welcome. you're watching "street signs." i'm louisa bojesen. >> these are your headlines. >> basic resources weighing on european equities as a shock slump in equities reverberates through global markets. a bitter taste for unilever shares with marmite spite and no love for dove. tesco pulls yu s unilever thingm

its site. investors cheer a change at the top for wells fargo as ceo john stumpf steps down, but the politicians are left wanting with politicians calling on elizabeth warren to have stumpf return every nickel he made. good morning. this is what we're waking up to in europe. we're an hour into trade and lower by just 1%. chinese data spooking people out there with basic resources. a lot weaker than expected. we'll hear more about that from our asian reporter, maybe a bit of redigging. >> not a huge surprise in the fed minutes, investors holding 60% odds for a rate hike this

ye year. that leaves investors on their hold. and the miners taking a kqueue from the chinese data. >> do you take a chance? do you not touch your money? do you think the market will continue higher than this 7,000 level that we breached recently? will we go higher on the ftse given this weakness on sterling or come to a new normal? will the ftse fall in line with mick data? it will be interesting to see. >> a lot of this hinging on whether or not the bank of england changes course. >> big time. the sectors out there, the sector story for you, most of the sectors trading in negative territory. real estate hanging on to slight gains. the basic resources off by 3% now. the chinese trade data said a sharp 10% fall in exports, that was particularly bad. imports in dollar terms also

back in contractionary territory. there's one word everybody is talking about on twitter, it's marmite surprisingly. >> do you like it? >> can't say i do. not sure i tried it in enough doses. >> try it with a banana. >> i resisted. the big story, tesco pulling dozens of unilever branded products off its website over costs. the consumer goods company has been trying to arrange a price of goods by around 10%. unilever's cfo said prices in the uk had to rise in order to offset the sterling slump that followed the brexit slump. a tess a tesco spokesperson said we hope to have the issues resolved soon. unilever had sales numbers which beat analysts forecasts,

but the consumer goods giant saw its sales dip by 0.1% on a constant currency basis. we have a consumer goods analyst from jeffrey's with us this morning. we have unilever trying to increase wholesale prices, let's start with the trading update. >> it was a positive surprise for us, ahead of market expectations, the paradox is why the shares are down. that has to do with the quality of the beats, which is price led and not volume lead. it also has to do with the wider ramifications of what unilever is doing with marmite and other brands. this issue of whether or not some of these bigger producers are able to pass on the wholesale prices going up, will they be able to? will the consumer have to take a hit?

>> varies market by market. in markets like brazil, you have a weaker trade channel. probably can get away with it but the poor old consumer suffers, so volume is down 5%, latin america, not brazil. in the uk it's different. a much stronger, sophisticated trade channel. the guy running tesco used to run unilever in the uk, he understands the cost and margin structure. he doesn't want to pass on excessive inflation to his consumers. he's all about keeping the basket low for the working family. the stage is set for a spat, i suspect. >> who wins out of the spat? very interesting you bring up dave lewis. >> excel when question. there's a theory in practice. theory is tesco is 20% of unilever's uk sales, unilever is 1%, 2% of tesco sales. that would say unilever blinks first. this is emotional for unilever. unilever can play this one long.

>> it does raise the question of whether or not unilever is taking the lead here and others will follow suit. last week, we heard dave lewis congratulating himself over his relationship with suppliers. is this the suppliers striking back? more than just about the pound? >> we think the uk is set for a renewed bout of food price inflation. that's definite. i'm struggling to understand why unilever needs to put prices up by 10%. we can't get that number. >> some of unilever's products are made in the uk. i knows there a speculation for them to have it just as an excuse to put price up? >> they are reporting commodities, petrochemicals mainly in dollars. even if it's made in the uk, they have to recover inflation. our spread sheet doesn't say

