welcome. you're watching "street signs." i'm louisa bojesen. >> i'm carolin roth. >> european banks leading the markets higher as citi upgrades to overweight. >> easyjet is sent to the bottom of the stoxx 600 after they foreca forecast a drop in employment. and chinese chipmaker

osram wants to buy the semiconductormaker. hi, everybody. good morning. >> good morning. >> how are you? >> very good. >> feels like a tuesday. >> it's thursday, and i can't wait for it to be friday tomorrow. >> i've been off all week. either too far ahead too far behind. european equity markets are where they should be. very flat at the moment. waiting for bigger data points, non-farm payroll data tomorrow to position a bit, if it's very, very strong then rates might head higher. if it's super weak, i don't know what the fed will be thinking. in europe, slightly mixed markets. pretty flat. the sector, just show you to the upside, we have insurers, industrials and banks up the most.

you were talking about citi note on "squak" earlier. >> overweight from neutral. they pointedut combination of the banking sector and european was one of the worst performing combinations over the past few years, but now more positive news. >> i can't recall a single guest, i'm just trying to think over the last couple of months, four months who said buy european banks. >> even the co of credit suisse said the sector in europe is uninvestable. >> citi doesn't think so. let's talk about shares in easyjet, they are tumbling after the company said they are on course to post a 25% fall in profits in what would be its first full year earnings drop since 2009. look at shares, off by 6. %. the low cast airline said it expects 2016 profits to come in

around 419 million pounds. easyjet blaming the fall on the brexit vote and the fall in sterling. also a couple other factors hitting the airline. terrorism, of course. and this is a company that has high exposure to the security hit destinations like egypt, turkey, paris and niece, and then low fuel prices spurred on a lot of overcapacity from the entire sector. as a result of that, some airlines are cutting prices. ryanair's average fair is re is euros. >> the passenger numbers are going up, but they have had to cut prices substantially. the currency hit, 90 million pounds in the currency hit alone. in july it was 40 million. that's more than double. again, jet fuel. priced in dollars, they are

being hurt so much by that weaker pound. it's not even funny. >> over the last three, four days we've been talking about the beneficial effect of the weakness of the pound sterling on many firms acting internationally. there are still those suffering very, very badly. >> yeah. definitely. listen, we have a fantastic show for you. the magic that happens behind the scenes, we will talk about all this stuff, get involved, get your e-mail questions in. a lot of us still like old-fashioned e-mail. you can find us on twitter, @carolincnbc and good morning and welcome. >> good morning. >> i want to start off with the

bigger picture. we spoke a lot in the past. you always tend to be quite pessimistic. >> i'm realistic, how about that. >> you map out two scenarios in terms of what could happen with regards to the economy. are you still more on the bearish side or are things looking brighter? >> we are now in a world where investors are buying equities for yields and bonds for capital appreciation. saying those words means asset prices in general are topsy-turvy in how we are pricing things. the two narrative, yes, this is a wall of worry. everyone is bearish. we will continue to see this improvement, slow economic improvement and asset prices going higher. the problem i have with that story, you have a cyclical slowdown that's starting to happen, leading inedy it caters are pointing towards that. you have a starting point in

terms of valuations that are so demanding that they can't really deal with any disappointment. because of that i get on the side with the second narrative, this is late cycle and risk premium is too low. what are the particular indicators that you think are the most important that are telling you this slowdown is happening? >> i think it's a myriad of things. you can't point to one or two. the way we tend to deal with this, we run big data for all intents and purposes on how to run macro economics. we filter all economic variables in the world and came up with 81 components around the world that tend to be the most leading. we look at an equal weighted version of those. those have been for a while saying this is a slowdown. they're not saying this is a recession, clear cataclysmic

