welcome to "street signs." i'm willem marks saudi arabia's oil minister prepares to strike $3 billion worth of deals in russia >> this partnership between russia and saudi arabia has meant cooperation of unprecedented coalition of 24 countries. it has breathed back life into

opec the catalonian deadlock intensifies as the region's government moves to declare independence on monday i investors take a dim view of osram sending shares lower, as siemens sells its remaining stake at a discount of 1.2 billion euros. rex tillerson said he never considered resigning, but he does not as an nbc report that he called president trump a moron. good morning let's look at the european markets this morning looking at stocks across the continent. slightly more red on the board there than green the stoxx 600 down 0.15% right now. looking across europe, the

specific bourses, we'll look at the ftse 100 first, up almost 0.25%. dax down 0.10% the cac flat the ftse mib down 0.5% looking at specific sectors across europe, utilities looking positive as are autos. telecoms are up a third of percent. food and beverages up almost a third of a percent real estate companies are down half of a percent. now the big story, saudi arabia's king salman arrived in moscow for talks with vladimir putin. both countries are expected to sign joint investment deals worth $3 billion the trip marks the first time a saudi monarch has visited russia the oil minister of saudi arabia told geoff cutmore on a opinional that the recent relationship between russia and the kingdom was crucial when it came to influences production

levels >> this partnership between russia and saudi arabia has c catalized cooperation of an unprecedented coalition of 24 countries. it has breathed back life into opec, which found itself unable to single handedly swing production as supply was per social securi persistently high in 2014 with inventories slowly rising ahead of demand. the saudi minister went on to add he's not getting carried away by the havenrecent uptick n global oil prices. we are not getting complacent or celebrating soon, until we get the balances to where they belong and ensure we have

adequate supply, adequate capacity, and we keep our eyes on the road, as we bring the global energy markets in balance to continue to do our job in the global economy, our job will not be done. what do you see as the main driver force o what do you see as the main driver force o for oil demand? >> the global demand is in line with the global growth outlook as things pick up in the global economy, there's a healthy growth for oil going with that simultaneously you're seeing there's been increasing efficiency in the way fuel is being used and also a shift away from fuel consumption towards things like electric vehicles. all of those in the long-term do

not bode well for the long-term oil outlook. then you have the continued efforts on the opec side to cut production and there may be a chance that russia would consider cutting production for six months at the next opec talk all of these are driver's that continue to weigh on oil over the near-term. bottom line is we've been hovering around $50 for a while now. >> interesting that the irony in developing countries we've seen an uptick in demand, mostly because people are using cheap gasoline and petrol to use cars if that creeps up, we'll see that demand fall back. >> absolutely. i think that's what it boils down to. the driver and the user consumption is going to be a big area of focus for the oil demand in the future. >> certainly a big area of focus for many traders across the world. trump's nominee for the fed's board of governors has

cleared a hurdle randall qualls is expected to be confirmed as vice chair. this as the debate over who will be the next fed chair rages on i'm happy to say we're joined by greg peters from prudential fixed income talking about fed, u.s. treasuries what do you see as the main element of fed policy over the next few months. >> uncertainly is the main element. adding to it is this guessing game of who is going to be the next fed chair so i just think for all the focus that bond investors have on where the dot plot sits, what the future policy looks like, the truth is we don't know who is exactly going to be conducting that policy it's not just about the fed chair. there's also five to six other open seats so we don't know what the construct of the fed is going to look like.

>> fut what abowhat about the fp president trump talking about 6% even his advisers are saying that's optimistic. is that something people will be watching >> 6% is not achievable, but the interplay of some of the policies that are being put forth, namely tax policy, and what that means for the fed is critically important the market is trying to ascertain, you know, how is that going to be. kevin war, someone believed to be in favor of less regulation, other types of trump policy initiatives what does that mean for fed policy >> coming back to fed policy, if you look at what is priced in. i think the market is set on a december hike, a december hike priced in. only one price hike for the calendar year 2018

