so you're not buying houses like drunk sailors, even if you're 15 minutes late, no arguments, you weren't here. you are far from construction. >> sorry, this like never happens to me. >> you're going to have to trust me. good morning, everyone, we're just waiting on some data from germany to cross the wires. we'll have that for you imminently. there you go. this is the index in march, slightly risen to 112.3 versus a reuters consentence as you forecast of 111. slightly beating expectations. let's have a look at the expectations component. i'm not seeing that quite yet, that's is expected to remain steady. fairly steady when it comes to the ifo index.

up 118.3. this is after the index which is the conference index versus the business index conference. the pmis have been upbeat and all of this is pointing to very healthy growth for germany. >> and here come the expectations, 105.7 for march which is also a little bit above the forecast of 104.3. a small beat on the figures. you're looking at it right now, 108.67. maim maybe people are looking more towards the political environment. the victory in germany over the weekend. >> i would think so the euro dollar has got very little to dough with what's happening with one of the smallest states in germany but the failure, the huge failure by donald trump to get this vote on the health care

bill. that's why we're seeing the dollar index at a two-month low. >> completely agree. some indicating that funds is a little low this morning. >> only 800,000 people are eligible to vote. >> is that right? >> yes. 800,000 people. >> psych wilologically -- europ markets called a little lower across the board. most regions up a percentage point. just giving back a little bit. the ftse breaking its moving average to the downside, 7259. morgan stanley talking about how they're lifting the 12-month ftse target to 7400. we'll get into that in a bit. let me show you what's taking place in some of the sectors. the downside, the main three sectors that are moving lower. insurance, banks and basic

resources up by almost 2%. just a recap of also what took place in the states on friday after this important political failure, as some would say, trump failing on health care reform. u.s. equity markets that closed mixed, relatively flat. you could argue there was quite a bit of volatility against the close to pull the health care vote. the dow seeing its seventh negative session in a row since the first time since november before the election. the dow, s&p, announced they're all seeing their worst week of 2017. >> let's talk about a little more what happened in washington. quote, a lot more broken that donald trump thought, that's according to mick mulvaney, following the failure of the republican health care bill last week. the director told cnbc, he thought the trump misunderstood the process of legislating. >>. we haven't been able to change washington in the last 65 days.

i think if there's anything more disappointing is that this place is a lot more rotten than we thought. i've been here six years. i know the freedom caucus, i never thought it would come to this. >> and the trump is facing challenges as the investigation continues into russian hacking during the election. nbc's jennifer johnson has this report from washington. >> reporter: with the plug pulled on the gop's plan to replace obamacare, president trump took to twitter sunday blaming the loss on the hard right group of house senators. democrats are smiling mr. trump tweeted that the freedom caucus have saved planned parenthood and ocare. but republicans blamed the plan. >> the problem was not really with the specific faction in the house. i think it's with the bill. >> reporter: with the president's 100-day deadline to replace obamacare now apparently dead, the white house says it's

moving on to tax reform and passing the budget but congress' investigation into whether the trump campaign was involved with russian hacking into the election isn't going away. >> this is the most important thing that i've ever done in my public life. what i know now as i get more and more into this, i'm going to double down on that statement because it's extraordinary. >> reporter: the house intelligence committee declare has cancelled tuesday's hearing with former director of intel intense james clapper and others drawing fire from the the top democrat. >> i think the chairman has to make a decision whether to act as a surrogate of the white house. >> reporter: the senate intelligence committee is still planning on holding its hearing march 30th. the house committee chair has decided to bring back fbi director james comey and nsa director mike rogers for a second briefing, but this time, behind closed doors. jennifer johnson, nbc news, washington. all right. let's talk a little bit more

