welcome to "street signs." >> north korea must do the right thing. u.s. president donald trump called on world powers to take action against pyongyang, speaking alongside south korea's leader, trump was optimistic about sealing a good trade deal. >> i feel confident that we'll be able to reach a free, fair and reciprocal trade deal as we renegotiate our current 5-year-old trade document.

>> chipping away, dialogue shares sink to the bottom of the 600 as the semi conductor company delivers a cautious fourth quarter forecast. choppy waters for mass group. the danish shipping giant, the cyber attack proves worse than anticipated. another stumble on the cat walk the german online retailer lowers its profit guidance citing weaker trading in october and profit margins so the ecb president mario draghi is due to speak at the forum on banking supervision in frankfurt. he hasn't quite started this speech yet but joining us today is nick guardside from jpmorgan asset

management nick, thanks very much for joinings just before draghi gets to it. i want to ask you, as a fixed income investor here, how focused are you really on the banking sector in europe right now. clearly a couple of years ago, we were very focused on the sovereign finance linkage. does that still play into your framework or do you think that draghi has succeeded in severing the linkage between the two? >> no, draghi has done a great job. when you think of eurozone banks, they're in great shape now. if you think of the broader euro back drop, the eurozone is the international economic success story in terms of growth when you look at banks themselves, they've done a very good job of deleveraging and raising a lot more capital so eurozone banks are in great shape and from that, they can the really start lending again >> and does that make you positive on the -- as a fixed income instrument? are you not concerned potentially about the npls

there's a lot of nonperforming loans left, particularly in the banking sector as some of the geopolitical concerns and potential italian elections coming up, but what is your view of this as the fixed income instrument here? >> they're all factors, we will we will argue completely outweighed by the economics. and you talked about italy, but when you think of italy, s&p 500 upgraded them for the first time in 22 years. a week or two ago. so that's what investors focus on when you then look at those peripheral bonds, there is no reason that that spread between italy and germany can't settle in the low 100s. >> and, of course, draghi is helping no doubt by extending that the -- the asset purchases for another nine months or so. so when you think the about that, clearly it was a well telegraphed event. since then, volatility has come down a lot do you think that we're back in the game of carry and right the rolldown >> sure. it's very much in the game of carry. the other strategy was draghi was probably to talk the euro

down think of that euro dollar move since the highs, euro/dollar has fallen 5%. >> what do you think that means for the sector from trading from here how are you positioning this jutely overweight the political government when you look at corporate bonds, the pain trade is yields go down there and they're very much supported, as well, by the ecb. >> we will continue that just in a second draghis hasser started his speech now let's hear what he has to say about the banking supervision sector >> across the whole of the euro yeah now, three years on, we can begin to take stock of what has been accomplished. what is clear is that european supervision has been instrumental the in building a stronger and more resilient banking sector

the country in which a bank is located has become a less important factor in how its credit risk is perceived these two achievements have been crucial compliment for our man tear policy. since banks are the main channel of financial intermediation in the euro area, a well integrated financial sector with sound banks has helped transmit our policy more evenly across the euro area and it has loud us to pursue in a commodity policy for as long as necessary without building up significant financial stability rates. there is no doubt that the building european supervision has been remarkable undertaking.

today we have about 900 supervisory staff working at the ecb who together with 4,700 national supervisors directly oversea around 22 trillion euro in as assets representing about 200% of the euro area gdp. but more important than its scale have been the changes the single supervisor has prompt in the conduct of supervision it has broken with the past in a single but fundamental way that is, it has brought about a more uniform approach in how banks prosecute supervised leading to a more resilient banking sector overall the catalyst for this change, alongside with new european union regulations, of course,

has been the harmonization of the supervisory review and evaluation process, so-called shrap. this has allowed supervisors to conversion towards common benchmarks in how they assess risks and it has helped them be consistent in how their risk assessments are linked to supervisory add on and to other measures so illustrate the difference this has made, in 2014, the correlation between shraps, cores and capital requirements was 26 cent in euro area in 2016, it's 76%. european supervision has, therefore, resulted in a substantial strengthening of shock absorbing capacity within the sector the total capital ratio of banks

