out a new trading day. the news from wall street was weaker as stocks fell across the session. it does follow a bump trading day for tech stocks. you saw the market for the nasdaq hot, the dow and the s&p had more weakness. some concerns around links to russia that has been unfolding

stateside as a special council pushes ahead with allegations, and some concern about tax reform, the implications that might mean for a key legislative win for donald trump the other big news crossing was suggestion that's overall corporate tax rate might end up around 20% by 2022 which is underwhelming in terms of expectations for a lore rate of 15%. just fading on wall street also in asia today disappointment around the data sharper than expected slowdown in the factory growth orders all of that is being digested in europe as a number of corporates are crossing the tape. in the uk, we're close to the 7,500 mark as we inch forward by ten points the french market trades on the flat line. we're not showing you the dax as it is closed today the rest of the markets open, leading into the green the exception is the zurich stock market fade big 0.1%

getting into the big earnings, bp posted an underlying replacement cost profit of 1$1.8 billion, that has beaten expectations they announced they will restart their share buyback program. total revenue for the third quarter was 61 billion compared with $48 billion a year ago bp benefitted from a recovery in oil and gas production it's kicked off six major projects this year the stock is strong. 3.3% adding to the three-month performance. fairly decent performance for bp the early signals from wpp, it was called open 1% to 3% lower, we're down 1.4 currently the company has cut its outlook for four-year organic net sales. the advertising company expects flat like for like net sales

growth amid decline in client spending the group has reduced its profit mar jgin forecast sir martin sorrell said the company keyed in on coassts amid weak global growth >> in this relatively low-growth world where there's little inflation and little pricing power and a great focus on costs. if you look at our numbers, the uk and western europe are stronger on a geographical basis. from a functional point of view, digital and media continues to perform better than the average. so there are brighter spots in the context of geography and in terms of function. overall there is considerable pressure >> so, another quick look at the stock reaction down 2.2%. want to give you the three-month view august was a big reporting time. huge slump in the share price.

fairly significant move. a slow grind lower this morning we are tracking softer as well there's been a retreat going into the earnings today. the stock as a result on the three-month basis down 18% so fairly significant for wpp. let's look at ryanair in the travel and leisure space as it moves strongly to the upside a better day for the company bounce of 4.6% and correcting some of the dip in its share price, like wpp, it had some woes in the last three months. it's been down double digits today we trim that down 8.6% ryanair reported a slight drop in net profit in the latest result citing costs linked to the cancellation of over 20,000 flights due to staffing problems net profit fell 1.8% in the third quarter. ryanair maintained its four-year target and said the issues are behind them. >> michael, like myself and

everybody else in ryanair is hugely proud of our pilots >> do you think they put pressures on themselves. >> our pilots do a great job we have over 2,000 flights today. 90% of those flights will be on time our pilots, cabin crew and the rest -- >> i would challenge to explain how this is a difficult job or how it is they are overworked or how anybody by law who can't fly more than 18 hours a week can suffer from fatigue. that's not really backing your people >> we back our people. >> i never heard carolyn mccall or someone like that talk about their own people like that that's tough language. >> the offer on the table for our people speaks for itself we have a phenomenal roster. we have massive promotional prospects. we pay exceptionally well. our people are happy i've been totally taken back by the amount of pilots and cabin crew volunteering days off the past four, five weeks as we have

gone through the rostering issue. we totally addressed it. >> steve can forget about sitting in seat 1a after that interview. airbus reported a drop in operating profits saying lower aircraft deliveries weigh on the third quarter. the company reiterated their guidance and said it is too early to determine potential problems related to corruption products steve. >> we're having a great chat around the desk about a whole who's of things. we have moved on to arse arsene wenger. we have kevin mcdonell and julianne chittleworth. there was a connection between markets and wenger and what you were talking about we were saying with mr. wenger, a brilliant manager, not producing the silverware for the gooners, he never sees the foul in the penalty box or anywhere from his own players he never sees any ill from his