about what this means for your investments joined by tim edwar edwards. some say the dow has come to a halt over this health care. others say, hey, it's a small blip in the road. >> well it certainly took a bit of a beating last month. in the midst, something that you can use as a good indicator that connects a lot of it to regional u.s. banks. so they'll benefit from the u.s. economic growth. very much same the regulatory reform. tax reform. are often very connected to the yield. now, u.s. regional banks or our index quoting went up about 40% from the highs from the election. it's now gone down to just over 10% down but not out, if you pick that particular example. if you look more broadly, health care wasn't that important to

the market. health care wasn't important as it showed the ability or otherwise of the house and so this is bad for it. but health care isn't really the crux of it. much more about those tax reforms and owe related -- >> let's talk about tax reform then. because there are also conservative hot liners, among the conservative republicans about raising the deficit when it comes to raising the tax code. once again the debt ceiling in 2011, 2012 all over again, do you not worry this might not pass as easily as we all thought? >> well, yes, and should we mention infrastructure spending as well. there's another key part of it, donald trump's program, let's spend on infrastructure, reform the tax code and make it easier for u.s. companies to repatriate cash. squaring in that center. classically famous problem that no one knows really quite how to

do that. however, i do think politically less difficult than health care. where some of the promises really were, in terms of going to be free. there is a process, and it will be difficult, but i do think that health care is an uniquely difficult problem. health care has sort of ended several and a tricky one. >> there was talk last week about whether or not this was a litmus test for what's to come, with deregulation and tax reform, do you think this is a litmus test? >> there's information there, the fact that this bill didn't pass gives you information about the sort of political kung foo, if you like of the dealmaker. however, i don't think we should draw too many conclusions from it. simply because it's such a political flip-flop.

it's much more political headwind. so to do this sort of thing that many people trading in the markets would like to see, around, for example, deregulation can be budget neutral. and will that change? yes, it's political but you don't need that. >> again, looking at some of the comments that morgan stanley put out this morning that europe ease economy is growing stronger than anticipated and surprised for the upside as we've seen. they're overweight with the european financials as well. you look at the confidence out there and mirroring what's going on in the markets, confidence is high when you look at, for example, vix trades out there? >> you're absolutely right. broadly speaking not to pick on anyone, the economics with goods for quite sometime and inflation as well, it's been reasonably

good. looking all right. volatility measures across the world are very depressed. despite the fact we're hearing this is the end of the bull market. and here cummings the correction. when you actually look down at it, the fundamentals look good, in terms of volatility makers, the market doesn't look very well yet. >> is it that the u.s. is pretty elevated in that philosophy, but where is it in europe? >> certainly, europe looks cheaper. and the u.s., it doesn't matter which valuation measure you use, the u.s. is pretty expensive right now. at europe, much cheaper. i think there's certainly truth to the fact that it has been -- people can invest international. it's been somewhat brave to invest in europe, particularly with the environment as it is. i mean there say case to be made that europe, first of all, looks cheaplier. second of all, maybe could benefit more in a balanced on

the flips environment. >> tim, thank you so much for that. i do wonder when europe will become the crowded trade. we saw the bank of america/merrill lynch survey that europe is the crowded trade right now. when will that be europe? >> probably not before the -- tim, thank you for that. tim edwards director of s&p/dow jones indices. in longtime confidence, president donald trump named by members 6 congress into the investigation of the interference in the presidential election says he's willing to testify in an open hearing to defend himself. roger stone told nbc this week that he had not received 2 on his offer of testimony. stone described the investigation as, quote, a scandal in search of evidence.

and speaking to russia police detained hundreds of protesters in russia sunday. after thousands took to the streets to demonstrate against corruption and demanded the reds nation nation. russia will be holding a presidential election next year. that vladimir putin is expected to contest, running for what would be a fourth term. a lot of people on twitter making the point that none of this was seen on russian television. the protests. none of it was covered. none of it was aired. none of it was covered by journalists. >> e-mail the show shows, @streetsigns cnbc.com. did you do okay with the clock change? >> ah -- >> i feel like -- >> no, i didn't.