10%. >> they've enjoyed a windfall for a while, do you think that tide is turning? >> it's not turning just because of sterling but because of underlying commodity prices are going up. >> you can find us both on twitter. are you on twitter? >> i'm not. >> do you tweet? >> sorry. >> it's good fun. >> ken ricen says it is a new opportunity for the tesco brand? is it? if not s it an opportunity for other grocers? >> why is it a new opportunity for the tesco brand? >> i'm not sure. i wrote back asking why. >> i think the new opportunity is for tesco to be seen as strong. dave lewis needs to work with a uk family on a tight budget. >> who do you think the consumers side on this one?

tesco for resisting pressure from unilever? >> of course they are. >> martin, thank you very much. martin debour, consumer good's analyst from geoffrey's. keep your tweets coming through. you can also e-mail us if 140 characters doesn't quite do it. >> it does cause discipline. let's bring you up to speed with other stories. prosiebensat raised guidance for 2016 and 2018 upgrading sales targets to 4.8 billion euros by 2018. they lifted their same sales o by 15%. sky posted a 7% increase in first quarter revenue, confirming sales targets of 5% to 7%. they got a boost from the sci-fi

series "west world." >> have you seen "west world?" >> i have not. have you? >> i'm always one step behind. just catching up with "game of thrones." >> you started that. i still haven't. listen, keep your e-mails and your tweets coming through. you'll find us on twitter. >> get in touch. still coming up on "street sign signs", britain's handling of brexit. we'll look back at the heated parliamentary debates.

. good morning. welcome back. you're still watching "street signs" on cnbc. chinese ek poxports plunging by

in september. much worse than expected. nobody is pleased with the data, especially basic resources. >> yeah. we were expecting a negative number for exports, louisa and nancy, but not 10% to the down side. economists had been expecting a slide of 3%. but we got 10%. on imports, that was a surprise because of an expectation in the rise in the month of september by 1%. the number we got out of beijing was a decline of 1.9% in terms of imports. that speaks to the concern of whether or not growth and consumption on the domestic side will be moving along smoothly. for the broader market in asia, let's look at the impact. we saw most of the impact on the hang seng which is settling down 1.6%. after that data came out. it didn't have much of an impact on the shanghai composite which is mostly retail investors. that's at the flat line. let's look at the nikkei. we saw the yen strengthening after that china trade data came

out. that affected japan inc with the nikkei down 0.4%. the kospi down 0.9% as the korean bank held interest rates steady at 1.25%. the central bank governor acknowledging that the crisis samsung is going through may have an impact on the export picture, but also saying it sees growth in korea. still tracking at 2.7% this year. samsung electronics, the share price seeing a silver lining today. positive, up 1.4% for the first time so far this week. nancy, back to you. >> thank you. wells fargo's ceo john stumpf has stepped down after succumbing to pressure from congress. this as it was revealed the lender opened over 2 million accounts in customer's names without their knowledge. he is replaced by tim sloan. speaking with cnbc last night,

sloan said stumpf departed because he was causing a distracti distraction. >> wells fargo is made up of 260,000 team members across the country and across the world. no one individual is necessarily going to make the difference. we have to work together to restore the reputation of the company, to continue to focus on moving the company forward. so, one person, whether it's john stumpf or candidly me won't make a difference. elizabeth warren called on stumpf to return every nickel he made during the scam. she claimed he's leaving the bank at the height of the scandal and not real accountability. bnp harry bass is shutting down locations in england. they are expected to unveil a

new business plan next year with head reductions. unicredit shed 20% of its holdings in online fineco bank. it t new restore the lender's financial strength. they have committed to a 360 day lockout period. atlante is suring up -- due diligence on poor -- pimco among the participants

