welcome to "street signs." i'm will electric marx these are your headlines shares in european ship makers are higher after asml raises its outlook. another drug deal. sanofi buys ablynx i'll be speaking to the chief executive at 10:30 central time.

global bonds fall as yields hit a monthly high positive for the first time since 2015. and release from a gilded case saudi investor, alwaleed is freed after reaching a settlement with kingdom officials. it's been a flat start to this morning's trade the stoxx 600 down there very lightly. less than 0.1 of 1%. as we take a look at specific markets across the continent, you can see what's driving that very small downward pressure ftse off 0.1 and the cac will slightly down

let's take a look at the sectors and see the action there basic receptors, up 1% auto down 0.5% let's take a look at specific stocks now ams has nearly doubled its revenue. posting over 1 billion euros for 2015 and raised its outlook that's boosted from customers like apple ams expects revenue growth flew 2019 you can see other action, micro ceus in austria up, stmicro and the same for dialup up 5% this morning. let's talk about president trump. he's indicated he's considering taking action against the european union against its trade practices. in an interview the president

accused the eu of being, quote, very unfair to the united states his comments come a matter of days after the u.s. imposed tariffs on imported solar panels and washing machines the president said he was a proponent of free trade. he said he's keeping an open mind on trade pacts including the transpacific partner nipp and nafta. >> i would keep tpp. but we had a horrible deal nafta was a horrible deal where we negotiated it may terminate nafta, may not we'll see what happens and nafta -- >> so are youreopening up the door to reopening tpp? >> i would say this, i would do tpp if we were able to make a better deal. the deal as structured was terrible

if we did a substantially better deal, i'd be open to tpp >> that's interesting. >> are you surprised to hear me say that >> yes >> don't be surprised. like the iran deal was a bad deal >> maybe not nafta you can give me any indication of which way you're leaning. there are a lot of ceos that come on here and they all seem to acknowledge it's 30 years later. >> we have a trade deficit with mexico mexico, $71 billion a year, right? we have a trade deficit with canada of a substantial amount of money i have a number, but they keep arguing, i won't say it, i won't tell you it's $17 million, okay? we have a trade deficit with canada we have a massive trade deficit with mexico. we've got to do something. >> are you leaning towards staying in or going out? >> i've always said in the

campaign which you actually said a couple times which i've appreciated. i have four years and maybe another four years we have a $71 billion trade deficit. we can't have that will it be renegotiated. we're trying right now, i think we have a good chance but we'll see what happens >> that was president donald trump talking with my colleague joe kernin last week one of the things we talked about briefly before we saw that interview clip was the idea that trump is calling eu trade practices unfair and back in december, you had both finance ministers and the commission, so the tax overall plan that president trump was going to sign into law was itself goes to create unfair trade practices.

is this the new concept of trade between the european union and the u.s., you think? >> yeah, it's possible, certainly. wilbur ross the -- >> dismissing the european >> dismissing that idea of lower taxes benefitting u.s. companies and therefore making them at an unfair advantage you could argue depending on the percentage, slapping the trade deal or making it harder to operate. it's still different in terms of how a company can operate. >> watching that speech and he's phrased it quite carefully, is it significantly different on what he's said on trade before >> well, no, it's always been america first. he softened the tone by saying america first is not america alone. but essentially, it's still the same idea. but we're promoting strong

american growth. and other companies and countries are willing to come along with that, to take part in that, but not that the u.s. is going to engage in a lot of bilateral deals and joint efforts and really collaborate, they're really here to compete he said that all along >> it's interesting. consistent in some language. but in terms of the news we've had coming out of u.s. companies and their trade outside of the u.s., there's a bit of a mixed message. because we have the solar panels being slapped with tariffs washing machines thrown in there as well. i think what's striking, you got the itc coming back and saying, actually, we don't think boeing is being disadvantaged by this deal with delta. so, if you're an investors looking at the situation, is it clear that the u.s. is winning in terms of backing out the words that we're talking about >> well, no, because with the

interview that trump gave with your colleague, but the idea that trade deficit is unpalatable, we want to see plus columns in each other that the u.s. trades effectively. the real question is investment, if the u.s. government wants companies to come to the u.s., provide a higher tier and saw them, it's unfair to think of a global supply chain existing in a vacuum with strong trade ties to bring in labor and it's a bit of a mixed message. >> with that boeing bombardia deal, and seeing that essentially don't worry we're going to start building these in alabama, is that the kind of thing that the trump administration wants to hear and is that enough for them to soften their stance?

