welcome to "street signs." i'm joanna. >> and i'm willem marks. european equities rally to the highest amount. >> tax and tribulations. deutsche bank says a surprise 4-year lock thanks to weak trading and a hit from u.s. tax

dollars. feeling chipper. they beat the fourth quarter preliminary sales experts. steve bannon makes a public apology to the u.s. presiden saying his support for the white house is unwavering. meanwhile, donald trump plans to fire a few and says he is a very fatal genius expected, u.s. mar did see another very strong day on friday with all of the majors, dow, s&p and nasdaq making new record highs. also notably russell 2000 did make new record highs as well. at europe the stoxx closed up

higher i should tell you that this takes the stoxx 600 to the highest level since 2015 everything seems to be starting off right for 2018 let's take a look at individual european indices the only laggard seems to be the ftse 100 today we are expected to get the announced u.k. covenant announced by prime minister theresa may. we look at how the holiday sales are going. dax another strong day up 4% the picture apart from the u.k. is looking quite well. autos is the number one sector and has been so forth last couple of sessions or so this morning bmw is leading the charge but, of course, fiat chrysler is one of the biggest performers as well

a sector that is doing very well this morning up .8%. to the down side, we have household goods below that line. about 1.1% or so utilities as well. broadly speaking, it looks like the picture is quite positive. now one of our top stories this morning, deutsche bank has joined the course of u.s. banks warning about tax reform the lender is going to take a $1.5 billion euro charge it will leave it with its loss down almost 1.6% annette joins us down the line what can you tell us about this announcement this morning? >> reporter: deutsche bank came out with this friday afternoon which were already hitting the shares by some 5% on friday. if this continues because people

are realizing that it's not just about the tax issue in the united states, it's also about deutsche bank warning that the revenues in the fourth quarter were unexpectedly low. there's a line in the press release saying that trading and revenues from the investment bank is down by more than 20% and that is taking investors on the wrong foot people are expecting that things are going better at deutsche bank in the fourth quarter because they were guiding the marke markets. also the sentiment was that things are improving at the investment bank. so what's happening now is that more shareholders, asset managers are setting out saying, wait a moment, there might be some more pressure brewing to get things right at the bank because they are saying he has

been banking and the banks need to make money. what they're seeing is they need this operational power they once had in their investment banking. that's one of the big reasons why the shares are still down for the second consecutive stay on monday. the tech bid, all the others were hid as well the line in that press release saying that the revenues are down by more than 20% is hitting deutsche bank also today so on february 2nd we get more from the bank when it comes to details of whether we could really want, was it investment trading, overall that's a key for investors also projects the strategy of deutsche bank. as i said, february 2nd will be a new big day for deutsche bank.

for now it seems that investors don't like what they hear. back to you. >> annette, thank you for that update we'll come back out shortly to talk about germany's politics. let's talk about dialogue semiconductors it comes amid fears the german ship maker could lose its top customer, that is apple. the group will report the full results at the end of february meanwhile, german chancellor angela merkel said she is optimistic a deal can be made over five days of talks kicked off in germany annette, one thing that's interesting about this, there's a media blackout for the next five days. does that really underline the sensitivity to these talks >> reporter: yes, it does. it does yuntd line the sentense

underline the sensitivities and the sense of urgency people have in berlin. there was a lot of finger pointing which was played into the interviews in the press and in the end people couldn't agree on anything anymore as we all know this shouldn't happen. once again, the time line is very tight so they are -- one can argue the let is on on these party leaders to come to a conclusion, to come to a feasible result by thursday. by thursday we should know whether coalition talks will really start it should go pretty quick. the democrats are the biggest problem here because they have a special convention where their party members can sort of agree, they can vote on whether there should be coalition talks, then there will be another member

called, whether they want coalition talks. anyway, i think the talks will be now quite effective lang merkel yesterday also stepped out and said a little bit about hue she thinks the talks were starting. take a listen. >> translator: i think we can succeed. we intend to act very quickly in intensity always keeping in mind what the people of germany expect solve that problem and create the conditions so that the people can really get involved in this country. i'm monitoring the talks optimistically we have a lot of work to do in the coming day but we are willing to take on the work to get good results. >> reporter: despite all of that, we shouldn't forget that those party leaders couldn't agree on a lot during past talks and also there are very tie verging groups