in deutsche bank's $1.5 billion bond offering on tuesday, according to reuters. the financial services arm of allianz was understood to have taken part in friday's $3 billion debt sale as well. investors have been waiting to find out the size of deutsche bank's settlement with the u.s. justice department for misselling mortgage securities which could be up to $14 billions. the uk is poised to face a 20 billion euro divorce bill from the eu according to analysis by the ft. the investigation finds that over 300 billion euros of shared payment liabilities need to be settled once britain cuts ties with the bloc. the upper estimates includes unpaid budget appropriations, pension liabilities and other spending commitments. the report says that the sheer size of the union's shared budget is proving to be one of the biggest obstacles to a brexit deal. meanwhile, legal proceedings challenging the british

government's right to trigger a brexit without seeking parliamentary approval kicks off today. this after prime minister terra theresa may rumled out on this particular matter. the opposition labor leader heavily criticized theresa may for her parties shambolic handling of brexit. >> the reality is that since the brexit vote, the trade deficit is widens, growth forecasts being downgraded, value of the pound down 16%, an alliance of the chamber of commerce, on federation of britain industry, british retail consortium have all made representations to the prime minister demanding clarity. is the prime minister really willing to risk a shambolictory brexit? >> what the party committed to was to give the british people a

referendum on whether to stay in the european union. we gave the poem theople that ve will be leaving the european ono union and make the right deal for the market. >> theresa may speaking yesterday. the french finance minister making a couple comments in paris after meeting a couple of banks in the u.s. talking about how no negotiations on a brexit until article 50 is triggered in march. >> something we keep hearing from several leaders in the eu and saying u.s. banks looking at things could be transferred to the uk after brexit. paris trying to make a play for some of the jobs. i had a chance to speak to the french and finance economy minister in luxembourg, he took a hard line when it came to the

uk financial passport. i asked there's been some suggest suggestions that the uk may be able to retain a financial passpo passport. he said impossible. and there was a report from moodies that said they could withstand it but quite difficult. >> a lot of the tech attempts as well. one of the ministers in charge of technology in the uk trying to pull some start-ups into france, into paris. >> i think it was the meetings in washington, the imf meetings, the morgan stanley ceo said it would be new york that benefits from this rather than paris or french fort. all of this uncertainty continuing to weigh on sterling. it's been a bit of a roller coaster after the last few days. we're well off the lows. sterling hanging at 1.2150

there. moving on the fed minutes yesterday as well, amid expectations that the fed will hike rates. the majority expect that hike in december. let's bring in the head of multi asset ail location at columbia thread needle. thank you for joining us. we were looking at the sterling trade. you might say the marmite debate is putting inflation fears front and center. the big question is whether the bank of england is concerned about inflation, looking at what's happening to sterling and will they change course? >> before the referendum back in may, they refused to say whether they would hike or cut in advance of referendum. everyone said my goodness, of course you will cut. the economy will be tricky, inflation will go up. but you'll look through that. that's what happened. they said inflation will rise but we'll look through that. one thing that was hindering them saying they would come in to support the economy post a vote was this idea about

expectations of risk premium in the economy. the interesting thing that's happened over the past few weeks from the bank's perspective is sterling has continued to fall. number two there are signs that inflation expectations are starting to be de-anchored. you see that not in the short inflation, market expectations for inflation over the next two years has gone up meaningfully, but long-term expectations have risen post this short cycle. >> how should investors position themselves for this change? if this was to come through, people need to start think being repricing the reaction function of the bank of england. it starts to unwind if maybe the bank of mexico is a better example of how to react to weaker currency and lower growth

expectations but with higher inflation expectations. that would be quite a profound shift. not there yet, but the sort of thing on horizons, and allows them to scale back bond allocations. >> we saw the ftse dropping around 3,000, 4,000, 5,000, we then recovered to 6,000, 7,000, just shy of it. what would the catalyst be in order for there to be a correction if we're looking at data and inflation expectations through feeding through to the economy, when will that feed through to the ftse? >> i don't know when it will feed through to the ftse, to be honest. when i look at higher levels on ftse and sterling terms, ftse 100 has fallen post referendum compared to other equity markets. then it's gone sideways. as the pound has fallen, ftse has gone up. ftse local has suffered more. companies with revenues greater