supervised by the ecb has increased by more than 170 basis points since early 2015. the quality of capital has gone up, as well. the loss absorbing component, ct-1, now makes up the largest share of total capital of your area banks specific weaknesses are also now being addressed in their entirety across the ur on row area currently, the issue here is starkly low performing loans we all know the damage that persistently high levels of npls can do the banks' health and credit growth. internal ecb analysis showing that over recent years, banks with high stocks of npls have consistently lent less than banks with better credit quality. therefore, providing less

support to firms and households. and though npl institutions have been cominging down for institutions to 5.5% now, the problem isn't yet solved many banks still lack the ability to absorb large losses as their ratio of bad loans to capital and provisions remains high we, therefore, need a joint effort by banks, supervisors, regulators and national authorities to address this issue in an orderly manner first and foremost by creating an environment where npls can be effectively managed and efficiently disposed of. importantly, the development of european supervision has not only reduced the risk of individual banks failing

it has also, as we hoped, had some success if in reducing the importance of location in the perceptions of bank risks. because single rigorous supervision is a precondition for the other pillars of the banking union that receiver the bank sovereign links indeed, looking at the largest banks for which we have data available, the correlation between bank credit default swaps and those of sovereigns is now considerably weaker than at the height of the rises. still, there's no room for complacency since these improvements are likely to have been driven in part by the improved economic situation. it is therefore crucial that further reforms he to delink banks from sovereigns do not lose steam notably completing the other pillars of the banking union

all these supervisory efforts have not only produced a more robust banking sector, they've also provided crucial support for our monetary policy. since we entered a new easing phase in may 2014. this support has come from two main sources first, stronger supervision has improved the transmission of our policy policy im pulses through banks it is therefore no surprise that the improved health of the banking sector coupled with our credit easy measures has coincided with a marked improvement in the transmission process. previously asymmetries in bank lending rates across the euro area have now largely been reversed

the cost of bank borrowing has stabilized at historical lows everywhere in euro area and so it's its percenta its dispersion across lending rates is near completion the decline in lending rates being particularly noticeable for small loans in vulnerable countries which are a proxy for the financial conditions faced by smes. smes are, of course, highly dependent on well functioning banks as their options are limited when it comes to access in market finance. for these small loan he, the spread between vulnerable and more resilient countries has now narrowed to a record low of five basis points

this more even credit price in across countries and firms has in turn been crucial to the broadening of economic and employment recovery. not least because smes represent 630% of your area value added and employs 70% of labor force the second way in which stronger supervision has supported our monetary policy is by helping contain any financial stability risk that may emerge during a long period of low rates one channel through which such risks can appear is the search for yield effects. low rates can imprincipal banks into making loans leading to higher loan losses but with a strong supervisory with wal well ka pit ewe liezed banks, the quality of lending

tends to be higher the this is confirmed by a major study looking at low level data the in spain which finds that when overnight rates fall, highly capitalized banks grant fewer loan application toes risky firms than lowly capitalized banks with fewer loan defaults. with a lower banking sector in the euro area, we've seen this more popular picture develop credit pictures in bank small loan books have declined as monetary policy has eased. default rates have fallen and forward-looking measures also suggest a decline in credit risk this has, of course, been driven by improvements in credit quality as the macroeconomic situation has also improved b n been but it may also reflect the role

of higher capital resulting in banking projects the more its owners stand to lose if borrowers default and cause losses so the more equity a bank holds, the greater its incentive to make higher quality loans. other financial stability issues associated with low rates who also not materialized thanks in part to the stronger supervisory framework. at a euro area level, we currently see no signs of credit-fueled housing bubbles which are at the root of the most serious financial crisis. since 2016, bank lending for house purees chass has reason on average by 2.9% per year, well below the growth rates of up to 12% recorded in the run up to

