also for the white house who did issue a very good session into

the u.s. and asia. a similar theme in europe, strong open for stoxx 600, opening up 0.4% stronger let's take a look at individual bourses. the picture is very positive this morning ftse 100 up almost 0.2%. xetra dax, cac starting the day off on strong footing. in europe we get the flash cpi at 10:00 in the morning. that's expected to dip from1.5 to 1.4%. the picture is positive. you can see every single sector is in the green. it's a tremendous start to the day. autos leading the charge that's surprising given the auto numbers in the uk were quite weak overall that sector has been in the news the past couple of days a lot of an cysts are re-rating some of the key chips in that sector to buy. it looks like the outlook for autos is positive.

healthcare is also up 0.7% the laggard this morning i telecoms, struggling to keep pace with the other sectors. and retail continues to lag a bit. of course we did have those super weak earnings yesterday, but we will get more into that shortly. back to the dow. the dow closed above 25,000 for the first time ever with all other major u.s. equity markets closing at new records bob pisani breaks down the factors that have driven the do you past the latest landmark. >> reporter: the dow passed 25,000, quite an impressive move considering it hit 20,000 on january 17th last year, almost a year ago a lot of people are still amazed that the market keeps advancing. it's again a global rally. europe was up 2% business activity has been strong, in the u.s., the adp

jobs report was above expectations economic reports continue to come in above expectations don't forget, tax cuts have added fuel to record earnings. instead of s&p earnings growth of 10% in 2018, analysts are talking about growth of 15%. so what could kill the rally historically the two biggest killers of bull markets have been recessions, number one, and number two, aggressive fed rate hikes. there is no recession on the horizon. if the economic data continues to surprise, the fed may get more aggressive with rate hikes, but that's for later in the year the bears also argue the market is expensive, and it is, but when you have an economic expansion with rise in earnings multiples can be higher than normal and the final argument that if there's a terrorist attack or a conflict with north korea, that could drop the markets, and that's a concern, and the market has learned not to drop the

market unless things are imminent so far, things are not imminent. the white house issued a statement on the dow crossing the 25,000 the president was quick to celebrate the stock market move and suggested there is still more to come >> we did, in fact, break 25,000, substantially break it, easily so i guess our new number is 30,000 what it means is that every time you see that number go up on wall street, it means jobs, it means success, it means 401(k)s flourishing. >> joining us to discuss these record highs in u.s. equities amongst other equities is nick davidson, senior equities portfolio manager from alliance bernstein. what do you make of this 25,000 number is it as big as everyone is making it out to be? >> good morning. i think obviously it's a nice headline the dow is not broad based

representative, but it gives everybody a good feeling for theny year >> how do you think about u.s. equity markets for the new year? >> valuations are fairly high, i think there's plenty of scope for upside from here, given we're seeing consensus earnings forecast for this year in double digits the economy is growing strongly in the u.s. and globally if anything the most recent data suggests more upside from here i think there's a good prospect for a strong year for u.s. equities >> we have non-farm payroll numbers, there's expected to be a drop does that mean a lot to the markets? >> if it's very different from consens consensus, that could have an impact people are watching growth coming in in line with expectations or perhaps the risk is they might be better than expectations that again raises fears about the impact on inflation potentially and on interest

rates. that's the main bear concern for markets this year. >> a lot of the discussion is to do with where interest rates go from here. the fed have said when the dot plots suggest three hikes pencilled in for 2018, but the market is implying something closer to two hikes. if the fed do go along a more aggressive trajectory, do you think that might derail the u.s. equity outlook for the year? >> i think it could. that's the biggest risk that investors are focused on indeed the fed hikes more rapidly than the market is expecting. that conceivably could slow economic growth in the u.s. if we get signs of recession, which i think no one today is thinking likely that's the central bear case on u.s. equities. is it particularly likely? most people would say not. >> in terms of sectors, financials have had an amazing couple of days, great start to the year actually since the election, financials have been rallying hard on deregulation, the

