. welcome to "street signs." these are your headlines keep calm and carry on the chinese stock market stages a laterally as officials step in to reassure invests after third quarter gdp disappoints. power plant problems shares in bouygues plunge as it cuts its profit guidances citing challenges among several energy projects. red elsewhere on the french market michelin hits the skids after

cutting forecasts and softer demand in china. and italy's ftse mib slides after the eu rejects rome calling the budget an unprecedented deviation from eurozone targets good morning happy friday let's check in on how markets are doing. u.s. markets ended the day in the red yesterday led by the tech sector. dow closing more than 300 points lower. overnight a mixed bag. chinese stocks are trading very much in the green after a miss on gdp numbers we'll talk to eunice about that shortly. the picture for europe, slightly weaker let's switch on and talk about

the breakdown in individual markets, starting with ftse 100. we have the only index trading in the green, up about a third of a percentage point. the rest, as you can see, is firmly in the red. again, another very weak day for lit after we are getting comments from the eu commission. we'll talk to willem about that shortly. that's the picture across the three different markets. it has been a big earnings day we'll talk more about some of those stocks that are reporting today. first, let's talk about china. chinese economic growth is now at its weakest level in nearly a deca decade gdp dropped to 6.5% in the third quarter falling from 6.7% in q2 and a rare miss on forecast. that's amid mixed prints and other key activity indicators. fixed asset investment came in

higher than forecast, but industrial production missed the mark chinese markets have closed higher after a volatile session after top officials issued statements to calm investors the pboc governor said volatility was mainly the result of expectations and emotions and the vice premiere says the government attaches great importance to the stock market's healthy development. eunice joins us live from beijing. i'm surprised on a day when gdp print came out lower than expectations that some people are saying this is just the beginning of a sharper slowdown. shanghai index yet is up 2.6%. >> that's the power of the comments we heard from the beijing leadership top officials had a big impact on market sentiment today. in an interview with state

media, the vice premiere, president xi jinping's economic czar, said that he's been following what foreign institutional investors believe and he says they believe that the stock market selloff could be good for the shanghai stock market longer term he also acknowledged that the u.s./china trade war is having an impact on sentiment he says that u.s. and china are in touch though he did not elaborate much more on that his comments came after the chief of the central bank, the securities commission, and the banking regulator all put out statements to try and allay the fears among investors. the banking regulator specifically had said that the stock market performance that we're seeing in china does not have any bearing on economic fundamentals he's trying to disassociate the two. and in fact what we saw with the economic performance was pretty decent performance it was 6.5% for the third

quarter. so that puts the economy on track to meet its full-year growth target. at the same time it missed expectations so we're starting to see in those numbers a little bit of evidence that the trade war is having an effect on economic growth the exports for the quarter looked strong. but when you look at the industrial output figure, it fell again what you put that together what's happening here is manufacturers have been frontloading orders to try to get everything out before president trump's tariffs kick in in full so a bunch of analysts have been putting out reports believing that export growth in the fourth quarter could taper off and that could have an effect on the overall gdp growth outlook

>> at the end of the day, one of the reasons the shanghai is doing well is because of this promise of extra policy support. we heard the pboc governor saying they're looking to roll out measures to help companies with financing is this not an admission on the policy americas part that the economy is actually slowing down and they'll have to do something? >> they've definitely been saying they'll do more stuff to sport the economy. the statistici ins bureau todayi we should expect more infrastructure investment in the coming days because that and fai generally helps to support the economy. there are several things they're putting in place to safeguard the economy. they've been trying to clamp down on all these problems they

have in the financial sector which is negative for growth, on the other hand they're facing washington, which has been promising to hit them with mor and more tariffs so they're in a situation where they see a protracted trade fight and they need to do something and probably many things in order to try to keep the economy going since growth still obviously for a lot of the authorities here is a priority >> the big unknown at this point is how much they are going to get impacted by this ongoing trade war. eunice, thank you for bringing us the latest. i want to broaden out the discussion with thomas moore from aberdeen standard investments. thank you for joining me highway are you thinking about these china gdp numbers? i read a bunch of reports this morning, some analysts are revising downwards forecasts for growth for next year many are beginning to say we may see sub-6% growth out of china what does that world look like >> there's lots of noise and

