welcome to "street signs." i'm joumanna bercetche >> i'm willem marks. these are your headlines >> roads apart puget shares rise, and fiat shares lower after marconi said he had no plans to break up the company. >> everything else associated with nafta, as far as we're concerned, is manageable bp shares slip after the oil

company announces a 1$1.7 billin charge from the deep water horizon disaster and says cash payments for cases will rise to $3 billion in 2018. shares in hugo boss jumped after they beat sales expectations amid strengthening u.s. markets and robust online trade. and asian equities swing back as china fixes the one mid point at the strongest level against the dollar in two years. u.s. futures point to a big open for the dow after a long weekend there. good morning it is tuesday. you can see the handover from asia was strong overnight. hang seng has made new highs up 1.1%, on track for the highest close on record. we also saw good performance from nikkei up 1% in overnight trading. topix had a decent session

overall for europe the picture is more positive stoxx 600 up around 0.1% let's switch into european markets and see how things are shaping up there ftse 100 is the laggard there. we get uk inflation data in a half hour's time that's expected to dip a bit xetra dax up 0.2%. cac is flattic we have the macron meeting coming up later this week. in germany as well we have had a slew of earnings come out this morning that are driving some of the performance. let's get into sectors and talk about some of those names. utilities are leading the charge up 0.6%. real estate having a good day, up 0.5%. to the down side, basic resources and oil and gas struggling there's a lot of focus on the bp story and the fact they had to post another 1.6 billion

let's get into u.s. futures. it was a holiday yesterday, martin luther king, as you can see the dow jones is set to open up a good 200 points higher. that gets it up to 26,000. we were only at 25,000 about a month ago. and this takes it to new highs, new record highs after one day off, coming in strong on the u.s. open. as i mentioned, we had a strong session in asia as well. full suite of green. nikkei and hang seng leading the charge another strong session in asia and another strong session in the u.s. as well >> chinese president xi jinping says calming influences must very veil when prevail when it comes to the korean peninsula, this after a phone call with mr. donald

trump. he said beijing is ready to work with the u.s. to help resolve issues around north korea's nuclear program and all sides should jointly have a resumption of talks this after officials gather in vancouver fto talk about pyongyang's nuclear ambitions. xi said the two countries need to work together to resolve trade disputes sticking with china, china's yuan extended its rally against the dollar after the pobc set its official yuan mid point at the highest level in two years bundesbank said it would include the yuan in its reserves the bank of france already said it held some reserves in the chinese currency lawmakers in the u.s. have

surged at&t to cut all commercial ties with huawei and to oppose plans by china mobile to enter the u.s it supported that american companies have been advised that any links to huawei could inhibit their ability to work with the u.s. government >> steven, big news this morning, at&t and u.s. lawmakers getting involved there when you hear these types of events unfolding, it's not the first time we hear it from u.s. lawmakers in the last couple of months, does the rise of protectionism in u.s. policies make you nervous about the investment opportunity in china? >> it's difficult to say these particular issues represent the entire bilateral trade

relationship if you're going to find a risk in the world, some breakdown in cross border trade would be high up it's risen relative to economic activity you know, again, this is not the entire issue futures are higher, there we are. the world economy is growing trade in asia is growing robustly again if you had to point to one single risk, probably more than political issues, security related concerns, cross-border trade would be high up on the worry list >> i guess the bigger question is who gets more hurt, the u.s. or china arjun, who is set more to benefit or to lose from the at&t and huawei story >> for at&t, it's not a big deal them not carrying the huawei smartphone it's a relatively new brand in the u.s. market. the bigger deal is for huawei they expanded aggressively over

the last two years practically had no presence in smartphones three years ago, now biting at the heels of apple this is a big deal because if huawei doesn't have a mobile carrier to go with in the u.s., it suffers when it comes to marketing and getting the product into the hands of consumers in the u.s so this is a big blow for huawei deal given this deal, ant financial and money gram deal being blocked, there's a lot of anti-china sentiment here when it comes to technology what kind of kickback does this mean for u.s. tech in china. >> you said this is not representative of the entire bilateral relationship i don't think anyone would say it is. when you have individual law americas in the u.s. lobbying lawmakers and killing deals in the water like this, when you expand that across the