prospect of higher interest rates. when you think of financials as a segment of the markets in the u.s., is it a part of the market you're still bullish on for 2018 >> there's opportunities there as you say, while higher interest rates are likely to be potentially bearish for the markets as a whole, banks are one part that could benefit from that we still see opportunities in the financial sector >> brilliant we will come back and chat a bit more about european equities in our next segment please stay with us. >> ramstat and adecco are trading higher after price targets were raised. shares in apple supply of dialog semiconductor have fallen to the bottom of the stoxx 600 after flaws were discovered in intel's microchips which could leave the personal data of millions of

users at risk. apple says the most recent update requires software patches. do you think a strengthening euro will dampening investor interest in european stocks? >> we saw last year two different periods. earlier in the year when you saw a strong euro, it was associated with strong european markets because i think investors were making judgments based on confidence about the political outlook. as the political outlook cleared, you saw that flip and people were more concerned that a strong euro could be bad for earnings we're probably still in the second phase where a strong euro tends to be a bit more negative for european earnings, but those things can flip suddenly i don't think it should be something that keeps investors away from europe you're following the consensus that there will be less geopolitical risk this year than a year ago

>> i think in europe that's certainly true those fears about the wave of populism potentially threatening the stability of the eurozone again in france, netherlands, france, germany. the elections people are focusing now on are in italy, and we could get a messy outcome, but those on the right have rode back on the degree of euro skepticism they're projecting so even a messy result in italy is unlikely to pose real threats to the stability of the eurozone >> i was going to ask about something i saw in your note that i thought was interesting the pricing distortions in europe are greater than they exist anywhere else. what does that mean? what does that create for you in terms of opportunities

>> one way of looking at that is how investors price different kinds of stocks. so, in the last ten years since the financial crisis, investors have tended to favor parts of the market that are seen as safe when you translate that into equities, low beater stocks tend to be more expensive than higher beater, more cyclical stocks in most of the world that gap is closed, in europe it's still wide so a stop pick is looking bottom up for mispriced opportunities europe is a richfield. >> not just stock pickers, but sector pickers, do you see financials as a sector worth investing in >> sure. we could say you need to be cautious that was a learning from the crisis if we do see interest rates rise, just as in the u.s., banks are the sector that would most likely benefit from that we tend to want to look for companies where we think there are opportunities for earnings growth, even if you don't see rates rise

so within the banking sector, we tend to prefer names which have good wealth management businesses, credit suisse in switzerland for example. when you think about interest rate rises, you said you're focused on companies not too much dependent on those interest rates moving higher, is that not your fundabilimental v in europe that rates may start raising higher >> i think rates will eventually start moving higher. it's hard to have conviction about when, how quickly, how far. so you're much better off as a stock picker investing in companies which are not so subject to those kinds of unpredictable macro moves. >> we have to stop it there. thank you very much for your time on all things equities. nick davidson from alliance bernstein. >> if you have views about european markets, feel free to e-mail the show, the address is

streetsignseurope@cnbc.com you can also follow us on twitter, we are addre are @streetsignseurope@cnbc. infringement proceedings are being taken over mifid ii implications more after the break

welcome back to "street signs. greek ten-year bond yields plunged to their lowest level since 2006 earlier today greek two-year yields have dropped below that of their u.s. equivalent the american two-year is trading at levels last seen at 2008. sticking with mifid and europe, the european commission is in the process of taking infringement proceedings against 19 member states over mifid ii

the 19 countries have lacked implementation of the new rules. nikos chryssochoidis joins us on the show this morning. good morning >> good morning. >> can i ask you how the adoption of mifid ii has been as far as you're concerned and as far as the stock exchange has been concerned >> it's been problematic for the first couple of sessions we're still facing problems, i.t. wise problems, and the reporting has been tough for local brokers. so as far as i know around 10% to 15% of trades as of yesterday and the day before yesterday did not go through so we are still in the process of trying to solve this.

