hello. welcome to "street signs." i'm carolin roth >> i'm joumanna bercetche. these are your headlines. european and asian equities halt the selloff after u.s. markets close a second day in the red. the ceo of morgan stanley tells cnbc tax reform is crucial to keeping things positive. >> they have to bring the rate down right now anywhere in the 20s would be a positive thing and be stimulating for the economy. >> qatar's finance minister

tells cnbc his government is opening an investigation into a report that there is a plan to de-value his country's currency. >> nobody will be happy about this but the good thing is they will not succeed. qatar is an open economy benefits and rewards don't pay off for sodexo revenue and profits came in shy of expectations sending shares down in paris. better news for bouygues shares hit highs not seen since 2008 as the company increases its gins we're roughly an hour into the trading session in europe. it's ban deen a difficult coupl days in the u.s. the oil sector has been weighing

in on stocks in europe, things are broadly shifting to the green. there's a broad sweep towards the most positives for most stocks in the indices. that points to a stronger day for the overall index up 0.4%. now, just some of that has been led by the stabilization overnight that we saw in some of the asian indices. as you can see, the nikkei posted a strong overnight session, up 1.5% shanghai a little bit weaker, but, of course, some strong performance in the hang seng that was led by the chinese tech group, tencent, which posted strong numbers for the quarter let's look at how european individual indices are looking this morning ftse struggling a bit, just below the flat line. i should tell you carney is speaking later today we have retail sales numbers coming up in about a half hour i should tell you retail sales has been a focus in the uk as we saw recently the brc numbers

disappointed to the down side. all eyes will be on how consumer spending will look up for the uk in a short while xetra dax up 0.5%. broad recovery green sweep behind me. every single sector in the index is having strong gains construction material up 1.3%. that's led as we spoke a bit before, the french construction company, bouygues is doing well and posting strong numbers for the quarter. the auto sector up almost 1% on strong car registration numbers. >> now, the finance minister of qatar has told cnbc any attempts to disrupt or sabotage the country's economy will fail. his comments come after u.s.-based publication, the intercept, revealed a document that allegedly reveals a plan for the uae to wage a financial war against the gulf states.

cnbc has not verified that report qatar has opened an investigation into those allegations. the uae was not immediately available to respond to a request for comment. willem marx joins us around the set. you were talking to the finance minister from qatar. those are serious allegations and a complicated plot >> yeah. this document, the u.s.-based news organization got ahold of it, shows the emiratis commissioned a plan from another entity that would set up an offshore fund, that yuf shore fund would then buy qatari bonds. it would hold qatari bonds already owned by the uae and buy credit dividend swaps assuring against qatari bonds at that point they would start transacting with other financial institutions not aware of what they were doing, trying to drive up the volumes in the bonds, so other market participants would

say what's going on? this is strange. i think there might be something wrong here, let's sell off, so the prices would drop for the bonds, the yields would go up, that in turn was in theory going to put pressure on the currency. because it's pegged to the dollar, the qatari real, the offshore value would fall, the golf would have to start injecting its own currency reserves to prop it up that would prove expensive for a country already struggling and spending half a billion dollars a week on world cup spending so i sat down yesterday and asked whether news of this scheme made him angry. >> i say this is completely unethical, it's against all international -- >> are you angry about it? >> i'm -- nobody will be happy about this but the good thing is they will not succeed. qatar is an open economy what they're doing is misleading international investors.

we said qatar has more than 190 nationalities living here, and countries are doing business in qatar, we all have economic and trade links. once a country threatens to do this, that is unethical, against international laws and against imf -- >> have they tried to do this? >> we don't know honestly, we put an official statement out immediately. we have said we will look, we are doing our own investigations here we will look at the numbers, look at the detailed information that we can -- if we can get any. and we will come out and we will be very honest we will take all the measures that are needed legally or pursue that to make sure those people are accountable to whatever action they're taking against our economy. >> so far you have no concrete proof it's happened? >> what we said is we'll have an

internal investigation to look at all the information that is available, and we will come publicly and tell exactly what is there >> what would your message be to banks or final institutincial is think being participating in schemes like that. >> i'm close to banks locally and internationally. if we look at where you stand on all international banks, we do business with them on a very normal activity. i don't want to give a bank's name or countries, because i don't have those types of information yet. all international banks are working with qatar closely we have a lot of international banks operating in the state so for us, business as usual exce >> and he says he thinks this crisis has been a turning point for the qatari economy because they found new trading partners.

