hello. welcome to "street signs." i'm carolin roth these are your headlines the white house says it is not seeking to overthrow north korea's government after pyongyang brands president trump's comments on kim jong-un a declaration of war supervisory borards of two

companies will meet today to thrash out a rail deal nestle says it will speed up share buybacks and pursue external growth opportunities as the swiss company pledges to improve margins and cut costs. good morning, everyone it's tuesday glad you're with us once again we have another jam packed show. let's kick things off with a look at the equity markets you're one-hour into the trading session. we're fairly even steven at this point. the latest escalation in the war of words between north korea and the u.s. is not helping. we are largely brushing that off. stoxx 600 is close to session highs. safe havens are seeing inflows are gold, the yen and the swiss. markets one by one, the xetra dax is just clinging on to the flat line, off by 5 points ftse 100 off by 0.2. cac 40 up by 0.1%. when it comes to sectors, a

couple interesting things to tell you about oil is not doing too badly up 0.3% this as brent is moving closer to the $60 a barrel mark. tech seeing under-performance. you have it down by 0.3% this is as we see the weakness specifically in apple shares in the u.s. moving closer to correction territory there are plenty of reports out about apple trying to cut some of the supplies coming for its iphone 8 that might indicate that demand is weaker than expected. the other big deal we were talking about. cnbc sources say supervisory board also gather later today to discuss a potential deal between german industrial groups siemens and alstom siemens is likely to get a rail deal with alstom rather than bombardier this as they look to face a global expansion drive by

china's crrc straight back to politics, angela merkel has begun the task of trying to build a coalition government after a fourth term as chancellor. a jamaica coalition remains the top option but talks could be tough as one party said they would not agree to a tie up at any price. merkel also kept the door open to a rerun of the grand coalition with the center-left s spd. >> translator: we will look to start discussions with the spd and the greens i believe it's important that germany gets a good, stable government i heard what the spd said about going into opposition, yet we should stay in contact. angela merkel struck a note of caution ahead of emanuel macron's speech on reforms merkel said she wanted to see countries become more

competitive. macron hoped to work closely with merkel on reforms, but the election forced the chancellor to strike a much more moderate tone let's talk about this with len grabe taylor yesterday we did see some spread widening that seems contained this morning do you think that was a knee jerk reaction? >> yeah. it's more of a longer-term perspective how to trade the german election result i think the possibility of future liability sharing has done down with the fdp likely to coming into any cole lying it makes sense that you saw a bid for german paper i think what's more interesting, if you did have any crisis related blow-up or event, like italian elections coming up a risk event, there's a soft cap there on yields. also in the short-term it's difficult to see 100 bits being

broken in the spread of spain over germany this day factor, liability sharing has taken a back seat. >> macron will be holding his important speech tonight that was going to be the centerpiece of his new legislation for europe he was hoping for more burden sharing for a eurozone budget, for the eurozone finance minister merkel can't commit to any of this, she hasn't built her coalition yet. it might be many, many weeks before that comes to fruition. do you think he's franticly rewriting his speech do you think he'll stick to his guns and what he was planning to do i guess there's more uncertainty about what he can expect from angela merkel. >> i guess he'll stick to his guns, put background pressure on the coalition formation talks. and yeah, big picture, it's difficu difficult -- even before the election, merkel was in a difficult place to where macron was in terms of eurozone budget

and finance minister because of the election results she'll have to be further away from that. it's difficult to see progress being made >> most realistically, where do you think the two sides will meet what do you think the outcome would be will we get a euro area budget will we get a common finance minister >> no, there might be token efforts on the budget front, so maybe a tiny joint budget, and yeah maybe some de facto guy or girl who has a title but limited power. >> i guess no one wants to do that job, except for the title should we worry about perceived limits when it comes to burden sharing? fewer bailouts it's all hypothetical. the eurozone economy is firing on all cylinders we're doing well there's no bailout in sight at this point >> i think when we get this next big risk veentevent, it will