why do you think it's so low >> i think there's skepticism around inflation let's not forget about inflation. inflation and growth moving up in a meaningful way. the concern market players have is the more the fed moves, the more likely the chance to slow growth and dampen inflation. so the capacity for the fed and other central banks really to normalize or tighten, whatever you want to call it, is constrained by the lack of growth and the lack of inflation. >> on the other side you have a fed reducing its balance sheets. so the fed reduction from 4.5 trillion to $3 trillion will push term premium higher on u.s. yields i was at a symposium yesterday that was the general view, do you not agree with that? >> no. the truth is we don't know we

never embarked on this anti-qe path before. we're not sure how the markets will handle the balance sheet reduction. if you're slowing down the economy, right, by doing this, hiking rates, then all else being equal that serves to push yields lower, not higher that's really what we're trying to figure out ultimately president trump talking about his tax reform plans, notably the white house has been quiet on where that money will come from to pay for these changes. is that something that you're concerned about? >> from a market standpoint you have to be focused on it it really matters a lot. it matters a lot around certain segments within the marketplace. but the truth is there's lack of details around it. to your point, i'm not sure how it's all going to get paid for so thinking about bond yields, moving this back to bond yields,

what i worry about is you have the reduction of the fed balance sheet coupled with a ballooning of the deficitto pay for this think the ballooning of the deficit matters more so i'm worried about that piece of it. >> i was in barcelona earlier this week. we've seen the ibex pick back up today. looking at debt in spain, both corporate and sovereign, do you see that dramatically increasing that spread? >> it's moved a lot already. i think we're getting used to operating in this globally political uncertain environment. spain is at the current epicenter of that. as soon as we moved past spain, we'll move on to italy it is just continuous. >> do you have a view of where periphery yields go from here? >> i think it comes down to the ecb. the ecb minutes are critical there's a spanish auction today.

i think investors are not as worried about the auction because of the ecb we need a better read on the ecb. it's hard to get negative. we see value in the periphery because of the ecb still there there's been some adjustments made >> i want to come back across to this side of the channel the bank of england is calling for a transitional brexit deal to be secured by christmas speaking at a banquet, they said the banks would need to press ahead with contingency plans if an agreement was not in place by the end of 2017. prime minister theresa may delivered a speech in manchester she wrapped up the conservative party conference her keynote kicked off with may apologizing for the election performance and highlighting her

performance, then a prankster interrupted the speech, and may enjoyed several coughing feets while stage letters behind her began falling off. >> sounds as if my voice is not on track but with government, businesses, and the public sector working together we have bounced back. we've created record numbers of jobs while our opponents flirt with a foreign policy of neutrality and prepare for a run on the ground some people say we've spent too much time talking about jeremy corbin's past. in all its diversity, compassion and strength that was shared around the globe

>> you couldn't make it out with that "f" falling off the sign behind her what is your take from that? frnlg>> i don't envy her positi all. despite the political rumblings going on in the background, they feel intent going for that november hike what what is your take? >> i think november is baked in. even with the softer data that's come out, they're focusing on the service sector, which has been stronger. but i think the broader theme here is difficulty that the bank of england will have going forward as the brexit talks just continue to wage on without real movement this investment is going to continue to plummet. i think we're at the early stages of the impacts that we're seeing around the uncertainty of brexit >> you think it's like a one and done scenario? they do this one, then stop?

>> i think we have to wait and see. i'm surprised given the data that the percent probability is so high for a near-term hike >> at the same time inflation is also very high in the uk as well that's been impacting guilds what's your view on uk government yield here's? >> so the inflation data was driven more by what's been happening with the currency, which is not really kind of as good and services for people domestically but on the yield side, i think i see curbs steepening out in the back end of the gilt market and yields there being stable to slightly higher. >> one other thing i want to talk about is carney's role. he got some criticism at this conference, i believe it was last week or earlier this week celebrating the 20th ann visivey

for being politically involved is that a fair assessment? >> so many people were surprised it wasn't longer than 20 years of independence. that's really at the center of the political debate globally, as there's questions around what central banks are doing independent to what the government is trying to achieve. with quantitative easing being such a large part of their mandate now, or seemingly their mandate, i think those political pressures are part of treasury or attached to the government more directly, we'll start to be higher >> do you think carney stepped out of his bounds more than other governors? >> no. i think he's very much, as with yellen and draghi. i would say less out of bounds than those two >> we'll leave it there.

