welcome to "street signs." i'm willem marx. these are your pedestrian linhe. the nasdaq suffering the brunt of a volatile selling state side. discord over the northern ireland brexit deal. theresa may is expected to wrap up talks with jean-claude juncker without any major differences. >> some things require further negotiation and consultation >> this is not a failure

this is the start of the very last one, and i'm confident we will have quality. lights, camera, action cineworld reagrees a takeover of regal in the u.s. for 3$3.6 billi billion. and goldman sachs goes shopping for groceries, sending shares in tesco and morrisons sharply higher as it upgrades its view on the stocks bringing you the latest eurozone pmi numbers last month 55, the forecast for this month was 56.2, tha is the latest, 56.2. the euro weakening against the dollar, just over 0.1%

look across the rest of the european markets we can see it's a flat day of trading. so far a lot green and red balancing themselves out on that board there across the stoxx 600, which is down slightly, just under 0.1%. if we look at specific markets across europe, we can see the ftse 100 is up almost a third of a percent at this stage. the xetra dax in germany is flat the cac into p paris, down 0.1%. the foot ftse mib up 0.20 food and beverages are doing well up almost half of a percent. real estate is also a mover upwards. looking at the foreign currencies, particular focus on sterling ahead of uk pmi data coming up. we had a lot of movement yesterday on the back of that

announcement that there was no real deal between the uk and the eu you can see sterling down more again this morning almost 0.2%. the euro weakening against the dollar the dollar strengthening against the yen as well as the swiss franc. let's talk more about brexit it was not a failure, that's how president of the european commission, jean-claude juncker described the latest round of brexit talks a deal appeared close at lunch time yesterday but it fell apart after intervention of the uk government partners. ireland expressed concerns about may's offer to ensure post-brexit regulatory alignment on the island of ireland the uk leader said progress had been made but admitted a few issues remain. >> we have had a constructive meeting today, both sides have been working hard and in good faith. we've been negotiating hard, and a lot of progress has been made.

and on many of the issues there is a common understanding. but it is -- it's clear crucially that we want to move forward together on a couple of issues some differences do remain which require further negotiation and consultation and those will continue but we will reconvene before the end of the week. and i'm also confident that we will conclude this positively. >> and with a little more than a week until the next eu leader summit, jean-claude juncker said there was still time to broker an agreement >> i'm confident we can reach sufficient progress before the european council on the 15th of december this is not a failure. this is the start of the very last one i'm confident we'll reach an agreement in the course of this week the breakdown in talks followed intervention from the dup leader, arlene foster.

she reiterated there could be no regulatory divergence between northern ireland and the rest of the united kingdom >> we have been clear, northern ireland must leave the european union on the same terms as the rest of the united kingdom, and we will not accept any form of regulatory divergence which separates ireland economically or politically from the uk >> i'm joined by christian mueller glisman. do you think this uncertainty about brexit goes away any time soon >> i don't think so. i think we expect eventually there will be a transitional deal, but i think the next few months will be difficult it looks like time might be running out, because the data in the uk is getting worse. and at the same time it feels like the political uncertainty is also continuing to be market focus. there's a lot of concern about stability in the government. it is making it very difficult to invest in the uk for

international investors. >> we saw sterling nosedive after that referendum, and again after article 50 was triggered another nosedive this morning. is that an opportunity for european investors to pile into uk equities? >> one has to have the view that t that goes away in the near-term. there does not feel concentration on the long of the short side based on positioning it feels neutral. for us, the currency on a forecast basis still has a bit more down side to come because the economy is doing worse right now. >> let's talk about the u.s. we saw a slight fizzle the end of yesterday's trading there there had been some bulls out there optimistic about what was going on we've seen this long, unbroken run. how unprecedented in your view is this bull market? >> i mean, we were just writing a note on that i think if you look at the performance of the standard 60/40 portfolio, 60% s&p, 40%

bonds, this year is one of the best on record i think you are dealing with a bit of a bull market in everything because you have this goldilockses scenario when inflation was anchored and still growth improved. that's not unusual if you look back in the last 100 years, the most comparable periods are the roaring '20s, post world war i and the golden '50s, post world war ii. from that perspective it's unusual because you didn't have a war in the last few years but a similar backdrop we think significant structural changes have happened since the '90s are helping up. the fact that macro has become less volatile w that inflation has become less volatile, so you have longer cycles, but also the central bank buffering the idea that central banks are always coming to the rescue when the business cycle is showing problems means you get longer