chatter about the trade war, but what we're focused on is the data as far as commodity prices, electricity consumption, it's fine it's holding up. if you look at steel prices, they're not highly speculated. this is a pure indication of demand out there it's holding up fine >> you say that but then the chinese stock market is very much in bear market territory. we're not even in correction territory. we're down in the shenzhen 10% or so. if things were fine, markets would not be reacting so negatively >> there are pockets of volatility there's a pull between growth and value going on if we look at the uk market, commodity sectors there look fine it's not expensive valuations are fine. demand is holding up so we're relaxed about it. >> the thing about china, when you think about stocks, you think about them in the context of growth, they're growth

stocks you buy them because you believe in the growth story. after today, and after what eunice was saying, and that many companies have been front loading exports that helped boost this already weak number, on a forward looking basis analysts will have to revise down growth forecasts and therefore revise down potential upside on some of these stocks >> china remains in control of its destiny. you shouldn't underestimate the power of the chinese state to influence outcomes there's a lot of pessimism out there. if you look at the actions they're taking, their taking actions on liquidity, cutting reserve requirements, making sure the economy holds up. if you look at the hard data, gdp is man made. they admit that. if you look at the cold hard data out there, it's not pointing to a big slowdown >> are you buying stocks here? >> i'm buying stocks with that exposure, particularly

resources. i think resources is a coiled spring we have good data. we have a good supply dynamic as well we have demand holding up globally despite the noise what about some of the big chinese tech stocks? we've seen a re-rating of the tech sector in the u.s there's been a massive re-rating of chinese tech stocks, which some of them, tencent, were loved a year ago but have fallen far from grace there how are you thinking about chinese tech stocks given what i told me about the valuations >> there we have to be more careful. valuations are stretched that's crew across technology, across the world clearly it's a big influence on the chinese market and the u.s. market less important for europe. we see that stretch as vulnerable >> if the authorities allow the currency, the yuan, to fully deprecate and break through that 7 level, because they have no other option, either because

they want to retaliate against the u.s. or because they're concerned about a slowdown in the economy, would that cause you to reassess whether or not you want to reinvest in china? >> we need to see action being taken. we need to see the response from the government in terms of reserve requirements and other liquidity action ultimately they have control it's been the wrong thing to do to bet against china the last few years. dent bet against china on a multi-year view. >> it's great to have you with me, thomas we'll continue in a bit. italian plastic manufacturer piovan is higher after making its debut in milan it is a rare ipo after a number of companies decided to withdraw

listings in recent weeks due to market volatility. the ceo of piovan group joins me on the line. congratulations, sir, for the ipo today. i have to ask you, why did you decide to go ahead with this listing given so many competitors pulled out due to market volatility? >> thank you very much for inviting me. well, okay yes, the market has certain volatility that's clear but overall we have a long-term vision of growing the company and expanding on a global level. and we have to see the profits on this view, on this long-term view we're not really into the volatility of the day. we believe in the process.

we believe in the vision which we have, and how ambition is judged in the next few years >> i see you had to raise the guidance by a bit ahead of the ipo and the listing today. are you satisfied with the amount you raised? >> yes we are satisfied even though we had encountered some difficult moments in the markets because of the market situation being bad, we have a certain political instability in italy, we had very good levels, particularly for long-term investors, investors which look at the fundamentals of the company, investors which are looking to good companies with the hopes of expanding and developing the business. >> we spend a lot of time looking at markets here. we've seen a re-rating in the

equity markets the ftse mib is down officially 20% this year. we also have bond yields moving higher the ten-year yield is almost touching 4% now. are you not worried that your funding costs will go up in the future as a consequence of what your government decided to do on the fiscal and budget side of things >> not really. we are not worried about varying interest rates we are generating cash strongly, and most important we are exposed to international business our dependence on italy is minimal. we're not concerned about instability in italy what is your biggest concern for next year? as you say, you're exposed to the international business does that, reading between the lines, does the discussions between trade wars and tariffs, tensions between the u.s. and