he said he will take all measures necessary to protect the economy. and how they brought liquidity back into the system we don't get the brooks bro s broken out for us. some say this is bringing money back into the country that it needs to prop up the country >> why did the uae do this in the first place? they already cut off trading ties with them >> they have not done it yet, as far as we're aware this is a plan that's according to reports by the intercept what is clear is there has been a huge amount of damage to the qatari economy we heard six months ago from the same man saying to cnbc every dollar of damage to the qatari economy, we will see the same amount of damage to the emirati economy. that's not quite what happened why the emiratis would think this is a good idea, no idea >> sticking with the middle east

theme, oil prices are steady following a decline from earlier in the week. crude retreated from present highs as the iea warned of lower demand, but prices are supported because of opec holding the line on production. we are joined by arita we have seen a route in energy markets the last couple of days. despite the activity we've seen going on geopolitically, what do you think major driver is here is it a function of positioning or more fundamental drivers at play >> i would say the move up to $60 was very much a fundamentally driven move. we have seen phenomenal demand through the last two years, particularly this year and supplies have been falling thanks in part to opec but also non-opec supplies have not risen by as much as people thought. that's been justified. since then, after $60, we had a

flair up of geopolitics, saudi/iran relationships have deteriorated as a result we've seen a significant uptick in prices that's the correction you're seeing now some of those geopolitical issues have not gone away, but a bit not in the lime line just y limelight just yet so you will see a volatile range between 60 and 65, but this is the new range for brent as opposed to the 50 to 55 a few months ago >> we're coming up into the opec meeting at the end of this month. the expectation is that cuts will be extended into 2018 what's your view on that >> we do think the cuts will get extended into 2018 i think the market is becoming more skeptical about that because russia has raised concerns that maybe at 60, $65, u.s. shale will grow a lot more strongly and so there are a few news

reports out there about perhaps delaying the decision. it's not that they won't agree to it, but delay the decision rather than on the 30th november, delay to february and march. because the current deal only expires in march you get more information about the inventory situation. we, however, think we will get a decision on november 30th. because again, the stakes are h too high the market is expecting it if they don't do anything, the prices are expected to fall sharply. >> clearly the market is expecting that extension and that's why we're seeing bullish positions built up what happens after that? once we do have the extension what will the market be preoccupied with then? hopes for another extension or by then finally the market can sit back, relax and actually wait for the rebalancing to happen >> i think the latter, i would say. we have already seen an enormous amount of inventory draw down. even right now, the october draw

downs have been close to 2 million barrels per day. i would say we're pretty much at the end of that big inventory overhang cycle we are pretty much on average levels now once opec extends, you have that out of the way we should be tightening through the course of next year. q1, we will always build seasonality. after that we should be drawing. then it should set us up for a tighter market opec wants to make sure prices don't go up too much either, but it should be a tighter market next year than for the last three years. >> there are always these wildcards. in the past couple weeks we heard iran potentially being one of them. that could be bullish for the markets. i'm thinking whether venezuela could have a huge impact their production last month fell to a 28-year low how risky are those two countries and events around them >> i would say iran probably less likely in the sense that even if there is a flair up, we

