stocks in europe beginning a brand-new trading month, the month of november after wrapping up gains for october we saw it in lockstep agross glob across global markets. early signals have been positive the dax was out of action yesterday. that market looking to play catch up

just in the initial stages, we do have a decent bounce, about a third of a percent on the broader stoxx 600. let's look at the sectors we've got so far an early print of green across a lot of markets. that's translating to sectors. one sector is trading weaker, that's retail it should not be a surprise after updates from next just looking for a signal on that stock so far on the flat line. a little slow to open up it will move into the session shortly. the overall sector down by 0.1%. construction trading higher. some firmer signals on the market travel and leisure hotting up. the attack in new york might be a natural area to look at travel and leisure today. the reaction tof anothof another

terrorist event in a major city. the hotels and tour operators in the airline space looking for more profitable destinations where travelers want to go to. that's been an issue autos trading up by 0.6% every stock in the basket so far north. oil and gas trading higher we had a couple reporters including london petroleum in the mick one of the better performers so far. basic resources tracking higher, 1.4% north let's look at the initial stages for the start of the session and it is above 7,500 points for the ftse at the start of the day. for november, reclaiming that handle 0.4 higher decent on the french market. the other ones we're looking at for you, the italian market, probably the best performer, just over half of a percent higher

getting very close to the 23,000 handle the ibex strong as it starts out the month. pretty much across the charts we are ticking higher let's move on to next. it is still not trading yet. we are still sitting it's at 4.921 the latest is that it has narrowed its four-year profit and sales guidance citing extremely volatile trading in the third quarter and high dependence on the weather. for instance, this is the specific line. week by week sales volatility is very hard to determine underlying trend so, it's telling you that the business is just seeing demand peak and trough in a short time frame. the new target range implies revenue will contract in the fourth quarter and next warned that the

christmas season will be challenging. they posted a 1.3 rise in sales in q3, that is an improvement on the second quarter but below analyst expectations the commentary has been very, very bearish the numbers themselves have also been changed to a tighter range. but it's taken away some upside potential and some down side if you look at the full price sales growth target, that's between minus 1.75% to plus 1.25%. a significant range. that was narrowed from the minus 2% and plus 1.5% you can see the bottom end of the range not as bad as 2% also it is not as positive as 1.5% the market trying to get a handle on the numbers crossing the commentary hard to step away signals have been for a drop of 4% to 10%. i think a lot of analysts are raking over the numbers. let's look at wolters kluver

they backed 2017 guidance after posting a sharp increase in operating profit during the first nine months of the year. earlier we spoke to the ceo about the company's digital growth a couple of metrics indicative of the strength of our business is that digital revenues are up 5% organically that represents 88% of our totem revenues recurring revenues are up 4% organically. those are the things we focus attention around we're launching new products, driving greater penetration within our customer base we're encouraged with the progression of the business. as i say, it's in line with the expectations for the year. waiting for some form of tax

reform as the business provides a tax component. so they're looking for a change to the system that could trigger more orders to sales london petroleum is strong in initial stages up 2.8% it was one of the better performers during the last session. up 10% in the last three months. it has beaten on the top and bottom line, posting ebita of 3$382 million the oil and gas company raised output guidance saying it's on track to meet or exceed the higher end of its previous forecast and to shell, which has been updating the market. up about a third of percent. it has completed the sale of its onshore oil and gas interest to acela energy holdings for 6$628 million. private equity in the mix. separately harbor energy acquired shell uk's north sea

assets steve? >> do you have a print on next >> no unchanged. >> the whole sector, a.b. foods down 2%. marks the spot down 4% next owns next, down 7.2%. there was one line in it for me. we talked about next week by week sales volatility makes it hard to determine any underlying sales trend so for all the experts out there, all you analysts, all you economists, all you heads of global equities -- one coming up in a moment -- if your underlining company says we doen't own next -- >> yet they trimmed their forecast they have take some of the down side away and upside away. it's confusing >> every month towards the end of the year you have more months in which you have the data for it so the volatility on the months when you have not seen activity,

