>> it definitely is. also now getting interesting we're looking at the comments coming through by yellen on whether or not you want to move away from the inflation markets, for example. by all means, central bank story definitely continuing. at the moment here this morning, slightly higher on european equities. you've got the likes of pandora pushing up by some 6%. you've got greco, william hill. the list goes on. all of our european equity markets trading in positive territory. in the sectors, buying taking place out there with just one sector in negative territory. autos off just a quarter

percent. >> what's interesting, one stock isn't rallying. burberry. shares in their company for their biggest one-day frul in a year. that's after sales stuttered following strong days in hong kong. this despite caps for a 2% rise in revenues. meanwhi meanwhile, asa has mixed an online bag of earnings. a 37% career in annual profit. however, they saw the pre-tax profit number fall. let's get deeper into these stories with investment director at gamp. what do you make of burberry?

what's happening today? sit just profit taking? what is it? >> no, i think it's a bit more than that. i think there were expectations that sales would if not recover, they would at least be flat. start to enter this steadying decline. now, it beat expectations, but is it a one off? just people coming to the uk for the summer? is it repeatable, probably not. also a much more international company. will it benefit on an ongoing basis from the week down? a little bit, but perhaps not as much as people wanted. >> all right. if it's still facing difficulties in hong kong, why is the rest of the industry trading up today? suspect there something for the rest of the names? they're up today. >> i think it's relative expectations. people were probably expecting them to do a little bit better. and they're not reading across

to the rest of the industry. now we'll see. >> with regards to growth potential from here on out, we are seeing some and also when it comes to this asian market and whether or not the asian consumer holds up -- >> you have the slightly perverse effect. eventually macau will be small enough to not matter. the rest of asia is doing better. it's really hong kong and macau. you know, it's later than we expected. >> we talk about production costs and a lot of these bigger companies having to take on more costs, higher commodity costs too. is the industry going to continue to struggle on this front and how much of these increase costs from asia recently heading higher. are they able to pass it on to consumers? >> depends a lot.

i mean, if you are an fmcg company and your cost of goods are 60%, you have to pass it onto consumer. what the consumer then does is you might see some trading down. if you are l'oreal or burberry, your margin is higher, you can absorb that cost a little bit better. >> what sort of names do you want to own in the sector right now or do you want to steer clear of it right now just because of reliability? >> we like asos and potentially we like the beauty space. in particular some of the challenges in that space. >> you talk about barbarians at the gate. that's on the book based on all

"the wall street journal" articles. do you think we're going to see similar happening from within the retailers? >> the retailers have a bigger problem. right? they have a problem that they are -- shops are important to them. and online is a real challenge. in the beauty space, i really like the beauty space because yes, there's a little bit happening. but realistically people still shop there. so the retailers, they are seeing the likes of asos taking, you know, all the gain. >> also you expect more m&a in the space. major deal of buying png. do you think there's going to be more of that? >> yes. and they both had a good day yesterday. there's going to be more. used to be l'oreal doing it. but we are seeing new people from the space, people with much

more cost conscious, cost focused. that's why i say barbarians at the gate. really you see new people coming into the business taking over these old fashioned companies and they are going to cut costs and increase margins dramatically. industry has high margins. >> not worried about higher debt levels. also again the reference in the book. >> will they overpay? of course the nabisco purchase was very high debt. it's a sustainable level. >> i never saw that movie. did you? >> no. >> did you see it? >> i read the book. i didn't see the movie. >> maybe we should. on friday night. >> i didn't realize it was a movie and a book. >> i think it was a movie in the '90s. >> well, you're staying with us. let's continue in retail.