the crisis some local pockets of risk, of course, have emerged but both supervisors and macro prudential authorities are actively taking steps to counter them we've seen little evidence the negative interest rates are on the mind in bank profitability an issue which has caused a lot of concern this would pose a financial stability risk to the extent that it hinders banks from building up capital through retained earnings and makes raising market equity too expensive. it would also affect monetary transmission for the same reasons. in fact, net interest income has remained quite stable over the past two years as overnight rates have drifted lower. and thanks to gains in other income components, banks return on equity has been rising and is

converging towards their cost of equity for the banks under ecb supervisor, return on equity has risen from 4.4% at the end of 2015 to 7.1% at the start of this year. this neutral impact of negative rates is largely due to the general equal librium effects of monetary policy, that effects we've explained many times the main components of profitability largely offset each other since the positive impact of a stronger economy on low loss provisions largely cancels out any negative effect on net interest income. for some banks, however, these negative effects may be larger than for others. this is where strong supervision is, again, crucial

ecb banking supervisor carries out detailed comparative assessments of banks' business models which feed into the ongoing supervisory dialogue between the supervisory teams and banks. this process is not predescriptive, but it helps bring to light important issues such as the sustainability of banks' business models in a low rate environment and their operating costs in comparison with their peers let me conclude. now three years into the life of the european banking supervisor and the track record so far is encourageaging those the single supervisor is still a young and developing institution, it has in many ways

lived up to the high expectations that accompanied its fan. rigorous and uniform supervisor has led to high levels of capital and a more resilient sector overall the credit risk of banks is now less determined by the credit risk of their country of establishment. let me just incidentally thank all the staff of the -- the fantastic work they've done in the last three years it's things that if you go back with hindsight, it would be unthinkable three years ago. so i think we all owe a debt of gratitude to them. healthier banks have in turn helps helped transmit the ecb's policy more thoroughly across

the area leading to a stronger and broader recovery and the new supervisory framework has helped mitigate any financial stability risks that might have arisen as a result in short, european supervisor and european monetary policy have proven to compliment each other well it is an approach which confirms the synergies that can be at rift when the right policies are combined at euro area level. thank you. >> that was draghi speaking at the european banking conference. the new take away there is he's quite happy. he's giving himself a pat on the back for improving financial stability and the eurozone he said further supervision is needed the stress test, nowadays, they're pushing for higher interest rates rather than lower

interest rates he said there's no housing bubble to worry about and that banks need to use the good time potentially to start thinking about their npl issue. so just bringing it back to what we were discussing earlier, you said clearly that the european banking sector is looking more positive as far as you're concerned. do you think that we're about to start on a new era of higher interest rates and that that will be a boone for the sector, as well? >> no. so when you look at the draghi speech, it reminded me of having my abraceal with my boss he went back and looked at all the good things that banks have done but there was a very clear need and improvement. that was to deal with the npl issue. he made that bank with lots of npls struggle to do lots of lending. that will be the challenge particularly for italian banks going forward. he made it very clear that it would be a collaborative approach to that there was a sting and a tell with monetary policy he defended rates and accentuated this idea of forward

guidance it's very clear that negative interest rates were there for quite some time in the eurozone. >> i bragged about the number of supervisory staff on the eurozone level do you see that increasing or happy where they are now >> no, indeed, when you think of the supervisory side, that's likely to grow and grow. when you think of the sheer volume, draghi talked about the number of trillions of assets banks have there that towards a supervisory mechanism, that's likely to continue >> nick, i think that's been an interesting conversation a lot there we've learned from him. pockets of risk have emerged locally according to mr. draghi, both from supervisors macro authorities actively taking measures to counterthem. that was nick guardide thank you very much for joining us roughly one hour into the trading session, let's see how things are opening up. a bit of a mixed picture behind

me yet again, u.s. stocks have made new highs. nikkei is at the highest level since 1992 will that continue into the european session it doesn't appear so the open is treading around the flat line here just above that zero percent mark. obviously, we did have some weaker earnings data that came out a little earlier we'll get into that. but let's look at individual country and see how things are doing there. ftse 100, struggling a little bit relative to its european counterparts around the that zero percent mark. the xetra dax up 3%. really we just heard from draghi nothing really on the monetary policy front, but we saw a big drop in euro that might be helping some of the german indices today. ftse up almost 2%. another strong date for the periphery sector let's have a look at how individual sectors are doing this morning, as well. oil and gas, no surprise, up 1.24%. clearly there's been a lot of focus on the oil back drop given

