good morning. welcome to "street signs." i'm louisa bojesen, it's friday, here are your headlines. investors focus on the positives for rbs, sending shares sharply higher as pretax profits recover despite a big net loss and more restructuring charges. a shot in the arm for sanofi, lifting shares to the top of the stoxx 600. the french drugmaker ups full-year earnings guidance and announces a share buyback after a forecast beating third quarter. novo nordisk shares are poised for worst day in over 14 years after cutting cutting its full-year profit forecast amid difficulties in the u.s. market.

the cfo telling cnbc he's struggling to raise prices. >> we've seen a more hostile pricing in the u.s., an environment where the list prices increases will be more modest, at best probably in line with the inflationary business. and ab b inbev drowning its sorrows in brazil, cutting guidance due to weakness in that market as the drinksmaker reports a miss on profits. hi everybody, good morning. it's friday. welcome to "street signs." happy you're with us. we have an hour together to wrap up what we've seen in trade so far this week and to talk to a whole bunch of ceos on the program. you have the ceo of electrolux waiting in the wings in stockholm, the ceo of chantico

global, ceo of proof point. the list is great today. we're looking forward to your company with these interviews. stoxx 600 down a bit here. an hour into trade. wall street closed lower yesterday. still very, very earnings focused. upbeat data from the states, but that's not feeding through. we are just glancing across the board. all the markets trading in negative territory. we have seen a couple of sessions in a row where we've seen minor gains for european equity markets. when it comes to the main sectors out there and where we're seeing most of the activity to the down side, technology off by 1.5%. construction and material lower. oil and gas down a bit. travel and leisure just hanging

on to a bit of positivity. i mentioned the ceo lineup. let's kick off with electrolux. one of the bigger companies that recorded. swedish company, sounded exceedingly optimistic on third quarter expectations. it's exceeded in this matter to postop ra operating earnings of 1.8-k 1.8 crowns. jonas samuelson is with us. you are scaling back your forecast for your important north american market, you anticipate 3% to 4% growth as opposed to 4% or 5% what is causing this pullback? >> we saw weaker market demand in july and august.

that came back in september. so it's just an impact of that slightly weaker summer months. we see good demand, consumers are having more disposable income. housing starts are continuing to improve. we have a good underlying view on the north american market. >> what's happening in europe? you're saying now that you will come in in the lower end of your growth range of 2% to 4%. >> that's mainly driven by the weaker wholesale demand we're seeing in the uk, plus a bit slower growth in the southern parts of europe, spain in particular. but not a major shift overall. most markets continuing to grow in europe. >> and i look at latin america, brazil, argentina. we are looking at a pretty big drop there. why that shift? >> i think we're continuing to see weak consumer demand in brazil and latin america.

we have unemployment increasing, we see also fiscal osterity. that's continuing to dampen consumer demand for the fourth quarter, but then the markets hopefully stabilizing with political stable there. >> having covered the geographical areas that you're focused on, i'm looking at what you're doing with regards to renewables. you have this 50% renewable energy target for 2020. what's your level today? how much percent comes from renewable? >> in europe we're already quite high, but in other markets it's a lower number. so this is about getting the group average up to where we are in europe. we have good traction to get to that 50% number by 2020. >> it's four years. some are saying it's an ambitious green target to reach over the next four years. you think it's realistic? >> we do think it's realistic.