the known sales growth slowing in the third quarter as issues in the chinese business changes. comparable sales just below forecasts. said it was undergoing a transition in china. formula sales and destocking as continued. danone maintained four-year guidance as well. good morning. >> good morning. >> so danone and the changes that we're seeing. first of all, the regulatory changes in china. on the back of the food scare. now the government is changing the way they do things. how serious is this for danone? >> well, it's an industry issue at the end of the day china has seen significant turmoil over the years as you rightly point out. we had the recall. and then the industry

transitioned to consumers want ing exports. chinese government didn't like that. trying to get a handle onto that. and that's impacting numbers. >> they're reiterating the full year guidance as well. they are seeing sales in europe slowing a bit. they bought white wave foods in july for $10 billion. are we going to see other inroads into markets? >> the white wave purchase i think actually is nice diversification by going to plant based proteins. at scale within the u.s. where they can tap further. it also enables them to diversify into europe in particular. but also potentially longer term

into asia. >> are you not concerned that the growth on the third quarter which is the weakest in roughly a decade is more of a systemic issue? >> we're seeing low and organic growth from that company too. is that not the normal for the consumer? >> q3 in our opinion will mark a very weak quarter. the weakest of this year. something we called out earlier in our sector preview. and we have been expecting a lower growth for a world for fmcg players. i think what we'll see is there'll be some pickup as we go into next year. because there is a tough effect that we're seeing in many companies from q3. but it is more of a organic sales growth world we live in. you have challengers that are coming and stealing some of the marginal growth.

>> you said before you like danone. why is that? >> i like danone because the space they're in. it's a great space to be in in this industry. the question is about if it's right or not. that is a debate we can have. >> how do you feel about the valuation? >> i think the valuation is attractive right now because consensus doesn't factor what they feel. that's because it hasn't completed yet despite the purchase being approved. >> sorry i interrupted you. just wanted to get the take on valuation. continue your thoughts. >> we will see. the white wave i think we're in full agreement here. the white wave deal is a great purchase. we'll see the integration. how well they can take out costs and perhaps more skeptical on the costs. >> the political changes that are to come from within europe especially brexit-led political

shift, is that going to have an impact on these companies? >> for my companies, lots of them manufacture locally. it's going to be more about the indirect inflation as you saw trying to recover some of the costs or profit hit from the devaluation. i don't expect near term a significant flow issue. >> i think they're going to have a problem particularly in the uk. obviously not seeing the same devaluation. the problem is as you're seeing all commodity prices go up, it is likely 45% shares in germany already. 12% in the uk, they will continue to take share pechb though their costs are going up as well. they remain cheaper. that's a problem for the big industry player in the space. >> all right.

robert, we want to thank investment director at gam. now equity markets stateside saw one of their lowest volume days of the year with many investors chooses to wait on the side. scott wapner has been asking some of the biggest names their opinion in the leadup. take a listen. >> all three coming on the half-time report today to help us mark our fifth anniversary. all three sounding cautious on the markets given the political market and uncertainty through the end of the year. >> with margins that may be under pressure because of wages and now the dollar seems to be getting stronger again. so it's a cold environment. it's an environment that

probably would be okay, not great returns. but okay. and then you have to deal with the election. speaking pretty cautious on the market. not outright bearish. >> i've been concerned for a few years. more and more more concerned. i think it's very difficult when there's so many people in the middle class that really don't have the income. their pension funds are way under-funded. >> i think investors should be in a defensive position, and frankly defensive position has been working ever since july. now we're looking carefully at the level we're at right now which is around 2130. seems to be a battle royale going on with the market dipping below 2130. i would turn particularly negative if the s&p closed twice below 2130. >> all three also opined on the election with mr. tepper offering up his view of the

choices before voters. make of it what you will. >> unfortunately, you know, you have a fairly bad choice at the top that's affecting things. one person with a questionable judgment and the other person that may be demented narcissistic and a scumbag. not saying which is which. you can make your own decision. it puts a pell over everything. >> mr. icahn continues to support mr. trump. he says mr. trump may face an uphill battle to the white house. cutting through the brexit fog with cliches. paris launched an ad campaign aimed at attracting business from london. billboards showing a frog wearing a french tie with the slogan tired of the fog. try the frogs.