failed miserably. >> i think the other change in october/november, much easier. but in spring, they steal an hour from you, really. >> i know, sunday as well. >> i know, that's the worst. >> then we've got this story. do feel free to send in your thoughts or tweets. two teenage girls traveling on a united airlines flight were barred from boarding the plane because they were wearing legs. as they were special pass passengers they did not meet the dress code. the girls were said to be fine with the decision and complied with the request. social media was in uproar but calling the company's sexist. reaction prompts a statement from united clarifying its dress policy saying to its customers your legs aleggings. >> i'm a big fan of leggings. >> me, too. those are not leggings --

>> of course not. i have teenage girls, i wonder somebody of slightly older age wearing leggings, if you show up and you're trying to get on the same type of miles, say, that somebody -- >> i wonder if they had turned someone away sitting in first class on that special pass? >> i always wear leggings on flights. always. >> that's the most comfy thing to wear. whether on a flight or anywhere else. >> so, the guys in my ears -- >> they're having a good time. >> anyway, you know, leggings as long agency they're not the lululemon ones from back in the day. >> the see-through ones -- coming up on the show, the latest from hong kong election. much more to come on "street signs" as well.

we'll also talk about the stress test scenarios that are being tested for from the bank of england. and shipping, too. talk about that later.

good morning, everybody. welcome back to "street signs." b.t. has been fined 42 million pounds by britain's telecom regulator for what it called serious failings. they say bt undermined by delaying and installing high-speed business lines. that's the largest payout ever imposed on the operator. also means bt will have to expense ate competitors like vodafone for the loss. meanwhile, pushing hod. the investment group announced it is selling the bulk of its estate in the company omam 0 the

chinese comglom r gloglo gloglc. the move explaining the reason there was to suspect that park tried to destroy evidence. this report from seoul. >> prosecutors have said that they will be requesting a cuf d custodial arrest warrant against park following the charges that prosecutors placed against her during the hours of questioning she went through last week. prosecutors have been reviewing a custodial arrest warrant for the past seven days, giving the arrest could have on the upcoming may 9th presidential elections. there are reasons given for the warrant led that because the former president is facing charges, the magnitude of the charges against her, call for a detention warrant.

also cited the fact that the other people implicated in the political scandal including former presidential aides have all been arrested and currently under custody as the reason they were casting a warrant for former president park. this warrant request will have to be approved for it to happen. and if it did, it will be referred os laws issued for a former president in korea. and carrie lam has been elected as hong kong's next leader. she won 770 votes from the city's election committee. 67% of the vote. emily tan joins from us hong kong. emily, this is the first leadership raise since the widespread major protests back in 2014. what was it like today? >> well, we did have some protests during the chief executive election when the votes will be counted.

as far as elections today, we haven't heard anything, but we did get some comments coming from one of the protest leaders during the occupy umbrella protest, making joshua wang, i should say, he said after carrie lam's victory, number of leaders from the hong confederation of students that was amongst the leaders of the occupy umbrella movement here, they received phone calls from police indicating their arrest because of their participation in the umbrella movement three years ago. and they expect political prosecution against student activists to continue. now, in response to that, the chief executive elect carrie lam, she did speak to some reporters and made some comments. after being asked whether or not she'd been slain by all of these arrests on the first day. she said no this is the reaction of the current term of the government done independently by the prosecution authority.

she said that the independents of the judiciary are an important course of hong kong. back to the election that took place yesterday. it had gone all according to script, 777 votes by the election committee to elect carrie lam as hong kong's next chief executive. she's going to be sworn in on july 21st that's co-insiding with the 20th anniversary of chinese rule. in her speech she said the main priority was to ute and move hong kong forward. she had a joint session with the incumbent and this is what she had to say were her priorities. >> my priorities as laid down in the manifesto, and the first talk to try to unify society and improve the relationship between the executor and the legislature. i have every confidence that we will have a very smooth transition in order to put together, as early as possible, the various actions to implement

