good morning, everybody. welcome. you're watching "street signs." i'm louisa bojesen. your headlines today. travis perkins shares are on track for the worst day since the brachial plex the brexit referendum vote. the chips are down for intel but up for asml. the u.s. tech titan disappoints investors with weak pc forecasts. the dutch firm rises on a solid order book. accorhotels shows strength in most of the markets despite terror concerns in france and

belgium. and president obama has harsh words for donald trump ahead of the final debate in the election campaign. >> i invite mr. trump to stop whining and go make his case to get votes. if he got the most votes, it would be my expectation of hillary clinton to offer a gracious concession speech and pledge to work with him. of course you can watch the final u.s. presidential debate here on cnbc tomorrow -- tonight, that is, but very early tomorrow morning at 0300 cet. 3:00 in the morning tonight is when you can watch that debate. if you're watching in london, he 2:00. the stoxx 600 a little bit lower in trade.

would have noted that asia saw its second strong day in a row here in the overnight session. looking at wall street also up on a number of corporate earnings in the session yesterday. glancing at main european markets. we're slightly mixed. most markets trading in negative territory with the ftse, the dax, ftse mib all trading a bit lower. when it comes to the sectors out there and how we're shaping up for trade, just an hour into trade, basic resources and technology higher. telecoms, real estate and insurers pulling down. we have a geologist on in a bit. yep. he will talk about bhp billiton but he's actually a real geologist. let's talk more about some of the other companies making headlines. the dutch chipmaking equipment manufacturer asml reported a 23% rise in third quarter profit, short of estimates. but sales beating expectations due to strong demand from asml's

newest machines. the company which supplies intel and samsung among others expects revenue of 1.7 billion to 1.8 billion euros during the fourth quarter. travis perkins is braced for its worst trading day since the brexit referendum vote. slack demand will be hitting numbers. it announced plans to close 30 branches in a bid to cut costs. this happening as it reports a 2% rise in third quarter sales. reckitt benckiser also missing estimates due to weakness in its south korea business. they have lost customers in the region since its humidifier disinfectant products were linked to a number of deaths. reckitt benckiser's numbers did receive a boost from the weakness seen in sterling. the fall in the pound helping it to this 2% increase seen in the sales figures for the quarter. stock is off about 3%. and sticking with retailers,

german retailer, metro saw a dip in sales during the fourth quarter due to a decline at the e-commerce site. metro saying its spinoff perforations for redcoon are on track. we have more on some of these stores with mita patel. we are look at all these earnings out, trying to make sense of them all, focusing a bit on some of the bigger ones. reckitt benckiser, shares lower, sales missing. what do you make of this one? reckitt is a quality company. i think that kind of shows what you see today, normally when you get a quality company that disappoints because of high expectations that are baked into

stocks like that, they can get punished. they got slightly soft numbers, nothing really that drastically bad about them. the market is taking it well. that suggest the that the story is intact. this is a business that will be around for a long time. it generates great returns on capital. a great stock to have for a long time. >> how does this compare to travis perkins, the building suppliers group as well? we talked about how they're looking to cut costs, closing a number of branches. they say 600 jobs are at risk. >> yeah. travis is an interesting one. it's one we picked up fairly eventually. we try and extrapolate messages and think about things from a big picture perspective. a few weeks ago we picked up from a number of uk companies was, you know, sort of cautious tone. you got warnings about the current quarter or current trading from capita, from tops

tiles, other smaller cap names. the message we extrapolated from that, there's a brexit uncertainty driving a big delay in spending decisions. whether you're corporate, thinking about budgets for next year, pulling back on decisions, if you're a house hole you might be delaying doing up your kitchen or bathroom. that's starting to feed into some of the companies that, i know, that were on relatively big ticket spends. travis perkins we became sellers of on the basis of that message that we're coming out from those companies. it seems to be unfolding. that could play out more and more and more as brexit uncertainty rises. >> by in large, so far, the ftse topping 7,000 recently. we have not felt this broader pullback that one might have anticipated after brexit. you think companies will start to feel the pinch or uncertainty

