good morning everybody. welcome. you're watching street signs. i'm louisa boej son. ahead of the february jobs report. we wait for a rate hike ahead of the fed next week. the telecoms reaches an agreement ahead of a regulatory battle. we'll be speaking to gavin patterson shortly after 11:00.

>> speaking to fellow eu lieders in brussels, she may pull the -- on brexit as early as tuesday. >> we will trigger article 50 by the end of the month. this will be a defining moment in the uk as we begin forging ahead in the world. good morning everybody. welcome. it's friday. >> it's friday and jobs day in the u.s. >> exactly. >> no one -- one hike in the december and then all about trump and all of a sudden it's about jobs again. >> i can't believe we're talking about four hikes from the fed now. if it's a really strong report. here in europe, we're opening

slightly stronger. shy of 1% for most of the european equity markets. in terms of the sectors and moves we're seeing across the board, a lot of greens. oil and gas, banks up by 1 percentage point. a rebound coming across the board in board. also, larger announcement from bt. we'll be speaking to the bt ceo later on about this agreement they've reached. >> a giant oil field found in alaska. the spanish company said the field could amount to 1.2 billion barrels of oil in what it said is the largest u.s. on-shore oil discovery in 30 years. rep soil begins to start in 2021. >> director bonus to how well it manages emissions cuts. at the conference in houston, the ceo said the company is

committed to reshaping itself and the sale of canadian sales was part of that transformation. >> what we were thinking of doing the deal and completing the deal was how this was going to transform the company from a portfolio perspective into a world class investment case. that meant we were going to focus on both businesses, where we are fundamentally, think of things like integrated guess, l and g, petrochemicals, et cetera, in the middle of that deal we came to the conclusion that oil sands didn't fit in that strategy. it's a high quality asset but it was probably better owned by somebody else. >> let's check in on oil prices. brent crude is changing hands at 52.40. wti crude below the 50 level but improving by half of 1% at

49.52. these oil prices are off the three-month low. wti fell below $50 for the first time since mid-december. let's get out to richard, the geo political analyst at energy aspect. good morning to you. whenever we see a big move like that, wednesday down 5% and 1.7% in yesterday's trading session, we're looking for the reason. we're looking for -- we're looking at brecker indicators in the u.s. what was the ultimate reason for the selloff? >> i think the trigger by the energy minister, it wasn't guaranteed that it would rollover the cuts for the second half of the year and the market had taken that for granted. he also went out there and said other producers aren't doing their part and he said that if shale grows then saudi arabia can't be expected just to make space for it. all of those comments sent a bit of a shockwave through the

market. through that net wave which -- waited for evidence of the rebounding and is patiently being tried -- >> richard, if we read between the lines of what the saudis are saying and what others like russia are saying, do you think this deal, the agreement will essentially fall apart before may? if you look at the output numbers from russia in january, that was flat. we didn't see many cuts. >> i think there are reasons -- opec compliance from january and february, record levels compared to historical averages. russia, yeah, they cut amounts in january. it was expected to cut similar amounts in february. it didn't deliver that in february. some of comments look like the saudis are reminding russia of what it committed to. we need to see russia coming back playing its part. really the most likely outcome is still that we get a rollover

that won't run down the surplus come may and june. >> i thought when the deal was done a quite successful deal -- you think that they're making an about turn or -- to me, it seems like they're standing at the same ground as a couple of months back? >> a lot of -- opec delivered the deal, a lot of expectation that there would be no cuts -- they've bp sending out very different messages, iraq, iran hitting much higher pro dugs levels. some countries saying it's too early to say whether the deal gets extended. kuwait saying we're at compliance of 140%. the market is grappling with all of that. >> they don't speak from the

same point often. >> i think it would have been the case of less communication would have been more here. opec, it set itself up for a difficult first few months because it pumped at record levels before the deal started. but that takes time to show up. oil is traveling on the water. it's still arriving in america from barrels that were loaded early january. it's going to take time for stock drawers to show up. filling the void with lots and lofts messages hasn't been helpful here. >> want to come back and talk about speculator positioning. that was at a record high on wti and crude after the opec agreement was done in november. now that's come back a little bit. where do you see that going? do you think that will balance out somewhat? >> the record net contracts are at a lower price than what we saw. not necessarily as much capital in the market. but i think some of that has been taken out.