the eu, is that something you're watching closely >> we are watching closely because it interests all of us our business model in the u.s. we manufacture locally in america if trump decides to impose tariffs, the only effect would be taking away our japanese and european competitor in the u.s >> so you're not seeing indication yet of rising costs due to higher import costs or higher raw material costs on the back of these trade war discussions and likely extra tariffs? >> no. we don't expect that we manufacture locally, we procure locally, so we don't expect the dynamics of the business to change for us. >> all right

thank you very much for joining us on "street signs" and congratulations for your listing this morning the ceo there from piovan group. if you want to get involved in the conversation, follow us or tweet us @streetsignscnbc or tweet me at cnbcjou. coming up on the show, sterling jumps as michel barnier promises no hard border on the island of ireland. more on brexit when we come back every call is different, so the only thing that we can do to make sure that we get there safely, and that we leave that scene safely and go home at night, is train. and we train all the time in the fire service. no matter how much we train, the last thing you want in a disaster is to lose communications. without communications, we have nothing-- people get hurt. when disaster strikes, that is when

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welcome back to "street signs. bouygues is trading lower after cutting its operating profit forecast due to challenges in its construction business. and intercontinental shares are trading lower despite the british hospitality group saying its chinese business is on track to achieve its best ever full-year results. they will also pay special

dividends of 5$500 million in th first quarter of next year >> and bt offered its top job to phillip jansen the 51-year-old outgoing co-ceo is weighing the decision and could still turn down the position bt will report first half results on november 1st. sky news first reported last month that the company was in advanced discussions to appoint jansen and sterling hit a day's high after the eu's chief brexit negotiator said the eu does not want to impose a hard brexit on the uk however barnier did say that talks are now 90% complete i believe that number was 85% before last week thomas, great to have you with us still how are you thinking about investing in the uk stock market in light of the ongoing brexit,

never ending brexit discussions? >> certainly a lively debate we're having clients are constantly asking us how are you positioned we think it's a game to predict political outcomes i think theresa may herself doesn't even know the outcome of the negotiations as it clear from the last few days we need to focus on the valuation opportunities and say when we get the other side of this, we'll get this at some point probably in the next few months and we need to know which stocks will be well positioned regardless of outcome. there are companies right now -- >> how can there be companies that will do well irrespective of the outcome if the outcome is binary we have no-deal or soft brexit nothing in the middle. >> that's true but corporates have a way of adapting i think we can place our faith in uk corporates to do what's necessary to improve their operations one example, an unloved company out there, the biggest sofa

operator in the uk, they said they'll ship more from asia. if they have problems with ports in europe, the supply chain is working perfectly well from asia to the uk. so there's a little bit of a warning sign i think the uk government can start to use those threads and say look, if you're not willing to do a deal, we can look elsewhere. >> equally you hear about international companies being very public and voicing concerns about the state of these discussions and saying we'll remove some of our operational facilities out of the uk and into other parts of europe it's a double edged sword. >> it is that's the big worry the supply chains for those companies operating in the uk. that doesn't effect so many companies. we've got a big choice of companies if we're running a relatively concentrated portfolio of 50, 60 names we can take the stock specific view on those names. >> how specific are those names you highlighted to the currency?