more? >> i think so looking at the ftse can be misleading. if you try to aggregate the proportion of foreign earnings that make it up, you will see big numbers. if you are thinking about or worried about uk consumer companies, whether it's corporate spend or consumer spend, that's something we think you need to become very, very cautious about from here on in. we're in the early days, summer is a quiet period for that. q4, you could see those things unwind further. >> you say, though, that it's hard to find shorts that work currently. are you looking for shorts? are you activity looking to short uk companies? >> we're always looking for good ideas. we get a sense that our clients and investors are quite hungry to find good short ideas right now. it's hard to find a good short idea, one, because it's tempting

to short on valuation which can be risky because you're fighting momentum, that can work against you. it can be risky to short rubbish companies, because the persistence of cheap debt means a risk of a rubbish company being taken out. we need to find ideas that sort of remove themselves from that. travis perkins and that uk spend thesis was one of them. we are seeing some idiosyncratic names within telecoms. yesterday we came out with a potentially new idea based on what's happening in the airline sector. so we've seen weakness in a lot of airlines. we're seeing sort of cautious tones around passenger numbers which we think could hit. >> i made a few notes as you've been speaking because i can't remember it otherwise. ameet is with us. get your questions and comments through. always nice to have you guys join in the conversation.

streetsignseurope@cnbc.com. that's the e-mail address. also @louisabojesen. i'm happy to pose my questions and comments to my guest. speaks of guests, anders bouvin saw profits rise for handelsbanken. he will be in later in a half hour's time. if you have questions for the handelsbanken ceo, send them th. it's a first on cnbc, that's around 10:45 cet or 9:45 from the uk. you can e-mail the show, we're on twitter as well. you can find me directly at @louisabojesen. we need to take a short break. coming up, fixed income heaven for goldman sachs, what

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. hi everybody. welcome back. you're still watching "street signs" on cnbc. good news, chinese gdp rose by 6.7% in the third quarter in line with most analysts had been anticipating. the growth rate within the government's target range of 6.5% and 7%. the fixed asset reading was in line with estimates rising 8.2% year on year.

people are quite relieved that the figure coming in where analysts have been anticipating it. >> yes, right on target. as a result, we didn't see dramatic moves in the asia pacific markets, but light positive moments. we did see some surprises to the upside, mainly in retail sales, up 0.7%, also the property sector we saw home sales rise 43.2% year on year from january to september. so that was a positive surprise. but that's put pressure on property developers, especially in hong kong where the hang seng is down 0.4%. and the reason why property developers are under pressure. this underscores the concern about the property bubble there in certain cities in china and whether this will mean a new call for drastic cushing measure there's in china. the shanghai composite at the flat line. we also saw the asx 200 move up

almost a half percent. the aussie dollar weakened initially after industrial output was weaker than expected in china but that has climbed back and regained ground. the nikkei up 0.2%. and our eye is on sharp corporation. they were up earlier by 11%. sharp saying that it forecasts a fuel year operating profit for the first time in three years. they also came out saying net income will improve drastically because of their merger with fox con which happened in august. looking fairly good with positive momentum. moderate momentum here in the asia pac region. louisa? >> pauline, thank you. some other stories making the rounds, accorhotels lowering profit target ranges for 2016 after security fears following recent terror attacks dragging down sales numbers in france and belgium.

they did see strong growth in the uk where the weak pound is leading to a pick up in domestic tourism. the world's second largest retailer, carrefour, reported strong third quarter sales growth. boosted by growth in latin america. sales fell in the company's core french market and in china. carrefour's cfo said that it was achievable that the retailer would be meeting full-year earnings guidance. zalando shares will open higher. earnings and interest tax rising 1% in line with estimates. the dutch paintmaker maintained their full year guidance and raised their dividend by 6%. shares up by 3% over the last 12 months. eruotunnel's revenue rose by 4% in the fourth quarter boosted

by a strong increase in shuttle revenue and truck shuttle traffic. the gru the ceo said despite the vote in favorer of a brexit that the firm has never been stronger. ameet patel is still with us from northern trust capital markets. just getting into the telecoms. you say there could be a bit of a risk to kpm among other things? >> we do think so. one of the themes we like within the european telecom space is cable assets. the reason for that is cable is a technology that can offer much faster speeds into the home. much faster than fiber. so we have some calls on the back of, you know, cable assets, like altice, tec -- >> who?