>> i have to ask you, is this embarrassing for the greek financial system given that you've had some time to prepare for this >> to be sincere, i think this is a pan-european issue for all broeshgs across tbrokers acrosse continent. it's a new rule that's difficult to manage. and we couldn't, let's say, be better off at first. it's really complicated to report rates nowadays. and it will take a slow process to adapt >> nikos, how long will it take for exchanges to get up to speed? to willem's point, the exchanges and all market participants have had a couple years to get ready and they don't seem to be ready yet. how much more time does everyone need in your view? >> on the reporting side, i

speculate we'll need at least three months in order to perfectly adapt to the new regulation on the client side and the transparency issues that have been raised due to the new regulation, i guess that we will need at least six months, so that we will be all set and operating as we should be operating. >> do you think this will affect trading volume >> it has definitely affected trading volumes for the past couple of weeks. going forward the more these problems persist, obviously local brokers won't be inclined to open up to new transactions easily >> thank you very much we'll leave it there interesting to get a first-person perspective on this we heard a lot of speculation with all the guests we have had

on, yet there are concrete numbers from greece. president trump's administration proposed a vast expansion for offshore oil drilling and gas drilling. the interior department plans to open up 90% of off-shore waters for exploration. this reverses an obama era effort to limit such efforts environmental groups have criticized the new proposal but the trump white house says it is necessary. gold prices are on track for their fourth straight weekly gain the metal has closed higher for the last ten sessions. palladium is fulling back after hitting a record high on thursday that surged 56% last year. zinc prices eased after hitting its highest point in a decade.

stocks in the london exchange fallen to the lowest levels since late 2008. more records being broken. switching to japan, the tokyo stock market continued its rise as well as economic indicators fueled optimism among investors. mac kie makiko has more on this from tokyo. >> the nikkei finished up 0.9% renewing a record high in 26 years. it was the second straight day that the index went up in the beginning of the year, and that was a first in eight years the japan services purchasing index inched down to 51.1 in december, off slightly from 51.2 in november. a reading above 50 indicates economic expansion as december also marked the 15th straight month of expansion in sector service activity it didn't dampen market activity. japanese businesses are hopeful for the new year an annual new year party

organized by japan's major business lobbies was held today. most of the executives interviewed say they expect this year to bring favorable economic conditions one ceo of a major stock brokerage firm forecast that the nikkei could reach a high of 27,000 yen which is another 14% rise from today's closing. prime minister abe also attended the party and once again urged businesses to raise wages by 3% this year, and asked for investments to boost the economy and hopefully exit deflation that's all from the nikkei back to you. >> thank you very much for that. switching to the u.s., a number of european corporates outlined the impact from president trump's tax reform plan on their bottom line. shell and bp both believe it will be favorable in the long run, but they will make one-off write downs in the fourth quarter. daimler, bmw expect to boost profit of 1 billion euros or higher european banks are among the

biggest possible losers in the short-term due to the tax changes. we have ubs, credit suisse and barclays who say they will take hits on earnings in the fourth quarter. barclays adds that any future benefit could be eroded by other rule changes within the reforms. north and south korea have agreed to sit down for talks starting next tuesday. it will be the first direct dialogue between the two countries since late 2015. discussions will focus on improving relations as well as the upcoming winter olympics in pyeongchang. the north korean government agreed to the south's offer of talks after u.s. and south korean forces delayed a joint military exercise until after those winter ames. bill neely has more. >> reporter: these drills usually involve tens of thousands of u.s. and south korean soldiers. they're held twice a year, and last year they involved exercises aimed at practicing

taking out kim jong-un and the entire leadership of north korea. kim perhaps not surprisingly regards those drills as provocative. and now says the pentagon they will not be held next month, they're being postponed. but not just pushed back to a later date this decision came in a phone call between donald trump and south korea's president moon mr. trump said he would send a high-level delegation including members of his family to the olympics it's another sign of a thaw on the korean peninsula, or at least for now. north and south have reopened a hotline that was closed for two years, they've been having conversations on that hotline. but one cautionary note. the head of u.s. forces in south korea warned against raising hopes over north korea's peace ov overture the general saying we must keep our expectations at the

