good morning. here are the morning's headlines. >> the devil is in the detail for the oil markets. crude prices paring gains after opec technical teams last night failed to agree on the exact terms of production cuts for members. >> bump for the trump rally. europe trades lower with basic resources leading the declines. the market takes its cues from wall street as the s&p 500 sees its biggest decline since the election.

complicated chemistry. shares in actelion hit bottom of the stoxx 600 as a report suggests the swiss biotech firm is considering a deal with johnson & johnson that would allow it to stay independent. no liftoff for lufthansa. shares sinking lower after the german airliner faces a setback in the courts in its bid to block yet another pilots walkout. you just saw steve there. we'll be crossing straight out to him now. opec's technical team is said to have failed to agree to details of an oil output deal. those reports are having a knock-on effect on prices. slightly lower. not a huge reaction but pulling down a tad. off shy by a percentage point.

steve people are saying the market is pricing in we're not getting a deal this time. >> i would probably disagree with them, which is not a rare occurrence. i think the market is beautifully priced to go either way. let's look at the recent history. doha failure earlier this year, algiers, a degree of success in september. when the market didn't think there was going to be a deal, it was around 43 bucks. when they thought, yes, we'll get up to 53, so sitting at 48, i think we're beautifully priced for a move in either direction. a binary decision. the problem is, of course, the market will not get a binary decision. the market would love to hear there will be a big cut or we're not going to have a cut. the market can make a clear decision on that. i think we'll get something muddier, opaque, and if saudi

can get allies to cut or a freeze, then we'll see, but the devil is in the detail, the quota, if there is a deal, that will be difficult. we had wonderful kenshow data looking at cuts over the last eight years. it's difficult to see the market gaining on the back of a cut unless it becomes clear who is doing what and the longevity of this as well. the question is when do they cut and when do they cut forward? in 2017, a lot of people are saying we need more oil on the market so satiate the growing demand. this year demand ran about 96 million barrels, next year, it's as high as 98 million barrels a day. so there needs to be more oil on the market or the surplus could be get satiated in 2017. i was in istanbul, spoke so the

uae oil minister and let's hear what these gentlemen think is the current state of play. >> anything is on the table when we meet in that closed room. we did not meet officially to discuss it. we hear the rumors that you hear, but we're ready to discuss any proposal provided that everyone is participating. that's the fair statement from doha. >> the value of all the markets increased because the announcement that russia was cooperating with president putin and the position we want to work together, open the door to get a consensus. >> translator: i think we're having these discussions in the right context. we've been discussing the issue of competition because of

efficiency. >> a lot of people are saying this is one of the most important opec meetings in years. i won't disagree, but it feels a familiar meeting to me, ie russians potentially coming into town to talk about a deal but walking away again without cohesion, division between tehran and riyadh. riyadh and allies pushing others to get production cuts, and a host of other ministers from libya to nigeria and iraq to keep production where it is or up it to pay for civil strife. there are a lot of big similarities to meetings i've been to over the past few years. >> i know it's cold out there, hard to get your mouth to work when it's that cold. i spoke to somebody yesterday who said he thought the one -- the key player to watch is iran.

then we talked about whether the relationship between saudi and iran got better and whether the saudis like the new administration stateside to stick to the iranian nuclear deal as well. it's a separate issue but plays into the political relationship. is it your impression that the relationship between saudi and iran has thawed a bit? >> i don't know. i think that's a very, very good question. i don't know the answer. i think there's a lot of contention publicly and privately between tehran and riyadh as well. i know the oil minister of iran was saying it would be easier to get policy if politics was taken out of the equation. let's face it iran is trying to build up its economy, its infrastructure. it says it wants 4 million barrels a day before it thinks about freezing or cutting production. it's around 3.7 now. you can understand where in some ways they feel they need to be.

they've been with sanctions for many years, unabilile to grow, those sanctions have come off the table a bit, but they're terrified that they might not be able to get the oil out in time, before unburnable assets or stranded assets. also concern in tehran befoaboue election of donald trump and what it could mean for their country and the return into the international system. the third point is it's not just about tehran. a lot of people are trying to typify this meeting as tehran versus riyadh. i see it as one situation as to what's going on in baghdad and how they want to grow production. nigeria in a crisis situation. they want to grow. other libyas such as angola. so everybody, including

venezuela want more petro dollars. do you get that by higher price or more production with a lower price. very important point to note is under the new policy which started november 2014, opec has grown production by 3 million barrels a day it's only about the top million of that that is seen as overproduction. back to you. >> steve, thank you very much. i think i saw a tweet early this morning of your little fresh faces trying to stay warm. so, do keep warm. keep the team warm. we'll chat soon again. steve out in the cold there in vienna covering opec for us. let's move on and look at what european equity markets are doing. pretty mixed on the open. we saw european equity markets sliding a bit. down by a tenth of a percent or something like that. looking now at ftse 100, xetra dax off a tad. the cac 40 and ftse mib just a