relationship, you realize it's not just the administration, executive branch but legislators also involved in this, does that not worry you when you look at two of the largest economies of the world? >> when you go through latin america, you will see huawei, you will see asian technology. instead of thinking it's all iron ore, cyclical, you have good companies operating in a powerful local market, an economy growing rapidly generating probably $5 trillion of internal savings, this is very good for those companies. it would be better for the world if trade could integrate without these other concerns at a faster pace, but hopefully that's still to come. these are still companies that will grow and achieve a great deal even locally in markets it's not just limited to the united states. >> we have not heard from huawei about this they made slight comments about this they had a long history of

challenges in the united states. we have heard from the chief executive of airbus, mr. enders, yesterday he was talking at a dinner, he was hammering both the u.s. government, president trump, and boeing, of course that's his business model, he's competing against boeing you have outspoken voices coming through from non-u.s. businesses criticizing that protectionism do you see that as a major problem going forward? >> we had a great deal of concern about a year ago that we were going to see a marked breakdown in trade relations that could disrupt economic activity it's not to say the risk is gone completely, but it was probably an overrated risk. look wlat what has happened there have been nominal breakthroughs, and the willingness to get business done seems good is the world integrating in a multilateral sense the way it did for several decades? doesn't seem to be at least there's a cyclical pick

up in trade and no marked breakdown. you may see nominal problems over a particular industry dumping on this product or that product, to say that is interrupting economic activity is a stretch >> stay with us. i'd love to hear your views and how you're looking to play that from a strategy standpoint >> absolutely. speaking to cnbc, the president of china's sovereign wealth fund says the country is seeing problems making advances in other countries >> there are some protectionist moves, some targeting china. so what should we do i think while we try to seize the opportunities out there, we have to be innovate ef in hive

invest, have more partnership with local partners to reduce who protectionism. bitcoin prices are sliding today. the price for the cryptocurrency plunged by as much as 14% at one point slumping to levels not seen well since early december this comes amid increased controls by asian governments trying to get a handle on bitcoin trading. arjun, i feel like we talk about this every few days. it seems the minute there's bad news, bitcoin slides what is the bad news this time >> again, around regulation. bitcoin has been very, very sensitive to nicoises around the u.s. regulation. south korea is a key market for bitcoin and alternative cryptocurrencies if i look at ethereum and

rupparupp ripple down 25%. they're sensitive to south korean trade and to chinese trade as well. and we've heard noises that the chinese central bank says it is trying to ban these fairly unregulated cryptocurrency exchanges in china south korea said they're looking into what they can do around noises and where there is a ban on some of these exchanges, where some may get shut down that will likely have an effect on the market. these are key markets to the cryptocurrency trading pattern >> how are your clients thinking about it in the private bank cryptocurrency is the domain for individuals and retail when you see this much volatility, do people still want to get involved? are they exploring other mechanisms of exposure >> views are all over the map.

there's no consolidated view as to what cryptocurrencies are supposed to do are they to be a store of value, where you want an alternative monetary system? sometimes people compare it to companies, to high-tech companies that produce some good or service if it's going to play a large role in xhercommerce, we could interesting going forward. but there's been such a lack of volatility in other markets. you have a certain segment of the investing population that wants to get into something where they can make 15% in an hour and so what if they lose it it's getting that. that type of investor can gravitating to it. but there's no historical basis for us to truly kranunderstand d say this cannot be a core portfolio asset. something where we can have an honest to goodness risk premiu ,

so you can't evaluate on the same basis >> let's talk about volatility in a moment when we come back. i'm sure many of you have views on bitcoin and its volatility e-mail us about it the address is streetsignseurope@cnbc.com you can also tweet us address streetsignseurope@cnbc. coming up, sergio marconi says fiat will not be split up or sold. his outlook after the break. tra, we have a short amount of time to get our patient to the hospital with good results. we call that the golden hour. evaluating patients remotely is where i think

