welcome to "street signs." i'm willem marx. these are your headlines this morning. the comeback kids. european equities trade higher after the u.s. sees higher volumes and the dow erases a more than 500-point decline. strong sales for gucci help kering beat expectations leading the sector higher. and deutsche bank in the doldrums trading revenues take a hit in the third quarter but the bank says it will still be profitable

for the year as it strengthens its capital base we'll speak to the cfo at 12:30 central european time. and brussels and rome face off as the eu rebuffs the populist's government proposals. just to bring you some flash numbers for october for eurozone pmi, the composite pmi is 52.7 against a reuters poll, expectation of 53.9. that's down from 54.1 in september. in terms of services, the number is 53.3, that's against expectation of 53.5, down from september, 54.5. manufacturing is 52.1, against an expectation of 53, that's

down from 53.2 all three of those down. you can see the euro is weakening slightly against the u.s. dollar this morning one of our major corporate stories is the strong gucci sales that helped kering beat revenue expectations the luxury house pulled in 3.4 billion euros in the last quarter. there was no slowdown in china despite higher trade tensions. we can see when we look at the luxury sector across europe that effect charlotte has more on these numbers. that china comment a significant one. >> that's the thing about the luxury stocks, investors are looking for comment on china on the call yesterday they said they see no change from the demand of the chinese consumer

these stocks like luxury, they reach historic highs in may and june and have been hammered the past three months. kering was down almost 30% in the last three months, so there's a slight sigh of relief here saying there is no change from china one key element is gucci, their star brand they make about 70% of the profit for the group, they beat expectations it was expected to be about 27% revenue going up, it was actually 35% that's the seventh consecutive quarter of gucci sales up above pa 35%. even though the ceo of gucci had warned in the internal video message to employees that there will be a slowdown at some point because this is not sustainable to grow at that pace, it's not showing up at the moment >> something that may happen down the road. thank you for joining us this

morning. barclays posted higher third quarter revenues at its investment banking unit. it is on track to hit full-year targets despite concerns from macro economic uncertainty and brexit the bank reported a better than expected ce tshgt 1 ratio of 30% deutsche bank saw a decline in profit but still beat expectations in the third quarter. the trading revenues came under pressure and they announced they will strengthen its tier 1 capital ratio. annette is in frankfurt this morning. what could be driving the bank share prices into such negative territory given they did beat expectations >> at first glance they're actually beating expectations, but look at how low those expectations actually were and people now and investors are now focusing on the revenue

line the outlook for revenue is the problem here if you go to the report, stle an outlook section in it, and there it says they're actually recalibrating revenue outlook to a lower level. so this is a huge disappointment clearly, we can talk about profitability. we can talk about cost cutting, but if the bank is not managing to boost the revenue line, there's a clear problem here there is why people don't believe in the turnaround story and that is reflected in the share price today. deutsche bank again down on earnings, which is the picture we've seen for many, many quarters that now comes despite all the positive rhetoric coming out of the management board that this year will be the first year since 2014 they will be profitable they are online to meet their targets or on track to meet

targets, but as i was saying, looking at all these divisions, investment banking seems to be a huge problem for the bank. the revenues are down here, both in equities and in debt trading. that was expected. the equity part is the problem everybody else was successful in the last quarter but deutsche bank failed to boost equity sales revenue it materializes that the problems in investment banking are bigger than people had expected looking at other divisions, revenues are on the decline in the business and client unit, which they say is the big growth area, but still revenues are down here as well. as management is not doing great, dws, they are seeing net outflows as well in the last

quarter. so the mix is not positive for the bank the management board is trying to kind of steer against that trend with a positive rhetoric whether this is enough going forward, we'll see back to you. >> annette, thank you very much so much. i know you'll talk to the cfo at 12:30 central european time. we look forward to watching and hearing some of his comments during that interview. i'm happy to say we're joined by the global head of financial research from pimco. thank you very much for being with us. it looks like deutsche bank has not seen profits for the quarter shrink as much as some analysts had predicted. they're down a lot year-on-year. do you think that deutsche can be profitable for this year? does that speak volumes about their business model, the german economy or both? >> i think they'll be profitable this year.

the issue -- i think what's not the problem with deutsche, it's no longer a stability problem. the previous management team has done a good job restructuring the balance sheet. i think that's been the focus the past two years, to de-risk the bank, delever, raise capital. so from a balance sheet perspective they're in good shape. however they're at a stage where now they're struggling to generate profitabilities, where the franchise earnings potential has been hit badly that's a battleground for those shares we need to prove they can deliver on the top line. and, you know, the jury is open and the numbers keep disappointing on the top line. that's a challenge for them. i think it's a different situation where they were in 2016, where there were more concerns about the balance sheet itself now it's more of a profitability challenge. i think that will remain for the foreseeable future it will be a show-me story and