we've seen very chunky bit of populist in germany, when you split the linker party and the afd. so i think when you do get a risk event whether that's italian elections or something else, you will see a bigger move in spreads because of the lack of progress on liability sharing. a lot of client also talk about we will get jergerman electionsd make progress in the eurozone. >> in a sense, listening to demayo, the new leader of the five star movement in italy over the weekend, it doesn't seem like this party would pose a threat when it comes to populism in italy he said we're not a populist party. is there really a threat coming from italy you to? >> it's still viewed by the market as a risk veentd on the h event on the horizon i think it's still in the back of market participants minds, but won't come to the fore until

we get to january, february, march. >> interesting note you wrote on potential implications for the ecb. the election in sdwregermany hao direct bearing could there be a limit when it comes to the violation of the capital ecb? >> i think when it comes to watering down some red lines in the program, there's a slightly higher wall to cross now with that situation in germany. so the margins, yeah, it makes it much harder to extend qe. they're running out of bonds, making tapering more certain >> once again, we're showing bond prices. they're barely moving. what's the best trait at this point given that we're looking at a whole lot of uncertainty when it looks at the coalition forming in germany >> we like going long portugal versus italy

we like the return to investment grade bond indices as well as your election situation. >> thank you very much for that. let's focus back on the german elections annette is on stand-by in berlin according to the most recent poll, the germans are warming up to the prospect of the jamaica coalition. >> that's exactly the case a poll conducted by the public broadcaster, ard is showing that 57% of those asked actually think that a jamaica coalition, meaning a coalition between angela merkel's party, the fdp, and the liberals and greens is something very good or good. i think germans come to the conclusion now that fgoing forward, if we get such a coalition, it could be a good thing for germany as this coalition could be more proactive when it comes to

policy reforms the liberals made it clear they want to push through major points, lower taxes. the greens are adamant about the fact that they need to see a green footprint also in the next government if they're taking place in that government so it could overall be quite an interesting four years, and also perhaps a positive four years for germany. the big question mark is whether they come to a conclusion when it comes to the coalition talks, and whether we are going to see a coalition contract at the end of these negotiations. nobody expects that to happen very much before christmas, even some people suggest it could be early next year. the spd is somehow playing a role in that equation with angela merkel saying she wants to keep the dialogue open with the social democrats, even though they have now not only

once stressed they want to go into opposition. i caught unon tp on the ground h the deputy leader who also gave us his take about whether there's a bit of room open for negotiations or not. take a listen. >> that was a black day for the social democracy in germany and was third election in a row that we didn't win the election on the federal level. the voters were clear we have to go into the opposition there's another reason for that. because for the first time since world war ii, we have a right wing extremist entering the parliament with double digit margins. we cannot possibly led them lead the opposition in the parliament that's the role the spd has to encounter. on the other hand, i think we have -- with the greens and

liberals, four parties who have talked a lot about their ideas, from modernizing germany, they can show they can do that in their campaigns and governments. so that's their role, our role as the opposition. >> in case the coalition talks are getting difficult between three or four parties, if you want to have a fourth party like the ccu, would you then say we can rethink our role and then also start coalition talks is that like a fixed -- >> no. the door is closed the voters have spoken though remade good work in the government, our ministers s dssd we have lost votes i think it's clear we have to regain strength in the opposition >> let's look at the party

program and huge criticism comes from many people that your party moved to the center. is the future for the spd that you're going to move to the left and play more the social card? >> i think chancellor merkel tried to give the impression there are no differences between the two parties. that's wrong there are differences. it's easier to show them if you don't govern together in a coalition cabinet, but rather lead the opposition against the conservative policies. we have totally different understandings of tax policies, policies for elderly people, for education,policies a lot of other things. don't want a rise in the military budget 30 billion euros a year, we would rather spend the money for education, families and future. there are huge differences they will come more easily if

we're in the opposition. i guess that will be the fundamental for winning the next election in 2021, four years to go now it's time for gous to got the opposition >> you're sticking with your partly leader, martin schulz, also responsible for the bad results of the cdu spd why are you sticking to him as the party leader >> i think martin schulz led a remarkable campaign. he was elected as chairman of our party just half a year ago he started the reform process. it's very easy to just throw out leaders after loss of elections, but i don't think that's the right thing to do. i think many people in the social democratic party want martin schulz as leader of our party. we have elections for the

