hello. welcome to "street signs." i'm carolin roth these are your headlines zimbab zimbabwe's president is reportedly taken into custody after tanks roll into hirari. altice shares open higher, swing negative and then swing back into the green. airbus is flying high after it secures a record deal worth around $50 billion to sell 430

jets to indigo partners. good morning you're watching "street signs. glad you're with us once again on this wednesday morning. we're roughly one hour into the trading session on the stoxx 600. let's see how we're faring we're seeing quite a lot of red. off by 0.2%, continuing the climbs we had yesterday. yesterday the stoxx 600 was off 0.6% we saw the dow, the s&p and the nasdaq lower asian trading was fairly subdued with negative buys we saw some weakness in iron ore prices also the weakness, the softness we've seen in oil prices over the last 24 hours, in part because of the build up in u.s. inventories but also the warning by the iea that the demand is going to be somewhat weaker for

2017 and 2018. these are all factors weighing on sentiment as the stoxx 600 is bracing for a seventh day of declines let's look at the european markets. you can see the dax has fallen back below the 13,000 handle the ftse 100 off by a half of a percent and similar for the cac 40 we want to show you what the sectors are doing. basic resources are off by 2%. really bearing the brunt of the losses along with oil and gas because of the factors i mentioned. banks also, given this is a cyclical play, also off by 1.2%. the only sector in the green is telecoms, up by 0.2% we will talk more about altice in a short while first back to another top story. president robert mugabe is reportedly in custody as zimbabwe's military claimed

control over the country witnesses report hearing explosions in the capital, tanks blocking roads and long queues at banks the military says the president and his family will be kept safe let's get more analysis on this with charles laurie, head of countryi countryi country risk at verisk maplecroft is this already a coup that we're seeing >> the events in zimbabwe have all the hallmarks of a coup, you a strong military presence in the city, the president's movements restricted and certain government structures have been secured by military personnel. we may see more evidence of it

later this afternoon, but there's no doubt at this stage it's a strong military intervention >> charles, it's sort of unclear who is behind the coup we're seeing officially that it's the military chief, mr. chuwenga who is battling for success along with mugabe's wife grace. this could also be a status quo coup by the former vice president who is now in south africa and something they may be promoting. what is your view? >> i think it's unlikely that governor chuwenga is seeking power for himself. i think it's more likely he's seeking to wind back the block and bring the former senior vice president back into the country and have him be in the key

position to follow mugabe. it's unlikely that this is being promoted by the south african governme government there's no evidence i've seen to support that >> so this would be the military hoping to bring back the ousted vice president we have seen reports that the military leader was on a china visit, and this was a normal china visit. any word on if china was in on this action because they have much stronger than anyone else diplomatic and economic ties with the country still >> zimbabwe's relationship with china goes back to the 1970s and spans a number of areas of government for one on the diplomatic side but also in terms of business operations the chinese have a big hand and large stake to play in zimbabwe.

it's very likely they would know all the details from both camps. the chinese government does not want to be involved in any kind of scenario where they're seen to be manipulating the operations of a foreign government but it's certain that any individual who hopes to succeed mugabe would need the support of the government. so i expect clear communications from the mugabe camp and the chuwenga camp to the chinese >> is this the first step of taking the isolatedcountry out of that state they've been in for 37 years, or could they low them deeper into chaos >> zimbabwe for the last 10, 15 years has been in a state of suspended animation, economically and politically we can say as of today the situation is dramatically

different from what it was yesterday and the day before the degree to which this is an improvement is too premature to say. what you could see is a period of uncertainty where some individual is jockeying or several individuals are jockeying for power. we can definitely say is mugabe's hold on power is now over we are into a period of uncertain rule in the country. >> what are the reverb braces across south africa? we heard from mr. zuma, he's concerned about this getting out of control are we looking at more instability that could also sweep into south africa at this point? >> this is no doubt a political earthquake that is reverberatin around south africa. zimbab zimbabwe's match nations have been happening for decades now zimbabwe is a close economic

