hello. welcome to "street signs." i'm carolin roth these are your headlines ubs shares rise after a near 40% jump in pretax profits, but the bank says low volatility could affect declined activity the ceo tells this show he's satisfied with the numbers >> down a percent in a challenging market environment if you look on a relative basis towards our competitors, it's a strong result. rbs rallies after beating expectations as cost cutting

helps to turn in strong operating profit keeping it in the black for every quarter this year vw shares accelerate to the top of the german market after net profit hits 1 billion euros. and turbulence for iag after beating forecasts. welcome to the show. it's friday. these are live pictures from madrid of the senate session meeting to debate and vote on the proposals to implement article 155. let's look at the stoxx 600, we're higher to the tune of half of a percent we're very much driven higher by earnings we had well-received earnings

from the likes of ubs and rbs. we'll get to that. and we're basking in the glow of the ecb, dovish taper announcement that we saw yesterday. european markets one by one look like this the ftse 100 up by 0.4% the xetra dax moving higher, 0.7% the cac 40 putting in a respectable gain of two-thirds of a percent as i said, it is all about earnings in today's biggest third quarter earnings movers. volkswagen beating expectations as 2017 revenues rose more than 4% the german carmaker edged it's market outlook higher. rbs reported a strong increase in operating profit as it keeps costs under control. up 1.8%. media bank net profit jumping 11% boosted by a stake in motor way group. total reporting a 29% increase in third quarter net profit boosted by rising output and

high refining margins. this was in line with expectations shares up by 1%. let's talk about some underperformers here banco sabadell posting an 8.3% fall in net profit after the bank saw lower lending income. and we've got swedish construction company skanska off 6%, meeting expectations as its outlook on the construction market remains positive. and we have iag, which owns british airways and i bebera, it has beat expectations, but shares are off by 3.8% we need to mention ubs the swiss bank reported third quarter net profit that grew 14% coming in just below expectations the cet 1 ratio increased to

13.7%, net new inflows grew internationally, it saw $2 billion leave it's u.s. business g joumanna bercetche is standing by when we talk to banks, we want to talk about the outlook. how cautious is ubs? >> that is an interesting point. in the previous quarter they sounded a bit more optimistic about the macro economic vishment from hevish m environment from here. they toned down their rhetoric a bit. they cited low interest rates, clearly that's been a problem for a couple of years now for the investment banking community. he also mentioned specifically geopolitical risks, and the fact there's little clarity about brexit when it comes to the uk and europe

and at social security levels are at a high level, so that means that overall client activity dropped a bit we had a chat earlier about some of the other areas of the business that he was more optimistic on. let's take a listen. we are set to grow our assets around 50 billion. i think it's good results. we have been anticipating outflows for financilization ofh process. we expect 8 billion to go -- 6 billion to go before fully anticipated. we saw outflows due to the fact that we have been managing our balance sheet and deposit on euros in an economic profit or other way. overall those outflows are

within our targets we are set to continue to grow in the future as we see our investments, as i said before, paying off in the near future. >> i see you posted quite a strong growth in the asia pacific area is this a target market for you going forward? >> it has been for the last decade it will continue to be for the next decade. it's a very important part of our business model, but also overall, it is the region that is set to grow exponentially we published yesterday our surveys, and you can see now the numbers of billionaires in asia as exceed in the u.s., not in terms of overall asset size, but in the next three years it will be the case. so the reason -- there's a new billionaire every two, three days in asia asia continues to ab fan tabe ac

opportunity. we have the infrastructure to grow our business. we are also looking at always the next generation. so the interesting part about asia that we are out of people coming out of poverty into being affluent, from affluent going into net worth and becoming billionaires we try to keep focus on all segments and capture opportunities opportunities. >> i want to talk about the investment bank. as we've seen from your peers, the fixed income revenues and macro revenues are down substantially. ubs posted a drop for this quarter, and fixed income and fx and macro. so do you think -- do you expect this activity will pick up at some point in the future it seems to be a systemic