don't necessarily see whether it's true sanctions or exports in production being lost in any case, iran has struggled to raise production over the last six months or so. iraq is probably a bigger issue now with the dispute between baghdad and kurdistan. we have lost a decent chunk, about 300,000 barrels per day of volume from the north. venezuela as you rightly point out, they are struggling default or not, their production is plummeting. the reason all of these become far more important is like i was saying, there is no inventory buffer left. opec's spare capacity is lower that's why geopolitics matters if you think about the last three years, we hardly had any geopolitical premium in the price. now because we don't have a buffer, geopolitics will matter more which can lead to more spikes in oil prices next year >> can i ask you about the divergence of news between the

iea and opec opec published a forecast for next year indicating demand will be strong and inventories on the decline. iea are signaling perhaps a demand from here forward will be soggy. where is the disparity coming from between the two >> i think the iea is using a price elasticity model, where they're basically saying because there's been a 10% increase in prices, that's why we see oil demand growth slowing down i would have to disagree with the iea over here. i think the biggest thing they're missing is the fact that the global economic back drop today is so much more supportive than we've had in 2011 to 2014 when oil prices were high. the consumer today should be able to absorb $60 oil it's not a problem right now we are seeing phenomenal oil demand growth we have been for the last two years. i think opec or i would say

energy aspects views are far more in line with opec than iea. we continue to believe, even if high prices slows down oecd demand growth, nonoecd, there's a lot of slack in india, middle east none of them did well this year. they should do very well next year >> always a pleasure speaking with you thank you very much for your time >> thank you >> we brought up a good point, the same point to neil atkinson from the iea when they came out with that report that did shock the markets i guess in a way he talked it down he said our forecasts, i don't know what opec's forecasts are based on, this is just a small cut in the demand forecast >> so the market overreacted a bit? >> maybe that's what he thought. clearly the market saw the disconnect between the opec forecast for deman ea's forecast. >> i think there has not been a

lot of geopolitical premium built into the oil curve is something worth considering. bouygues is trading at the top of the stoxx 600 after reporting a 37% rise in the nine-month operating profits strong performance in the telecom business helped to drive profits. forecasts for the telecom margins were also raised shares in french services group sodexo are down after it reported an increase in profits but missed expectations on the top and bottom line. it says its cost reduction plan is on track and that it expects sales to grow in the current fiscal year. weak margin guidance gave investors some pause shares in british land are trading higher after a rise in net asset value for the first half the property company reported a 2.6% jump in nav and maintains half-year profit at 198 million pounds and announced a dividend increase of

3% british land's ceo chris greg explains the impact of brexit on results. >> it's been a busy period for us you have to try to focus on those things that are controllable that's what we've been doing we have seen some people slowing down their rate of decisionmaking, if you'd like. but actually in the end people are taking the right space you can slow things down a bit what we've been impressed with, though we kind of expected it, was peoples willingness to commit, because at the end of the day they have to if you don't have an office, it's embarrassing. we're heading for a quick break. coming up, crisis in zimbabwe. president mugabe is effectively out of power while the army patrols the streets. the latest after this short break. d time to refinance?

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welcome back the lebanese leader is leaving

for saudi arabia for paris after accepting an invitation from french president emanuel macron. this following his abrupt resignation. how are deepening political tensions in the middle east impacting business confidence in the region let's get out to hadley gamble in riyadh for the latest >> i'm joined by the ceo of the iman hospitality group you are in dubai with some big-name hotels. you're looking to expand >> yes we're looking to expand. we are present in dubai only so far with 1 properties. we've embarked on an ambitious international plan we recently announced a big hotel here in mecca in saudi arabia 1,500 rooms.

we have projects in tegypt, ma'm di maldives >> are you looking to europe and the united states? >> no, not specifically. the gcc remains our home turf this is where the bulk of our expansion will come. we are also looking at china and india which are source markets for our hotels >> talk to us about what happens in the region when you have the kind of geopolitical tensions that we're seeing. is that impacting the brand? >> in dubai we are extremely fortunate. it's a very dynamic hotel market the hotel industry, we go by revenue per available room so, yes, the hotel industry is impacted by what's going on around it's a healthy sector. it's growing fast. supply is growing fast also in dubai. we have tremendous prospects i think about expo 2020 and all

these cultural venues that are opening, like the opera in dubaduba so a lot of good things are going on >> talk about what makes emarr hospitality different. >> we have mid market contemporary brands. we opened the first one a year ago. we are already at 4, with another 6 in the pipeline. it's a very informal, gen-y oriented brand based in cities we have vita hotels, our upscale brand, and address, our luxeky bra luxury brand in dubai. >> you are looking to expand in china.