outlook. that's not what we're saying. we're saying this is a risky business and in that environment what you want to own are assets that provide some degree of sustainable risk premium. >> very strange we're in this environment. where we know the fed hike is coming. we don't know exactly when. we don't know by how many basis points they'll be raising rates over the course of next year. until then it seems like there's still a sense of complacent is he in the markets and a hunt for yield, and this yearning for carry. how long can that continue? is it really just until the next fed hike? will it continue after that? >> i'm not sure we know they will hike in the first place. economists are expecting a fed rate hike mid part of next year. having said that, given the cyclical picture we're seeing, you could make the argument if we're not seeing one now, by december, might not be one at all. i'm not sure that we agree with the fact that we know this will

happen. i would suggest this is an extremely shallow, and by the time we get to peak fed funds rate, it's probably going to be well below what people are envisioning that it would be. the fed hurdled to a lot of these traits, but also also fundamental reasons. if you look at the drop in food prices that should have a dramatic impact in those countries which has a large food part of their cpi baskets, like india, also indonesia and brazil that -- those inflation numbers that drop and will make nominal yields in those countries look more attractive. >> let's get some actionable advice from you. what do you want your clients right now? what should they stay clear of? >> basically, the way we structured our asset allocation,

it's where we take risk is pretty much in treasury an emerging market debt, both in local and hard. in local currency we look at india, indonesia, brazil and mexi mexico. the long end of those curves, taking their currencies as well. where we don't want to take risk and taking off risk is that we started to take off high yield positions, move that into russian equities, in terms of getting oil exposure. we have a very, very small allocation into equities in general. this is an environment where we would expect earnings growth for 2017 to be closer to zero than what is currently consensus view. depressingly enough, we're long cash. i think -- >> 14% is the number. >> yeah. it's -- we've even been forced to raise strategic cash, as it were. we have one investment process

for a three-year view. for the first time since 2010, where we have been an enormous bond bull, hsbc, we have been forced to find real safe haven today is cash. a strategic cash allocation of 17% which is the most depressing thing i've come on to say here. >> it does seem quite depressing. frederik, you will stick around for another chat. hopefully we can get him coffee or tea. >> do i seem that tired? >> you seem a little depressed about these numbers this morning. one of us around the table this morning has run a marathon across the antarctic. >> not me. >> not me. >> swedish record. >> swedish record? >> i'm the only swede who has done it. antarctica, yes. >> this was one? >> 2007. >> how long? >> seven hours.

>> seven hours? >> okay. you're staying with us. the british chancellor, philip hammond is to meet with wall street executives today. visiting new york on his way to washington, hammond is expected to tell banks including citi group, morgan stanley and goldman sachs that the uk will continue to welcome the best workers from around the world and that the citi y's position a leading financial hub won't change. a report by a leading scottish economic research group found that scotland's economy would suffer a severe shock in the event of a hard brexit. the think tank warns that up to 80,000 jobs could be lost with wages falling by 2,000 pounds per head per year. a hard brexit leaves the eu

single market completely would see the scottish economy decline by 5%. italy could leave the eurozone. that's according to joseph stiglich. the prize winning economist said the bloc lacks decisiveness to undertake needed reforms blaming the euro and german austerity problems for their problems. he redistrict she's simply got to catch them all. norway's prime minister was caught playing pokemon go during a parliamentary debate. she previously told reporters that she was keen to hatch some of her pokemon eggs. i hear there are a whole bunch by st. paul's cathedral. the leader of norway's liberal party who was addressing parliament at the time was

caught playing the same game during a national security meeting back in august. >> it seems like she was previously a fan of candy crush and moved on to pokemon go. >> have you played it? >> no. >> you haven't played? >> no. my kids, but not me. >> i wonder what we find in here? >> well, in the studio, maybe stuff in the studio. i have never played. i wonder what they find in parliament in norway. >> probably some intellectual and geo politically focused pokem pokemons. >> some of these sessions must be quite long. isn't pokemon the equivalent of doodling? you do it without thinking much about it. >> some argue that she is only doing her government duty. the government pension fund is invested in nintendo and they got a nice boost from the pokemon go craze. there you go. might be an investment angle. >> never know.

