venezuela setting up a clash between the country and worried bond holders even as president maduro promises to avoid default. let's get straight to oil market flashes the political shakeup in saudi arabia added extra momentum to the oil price rally. that's just one of the insights in the latest report from the international energy agency, and as always we're joined by neil atkinson from the iea who joins us from paris. great to speak to you. we had so much happening in

saudi arabia over the last two weeks. feels like these days if you want a look at the implications in the oil market you need to be a geopolitical analyst at the same time and know about the ins and outs of the mideastern policy do you think it's really just a geopolitical risk premium added to the oil markets is that actually something, the saudi arabia situation, that could impact the balances overall? >> well, what we're seeing leaving aside the geopolitical tensions for a moment is that there has been lower production output in northern iraq because of the situation there and we saw, as we said in the report, lower than expected production in one or two other places, algeria, nigeria, venezuela, mexico, lower growth than expected in the u.s added to the fact that stocks are falling as we also see in the report and demand in reasonably strong. there are some underlyingfu fundamental factors that help

drive prices, but the situation in the middle east has added further momentum in the upward movement in prices we'll have to wait and see how that plays out >> i guess it's very difficult to forecast what oil price also do and how this situation plays out in the next couple weeks do you think that it is sustainable? do you think these levels and maybe we're seeing fatigue around the $60 mark, do you think it does have legs at this point? >> what we say in the report, though today things are reasonably strong for the market, as we move into the very early part of 2018, we do see some potential softness in the first quarter of the year. current numbers expect that supply will actually exceed demand in the early part of 2018 that is not a recipe absent geopolitical problems to see prices rising significantly. so you said a second ago, some fatigue around the $60 a barrel

mark that may be true people are focusing on the immediate geopolitical concerns and people are looking back at the underlying fundamentals. >> the other takeaway from your report this morning, i think it's quite major, there's another downward revision of demand forecasts for 2017, but also for 2018. what does that mean for the continued rebalancing? how do you explain this disconnect from the opec side of the equation we're seeing an increase in the demand forecast. how would you explain that >> our colleagues at opec see things differently and they have come to a different conclusion i have not seen their underlying data as far as we're concerned, they have made a small downward adjustment to the 2017 demand growth number for the year as a whole. we've explained that by the fact that since the middle of the year crude oil prices, let's take brent, for example, have

gone up by 40% and they've gone up by 20% since the early part of september. that must have an impact on demand growth. intuitively that must be the case to some extent as we carry that forward into 2018, it must have an impact there as well. also we've seen the beginning of the northern hemisphere winter season, and higher than normal temperatures in the early part of the season. so we made an adjustment for that there is a downgrade to demand growth in 2018 that's true. but it's still growing strongly. i don't think we should overemphasize the impact of the change >> at the same time i'm looking at an interesting report that you're not the author of, but i know you're advising on this this is about the report that the international energy agency put out tuesday saying there will be 300 million electric vehicles on the road by 2040 this will cut 2.5 million barrels per day or 2% of global

oil demand by that time. that report and headlines we've been running all morning is that we should not be writing the obituary for the oil markets yet. how detrimental is that to demand overall >> the best people to answer that question are my world energy outlook colleagues. from the perspective of my outlook, which is basically no further ahead than five years, the impact on oil demand within the five-year period and a few years beyond that from electric vehicles is modest as we look further ahead which is the job of my world energy outlook colleagues, the picture changes depending on policy changes made by government is, and depending by technological innovation we'll have to wait and see how that plays out that's a job for my world energy colleagues to explain. >> neil, thank you very much for your time. neil atkinson head of the oil industry and markets division at the iea.

nancy is live in abu dhabi and has been talking about all things oil prices this morning nancy, what are the key takeaways? >> i can tell you i wrapped a panel with some members in the industry as you were touching on there, the iea conclusion, don't write the obituary of oil yet, that's very much their message as well. one panelist saying oil and gas is here to stay, but they are looking at adjustments the conclusion of that panel was that a year from now, whatever the price, you will be looking at an industry more fit. that is what they're all working towards. in fact, one ceo telling me they don't want to see the price go up dramatically because that might change some reforms taking place, some structural adjustments as they see healthy to the industry when it comes to reacting to the new normal for the sector we are here in ab due bab eu dhn