stability is important to what you do >> yes dubai is one of the safest places on earth. we know this every day when you walk through the streets, go to restaurants, it's extremely safe, extremely pleasant when i observe tourists wandering around in the city or on the beach, they're very relaxed. it's a great place to be >> when you see something at the global forum so many young saudis looking to innovation and saudis as basically the way they want to leave what other plans do you have other than your mecca hotel for this country do you think saudis will be working in a hotel sector? they're looking to employ. >> we have a second project in jeddah, vita hotel saudi arabia is a big country for regional standards, with tremendous potential we're looking at primary and secondary cities to expand we're encouraged by the projects which have been recently announced. the red sea project. so, saudi arabia opening up for

tourism. all of these are great trends and developments, which we want to participate in. >> so a lot of momentum behind what the crown prince is trying to do? >> most definitely >> we'll hand it back to you guys in the studio >> that was hadley gamble reporting from riyadh. he seems to be unfazed by the geopolitical developments there. >> definitely. the u.n. secretary-general has called for calm and restraint in zimbabwe where president mugabe is confined in his home by the military the army has taken power as they attempt, in their records, to targ in their words, to target criminals who surround the president. it is thought that the military move was triggered by the sacking of zimbabwe's vice president earlier this month the country's finance minister reportedly has been detained there are several reports that mugabe's wife, grace, has fled

for manibia. zuma has sent envoys to speak those in zimbabwe. listening to our reporter this morning, chris bishop who has been reporting for all of us this morning, he says things are calm and he still think there's is going to be a peaceful resolution to this this is quite significant given that the army moved n seized television stations, they have arrested or they have taken mugabe into house arrest, and apparently his wife has either fled or left the country and never came back. a peaceful resolution would probably entail that the vice president, who was ousted and fled to south africa, would come back, but still would essentially be the same party and status quo

>> some people are seeing positives in this, in that it may spell the end of almost a 30-year rule single handedly by mr. mugabe and potentially his wife who is also in the ron then >> i wonder if this will take the country out of complete isolation. some of the only friends that zimbabwe what are to be found in china, but not anywhere else in the western world. i don't know whether this is the continuation of the status quo with a different man at the helm we'll have to wait and see one expert tells cnbc that zimbabwe's hold on power is completely over. coming up, we'll speak with ecb executive board member yves mersch after the break. okay, i never thought i'd say this, but i found bladder leak

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i'm joumanna bercetche >> i'm carolin roth. these are your headlines

european and asian equities halt the selloff after u.s. markets close a second day in the red. the ceo of morgan stanley tells cnbc tax reform is crucial to keep sentiment positive. >> the u.s. has to bring the corporate tax plan down. they have to bring the rate down right now anywhere in the 20s would be a positive thing and be stimulating for the economy. >> qatar's finance minister tells cnbc his government is opening an investigation into a report that there is a plan to de-value his country's currency. >> nobody will be happy about this but the good thing is they will not succeed. qatar is an open economy benefits and rewards don't pay off for sodexo the french catering firm reports revenue and profits came in shy of expectations sending shares down in paris trade. better news for bouygues shares hit highs not seen since 2008 as the company increases its guidance

good morning if you're just tuning n le g nik retail sales numbers for october. month on month numbers were better than expected, up 0.3%. that was versus 0.7 decline in september. the forecast was for 0.1% increase month-on-month. now the bad news uk retail sales year-on-year falling for the first time since 2013 by in large this shouldn't be much of a surprise given that inflation has been very high at 3%, and we have tough comparisons and the whole brexit uncertainty is probably weighing on the minds of uk consumers sterling/dollar not moving much on the back of this.

