good morning, everybody. welcome to "street signs." i'm louisa bojesen. >> i'm carolin roth. these are your headlines. >> the french presidential candidate is summoned by magistrates after postponing an important campaign fixture. more money, more problems. shares of man group fall despite strong inflows. bad chemistry between bayer

and covestro. and president trump promises tax relief but doesn't ignite markets by providing concrete measures. we'll speak to john w. snow in about 30 minutes time. good morning. welcome to the show. the french presidential candidate, francois fillon has reportedly been summoned by investigating magistrates. his team will make a statement noon cet. earlier this morning he postponed his visit to the paris agricultural salon, an important fixture on the campaign trail. yields are pointing higher, but spreads have been widening in general on political uncertainty. on top of that also -- >> this morning i'm seeing the french german ten-year yield gap is narrowing after the news that

fillon was summoned. we're seeing a narrowing of the yield gop thap that has been wig over the past few weeks over perceived political risks out of france. joining us on the phone is a political science professor from paris good to have you with us. explain to us why it's such a big deal that a french presidential candidate would cancel going to an agricultural fair. >> reporter: first, this agricultural salon is an annual meeting where most of the politicians show up, they show how they are caring about the agriculture obviously, but this year in particular there's a presidential election, and in the case of fillon we could get two explanations. the first is the cancellation of

today is not the only unexpected change in the agenda for francois fillon. the campaign has become almost impossible to carry out since the revelation about the -- and people go there to demonstrate what he did. the second explanation could be that the judges are going to announce something very big, it could be a formal investigation. it is there already, but it could be the next step, a formal accusation it could be that francois fillon will be presented to the judges today also. >> he's indicated in the past if it went to a deeper formal investigation involving his wife in particular that he wouldn't be interested in this happening. are we thinking he will be pulling out if that's the case?

>> yes, in the beginning this was one of the first statements of francois fillon, if i'm under formal investigation, i will step down, drop my candidacy. more eventually, though, fillon gets very sharp, very tough position, which is i will go to the end whatever. so it is just that the party, they have not a plan "b," and it looks like francois fillon is under formal accusation it will be a cadisaster for the party. >> what if he is forced to pull out, if we get the confirmation of the more formal investigation. who would benefit the most? >> it could be that the most benefit would be for marine le pen. marine le pen, she's leading the voting, more eventually she got 27 for the first round of the election and the climate, the

mood of the campaign, which is obviously in the benefit of marine le pen, she's claiming the system is against them, the system has a conspiracy against them. the second who could benefit from that is emanuel macron. >> bruno, thank you very much. bruno cautres a political science professor. here to talk more about what's taking place is carolyn simmons, deputy head of the uk office of wealth management. how does something like this factor into your uk investment prospects when looking at political risks coming from europe? >> the main way the politics has been playing out through the equity markets is on the currency side and the impact

that has on companies if there were expectations that marine le pen were to get in, you would want to probably be expecting a weaker euro, which means you would be avoiding the uk companies with a high you'euro exposure. >> that's something you're advising at the moment? >> we have a 40% probability of le pen. the best case is that she doesn't get n but there's a 40% probability that she could. >> what about europe in general? everyone has been overrating the u.s., overweight global. where does europe fit into all of this given the political risk? >> it's really important, despite the political noise, not to lose track of the fundamentals and the economics. and the global recovery has been led by the u.s. that's one reason why we're overweight the u.s. things are improving in europe, but the earnings outlook linked to the growth outlook in the

eurozone is slightly less certain. >> you've done some work on dividend stocks. with bond yields being all over the place, rising, falling, one day a safe haven, one day they're following the reflation trade higher. what do you want to do with dividend stocks? >> we have seen a pick up in bond volatility, so taking a diversified approach is the best way at the moment. so across a wide range of sectors. we do think that a dif den strategy can outperform the market. >> caroline, thank you for that. let's get to some corporate news. bayer's gain is covestro's pain. the german maker of aspirin has placed 22 million covestro shares after the stock nearly tripled since the spinoff of the business this will allow bayer to reduce its debt and help

