than we did today. >> >> thanks. it is friday. perhaps you're thinking of heading to the cinema to catch a

movie this weekend and the big short hits u.k. theaters today having made $71 million worldwide so far. the film adaptation of the best selling novel tells the story of a group of traders that made a fortune predicting the sub prime mortgage crisis. i caught up and asked the comedy veteran what lessons he thought davos could learn from the drama of 2008. >> i would say the big thing is that corruption never works. that this idea that they can run the candy store may feel good quarter by quarter but in the long run they're going to collapse again and smart regulation is essential to healthy banking. i think it's hard for these people to do that willingly in the moment but it's key because it never works. you have to have basic rules for a market to work. >> just to pick up on the point there is that the ceo was making about the future for europe and

the tension points, the possible issues he just mentioned there that the refugee crisis could be a key risk for the european outlook. listen to what they have been telling us. >> my view is that these measures are critical for the coming month and we have accelerating these reforms. >> come through the worst but of course we have to be quite careful. we cannot abandon the policies of discipline and and of reforms. therefore we are warning the people that yeah, we have done a lot. we are getting out of the program. but we have to stick on polic s policies. >> a right wing candidate was quite moderate and quite sure about that.

so that's from all the candidates so i don't think that the presidential election is going to bring any surprise or any problem to the government . >> we're going to be discussing the big issues facing europe in our special cnbc debate coming up later this morning. just to give you a sense of who jeff will be speaking to, the ecb exec board member, ubs chairman, axle weber, francisco gonzalez, and the eu commissioner jonathan hill. that is coming up at 1:00 p.m. cet so don't be missing that. fascinating conversations. we have already spoken, francisco gonzalez, i spoke to him already about the future of banking so i think there's going to be great watching here nancy. >> thanks for that. thank you for bring us the guests this morning. incredible to think still so

much caution. warning that more volatility could be ahead but markets are pointing to a higher open even for the u.s. today as well. the s&p 500 called higher by 22 points. the dow jones almost higher by about 200 points and the nasdaq called higher by 67 but again investors want to see if this relief rally will hold going into the weekend. that's it for today's show. >> worldwide exchange is coming up. stay with cnbc.

>> good morning, global markets rally. stocks jumping as traders close the books on another volatile week. >> plus starbucks shares under pressure after the coffee chain profit forecast disappoints. >> more than 77 million covered by winter weather warnings. almost a quarter of the country's population. it's friday, that's right, friday january 22nd, 2016. worldwide exchange starts right now. good morning and welcome to worldwide exchange. happy friday.