Skip to main content

tv   Street Signs  CNBC  August 8, 2017 4:00am-5:00am EDT

4:00 am
welcome to "street signs." i'm caroline roth. and these are your headlines outflows of stand life's funds pull shares near the bottom of the european equity market along abidine. the ceo tells c nbc he's positive ahead of the tieup. >> the main thing for me is not just the half yearly numbers but the fact that we saw increased diversionfication of our flows, so execution of strategy was in a good place which puts i think firm
4:01 am
foundations for the merger losing its find. pandora blames a challenging u.s. retail environment for its second quarter profit miss shares off by 9% and trade data from china disappoints but the country maintains a healthy surplus with the u.s. good morning, everyone, it is tuesday and taking a look at the map this morning, the stoxx 600 isn't going anywhere we're just holding ton the flat line the stoxx just out of the gates up by 0.2% now, an hour into the trading session we are flat as a pancake. again, that's a pretty quiet day when it comes to economic data the only piece of data we got out is german trade numbers, german exports with its fastest
4:02 am
fall in two years we got the china to focus on and that did lead to the basic metals stocks lower. let's show you the european market it's one by one ftse 100 up by a few points and the xetra dax coming by the sectors, one of the worst sectors with the downside of 0.4% and travel and leisure also down 0.7% let's give you more info on that trade data from china while it came in below expectations for the month of july, exports rose 7%, and imports down 11% that left the country with a trade surplus with nearly $7 billion for the month. let's dig into those numbers with miranda carr. miranda was his an aberration or
4:03 am
a slowdown when can comes to fundamental factors? >> i think with the economy and western markets, we had a very surprisingly strong june numbers and surprisingly weak july numbers those two factors even out. and the last two months we're see improving economies in the western economies both in the u.s. and eu demands picking up almost in double digits. so that's pretty positive. and also domestics when you think of excavators, machine tools, consumers to commodities, they're not great but coming along pretty well. but what china's throwing out is the huge anomalies in the markets. you got two factors messing up the figures and messing up basically the demand picture >> but i do need to pick up on
4:04 am
two points the fact exports to the eu has been the u.s.' biggest trading partner with the drop in double digits do you think this is a sign of slowdown in the u.s. and eu? >> well, the u.s. numbers were particularly strong in june, but the previous year down 10% a lot of it is unfavorable comparisons. but you look, go back to end of last year, exports to the u.s. were only rising by 2% whereas now they're rising 14% so that's a big shift. that's a trend that's not just sort of monkey work so the pickup from the u.s. and europe people markets seems from a very weak base -- i mean, we're not talking about a fantastic year last year, european exports 2% last year. so you're talking from a very weak base things are looking better
4:05 am
again, don't get too excited but i don't see this as a major thing. >> one thing that's probably going to add more fuel to the fire, the chinese/u.s. trade spot that is the trade with the u.s. for the first five months, that's the increase, 5.9%. by don't know what the trade is going to be coming from u.s. towards china. to what extent does that slow down the trade between the two countries? >> you get strange arguments on both side. steel exports have been falling. so, a keep point of the trump campaign was steel that's now falling and trying to say, we've addressed your concerns, that's fine you know, the currency is going up, appreciated by 3%. >> that's automatll tactical movements? >> it's very tricky with the two things that negotiators are
4:06 am
coming at you with is, these are no longer issues we still have obviously exports. you know, the textiles will replace goods coming into the u.s. market that they could then take action on but then china argues, well, we'd like to import more of europe, but we want high-end, advanced machinery, advanced energy in particular, which the u.s. doesn't want to export. i think the negotiations are going to be quite tricky because china's answered a lot of the problems that the u.s. has had >> that's exactly my question, when do you see that trade action being taken how severe, how aggressive, do you think the retaliation will be on the part of china? can they afford to be that aggressive because they don't want to slow down trade with their biggest trade partner? >> well, some of the measures that china takes is more internally focused you can see the big if you remember is to try to open up
4:07 am
china's financial services markets. some of the internet markets, but basically if it doesn't get action on trade it did limit the markets with the likes of facebook, google or any of the -- any of the financial services companies, they want to get into china and china can just keep that -- keep those barriers up if they're not -- if they've got trade sanctions imposed by the u.s. >> it's been roughly two years, exactly two years, in fact, august 2015, that was the month where we worried so much about the unpredictability of china's currency and the action of the pec. we've seen a stable economy, by and large, we've seen a pretty stable currency which has been rising a little bit. but you said in a recent note that this masks some of the underlying problems.