own players when he talks to the media. michael o'leary maybe has not backed his team publicly >> so who is the better manager? >> that's the first time it's been asked on better news who is the better manager arsne wenger or michael o'leary? >> they both have done well. it's a question if they can continue do well or is it time for change >> do you think it's time for change >> not so sure about the -- about michael. with arsenal, personally i think it is. i think where arsne wenger is concerned, i think this season he either brings home something or he goes. >> as long-time viewers know, i'm not a soccer fan either, i support west ham let's ask kev bein about the swt spot in the markets does that

transpire to too heavy valuations >> probably not. we think the sweet spot continues for some time. the economic growth globally around 3.5%, 3.6% is strong enough to generate decent corporate profits growth, low inflation, enables central banks to remain on the dovish side we saw the ecb firmly in the dovish camp and will remain so as well the bank of japan, even if the bank of england raises rates this week. the fed unlikely to see major change into next year given the u.s. economy outlook and the new chair person so, for us, that sweet spot continues. but equity -- for equity valuations to be justified, earnings growth is the key driver >> doesn't earnings growth come if you have an economy that comes up from some of the decent rates we've seen just in japan today we have had it's impossible for the economy to grow 1.5 to 3% that from

kuroda, and then the 2019 outlook showing the forecast doesn't show the economy stagnating, i know you're being a strong supporter of the small cap japanese stocks. does that still hold up if the growth rates reset lower from what we have enjoyed this year >> it seems to be if you look at japan, where we have the small and mid cap, they are growing 10% plus valuations are reasonably inexpensive. in japan they're using technology significantly to boost productivity more importantly if you look at profitability in the private sector of yes pajapan, it's at a record high since the 1980s. you have surplus cash flow within corporates. japanese corporates have very little debt, huge cash services. so they're able to use those cash services to generate through investment and generate growth, not necessarily to just

satisfy domestic demand, but to satisfy global demand which has picked up over the past 12, 18 months in our view, sustainability, profitabilities for the right companies, the right sectors is absolutely still intact. globally there's enough growth for goodquality managements an the right company -- >> i noticed in -- we get a daily stance report. i noticed technology has had a fantastic month. we saw the numbers you had some fantastic figures last week. up 7%, the tech sector, in july in the united states -- sorry, in october the best since july 2016 telco down 29% the worst since 2010 you have, despite the gley initial pa glacial pace, you have some stagnation

technology a bit more on this one, you expect heavy valuations, do you feel there's a trade to be had in either sector >> i think we continue to like leading tech names and i think the results we saw last -- back end of last week from those three leading names, amazon, microsoft, and google, or alphabet as it is now, support that in telecoms, what i'd say to you is that we were talking about secular change in advertising, i think the advertising industry is going through massive change. these are long-term utilities. are they growth utilities? they are a utility people got excited about the growth you may see in mobile consolidation, that consolidation may not happen sprint, t mobile, may not happen in the states. all of that leads me to say you want to continue to back tech. >> i think technology for us is

a theme we like. it's about the growth story. we see that growth as sustainable. companies have to invest in technology, low productivity world. from a utility point of view, utilities, telecoms are subject to regulator change. more importantly as well at the moment the markets have been through a period of rising rates on the back of prospect of higher interest rates and fed reducing their balance sheet we think that's a short-term impact and that will quickly wear off for us utilities, telcos, it's about sustainable yield. >> fabulous. here's an interesting one. karen knows far more about this than i do. how can a maker of pipes and valves for mining and energy be doing that today given what we have seen from the likes of bp and other oil majors in the season >> i think it goes back to the story of making the most of what you got, whether you're spending more on finding further wells or developing further projects

across both industries we know capex has been challenged for mining and energy, which means anything that provides a service is effectively hit. we agree about demonstrating some concerns of the stock it's been an interesting mover from pretty much mid-september, strong move higher then the disappointments into the mix today to the point where it's the worst performer on the stoxx 600. w w weir posted a 21% rise in third quarter orders with its oil and gas deviivision up 60%, but sa 0 2018 would be lower due to project delays in the minuerals division and clariant posted a strong set of third quarter numbers with sales and core earnings beating analyst expectations the results come amid a row with the top investor which derailed

a planned merger with huntsman and bnp paribas down 3% on the back of its numbers. disappointing reaction weak performance at its corporate and institutional banking division dented third quarter earnings revenue from the fixed income unit declined sharply falling 23% year on year the bank did report a pick up in its equity trading business. let's get out to joumanna bercetche for more in paris. the stock down 3%. investors, do you think they're reacting to the disappointment around the fixed income trading division >> most certainly. that's where most of the weak weakness is coming from. most of the weakness from the corporate and institutional banking division, which for the first time is posting a decline led by the fixed income business that's hefty job minus 23% on the fixed side.