that could have a lesser effect on the overall that's what i'm thinking in my head still, nick is with us, head of global equities. you don't talk about individuals now, if you do, you don't talk about next i think for retailers everywhere around the globe, for cyclical stocks, stocks looking at the consumer whether you're a staple or discretionary, when i see a ceo, doesn't have an axe to grind, saying i can't determine any underlying sales trend with the two key periods of the year coming up, even my house we are talking about christmas presents, that's damming >> very difficult. but there's a lot of disruption going on for retail. as we know we had amazon results last week well received. they have been announcing something news pretty much every week i think for next, the issue is -- i think it's different there are two things that

happened first, they made a statement at the beginning of the period which was quite optimistic that was based on september sales that looked good >> because the weather was better >> the weather was better. it's been less good in october this is difficult. when you go out and when people think there's a structural challenge there, but you come out as a management team and say things, people expect upgrades you will see that move today in context. if you step back and think about the economy, here in the uk there is a particular problem which is that real incomes are falling quite sharply at the moment because we're dealing with inflation from a weaker pound. because of the disruption, wages are not growing particularly fast they are getting a bit better, but not fast enough. so households are suffering. at the same time it's difficult for corporates to pass on -- >> let's give them a rate hike then, andrew tighten the terms of finance more household lending, secured and

unsecured has gone through the roof in october. >> the argument for a rate hike is not to do with the short-term outlook for consumer spending. they are taking away stimulus that that's been there for a long time i think paradoxically a rate rise could take some pressure offer consumers. it's the weakness of the pound that's squeezing consumers we've seen the pound firming up this morning it's firmed up generally since the bank of england started talking about raising interest rates. that's an indication that a higher interest rate can create swings in the economy. and consumers think the pound is uplifted >> you have to wonder where that leaves retailers like next they had a misstep where they

tried to chase fashion, they were then forced into discounting. one turnaround strategy was to get more quality basics into the store that people were prepared to buy at full price rather than discount perhaps they spoke about such a strong game that the analyst expectations were too high expectations were for a rise of 4% versus 1.3% that they delivered it was an improvement but my question is where does that leave self-help issues whether you have brexit, spending power, inflation, does that matter if a retailer has their own individual strategy? >> it can make a difference. but the fact remains the environment is extremely difficult for these guys, particularly in the short-term i think also, i only look to the next results briefly before i came on, one thing that was notable is that the directory did do well. it was up 13%. slightly better than consensus that legacy online business they have is performing okay, which

is helpful that's something that a lot of retailers don't have that kind of opportunity, they would like to have it a lot of people are scrambling to do that thing elsewhere >> i wish they just changed the name, though those old catalog books that you get -- >> karen will go to the wall and look at a big mover in italy do you have anything on the consumer side? >> mainly in the u.s., not here. to be honest with you, it's been difficult this year. it's all been about amazon and disruption i believe there are retail business models which will work quite well in the long-term where you have best in class retailers that have good online businesses at the moment they face some challenges in their bricks businesses but valuations have come down dramatically case in point, we had some bad news yesterday from under armour that whole sector is under pressure again

foot locker, which is a good retailer of sneakers, affected a bit by nike, they're selling sneakers online and amazon, it's on three times ebita it's got a billion dollars of cash on the balance sheet. it's an extraordinarily cheap stock. you wonder for a company that is pretty good at cure rating thats online, there's some volume. and amazon bought whole foods. they're saying in some categories we have to curate these things >> okay. so, let's go to karen and talk about bank of carige >> most stocks going higher in a better global environment for

stocks this has not been doing well banca carige has a third quarter lo loss the bank is seen as the last italian lender still struggling after the government saved banco monte dei paschi let's push on and take a look at iag. the stock moves higher by 0.9% three-month performance decent the standoff between british airways and its cabin crew has come to an end having gone on strike several times throughout 2017, the cabin crew voted to accept an improved pay deal the deal should see the cree get a pay rise of 1404 and 2908