the initiatives in my manifesto. >> reporter: of course, she's been meeting with various other people today, apart from the incumbent chief executive, she also sat down with the president of the legislative council here, alongside that of the chief justice of the court of final appeal. back to you. >> thank you very much for that. now in germany, chancellor angela merkel cu party is having a surprised victory in the elections. 41 pulled of the votes while the spd got 30%. it's been treated as an important bellwether ahead of elections taking place in december. the biggest victory in 13 years for merkel? >> yeah, the cdu, angela merk

merkel's party has saved almost 6% in the federal state. but analysts stand divided whether this is really a clear sign that this also means that angela merkel's party on the state level will have the same -- yeah, the same support among voters. so, i think the solid elections are one thing. probably an isolated fact. but a lot of people had been looking at what the short effect might mean for those elections. and probably the social democrats themselves have been quite confident. but actually the polls were right. because the polls suggested that they are neck and neck with the christian democrats. and this has not been the case, of course. the head of the social democrats and the new savior of them

stepped out with his take. >> translator: it doesn't mean we won't achieve our goal. the goal is to move a government in the federal republic. it's a long dance race, not a sprint. >> from germany, the debate is ongoing, it's just something that happened inside the spd and also among the calling institute of whether schulz can really reactivate voters to really 58 for the social 2ke78 cdemocrats elections. we have two more elections to come before the big ones. the state elections in september, watch out another in may, and also a tiny region up north. back to you. >> thanks. just throw that in there. you never quite manage to get

back again -- >> yeah, yeah. >> it's a small part where that is danish, right? >> yeah, they hang on to that. >> yeah. >> our germany is everything. >> hey, your own green light, what more do you want, huh? >> we need to take a quick break. take a look at world markets. lots of good stuff on there. so, when we come back, we'll be talking more about the stress test scenarios that the bank of england is looking at and shipping investments. we'll be right back.

"street signs." i'm carolin roth. >> i'm louisa bojesen. the dollardown side, hitting a two-month low against a basket of currencies. basic resources stocks seeing red after the chinese futures sell off among demands in inventories. bt is forced to pay up four delaying installation of high speed broad band. and hundreds of protesters are arrested after vast demonstrations take place across a number of russian cities amidst protests of vladimir putin's policies.

good morning, everybody. welcome back to "street signs." this morning, we are looking at various stress test scenarios that the bank of england is laying out for us, presenting for us. we're just looking at the first indications of what exactly those are they're focusing on. the bank stress tests for 2017 involve economic shocks, large-scale and uk household debt is still high and rising relative to consumer growth coming from the bank of england. they're talking about how a sudden brexit adjust could disrupt the provision of liquidity and service to the eu. this could spill back to the uk. the global economy risks remain elevated despite some

improvements. they're talking about uk bank's leverage. 5.2 in december of 2016, versus the requirement. quite a bit higher than what the requirement of 3.3% was. they say that progress is on track to ensure that all banks of fully dissolvable by 2022. that's mixed in with the ftc reports as well. >> but when it comes to the stress tests, what we want to hear today, what we're expecting today, just a fine-tuning of the methodology of what will be carried out later in the year. again, we'll get those results in november. the past has been macro risks, trading risks, and misconduct risks. and the big one added this year, obviously, brexit. the bre wants to know how banks can show that their consumers won't lose access, and how the continental customers will be

protected. that's just one of the things that the boe wants to know. >> and the major uk banks, 15.1% of risk-related assets in 2016, the requirement, 13.5%. that's also something, rightly or wrongly, you know, the focus on capitalizations. i remember when it was 5%, 7%. and now we're talking 15.1% in the case of the uk banks. so they're well capitalized. >> that's improved quite a bit. >> yeah. also i want to take a look at the ftc report. the overall level of 9 risk to the uk financial stability is broadly unchanged since the 23406 meeting. that was wildly expected. to handle a range of outcome from the brexit talks. and reduced to quit quality lending very soon. it will have two scenarios one short-term, one long-term.