problem at this point in time. >> i think it's -- i think to some extent, you know, the fact that business activity and the numbers are down, in a sense it's good news they're correlated to global activity level. we are highly skewed towards effects in our businesses. we're one of the leaders, but much more focused on institutional businesses than on the corporate side therefore we see that -- that dynamic playing out in our profitability. having said that, if i look at our business model in that area, it's quite clearly focused on creating facilitating business clients, and focused on capital returns. we are glad that we have a strong equity franchise and was performing well in absolute relative terms and we had an

exceptional result -- >> still down 2% >> still down 2% in a very challenge i challenging market environment if you look on a relative basis to our competitors it's a strong result our client advisory business was up considerably. so showing also the effect of diversification within our business in line with the strategy of the last few years, focus is on expanding the business and the private bank of ubs. but i thought the comments on the investment banking side were interesting, that 37% drop on the fixed income numbers, that's quite significant. it speaks to the pain many investment banking peers are going through. he says he is quite happy with how they've done, all things considered and given the fact it is a challenging environment. he doesn't seem to be that

optimistic about the outlook from here. >> cautious as always. joumanna bercetche, thank you very much for that when i see that shot, i do miss zurich on those beautiful mornings joining us now is the senior credit analyst we have a lot to talk about. ubs is the poster child of the big restructuring drive that we saw among european investment banks. it has now a stronger cet one ratio of 13.7% what's not to like about the bank >> they were the first to restructure in a different way if we look back over the five years, they were right to take the measure five years ago we see the american banks result we see yesterday results from

barclays in terms of the capital, it's positive so far this year it's been disappointing. they were changing the regulations. they say they were anticipating basil 4. i guess one thing that is a question mark for the likes of ubs is the client activities that's the longest bull run market in u.s. shares. so we see fixed income valuation approaching top level. we see also demand and commodity have been rebounding and of course if clients think there's upside from here, it justifies institutional clients or the likes of ubs, taking a step back and perhaps quitting the market and coming back at

further time >> all the banks have been bemoaning the lack of volatility in the market and the lack of opportunity for clients. there is opportunity for bbva, which is not really a spanish bank but an em-focused mexican bank it has benefited greatly from the volatility that was seen in the mexican peso versus dollar pair >> it has. but the question is, of course, pick up in volatility in september with all the questions around the renewal or not, if that's the trade agreement in north america. as we said, it is peculiar in the sense that all emerging markets, turkey and mexico featuring very internal profitability, because pain and suffering. to date this quarter was positive but we saw a lot of winds with their pain the question with bbva, are they

past the entire rebuilding phase. and the demonstration of that is disposing -- they started negotiation to dispose of bbv bbva chile, which could be a positive, the same for santander, which is on the lower side considered the footprint of the bank. let's touch on rbs shares doing well this morning last nine years it's been terrible for this bank we're waiting for that big cloud that is still hanging over this bank that's the dodge settlement. do you want to touch on whether it's credit or equity about this before we know what settlement is >> the most important thing is that there is the capital. it is very sound north of 15% ct

1 ratio. i don't know if the dodj settlement is coming in the fourth quarter or in 2018. it will be a big change after ten years of losses. we don't know what the number will be. we know they have about 11 billion pounds of vef reserves if we can summarize on equity and credit the story around royal bank of scotland, senior inside rbs is a good bank ready to emerge. perhaps that will be in 2018 >> in the meantime until we have clarity about the settlement, you think this is the best play when it comes to the tightening cycle for the uk you think this is a good play only rising interest rate scenario i guess these gains have been

included in the price. is it too late to get in >> no. it's not too late. they are two different propositions rbs is skewed towards potential rate increase both in uk -- mostly in uk 90% of the business is in the uk it doesn't deal with unsecured credit we think rbs is well positioned, because unsecured credit is relatively little compared to lloyds and other banks which operate in the uk. >> thank you very much for that. >> thank you again, want go back to the live pictures from madrid of the senate session meeting where they're debating and voting on the proposals to implement article 155.

you can see that prime minister mariano rajoy is currently speaking once we do have more commentary from him, we will bring that to you. those are crucial times for spain at the moment given that today we're seeing a session in the madrid parliament but also in the catalan parliament. yesterday we saw that mr. puigdemont failed to call for fresh elections. it's anyone's guess as to what will happen now with the region and the secessionist drive e-mail the show, streetsignseurope@cnbc.com you can also find us on twitter, streetsignseurope@cnbc and tweet me at @carolincnbc we have plenty coming up tech titans keep on rising amazon and alphabet smash estimates in an eventful earnings release statesside. we discuss after this short break. [vo] when it comes to investing, looking from a fresh perspective can make all the difference.