we know what to do, by it requires very significant excitement from our side. very feel committed to that, our overall objective is to cut the total impact on greenhouse gas emissions from our activity and products by 50% from 2005 to 2020. we're on track to reach that objective. >> are consumers willing to pay more for green? i did speak to one of your executives at an event a couple months back in berlin, we were talking about whether or not you can pass on this green direction to consumers. >> i think, first of all, being perceived as a leader in sustainability, which we are, has a positive impact on the attractiveness of our brands which is generally good for us. secondly, people are generally willing to pay for energy

efficiency. if we can reduce those costs, people are willing to pay for that. >> want to come back to north america, it sounds like you're seeing weakness now but you don't anticipate that weakness to stay but you are scaling back forecasts. i looked at the northwestern white goods market, it looks like it has fallen off a cliff when you take the quarter on quarter comparisons. >> we've seen a couple years of significant growth in north america, over 8% for a few years in a row. of course we're seeing that shift down to the 3%, 4% range. it's a natural change in the growth rate. we did have some weak summer months, but again september came back. for it's, the important part is that we underline demand drivers important for us, such as household disposable incomes, unemployment rates, house equity

valu values, housing starts, all of those are developing in a favorable way in america. >> the internet of things, this interconnective household that we're headed household that we're headed towards, where our coffee machine knows that we need coffee, it talks to the washing machine tsh, it can ord without us being there. how far are we from becoming having devices so smart that they know what we want. >> most of what you see is possible to do, but at a cost that is prohibitive for most consumers, and also the hassle that consumers have to go through to get those benefits are still too high. those are challenges that we will overcome over the coming years. i think the future is very much driven by making consumers

experiences easier. if you can take care of your laundry with less hassle and better results, if you can take care of your cooking can less hassle and with better results, those are things consumers want. our job is to provide that with the least -- lowest price and without hassle. that takes time to deliver on, i'm confident that we will over the coming years. >> jonas, thank you very much. jonas samuelson, ceo of an electrolux. i would like an oven that makes a perfect cake every single time. rbs has posted a higher than expected third quarter income of 3.3 billion pounds but it was dragged into a 469 million pound loss thanks to restructuring costs and charges related to past misconduct. the british lender said it would miss a 2017 deadline to sell its

williams and glyn division. bnp paribas raising its capital buffer in the third quarter as it had a rise in net income. france's largest bank was the first among peers to disclose details of the ecb's latest supervisory review and evaluation process which sets requirements for eu banks. ubs's net profit fell to 827 million swiss francs in the third quarter down from 2.1 billion a year ago as the largest wealth manager said political uncertainty weighed on clients minds. analysts were expecting a net profit of 945 million francs. julia joins us now. she's in zurich. we're looking at a profit drop in ubs' year on year figure,s a noting the reserves on penalties linked to the misselling of

residential mbss. >> absolutely. good morning. a lot of things here. as you look across the board, versus analyst expectations, today they beat or were in line. i think ubs believes this is a solid level of results, no matter where you look. we have the diluted eps, adjusted profits better than expected and the challenges that are ongoing for this bank and for all banks here in particular. and ubs don't see that going away any time seen. a bright spot here, given the challenges of negative rates, is what they're doing domestically in switzerland. if you look at their personal and corporate part of the business, they have the best quarter since 2008. i think this is a bright spot. of course the dividends. some concerns out there for investors that perhaps the dividend could slip. they have been talking about 60 cents. when i spoke to the ceo he reiterated we're still on track

with that. that's giving investors comfort today, too. as you mentioned, a rise in provisions for litigation of 490 million swiss. this is important because ubs has also got outstanding u.s. mortgage related litigation issues. and this is what i picked up on with the ceo. i said to what extent of those new provisions to do with mortgage related issues. listen in. >> the vast majorities are nbs related matters. we have different exposures we've been working through over the last decade now, and still ongoing. that's the vast majority of provisions. are you more concerned about the situation with the department of justice in light with what we've seen with deutsche bank in the last month and a half? >> look, not really, because every situation on this kind of matter is different. both from a legal standpoint of

view and every -- and every bank may have its own different situation. so, i'm not particularly concerned because of that. >> what we hear is that of all the banks that are having discussions with the department of justice, you're kind of low down the pecking order. can you comment on that? >> well, i look -- i'm not looking at any kind of queue. i always feel that it is very -- it's impossible to determine the timing of the resolutions of this kind of matter. as i say. things are different bank by bank. >> the risk is if it gets pushed back into next year, you'll be dealing with a fresh administration. do you think that makes a difference? >> well, call me nostalgic, but i hope justice has nothing to do with political influence. >> i think the general belief is that the litigation issues will remain a black cloud hanging over the european banking sector. and a drag on share prices.