appropriate level. back to you. the u.s. state department announced its withdrawing security assistance to pakistan. the trump administration has been frustrated with pakistan's inaction against militant groups president trump took to twitter to blast islamabad's lies and deceit foreign military financing and coalition support funds are the two main forms of aid affected white house officials met top lawmakers in both parties yesterday ahead of a deadline next week when the president will be required to decide whether to uphold the iran nuclear deal the future of the agreement looks uncertain after the president criticized the country's leadership in a series of strongly worded tweets earlier this week. >> he has to sign off on that deal turkey's president erdogan sharply criticized the u.s. over a turkish banker who helped iran evade sanctions. erdogan said america should review its concept of justice

and warned bilateral legal according with the u.s. are losing validity. a powerful blizzard is battering the east coast of the u.s. causing travel chaos and power failures forecasters have classified the storm as a bomb cyclone. it can provoke rapid drops in atmospheric pressure which, in turn, unleash hurricane-strength winds. cold temperatures will persist in the northeast throughout the weekend. coming up on the show, president trump launches a new attack over this explosive new book about his administration. the latest revelations and we'll find out what impact pceederiv white house in-fighting could have on trump's drive to enact pro business policies. thankfully, the breakthrough in prevagen helps your brain and actually improves memory. the secret is an ingredient originally discovered...

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welcome back to "street signs. i'm willem marx. >> i'm joumanna bercetche. >> the smi and the ftse 100 hi new highs after the dow shoots past 25,000 taking just 24 days to jump to the fresh milestone dialog shares slump amid

concerns about security flaws in chips. let the drilling begin the trump administration plans to open around 90% of american waters to oil exploration in the biggest lease sale of its kind. and one more step. china's central bank pushes the country's currency further on the global path it is nfp day, but all the focus is on the dow jones after breaking through that 25,000 key level in yesterday's trading session it looks as though the sentiment is still positive heading into today's session we have s&p 500 pointed to open about 3 points higher. dow also looking to open 50 points higher. yesterday the two names that led the dow jones higher were goldman sachs and ibm, helping

pull the whole index up. and financials were very strong sector in u.s. trading yesterday afternoon. switching to europe, let's take a look and see what the picture is like there. it's one of positivity and optimism today ftse 100 up almost 0.2%. xetra dax is close to being up 1%, up 0.85% cac 0.65%. picture of health for european stock markets. >> u.s. dollar, as we have noted the past couple of trading sessions, has been the number one focus and doesn't seem to be getting much respite despite the positivity in european equities. dollar/yen having a strong overnight session with the dollar rebounding there and that currency pair is up 0.4% or so you can see that cable has dropped to trading around

1.3530 sticking with currencies, the pobc is pushing the use of the yuan in global settlements as it continues to promote the international use of the chinese currency the central bank is telling financial institutions to use the yuan to settle global trade and investment deals the pobc said it would help firms bring money back to the country and limit the amount of capital that could exit china freely china's regulators have cracked down on under the counter bond deals. institutions must now sign written agreements on all bond transactions, any deals designed to avoid regulation are banned it's part of a continuing campaign by the peoples bank of china to reduce the leverage in the financial system >> germany's retail sales increased more than expected in november with a 2.3% real monthly rise on the year sales climbed up by 4.4%, also beating expectations.

uk shop prices fell in december as retailers continued to offer discounts throughout the christmas shopping center. according to figures, prices fell 0.6% year-on-year in december after falling by 0.1% in november. non-food retailers were the biggest source of deflation as they continued to slash prices due to increasing competition. with us this morning is the senior retail analyst from whitman howard who has been following and analyzing the retail sector for many years thank you very much for joining us as i just read, it appears as though the trend has been about nonfood retailers slashing prices to attract customers that come to their stores we saw that pop up a bit in the earnings yesterday, very disappointing, slightly higher sales, but at a much thinner margin than they had demonstrated in the past do you think this theme will pop up for other retailers in the next week? we have a lot of big names who