4:08 am
>> we're now in a slightly weird point in the marketplace -- kind of a weird place, ahead of the congress the pboc, we did a recent survey recently in the bond investors, no one expects the leverage to continue it might be up to the mighty congress but basically in the next few months we're not going to see any shift in the policy things are going to be kept stable and it's only the external risks that china has to worry about. everything has been going back to the safe, going back to the banks, keeping the market steady everything is being held very, very stable, up until the congress >> up until that congress which i guess happens in november -- right? >> yeah. >> what's the obvious trade for china at this point? is there one
4:09 am
or isn't there one because everything is to be kept stable? >> i think the market -- just in general, the markets, in terms of monetary policy we're seeing a slight shift yields are gradually moderating we think they're going to peek at 2.7, 2.8. that stock's moderating, coming back to it again, things are loosening up again we do see risks in the private sector local government financing platforms. there's more risk there. basically moderating after the june squeeze yield moderating markets are stable. and it's really only as i say external risks >> miranda, thank you so much for that insight in other earnings news this morning, pandora shares we heard on the headlines falling after the second quarter profit. no expectations. dane ish protested a profit
4:10 am
revenue grew at 12% year on year helping pandora to reaffirm their full-year guidance and deutsche post driven by strength in its express delivery business it rose 12%. helping the german mailing logistics company to reaffirm its targets and says no material impact from the cyber attack in ukraine in the end of june and it's seen higher volumes, shares up nicely 1.16% on the german market and unip raises profits. now seeing earnings before interest in tax of 1.2 billion pounds up from previous forecasts. and shares of junglinerich
4:11 am
raises outlook as the german forklift manufacturer poses a second quarter even and the fund manager alex, always a pleasure to talk to you about some of your stock picks on the shelf why do you like it each? obviously, you didn't know what the numbers were going to bring today. >> yeah, no, we've been invested in them for a long period of time basically the second largest forklift truck business in europe third largest globally and the reason we like the stock, it boasts the theme of online retail, bringing more transaction online only about 10% of all retail globally is done online at the moment and when that happens you need to warehouse it. and things need to be brought out, packed and transported.
4:12 am
it's not just a forklift truck, but logistics system as well we see this business as a play on growth and online retail which is a key and future trend that will only develop and very important. >> and that story certainly makes sense, alex. but at the same time, given that this is a german company that probably exports quite a bit isn't going to be hit by the 1.18 exchange rate for the dollar >> that's certainly important for the business 8% of the company's revenue actually has come from europe. the exposure is quite well mitigated to that effect >> let's talk about some of the countries you like one of them being asal in the semi conductor space. the only issue with stock it has business with 30% in the last year is it now time to take profit? >> you're right, the stock has had a really good performance when you compare it to businesses like advance materials or land research, the
4:13 am
company has actually seen relative underperformance. certainly, the second point i'd state to valuation, if you look at this business, relative to its ten-year average, one year out, trading at 24 times earning. over the last ten years, it averaged 27 times. but i think the important thing, it's not just the multiple but the actual earning that goes low. this is a business that set out a very clear target in 2016 in capital markets. they said by 2020 we could do at least nine euros of bps. the next iteration of machines that they're rolling out at the moment that management has said they're at an inflexion point now, they've got 5 billion plus euro i think that mind-set is very, very achievable, you could be looking at 10, 11, 12, something like that. which i think allows asml to
4:14 am