funded monsanto. take a look at what's happening to shares of covestro. off by 7% almost. and shares in man group not doing much better. they hit the bottom of the stoxx 600 after they posted a full-year pretax loss of $272 million. the company was pushed into the red by steep decline and performance fees and one-off impairment charges. however man group's inflows did rise to $1.9 billion. shares off by 4.9%. at one point they were down by 9%. gemma has joined us around the desk. what's the problem with man group? inflows are healthy. is it really just specific to the glg fund? >> there are a couple problems. inflows are healthy for 2016 as a whole. they disappointed over the last three months. if you look into -- there are net outflows for the fourth quarter. if you look to where they were, what was slightly concerning is the strategies on the long side

did face some outflows. that's one of the strategies they're focused on, moving more towards as they move away from the more discretionary funds. there was some concern there. also a big writedown and implications for glg surrounding that. generally speaking fees are a big issue. not a big issue for just man group but broadly across the injury. if we look at data from last september, talking about the average management and performance fee, it's gone down from 2 in 20 structure to more like 1.5% on the management side and 19. not a huge change but it stacks up when you talk about billions of dollars under management. >> let's get out to annette who is at a gathers of the fund world in berlin. annette? >> hi. yes. it's exciting here. everybody is talking about trump, of course. the speech he delivered yesterday night, what that all

means for the markets. i'm joined by the ceo of oak hill advisers. i will directly put that question to you. what are you making of that speech? >> i thought it was a pretty impressive performance. i think the first six weeks have had some ups and downs in the trump administration. but i thought last night was unifying. i thought it was presidential. and i think that it has a pro growth agenda. that's what the markets have liked since the election. so i thought if he could actually execute what he talked about last night, obviously some have criticized not enough specifics, but i thought that the spirit, the tone, the way he delivered the speech was positive. >> for your markets, they like the distressed market, it's not a positive that the economy is doing better than expected. >> clearly the u.s. market has greater growth prospects today. with the energy markets turning in the u.s. there's less distress than a year ago. that being said, there's a lot

of pressure in europe. we're seeing lots of opportunities in the italian banking sector. we're seeing opportunities in german banks selling portfolios, shipping, renewables, real estate. we're seeing opportunities in spain. while the u.s., i think, is on a better growth trajectory today, i think there's a fair amount of uncertainty in europe. to boot, there's the back drop of what happens in french elections and german elections so still uncertainty in europe. >> let's talk a bit about italy. you're looking on nonperforming loans as well, yeah? >> yes. there is more pressure today on the italian banking system from the ecb to sell assets. and it's almost sell assets at whatever price you can realize. as a distress investor opportunities are the greatest when there are forced sellers, but we think there's lots of opportunity in the italian banking market. we're looking at a number of

real estate transactions in italy, and we think there's enough dislocation in the italian banking system that there will be good opportunities for investors like ourselves. >> moving on to germany and the shipping loans, is that the same situation? are the banks in better position to offer better prices? >> the german banks have been reluctant to sell over the last couple years. what we're starting to see, maybe because equity prices have bounced and because of ecb pressures, we're seeing a willingness to sell some of those portfolios. there's some large multibillion dollar portfolios across shipping, real estate, we new e renewables that we've been deeply involved in reserves are getting close enough to a level where transactions can happen. we think there's good opportunity there. >> one last question on 2017. what is the overriding theme for the market? >> that's a big question. the first thing i'd say is

really whether or not trump's pro growth initiative is successful. if it is, the next question is how much do interest rates rise? i think there could be a positive scenario from having good growth without too many rate increases in the u.s. the offset in the u.s. side for a theme is whether or not there's any major geopolitical events which brings you to europe. i think the elections in europe are significant if there's a frexit like a brexit, that could be destabilizing around the world. the chinese government has some elections -- not elections, but changes perhaps in some leadership towards the end of the year. i think it's geopolitical versus domestic u.s. growth and how rates stabilize. there's good opportunity. the only thing i would say from our perspective is that the markets have noticed this opportunity. the markets have appreciated quite a bit. the question from our perspective at this moment, as a