thing we're keeping an eye on is the saudi aramco ipo yesterday the question was asked of whether or not the ministers thought the ipo would go ahead in 2018 or not >> will it happen in 2018? yes or no? >> i think it can happen, but it all depends on the aramco and the government of saudi arabia what do they want for that ipo to happen? it's not just launching the ipo. it has to do with the right environment, the right price, other parameters so, actually it depends on them. it's not a speculation of whether i think they can make it happen, and they can, if that's the question there's an interest by the international community for it to happen, but are they going to decide at the right time, next

year i think if they said so, they have a potential to do it. and i trust them >> not quite a yes or no thank you. >> i think cnbc said yes, so i will say yes, it will happen >> your excellency >> i think it will happen. >> sir >> with the kind of delegation and commitment we're seeing, most probably it's going to happen, i guess. >> there you have it i think one minister there saying with regard to the saudi arabia ipo taking place next year, the price and environment would have to be right that's something that the leadership panel i talked to, they're still talking about whether or not the price is right. but there's an acknowledge that they're moving ahead, making the changing that need to take place in this environment. you were talking about electric vehicles there there was some discussion that perhaps this industry could learn a thing or two when it

comes to automation and innovation >> nancy, thank you very much for that want to bring you the latest in terms of statistics this morning from italy italy posting a solid 0.5% growth number in the third quarter when it comes to its gdp. so it's recovery is clearly continuing and that leaves italy on course for its strongest growth since 2010 euro/dollar 1.1706 want to show you the rest of the equity markets just slightly moving to the upside this is after five days of declines. so slightly friendlier tone across the markets as we are contending with lots of earnings from a host of different companies. want to show you the european markets. we are seeing outperformance in the dax. very, very marginal one. the dax up by 0.3%, on the back of very strong gdp numbers from germany as well for the third quarter to the tune of 0.8%.

the ftse 100 up by 0.2%. sector-wise, this is the view. you have basic resources, oil and gas slightly underperforming as oil prices and basic resource prices are coming off the boil technology, chemicals moving higher but i promise you, we have a host of numbers to get through today in terms of third quarter earnings report. vodafone is trading near the top of the stoxx 600 after it raised its full year earnings guidance. the adjustment comes after it posted a strong first half performance boosted by organic growth the world's second largest mobile operator expects ebita to grow around 10% up from a previous forecast of 4% to 8%. vodafone saw its revenues slide a bit because of deconsolidation of its dutch business but managed to raise its dividend. shares up by 4.2%. infineon shares are trading higher to the tune of 4.3%

following the decision to raise its dividend the firm increased its payout to investors despite reporting earnings which missed expectations. a different picture for henkel shares in germany shares off 3.3%. one of the worst performers on the dax and the stoxx 600. these shares are under pressure following its warnings that challenging market conditions in the consumer goods sector will continue the german consumer goods company, which is behiupping it 17 earnings guidance after posting a 3% rise in organic sales growth alstom's first half net profit was boosted the french train maker was in a deal to merge with siemens and said it remained on target for its 2020 goals still coming up on the show, as the parliamentary debate over

the brexit bill begins, we speak to the president of the peterson institute for international economics, that's adam pose zenn that's coming up after this short break. happy anniversary dinnedarlin'

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23 countries signed up to participate in a new european union defense pack the initiative was proposed by france and germany as a push to deepen eu integration in the wake of the brexit vote. the only eu countries not to participate are britain, ireland, denmark and malta theresa may has been asked to speed up brexit negotiations before it's too late cos warned they could move out of britain unless a transitional deal it in place. may has bowed to pressure from pro european conservatives by offering the british parliament a full vote on a final brexit deal with the eu. it's the latest sign of her

deteriorating position as turmoil within her government interrupted brexit plans joumanna bercetche is live in london i'm sure brexit is high on the agenda. >> we will definitely be talking about brexit joining me is adam pozen the president for the peterson institute for economics. thanks for joining us. speaking about the uk, the bank of england hiked rates a couple weeks ago. many people are calling this a policy mistake what is your view on the hike? do you think they were right to go >> if i was right on the mpc, i probably would have voted against it it's not like 20 110, 2011 where it was not driven by domestic inflation it was driven by concerns over potential output in the uk. but also by brexit it meant that the bank had to be more worried about the stability of inflation expectations about

the pound than they otherwise would have been. this is part of what happens with brexit. the bank of england is not back to the '70s, but it's more like an emerging market central bank in that it has to take the external situation into account. it just can't set policy based on domestic inflation. >> we're seeing in the uk the data beginning to slow down a bit. of course the political back drop has begun to weigh on the currency do you think going forward the currency will be the main release valve for how brexit negotiations are going >> i think the day-to-day month to month movements in the markets will focus on negotiations that's not that important. for some people watching who trade it is, but for the british people and the british economy going up more than six months what will happen is a decline in the pound. uk -- irrespective of how negotiations go, it is making itself less competitive.

