hello. welcome to "street signs." i'm carolin roth these are your headlines separatism suspended spanish stocks rally after catalonia's president stops short of declaring independence, boosting the ibex which is led higher by the banks. but carles puigdemont still signs an independence document as he hopes to open talks with the spanish government rise of the machines japanese equities jump to a 21-year peak on stronger than

expected machinery data as the nikkei hits the highest level since december 1996. and at least 17 people are dead and thousands of buildings are destroyed as a series of wildfires rage across northern california good morning glad you're with us on this wednesday. it's the morning after we heard that speech from mr. puigdemont in the catalan parliament it was a climb down. yes, he did say the country or the region wants to go for independence, first he wants to go back to madrid and start talks. whether that will materialize is the big question the reaction in the market is mixed. we are not seeing a huge rally on the stoxx 600 yes, we're seeing a rally on the ibex 35, but it's not transpiring into a much bigger risk on rally in the rest of europe we're down when it comes to the

ftse 100 the cac 40 lower to a quarter. once again want to draw your attention to the ibex 35. it's up close to session highs, up by 1.25%. this is after catalonia's leader carles puigdemont stopped short of declaring independence from spain. in a speech to the regional parliament he said he was suspending the results of a referendum to allow time for talks with the spanish government let's have a look at some banking stocks in spain which were heavily beaten down over the past couple of weeks some have bounced back banco sabadell is up 2% this is one of the banks that had said it would relocate headquarters away from catalonia to other regions outside of barcelona some industrials up by 1.3%. in terms of other spanish stocks, this is the picture.

telefonica up 1.4% to 1.9% we have it covered for you from all bases willem is in barcelona and joumanna bercetche is in madrid. when i first saw that announcement or the climb down, i thought that must yield a lot of disappointment from his hard-line supporters what is the reaction from barcelona overnight? >> not just his hard line supporters, his spokesperson said, look, the extremists on both sides will not be happy with this, but the majority will be they see this as a political solution to a political problem. one person said this is very confusing to me, you're talking about accepting a mandate that people like myself don't accept and signing a document afterwards that many of us don't think is real. you're talking then about suspending it. we heard from members of the

party popular, the party of mariano rajoy, their spokesperson said we're not going to accept an independence declaration whether immediate or deferred then we heard comments from the cdp, ten seats in the parliament, crucial for carles puigdemont to maintain majority, their leader said they were disappointed by the decision but they didn't see this as the end of the relationship. they would maintain that support for puigdemont she saw it as a lost opportunity, though. we went out after that speech and spoke to a number of people who had been at a rally near the parliament they said it was disappointing but they understood why he had done it. many said they were proud of puigdemont what happens next, again like 24 hours ago, it's anyone's guess it's down to madrid. what do you think made him rethink his decision to actually

declare independence less yesterday? pressure from the business community? >> three clear reasons why he might not have moved forward with an immediate declaration. one is that over the course of the weekend we saw hundreds of thousands of people in barcelona rallying together, demonstrating in favor of spanish unity. that may have been a number that puigdemont was not expecting to hear from. many of them did not turn out to vote in the referendum the previous weekend he may have acknowledged their voices clearly there was an intervention from political leaders from those in spain and europe we heard from donald tusk a few hours from puigdemont's speech saying please don't make rash decisions. i understand where you're coming from he talked about his own experience someone who felt the force of a police baton, but don't make a

rash decision today. and business is a big part of this of the seven ibex 35 listed businesses with headquarters here, six of them since the referendum have moved out of the region in terms of legal headquarters that cannot be ignored by separatists, talking about the future of catalonia as an independent republic clearly the economy is a big factor >> willem, thank you very muchtt let's get to the other side of it catalan leaders should return to the path of law if they want talks to take place, that's according to the spanish deputy prime minister she said neither mr. puigdemont nor everyone else can claim to impose mediation the spanish government is meeting later today to decide its response joumanna is in madrid. mr. rajoy will have to speak to some parties that support the golf before he makes any move. >> exactly