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rise psa say light commercial vehicles boosted sales growth was also seen in overseas markets. in the uk the company is struggling with its opal business. the ceo of fiat chrysler says there are no plans to split up the carmaker. sergio marchionne said we have no intention of breaking it up and giving anything to the chinese. phil lebeau caught up with mr. marchionne and began asking for his outlook for the auto industry in 2018 >> i think we'll look at a good market for '18 i see no indication of volume coming down below 17 million if we're going to be close to that number this year. conditions continue to be good we continue to invest. we're firm believers in the long-term viability of this

industry good shape >> ram 1500, the investment you have made there, everybody is investing heavily in pickup trucks how much further can that market expand in the united states? >> over the last ten years two thirds of the market has moved to pickup trucks and suvs. one out of two cars sold in the u.s. now is a new car. >> how much further can it go? >> if you got to a caughter quf the market cars, the rest suvs and pickups, that will be right. the capacity in trucks will be used >> one big concern at the show, what happens with nafta? nobody knows for sure what might happen how much of a concern is it for you that as they try to rework this in some fashion, you got plans in canada, in mexico, that you'll be dramatically hurt. >> i think that without the last

realignment we announced, just the repatriation of the heavy duty back into michigan, i think we were concerned. the withdraw of the united states from the nafta agreement would have triggered a tax on all imports of trucks out of mexico into the u.s. by bringing heavy duty back into the united states, we at least stalled that problem it will go away in the next couple of years. everything else, i think, that is associated with nafta as far as we're concerned, that's manageable. i'm no longer worried. the decision to repatriate the heavy duty was owed to the country any way. tax reform, the threat to withdrawal from nafta made that almost mandatory we did it. we're happy to get it done i'm not sure it's true of

everybody else i think others may be more exposed than we are now. >> which brings up the question, how much could the consumer be hurt if nafta is redone an other automakers have not made the adjustments you're making. >> it's more expensive for us to manufacture the heavy duty here than in the u.s. -- in mexico. it's more complicated structure. it has to do with logistics of the strinfrastructure we will get a big portion of the 1500 back and the taxes have made us more comfortable in underwriting that difference the consumer, in the absence of a realignment of production facilities will pay a price. it's not insignificant if you're the only one manufacturing in mexico and everybody else is back in the u.s., you have to wear it. the consumer will not pay the price if we're all there, it's a different discussion

as i understand it today, everybody else was in mexico today and they may have to swallow it in the absence of a structural solution. >> they may have to end up passing it along >> if the other guy doesn't have that cost, yes >> final question regarding tax reform a billion dollars worth of savings, talk about passing that along to the fiat chrysler employees. >> look, you know, a billion is a lot of money it was not part of our plan back in '14 it came across with a clear objective of inciting, motivating investment in the country, allowing for the machine to start using that wealth for other reasons i think the distribution of 2,000 bucks to our people was owed it's not my money. that money was intended for the constituency, including our employees. so we pay $2,000 to 60,000

people, it's partial distribution of the savings that we got the rest will be redeployed in capital. that's the right mix of benefits, if we are successful in doing what we're doing, we're bringing 2,500 people back into the fold brand-new jobs that never existed in this state. everybody wins i'm hopeful. if it works, i think it will, it will provide the desired result. >> bp announced it will take a 1$1.7 billion charge in q4 results sending shares lower the charge is part of the settlement of deep water horizon, the facility which is winding down the cash impact would be spread over a multi-year period steven is still with us on the show the energy complex has had a