pounds >> that's very specific. >> 1404 pounds and 2908 exactly. >> isn't that double the sum >> u.s. legislation could make business more challenging for novo nordisk jesper brandgaard lloiuswi jn in a few minutes to discuss. your joints... or your digestion... so why wouldn't you take something for the most important part of you... your brain. with an ingredient originally found in jellyfish, prevagen is now the number one selling brain health supplement in drug stores nationwide. prevagen. the name to remember.

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. novo nordisk has beaten expectations announcing a third quarter operating profit of 1 4 12.40 danish crowns. they also raised their forecast from 3% to 6% profit growth in local currencies jesper brandgaard joins us let's ask you about legislation sta stateside. there's a couple different layers around obamacare being dismantled, concerned around state, transparency of drug

prices trump's comments about political donations. what's the biggest concern about the u.s. regulatory environment? >> i think when we look into 2018, we are giving preliminary guidance for how we see growth next year, i think it's currently on the stateside and increased transparency, we see from states like nevada and vermont, which first increases the obligation to disclose prices, but also a challenge for us in terms of having different regulation in multiple states, and significantly increasing the administrative burden. what is most at risk then if there is open pricing for drugs, where could there be blowback >> i think we'll see a gradual increase in transparency in the u.s. that links with the need to

create excess for people who have high deductible plans that will be equal and increase the pressure on prices and that we've seen that in the long-acting insulin franchise. >> one other factor in the states is a series of mergers. lots of consolidation happening as players try to work out how to bulk up managed costs if we're seeing step back away from obamacare and a new type of regime one big tie up has been cvs buying aetna what impact would that have on pricing if you have bigger players in the room? do you think you might lose control over pricing environment? >> well, i think the large pbmz. and healthcare providers are trying to use that and gain further momentum on price negotiations and i think that move would also have that implication to higher consolidation. and we have seen historically

when you have two healthcare plans merging, the prices they choose to operate from going forward will be the lowest of the two, the lowest of the two plans they have negotiated individually >> fabulous intervention from your ceo in houston in the las week or so i think it's extraordinary comment about the huge growth in those of us in the west and globally who will suffer from diabetes enormous numbers of people i think it's a huge number i think rather than applauding it, lars is saying this will overwhelm everyone because nobody can afford the diabetes drugs. do you want to expand on that? >> our view is that we have to make it transparent is that this is an avalanche of obesity and diabetes which is affecting world economies. we have to do something about it we're certain we'll have good

medication to sell to plenty of patients, but society has to take this threat more seriously. it's a slow-moving epidemic and not one that has a rapid impact on society like, for example, cancer but it is a thing that is undermining the global economies and hence we need to take action we've created partnerships with significant cities around the world including houston. we believe partnership with cities in changing the way we live, changing the way we manage health that is kind of the long-term solution to that there's significant opportunities for society in pursuing that. medication is just the last solution in that perspective >> do you feel that health services, and one of our guests around the desk mentioned the national health services, will be overwhelmed and not afford the next generation of novo nordisk and other insulin drugs

out there. >> i don't think that's the major concern. if we look at what we launched in recent years, the prime reference has been the existing products on the market i think we have the obligation to continue to offer better solution at current prices and then hopefully we're able to get broader reimbursement for that that's what we're working with bayer to find solutions to also proving that our medication works so there's more outcome based pricing. where we deliver value to society and then get a reasonable return on investment and innovation >> what a stupendously important debate thank you very much for your contribution once again. jesper brandgaard, the cfo of novo nordisk as i get older in life i think about it anything in the pharma space that you think is right on trend? obviously from diabetes to oncology, somemazing advances