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a one-way ticket to political instability. a court ruling in australia over the holding of a second passport has seen the deputy prime minister lose a seat and the

government its slim majority four other lawmakers have been told they're ineligible for parliament for having dual citizenship. matt taylor filed this report from sydney. >> australia's high court ruled that five sitting members of the australian parliament are ineligible to be there because they hold dual citizenship front in center is the leader barnaby joyce. this means that the australian government led by malcolm turnbull loses its one-seat majority in the house of representatives. the high court ruled that a bi-election should take place at the start of december. until that time, the government ruling without its majority, the australian prime minister, malcolm turnbull saying the business of government goes on here's some of what he had to say in the wake of the decision from the high court.

>> it's not the outcome we were hoping for but the business of government goes on we have a majority of members in the house of representatives, even in the absence of barnaby joyce. and, as you know, we have support from the cross bench we welcome the court confirming matt canavan's ability to sit in the senate but we're disappointed that the court found against barnaby joyce. >> seven members of parliament faced the high court five were ruled ineligible the government will now have to wait until that bi election on the second of december the deputy prime minister saying he will stand again. he does respect the decision of the high court, but it's anyone's guess as to what the outcome of that bi-election could be

that's the latest from australia. back to you. >> shares of eni are trading lower as they swing towards a third quarter profit but falling short of expectations. state-owned company reported adjusted operating profits below forecasts while confirming production will grow this year stay tuned to cnbc we'll speak to the ceo of eni and the chief executives of bp and total, that's live from the oil and gas climate initiative from 13:00 cet onwards i wanted to take you back to madrid these are live pictures of the senate session meeting to debate and vote on the proposals to implement article 155 the prime minister, mariano rajoy, he is still speaking i want to bring you some lines he says in catalonia there have been attempts to ignore the laws, not to follow them, and it's ed thd that a new legality has been passed according to what they told us

what occurred on the 6th and 7th of september in the catalan parliament he says was the biggest joke, when illegal laws were passes and a referendum was called so strong language as usual from mariano rajoy, the prime minister of spain. the ibex is down again today swinging between gains and losses off by 0.4% this morning yesterday it rallied hard, up by more than 1% this is on hopes that we would get a break through in the impasse between barcelona and madrid, obviously we did not get it over the last three months, the ibex has been down 2.5%. it was a very big day for the tech titans state side amazon, microsoft and alphabet reporting. amazon soared, and customers

snapped up grocery from whole foods. alphabet enjoyed strong growth in ad sales and higher than expected operating margins josh lipton has more >> alphabet reporting a clean beat across the board. earnings per share of $9.57. the street was looking for $8.33. revenue, 27.77 billion on the call, the ceo laid out his vision for the company, and his focus on ai. >> consumers can already experience how ai allows ai computing more naturally than ever before. computerers are adapting to people, rather than people needing to adapt to computers are. fundamental is google search and our assistant. we introduced our assistant last year and it gets better every day helping people get things done in the real world

walmart and target integrated with google home, which means you can order every day items from them much more easily >> sundar pichai talking about how various businesses were performing he mentioned youtube which he said was seeing phenomenal growth with 1.5 billion users who spend about 60 minutes a day on mobile. 100 million hours of watch time in the living room alone every day. that's up from the year-ago period he also talked about google cloud and would wla would differentiate his technology from amazon and microsoft. he said the prowess they have in machine learning and analytics ve recently google announcing that partnership, and building out that global sale force finally he talked about hardware, saying they are seriously committed to hardware