usually everything dues and what europe should look like. all of that needs to find a common ground to have the next four years of a sort of credible policy coming out of germany so we'll see how that all sort of pans out, but the positive message here is that we should actually get an idea about that pretty quickly. >> thanks so much for that update we're joined around the desk here by the co-president of paneo. is this the last chance do you think? >> there's enough time to get the deal done. let's be clear given all the effort, if these talks fail, it would be very difficult to not avoid a re-election. merkel will still be the one leading the tvu into the

election. >> she said she would run again. >> she would run again there is no other candidate. i think what's important is the public opinion has shifted i was at 61, 62% if you are polling today's voters, the gun collection is higher they are trying to block the deal or explore the deal on 15 issues that at the end of the week assuming we get it are heading to the formal talks. >> one of the issues you mentioned, let people try to understand, what are the central sticking points to the two sides. >> i think there is a lot of talk about europe. it's not a make or break europe is about language at the end of the day

it's about domestic issues to agree to a deal and to secure a positive outcome, there are two areas. it's really domestic. >> i want to ask you what it means for fiscal policy. germany and much of the criticism of many of them has had a currency account surplus for the last five years or so. there's a lot of pressure to open up the coiffeurs, spending pattern, et cetera that's one of the main things, that could mean that germany is down >> no match. sideline incrementalism all the way at the end of the day they will have the junior coalition partner. the vast majority of the public is still supportive of the

conservative people approach we could see as part of the concession an incremental spending on the fiscal side but nothing of what other europeans would like to see. >> this is about egos. we heard that if these talks fall apart, it could be the beginning or end for all three of these major leaders are they putting personal interests above party policies snfrmgts it is a crucial time for the three leaders, absolutely i think for -- the difficult position here is for sure. from brussels to berlin, there is one person who can sell the deal if a deal is reached to the members, it's schultz. there is nobody else that's in there today. so there is a lot at stake here

for the leaders as well, but i think that this is one of the most important areas. >> we heard about the right of the far right. they didn't come to fruition for the most part. what impact do you think the afd had on national politics and in particular on these four >> i think when we look at populism and we look at the rise of the far right we should not be looking at them they are able to play very important roles by shaping policies they are branding the dominant narrative here putting the mainstream on the defensive. in the case of germany, it's about migration. the migration issue with merkel as the coalition partner, they see a few. when we look at extreme right in germany, in france, in the netherlands and italy, we should

look how they face our debate. on the defensiveand trying to catch up you shouldn't pay too much attention whether they win elections or not. >> thank you stay with us we'll be back to discuss more european politics towards the end. sticking with germany, the head of the bank has called on the ecb to help with inflation he added that it would be just as viable for the ecb to name a specific date to end bond buying they said they will stop buying in november. it's important with the economic ethos. we'll be speaking with jesser brandgaard

welcome back to the show

n novanordis is going to buy ablynx it values it at 2.6 billion euros. it's the second time they've tried to buy the belgian farm ma company. jesper brandgaard joins us on the line thank you very much for joining us this morning. i'd like to ask you initially, why does this acquisition make sense to you in the first place? >> thank you the acquisition is interesting for nordisk. it has an asset that treats a rare bleeding disorder, attp. nor disk works towards hematology for half of the business the area of hematology and rare bleeding disorders is an area we've been in for the last 20

years. we believe we are an effective owner of such an asset we can help globally roll out this asset in a speedily fashion. it will obtain reimbursement from governments around the world. >> sir, i believe it is the second time that an offer has been rejected by ablynx. can we expect a third? >> i think we have decided to lay out to the shareholders that we have made these attempts and that we would like to go into a discussion with the board of directors and i think the shareholders should assess the offer made by nordisk and have a dialogue with the board of the company. we believe that in terms of ablynx, a negotiated transaction with the board ever director serves the interests of the shareholders it is a highly skill-based