fantastic start to the year. it's up about 7.5% are you still confident this performance will continue? >> you have to look at the energy sector. traditional petrol it booms and busts what happened from 2014 to 2016 was the bust it has recovery for sharp declines we saw in investment over that period globally. this still has some cyclical strength behind it we probably will not see for any visible period of time what we had back in '11 to 2014, which is oil above $100 on brent for any extended period of time because shale will come back but this sector was left in the dust for a good part of last year fundamentals were improving. no one believed it so i think it has a bit of a cyclical run still to it

it's not what i would call long-term recurring growth >> do you still want to be long cyclicals? s&p is up 4.2%, probably 5% by the end of the session >> if you look at 201, when 8, t comes to cyclicals we would rather be overweight markets this is a region where the eurozone where the last quarter of decline, the last recession ended less than five years a ss and for the u.s. it's going on nine years it's moving away from monetary easing in the eurozone, valuations are better. asia looks powerful especially for european investors who want to diversify these are areas we are expecting that would prefer the overweights there. for the u.s., there will be some great companies. and they're going to do very well in the long run in the technology sector.

that's a bit more limited from sort of the rebound story. you heard about autos. it's a full cycle. >> i want to ask about equities. i don't want you to predict a major correction this year, but you did mention earlier volatility is that something you are expecting? >> i think so. we're having a regime change in monetary policy. it's a transition. we have seen five rate hikes out of the fed, quantitative tightening it's getting further along all these regime changes don't have to generate a new economic downturn, but some rise in volatility it's not a difficult argument to say volatility will pick up from here >> how do you edge that? >> it's easy now because the expected ranges in financial markets are so narrow you give up very little on the upside to hedge. you can do this without being involved in markets every day. >> we will leave it there.

steven whiting global chief strategist for citi bank. macron is coming to the uk we will look ahead to his meeting with theresa may later on this week so why wouldn't you take something for the most important part of you... your brain. with an ingredient originally found in jellyfish, prevagen is now the number one selling brain health supplement in drug stores nationwide. prevagen. the name to remember.

peugeot. welcome back to "street signs. roads apart. peugeot shares rise after the french carmaker delivers global shares, and fiat share loers after marchionne sai he had no plans to break up the company. >> everything else associated with nafta, as far as we're concerned, is manageable bp shares slip after the oil company announces a $1.7 billion charge from the deep water horizon disaster and says cash payments for cases will rise to $3 billion in 2018. shares in hugo boss jumped after the german fashion house

beat expectations amid strengthening u.s. markets and robust online trade. and asian equities swing back as china fixes the one mid point at the strongest level against the dollar in two years. u.s. futures point to a big open for the dow after a long weekend. >> just getting data out of the uk this morning. we can see the december cpi numbers are up 0.4% for the month, up 0.3% for the year. matching expectations for that core inflation number. excluding energy, food, alcohol and tobacco, that's 2.5% we got some rpi numbers, 4.1% versus 3.9%. that's the inflation numbers out of the uk. >> just the thing when it comes

to the cpi, when it comes to the last print, the bank of england and governor carney had to write a letter to the chancellor explaining why it had gone above the 3% mark. now there will be no need for them to write a letter people say uk inflation peaked >> let's look at cable that's slid slightly we had a pretty strong rally recently against the dollar. now seeing the pound weakening about a fifth of a percent against the u.s. dollar. >> all right let's quickly look at european markets as well and see how things are shaping up there. as you can see, the picture in europe is more positive across the board, all of the major indices are trading in the green. ftse lagging a bit this morning. xetra dax leading the charge up 0.4% cac cac is also having a good day, up 0.2% this uk data helped turn the

ftse fortunes around it was in the red a short while ago. it has tipped to green now on the back of the weakness on the currency which has an inverse relationship with the equity index. switching to u.s. futures, it's pointed to be a strong open for the dow this morning up about 251 points higher, that would take the dow over 26,000 it wasn't that long ago we were talking about 25,000 and u.s. equities go from strength to strength >> it wasn't that long ago that we were seeing a negative open. so that's been turned around in europe, the eu could demand that the uk accepts the maintenance of strict rules on trade and immigration during a post brexit immigration period that's according to a new revised draft of negotiating guidelines drawn up by michel