general matter across the credit markets is has it already priced in a lot of those gains? the upside-down -- from our perspective today away from distressed and broader credit, we're de-risk portfolios. >> thank you very much for your insight. carolyn, you see a lot of topics here at super return. nor come from us later during the show. >> annette, thank you very much for that. by all means, get involved. e-mail the show. for those of who are longer winded. the address is streetsignseurope@cnbc.com. for those of who are concise, you can find us on twitter, streetsignseurope@cnbc and @louisabojesen. >> and @carolincnbc. still to come, greece resume bailouts talks as the prime minister takes a swipe at banks. that's after this. don't go away. runs on intel?

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markets are generally higher today. one stock trading lower is zalando which announced its first move into physical stores. they are acquiring basketball chain kickz and says it expects to invest 200 million euros and create 2,000 jobs this year. the announcement came as they reported a 26% rise in fourth quarter sales and forecast a 5% to 6% ebit margin range. and moncler sales were boosted by strong performance in china, south korea and the u.s. with revenues coming in line with expectations, the luxury outerwear maker proposed it would pay a dividend of 1.08 euros per share. greece is braced for fresh

austerity measures in a bid to unlike further bailout funds after talks with lenders resumed yesterday. the greek government announced cuts to income tax breaks and pensions after negotiations stalled between the eu and imf, this in part due to a disagreement of the country's fiscal goals. prime minister alexis tsipras blamed the economic crisis on the lenders. >> translator: the crisis started from banks inability to provide liquidity to the economy and will finish and end with inability. this is the framework as we see how we, banks, governments, social agencies, professional bodies, chambers can work effectivelimey me effectively. now we have to work together. is it fair to blame the lenders on a big part of the

current crisis that greece is facing? >> you have a problem. when the austerity measures and they were in the program for seven years. this is a world record. this made our society feel tired. mistakes have been made from both sides. from our side, we never really implemented all the reforms. and from the lenders sides because they didn't understand how the economy was working and what they could really do and what they could not do. for us it's not important who has the blame. for us, what is important is how our country will exit the crisis. how are people are going to have a better future. i hear mr. tsipras say imf is to be blamed. let's say imf is to be blamed. but will this make our life better? we say no. we have to find the solution and exit the crisis. that's what the new democracy is proposing to the greek people.

>> is new democracy willing to take on quite a bit more austerity in order to continued to get some of the bailout funds still needed? >> greece doesn't need more austerity. greece needs real liberal reforms. we need to transform our country to a business friendly country. when you hear elections come to greece, you have to expect that the new prime minister will transform the country to the most business friendly greece was ever. if you want to buy greece, by greece now. it's cheap. when the new prime minister comes, our economy will go much, much better. >> your party is doing well in the polls. you're leading by double. i do wonder isn't this another protest vote? one that we've seen two, three

years ago? isn't this a vote against everything that has gone wrong and not a yes for you? >> during this crisis, all the old parties of greece melt down. only new democracy survived. why? we have some voters that trust us, even in the hard times. so now we feel confident that if we take their vote again and take the government as we think we can do this job, we will really change the fate of our country. our people need a vision, have hope, and feel better about greece. greece is a wonderful country. i'm not saying that because i'm greek, but it's a wonderful country. we have to do miracles. we have to believe in ourselves, liberate our country from all the bad economical diseases of the past. we thought we could do everything from the state. we thought that we could take

money from the state and not be worried about how the country would find this money. we will change that. new democracy will change that. >> how do you feel about comments coming from the german finance minister, mr. schauble, who says greece will never be able to fulfill the reforms? >> all the discussion about frexit is over. greece will stay in the eurozone. i'm sure mr. schauble understands that. maybe some people in germany say that to pressure greece, maybe. in the real world nobody believes that greece will exit the eurozone. greece is a member of the eurozone and will stay in the eurozone. >> you say this and i look at the charts of the ft posting about how much money greece has pulled out of banks. are you certain you can avoid a new round of banking crisis?