it's onyog ngoing now. he called a cabinet meeting for this morning he will be addressing the parliament behind me at 4:00 p.m. today the real question is puigdemont put forward an offer to engage in dialogue with the government but will the government accept tile log with them the key point here, this is something that the pp representative and something that willem talked about in catalonia said this is a matter of semantics in the sense that, yes, they fell short of outright declaring a unilateral independence yesterday, but puigdemont also said they now have a mandate to pursue independence, and this is something that the government explicitly said that they don't agree with we heard from the dp prime minister, she said in the first place the holding of the referendum was something that was illegal. and therefore we don't accept the results of this referendum going forward i think it's going to be a fine balance between some of the pressure from the international community now to

mediate and have that dialogue versus the hard line approach that the government has been taking all along one thing i should mention is that rajoy is in a minority government, propped up by other members of the coalition one of them is the leader of the citizens party even though their headquarters has been against this independence and has said in the past that the government should perhaps go down that nuclear option of triggering article 155 if they declare independence they have not declared independence, they have postponed it, but whether or not the government will be willing to engage in dialogue we'll find out later. >> do you think the nuclear option of the central government and madrid invoking article 155 is off the table do you still think that's a remote possibility >> it's impossible to say at this point all we heard from the government is what the deputy prime minister said yesterday there

was no explicit reference to article 155. they've been careful about what they've been saying to the press this morning we can't speculate on what they'll be mentioning in their own cabinet meeting. as i mentioned, i think there needs to be an fwreemtagreementl party members as to what the next steps are the socialist party leader also said he would support rajoy with wl whatever decision they make as long as it is in the frame of the constitution >> thank you very much for that. >> we've seen the ibex 35 rallying north of 1% the euro/dollar, 1.1831. close to session highs the spanish ten-year yields have been dropping by four or five basis points that's the reaction when it comes to different asset classes. let's talk more about the euro side of things with john hardy

how long will this rally last? we still have little visibility over how this conflict will be solved >> i think direction here in both the euro and the dollar is being tripped up by tactical perspective here it's because we have these longer term burning questions that we don't have the answers to yet what are the trump tax reforms who is the next fed chair going to be from february 1st next year on the euro side of thing, we're looking at the german government coalition, the ecb and its schedule for the tapering and unwinding accommodations we could break resistance here, head higher, but i'm not seeing persistent directional moves until we get longer term questions answered >> do you not think that the catalonian crisis has in some way, shape or form hurt this notion of this new-found

stability in the eurozone though >> i think it's a specific situation. there's a bit of an attempt to draw parallels with other regions and other countries that could be looking at declaring autonomy you know, i think it's a bit of a nonstarter it's an interesting thing longer term to look at the odds of a more integrated eu and raising the profile of the eu, the popularity and the electing of eu leaders and demoting governments in favor of more self rule locally. that's a longer term philosophical question i do not see risk of wider contagion. it has been limited contagion even within spanish assets, spreads versus germany in terms of spanish sovereign bonds >> as you say, it's mainly a philosophical question let's get back to the fundamentals for the euro/dollar trade. we're well off the 2 1/2 year highs. currently changing hands at

1.1832 do you think we'll get back to the 1.20 levels or does it depend if tax reform gets good or not >> does depend on those questions who is the fed chair, what are the chances of trump tax reform that's the last hope for the dollar if we're going to see more dollar upside, i don't see it beyond another percent or two. you say we're well off the highs, if you look at the lows below 1.05 since the beginning of the year, consolidation has been shallow yes, maybe more dovish than expected ecb, more positive fundamentals could drive a further correction, but the euro/dollar is higher. >> we will continue to talk about the fed in a bit we'll get a cup of coffee and head for a break john hardy from saxo bank will be with us after this. coming up after the break, find

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dallas fed president robert

kaplan says he believes disagreement at the federal reserve is healthy he was responding to a reporter who asked his opinion of kevin warsh. the fed governor is one of a number of people being considered by president trump as the next chair of the federal reserve. he said he and warsh may disagree on some things but it was a good thing and stated he believed the fed would operate effectively in the future. tomorrow steve liesman will speak to boston fed president eric rosengren you can catch that interview tomorrow from 9:00 p.m. cet. back to our fx discussion with john hardy. before the break you were talking about who will be the next fed chair that will be a huge driver for the u.s. dollar. what's your best bet at this point? we still read articles that janet yellen might stay in her chair. that wouldn't move the dollar too much

