hi, everybody. welcome. it's friday. you're watching "street signs." i'm louisa bojesen. >> and i'm nancy hulgrave. these are your headlines. >> it's jobs friday. miners outperforming in a mixed session here in europe after u.s. averages post their third straight day of gains ahead of this nonfarm payrolls report. >> don't believe the hype. well, shares in wpp are now paring gains after the ceo tempers expectations for the year ahead. this despite a strong end to 2015. >> a compelling opportunity. the london stock exchange is

touting its tie-up with deutsche boerse. >> and the republican debate turns dirty, or dirtier, if you can believe it. donald trump slings mud at rivals ted cruz and marco rubio. >> i have a policy question for you, sir. >> let's see if he answers it. >> i will. don't worry about it, marco. don't worry about it, little marco. >> all right. let's hear, big donald. >> don't worry about it, little marco. >> gentlemen. you know when you look around and you find out that you're actually an adult yourself and then you think, but that can't be because i feel like a child. then you look around for an adultier adult, for somebody more grown-up, then you look at what's happening in the states and think it just doesn't exist. we're just going to be kids forever. yeah. the italian gdp data just confirmed on our wires. final reading for 2015.

fourth quarter gdp confirmed at plus 0.1% quarter on quarter, plus 1% year on year. so confirming the preliminary estimates that they gave us earlier. they say consumer demand and investments rose. net exports were positive as well, according to this data. inventories dragging a little. that data wrapping up the week. the euro-dollar around 1.09 at the moment. of course, nonfarm payroll data is what we're looking ahead to later in the session. meantime, we have our european markets trading already. >> that's right, louisa. we are losing a bit of momentum we saw to the upside in the very early minutes of trade. here we are just about flat at this stage. the stoxx europe 600 up now just 0.3% here. keep in mind it's been a strong week for european stocks. going into trade today, we were

up about 2.4%. let's see how it's playing out. the ftse 100 up by just 0.4%. a lot of individual earnings movers in focus. basic resources really outperforming. xetra dax really flat along with the main french market here. the ftse mib off 1%. now let's take a look at oil because again, investors keeping their eye on the trajectory of oil prices and keep in mind that oil has had a stellar week. we are back in positive territory, just barely after wti did break that three-day win streak yesterday. overall, this is the key number to look at. wti is up nearly 6% for the whole week, and this would be its first three-week consecutive gain since the end of march. official u.s. data did show that production fell to its lowest level since november 2014. that is good news for those looking at wether or not the supply forces will kick in here. as you can see, wti crude just

barely positive, but overall up about 34.64 at this level. let's get back to jobs friday. here it is. we're trying to nail the number because the u.s. nonfarm payrolls data is due at 14:30 cte. the dow jones estimate indicates that 200,000 jobs were created last month. that compares to a previous increase of about 151,000. the employment rate is expected to remain at the same level at 4.9%. we have been looking at adp payrolls on the private side wednesday. that surprise to the upside. weekly jobless claims holding strong yesterday as well. louisa? >> so wpp shares have been paring gains after the ceo struck a cautious tone on 2016. the world's largest advertiser posted a 7.7% rise in full-year net profits with sales outpacing forecasts. but in terms of payout, it hiked

the dividend as well by 17% to more than 44 pence per share. goldman sachs raised its price target on the stock earlier this morning. speaking to cnbc, the ceo explained how the u.s. presidential election is affecting his business. >> what it does do is tighten up media rates and make clients very much more focused and indeed our agencies on the rates they achieve, the spending, the targeting. interestingly, one of the things that has come out of the election is we're going a lot of programmatic buying. in other words, highly technical, data-driven media buying, highly targeted, using demographic data in sophisticated ways. we've applied the consumer analysis to political analysis. so one of the things we are seeing is a r significant increase demands across all the nominees or people trying to get nominations to look at

programmatic, to look at targeted in a much more sophisticated way. >> the london stock exchange says a potential deutsche boerse merger is a compelling opportunity that would enhance growth. of course, the strong performance from the lse comes as we know that the merger talks are ongoing. they're also potentially looking at an lse deal as well. of course, they're interested in their clearing house business. that performing very well in the earnings. >> we had this huge consolidation a while back with all the boerses. >> like a dating game. >> exactly. now supposedly they're doing this street sweep, which essentially means they try to find autobanks that they possibly can to be advisers. they don't want too many, but they don't want too few. that makes it harder for these potential u.s. rivals to get