but something that is allowed or seeing some element of a rally in the last few weeks has been the steepening of the yield curve and the pick up higher in bond yields. i talked to him about this, too. i asked him whether he thought that this was a beginning of something more sustained a steepening of curves, an increase in yields as we push into 2017. and what impact that will have on bank prices and their ability to make money. listen in. >> well, look, if we look back in the last 24 months, we saw a lot of this back and forth on market expectations. exactly a year ago we were expecting hikes by the fed. one has to be careful about trying to read too much into rhetoric and policies. i think it's true that the momentum seems to be there for at least one hike by the fed. but i would be very cautious before calling off the

quantitative easing and relaxed monetary policy of central banks. >> it's kind of tied what we've seen in bank share prices. if we see steeper yield curves they can perform better. do you think people are getting a bit too optimistic? >> yes. well, of course, but if you are mainly based -- you have a u.s.-based balance sheet and assets, and liabilities in u.s. dollars, i think you have been already benefiting a lot compared to european banks or swiss bank or japanese bank. so it's a fact that it's already ongoing. of courkourcourse, if there is change in central bank policies or the fed, those will benefit the most. >> what we have to remember when we talk about ubs is that they have less exposure to investment banking, shifted very much away from that into the wealth

management business. so when we see other banks, particularly wall street banks benefit, ubs is at some kind of disadvantage. they also crafted the business to be more geared towards europe and asia. once again, the real outperformer is the states. when you bear all that in mind, actually as the ceo said this was a some lid quarter and they're continuing to do the business despite the challenges that remain. they've been talking about that now for about 21 quarters. i don't think they're going anywhere any time soon as far as this company is concerned. back to you. >> julia, thank you very much. julia chatterley joining us live out of zurich. on to something slightly different. back to our earnings stories, danske bank raised its full-year net profit guidance.

the danish lender reported higher than expected loan impairment charges in the third quarter of 157 million danish krone. caixabank posted a net profit of 332 million euros for the quarter as well. and banco sabadell saw net profit in 2016. the fifth largest lender in spain, sabadell continues to see gains from its acquisition of british bank tsb. it appears it's not only the public who are confused about which time warner at&t is actually interested in buying. because the u.s. senate accidentally summoned time warner cable's former ceo, rob marcus, that's time warner cable's, instead of time

warner's ceo, jeff bukes. time warner owns hbo, cnn and warner brothers, while time warner cable is owned by charter communications. awfully confusing. i have to say i don't blame them. on to something completely different now as well. it is friday. apparently dino brain tissues fossilized has been found in a relative of the 130 million year old iguanadon. so scientists are saying the tissue was found in a cast, and is a third of the size of the entire dino brain cavity. incidentally, i was looking at how on earth this could have happened, they said the dinosaur probably toppled over into a lake or swamp and its head was

upside down, and because of oxidizing conditions, the brain tissue was preserved. e-mail the show, streetsistreetsig streetsigneurope@cnbc, you can tweet at me directly, @louisabojesen. we'll be right back. after the break, no cheers for beers as the brazilian blues hit ab inbev.