the saudi development over the weekend. basic resources also posting in strong gains the in line with the move we saw yesterday, as well to the down side, food and beverages down .76%. health care struggling a little bit. we've had some soggy earnings results and the retail sector. we will get into that. but for now, back to you, phillip. >> thanks so much. u.s. president donald trump called for worldwide action against the threat from north korea while speaking at a joint press conference with south korean president moon jae-in trump said the u.s. is prepared to use a full range of military fours to thwart an attack but said he's focused on using, quote, tools short of military action he specifically called on russia and china to help reign in pyongyang. terry is live from seoul for us right now. how different are the two presidents' views when it comes to the threat posed? >> you know, when south korean president moon jae-in was

elected, there were a lot of questions about how these two leaders would get along, especially when it comes to security and north korean issues because president moon comes from the liberal side of things. and i think as things look changed a bit because of recent missile and nuclear tests by north korea he but we are still seeing that remnants of that discrepancy on north korea issues but because of the u.s. president trump as rich was talking about was all about calling for maximum pressure on north korea and, again, in china and russia involved in putting pyongyang in check but his south korean counterpart managed to get a line out there saying the ultimate goal at the end of the day is to resolve a peaceful resolution with north korea. so i think that's a major discrepancy that we can draw these these two leaders. by the way, north korea and trade very much high on the agenda as widely expected.

this is what u.s. president trump had to say at the blue house. take a listen. >> i feel confident that we'll be able to reach a free wsh fair and reciprocal trade deal as we renegotiate our current 5-year-old trade document. we cannot allow north korea to threaten all that we have built and we've built it very much together and we're very, very proud of it also together. >> so we didn't really get a lot of highlight or a specific ideas about what kind of concerns that he has whit come to that free trade agreement that his country has with south korea but certainly with both of the countries leaders talking about how they will strive to seek a fair and free trade deal, i think that sets the tone for what's happening early next year with the trade representatives already thinking about making amendments to that 5-year-old

free trade agreement i think all in all, for the south korean president, it was really about deepening friendship and securing, making sure that this alliance is strong, but for the u.s. president, it was really about about an arms deal saying that billions of dollars worth of arms deal are on the way with south korea with a portion of that having been a approved by the administration >> certainly something to watch there. thanks for that comprehensive coverage coming up on the show, we'll be live from cairo with exclusive insight from cnbc's interview with egypt's president on the future of the volatile middle east. stay with us

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said >> we call on every responsible nation, including china and russia, to demand that the north korean regime end its nuclear weapons and its missile programs and live in peace. >> time to unite, mario draghi calls for action on banks. >> we, therefore, need a joint effort by banks, supervisors, regulators and national authorities to address this issue in an orderly manner first and foremost by creating an environment where npls can be effectively managed and efficiently disposed of. >> chipping away, dialogue shares sink to the bottom of the sox 600 after a cautious fourth quarter result >> choppy waters for mass group, the shipping giant misses on the

top and bottom line in the third quarter as the impact from a cyber attack proves worse than anticipated. >> let's take a look at how u.s. futures are opening up here. as you can see, again, point to go more gains on the u.s. stock market, surprise, surprise, s&p 500 implied to open a couple of points higher, dow jones up opening around 50 points and nasdaq looks like it's going to have a strong open in europe, as we said earlier, ftse has been lagging behind its european counterparts. xetra dax is still in the green above 200. ftse/mib holding on to its gains. there's been a lot of focus on oil. clearly the developments in the middle east are having an impact on oil and the oil outlook going forward.