cycles and much lower volatility, which means risk adjusted returns are attractive. like wloo hat we saw this year, which was better than 2009, this year is a better year for balance funds than 2009, the recovery year, because volatility was so low and bonds rallied alongside equities i don't think you can translate that into next year. but the macro backdrop is favorable. >> you are talking about the structural drivers of this continued bull market. you mentioned the roaring '20s that didn't end so well for many investors. what's the possible downside of the situation? >> i think the key concern we have, the lack of inflation you have in the real economy, but the inflation you have in asset prices and eventually there's a concern that that gap has to close and we just watch carefully now what is happening in the labor market in the u.s. which is heating up

what's happening broadly in labor markets. we are also looking at other sources of inflation like commodities. so you have the opec cuts. it feels like the oil price as a result has a stronger footing. you get more backwardation, low inventories, which generally increases also the risk if growth continues to surprised on t surprise on the upside you get the oil price. the difficult thing about inflation is it has an expectation element. right now inflation expectations are anchored if you do see a trend establishing itself, it has a risk of feeding on itself. when we look in history, both e recessions since the '90s and the bear market since the '90s had an inflation element so usually inflation picks up before the bear market starts. what are your worst case scenarios? what models are you basing that prognosis on >> our best case for next year is that you still are dealing with a relatively good market back drop. macro is strong.

growth is strong inflation remains relatively anchored and gradually picks up. economists have the view that the phillips curve which measures the unit of inflation for unemployment is much more flat than it has been in previous cycles. you had some idiosyncratic factors, which depressed inflation in the u.s., in particular this year, but they're rommi irolling off. the continuation of the idiosyncratic factors should lead to a gradual economic pickup for equities, they can often deal with that, especially if it's not a sharp increase in inflation. but i think it would become a drag on the bond portfolio, because if you start to see inflation picking up at the same time you see the end of qe, that would really argue for higher bond yields in the back end. so you see from multi asset portfolios, a more difficult year for equity investors, it doesn't have to be we still see attractive returns

for next year. eventually with the evaluations we had, eventually in the next three to five years we will have to face a bear market. that's not our view for next year the important thing we always say as well as if you don't expect a bear market, you still need to be mprepared for corrections. as we were saying, you have a lot of bullishness built up now. there's always a risk that an unanticipated shock is coming. evaluations are a bit on the high side now. >> we will talk more about tax reform so stay there, if you will that's christian mueller-glissman talking about brexit for more background on the northern irish border, head online to cnbc.com now, uk new car registrations have fallen 1.2% in november from the same period a year ago the british car industry association called the eighth

straight month of declines a major concern. coalition talks between the cdu and the spd will start next year only if spd members give the go-ahead that's according to their leader, martin schulz who said the democratic party would explore whether and how the formation of the government is possible previous coalition talks between the fdp and the green party fell apart a few weeks ago. campaigning for elections in the spanish region of catalonia begin today. the election is set for later this month, december 21st. recent reports show support for pro-secession and pro-union parties are almost even. don't forget to e-mail the show, streetsignseurope@cnbc.com you can also tweet us and follow us on tweeter, streetsignseurope@cnbc and tweet me directly at willemmark dominz for your heart...

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the u.s. supreme court has allowed president trump's entire ban on visas from certain muslim majority countries to be enforced only two of the nine high court justices dissented on the decision, this came after lower courts blocked two previous attempts by the trump administration to enact that ban. the president's supporters hailed the move as a victory for national security. house and senate lawmakers have begun wrangling over a tax reform plan that reconciles versions from both chambers. sticking points are a tax rate and estate taxes congressional republicans hope to get a bill to president trump's desk before christmas. christian is still with me i want to ask you about that really what is the impact of this tax reform based on the version that's passed the senate this weekend do you think for