>> mr. tsipras has a responsibility to close the review as quickly as possible. maybe he's right, the lenders have many responsibilities, but the truth is the truth. we have to close the review as fast as possible. as long as mr. tsipras is the prime minister, i hope not for a long time, he has the responsibility to close this review as fast as possible. if he will not close the review, there are -- our economy will face problems. the uncertainty is something nobody likes when it happens for his money. >> given the delicate situation you're in now, and debt repayments that are needed, trying to get the next bailout, are you worried about a possible populist backlash happening from within europe with these general elections coming up in france, holland, germany? is that going to have an impact on greece? >> we should have closed the review before entering 2017. everybody knew that the neth

netherland elections, france elections, german elections will complicate things. but unfortunately mr. tsipras and the lenders were unable to find a common solution in 2016 it worries us, but at the end, logic will prevail. nobody would like to let greece, after all this effort, all these loans, to be bankrupt in july. i think at the end there will be a review. greece, we hope, will enter the qe program and we will be able to stable our economy. >> how much of a difference would that make for greece to enter the qe program? >> the qe program is important for our economy it will give us a chance to exit the markets faster and to be able to take the money we need ourselves without a new program. it's very crucial for our economy to enter the qe program. we're already too late to enter the qe. i think mr. draghi wants to help

greece. i read this morning in an important greek newspaper that mrs. merkel wants to help greece to enter the qe. i hope this is true. >> thank you so much for that. we'll have to go for a break. check out world markets live, our blog which runs throughout the european trading day. we'll be back after this short break.

hello. welcome. you're still watching "street signs." here are your headlines. we're looking at the french presidential candidate, fran fi francois fillon who was reportedly summoned by magistrates. more money, more problems. shares in man plunge after a loss on steep decline. and bad chemistry between bayer and covestro. and president trump promises tax relief by doesn't ignite markets by failing to provide concrete measures. we will speak to john w. snow in about 30 minutes time.

all right. let's get straight to some uk data. uk manufacturing pmi falling to 51.6 in february the lowest reading in about three months that compares to a print of 55.7 in january. the reuters poll was looking for 55.6. so below expectations and the first month to month decline since august. that's according to unicredit. that means that the market might be fearing that the confidence among uk businesses is slowing somewhat despite the fact it has held up relatively well. this might be the first turning point. i don't want to read too much into it but do keep in mind we did see slight weakening on the month on month basis. we got uk mortgage approvals, which increased, but consumer credit growth is slowing once again a quick look at the markets. kicking things off with u.s. futures. yesterday the dow snapped the

12-day winning streak. that was the longest in about 30 years. the s&p 500 this morning seen up by almost 12 points. the dow jones set to add 91 points. the nasdaq seen higher to the tune of 27 points. we didn't get too much detail from donald trump in the speech yesterday. there was one fed policymaker who trumped trump, excuse the pun. that was bob dudley, he talked about the fact that a rated hike very soon might have to be very compelling. the odds for a march hike have increased to 50%, up from 30% just recently. want to tell you what's going on in the european equity space this morning. broad based buying. the ftse 100 up by 0.8%. the german market up by 1.3%. we're closing in on the 12,000 level once again. the cac 40 and fotse mib seeing strong gains. the european banking index up by more than 2%.

deutsche bank testing the highest levels in more than a year, up by 4.4%. in the fx markets, we saw the dollar relatively quieted on the back of trump. it did move on the back of fed comments. euro/dollar at 1.0541. dollar strength against the japanese yen. president trump delivered his first address to a joint session of congress in which he touted the early achievements of his administration while looking forward to the proposals that he plans to bring in the coming weeks and months. one of trump's biggest announcements centered around tax reform and vowed to alleviate tax burdens on companies and the middle class. >> right now american companies are taxed at one of the highest rates anywhere in the world. my economic team is developing historic tax reform that will reduce the tax rate on our companies so they can compete