>> one of those stories, saudi arabia has accused lebanon of citing war against the revolution lebanon now finds itself in a struggle between saudi arabia and iran the minister said the failure the to deal with hezbollah is a war of declaration on the kingdom.

the uk foreign secretary affirm that they would standby britd britain in the face of threat. now to egypt, one year after egypt unpegged its currency from the u.s. dollar, many in the country have struged with the reduced value of the country, raising questions about its economic future. hadley, what did egypt's president have to say? good morning, device the imf is saying egypt is in the middle of of a broad-based recovery but most egyptians we speak to still are trying to see how in this benefits them so far. there are bigger questions about when the tourism industry, an industry that employs millions of egyptians is going to get back on track. revenues still down.much below what they were in 2010 and the question is how that situation is going the to be improved

security, a big part of that i asked the president what's the plan let's take a listen. >> translator: i have to say that targeting tourism in egypt is a very dangerous issue and it has a big impact on the economy. it brings in a lot we haven't reached the number of tourists or the revenue we had before 2011, even until now. in the past seven years, we haven't reached the figures prior to 2011. we haven't reached the levels of revenue, either. if anyone wants to harm the egyptian economy, they always target that sector to impact our revenue from it. we can say the situation is getting much better compared to the past months and years. the security measures in the whole country and especially in tourist areas are at the highest level to guarantee that tourists can visit egypt safely in order to enjoy their visites and

return safely to their countries. of course the economic situation is improving very much we have launched big projects. first with the suez ka fall, an economic with 1.5 million acres of land for consult vacation, road networks, energy projects all these projects, housing projects, infrastructure in general involves a lot of laborers almost 3 million citizens were working for 3 1/2 years on these projects this was a big part of solving the issue of unemployment in egypt. don't forget that egypt has more than 60 million people under the age of 40. most of this them are youth. so providing work for millions of young people is not an easy job in a country like egypt. >> last week, the imf's regional director assured me that he is confident in your economic progress in terms of the plans to return to growth and the

investor sentiment, of course, has improved but inflation remains very high and many face financial uncertainty. what's the timeline to prosperity here? with of course i have to confess that the egyptian economy is suffering with progress. our measures to reform are real. with when we are doing it, we are trying to do it in a balanced way so that the measures don't weigh upon egyptians from the inflation that goes on economic reform as we have taken. keen on measures we have taken for social protection which we have launched in past months to ease pressure of inflation on low income citizens. >> security is still a major challenge for the egyptian economy. the imf saying this country could grow 4.5% in 2018, but you have to look at the geopolitical and regional picture here. we're seeing a lot of rumblings

on out of saudi arabia over their conflict with iran a lot of questions surroundinging what's going to happen next, if we're going to see the a blowup in lebanon, for example. and one of the big questions for president sisi is how closely he thinks the united states is involved or needs to be involved here i asked him that question. let's listen in. >> translator: i see that president trump is managing foreign policy in our region can i say in short that the united states has regained its weight in the region and is preserving security of the region and its countries we are completely supportive and cooperative with president trump on this. >> well, president sisi there essentially saying to me that he believes in what president trump is trying to achieve he thinks that the president seems to be on the right track in terms of his influence in the middle east and what is happening next

>> thanks so much for that, hadley we're joined by the cochief investment officer at cap one fund managers. i want to ask you about saudi arabia a lot going on there the last few days the crown prince obviously playing in some way toes a domestic audience. but what message is he leaving for international investors, do you think? >> he's doing everything he can to stamp down upon corruption and also to unite saudi arabia under one leadership previously, saudi arabia was many different factors that led to inertia but the question mark is does he veer over the line and go kind of beyond what the law says which he himself can change into actually attacking minorities and overdoing it in terms of the crackdown? >> if you're an investor looking to park your money in saudi arabia, you want to know rule of law stands

there won't be arbitrary arrests, arbitrary extensions, arbitrary people taking money away from others is there any guarantee of your looking to invest in that country that what you invest you will get back when you want it >> exactly that is the key question that's been the question in egypt after the crackdown that we saw there a few years ago and in turkey the crackdown that we saw there last year after the coup in general, emerging market investors tend to prefer you a tocksy to democracy because it's a lot more predictable if you look at everything he has laid out, it relies upon a lot of foreign skills and investment coming into the country. and so the alignment is with foreign investors in that regard what will be the key question mark is if you see for example kingdom holding by prince aliv is ive that would be a big concern. >> what does it say about investors in these emerging markets if they're seeing rallies when these strong men essentially arrest their own