>> i think so. the main thing they've been positive on is the amount of production operations within theth u.s. they've looked for notable wins. boeing is ways they're still going to see it becoming competitive elsewhere, other companies could see a major insvelte in polsolar panes >> it's directed in theory on china, that what we hear, but it essentially kicks off its examination of it. it's specifically a german firm. and then the charity owned that's not going to benefit the u.s., is it? >> this is the thing, u.s. companies are so heavily involved also because inputting basic component to be, you know,

compiled into a solar panel in the u.s. >> they're not all made in the u.s., that supply chain? >> exactly, exactly. what's particularly interesting in terms of muddying the waters on the policy stance is this very sharp language with the eu. and trump was saying he was willing to deepen the value with the uk >> thank you for joining us. global analyst talking about trump and trade tariffs. let's talk about trump more. the administration is set to submit its immigration plan. and the white house is going to discuss the border with mexico and legal immigration. and president trump's daca

offer, that, of course, is the one focused on that is designed to secure support from the democrats from the administration's long-term budget proposals speaking again to cnbc at davos last week, president trump said he's confident an immigration deal can be reached to avoid another government shutdown, take a listen. >> you look at every poll that says they made a mistake -- i don't want to say that schumer got badly beaten why should i say that? i'm not going to say got badly beaten you look at what happened, they want security. and they want daca taken care of >> yeah. >> most importantly, they want a strong border. they don't want ms13 comes into our cities you know how many of these people we're getting, these are horrible, horrible human beings. they came here as horrible human beings joe, it sounds terrible, they don't shoot somebody, they cut them up into little pieces because it's more painful. i don't want them.

we are taking them out by the thousands. by the thousands we don't want them coming in but we're going to take care of daca nobody wants to take care of daca more than myself and the republican party and the republican party is unified at a level -- paul ryan called me the other day, i have to tell you, mr. president, i've been here for a long time and i've been part of the republican party and i've been watching it for a long time. for many decades i have never seen the republican party unified like it was under your presidency and that was paul ryan and i felt that was a very nice statement. very nice statement. and i think mitch mcconnell actually feels the same way. we want to do what's right we're going to do what's right and we're going to solve the daca problem and i don't think the democrats want to pull another ship down we need a little more time i want to get the problem solved

kren correctly. >> speaking on the trump white house, former secretary of state robert gates warned that nobody should rejudge the outcome of the investigation into russian election meddling. >> the bob rumueller is a man o extraordinary character. i can't think of anybody who would do a more honest and stand-up job of conducting an investigation. and you know, people need to be prepared -- people are assuming he's going to come to one conclusion >> right >> but people need to be prepared that a guy like bob mueller may come to a different conclusion that will elate some people and anger some people. but i think he's -- i think i have total confidence in him meanwhile in afghanistan, the taliban has claimed responsibility for a weekend bombing in kabul that killed

more than 100 people it's the third major assault in the past week and the worst to hit the afghan capital in years. the attack took place inside the government's security barricade known as the ring of steel that is close to several foreign embassies. nbc's lucie cavanaugh reports. >> reporter: chaos, the weapon, an ambulance packed with explosives, targeting a heavy street the gunman got past a security checkpoint by saying he was taking a patient to the hospital there was panic as they ran for their lives. the wounded rushed to a nearby hospital some of the victims were children the red cross tweeting ambulances are for saving lives, not destroying them. the taliban claimed responsibility for the massacre. it's the second attack in the capital in a week. taliban battled security forces

for hours at a luxury hotel in kabul. americans were among the two people killed. and 90 miles east many are ask when the violence will end lucie cavanaugh nbc news coming up on the show, the republican's national finance chairman steve wynn has resigned from that position amid sexual harassment allegations. e omhe wh ivfr treit that story

welcome back to "street signs. asian listed shares in wynn resorts fell sharply in today's session after "the wall street journal" reports allegations of sexual misconduct against the firm's ceo steve wynn. he denies his allegations but says he's stepping down as function chair of the committee to void the distraction for the