leadership of the party in december marnt sh martin schulz is the right person to lead the party >> i think the internal power struggles have now just started. we have seen this agreement, the chief whip of the party in policy, so that's just the beginning of the story i think everybody keeping their feet quite -- keeping it very quiet at the moment before these upcoming elections in lower saxony it could be a bad sign also for them to lose another federal election this year so coalition talks only will start after the 15th of october in germany and could drag on as we were saying for quite a long time there is, of course, an adverse

risk scenario that if they are not coming together, those three or four parties, if you take into account the bavarian sister party of angela merkel's party, it could also -- we could also end up in a scenario where germany could end up in new elections this is something that could drag seriously on the german economy nobody wants it here in political berlin >> i don't think anyone has the stamina for that now thank you very much for that e-mail the show. streetsignseurope@cnbc.com you can find us on twitter, streetsignseurope@cnbc and tweet me @carolincnbc. coming up, north korea says a tweet from donald trump amounts to a declaration of war. we'll get the latest after the short break. my name is jeff sheldon,

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welcome back the uk brexit secretary david davis promised that the uk will honor pre-existing financial commitments to the eu. speaking after the start of the fourth round of brexit talks, davis said a divorce bill would need to be linked to a deal on future economic ties >> on the financial settlement we do not want our eu partners to worry they will need to pay more or receive less over the remainder of the current budget plan as a result of our decision to leave the uk will honor commitments we have made during the period of our membership but it's obvious that reaching a conclusion on this issue can only be done in the context of and in accordance with a new deep and special partnership with the european union. so the uk is absolutely committed to work through the detail >> the stalemate over the

divorce bill threatens to drag on with the eu's michael barnier reiterating that trade talks cannot begin until the financial settlement is agreed upon. >> the european union is keen and eager to understand better how the uk government will translate the prime minister's speech into negotiating positions. this is essential and would enable us to advance this week, i hope, and make real progress over the coming months real progress under three main issues, citizens, financial settlement, is essential to move the discussion as well as on the future let's get back to one of our top stories. tensions between the u.s. and north korea reached a new level as the foreign minister said

trump's haven't comments amount to a declaration of war, threatening to shut down american aircraft outside of north korean airspace. t off the comments, gold rose to the $1300 level. let's go to chery kang this is all based on one tweet that donald trump sent over the weekend. >> exactly we saw -- we can sort of expect north korea to react quite sensitively to tweets like that because it's basically taking north korea the wrong way. and some say this could be the north korean way of building up justification over what could come next as we have been warned by north korean leader kim jong-un himself late last week about how the regime is ready to make the u.s. pay dearly and this is north korean foreign

minister releasing yet another statement as he wrapped up his new york schedule, calling the latest tweets and words coming from the u.s. president himself a declaration of war take a listen to what he had to say. >> translator: the u.n. charter stipulates the right of all countries to self-defense. since the u.s. has made a declaration of war, we will have every right to make counter measures, including the right to shoot down the united states strategic bombers, even if they don't come into our airspace >> we know north korea has a long history of making claims that some actions by the u.s. or south korea is a declaration of war. but certainly the optics of it this time around, and i think that's what markets are reacting to, is that what we are seeing from the u.s. leader is quite different reacting to north korea in a very similar level of harsh rhetoric this time around. and in the meantime, the white house, the trump administration,

other than the president himself, is finding themselves having to defend some of his comments and this takes us back to the u.n. general assembly speech by the u.s. president there was that "l.a. times" report talking about -- reporting how the president was advised not to provoke the situation and attack kim jong-u in that speech, but trump did the very thing he was advised not to in that report. here is white house press secretary sarah sanders refuting such reports >> that's a false narrative. the national security team was involved and engaged throughout the speech writing process and was happy with the president's speech at the u.n. >> looking ahead into what could come next coming out of north korea, the south korean news agency this morning was