trading partner, has close political allegiances with south africa as well so south africa will be monitoring the situation closely. they do not want to see a military takeover for a long duration >> charles, thank you very much. charles laurie from merisk maplecroft >> mohamed el-erian may be the white house's pick for federal reserve vice chairman. the former pimco ceo is under consideration as the administration works to fill multiple vacancies at the fed. if nominated he would take over from stanley fischer who resigned for personal reasons in october. fed chair janet yellen says that members of the public could be confused by the central bank's policies. speaking in frankfurt yesterday she said the size of the committee leads to democratization of fed policy where it can be difficult to separate individual member opinions speaking at a panel, yellen laid

out the process of fed decisionmaking >> i think it is important to have people sitting around the table who bring independent-minded views to the making of monetary policy. so it is not an aout car autocr process, it was under chairman greenspan. we have healthy policy debates, yet we usually are able to reach a consensus about our broad policy strategies, and most moves that we make most of the time annette is at the euro finance week in frankfurt. going back to yesterday's panel, it was a long, lengthy but insightful panel we heard from mr. draghi saying forward guidance was a success >> yes, he was saying forward guidance was a success and also

adding that there's no reason to discard it given that it was so much of a success. but i'm now joined by a very special guest, who is the former president of the ecb, jean-claude tricher. i will discuss all sorts of things with him. thank you very much for joining us let's start with a question on the world economy. looking at some parameters, the world economy looks more vulnerable than in 2018. >> i was mentioning the fact that despite the fact that growth is active, i wouldn't say buoyant, but satisfactory, we have some indicators on leverage, global leverage that are not that reassuring. in particular, when you compute the debt outstanding, public and private over the consolidated gdp of the planet, we are now at a level which is higher than

immediately before the financial crisis there is no time for complacency. that's the message >> let's look at asset prices. over many markets in the industrialized world, asset prices are close to record highs. are you concerned about asset price bubbles? >> i think you have to look at each segment of the market very carefully to qualify any segment of, you know, having some kind of a bubble. but i have to say that looking at the markets and the assets markets as a whole, it's absolutely clear that we have such a long period of low interest rates, such a long period of purchases through qes in the various periods it's not surprising that the prices of the assets, financial assets went up. it was the purpose, of course, of this action of the central

banks in order to avoid depression and help the economy recover and to help inflation to be more visible. so, all thisexplainable, but the present level of some assets prices calls for vigilance and prudence and caution on top of the fact that i mentioned that we are highly leveraged at the level of the planet i don't mean particularly in that country or this country, but at the level of the planet there is a leverage which is very high. >> let us look at the ecb. the ecb has announced baby steps towards an exit of the ultra loose monetary policy stance this should speed up given the strong recovery. >> they just decided to diminish by half the level of monthly purchases. so it seems to me this is in line with the observation they made that the economy in europe is going faster than what was

anticipated by the imf and by all, i would say, international institutions so, there is something which is going on in europe which is exactly what was -- what the ecb was aiming at. and i think from that standpoint, again, the decision was good now, we will see all the decisions of central banks are databased. we will see how the economy evolves. but i am reasonably confident on europe in particular >> i think confidence is back in brussels, it's back with people watching europe. looking at one of the reasons why confidence is also back is mr. macron of france how confident are you that he can really restructure france and really kind of follow up with all these reforms >> this is an immense challenge, of course, for france, because a

lot of reforms are necessary in this country he was elected on the basis of such a program he was clear both on reform in france and on the construction he was not putting his flag in his pocket, as we say. so, here we have this challenge. it started with two important reforms that are not easy, that we are not overwhelmingly supported by the people of france i think it started very well, obviously. now we have other reforms to operate in france. if we want to get back on full employment and growth, as in germany, it was done through reforms. and through wise policies. so, i am reasonably confident again. but you have europe also because france also, the friendship between france and germany sparked the european proceeding.