e-mail the show. we're on twitte twitter, @louisabojesen. >> or @carolincnbc. >> it's better that they tweet than play pokemon go. we don't want viewers to do that while watching. joining the club, stay tuned to find out what country risks derailing the opec production deal and why. that's after this short break. guess what guys, i switched to sprint. sprint? i'm hearing good things about the network. all the networks are great now. we're talking within a 1% difference in reliability of each other. and, sprint saves you 50% on most current national carrier rates. save money on your phone bill, invest it in your small business. wouldn't you love more customers? i would definitely love some new customers. sprint will help you add customers and cut your costs. switch your business to sprint and save 50% on most current verizon, at&t and t-mobile rates. don't let a 1% difference cost you twice as much. whoooo! for people with hearing loss, visit sprintrelay.com.

good morning. welcome back. you're still watching "street signs." this is caroline. i'm louisa. we need to get out to sri. >> good morning. let's look at the markets as we wind down our trading day. solid lead from the u.s. the markets like the data, they

like the ism services sector activity. quite upbeat. that fed into the dollar. dollar/yen up. yen down. toke wro ended the day up by about 80 points. the other dynamic that is positive, oil prices are marching higher. it made a firm floor around $50 a barrel, but it all rests on opec and november, whether they will deliver cuts and act on those cuts. that's critical part of the dynamic. broadly, constructive session, but gains being capped as we get closer towards the all-important payrolls number on friday. also the market pricing in terms of the odds of a fed rate hike in december is up to about 60%. you have to ask yourself will that be equities negative if it does transpire in this part of the world? we saw the taper tantrum back

there 2013. we are in much better position in terms of the fragile five, india and indonesia's fiscal balances have improved since then. back to you. >> thank you. shares in osram are jumping after it was revealed that china's sanan wants to buy the lighting company. sanan hopes to rece s ts to pre of about 70 euros. osram declined to comment to cnbc. dialogue semiconductor reports a 5% rise. the apple and samsung supplier was reviewing guidance after the chinese holiday gave the stock a boost. bae systems has reported

underline earnings in line with expectations. they said they were encouraged by talks with current and prospective clients over contracts for its typhoon aircraft. just want to bring you breaking news. according to reuters, france's amundi, a big wealth manager is offering 4 billion euros for unicredit's asset manager pioneer. now, i should caution we have seen so many reports swirling around interested parties, but no decision will be made until after the italian constitutional referendum. no decision yet for a couple more weeks. the stakes are high for deutsche bank as washington becomes the setting for the latest negotiations over the lender's doj settlement. the fund's capital market chief already is trying to calm concerns saying he was confident that authorities were monitoring the situation.

reuters reports that german government officials are quietly meeting u.s. regulators to broker a deal that will reduce the $14 billion settlement. the vice president of the european commission told cnbc he wasn't concerned about contagion to the rest of europe's banking system. >> it's much more in better shape before the crisis in terms of capitalization, liquidity ratios, and some pockets of weakness remain on which we need to still to work. >> despite deutsche bank's selloff, european banks have moved from a value trap to a value trade. that's according to citi, which has upgraded european banks to overweight. citi says the macro risk risks not systemic.

the paris agreement on climate change will take effect next month after european nations raised backing for the accord above the threshold level needed for immplementtation. president obama hailed the news. >> last month the united states and china formally joined that agreement together. today the world has officially crossed the threshold for the paris agreement to take effect. today the world meets the moment. and if we follow through on the commitments that this paris agreement embodies, history may well judge it as a turning point for a plan. >> let's look at crude prices. let's see where we are brent crude is -- that's a 12-month chart. brent crude at 51.58. wti at 49.52. crude prices, looks like they're retracing some recent gains

after hitting the highest level since june. this after the american government reported another weekly draw down in crude inventories. uncertainty around the oil prices rose with the prospect of another opec and nonopec meeting next week on the sidelines of the world energy congress in istanbul. iraq has invited market data organizations along with media groups to a meeting in late october to assess the country's i'll production levels. that move comes after iraq stated last month that it doesn't trust the oil production numbers that opec typically relies on. iraq's dissent has the potential to derail the latest opec production deal which will be completed in november. a chief oil analyst from energy aspects joins us along, along with frederik nerbrand in studio. oil at the moment just off a tad. still somewhere near the $50