thank you very much to greg peters from prudential fixed income now, osram shares, they're dipping after siemens sold its remaining 17% stake for 1.2 billion euros. the move ends the german engineering firm's ties to the lighting company it listed way back in 2013 siemens said net proceeds from the sale will be used for general corporate purposes coming up on the show, we could be facing negotiates between catalonia and madrid will that end the referendum crisis we discuss that after this break. ah, dinner.

throughout history, the one meal when we come together, break bread, share our day and connect as a family. [ bloop, clicking ] and connect, as a family. just, uh one second voice guy. [ bloop ] huh? hey? i paused it. bam, family time. so how is everyone?

find your awesome with xfinity xfi and change the way you wifi. signs. the catalan government will hold a special meeting of parliament on monday to discuss the outcome of the disputed referendum from last sunday. the move paves the wayt for catalonia to declare independence from spain. the catalonian president, carles puigdemont said he was open to dialogue over the next potential steps.

>> translator: my government will not alter its commitment to peace and calmness, at the same time we'll be firm to do the things we need to do due to this i will say again, this moment calls for mediation. we received various offers in the last hours, we will receive more all know i'm ready to start a mediation process. i will repeat as many times as necessary, peace, dialogue, agreement is part of the political culture of our people. >> in response the spanish government said it would only enter discussions with the catalan leader if he agreed to comply with national laws. in terms of the market impact, some of the selling pressure seems to be abating with the ibex opening in positive territory. a lot to talk about. >> i wanted to start out by asking you, there was an announcement or a pending announcement for them to declare independence on monday

what's the latest on that? >> they're giving themselves room for maneuver. we heard from certain lawmakers that they are going to make this declaration. we'll have the meeting of the parliament in catalonia on monday that may lead to a declaration many analysts saying what puigdemont is trying to do is essentially maintain pressure on madrid but also give them wiggle room the minute that declaration is made, it's hard to put the genie back in the bottle by holding it over the heads of madrid as a threat, that will allow them more leverage ultimately one of the things that's interesting to bear in mind is that the law passed by the catalan assembly early on september 7th about this particular referendum was one that said within 48 hours of the final vote being presented to the catalan parliament, a declaration had to be made if the vote had gone in favor of referendum all indications are that 90% of

voters said they are in favor of independence there's questions about turnout. but the catalans are delaying that final vote tally as a form of maintaining leverage. once that tally is delivered and those numbers are announced, in theory they have just 48 hours to make that declaration of independence if they are shown weak by not making it, that will lose them leverage maybe they want to sit down with ma r mariano rajoy's government >> since this has come out, he has not offered much to the media. >> he is a man widely considered a political survivor he made his name in many ways by pushing against catalan autonomy in 2006, there was a greater deal about spain's fiscal independence in 2010 that was struck down his political party was the main driver of getting that pact cut

down so he's a man that really can't afford in terms of his own political party and allies to step back from the confrontation. we heard from his allies in golf front this coalition, that he can't tep back he can't do anything other than suspend the autonomy of catalonia is he getting hawkish advice from people within his own party, which makes mediation that much harder he has been provided political cover by king felipe saying what they did in catalonia was illegal, disloyal, strong words used from a king whose ancestors ultimately conquered catalonia all movement towards mediation struggling as a consequence. there's a lot going over there i'm heading back to barcelona tonight. we'll see what happens over the course of the weekend. both sides hoping to avoid violence it could be argued that's what triggered this set

of veept events both sides seemingly not wanting dialogue we heard repeatedly from carles puigdemont that he's not talked directly with mariano rajoy. a lot of people in the middle, whether it's the european union or others are opening the two sides will get together. >> any other questions hit me >> i want to see what the best case scenario is at this point what's the potential outcome >> since 2012. catalans sought direct talks with madrid on this subject. they have not been given that opportunity. repeatedly they've been rebuffed they say that's why when the separatist coalition came to bear, that's why they had that vote it's interesting to see essentially they decidednow that they're will going back and back and push back against madrid on having these talks the best case scenario is that