it's shutting down economies of scale where 60% of exports go. inherently, you combine that with other imbalances in the uk, growth of consumer credit, the still large government budget deficits, the imbalance in trade that's there even before brexit, and this all weighs down on the currencies month after month people were blame politics and uncertainty fundamentals are down. >> do you think that's problematic for bank of england ultimately we saw the decline in the currency last year had an impact on the inflation numbers, and some people say they were coerced into a hike because the cpi numbers were so high on back of the currency's appreciation if sterling heads another leg lower, we may see more inflation in the uk but the wrong type of inflation at a time when the economy is saying. >> that's what i said to you just two minutes ago the pound is moving and the bank of england has a dilemma it didn't before, because the expectations on the inflation is not as anchored and the pound is

not anchored where from '92 through 2012 it was. when the pound fell a lot in 2009, there was initial inflation, i and my colleagues in the mpc could look through it and say it will not get passed on that's what happened in a world of brexit and a shambolic set of actions by the government on fiscal and brexit policy, that anchor is not as strong yes. they have to worry about it. i don't like this idea of good versus bad inflation i don't even know what that means. with inflation, it's a question of whether the first round shock, when the currency moves and that automatically, as you say, puts some inflation into the system, does it keep going does it lead to a spiral that's more at administration's ability to pass tax reform do you think eventually, if tax

reform does get passed it will be stimulative for the economy >> absolutely. i don't think it's good for the long-run growth for the economy, as many conservatives pointed out in the u.s we built up a lot of debt in the u.s., i argue for good reasons, but we don't have much fiscal room left. monetary policy near zero. if you go further into debt now when unemployment is low and the economy is doing well, you will not have the resources you need if another shock comes along, if a recession comes along. i think in the short run it will be stimulative they will do large unfunded tax cuts i think whatever else gets decided about the tax code, that will happen. and large unfunded tax cuts means stimulus on the order of 0.75% of gdp a year for the next couple of years. that's not trivial when we're growing close to full

employment >> do you think that will impact the fed policy from here, given that the fiscal impetus will be hitting the economy, there is a lot of turnover at the fed right now. the two together, does that make you believe that the fed will turn more hawkish next year? >> i actually am counter intuitive on this you're right to talk about the turnover at the fed as being important i think president trump is demonstrating the old adage it's better to be lucky than to be smart. so the -- we've never had a budget take this long to be passed for a first-year president, but because it was so late being passed t will be his appointees rather than the yellen/fisher fed that will be voting if the budget was passed last april or last june which is when it would have normally been expected, then probably would have had one or two more hikes by the previous fed. you will get a new fed, i'm not saying they're compromised, but they're going to be disposed to say, well, this is stimulus, but

it's also structural reform for the economy, corporate tax cuts are good he can need to dynamically score it we need to wait and some people like charlie evans or lael brainard who made a good case for waiting. i think they'll surprise markets. they won't turn hawkish, they will move once in march and sit still. >> and end there >> end there for a while, for a year, in my view which is something of an outlier now. what do you think is the biggest risk to the u.s. economy you were saying the tax cuts initially will be stimulative, fed will be hiking where is the risk coming from? >> i don't think there is much risk people say if the recovery goes on a long time, it must die. the historical evidence for the u.s. and most advanced economies is no, something has to happen for recovery to die. something unforeseen in addition to the fact that you're getting stimulus from the fiscal side and i'm arguing or

i'm predicting that the fed will be slower too raise rates than people think, we have a balanced economy throughout the world europe is doing well japan is doing better. china is doing better than people expect. india is doing okay. you look at a world with a balanced recovery which we have not had for at least 20 years, there's less vulnerability to external shocks. you don't have the huge capital imbalances when one country is growing and another is shrinking. so again, i don't think what the trump fiscal policy does will be good for the u.s. economy over the medium term. i think it's risky in the short run the u.s. economy will do great. >> adam pose zen, thank you ver much i will be back with youguys a little bit later, perhaps tomorrow we'll talk about it, i'll sit down with david lipton, the deputy managing director of the imf and with mr. padawan, the finance minister of italy. back to you.