that they can take advantage of the ai software and hardware he mentioned the new google pixel phone, preordered doubled what they were last year josh lipton, cnbc business news, san francisco. in other tech news, twitter shares spiked over 18% the social media platform said it could become profitable for the first time next quarter as cost cutting and data licensing deals gather pace. microsoft saw demand surge for its cloud computing services cnbc spoke to one analyst who said investors should short tech at their own peril >> this was, i think, a shock to the bears. we only saw that from the post market moves, like 7% up in amazon, that demonstrates a lot of wishful thinking in the market that these had gotten expensive and had their day. the fang story had gone. i think when we talk about another game in town what you do have an option on right now, also reporting last night was

intel. they reported eps growth of the same magnitude as microsoft and alphabet but you pay 11 times ev for intel versus 17 times for microsoft, 16 times for alphabet >> after toasting to a strong earnings report, head online to find out how much amazon and alphabet ceos are likely to pocket check out our site to check out how asia is producing one billionaire every two days president trump's biggest hiring and firing decision yet we'll look at who might get the presidential nod to run the federal reserve that story in just a bit okay, i never thought i'd say this, but i found bladder leak

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hello. welcome to "street signs." i'm carolin roth these are your headlines ubs shares rise after a near 40% jump in pretax profits, but the bank says low volatility could affect declined activity the ceo tells this show he's satisfied with the numbers >> down a percent in a

challenging market environment if you look on a relative basis towards our competitors, it's a strong result. rbs rallies after beating expectations as cost cutting helps to turn in strong operating profit keeping it in the black for every quarter this year vw shares accelerate to the top of the german market after net profit hits 1 billion euros. and turbulence for iag after shares in the airline operator sink despite beating forecasts, as weather and terrorism concerns hit performance good morning thank goodness it's friday it's been a busy week for investors. we have the ecb, plenty of

speculation about tax reform and who the next fed chair will be a quick look at u.s. futures, markets in the u.s. were very much driven by earnings in the trading session. stocks closing higher after twitter and ford earnings beat the street the nasdaq seen up by 71 points after we had all these pretty substantial beats coming from amazon, microsoft, alphabet moving sharply higher in after-hours trade. the jouj seen up by 35 points, the s&p 500 up by 8.5 points in european markets, we are feeling that ecb taper effect that we saw yesterday when markets saw their biggest rise in six weeks, up by 1.1% broadly trading at 5-month highs. also supported by many earnings out there from the likes of ubs and rbs.

also want to show you what's happening with the fx markets. the euro/dollar trading at 1.11635. we a we have the move in sterling, 1.3075 the latest survey from halifax shows the housing outlook falling to a five-year low respondents were pessimistic about the economy rather than higher housing interest rates. let's get back to the u.s. republicans narrowly approved a

2018 budget which means legislators are one key step closer to passing a comprehensive tax cuts package democrats voted against the budget house speaker paul ryan said the new budget will help boost the u.s. economy >> today, we passed a budget that is fiscally responsible, strengthens our national defense, and it is really good for taxpayers. most importantly, this budget that we just passed in the house today brings us one step closer to historic tax reform that means more jobs, fairer taxes, bigger paychecks for americans. >> house democratic leader nancy pelosi criticized the budget saying it is tilted towards the rich >> on one side of that line in the sand, we have the republicans in congress who are in their dna committed to a

mission of giving tax breaks to wealthiest people in our country. the budget they put forth, in that budget 82% of the tax cuts will go to the top 1%. president trump is clearing the release of thousands of documents relate to the assassination of president kennedy. he's keeping some files secret because of national security concerns tracie potts is in washington. 2,800 documents released journalists have been poring over them. what did they find >> so, overnight we found that most of those documents had already been released. about 50 of them were brand-new. among those was a memo from then fbi director j. edgar hoover, that memo written on the day lee harvey oswald was killed hoover was concerned that information get out quickly so the public come to the

understanding that oswald acted alone. that's what the warren commission eventually found. here you can see this release and some of these documents that have come out overnight. j. edgar hoover wanted the public to believe that oswald acted alone as opposed to con spe conspiracy theories. he was also concerned that the dallas police department did not protect oswald from being shot by jack ruby that's part of what we learned in that new documentation overnight. there are still thousands of documents out there, particularly with the cia that have not been released president trump says he'll now give the fbi and the cia six months to go through those documents. but he is urging them not to delay any further, not to ask for any more postponements he wants all of this information to get out the cia says there are still