involved. cme and ise especially. >> a lot of political implications. the lse saying we prefer this merger of all equals, the pan european union going on here. but we don't know whether or not ise will make this bid. >> precisely. we were talking a couple days ago about whether or not it might also be beneficial for the lse to do something like this before a potential brexit. >> they came out, both sides saying brexit considerations not at play. others are more skeptical. lse shares falling this morning. meanwhile, we want to bring you breaking news coming on facebook. an announcement on reuters' facebook says they'll restructure the ways they pay taxes in britain. it could pay millions of pounds here more in tax. this of course comes after a lot of controversy we've seen over google. we've seen strong comments

across europe on the amount that google, some of these foreign tech companies working here in britain should pay. interesting to note facebook is looking to restructure the way it pays taxes here in the u.k. >> people get up in arms about this here in europe or in the u.k. in particular with regards to whether these companies are being let off easy. listen, get involved here at the top of the show. always nice to have you with us. streetsignseurope@cnbc.com. you're a bit slow sometimes. it takes them a while to get typing. then the show is over. so get them through now. that's the twitter page you're looking at. @cnbcstreetsigns. you can also find each one of us. @nancycnbc. a little dance there. and @louisa bojesen. get all your comments through nice and early. continuing on, gemalto shares

higher after posting better than expected operating income and upbeat margins for 2016. >> and ecb asked banca carige asking for new business plans after losing 102 million euros. >> shares in the luxury fashion brand moncler are trading higher after the group reported an almost 30% rise in 2015 profits. sales growth, though, tailing off in the fourth quarter because of warmer weather stateside. claudia is in milan. it's crucial with the weather if you make very thick winter coats, claudia. >> yes, it is. it is quite kruscrucial. although we have had this warm winter, moncler said sales were sustained in any case, and the strength they had helped them reach their numbers. almost a 30% rise in their top

line growth. also, their margins group. their ebitda group from 232 million. net profit up also almost 30% at 167.9 million. they will be distributing 14 cents per share in terms of dividend and in terms of payout, that's a 21% payout. what did they say for 2016? they do expect it to continue to get growth in the mid single digit range. they do also expect to continue opening new stores. they have 15 new stores planned to open in 2016. they will continue their diversification product range, which is of course also important as you were saying if you make coats, you need to also plan for summer. that's what moncler has been working on in the past couple years. z that process has been moving along positively as well. so really, it's just an all

positive day for the stock and for the company as they do come out with those numbers. even though there are concerns about the continued instability and the weak growth in terms of global growth, moncler seems to be positive once again. back to you. now, moleskine outline iing. the ceo joins us here in the studio. good morning. >> good morning. >> so things are still going well for moleskine in terms of your projections. i thought paper was dead. i thought nobody other than me carries a notebook around that they write in. >> well, clearly news about

paper's death were pretty overstated. we had just announced our 2015 results. 30% growth in sales, 25% growth in ebitda, and 42% growth in net profit. this comes after many, many years of continued growth. we're very positive ant the future as well. >> where are the growth markets for you? i'm assuming there are some markets that are more saturated than others. >> that's a very interesting thing. even when you look at europe and even italy where this all started about 20 years ago, we're still showing double-digit growth. so there's significant room for us to grow, even if those markets you may consider mature. >> just looking at the stock price, it's still significantly below where you priced at the ipo. however, some analysts agree

with you, there are growth opportunities. the balance sheet looks good. you're trying to expand into other areas. so why are investors not buying this case? >> it's an excellent question. i ask myself this question very often. i think it's taken some time, but i believe we're getting there. for investors to really come around and fully understand the potential of moleskine, it goes way beyond paper. indeed, the real value in our proposition to our consumer goes way beyond the blank pages of our notebooks but involves a brand with a lot of intangible values that make it really a lifestyle brand more than a notebook brand. >> you talk about a lifestyle brand. i've noticed with some of your offerings you have a lot of collaborations. you're also moving into the digital side with with an app. some collaborations with uber. how crucial is this when it