a campaign to promote the leather fund business. it's being put up at heathrow airport. >> the fog isn't that bad. >> they are trying. they are trying with humor to bring people over. >> who are they targeting? because it's the bank managers who ultimately make the decision. it's not a father of three who has children in school. i'll pack my bags today i'll take the euro star to paris. they are sitting in the u.s. and other parts of the world. we'll make those relocation decisions. >> if you see more and more of that type of friendly come on over you might be swayed. if you're looking. >> taking french classes. >> i did that a couple of years

ago. failed miserably. "street signs" you're at cnbc.com. or tweet us directly. still coming up, bearing the brunts brunt of brexit. find out more after this short break. we'll be back after two. 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. you're still watching "street signs". markets are opening in positive territory in europe. what happened in asia. >> good morning to you. we also had some positive momentum throughout the session here in the asian-pacific region and that was thanks largely to a softer u.s. dollar which helped

export engineers like japan and korea and rising oil prices during the asia session. casino stocks were covered in hong kong as well as australia as australia based crown resorts continues to deal with the situation of its 18 staffers detained in china. we saw macau up by 3.5%. crown resorts able to recovering slightly close up 1.7% after sliding 14% yesterday. now the nikkei is seeing nice momentum as logistic companies are gaining ground and that's as the gst council meeting begin its three day meeting. is this meeting that will set the main tax rates in india. we see the logistics space gaining ground there. take a look at the philippines stock exchange. up 2.9% as moody's is saying the economy in the philippines is sound but the political risks are less predictable.

this as the president of the philippines rodrigo duterte is engaging on a three day visit for trade talks and he also has promised not to mention the south china sea dispute with beijing. so that's a look at the positive picture here in asia. back to you. thank you so much for that. let's talk about airlines. blame it on brexit. ryanair cutting its 2017 profit forecast by 5%. they are reducing their fares by 15%. they make third of its revenue from sterling. they expect profit to grow at 7%. it said, however this guidance is heavily dependent on sterling and fares not falling further. ryanair is actually up 1.5% this morning. we're seeing a mixed picture across the board for airlines. lufthansa up 1.5%.

and the trouble with airlines really is that it's not just the fall in sterling that's hitting the likes of easy jet, ueg and, of course, this morning ryanair over capacity falling ticket prices, terrorism scare. every where you look it's bad knews and ceos are trying to put out fires. >> they are. at the same time cabins are full especially in the likes of ryanair, for example and there's a lot of heavy discounting that's going on. a lot of analysts saying are they the victims of all of this or actually setting the prices? there's a real price war going on. >> they've been the front-runner on bringing down prices. the average air at ryanair is 40 or 45 pounds or dollars. >> it's low. >> michael o'leary saying this lower profit guidance is about being prudent in the current environment. in order to reach that you need

to make sure sterling isn't falling any lower. so they are just being cautious in case weee a further drop in sterling. >> that's what analysts are forecasting. they are expecting sterling to go down further to 1.10 against the u.s. dollar. further earnings downgrade from things like easy jet, ieg and ryanair. >> ryanair bucking the trend despite softer news this morning and trading a bit up. sterling on your screen. sticking to things here in uk, william hill has ended talks with the gambling firm, the two firms would be better off as independent businesses. they were in discussion with canada base amaya. the leading investor in william hill warned it would oppose any deal. >> the german tire maker

downgrading its full year forecast. shares down 22% this morning up by 3.75%. missouri sued volkswagen over the indonesdifferent esel n scandal. remy cointreau sales beat expectations. now brexit uncertainty

continues to weigh on recruitment firm hays. they said hiring in london fell sharply. at least two people have died and six were badly hurt after a fire took place at the main production site in germany at basf. a spokesperson expressed deep regrets and sympathy for the people affecting. regarding costs the company says it doesn't yet know the financial impact. now deutsche bank has been hit with yet another fine. the german lend earthbound has agreed to pay $38 mill thrown settle u.s. allegations on price fixing on virtually. the case claimed deutsche bank, hsb c-rigged virtually prices through a secret daily meeting back in 1999 suppressing prices

on virtually and virtually financial instruments. loads of you writing in this morning. find us on twitter either ar @carolin cnbc. this one says why are you unhappy with london. we love london. vicinitying to hear what you have to say. we need to take a quick break. world markets are up and live and running. stay with us we're back on the other side of the break.