on days when the currency is rallying, ftse tends to underperform and vice versa. if we're in a situation where there's a positive outcome and sterling rallies, doyou think your stocks which are export dominated stocks can still perform? >> that's the worry. i think you raise a great point there. actually at the moment there's sentiment against uk domestic stocks it's always in favor of exporters, overseas earners. that can quickly change. where does the risk lie? actually you know that if there's a deal, suddenly people will be closing out shorts in those uk domestics there will be a pop and you need to make sure you're hedged for that so we're looking at geographical exposure and thinking about the economic outcomes of different scenarios. we're making sure we're well diversified but not zero weight uk domestics we think there could be a pop in these names if there's a deal. >> from everything you told me it seems like you're seeing

significant value opportunities right now looking at global stock markets. it's interesting because we did have a shakeout last week in international markets and led by the u.s. do you think there's a rotation going on as far as investors are concerned away from growth stocks back into value >> yes behavioral spending needs to be a focus right now. normally you will get a second waive of se wave of selling that's when people will question whether these growth stocks are good at these levels i like resources because resources offers demand/supply both sides are holding up nicely there's good valuations in that sector i can see sustainable yields

there now. 6% typically sometimes 7% within the uk domestics, i think financials are interesting but i would be careful about banks. >> we're coming into final season now we get the earnings coming >> absolutely. banks, if we get a hard brexit we'll get a rise in impairment supply side is -- there's lots of competition out there insurance is interesting insurance you got rising rates, that's a pure pnl benefits >> we don't really have rising rates in europe. the only place where rates are rising is in the u.s >> that's true, but we had two rate rises in the uk and i think we'll get more if we get soft brexit or any brexit deal. wage inflation above 3 has to come through that's a benefit to some uk insurers finally consumer this is the most unloved sector of all but there has to be opportunities. if you can find a stock growing

market share, it's well positioned you can buy those stocks now on single digit pes >> those stocks exist. >> they do >> all right thomas, thank you very much for joining me today before we head out, let's look at sectors. we were talking about some sectors thomas likes food and beverages are leading the charge remi had some positive results in france. on the down side, big losses in autos. down 2.6%. on that topic we will be talking to the ceo of volvo when we come back after this break. there are also other earnings that have come out this morning as well. volvo i mentioned down 2.8%. michelin, big moves there, down%.

bougues also down. as i mentioned we'll speak to the ceo of volvo martin lundstedt. that's a first on interview coming up after this break today is the day you're going to get motivated...

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welcome to "street signs." i'm joumanna bercetche these are your headlines keep calm and carry on the chinese stock market stages a late rally as officials step in to reassure invests after third quarter gdp disappoints. power plant problems shares in bouygues plunge as it cuts its profit guidances citing challenges among several energy projects. red elsewhere on the french market tiremaker michelin hits the skids afte cutting forecasts and softer demand in china. and italy's ftse mib hits a

20 month low after the eu rejects rome calling the budget an unprecedented deviation from eurozone targets it's been a heavy earnings day for european markets let's get into some of the performance to see how it's distributed across the industries we have nose-dived south in all of the make emaker err errs majo trading in the red ftse mib is down 1.6%. switching to foreign exchange, euro on the back foot. we're through the 1.15 mark.

it will be interesting to see if today is the day we break through 1.14 all eyes on how the italian budget discussions are developing we have cable hanging in just above the 1.30 mark. a bit softer than where we have been the last couple of sessions so somewhat of a concern about the brexit discussions being priced in there and slightly weaker data biting as far as that pair is concerned switching to u.s. futures. we have dow seen up a couple points nasdaq up 5 points after another weak session yesterday dow was down more than 300 points by the close. what we're seeing as well is weakness across european markets too. ftse mib at a 20-month low as the fallout from the government's budget proposals continue the european commission says it

has serious concerns about italy's draft budget plan. deputy prime minister mateo salvini called on roam's come's coalition government to stop fighting willem is in brussels and has been following this story. what's interesting is we're starting to see a bit of cracks emerge in this coalition, aren't we >> well, i wouldn't go that far, but this is to do with one element of the government's draft budget plan. it's around an amnesty for a lot of italians who have not paid back taxes there are questions around whether it will be five years worth of back taxes, more, whether there be a limit on the taxes that need to be paid back. it's not a huge number in and of itself when it comes to the overall budget, but it is significant because, as you say, there are disagreements between

lega and five star when it comes to this. this dates back to electoral promises made by both sides. in terms of the bigger fracture between italy, the government in roam and the european commission in brussels, that does not seem to be closer to reconciling. we have pierre moscovici talking about essentially what concerns them and what they've seen from the italian numbers. it's a growth number he says that is not based on numbers endorsed by an independent parliamentary budget watchdog and also the idea it doesn't do much to reduce the debt to gdp ratio. so there's a whole range of issues they have concerns about. mr. tria, after his meeting with moscovici, spoke in rome about what he considered going on in these conversations.