if germany and france puts their own friendship to the disposal of all europeans, and that is, of course, something which is absolutely fundamental >> just one last question on what role germany will play probably in the next four years. we see the coalition talks starting on friday here. but we also see that it might be actually a different germany for the next four years. perhaps a little bit less pro european are you concerned about that >> we will see what is clear is that there's a negotiation, and we know the sensitivities of the csu, of the labor and of the green some are more open than others when i look at the german public opinion, the support for the eu, you know there's a lot of debate on the ecb, which i found a little bit unjust, frankly speaking but the euro is backed by public opinion in germany it is one of the highest levers

of backing so i'm confident that germany doesn't see a future either in another place other than europe. this is, in my opinion, a fundamental feature of europe today. >> thank you very much, sir, for your time. >> thank you >> carolyn, with that, i'm sending it back to you a confident note from mr. trichet. >> annette, thank you very much for that after the break, we'll speak to the ceo of the group leading the economic city. causing a lack of sharpness, or even trouble with recall. thankfully, the breakthrough in prevagen helps your brain and actually improves memory. the secret is an ingredient originally discovered... in jellyfish. in clinical trials, prevagen has been shown to improve short-term memory.

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get netflix, youtube and more. now on xfinity x1. xfinity. the future of awesome. welcome back to the show saudi arabia's opening its doors to overseas entrepreneurs by allowing them to establish businesses through a new licensing scheme this is the latest move in saudi crown prince mohammed bin salman's drive to improve the economy. let's go out to hadley gamble in riyadh >> a lot of exciting news coming out of this global forum 3,000 delegates from around the

world are talking about artificial intelligence, technology and how that will change the face of this country and the word i'm joined by the ceo of king b abdullah economic city cau walk me through this announcement you said you will be starting with $20 million of funding talk us through the process. >> we are excited of having global entrepreneurs we believe the future of the economy is the knowledge economy. we can't do that without entrepreneurs from around the world. so we offered incentives to move and come to saudi arabia it does not require regulatory approval, but also access to market, free office space, free education for their children, anything they ask for. >> that's a pretty incredible proposition. >> i think so. it's hard to say no to it. today we handed over 11 licenses to different entrepreneurs in different sectors. the driver is the college for business and entrepreneurship.

that is an incredible platform for education and entrepreneurship >> talking about co- co-ed education. >> yes >> talk about what we've been hearing as far as the neon development. 5$500 million if anybody knows about building a city in the desert, it's you what are some of the challenges that will be faced >> first of all, it's an exceptionally exciting announcement you talked about linking three continents together. the size of the project, but just the sheer ambition in terms of technological advancement so many things we're talking about. whether it's fourth industrial revolution, talking about the driverless cars, which we will look to because they are into the future nobody knows how the plan will look with those innovations included in them really the kingdom needs new cities we are at 30 million population, growing to 40 million in the

next 13 years. you will need ten more so projects like neon will enable the population to have different new urban environments to benefit from. >> we're a few weeks on from this investment forum in riyadh, saw all the big names, a lot of excitement but it's based around what the crown prince is trying to do, not just with this but the future investment of this country. talk me through that a lot of questions surrounding what we've seen happening in riyadh the last few weeks in terms of the corruption crackdown. but in this forum i'm not hearing anything negative about that i'm hearing more positive energy >> the fii initiative had a ripple effect around the world i was in new york. every ceo i met was talking about fii, and how the kingdom is different we'll -- this is ushering in a new era of openness for saudi

arabia part of it is the rule of law, how you apply it across the board. there's a general call for making sure that the laws that are applicable on the little guy apply also to the big guy. so there's that messaging that is happening and i think ultimately they increase transparency in the country, increase openness, and that will help us and achieve the sames of vision 2030 what are the aims of foreign investors who attend the conference, then a lot of questions about what's not just happening foreign policy-wise with the kingdom and iran but also in this corruption crackdown. there are worries that you come to saudi arabia and you don't know what will happen to your investment is it safe to put your money here >> i think it's absolutely safe. we continue to invest year on year we saw a big industrial push this year by other investors into industrial building plans i don't see an issue there