we don't think all of the money that was going to position for rebalancing in the market will have entered and exited. but there will be more nervousness about taking those positions again. that could be difficult because u.s. producers are busy hedging the -- finally, where do you see it going and -- >> at the moment it's like catching falling ice. we could see wti into the mid-40s. but fundamentals haven't changed dramatically this week. i don't think it's gone by midyear, but prices above 60 before the end of the yeefrmt. >> richard thank you so much. geo political analyst. you're not the only one who talks about mid-40s. speculators are throwing in the towel at $42 a barrel according to the founding partner at n and

g hedge fund and a long time opec skeptics at the current state of the oil market. rex tillerson has recused himself, that's a new word everybody is using. >> can i recuse myself from something? from this next interview? >> we had vetted used by everybody. vigilant back in the day. >> rex tillerson recused himself from the -- he would play no role in the decision-making in the trans canada for the permits. in the demand that the secretary of state recuse himself given his former role in exxonmobil if the pipeline is approved. the environmental protection agency -- questioned the impact on global warming.

pruitt didn't believe that co 2 was a primary contributor to climate change thereby -- >> measuring precision is challenging to do and there's tremendous disagreement about it. i would not agree that it's a primary contributor to the global warming that we see. or we don't know that yet. >> bt reached an agreement with off com to separate broadband reach. it will operate as a legally separate company within the bt group. regulator has pushed for the legal separation of open reach on competition ground. bt says around 32,000 employees will be moved into the new company which will have its own brand without the logo. allen higgins told us that it was positive for bt. >> i'm one of the customers stuck with it. i know there are cheaper options. life is too short.

looking at it, 4.5% yields, ratio of 14. rare value. the fact that they haven't had to spin it off. should see a decent rise today. >> we'll be speaking to gavin patterson. make sure to stay tuned for that interview. have you ever met somebody who you really didn't want to meet? remember how that felt as well. >> here's what happened when a little boy had to meet the british queen elizabeth ii yesterday. the queen was at an event yesterday and was honoring armed forces to -- if you look at this little boy, he was not happy. he had the task of presenting the queen with a bouquet. it proved to be too much and didn't want to hand over the flowers and full-on tantrum taking place with this little boy. he's held by this woman in a

uniform. still not happy. >> maybe it's not his mom. that might explain it. >> it might exactly. >> this elderly lady. >> this is the queen. >> comes up to you and wants the bouquet of flowers from you. you don't want to give it to her. >> he did apparently eventually give over the flowers after coaxing, right? >> when the kid has a tantrum as you know with your child, there's not a lot you can do. >> remind me of dinnertime last night. which takes about two hours. >> really? >> i wasn't -- i'm not each the queen. >> i enjoy seeing the coaxing from parents. >> please, eat the broccoli. >> give you whatever you want. >> e-mail the show. street signs at cnbc.com. find us on twitter. >> caroline cnbc or louise boys

a. sparking widespread protests. we'll show you after the p break.

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call today. comcast business. built for business. welcome back to the show. ubs was slashed bonus pool in 2016. this after the banks a full year net profits almost half. the latest compensation report it was revealed that they received 13.7 million swiss franks with a bonus cut just over 5%. approved a restructuring strategy after failing to raise enough capital from the market in december. the plan will now have to get the support of european authorities from the italian government before it can bail out the lender. the state is expected to take a 70% stake in bmps by pumping in