>> telenet is our top pick, and altice, that's something we find interesting. the flip side of that is what happens to some of the incoup it telecom industries? kpn is one that stands out for us. about a year ago it was a reasonably benign market environment. over the last year that's changed considerably since vodafone and cigo got together which changes the competitive landscape hugely. this whole threat from cable is rising as well against that. and it's been one of the best performances, one of the richest telecom stocks in the sector, in europe. we think that the market is pricing in potentially a sustained bid speck, which we think is not a risk. we see a lot more scope for down

side risk for kpm. >> getting e-mails through. we have someone who writes in saying a market meltdown is imminent with world rates creeping up on the end of the biggest governmentum manipulation of the market. stocks have closed at lows for the last three trading days. a major selloff is imminent and central banks are powerless to stop it. do you think the impetus that the central banks, that they've been doing, the moves they've been making in order to stabilize markets, will that come back to hunt us? are you anticipating a big correction from within ftse companies? i've heard people suggesting a correction of 15%, 20%. we have not seen it yet. are we ripe for this correction? >> it's tough to call. the build up of -- the build up, the potential for negatives is certainly stacki ining higher a higher. the problem is you hear this

crazy tina strategy. there is no alternative. that is real in some respect the. and how long that can sustain markets for, it's in's guests. when it does unwind, the longer it lasts the more violent that unwinding will be, and then risk parody funds unwinding which could compound all of that. our trading desk is in constant communication with funds. that's one thing they're worrying about. >> ameet patel, thank you for being with us. i'm glancing, my left eye, thank you for bearing with me. it could be a bit disturbing when you're talking to somebody and looking somewhere else. the saudi energy minister is saying they're at the end of a considerable downturn with regards to ipos. of course we're looking towards saudi aramco among others. that's a big one if and when that ipo happens.

that's one to watch in the future. the oil market stabilizing a bit, $52, $50 a barrel. we saw an unexpected draw in u.s. crude according to data last week. that added to a boost in the price of oil. fixed income trading seems to be back. all of the big u.s. lenders that have reported so far, they've seen a recovery in ficc business, fixed income currencies and mcommodities business. jpmorgan reporting a 48% rise. goldman locking an almost 50% jump. wilfred frost took a closer look. >> a big beat on the eps line for goldman sachs, in a quarter that saw them return to double digit returns. r.o.e. of 11% was impressive. the beat largely down to trading. fixed income currencies and commodities trading was strong,

almost 50% growth from q3 last year. here is cfo harvey schwarschwar. >> year over year we were up 50%, but i would have to agree with you i wouldn't say it was particularly strong quarter for ficc. year over year i talked about some of the drivers. i would say maybe the best way to describe it is that it wasn't so much -- wasn't so much about tailwinds, as it was about not having so many headwinds in the quarter. >> later he said not to overemphasize the third quarter trading performance too much but that momentum was good. on expenses, while up year on year they did post a 3% fall quarter on quarter in contrast to peers who had increased expenses this quarter. investment banking performance appears soft, down 14% on the

quarter. though m&a backlog is encouraging, particularly in the u.s. and advisory was better towards the end of the quarter than the beginning. we got comments on a new online lending platform, marcus, where the first loan had been written, the approach would be slow, focused on prime customers aimed at delivering flexibility and simplicity. for cnbc business news, i'll wilfred frost. cnbc will be speaking to ceo lloyd blankfein at 8:40 p.m. cet. he will talk earnings, elections, all kinds of stuff with david faber. now, bhp billiton reported a 1% year on year decline in iron ore production as they reaffirmed most of the 2017 production guidance forecasts. andrew mckenzie sounded an upbeat note on the firm saying we've seen early signs of market

rebalancing. paul rankin is senior geologist and mining analyst at vsa capital. good morning. >> good morning. >> we're hearing bhp billiton, 1% decline year on year in iron ore production. the ceo sounding upbeat that there are signs of this market rebalancing. is that what you're seeing as well? >> this kind of discipline with bhp, where production numbers across a number of commodities are no longer rising, in fact have been falling for at least several quarters here now, is a good sign that the marketplace is -- or the major producers into that marketplace like bhp are rationalizing inventories that are there. which is still a good sign. >> output levels are where they should be or -- or are they off balance with regards to what demand is? >> they had been off balance for quite some time and we're getting into a situation where they're reaching balance in a number of commodities.

things like iron ore, coal, that overproduced and depressed the market by quite a ways. that's reversing at this point. >> the share prices had a real rally. 600p back in january of 2016. now at 1210. can a rally like this continue? >> this rally is all based upon the fact that they've been able to reduce debt and also demonstrate to the marketplace that they are intent on -- as we say, changing this inventory levels of excess material out there. the fact they've been deliver nothing that, at the same time that we had stronger than expected demand in things like iron ore and now coal as well which are make procedure ducts that bph produces in particular is a reflection of the share price move. >> the biggest markets remain? china? >> china are going to remain china as well for the foreseeable future.