mark, having ridzsen steadily after news of this opec deal. how much should we put into this move 30th meeting? >> i think the message is clear from opec, in particular saudi arabia, they are keen on high prices. that's why there's a lot of pressure on them to act and come up with some kind of a deal. they made a promise that they will try to cut production. iraq has already thrown a spin in the works which we have been highlighting. that's a risk at the moment but they do need to come up with a coordinated action. >> i'm looking at the fifth unexpected weekly draw downs in inventories as well. if we were to reach a deal, a proper deal with details which we have few of now as you point out in november, is that going to make a difference with regards to some of the near-term supply/demand differences that exist? >> absolutely. it's not going to impact supplies in november and december.

even if they came up with an agreement on the 30th of november, the first-time supplies start falling will be january because of the usual time lags. but, you know, as of right now we are not expecting much of a stock draw next year, about 200,000 barrels a day. if opec were to cut production t could be 700, 800,000 barrels a day which would be huge. like you say, the u.s. stocks are already coming down for the last five weeks. that has been extremely supportive. >> what likelihood do you attach to the deal being implemented and stuck to? >> i think if the deal is implemented it will be stuck to for a year. i think the probability of a deal is 50/50. there are a lot of challenges that need to be ironed out. the only good news is saudi arabia needs and wants higher prices, so they may give a few more concessions.

they will not cut unilaterally, they will need something from others. >> i want to bring in frederik. you are bullish on russian equities. that's a direct play on oil. russian equities already outperformed this year. why you are still buying the winners? >> we're saying you've had the run up in terms of taking down the high yield credit position in the u.s., removing that into russia where we see more upside. ultimately our view is not necessarily around opec, but this is a story with massive decline in investment and by mid part of next year we'll reach a balance in the supply/demand characteristics in the oil market. and we would expect prices to be significantly higher from where they are today. we have a $60 or so average price target for next year. $75 for 2018. we have a relatively

constructive view on oil. but that's predominantly driven by the structural effects in terms of supply and demand. >> any comments to what frederik was just saying? >> we have seen nonopec supplies fall tremendously. all the floating storage has been run down, so you're starting to get the visible. if opec don't come up with a deal, opec production will remain at record levels. if that happens, the stock draws will be far more muted next year and rebalancing will take longer. >> in that scenario, what happens to the oil price? how much would it fall? >> i think if they don't come up with a deal, prices can go back down to below $40. especially given the winter. people are talking about a cold winter, but weather is hard to predict. if you get a mild start to the winter and opec don't cut there

will be real risk to the down side at prices at year-end. >> amrita, thank you very much. before we say good-bye, just to recap. you're saying you're shorting u.s. treasury durations, shifting from high yields to -- >> investment grade credit. >> yeah. and you like emerging market debt. >> some of those moves are risk on, some are more risk off. we're trying to have a completely asset look at the world. it's about trying to find risk premium that's sustainable. at this point in the cycle it's a cash and carry type of asset allocation required. you don't want to have outright cyclical exposure or growth exposures, and rather take those positions where you can find them. at the moment that's in emerging

market debt. >> briefly, u.s. markets, not into u.s. equities? >> we have a 3% s&p position. but generally our equity is almost like if we're wrong, it's almost a hedge to us being wrong. this year our asset allocation worked, the two main bets we had on. both have performed very well. >> thank you very much. frederik nerbrand head of global asset allocation from hsbc. taking a short break. do check out world markets live, our blog, it runs throughout the european trading day. keep us busy on twitter as well.

welcome. you are watching "street signs." i'm carolin roth. >> i'm louisa bojesen.