investors? >> i think our economists put a probability of it coming true until the end of the year, at 90%. if that's the case, there would be some positive impact on growth they estimate roughly 30 basis points for the next two years on gdp growth from that perspective it's not material and one could argue that some of it is already priced with regards to equities, the impact is larger you have the earnings impact and strategists estimate roughly 8% to 10% of incremental earnings growth it's a one-off so you see a base effect to some extent and after that you're not seeing a sustained improvement >> i guess the question is for a lot of people in the u.s. in particular and around the world, does this really deliver the kind of economic boost that republicans have promised it will >> to be fair, the economy is doing incredibly well. and i'm not sure if that's purely due to the political side and the policy side, but it's a first thing which the government

delivers, and the trump administration saw that they'll probably try to sell it like that the trouble is what will they do from here into next year we have midterm elections, and if you look at the polls now, the chances of them losing a midterm election is still quite high after that, further policy initiatives door is starting to close. we think the next step on the policy side is nafta nafta, they want to potentially abolish that could be a negative thing. especially on a global basis it might not be negative for the u.s. directly and for selling it to the public, but it's not necessarily positive for global risk sentiment and it feeds back into what we discussed before, which is potentially inflation if you start to remove the trade linkages and increase barriers, that's getting costly. that has the risk of creating inflation. that's not helpful for keeping the bull market in check

>> you say the economy is doing well in the u.s. that's the case for many asset classes that makes it difficult for the out-performers, everyone across the board is doing well what does that mean for the big pension funs and return targets? >> if you have a macro back drop as good as it gets, the market and evaluations start to reflect that eventually. valuations are pricing at a favorable macro back drop. just by virtue of that, your long run return potential gets more limited you have never in the last century have had equities, credit and bonds being as expensive at the same time it's unusual equities are not as expensive as they are in the tech bubble, but during the tech bubble bonds were cheap would have said equities are expensive. so i rotated more into bonds and i get good carry previously equities may have

been expensive and credit was cheap. 2015 is a good example credit had a big correction. now we're at a point where credit,bonds are lease less expensive that increases the pressure to go to the asset class which has the potential to most overshoot evaluations, and that's equities always late cycle. you have the chance that equities f yields are as low as they are now, overshoot further. >> the risk there is what? >> the key risk is recession risk if you look at historical bull markets, they end with a huge shock, which could be a war or something unpredictable or a cyclical downturn. the risk is then this kind of inflation, which you currently see in asset markets spills over to the real economy, drives inflation, forces central banks to tighten policy, which increases recession risk that's a timing problem. in the near-term, equities can still do well, potentially

overshooting valuations, but you are having the lay tent latent s >> brian moynihan talks to cnbc later today, and cnbc will also be sitting down with blackman's steve schwarzman u.s. special council robert mueller in the u.s. has reportedly asked deutsche bank to share data on accounts held by u.s. president donald trump roeuters is reporting that a subpoena was issued weeks ago.i.

>> reporter: the president 2,000 miles from washington but unable to escape serious questions about what he knew and when about his former national security advisers lies to the fbi. the president simply saying he feels badly for michael flynn. >> hillary clinton lied many times to the fbi nothing happened to her. flynn lied and they destroyed his life i think it's a shame. >> reporter: setting aside that james comey testified hillary clinton didn't lie to the fbi, the focus now did president trump obstruct justice and could this tweet be used against him? quote, i had to fire general flynn because he lied to the vice president and the fbi the problem, if the president knew flynn lied to the fbi and if he did later ask comey to lay off flynn like comey says, but which the president denies, he could open himself up to accusations of obstruction of justice. charges some democrats are already raising.

>> there is a credible case of obstruction of justice against donald trump. >> reporter: now, a new and controversial defense from the president's personal lawyer. john dowd tells nbc news he's the one behind the president's tweet. that it's ignorant to say the tweet admitted obstruction and going even further he says a president cannot obstruct justice at all because he has every right to express his view of any case. experts say dowd may have a legal argument, but politically a president could still be in trouble. just ask richard nixon or bill clinton, who faced impeachment by congress for obstruction. >> the president may not be able to be prosecuted while in office, but it's absolutely relevant whether or not he committed obstruction of justice. >> reporter: so where does all this go next that depends on what mike flynn is sharing convicted but cooperating. >> that was hallie jackson we just lost our guest from goldman sachs. we can talk about the company now. it raised its outlook for crude