grow very comfortably. >> my question to you is to what extent asml is at risk from the likes of apple and samsung which are now trying to streamline the production of ships in-house they want to build this vertical integration. they want to simply not use the likes of asml. and i think there was a big story of one of its partners is it asml with apple and smith not meeting them >> intel is actually 108% investor in asml so the interests to the businesses are very close aligned. i think what's fascinating if you ache asml's biggest customer, intel, "today's take," samsung, every one of those businesses, totally in line, and it's supporting the technology
4:15 am
that as said ml ml you appreciate the importance of the law, things have to fit. and if you believe in all of these trends, better memory, better devices, you can't fill it out without asml, simple as that iand now the cost of gene secrets falling and demand would rise, obviously this is a player that would do very well. given that costs are falling, wouldn't more competitors come into the space and try to eat some of the cake >> that's certainly an argument that's been leveled for this company. if you look at the market share, somewhere still along 70 or 80%. generally, we intend to only invest in businesses with high market share you need to get the regulators
4:16 am
on board so it proves it this business, illumina they're still investing 50 on research and development. there's a close link to the academic community and the big businesses that are actually buying the machines and actually dislodging that business is proving i think a lot harder than the skeptics of the stock mentioned. >> and they wanted to buy that business a couple years ago, illumina didn't play along at that point, they said this is nice to have, not a must-have. a couple years later one of the big players came out and said this is a must-have company and we need to go in and buy it? >> i think that's a plausible scenario, indeed for the future trends that we look at, whether it's molecular diagnostics, and
4:17 am
all of that sequencing very few people are in the market, so there's certainly a scarcity value attached. >> alex, thank you for your time fund manager at heptagon capital. still coming up on the show -- we check in on some of the larger hotel players ahead, after the break do stick around.
4:18 am
4:19 am
4:20 am
ihd share ihg shares are trr with a drop in the second quarter. and weighing on the numbers, the revenue also declined from the first quarter. and marriott international has a lower outlook for its enorth
4:21 am
american market. the world's largest hotel chain reported income up 68% but shares fell on the plymouth forecast seema mody has more. >> marriott, the world's largest hotel chain reporting better earnings, much higher than what the team was expecting revenue also a beat at $5.8 billion but i also want to draw your attention to net income second quarter net income totals $414 million a 68% increase over the prior year period. management says a lot of this has to do with strong performance in asia-pacific and europe the company pointing out some strong markets like shanghai, barcelona and london asia has been the big focus for marriott today the big news that the company is signing up with this joint venture with alibaba the stock is up higher, already
4:22 am
45% year to date, making the best performing hotel stocks this year. back to you. ♪ ey says, quote, unprecedented market disruption is pushing companies to divest over half of the firms surveyed by ey said global and political insecurity drove sales diversity leader at ey joins us to discuss the support of the rest of the industry and divestments for 2017 what are those unprecedented market sources exactly >> carolin, great question we've got mac book volume difficult. geopolitical uncertainty in so many markets we have great disruption right now because of technological change it's everywhere and it's disrupting so many business models and we have shareholder activists all over the place
4:23 am
driving activity >> i just want to pick up on that point we've seen a lot of shareholder activism in the u.s. but only recently it's reached europe with some of the big ones like nestle's being targeted. do you think that increasing will be driving divestments? at this point, we know nestle was going to sell off some of its confectionary business anyway do you think this is an organic decision or one driven by shareholder activism >> i think there are two pieces. i think there's the portfolio management to your point, carolin. that's looking at things that are noncore. and things that are underperforming perhaps in somebody else's hands. that's one piece of it and but then you also have the shareholder activism piece all of the conversations with clients in asia pacific and europe, that's going to grow in asia-pacific >> at what point do companies