dialogue continues everyone agrees with that the idea of the declaration of independence is complicated. the idea of spain canceling autonomy is difficult. >> markets are still down a bit, but no sign of panic >> no the same with sovereign debt and also the same when it comes to ratings for spain not a massive turn downturn yet. in the u.s., president trump visited patients, doctors and first responders affected by the deadly las vegas shooting earlier this week. investigators have released a fresh timeline of events in the shooting the more detailed timeline shows how quickly police responded to the incident but authorities are still searching for motives behind the shooter we are bringing you live pictures from russia energy week as well where geoff cutmore is moderating a panel let's take a listen. >> while i have you here, it would be good to try to get to some of the facts.

>> well, what i can tell you, of course, because it's an ipo, and because there are restrictions, legal restrictions about discussing specifics of what might be an offer, really restrict me from telling you everything i wish i could tell you. i am the proud product of saudi aramco i'm the second generation product of that company. my father served 47 years, and i served close to 35 years before i moved on to the government it's a great company that everybody knows about. the scale and capabilities of saudi aramco are second to none. the government is proud of what the company achieved, not only with the resources and production that it has, and the

government wants the rest of the world to enjoy the products of saud saudi aramco that have kept the world well fueled, and it will be used as a catalyst to signify an opening up like no other of the kingdom of saudi arabia. moving on and building on the solid foundation that oil and energy has provided our economy to the next economy. so as we come -- so we will -- the government is moving right ahead. as the chairman of saudi aramco, i can tell you the board remains focused on reviewing preparations by a very dedicated team within the company that

prepares for that event that will take place in 2018, that's the schedule there's nothing to indicate that schedule is slipping in any way. >> that's a fourth quarter schedule, is it? >> that's the second half of 2018 but details will be announced in due course but the intent is indeed not weakened in any way to provide with that offering the details will be made in due course >> when do you think the details will be made >> in due course >> minister novak, at the moment smart money suggests that the listing will go to new york and maybe london how keen are you to encourage our friends from saudi arabia to

list a little bit here in moscow would you fancy a bit of side action on the saudi aramco deal? [ speaking foreign language ]. >> i'd love to hear about that if it's going to shed light on what might happen with the ipo [ speaking foreign language ]. >> translator: i visited saudi aramco office, i was invited by mr. minister last year, so whatever was just stated with respect to the company and its significance for the global

energy, i can only confirm that. we do have different conditions for production in russia and in saudi arabia i was impressed by the production in the desert we visited one of the state of the art operations in terms of technology and equipment being employed there so we can certainly say that we are welcoming the fact that such a company, saudi aramco, is coming out into the market i don't know whether the russian private investors might participate in the book. you will have to ask them. it all depends on the availability of resources and the future of the company. i'm sure this company does have a future in a similar token, i can say a few words about the russian companies, because we're also proud of our companies and do believe that they have a very bright future because despite more complicated conditions within which they have to operate in siberia, the arctic,

off shore, we nevertheless do have our own advantages in terms of the low cost of recovery and the taxation system that we currently have, and the new one we are working on which will be introduc introduced - >> that was alexander novak talking to geoff cutmore we will give you some headlines. saudi arabia's oil minister says there is no room for complacency in the oil markets >> this partnership between russia and saudi arabia has catalized the cooperation of an unprecedented coalition of 24 countries. it has breathed back life into opec. the catalonia deadlock intensifies as the region's government moves to declare

independence as soon as monday the ibex breaks its losing streak investors take a dim view of osram, as siemens sells its remaining stake for a discount and u.s. secretary of state rex tillerson said he never considered resigning, but he doesn't as an nbc report saying he called president trump a moron. let's look at the ftse 100 up 0.15% the dax down 0.13% the cac up 0.5% and the minute up slightly 0.1%.

the aussie dollar is weaker against the u.s. dollar along with the pound other things to look at, u.s. futures. if we look at the s&p 500, the implied open is up 1.31. the dow jones up 1336. and the nasdaq up 5.4. sticking with the u.s., rex tillerson says he remains committed to president trump's agenda nbc news earlier reported that tillerson contemplated leaving his role earlier in the summer and that he referred to the president as a moron andrea mitchell has the latest on this story. >> reporter: tonight, secretary of state rex tillerson coming out to respond to an nbc news report about friction with the president and that he was on the verge of resigning this summer >> good morning. there were some news reports this morning that i want to address.