than 70% in the uk, they're about 30% cheaper than they were pre-referendum. that's reaching new lows. quite a profound de-rating coming through. from sterling based investors, everything is great. everything away from sterling cash is doing quite well. >> this quantitative easing? as long as the central banks are backing us, we buy equities? >> i don't think it's quantitative easing, it's about the de-valuation of the currency in real terms. against goods, services, assets, international assets. any assets you have, as long as this momentum continues, you'll make money in sterling terms because steriling is losing against everything. >> if the bank of england were to hike, would sterling rise? >> i think that's -- >> dealing with two forces. >> it's a much harder call. a call i would want to back away

from. you look at what happened in mexico, they hiked 150 basis points year to date. the currency is continuing to slide. but they've done so in order to rein in inflation expectations to maintain long-term credibili credibility. >> let's look at basic resources off some 3% today. a lot of that tied to the shock china export data. does that concern you when you look at the sector? is there reason to look beyond this data point? >> i can understand why basic resources have done what they've done on the export side. it's something which i think will be more tied in with the global growth picture and with commodity markets per se. i know it's a big portion of the uk market, but i think of those basic resource companies being tied to global growth pictures, specifically china with a sterling factor as well. >> sure. so what's your favorite area to invest in at the moment? >> in terms of risk markets, we

are -- we are still quite interested if japanese equities, european high yield features quite meaningfully in our portfolios. we've been de-emphasizing duration. selling longer term bonds, continuing to do that over recent months. we still got a large non-sterling position. that's starting to look vulnerable. it's fallen sharply, quickly, looking cheap on long measures. but the near-term fate depends on how the political sessions go. >> hang on one second. we need to include the fomc. minutes showed several fed policymakers moved closer to a rate hike. many members thought raising rates would be warranted relatively soon if the uk economy continued to strengthen. internal divisions remained over the timing of the next move. a couple of participants also raised concerns that waiting too long could force the fed having to raise rates aggressively in order to slow the economy.

more dovish officials wanted more evidence that inflation is firming before hiking rates. again, we have kind of -- we're all over the place in terms of what would be the best move for the u.s. you think we'll see a hike in december? >> i think we'll see a hike in december. if you think about it from a labor market economist perspective, you never want to crush the economy because unemployment has fallen below the long-term level of structural unemployment. so the whole debate is where is that level? a lot of people think we're there already. so then the question comes are we at neutral rates? are neutral rates 0.25%. the fed saying it's 3%. so you may be starting to remove some accommodation now so we don't have to hike quickly later and bring recession on to restore the economy's equilibrium. >> is it largely priced in when you look at emerging markets?

>> it's always dangerous to say anything positive about emerging markets. the u.s. treasury priced two-thirds in on this particular hike, but a shallow path beyond that. on emerging markets we have become incrementally more positive, not because of a u.s. policy call but because of the earnings going through. lots of self-help coming through on emerging market companies. stock buy backs, positive momentum in about three years coming through. so we feel more positive for emerging markets despite the rate hike. >> lots of you writing in on twitter. you're on twitter as well? >> yes. @tobey underscore n. >> writing in talking about the brexit scenario, most times it

works out hecheaper to pay for marriage therapy and reconciliation. a viewer writes in saying unilever is abusing their dominant position. >> who the consumers side with. >> and how much of that cost can you pass on to a consumer in a slowing environment if you're a bigger retailer. jonathan -- loads of you writing in, do you have any idea what unilever make that has split the whole house cold category with p & g? i don't know offhand. >> i could name a few. they're getting into the high-margin products. >> oh, the products. >> dove is the one everyone thinks of as a staple. >> doing a lot of health and beauty. >> just dollar shave club they bought one stateside. >> dollar shave club? >> shave. >> i'll tell you more about that

during the break. >> maybe tobey knows something about that. >> i don't think so. >> tobey, thank you. do men shave when they have beards still? do you still shave? >> yes. >> they do shave. >> that's beyond my knowledge. >> he says yes. tobey, thank you. we have to take a quick break. good morning.