reporting some spy agency officials in south korea that north korea is boosting defense on its east coast and moving some planes to that region certainly tensions remain very much high after that ungenera.n general assembly speech. ahmed north korea's provocative actions, shinzo abe called for a snap election on thursday makiko has more. >> reporter: at a press conference on monday evening they officially announced attention to dissolve the lower house on thursday and call for a snap election. the election will be held october 22nd. abe said his party will deal with north korea as well as efforts to implementthe economy. abe has taken a tougher stance

against north korea aswis missiles have kept flying over japan. another more central issue is whether or not to raise the consumption tax from 8% to 10% the tax hike is scheduled for october 2019 which will bring in around $50 billion of increased revenue. the government originally planned to use the bulk of that to pay off public debt, but with the election in mind, abe said he will redirect $20 billions t be spent on providing free education and parenting support. the large opposition group, the democratic party, has stressed that all of the tax hike revenue should be spent on public interests. another upcoming opposition force, the party of hope, launchedyesterday by a governo has said the tax hike should be postponed indefinitely many say the timing of the election shows abe's confidence of a win

in a three-day opinion poll conducted through sunday by the nikkei, 44% of respondents said they plan to vote for the ruling ldp followed by 8% for the two main opposition parties. 465 seats are up for grabs, abe declared he will resign if he's unable to reach a majority that's all from the nikkei back to you. >> thank you very much for that. still coming up, nestle's ceo holds his first investor seminar with daniel loeb watching closely we'll have more on a high stakes day for nestle after this short break. 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.

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welcome back to "street signs. i'm carolin roth these are your headlines the white house says it is not seeking to overthrow north korea's government after po pyongyang views president trump's comments on north korea a declaration of war >> it's not a declaration of war. shares of siemens and alstom trade lower as the supervisory boards of both company also meet today to thrash out a rail deal. nestle says it will speed up share buybacks and pursue external growth opportunities as the swiss company pledges to improve margins and cut costs.

a quick look at european markets. we are lower the ftse 100 is off by 0.25% the xetra dax off by 0.1%. the cac 40 is close to the flat line we have the latest escalation and war of words between the u.s. and north korea, and then that tech selloff in the u.s. which does not bode well for tech stocks over here. quick look at the fx markets, the yen slightly higher against the dollar not a huge move when it comes to the safe haven currencies. that level is -- that pair is trading at 111.67. the euro/dollar still feeling the pain from the german election outcome close to the 1.1810 handle, off by 0.3%

u.s. futures look like this. there you go somewhat mixed the dow jones seen up by 20 points this is after the dow fell for the third straight day yesterday. the longest losing streak since early august the nasdaq having the worst day since september 5th. closing at more than two-week low. this is in part because of all the concerns around apple. we'll get more on that in a bit. first, let's get back to one of our top stories here in europe nestle ceo mark snyder says the pace of change has picked up, the company needs to execute faster than before schneider made the comments at the investment seminar, his first since joining the company. he also confirmed the commitment to food and beverages. the company unveiled a margin profit target of 17.5% to 18.5% by 2020 and confirmed a mid single growth target for 2020. many investors are keen to know of any potential plans that snyder may have for l'oreal

following the death of betancourt the issues at nestle have been accentuated by activist investor daniel loeb. he announced he had taken a 3$35 billion stake in nestle. generally agreeing with the direction, loeb called for greater urgency. alongside that, third point called for the sale of noncore assets like l'oreal on top of an aggressive improvement in returns. gemma acton has more on this story. just looking at the market reaction nestle is up, but flip-flopping all morning. not a lot of excitement here >> very muted reaction, i think that's because the news is muted as well. they're saying, yes, we're on track, moving ahead, we'll try to do things faster. let's remember that expectations for this were low in the first place.