>> reporter: but stopping short of a full denial >> there's never been a consideration in my mind to leave. >> reporter: but senior administration officials confirm to nbc news tillerson threatened to resign in july. the boiling point, the president's highly political speech to the boy scouts, a group tillerson once led >> we won florida, we won south carolina, we won north carolina, we won pennsylvania. >> reporter: just days earlier tillerson even called the president a moron after a pentagon meeting, according to three senior officials tillerson today not denying that >> i'm not going to deal with petty stuff like that. >> reporter: the president in las vegas today labeling the nbc report fake news >> it was a totally phony story. thank you very much. it was made up it was made up by nbc. total confidence in rex. i have total confidence. >> reporter: but multiple sources tell nbc tillerson did disparage the president and also talked about quitting reports nbc's carol lee. >> kelly and mattis moved in to try to convince him to stick around and then vice president pence followed up with what one source described to us as a pep talk.

>> reporter: in fact, tillerson and the president have clashed for months over iran, over a dispute between u.s. allies in the persian gulf and north korea. coming to a head this weekend when the president attacked tillerson's outreach to north korea tweeting sunday, save your energy, rex, we'll do what has to be done the president's diplomatic bombshell coming just hours after tillerson returned from china where he told reporters the u.s. has a backchannel to talk with north korea. leading to a chorus of headlines that tillerson should quit >> i think secretary tillerson does really have to ask himself the question whether he should be staying in this position. >> we heard "washington post" columnists referring to him as a loyal dog. it can't be an easy time for rex tillerson, especially after years as a ceo >> no, and there are these reports from nbc that he threat threatened to resign back in july due to pressure there's been discussion over the last two months about whether there's a growing divide between the state department and the white house.

this is not the first time that donald trump yun cundercuts som his efforts. >> in qatar he came out and said one thing, had close relations with people in qatar, then trump said we don't like qatar >> i was having a chat with kurt volcker, the u.s. representative to ukraine and works for the state department, and i wanted to address these things with him head on. here's what he to say. >> i don't think there'ses did grimt betwe there's disagreement the trump administration extended sanctions on russia because of its involvement in ukraine. president trump when he met with president putin in hamburg told him that u.s./russia relations will not be able to improve as long as the crisis in ukraine is not resolved

the congress passed legislation to put in place more sanctions and retain some authority over them president trump signed that legislation. what i think all of this should convey to russia, there's a depth and breadth of concern about what they're doing in ukraine and they need to resolve that in order to see sanctions lifted n order to establish the basis of a u.s. better russia relationship >> this is not first time that president trump contradicts rex tillerson. we saw a similar situation in north korea eventually when he referred to -- when he was talking about the north korea situation, president trump said he is wasting his time trying to have a dialogue with kim jong-un. there are also reports from nbc earlier today that rex tillerson tried to resign in july and referred to president trump as a moron. do you think there's a possibility we may see a vacancy in the secretary of state

position >> this is the first i'm hearing half of what you're asking about, and i don't believe it secondly, when you talk about the tweets on north korea, i took that to mean that the president was not commenting about rex tillerson being dissatisfied with him at all he was commenting about kim jong-un, that kim jong-un is determined to develop a nuclear weapon and threaten others with it i think it's constructive for the president to convey toughness while we go on the process of negotiating and trying to work with china and others to get kim jong-un to stand down to your final question, i have no reason to think there's a change coming in the u.s. administration >> so there's no reason to believe the state department and the white house are not working together >> just the opposite i only have a small wind deon this through some of the work i've done, i've seen the white house and the state department working very closely together. >> on subject of north korea what do you think the best case scenario is? kim jong-un doesn't seem to be