clearly this is an industry-wide issue. we are seeing a similar phenomenon for most european banks, to the tune of minus 23%, we saw that with barkinclays, deutsche i sat down with the cfo yesterday and chatted with him about how he sees the fixed income business evolving >> we launched a plan last year to reduce material cost through digitalization and the like. that's what we see that's why costs are strongly reducing that's positive. at the same time we still want a company and clients in growth. which is what we do we do it in corporate banking and security services and equities. only the fixed income has been challenged in this quarter maybe this challenge came from uncertainty. people waiting to do investments or whatever, depending on how things would clarify one could assume that now going

forward elements would clarify and therefore that fixed income would pick up further. that's what we'll have to see. >> would you say bnp are well positioned to pick up from activity on the fixed income side are you going to continue to be equities and prime -- >> for us we are well positioned in fixed income if you look at the leader table that came out, we're number one in europe that's fine. we are well positioned on that on top of that we're not a product of one bank or one product. we provide fixed income products, also corporate bank g banking, also security services. we aim to have a wide spectrum of products we can offer to customers. >> on the retail side, the revenues are roughly flattish versus a year ago. when do you envision rate also sta

rates will start to rise in europe >> you see a pick up in the economy, a pick up in volumes, that's positive. we'll see how that evolves we don't expect interest rates to pivot somewhere short-term. it will be end of 2018, maybe beginning of 2019. that's the horizon that's a horizon which at least the volumes are picking up that's positive. >> clearly with the ecb stepping away from the market, a resteepening of the yield curve would revisit that business? >> sure, a steepening of the yield curve will do thachlthat we'll have to see. fixed income was impacted by uncertainty. we'll have to see if decisions taken will improve the insides of the uncertainty, take away the uncertainty in the market. >> so we asked what his strategy was, would he go forward increasing revenues or continue the drive for cost cuts? he said it's a mixture of both on the revenue sides they can't

tell there's a lot of uncertainty in the market that's stopping clients from trading. that's the story we heard across the board. on the cost cutting side they will continue with their huge multibillion dollar plan to reduce costs by 2020 some of that may be on the human side as well essentially led by digitalization and going forward he said even though there's weakness in the fixed income side, that's buffered by their equities business, securities business and the other businesses that bnp are involved in, mainly the retail business which seems to be holding up >> joumanna bercetche, thank you very much for bringing us the latest on bnp paribas. coming up, will declining net income strike fear in the heart of investors we'll conjure up analysis of the banking results after the break.

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jpmorgan cut its pricing

target after third quarter net interest income fell 10% on the face of increased competition and low interest rates the state-owned lender nonperforming loan portfolio shrunk by 11% during the period as the bank benefited from the broad pick up in the spanish economy. paul levere joins us nice to have you back on the program. in terms of the movement you saw, 9.1% three months ago now 8.8% at the end of september what are you seeing on the cleanup, how much is down to your endefavors and how much is due to a better growth rate? >> the trend with regard to qualities is working in the right direction. we've been able to bring down mpa's by close to 1.6 billion euros in nine months this is more than 10.6% of the total mpa's in this year alone we've been bringing down mpls by

over 50% in the last three years. so things are improving fast probably mostly driven by the economic environment and the evolution of the macro and especially the good evolution and the good trends in terms of unemployment, which is coming down fast. >> i want to ask you about the future plans for the business. you are considering the least exposed catalonia, yet there is still implication from how the independence push goes it seems as though the government might try to reduce some stakes, 67% i believe it's holding on to, but this will come down to how events are pushing around the independence push what do you make of that and how this is tracked to the independence vote. >> we have very little exposure to catalonia, less than 3% on market share in deposits things have been much more quiet this week. things are coming back to normality. elections will be held the end