funds. scrapping bonuses for supervisory board members. of the company is looking to get certain costs back on track following the diesel emissions scandal. they're set to plead guilty to charges of misconduct in the united states today. an equity investment director from m and g investments. good morning. in two weeks roundabout we're done with the first quarter of the year. there has been april massive rush to buy emerging market debt. do you think this strategy has been proved successful continuing into the second quarter? >> i think earnings if you look at them more globally have beat expectations. they've been fairly robust. we're seeing downgrades in the u.s. it's more euphoric. growth is at 11%. still very positive. when we look at equities now,

valuations are clearly not cheap anymore. they're around fair value. if we see earnings go through, that should drive them higher. >> we're driven by earnings as opposed to fundamentalsment. >> if you look globally, sentiment indicators are robust. if we look at consumer confidence, it's been increasing. pmi bottomed out the second half of last year to reaching seven-year highs. of course, you need earnings delivery to make that more sustainable. across the board, we have robust economic data and we're starting to see the earnings delivery coming through which should hopefully make the rally more sustainable rather than the risk bands than the last quarter last year. >> i would challenge that to some extent. we're trading on hope. hope for infrastructure spending, primarily that's happening in the u.s. at what point does the fatigue of hope set in. >> the u.s. is a special case where a lot of that hope has been priced in.

infrastructure spending, deregulation, tax cuts. in the u.s. market it definitely feels euphoric. some of the expectations are dealing with pullback. if we look at in europe and emerging markets, valuations are much more attractive. we're seeing better earnings growth coming through. when you look at the values point of view, europe is much more interesting in that regard. same with emerging markets, earnings are starting to improve fundamentals are getting better. you're getting more attractive valuation. >> when it comes to europe, the french elections, are they a binary event or are they not? many people are arguing both sides? european equities could fall by 25%. is it really going to be that binary? >> last year, it was difficult to forget political outcomes. it's harder to predict markets.

as long-term predictors, we try not to predict political outcomes. it's one thing to look at valuations -- we used a lot of the political volatility to add to the opportunities. we should see more of the same, volatility around things like the dutch elections coming as well could potentially be opportunity for us. >> hinting yesterday that it was less necessary to prop up the economy with the ultra -- with the environment. you looked at whether it's the end of the 35-year bond affair, whether there's going to be a big shift. talk us through a little bit of this. >> the equity side, we're sort of bull equity, bond deals bottomed out in the middle of last year. with deals rising, they've been at historical lows, that's a positive impetus in the market. we saw significant rotation of

bonds into equities out of more quality within the equity market into more value plays, it's been driven much more by fundamentals, rather than hopes of what trump is going to do. we are starting to see a change where that set for yield is sort of moving on and we're starting to see value coming back again. >> how does that translate through the brexit scenario that we're going through over the next couple of years? >> brexit, when article 50 is triggered, how much that of is priced in? it might be a nonevent for the market. but i think the next two years of what the negotiations are going to mean, what it means for trade going forward, that's going to i mpact the equity markets. >> they're getting to the point where european equities is becoming more crowded trades. where do you see entry points, specific live in the european market? >> europe is a value market.

you have to be selective when you're looking at europe. clearly more pockets and cyclical segments. areas like technology, cyclical areas like materials looking healthier as well. >> thank you so much. equity investment director at m and g investments. now, south korea's constitutional court has decided to oust president park meaning she'll be the first president in history to be removed. >> sherri pang is in seoul. >> thank you very much. the constitutional court of korea says there's been a breach of trust on the president on the part of the president. i think the former president now. so you will remember the scandal that gripped the country for months now. some of the allegations that have been recognized by the highest level of court in south

korea were one of violation of popular sovereignty. we're talking about the president basically leaking, giving confidential information to her friends and 2, failure to protect the citizens, basically saying not doing enough when it comes to the ferry sinking disaster in 2014. became south korea's very first democratically elected leader to be ousted from the top office. nows, there seems to be a celebration in downtown. as you can probably hear in the background, noise. basically, this is a day that everyone is talking about, impeachment, whether for or against. yes, we do see some supporters of park protesting the decision in front of the constitutional court today. but most south koreans, close to 80% do support this decision.