too phased by rhetoric coming out of trump and via social media on tweets, or even out of the administration itself. what do you think the likely solution is going to be? >> i think somehow we have to find a way for kim jong-un to stand down he's testing missiles at a very rapid rate, they're provocative tests, flying over japan anything can go wrong there. the u.s. is responding to this with a show of military capacity to try to convince kim jong-un that we are serious about our own security, serious about the security of our allies in the region, also serious about trying to work with china and others in the region if through that combined military presence and pressure and diplomatic efforts question get him to stand down from the very reckless course he's on with his nuclear tests, that's the best outcome >> that was kurt volker refuting

claims that there was afrifrictn between the white house and the state department he says he doesn't think those reports are true and the two are working very much together and court na coordinated. >> we heard in that sound bite that the president believes that the nbc reports are false. clearly people within the administration talking to the media, trying to get an agenda out, then having that information publicized by the media in the u.s. and pushed back by the administration again and again. we hear the idea that the secretary of state might be think being resigning back in the summer this came around the time when he was involved in the mediation with qatar he spent a lot of time down in texas where he has family. he took some days off it was also the time when we saw a huge amount of change in personnel in

the white house it would have been all pieced with that negativity amongst the administration interesting buzzfeed had a story out yesterday about a so-called suicide pact involving rex tillerson, steve mnuchin and jim mattis they all apparently, according to this reporting, agreed that if one was told to go, the others would tell president trump they would also, and that would strengthen their hand and keep them in the game. it's an interesting situation from the outside looking in. >> doesn't it serve as a distraction from the bigger issues going on in the u.s.? we want to hear more about u.s. tax reform they attempted to revamp u.s. healthcare, that didn't go anywhere we have people resigning, change of personnel, pu tbut the focus should be on what are their plans from a fiscal perspective what are struinfrastructure pla and who is trump thinking about

as a replacement for janet yellen when her term is up all of these issues serve to distract people from some of the more pressing things for the u.s. economy >> i think the tax reform is interesting. behind the scenes you had the white house and gop, people from both the house and senate having secret discussions about where they were able to find common ground, president trump has come out and given broad brush strokes about this tax reform. we haven't heard the details on how it's going to be paid for. he wants to pass that on to congress so they can come up with ideas on how they'll find 1.5 trillion that would in theory protect his administration from the criticism would get there. let's look at what's coming up on the show after the break the european competition regulators latest moves against apple have been described as regrettable. we'll find out why after the break.

welcome back to "street signs. looking at the latest headlines out of the russian-focused energy meeting with the saudi oil minister, focusing on aramco

the ceo of aramco says the company will be evaluating investors as they continue to make progress. alexander novak saying he doesn't know if the russians will buy into the saudi arabian ipo. also saying they will investigate how they can make progress al falih said the announcement would be made. he spoke earlier to geoff cutmore. >> the scale and capabilities of saudi aramco are second to none. the government is proud of the production it has achieved, and wants the rest of the world to not only enjoy the products of saudi aramco which has kept the

country well fueled and taken part in profitability and it will be used as a catalyst to signi signify an opening up like no other of the kingdom of saudi arabia. vladimir putin says the production deal between opec and non-opec members could be extended until the end of next year speaking at the energy forum in moscow, putin said a stable oil market is beneficial for the global economy he said the time frame is longer than that suggested by saudi arabia's oil minister. they say cuts should be extended for a few months geoff cutmore spoke to alexander novak and asked him if the oil markets were close to rebalancing. >> translator: as far as the figures are concerned, at the beginning of the deal we had surpluses of approximately 340 million barrels. in comparison with the five-year average. now, according to the figures

after eight months, this surplus has been reduced by half to around 170 million barrels of course the situation is more healthy than at the end of last year moving forward, we will be looking at the dynamics for reducing this surplus. >> if you feel there's been a structural shift, can the headline wti and brent prices trade in a much higher band, have they found a new permanent higher range >> i don't want to make guesses or talk about prices because prices are not only affected by supply and demand, though that is an important constituent factor but prices are influenced by the market speculative factors and the relation of the dollar to other currencies which we can't influence in terms of production therefore i think the forecast i

made of a price of between 50 and $60 will be an optimum one that the price will be in this range, we believe that will be a good thing from oil to tech the european union ordered amazon to pay 250 billion euros in back taxes to luxeluxembourg. they say the retailer had been given an unfair tax break since 2003 the eu commissioner said the vast majority of amazon's european profits remain undoxed. >> the tax ruling endorsed an s unjustified method to calculate tax for amazon in luxal bourg.