of december. i think things are coming back to normality fast. it's true we are in a blackout yesterday and now we are available to go to the market if our shareholder thinks it's the right momentum >> can i ask around the competition issue a number of banks have exposure to catalonia, sabadell and kaiser specifically it might be interesting for those banks to pivot and pick up interest somewhere if there are issues in catalonia. does that mean increased business for you >> i think not just in regard to catalonia we've be catalonia. we've been seeing good evolution of our loan origination, 2.3 times what we did in mortgages, gaining market share in mutual funds, in consumer products.

we've been gaining over 140,000 net customers in the last 12 months the situation is improving fast in spain, and specifically for bankia >> your last answer put the ball on the tee for me. huge increase in consumer finance. great increase in loan origination. more customers sounds solid i won't go overboard sounds solid why on earth have we got a central bank which is in crisis measure still given what you just told me >> i think the central bank is the central bank of europe, not only for spain so there are different situations across the board. i think in any case, the policy of the ecb has been the right one in the last few years. it has helped very much the economy in terms of being able to reduce everything in regard to quality or make it improved reduce mpls and mpa's for the banks. it's true we're in a turning point in the cycle, having

negative interest rates. it's a bit not the best movement >> i love the fact we have a senior spanish banker telling me the central bank of europe rather than for spain as well. my question on that basis, do you think they are inappropriate rates for spain now which is in recovery mode, the central bank is not reflecting the reality of what's going on in your country? >> i think they're reflecting the reality of what's going on across europe. spain has been growing further and faster than europe the last few years. we will grow over 3% this year it will be probably about 2.5% next year it will be above the european union >> thank you very much indeed for your team. nice to speak to you the cfo of bankia. quick word on banks, buy, sell or hold? >> hold for us cyclically we like them. baer benefitting from stronger

growth, better lending, higher interest rates longer term, low growth, the upside is capped so we don't see yields and interest rates going materially higher for this particular cycle in particular in europe too many bad debts >> arsenal going to finish second this year. >> probably not. >> there speaks an arsenal fan we have problems at the other end of the table we'll be back with more after a short break. zar: one of our investors was in his late 50s 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. the client realized, "i need to get back into the markets- i need to get back on track with my plan." the financial advisor was able to work with this client. he's now on track to retire when he's 65. having someone coach you through it is really the value of a financial advisor.

investors buying into bp traders buy on a higher set of numbers. an unhappy halloween for wpp. the advertising giant spooking the market with another guidance lower. >> i don't see how you can say there's structural issues there when if you look at five years ago google was probably our number five investment, facebook didn't figure in the top 30. so we've seen an escalation and

a growth in those relationships. ryanair navigating its way out of the pilot crisis saying it remains on course the airline's cfo tells cnbc the troubles are behind them >> i've been totally taken back by the amount of pilots and cabin crew vol tearing dunteerds off. we've addressed it and are working with our people. and flagging fixed income. offs and bnp paribas with revenues lower. >> maybe people are waiting to do investments or whatever depending on how things play out. ♪ stocks have been trading for a half hour so far here's a couple of big movers

today. you can see a bit of a mixed response to earnings crossing. earnings behind a lot of the action in europe let's get into bp as it moves down 3.2%. it's posted and underlying replacement cost profit of 1.8 billion in the third quarter that was a beat of some market expectations the oil majors announced it will restart its share buyback program. in terms of some others, wpp, the second worst performer on the ftse today it's down close to 1%. compounding the losses over the course of this year, you've seen some drops from the trading pattern. and we've now actually just reverses significantly from the start of the year. bnp expects flat like for like net growth amid a slow down in client spending. and bnp paribas third quarter