and thrive anywhere and with anyone. it will be a big, big cut. at the same time we will provide massive tax relief for the middle class. >> in addition, as well as announcing that he would repeal the affordable care act and refo reform america's immigration policy, trump unveiled his massive infrastructure spending plans. >> i will ask congress to approve legislation that produces a $1 trillion investment in infrastructure of the united states financed through public and private capital creating millions of new jobs. this effort will be guided by two core principles. buy american and hire american. annette joins us from the super return conference in berlin. annette, what's the reaction where you are from this speech

by trump? >> actually the reaction is quite positive. at least from the people i've been speaking to during the course of this morning. i think we get more positive reaction now. i'm joined by secretary john snow, chairman of cybrus capital management. it's not a secret you are backing trump. but perhaps you could explain why you're so positive on this economic policy. >> think what he's proposing. lower taxes, less regulation, and making america grow faster. raise productivity. bring back the money that's parked off shore. and all of that means more good jobs for america. that's positive for growth. >> are you positive that he can

actually deliver? we are still missing, like, details of his tax plans, et cetera. >> i think he'll work with the republicans in the house and senate. of course the republicans control the house and the senate. and i will predict a good, strong tack bix bill with corpo rates and individual rates coming out of the congress sometime this year that will be very, very positive. it explains really why the equity markets in the united states and around the world have gone up so much since his election. >> many people here in europe think that he is a threat -- the u.s. administration is a threat to europe. you were saying earlier he's a positive to europe. why? >> absolutely he's a positive for europe. as america grows and becomes more prosperous, it will enable us to buy a lot more from you.

you're going to -- you're going to be exporting a lot more to the united states. >> but in terms of policy mix, we are also heading into a year of many elections in europe, like the french elections, german elections, dutch elections, how can that be positive? >> it's very positive in this sense, european leaders should take note of why president trump got elected. he ran against the establishment, the political establishment of the country. which the average voters felt was not producing good resultsment all across europe you see counterparts to that. low growth, stagnant wages. concern about borders. concern about refugees. concern about sovereignty, loss of sovereignty. these are the same issues we have in the united states that produced trump. i think political leaders should take note of the trump phenomenon because it is not limited to the united states.

>> do you think there's a risk that marine le pen can win that vote in france and we see frexit? >> i doubt she'll wind in the end but she'll probably come out first in the first round. she's probably got a one chance in three of prevailing, depending on how the other candidates do. she reflects some of those same concerns. >> brexit is another outcome of last year which nobody had predicted. how positive or negative are you on the future of the united kingdom without access to the single market? it all depends on how brexit gets negotiated. it's not enough to say brexit is brexit. the devil is in the details. will we have a hard brexit, a soft brexit? i think it's very hard. in fact, i don't think anybody can really say what the economic consequences will be until we know what kind of a brexit we

get. >> secretary snow, thank you very much for your insight. have a good day here. >> thank you very much. guys, with that i'm sending it back to you in the studio. the overruling theme is that trump is a net positive in the markets, not only in the united states but also in europe. >> we shall wait and see. days after the white house announced plans to add $54 billion into defense and security funding to the national budget, president trump reiterated his plans to ramp up spending. >> i'm sending congress a budget that rebuilds the military, eliminates the defense sequester -- [ applause ] -- and calls for one of the largest increases in national defense spending in american history. >> in an apparent softening of

his immigration stance, president trump will remove iraq from the list of countries banned from entering america, that's according to u.s. officials. this reportedly follows pressure from the pentagon to reconsider iraq due to its role in fighting isis. to read more of the highlights from trump's address, head to cnbc.com. meanwhile, the obamas, they've agreed to a book deal with penguin random house. the publisher won a fierce bidding war to secure world rights to two books. one to be written by the former president, the other by the former first lady. details of the agreement have not been disclosed. the ft is reporting that the deal is worth more than $65 million. titles of the books and when they'll be published are not yet known. you assume it won't be things like once upon a time there was a little dog. >> probably not. >> not for that money. >> that's a heck of a lot more money than what they earned during the white house. >> and bill clinton got 15 million.

>> 15. >> a heck of a lot more money than what clinton got. >> inflationary. >> precisely. when we come back, we'll be live in barcelona where we will speak with declan ganley. we'll be back in two.