. welcome. you're watching "street signs". i'm carolin roth. >> i'm louisa bojesen. your headlines this morning. >> burberry shares are on track for worst one day drop in a

year. weak sales in hong kong and u.s. german tire maker blame antitrust case. g formula in china down on shares slip as it suffers a slow down in the third quarter with regulatory headwinds in the far east. netflix shares up over 20%. revenue and subscriber growth coming ahead of forecasts. good morning, everybody. and welcome. you're still watching "street signs" here on cnbc. we're getting some inflation dates from uk. september cpi rising to 1% year-on-year. highest level since november of 2014. it's slightly above the reuters poll which had that reading at

.9% year-on-year. when looking at the year-on-year figure of 2016 third quarter cpi you're look at a reading of 0.7% versus the bank of england august forecast. core cpi excluding energy, food and alcohol and things like that 0.2% month on month. glancing through and looking at house price, plus 8.4% versus 8% back in july. the london average 12%. so house price averages continuing higher. . it draw your attention to the fact that september producer closely watched given the decline in sterling are up 7.2% year-on-year. slightly smaller increase we had forecast or expected. it was expected an increase of 7.4%. that's the fastest rate in rough le three years. no surprise given the decline in

pound sterling. >> let's talk a little bit more about this. global head of foreign exchange strategy is with us. so september cpi rising to 1%. high evident level since 2014. we keep glance being at the data. glancing at the after matthew brexit a -- aftermath of brexit. >> there's nothing more exciting at this point in type. we'll get more. big fall in pound wasn't in september it was this month, really that we really accelerated the fall. we'll get more inflation. the bank of england keeps its powder dry for our. that's the net result of some of the better data. it answers no questions at all, unfortunately, about what happens in 2017. how much the economy slows down. how much inflation goes up. we've been told by bank of

england they will look for further inflation. william hagan told us they should get on with it. >> you mentioned the drop in sterling and especially this month and we did see the aftermath of the brexit vote reflected in sterling. do you think that there's a shift taking place when looking at this massive push hire in gilt we'll move from a big move to bond markets? >> i think it comes against the global tides where yields are moving up. we went through the summer where yield hunting based on idea there be no politician, growth is slow forever went too far. you changed the global tide around. the uk saw a big rally as expectations got pessimistic. it's a whipsaw coming the other way. there's something to be worried

about if instead of the pound falling as a shock absorber for the economy, sort of a natural effect of the terms of trade that we take from the brexit and if interest rates coming down because the economy is weak, if you then see investors globally saying i'm worried about the future, if i want a risk premium for inflation risk premium, a credit risk premium, a general uncertainty i don't know what will happen risk premium then you see that in the pound, you see that in gilt and the equity market. there was a nervousness in the markets. if i were a policymaker i would be staring at that trying to unpick what that meant and trying very hard to make sure we get control of that situation. >> how do you get control of a falling gilt market? either you're the boe and buying even more gilts or you're theresa may and soften your tone when it comes to the hard

brexit. with gilt it seems it was a self-fulfilling prophecy. >> it's sort fort worth the gilt market, where it's going 10, 20, 30 years, gilt is an expectation of where inflation is going and uncertainty generally. so the answer to your question if i can't affect where interest rates are going how many gilts are sold and so on i have to tack tell uncertainty. we could ask that how do you tackle the uncertainty when politicians are creating as much uncertainty as they usually can. stop doing that quite so much and give a clearer steer as to financial markets or uncertainty about the timetable will come back and bite you. >> we focus so much on the short positioning and pound sterling. i guess and you pointed out what we're forgetting about is increasing short position in the euro/dollar. it fell below the 1.10 handle. now that we head into the ecb