welcome back to "street signs." i'm nancy hungerford. >> i'm louisa bojesen. your headlines today. >> european markets hit by basic resources weighing to the down side as a shock slump in chinese exports reverberates through markets. a bitter taste for unilever shares with marmite spite and no love for dove. a battle building in the corporate world as tesco pulls unilever products from its website over who will bear the cost of the falling

pound. breaking up is hard to do. britain reportedly faces a divorce bill of up to 18 billion pounds to cover its remaining financial obligations and liabilities with the eu. investors cheer a change at the top for wells fargo as ceo john stumpf steps down, but the politicians are left wanting with elizabeth warren calling on stumpf to return every nickel he made. good morning. welcome back to "street signs." a lot of focus in the european session on marmite of all things. the china data, exports shocking there and weighing on global markets. yesterday it was a lot to do with the fed minutes. not a huge surprise that the fed it was a close call when it come to staying on hold in september. investors still pricing in one

hike this year, i believe in december. >> what happens if they don't? >> the question to me is what will it take for them to stay on hold? >> maybe -- they're supposed to be independent. not supposed to be looking externally, but if they are looking externally, that might be a factor. >> the big election hanging over the head there, too. >> goldman's note earlier this week said the fact that clinton gaining in the polls raises the case for a rate hike this year. let's look at how u.s. equities are called to open. a bit of softness. markets were largely flat yesterday. we saw small gains in the dow jones, now a picture of some softness, quite a bit of softness for the dow jones called lower by 131 points. this will take its queue from the moves globally with european markets moving to the down side significantly at this stage. let's give you a shot of the overall picture in europe. quite a bit of red on the map. the ftse 100 lower by 0.6%.

they are actually outperforming the losses for the broader european markets. the xetra dax off by 1.4%. similar picture for cac 40. and the ftse mib moving in tandem. china data sparking fears over basic resource sector. a lot of uk miners moving to the down side and investors continue to watch sterling volatility. yesterday investors turned their eye to the dollar with fed minutes. lots of charter about a hard brexit, theresa may said there will be no vote abo. euro lower against the green back by 0.11%. that is 1.09. dollar also losing strength against the japanese yen. that moved in the nikkei earlier in the session. now sterling at 1.2 1, off

another 0.4%. and the dollar also losing some steam against the swiss franc. >> the story continues. the "new york times" published a report accusing the republican nominee, donald trump, of inappropriately touching two women. trump's campaign fired back calling the accusations fiction. and they confirmed plans to sue the "times" for the report. brian mooar has the details. >> reporter: tonight, donald trump's campaign is fighting back against a "new york times" story in which two women claim he inappropriately touched them years ago. >> he was like an octopus. it was like he had six arms. he was all over the place. >> reporter: jessica lead said trump groped her on a plane 35 years ago. >> when he started putting his hand up my skirt, that was it. that was it. >> reporter: a second woman tells the times that trump kissed her on the mouth without permission. nbc news has not spoken with the women about their allegations a

trump spokesman says this entire article is fiction. for the mork times to launch a false, coordinated character assassination against mr. trump on a topic like this is dangerous. to reach back decades in an attempt to smear mr. trump trivializes sexual assault and sets a new low for where the media is to go in its efforts to determine this election. >> every place i go i see hundreds of women for poll, ttr then a poll saying women are not for him. >> reporter: the republican nominee is now on defense and in an unflattering light. brian mooar, nbc news, washington. this mentions two we'll. there's at least ten women who have come out over the last 24 hours claiming some type of assault or indecency from trump. you have a "new york times"