. welcome back to the show. eni's fourth quarter earnings rose nearly 5%, while adjusted operating profit was up 12%. we are going to be speaking to the ceo of eni at 14:00 cet. tune in for that first on cnbc interview. campari posted a 4.2 increase in net sales last year. results were boosted by a positive performance in key

european markets and by the acquisition of grande mariner. they also said president trump's proposed border tax could benefit the company. >> we are one of the few companies that would have a slight benefit. we produce quite a bit, sky vodka as well as wild turkey bourbon in the u.s. those are big volumes. they would hacompensate the hur from the imports. >> and ahold-delhaize fell on deflationary pressures in the u.s. market. they confirmed a target of 220 million net synergies from ahold-delhaize and the board declared a dividend of 57 cents per share. all right. the french presidential candidate, francois fillon has been summoned by investigating magistrates. his team says they will make a statement at 12:00 cet. earlier this morning the

presidential candidate postponed his visit to the paris agricultural salon which is a very important fixture on the campaign trail. we are seeing svia reuters, tha fillon has called meetings with leading members of the party. there's a lot of speculation about what will be talked about in the press conference, whether he will pull back from running. >> in the past he always said if there is a formal investigation into my wrong doing, even thoug he denied any wrongdoing, i will step down from the presidential race. though he has hardened that stance the last few weeks saying i will fight to the end. >> i think initially he didn't want to get his wife involved in the details investigations. we'll be watching that press conference at noon. new uber are under fire once

again. the ceo, travis kalanick being forced to apologize after a video surfaced of him arguing with one of the company's drivers. the dash cam video shows kalanick in the back of an uber quarrelling with the driver over the company's fares and treatment of drivers. in an e-mail to staff, kalanick said he was ashamed of his behavior and that he needed leadership help. snap is eyeing a range of $17 to $18 a share for the upcoming ipo. according to sources, underwriters have given some investors those figures which would put the offering above the range and value the company at $25 billion. a final decision on the snap ipo will come later today. >> some advisers said in get in as quickly as you can but get out as quickly as you can. >> famous last words. >> that's the playbook. 5g, ai and the internet of things have been the main topics at the mobile world congress,

but another conversation is about donald trump as companies anticipate how the president's policies will impacted m&a, and infrastructure spending. >> i take a very boring, humble view of my role as regulator. we are an independent agency charged with analyzing the facts put before us. trying to render a decision based upon well established laws and precedents. that's how i view my role, whether it's that transaction or regulatory application. >> you say independent, i want to pick up on that word. putting the pieces together. softbank and t mobile, the markets wonder if they'll consolidate. softbank's ceo meets with donald trump, a few weeks later he starts talking about sprint and t-mobile giving up his majority stake to t-mobile. the other big deal we talk about at&t, we know rupert murdoch is close to donald trump.

there's a connection to donald trump's daughter. he's against consolidation in the market because it would impa impact -- how do you look independent to the industry on big decisions like this? >> welcome to europe. >> yes. yes. thank you. >> now it's getting interesting. >> it's wonderful to be in barcelona. these are political and business issues that as we say in the united states are above my pay grade. my role is not to read the headlines and try to make a determination based on who said what and in what forum. it is the very limited role of looking at the papers that haar in front of me and rendering decisions based on the facts and law. i take my role seriously defending the public interest, not the particular private interests of any company or person. >> karen, that was a job very well done. you put him on the spot. there let's get out to karen

once again at the mobile world congress in barcelona. >> thank you very much for that. hard work getting four people at opposing ends of the spectrum to smile about issues here. i wanted to pick up on some points we raised in the discussion. with me now is declan ganley, ceo of rivada networks. nice to see you. >> nice to be here. >> we were having discussion about at&t and time warner and whether the regulator would let that deal go through. there's another thorn in the side here, that's around spectrum access, at&t may grow separately from this time warner deal by getting access to spectrum. how big a challenge do you think the fcc is facing? >> it was a fascinating question you raised yesterday on the panel with regards to the -- depending on what happens around the first net spectrum we at