bit higher. the sectors, retail, construction, banks trading up. maybe the retail sector is a little bit of a fourth quarter play heading into the holiday seasons. i actually bought christmas presents online yesterday, can you believe it? first time ever. autos, oil and gas and basic row sources off bay percent and a half. actelion is considering a highly complex deal to combine with johnson & johnson's pharma division to create a biotech giant. that's according to a report from the financial times. this after johnson & johnson confirmed last week it was in preliminary talks with the swiss drug company. if agreed, j&j would become a major shareholder in the combined energy, while actelion would retain independence from the u.s. term. maersk and dong energy are in talks to merge their oil and gas operations. they are discussing a tie-up to create a $10 billion oil giant

in an attempt to gain strength on the back drop of weak crude prices. it came after maersk talked about spinning off energy assets in september and dong talked about getting away from fossil fuels earlier this month. amid patel is here to make sense of everything. let's start with i'm and just coming off the back of our expectations for an opec deal or maybe our underexpectations of a deal. do you think we'll see a big impact on some of the oil related stocks to an opec decision one way or the other? >> i think you got some tension in those names regardless. a lot of uncertainty in all of those names through this year. without a doubt, that's whatever the result and the outcome is, you will see some of that tension unwind. it's a risk/reward.

>> i know you're not an oil analyst, but when you look at the plays, the basic resources sector, some of the underlying commodities off the back of expectations of a more hawkish fed a trump administration, is that an area where we think more money will be flowing to given trump's indication that he would like to deregulate this sector stateside? >> i think the post trump environment is an interesting time for markets, a big driver. my sense is over the last couple of days you've seen that sharp rally in construction, cyclical names, as well as a big spike in bond yields post trump, that's eased off and taken a pause for breath. whether that's a pause for breath before they head higher, while they figure out what trump really means, and whether people take profits and you see a reversal of that, that's a tough one to call. i think frankly your risk/reward in trying to call that is tight.

so we're trying to look for risk/reward in other areas. >> where are you looking? >> what's happened with the rise in bond yields is a lot of quality names, which often viewed as bond proxies, and incorrectly so in some cases. a lot of those sold off with that spike in bonds. and, you know, the de-rating of some of those names is not really corresponding with the -- there's no real change in the fundamental story. so we think if you have a list of names you can look through and think about whether or not they now appear cheap, they moved because of positioning sentiment, that, for us, is a fertile hunting ground for quality names. >> i mentioned i bought christmas presents last night online. all my friends children supposedly i have christmas presents coming for them, which would be amazing, not having to brave the storms of people out there. you're a fan of the logistics companies up to this shops

season. >> we think that there's a lot of stuff going on in logistics. we have been actually very cautious on the logistics companies for different reasons. there's a massive boom in online shopping. that's not a surprise to anyone. we're seeing another data point on this christmas and black friday and everything else. what's interesting is that that massive rise in volumes is attracting the attention of silicon valley. you've seen silicon valley players jump on this bandwagon and infiltrate this market. amazon spent billions building out their network in the uk. doing the same in germany. uber launched various arms like uber rush, uber freight, uber cargo. they have their eyes set on this industry. in contrast, i like the logistics companies. we think the incumbent players are at risk from being massively disrupted by these engines.

whether it's fedex, u.p.s., royal mail, one of the preferred ways of selling this -- playing this disruption theme, we think that what looks like a great boom for the industry could be it's downfall. >> it's about thinking about who the potential players could be bought up? >> i'm not sure if you're amazon you'll be buying them up, just displace them. >> can they handle everything on their own? does it make sense when they are building out as well, whether, you know, it's not just organic growth but inorganic growth. >> if you own those incumbent names, a lot of those shareholders have not quite digested the impact this could have. they don't need to be completely displaced, they need to have the pricing dynamic shifted enough to really have an impact on the earnings outlook. >> sounds interesting. i think you're probably right on that one. let us know what you think.