analysts were not excited about this event we're seeing that reflected in the comments coming through. yes, perhaps this signals a slight improvement to forecasts, people say around 5%, but nothing wholesale or groundbreaking here. >> so far we have no news on what nestle plans to do with l'oreal. that was one of the expectations or key sticking points between lobe and nestle. so far that has not been addressed. i guess that's causing disappointment, too. >> that's right. that's the key point that wasn't addressed in terms of everything lobe was calling for they wanted to look at portfolio yesterday, they wanted to do a share buyback, wanted a profit margin target introduced which is important because this is a company focused on sales, sales targets and growing volumes rather than unnecessarily focusing on the profitability of the two metrics. they got that as well. so yes, the l'oreal stake is one

thing not addressed. on that note, you think it makes sense, because they can't give every single thing away up front, which has been the question what will they produce don't track? so if they're not pressed to do something with the l'oreal stake, i can understand them wanting to wait. >> financially it's been an attractive investment. that said, in terms of the product category, makeup doesn't really fit into the new categories that nestle's focusing on, like pet care, health and nutrition, wellness really doesn't fit, does it? >> it doesn't. if you look at this a different way, as nestle seeks to expand into new target areas, right now it seems there's nothing on the horizon that they want to pile into but the l'oreal stake gives them the possibility do that and monetize that.

it's just an option for them doesn't seem much a point in seeking to monetize that now >> the producers always tease us with pictures of chocolates. nestle doesn't just produce chocolate. it's a big part, but primarily coffee, frozen food, ready meals, not healthier food. >> we may need to update our videos given the new focus in infant formulas. >> whenever i travel to nestle headquarters, they always give you a little chocolate shares in facebook had their worst day since early november on monday followingalling 4.5%. this after new revelations on how russian operatives bought d ads. according to a source, facebook will share more detail on the ads with congressional investigators looking into russian political interference for more on that story, go to

cnbc.com the s.e.c. chairman only learned about the 2016 hacking of its systems last month. that's according to reuters. jay clayton had been on the job since may. investigators are looking into suspicious trading that happened after hackers accessed financial data and the s.e.c.'s edgar system. deloitte revealed it suffered from a hack of client data the accounting firm said clients and authorities have been notified deloitte provided few details. uber's ceo is reportedly considering traveling to london to meet transport regulators, after sadiq khan welcomed the apology for mistakes the company has made in an open letter they said uber must change. uber's 40,000 driver also continue to operate until the appeals process is exhausted which could take months.

the move could deliver a boost to other ride share apps lyft has met repeatedly with officials in a sign it's prep e preparing to expand in london. adam posen spoke to cnbc earlier about the regulatory obstacles uber is facing >> uber is facing this throughout the world when i'm in london, i drive black cabs, whatever they are facing this issue around the world which is how much are they undercutting the entrench monopoly by saying we're bether faster, they have to navigate that. >> willem marx has more on this story. i guess uber is going in the right direction. they're quite apologetic p it. may about it >> two years ago when the mayor of new york, bill deblasio tried

to stop uber frin new york, the went on full attack, after millions of dollars was spent by the pr and legal team, new york caved. sadiq khan, the london transport regulator, he has said after the xhen comments by khosrowshahi, he said we are willing to meet with this guy over the course of the weekend. clearly the london management team have had a break down in relations, otherwise they this would not happen he is trying to make things right. but this is a chance for companies like lyft. they've been talking to lont i, toronto, london is by far the largest european operational

center i think a million rides a week in london. 3.5 million passengers use the service. if lyft was to come in here, in the u.s. they went from 16% to 25% of market share, that's threat >> essentially someone will come in and fill the gap. if uber loses the license, i assume we'll see that after the appeal process is done with. londoners will not stop using ridesharing. the gig economy will continue. the sharing economy will continue to prosper, no? >> what's interesting is that late last year uber lost a tribunal ruling saying that their workers are employed by the company, not self employed it's tomorrow that the appeal hearing starts, that ruling from uber that tribunal decision last year led to a number of cases from other companies like city sprint, a lot of gig economy firms, really questioning the business model with employees bringing suits against the company.