article, one on the flight who said he kissed her on the mouth in 2005 a woman at one of his resorts also in '05, the "people" magazine reporter who came out and wrote her experience of him kissing her. facebook account as well that was covered by yahoo! back in june of this year as well. the list goes on. it's not just the two mentioned there. >> it's not. we should mention the trump campaign denied the allegations. as awful as all of these allegations are, i wish the debate would turn to the issues. it's taking up way too much of the campaign. >> i would love to know what he's planning on a bunch of fronts. the trump campaign is pulling resources out of virginia, according to an nbc news report citing multiple sources. the decision was announced to staffers in a conference call on late wednesday. a source with knowledge of the decision said the move to pull

out of virginia shows that trump is -- his focus is shifting to four states critical to his electoral chances. pennsylvania, florida, north carolina and ohio. russia's president, vladimir putin, said he will work with wh whomever is the next president. geoff was able to put a question to the russian president in moscow. >> given the difficult week that donald trump just experienced, are you now making preparations for working with president hillary clinton next year, a person who has described you as calculating and a bully? can i ask you, could you directly address the claims that are being made of state-sponsored cyberspying, and war crimes in syria? i'd love to know how we de-escalate this situation.

thank you. >> translator: i've already spoken a lot about how the american people are making the choice they consider needs to be done, and whatever the result, we will be working with whoever the leader of the u.s. will be. no matter who the leader is, no matter who the president will be. here's your answer to the question about the hacker attacks. after all, what we are observing, certain hackers have released certain information about how unseemingly mrs. clinton's headquarters have been behaving during the election campaign. they have been supporting one party candidate at the expense of another. then this was said it started in the interests of russia. there's nothing there in russia's interests. >> let's get out to geoff standing by in moscow. geoff, interesting mr. putin there dodging the question on syria but he wanted to make clear his stance on the u.s.

election. no doubt about it. >> yeah, absolutely. i think he wanted to get across the message that discussions with the current administration in the white house are difficult at the moment. and there is a sense of ill ease with the way russia is increasingly coming up between the presidential questions. the syria question is more interesting. he didn't address it in answering my question, but subsequently we have found out that there are going to be senior level discussions this weekend between washington and moscow, hopefully that will lead to progress in de-escalating that crisis in syria. i do want to talk about the economy as well. we're at a financial forum. president putin spent some time discussing reforms, of course anybody that knows the russian story has been waiting for some time to see real, credible

reforms enacted here. namely the privatization process and the government moving to give up significant stakes in russian companies. we heard a little bit about that here. of course there's just been a big deal announced where rojneft will spend $5 billion in acquiring bajneft which is another business owned by the state. i spoke earlier with christopher grandville who knows this market very well. i asked him whether this was a sign of genuine reform. let's hear what he had to say about the privatization plan. >> major reason is fiscal. razneft is paying the best money with real cash flows.

and t putin did say at the end, despite that privatization will go on. i think the signal was he knows this is not real privatization. i personally do not believe he's ready to privatize outright majority controlling stakes in large companies to the private sector. i think he meant small minority stakes which are interesting to the equity market like 10% of the big diamond producer which was in the second public offering last summer, we will see that. a big maritime shipping company, 25% of that will be sold earlier in the new year. that's what is really meant good for macro, not so good for structural reform, private ownership. >> nancy, i don't know whether you were ever a trekky fan in your youth, the old phrase, it's privatization, jim, but not as we know it particularly when one state-owned company is buying

assets from the state that effectively are state-owned and the money just gets circulated. but in terms of privatization as we understand it, in the western sense, it doesn't just quite look like the real deal. i think christopher grandville making the point there that president putin may be quite reluctant to allow control of some of these state-owned assets to fall into the private sector, particularly while this economy is still under sanctions and there has been some rumblings about new sanctions if there is not any progress on the syrian negotiations. back to you. >> thanks for that one. depends on what the meaning of privatize is. we want to bring you up to speed with comments from boris johnson. he's commenting on the recent back and forth over the government's handling of brexit so far. he has said it's a fiction that free movement of people is written in stone in eu rules.