ameet, thank you very much. ameet patel joining us. you can find us on e-mail, "street signs" stre streetsignseurope@cnbc, we have a twitter feed going on, or find me directly at @louisabojesen on twitter. before you run off, take a listen to this. pope francis met the prominent theoretical physicist and atheist stephen hawking yesterday. hawking gave a speech titled the origin of the universe during the conference of science and sustainability. the pope stressed the lack of determination of enforcing international agreements for the protection of the environment. the world's oldest person just got a little bit older. em msh emmma mirando, the last person

born in the 1800s is celebrating her birthday today. 117 years old. the italian born in 1899 says her secret to longevity is down to good genes and diet. apparently she eats two eggs a day and a couple biscuits. imagine being born in 1899 and what you've seen, the first car or cars in general. first airline. >> huge amount of change indeed. >> massive amount of change. >> cars might change again. >> cars will change again. if you were born in the '70s, the '80s what the world will look like 100 years from your birth. i had a great-grandmother once who lived off the little chocolates with whiskey inside. >> i had a great-grandmother once, too, but i never got to meet her. >> coming up on the show, as

south korea's political crisis deepens, we'll hear how investors are reacting. we'll talk more about the oil market. we have an analyst coming up on oil. and we'll cover cuba a bit later on, too. super interesting what's happening with u.s./cuban relations.

welcome back. you're still watching "street signs." i'm louisa bojesen, i did recommend a book yesterday. a number of you on twitter picking it up. called a world without us by a gentleman named weissman. it's about what happens our planet if we were suddenly not here. by all means, you can pick it up. a uk regulator said it is proceeding with separating ofcom

from bt. bt said it was open to the proposal for a legal corporation and have the proposal -- a model that's fair, sustainable and proportionate. a german court rejected lufthansa's request to issue a temporary injunction to block another strike by the pilots union over a longstanding pay dispute. the company warned that an additional walkout could result in the cancellation of 1700 flights. they already have canceled tons of flights. the uk prime minister is hoping for a quick and formal deal on britons lives in the european union that have been nixed by the german chancellor. angela merkel is saying there will be no assurances with respect to their rights, residencies, work an healthcare after brexit. that declaration came after a

meeting with theresa may in berlin earlier this month. speaking of brexit, have your cake and eat it are among the words scribbled on a handwritten note snapped by photographers outside of downing street. the memo was in the hands of an aide to conservative mp mark field after he left a meeting with the brexit time. other words on the page include french likely to be most difficult, another quote, looking at a canadian deal. and another quote, unlikely will be offered the single market. for those of us who have forgotten our notes somewhere as i did many, many years ago, it can be horrible feeling that somebody is looking at your personal scribbles that mean something to you but would be understood in a completely different way. so, any way. britain will be feeling the

impact from brexit more than euro zone counterparts, that's the thoughts of mario draghi. when asked about the economic recovery in europe, mr. draghi suggested that the central bank would decide to continue its monetary easing policy at its final needing of the year. >> our monetary policy meeting in december will assess the various options that would allow the governing council to preserve the very substantial degree of monetary accommodation necessary to secure the sustained convergence of inflation towards levels below or close to 2% over the medium term. now, italy's finance minister has sought to reassure investors ahead of the company's referendum.

he said it's natural that markets are confounded by the pressure governments are facing. he said the state of the italian banks are well known as the sector suffered steep losses yesterday again, per share. these particular banks are not worth all that much. bmps worth the most that you were looking at. take that into consideration when you look at the percentage changes. and south korea's president, park guen-hye, has asked parliament for a way to come up with her to relinquish her power and shorten her tomorrow amid the country's deepening political crisis. chery kang has more. we could be looking at political changes to come. >> not just yet. basically what she did today with her speech was tossing the ball to the national assembly, asking the national assembly, the lawmakers in south korea to

tell her when and how, and she is willing to resign, but, yes, she did say this is to minimize the political confusion and vacuum. basically she's asking them to decide her fate for her. she said "i let go of everything now." but she didn't exactly -- she didn't seem to do that, because while the speech, the rational behind the speech could be many, she may want to step down in a more honorable way rather than be impeached, and she's holding on to that immunity she's given when facing prosecution questioning. that's why political parties are divided in their reaction over the speech. opposition parties, as you can imagine, are saying this is a ploy to avoid being impeached. they're saying they'll still go ahead and put together this

impeachment motion, and put it up for a vote addres early as t friday. her own ruling party says we need to give the speech consideration, let's reconsider this from scratch. that's what we need to watch for this week, with the impeachment vote put up for a vote as early as this friday. will they garner enough yes votes from ruling parties in korea. in korea, they need two-thirds of the 300 national assembly votes to say yes, to impeach the president. we have 172 opposition and independent lawmakers. so we need 28 from the ruling party. back to you. >> thank you very much, chery kang joining us live with the latest. samsung is saying it's mulling a split in its business

as it gets set to face the biggest structural change in its 47-year history. the south korean tech giant saying they will buy back more shares, but they cautioned they are neutral about whether to proceed with the changes, keeping specific details of its structural review under wraps. there's also speculation that we could be looking at some type of a split in terms of how the country operates. japan's household spending was down in october for the eighth month in a row, despite government efforts to spur economic growth. >> household spending, which is a key indicator of private consumption fell 0.4%. food items were down 1%. vegetable prices soared in october due to bad weather and poor harvest, and spending on fresh vegetables fell 8.8%. seafood also fell over 5%.