whether that business model will sustain for uber itself or other competitors seems incontrovertible >> thank you very much for that. hurricane maria caused up to $85 billion in insured losses, according to after the modeling firm air worldwide insurers are down over the board. hanover re down 1.3% they came out with a profit warning. munich re off by a little less than 1%. maria has been the worst hurricane to hit puerto rico in over 70 years causing extensive damage to property and infrastructure lester holt has the latest on the rescue operations. this small piece of america almost a thousand miles from the u.s. mainland has never felt more remote, but it is not forgotten. with the sun barely up, this corner of the savannah international airport in georgia was alive with the sounds of

vital provisions being loaded aboard national guard transports a hub of an aerial lifeline providing humanitarian aid that takes on added meaning for these crews. >> we spend most of the time trying to do this overseas, over in a war zone. to be able to do it back home and help out our fellow american citizens here after some of these hurricanes, it's pretty rewarding. >> reporter: for this crew of this puerto rico national guard c-130, their mission this weekend was personal >> it's been a sacrifice not to be with my family, but mission comes first. so we are ready to just go back, see our families, then head back to the states or whatever to get the supplies. >> reporter: you can see the ramp is lined with planes from national guard units across the country, kentucky and texas and missouri this c-130 belongs to the rhode island national guard. we'll be traveling on this one to san juan after a brief stop in st. croix they're loading water and meals

ready-to-eat once airborne, the urgency of this humanitarian mission is apparent on their faces. what's it like flying into the hurricane zones in terms of what you're seeing out the window when you're descending >> it's a little distracting, to be honest with you i have a lot to do up here in the right seat, but when i see some of the devastation down there on the ground, it's pretty bad. i've never seen anything like it. >> reporter: getting into san juan has not been easy, the airport has been struggling to get up to full operations. >> a lot of the facilities that we use to navigate aren't up it's kinds of like the wild west a little bit but we're trained to do it, and we do it pretty well, i think. >> reporter: finally on the ground you don't have to go far from the airport to appreciate just how great the need is that was lester holt reporting from puerto rico. a quick update on the l'oreal stake that has been r rumored, nesnestle's saying our

approach to l'oreal is not changing once again, this approach is not changing nestle shares now accelerating a bit. up by 0.6% still coming up, arrests on capitol hill as the latest attempts to repeal obamacare are effectively dead in the water.

let's talk u.s. politics, trey gowdy has asked the white house to explain the use of personal e-mail accounts by senior white house officials this follows revolutions that jared kushner and other trump officials used such accounts for

government business. kind of rings a bell the latest attempts to repeal obamacare is effectively dead after susan collins said she will vote no two other republicans announced their opposition meaning the bill will not have the votes to pass police arrested over 180 protesters who packed the senate halls to express their support for keeping obamacare in force casey hunt has more. >> reporter: after an emotional day of protests and dozens of arrests, the last-ditch republican effort to repeal obamacare apparently dead tonight with senator susan collins of maine announcing she's a no after the nonpartisan congressional budget office said late tonight that millions more would lose coverage. this bill will have a substantially negative impact on the number of people covered by insurance, collins wrote in a lengthy statement. with only 52 republicans in the senate and rand paul and john mccain also voting no, there's no path forward. earlier today the bill's

co-author -- >> somebody better come up with a way to get medicaid in a sustainable fashion or else it's going to break the bank. >> reporter: the bill's only hearing held today was delayed by protesters who showed up before dawn. >> we left our hotel at 4:30 in the morning. >> reporter: screaming at its co-author lindsey graham >> shame, shame, shame >> reporter: once inside, yelling. capitol police dragging protesters in wheelchairs from the room the hearing delayed. >> if you want a hearing, you better shut up. >> reporter: graham waiting to testify, and the bill's other author dr. bill cassidy. the public spectacle playing out across capitol hill. the cbo estimated that millions of people with expensive pre-existing conditions would not have comprehensive coverage under the plan but that it's hard to know the exact number because it could vary widely by state. that's what worries shaelynn who drove from pennsylvania with her sister brittany who has cerebral palsy. >> she was born with this disability she is what's considered a pre-existing condition unfortunately for her, her services would get cut tremendously.