this would contradict what we've heard from many european leaders saying you can't cherry pick, you must have free movement of people if you want access to the market. boris johnson casting doubt on that this morning this hitting at whether or not the data we've seen so far, a lot of encouraging positive data on the economy, whether it's too early to draw conclusions on that. boris johnson saying those who have predicted doom may have been proven wrong. others saying what's happening in sterling, what it will mean for inflation and the overall economic effects as well. also commenting saying there's no inconsistency between the desire to take back control of borders and to be open to skills from around the world. offsetting criticism there around the immigration stance. >> i tweeted four maps, i forget

who the original source was, it's on twitter. four maps showing the main people in each country coming from other countries across europe. actually across the world if memory doesn't catch me out. go online, find it on our twitter account. it's interesting. we talk about syria, syrian refugees, looking across europe, very few countries have seen a majority of syrian refugees coming. >> i think boris johnson has an important message for those worried about the uk drawing up walls, borders. he's saying just because we want to take back control of migration doesn't mean it's an end to migration. that's an important point to be making at a time when people are concerned about the immigration stance. >> migration from where? does it make a difference to people? if it's people from norway coming across the border? germany? >> the message from the government seems to be for skilled workers that we can take into the economy.

with limits, yes, but it's not closing the borders. minutes from the september fomc meeting have shown several fed policymakers moved closer to a rate hike. many members thought raising rates would be warranted, relatively soon if the u.s. economy continued to strengthen. but internal divisions remained over the timing of that next move. keeping this in mind, the u.s. dollar held near a seven month high on the back of the minutes as expectations of a december rate hike were reinforced but it's giving back some gains in trade today. the dollar index at the moment higher by 0.1%. we've seen a different story against the japanese yen. but overall the dollar index slightly higher in the session. something for you gold bugs. gold has been trading a bit higher as the dollar has been falling. the price of the precious metal has fallen by more than 5% over the last three months as the dollar continues to show strength. now, the mining stocks today under quite a lot of pressure. that has to do with the chinese

trade data, sharp 10% fall seen in exports. imports in dollar terms also back in contractionary territory and a bit of selling. robin barr, welcome. good to have you with us. >> nice to be here. >> we had this big rise in the price of gold, then a correction over the past month or past couple of weeks. what's causing that correction? is it a dollar related story? >> a number of factors, but it was clear the writing had been on the wall that the price was elevated, yet there wasn't any bullish catalyst to take it further. it was looking a bit tired. investors had been buying gold for safe haven. value reasons, and a correction was always imminent. so we've seen the selloff. now these lower prices, we think they'll -- hopefully revive

physical buying. that's the missing link in the gold market. we've had all this investor buying, investors are now selling. and yet physical buying from china, from india has been fairly subdued. >> why? >> why? good question. >> demand story? >> i think it's because economies are slowing. clearly, you know, with china, there's a structure or slowdown, less incomes to buy gold. in india, lots of government change in regulation. trying to inhibit the imports of gold because of the high account deficit in india. lots of regulatory changes. but the monsoon has been better, most gold buying takes place in the rural areas. >> what about the festive season getting underway in india? do you expect that to impact demand? what is your take?

>> should help. i think it will go a long way to get back to sort of the levels we had in the years prior. but we should expect religious festivals, wedding season in india is also coming up. that should help to support some physical buying. the evidence that we've seen in the last few days is that that buying has materialized. so hopefully that should support prices around current levels. i have to get your thoughts on the moves in basic resources. a lot of uk miners down substantially this morning taking a queue from the chinese export data. do you think that's a real concern? >> it's been a concern for us for a while. clearly this year we seen some fiscal stimulus, infrastructure front loading to help support the economy. we all thought it was not sustainable, that impact is likely to fade. now we're starting to see that

in today's trade data and possibly trade data that we'll see over coming months. it's a worry because china is 50% of global metals demand. >> do you prefer an enindustrial metal? >> we prefer zinc, nickel, tin, lead, which is maybe off the radar of investors, but still still are important basic materials. >> all right, robin, thank you for joining us. robin bahr. coming up next, we'll be entering the realms of virtual reality. sony getting set to launch its new vr head set for its ps4 gaming console. 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.