4:24 am
invest a whole too much? we've seen that from factor like oil price and profits plummeting at what point do we see the profit-drivers being cut off to the extent that we simply can't invest in these companies anymore? >> yeah, i think right now, disruption is going to continue to drive these divestments, carolin, there's no question about that what we're seeing companies are using the proceeds right now from investments to come back and invest in digital technology whether automation robotics, software, internet and because of that disruption and what technology is doing to everybody's business model, we believe that will continue >> one of the pieces of information in your report, i found it really interesting, it was fascinating, you say that in europe there's more pressure to sell at a certain speed. rather than at the right price why is there so much pressure on speed in europe and are we seeing fire sale prices in europe >> you know, that's a great question, actually because it's
4:25 am
a bit of a dichotomy between americas and europe. in europe, you're seeing a couple things, number one, you've got the post-june 2016 hangover from brexit there was a bit of stagnation in the market for a period of time. and i think you're seeing that market get caught up i think because of that stagnation, that drove a lot of companies to perhaps make decisions that were hasty to drive further activity >> do glconglomerates still work i knee they're completely out of fashion. they want to drive the noncore that begs the question are they value or is it about valuation >> i think some parts can offer value. it's how they unicommunicate tht core to their stakeholders down to the street. that's what it comes down. >> thank you so much in other news, citigroup
4:26 am
will pay $130 million to settle a libel-rigging lawsuit in the u.s. british lender barclays reached a similar agreement in 2015 for $120 million and on a programming note make sure you tune to cnbc today at 17:30 cst with an interview with jamie dimon we have more "street signs" in a few minutes. don't go away. your brain is an amazing thing. but as you get older, it naturally begins to change, causing a lack of sharpness, or even trouble with recall. thankfully, the breakthrough in prevagen helps your brain and actually improves memory. the secret is an ingredient originally discovered... in jellyfish. in clinical trials, prevagen has been shown to improve short-term memory.
4:27 am
prevagen. the name to remember.
4:28 am
- honey, remember to slaughter the tomatoes with the nun. (screaming) remember to water the tomatoes when you're done. - [announcer] sometimes, hearing isn't easy. - lick a carp. lookin' sharp. - [announcer] but now, there's a simple way to enhance it because now there's eargo plus. the virtually invisible hearing aid with amazing sound quality. designed with patented flexi fibers, so they're suspended completely inside the ear canal. and so small, that they're virtually invisible. just pop them in and tap each ear to find the right setting for you. a single nighttime charge will last you an entire day. - sauerkraut the slum lord. watch out for the skateboard. - [announcer] don't wait, call or go online now for a free sample pair to experience the incredible comfort
4:29 am
and invisibility of eargo plus for yourself.
4:30 am
hello and welcome back to "street signs. i'm carolin roth and these are your headlines outflows at stand life's fund pull shares near the bottom of the european equity market alongside partner abidine. the ceo tells cnbc, he's positive ahead of the tieup. >> the main thing for me, though, is not just the half yearly numbers but the fact that we saw increases diversification of our flows so execution of strategy was in a good place which puts i think, firm foundations for the merger trade data from china disappoints with july imports and exports missing expectations but the country maintains a
4:31 am
healthy surplus with the u.s a former google engineer says he is exploring legal remedies after getting fired for writing a controversial memo on gender inequality. all right. if you're just tuning in, love to see whether today is going to be another record-breaking day for u.s. equity markets. yesterday was one of those the dow extended its winning streak to ten days looks like we'll see a little profit-taking today but only slightly so. the dow jones seen off by less than 0.5 points and the nasdaq by 0.72. we're in the midst of office trading, the ftse 100 down by 0.1% the xetra dax up
4:32 am