>> thank you very much for that. >> we will continue with central banking speak. we will have special coverage of an all-star panel of central bankers including janet yellen from the fed, mark carney of the bank of england, mario draghi and the bank of japan's kuroda, that's a star-studded lineup that's 11:00 cet these gentlemen and the lady, they will be speaking from frankfurt from a conference there. let's get back to big news ge shares posted their worst single day decline since april 2009 after the company announced it would cut its dividend payment in half. ge announcedplans to restructure to emphasize healthcare, aviation and energy. co john flannery apologized to investors for the company's performance and promised ge would be more focused going forward. morgan brennan has more on the strategy overhaul. >> reporter: cut dividend. cut assets those are the crux of ge's new

strategy under john flannery today flannery outlined big changes for the struggling industrial giant >> going forward, we have to focus on how we can create the most value from the portfolio of assets that we have for ou for 1989, ge's dividend was cut. ge has long been bought for that payout, with about 40% of shareholders retail investors, many dependent on that income. still the move was widely expected what wasn't was the guidance >> the market is just having a difficult time and sort of envisioning what ge's long-term trajectory will be and where the company will shake out at the end of this. >> reporter: ge now forecasts profit of a dollar to 1.07 per share next year. 50% less than originally anticipated.

but flannery outlined a new strategy, one on power, aviation and healthcare over the next two years he plans to exit a dozen others including transportation and lighting. a ge business harking back to the days of thomas edison. even a stake in baker hughes could be up for grabs. it will all take time. 2018 will be a reset year, one that will be extremely hard with major changes and detailed execution. after that, he says profit should grow and with i hopefully, financially, the stock. for cnbc business news, i'm morgan brennan in new york city. maybe at some point the dividend will grow again we'll see. on a programming note, ge chairman and ceo john fla flanny will speak at 3:00 p.m tesco has been given the go-ahead to buy booker

the uk's largest retailer said it expects the 3.7 billion pound deal to complete early next year sticking with m&a news, qualcomm rejected broadcom's 1$103 billin takeover bid the chipmaker said the offer undervalued the company and would face too many regulatory obstacles. broadcom said they will still talk to the board about a tie-up. and altice shares are falling to the lowest level since 2014 following two downgrades morgan stanley cutting the price target to 13.50 from 20.50 saying casload would be hurt by high debt load levels now we've got plenty of data points from the uk after this short break, including uk inflation, that is expect ed ed

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welcome back to "street signs. i'm carolin roth a strong signal. vodafone shares trade higher as the mobile operator dials up its full-year earnings forecast after first half profits beat expectations. full steam ahead for alston. they rally on a solid set of profits and bullish outlook forward until 2020. tesco can load booker into its trolley. the stocks trade near the top of the stoxx 600 after the uk regulator provisionally approves the 3.7 billion pound merger. and default. that's s&p's judgment of venezuela setting up a clash between the struggling country and its worried bondholders even as president maduro promises to avoid default. inflation data from the uk,

surprisingly it held at 3% in the month of october versus expectations of a rise of 3.1%, which would have been a five-year high which would have triggered a letter from mr. carney, the boe governor to mr. hammond explaining why inflation deviates by more than 1% from the target of 2% we're not getting that letter. 3% for the month of october. seeing quite a bit reaction in the currency markets sterling/dollar down by 0.3% on the day after being unchanged before, given that the market got this pretty much wrong to be honest i know it's a small deviation, but maybe it's an important one. we're also seeing the ftse 100 jumping to a session high on the back of the weakness in the pound sterling once again, the boe saying this month after it raised interest rates for the first time in a decade that inflation would peak at 3.2% in the month of october. in fact t did not. it held steady let's get more instant analysis with jane foley head of fx