but i don't think this is it yet. we do have some remaining questions here. so we're going to call a snap election in south korea in 60 days from now. who is going to be the next leader. and two, what's the future of president park because she's very much likely to face some of the questionings and indictment potentially by the prosecution over that corruption scandal as well. and what's the future of the policy direction moving forward in south korea? who is going to be the next leader who is able to unify this divided country? quite a bit of leftover to deal with over here in south korea. >> sherri, thank you very much. joining us live from seoul. we'll be hearing about the eu summit and talk political risk next in the second part of the show. world markets live is our blog. take a look during the break. the guys put lots of good stuff

on it throughout the day. plenty of data after the break. tweet us live. we love your company. see you after the break.

is. i'm louisa bojesen. >> your headlines this morning. stocks kicked higher ahead of the jobs report as investors

wait for a likely rate hike from the feds next week. bt shares spike after the telecoms group reaches a deal with the media regulator off com over -- on a programming note we'll be speaking to gavin patterson short ali after 11:00 cet. oil find in the north slope sending shares sharply higher. speaking to fellow eu leaders in brussels, the british prime minister teresa may will pull the trigger on brexit later this month. it could happen as early as tuesday. >> we will trigger article 50 by the end of this month. this will be a defining moment for the uk as we begin the process of forging a new role for ourselves in the world. >> good morning everyone. it is friday.

not just any friday. it's jobs friday. let's have a look at u.s. futures ahead of that. the dow jones set to add 75 points. nasdaq set to -- this is after losses erased late in the session of. very small gains. the markets are broadly higher ahead of the jobs report. a couple of good stories. let's take a look at the fx market. pound against the dollar, 1.21. >> data hitting the wires. january just as global goods trade deficit of 10.8 billion pounds sterling. that coming from the uk just now. unrevised at a deficit of 10.9. again on that trade data. the non-eu. 10.4 billion pounds sterling and deficit there.

2.18. we're looking at the manufacturing output for january in the uk minus 0.9% on the month. plus 2.7% on the year. so that means we're looking at a slight revision. the manufacturing data in december being revised to 2.2% on the month. 4.2% on the year. it's coming through a little bit better than anticipated. not by much. >> the manufacturing output down -- that's a bigger decline than what people anticipated. they were looking for 0.6% decline. in fact, a stronger growth in nearly 7 years. >> i have a minus 1% expectation. >> okay. >> anyway. 0.9% for the downside. >> the data is notoriously volatile. especially when it comes to industrial production. even by its own standards, it has been incredibly volatile. i don't know if you read too

much into one month. >> right. expectations for inflation. bank of england survey, britain is raising expectations. 2.9% versus 2.% in november. 2.7% for the next two years. the survey shows 43% of public. expect interest rates to rise over the next 12 months. that was versus 41%. more people anticipate a rise an the survey showing 6% of the public expect interest rates to fall in the next 12 months versus 8% back in november as well. like you said, not sure how much to read into this. >> we spoke to the bt bank president and asked him about the potential to improve russia/u.s. relations on april completely different note. take a listen. >> one of the problem for mr. trump today is not with maybe russia, but the domestic recess tense, opposition he's facing.

more time to form his team and needs more time, probably to formulate some basic policies regarding russia. this is ridiculous not to meet -- ambassadors do exist. i meet american ambassador quite regularly. i have lunch in my office. >> i hope you're declaring that. >> nancy joins us from the eu summit in brussels. nancy, it's supposed to be a unity summit. there's not a lot of unity going on. they're all bickering. >> well, louisa, the 27 eu member states will say in fact they are united. a bit of a dispute with poland last night as you know when it comes to re-electing donald tusk. but behind closed doors they're working towards more unity ahead of a meeting at the end of this month celebrating the anniversary of the treaty of

rome expecting to focus on the -- a key component will be security. you were listening to andre cost continue talking about russian relations there. you have to imagine that the eu leaders are taking note of the rhetoric coming from the white house and on the subject of unity, there appears to be a division because the member states that have closer geographic proximity to russia, of course, remain nervous about the -- be very interesting to see how this one issue plays out going forward. i had a chance to speak to the austrian chancellor who spoke about the need to lighten up on relations to russia coming from the eu bloc. i asked if that was still his belief. take a listen. >> what you've seen is the sanctions were very detrimental for the economic growth here in europe. be interested in having a relaxed and more balanced relation with russia so -- which is important.