>> european equity markets edge lower from early highs shrugging off a boost from banks as citi upgrades the sector to overweight. currency clouds for easyjet sending shares to the bottom of the stoxx 600. the airline forecasting a 25% slump in profits if what would be its first full year drop since '09. shares in osram jump to the stoxx 600 after a magazine reports that sonam opta wants to buy the company. and dialogue semiconductor falling higher after the company said it could lift earnings guidance after the chinese holiday boost sales. good morning. if you're just tuning in, here's a quick peek at u.s. futures. the s&p 500 seen flat at the open. the dow jones add 10g points. and the nasdaq 4.4 points.

stocks rallied for the first time in three sessions, but closed well off the session highs. the dow up by 0.6%. the s&p up by 0.4%. in the european markets, xetra dax is adding 0.1%. we have the august industrial orders, they came in much stronger than expected. up by 1%. cac 40 is up, and the ftse 100 is lagging after haven't small gains, in part because of easyjet. the low cost carrier warning about profit, about the terrorism impact and the impact on the low sterling. let's stick with sterling for just a moment. want to show you where it's trading this morning against the itself dollar. back above the 127 level. 127.25, still off by 0.2% on the day. we saw a blip in yesterday's trading session to the upside. it seems like it's finding a new range around the 127 handle.

want to let you know dollar/yen is trading close to a four-week high ahead of the all important jobs report on friday. speaking of the jobs report and things in the u.s., the federal reserve vice chair, stanley fischer, has warned that the economy could be stuck in a low growth period due that interest levels have fallen to such low levels. he said the unconventional policy tools employed during the financial crisis could become a recurrent fact of life. federal reserve governors may have become more exposed to politics in recent decades, that's what jeffrey lacquer is saying. in recent policy decisions the fed has not taken into political considerations, according to lacquer. jimmy lee joins us, ceo of wealth consulting group. welcome back. how are you? >> great, thank you. >> for viewers not familiar, you're a medium-sized country?

>> yes. >> assets under management south of 500 million? >> about a billion. >> okay. and normal individuals you represent? >> high net worth. >> not retail. >> some retail as well. >> i saw a chart it had an overwhelming majority of retailers. so, how are you investing at the moment for your clients? >> we have clients that are investing fresh cash, being very slow to invest. being careful. we think there might ab be a potential correction down the load road with the election coming in always diversified. >> u.s. equities primarily? >> no, we invest internationally as well. also alternative investment strategies. we're exploring adding as much as we can to the alternative

sectors. >> what's the play book for the fourth quarter? do you buy the winners of the first three quarters or do you buy the losers hoping they'll catch up in terms of the winners, we have energy, tech, industrials, underperformers, real estate, financials. what do you do? >> value stocks have been bid up. everyone is looking for yields. in the u.s. north of 3% on good stocks. i think right now we're overweight into consumer staples. that's a sector we like. we like information technology. we think those types of internet stocks can do well even in a recessionary or slow economy. also energy. i think that's a contrarian play right now. i know that energy has been taking some of the projections out of the estimates for the second half of the year. if you can buy oil when it gets closer to 40 on a dip, that's good long-term investment. >> such a huge investment risk in the fourth quarter, also monetary policy risks.

in terms of the election who is better for the stock market, clinton or trump? >> i think the market has clinton predicted as the winner now. i think if trump starts to move ahead in the polls, we'll see more volatility. long-term i know people believe tax reform, maybe immigration reform in the united states would be good for the economy. >> we just had a lovely fellow on from hsbc. >> yes. >> he doesn't like u.s. equities that much at the moment. they're sitting 14% inmerging m. he feels a change is coming. you don't fear a big change is upon us? also looking at some analysis eventually, some people were saying it smells like 1999. especially when you look at some u.s. tech earnings now. >> i know that some people feel the stock markets are overvalued, maybe at the higher range. we're cautious. we haven't had a bear market

since 2009, we're telling clients to manage expectations, look for the volatility. s will be opportunistic. when we get the corrections, maybe they're good buying opportunities for long-term investors. >> in terms of the fed, whether or not we see this 25 basis point hike by the end of the year, is this going to make a difference to how you choose to advise your clients? >> i don't think so. it's all priced in. it will potentially cause volatility, as far as investing in different sectors or different types of strategies, again, we're more about long-term investment strategies, we think that clients can take on potentially more risk and think about alternative investment strategies to get the returns they want to get. >> what sort of alternative investment strategies? >> private debt, private equity, long-term strategies. >> mr. trump yesterday, he was giving a speech in nevada and found himself in hot water in