citizens express and descend >> i think it shows emerging market investors aren't democratic, ultimately emerging market investors like certainty. that's the reality that we see and maybe it shouldn't be, but they're looking for returns most of all as opposed to having any social impact. kingdom authority have stake in many international companies, including twitter, citigroup what is going to happen to kingdom holdings here? >> it all depends on what happens in the next few days, ultimately just because the print is arrested, we don't know exactly what will be the result.

the a there has been a consolidation of the national guard and security apparatus there as long as there's more ex appropriations with the state taking over, investors sentiment should be on okay and we shouldn't see a selldown of those assets in any case >> the teat the time, you heard this was an opportunity for greater transparency in the corporate sector what does the events in the last few days do the that effort? there's a tiny, tiny fraction of those investors right now in saudi arabia, a very tiny -- >> 1%. >> 1%. was that just a load of

nonsense >> once this settles, they need to make sure rule of law is maintained they need predictability to be successful >> thanks for joining us this morning. >> and, of course, a lot of questions about the ipo going into next year on the back of that thanks very much feel free to join in the conversation e-mail the show. streetsignseurope@cnbc.com or tweet us and follow us at twitter or tweet us directly at willemarx or cnbcjou and coming up, 21st century fox holds talks about a number of issues, but in particular a possible sale of its assets.

welcome back to street signs. danielle is saying that 20 banks have applied or have had something assessed for brexit, which is quite interesting that's the first time we hear really the ecb mentioning that some banks may actually start moving towards the eurozone. certainly there is an increasing focus on this. the commitment on their part to start shifting employees away from london to european centers, so it's interesting that that's coming up out of this conference >> let's also hear about some ma maersk shares sinking below forecasts due to the cyber attack in june which cost the.company up to $300 million freight rates have adjusted its full year guidance as a result

another big company losing money because it doesn't have good information systems. >> there's two things. i think one is obviously the cyber attack did amount to about $300 million that is huge for a shipping company and it does obviously raise a lot of questions about the security of other companies who may be exposed to this it's not really clear how you provision for that, essentially. we may actually start seeing companies start provision for future cyber attacks >> the key sure is just to spend more money up front on your i.t. security in front of the attacks in fortunate first place >> there's that. the other thing that i thought was interesting is that their freight rates of the year have disappointed and that doesn't bode well for global trade and their bellwether in the sector dialogue semi conductor shares are shortly lower despite operating profit in the third quarter. boosted by strong demand for next generation smartphones.

they see fourth quarter revenues in the range of 415 to $455 million and the higher growth margins as a result. ab food sess forecasting lower. the company did report a 20% rise in earnings ahead of forecast the growth was largely thanks to a strong performance in its primark fashion business and zalando is trading in the red after lowering its full year operating profit margin guidance it cited a weak performance in october. it turned in weaker than expected parading profit in the third quarter. the company had prereleased numbers just three weeks ago warning that heavy investments weighed on margins in the coming period >> that, of course, is the company that has been investing in poland and it's another example of the amazon effect where these logistics firms are struggling to compete with this

global giant and, again, spending money to try and compete and that's heavily weighing on their margins. >> and continuing to invest on the the lostics side of it >> last week, we spoke to the carlsberg ceo and he blamed the weather on poor beer sales because the weather wasn't very nice these guys are blaming warm weather on poor sales because people aren't going out and buying warm clothes. they're not no vastly different parts of the world -- >> but i think that's something retailers would say across the world, though. twlvs a big miss on the clothing side pointing back to the warmer weather. but food spending is up. overall, that doesn't really tell you -- well, it bodes well for the health of the consumer, particularly in the uk given that the bank is -- >> i spend money on beer regardless of the weather and i never buy clothes, so i'm a really bad example to use i