meeting what does it mean going below 1.10. >> it's a reminder in europe with a little bit -- as bond yields move higher u.s. bond yields are leading that. u.s. interest rates might go up this year. that's helping the dollar a little bit. euro/dollar has been tied to this incredibly narrow range for 18 months. i can't get my head around the idea we can break that range. but drifting towards the bottom end, drifting to 1.08, 1.06, 1.04 while we worry what happens next, even this morning's bank lending survey from the ebc we have to pick up in lending conditions but it's slowing down. loves momentum, political uncertainty. what happens next. i think we can dribble that away. >> can i ask you about the aussie/dollar because we've had the governor suggesting that a rate hike is further away than what previously had been

anticipated. we're at two weeks high on the aussie/dollar. >> australia is interesting. they had a trade shock because chinese demand for their exports fell. if you want to post a chart for a country or a central bank that embraced the idea of lower rates and weaker currency to offset terms of trade sock they did it. if we drift back up the other direction they will lean against as well. they don't want until commodity prices recover, they don't want a stronger currency. they are doing what part of me thinks the bank of england is supposed to do, welcome the weaker bank. >> thank you for your time this morning. federal reserve says u.s. is very close to meeting its inflation and diplomat targets. steve liesman filed this report. >> reporter: stan fisher in a speech to the economic club of new york warns of the dangers of

low interest rates saying they could lead to great financial instability and longer deeper recessions. >> low interest rates make the economy more vulnerable to adverse shocks that could put it into a recession. operating close to the effective low bound limits the room for central banks combat recession using their conventional policy tool. that is by cutting the policy interest rate. >> fisher said the evidence so far doesn't show threatened height of instability but his comments are hawkish after janet yellen spoke on friday about running a high pressure economy with lower one employment rates. fisher pointed out the fed was near or at its inflation and unemployment goal. he added many reasons for low interest rates and weak growth were not in the fed's control. they include productivity and labor force growth running below what they used to be, an ageing population, weak investment and

weak foreign growth. he suggested rates are lower by three percentage points from the combination of those factors. lea republican presidential nominee donald trump ramped up his allegations that the u.s. election is rigged against him. speaking at a rally in green bay, wisconsin he citeed a 2012 pew study that called for an overhaul to voter registration systems and a 2014 "the washington post" article arguing that noncitizens voting in 2008 could have helped swing the tide in favor of democratic victories. this after several campaign lawyers called his allegations unfounded. >> melania trump defended donald trump's comments in a tape in which her husband was caught braggi bragging with lewd comments.

let's go to washington. mrs. trump has been quiet in the aftermath of these allegations. now that she's speaking will it help his cause? >> that's what he hopes. she did release a statement right after, also in that interview melania trump said billy bush egged on her husband and that's why he made those lewd comments trying to justify some of those comments that women herd, bringing women into his column. donald trump, you'll hear the word quid pro quo a lot over the next few days. not only is the election process rigged but there's a corruption revealed in new emails. an e-mail exkmaeng between fbi and state department shows scandal worse than what he calls watergate. in one exchange with fbi an under secretary asks to

declassify one of hillary clinton's emails changed. we would liking agents positioned in countries prohibited like iraq. fbi and state department denies any wrongdoing. donald trump says this shows the corruption. he believes this system as you said is rigged in this. now meanwhile senator bernie sanders going for hillary clinton trying to sway voters reached out to donald trump supporters. bernie sanders telling those supporters that he understands that the system is rigged towards the wealthy and he says that's the reason you have to vote for hillary clinton. now hillary clinton has not talked about any of these e-mail controversies yet. she's not scheduled to make another public appearance until the debate on wednesday. >> at the same time also it seems clinton campaign they are upping the ante for arizona traditionally a red state. >> reporter: exactly. the clintons have decided to hit some of those states that are