party. our colleague is there how badly has this news hit wynn shares in light of that news today? >> reporter: well, you know, what we're seeing in the trading today, widely expected shares closed down 6.5%. 2805, not quite the magnitude of losses that we saw on wall street on friday with wynn resort, the parent wiping out $2 billion in market value. now, we got in touch with the market regulator here in macao, trying to figure out, if they're getting that information on the back of nevada and massachusetts regulators for this part saying they're looking into the situation. massachusetts reviewing the company's license as they're preparing to open up boston harbor, a $2.4 billion project in 2019. so, nevada, they say they're

aware of the situation and reviewing the situation. as far as macau dealing is concerned they say they're going to review our requests as to whether or not they're taking a closer look at this. so, we don't have any more information on that, we will bring that to you as and when we get it we did approach wynn macau here. we got to wynn resorts the company says they're deeply committed to ensuring the safety of all employees and operating at the highest standards this after steve wynn on his own part strongly denied the allegations of misconduct saying the idea that i ever assaulted any woman is preposterous. it's going to have little or no eck on the operations of macau he makes the bulk of his money from the operations here about 80% of the operating income comes from this side of

the world. this city, in fact we have wynn palace, as well as wynn resorts just here in macau. now, a lot of pressure here on shares here. they're expecting investors to be rotating out of wynn ma cau like sands china and entertainment. and even closing up the day 1% as of the end of the fourth quarter market shares, 17% for wynn and we're go to be watching, of course, how this continues to unfold the worst case scenario, now, we're just speculating here, talking to analysts that steve wynn would be expected to step down we're not saying that this is going to happen. if and when it does happen there is suggestion that there may be m & a activity and for players that want to get into the macau market that haven't yet come here. but there's a lot of work in the

pipeline as far as the u.s. listing. he's got paradise park currently under construction, that is a water park in las vegas. alongside a new land parcel that he got next to wynn and his encore which is the two landmark properties that he owns in las vegas. regulators could potentially even take away his license this is just in the worst case scenario, we're going to continue to track his story, coming to you live from macau just outside of wynn palace, back to you guys >> thanks, emily we heard from the board in the past that the individual personality of steve wynn is so crucial to that business, if he would step down it would be a significant impact here in europe, bankia lost in the fourth quarter. knelt interest but bankia did see profit come in ahead of

expectation at 77 million euros. ♪ now, italians will go to the polls in just over a month's time and the country's former prime minister matteo renzi has come under fire for stuffing his allies while shutting out rivals polls say italy's trailing and polls show no single party will come close to winning an outright majority. last week at the world economic forum our colleague sat down with the prime minister today and asked him whether he's willing to enter into a deal with the former presence >> to a direct answer, the answer is no, but the fact is

that the central right coalition is a coalition among very different position so, we have two part of this coalition, one is a conservative party. and the other one, but the other two are populist anti-eu parties. i think that this coalition will not stay in place. >> the current prime minister talking there. joining us from milan, how could the various options impact italy in the forum, claudia? >> really, that's a big question we heard from him and what we see from the graph that you showed which indicates that not one particular party or

coalition will have the majority, it's clear that there will be uncertainty. that is something that italy very accustomed too, of course but still there's a situation back to growth, gdp growth for from 2017 is at 2.5% range if this is derailed, of course, that would be very negative. so, the question is how much in the last six weeks of what is political language will actually put at risk these forms. because the promises that these parties and individuals might be making is pretty significant and they could somehow slow down at best and maybe bring to a halt at worst what is a positive direction that the italian economy has taken. also, of course what we heard from davos last week is what role will italy be playing in the future as we know this is a

delicate time for europe and as he says it's a very opportunity for europe right now, and what role italy can play there actually as the elections turn out if italy plays its cards well they could have them put well in terms of the future in the mediterranean area we do know that migration say big issue and if it gets its members in order, the bank situation seems to be finally panning out, npls are being reduced. the idea that italy will be able to confront its huge debt in the next years is also an option so it's important that the elections do not derail all of these option us and italy's possibility to play a role in the future we'll have to see what happens in the next week to see how much these parties may put on the table in terms of negotiations to get some sort of a workable coalition moving forward after the election so, we'll definitely be following this story have been slowly, willem