>> like everyone else, we've been throwing around ideas on who it might be. to my mind, i don't see how yellen is reappointed. i don't think it sends a strong enough signal about change, especially the weak parting commentary commentary, if it does prove to be commentary, that the models are broken there's warsh, powell or cohn. among those i don't have a favorite i will wait and see. we have built in expectations if we're to believe what has been said about these three candidates on how the market reacts from dollar strength from warsh and the most weak reaction from gary cohn longer term, you think the dollar is set to slide, but there may be buying opportunities on the way down. where, when and why? >> i think -- i think tactically uncertain on the dollar. again, tax reform, if it does prove to be warsh, could get a bump in the dollar's prospects

further down looking at euro/dollar, 1.25, 1.30, it's a question of entry level for euro/dollar. >> we're also showing our viewers what cable is doing. 1.3204 pretty much unchanged on the day. i'm confused now as to what the real driver is one day it's politics one day better than expected data then the other days it's the boe. what do you think it is and where is pound sterling headed >> i think it's all of the above. it's an odd situation where you're driven by sentiment and positioning. we don't know where these brexit talks lead we don't know the future of may's leadership and how wobbly that is and whether somebody replaces her we don't know if the eu will give way and talk trade soon we may get some clearing up

there next week with the eu summit if they decide to move on to talks on trade, i think that's distinctly positive we're still bogged down in this and i think we'll go sideways and iffy back and forth. technically devastated for cable trades who are back below that 1.32 and 1.33 area >> give us your best trade you like the aussie and the yen under some circumstances >> i think the yen is interesting. simply just looking at how extended global complacency is i'm wondering how we extend higher here and global bond yields japanese yen to the upside is a more interesting trade >> currently that pairs at 1 112.25 john hardy, appreciate your time two-thirds of americans or 64% report having an apple product in their household, up

14 points from five years ago. the last time cnbc asked the question steve liesman has the details. >> the cnbc all american survey, 800 americans polled we asked questions about apple and facebook we asked this question five years ago. how many apple products do you have in your household 2012 half of the country reported it. 64% now for some pretty strong growth how about how many product there's are? it's gone from 1.6 on average to 2.6. up a whole apple gadget in the average american household we asked about facebook. some interesting results five years ago, is facebook going to be a fad? 21% then back then right now s it outdated? that's come down those seeing it essential has come up. you can see what groups have made the most gains. 18 to 34, 50 to 64, those with a

high school degree, some college and not those with post-graduate degrees. we asked how do you use your phone? predominantly e-mails, text, phone. social media, surfing the internet and taking pictures all of these ended up under 10% as the primary uses. watching videos, playing games, shopping different results for younger women who are more likely to use some of these other aspects of their smartphones. final question, is it productive or unproductive? 64% say using their smartphones is mostly productive 21% telling the truth saying unproductive 8% saying both back to you guys >> those are interesting findings. a former fortress hedge fund manager says he could see bitcoin heading over $10,000 in 6 to 10 months

speaking to cnbc, he likened the cryptocurrency to digital gold and said he can see the herd coming he is starting a 5$500 million fund to hedge cryptocurrencies facebook has sent its chief operating officer, cheryl sandberg, to washington. the move comes ahead of two congressional hearings in november handberg will b sandberg will be sent there to contain the political fallout. arjun is with us now just over the last one or two days, we found out not just facebook, google, potentially microsoft and twitter was in the fold what is sandberg going to say? i guess now test the waters for the congressional hearing in november >> that's the main focus i guess also to hear whether

anyone is talking about further regulation is there a need for perhaps some new regulation to come in around the internet companies we've seen in the uk just over the last days talking about some regulation around the companies. the spread of misinformation i think that's one of the key issues she will be finding out and if there are the rumblings of that f she could talk people out of it. >> would be devastating, wouldn't it or maybe not s because brands still will want to put their digital ads on facebook and google. will regulation hurt >> it depends on what regulation looks like and what it means for the operation of the companies over in europe, some of the european union issues and that google and they've had to change the way they operate some shopping services. so if there's something that causes material change to the

business, yes. the other side of this whole story is around the ad issue that could be more damaging. if a video plays for a certain number of seconds t counts as an ad even though someone may not have watched it for long this speaks to how advertising is bought, the way it's measured and distributed. that's potentially a bigger issue for advertisers looking to advertise on these platforms than any kind of potential regulation that may come in. >> it's true we've seen those measurement issues for the last year we've seen the youtube scandal unfolding earlier this year. despite that some brands maybe dropped off, youtube for a bit, many of them come back because there is no other alternative. you have to go to the facebooks and googles. >> it's a monopoly at the top of the market those two dominate the digital ad market space. you look at the smaller players like snapchat, like yahoo!