but we have to discuss that in the community. there are various opinions about that. some countries very much in favor of lifting our country's -- very rigid on that. i think it's still not the time to make a decision but we have to discuss that. >> have you been encouraged by president trump's -- >> no. i think europe has to be self-confident. we have to be our own issues. we don't have to look always at mr. trump. >> the elections coming up in europe, there have been concerns about russian influence, allegations of fake news being influenced by russia. does that concern you? >> yes, of course, it does. but we see here in austria and various other countries -- even if they have very, very high ranked and -- responses, they will not make the weight --

>> do you think what happened in your own country that the pendulum is starting to swing the other way, that in the next elections, we could see a response against populism in the far right? >> yeah. i'm absolutely, they're convinced this will be the case. they are declining. look at the netherlands, they have elections on wednesday. look at france. i'm totally optimistic that the pro-european forces will in the end succeed. >> the austrian chancellor telling me when he looks at what happens in his own country in which the candidate narrowly defeated the candidate, he hopes this -- next week man incompetent wondering how successful the party will be when it comes to what the polls are saying versus the actual result. the biggest test, talking about the economic impacts on the european union will take place in france towards the end of april. many wondering whether the

so-called brexit and trump string of popular momentum is about to break rather than continue here in europe. back to you. >> nancy, thank you so much for that. i also want to draw your attention to a u.n. human rights report which basically says the protection of human rights is nonfunctioning in southeast turkey since july 2015. in that report, the u.n. says satellite images show whole neighborhoods being raised, damages commensurate with heavy weapons and possibly air drop munitions. one last note. 2,000 people, including 800 members of security forces were killed in southeastern turkey from july 2510 to december 2016. >> they also say that 500,000 people, mostly kurds, have been displaced and that the images show enormous scale of destruction of the housing stock by heavy weaponry. >> 500,000 people. half a million people displaced. angela merkel has --

comparing her government's decision to cancel rallies in germany to nazi practices. the rallies were organized in a bid to drum up support for a -- to give stronger executive powers. merkel urged turk i have to end the unjustifiable and sad rhetoric. >> translator: the more sad and depressing are the remarks that members of the turkish government and erdogan brings it to -- this is incredibly misplaced and one cannot seriously comment on it. not even with an election campaign or referendum. meanwhile, a new poll for german broadcasters found that -- closing in an angela merkel and the country's leadership race. it gives merkel 34% with the social democrat up two points to 32%. david lee is a senior analyst at control risk. welcome.

>> hi. do you think he stands a chance against merkel? >> i think he's still benefiting from the entry boost that he and the spd received when he came into the race when previously it was spoke that -- he was suffering the same fate as -- whether that boost can be sustained for the six months, little bit over left until the election, i doubt it somehow. but he's certainly trying his best. >> at the same time, we're seeing waning support for deutsche land as well. >> that's something that's always seemed likely in germany. they've done fairly well in state elections and municipal elections. it never really -- at the national level. it's true on the far left and the far right as well.

i think there is a danger in simply extrapolating a brexit result in every country in europe. i think germany sees what its future is -- and it sees it is the mainstream. we're having a much more interesting battle than maybe we thought we would have. >> do you think the waning support is a trend we're seeing in europe because we're seeing waning support in the netherlands going into the parliament here. also, the support in the first round has dropped a smidgen. is that too much to read into? >> i think it's a little much to read in at this point. there's a natural ceiling. i mean, that natural ceiling may be being pushed upwards slightly over the course of the last couple of years. they've not burst through it.