comes to moleskine when it comes to targeting the millennial customer? >> it's absolutely critical. i believe for any company, and moleskine is no exception, regardless of their annual business, to be in the digital space and to learn how to deal with it and how to get value for your customers. it may not be particularly significant in terms of business at the beginning, but that's the way the world is going. >> so do you see your strategy -- like if you look five years out or ten years out, are you changing as a company to become more digital than not? >> we're constantly changing as a company. that's a fact of life. i believe what i meant by saying it's crucial to be present in the digital space, it's becoming clearer and clearer that what people want are integrated experiences that blend the

physical and digital. so if you're in the digital space and it's indicative amazon has announced plans to open physical stores, so if you're in the digital space, it's important you get your arms around how to be present in the physical space. and if you're in the physical space, it's as critical that you learn how to integrate digital in your offer to consumers. >> do people buy more of the really small books or the medium size? just curious. >> well, we have a solid business on small, medium, and big. >> there's not one that outsells the other? no, okay. thank you for coming in to talk with us. >> well, we have been following the antics on the campaign trail in the united states all week. coming up, we'll be taking a closer look at marco rubio and ted cruz took aim at donald trump in last night's gop

debate. first, here's a look at some of the more eventful lines. >> listen, ohio, get ready. in the next two weeks, his desperate opponents will say and do anything to try to dare him down, but you know the truth. the strong leader in this race is donald j. trump. >> marco rubio, he had a tough night, but he worked hard. i call him little marco. i want to congratulate ted on the winning of texas. he worked hard on it. lying ted. we will build a wall. i'm a unifier. i know people are going to find that hard to believe, but believe me, i'm a unifier. we're winning with a little less than highly educated, which is okay. i love you. she wants to make america whole again. i'm trying to figure out, what is that all about? we're going to redo those trade deals, and it's going to be a thing of beauty. i've always heard people say, donald, you have the most

beautiful hands. what? i'm going to be very good for the world. i'm going to get along with the world. you're going to be very proud of me. even you will be very proud of me as a president. donald, you don't really mean mexico is going to pay for the wall. i said, you don't understand. 100%. i want money. i want money. greedy, i was greedy, greedy, i want more money. we're going to make america great again, folks. now i like the pope again, okay?

hi, everyone. welcome back to "street signs." you're looking at some live pictures coming through from paris, where the german chancellor angela merkel is due to arrive for a meeting with the french president francois hollande. the migrant crisis is expected to feature prominently on the agenda ahead of this weekend's eu summit.

>> and meantime, eu council president says the union is closing to reaching a breakthrough deal with turkey over migration. the agreement would see all non-syrian migrants reaching greece returned to turkey. now, it signals the bloc taking a stronger stance on the flow of people moving into europe. speaking in london, the german finance minister said much more money needs to be spent on the issue. but he did warn greece against using the crisis as an excuse not to meet its bailout obligations. >> take a look at some of the data incidentally and some of the writings that human rights watch has put out as to whether or not this is an unfair request by europe given the amounts of people arriving in europe that really need a new home. also, it's not just syria. what happens if you're from iraq? what happens if you're from afghanistan? the top three places where refugees flee from. anyway, take a look at human rights watch. a number of chinese industrial

stocks have been rising on speculation that the country's policy mamakers will announce further infrastructure projects during a meeting of top-level officials taking place in beijing. eunice yun has the story. >> everybody is watching to hear what the leadership's priorities are at this year's meeting. this is a time when thousands of delegates come from across the country and gather in beijing to listen to what's known as china's version of the state of the union address. this is when the chinese premier presents his work report, which takes a look and gives some guidance for the rest of the year. some of the highlights are going to be the gdp growth target. that's expected to come in a range of 6.5% to 7%. inflation is also supposedly going to be coming in at somewhere around 3%. now, what people are also watching is the economic development plan for the next five years. the government is expected to say that they're going to hope to double real gdp growth in

that period. another mantra we're hearing a lot is the need for supply side structural reform. this is supposed to be a cornerstone. president xi jinping's new initiative to try to revive the economy. if it does happen, many economists will be happy because it would be directly attacking some of the overcapacity issues that this economy has. however, there's still many people who are skeptical because of the vested interests that the leadership faces and also the potential impact it could have on jobs. well, what kwaexactly will e it on the national people's agenda? speaking of china, let's check in on our asian markets. sri is with us out of singapore. we were quite enjoying the soul singing from joss stone earlier. >> she was an absolute star. really enjoyed that interview.