being made >> i think if you step back from individual companies and individual drugs, we are in a positive r&d cycle now if you look at the pharma industry, typically it goes long cycle. in the '80s and '90s it was strong a lot of blockbuster drugs were created. then you had to get through that particularly in areas like oncology, companies are able to intervene with genetic markers so they can treat people more effectively. you can see r&d productivity is improving. more novelty with products are coming so i think the outlook in the medium term is good. the other side to that is that, of course, this means pricing in aggregate has gone up quite a lot. that becomes a political hot potato a balance has to be walked, i think, between these things. generally speaking, the healthcare sector is a healthy one in the pharmaceutical area we could use your comments on

current pricing in a different context and markets that traded strongly one of your other calls is japan. the stock market there, the rally 10% over the course of the past month is there anything left >> i think there's a lot to go for in japan i think first of all, yes, it's been strong in the last month. but actually before that it was one of the markets that was lagging this year. and foreigners have been net sellers for most of the year in the last month they turned net buyers people are noticing the attractions of the market. it's typically an economy which is exposed to the global economic cycle one thing going on at the moment is that life post the financial crisis ten years on has begun to look normal. we're late paths of the cycle. nominal gdp is picking up, the big problem is no inflation in the u.s. that's another discussion. but this is a good environment for japan. >> quick word on japan. >> i think the japanese economy

tends to get underrated because its population is declining, working population is contracting. even 1%, 1.5% growth in japan can good for gdp it's actually located in the right part of the world economy, in asia, the most dynamic part of the world economy they have a lot of trade with other asian economies. >> thank you and good-bye to nick appreciate it. coming up, standard charter announcing third quarter results in a few moments time. 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.

next drags european retail stocks lower as it posts sales below expectations, narrows guidance and warns of volatile trading positions. shares in the italian banks go higher as standard and poors rais raises rates in section. the deadliest terror attack in new york since 9/11 leaves eight dead and several injured after a driver drives into cyclists and pedestrians in

manhattan. ♪ so, huge amount of contention about the performance of banks, international banks, what they need to do to go to the next level, how a lot of ficc trading has been tough. advisory has been good i'm looking at the standard chartered share price, 609 pence is the low, 860 pence is the high 745. just slightly over the halfway mark we have numbers out from standard chartered let's see. a whole loehost of flashes. income was up 4% year-on-year. income year-to-date up 5%.

expenses of 2$2.5 billion u.s t 4% higher. they are saying as a result of accelerated investments. loan impairment of 348 million u.s. dollars 42% lower year-on-year reflecting improved credit quality. shares are down 1% at the moment let's find what the market is underwhelmed about underlying profit before tax, 4$418 million 78% higher year-on-year. global economy recovering slowly, but here is the problem. competition is strong, asset margins remain under pressure. they're talking -- eulogizing about high liquidity, remain well capitalized they're saying. customer accounts, 4$418 billion increase of 5% on the third

quarter. numbers are moving in the right direction, chen you gwhen you ga 42% improvement, and here is the problem. margins remaining under pressure competition remaining strong so, there's something in there i would suggest for everyone we will discuss this at length we will speak to the cfo, andy halford at 12:20 cet >> there's a lot of expectations baked into the share price you have to have a good earnings report to justify it >> do you think that the banks are -- who is that chap who who used to be the prime minister. gordon brown he may have said the other day, he said the banks are still in precarious position. >> they are a lot stronger than

they were. there's been a lot of emphases by regulators in making sure banks have the appropriate level of capital so, i think we're in a much better position in terms of banks. the other thing that's helping the banking sector, probably helps standard chartered, the world economy is doing well this year looks set to do well next year so, i think there's reason for cautious optimism about banks. >> will you be buying the new autobiography? it's called my life our times. >> i will flick through the index to see if i'm intrigued. >> if not, you're out. >> one of the highlights, 2009, g20, the big g20, obama, his first big international trip 2,000 journalists in the room. >> i thought you were going to say you were sitting there reading a book >> unless he remembers my amazing question i forgot what it was