20% of the people in prince al salman college are foreigners. that's where you should put your money. >> i will hand it back to you. >> hadley, as always, grade stuff. thank you very much for that moving on, let's get back to some corporates. shares in altice, they're swinging wildly. just over an hour into trading the stock initially rallied followed yesterday's selloff but then turned negative it's trading at the top of the stoxx 600 after the buy rating was reinstated on the stock. yesterday the shares were drive ton a three-year low amid a leadership change as well as concerns about the company's debt levels and customer turn. look at the stock, up by 6%. now, airbus has received a massive order for 430 of its

a-320 jets worth 49$49.5 billio at list prices indigo partners is the buyer on behalf of a number of airlines including wiz air and frontier airbus's stock rising on the deal, up by almost 3%. the company says the deal is preliminary but should be finalized by year-end. and its competitor receiving a big order as well. not quite as big but still big flydubai is purchasing 175 boeing 737 max jets. the airline said it made a $27 billion commitment for the jets plus purchasing options for 50 more quick look at the european equity markets we are under water the cac 40 is off by a quarter percent. the xetra dax really feeling the brunt of the losses here, off by 0.7%, back below that 13,000 level. what we're seeing across european markets this morning,

something we also sent to asia and european markets was weakness in the energy complex that is leading to weakness in banks and basic resources. we're still in the thick of earnings season sogesting some . coming up, ubs expecting the dollar to further weaken against the euro we'll find out why live from the ubs conference after this short break. 60% of women are wearing the wrong size pad and

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hello. welcome back to "street signs. i'm carolin roth these are your headlines robert mugabe is reportedly taken into custody after tanks roll into harare in what could be a military coup. a roller coaster first hour

of trade for altice, shares open higher, then negative, and then back into the green after a brokerage firm rates it as a buy. airbus is flying high after it secures a record deal worth around $50 billion to sell 430 jets to indigo partners. all right. good morning i'm just looking at some data points out of the uk we're looking at uk unemployment data for the third quarter we're seeing that for the month of october the adjusted jobless claims are up slightly to 2.3% of the work force. we're looking at the three mo h months september average earnings up 2.2% we have sterling rising after the uk labor market data wages lagged once again.

inflation is high as we saw yesterday at 3%. that means a real squeeze on the consumer we're seeing average weekly earnings up 2.2% year on year in the third quarter. that is slightly higher than the poll of 2.1% september alone we saw an increase of 2.6% i guess i don't quite see a number for the unemployment rate that should have held steady at 4.3% a quick look on sterling/dollar. 1.23, on the back of that 1.32 line given the slight beat in the wages data yesterday we saw that big slide on the back of inflation holding steady quite surprisingly, but also keep in mind that we're dealing with a bit of u.s. dollar weakness as yields have been declining across the board overnight. so this is part of the picture as to why we're seeing more pound sterling strength. quick look at u.s. futures

we are -- wow, seen down by 92 points for the dow jones nasdaq seen off by 27. the s&p 500 expected to open lower to the tune of 10 points yesterday stocks did end the day lower. but i should tell you they still close near session highs we recovered throughout the session. at one point the dow was down by 168 points part of that weakness came from ge when it came to the dow, but in a larger sense the energy complex given the drop in oil prices with crude settling down 1.9% the worst day in five weeks. this morning we're seeing weakness across the european markets. that's a continuation of the oil softness we're seeing as prices are down by a half of a percent this morning basic resources pulling us lower given weaker iron ore prices in asian trading. the ftse 100 off by a half percent. the xetra dax off by 0.76% want to go back to the currency

markets. we showed you pound sterling which is rising, but look at this pair. the euro/dollar storming pass the 1.18 level this is as we see continued inflows into european equities at the same time we're seeing some weakness in the u.s. dollar the chorus of republicans calling for alabama senator roy moore to drop out of the race is growing louder gabe gutierrez has more on the story. >> reporter: tonight amid a growing political firestorm a to republican is publicly floating idea of attorney general jeff sessions as write-in alternative to roy moore. >> alabaman who would fit the standard is attorney general, totally well-known and extremely popular in alabama >> reporter: with a growing number of republicans urging moore to drop out,