hi everyone. welcome back. you're still watching "street signs." ab inbev cut guidance as the big markets of brazil and china underperform. the brew posted disappointing third quarter results pulled

down by a 7% fall in revenue from brazil. ab inbev made a net profit of $557 million down from 1.4 billion last year. sanofi raise the its profit outlook after a strong beat in the third quarter. net income for business surpassed analysts estimates coming in at 2.3 billion as it looks for a buyer for its european generics business. sanofi saying they will complete a buyback program by the end of 2017. and novo nordisk lowered its full-year profit outlook citing tough market conditions. the danish drugmaker's third quarter revenue of 27.5 billion krone came in slightly below estimates while profits were in line. the cfo explained why investors were concerned. >> the concern of the investors are clearly related to the

outlook for 2017 and beyond. we have given a preliminary guidance on 2017, which is indicating low single digit growth in our turnover, and flat to low single digit growth percentage-wise in operating profit. that's reflecting an approximately 5% negative pricing impact in the itself franchise. and that's half of novo nordisk. that's a prime concern of the investors. >> steven isaacs is chairman of the investment committee at alvine capital. hi. >> good morning. >> good morning. you heard about how people are concerned about the outlook for 2017. you had the ubs ceo saying it's impossible to read the interest rate cycle as well. >> mm-hmm. have you seen one of these? it's not for you -- >> not for a long time. it's one of the new five pound notes. i'm showing it as an example of how monetary debasement has worked over a number of years.

monetary policy is a lagging indicator. we've now had close to a decade of ultra easy policy. in the last two, three years, negative interest rates, quantitative easing, the kitchen sink thrown at it. it's my view that flow isoming through into the real economy. we're seeing a pick up in inflation. a number of indicators, not just in one country. i think the bond market is the canary in the coal mine. we are moving to a new phase. we have been in a bull market for bonds for 35 years, my entire career. it's a big big wake up call for all of us in the markets. if we go into a proper bear market for bonds, let's say ten-year gilts could go back to 5%, that will make a profound difference to all sorts of expectation and markets that relied on this easy policy for a long time. >> do you think we could end up in a scenario where we have inflation rising but interest

rates don't rise at the same way we anticipate because markets are not ready for it? do we still need this monetary easing? >> central banks will be behind the curve. they are always in this situation. it wouldn't be the first time. the bond market is leading the way to answer your question. central banks, sweden yesterday for instance was talking about easing. in the uk, mark carney's propensity is to ease. the central banks are not easing this process but they're also exhausted. in europe, the beginning of the year there were talks about interest rates being slashed further and further into negative territory, but draghi has been indicating that the fire power doesn't work any longer. if you do cut interest rates more, you undermine your financial system and create other problems. this is a neofisherism, there is a point of interest rates where

further debasement does not help anything. it certainly spurs inflation, but doesn't feed through to the economy. the central banks in a way are the next problem, that's two, three years from now. i think the problem at the moment is inflation. >> what do you make of the big shift that we've seen in bond yields? just looking at what happened over the last 24 hours, a surge in british bond years, eurozone bond yields, treasury saw a boost to a five-month high, now well above 1.8%. >> one of the other causes of incipient inflation is the reali reality that globalization has reached a peak. in iceland, they're electing a political party. that shows the new forces at work, the populous forces at work are upseending this though that you can have a supply chain

across the globe. that's why inflation is so polluted. in the u.s., we have the big one in ten days. >> you think trump is going to winment. >> i think trump is going to win. >> i know a lot of people might disagree with the mathematics of the states, they have to win each state. >> well, i think the first thing is to actually talk about barack obama. barack obama was an unknown senator. a lot of people were concerned that as an african-american he might, in fact, not be electable. but what they missed was life imitating art. there was a successful television program called "24" and in that program, which 35 million americans watched there was a tall, gravelly voiced african-american president making all the right decisions. i think that was one of the reasons why people were able to say, hang on a minute, this guy can do the job. with trump, we've had "the apprentice." we've had trump who became a reality tv star. again, over 30 million people watching it.

literally hiring and firing people, acting in complete command as a presidential star candidate. that's one interesting fact. on the actual polls, i think people understand after the brexit election here, the conservative election in may of 2015, midterm elections in the u.s., israeli elections, it's becoming increasingly difficult to accurately poll. it's particularly difficult to get to people who are perhaps conservative or right of center who don't want to give out their choices to a pollster. >> thank you very much. steven isaacs, chairman of the investment committee at alvine capital. let us know what you think, you can find us on e-mail, streetsignseurope@cnbc, we are live on twitter, @louisabojesen. check out world markets live. it is our blog that runs throughout the entire trading day. we'll see you in a couple minutes.