sorry. >> i want to take you to some market action. we've been trading about 30 minutes so far for the first trading day of november, not bad for the dax. claimed about 1% in the initial stages also clearing another hurdle, 13,300 this time after getting through 13,000 points, then 13,100, 13,200, 13,p13 13,300 it is today stoxx 600 is up by half of a percent. so not a bad start for november. let's switch over to the charts and look at sectors. most trading higher. one exception at the start, that was the retail space now two chips are trading negative the telecom sector slightly weaker strong autos, those are bouncing nicely technology still moving higher that was the best performing

sector stateside as well in terms of stocks, a lot of updates. some interesting ones. i'll come to next in a moment. you may have heard about the opioid crisis in the states, we have a drug from indivior to treat this problem that's higher. the retail update from next, the inability to see week to week means that next chairs are moving south and taking with it marks&spencer. i think the update is having an impact on our wall >> i have a feeling the wall is not working. well done. pruesident trump is expecte to announce his pick for federal chair on thursday.

jerome powell is the likely pick, but reports from the white house come with a warning that trump could change his mind. the sources are saying, this is what it is, but key change his mind current chair janet yellen and economist john taylor have also been in the running. you know, they might go for kashkari one of the early favorites not that he was interviewed for it >> all of the major u.s. equity indices had their best month since february in the month of october with the dow and s&p posting their seventh straight month of gains so much for political uncertainty. joining us now, our next guest says the markets are at the whim of central banks and are set for a deep correction. david new house newhousen joinss why should we be concerned there's a correction coming when the markets have been chasing higher and higher month after month? >> people have been calling on a market correction for a long

time due to valuation. on one hand i look at the situation and see we're having strong global growth that's starting to manifest itself throughout the world economy. those are all good signs we've had substantial uplift over the last seven or eight years. and the one thing that we're concerned about is that you have -- on one hand you have an economy that's continued to grind along. doing well seeing strong earnings, banks are overcapitalized. all the positives that would set you up for a nice rally and reasons to invest in equities. at the same time the rally has essentially run its course for a long time. there's complacency in the market >> time doesn't kill a bull market that's what we keep hearing. even though some technical commentators say this market looks right for a global correction, many are saying this looks like the best opportunity if you compare asset classes

what will be the trigger >> i'm not here saying we'll run into a bear market and wipe away gains and you should be out of the market i'm saying the level of come pay sant complacency is rising and there's less opportunities in the markets. when that happens something could occur and i see a deep and prolonged correction in the market >> andrew, i can't see you're agreeing given you want rate hikes across different economies. i can't see you expecting a correction >> three things economists are not good at predicting, oil price, exchange rate and the stock market >> so oil price, exchange rate and the economy. >> so i'm not sure i will make predictions about the stock market per se. global equities with a reasonably strong world economy and the potential of dividend growth and the potential of further growth next year, they

still look attractive to me. >> why is mr. mnuchin right or wrong to tie the level of the stock market with getting trump's agenda through seems to me they're playing a dangerous game by touting the gains we've seen since his election and saying that's pretty much implying it's a direct correlation of what his administration is or is not doing. do you think mr. mnuchin is playing a dangerous game >> i don't want to say he's playing a dangerous game i think the market is anticipating change from the current administration they're starting to see some things manifest through. the question is do they become law and when the market will build that in. the longer it takes they'll start to pull it out as well those are some of the political uncertainties that i would say are not in the market today and could lead to a correction overall, again, the markets are highly valued. that doesn't mean you sell and

go to cash that doesn't mean we're about to hit a cliff all i'm suggesting is that from livermore's point of view, we're finding less and less opportunities to stick to investments that we thought had value in the past years. when you start scratching your head, just hopes and dreams of seeing higher valuation is not how we invest capital. what about around brexit you were raking over some names in the uk around what is an uncertain event for investors what have your calls been? >> so, brexit to us, at least the announcement of brexit was one of those opportunities higher volatility trade. great panic in a slort period of time as you know, we are investors in a lot of companies at that time. ber bu burberry, entertainment one, glencore all those stocks have rallied