oil price for 2018 citing strong commitment by opec members and low inventories. they forecast brechnt will hit 6 a barrel goldman explained it saw risks skewed to the upside in 2018 due to potential overtightening. in asia, japan is ramping up its missile defense system as north korea accelerates development of long-range missiles that fly over japan and beyond makiko joins me from tokyo >> yes japan will overhaul its missile intercept command system starting next april to cope with advances in north korea's weapons technology the current system detects incoming missiles via radar and data from american military satellites and determines the rocket's trajectory and point of impact if the missiles are expected to strike japan, interceptors are ordered to shoot them down, but

many believe the system does not have the capacity to deal with the high powered trajectory. the system upgrade will begin next april with a budget of around $95 million. when completed in six years, the system will have an improved chance of neutralizing missiles on a lofted path be better at picking out multiple missiles at once or intercepting those that provide few warning signs before a launch japan is also said to be acquiring missiles with a longer range that can hit targets more than three times the range of the weapons it currently owns. the japanese government plans to include funds for the purchase in next year's budget. obtaining such weapons would give japan the capability of striking north korea missile sites for the first time prime minister abe repeatedly stressed there's no change in

japan's long-standing policy of using force for its self-defense only but north korea's havenrect displays have prompted japan to look at the risks. >> makiko, thank you very much forev for joining us before we go to break, i can see the sterling is down a half percent. the ftse is trading slightly up, more than 0.1% coming up, more of our coverage from the conference in london we will sit down with howard shore next ♪ (news anchor) downtown traffic is still bad. expect massive delays. (radio channel changing) (news anchor 2) all lanes on highway 50 remain closed at this hour. (news anchor 3) the stats are in and this city leads

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turns liquid to gel... ...for incredible protection. so i feel protected... ...and pretty. new always discreet boutique. welcome back to "street signs. i'm wilfred frost. these are your headlines the tech selloff extends into europe with apple suppliers under pressure after the nasdaq suffers the brunt of the selling in a volatile session stateside. discord over the northern ireland brexit deal. theresa may is expected to wrap up talks with jean-claude juncker without any major

agreements >> some differences do remain which require further negotiation and consultation >> this is not a failure this is the start of the very last one, and i'm confident we will reach an agreement. lights, camera, action cineworld agrees to a reverse takeover of regal entertainment in the u.s. for 3$3.6 billion and goldman sachs goes shopping for groceries, sending shares in tesco and morrisons sharply higher as it upgrades its view on the stocks going to bring you some uk services pmi data now for november we saw last month 55.6 the expectation forecast for this month was 55. we're seeing the number out now at 54.7.

that is not so much of an improvement against last month sterling this morning trading quite aggressively off the dollar, much weaker, though it's come back slightly over the last half hour or so if we look at u.s. futures, pretty flat day so far. looking like it's going to be a flat open across the united states the implied open up slightly for the s&p 500. the dow jones looking to open 57, 58 points higher the nasdaq opening a little softer by the looks of it. we look at european markets, we can see the ftse 100 is up almost 0.25% the ftse mib is trading pretty flat staying in the u.s. a number of stocks continue to hit record highs while others lag behind. what of investors in 2018?

mike santoli takes a look. >> reporter: it's the time of year and that moment in a bull market when investors are asking to lock in gains or let them ride the index is on an eight-point win streak and only revenue in nine straight mondays once since 1980 stocks have begun pricing in the expected windfall from a big corporate tax cut and the economic news has been unusually good for months. the strong 2017 rally has also left many investors portfolios tilted more heavily towards stocks than planned. is it time to trim back or bet the market can deliver further rewards in december and beyond december has a well-earned reputation for generosity in years that most resemble 2017 in terms of performance through november, december has produce gains of around 2% on average. december has never once been the weakest month of any year. which is encouraging given the worst month of 2017 was march when the market was down less than a 0.1%.

still for 2018 it makes sense to expect a less smooth ride for stocks even if the bull market carries higher still the tax cut will produce relative winners and losers, and the effect on a humming economy could have unintended effects on interest rates and inflation that might restrain boosts to growth if the market does grow choppy in the coming weeks and months, there's a bright sign for investors looking to stay in stocks after such a long calm rally as we've had this year, the first sharp pullback is rarely the start of severe or lasting downturn at least that's what the market history books tell us. >> want to give you clarification on those uk services pmi numbers they were forecast at 55, last month they were much lower, they were 55.6. that i now looking to be 53.8 for the services all sector pmi was significantly lower, 56.7.