made us feel like jay leno or conan o'brien. anyway, enough of show business. let's get to our bread and butter, the markets. we are seeing confidence. i think the big question is how long does this risk-on move last. this is the best week in almost five months in the asian markets. yes, we've got a lot of uncertainty. there's the payrolls in the near term tonight. we need to get through that. but it's really been externally driven. the data coming from the u.s. is better. the markets over here like that. commodity markets seemed to have calmed down. the underlying stress is in the asian markets and emerging markets. they have not gone away. there's still a big, big debt load on the corporate side. that habit been worked out yet. i think the concern is we could see disorderly default. that's a concern, especially in the chinese context where it is something of a black box.

i think there are risks on the macro front. we get the trade data next week. we get fx reserves as well. it will be interesting to see what part the currency has played, whether the depreciation remains and whether the leadership is going to be in the market and propping the currency up. remember, when we have that weaker currency, you have capital outflows and tighter liquidity conditions. risk-off week, best one in five months. big question is whether we see this being sustained. that's where we stand. back to you. >> markets, markets, markets. listen, we have a little bit of joss stone with you earlier, sri, if viewers missed it. take a look. we'll just roll a little bit of this. >> i'll sing you just a bit, the chorus. ♪ let me be, let me be let me just go off my focus ♪ ♪ i can't take this feeling no more ♪

>> i don't know if you saw that, but i'm jiving. >> we just wanted to hear her sing. that was a real moment. >> you shouldn't have put the split screen. keep it on joss, not my dancing. >> she was singing for you, only for you. >> i was feeling it. that's real soul. that's real music. none of this computer rubbish. >> what would the world be without art, without music? sri, have a lovely weekend. we know you'll be home listening over and over and over online to it. now, as the real life drama of the u.s. presidential election continues to play out, netflix, they released the latest season of the political drama "house of cards." all ten episodes of season four were unveiled at the same time at 3:00 a.m. eastern. so after today's show, feel free to start your binge watching. you watch this, right? >> too tempting for me. i'm a binge watcher. >> you've seen all of them?

>> haven't started season four yet. maybe this weekend. need a good excuse. >> if i start, do i have to start with season one? >> yes, season one is the best as well. but if you're not into "house of cards," we have the real thing happening. the republican debate in detroit. suggesting an ancient form of exercise to calm things down. >> donald, please, i know it's hard not to interrupt. breathe, breathe, breathe. >> lying ted. >> you can breathe. i know it's hard. i know it's hard, but just -- >> when they're done with the yoga, can i answer a question? >> you cannot. i really hope we don't see yoga on this stage. >> well, he's very flexible. you never know.

good morning and welcome back to "street signs." a very happy friday. i'm nancy hulgrave. >> hi, everybody. i'm louisa bojesen. your headlines this morning. >> well, it's jobs friday with miners outperforming and a mixed session in europe. this after u.s. averages posted their third straight day of gains. >> don't believe the hype. shares in wpp paring gains after the ceo tempers expectations for the year ahead despite a strong end to 2015. a compelling opportunity. the london stock exchange touts its tie-up with doech boerse. >> and the republican debate turns dirtier. donald trump slinging mud at rivals ted cruz and marco rubio amid a barrage of insults from all sides. >> i have a policy question for you, sir. >> let's see if he answers it. >> i will h don. don't worry about it, marco. don't worry about it, little marco. >> let's hear, big donald.

>> don't worry about it, little marco. >> gentlemen. good morning, everyone. welcome to "street signs." i think dirtier is the operative word there. >> think if we spoke to each other like that. >> we don't want to go there. sounds like schoolboy attacks. well, we'll go to the wall in just a minute, but not on those terms. first, a look at how u.s. marks are set to open for the last day of the week with investors really keeping an eye to the nonfarm payrolls report. this is the picture. some muted moves to the downside. the dow jones called lower by 25 points. the third straight day of gains yesterday in the u.s. as well. this is the picture in europe. we have seen moves of more than 2% when we look at the pan european stocks 600.