cars suffered a 16% drop from the year before. however the unemployment rate stood at 3% on change from september, and job availability improved to 1.4, which means the number of available jobs were 1.4 times more available compared to jobs seeker. hitting its best level from 25 years ago. it shows how consumers are reluctant to spend even though the employment situation and household income levels are trending upwards. the government says the growing purchasing power of household also lead to a turnover in spending. economists note that ever since the consumer tax hike it has become increasingly difficult to spur spending and may be flat at best. that's all from the nikkei. back to you. >> thank you very much. now waves of uproar in japan as well after an ice rink featuring 5,000 frozen fish was

opened at the space world theme park. the attraction was intended to create the feeling of skating on the frozen sea, but the frozen harbor was labeled as sinful and slammed as unethical and a waste of food. it will close as a result of the public backlash, and a memorial service will be held for the fi fish. kind of agree. you know? we need to respect life on earth, all life on earth. who made us the best out there. we need to take a quick break. check out world markets live. you can find us on twitter at @louisabojesen and on e-mail. we'll see you in a second.

hi everybody. good morning. welcome back. i'm louisa bojesen. you're watching "street signs." the devil is in the detail for the oil market. crude prices pared gains as opec's technical teams failed to grow on the exact terms of a production cut. >> bump for the trump rally. europe trades lower with basic resources leading the declines. the market takes its cues from wall street as the s&p 500 sees its biggest decline since the election. complicated chemistry. shares in actelion hit bottom of the stoxx 600 as a report suggests the swiss biotech firm is considering a deal with johnson & johnson that would allow it to stay independent. no liftoff for lufthansa. shares sinking lower after the german airliner faces a setback in the courts in its bid to block yet another pilots walkout.

>> hi everyone. welcome back. i'm just grabbing data that is hitting our wires right now. october mortgage approvals coming through stronger than expected, and we are seeing some of a pickup in consumer credit growth as well. when looking at the october net consumer lending, we're looking at a figure of plus 0.49 billion pounds versus september where we saw 4.7 billion. net mortgage lending of 3.3 billion pounds sterling, which is exactly where we were in september, 3.3 billion. consumer credit, 1.6 billion pounds sterling, which is higher than what we saw in september where it was 1.5. also higher than what had been forecast. again, we're looking at consumer credit growth hitting an 11-year high in the iuk and mortgage approvals still strong off the back of this referendum vote a

while back. showings that you we're heading for brexit. but we're still seeing mortgage approvals coming through. the government also putting through schemes to help the housing market and first-time buyers as well as coming to terms with lacking housing there is in london. let's take a look at the u.s. futures, we're five hours away from the u.s. market open. if you're joining us stateside. good morning. take it easy. get a cup of tea, settle in. got a while to go before the u.s. markets open. the implied open is for a higher start off the back of a meager day yesterday after we saw stellar gains coming think over the last couple of weeks in the u.s. especially. this is what we're looking at in europe. a bit of red coming on the ftse 100. by in large all the european markets turned into positive territory. we opened on the back foot this morning. when it comes to the fx markets, the main crosses we're seeing out there, got the dollar/yen,

1.12 and a bit. a bit higher. cable, also a bit higher. and you have the dollar against the swiss adding some gains the dollar gaining against the euro. oil prices have been giving up some gains we saw yesterday ahead of the official start of the opec meeting in vienna. the car testimony is hoping to get its first crude output deal since '08. we have an oil market analyst from barclays. you were reminding us it feels like we were talking about algeria years ago, it was just in september. >> absolutely. they've been working on this six-month deal for nine months now. still, as you said, quite a lot of details to be worked on. this could be a deal or no deal that goes up until the last minute. so -- >> do you think a deal will happen? >> it's still very much in the air. i would say the saudi comments

over the weekend that spooked the market in terms of lowering the probability is just classic game theory. saying even if there is not a deal we won't be as hurt as originally stated. it's all about those negotiation tactics at this stage. every country is doing it. iran's been active in terms of its press as well. sort of downplaying the need for a deal. ultimately they do know the consequences of not getting a deal is far, far higher than whether they get one or not. al falih saying the market can rebalance on its own in 2017. can it? doesn't feel like we're at any dramatic place in the price of oil. we plummeted in '08, recovered from '11 up to 14. been somewhere between 80 to $100 per barrel, then now come back d