but that data overall didn't dents the euro too much. we want to show you what's happening with the euro dollar at this point. in fact a touch higher still trading just about the 1.18 level. i want to draw your attention to what's happening with the aussie dollar, with the proxy from china despite the disappointing numbers from china, that paired with the aussie dollar, the aussie dollar is higher by 2%. valeant earnings due expected to post $2.4 billion. shares have doubled in the past three months held by a positive first quarter and progress in reducing its debt. but the stock is still 95% off the highs made in august2015 nolan langford joins us live
4:33 am
given the stocks are 10% weak on the back of numbers. are we in for a positive surprise >> we're expecting something positive, i think, carolin, i think the 97 cents in earnings that you mentioned i think what's more important in that is the commentary that the company puts forth >> all right unfortunately, it seems as though we'rehaving issues with the line can we re-establish the line all right. we will try and re-establish the line in just a second. obviously want to continue this very exciting conversation given that this fund manager is so positive on valeant bonds. netflix has bought publisher millarworld as it beefs up its characters in future shows
4:34 am
behind titles like "wanted," "kick ass" and "kingsmen." the latter two were not part of the deal this is the first time netflix has acquired a history in its 20-year history. and cbs is going to expand streaming for its growing audience thanks to higher licensing and subscription fees, louisa we have more. cbs growing revenues and earnings, 9% to $3.6 billion surpassing expectations less than $3.1 billion in revenue six cents better than analysts' projections. cbs says its fees to 25% in the second quarter they're also seeing the benefit of recent
4:35 am
skinny bundle deals with youtube tv and hulu. >> it's being a leading player in the newskinny bundles and with our growing over the top channels we're is the up to succeed, no matter how people choose to consumer their content. >> les moonves announced cbs all access and showtime continue to grow beyond expectations and are track to surpass a combined 4 million subscribers by the end of the year. also expressed that all-access will expand into canada next year and cbs is working on a new direct to consumer sports service. >> later this year, we will roll out a 24/7 live streaming channel like cbsn for sports as part of the ongoing ott strategy it does not yet have a name. we think sports fans are looking for something like this, and that opportunity is significant.
4:36 am
>> an moonves saying they're getting credit for viewing for a long period of time, up to a month after the show initially airs cbs now drives less than 40% of its revenue from advertising as it diversifies away from reliance on the volatile ad market back to you. meanwhile, disney is poised to reveal its earning. make sure you tune in at 22:0 with an interview with ceo bob iger we want to go back to the conversation about valeant, joining us on the line once again from chicago just a couple minutes ago, you made the point this is all about the outlook today, noland. why? >> yes, as we know, valeant has had challenges over the last couple of years. they brought in a new ceo to sort of stabilize and turn around the business.
4:37 am
and the reality is the two core parts of their business are performing pretty well they get the majority of from the bausch & lomb business those two make up the revenues and the iba numbers. those are going to be far more important than what happens in generics they've been more of a self-help story where they're actually selling off underperforming drugs that pulled on a huge debt load the dead reduction and how the two core areas of business are performing, i think that will be really important for investors >> let me play devil's advocate here because revenues will be declining the next two years as this company will be facing competition from other drugs so, how do you square this up? >> you're right. you remember the revenues and
4:38 am
iba numbers. and we expect the numbers to actually bottom in 2018 and then actually turn positive from there. remember, they are launching new drugs. and they have a new gastro drug that they just launched. we expect those numbers to be hitting the books and ramping up slowly we think as 2018 moves closer, we think investors aren't just actually focusing on the future. and those numbers look more positive than they have in the last year or so. >> noland, obviously, there was one very famous investor who got burned by valeant, bill ackman of pershing square he was inquested in the equity zpp that ma does that make you more cautious about investing in the equity?