barnier. the guidelines would britain would have to extend free movement rights, and seek permission to hold on to eu trade deal benefits. donald tusk said he is still open to britain being a member of the uk, but urges the uk to be clearer about its message after brexit >> a survey by allianz shows the risk of regulatory changes and trade protectionism are significant concerns for uk firms, but cyberattacks are the top worry. staying in europe, emanuel macron is heading to calais. later this week he'll meet with uk prime minister theresa may and the agenda is slightly contentious. back in 2003, the two countries

signed a bilateral agreement that extended the french border into british territory, but the brexit vote has made that arrangement increasingly difficult now paris expects london to cover more of those migration costs. disagreements have become highly public. this is nothing new. >> the timing is contentious, in the context of the broader brexit negotiations for the french, to ask the uk to pay more for bodier patrol and take in more asylum seekers, it will be a contentious topic >> if you look over the history for the movement of brexit,

immigration has been a key factor throughout, and the french here seem to be staking the claim that even if britain leaves the european union, because it's an attractive destination for migrants and because a lot of them spend time in france, that's something that the british authority also haiel have to hold financial responsibility for >> the other topic they will discuss is increased defense cooperation. within that context, in the backdrop with brexit discussions and the push back that we've heard recently from the likes of barnier, i find the timing strange. >> i think you have to remember, fundamentally britain has always said brexit will have no impact on the security cooperation with the rest of the european union i'm sure that's something that theresa may will stress to macron when they meet later this

week >> you will be covering that story. >> i will be out in calais for those meetings >> from politics to gender equality citi group is raising pay for women and minorities to close pay gaps in the u.s., uk and germany. the bank said the move follows a compensation survey which found on average women and minorities are paid 99% of what men and non-minorities are paid. citi will report fourth quarter results today. analysts expect earnings of $1.19 per share on revenue of just over $17 billion. the numbers could be overshadowed by the impact of the tax overhaul which citi last month warned would result in a 20 billion one-time charge kpmg could be in the cross hairs of an investigation after giving carillion a strong bill of health ten months ahead of its collapse the financial reporting council signaled it may launch an

inquiry into the accounting of the construction company. thousands of employees of carillion will face cuts in their pension benefits nearly 30,000 employee also see benefits shift to to the pension protection fund. the fund is still assessing the size of the hit it will take from covering carillion's promises, but initial estimates are between 800 million and 900 million pounds we are joined by tom mcphail companies like these run with a significant deaf kit is that because of lax enforcement by the regulator is it number fudging by the companies or wishful thinking? >> it's a combination of circumstances. the deficits swung quite a lot over the last few years, driven by interest rates, so low interest rates drive up the liabilities, which increase

deficits they're not as bad today as a couple years ago, but around five out of six are currently in deficit. there's pretty robust regulation it is being strengthened at the moment more pressure being put on trustees and the governance of these schemes to scrutinize the management of the schemes. but it's not in a bad place. most of these companies have in place deaf kit ficit reduction s which last up to ten years, whereby the company can put more money into the pension schemes to close the gap but the problem is if the music stops, the company goes bust >> how big is the shortfall in your estimate? estimates vary substantially the second thing is the interest rate they're using to discount, isn't it the case that companies also have a little bit of discretion in terms of what interest rate they choose and

that varies the net present value of your liabilities hugely if you look at tesco, only recently they changed the discount rate from 2% to corporate bond yields which added another 1% that had an impact of 2 billion pounds how do they get away with that >> the pensions regulator takes the view that it is acceptable for companies to exercise discretion over the discount rates used on pension schemes to reflect characteristics of their schemes. the aggregate deficit is around 80 billion it has been as high as 400 billion a couple years ago so the numbers today look better than previous. but these are slightly theoretical numbers, depending on which assumptions you use separately from all of this there's a strong government desire and on the part of the pensions regulator as well to try to distill down the number of schemes there's around 6,000 in the uk