i think what -- maybe what we're seeing in the last couple of months is that that ceiling may be dropping. again, it's not going to collapse to the floor. i think we could be over in -- saying a couple of late campaign polls in the netherlands, france is a very unstable situation. i'd be reluctant -- >> in the netherlands, there's no major change to the status quo. >> not at all. i think there are, in a sense, two elections taking place. the one that the wofrrld is watching, particularly the -- seeing this populous guy who admires trump, was strongly in favor of brexit and builds the story around him. in the netherlands, the election is mostly about what kind much shape the coalition will take place after the election. and he's not going to be in it. it's pretty obvious he's not

going to be in it. he said he will be reluctant to work with anybody else. >> essentially, a lot of media hype around nothing. >> i wouldn't say nothing. the media are slightly better judges than that. but i do think that the english speaking is slightly overplague -- >> what do you think the biggest political risk come from? if the majority think that he doesn't stand a chance in france and it would be incredibly difficult because of laws and legislation because of the way it works in france, where is that risk coming from in europe now, the biggest risk? >> i think le pen is still the wig he's risk. >> not italy? >> i think italy is largely -- italy will always be italy. i think there will be a view in

european politics on the markets as well, that a degree of volatility and instability is almost a given. >> and while you do have that instability, i think the critical systemic instability is only to arise in italy if there's a significant negative movement in greece as well. there is a bit of a come mow effect. >> thank you, david. david lea, senior europe analyst for control risks. now we were just speaking about germany. a man is held in custody after several were injured in dues en dore of. kelly cobiella has the story. a man with an ax went on the attack. the injured being treated on the station floor. five were hurt, one seriously. police closed the station. evacuating stores and searching

for suspects. at one point saying several could be on the run. late tonight, german police confirmed they arrested one man who jumped off a bridge and injured himself trying to get away. last july, a 17-year-old afghan asylum seeker attacked passengers on a train in germany injuring four. police shot and killed him. isis claimed responsibility. the motives for this latest attack remain unclear. kelly cobiella, nbc news. in the u.s., several states say they will challenge a revised travel ban signed by president trump. a new executive order bars the admission of refugees and some travelers from six muslim countries. hawaii, oregon and massachusetts will intend to halt the new order in court. fbi director james comey met with the key senate lawmakers to discuss the alleged wiretapping of trump tower. last weekend president donald trump accused former president

barack obama of wiretapping in trump tower during the presidential election. the white house didn't offer any evidence to back up the charge. obama and james clapper responded that it never happened. the republican plan to repeal obamacare and overhaul the health care system cleared its first hurdle in congress. two house of representatives committees approved the legislation moving it closer to the full house. its chances for passage look uncertain in the face of opposition by democrats, health care providers and many conservatives. hallie jackson has more on the story. >> referee: tonight after two days long of deekts on changes, the republican replacement for obamacare moves two steps closer to reality. >> this is the once in a lifetime opportunity. this is the closest we'll ever get to repealing and replacing obamacare. >> the determined house speaker under scoring the urgency today,

armed with charts aimed at an audience of skeptics inside his own party. paul ryan's power point pitch plastered all over tv with the president perhaps watching, tweeting at the same time, despite what you hear in the press, health care is coming along great. we're talking to many groups and it will end in a beautiful picture. that picture looks grim for now as opposition builds. >> isn't that a sign that health care is not coming along great. >> anybody in washington for a few days or longer recognizes that any major piece of legislation takes a lot of explanation. >> the white house insists this bill will pass. but some reluctant republicans are wondering why the rush. >> we've got lots of time to get it right. i'd rather get it right than fast. >> that's a similar statement used when obamacare originally pass. >> we're being told we have to rush to pass this legislation. >> like mom used to say, you

rush and you make mistakes. >> as many as 15 million americans could lose coverage over the next decade under this health care plan. now, potentially on life support. now, in case you missed the it first time, in the first half of the show, have you ever had to meet somebody who you really, really didn't want to meet? this is what happens when a little boy has to meet the queen in britain of all people. not just anybody. she was unveiling a national memorial honoring armed forces and civilians to serve their country. for the boy, as you can see here, it was a daunting tags being. he was supposed to present the queen with this bouquet of flowers. it proved to be way too much. he wasn't having any of it and he had a temper tantrum. he was held by a woman in uniform. i'm being told by george who writes in, says the two people in uniform who were with the young boy were his mother and father. they were both serving soldiers.