4:39 am
is there a tale, a lesson, you want to take away from his demands? >> well, one of the things i do know as an investor, the pain of buying at 100 and watching something go to 10 is only trumped by the pain of actually selling something at 10 and watching it go to 100. and at this point, you know, i think the horrendous losses are behind the company i think this is a turn-around story. we actually do like what they're doing on the dak side. again, it's a deleveraging story. they have quite a few stories of bonds especially for your viewers in europe. your yields are a lot lower than our yields in the u.s. which are still pretty low but they have a lot of series of bonds you can buy from valeant we're getting nice yields in the 8%, 9% range but also capital potential in the bond. there's a few ways to play the story if viewers are gun shy of buying the equity there's a few
4:40 am
ways to buy it on the deck side also >> i just want to add that valeant is one of your largest positions. you're snapping up as many of your 2020 and 2014 ones. noland langford, ceo and portfolio manager. in other news, google has fired the employee whose memo argued there are fewer women in the tech industry because of biological differences engineer james demore said he's exploring possible legal remedies in a company know, the ceo sind d sindar pichai said shares in tesla have risen sharply this year, driving its market cap above ford and gm
4:41 am
staying in the sector, japanese automaker toyota is expanding its hybrid plant in europe joining us with the story, mikiko >> yes, ahead of it in toyota in europe, aside from one lexus brand cars, the automaker plans to offer two options such as drive power by 2020. the goal is to lift its hybrid sales in europe to half of its total in the region by 2020 up 18 percentage points by next year starting next week in germany, toyota will offer a $4,000 discount for drivers switching from a diesel end make tor to oe of the hybrid models and several major europe cities
4:42 am
restricting the cars toyota has hybrid car sales in europe which includes russia and turkey climbed over 40% last year sales are continuing to stay strong, rising 44% in the first six months the hybrid version of the compact suv accounts for about 80% of the model's sales toyota is looking for hybrid to grow further starting in 2040, demand for electric cars are expected to climb sharmly with sales on gasoline and diesel vehicles toyota said the firm will eventually shift to selling electric vehicles building on that technology of working with motors and batteries in hybrid vehicles back to you. >> thank you for that. staying in the region, china is pushing for a diplomatic to the north korean crisis. speaking in the philippines, the
4:43 am
china's foreign minister said d dialogue is better china will bear the main costs because of their economic ties north korea is vowing, quote, a thousand times retaliation to the united states. andrea mitchell filed this report on the escalating tensions in the korean peninsula. >> reporter: north koreans lining up to watch state on tv, 33ing the u.s. for a thousands revenge. warning it's a mistake for americans to think they're safe. president trump talking for an hour to his secretary of state at a summit today. after delivering say message >> best signal that north korea could give us that they are prepared to talk would be to stop the missile launches. >> reporter: in a test ten days
4:44 am
a missile able to reach as star as chicago has alarmed the world. that, u.s. officials call unusual and unprecedented submarine technology which hopes to develop sea missiles as well. producing a diplomatic win for the white house. a unanimous $1 billion in sanctions against kim jong-un. both china and russia voting yes. with the potential plan for military options >> there's nothing like the threat of a ballistic missile landing on your homeland to clarify your thinking. the united states has to take prudent military planning into account. >> reporter: while at that asia summit, tillerson also warning russia's foreign minister the election hacking has seriously damaged relations. >> this has created serious mistrust between our two conducts >> reporter: vladimir putin spear fishing inside of siberia does not appear to be worried. >> that was nbc's chief foreign
4:45 am
affairs correspondent andrea mitchell reporting there in other news, markets edged higher that south african lawmakers would be allowed to vote in secret on president zuma in all confidence he could step down as party leader by the end of the year. he's had a rocky term about his management of the economy. and the united states is reportedly preparing sanctions against more venezuelan officials close to president nicholholaolas maduro, however,s not expected to include penalties on the oil sector. now, would you take money advised from a robot that's after a short break sckrod.doti aun
4:46 am
4:47 am
4:48 am
4:49 am
shares in standard life are trading near the bottom of the stoxx 600 due to flows from the fund however, the fund manager offered a 6% increase. those numbers come as standard life nears completing an $11 billion merger earlier, they told cnbc where the company is setting up shop after brexit >> to asset management, there are two clear homes. one is luxembourg, which is the heart of the ccab administration and the other strong contender has to be ireland. certainly, we're looking at putting our method company into ireland. so, i think in asset management, those will be the two strong attracters meantime, uk retail sales both slowed in the month of july
4:50 am
but an uptick in food prices upped grocery sales. growing 2.2% and the report suggests families cut back their spending on clothing and appliances as rising food prices started to bite and british companies are hiring staff by recruitment agencies at the fastest pace in two years. but they're worried about fi findifind finding staff in the future. britain's exit from the eu could worsen staff in sectors in both high-skilled and entry-level positions. well, as you may have noticed all week, we're talking about the future of how technological and cultural changes will conform our working lives in the years to come our next guest spends a lot of time thinking about the future and how robots prepare for it.