1.3166 how are futures looking? >> yes so let's look at how things are opening up today we have had a difficult couple of days for u.s. equities. it looks like sentiment is more positive today s&p 500 looking to open ten points higher. dow jones up about 85. seeing a rebound after a couple of days of declines. let's look at u.s. yields. there's been focus on this from the market what we've seen is that the two-year note has been under scrutiny the front end of the yield curve has sold off a lot as markets ready themselves for potentially a more aggressive tightening from the fed that meant the difference between the two-year yield and the ten-year yield, the curve of that slope has been flattening quite aggressively a few people have been watching out for that as signs that the market is getting nervous about whether or not the fed are tightening too quickly and whether or not the economy can sustain that i should tell you some analysts

out there are revising upwards their forecasts for u.s. gdp perhaps this flattening is a function of the beginning of a tightening cycle switching to europe, let's look at the picture there and see how things are looking ftse again trading around the flat line. nothing major there. carney does speak. xetra dax, strong day by cyclicals we did have strong results out of bouygues, the construction sector and there's been focus on the banking sector when it comes to peripheries the last couple of days on the back of the flattening we've seen in the yield curve overall. let's look at the foreign

exchange market. euro/dollar, bouncing off 1.18 dollar/yen recovering. the dollar trade has been sending that one higher. sterling hovering around that 1.3170 mark. not much on the day following the retail sales data. back to you. >> joumanna bercetche, i'm looking interesting comments coming from angela merkel. she has a tricky task upon her now. forming that jamaica coalition she's been talking to reporters and said that we face a difficult task to bridge our differences, but she believes that we or they can reach an agreement to work together in a new government once again she says we have very, very different positions if it works, i think it can work, there can be a positive result, but this is a difficult task >> and axo-weber says europe's economy can withstand a

withdrawal of monetary stimulus. i talked about the ecb policy just yesterday >> there are 17 quarters of growth if you look at a broad set of economic indicators, all the lights are flashing green. the european economy is in a better place now and the central banks are starting their exit from this accommodative, unorthodox extreme monetary policies. that's the right course of action to be taken >> let's continue with that theme of central banking annette is in frankfurt with a member of the ecb executive board. annette? >> thank you so much, charl larn i'm joined by yves mersch. thank you very much for joining us >> thank you >> let's talk about the pace of the asset purchase program, which was, of course, reduced, the announcement from january

onwards. can we expect this pace will stay in place until september then >> we have had a discussion. the results of this discussion we have taken into consideration our increased confidence that we are in the path which will lead us ultimately to our objective for our inflation aid. however, this path is still needing a certain amount, certain amplitude of monetary accommodation. i think this was a view that was broadly shared within the governing council. based on this analysis, we said that the improved situation is not warranting the same amount of purchases but it would nevertheless also

be a certain element of present in the market that would be warranted. that's why we extended the horizon of our purchases then we also said in addition that as we are progressing on our path, our reaction function is symmetrical that is that if there would be additional negative shock, we would not hesitate to react to that as we are symmetrical, the country would also be the case so our reaction function is a symmetrical one, and it will have the necessary flexibility to react in proportionate way and take into account the necessary cost benefit analysis, which is also changing over time >> so, next time, to put a date on the assessment, next time

would it be march when there will be the new staff projections coming in? when you potentially could recalibrate the program? >> first will be december. there we also have broad macro economic projections i think no one would be overly surprised if we would again slightly revise upwards our projections for growth and we also have said that our inflation forecast would see that we would like at the end of the year have base effect induced downfall of inflation, which now looks like it would be less pronounced and less steep that might have been feared at one moimtment

this will be reflected in our communication. by our toolbox is not limited only to asset purchases. our asset purchases also increasingly have a forward guidance effect on our interest rate we have three elements that will be important that is the continued net asset purchases, the increasing amount of the stock of assets that we have, that will be reinvested and that is also an important instrument for monetary policy, and third our interest rate. as the situation improves, there will be a gradual normalization out of unconventional monetary policy instruments towards more