sessions says he believes the accusers. >> i have no reason to doubt these young women. >> he said i'm the district attorney of the county, if you tell anyone about this, no one will ever believe you. >> reporter: the latest, beverly young nelson claims moore signed her yearbook after the assault, calling her beautiful girl. >> i never did what she said i did. i don't know that woman. >> reporter: despite the signature looking similar to moore's signature in other public documents, his campaign said today it's fake. >> no, it's not his signature. he did not sign the yearbook we're doing our best to have that document verified >> reporter: in gadsden, arizona, residents say he hung around this local mall greg worked there in early '80s. he said that moore had been banned from the mall and spoke to local police officer about it >> he said, if you see him, let me know, i'll take care of it. i questioned why, police officer

wouldn't tell me after he left, i asked my manager, and he said he had been bothering girls in the mall. >> reporter: as moore's opponent, doug jones, largely avoids the controversy, the race may be tightening. >> i think he's a little different than i believed him to be >> reporter: but moore clearly has strong support >> you want a leader, you accept some problems that they have >> as mentioned in the story, jeff sessions has been touted as a write-in candidate for the election, but the attorney general has other matters at hand he has been meeting with members of congress to discuss his involvement in the russia investigation. pete williams reports. >> the attorney general insisted he's following his own path despite repeated calls from president trump to investigate hillary clinton.

>> should the president of the united states make public comments that might influence a pending criminal investigation >> a president cannot improperly influence an investigation >> okay. >> and - >> respond - >> i have not been improperly influenced and would not b improperly influenced. >> reporter: last night the justice department sent a letter to the justice department saying some of thos clinton issues are being investigated and could lead to another special counsel. but today the attorney general seemed to lower expectations. >> i would say it looks like is not enough basis to appoint a special counsel. >> reporter: sessions says he now does remember meeting with george papadopoulos about wanting to go to russia. that's a revision of sessions' earlier testimony that he knew of no context of trump surrogates and the russians. he said news reports refreshed his memory and he responded angrily to suggestions that he keeps changing his story >> i don't think it's right to accuse me of doing something

wrong. i had no participation in any wrongdoing with regard to influence in this campaign improperly >> reporter: besides, he said, the campaign was largely a blur. >> it was a form of chaos every day, from day one. >> surprise, the obamacare debate is back and it could hindary lohin hinder a long-awaited tax overall. gop senators wanted a healthcare mandate in there to pay for the tax cuts mixing obamacare with the tax debate complicates the road to a tax bill because republicans are not unified on what to do about healthcare tracie potts joins us with reaction this morning from washington it seems to only get messier from here. >> it does that's because in part the senate wants to do this. the house has not included it in

the bill while there were already a number of things they had to reconcile, this big one tops the list because healthcarereform was on the back burner, but it's been pulled into this tax debate what this would do is get rid of the mandate, the requirement to get insurance. also get rid of the penalty if you don't get insurance. by doing so the congressional budget office has said the government could save billions of dollars and that's money they could use to balance the big tax cuts that the president is pressing for however it could also leave 13 million americans uninsured over the next decade. that's something that democrats are already jumping on healthcare back front and center here on capitol hill amid the tax debate as they're trying to get things done between now and the end of the year. >> the only good thing that could come out of this is the repeal would lower the federal deficit by 3$318 billion over a decade but still do we think that this

tax bill can still pass before year-end obviously we knows there no agreement on repealing obamacare. it was dead in the water what about the tax bill will it see a similar fate >> this could be a challenge for the tax bill they already had a few things like property taxes and other issues that needed to be reconciled this was a big one with the house so far not on board with this repeal of the mandate, it's a partial repeal of tax reform or of health reform in this tax bill. they repealed the mandate, but there's still other things that would not be addressed so this complicates things trying to get it done on a tight deadline >> just another layer of complexity there tracie potts, thank you very much for that. on a programming note, our u.s. colleagues will be talking taxes and more with house speaker paul ryan, that's at