>> thank you, claudia. that is our colleague from milan. coming up in the show, more m & a as sanofi in a deal 3.9 million euros. we'll be talking to the a "b" ynx ceo edwin moses just after the break. please stay with us. for your heart... your joints... or your digestion... 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.

i'm will lem marx and these your headlines another day, sanofi buys ablnyx. shares in european shipmakers under fire after raising the doubles of revenue in 2017. global bonds fall as yields hit multiyear highs with the germth five-year trading in positive certificate since the

first time twins 2015. and released from a gilded cage, oddity prince alwaleed is freed in riyadh after reaching a settlement with officials with the kingdom. let's take a look at the european markets so far this morning. there's a bit of green on the board now. it looks pretty positive across the continent with the ftse 100 up .05%. the cac in paris up slightly, and the ftse mib just up 0.14% we want to talk about global bond deals among the most notable moves is the german five-year yield which

traded above zero for the first time since 2015. elsewhere, the u.s. hit a high, going back to 2008, and the uk, highest yield in three deals france's sanofi will buy ablynx. shares are trading higher after being temporarily suspended this morning. we're joined by joan by edwin moses of ceo-ablinx. mr. moses you've done well >> i think the shareholders have a great deal we're very pleased for them. we're very pleased sanofi is the potential acquirer of the company. we think they really do appreciate all of the technology and assets we have and we look

forward to working with them >> you seemed to get a massive premium on that price ever at first discussion about a takeover i mean, do you really think your company is worth what they're paying? >> i think we've had a tremendous ride. i think you'll note that in october we had fantastic results with the most advanced components we hope will get to market this year we had a very successful ipo in the back end of october raising over $30 million and now, as you say, we've obviously been pushed in the spot light and people are able to assess what we have as pr programs but technology. we certainly hope people realize what sanofi have >> for those who don't follow it as closely as you do, what is it about them that makes it so

desperate to buy you >> we have antibodies. they've been adapted for use in the pharmaceutical industry because they're very specific and high have efficacy in belgium, with animals, camels, llamas, alpacas produces much smaller antibodies. and they have interesting properties not just very small, but very substantial and you can deliver them directly into the lung and we've got for rare blood disease. we have assets for diseases with higher medical needs and extremely powerful technology that we have applied across other areas that i know sanofi feel they can apply. it's a combination of assets and world class technology >> it's no secret that you would have been happy remaining as a firm it seems like companies like

yours faced on bio-tech just can go it an anymore >> the fact that we've got to close to 4 billion euro valuation in this traction shows how far we've come a number of multibillion euro companies around europe and we think there are many of them because you're right we do want to see some companies remain independent. but we're very happy ourselves in the home we have here we see great opportunities to learn from sanofi's broad expertise. and to see core technology into medicine and treating patients in the future. >> just looking at it up 20% clearly your shareholders will be very happy with this. what about partners that you partnered with do you think they'll be happy that sanofi has taken over >> i think they know we will honor those contracts to the letter which we've signed with

those companies. so the relationship were inevitably be somewhat different but the contracts will be completely honored >> mr. moses thank you for joining us we're joined by john ramsey to talk about this picture in the pharmaceutical sector. this does seem like one of the many, many deals with sanofi spending billions of euros in a short period of time what's going on? >> indeed. i think it's a good demonstration that big pharma are very much paying top dollar for technology and assets. the prices are going up and up they're going higher 120% premium for this one. 94% premium for verativ which we saw a week ago >> they're paying a lot. presumably at some point that means prices will go up.