strategy at rabo bank. are you surprised by the fact that inflation did hold steady >> i guess i'm surprised, but this is not a big deal we know from looking at the inflation indices that we're in the process of peaking yes, it's good news that it is just 3%, not 3.2 it's good news that the bank of england doesn't have to write that letter but ultimately we still have strong inflation in the uk the message that it says is that maybe there's more reason for the bank of england to just sit on its hands, not do anything with respect to interest rates in the future, during the first half of next year. and that is detrimental for the pound. i do think that really that's where sterling's ability lies is not with economics, a lot is with the price and the shenanigans with the politics and uncertainty about the political position of theresa may's government and brexit talks into the end of the year >> you hit the nail on the head. i wanted to clarify with you what comes first in the pecking

order when it comes to the key drivers for the pound sterling is it brexit and brexit trumps boe and boe trumps data? >> i think because we had the bank of england meeting over and done with for november, that was an important meeting we had that interest rate hike, it's out there, it's done. given that's the situation that can be pushed one news and we were told last week within two weeks the uk needs to make concessions if the eu are going to agree in december to move forward and stop talking about trade. that's crucial for the markets meanwhile there's lots of pressure on the may government many people wonder if the may government will be in place to see through brexit talks so the politics for now are important given that the bank of england meeting is out of way. if we don't move ahead to trade negotiations by the december

council summit for the uk, what happens to pound sterling? has that already been priced in, the fact this will be pushed out to march >> i think that would come as a disappointment certainly we would have to say there's a reasonable proportion or percentage of hard brexit priced into sterling right now that percentage would likely rise if those trade talks did not start in december. of course if we look at the way politicians work, the negotiations between the eu and uk, it's likely that if they do reach a deal, it's likely to be a last-minute deal nevertheless, the longer time goes, or the close their march 19 deadline approaches without the start of talks, the market will naturally have seen the greater the percentage is that we'll have a hard brexit and no trade deal would be put in place. that is really important for sterling >> before i let you go want to ask i about the euro/dollar pair it's making some headway this morning to the tune of 0.3%.

at 1.1706. we got strong german and italian data we have hesitation between the house and the senate over the tax bill is this the chance for the euro to break out maybe a little bit longer than just by one day against the u.s. dollar? >> is interesting. if you look, we are above the 200 average right now. it's interesting but i think you're right the european news has been good. the imf out with revisions yesterday. the german gdp, very good news i think the yushl piecrucial pif news is regarding u.s. tax reform if they push forward with that, the dollar can still rise. if they don't, yes, euro/dollar will break higher again. >> jane foley, head of fx strategy. staying with fx, we were talking about some big pairs want to show you how cable is

trading. we reduced some earlier losses on the back of the inline or the unchanged cpi print. we're down by 0.2% at 130.85. and euro/dollar is 117.08 on the back of strong data out of germany and italy. as far as equity markets are concerned in europe, we are stronger today after five days of losses. the xetra dax trimming some of its earlier gains as well. up by 10 points now. the ftse 100 up by 13 points the cac 40 higher to the tune of 4 points i should tell you we got china data which was disappointing when it came to retail sales, fixed assets we are still very much focused on the earnings season negative. dow jone points the s&p falling by 1 1/2 the nasdaq seen off by 7 points. yesterday, the dow and s&p 500

rose for the first time in three sessions the nasdaq rose for the second time in three sessions obviously all those gains were capped by ge,the heavyweight whose shares fell by some 7%. powerful forces are changing how big banks do business from waves of consolidation to digital technology annette spoke to the ing ceo on how that bank is changing to compete in the new environment >> i think we're at a cross roads. we're three years in being the supervisor for the larger bank in the eurozone. we found a standard for supervision, capital levels, all of that. the question really is how -- where do we go from here what is the advantage now of having the ssm clearly we are same standards, same scrutiny. more transparency across border. that's all very helpful.