rivada networks and we believe with our team that we will win that. we will end up rolling out the nationwide public safety broadband network or first net in the u.s. >> you're not the front runner at this stage. at the moment they down-selected to at&t. that's been challenged. there's an oral hearing in the court of federal claims in the u.s. on friday. if at&t were to win that, they would end up with another 20 megahertz nationwide of 700 megahertz spectrum. >> how big is that? >> that's huge. that's a carrier size block of spectrum. it's the only uniform block of low block spectrum in america. no carrier has as large a uniform block of spectrum. the question you raised was -- i think it's a very interesting question, does that raise any issues from a competition standpoint? i honestly don't know the answer to that. and it seems chairman pei was

kicking to touch on that issue. it's not an issue for him yet. >> could become an issue. >> certainly seems like it could become an issue. it would be hard to imagine that it wouldn't be. as the chairman said on politics, that question is certainly above my pay grade. >> the reason we're bringing up these issues is because the big question for the industry is how do you pay for 5g? my interest is if they get this deal through with time warner, if the regulator does go back into negotiations, looks at the deal, could there be a decision to say, well, we'll let this deal proceed because we wreck need you need to be profitable and you need more revenue, but we need this by 2020? >> my personal view, notwithstanding the first net question which remains to be seen, so there is no resolution there yet.

let's set this aside for the moment. i personally think the time warner deal will go through. i don't see a real reason why it wouldn't unless you add that 20 megahertz of spectrum nationwide into the equation. on paying for the 5g question, there's something bigger going on here. that's the shift to wholesale ail -- wholesale markets for band width, rather than kon concentrating spectrum into a small market, following mexico's model, what argentina is doing now, allocating 40 megahertz of spectrum for a public safety and wholesale network. u.s. is doing this with the first net spectrum. canada is doing this, having allocated 20 meg heahertz of spectrum. there's something big going on here that the market has not woken up to yet.

that is that we are moving away from the traditional way of selling futile-type grants to monopolies over vast swaths of the spectrum and moving to a wholesale model. public safety need access to spectrum for emergency services, et cetera. these open access wireless markets will force competition for that resource and will free up lots of cash to pay for 5g. >> i wanted to ask you about mexico. you brought it up in reference. you are trying to do business in mexico, but there were some issues. one of your backers, who is one of trump's backers, and trump has created all sorts of issues in terms of doing business in mexico mexicans didn't want your business from what i gather? >> we submitted a bid in spite of the fact that our bid boxes were hijacked three days before the bid submission day. it was like something out of a bad novel. we did submit a bid. it hasn't been opened yet.

we are in the mexican courts contesting that that is an open question now. i believe it will be resolved amicably. i think the courts will find that we were illegally disqua disqualified. if they do find that, it undo everything that has happened in the past few weeks, so they will reopen our bid, and under the rules of the mexican constitution, we will win. >> maybe those bid boxes will magically reappear somewhere. >> you never know. if anyone has got them. do forward them to cnbc and i'll pick them up. >> declan ganley, great to catch up with you. >> great to see you. >> we'll be having a live conversation later on with sir mart martin sorrell. he will give his industry advice

for entrepreneurs and disrupters out there on how to become a global leader. get involved in that conversation later on today. back to you. >> he's always a good speaker. thank you very much. u.s. futures and what they're indicating in the aftermath of donald trump's address to a joint session of congress, the implied open on the right-hand side of your screen, a bit higher. a bit higher than what we've seen other days in terms of the calls. >> european markets are on a tear this morning. that's on the back of better than expected eurozone manufacturing numbers. i'm carolin roth. >> i'm louisa bojesen. stay tuned, "worldwide exchange" is up next.

. good morning, president trump delivering his first address to congress. >> i am asking all citizens to embrace this renewal of the american spirit. i am asking all members of congress to join me in dreaming big and bold and daring things for our country. i am asking everyone watching tonight to seize this moment, believe in yourselves. believe in your future. from washington to wall street, infrastructure, healthcare and trade. the global market reaction to last night's presidential