what does this mean for consumers? >> i think for consumers, edwin made a good point the capital that sanofi has behind it the same with j & j of just a year ago. the capital there is enormous. particularly with the amount of almost free cash that is sitting around, that can bring capital and disease understanding. so, although they're paying an enormous amount, they are going to bring more medicines through with the stability of that capital. >> you talk about free cash going around, that's the enough to do with central banks, if they do, do you expect to see a lot left consolidation, do you think it will slow down? >> i think these three deals, the three ones we've seen in the last month or so, i wouldn't say it's a massive trend that's going to go on and on. at some point, it has to end the price is just getting too high whether it's the contraction of the bond buying and so on, with

easing >> and just looking at these early stage bio-teches, the question for mr. moses is if he'd want to continue on his own that firms would like to do, do you still think that's possible? >> it's possible at some point, the price gets so big that the shareholders can't refuse it it's a fantastic company, 400 people, doing a really wonderful job of creating a pipeline, a great technology, and just about this year to launch a new product. >> they would possibly their money, who would say no to that? >> well, it's very hard for shareholders to say no to that these days ablynx did a great job of connecting with the technicians, they knew how to develop

products and that's essentially what sanofi is paying for. >> across the line, who is it that -- >> i hesitate to put people in play, you look at genmap and gall ga galolapolos, the question is can they continue to be on a roll and commercialize,that's what they want to do. they want to be successful that's why people join the companies for. whether they can keep that thing rolling while big pharma has big money to spend >> avoiding the big pharma and big money, what are the possible road blocks that you mentioned there? >> they can certainly grow as independent companies and they can commercialize themselves and with the availability of

capital, it works two ways, gentlemen, sanofi has the capital, and yes, big pharma, but also as edwin pointed out, he has raised money on nasdaq. and it is possible to build companies themselves and become potentially the next amgen of europe >> thank you very much now, brexit talks come back into focus later today a meeting of the eu general affairs council. this in turn will provide the commission with a formal mandate to initiate talks with the uk on a transition period after brexit but brexit sector davis has played down in the uk, on terms of that, speaking in middlebrook, mr. davis said he's

confident they can reach an agreement at the march european council, let's take a listen >> immediate goal, we will reach an agreement on the implementation period. and because it's largely the same, i'm confident political agreement can be reached at the march european council >> speaking to cnbc earlier this morning, britain's lord ricker states his opinion that the uk will be outmanured >> i worked with him twice as a minister, he will run rings around mr. davis we're in deep trouble as a country because of lack of direction in the government. and not exactly stating what the end game is after we leave there's this refusal of the cabinet to have a discussion about what it is we're seeking to achieve 27 will stay very strong, they'll stay very strong because they do not want to be 26 so we'll not get an easy deal out of this.

>> another critic of therese ma may's handling is tread president-elect trump. he said the uk needs to be, quote, tougher, with the eu in the divorce toalks he also promised britain a great trade deal once it's departed from the european union. speaking of toughness, ruling in favor of bombardier, in a dispute with boeing and bombardier had sold its jets into the u.s. market below costs but they claim two subsidies from canadian and british governments. the trade commission is tasked with deciding whether bombardier could be or have been harmed by that deal. the 3% recommended by the trump administration will not be applied to bombardier's claims if you have any concerns about that, please feel free to e-mail

the show, @streetsigns cnbc. ful you feel like it, don't m s hesitate to tweet me directly @willemmarx saudi prince bin alwaleed now is freed as we head to break, here's a quick look at what u.s. secretary steve mnuchin got up to behind the scenes in davos. managing to hit our colleague andrew sorkin on set with a well-aimed snowball. >> be nice

welcome back saudi prince alwaleed has been released he was reportedly freed after the attorney general approved a financial settlement prince alwaleed described his detention as a misunderstanding

and said he supports the kingdom's reform efforts my colleague hadley gamble has more on the story. >> kingdom holdings up for a second day after the release of saudi prince alwaleed. essentially showing his royal highness giving a tour of his suite. his release we've been told comes on the heels of the settlement he reached with the saudi government now, is the corruption probe over i had a chance to ask last week. listen to what the finance minister had to say. >> in reference to the anti-corruption, i think what i said in the beginning is very important. and the reform and starting that enforcement and cleared the level playing field that everybody is not before the law. that is what happened. this is something about that

for a month at a time. >> reporter: that was the finance minister telling us about the anti-corruption. and this, of course, all ahead of the major investment push for foreign direct investment inside of saudi arabia that's going to take place in february in marrakesh, i'm hadley gamble. and recently talking ing io alamudi as well. >> at some point, we'll be privatizing and allow be the private entities to buy into them that's not in the immediate term that's in a two or three-year term i mentioned some of the railways the east land bridge is going to be a project we're going to try to do it on the tpp. it's going to be challenging >> it's worth just mentions when talking about the private sector in saudi arabia, one the most