they were his parents. >> we know that kids usually throw tantrums whether with their parents or not. >> but i think the queen took it in stride. she's got four kids and many grandkids. she was pretty relaxed about this. >> very relaxed. she must be used to it. >> i'm sure little george does throw a tantrum. >> wonder when she baby sits. >> take the kids for the weekend. >> eventually, he gave the bouquet to the queen. happy ending for everyone, including the boy. coming up on the show, it is not -- we'll be back in two.

we're hours away to nonfarm payroll release where economists forecast an estimated 197,000 jobs were added. but a strong jobs report from the adp earlier have many thinking a rate hike is all but guaranteed. director of epic strategy. is there any number which would keep the fed from hiking next week, alvin? >> i think we need to see a negative number to do so. it's almost a given that it will hike. >> what is this jobs report about? is it about the sequence and the magnitude of further rate hikes by the fed this year? >> yes, absolutely. that's what the market will be watching for. the market is almost pricing in hikes in totals this year. a very strong number. much higher than consensus that could well push that -- >> you're looking for? >> we are along with the consensus looking for 200,000

headline. as again, the details report will be important, again, in particular the hourly earnings number. >> what happens with the dollar? give us scenarios. what happens if it's more than the forecast 197, 200. how much do we spike or do we spike? an issue taken to be bad news? suddenly we could be talking about four rate hikes. what happens in terms of reactions? >> i think that given that three hikes are almost -- we need big positive to push the needle beyond three hikes. you need to look at something above 250 or so in the headline and also very strong earnings growth numbers. we don't think that's going to happen and because of that, i think admittedly the window is probably closing in on dollar

strength now given the near certainty the market has of a fed hike next week. on top of that, drag i was unexpectedly hawkish yesterday. >> the window is closing in on dollar strength. treasury yields continue to climb. they've broken out at 2.6 the highest level since december. >> yes. that's absolutely true. currency is a relative value trade and we have seen, of course, a european yield moving higher, too, particularly yesterday. even if treasuries go up but if european yields also move up in tandem, it's not necessarily a guarantee dollars rate. but however, that being said, against the yen, the dollar can continue to -- because the doj is pegging the japanese ten-year yield. so in that sense, the u.s. bond yields continue to move higher,

that will push the dollar yen higher. >> what happens to the dollar until the french elections? it's been moving sideways since the start of the year and not much has happened. do you expect more volatility similar to the -- going into brexit? >> yes. we definitely expect more volatility closer to the french elections. i think that in the next several weeks it will be general weakness that will need to take the dollar much lower and one source of that weakness could well be an intense vacation of the market's perception of european -- [ inaudible ] it's pretty much expected that -- will pass through the first round of the elections. the risk is still there. although it cost the opinion polls to have -- winning in the end. >> do you think we're going to see more pressure on the pound especially if the euro continues

north on the renewed optimism from drag i. >> definitely on euro sterling will move higher, that's what we're expecting. >> alvin, thank you. he's director of fx strategy. got a couple of hours to go before the u.s. markets open for trade today. the implied open on the right-hand side of the screen. looking slightly more positive. keeping in mind that the oil contracts are heading for weekly losses of 5 to 6%. a lot of volatility seen there. we'll be speaking to gavin patterson straight after this. w.

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good morning. jobs in america. president trump gets his first economic report card when the february employment report is released today. we'll talk expectations straight ahead. breaking overnight, the president of south korea has been ousted amid accusation. entrepreneurs offered to fix an entire region's power network in 100 days or it's free. the details coming up. it's friday, march 10, 2017. worldwide exchange begins right now.