good morning. welcome back. you're still watching "street signs." your headlines, investors focusing on the positives for rbs, sending shares higher as pretax profits recover despite a big lnet loss and more restructuring charges. a shot in the arm for sanofi, lifting shares to the top of the stoxx 600. the french drugmaker ups full-year earnings guidance and announces a share buyback after a forecast beating third quarter. novo nordisk shares are poised for worst day in over 14 years after cutting its full-year profit forecast amid difficulties in the u.s. market. the cfo telling cnbc he's struggling to raise prices. >> we've seen a more hostile pricing in the u.s., an environment where the list environment where the list

price increases will be more modest, at best probably in line with the inflationary risk of our business. and ab inbev drowning its sorrows in brazil, cutting guidance due to weakness in that market as the drinksmaker reports a miss on profits. welcome back. in europe, quite a bit of red on the screens. markets lower 1% to 1.5%. u.s. futures, trade five hours away, but an implied open, slightly off. just looking at a bit of red potentially to come. we had upbeat data. manufactu manufacturing activity stronger than anticipated, jobless claims, stronger than anticipated. that's gearing up for the third quarter gdp figure from the states that will be published later. we'll watch out for that one. european equity markets, seeing

red today. all of the indexes, equity indexes trading in negative territory. most markets off by a half percent to 1%. when it comes to the fx markets, some stability there with the euro/dollar around 1.09. coming back a bit. been around 1.08 the last couple sessions or so. following on from people moving away thinking that ultra easy monetary policy might not be forever, according to some noises made by the ecb. the dollar/yen around 1.05. the dollar against the yen. and cable, 1.2170. oil prices set for their biggest weekly loss since the middle of september. concerns that opec countries won't agree on an output deal. this is ahead of a technical opec meeting which starts in

vienna today. venezuela's oil minister announced earlier this week that 12 nonopec states have been invited to the meeting. profits into total have beaten estimates in the third quarter as cost cutting effects took hold. an increase in output also helped net profits exceeding expectations despite a fall of 25% from a year earlier. total said refining margins improved to $40 per ton at the start of the fourth quarter. and a worse than expected third quarter loss for eni because of the closure of a key italian field. the company confirmed plans to cut full-year investment by 20% this year. arka solutions have beat third quarter ebit. though the future seemed

challenging, it was seeing signs of recovery. it remains ahead of schedule to boost cost efficiency by 30% by the end of 2017. the ceo of aker solutions joins us. welcome to the show. talk us through your latest announcement. >> pleasure to be talking to you about the results. we did perform quite strong for the company despite challenging market conditions. we maintained market stability. >> so you managed to maintain -- >> the margins stable. >> stable margins. >> yeah. our revenues, top line has dropped as an effect of low activity, but we have maintained margins based on -- >> okay. there are some people who have been worried, i read a number of analysts comments about how margins will support growth

given the pressures we're seeing. >> no doubt we are in the deepest slowdown the industry has seen in history. we've been two years into the slowdown and the market is competitive. as a company, we have strong operational improvement and cost reduction exercise for the last two years. we are seeing the effects now in our results. >> how do you describe what you do? given that you're in the midst of this big reorganization that is taking place with regards to simplifying your units, how do you best describe your company at the moment? >> we are a company that -- we are based in two green fields. so we have now organized to be more efficient and to relate better with clients.

at the same time, be able to capitalize this cost efficiency that the industry needs so badliment. >> let me ask you about orders and order backlogs which is very important for this particular part of the industry that you sit in. how healthy is your order backlog book looking? >> we start the so-called cycle with record backlog for our company. of course to the downturn, the backlog has eroded. but you still have 32 billion nor regiwegian krone. so we still have a healthy backlog considering the land of this moment. >> i note, though, that you mentioned that the projects are being postponed across the industry. where are the signs of recovery or where are signs of recovery seen? are we talking brown field?