organization that we are trying to buy in belgium and we want to do that in collaboration with management in belgium. >> mr. brandgaard, do you think you face pressure because your insulin brand is under fire from your american rivals >> i'll say this is not so much hinged upon our current margin markets in diabetes and obesity. we see solid growth in the diabetes/obesity we are going to launch our tlp 1 in the u.s it will be launched very shortly. ultimately what we're trying to do in biopharmis having more assets based on internal

efforts. >> you've had a good run in the last 12 months but ablynx have had an incredibly strong run. do you worry that they'll get more expensive >> i see the view of ablynx for the co-asset, they realize that this product is going to provide an interesting opportunity for patients who don't have today a very attractive treatment where most of the people are treated with change as the prime way of dealing with atfp. this is the rising development of the ablynx share prices. >> this is one of the first

acquisitions since the new ceo joined last year can we see more attempted acquisitions for businesses that make sense for your business in 2018 >> we said our prime focus for acquisitions will be in the biopharmarea this is the first attempt to do so the magnitude will be in the area of $2 billion we need to show that we can undertake such an acquisition and get one transaction done before we go for larger transactions we will supplement potentially this acquisition. >> sir, thank you very much for your time this morning that was jesper brandgaard, the

cfo of novo nordisk. prime minister theresa may attempts to steady her government senior figures including chancellor phillip hammond and boris johnson are all expected to hold on to their jobs according to reports from u.k. media, business secretary is among one of the positions that is said to be vulnerable in italy the prime minister says he doesn't plan to stay on as prime minister after the general elections in a few months. he said his role will finish after the vote he'll remain the prime minister if no coalition gets the majority there is a joint manifesto ahead of the election. according to the latest poll from eng, silveyo bur less zone

any is said to win the idea in him having a role to form a new government is an interesting one. he is banned until 2019 to be prime minister him self. >> yes no matter what, whether it's the center right coalition meaning they seek to do it by themselves or whether it will be the larger group is going to be the king maker. he has got the momentum. and he's got this amazing ability to connect to the public some of the other leaders are here >> this is the prevailing view in the rest of europe that italian politics has always been unstable dozens of different governments in the second world war. they tended to have a christian

government prime minister. is it the current situation the most confusing that you've experienced? >> i think this situation is a bit different. from the early '90s to a three-quarters system. the world political system is not suitable for that reality. second, there is a generational issue emerging people, 60% of them are ready to vote forty-five star movement. they're 60-year-olds plus. the directional issue is emerging here. so far they've been able to grab the story is the five star movement the other dynamic is about europe for the first time europe is a

matter of debate in the election there will be more with euro and less with euro >> it seems as though the right and center right are more open to forming coalitions and having talks with one another is there any situation where you can see that happening on the left >> no. there is no left the left is completely disintegrated. there is another offspring they are not going to work together this is one of the key weaknesses he has no credible partners there. the center right has been able to work together for some time they do very well in the local elections. we have a regional government where they work together >> thank you so much we'll be watching that closely

over the next few months that was the co-president of may er election. we'll talk about "fire and fury" and, quote, sloppy steve white house politics coming up after this break your brain is an amazing thing. but as you get older, it naturally begins to change, causing a lack of sharpness, or even trouble with recall. thankfully, the breakthrough in prevagen helps your brain and actually improves memory. the secret is an ingredient originally discovered... in jellyfish. in clinical trials, prevagen has been shown to improve short-term memory. prevagen. the name to remember.

(nadia white) the moment a fish is pulled out from the water, it's a race against time. and keeping it in the right conditions is the best way to get that fish to your plate safely. (dane chauvel) sometimes the product arrives, and the cold chain has been interrupted, and we need to be able to identify where in the cold chain that occurred. (tom villa) we took our world class network, and we developed devices to track environmental conditions. this device allows people to understand what's happening with the location, but also if it's too hot, if it's too cold, if it's been dropped... it's completely unique. (dennis woloshuck) if you have a sensor that can keep track of your product, it keeps everybody kind of honest that way. who knew a tiny sensor could help keep the food chain safe? ♪

welcome back to "street signs. i'm willem marks. >> and i'm johanna these are your headlines >> european equities rise to the highest level. the overall market is at a two-year peak. tax and tribulation. they have a slide and the german lender warns of a full year slide. and on his first state visit to china, france president macron says it cannot be a one way street.