will this lead to european consolidation? that's the real question >> how confident are you that we will see a real european consolidation, let alone the german we terribly need consolidation >> in some markets, local consolidation is warranted the italian market is going through consolidation. the german market as well. that's where you find the first benefits of consolidation, local consolidation of taking costs out of the system. if you go to cross border consolidation, it's about how can i make sure that i build the skill for digital banks going forward. so you can actually share your digital costs, your digital layout cross-border. on top of that you need benefit from capital trust

in order to get that one done we need the next step in will we form a european deposit guarantee system or not? are we going to find a general back stop for banks or how are we going to make sure that local banks are less and less dependent on local governments so, there's quite some steps for cross border consolidation to happen but there are certainly benefits if it comes to the digital side of that. but the real benefits are all on local consolidation for the moment >> would you look into expanding other markets than your present right now in order to leverage your digital base? >> so the question is, if you compare ourselves to, for example, the larger technology companies, they build a platform a digital platform that leads to a standardized experience that you can roll out to different countries. what we're currently building is between what we do in spain and italy and france, austria and

the check republic building one platform across five countries already active in five countries. we're building both similar back end and front end. once you have that, you can actually roll it out into many new countries. the only difference that you will probably still run into is some of the underlying products, banking products are distributed to local laws, local regulations, or, you know, tax treatment. so on the product side you would still see some differences local by local, country by country in terms of the experience, i'm convinced you can equalize it. >> would that be something you envision for the future for ing? >> yes that's what we're building now as i said, we're trying to or we're building this model bank as we call it across five countries. once we have that, we can go into any country >> again, we will have special coverage of an all-star panel of central bankers including janet yellen from the fed, mark carney

of the bank of england, the ecb's mario draghi and the bank of japan's haruhiko car rokuroda s & p ruled venezuela to be in default after it failed to make two interest payments on its bonds this adds pressure on the troubled government which offered no firm proposals on how it plans to deal with the $60 billion debt pile during an investor meeting yesterday frustrated creditors said the only concrete offerings at the talk were bags of venezuelan chocolate. i hear there was also some venezuelan coffee involved i don't know if that will make things sweeter or better at this point. michelle caruso-cabrera has the details. >> reporter: a controversial meeting in caracas ended with no deal on monday for venezuelan bondholders. the meeting was vont vercontrov because of who might be leading it the vice president of venezuela

has been put in charge of negotiations on behalf of his country. the only problem is he's on the u.s. sanctions list. the department of justice says he is a drug kingpin so all american also be prohibited from doing deals with him and most banks think they shouldn't be meeting with him. it's unclear if anything will be able to get done and very few americans went to the meeting in the first place. also inconclusive was the meeting held today by the committee deciding whether or not venezuela's default swaps should be triggered. the country has been late on a couple of payments but they have paid the committee says they will wait one more day before making a decision michelle caruso-cabrera, cnbc headquarters speaking to steve sedgwick, the ceo of bp said venezuela was a part of the world that he thinks poses the biggest risk for the oil markets. >> most people would say the

gulf region. i would say venezuela. i think venezuela is defying economic gravity that's a wildcard. i won't comment on the situation in the gulf, everybody is talking about it i don't feel nervousness here about it >> you can head to cnbc.com to read bob dudley's full thoughts on the situation on venezuela and other global risks he sees as well. coming up on the show, u.s. president donald trump wraps up a whirlwind tour of asia and the philippines. we'll take stock of the president's time across the park after this short break my friend susie cracks me up. but one laugh,

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lebanon's president welcomed plans for hariri to return to the country soon hariri resigned as lebanese prime minister earlier this month. he has hinted he could withdraw his resignation if the shiite group hezbollah stops interference in conflicts in the middle east. willem is in dubai at the

global financial forum willem >> thank you very much egypt of the countries in the middle east is an icon of stability now compared to what's happening in saudi arabia and lebanon in particular. i'm happy to say we're joined by the chairman of cib, one of the largest banks in egypt i wanted to ask you about economic reforms in egypt. we them recently we heard nothing but praise. how are people of egypt with these reforms? >> thank you for having me we have to separate egypt into several groups the government has done an outstanding job of protecting people under the poverty line and the poor there are several programs that the government interintroduced a introduced to protect the people below the poverty line or low-income families.