are reporting in the next ten days or so in the uk >> i think the answer is yes the pattern of trade in the run up to christmas was weather affected and i think we had not had a cold snap just directly before christmas day. the figures we're seeing now would have been a lot worse. but that's been the pattern throughout the run up to christmas as well through september. trade has been volatile, and people have been discounting to clear -- keep their stock clean as they move through the year. >> you are referring to what next said about the cold weather in particular, but do you think current management given the efforts they made are going against those discounting we saw around christmas >> debenhams has a new management that will change

things so it's unfair to judge by the same standards than you would judge more established business plans and managements. so i think the changes will help them in due course i think it will take time. though it has a small share price, it's a big business it will take a long time to turn it around and so i would think that next christmas will be the first time we'll see any real signs of progress in debenhams >> another big bellwether name comes up next week, what are you thinking about mms from here >> they have announced recently they will reposition their food business and we don't have a lot of detail on that yet presumably they're doing it in response to something they know and we have not seen yet there will be a lot of focus on the food figures

i think they will have found it difficult to deal with the volatility of demand i think it will not be a knockout christmas but slightly disappointing. >> we have not discussed online yet. when you think about the outlook for a lot of these names, how significant is their online presence in your valuation >> i think online is the most important thing happening in retail at the moment the growth of online and the way it impacts on traditional stores you're seeing a lot of traditional retailers struggling in a big way to cope with the rapid growth of online next, for example, had much better results than debenhams because it has a much bigger online business. john lewis, though not quoted, when they come out with christmas trading next we're they will probably have done better than the whole street, because they're about 40% of sales online

we're seeing a structural repositioning going on which has to do with the companies trying to reposition themselves because they recognize their current store numbers are too high for the way the market is going. >> holding on to stores that are profitable and expanding into online retail, who will be the losers this year who will crash an burn, do you think? >> i think what you always find with retail is it takes longer for these trends to work their way through into -- who are you looking at then who is behind the curve? >> i think most of the companies i follow are behind the curve on technology in terms of -- >> that's a uk thing, you think? >> yeah. we have some great virtual retailers, like asos and dotcom, but -- and john lewis, but the traditional guys, you know, are

playing catch up. >> they're not matching the pace at which online is growing in the market >> we'll leave it there. thank you very much for joining us back to the united states where president trump has hit out at a new book which highlights the apparent chaos that has defined his administration he tweeted he allowed the book's author zero access to the house and that the book was full of lies trump's lawyers indicated this could try to stop publication of the book called "fire and fury: inside the trump white house," that publication that been brought up several days. the president's lawyers also threatened legal action against president trump's former aide, steve bannon, his former chief strategist who was quoted as making several divisive comments about mr. trump and his family for more on the brewing feud, here's kristen welker. >> reporter: tonight president

trump publicly holding his fire amid a mounting feud with his former top aide, steve bannon. >> i don't know. he called me a great man last night. so, you know, he obviously changed his tune pretty quick. >> reporter: bannon playing cleanup on his radio show. >> the president of the united states is a great man. i support him day in and day out. >> reporter: but behind the scenes the president still fuming according to several aides after bannon questioned the president's grasp of policy in the new book "fire and fury" and even accused trump's son and son-in-law of treason for meeting with a russian lawyer during the campaign. on wednesday the president excoriated bannon saying he's lost his mind. now the president's legal team is threatening to sue bannon, the book's author and the publisher. the white house lashing out. >> there are numerous mistakes but i'm not going to waste my time or the country's time by going page by page talking about a book that's complete fantasy and just full of tabloid gossip. >> reporter: but tonight new shock waves after author michael wolff raised questions about the

president's mental fitness in an article in the "hollywood reporter" writing the president repeats himself. everybody was painfully aware of the increasing pace of his repetitions. the white house defiant. >> it's disgraceful and laughable. if he was unfit, he probably wouldn't be sitting there and wouldn't have defeated the most qualified group of candidates the republican party has ever seen >> reporter: and tonight growing questions about whether steve bannon is losing his influence as a number of republicans are siding with mr. trump. the white house asked if bannon should be fired from conservative media outlet breitbart news >> something they should look at and consider. speaking of issues with one's mental health, trump administration's overruled an obama era policy on marijuana. attorney general jeff sessions said that federal prosecutors