both of these a little muddled. but i guess the crux of the matter, how well can you advance for brexit. >> yeah, continuing along the line. out of the uk banking practice joining us, good morning. greater complexity and business structures. post-brexit could reduce the resilience of the uk financial system. that's coming from the bank of england. how important is this stress test scenario that they're laying out for us today? >> stress test scenarios are a big deal for all uk banks and globalization, of course, where it happens all around the world. i appreciate the fact that neither one and two actually tests. one is for the short term. and then is there is the biannual test, figuring out what is the real resilience of banks due to a higher stress valve.

brexit is actually one of those in front of them. to figure out what option we have in front of them. and what is the capital implication of all of this. i think overall, uk banks are capitalizing, as you mentioned already. if you take a look at the numbers at the 2014 and 2016 there has been a constant increase. therefore, i believe that now capital is no longer the primary concern. the primary concern is are these banks' business model okay for the future. low interest rates on a prolong rate increase capital requirements, of course, increase the cost for the banks. if they're not able to pass the costs on to the consumers or companies, that's going to somehow impact the p and l. if it impacts the p and l, of

course, shareholders wouldn't want to invest in the institutions. >> the main thing i don't understand still, just looking back at some of the other stress test scenarios, macro economic risks, trade be risk, misconduct risks have been what they're looking at. add brexit on to that. we were looking at inflation above the target. we could be looking at a scenario potentially in near-term future where rates are a lot higher than what they are now. double, triple, quadruple the levels they are now. why aren't they testing for that scenario? >> probably, what they're thinking that the interest rates are going to stay lower for longer. that's the only explanation i can give. even if they start in a path of increasing they will still remain much lower than where it was before the financial crisis. so, we are looking at a situation where interest rates are lower for a longer period -- okay. how do the direction of the banks change the business model

to cope with that? how do they shift from credit fees to advisory fees? how do they become more of a trust advisory to their clients? let's not forget also the reputation and impact after the crisis. so, i believe that banks have a better chance of being successful in the future are the ones that present themselves as soldier of needs. rather than provider of the financial products. one more thing, i think that having 30 million current accounts, or having a very big book of assets in this case doesn't really mean anything. because if you're not able to develop a relationship with the customers, those are all the customers that the bank is losing money on and that has an effect on the share price. >> what banks are in the swing? what we saw in 2016, it was rbs. and other banks like barclays

which had to take additional steps. where do you see the banks? >> well, i think that there are two -- two drivers that you have to consider. first one is the geographic implication. then we have a number of banks, rbs for one, primarily uk-based. that has a disadvantage in terms of diversification of assets. but also may be an advantage -- actually can be an advantage because of what happens with brexit. then you have certain -- the other banks which are hsbc and barclays, that might have an impact on their perform unanimo ance in the future i think. you mentioned hsbc, let's bring in trump here. because if protection really is topping his agenda.

and really his front four, when it comes to enacting some of those legislations, ripping up tpp, essentially, how much concern do you concern around the liability that you see? >> well, hsbc is a very big bank. operates in more than 50 countries. and it's primary competitive advantage in the market, it's operating and a big bank in china. so, i don't think that this is going to impact their strategy in the future. they have been pulling out in certain markets. they have been focused in liquidities that they remain primarily focused on in the uk and asia. i think that's can be the future. >> just back to one of your initial points about how banks are going to be making money in the future. what do you think -- you know, what will the shift be? how do you think banks will make money in the future? >> i think the banks will be bold enough to start charging for what customers really value.