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. ubs expects the dollar to continue weakening with the fed having the biggest impact on the greenback. joumanna bercetche has the latest take it away >> joining me is my friend, the co-head of rates and strategy at ubs. u.s. dollar, i feel like it's become a barometer for tax reform, yes, no, yes, no what is your view of the greenback from here? where is it going? >> so, firstly, i have to say for the past year we have argued that the dollar has peaked it's actually expensive if you look at most metrics with a few exceptions. the dollar has been receiving a boost. the potential for tax reform, the higher yields, and the fed hiking, but that is not the main

driver going forward in fact, you have seen that as the curve has been flattening the dollar that been losing. and the main reason for that is "a" the rest of the world now is converging cyclicly. "b," the u.s. curve may be mispriced in terms of how quickly it expects fed hikes, but the ultimate amount of hikes it expects over the next five to six years is about fair. so the needle doesn't move so much from the fed. long story short, we see a dispersed dollar the dollar against central banks that are either going to be dovish or that have actually been priced in an overly hawkish way relative to what they may deliver may appreciate so dollar/yen higher when it comes to the dollar against the euro, the main benchmark, itwill probably weaken and weaken a lot. we see the euro at 1.25. what do you think on fixed income there's been bearishness pumped into the u.s. treasury market

what do you think is achievable in the short-term, 3% or 2% on ten-year yields? >> we're somewhere in the middle towards the slightly higher end of the range there are two elements worth highlighting the first is that this is the first year in our analysis and forecast where we see yields slightly above the forwards. we're not expecting a bubble burst or u.s. spike, but yielding towards 2.70 by the end of the year. the reason for that is the front end of the u.s. is a little too low. one place where we receive the most push back from clients is as we expect yields to rise, we expect the curve to flatten. basically the place where we think the treasuries are mispriced is the front end, from one-year to three years out. when you look at the long end forwards, something which you're familiar with from your past

life when we used to work together, when you look at long-term forwards, they're anchored at a fair level and pricing about right the amount of hikes that the fed will deliver throughout the cycle and the amount of quantitative balancing unwind that you may see. >> we're seeing a big flattening in the u.s. curve already. >> yes which we expect to continue >> switching to europe, periphery debt is a focus more t for the markets with the ecb stepping back from the asset purchase program >> i think you're asking the main question. this is what our clients keep asking us, whether the end of qe will mean pressure on the periphery. actually me and my colleagues, we have done some work on this we have shown the impact of the balance sheet, the purchase reduction is going to be contained and the damage that that could do on debt sustainability is probably secondary. when it comes to the periphery,

the one thing you need to worry about is the politics. there are some political events that can trigger volatility to the end of the year. the italian election the peak of that i don't want to lose sight of the main message the main thing that ticks the needle in terms of peripheral debt is growth given the fact that europe continues to grow, continues to grow above trend, these places have a long way to catch up. they will still be producing decent amount of growth. this year, next year are the first years we will figure out that italian debt to gdp will be declining. from all the noise, this is one place where we see most opportunity in fixed income. the periphery. >> switching gears just a little bit, china has been a focus of yours. do you think the rebalancing that's taken place in the economy will have an impact on the currency trajectory from here or in fixed income we have seen a rout in chinese bonds

recently >> i think the market is underestimating the quality change in the output in china partly because of policy design, partly because of a process that has begun many years ago gdp in china is less driven by investment and that means our economies are pencilling in a bit of a slowdown, tightening, all these things will manifest but i have to say we will probably one or two years outlook back and see a less volatile gdp trajectory, more consumption driven which will ultimately mean that the currency will trade close to the broader dollar trajectory and the bigger opportunities will be in equity space. and the parts of the equity

market that do have exposure to that story of the ever important chinese consumer leveringup an spending some of the excess savings they have built over the past few decades >> thank you very much for your time >> thank you very much >> that was the cohead of rates and fx stlrategy at ubs. i'll be back shortly speaking to charles evans from the fed >> looking forward to that. back to the big story preoccupying markets over the last 24, 48 hours, it's the oil price. let's check in on how we're trading now. wti crude is off by 0.9%, same goes for brent crude at 61.66. this is down to a couple factors. we're seeing that inventory build up in the u.s. is still rampant. on the other hand we heard from the iea roughly 24 hours ago, they said that demand forecasts have been revised down slightly for 2017 and 2018, that was at