will enforce laws on the drug. that's just three days after california formally launched the legal sale of recreational marijuana. colorado's republican senator, cory gardner attacked jeff sessions for a complete reversal on the issue he vowed to delay all nominations for justice department positions until the attorney general changes his policy we're joined by tracie potts who has the latest on this from washington you know, this seems to be another example of mr. sessions trying to enforce federal policy onenforcement. what can you tell us about this new set of guidelines? >> sessions says it is a return to the rule of law but democrats and republicans here on cap titl hill disagree. gardner says he will lead an

attempt to block justice department nominees on capitol hill until they go back to what's called the cole memo that opened the door and paved the way for what we now have, eight states plus the district of columbia that allow the recreational use of marijuana. we'll see if that actually happens. this is not just about policy. it's also about money. in colorado they legalized pot 3 1/2 years ago, now they raised half a billion dollars that they're using for infrastructure projects, education and other things that the state needs. lisa murkowski of alaska calling this change disruptive and regrettable. as you said, it was just days ago that california made marijuana legal, and now we're seeing yet another attempt by the trump administration to roll back an obama era policy >> some concerns about wallets being affected let's talk about steve bannon

again. yesterday you and i spoke about the fallout on capitol hill from his comments not a lot of people have come out with public statements we've now heard more of those reactions that you might have expected can you give us a flavor >> yeah. several of the republicans that we talked to early on really didn't want to get in the middle of this back and forth with president trump and steve bannon bannon and the president seem to be trying to patch things up saying -- bannon saying more complimentary things about the president and more complimentary than he did in this book the president says we'll see he's now changing his tune now lots of republicans are siding with president trump on this saying that steve bannon doesn't represent their party or even the conservative wing of their party. they're trying to hold things together for the midterm elections later in the year. >> tracie potts, thank you very much we've had an interesting 15 minutes. we discussed uk retail, steve bannon, and pot.

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welcome back travis kalanick is to sell almost a third of his shares in uber, around 1$1.4 billion the sale is part of the terms of the tender offer that saw softbank taking a stake in the company. that deal valued the firm at $4 billion. shares in tesla regained some of their losses yesterday after the company reported a delay in the production target for the model 3 sedan. concerns persist over cash flow and production bottleneck at the california carmaker. >> reporter: tesla share holders and potential customers remain in a wait and see mode when it comes to the newest car, the model 3. customer also be waiting a little longer as tesla continues

to wrestle with production bottlenecks. those problems limited deliveries of the model 3 last quarter and are the reason tesla is changing its guidance on how quickly it will ramp up model 3 production instead of building 5,000 per week at the end of this quarter, tesla says they plan to build 2500 per week by the end of marsh and push out the target of 5,000 per week until the end of the second quarter that change in guidance was called disappointing by several analysts on wall street but nobody cut their estimates for the company. the reaction was fairly muted with one prominent analyst telling clients to buy tesla shares on this dip this is not the first time musk's company has failed to hit production targets, but it's not scaring off investors. that's because many believe the production issues will eventually be fixed. and when they are, tess sla sho

start cranking out the model 3 in greater numbers and push shares higher. exercise caution that's the warning from the u.s. regulator to investors in cryptocurrencies like bitcoin. the s.e.c. said that many promotors of icos are not following federal and state security laws and urged investors to be vigilant saying there's a risk that regulators won't be able to help investors recoup losses. a cryptocurrency created as a joke has a market cap of over $1 billion the creator of dojjcoin is worried. >> >> wasn't sure how to read that one but dojj coin seems to be appropriate. the battle for time and attention is intensifying. growth in the media industry is coming at the expense of competing services that's according to a report by

media research we are joined by zack fuller, analyst at media research. i know i spend too much time online, but we have to sleep at a certain point there's a limit to how much time you can spend consuming media, which will mean there will be winners and losers >> absolutely. that's what big tech is coming up gex nagainst now. up until now everything has been going up now i think we're reaching a saturation point where basically you're seeing the games companies who previously dominated the space come up against this fact that actually there is limited time during the day. they can only really take as much time above that as really is humanly possible. >> they're the potential losers, you think? >> i believe so. >> i log into netflix for a few months because i want to watch a certain show >> like "the crown." >> great show. >> hbo, "game of thrones," i