traditionally republican, arizona, utah instead of sending hillary clinton herself they are sending well-liked surrogates. michele obama is going to arizona in order to rally support there. so they are sending folks that might not antagonize voters there, someone who is very well liked but in order to sway some of those voters and it's designed to do to make donald trump spend money in states where he wouldn't otherwise have to spend money in order to get those voters and keep them in his corner. >> thank you very much for being with us at this early hour on your side of the pond. edward lawrence joining us via nbc news. donald trump doesn't know what this means but he's scared of it anyway quote-unquote the arabic words emblazoned on an anti-trump billboard in dearborn, michigan. a political action group found by the creators of the popular game cards against humanity. a spokeswoman for the group said dearborn was chosen thanks to

its large arab-american population. michigan is a swing state and hope it motivates communities to vote in the upcoming election. >> italian prime minister has arrived in washington for what's likely to be president obama's last state dinner. the event is to be a glittery affair with celebrity chief mario batali in the kitchen. more important thanning else what's on the menu. >> sweet potato with butter and sage. warm butternut salad. green apple with thyme, caramel. >> i'll go for that. >> just the butter milk gelato is enough for me.

if you're the chef and have this job ahead. >> the pressure son. if you have an italian guest and italian prime minister coming to the white house you really have to dish up the best menu you can get especially also that coincides with president obama's last official state dinner. >> do you serve italian? >> what we saw was italian. but why not order in a pizza. just a pizza for the last state dinner. make it informal. >> i'm a big fan of pizza. e-mail us. let us know what you think about all of this. >> meantime make upg for the lost ground. netflix shares jumping 20% after the streaming video company posting its third quarter results offsetting a 13% decline. what caused the sharp move. that's coming up after this short break.

a japanese automaker honda is planning to build a new production site in china bet on a strong rebound in the world's largest market. >> reporter: yes. the company has made an about turn as it had cancelled factory production plans in china last autumn due sluggish demands. it's planning to set up a vehicle assembly plant aiming to start operations in early 2019. the plant is expected to raise honda's output capacity for cars for the local market 20%. construction is slated to begin as early as this year and estimated to reach hundreds of millions of dollars. last year when the chinese economy was slowing many japanese firms cutback on investments including honda. but a tax break that was introduced in october of last year helped boost the auto

market. in fact effectively tloe lly lo price of small size cars by $1,000. honda sales jumped 26% during the same period. september sales soared 47% due to new offerings including several sports utility vehicles and other japanese makers stepping up efforts to expand production trying to catch up with gm and volkswagen. as auto markets in the u.s. and japan are seeing sales ll, high expectations rest on the chinese market. that's all from the nikkei. back to you. >> thank you for that. now netflix has beaten all expectations in the third quarter with revenue and subscriber group ahead of estimates. they added over 3.5 million subscribers, 50% more than

analysts forecast. the company has spent $5 billion on content and plans to spend $6 billion more in 2017. and now these figures sending the shares up by almost 20% in after hours trade in what was big volume. welcome boost for netflix shareholders. the share has been down around 13% so far. they all raised their target prices on netflix after these third quarter prices. julie boorstin went behind-the-scenes to get the bigger picture. >> reporter: netflix beating expectations as price hikes helped boost revenue. the company adding 3.6 million new subscribers, 2 million coming from overseas. bringing the subscriber account to 87 million worldwide. netflix forecasting it will add a far better than expected 5.2

million subscribers. netflix says these results are driven by excitement around it's original content. these results are pushing the company to invest even more in producing its own original content. >> time for me to apologize for the volatility. this time it's in a good direction. but i think more and more investors, you know, are able to look at the multi-year picture and see patterns emerging. less and less about our guidance. . >> reporter: whether netflix plans to raise prices, he said no plans. they want to produce more content themselves. more cost efficient. >> we've had great couple of years at these price points and there's a lot of competition entering the market. what we're focused on is how do we increase value to the consumer by having more

spectacular shows so that people watch more of netflix. and over time that will take care of itself. but we don't want to get over confident just because, you know, we've had a good couple of years. >> reporter: there were a couple of questions about disneys. they wouldn't weigh in on rumors disney might be willing to buy a company like netflix but they praised disney of being a unique partner. back to you. >> in other earnings revenues at ibm topped forecast for the third quarter driven by growth in its cloud and analytic business. let's go to ceo. shares at netflix up 20%. the company is doing everything right. can you find any fault? >> at the moment no. they were expected to lose subscribers over this quarter.