>> reporter: after a few minutes inside shaelynn was dragged out and arrested a few hours later the gop effort had failed again >> tensions between the u.s. and north korea are at a new level as the country's foreign minister said president trump's haven't comments amount to a declaration of war threatening to shoot down american aircraft outside north korean airspace. the white house called the claim of a war declaration absurd. >> reporter: on the same day north korea said the u.s. has declared war, it released a computer simulation showing how it would destroy american aircraft and set a carrier ablaze it's propaganda but experts say there is now a real risk of an exchange of fire with nuclear-armed north korea or worse. the growing concern comes after president trump stepped up his personal insults against kim jong-un labeling him little

rocket man and tweeting, he won't be around much longer. beyond rhetoric, the u.s. this weekend flew two advanced bombers near north korea's border north korea's foreign minister replied today. "since the united states declared war on our country," he said, "we will have the right to make countermeasures including shooting down u.s. bombers even outside north korean air space." >> we've not declared war on north korea, and frankly, the suggestion of that is absurd. >> reporter: former nato supreme allied commander admiral james stavridis, an nbc news contributor, says this may go beyond the war of words. >> i would say the chances of an exchange of ordnance are now approaching 50/50. >> reporter: he says north korea could fire at an american jet or ship the u.s. could fire back >> we are at such a high level of potential escalation to full-blown war because of the relative inexperience of the leader in pyongyang and the

leader in washington >> reporter: the spokesman for the united nations today seemed to agree >> fiery talk can lead to fatal misunderstandings. >> reporter: concern president trump and kim jong-un's game of brinkmanship could become a conflict the big worry among experts is that there is some exchange of fire perhaps fueled by the rhetoric and that it snowballs the national security adviser, h.r. mcmaster, said the u.s. doesn't want war but can't discount the possibility richard engel, nbc news, london. as a result of the war of words, we've seen flow into the safe haven currencies like the yen, the swiss, and gold not doing too badly. let's get back to corporate news this is very important throughout the next 24 hours cnbc sources say supervisory board also gaths will gather tol about a potential deal between siemens and alstom siemens is likely to pursue a

rail merge wr with alstom inste of canada's bombardier alstom shares off slightly movement comes as major rail groups in europe look to consolidate in the face of a global expansion drive by china's crrc. gr befobefore we wrap up th here's a look at u.s. futures. it's been a couple of down days. the dow fell for the third straight day yesterday that follows an impressive nine-day winning streak over the last two weeks the dow this morning, though, seen up by roughly 26 points the s&p 500 is seen off by just a smidge the nasdaq rebounding from the weakness yesterday, seen up by 7 or 8 points. the nasdaq hitting the worst point since september 5th. apple this is one of the main

culprits, closing close to correction territory, as there is plenty of concern about demand for the latest iphone 8 this is putting pressure on some of the tech stocks on this side of the atlantic, but also in the u.s. and in asia as well so this is also reverberating across in europe want to show you what the european markets are up to the tech sector is a key underperformer the xetra dax is up by 0.1%. the ftse 100 off by 0.2% the cac 40 is also doing better than just an hour ago. by in large we did see the tech weakness but also the latest concerns about north korea were putting a bit of a dampener on the european trade this morning. now we've improved just a tad. quick look at the fx markets i mentioned it before. tiny bit of flight to safety when it comes to the yen the yen is up just ever so slightly against the u.s. dollar changing hands at 111.71 the euro/dollar still feeling

the hit from the very unfortunate german election outcome for the cdu party with the rise of the afd party, putting in a lot of doubts about the future trajectory of policy, specifically coalition building will be really tough one around the jamaica coalition and euro/dollar off by 0.3%. close to the 1.18 level. that's it for today's show i'm carolin roth "worldwide exchange" is up next.

good morning today's market test. investors await comments from janet yellen >> lethal blow the gop's last ditch plan to replace obamacare may have collapsed. and an avoidable hack? new details reveal the mistake that may have exposed the s.e.c. to a security breach it's tuesday, september 26, 2017 "worldwide exchange" begins right now. ♪ good morning warm welcome to "worldwide exchange" on cnbc. i'm wilfre