earnings crossing today as stocks slide to ryanair, the best performer on the stoxx 600, it's maintained its full-year target despite a drop in net profit staffing problems they say are behind them saying performance was solid amid the cost disruption steve? >> thank you two of president trump's former campaign aides face money laundering charges as the investigation into russian interference in the 2016 election heats up. paul manafort and another aide, rick gates, were arraigned at federal courthouse in washington both have pleaded not guilty robert mueller's office announced another trump aide, george papadopoulos pleaded guilty in july to lying to the fbi. paul manafort's attorney said there is no evidence of collusion with the russian government >> are there are no activities r

official capacity in which the trump campaign took place in these activities most took place before the campaign existed that wasn't paul manafort's spokesperson that was sarah huckabee sanders. >> we will get to why she was talking about some of those comments on twitter, president trump said the allegations pre-date man for the's work on the campaign trump added that the focus should be on hillary clinton at a white house news briefing, sarah huckabee sanders responded. here's the comment >> there are no activities or official capacity in which the trump campaign was engaged in any of these activities. most took place well before the campaign ever even existed >> should we play that again a third time sorry, giving the gallery a hard time julian, when we talk a lot about

political grid clolock, we need something on the tax front we had a great e-mail from william in ohio talking about political bias, liberal media bias i think it's fair to say there's a bias against the president, whether it's warranted or not, that's not for me to get involved i suggest the president needs a legislative win. that win has to come from tax. would you agree or disagree? >> i think most investors would agree. that's why last night there was a degree of nervousness because the tax package was again pushed out with suggestions it will be staged over a number of years, and therefore you wouldn't have something that will be delivered in the first quarter of next year that would see immediate reduction, down to 20% for corporate tax. >> if the president -- down to 20% would be interesting if he gets 15% or something, is that enough to keep the market at elevated levels

or is the market not at elevated levels because of something the president is or isn't doing? >> i think the market got extremely enthusiastic particularly around certain sectors on trump's election, that's unwound, and we've seen a good performance outs of the growth areas tech delivered on numbers. i don't think there's much in the price for a tax package at the moment there will ab degree be a degref disappointment the market built itself up to expect a tax package by the first quarter of next year >> let's move back to european matters. spain's chief prosecutor accused carles puigdemont of rebellion and sedition puigdemont has traveled to be belgium and hired a lawyer fueling speculation that he will seek asylum there. the attorney did not comment on

whether he's work on an asylum claim in belgium he crossed the pironese, got a plane to brussels, where do we go from here >> are all indications that he's in belgium one man who can talk to us about this is the international director of the governing body here the first question i want to ask is about puigdemont's whereabouts. do you have confirmation he's in belgium? >> we don't have confirmation he's in belgium, but apparently he's in belgium. he contacted one dutch lawyer, and apparently he's there. he flees while asking all the rest of the people to stay back in catalonia >> you represent the governing party here, the pp, would the pp and would the government in spain be upset if the belgium government was to grant him

asylum >> no. the whole process has been a post-truth process they consider the law an item. but the law is the law to consider asylum you have to fulfill criterias. there's a protocol linked to the treaty, and it will be strange for him to get asylum there. it's a modern democracy. the rest of the independencies are backing catalonia. >> the prosecution never take s place here, it takes place in court. does the government see the prosecution of kafrls pcarles puigdemont, his deputy and other leaders, will that be a swift process? >> that happens in barcelona -- >> but the prosecutor general asked for these charges.

the court is considering them. would the attorney general -- would the fwovme megovernment ls to be a quick process. >> we are a separation of powers, the judge -- >> the government, would they want it to be quick? >> the government doesn't have a say. they don't have a say. the attorney general is a part of how to convey or connecting the prosecution of the items the thing is that ideally we have elections coming on the 21st of december the elections are the way out for that crisis. all the players, now the political party of puigdemont, the political party is calling for the elections. that's the way out that's the only thing we want is a way out. >> the way out according to you is the elections, but the socialist party says one way out

would be constitutional reform they seem to have an agreement that there will be that reform how soon with ll those talks stt >> we decided to do that three months later after the elections. so in six montmonths -- >> we should expect something in march. >> to start the talks. what part of the constitution hasn't been working so far so good for the last 40 years so we are open for discussions, that's what we said. perhaps that will help for spain in order to manage future crisis, we are open to that. but the constitution has been serving us very well so far. >> indications going back to the catalan elections are people like jan caras would potentially return to a leadership role after elections would that be helpful for rajoy. >> let the people of catalonia