so the 20% gain is pretty much because they went up from 2.3 to almost 3.6. million that is. so it's a turn around from what the analysts expected. they are creating more content. they are creating more shows. expanding internationally. i would say it's kin of what amazon did, enrich your own thing and then grow out. they are in the period of growing out. it takes money but they are flourishing. >> up until yesterday the picture didn't look great because shares were down 13% year-to-date in part because of competition from amazon, hulu, they had a price hike. what tells you this isn't just a blip and shares continue a downward trend? >> well, it's the wonders of the be stock market. you never exactly know. they are investing a lot of

money in themselves whether it's content or video productions or reaching out to the markets. so, you know, they seem to be spending money in the right areas at this point. yeah, there are some worrying signs on some of the licensing fields that are running out and, you know, they are losing a lot of content that would seem kind of older. but as they go forward, you hope that they can focus on, you know, the positive aspects of the business. >> in many cases their licensing content to existing online services providers like, for example, in china what they are doing there. it is really about this type of strategy in trying to gain international customers which is particularly where we've seen this boost? >> ye. to concussion on the past three or four years. getting to china is a huge thing. how they do that they are trying to figure that out because they can go alone they will have some problems having dealt with china

myself and the chinese market -- going alone doesn't often work because not only of the particulars of the market but the government interference and other things. so they have to navigate those waters very carefully. but it's one of those things where they will hopefully succeed. >> carolin was mentioning some of the main competitors. what does netflix have to do to make sure it isn't a short term wonder story. >> right. well for what i do is customer experience. one of the things they invested in like amazon is making sure the customer is normally happy. there are bumps in the road but how do you enrich the experience of them when you have them. so if you invest time and money in doing that you're more likely particularly in a subscriber world to keep them, you know. if you can keep them happy they

don't mind paying $10 a month. so if you invest in keeping your customers happy you're more than likely to keep the engine stoked. >> dan before we let you go let's get a quick comment on ibm. a lot less exciting than netflix but pretty good numbers thanks to the cloud. what if it weren't for the cloud wouldn't being a great? >> it's all about $4 billion l on medical data. they focused on certain areas for watson around artificial intelligence and gig data. big data being a huge piece of business for multiple companies and the buzz word for the past three years. so for them it's, you know all the investments in watson and it's been going for four or five years, if that pays off they are way ahead of the curve. it doesn't then they are meddling at the moment. >> appreciate your time. dan collins.

we want to tell you what european markets are up to. we're higher across the board. slugging off disappointing losses from burberry and ryanair cutting its profit guidance. ftse 100 is up by more than 1%. dax in germany is adding 1.1%. currency markets a little bit of a jump in sterling, 1.2251 against the u.s. dollar. the dollar is stalling today. we got the inflation numbers. 1% highest number in two years. euro/dollar keep an eye on that back above the 1.10 level. >> u.s. futures sensitivitying itself up for trade. this is the early indication the implied open a little bit higher keeping in mind that we do have some data points out this week and the chinese gdp data bng published tomorrow might be of interest for those of you positioning yourselves based on the global growth story where we

look at potential weakness to come. >> people say it doesn't matter as much this time around because we're not seeing a hard landing in china. >> and print over 5%. if that continues. so that's what we're seeing now. that's it for daytoday's show. thanks for watching. >> "worldwide exchange" is up next. see you tomorrow. bye-bye. 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?

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good morning. netflix shares soaring on strong earnings and subscriber growth. >> ibm under pressure. the stock trading lower this morning despite what looked better than expected quarterly results. we'll hear from the company's cf. >> weak pound means big sales for burberry but that may not be enough. shares down sharply in europe today. it's tuesday, october 17th, 2016. "worldwide exchange" begins right now. ♪ >> good morning and welcome to "worldwide exchange". m