concerns about names of agents, former agents, methods and partnerships, some of which are still relevant today they want to make sure that information is protected >> tracie potts, thank you very much for that. three house republicans are urging president trump not to reappoint janet yellen when her term expires in february trump says he will make a decision soon. politico reported yesterday that he was leaning towards choosing either fed governor jerome powell or stanford university economist john taylor. but trump has spoken highly of yellen and the white house stresses that no decision has been made just yet let's talk about the outlook for the dollar we have with us ben gutterich. you think it will be powell, not taylor >> i do there's an element of unpredictability about trump, but his policies look to be quite expansive that means a lot of debt issuance and taylor is more the hawk.

and yellen is an obama appointment, she's establishment. as we've seen there's lots in the republican party who would like to see change there through that process of elimination you're left with a dove and powell and policy continuity >> with powell, as you say, an extension of what yellen has been doing she was more on the dovish side. you're still a dollar bull, even though you think it's going to be powell. how does that go and in hand >> you tripped me up there these moves at the margin can interrupt the currencies on a day-to-day basis on a medium-term view, the u.s. has enjoyed better financial conditions, the dollar that been weaker bond yields are lower. the market is short the dollars. on that basis, there's a weight of money to come back to the dollar trade we inflect inflationary surprises as a result, and better financial conditions

delivering better growth numbers. we think there is scope for dollar strength. what do you think it means for equities, especially u.s. equities and emerging market equities, both could suffer if we see the dollar strength coming back to the fore. >> i totally agree we have to be genuine about the scale of dollar appreciation we don't think it will be a surge like in 2014, 2015 we've seen modest appreciation but that would still be a trickier environment for emerging markets to deliver the type of returns that they've enjoyed over the previous 18 months so, we would par back our return expectations in emerging markets. nevertheless, we still see the global growth environment as benign, healthy at the moment. we don't see a modest dollar appreciation as disrupting that. >> i want go back to madrid. we have live pictures of the senate session meeting where the parliament or the members of

parliament are debating and voting on proposals to implement article 155. mariano rajoy has been speaking for the last half hour or so i just want to bring you a few more lines he says the catalan referendum was a joke to democracy. he also said i want the elections to be held in the shortest possible time, adding that liquidating the law breaks the public good, fractures society, divides families and stops long-time friendships. we can make an example of this situation. also adding that they're all anti-democratic decisions contrary to the law, to the normal comfo comportment, crushe minority with respect to the legal state. a quick look at the ibex and how it is faring today off by half of a percent after bouncing back rapidly yesterday to the tune of 1.5% as there were hopes out there that there

was going to be a break through between barcelona and madrid that did not happen. let's talk more about the story with willem marx who has been our expert on this story you spent a lot of time in barcelona. what do you think the response will be from barcelona on this yesterday we saw chaos in barcelona. puigdemont was going to call for new elections and didn't >> i'm talking over the course of this morning, quite a few catalan lawmakers on both sides of the story his deputy was unhappy yesterday with the idea that there might be elections there was a division within the coalition on that. that may be one of the reasons that he bottled it in the words of many people over. there we saw the protest over the course of yesterday afternoon, saying he had betrayed the intense movement and some of the far-left members of his coalition, the ones putting out public pressure on him, some of them calling him a traitor on social media. he lost two members of his

party. so carles puigdemont facing a huge amount of pressure. he gave an explanation yesterday for why it was that he was not going call these elections >> translator: i was ready to call these elections if the guarantees for absolute normality were given there were no guarantees justifying calling an election today. he went to catalan parliament yesterday afternoon and yesterday evening, he sat there with his deputy listening to how the catalan lawmakers were seeing this current situation. he faced a lot of criticism as you might imagine from mps within the catalan party, also socialists one of the leaders of the socialists who has been no friend of rajoy, he tried to explain to the catalan parliament and talk to puigdemont about this fine line he is having navigate. let's take a listen. >> translator: mr. president, you have to think is deactivating article 155 the best thing to do therefore i want to recognize