>> yes. absolutely. what we see now, is that the brown fields, the clients are producing more at these fa sellisell i facilities which is a wise thing to do. that's the first way to recover in that area. we have come contracts for brown field modification platforms. we see that probably for next year, the green fields might get back into the market. >> luis, thank you very much. apologies, there was a bit of crackle on the line, by thank you very much for being with us. now, the democratic presidential nominee, hillary clinton, made her first joint campaign appearance with first lady michelle obama in the swing state of north carolina. the two sought to highlight the importance of women's issues, and mrs. obama told the crowds if case people were wondering,

yes, hillary clinton is my friend. donald trump toured the battleground of ohio where he spoke of recent wikileak revelations that prove the clintons are corrupt. he said the election should be canceled and just handed to him. >> that would be easy, wouldn't it? clinton almost doubled her lead doubly over trump in a survey. trump trails clinton by nine points. steve liesman has more on the survey. >> 804 americans polled across the country, all demographics, all races, all income groups. let's show you the overall results. 17% undecided, that's down 8% from the june poll. 37% for trump. 46% for clinton. clinton has nearly doubled her lead with the undecideds, plus six for her compared to june,

trump, plus 2%. let's move on and look. clinton has really widened her lead on key economic issues. on the overall economy, she was up by one in june. now up by five. that breaks 43 to 38. on trade, she was up by nine, remains up by nine. this big trade issue for trump, not so big when it comes to the polls. on business regulations, she's up now on the budget deficit she's up and on the stock market, she had a 16 point deficit, now she's seen up one or call it just even, with our democratic pollsters, our democratic pollsters say trump cannot capitalize on the one thing he had going for him which was as a businessman. on the issue of taxes, 43% of americans think they'she'll raie taxes, about even on the

deficit. he's been unable to capitalize on that big economic issue. >> gina sanchez is in the studio with us. good morning. >> good morning. >> so, we were hearing some of the latest polls there from steve. a guest earlier said he thinks it is possible that trump can still win. regardless of what the polls are saying. >> i would doubt that, but what i would say is that people have underestimated t underestimated that pool of voters. the reason i doubt it is because the people that are currently backing trump are a segment of the population that tend not to vote. so, if history repeats itself, these are people who don't make it out to the voting polls on the day of. so there is a big question. the reality is that hillary has been opening up her lead. and you have seen the markets to some degree settling down in terms of being nervous. so, i think if a trump win were

to come from out of nowhere, the markets would be set up for a pretty big drop. >> stranger things have happened. >> here in britain on june 23rdment. >> we've been wrong in polls before. people stay away from voting. and you have a third party coming in instead. that skews it. funnier things have happened. i guess from the math in terms of the populous states that traditionally are democrat, that hillary or have hillary's backing now, that trump would not only have to make headwind in a number of important states already, but also those states that hillary is already running off with so far. >> that's true. the point i want to drive home with investors is that the market is largely priced for a hillary win. you had nate silver come out saying, look, the fact of the matter is that there is still a non-zero chance that trump could

win. it's low, but not out of the realm of possibility at this point. the markets are simply not priced for that. so, i think that's the only real threat to investors right now. >> what do we do then? if it's already priced in, a hillary win, how do we position in the next two weeks? do we do anything at all? has everything been done so far? >> there are a few other factors that will be pushing the markets in different directions. so i think the hillary win could set us up for a rally, but to the degree it's already priced in, that rally might be muted. what could help is that we're starting to see optimism, upward revisions in earnings and potentially the end of the earnings session. that could be beneficial. we are also expecting the fed to take one hike. will that be the end of the world? no, but it means the dollar strengthened. the dollar is putting pressure on earnings. we have opposing forces here. i think at the end of the day