>> today we opened what we call a constructive dialogue starting from differing evaluations on economic policy. we have acknowledged these evaluations. we believe we need to give deeper grounds on our policy and this way we hope to bring our positions close. >> what the commission have done is issued a letter they laid out what their concerns are so far with this draft budget plan. by the 29th of october, they can decide whether they want to essentially reject this draft budget plan and ask the italians to revise it the italians would have three weeks to do that but what we've heard from italian leaders is they have no intention of bowing to pressure from brussels. at that point, if they refuse to make changes we could end up with a complex procedure months from now where they would be fined as much as 0.5% of their national gdp >> i was going to ask about the

timing it looks as though we have three weeks for the italians to revise the budget doesn't seem like there's intention on their part to do that this could lead to sanctions, but ultimate ly it will take months of drawn out discussions. in the meantime we're looking at 10-year, 30-year yields at multi-year highs do you think perhaps we could be in a situation where it's the financial markets that actually get italian politicians to back down rather than the politicians in europe? >> well, mr. dimaio overnight put a message out, one of the deputy prime ministers, saying that essentially the markets he thinks are reacting in the way they are in terms of the bond yields in particular to the idea there is a lack of unity in the italian government he says that's not the case. he says to people like mr. moscovici rather than pontificating in brussels about these letters, you should come and talk to ordinary italians

about their views. mr. salvini previously said if that bond yield spread gets to 400 basis points that would be an unacceptable level for rome what that means, not entirely clear. but it seems like that's something he's far more focused on that's his counterpart in the five-star. >> on that point we're at about 340 basis points in that spread now and we had a big re-rating in the last couple of days so he'll be watching out for that spread closely. willem thank you for the latest from brussels on italy you also have been covering brexit as well i want to talk about some comments from the irish prime minister this morning. he has said that the move to a longer transition is not an alternative to legally binding backstop this is the proposal that has

come out over the last couple of sessions, some talk that they would be extending the irish backstop proposal by another year to 2021, and that would entail keeping all of the uk in a customs union for an extra year the irish prime minister is now saying that is not an alternative. it's not something that would be digestible for them. he has also said that internal politics in the uk are difficult. we know in the past 24 hours it has transpired that there will not be an emergency brexit summit in november the next time the eu leaders will be meeting is in december a couple of months here for the uk to sort of exactly what they're going to do on the withdrawal proposal. elsewhere steve mnuchin has pulled out of the future investment initiative in riyadh amid mounting pressure over

jamal khashoggi's disappearance. he is the latest high-profile drop out following the withdrawal of british and french cabinet minute centers and top business executives. the development comes after president trump acknowledged that khashoggi is probably dead. speaking to reporters the president said he would consider very severe consequences for saudi arabia if they are found to have killed him richard engel reports from istanbul on the latest in the investigation into khashoggi's disappearance. >> reporter: tonight president trump was asked if missing saudi journalist jamal khashoggi is dead. >> it certainly looks that way to me. it's very sad. it certainly looks that way. >> reporter: secretary of state mike pompeo said he advised the president to give saudi arabia until the end of the week to explain what happened. >> there are lots of stories out there about what has happened. we just are going to allow the process to move forward and allow the facts to unfold.