odds with what we heard from opec the day prior we're seeing quite a bit of profit taking when it comes to oil stocks let's look here. statoil off by 1.3%. total off by 0.8 bp is also off by1%. i should tell you basic resources are also having a pretty poor day given weaker metal prices in the asian trading session. fitch has joined snp declaring venezuela in selective default. they have missed payments and now faces pressure from investors to find a solution venezuelan leaders have blamed the united states and large lenders for the crisis saying they're waging an economic war against them let's get out to nancy hungerford still at abu dhabi. i'm looking at data saying venezuelan oil output last month fell to a 28-year low. that's not going to make this

whole situation easier, is it? >> that's right. for the time being when you look at what's happening in the price of oil today t appears markets are focused on the supply fundamentals, also a bit of a warning from the iea on demand yesterday moving markets you can't ignore the situation around venezuela given the vast resources that are in the country and what many insiders are saying have been squandered due to the political situation in venezuela we talk a lot about what that means for the supply dynamic but there's also the question of the oil services companies operating in venezuela with pdvsa, i had a chance to speak to two of those companies here, that includes weatherford. i spoke to the ceo there, and i spoke to lorenzo simenelli, ceo of baker hughes, a ge company. i asked at what point does the situation turn where you may consider cutting your loss there's and stopping operations? take a listen to what they had

to say >> venezuela is truly an enigma for us in the service industry most of the service industry has been there for 75, 80 years. you know, it's got the largest reserve base out there in the world. to ignore t walkit, walk away fm that as a service industry, we do so at our peril i think all the context of the discussion earlier, if we're having a looming supply problem that based on underinvestment, venezuela is a significant part of the solution to the ultimate problem. the unfortunate thing in this low-price environment, you know, we have got to get paid. cash flow and returns are important to us. to continue to work and do things where we don't get paid, get the returns, that's very,

very challenging i think also, of course, the recent sanctions that have been put on the country are making it very difficult we're kind of the guys in the middle we're the ones being sort of -- being squeezed to put the squeeze on them. we have to deal with geopolitics. we have to deal with disruption. we have to do what's best for all of our shareholders, make sure we uphold safety of our employees and also government regulation in the countries in which we operate at the same time you have to have a long-term view. i think it's very dangerous to have principles whereby there's an edict of i'm going to do this, and it's 100% swift change we've got to navigate, be nimble that's what we're trying to do in venezuela

it's a difficult situation we've got to operate within the sanctions. at the same time there's a lot of resource, there's an employee base there so we're finding structures that are effective in a way that allow us to continue to operate. >> there you have it two ceos saying they're taking the longer-term view, not just in venezuela, but that's been the message overall from industry leaders here, that given the current price environment they are still looking at ways to shape up because the message i got from that panel was that in some ways the lower for longer environment they're facing is encouraging these companies to make the changes they need, to make the adjustments. and i had one chairman on the panel saying that a sharp adjustment in the price at this stage to the upside would be perceived as a negative thing because of the fact that they've undergone this restructuring and that would take away from some of the painful steps that have

already been implemented that was the message there the chairman also saying there's a theme in some ways here that is stop complaining, start acting, and that is certainly what these industry leaders have been doing. i can tell you, it's ban fantastic few days here in abu dhabi. unfortunately steve is not here to say good-bye from the conference he's on another panel moderating that you can catch portions of that panel and all the coverage we've beenu dhabi on our website. >> as always, great to see you ge shares plunged more than 12% over the past few sessions after the company announced a major dividend cut and restructuring plan john flannery expressed his disappointment in the acquisition of the energy business of frances alstom in 2015

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wall street futures in the red as a drop in oil over renewed concerns over tax reform weigh on the markets. the fight to end obamacare comes roaring back as the senate amends its tax plan. and airbus flying high after securing one of the biggest aviation deals in history. we have details ahead. it's wednesday november 15, 2017 "worldwide exchange" begins right now. ♪ good morning warm welcome to "worldwide ex