and stop what they're charging for what customers don't really value. if they can do that, there is a success in the future. that is the -- the key, it's called value pricing. that is what they have to do. just an example. and wanting to really pay for the institution like willing to pay for a car if i value the service they provide me. if i feel that i'm overcharged for nothing, then anger starts to sweep in. and therefore, there's no willingness to pay on those things. so, a clear analysis is on what the customer thinks and what their needs are is the first thing a bank should do. and it's actually and it doesn't cost a lot. how do you proper services? it's not about slashing that, or decreasing capital. >> remember back in the day when you never had to pay a fee? because the bank was using your

money essentially? >> no longer. or negative interest rates. >> things are changing. >> i know. >> head of uk banking practice. the british prime minister theresa may will be meeting in scotland today as part of her uk tour to drum up support of article 50. in the speech before the meeting may is expected to say that the union is a, quote, unstoppable force, adding that the strength and stability of all foreign nations will become even more important as the uk leaves the eu. the meeting kicks offer a big week for the uk starting on the scottish parliament with the referendum. let's have a quick look at u.s. futures. they're trading, after we saw that big collapse of the health care vote.

s&p off by 15 points, the dow jones, 90, and the nasdaq, 31. so far, the dow owns up by 1.5%. i want to show you some of the safe haven assets, we're seeing gold at a one-month high. 1257. dollar/yen sinking, 110.23. close to that 111 handle. and the a little buying with the yield slightly falling. president trump took to twitter on sunday blaming the frooem caucus to failing to support the bill to replace obamacare. the white house is looking ahead to tackle new issues like tax reform and a new budget. nbc's tracie potts joins us once again from washington. tracie, good to see you, how big a flop, quote/unquote is this? >> well, this is huge. it was the first big thing that

the president tried to tackle, and it failed. but he's moving on. there is still a bit of the blame game going on. the budget director saying over the weekend that the failure shows just how rotten d.c. is. and the president says he wants to circle back to health care after, as he puts it, obamacare implodes. but for now, he's moving on. and the next big issue for him is tax reform. it's very complex, something that speaker paul ryan wanted to do after they dealt with health care. and it's an area where they have to get democrats on board. at least they're hoping to. the president's chief of staff saying on sunday. that by putting middle class tax consults in this tax reform bill they hope they can bring democrats along. a couple other things happening in washington today. a vote to move forward his supreme court nominee judneil

gorsuch and a new role for his son-in-law jared kushner that he'll have an a new office of american innovation. the purpose, the white house says is to streamline how washington works. >> tracie, also over the weekend, trump took to switer encouraging people to watch a fox news show, essentially calling for paul ryan to step down. how is this being taken? >> right. it was kind of interesting. several people with the administration asked about that saying, no, the president still has confidence that house speaker ryan can get things done on capitol hill. even though he was pointing people in the direction of a journalist who was calling for just the asp, a television host, who said that ryan needs to step down. but there's official word out of the white house that he still has confidence in ryan. and he certainly needs to if he wants to tackle something as big as tax reform. >> good to see you.

tracie potts joining from us nbc news. and sentiment towards goldman sachs. jpmorgan has started its coverage with a neutral rating. meanwhile, intelligence should have about tess to the massaging app whatsapp. after it was rerealed that the attacker used it in the runup to the incident. speaking on the bbc they said there should -- >> this is completely unacce unacceptable. there should be no places for or terrorists to hide. well need to make sure that places like whatsapp don't provide a secret place to operate with each other. it used to be that people would steam open envelopes to find out what people were doing

illegally. for this situation, we need to make sure that our intelligence services have ability to get into situations like encrypted whatsapp. coming up inventories, and look closer to the numbers, after this, we'll be talking about the shipping investments. we'll be right back. discover once-daily invokana®. it's the #1 prescribed sglt2 inhibitor that works to lower a1c. invokana® is a pill used along with diet and exercise to significantly lower blood sugar in adults with type 2 diabetes. and in most clinical trials, the majority reached an a1c goal of 7 percent or lower. invokana® works around the clock by sending some sugar