routine no the republican presidential candidate lectured a group of supporters on how to pronounce the state's nay, but he didn't quite have it right himself. >> meth overdoses in nevada. nevada. i know what i said? you know what i said? i said when i came out here, i said nobody says it the other way. it has to be nevada, right? if you don't say it correctly, it didn't happen to me, but it happened to a friend of mine, he was killed. >> how do you say it? >> nevada. >> nevada. what do you say? >> nevada. >> right. >> i never heard nevada. >> some people say it. most people say nevada. >> tomatoes, to mat toemattomat. >> jimmy lee, thank you very much. i have some flashes for you that i want to bring to you from the german chancellor, angela merkel. she says the german economy is in good shape. the government plans tax relief

of up to 6 billion euros. we have heard that before from the finance minister. she says a balanced budget is not a fetish, it's a necessity. let's get back to donald trump. donald trump and hillary clinton are both looking to build momentum from tuesday's vice presidential debate as they head towards the second presidential debate on sunday night. hours after the vp debate, the clinton campaign released an ad contrasting trump's words with mike pence's denials. trump praised his running mate's performance on the campaign trail said pence did an incredible job rating him 12 out of 10. let's get out to tracie potts who joins us from washington. seems like trump was happy with the debate. but ratings were not all that great. >> no. half of what we saw in the presidential debate. they were not expected to be as high as the clinton/trump debate. this could have been the lowest in 16 years. 37 million people watched compared to 84 million earlier for the presidential debate.

now the focus turned to this coming sunday. the second presidential debate between hillary clinton and donald trump. what's interesting here, they prepare so differently. we heard trump say before i don't like going through all those policy manuals, he likes to be more informal. we know he's done a couple of sessions, will likely do one more with his close inner circle that we now know includes the head of the republican party here and chris christie, the new jersey governor who has been a close adviser to his campaign. he also has added something to his schedule last minute. a town hall tonight in new hampshire. which is interesting because sunday's debate is a town hall format. hillary clinton on the other hand does like to pour over the policy details. they're doing that behind closed doors yesterday today and probably saturday, so we won't see her so much on the campaign trail. >> tracie potts, thank you for

that. the fbi has arrested a national security agency contractor suspected of stealing top secret codes used to hack russia and china according to u.s. officials. harold thomas martin was hired by the agency who employed snowden. shares of booze allen falling on word of the arrest. they are offering full cooperation with the fbi. a bitter taste for yum brands. the stock falling more than 2% on disappointing third quarter results due to weakness in china ahead of its spinoff at the start of next month. susan lee has details. >> reporter: it's the last set of earnings for yum before it splits into two separately listed companies at the end of this month. not a good quarter for yum with a miss on the top and bottom line. earnings per share, eps came in light by a penny. 1.09 a share. revenues missing. 3.32 billion compared to the

street forecast calling for 3.49 billion. yum will spin off its china business at the end of this month. the new stock will trade on november 1st in new york. activism investors have pushed for the spinoff to isolate the rest of the yum business from the volatile china enterprise. this china really enforces that move. same-store sales in china were falling 1%, the market was looking for gains of 4.5% in sales. that really highlights the challenges that yum still faces in the china market. yum china still will have very little debt when it starts its new journey as its own stock, yum-c when it starts trading on the 1st. that's thanks to a half billion dollar buy in by primivera and alibaba. digital sales helped push pizza

at pizza huts, and the stock has been one of the bright spots on wall street rallying over 20% so far. troubled blood testing company theranos says it will lay off about 43% of its full time staff as it closes labs and wellness centers. in a letter published on wednesday, the ceo signaled the company's withdrawal from the consumer blood testing business. the firm withdrew a request from the fda for emergency clearance of its zika virus blood test. what a fall from grace for theranos. >> so fast. power gapes, you might be able to charge your electric car via an app. how does that work? we'll tell you more after the break.