>> reporter: but there is enough evidence so far that treasury secretary steven mnuchin after growing outrage is now pulling out of a saudi investment conference tonight u.s. intelligence officials tell nbc news they believe khashoggi was clearly killed in the saudi consulate in istanbul and that it is inconceivable crown prince mohammed bin salman was not aware or at some level involved. one of the crown prince's bodyguards seen in an image released today by a turkish newspaper seen entering the consulate hours before khashoggi walked in. the focus now, where is the body and is it still in turkey? turkish police are investigating whether the alleged killers dismembered khashoggi's body here and spread is around the country. a turkish official tells nbc news two locations are under scrutiny. but where? we are on our way to one place we are told the police have their eye on. this wooded area outside istanbul is called the belgrade forest. it is fairly isolated, over

13,000 acres and police tell us they have surveillance video of a saudi diplomatic car in the area after khashoggi's disappearance. saudi officials continue to say they don't know what happened to khashoggi. richard engel, nbc news, istanbul elsewhere, japanese prime minister shinzo abe is in brussels talking about a free trade agreement with the eu. makiko utsuda has more >> yes, abe is visiting brussels and on the side of the asia-europe summit he met with german chancellor merkel and jean-claude juncker. they all agreed to gear up for an early launch of the economic partnership agreement between japan and the eu the agreement coming into effect would eliminate tariffs from over 90% of products from both

si sides and the free trade zone would cover an area around 30% of gdp efforts are fueled by economic concerns due to the escalating trade war between the u.s. and china. with the eu and japan joining forces hopes are that it will serve as a building block to maintain multilateral trade and a rules-based international order as the trump administration engages in protectionist trade policies that's all from the nikkei back to you. >> thank you for the latest there. that's something we've been watching closely, that of the trading relationship between the eu and other counterparties. if you want to get involved in the conversation, tweet us t at @streetsignscnbc and also coming up on the show, dialog semiconductors handing over a slice of its business to apple we'll speak to ceojalal bagherli

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welcome back to the show

apple is buying part of dialog semiconductor for 600 million. they will acquire some of dialog's assets including lab equipment, patents and engineers. i'm happy to say the ceo of dialog semiconductor, jalal begherli, joins me on the show today. thank you for coming in. >> you're welcome. >> just to recap, apple has announced they're buying a portion of your company for 6$60 million. under that deal apple gets patents, engineers, offices in britain, italy, germany. are you giving away too much >> that's always the question. i don't think so apple has been a great partner for us for the last 12 years we've had a growing business this becomes more strategic for them to insource, and we are in turn licensing part of our

technology it's not like we're selling the business we maintain the revenue of our existing products. we're licensing technology and giving skilled engineers those technologies to create those chips. >> how will this affect your future income stream in terms of revenues over the next couple of years? >> so, there was some uncertainty about our business because apple was designing their own chips, had started to do that. this helps us to clarify our revenue stream in the sense that some of these products we're working on, they can do by themselves the rest of our business will have a double digit growth rate, like automotive, like mobile >> there was some concern from the investor community a couple months ago that apple were looking to make these chips inhouse. but this announcement dispels some of those concerns up until what year exactly do we

not need to worry about that anymore? >> i think the announcement came issuing several new design contracts to us, which will last through 2021 and 2022 in terms of revenue stream. but our company has to compete on a daily basis to win new business we have plenty of opportunities to work together because we are collaboration partners now >> as you said, you're going to exhibit hopefully double digit growth in other areas. you will be continuing to deliver chips to other customers. is apple okay with that? if you're supplying other customers with the chips that apple are getting, they don't really have the competitive edge >> we don't make standardized products the products are fully customized for a specific phone, template, program using software they're not identical products

but the underlying technology can be used to create other products for customers >> you also talked about a share buyback program. talk about that. >> we have a resolution by shareholders to buy up to 10% of the share capital of the compan company. >> we think with this deal we'll get around 6$600 million when this deal is closed. we already have a similar amount on our balance sheet by that time we would like to initiate that program and buy the maximum amount of 10% until we get further authorization. we spent a lot of time on this show looking at trade discussions, tariffs going up and technology is in the center of that. for a company like yours, how much exposure do you have to the