staying in the uk, tesco shares are helping the country's retail sector move higher, after analysts at goldman sachs upgraded the stocks to buy from sell goldman sees margin pressure in the uk market easing and it will boost margin expansion ahead of previous forecasts the british market watchdog is investigating provident financial's van financing unit it will focus on processes that assess customers affordability and cineworld sealed a deal to buy regal entertainment for 3$36 billion. the reverse takeover would be partly funded bay eed by a 2.$2n rights issue in the philippines, the government ordered french drugmaker sanofi to stop the sale of a dengue fever vaccine last week they said the drug in question could worsen the

disease. authorities in manila launched a investigation into a government immunization program which saw 750,000 children vaccinated with that drug. sanofi said there had been no reported deaths related to the vaccine yet. yesterday in the states, it was announced that cvs was buying aetna for $69 billion the deal will combine one of the biggest healthcare chains with one of the biggest insurers. cnbc spoke to both ceos who said the combined entity could bring sweeping changes to the u.s. healthcare industry. bertha coombs has more details >> reporter: cvs and aetna's ceos say they tried to offer consumers better deals on prescriptions through their business partnership but now together they'll be able to offer even more value >> it's really the perfect time to bring these two companies together to create a new healthcare platform that can be easier to use and less expensive

for consumers and create a new front door to healthcare in our country. >> reporter: the firms say that front door would open up more seamless care. so employers and consumers won't have to navigate as much paperwork and clinics and cvs's 9700 pharmacies would become a place for basic preventive care. they would help coordinate benefits and prescriptions >> they can ask for some help, get guided through the system. we can make the insurance the back room of the operation we can waive prior authorizations, we can waive copace as copays as people use the system in a way that's more effective. united health has gained market share with large employers by offering an all-in-one medical and pharmacy plan at better prices. anthem develops its own unit, one benefit consultant says the trend could mean employers could have little choice beyond a

all-in-one plans. >> you'll have a couple big entities with significant power, and in certain market segments, they may start to make it very difficult to carve out pharmacy. >> it could save them money, but with cvs and aetna, employers and consumers will also want to know whether the clinics will mean more limited networks >> is care that was potentially going to the physician's office now diverted to the storefront, but certain a question i have as to how it would all pan out as it moves forward. >> cvs is hoping the deal will been proved in the first half, but tells analysts building out that new front-door health care model could take longer than the first year to really take off. bertha coombs, cnbc business news. the chicago board options exchange will launch its bitcoin futures contract on sunday beating out rival cme group which will start trading futures

of the cryptocurrency a week later. this after the s.e.c. denied applications for bitcoin etfs on the grounds that the cryptocurrency was unregulated ed tilly says he plans to reapply. >> i've never seen a chart of a security where the price really had a vertical pattern to it by the coy bitcoin is the most vertical that doesn't end painfully this is a toxic concept for investors. >> that was not ed tilly, that was stephen roach who issued that stark warning on bitcoin. moving on, we will encourage to you e-mail us about bitcoin

the address is streetsignseurope@cn streetsignseurope@cnbc.com, and you can tweet us at streetsignseurope@cnbc. still to come, move over, through a new costume marty in town tanya breyer will be talking about fashion awards with nadja swarovski. >> fashion is so important fash slun ion is at the root of swarovski. our first client was queen victoria the fashion industry is crucial to us. we are trying to adorn and glamorize our own clients within the fashion industry but also we are trying to create that bridge between what the fashion industry has to offer with swarovski and what the jewelry has to offer to customers.