. welcome back to the show. you're watching "street signs." samsung electronic shares have hit a record high after the company said it will review proposals to restructure the company made by elliott management. the u.s. hedge fund recommended separating the korean tech giant into a holding company and a listed operated company. elliott which owns 0.6% of samsung shares called on the group to appoint three new independent directors to its board. sam shung shasung shares have e more than 3%. problems with the galaxy 7 continue. passengers on a southwest airlines flight had to be evacuated after a samsung phone caught fire on the plane. the owner of the device said it was a replacement he had just gotten from samsung. >> reporter: it was 9:15 a.m. when the southwest pilot still at the gate called for help. >> smoke in the cabin.

get emergency equipment over here. >> reporter: this photo shows the remains of a charred galaxy 7 inside the plane. passenger brian green said it started as he turned off his phone for the flight. >> placed the phone in my pocket. within a few seconds i heard a pop, similar to a zip lock bag popping open. i looked around and i had smoke billowing out of my clothes. >> reporter: green said his pocket was singed. he threw the phone on the floor. >> it smelled horrible. i smell like it right now. >> reporter: the carpet was burned through. the flight canceled. roughly 1 million galaxy 7s were recalled last month after a series of fires, but brian green said his phone was a replacement he got two weeks ago after turning in his phone. >> had a green battery indicator which was supposed to say it was a replaced phone. >> reporter: on the website the serial number indicates the

phone should be good. samsung has not confirmed the phone was a new note 7. >> we have seen from the ins n incidents the risk of fire and damage, we're concerned about it. the company is concerned about it. the faa is concerned about it. >> reporter: tonight amid concern that samsung's problems are growing, the faa is reminding passengers to keep the galaxy 7 turned off. >> so scary. it happened when it was turned off. >> i was on a flight the other day, they asked everyone to switch off their galaxy note 7s. i don't think anyone had them on the plane, hopefully not. >> no. this is a big deal. twitter shares dropped 9% after re/code reported that google will not make a bid for the social network. the tech website has also learned th apples not likely to put its hat in the ring either. twitter will finish

deliberations about selling itself by the end of the month. salesforce has been rumored to ab be a potential bidder. shares fell more than 5% on a "wall street journal" report that it could put in a bid as early as this week. ceo marc benioff said he was looking into it but refused to be drawn into whether he would do the deal. >> when it comes to twitter, number one, we look at everything. it's in our interest to look at everything. we have to go deep into everything. we have to understand what's possible for our shareholders, what isn't. on the scheme of things, if you look back at my track record as ceo, while i look at a lot of things, i pass on most. >> as the sales of electric vehicles rise, the battle is heating up among charging services providers. there is the launch of a cloud

based fast charging lat foplatf. what is new motion about? >> it provides charging solutions for electric vehicles, charge points where you plug in the car as well as cloud based services around it. >> we see that abb is partnering up with one of the tech giants, with microsoft and its cloud platform, are you partnering up with anyone or are you just producing that in-house, the technology? >> i think abb is the producer of rapid charge, fast chargers that you find along the highway to very quickly charge the car. our philosophy is you can charge the car at home and office with a slow charge. i don't see them as a threat. we partner up with various hardware suppliers, since our main goal is to get as many as possible to our own cloud service. >> you launched that in the netherlands. what's demand be like?

one should add that the netherlands is very, very open to new technology. maybe the uk, the rest of europe wouldn't be so open to that. >> new motion was launched in amsterdam. we built that into a market leadership there. only now we see the countries around us picking up. norway is ahead of us in the dutch market. in the uk market it's a bit behind. i think about two years behind. if you look at the real driver, the number of electric vehicles being sold, that's growing very quickly. 40% year on year growth. we are confident this market will pick up quickly. >> am i correct in saying, it's something like a 10% market in holland and a 1% 2% market in the uk? >> that's about right. 10% share in netherlands. 1.5% in the uk. >> explain to somebody like me who doesn't drive an electric vehicle.