supply chains and to china specifically >> most of the high-tech companies, particularly electronics, will you have a supply chain that touches china one way or the other >> the current tlend trends dont impact us so much, but like any other business we have to watch carefully how those tariffs go up right now in the next couple quarters, we don't see an impact >> are you not then concerned that tariffs will bite you or because it seems like things are not getting worse you're hoping for the best >> it's a friction and reduction in trade that would worry more than a tariff. >> thank you very much for coming in again. congratulations on the deal with apple. that was jalal begherli. speaking of apple, they're

expected to unveil their latest new york later this month. tesla is launching a new low-cost version of its model 3 electric vehicle elon musk said that the cars will have a sticker price of $45,000, and they will go on sale today the announcement comes after a series of recent scandals surrounding the automaker and that is the late est announceme from elon musk shares in michelin have slumped after the french firm cut full-year forecasts citing weaker chinese auto demand the tiremaker also warned the fourth quarter will see a sales slowdown worsen. we're seeing a heavy repricing in the auto sector today

italy has been our top story it has been that way for a couple weeks now getting some announcements out of the bank of italy saying that foreign investors have sold 17.5 billion euros in italian government bonds in august that is official data out of the bank of italy there. ten-year btp at about 3.76 a lot of questions about those financial conditions on the budget discussions as we were speaking with willem, it doesn't seem like there's any willingness to revise the budget deficit forecast lower despite some resistance from the europe

peep commission. and markets are not liking it. ftse mib hit a 20-month low as the fallout of the budget proposals continue down 1.3% today. the european commission says it has serious concerns about italy's draft budget plan citing an unprecedented deviation from eurozone targets mateo salvini called on rome's coalition government to stop arguing as both sides fight over a tax amnesty. what's interesting here, we're talking about the bank of italy, talking about foreign investors. if you look at the breakdown of ownership, a good part of that now is owned by domestics, and also by the european central bank that raises questions on what the impact could be on the italian bond market once the ecb fully steps away from that market today we are seeing big moves.

speaking to our colleagues in asia, jeron bijsselbloem reiterated italy to have reforms. >> i worked on the banking union, banking structure, and many companies pushed for structural reforms italy needs so much more the renzi government did some reforms, but it's still a static economy. productivity is flat growth is extremely low. they're lagging behind in the eurozone growth figures. they need structural reforms >> alan greenspan thinks this is the tightest labor market he's seen he told cnbc low unemployment coupled with american companies looking for workers will push up inflation and wages. to find out more, go to our website, cnbc.com. cnbc also spoke with david

solomon and former fed vice chairman stanley fish tore gche. >> i would not call rates high in any way right now you don't have to go back that far in history to have a different perspective. i think about my career. i started in 1984. back then the treasury was 11.5%. so there's different environments, and different things that can affect rates over time. >> i don't think the fed should be taking a pause right now, but it's a year since i left the fed. things happen. the economy seems to be doing even better than we expected it would a year ago and i trust their judgment >> big u.s. investment banks enjoyed solid third quarter results as a strong economy and tax measures boosted earnings. jpmorgan and citi were supported by lower taxes and a rise in

interest rates, and morgan stanley saw gains from equity trading and investment banking wells fargo was the only big lender to miss estimates, this capping off a week of banking results that came through. we are also at the beginning of european financial earning season we'll watch out for them next week let's look at u.s. futures dow nicely in positive territory here up about 50 points nasdaq seen opening up about 22 poin points it has been a heavy week for tech one of the worst weeks for the tech sector in a while that is it for today's show. i'm joumanna bercetche "worldwide exchange" is coming up next. every call is different, so the only thing that we can do to make sure that we get there safely, and that we leave that scene safely and go home at night, is train. and we train all the time in the fire service.

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it is 5:00 a.m here are your five at 5:00 wall street looking to rebound following yesterday's big slide. in china, the economy slowing down in a big way. but the stock market is rallying. tesla ceo elon musk making another big announcement we'll tell you what he said about the model 3. and paypal popping after a blowout quarter. and lotto fever sweeping america. the mega millions jackpot nearing a record $1 billion it's friday, october 19t