. hi everybody. welcome back to "street signs." japan's major electronics maker, toshiba, has been sued by a group of foreign investors who blame the firm for losses claimed by fraudulent accounting. >> hi. the lawsuit was filed with the tokyo district court and 45 shareholders, mainly foreign institutional investors are claiming $160 million in damages. toshiba says losses that may occur from the lawsuit have been taken into account and is reflected in the latest profit forecast for the current fiscal year. toshiba is already facing 15 similar lawsuits including a suit filed by japan's massive government pension fund and the total of claimed damages have reached over $300 million. however toshiba share holders seemed to shrug off the news today. a nikkei report said the firm will join the market for

self-driving vehicles a. that's all from the nikkei. back to you. >> thank you very much. sony's play station virtual reality launching today. and priced at $400 and operating through its playstation 4 console. sony hopes the system marks a turning point in turning vr mainstream. not a fan. >> there's no way. >> makes you dizzy. let's go to steve bailey and arjun kharpal who join us. steve, the key word to me is mainstream. we talk about a very crowded field for virtual reality. what makes sony's version different? tell me about the pricing. >> so the pricing is kind of midrange. it's the accessible platform for

people who like vr. there's the high end for oculus, and the low end with mobile, which is generally free but less high quality experiences. play station offers the middle of the range, good quality, accessible. sony has great development capabcap capabilities for playing this. >> do you think sony has a first mover advantage in that segment of the pie? we talk about microsoft, they're delayed on their competitive product. >> in console terms, certainly. more advantages than oculus because it has great retail relationships, distribution established, a store as part of the console. when you think about oculus, you need a high-end pc, not many of those out there. consoles, ps4 there are plenty. >> you were in that video. how was the experience? >> the experience was fantastic.

there was a point i was jumping back when the shark was attacking. there's serious potential with this. my concern is whether the 50 games sony is releasing will be enough to entice people to buy this. it's not a great amount of games. this is the issue with vr, there's a ton of potential but it's very expensive. realizing that potential will take time. the experience is bite sized, straightforward. it will be a while before we see ambitious high scale experiences coming through. for the time being, it's enough to make people glad they bought the mission. >> is there a risk people wait for play statimrplaystation 5? >> that's a long way away. >> so why purchase this particular console? there's a ton of consoles out there, right? >> consoles are about hardware, content of services.

you have the playstation network on ps4, a lot of games, first party and third party that are compelling. the price point has stayed quite high, but bundling from retailers has been aggressive. >> i think, just now we might have got play station5, but now we have the psvr. >> we'll have to try it. >> we have to go. thank you very much. arjun, steve, thank you. u.s. futures, pointing to a bit of a selloff for the dow jones. off by 100 -- more than 100 points. that's it for the show. "worldwide exchange" is coming up next. >> have a lovely day. see you soon. cdw brought i.t. orchestration

to growing businesses across the city, increasing productivity like never before, which is amazing, unless you're a barista. cdw implemented dell poweredge servers with intel xeon processors to allow people to work from anywhere, so lucky me. so nobody wants coffee?! hey, can i get a couple copies? enhanced mobility by dell. i.t. orchestration by cdw.

good morning. wells fargo fallout. john stumpf is gone. the bank chief retiring in the wake of the fake account scandal. china exports plunging more than expected. global market reaction coming up. and earnings on deck with the fed reaffirming consensus for a december hike. it's thursday, october 13, 2016. "worldwide exchange" begins right now. ♪ good morning. warm welcome to "worldwide exchange" on cnbc. i'm wilfred frost alongside