we've seen the ftse 100 up about 0.4%. the xetra dax basically plat. miners on the move up. keep an eye on energy prices as well. the french cac 40 about flat at this stage. the ftse mib the main underperformer. moving to the downside by about 1.2%. louisa? >> we were just talking about what took place in that last debate. republican rivals rounded on donald trump in last night's gop debate in detroit. the hot-tempered fox news show. the republican front runner defended himself from accusat n accusations he'd flip-flopped on a rake of key policies. >> i'm changing. i'm changing. >> you change your tune on so many things, and that has some people saying, what is his core? >> megyn, i have a very strong core. i have a very strong core. but i've never seen a successful

person who wasn't flexible, who didn't have a certain degree of flexibility. you have to have a certain degree of flexibility. >> well, despite the vitriol, gop rivals marco rubio and ted cruz reluctantly said they would support trump if he wins the nomination. rubio pressed the front runner on the nuclear issue, an area where trump has stumbled in the past. >> we are not going to turn over the conservative movement or the party of lincoln or reagan, for example, to someone whose positions are not conservative. someone who thinks the nuclear triad is a rock band from are the 1980s. >> before the debate began, former republican presidential nominee mitt romney labeled donald trump as a fraud and urged primary voters not to back him. the warning comes four years after trump endorsed romney in his white house bid. >> think of donald trump's personal qualities. the bullying, the greed, the showing off, the misogyny, the

absurd third grade theatrics. you know, we've long referred to him as the donald. he's the only person in the entire country to whom we have added an article before his name, and it wasn't because he had attributes we admired. imagine your children and your grandchildren acting the way he does. would you welcome that? >> nbc's tracie potts is in washington, d.c. are we portraying things unfairly, tracie? i mean, how is the roundup, how is the debate scene from washington? >> reporter: well, it doesn't seem to be unfair to me at all because if you take a look at the beginning of the day from those scathing comments by mitt romney all the way to this debate at the end of the day, it put donald trump on defense all day long. not necessarily a place where he is uncomfortable at all. he was hit on issues. he was hit on insults. and he fought back.

yes, there was a lot of bickering going on in this debate, but as you pointed out, there were also some key policy issues that were addressed here. at one point, the moderators went back and forth with quite specific numbers with trump on health care. he just unveiled his seven-point health care plan. he said he wants to get rid of obamacare and get rid of waste and fraud to make up for the cost. the moderators pointed out he's saying we can save $300 billion on drugs, but the u.s. only spends less than a third of that on purchases of prescription drugs. as the moderator put it, the numbers don't add up. he was pressed on that, on some of the flip-flops he's made in his position on guest worker visas and syrian refugees. you heard some of his response there. this was clearly a debate where ted cruz and marco rubio tried to gang up on donald trump. i don't think that's an unfair way of describing it because they are behind and he's the front runner and they have been

quite vocal about the fact that they want to take him down. and then there was the fourth person on the stage, john kasich, the ohio governor, the cerebral one, who tried not to jump in the fray, literally, as one of the moderators tried to pull him into attacking donald trump. he just said he's not going there. he talked about a lot of policy, but the question now will become how that resonates with the voters. >> and tracie, we had the attacks on the stage, which you could say really aren't anything new from what we've seen. what was new was the statement from mitt romney a bit earlier in the day. a lot of suggestions that what mitt romney was really hinting at was a strategy to get to a brokered convention. how likely is this at this stage as we get closer to these other primaries, two of which are coming from candidates' home states? one of where mitt romney enjoys a lot of popularity, that being michigan. >> reporter: if you look at the numbers, if donald trump can't

get to that magic 1237, which is the number that he needs to win the nomination outright, then yes, we're going to have a split convention, a brokered convention, a contested convention as some call it. if marco rubio goes to florida and is successful, the numbers, the polls don't seem to suggest that right now, but if he wins florida and john kasich wins ohio, it's going to be tough for donald trump to get the numbers he needs, and we're looking at a split convention, which is going to involve something that donald trump seems to like a lot. a lot of dealing going on, on the convention floor about who's going to support whom to get a nominee out of the party. >> all right. well, a lot of uncertainty no matter which way you look at it. tracie, thank you for joining us. that's tracie potts of nbc news. meanwhile, a wave of central banks have taken the unconventional step of cutting interest rates below zero in a bid to boost economic activity. some say it threatens the

financial system by eroding banks' returns. now, ahead of the crucial ecb meeting next week, keep market participants have been sharing their views on negative rates. take a listen. >> if you try to run a global system with the systemically important banks all in negative territory, i can guarantee you that something will break. the system is not built to operate at negative rates throughout the world. already we have 30% of government debt trading at negative rates. at some point, this will be become a major issue. i think the u.s. realizes this. >> on the one hand, you are trying to do everything to make life easier for borrowing. on the other hand, whether through regulation or this negative interest rate environment, you're making life more difficult for banks and you're undermining financial stability. >> we have to dedramatize a little bit the impact of negative interest rates. what we're seeing is it impacts the margins of banks in a