conventional monetary policy instruments. but this gradual path is not there to disrupt the market. and i would say from today i do not expect that the market would be right to anticipate further increase in our asset purchases at the end of our program. >> let us talk about the inflation goal as well because the fed is, of course, officially using about 2% target should we also start that discussion in the eurozone apparently it's quite hard to achieve the 2% >> if you don't like a target, you change the goal. i am not so convinced that this is necessarily contributing to confidence in the public and to be transparent about what you do we attach great importance to

explain to every citizen what we do that is also why we choose hicp rather than scientifically maybe more warranted other definitions of price pressures because we are accountable to the public with a simple measure that every citizen can every month follow whether we have achieved our goal. we say we are confident we are on the right path and that we are confident we will achieve also our inflation mission, our inflation aim. and the only thing is that we have to do it gradually because for the moment the achievement of this goal is still predicated on an amplitude of monetary accommodation, which is still quite high >> let us look at the monetary accommodation angle, or under the angle of the design of the asset purchases, also going cr

should end the corporate bond buying, before buying sovereign debt because the corporate bond market doesn't need it >> i hear critics saying exactly the contrary so i hope that all those critics will make it to become central bank governors in the eurozone, and maybe then we won't have different composition leading to majority in the governing counc council. for the moment we do not have such a discussion. let me now however say that we take one thing seriously we have to minimize market distortions. we have to act according to functioning market economy, which implies that we do not interfere with market price

formation. we translate that in our speak to market neutrality it is true that in the corporate bond sector, the float of existing securities is -- may be in europe more restricted than it is in other jurisdictions so from that point of view, we have to be particularly careful in respecting this guideline and limitations that we have set ourselves to remain market neutral. >> let us have one last question on the european recovery and also on the apparent divergence when you look at the health and the economic power of european economies. germany is in -- is risking overheating, italy is just barely catching up where are we and what's your view here? >> my view is that we look at the facts.

since 1997 the divergent among european growth patterns has never been as small as it is today. the european recovery is not only broad-based across sectors, it is also broad based among jurs jurisdictions in the euro area we still encourage some countries they can catch up faster and do a real catch up instead of simply lagging behind but even the country you mentioned had the last quarter which was quite impressive when i look at its historical achievements >> thank you very much for your time >> thank you very much >> thank you >> with that, back to you. it will be another interesting year 2018 when it comes to central banking. we will watch that closely from here back to you. >> annette, thank you very much for that

let's wait for december and see what the ecb does then back to the bond market. u.s. two-year yields het the s highest level since 2008 investors are digesting the details about the pace of tapering i spoke to charles evans about the balance sheet reduction. >> that's a discussion the committee will continue to have. you're right what we have done is announced we will begin to allow assets to roll off simplest way to describe this is we'll start off basically at $1 billion a month rolling off for the first quarter, then we will get up to 50 billion a month then over the course of about three, four years, then the balance sheet will be a lot closer to what we think is a sustainable level. your question what is that sustainable level. that has yet to be determined. we need to think strategically about how we want the balance sheet to support the economy

is it going to be in the background like we previously had in the 2000s where we had scarce reserves, so the new york desk had to actively manage the fed funds target would we prefer to have a slightly larger balance sheet with excess reserves that might provide more financial stability support for depository institutions and the financial system it's a different operating environment. we need to think about that, how it fits with the other policies. we're truly going to learnactua lot as we roll off assets. we have new board members coming in it's a strategic decision so more to be determined there >> i think this discussion about the ultimate size of the fed's balance sheet is one of the big drivers here and if you remember, when they started the tapering of the reinvestments, there were questions about how long this would go on for and what size of

the balance sheet they would stop that has been implications for where yields end up. if you think of the ten-year yield, it's a function of short-term interest rates but also investors do need to get compensated for holding longer dated bonds. all this comes back to the fact that if the fed actually is happy with a bigger sized balance sheet, they'll taper less, which means bonds don't need to sell off as much to account for it that may be one of the drivers behind the slackening we've seen in the sense that the market has taken a bearish view of what tapering would mean for the bond market, but essentially we're scaling some of that back as they're saying maybe the ultimate balance sheet side will be higher. >> you make some good points, but looking at those levels for the ten-year, 2.3, 2.4%, 2.36% this morning, that, to me, does not match an economy growing at