luxembourg. as a result, three quarters of amazon's profit profrom afrom as sales in europe remain untaxed >> she also referred ireland to the european courts of justice she said the irish government failed to recover 13 billion euros in taxes which they say apple owed to ireland. dublin disagreed with the ruling and so far has not sought a fraction of that 13 billion total. the finance minister said the eu move was regrettable. google launched a new phone in a bid to rival apple and samsung. we're joined by our smartphone expert arjun who has all the details. >> the smartphone wars are on. i want to start with google's

direct competitor to the iphone 10 this is the google pixel 2xl this is a top of the line phone from google. a top of the line processor made by qualcomm, and an oled display. it's all about sharper colors, brighter screen contrasts for doing more things like watching videos there's no head phone jack which was controversial when apple made the move. it's something google has done to support its wireless headphones, the google pixel buds he has augmented reality capabilities google showed off a lot of their augmented reality capabilities of the phone, a direct challenge to apple it has the ai assistant, the google assistant built in it retails at $49. moving on to the samsung galaxy s8 plus this is the flagship mart pho

mart smartphone. it has a large display and then the iphone x, it runs android like google. and the camera is extremely similar. it retails at the exact same price of $850 as the google 2 xl as well. now, the final phone in the comparison is the iphone x this is apple's highest offering, the $999 phone, it makes the most expensive out of the three. it is apple's first phone with an oled screen and it does run different to the other phones t runs apple's own operating system, ios. it has no head phone jack and apple's own artificial chip called the bionic a11, their own attempt at making chips helping it control more of its hardware. it is the most expensive phone

google is the underdog in this apple and samsung are the two largest smartphonemak makers ine world. >> i love your enthusiasm on the subject. if you want to take a deeper dive into the products, you can do so on cnbc.com now where arjun has a lot of stories out on a regular basis he joined us around the desk >> i'm loyal to my iphone, but i feel like the costs of these phones are getting more and more expensive. $1,000 plus. are people willing to pay that if you look at the smartphone market as a whole, you have seen a slow growth rate but the one segment growing rapidly is the premium segment people are willing to fork out loads of money for a new phone that has all the features. we're not seeing a lot of innovation on the design front,

we're seeing the larger screens, but it's the under the hood stuff that people are willing to pay for. we've seen that with apple, google and samsung focusing on that. >> we've seen google owned a large portion of the advertising space, now trying to get into smartphones. how do you rate their chances? >> i think they're unlikely to turn the heads of apple users. iphone users are strongly linked to apple they are hard to turn. the difficulty for google, it is an underdog. you're looking at the marketing might of samsung they're the largest smartphonemaker in the world apple has its users in the ecosystem. google will have a tough job showing they're a competent hardware player. the phone looks great, but it will have to convince users from massive marketing to turn away from apple and samsung >> i know you were slightly confused when google made that

acquisition of htc how did that work out for them >> they bought motorola a few years ago that was a terrible decision now buying parts of htc. google has not been a hardware maker, more on the software side, i think they need to up their game in that area, that's why they made the purchase >> i don't know if you have used alexa yet. >> i used my google assistant in the car the other day. a lot of potential amazon seems to have the lead in that space, but getting very aggressive between sisiri, alal. >> and you think smart speakers is the next battle >> the battle for the home is next, and the battle for the car as well. you can now unlock your car also

with alexa that's the big battleground next >> that's it for us. let's take a quick look at the u.s. futures before we go to the u.s. it looks like the open for s&p is up by 2.11. up also for the dow and nasdaq let's look at the heat map there. a little bit more red on the board than green not a great deal coming up next, our colleagues in the u.s. will be sprenti be "worldwide exchange. thanks for watching. my name is jeff sheldon,

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the s&p 500 on its longest winning streak sits mance may. are there threats on the horizon? >> police releasing new details on the las vegas massacre. and a bitter proxy fight between bill ackman and adp. we'll find out more just ahead good morning a warm welcome to "worldwide exchange." i'm wilfred frost. >> i'mrt