limited fashion. the experience of japan, the experience of switzerland is that usually retail clients are the not affected by this negative interest rate environment. >> now, despite these concerns, a fresh report says negative rates could be the key to tackling inflation's global down trend. well, the author of this report, christian keller, joins us now around the desk. clust ch christian, thank you for joining us. a lot of debate over the impact of negative interest rates. so far, you could say, they haven't really worked. some expectations the ecb could go further. what should investors be expecting when it comes to the real impact of this policy? >> first of all, central banks don't do this for the fun of it. they're dealing with inflation trends that are below target. we're looking into inflation probably even next year just being 1%.

central banks are having played the qe trade, so to say, and that's running into its limits. now negative rates seem to be a natural extension of that. it obviously has negative implications for banks. i think markets have obviously reacted after the central bank of japan did it. the issue here is now there are clearly limits. i think maybe the ecb can go to minus 50 basis points. i think it all depends now how they create a tiering system that somehow doesn't hurt banks to the full extent of their reserves. i think the bank of japan has already started this. maybe markets have not really fully paid attention in the beginning. we expect that the ecb will actually either announce or at least hint toward something similar when they go out next week. >> and will that be enough to reassure investors? we've seen the ecb disappoint investors before going back to the last decision here. but what does this package actually look like? what does mario draghi have to say to convince investors this

tiered system is enough? >> it's a very good question. there's a lot of people thinking about this now in frankfurt. obviously december in a way was a disaster from the ecb perspecti perspective. we think they'll definitely have to deliver a cut in the deeper rate next month. markets are now pricing actually 30 basis points already. they have to do at least ten. keep the door open for more. and they have to basically announce they work on a tiered system that will basically have a first year where you're fully except, a third tier where you feel the full pressure of the negative rate, but then you have a second tier where you actually leave some leeway to banks that lend more and you basically give an incentive for banks to avoid the punishment of the negative rate by basically being more active and pushing credit into the economy. it will be very difficult for him. he at least has to deliver the cut and basically show he can do more. but it has been a game of expectations now that is very difficult for the ecb. >> this is becoming so

complicated in terms of all the measures that are being put in place initially. we're maybe testing those measures then find out they kind of don't work as we initially thought they work. then another measure to help that measure work. it's becoming very complicated. you start to think, how are we ever going to get out of it? and does it mean that we're admitting the monetary policies that have been put in place, they simply haven't worked? >> i think what we're admitting to is we're fighting a trend of low and persistent inflation. it's almost a little opposite of what you saw in the '80s. in the '80s, very high inflation. walker had to lean against it heavily with high rates. now central banks are dealing with the opposite. but you have to do the opposite in bringing rates very low for a long time. >> we've already shown we cannot fight falling deflation with quantitative easing. inflation is still very low now. shouldn't it be higher given all the stimulus that's been pumped in already? >> it has a lot to do with

productivity growth. factors -- and that is very right. with factors at central banks themselves cannot influence. that's why if you go to the g-20 meetings, they always emphasize fiscal policy. i think monetary policy is clearly very close to its end. if we go into another downturn, it's fiscal. monetary policy cannot carry the burden. i think that's very clear. >> christian, i was just going to ask you exactly that point. mario draghi has said over and over again, we need fiscal reform. we need more help from the governments. how can he incentivize them to act if they keep putting forth additional monetary measures? >> i think we've seen it in the past. you saw it in the past, at some point when essentially, you know, there was a threat not to the buy italian government bonds

anymore if italy was moving ahead. the fact is that if you look at the economic situation, not at inflation, but at growth, europe is not looking the best. the growth picture maybe not as bad as markets feared a few weeks ago. that makes governments reluctant to do their part. so i think we have to live with this for a little further. it's probably something we deal with in '16. >> are we going to have an increase in stimulus or an increase in time frame if they do anything? >> i think it's an increase in stimulus. >> all right. so that's next week. thank you very much. head of economics research at barclays. now, just to make you aware, the german chancellor angela merkel has just arrived in france for a meeting with the french president francois hollande. the migrant crisis is expected

to feature prominently on the agenda ahead of the eu summit that's taking place this weekend. now, we have lots more coming up. among other things, apple. >> that's right, louisa. as the debate continues between apple and the fbi, apple is finding new friends in its hometown of silicon valley. we'll tell you about that coming up after this short break.