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hi, everybody, welcome back to "street signs." oil price, they've been checking lower in early trade after producing nations issued a statement saying that they're reviewing an extension of the output deal for six months. during a meeting in vienna opec and other representatives agreed that compliance has been, quote, reasonable but encouraged producers to stick to their

quotas. in march and april to reach the overall output targets. chinese steel and iron ore producers, heading to its biggest one-day drop since late november as chinese stock surged to highs not seen since 2004. that's having a sizable impact on markets. the xetra dax is off by.07%. we're joined by tony foster the ceo from marine capital. tony, good morning. >> good morning. >> thank you for joining us. we're too quick to jump to conclusion that protectionism, the ripping up of the trade agreement means the death dor demise of shipping, too? >> possibly. shipping is not going to be

hugely influenced. the issue, as far as the trump administration is concerned, domestic in terms of his pitch towards a domestic audience. and the things that he seems to be talking about most are things like persuade iing cause mexico rather than the u.s., none of which is going to have a significant effect on the global shipping market. >> recently, if we get the border tax agreement, if we actually see more protectionism, why wouldn't there be volumes of oil, iron ore, for example? >> well, you have to remember that the u.s. is a massive exporter of commodities. the u.s. -- for example, the u.s. has met long on energy now. it's going to be a massive importer, as well as ex portspo. many billions in have been invested in the u.s. in order to stimulate that capacity.

the results are pretty obvious. i think the globalization, or the anti-globalization story say little difficult red herring. because globalization say fact. it's not going away. it's here forever. >> yes. who are the biggest players in the shipping market right now? and do you see that changing? >> the biggest player, it depend where is you are in the world. so, in asia, the big players tend to be national champions. so, you have companies like costco in china. or the major japanese entities. in europe, it's a much more entrepreneurial market. with a lot more individual private companies. some listed like maersk in denmark. but a lot of large enpreneurial companies. one of the answers is that the u.s. has something called a

jones act, a bake act passed in 1920. but all ships trading in u.s. ports to fly the u.s. flag which essentially means that americans pay roughly four times the market price for transportation of goods moving domestically. >> that much? >> that much. >> so, who are the ones investing in shipping at this stage? >> shipping investors are private companies who are self-funded. and the public markets, relatively small, in terms of the size of the shipping unit. so, while nasdaq is probably the most active market for shipping, if you look at shipping stocks they're more or less macro caps many of them. so it still remains largely a private business. we're seeing more interest now from institutions.

and by which i mean, pension funds, real institutions. there has been some participation from private equity. but now the real institutions are starting to get serious about it. >> in the aftermath of the financial crisis but also the secure row zone debt crisis, we've seen a huge shrinkage of shipping finance, for example? some selling their shipping operations. do you feel that the u.s. as a boutique firm, if you will, that's a great opportunity, that's a niche play in the market? >> logically, the absence of that finance could enhance the opportunity for liquidity. so in that sense, it's a definite opportunity for equity. as far as offering debt is concerned, that's a more nuanced question. that capacity will probably be replaced over time. and most lick li tick laterallyn

banks. >> thank you. we want to take a look at what's happening in the markets. the dollar trading at a two-month low after friday. let's have a look at the boards. the dollar, 1.0859. we're also seeing flows into the safe havens. for example, up almost 1%. what we're seeing here is a former high for the yen against the u.s. dollar. >> indeed, and looking at the bond markets, we have seen a little bit of a rally in the market. some is saying that's a victory in the region. but the latest speech over the weekend, talking about how the eu will die.

and that those comments were kind of ignored this time around. it seems the focus is where else. very quickly, we still have a guest in the studio, tony foster from marine capital. just looking at an e-mail coming through from linda saying, the greek shippers got walloped. will they ever come back, the penny stocks, are they good investments? >> big question. >> in about ten seconds. >> they're probably overbought already. many those stock, penny stocks are effectively out of the money options. >> okay. we've got to go. u.s. futures, we were setting ourselves up for a slightly softer spot. indicating indeed a much softer spot at the moment. that's it for us today. see you former. bye for now.

good morning. the markets pointing to lows on wall street as the failed health care bill rattles confidence. what's next as the president suffers his first major defeat on capitol hill. will he be able to make it and we'll talk tax reform. and the final four coming up monday, march 27th, 2017, "worldwide exchange" begins right now. ♪