steve bannon makes a public apology to the president saying his support to the white house is unwavering. meanwhile, donald trump slams "fire and fury" since it hits book stores and says he is a very stable genius everyone, on friday we had the numbers and even though the headline came up slightly disappointing, we did see all three majors meet the record highs yet again. dow jones and nasdaq all making record highs for the fifth time this year even though, as i said, that headline number did come in less than expected than the unemployment rates held in at 4.21% the russell 2,000 made a higher. the small caps are participating in some of that rally. switching to europe and see what the picture is like there this morning. similar to what we saw about 20

minutes ago, foots stse is the laggard. as i mentioned earlier, stoxx 600 is at the highest level since 2015 the european equities, ftse mib, they're beating the u.s. surprisingly enough. switching to foreign exchange, the theme is still the weakness of the u.s. dollar. another weak week for the u.s. dollar and not really getting much of a rebound here you can see this morning that they're coming off the 120 mark. down to 120.90 dollar yen, still moving up

higher there the positioning is quite strong that was the latest s.e.c. reports. >> speaking of what some people perceive as u.s. weakness, steve bannon is backing away from comments about donald trump jr it was in michael wolff's recent book "fire and fury" that said that a meeting between donald trump jr. and a group of russians was treasonous and unpatriotic. bannon has retracted that. he praised donald jr. and the president in his statement but he did not directly dispute the quotes in the book we're joined this morning by nbc's tracie potts live from washington tracie, is this about mr. bannon trying to get back into the good graces of prism, do you think? >> reporter: well, if it is,

willem, you have to wonder why bannon did after the early release of this book come out and start backtracking he started last week praising the president, praising his agenda, now his more extended stateme statement. he said his comments at that meetings were not directed at the president's son but were directed at paul manafort. someone that's no longer directed at the white house. manafort was the campaign chair. he was also in the meeting along with the president's son-in-law, now adviser, jared kushner, bannon seems to be parsing his words now saying even though they were all there his trees senous words he said donald trump jr. is a patriot, a goodman he has been relentless in advocating for his father and his support is unwavering for

president trump and for his agenda obviously singing a very different tune than the comments we heard throughout the book. >> it's out by the white house what about comments from those still inside the white house this weekend >> reporter: the white house, the trump administration, the president himself are really going after not only this book but also its author saying that the claims that it was a dysfunctional white house, that the president is mentally unfit, claims that they had talked about the 25th amendment removing the president are ridiculous here's the president's tweet saying that he's had to put up with fake news from day one, now a fake book written by what he calls a totally discredited author and to his credit there have been questions in the past raised about whether michael moore brings them up

he says he has not only notes but recordings to back up these more than 200 interviews president trump trying to change the page here a bit focusing on what he continues to call crooked hillary clinton. the focus here in washington very much on this book and now really up to the public trying to parse words and determine whether or not this behind the scenes look at the white house, this inside look at how the white house was run at least while steve bannon was there is true. >> tracie, just switching gears a little bit president trump did also have a weekend strategy session with some republicans do we have any idea what the focus of those discussions was about or what some of their specific initiatives are going to be going forward? >> sure. well, johanna, some of that the white house had talked about before this strategy session they want to focus on welfare refo reform they want to get a big infrastructure bill out of this

dong create jobs they have to start with a budget because they have to have one in place or at least an extension also with infrastructure and welfar leaders about which is first >> tracie, thanks for that this morning. that was tracie potts from nbc news live in washington. sticking with the subject of the trump white house, the real estate company of jared kushner, the president's son-in-law and his adviser, is being investigated by the u.s. securities and exchange commission according to the wall street journal they have a program they sent u.s. visas. they're cooperating with investigators. sticking with the u.s., the fed's sean williamy

will push forward with the policy he says he thinks the u.s. economy will get a boost from trump's tax returns. williams added he was not concerned that inflation would suddenly go up if unemployment rates fell further steve leaseman spoke about the outlook of the policies. >> from the point of view of the policies, that doesn't mean it triggers unnecessary action. i think what we're trying to do with our monetary policies is to calibrate the economy and it's relative to our true goals, which is maximum employment and pricebility, which we are measuring by the inflation rate. as you know, we're not at our 2% goal yet on inflation. what we're trying to do is keep policy so that the expansion would be sustainable going forward. we're always doing a balancing