you'll see a rally tsh, it willa muted rally. >> i was thinking whether or not we still have an earnings recession. it seems now, at least when looking at european companies reporting, they're saying there is transparency in 2017 and we have an idea of what's happening, or ceos who are saying we're fining it murky still and difficult to see think how 2017 will look. if you look at the data and current revisions, the revisions are taking us up to about a 2% growth rate in earnings, not great, but still not negative. address you've seen over the last few quarters, while we've been in a recession, we've been getting less and let's negative, a precursor to positive. we've been moving in the right direction. most of that has to do with the energy sector. the problem is oil continues in its range. we've traded up to the top of the range, broke 50. unless we see some major news

out of this opec meeting, which quite frankly i don't anticipate, i think we'll likely de get disappointment and trade back down to 40. i don't think oil goes anywhere. that put us in this earnings recession. >> what do you make of this recent boost in yields? whether it's in europe, in the gilt market, treasuries. >> that's consistent with the dollar and that's consistent with the expectation that the fed will raise rates. now, probably not until february. probably only once and it will probably be up nine months before another hike. i think everybody is trying to exit out of this easy monetary policy as slowly as possible because the fact of the matter is it has had tremendous implications, one of which has been to boost pes over the last many years. so some of that will be taken off the table. i was talking with a colleague who said the perfect solution for the fed would be to take away monetary policy at the point when earnings start to

repair. if you can do that perfectly, then pe should move sideways. but that's not going to be what happens. >> sounds easy. >> yeah. >> gina, thank you very much. gina sanchez, ceo after chantico global. a plane carrying the indiana governor and vice presidential nominee mike pence skidded after landing on thursday evening. trump said his running mate was in grave danger but that he spoke to him and that he would be fine. pence said he would resume campaigning today. cnbc will speak to the governor himself, mike pence, the republican vice presidential nominee, that's today at 14:00 cet. do eu regulators have a new nemesis in the tech giant yahoo!? more on the eu investigation after the break and talking more about cybersecurity right here on "street signs."

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welcome back. you're watching "street signs." baker hughes shares jumping almost 16% after hours after a possible merger with general electric. baker hughes declined to comment on the possible deal. it's the biggest tech tie up in europe and the biggest deal ever in the chip industry. qualcomm has agreed to buy the dutch-based firm nxp for $47 billion including debt. qualcomm's ceo told cnbc in an interview about the importance of putting all of the pieces together to drive innovation in the internet of things. >> if you look at the larger context of what's happening in

the industry, the car and the internet of things, the technology road map and the amount of technology and technological change, is that will occur in both industries, it reminds me of what the smartphone looked like in 2000. everyone was trying to figure out how do you assemble all of the assets to be successful in that huge transition. that same thing will happen in the internet of things and in automotive. we're happy to have the big pieces to drive it. alphabet shares went higher in extended trade after the company announced a $7 billion buyback in the third quarter numbers. john fort takes a closer look. >> reporter: alphabet out with results after the bell that beat analyst expectations on the top and bottom line. revenue came in at $22.45 billion. that's above just a hair over 22 that the consensus expected. non-gaap eps was 9.06 versus

8.63 expected. so, what outperformed? youtube and mobile were big. paid clicks were higher because of youtube, true view advertising, and mobile advertising in general continues to occupy a big portion of the growth area for google. google emphasized growth in the crowd. amazon and microsoft have faster -- larger businesses in the cloud, but google trying to get in there with diane green alphabet board member running that business for them. they're continuing to spend on other efforts, including google fiber which alphabet announced it was backing off of investing in in certain key markets. but google saying that's just temporary. they will continue to invest once they retool. largely overall, growth appears to be on track and profitability

in the core business, a couple things that analysts were looking for is still doing well. for cnbc business news, i'm jon fortt. shares in amazon went in the opposite direction in after hours trade as the company cautioned on seasonal sales. they said profits would be limited in the fourth quarter. the guidance for both revenues and profit disappointed investors. e rushu regulators sent a l to yahoo! concerned about the data breach asking the tech giant to cooperate with all upcoming inquiries. gary steele is here to talk cybersecurity and argen is here also, our tech reporter. this is one of the biggest data breaches in history, that was done towards yahoo, can it be