a couple thousand of them have a hundred or fewer members the nature of these schemes is such that there's a view now we need better governance, fewer, bigger, better run schemes >> i have come back to the uk a couple years ago, trying to move one pot to another pot is like a kafka esqesque nightmare. why is the industry here so antiquated is it not right for disruption >> it is right for disruption. if you look at the more modern pension arrangements people are being put into, money purchase or define contributions, you are essentially buildings up a tax savings pot, you control where the money is invested, those are mu much much safer, but you have one company talking to another,

transferring money across, it is still slow when you look at those old define benefit pension schemes, the employer based schemes, sometimes it can take months to move the money some are still running on paper-based records. that comes back to the point that we want fewer, better-run schemes, to improve the systems they're using, to put you in control of your money. >> i want to talk about carillion specifically, and a lot of their pension liabilities will fall under ppf, the entity that takes the life boat if you look at recent situations of tata steel, what was supposed to be a simple handover turned into a massive debate. oftentimes those pensions that were supposed to be life boated

didn't have enough information on the scheme they were getting involved in. what would you advise people who are being faced to make a choice between going with the ppf or going to some private scheme as to what key indicators they should be looking for when assessing future cash flow payments >> it's difficult to offer up simple rules of thumb on this as you pointed out they were offered the old scheme or the new scheme or the pension protection fund. for something like that, it's difficult to make a decision without paying for professional advice for someone to sit down and run through the numbers with you and assess how you will be affected by that each individual had a different set of circumstances how long they have been in the scheme, how long they have until retirement with the carillion scheme, we don't know how it will play out. to your point, there's a dozen or more pension schemes here some may not be in deficit at the moment

some may not fall into the pension protection fund. there's a process that will have to be gone through, they will look at each individual scheme, see which one is in surplus, which one is in deficit, they'll have to negotiate as one of the creditors with the liquidators of the different companies to try to claim their share of the assets, perhaps to get more money into the schemes this will be a drawn-out process. for individual members they will have to wait and see how it plays out. they will get more information in due course. they may as part of the process want to pay for a professional, independent financial adviser to help them decide what's the best choice for them. >> one more big picture question about defined benefits i se you seem to think these scheme also get phased out or go the way of the doodoo.

how do you encourage younger generations to save? >> the government is doing good work, they are bringing down the age in which people are initially put into pensions. it's brilliant behavior, it has worked on getting more people saving the challenge from here is to encourage people to take ownership of that and take a view on how much they're saving, whether they're putting enough in or the employer is putting enough in. when they can afford to retire, for younger people today it will be later than the fortune of baby boomers who retired in their 60s. those days are gone. this is much more of a personal challenge. >> thank you very much for that. coming up on the show, the u.s. government shutdown looms with no immigration deal in sight. we'll explain after the break. jimmy's gotten used to his whole room smelling like sweaty odors.

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welcome back to "street signs. the u.s. congress has until midnight friday to close a deal

on a variety of issues before government funding runs out. we're heard this story before. many democrats said they won't vote for a spending bull until an agreement on the dreamer s act. but after that explosive meeting with trump last week, it looks unlikely the two sides will reach a deal on the daca program. hallie jackson has this report >> reporter: in a jarring juxtaposition today as the president's cabinet honors a man who spent his life fighting intolerance, the president himself is battling questions about whether he's racist. >> no. no i'm not a racist i am the least racist person you have ever interviewed. that i can tell you. >> reporter: donald trump ending his holiday weekend in palm beach on his way back from his golf club passing demonstrators waving haitian flags it's more fallout from those oval office comments in which the president during an immigration meeting reportedly