they're tiny so, yes,people do come floodin back i think when you have politics involved now and the potential for more regulations, these companies have to look at what they can do to tighten up the way they sell ads, distribute ads, and the way they give out those metrics to advertisers >> thank you very much for that. one final question, how many apple products do you have >> in my household five. >> that's big household. >> but spread across four people >> not just for yourself >> yeah. >> i feel better about what you're doing in your spare time. i think i have three or four, that's three people, including one toddler. >> the kids love the ipad. they love plague the gying the s >> they do. walmart shares soared after they said e-commerce figures will increase. >> walmart is making a prediction, it's forecasting

growth for earnings and sales including 40% online sales growth in the u.s. next year executives spoke to analysts in its hometown explaining that progress has been made to fix the fundamentals but there's still runway to go and the crux of walmart's plan uses its stores and online business together. the retailer says consumers that shop both in its stores and on its website spend twice as much as those who buy only in store >> we must make sure we're doing what's necessary to earn customers business gross and comp stores and e-commerce is a priority. >> while the online sales are growing rapidly, it's starting from a small base compared to sales in stores. and growing the digital business has been costly. >> when you build an online business, you're building a second business. at some point in time those two businesses converge. you can shake expenses out of the system i think walmart is in the early stages of that. >> walmart is the country's largest grocer and food account

force half of its totit its tots >> if you can offer fresh produce, consumables at the very best prices with a really good experience, whether pick up or delivery, then you have a good chance to build a long standing relationship that you can leverage to sell the rest of general merchandise. >> amazon is eyeing grocery as well with its recent purchase of whole foods. >> grocery, such a small percentage is online it's a category ripe for disruption in the space. who better to do that than amazon >> beyond grocery, more analysts and shoppers agree walmart has improved the stores and website in recent years but that doesn't mean the work is done, especially as consumer choices grow amazon continues to reshape retail and the all important

holiday season is just around the corner courtney reagan, cnbc business news. after this short break, fires rage on across northern california we assess the devastation and the rescue effort from the ground we'll be back. whuuuuuat?rtgage offer from the bank today. you never just get one offer. go to lendingtree.com and shop multiple loan offers for free! free? yeah. could save thousands.

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hello. welcome back to "street signs. i'm carolin roth these are your headlines separatism suspended spanish stocks rally after catalonia's president stops short of declaring independence, boosting the ibex which is led higher by the banks. but carles puigdemont still signs an independence document as he hopes to open talks with the spanish government which will respond to his move today. japanese equities jump to a near 21-year peak as the nikkei hits the highest level since december 1996. at least 17 people are dead and thousands of buildings are destroyed as a series of wildfires rage across northern california

good morning if you're just tuning in, let's show you what u.s. futures are up to in the trading seg yes, a few hours away from the start of the session in the u.s., but looking mixed to flat. the dow jones seen up only 1.3 points after closing at a record high yesterday on the news that walmart was having a share buyback and that online sales will rise by 40% the s&p 500 hit an intraday record high yesterday closing up 0.1% today seen off by 3 or 4 points. the nasdaq seen off by a similar point margin, off 4 points keep in mind we have the fomc minutes later today. that may be a key driver for the dollar when it comes to the european markets, we are mixed to slightly higher

maybe you would expect to see a much more risk-on tone given that we had the climb down by the catalan leader in the parliament yesterday, deferring independence essentially to allow some time for talks with madrid but of course we are seeing the ibex 35 rally now once again at new session highs, 1.5% to the upside quick look at the fx markets we're seeing a pop higher, 1.1833 we just had an fx guest on from saxo bank, he said the catalonia issue should not be a huge driver for the euro dollar pair, the biggest driver is who the next fed chair will or won't be. shares in procter & gamble closed lower after activist investor knenelson peltz was dee a seat on the board. peltz said the vote was too close to call.