avoided? >> we've seen the bad actors today operating with a number of motivations, one is to steal valuable information, more exposure and embarrassment in the market. witness what happened with the dnc in the u.s. hackers have lots of motivations and it continues to get worse. >> yahoo possibly not cooperating. sounds like most companies that have incurred data breaches, that they're happy to cooperate in order to figure out how to possibly stop this from happening again in the future. >> there's drive by companies to offer that information up. if you look at what's happening across europe, this new regulation gdpr, which is a relatively brand-new regulation designed to protect consumers data and privacy, that will actually introduce the responsibility of companies here in the eu to expose all of that information and deal with it in a timely way. that's the trend to have that information out for consumers

early. >> gary, we're moving into an ever increasingly connected world. last week, we saw a huge cyberattack in the u.s., a lot of the major websites knocked out there. as we move towards this internet of things world what is the danger here from a security perspective? >> the challenges get much more complicated. what we say with the ddas attack, what it meant was that a lot of devices, all of which were computers effectively operating in a collective way to go drive a big attack. so it means that the hackers can operate at an unprecedented scale. so your refrigerator may be connected to your dvr, all of these things are operated by hackers. it's much more complicated and challenging in the world today because of the unprecedented scale and size of the attacks. >> the companies making these devices, are they taking the right precautions when it comes to security? >> every manufacturer of these devices has to take a hard look

at how they can better protect the consumer who ultimately buys that and puts it in their home. we have a long ways to go to broadly protect consumers as more and more devices are connected, and can operate in conjunction with a broader cyberattack. >> do you have any idea how much more hacking we see now compared to two years ago? five years ago? >> the line is insanely high. there's lots of different stats out there. motivations have grown so high, because you're not just stealing information, you're trying to expose or embarrass or disable what we saw with the attack last week. so, while the numbers are to the great, consumers should think this is much, much worse than it's ever been. >> i always find is interesting, if you're a company and been hacked, for example, or an organization, do you want it known that you have been hacked and that you know who hacked you? or do you try to hack back? i know we're talking about

legalities here, but in terms of how things must operate because it is such a hacking world. >> yeah. the whole concept of hack back, meaning a company is going to take action against the hackers, that's a very complex set of decisions. oftentimes it's illegal. >> yeah. >> because it can be an act of war. if the hacker on the other side is representing a foreign state, you have to be extremely thoughtful. so, while hack back sounds great, it really isn't a reality for most companies today. so, what has to happen is there needs to be better cooperation between private enterprise, governments, and then cross-government cooperation. you mentioned it could be an act of war. we've seen nation states hacking each other. are we at a poent where we're in a cybersecurity war here? hacking war? >> i don't know that we're in a

hacking war but an unprecedented level of hacking activity. what we need to see is, again, broader cooperation between private enterprise and governments. we need to see broader cooperation between governments themselves. because this represents a significant issue to consumers worldwide. and it's global, it's a challenge, it's only getting worse. >> gary, thank you very much. >> thank you very much. >> gary steele, argen, thanks as well. it's the weekend for many now. stay with us. a lot coming up. "worldwide exchange" is up right after this program. let's look at the u.s. futures as well. setting ourselves up for a slightly negative start to the u.s. markets this afternoon. have a lovely day, everybody. ♪

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good morning. earnings alert. amazon shares drop on weaker than expected earnings and a disappointing holiday season forecast. tech talk. google and alphabet beat the street. and sweet home, chicago. the world series heads to regularly field tonight. it's friday, october 28, 2016. "worldwide exchange" begins right now. ♪ good morning. welcome to "worldwide exchange" on cnbc. happy friday. i'm sara eisen. >> you really meant that