express themselves we are democrats >> you are democrats but also politicians. >> that's the thing. i'm ready to work with whoever the catalans decide that they are going to be the leader in the regional government. whoever they are that's the good thing about politics you have to be able to cope with reality. >> the reality is that the pro-independence parties could have the majority again? >> but with the socialist party in catalonia, they will have the lead according to the latest polls. so i think independence will go down -- if they are going down in the polls, and also in voting they promised something that has only led to frustration in the population >> one final question, you mentioned the citizen party. they have seen a massive surge in support is the pp worried about them on a national level >> no, the only worry that is worrying us is how citizens live and how employment is going on in catalonia this crisis has really affected job creation and employment and the economy in catalonia

that's our first priority. then once we get that, don't mind which coalition we'll be with >> okay. thank you for your time today. as you see, no certainty over the whereabouts of carles puigdemont, the catalan president nor the legal process surrounding him in the future. >> willem, i want to ask about ramifications of this you said previously it was a message from puigdemont that he was happy to serve some time in jail, now that does not seem to be the case if you pick up on the media reports that he fled the country. does that change the dialogue? previously catalan leaders have lived in exile before. are we at a crisis point for the catalans that they have lost some of their leadership potenti potential? >> well, a lot of catalan politicians over the course of yesterday expressed surprise, including the vice president that mr. puigdemont was in

brussels, though again i would stress there's no confirmation he's there seeking asylum. if he returns to catalonia, it would seem that his our rashgs h aura has been reduced by this move he's there supposed think with five other catalan separatists there's a lot of questions about this election and whether he would be a candidate we heard from the foreign minister that he would be able to stand as long as he wasn't in jail >> willem, thank you very much for the context. it's quite significant after we are reading the reports from the weekend that with the snap election you might see the same makeup of government if this is a change to the narrative, that's interesting. >> does this show you how tense things are in europe despite the fact that everything is awesome that we keep hearing at an institutional level. you have crisis level interest rates from the central bank which we had a senior spanish banker telling us not for spain.

not really for us. yet market can get rattled about two countries or one country, both who want to be in the eu, both economically powerful, one is doing better, the other is a net contributor to the spanish state does it show you how tenuous things could get quickly and we're not as far away from the financial crisis as many think? >> we should always not forget that europe is to a degree a number of fragmented nations brought together through this experiment over the last 40 years. it's been successful, but for it to really be successful you need a federal government you need one taxation policy one banking policy we're a long way away from that. until we can achieve that to the point, you made about one interest rate policy as well >> we are a halfway house, many people believe that, both federalists and many who don't

want to be a part tof it. fitch sees a continued period of heightened tension >> coming up -- >> more halloween. do you think anybody has been seeing the pumpkin behind you? >> spent hours on it last night. >> very, very good. >> that's the fifth pumpkin he tried. as long as he's not billing us >> that's the fifth one. >> beautiful just cut out kautry anout trian eyes and ears for my kids. coming up, we'll have the latest coming your way

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twitter, google and facebook are due to testify before congress today on today on how russia used plat tomorrow formse

in the u.s. election the posts could have reached 126 million americans. mark zuckerberg will travel to washington where hewhere >> tim cook and mark zuckerberg listened as president xi drove home the message that his country would promote globalization and was optimistic with relations with the united states speaking at an annual event, president xi reiterated remarks executives would like to hear, that china would strive to have a fair and more transparent environment for overseas investment the state press reported that the executives praised china for economic achievements and said they were willing to contribute to the country's development currently facebook is blocked in

china. apple has seen sales decline here in the face of greater local competition. in addition to cook and zuckerberg, the event attracted hank paulson and blackstone's steve schwarzman eunice yoon, cnbc business news. s&p global ratings opened a business in saudi arabia as they hope to push on capital markets. the agency said there is significant opportunity as saudi arabia's leaders overhaul the oil economy. the cfo from s&p global joins us good to see you. let's talk about the development of the business and where we go next as well everyone wants a bit of saudi arabia at the moment every investment bank, every media organization, every ratings agency, everyone really wants to get a bit of it but they feel there's a lot going on and development of the market still to come.