sara eisen has the details. >> reporter: procter & gamble declaring victory today after a months long and somewhat ugly proxy fight between nelson peltz of trian to keep him off the board. peltz said the vote was too close to call. the margin 0.4%. he will wait for a final tally before he concedes defeat. either way he says the message was sent to big companies around the world loud and clear >> there might be arrows in my back temporarily but we're a pioneer, the fact is there is no company today that can't be called to task. not one. and heretofore all of these companies -- you couldn't get near them. you could buy something from them if you were private equity but you couldn't call them on the carpet. that's changed. and that's changed forever. >> p&g's david taylor had a

chance to respond in his message. >> there's only one solution to this, to deliver better results. we've started this process several years ago, deliver better results as i talk to other ceos, and i know they're concerned with this, is that the pace that you have to move in order to stay the lead in your industry gets increasingly difficult, which is why the changes we're making to transform this company are so fundamental to the future. message to me, to the board, to the company is, let's do the right things, do them faster and do them the right way. >> reporter: procter & gamble, a few years into its transformation and it's trying to adapt to the way consumers have changed their behavior around what they buy and how they buy it. also dealing with sluggish economic conditions and the stronger dollar over the last few years. taylor says he got the vote of confidence he needs to continue that transformation. but he also got the message that he needs to move faster.

back to you. >> let's get back to our top story. spanish bank stocks, they are rallying in madrid as the spread between german and spanish bond yields has narrowed. that's after catalonia's leader ca carles puigdemont stopped short of declaring independence from spain. he said he was suspending the results of the referendum to allow time for patalks with the spanish government let's go to willem marks >> we have one of the senior members of the original left wing republican party here, alfred bosk. i wanted to ask you, after you watched that speech last night, what did you think immediately >> i thought it was a clever move in a way it gives some air to this process it enables us to

open dialogue with the spanish government and the international community. we've been pushing this through for years. we know we've been trying to talk for a very long time with the spanish government and it's been unsuccessful. but the world doesn't really know that. so we must give a chance to everybody to realize how we are open to talk about solutions to the catalan questions. >> you as a pro independence person, you're hoping international pressure, it will be brought to bear on mariano rajoy which will bring him and his government to the table for the first time in five years >> exactly there's only one red line for us, democracy. the people have to decide. and democracy means that, it's the peoples rule so it's up to the people to decide whether we are independent or not we had a vote on october 1st for us, that's a binding vote. we had to declare independence, and we did it. now we're suspending it to see if we can solve it some other way but always remitting to democracy and the peoples

decision >> i saw one of the socialist members of the catalan assembly questioned mr. puigdemont after the speech, and he said he was confused he talked about being given a mandate that people like himself didn't accept, making a declaration that was immediately suspended. do you understand why many people within catalonia, spain and elsewhere see this move as a paradox? this process is unique this is a catalan process. it's not slovenia, it's not lithuania or other places. we have to find our own path people here are peaceful, civic, fully democratic all the way since this started seven years ago. and there's been demonstrations in the street, fully peaceful not one single injury in all these years. now that we have this spanish government crackdown with police violence and police chasing elderly ladies and whole families, we have to devise a way by which this climate of

peace is still there this civic attitude can be maintained through dialogue. if it's confusing it's because the spanish government has not sat down to agree on a path which might satisfy everybody and which is fully democratic like david cameron did in brit within scotland. that's what we would like but it seems impossible we have to find this round about way to get to a fully democratic solution >> one thing spanish leaders do seem to agree on, they've all said that there cannot be dialogue if this threat of independence, and they call it a threat, is kept on the table clearly by making a declaration of independence that threat is still on the table do you think they'll be forced to engage in dialogue even though throughout the process they said they will not do so with that threat on the table? >> if you look at the past seven years, there's been a wholesale

demand for independence. millions of people in the street all these political moves. there's been no dialogue so there had been no declaration of independence through the years. now that there's one, you have the international community offering assistance, the group of the elders with kofi annan, with ban ki-moon, with desmond tutu offering assistance to mediate. now we have more offers of mediation and dialogue than ever before yes, it's working. whatever the spanish government says, the world is now looking at this question with interest, and perhaps people in the world wanted to help in a mediation. so there's much more talk of dialogue now with this declaration of independence than there was prior to this. >> one final brief question. he's made the declaration. he asked for it to be suspended. you talking about democracy being the primal effort here but that declaration has been played can you put the genie back in