and we shaved down those positions, waend think thand we have room to run higher. there has to be a point in which you see consolidation of equities some valuations built into the profile. that's not occurring >> does that give indication of why there's so much activism in europe and in the united states you saw activist investors trying to come up with pushing divestiture. but is there nothing left to play for so some of the lore margwer marn stories you have activists looking for change >> well, yes, you've had passive investment gains so much where the markets and indexes are at highs, yet there's a number of companies still underperforming. you know, with that you want to deg into those situations and

find out why look to alter strategy where optimal. that's our focus and other investors are focusing on that they're trying to see the disconnect as to why some stocks are trading at high multiples, others at low multiples, and why is that? >> david, thank you very much for joining us david neuhauser from livermore partners let's get back to one of the top stories of the day eight people killed and a dozen injured after a man drove a truck through people in new york city the 29-year-old was arrested after being shot by police this marks the deadliest terror attack in new york since 9/11. let's get details from chris pollone in new york. what can you tell us >> good morning. investors have spent the night following several leads, trying to figure out how this

29-year-old suspect carried out this terror attack whether he worked with accomplices and why he did this. this happened about 3:00 yesterday afternoon when that rental truck he was driving went on to a popular bike and jong g i jogging path he left behind mangled bicycles and bodies along the path. we learned a bit today about the victims. five of the eight victims, according to the government of argentina are argentinean. one of the victims is from belgium. police tried to question this 29-year-old suspect last night in his hospital room we are told he did not answer questions. police told us he left a note in the truck indicating that he was carrying out this attack for isis they're starting to retrace his steps. they know he lived just across the river in patterson, new

jersey that he was a truck driver, also drove for the ridesharing service uber and they're trying to figure out what launched this attack, whether he is or was in contact with isis or whether this was just isis-inspired they know he rented the truck about an hour before he came over to manhattan and carried out the attack so, lots of aspects on this today. we'll certainly learn more as the day goes on. steve and karen, back to you >> appreciate you taking the time of course it's incredibly late in new york. thank you very much for that update coming up, ai is bringing computing to life. that's according to microsoft. the corporat devices has been speaking to arjun. we'll bring that you in a few momenttis me

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is there a more con tens

have y word than apple? maybe amazon >> big company if you had to talk about one company, would it be apple or amazon >> apple >> facebook? >> all of the big tech >> apple is what we're talking about now. they will report quarterly earnings after the bell on thursday the company is expected to beat earnings expectations following the release of the iphone 8 and iphone x shares have rallied after favorable reviews of the iphone x. eunice reports from an iphone company unveiling event. >> #iphonecompany hx has been v million times so far in terms of preorders, jd.com had 2.5 million.

chinese appliance sellers have tallied 3 million. the most popular color ordered is space gray. on the black market, the markup so far is almost double the official price apple has run into challenges in china including fierce local competition. but for now the iphone x is a big talker here. chinese fans say their favorite features are the emojis people are wondering if the face recognition will recognize them if they wear heavy makeup or in china, a mask for pollution. bitcoin is more likely to encourage more investors to

enter cryptocurrency trading >> we're well aware of what people have talked about on the dark web and what it's being used for you can't ignore the fact that this is becoming more and more of a story that won't go away. microsoft is set to release the latest x-box the x-box 1x on november 7th microsoft warned that demand could out rank supply. >> why is not 1x to the ten? >> 1x is nine. >> technically >> xx. >> they call it x because it sounds cool and hip. >> the iphone has gone x >> confusing i think apple lost that battle they really have it's gone. the amount of people who have

said iphone x -- >> now they write ten for me >> all the articles i read say ten. what do you want to talk about >> x-box >> the ten box >> ten by ten. >> it's an important device for microsoft. th shares have struggled. they are behind playstation. this is their attempt to say we have a device that's super high end, ready for the next generation of gaming one thing they talk about is this can support virtual reality. there are no headsets yet. i had a chance to catch up with the corporate vice president of devices at microsoft and talked to him about the future road map for the device >> demand is super high. we're very, very excited about x-box 1x now very excited in a couple of days, this is fun. fun for me >> as you look forward to the holiday season coming up, this is a key sales period.