your current for hesitating between conviction and responsibility, between the comfort of your supporters and the defense of everyone's interest i am aware or i think i am, of the loneliness or uncertainty and the pressure you're under. >> of course it's not just puigdemont who is lonely in those thoughts mariano rajoy is facing a challenge in madrid. he has members of his own party on the far right pushing him to crush this catalan rebellion he himself, you know, he's speaking there now to the madrid parliament the senate, the upper body of that chamber will be voting later today. we expect a vote mid afternoon to ratify article 155. he's not obliged to use those measures once he has the ability do so. once it's added to the official state bulletin, those will come into his powers. he's having a meeting with his cabinet this afternoon so we should see the use of these measures he called for how the catalans will react to that, it's not clear

they say it could lead to a declaration of independence. many think that's symbolic at this stage because it wouldn . >> because it wouldn't be accepted by madrid what happened to the credibility of mr. puigdemont after all this back and forth and flip-flopping? >> after the october 1st referendum, he had ra huga hugen of support from people within his coalition and regular catalans in the street since then, his rather fractious coalition, we've seen these cracks appearing it's not unlike some difficulties that rajoy is facing in madrid in terms of holding on to socialists, his political opponents. they're less willing to push through the measures of 155 but puigdemont has lost a lot of support and has seen some krit sfric criticism from his allies.

>> mr. rajoy saying you all must decide if you will stop catalonia from being abused. you say catalonia to you, your investment outlook is irrelevant why? >> well, i don't mean to undermine the hard work you're doing on this story, these are serious issues but is it the case they're about to disrupt -- or bring about a threat to the european union the cold calculated pace of the markets? i think the answer is no why it's a serious matter, we don't need to react violently in portfolios >> one final comment from mr. rajoy. he says article 155 is not gavns cat lo against catalonia but to avoid catalonia being abused trying to end this on a softer line there ben, thank you very much for that you will stick around for longer willem, thank you. e-mail the show if you have any thoughts on catalonia the

address is streetsignseurope@cnbc.com of course, you can find us on twitter, streetsignseurope@cnbc. coming up a new complication in the already tricky brexit talks. and what bank of america's boss is worried about ...who have built their website using gocentral, did it in... ...under an hour, and you can too. type in your business or idea. pick your favourite design. personalize it with beautiful images. and...you're done! and now business is booming. harriet, it's a double stitch not a cross stitch! build a better website - in under an hour. free to try. no credit card required. gocentral from godaddy.

welcome back to the show the irish foreign minister said brexit talks cannot move ahead until there's more clarity on the ireland/northern ireland border issue along with the uk divorce bill and the future status of expats, it's one of the trickiest questions facing negotiators on all sides. bank of america ceo brian moynihan has turned more negative he took a strong line on the exit from the eu >> it's not good at the end of the day, without brexit hanging over our head, we would be plugging away, working for customers, adding people,

bringing teammates into london all that gets pulled into question so it's not good it's not necessarily what everybody thinks about traders like this on the floor, it's the accountants who support them, the hr team that supports them, the legal team, the investment bankers, the corporate bankers, the people that run the cash management franchise so the idea to have a hub that supported a region of that size as big as the united states is no different than new york to the rest of the united states. when i think about i can't quite operate this way, it's disruptive every industry is going through this it behooves us all to get a set of rules we can understand the people voted did we all want it not to happen sure but they oted, it's going to happen and now the questionis what ar the rules. i think if we can get some rules we can figure out how to mitigate the impacts to everyone at the end of the day, if we do this perfectly, the clients don't get any better service. so there's no upside, it's just can we avoid the downside. whether it's lloyd or myself or jamie, james, everybody is trying to figure out how do we make sure the downside doesn't occur, there's no disruption in the markets.