the bottle can you not say not within weeks or months? it could ab fbe a few years dowh road, or will he face questions from the cdp and the catalan assembly will he face pressure to follow through on that promise? >> the bars on the roof of rajoy and the spanish government if they offer talks and dialogue -- >> you think you can walk it back at that point >> we think we can find a democratic solution. i insist on that because people already voted. if they offer people to vote again, let's talk about that we cannot talk about any offer or any solution which does not deliver and which does not devolve the power to the people. we have to have -- bear that in mind so, we cannot solve this in some obscure office we cannot solve this in the street, see who shouts better. we have to solve it in the

batting box. that's what we did on october 1st. despite the police disruption and violence, people voted so that's valid. now, if somebody thinks there's a more valid way, let's hear about any further offers we have not had any up to now. maybe we won't have any. but we have to try we're giving a bit of respite to see if that is possible. if not, we will push it through. >> alfred bosch, thank you very much from the pro independence party here in catalonia. back to you. >> thank you very much. wildfires continue to rage across northern california leaving at least 17 people dead and destroying thousands of homes. jay gray is in napa, california. jay? >> yeah. a mess, as you talk about here we're in one of those communities gutted by the flames there are so many across northern california now. the flames continue to grow.

there were more evacuations overnight. there's concern right now that the wind is going to pick up again into the night and early thursday morning that may fan and push the flames across the region. we know that more than 2,000 structures have been burned. a lot of those homes like the one behind me here, at least seven people are dead -- 17 people are dead, excuse me 185 at last count are injured. still more than 100 missing. so this is still an active situation. they continue to fight the flames where they can. it's been an easier overnight into early morning here in napa. it's allowed firefighters to make progress, but there is big concern that this is going to flair back up and continue to push these flames and continue to be an issue for just dozens of communities, thousands of families across the region >> obviously the focus is still on those 17 people who have unfortunately and tragically

died just want to talk about the business impact. what this does to the wine industry in that region. >> well, we know at least five of the wineries have been severely damaged here. it's going to cause problems right now that's not the focus of a lot of people on the ground here, they're trying to save lives and structures, but i can tell you it's caused some serious problems to this point getting in and knowing the extent of this and where to go from there, that's still days if not weeks away >> jay, thank you very much for that still coming up, we'll bring you the latest on the alleged dispute between president trump and his secretary of state rex tillerson. stay tuned for that. [vo] when it comes to investing, looking from a fresh perspective can make all the difference.

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now this is an interesting story. president trump has challenged rex tillerson to something of a battle of wits responding to an nbc report that the secretary of state

him a moron, trump said he would win an iq test against his secretary of state >> reporter: the president growing increasingly isolated from his own team and party. hosting his secretary of state for lunch just hours after slamming him trump responding to a report that tillerson called him a moron i think it's fake news mr. trump told forbes magazine if he did that, i guess we'll have to compare i.q. tests and i can tell you is going to win the president sounding off while sitting next to a former secretary of state >> did you undercut your secretary of state with the i.q. comment? >> no. i didn't undercut anybody. i don't believe in undercutting people >> reporter: the white house dismissing the flap. >> he was wasn't questioning the secretary of state's intelligence >> he said he had a higher i.q >> he made a joke. might be you should get a sense of humor and try it sometimes. he simply made a joke. >> reporter: the white house isn't laughing about the president's escalating face off

with tennessee republican senator bob corker today the president took to twitter to give corker one of his characteristic nicknames, calling him little and a fool. this after corker said the president is putting the u.s. on path to world war iii. >> did senator corker write you're putting the u.s. on the path to world war iii? >> we were on the wrong path before all you have to do is take a look >> reporter: behind the scenes, party leaders ar urging both sides to cool it concerning it could derail the entire fall gop agenda but former top adviser steve bannon raising the stakes. >> if bob corker has any honor, any decency, he should resign immediately >> that's kristen welker reporting. opec is set to release its monthly oil market report after wti and brent posted their best session in over two weeks during u.s. trade brent crude up by a quarter of a