act. a host of relations that impact the financial sector came with the force in 2018 gdpr and open banking may see y with the data. joining us is ruth van helper, head of global market strategy at citi. seems like there is more regulation coming through the market this year the first question i want to ask you, this is how safe gurt is to walk out of it i think you want to talk about

the being out of the market for competition, it requires banks to get the customer data it's providing more than we've seen. >> do you think we're getting closer to regulation in europe now? >> well, i think if we look at the global areas, it's still not at the very end of the curve a very big tumble in the data projection rules i would hope that following that we would have a little bit of a breather very big measures that will give you resumes for the market as well. >> picking up on one of your points you said technology and regulation shus go hand in hand. is that solely to collect the data >> well, all of these laws require a lot more data to be

created and also it's the processing of the analytics of the data in the last few years we've seen a lot of compliance functions and it's grown significantly it is very clear now that with the measures that come in this year, it is no longer possible to have humans manage all of that we're looking at artificial intelligence, solutions that are required because we have such a big financial management data and provide regulations. >> are crypto currencies -- >> everything is based on data data is the new oil. we had a massive frenzy in 2017 and i think this year investments will become a little

less >> when a country like venezuela issues a crypto currency doesn't make investors say, what a great idea do you expect to see more of those? >> we've seen some smaller and challenged countries using crypto currencies getting back there. they requested specifically on the challenges they're having on sanctions, what's going to be paid what happened with the budget. that's why invest are quite shy. >> switching back tomt topic of block sink technology, we've heard many nonfinancial institutions are willing to introduce block chain technology as a means of expediting it and making it more efficient

>> i truly believe block chain is a transformational technology we have just seen the beginning. this is evolving quite rapidly i've seen some very new application that is will focus on scaleability and privacy, which are in regulated markets it takes time. >> speaking of taking time, will we see the extremely volatility in the values that we have seen in 2017 do you think >> i think volatility will continue i'm understanding the function als of them. it creates new networks. i think this point overall what becomes of reps.

>> do you think bitcoin will come before that >> i think so. >> thank you very much interesting conversation global head of regulatory and market strategy at citi bank joining us. we've discussed everything from italian politics to german politics, u.s. politics. very politics heavy show and regulation please get involved in the conversation cnbc.com now coming up on the show, we head to hollywood for the glitz and glamor of the golden globes where recent industry scandals have taken the center stage. find out the winners and losers afteth bakr isre ♪

this is what our version of financial planning looks like. tomorrow's important, but, this officially completes his education. spend you life living. find an advisor at northwesternmutual.com. jimmy's gotten used to his whole yup, he's gone noseblind. odors. he thinks it smells fine, but his mom smells this... luckily there's febreze fabric refresher for all the things you can't wash. it finds odors trapped in fabrics and washes them away as it dries. and try pluggable febreze to continuously eliminate odors for up to 45 days of freshness. pluggable febreze and fabric refresher. two more ways to breathe happy.

welcome back to "street signs. rescue teams are battling a massive fire after an iranian oil tanker collidewide a grain ship off china's east coast. dozens of crews are missing.

the tanker will sink or explode. all 21 on the grain ship have been rescued the extent of the environmental devastation is not yet clear they suggest the disaster has the potential to be the worst oil tanker spill in decades. meanwhile, in saudi arabia, saudi authorities have detained 11 princes after they protested against austerity measures they staged a sit-in at the royal palace in riyadh the move as part of the -- >> trying to offset some of the consequences, saudi arabia's king sol low men is trying to ease those burdens a tax hike from price increases that are part of that economic restructuring. the measures include payments for civil servants, retirees in the year ahead

and moving on to china, december saw china's foreign experience -- foreign exchange hit the highest point since 2016 its stronger an helps with the trend. the dollar was down more than 6% against the yuan over 2017 as you can see in the parts right in front of you. >> speaking of china, french president emmanuel macron has kicked off his first visit there. global trade is on the agenda. he's traveling with a group of corporate leaders hoping to create new trade opportunities speaking in the city of gian he talks about china's trade initiatives. he says china and europe shut collaborate. airbus is reportedly hoping