>> critical. >> are you seeing perhaps more demand than you've seen for any other console? >> the demand for x-box 1x is where we anticipated when you see that excitement for the product, when people understand the product this is something that resonates with gamers >> virtual reality was a massive talk around the x-box 1x when it was announced no headsets or games. when is this coming? >> think about virtual reality and windows coming together. this is important. we released virtual reality for windows, this is mixed reality coming to life on windows. that's an important element. now we're seeing mixed reality with virtual reality on windows. it's been exciting for us. >> and with mixed reality, is that how you see that translate and go over to the game world with the x-box rather than just necessarily virtual reality? >> absolutely you see that

happen this is mixed reality mixed reality can span so many different forms, whether it's off the back of the device, in the virtual reality headsets, you are seeing that span through windows. >> so the key point here is around mixed reality this is the blend -- i know, really nonsense word, but what microsoft means -- >> that today's buzzword mixed reality? >> yes >> it means that the mix between virtual reality and augmented reality and objects you can interact with. microsoft is saying this is the future they want to become the leader in this. they want to have the big app store that will drive this section of tech forward. there's a lot of headsets on the market that mixes reality. microsoft wants to become the platform as oculus is trying to become for virtual reality what about the look of the device we were talking about apple before and the iphone x. it is a good looking device. just the opposite about this new

device from x-box. it's not particularly good looking. >> with the consoles, they overlook the design sometimes because they're trying to pack so much into it. this has a ridiculous amount of specks that probably most gamers don't need but they want because it is the latest generation of device. that's why perhaps there has been criticism on the design >> thank you very much for that. lovely to see you. uk house prizes rose 2.5% year-on-year nationwide the consensus forecast had been for a slightly lower pick up. a bank of england rate rise would only have, as andrew has been saying a modest impact on the uk property market so we spent a lot of time talking about rate rises, mr. carney, about brexit i worry less about brexit and more about uk household debt, and uk consumer debt as a proportion of household compared to the gdp, compared to where it has been historically.

am i wrong to worry. >> the ratio of household debt to income is coming down and now picking up again there was speech around this topic, and this was one of the reasons why the view was changed on interest rates. he saw the household sector was deleveraging up until about a year or so ago now leverage is picking up again. it's a supporting argument referred to by the mpc when we see their decision which is widely expected to be an increase in interest rates tomorrow we shouldn't get too excited about the ability of a quarter point change in interest rates to suddenly change the consumer borrowing climate. if the mpc are worried about this, they may have to go further than just a quarter point tomorrow >> the chancellor has an important budget coming up does he have any fiscal leeway at all, which is going to be as important as any monetary policy

changes? >> i think he does, the budget deficit figures that we had so far this year, they've been relatively positive. the deficit coming down into one i would say the safety zone of below 3% of gdp. that means he doesn't have to keep grinding it down in the short-term he has a bit of scope to provide relief to the economy. >> very nice to see you. it's been a good couple of hours. tomorrow our guest host is louis costo. coming up next for european ews, "street signs," for u.s. viewers, "worldwide exchange." these birds once affected by oil

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new details on the deadly terror attack in new york city that killed at least eight people we're live on the scene with the latest. house republicans delaying the rollout of their new tax bill we'll have the details ahead. and on wall street it's all about the fed as policymakers wrap up a two-day policy meeting. it's wednesday, november 1, 2017, "worldwide exchange" begins right now good morning welcome to "worldwide exchange" on cnbc. i'm sara eisen >> i'm wilfred frost