found out it's another year until a new one, maybe amazon prime i like, "man in the high castle" then i decide i don't want to use it and spend the 8 pounds a month i'm the personification of customer turn. is that a big problem you think? >> will be, particularly as the competition heats up in the space. if you think recently as we saw with the ruling, that more companies will be going through the consolidation phase and potentially throttling the data aspect of it so we'll see more competition in the streaming space. yes, will you be the embodiment of that customer >> i look at these big shows i look at game of thrownthronesi look down the road and i think is the data now there that means the details of these shows has worked out so far in advance that you won't have flops with

something like marco polo? >> that's interesting. a lot of people in the space discussed this i don't think you can ever truly predict that we're living in a year you to where the biggest musical is a hip-hop version -- hip-hop mix tape of a historical figure that up until a year ago most people don't know much about. data will be used as part of the process, but i don't think you can predict it >> spotify is being sued by songwriters for illegal streaming or improper licensing. what do you think that means for the future of the streaming industry going forwards? >> the licensing aspect of it. >> yeah. >> this will be a continuation period you will see more litigation go against these companies, becaus the ecosystem.

will it stop them? at a point where you have cheap venture capital, in this economic climate they'll be able to survive >> when we look at the f.a.n.g. performance in the u.s. sector last year, many of the stocks were up 50% in 2017. do i think we reached peak optimism in that space >> peak optimism for tech. th tech has enlightened peoples lives and the stock market the last decade. whether or not they can continue that depends on how the economic system continues >> the corollary to that, will big vc firms continue taking these massive bets that may be attractive in terms of returns in the past but maybe not as we reach this peak saturation point as it comes to eyeball time. >> i don't think eyeball time will make much of a difference which pushed the vc boom is the fact that interest rates have been low that allowed them cheap access to capital and to make such

bets >> my salary is paid by a huge distribution company, comcast, i'm probably biting the hand that feeds me here, but ads are annoying on television, on websites, when it comes to video, is that a problem long-term? >> you are a consumer, you just identified the problem there i think if people are annoyed by it, you will always find some way to find a solution >> do you see a shift where consumer ad spending is dropping in the future? >> it depends how well the streaming economy can reach markets it was never in before that's a larger opportunity that subscriptions. sub prescriptions run up against a limited amount of consumers. the real opportunity is if you can reach consumers in turkey or brazil or indonesia where they never really had an influence before >> quick word on gaming. you seem to think 2017 was a year where we also reached peak gaming in terms of peoples adoption of new games, mobile

technology what is your view for that industry in 2018 >> one of competition. there's so many other services that are now occupying peoples time as we discussed games will ultimately be the ones that feel the most effect of that. >> we will leave it there. thank you very much for that zack fuller from media research with his year's predictions for the tech sector. let's look at the u.s. futures before we go you can see the s&p 500 and the dow jones and the nasdaq all looking to open positively implied open up nearly 6 points for the s&p 500. the dow up nearly 60 points implied open we have other end of week data worth bringing in. let's bring up that wall an important day today, it's joumanna bercetche's birthday. so happy birthday. i hope you're embarrassed. >> totally unexpected. >> i enjoy the party has the there. >> that's a great party has the.

>> i should wear the pink red combo more often >> thanks to our graphics team for putting that together. i hope there's champagne in your future >> there's always champagne in my future. >> this is "street signs." we will talk to our u.s. colleagues next. happy birthday >> thank you very much thank you for watching the show. "worldwide exchange" is up next. cannot live without it.

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the dow crosses 25,000 for the first time ever as the record rally kicks into a higher gear. digging out. residents up and down the east coast are trying to return to normal today following a monster snowstorm. we have the latest on the aftermath. and cheerleader in chief president trump celebrating wall street's record run, but does he deserve all the credit for the rally? we'll debate it. it's friday january 5, 2018, "worldwide exchange" begins now ♪