welcome back to "street signs." kim jong-un has ordered north korea's nuclear weapons to be ready for launch at any time. in a statement, he said he wants to be able to carry out pre-emptive strikes. all this follows new sanctions from the u.n. security council. and the u.n. special envoy for syria says the cease-fire is largely holding and has, quote, greatly reduced violence.

that's one week after it went into effect. european leaders are set to meet today to discuss the syrian cease-fire and the country's humanitarian situation. u.s. secretary of defense ash carter says the pentagon will be inviting vetted hackers to test department defense security. they will attempt to breach the dod's public internet pages in order to find vulnerabilities. the program called hack the pentagon will begin next month. and brazil's once richest man has reportedly thrown 700 gold coins and several champagne bottles worth roughly $185,000 into, guess where, the ocean. this aiming to appease the goddess of the sea on the advice of two fortune tellers. he famously lost $34 billion as the result of the collapse of his oil and gas company. >> $185,000 into the ocean? >> i just imagine the scuba divers going out there.

>> there's something wrong with us. the tech heavy weights of silicon valley have come together to back apple in its encryption battle against the fbi. alphabet's google, facebook, microsoft, and at&t have all filed legal briefs now asking a judge to rule in support of tim cook. this after the u.s. government requested apple write new software to give the authorities access to the san bernardino killer's iphone. keeping an eye on tech earnings here. shares of hewlett-packard jumped 6% after hours, this after the first quarter results came in slightly above expectations. in its first earnings report since hp split into two companies, announced it would return 100% of its free cash flow to shareholders through dividends and buybacks this year. well, that news moving shares higher just by 5.9% after hours. and remember ceo meg whitman will join uh our u.s. colleagues later today.

smith & wesson shares soared after hours after reporting a better than expected 61% jump in quarterly revenue. and the world's largest luggage maker samsonite has made the case to shareholders for a $1.8 billion takeover of tumi. the deal will expand the company's presence in the premium baggage sector and is expected to close in the second half of 2016. and mickey mouse will add two more ships to his cruiseline, bringing the total to six. i didn't even know mickey mouse had a cruise line. >> big business. >> well, julia boorstin sends this report. >> disney shares gaining a few percentage points on an upgrade from piper jaffray. at disney's big annual meeting, the company announced building two new disney cruise ships,

which will be ready in 2021 and 2023. the company also revealing more details of its "star wars" lands in the works in florida and anaheim. they say visitors will feel like they're flying the millennium falcon. much at question and answer session at the meeting was dominated by talk about the health of espn and the tv bundle, issues which have been weighing on disney's stock. iger reassuring investors that espn is a healthy business and will continue to be. while they do work ahead on some new digital options. >> even though cable packages are still the most popular way to watch television, our media businesses continue to innovate, embracing digital technologies and platforms like netflix and hulu, and even creating our own like our disney life service that recently launched in the u.k. >> as for the shareholder votes, they all went very much as expected. disneys' board and executive compensation were all approved, while a few shareholder proposals were not approved.

back over to you. well, u.s. futures indicating how u.s. markets are going to be opening today. we're looking at a flattish start to the session. flat to a little lower, possibly because loads of people are going to be looking towards the nonfarm payroll data before putting any big positions in their various asset classes. the payrolls, they data is due at 14:30 cte. the dow jones estimates 200,000 jobs were added in february. that compares to the 151,000 jobs in january. the employment rate is expected to remain at the same level of 4.9%. a chief economist at stifle economic income joins us live from honolulu this time. thank you for being with us. so we don't want it too hot. we don't want it too cold. what are you expecting? what happens if we miss the estimate of around 200,000? >> well, we're looking actually for a little more moderate pace, so right around 180,000.