>> there was a while back, the massive volatility that we saw in a lot of these minors and basic resources based on the worry about the china slowdown. and now -- this is when chinese gdp figures were north of 10%. now we're 6.7? what's the latest read? 6.7% for the third quarter? any print above 5, is that good for miners? >> of course we would like to see the continued growth in the chinese market and certainly the stabilization at 6.7 as they announced today would indicate there's no longer a slide going on at this point, at least that we can see. among the major miners, we continued to see the paying down of debt. there was excess debt in the companies. that includes over names like glencore and the fact that they've been doing well in the last several quarters is a good

sign. >> you would be optimistic? >> yes. >> excellent. you're a geologist as well? >> yes. >> have you been north of norway? >> no. >> everybody says you need to go there if you're a geologist, apparently the rock formations and the early paleozoic era, you can find out a lot about that up there. >> very good. >> a friend of mine is a geologi geologist. thank you very much. >> thank you. let me get you the latest on these flashes that we're just getting through from the saudi energy minister, talking about how they're at the end of a considerable downturn. fundamentals are improving. the oil market is clearly balancing. china demand is evolving, not slowing, and opec can exert continued stabilizing influence if members are acting collectively. we just came out of this opec meeting. talking about how non-opec p

produc producers, critical to stabilizing the market as opec producers. coming up, we will speak to handelsbanken ceo, anders bouvin. that's in about 15 minutes time. for all you swedes out there and non-swedes, get your e-mail questions through for anders. first a quick break, check out world markets live, our live blog. much more to come after this short intervention. we'll be right back.

good morning. welcome back. you're still watching "street signs." i'm louisa bojesen. travis perkins shares on track for their worst day since the brexit referendum vote as

the building supplier warns on profit and announces branch closures to cut costs. the chips are down for intel but up for asml. the u.s. tech titan disappoints investors with weak pc forecasts. the dutch firm rises on a solid order book. accorhotels topping the stoxx 600 as it shows strength in most of the markets despite terror concerns in france and belgium. and president obama has harsh words for donald trump ahead of the final debate in the election campaign. >> i invite mr. trump to stop whining and go make his case to get votes. if he got the most votes, it would be my expectation of hillary clinton to offer a gracious concession speech and pledge to work with him. you can watch the final u.s. presidential debate here on cnbc and it takes place late tonight, early tomorrow morning at 3:00 a.m. cet.

hi everybody. welcome back. you're still watching "street signs" on cnbc. i'm louisa bojesen. just getting some data hitting our wires. uk unemployment rate for august alone, 5% versus 4.7% in july. they're looking at 227,000 having been added, unemployment of 144,000 as well according to ons data. 2.3% higher year on year, in line with expectations. earning earnings bonuses 2.3% as well. stronger than anticipated. the uk unemployment rate in august, 5% versus 4.7% seen back in july. sterling just a little bit higher against the greenback, 1.23. worries about a hard brexit

versus a soft brexit. british lawmakers, are they going softer? there are questions about whether or not parliament can ratify britain's exit from the eu. let's glance at the u.s. fig futures, the implied open, a couple points lower. european particular kets today, we're a bit mixed. most of the main markets off a tad. you're looking at continued volatility in bond markets. we're seen yields dipping both stateside in europe as well again on the back of the worries of a brexit and the uk ten-year hanging on around 1:09. state side we're at 1.74. commodities including commodities into the mix, looking at wti and brechnt, bot trading higher at the moment.