how does it work? we're looking at the app and the pictures before. how does the app work? >> it's very straightforward, you have to have done it once. you plug the cable in the car, the cable on the charge point side. at that point in time you're connected. using the app you can enter the serial number or scan the code on the charge point. at that point we know who you are and where you are. and then once you have done that you can press start, charge session. and then the car will start charging. you can just walk away then, it will stop charging when it's full. >> how much does something like this cost to be a part of? >> being a part of our network of chargers, it costs nothing. you download the app for free the. the only thing you pay for, the time you start the transaction to start your car, there's a transaction fee. >> how much growth do you think this market holds? >> we've seen a lot of car

manufacturers introducing new vehicles, the growth will be tremendous. we are still in the early days. double digit growth. >> i can't help but think there might be regulatory but also cultural hurdles across europe at this point. not everyone is as open to the new technology. maybe some governments won't allow that technology. >> there are differences. within europe it's alined. will are local differences, but it will go one direction. it takes a few years for new technology to be accepted and standardized. >> what's the largest market now? it is the netherlands? >> yeah, relative size, it's netherlands. actually it's norway, then netherlands, then you have the countries around us. in absolute size, probably china. >> wow. >> okay. >> getting to that market will take time? >> china is a completely different ball game.

yeah. >> thank you very much. hurricane matthew has killed at least 26 people and damaged scores of homes in the south of haiti. earlier thursday the u.s. national hurricane center said the storm is expected to strengthen to a category 4 hurricane where it approaches florida. let's get the latest with sarah rosario in daytona beach, florida. >> reporter: good morning to you. there are evacuation orders in place all along the east coast from florida to the carolinas. this is the biggest storm we've seen headed towards this area in more than a decade. just a slight deviation in its path to the west could wreak some serious havoc in this area which is why many people are not taking chces. along daytona beach, people are being told to get out of here by noon. with hurricane warnings in effect across central florida. now it's nearly 2 million people

being told they need to evacuate. after seeing the devastation that matthew has caused in the caribbean, many people are preparing for the worst. we've seen businesses board i their windows. we've seen people make mad dashes to local stores in an effort to get much-needed supplies, things like food, water, batteries, flashlights, generators, of course gas. we've seen the long lines at the gas stations. we've also seen how this is impacting traffic as well. in charleston, south carolina, both of those roadways leading into the beach were reversed. they were diverted to where they moved out of that area. just in an effort to get people off of the beach and into an area inland where it is much safer. so, according to latest track of this storm, the worst of it is expected to move over this daytona beach area sometime late tonight through early friday morning. possibly into the afternoon. all local schools, businesses and government buildings are closed for the next two days. reporting live in daytona beach,

sarah rosario, caroline back to you. >> thank you very much for that. angela merkel has warned that brexit negotiations will not be easy calling the brexit vote a watershed moment for the eu, the german chancellor said the eu has to stick to its position when it comes to accessing the single market. merkel also announced tax cuts worth up to 6 billion euros. shares in osram are jumping after it was revealed that chinese chipmaker sonam opta electronics wants to buy the lighting company. the report says sonam hopes to present an offer of about 70 euros per share by mid-october, valuing the company just at over 7 billion euros. shares in easyjet have been tumbling after the company said they're on course to post a 25% fall in annual profits. the low cost airline is saying it expects 2016 profits to come

in around 490 million pounds. easyjet is blaming the fall on the brexit vote and the fall of steriling. we've been swing between gains and losses now. the picture looking a tad more positive. the ftse 100 off by 0.2% in part because of easyjet. u.s. futures, how we're setting ourselves up for trade, slightly to the upside. implied open, non-farm payrolls wrapping up the week tomorrow with the consensus forecast being for growth around 170,000 jobs for the month. that's it for today's show. i'm louisa bojesen. >> i'm carolin roth. "worldwide exchange" is up next. it begins from the second we're born. because, healthier doesn't happen all by itself. it needs to be earned every day. using wellness to keep away illness. and believing a single life can be made better by millions of others. as a health services and innovation company

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good morning. global market alert. futures point to a higher open on the heels of yesterday's rally. >> google, disney and apple are said not to be eyeing twitter. and the mets lose their magic on a last-inning home run. we'll bring you the highlights from the late-night finish. it's thursday october 6, 2016. "worldwide exchange" begins right now. ♪