high profile executives there has been exonerated. he's ahead of one of the largest tv networks in the region. in russia, the leader navalny is now free. he was arrested after appearing at a rally where he pulled a boycott of the presidential elections. it was one of dozens of rallies that took place over the weekend. navalny was barred against it and will have to appear in court at a later date. the world's largest cryptocurrency heist has taken place in japan hackers stole about $528 million worth on friday after they gained about tess to one of country's largest exchanges known as coincheck digital currency prices rippled across the board with investor confidence once again taking a hit over the security of crypto

assets japanese regulators say they'll examine it in the face of other crypt currencies operate flg japan. erratic performance of cryptocurrency was a hot top nick davos last week our colleague geoff cutmore sat down with some of the world's best known figures including steve mnuchin and imf's christine lagarde to get their take on it >> we encourage innovation, but we want to make sure that all of our financial markets are safe and aren't being used for illicit activities >> there will be new things coming outside of these negotiations we need to make sure we make sure they do not fall to traps that steven was saying >> we should not turn our back

towards it, we should embrace it and work towards a global solution if we don't work towards a global solution, it will create systemic issues. >> it was a big night for the music industry with the grammy awards back in new york for the first time in 15 years as frequently the case, politics took center stage, the host of well-known names read excerpts from michael wolff the journalist look "fire and fury" on the white house and also taking part on u.s. ambassador nikki haley as well as donald trump jr in terms of awards, the obvious winner was bruno mars. >> the grammy goes to 24k magic

bruno mars >> reporter: music's biggest night, bruno mars, six grammy tweem, sweep. album and record of the year for 24 karat magic. >> i love you guys so much it's incredible. >> reporter: the night began with kendrick lamar which included symbolically gunned down one by one. >> it's a special world because of rap music this is the thing that got me on the stage, this got me to tour around the world support my family and ulf that. >> reporter: also earning three graemes, chris stapling. and best new artist. and white roses on the red carpet a show of support for me too and times up movements spirit which carried into the show. >> we come in peace, but we mean

business >> reporter: and extended into an emotional performance by kesha. ♪ changes >> reporter: joined on stage for a chorus of "praying." >> another one >> reporter: and artists reading including a cameo from hillary clinton. markbarton, nbc news speaking of domination, there are not many records left for tennis legend roger federer to break but he did so on sunday winning his sixth australian open in melbourne. federer became the first man to reach 20 grand slam titles after a taking marin cilic in a tough three-set win, at 36 years and 173 days old he becomes the

first man in the open era to win the sixth major. and in the woman's game wozniacki took on simona hall help wozniacki has never won a grand slam but she broke through in a grueling contest for for the third most game in the open era, wozniacki made her debut back in 2009 after the win will be now the new number one ranked woman in the world. now, ingvar founder of ikea has died at the age of 91. he turned the business he launched as a teenagers into one of the best known brands kamprad got the idea for the

furniture when he watched an employee take the legs all of a table to fit in a car. and we see the ftse just, very slightly above the flat line the xetra dax and germany do down.015 and the ftse down 0.1 percent. we take a look at currency markets you can see the euro weakening against the pound there. also weakening against the dollar and you can see it strengthening against the japanese yen as well as the swiss franc that's a marketed reverse to the massive slide last week. global bond value, the bond selloff deepens. among the most notable move is the german five-year yield which

traded in positive territory for the first time since 2015. else where the u.s. two-year hit and uk two-year highest level in three years. let's take a quick look at u.s. futures. a few hours ahead of trading in new york you can see all three major indices look to have a pretty soft open. the dow jones looking likely to open more than 76, 75 points down the nasdaq also more than 28, 29 points down. that is it for today's show. i'm willem marx here in london "worldwide exchange" is coming up right now

markets now. wall street kicks up a new week with a big focus on earnings, the fed and president trump's state of the union address the fallout continues. steve wynn stepping down as the rnc finance declare. we have the latest ahead and walking free, saudi prince alwaleed bin speaking out. it's january 29th, 2018, "worldwide exchange" begins right now. ♪ move what y'all trying to do ♪ good morning a very warm welcome to "worldwide exchange. on cnbc. i'm wilfred frost.