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. welcome back to "street signs. not a failure. that's how the president of the

european commission, jean-claude juncker described the latest round of talks with theresa may. there was a deal but it fell apart after intervention from northern ireland they expressed concerns about post-brexit regulatory alignment on the island of ireland sterling has traded lower against the dollar this morning, following the talks. you can see it's down as much as a half of a percent. it's pulled back slightly from an hour ago. we're joined this morning by howard shore, the founder and executive chairman of shore capital. you have not been someone to criticize brexit that frequently when you first started campaigning, i suppose, on the issue. you are sure that britain would have all the cards, you said repeatedly because of the size of our imports from the rest of europe, brit woon have moain wo leverage we've seen concession after concession from britain, is that because you were wrong or

because the british government under theresa may has played their cards very badly >> of course theresa may has a weak government as a result of not winning an outright majority we all know it was a gamble that she took and lost. relying on the dup weakens her position on the irish negotiation. i do feel that, you know, ireland is a close trading partner. we enjoy excellent relationship with dublin. this is something the government should have been discussing for the last 18 months i don't think there should be brinkmanship at the last minute to bring the discussions forward, because this is probably the most complex aspect of a necessary solution in order to have a negotiated exit from the eu what i always said was the economic aspects would work out. i predicted we would make a

divorce payment over a number of years. i mentioned the number of 50 billion over ten years, quite some time ago. it was always entirely predictable that we would need to pay something in return we would get a favorable trade agreement including access for financial services what we're discussing here is a complex political issue in relation to part of the uk and our closest neighbor. >> you describe that long-term tapering payment as a bargaining chip in the past has wh what has theresa may gotten for that chip she bet on >> i would expect the 50 billion that's been mooted would not be payable if there's no trade deal no one signed an agreement i would fully expect the government to say that nothing is paid unless everything is agreed >> the pound seems to be tracking the highs and lows of these negotiations it's down more than half a percent this morning

does the british prime minister have a responsibility to business as well as to taxpayers to try and maintain that stability that her party talked about so often during the last general election >> look, you know, the world today is obsessed about short-termism, everyone is tweeting, they want to know the news within three seconds. many people like myself who thought that leaving the eu is a good thing, we were thinking about the long-term economic prospects of the uk over the next 10, 20, 50 years, and whether the pond moves up a half percent in intraday movement is irrelevant >> you said you would like a much lower corporate tax rate in the uk i spent last week in the republic of ireland where people touted and defended their 12.5% rate given that jeremy corbyn is riding so high in the polls, given that he is a threat to a

conservative government if there was to be another general election, do you think there's the chance of a lower corporate tax rate any time in the future? >> look, you wouldn't have predicted that corbs corbyn woue a realistic change 12 months ago. so things change in politics we've seen the congress and senate in the u.s. in principle agree to a tax reform bill where corporation tax comes down to 20%. there's a global movement towards trying to attract business and lower corporation tax. i think what's vital for london is that we have an environment that attracts international business because we have a favorable tax environment. and i think there's every prospect that that will happen in the future. there is always a risk of a corbyn government and clearly the risk of a corbyn government is much greater than the uncertainty over the brexit negotiations which i think you're sort of focusing on and

highlighting >> you're talking about the attractiveness of the uk for international businesses it's okay for the goldman sachs and the lloyd blankfeins of this world to joke about relocating aspects of their business outside the uk what about the smaller and medium-sized enterprises in the uk that don't have the hundreds of lawyers, accountants, hr specialists who can help them move operations elsewhere? >> look, we did a survey among the uk companies employing less than 250 people, over 90% of those businesses don't do any trade whatsoever with the eu two-thirds of them felt that the eu regulation was inhibiting their business growth. >> i'll ask you one more final question, mr. shore, ahead of this eu leader summit in a week's time, what do you think theresa may needs to do to make that happen, to make these talks move on to talking about trade

>> she needs to leave the room we need to find somebody who is a better negotiator who has more credibility on our side of the table. >> mr. shore, founder and executive chairman of shore capital. sounds like you're calling for the resignation of our prime minister in the unite the kingdom. discovery communications is taking majority control of its joint venture with oprah winfrey. the u.s. media company paid $70 million for an additional 24.5% stake in the oprah winfrey network, buying it from the mogul harpo. win frfrey will stay on as chief executive through 2025 sticking with the world of u.s. media, "house of cards" is returning without kevin spacey netflix said production on the final season will begin in 2018 with robin wright in the lead. the streaming company suspended the show following a series of sexual misconduct allegations against kevin spacey since we're talking about the

world of entertainment, tanya breyer joins me to talk about the latest fashion trends and the businesses around them >> that's right. good morning thank you very much for having me on. it's extraordinary that kevin spacey news, it's almost like life imitating art, because robin wright's character was taking over any way. >> makes life easier for the show writers >> i think it does on to the fashion news the stars of stage and screen were out last night on the red carpet celebrating the best of british fashion. london's royal albert hall was the setting for the fashion awards 2017. one of the biggest events in the industry's calendar. however with the fashion industry contributing 28 billion pounds to the uk economy, it's not just about the glitz and glamour. we spoke to some of the industry's biggest names about how fashion is weathering the impact from brexit