4:51 am
technology officer at wealth wizards. you guys focus on pensions you put out a recent report asking the question, are brits totally unprepared for retirement are they >> yeah, we believe they are we did a long study the way people think about retirement and what plans they have in place for it what we found 55% of retirees have said that they will plan for their retirement when they retire when you look at the figures of how much money you're put ago side for it, the average brit is not only going to be woefully unprepared at the time but also, they don't know where they can turn to for advice on that >> so, what would be the game-changing technology be then would it be robot advisers as we suggested in the read-in? or how do people get advice when not being prepared >> i think the first thing, a
4:52 am
brit should have access to a financial adviser. there are very few people in the uk comparatively to give this advice maybe only 23,000 or so. which means advice by somebody who is qualified to give that is out of reach for those people. this is where that technology comes up artificial intelligence is being used to give people advice about how much money they should be putting aside specifically for their lifestyle. for what type of person they are. how risk adverse they are. how easy it would be for them to have a loss of money based on these things, a robo adviser is able to give that advice. and people in control of their retirement is not delegating this to the government or to their employer, but having the tools and the expert help to be able to do them themselves >> how would that work in
4:53 am
practice, though because if you say there isn't enough resources in britain to have advisers, human advisers talk to many ordinary people who are woefully unprepared for the pensions how would we have enough money to have robots come in and get in contact with the people >> i think one of the main a tractions of robo advice is you're able to train artificial intelligence to give the advice a qualified financial planner would give and give it consistently and give it without making mistakes. and to do it cheaper a lot cheaper. what we've been able to do is give this advice away for a tenth of the cost that's available. or even it's available to many people from their employeras a employee benefit so, there's several robo advisers outside there, and they're pretty sophisticated but i see over the next years, they
4:54 am
can become more sophisticated and they're going to tell you who you are as a person and tailor advice on that. >> do you think people would want to see that human touch, the handshake or a cup of coffee >> yeah, i think the human element is really important. and robo advisers are going to become more and more engaging to people i think it's difficult to replace the human. what's working well at the moment, this hybrid approach, you're interacting with a human. you're making eye contact, you're talking in a very informal way about your goals and who you are as a person. but then in the background, their ability is being augmented by an expert >> what's the risk of using a robot? the risk with humans is they make human errors and they simply give you wrong advice
4:55 am
with the robo advisers they would be programmed incorrectly, is that the main risk? >> that is a ricksk, yes. one of the things we spend a lot of time mitigating against, if you program a robot and it does it wrong 40,000 times, it's going to do it 40,000 times. regulations are really supporting people getting advice so they have recourse if that advice isn't correct >> stick around for a moment what i want to share with you, all week we're talking about how the workplace is changing. that this week, we're asking you what workplace change do you want most? less time in meetings, short commute or a new boss. let us know, peet, what's your call >> i really like my boss >> you have to say this. >> the thing that works well for
4:56 am
me, very fulfilling work i think that's the thing that you'll find attracts the best talent to the workplace is that they feel that the work is meaningful >> let me see the e-mails -- too many e-mails, especially when you come back from the holidays and you realize how many e-mails there are. thank you so much for that go to cnbc.com to cast your vote it's a pretty tight say. before we leave the show, trade futures looking mixed. dow jones two points maybe another record for the dow the nasdaq by 0.5 points i'm carolin roth, "worldwide exchange" is up next see you tomorrow bye-bye.
4:57 am
4:58 am
4:59 am
5:00 am
the summer rally the couch notch it's and a close straight ahead google fires an employee who wrote a controversial memo of women in tech. details coming up. plus, besting on nostalgia, cbs gets an earnings boost an reviving a '90s classic. it's tuesday, august 8th, 2017 and "worldwide exchange" begins right now. ♪ good morning, welcome to

138 Views

info Stream Only

Uploaded by TV Archive on