think. >> moving on, fox's sky is trading down near the bottom of the stoxx 600. the deal would leave rupert murdoch's company tightly focused on sports and news offerings while disney would benefit by gaining significant tv production assets and gaining control of another studio. the creative artificial intelligence could be quote the biggest event in the history of our civilization or the worst. that's according to physicist steven hawking who spoke at the summit in lisbon karen and argint are live from the summit what can you tell us what has been the major focus for the event in the morning so far? >> good morning to you ai is meant to be a huge theme

here, anyway and steven hawking really setting the scene that artificial intelligence could have negative consequences for humanity there have been a number of warning hes in the past from hawking but also from elon musk about certain outcomes he's spoken the particularly about the dangers of powerful autonomous weapons, new ways to suppress many and the impact on economy, the loss of jobs. he said there could be some positives like eradicating disease and the economy, but we just don't know what the outcomes could be, which is a strong warning to all those start-ups building at their own ai to the tech titans here who have invested very deeply in artificial intelligence. >> the way i read it was very much a plea to everybody at work, develop your ai responsible. he mentioned some of the investigate and research into where robotics goes from here.

he said we need some regulation around ai which seems a lot more difficult than it sounds >> we're not even regulating tax when it comes the to european companies and american tech titans we have the eu commissioner on stage shortly to talk about how to get democracy back and talking about these companies undermining democracy. so she's going after them for tax. but we're not even at the point where we're regulating and going after companies for artificial intelligence but members have to vote to even be considered as legislation so it's early days, yes. >> and it just seems like such a tough task the complexities of ai are bigger than anything we've seen in the tech world.

>> if you're talking about artificial intelligence, where do you start this is something that can perhaps think for itself and become smarter than humans how do you treat those one of the proposals was to treat them as humans almost and give them citizenship. >> which means you have the ability to lobby fine toes try and reign them in. but the other side is the positives. there are positives from artificial intelligence about bringing big data together the human mind can't possibly extrapolate out what some of the data means to make it meaningful it would take millions .millions of hours, possibly more than a lifetime to rig some of the data but ai can have that capability. and we've been talking about the paradise papers in the last 24 hours. this is something where there's a convoluted web of information, but ai could possibly keep track of how companies, individuals

are flaunting the rules by tracking the data, following the path so that is one way that perhaps ai could be useful to try and provide a quality rather than sort of the negative side effects we've been talking about. >> and on that point, as well, one of the big areas is, of course, health care and ai has been being used to read medical scans and try and find things that doctors can't so it is about being able to process images, process words and find out some of those information humans just can't get to >> so a big theme here, but also lots of influences, lots of celebrities i'm going to be talking to a musician later on and you've worn a special suit to tap -- >> a very special suit >> quite important >> so i'll be speak to go paul levesque, also known as triple h in the wwe wrestling company i'll be talking to him talking about some of the tech they're putting into place and some of the innovations they see in the

entertainment space. >> you're going to dazzle him with your suit we'll toss it back to you in the studio >> brilliant thank you very much, guys. we can feel the energy from here and it is amazing how artificial intelligence is changing everything from companies to health care, technology sectors. let's take one last look at u.s. futures before we move on. s&p 500 set to open up a couple of points stronger dow jones up 35 points or so another strong start expected in the u.s. absolutely for our american viewers, we'll hand you off to "worldwide exchange." those of you watching in europe, stick around for our interview with the ceo of the qatar airways. that is coming up after the break. stay with us my "business" was going nowhere... so i built this kickin' new website with godaddy. building a website in under an hour is easy! 68% of people... ...who have built their website using gocentral, did it in... ...under an hour, and you can too. type in your business or idea.

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rally on, stock eggs pointing to another higher open on wall street with the dow, nasdaq and s&p 500 sitting at record highs on the front lines, president trump on north korea's doorstep this morning he's meeting with the president of south korea we've got a live report from seoul coming up. and big buzz in the media world has disney reportedly held talk toes buy most of the 21st century fox. we'll have the latest on that coming up. it's tuesday, november 7, 2017 "worldwide exchange" begins right now.