the one that impacted the reforms were the middle class and the upper class. we saw that clear in their behavior of spending at the start of change. it's obvious that those reforms have a dear price to pay the most important thing is to protect the people who are unable this is what happened. for the middle class and upper class, it's a matter od producty start to catch up pre the levels of the reforms and see the impact of the reforms. egypt went through those reforms back in the early '90s the same pattern that we're seeing today egypt came out at that said croe nile if you remember back in '95 and '96. what i'm trying to say those reforms were long overdue. i think with the political willness of the president and the government they have taken the right decisions. it will be a while before we

start to see the impact in terms of the average income in society. but waiting longer for those reforms definitely would have been the wrong decision. >> so, if not reforms partially designed to help the most disadvantaged in egypt, but the prices of things like consumer goods going up and up. how does the government, how does the private sector, the financial sector help drive that wage growth that you say is needed >> well, let me talk about the banking sector i can tell you that the banking sector will notnsate 100%. the dangerous part is that you increase wages with the same productivity, then you will go to a vicious cycle

for the banking sector, banking profits has improved in 2000, at least in the first half of 2017. i think by the end of '17, early '18, you will see another increase to compensate over the coming three, four years we will catch up in terms of productivity as well as income bracket >> the investors you've been talking to since the reforms were enacted, what have they been telling you >> the main concern was about the financial strep strengths o and the banking sector, and the investment plans going forward everyone was quite happy that the right decisions are taken finally. but the main concern is the follow-up. do we have the political will to carry on those are plans for several years to come. >> leaving aside the political will, what about the infrastructure you are the chairman of the

international banking federation, with that has the on is the banking sector in egypt ready for foreign investment again? >> there are two things. number one, how did the banking sector deal with the shocking reforms, because that's big impact on the financials of banks. and i can clearly tell you the banking sector came out of those reforms in november of 2016 on solid ground we have a strong regulator, they are overtight on regulation. i cantell you that now we are in the phase of implementing basel iii, that will be implemented next year, 2018. we have up-to-date on regulatory side and they're careful with what's happening in the banking sector all banks ended up on solid ground complying now talking about the future investment, very investor who comes, they come looking for

financing. the banking sector in egypt is very liquid. loans to deposits less than 50%. that gives banks ample room to finance new projects >> we heard earlier from bill winters about the changing face of banking globally and in developing markets and how important fintech would be to that an accessing new customers is a bank like yours in a country like egypt able to find these new customers who are not currently banked >> egypt started very good plans for what you call the financial inclusion. part of it was to stop issuing to the national payment counsel which is head by the president himself. several decisions were taken in terms of facility, the bank opening, either virtual banking or an actual mobile regulation has changed. the central bank has established

a unit inside the central bank called the financial inclusion unit, which is very important as well to interact with banks and look at regulation i'm quite positive about the macro financial inclusion, as for cib, we are ready in terms of technology. we look at finteches and mobile operators and payment companies as partners. we collaborate together. finteches in africa generally are not disrupting the existing model, but in fact they are complimenting the existing model. >> thank you very much >> my pleasure >> talking there in many ways similar to what bill winters was trucking about at the same forum about financial inclusion and the role that fintech companies have partnering with banks very clearly enunciating that idea that banks will be working with these companies going forward not being excluded from the process. >> willem thank you very much for that u.s. president donald trump is wrapping up his asian tour at the asian summit in manila

trump is participating in the 12th east asian plenary session. he called for a strong and independent southeast asia. a new report allege that's president's son, donald trump jr. secretly corresponded with the wikileaks organization during the presidential campaign and in the months after that quick look at u.s. futures before we wrap up the show we have turned around quite a bit. the dow jones now expected to open positively to the tune of almost 10 points the s&p 500 seen off by 3.5 points, and the nasdaq off by 3.5 points the dow yesterday was capped by the losses that we saw by ge 7% to the downside worst day in eight years after the company revealed its transformation plan and the dividend cut which shocked many investors. i want to tell you today we have cpi inflation coming out of the

u.s. when it comes to european trade, looking friendly, snapping a five-day losing streak the cac 40 is up by 0.2% the dax adding on 17 points. a lot of earnings to contend with some better, some worse. the ftse 100 up by 0.2%. earlier at a session high given weakness in the power sterling after we saw inflation for october staying at 3%. stay tuned for more coverage from europe. we'll bring you the all-star panel of central banking, including janet yellen, mark carneymao ag a, ridrhind hmr. kuroda "worldwide exchange" is up next. for your heart...

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markets now, stocks pointing to a mixed open on wall street as investors remain laser focused on earnings and any new movement on tax reform. the world's most powerful central bankers are speaking together in germany. we'll bring you the breaking headlines. and going wild shares of buffalo wild wings are soaring on deal news we have the full details ahead it's tuesday, november 14, 2017. "worldwide exchange" begins right now. ♪