too after a manufacturing partnership if they place orders of the world's largest passenger jet. they have accompanied emmanuel macron and his official visit to the country. he plans to ink the deal of 100 aircrafts. they suggested airbus was ready to crank out the pro decks >> this could be a bit of a life line for them. u.s. president donald trump said he would be absolutely willing to talk on the phone with north korean president kim jong-un. we have more from seoul. >> reporter: the center piece for the high level interkorean talks tomorrow is the pyeongchang winter olimb percent and the possible north korean participation in the games but south korea is hoping that it

can go beyond that the unification ministry in soule says the military families u.s. president trump says he supports the talks 100%. >> right now they're talking olympics it's a start it's a big start if i weren't involved they wouldn't be talking. they would be doing no talking or it would be much more serious. he knows i'm not messing around. not even a little bit. not even 1%. he understand it at the same time, if we can come up with a very peaceful and very good solution, we're working on it with rex, we're working on it with a lot of people if something can happen and something can come out of those talks, that would be a great thing for all of humanity. >> the crucial question; what comes after the talks tomorrow

will this be about peace making or money making. >> also today we spoke to the former head of the united nations bankki-moon. here's what he had to say. >> this dialogue and the meetings should be a denuclearization it should be a denuclearization of the korean peninsula. >> the movie outside of missouri, that was the biggest winner at the golden globes clinching four awards including best drama but much of the spotlight was

captur captured we were at the a words. >> "three billboards." >> the story of a mom seeking to avenge her daughter's murder took the awards. the star won best actress. >> the women in this room tonight are not here for the food we are here for the work. >> her comments, part of a night that began with stars wearing black on the red carpet to highlight gender inequality, a mood reached a crescendo with a rousing speech by oprah winfrey. >> i want all the girls watching here and now to know that a new day is on the horizon! >> the night's other major winners included best actor in a drama for darkest hour and james franco, best actor in a comedy for the disaster artist.

>> city college and then to jail. >> the coming of age scale lady bird won best musical. best director was won for the shape of water best animated film went to coco. in the tv ranks, the treeming series scored big. hulu's the handmade tail won best drama the marvelous mrs. mazos took the award. this is us star sterling k. brown captured best actor and best actor in a comedy was ansari the overriding theme of female empowerment -- >> it's great to understand how powerful this was. what happened here could be a

precurse precurser to what's to come. others say this is a watershed moment putting women in more power. reporting from beverly hills, nbc news. >> that's the footage. >> inside of here. >> i'm not spending enough time on netflix that's right let's review some of the biggest stories before the end of the show today european markets have followed the records on wall street the stoxx 600 has opened at the high ets levels since 2016 it revealed sales at the mercedes brand, so dame limler the biggest winner

ferrari up 1% as well. now let's take a look at u.s. futures and see what the picture is like there as we head into the day after nonpharmpayrolls staup, dow jones and nasdaq all did make new recordhighs for the year russell 2000, small caps closed at a new record high the focus this week in the u.s. is going to be very much on the cpi data coming on friday and retail sales number as we get some more hands on the health of the u.s. consumer. and that's it for today's show i'm johanna. >> and i'm willem marks. "worldwide exchange" is up next. jimmy's gotten used to his whole room smelling like sweaty odors.

yup, he's gone noseblind. he thinks it smells fine, but his mom smells this... luckily for all your hard-to-wash fabrics... ...there's febreze fabric refresher. febreze doesn't just mask, it eliminates odors you've... ...gone noseblind to. and try febreze unstopables for fabric. with up to twice the fresh scent power, you'll want to try it... ...again and again and maybe just one more time. indulge in irresistible freshness. febreze unstopables. breathe happy.

markets now. wall street looks to kick off the week in the green with the dow, nasdaq and s&p all sitting near record highs. dialed in. why two major apple investors are calling on them to address iphone addiction among kids. power and protest. the women of hollywood making their message loud and clear at last night's golden globe awards "worldwide exchange" begins right now.