why is it right for you guys >> we would like to expand our business in many different parts of the world historically s&p global is still u.s. centric so we are expanding in asia, china, india saudi arabia is an interesting opportunity because only 15% of the companies have a rating. so there's a big opportunity >> there's a lot of pit falls for investors as well, hence a lot of pit fafalls for s&p globl certain listings might be in jeopardy because of clarity because of ownership, clarity about international rules. you know where we're going on this on aramco, everyone has a view, they're not always on the same page how do you guys and the position you're holding negotiate that kind of contention >> first, i would like to say that s&p global ratings has a

very clear separation between the analytical and the commercial part. over the last ten years, the company transformed itself we have global criteria global models and conditions we have to apply. our credit analysts are completely separate from the commercial part. i'm not here to discuss credit valuations, but we have regulators around the world who will -- >> does aramco present a problem for you as cio with the huge weighting they will have in any index they get into, whether it's in the united states or london or just on the local market, does it present problems for you at this stage any more than any other extracted company has done >> in all honesty we are an active manager, so we're not tied closely to indices. we pay attention to indices, certain clients we pay more

attention. yes, if a company like aramco comes to london, we'll look at it closely to your ridge fall point what's in toriginal question, what's in the package is see and whether its transparent, so we can understand what's under the bonnet >> there's a big debate between passive and active investors >> that's an interesting other part of our business, the s&p dow jones indices business the movement from active to passive management is large. if you look at etfs that use our indices, the assets under management went up year over year by 300 billion. we report now 1.2 trillion in assets that use our indices. that trend will continue we're optimistic about the outlook of that business >> is there a limit on passive

we heard a defense from kuroda in japan talking about the low level of assets that effect the ets. this is a constant defense from the industry is there a limit because it could be systematically important and cause a market event? >> overall the passive part of the total investment universe is still rather limited we believe there's sufficient liquidity in the market and reality is if there's a lot of assets moving to passive management that creates opportunity on the active side so we believe that there's more room in the future >> can i ask about the back drop in the united states fresh headlines out overnight about indictment about campaign executive force trums for trumpl council pushing forward and no change on the tax reform what is the environment like in the united states? almost a level of reluctance to move forward with business decisions because there's so much uncertainty stemming from the white house. >> i prefer not to comment on

u.s. politics. but with respect to tax reform, what is our view is that it's a very high need that the u.s. tax code is going to be changed. this is -- this was designed 30 years ago. the economy was very different it was industrialized. if we look at s&p global, we are an example of why it needs to change we pay an effective tax rate of close to 30% and that's not competitive from a global perspective we have 2.1 billion of cash outside of the united states that we cannot repatriate, it is permanently reinvested overseas. the change of the tax code will be a big drive >> we have to thank you and say good-b good-bye thank you very much. >> pleasure. >> the cfo of s&p global >> one thing in the wpp numbers, we didn't talk about it, the numbers out of the uk look type. what is brexit meaning for you and your investment allocation

at this moment >> i think that brexit has created more uncertainty around uk equity and bond markets, and for some time now we have been nervous about the outlook for uk economy and the consumer, and so consequently i think brexit just adds another tenet of worry and we talked about perhaps some fix coming in december the mandarins are working hard let's hope they do, otherwise it's going to be a difficult 2018 for the uk economy. >> that's what we need a bit of spice. excellent. thank you. nice to see you. thank you very much. tomorrow's guest host, andrew senson for karen and myself v a lovely day. ring a bell? then you have to try always discreet. i didn't think protection this thin could work. but the super absorbent core turns liquid to gel.

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taxes, earnings and the fed. the three mayin drivers on wall street today >> big tech in the hot seat. google, facebook and twitter heading to capitol hill today to talk about russia's role in the election. and apple reportedly considering dropping one of its biggest chip suppliers full details coming up it's tuesday, october 31, 2017 happy halloween. "worldwide exchange" begins now. ♪