disruption in client flows the costs go up to the point where we have to think about resource deployment. that's what we're trying to avoid. that never plays well to the incumbent and that's what london is facing. let's get back to ben. before you told me catalonia is irrelevant to your investment outlook. you also say brexit is the same, irrelevant >> f >> again, it's a serious issue unlike catalonia, which should resolve itself, brexit still has lots of uncertainty about the way that could unfold. it's irrelevant for now. it will be quite some time before we have a clear picture on which way the cards are going to land, if you'd like therefore, you know, the market's key guide to how brexit is evolving is sterling and therefore i just don't think sterling is going to adjust on the basis of these deadlock negotiations what is central to your outlook

for equities moving higher and the dollar moving higher is it all about u.s. tax reform. >> it's not all about that we think that's helpful. it's a bit of a buzz phrase, synchronous growth the u.s. economy continuing to perform. europe pressing with its contribution to global growth. china, despite stimulus coming off, actually destabilization still remains intact while it's not reaccelerating, a chinese hard landing is off the table for the time being and that contributes to the global froth story which is a good news story for equities >> when you're in the good news, blue sky environment, in this sweet spot for investors, don't you feel like there's going to be a rude awakening somewhere? there's got to be a black swan somewhere? we don't see ton the horizon yet. >> yeah that could easily happen we don't discount the risk of

markets taking 5%, 10% from investors, even for no news. it's a tricky game to play that. i think on a -- we believe on a 12 to 18-month basis, recessionary risks are low, or sufficiently low for us to be leaning in to equities at the margins, central banks are moving away from extreme accommodation to accommodation that should bring more volatility but weakness is our message going forward. >> you probably think that mario draghi did exactly the right thing yesterday, delivering a very, very dovish taper, still giving enough assurances to the market that stimulus will be here for the time being but we're slowly taking our foot off the pedal? >> yeah. that plays into the thesis that recessionary risks are a disptat process. the removal of the -- the scale of the removal of the accommodation was quite grand,

yet the euro sold off, showing how much love there is for the euro. what about bonds i know sovereign bonds is not the place you want to be, given we're seeing this slight but gradual tightening move. corporate bonds is something everyone highlights. even that space must be getting a little more crowded. >> yeah. i think spreads are indicative of the crowdedness of the trade. yields are extremely low it would not be our best case that there is tremendous money to be made in corporates or sovereigns we would not be so arrogant to lay down our core view is a done deal we recognize the chinese hard landing or policy error in the u.s. are reasonable risks to our thesis duration, high quality, long dated bonds have a role to play. >> you still want to keep some long dated gilts or treasuries in your portfolio. >> ultimately dull instruments on their own, but for the rainy days, you're quite right

>> ben, thank you very much for that >> pleasure. before we wrap up the show for this week -- yes, it is friday let's look at european equity markets. we're broadly higher there you go the cac 40 up by 0.7 %. the xetra dax is up by a similar margin, 90 points. ftse 100 trading higher to the tune of 0.3% we're seeing a a move down in sterling today that, given the inverse relationship between the currency and index is supporting that index the ftse mib is down by 0.2% obviously this is one of the peripheral markets that did well in the trading session on the back of that dovish taper coming from the ecb i want to switch over and tell you what u.s. futures are up to. yes, we're still a few hours away from the start of trade in the u.s. the dow jones is seen up by roughly 30 points. nasdaq up by 70. the s&p 500 seen up by 8.5 keep an eye on the nasdaq and

what's happening there give than we had plenty of -- much better than expected earnings from big tech, alphabet, amazon, microsoft, beating expectations, smashing analyst forecasts. that will be reflected in the nasdaq today again, seen up by 70 points. overall the dow rising 71 points in yesterday's trading session quick look at oil prices brent crude at 59.22, off by 0.1% wti crude at 52.60 tune in for our special broadcast from the oil and glass climate initiative at 13:00 cet. we will speak with the ceo of bp, the ceo of total and the ceo of eni have a great weekend, everyone see you next wk.ee his late 50s our investorsn right in the heart of the financial crisis, and saw his portfolio drop by double digits. it really scared him out of the markets. his advisor ran the numbers and showed that he wouldn't be able to retire until he was 68.

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amazon amazes. the stock soaring to record highs following a monster earnings's beat. we're digging into the numbers. >> biggest healthcare deal ever. cvs to buy aetna for $66 billion. and trouble in toy land. shares of mattel are deep in the red after an earnings miss we'll tell you what happened there. it's friday, october 27, 2017. "worldwide exchange" begins right now.