>> we certainly or hopefully proved our worth globally now. to have begun my career in london is quite something. it's also for the future generation to see we're here and active and dominating in the creative stakes, but we're commercially viable, and we have that strength now. >> so much of england, britain with the great britain is that we are leaders in the world of fashion. if you look around the world so many top makeup artists, hairdressers, fashion editors are really english it is fantastic to be here tonight to celebrate that. >> everything that i go is based around london and the energy that's here, the creativity here i would never knowingly choose to leave the city. i think, you know, there's huge global brands being born, grown, raised from this city. you don't have to go anywhere. it's the unique energy here that makes so many successful brands what they are.

>> we employ 880,000 people. but we're leaders in creativity and innovation that's why we can celebrate this international industry at the royal albert hall, putting british fashion to heart >> we understand where we need to be post-brexit, and i imagine as i have always said, the industry has resurgencies in every arena. i'm confident, i think people have to be careful, cautious in terms of how they're operating their individual businesses. >> the thing about london is i think it's celebrating fashion there's -- it's got a slight sense of humor to it and i think that the brits are good at having fun and they don't take it too seriously. >> what sort of contribution to uk is fashion making >> when i started, gdp was about 21 billion, now it's 28 billion. not bad for year-on-year growth. >> well, joining us now is nadja

swarovski, member of the executive board at swarovski thank you very much for joining willem and i here on "street signs. i know it was a big night for you and swarovski last night at the fashion awards it seems like it's just gotten bigger and bigger. this is the second year at the iconic royal albert hall what is driving that growth behind the awards >> it's been -- it's wonderful to be here good morning >> good morning. thank you for coming >> as we heard here from the people you interviewed last night, london has been incredibly creative melting pot. i think it's such an incredibly important source within the fashion industry i think the fact this has grow so much, that the awards have become not just british-centric but truly international. if you compare london to other fashion centers like new york, paris, milan, it's so much more international. that has to do with britain's

history, the commonwealth. but it makes so much sense to celebrate the internationalism, the design schools we have here are extraordinary. and of course also the craft that we still have in the ukbso. >> how important is it for swarovski as a brand to partner with the fashion awards. >> swarovski's heritage is within fashion swarovski's first client in 1895 was queen victoria she wore swarovski crystals on her grown. and we are so proud to have seen those crystals on her grown and also being worn with her diamond jewelry. swarovski is very strong about continuing that tradition and heritage within fashion. it's so important for us to work hand in hand with fashion designers. we feel we make that crystal perfectly, we are reliant on the artistic vision of the designers

to implement the crystal in a beautiful and impactful way in their creations. events like last night, the platform of acknowledgment, recognition and celebration of the best talent within the fashion industry is so important, because it truly also keeps the competition up within the fashion designers, and that leadsordinary products >> it's a lot about collaborations you had the award last night, you gave the swarovski award for positive change. why is that something that is coming up within the industry? it doesn't normally have a place there, does it >> well, no. but everything is so evolutionary we really feel certainly the role of the female has changed in society in work, as we heard earlier, in "house of cards. it is right now, i think, a time of female empowerment but also the time for voices to be heard. last year we have established this award which was received by

the former editor-in-chief of italian vogue who has done so much beyond her job as that editor-in-chief. the same goes this year for maria gracia drury of the fashion house dior her work has been extraordinary at fendi, valentino. >> i will have to leave it there. thank you very much for joining us today nadja swarovski, the member of the executive board at somewh e swarovski. coming up next in the united states is "worldwide exchange. we know life can be hectic.

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dow futures pointing to a higher open on wall street but tech appears to be under pressure again. another key step for tax reform and lawmakers move to keep the government funded. plus a deal on the big screen the uk cineworld is buying u.s. movie theater chain regal. it's tuesday, december 5, 2017 "worldwide exchange" begins right now. ♪ good morning a warm welcome to "worldwide exchange" here on cnbc i'