and some comments within the last 15 minutes or so from the saudi energy minister, talking about how we're at the end of a considerable downturn. fundamentals are improving. the oil market is clearly balancing. opec can exert continued stabilizing influence. he also talks about how the non-opec producers are as critical as opec producers. david sneddon joins us. welcome back. >> good to be back. >> what are we looking at when it comes to the price of oil? just looking at the price in general and what the energy minister out of saudi arabia was saying. >> it's interesting we have seen a decoupling of oil from the

monetary. it is moving on fundamentals as it is on technical moves. what is interesting is the decoup decoupling, brent and wti are right against significant areas of resistance. i think oil is pivotal, for the oil market, but the cross-asset implications of oil are huge. the direction for oil will have a big impact on emerging markets, inflation break-evens and bond yields. we are very close but not quite there yet on i'm completing what could be a significant base if this rally in brent crude oil can get through 54, that would put in a medium term investor for oil. it would suggest we have higher oil prices to come. we would be targeting 61 initially, eventually around 70. the implications from that are significant. the bigger impact is inflation

break-evens which have been rising already in the u.s., and have already technically broke levels, a higher oil price will put inflation break evens up more. if you want a catalyst for bond yields to rise more significantly, you probably got it right there from that inflation and oil move. i think oil is a pivotal market, even though we stabilized over the last week or two. if you want a focus for the next couple months or longer, oil is where it may come from. >> maybe we can put that chart up on screen once again. we were showing the weekly brent chart if we go through 52, 54 -- >> 54.30, 54.35. we rallied up to the key highs from 2015 from earlier on this year. classically for technician you have a classic head and shoulders base. so 54.35 would see that base completed. what it says is the core friend has changed over the medium t m

term. the implications from that are significant. >> do you think we'll go back to the levels above 110? >> no. no. we're looking at levels of around 70, which is clearly significant from the base we are now. but not to the 110 level. that's too optimistic. >> okay. small can caps versus large cap. you brought us the russell 2000 u.s. small cap index. >> it was interesting hearing your comments talking about people looking for market meltdown. we've been defensive u.s. equity for equities for the last month or so. we've seen the market drift lower than complete a major top. the small caps have been underperforming, leading the

market lower. that remains one of the reasons we're cautious on the u.s. equity market. we have weakly monthly signals. they're worried momentum has broken down and volume for small caps topped out in our view. what we haven't done yet is broken the final layers of support in the market itself. we're clinging on to them, around 1206 in the russell 2000, if that breaks we put in a top. the big question then is from your comments before, is that a 15% to 20% downturn or a smaller correction? that's a difficult one to call. our view is 5% to 7% lower rather than a bigger move down. it is certainly on the defensive and more cautious and have been for the last month. we're clinging on to the support levels and will they finally break? that's what we're -- europe is quite different. i think europe will roll over a bit with the u.s. if we break

down. but europe is holding out incredibly well. the other thing to remember for equity markets is we have a big rotation trade going on. it's not like every sector within the u.s. is looking weak. there are some strong outperformers and in europe as well. defenses have been hit hard. tech have been doing well. in europe, things like construction and materials, basic resources, if oil breaks higher, oil, energy, gas are big components that will go along with that. >> can europe continue to outperform if we see a u.s. correction? you said -- >> i think it's difficult for most markets to hold out orally if the u.s. is going to downturn. the best you're looking for is europe to go more sideways if the u.s. downturns or outperform on the downturn, probably not actually see independent sort of rally and strength. >> do the u.s. main markets have to follow the small caps state side? >> they don't.

we can clearly see a significant phase of small cap underperformance. for us, the shape of the s&p 500 suggests it's in a similar, vulnerable state. it would follow suit as well. i think the main thing at the moment is we haven't broken yet. two, we're clinging on, even though we do have strong signals. even if we do break down, it's more at the moment in sort of the 5% to 7% category of decline, rather than anything more at the moment. we have all these fx heads watching, have to get an aussie dollar question in there. >> it's interesting. australian dollar against u.s. dollar is not the one i would play at the moment. the u.s. dollar looks like it's strengthening. we're seeing signs of the australian dollar showing signs of independent strength. at the moment it's against the euro. aussie against swiss is trying

to break out. what we like about the trade if you look at the australian dollar in trade weighted terms, it broke down its strength from 2013. not at a point where it put in a medium peneemedium term base, b approaching that point. we think there's quite a lot of downside. what i like about euro is clearly weakening, and it benefits from that, but it's i mun from the dollar si immune from the dollar. >> super interesting. >> i'm being yelled at in my ear because we have to go. thank you very much david. david sneddon, technical analyst from credit suisse. donald trump's flattery of vladimir putin is unprecedented

in american politics, so says president obama. speaking at a press conference to kick off the italian prime minister's state visit to washington, obama criticized trump's admiration for the russian government. >> mr. trump's continued flattery of mr. putin and the degree to which he appears to model many of his policyies and approaches to politics on mr. putin is unprecedented in american politics. it's out of step with not just what democrats think, but out of step with what up until the last few months almost every republican thought, including some of the ones now endorsing mr. trump. >> president obama also criticized the republican nominee for complaining that the election was rigged saying no serious person would suggest it's even possible to rig the american election.