still an improvement from that 150 pace we saw at the start of the year. yet, still strong enough to support the fed's thesis that the labor market is continuing to improve towards a state of full employment. so as long as we see a relatively strong number up above 180, i think the market will see that as a relatively strong report. >> and the fed's expectations for a hike, we've seen them coming back into play now with all this u.s. data that has been pretty supportive. how many times do you think the fed realistically will be able to hike this year if indeed we continue to see a slowdown elsewhere and especially also if europe has to continue on with more stimulus as we're expecting for the 10th of march. >> well, as of right now, the market is pricing in just one rate hike over the next 12 months. the fed early on told us it was more in the ballpark of four, maybe five rate hikes. i think it's right down the

middle. i think we're going to see an additional two, maybe three increases. remember, from the fed's point of view, they're watching the labor market, which has continued to improve. really, the missing piece has been inflation all along. but as of late, the cpi, the ppi, the pce, whatever is your preferred measure of inflation, has begun to rise, supporting again the fed's longer term outlook that prices will continue to move towards that longer term 2% objective over the next one to two years. so the fed is very anxious to get ahead of that rise of inflation. i think we will see the fed continue to raise. >> in the report we're getting today, you could say it's the wage increase, the wage inflation people are really looking at. we're expecting a slight uptick there. i believe you were among the voices that said the fed did act too early. but looking at the latest data, stronger than many expected. are you standing by that point, or do you think the fed is exactly where it needs to be now?

>> it's interesting because there's a growing divide between what i think the fed should do, which is arguably never have initiated liftoff in december, as we still see a very moderate economy, and what we expect the fed will do. as you mentioned, the fed is watching average hourly earnings, which we've seen back-to-back months of above-trend growth. is it robust wage growth? certainly not. for the fed, this is an early sign or an early indication that wages may be on the rise in the longer term. so the fed is acting a bit pre-emptive for my taste, but that's what they've told the market, that's their intended plan, for a very gradual pace longer term. >> lindsey, thank you very much. enjoy honolulu. i've been, many years ago. go surfing. >> thank you. >> chief economist at stiffel income. as said, head online because you can find a lot more about what's to come. not too hot, not too cold. that's what wall street want when is it comes to the jobs report. as always, cnbc.com.

that's where you can finds loads more analysis. >> and we know it's jobs friday, but it's also a friday that many will be waking up to looking at the debate last night. before we go, here's just one last look at some of the insults from last night's gop debate on the fox news channel. >> this campaign for the last year donald trump has basically mocked everybody with personal attacks. >> i have a policy question for you, sir. >> let's see if he answers it. >> i will. don't worry about it, marco. don't worry about it, little marco. i will. >> let's hear, big donald. >> don't worry about it, little marco. >> gentlemen. >> the audience cannot understand when you're talking over each other. >> i don't think the people of america are interested in a bunch of bickering school children. they're interested in solutions, not slogans. it's easy to say, make things better, make things great. you can even print it and put it on a baseball cap. >> i have never tried to go and get into these kind of scrums that we're seeing here on the stage. people say everywhere i go, you seem to be the adult on the

stage. >> he doesn't go to vote. he's absent. the people of florida can't stand him. >> we're happy to take your opinions on the u.s. race so far. you can find us streetsignseurope@cnbc.com. you can also find us on twitter. >> i'm @nancycnbc. >> or @louisa bojesen. for now, that's it for today's show. our european equities are trading slightly mixed at the moment. we're probably also waiting for that nonfarm payroll report. >> strong week overall. >> and of course the ecb meeting next week. we are anticipating more stimulus or more measures to be announced from the ecb. >> get a check on those moves. the dollar trade in focus ahead of the nonfarms payroll. the central bank divergence we keep talking about as well. >> they disappointed in december, the ecb. they didn't give us as much stimulus as what everybody had priced in. seems this time around we're not going as short on the euro as what we did ahead of last

december's meeting, where we saw a huge drop after that quote/unquote disappointment. >> marxs got ahead of themselves. we didn't disappoint. they simply expected too much. anyway. >> that is it for today and this week. we'll be back monday morning with another "street signs" here on cnbc. for now, i'm louisa bojesen. >> and i'm nancy hulgrave. "worldwide exchange" is up next. >> have a fantastic weekend.

good morning. working for a living. the global markets counting down to the big u.s. jobs report. a picture is worth a thousand words or $16 billion. snapchat raises maore money but keeps the same valuation it had a year ago. and a republican slug fest until the end. highlights of last night's gop presidential debate, including donald trump's rivals vowing their support. it's friday, march 4th, 2016. "worldwide exchange" begins right now.