3% at least in the last two quarters i know donald trump wants to bring it back to 4%. there's still the persistent disconnect between what the ten-year note is pricing in and what the economy is showing us we are not seeing a lot of inflation -- >> and central banks globally have bought trillions worth of assets in the last couple of years. that's led to a decline in term premium everywhere >> we're told we have to wrap up this discussion. we can continue that after the show we'll be back in a few minutes with the latest on the battle over the u.s. tax reform bill. first, let's take a break for a quick drink of water >> japanese companies have announced investments in the united states worth more than $8 billion. 17,000 jobs. they don't have water. that's okay.

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welcome back two sfl two senate republicans are out with criticism of the latest tax cut bill senator ron johnson said he would not support the current versions, and susan collins does not like the bill. we will hear from one of the dissenting voices later on, tune in for our interview with republican senator ron johnson at 13:30 cet morgan stanley ceo james gorman says u.s. taxes in the 20% range would give a boost to the economy. speaking to cnbc, he seemed confident a deal would get done. >> the administration knows that if they don't get this tax plan done, 2017 was a wasted

opportunity. there's a republican congress, a republican administration, this was a call plank of the administration's platform. i think a plan should get done but it's not certain the question is how complex do you want to make this? do you want to redo all the elements from state tax, charitable giving, so on do you want to do that or stick with a simple corporate tax plan change with a few add-ones to it, and then move forward and make further adjustments in coming years that's the tension, complexity versus simplicity. >> the market seems to be laser focused on the corporate tax rate bringing it down to 20% is that achievable is that possible given the very divided, politically divided congress >> put aside partisan politics, just look at what is appropriate. corporate taxes in the u.s. are at 35% in the uk, they're 20% most other major jurisdictions

around the world they're between 15% and 25%, averaging close to 20%. for the u.s. to be so much off market is going to lead to corporations doing things you would not normally do in terms of shifting revenues offshore, the kinds of inversions we saw a few years ago. so the u.s. has to bring the corporate tax plan down. they have to bring the rate down right now anywhere in the 20s would be a very positive thing and stimulating for the economy. >> is there a risk inflation could overheat >> i don't think so. we've seen frankly deflation around the world for several years. we are still seeing incredibly low rates of inflation the worry has been it hasn't heated up enough at some point it kicks you can't have unemployment approaching 4% and not have wage pressure so at some point wage pressure kicks in >> when do you think that tipping point will arise >> you know, i have been wrong on this to put it out there.

i thought it would have arrived by now it's just had to see what the job growth we're getting that doesn't kick in in 2018. >> fresh from his trip to asia, u.s. president donald trump has reiterated his america first policy when it comes to trade. trump pulled the u.s. out of the tpp earlier inthe year and has threatened to pull out of the nafta agreement with canada and mexico he also was pretty thirsty he took how many swigs of water? >> a lot >> he did. a look at u.s. futures we are seeing the dow jones expected to open up to the tune of 90 points that's it for today's show i'm carolin roth >> i'm joumanna bercetche. "worldwide exchange" is coming up next. some air fresheners are so overwhelming, they can...

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. bouncing back. stocks pointing to a higher open on wall street following yesterday's triple digit decline on the dow. activist investor nelt neso peltz winning his proxy battle with procter & gamble after a vote recount. and why mattel just rejected hasb hasbro's latest takeover offer it's thursday, november 16, 2017 "worldwide exchange" begins now. ♪ >>