>> i'd invite mr. trump to stop whining and go try to make his case to get votes. if he got the most votes, then it would be my expectation of hillary clinton to offer a gracious concession speech and pledge to work with him. >> with just three weeks until voters in the united states cast their ballot, tonight's presidential debate will be providing one last chance for those who are still undecided to compare the candidates side by side. tracie potts joins us live from las vegas where the third presidential debate will be taking place. tracie? >> reporter: good morning. this third and final debate for the candidates is really sort of a final argument, especially for people who don't live in battleground states, they're inundated with ads. we've seen them since we've been here. for millions of voters, as you noted the undecideds in the middle, this is a final

argument. both candidates are here. donald trump's plane touched down late last night. hillary clinton earlier. their debate prep focusing on different areas. trump spent some time with the generals who had been advising his campaign, focusing on foreign policy. one of the six segments tonight will be about hot spots around the world. his team tells nbc that he wants to focus on hillary clinton's record. on the other hand, hillary clinton is known for doing extensive debate prep. she got here a little earlier in the day. her team tells us that her job here is really to look presidential and sort of not get dragged into the fray of some of those issues that donald trump wants to address. one of those issues is that he believes, as you noted, that there's a rigged system. but also wants to get into the e-mails. hillary clinton's e-mails, state department e-mails, the ones that have been coming out through wikileaks, he claims the media glossed over the importance of these e-mails by

focusing on the women who have accused him of sexual assault. will this get as down and dirty, so to speak, as the last debate? it's a different format. instead of the town hall, this is more of the traditional behind the podium debate. >> thank you very much. tracie potts joining us live from las vegas. of course you can watch this final u.s. presidential debate right here on cnbc. you have to stay up late or get up early to watch it. it takes place 3:00 in the morning cet or 2:00 from the uk. billionaire businessman, richard branson jumped into the mix formally endorsing hillary clinton. branson said he would love an entrepreneur to become president, but he said trump is not the right one. he warned a trump presidency would be dangerous as he has had a lot of disasters with his companies. hillary clinton's running mate, tim kaine, says if elected the clinton/kaine administration

will not fol ratolerate the abu wall street. he outlined plans for regulating american banks. >> we are very, very committed with respect to wall street that the kinds of abuses that led the american economy to go into a freefall at the end of the last administration, we're not going to tolerate that again. we'll make sure we keep protections and guardrails in place so that the american public is protected. that doesn't mean we're not going to listen or make the regulations work in practicality, not just in theory. but the differences between the two tickets on this is very, very sharp. we'll maintain dodd-frank and try to strengthen it. the other guys want to get rid of it. morris, thanks for your e-mail questioning downward trends. keep your questions and comments coming through. we're on e-mail, you can also find us on twitter, @louisabojesen.

also nice to hear from you. stay tuned for an interview with the handelsbanken ceo, anders bouvin.

good morning. welcome back. you're watching "street signs." i'm louisa bojesen. goldman sachs share closing up by 2% on the back of better than expected third quarter earnings. the bank reported a 58% jump in profit boosted by a rebound in revenue from trading picked income currencies and commodities. earnings per share rose to $4.88, beating expectations by almost a buck. goldman's cfo attributed the strong performance to a lack of headwinds as well as the low bar set by 2015's third quarter. we will speak to the ceo, lloyd

blankfein, at 8:40 p.m. cet. u.s. banks have been reporting better than expected earnings, while problems continue to plague european banks. we asked if a lack of reform in the eu was holding the region's banks back. >> i think are incremental challenges of being a european head quartered bank relative to a north american headquarter bank. let's not forget when ultimately article 50 gets exercised, there will be some important shifts as it relates to north american banks which are substantially headquartered in london and passported into europe. on a macro level, regulations in europe are definitely more of a he headwind for us. overtime that will balance out.

handelsbanken has posted third quarter profits. the swedish lender saw profits for the period rising to 5.7 billion. joining us on the phone from stockholm is anders bouvin, ceo of handelsbanken. a rise in third quarter net profits, 4.6 net profit, operating profit in line with expected what are some main highlights you would draw out from this earnings set? >> i would like to mention that the stable growth, organic growth that we are are seeing in handles bank in line with what could be expected from the bank as we look back in time. branch by branch, customer by customer, we see this in all six home markets. >> you're the third ceo in just over a year for the group.