percent at 56.75 wti at 51.06 cnbc hasspoken with a number o oil heavyweights and asked about the level of compliance within the opec deal. >> we need a little bit of patience it has taken us over three years. all hands must remain on deck. not only to achieve this equilibrium price through restoration and stability, but how to work jointly with our non-opec friends to take measures that will sustain the restored stability in 2018 and beyond >> we will not get complacent. we are not going to celebrate any time soon because until we get the balances to where they belong, they continue to 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 work in the global economy, the job will not be done. >> translator: as a whole we're satisfied that opec is complying 100% there's some countries making greater reductions in order to compensate for other countries that are underperforming of course we also think this is not entirely fair. we are calling for each country to implement its agreements fully. but that is probably more of a matter for opec. in this instance we're speaking out as a parties pant country to the agreement. >> we have a lot to talk about with our oil market analyst. let's pick up on one thing that mr. barkindo said yesterday. he talked about maybe more cooperation with non-member members of opec with the u.s is that really going to happen that seems like fairy land >> yeah, because of the

antitrust regulations in the u.s. that's a bit of a stretch it shows opec is realizing that the u.s. is making up for some of the loss in their market share br by exporting more. it is wishful thinking from opec's part to think that the u.s. could be involved the other thing as well, u.s. production is spread out across a number of producers, even if in the far instance they would have joined which is not true because of the antitrust laws that are present >> every time the prices rise, every time export numbers from opec fall, we will see u.s. producers jump back in, increase production by a few hundred thousand barrels do you think they would comply in any way, shape or form on what opec is planning to do? they have their own agenda >> absolutely. they're happy that at the moment they have a price environment which is great for them.

sustaining cash flows. and the only we really is how fast can they grow to sort of match the gap in the market. it is questionable at the moment the growth rates are there, but it's nowhere as near as it was when oil was at $100 a barrel. so this current range might be the sweet price, where there is share growth, but just not enough to flood the market, but just enough to balance the market >> maybe that's the sweet spot for them we saw an interesting price move yesterday on the back of saudi arabia announcing that it will be cutting oil exports in november by 560,000 barrels a day. is this largely cosmetic we're not seeing as much demand coming from china, asia because of refinery maintenance or is saudi arabia doing its share is to doing more to keep compliance up? >> it is a signal that the kingdom is willing to go the

extra mile to make sure that the group's opec compliance levels are in a good shape. but i guess we would need to watch out for the real numbers in terms of what is production, how much have they put in stocks within the kingdom and what the fine export products are a lot of things are missing, but in terms of crude allocations they've done, in terms of the country in asia demanding more crude, that's where they said they have not allocated full, but just partial >> you've done research on what's happening in asia and china at this point in time what is happening is this all a political game, if you will, ahead of the congress next week? >> yeah. so the data out of china now will be closely watched. the congress is in session we are of the view that they will come up with measures that again reinforce the view that the economy is doing well. the oil market is looking for details in terms of what the changes are at the top in terms

of export and what guidance they will be giving to the industry in terms of future imports from the country. so far the demand is not that weak >> we are currently at about 56.57 when it comes to brent people get excited about this move towards backwardation how sustainable is that over the next couple of months? >> as long as the backwardation doesn't go too steep, too quickly, it's fine it needs to ab slow procebe a s process. if it's too risk, you draw too much inventories too quickly if it's a gradual move higher which is how the tightening process is taking place, you don't risk those barrels from storage coming through at the spot more than what is required. i think we are at gradual rebalancing process. >> thank you very much for that.

before we wrap up the show, just want to bring you interesting comments from uk finance minister, mr. hammond. he says we have to be prepared for a no deal scenario unless and until we have evidence that it is not where we will be ending up. we have been planning for all brexit scenarios including a no deal sterling/dollar currently unchanged at 1.3193. u.s. futures, last time they were slightly mixed. they still are the dow jones was at a record yesterday at yesterday's close seen extending those gains bay margin up by 0.3. that's it for today's show i'm carolin roth "worldwide exchange" is up next. see you tomorrow okay, i never thought i'd say this, but i found bladder leak

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the record rally rolls on. the dow set to open at another all-time high as we gear up for earnings season. your early morning setup is straight ahead. the death toll rises in northern california as a string of deadly wildfires continues to tear through the heart of wine country. we're live on the scene with the latest and it's a sign of the times for "time. the magazine giant is turning a new page in publishing it's wednesday, october 11, 2017 "worldwide exchange" begins right now. ♪