favorably compared people from norway to people from countries like haiti top democrat dick durbin today is standing by his initial statement that the president at the time called african nations s-holes. >> when he denied saying it, i felt duty-bound to clarify what actually happened. >> reporter: that pushback is earning the senator a new nickname from president trump. "dicky durbin," he tweeted "totally misrepresented what was said at the daca meeting deals can't get made when there is no trust. backup from two republicans allies in the room said they did not remember the moment in question now -- >> i didn't hear it. >> i'm telling you, he did not use that word. >> reporter: another republican who was there, lindsey graham, wouldn't go that far. >> it's pretty embarrassing when you have to take your children out of the room just to report the news >> reporter: the trust issue and the collapse of it comes at a critical time when a breakdown in bipartisanship might shut down the government four days

from now republicans need democrats to cut a budget deal, but some democrats digging in want any deal tied to protection for so-called dreamer s. >> a majority of my caucus and myself included will not fund the government without a daca deal. >> that was hallie jackson. lindt is trading lower after weak sales in north america. the chocolate maker says markets were sluggish last year. annual sales rose 4.8%, primarily due to its premium priced segment >> enjoying those bunnies they're rolling off the conveyor belt there. hugo boss opened sharply higher after better than expected fourth quarter sales. it cited growth in the u.s the german fashion house says the result shows changes that are being made to collections in stores are working

pandora is trading at the top of the stoxx 600 as it says it expects full-year results in line with strategy and growth up to 10% incyurrency >> wasn't so long ago that was trading at the bottom of the stoxx 600. >> it's a volatile stock fortunes have turned around. ericsson announced needs to re-evaluate u.s. tax assets due to the tax overhaul. the telecoms company says as a result of impairment testing it will take a writedown of 14.2 sweder krona. and robo advisers will shake up the corporate consulting study with dell looitte saying e market will grow to $7 trillion by 2025. there is a chat bot earnest

which will use facebook messenger. and paolo galvanni, the chairman of money farm is joining us this morning what was the average return on the portfolios that money farm invested in last year >> we had return that ranged between 2% and 10% on average depending on the risk that you're basically associated with the core of the exercise helped people find their exact position in terms of risk >> i know you said the guidance for this year is positive. for 2017 you did report a 6.4 million loss why is that? >> when you're -- we can't call it loss. we can call it investment. when you're building something completely new on the retail advisory service, you need to invest money to position your

brand and basically take a piece into this very complex industry, right, dominated by large corporations and industries. you need to invest money to build a product and position yourself >> you transferred from italy to the uk how different have you found the market here in the uk versus italy? >> it's interesting. there are elements that are similar. the advisory gap concept is something you can feel across europe, independently whether it's italy or uk it's interesting in uk you find much more digital interest and openness towards different solutions while italy is still, i would say, relaxed and embracing pure digital solutions. there's also something very important in the uk, which has been the rdr in 2012, which has xwl basically touched base on the problem of advisory and selling

problems, this topic has been tackled directly from mifid ii in the last few months >> there's a question on the algorithms how often do you change them as more and more people enter the market, the strategies are similar when you look at back testing certain segments of the market any facility whereby you're updating the algorithms as the market moves on or incorporating machine learning >> i think it's important to take a bit of a step back in terms of the technology point on these. so, where technology plays a bigger role is in the ability to advise people independently on the amount of money. so the questions, the answer and the mode that helps them associate risk with solution when we have investment, with you use quality and quantity approach so we have a strategic asset

allocation once a year run by a team and we basically analyze every two weeks and rebalancing every three months >> we leave it there i'll watch this space. very interesting paolo galvani of moneyfarm u.s. futures were not looking good a few hours ago, now it's a positive opening for the dow jones. dow jones opening up almost 270 points at this stage i'm marks & spencer. willem marks. >> i'm joumanna bercetche. "worldwide exchange" is coming up next.

dow futures surging higher, up more than 250 points. we'll tell you what's fueling the big gains. the three big things to watch from the auto industry this year. we're live at the detroit auto show. and cbs is getting real in a big way. the move that has everyone buzzing this morning it's january 16, 2018. "worldwide exchange" begins right now. good morning a warm welcome to "worldwide exchange" on cnbc. i'm wilfred frost. >> i'm seema mody. good morning to