on one hand you have to cut costs because of the lower rate environment, sweden going negative in interest rates before other places. on the other hand, you have to keep credit quality high. how important is cost discipline going to be going forward? especially when glancing at sved bank looking at a ratio to expenses in the region of 43% which is better than yours? >> i think cost management in handelsbanken is a part of our business model, not a campaign. cost cutting campaigns started and ended while we focus on costs continues. we can see the cost income ratio is very low in handelsbanken and has been for a long time. >> yes. again, a lot of your competitors are closing branches, focusing more on digital. do you think you should be doing similar? >> atelsbankenhandelsbanken, we

higher return equity than peers. we believe that's due to a different bottle where branchs are really the bank and all decisions relevant for customers are made locally at the branches. we are already today digital. 86% of all contacts with the bank are digital. this is nothing new. in the future we believe the differentiator will be the branches and the relationships they maintain throughout the home markets at handelsbanken. >> when i look at the swedish economy there are expectations for growth in the next quarter, somewhere in the region of 3.4, 3.5%. strong growth angties pate tici the same time eve seen a plunge in the swedish kona.

do you think they need to stem this huge drop? >> i don't think the priority of the swedish bank has been the swedish krona. it's anyone's speculation on where they will continue to go. i agree with you the low interest rate environment in sweden will prevent some challenges. >> let me stop you, if you could speak right into the -- right into the microphone piece of your phone. it's a little bit muffled, but i really want to hear this. >> yes. as i said, i'm not sure if you heard me, that at the moment the priority of the swedish central bank is on keeping market interest rates low, not so much on the swedish kron. it does present challenges.

at handelsbanken we can mitigate the negative consequences of this well. as you've seen on net interest income, the quarter was up 3 percentage points. >> yes. i'm looking at the handelsbanken model and how it's incredibly important for you to stay de-centralized in this environment. why is this so important? >> because customers like meeting and dealing with people who make decisions. we're not a product-led organization. we're a customer-led organization. we built a bank around what customers want from a bank rather than building a bank and telling customers they have to adopt to the bank. we know that. in every country where independent customer satisfaction surveys have taken place, every year we have the most sats fisfied customers.

in the uk we have 207 branches. not because we take undue credit risks but because of the model. the model works. the model is based on value relevant today as ever were, and i would say in many cases more relevant. you mentioned the ik uk operati. you were leading in the uk operations before taking over in your ceo post. i noticed a six-fold increase in the uk in terms of the amount of branches over the past decade. how is a brexit going to affect you? >> we don't really see that brexit will effect us negatively at all. again, the reason we are growing in the uk is a different way of running the bank. brexit doesn't affect that. we think in our market share,

it's still very small in the uk. i think that we are optimistic about our future growth opportunities in the uk. brexit doesn't change anything. >> anders, thank you very much for being with us today. anders bouvin, ceo of handelsbanken. good morning to everyone. robin, simon, john, paul, jeoffrey wrights in. mo morris. lines are open. find us on twitter, @louisabojesen. we're on e-mail as well for the slightly longer e-mails. we've been showing you european equity markets this morning opening slightly mixed. we remain mixed with most of europe, just trading in slight negative territory. we have the ecb meeting of course tomorrow, thursday. the question is whether or not mario draghi will be pushing back against talk of tapering in asset buying.

so we'll bring you that live via ecb tomorrow in trade. here in the u.s. we're setting ourselves up for a slightly negative open. the implied open on the right-hand side of the screen. guess what? out of the 52 companies reporting so far of the s&p 500, 81% have outperformed. 81% out of the 52 companies have outperformed according to data. that's it for today. we'll see you tomorrow, same time, same place. have a lovely afternoon the tune in to that last presidential nominee debate tonight, 3:00 a.m. if you're watching from europe. 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. earnings central, dozens of s&p 500 companies ready to roll out results today. china's economy growing 6% year over year in the third quarter, in line with expectations. and a showdown in las vegas, hillary clinton and donald trump will face off tonight in the final presidential debate. it's wednesday, october 19th, 2016, and "worldwide exchange" begins right now. ♪ good morning. welcome to "worldwide exchange." i'