take a few quarters to show they can stabilize. i'm not optimistic about the earnings trajectory. >> we're looking at a wall there of some of the major european bank stocks this morning frankly the only bright spot is barclays is up nearly a third of a percent. they have beaten expectations. jeff staley says their strategy is working do you think that simplification strategy does seem to be working for the long-term? >> i think barclays is working out. the balance sheet is also very good, which is what i care about. on the credit side, they are reviving the ib. they made a bet on reviving that investment bank. there are signs in this earnings

report that it is working. the daily moves of bank stocks today are dominated by neighborhood type of issues, in the case of uk banks, brek new news, and with the eurozone banks it's about italy the earnings per se are not going to have much of a weight in terms of the shortened direction of stocks or credit spreads. it's about those broader macro stories that are impacting the sector the sector is a very good proxy for expressing a bearish view on eurozone stablilitstability. >> jeff staley mentioned brexit was a concern that the bank had to shrug off or get past is that a conveni reason peoplen point to poor performance or are

we seeing meaningful impact on these banks in the uk and from outside the uk with what may or may not happen with brexit >> i think there's a cloud of uncertainty around uk assets because of brexit. we are quite constructive on that risk. we think it's unlikely we get a disorderly brexit. we think there's a lot of cheapness in uk bank credit across the capital structure we think it's a good trade to put on we will need to clear through those few deadlines before people get more confident on it. there are risks around our view that we will get a reasonably orderly brexit we could be wrong. i would say however in the case of uk that the consequences of a negative outcome in the uk would create volatility in assets. we think the banks are in good shape to handle this small recession, which is what we

think we would have in the case of a more disorderly brexit. that's a good place to be. in the rest of europe, the challenges are running deeper. >> let's talk about some of those. you guys are underweight italy now. are you running scared from italian banks because it's one of those few countries where there are questions about capital safety, about asset quality, and we're looking at some italian banking stocks this morning, not a pretty picture for investors. >> it's been a tough place the italian complex in general this year. a lot of that driven by the politics and the moves in the sovereign spreads. the banking system was actually making very good progress in derisking over the past two years. in 2017 you had the big restructuring of unicredit that was a large capital increase combined with nonperforming loans. after years of procrastination, that kicked off the

restructuring in italian banks so that sector in italy is the weakest in europe but better than three, four years ago monte dei paschi has been nationalized other banks have been resolved unicredit raised several billion of equities. so the bankers have done their part unfortunately right now it's mostly about trading, you know, essentially political headlines that hit the screens on a daily basis. the sector is investable at some stage, but my view is that we have, you know, a very govery g opportunities in safer names, bnp, rabobank, where we can buybuy buy 7%, 8% yield

>> one of my favorite parts about the word procrastination, it's the same in italian and french thank you for joining us this morning. nor nordea blamed tougher market conditions for a bigger than expected loss. though experienced pressure in the consumer banking business by said loan losses will be lower in the current quarter. and handlelsbanken is set t slash jobs over the next four years as it accelerates digital banking. they narrowly beat fourth quarter expectations thanks to lower loan losses. if you have any views on the italian banking sector, the euro banking sector, get in touch on twitter, @streetsignscnbc.

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. welcome back to "street signs. it looks like the european markets broadly are slightly higher the stoxx 600 is trading up. looking at individual european markets behind that number, you can see ftse 100 is up around that same amount the xetra dax is up almost 0.10. the cac 40 is up 0.50. across europe, the banks, they are down basic resources down 0.40.

retail and telecoms significantly higher retail is up 1.6% at this stage. heineken is maintaining its full-year earnings expectations after it reported net profit growth of 8.1% for the first nine months of the year. the company experienced strong volume growth during the third quarter after a warm summer in europe and higher consumption in emerging markets norsk hydro is trading higher as third quarter earnings squarely exceeded expectations. the firm added it doesn't yet know when it's aluminum plant in brazil can return to full capacity norsk haydro is in a long-runnin dispute about emissions at that plant. we are joined by eivin eivind kallevik. higher metal prices, they helped to increase your revenues.

i wonder if that's something you will think will continue for the next few months. >> if you look at the results, it's higher prices for aluminum as well as prices in this quarter and the third quarter. on the aluminum side we see a tight market which would be supportive of prices in periods to come. >> on the other end of the spectrum you face a higher raw material cost. is that something you expect to continue >> for the bigger picture we see a flattening on a raw material cost side. we see some increases on fuel oil following the global market as well as the coal prices into q4 other than that, materials are flat >> investors have been closely watching events in brazil with your facilities there. i have to ask, earlier this month you as a company

threatened to shut down operations there that would have meant thousands of people are out of a job do you think that threat brought the local authorities back to the negotiating table? >> well, let me be clear on this, this was not a threat. this was based on an external third party geotechnical study of the deposit area number one that recommended us not to continue to deposit into that area so this was an operational decision, not a threat >> if i understand this correctly, it was based on the fact that you were not able to operate at full capacity and you had no clarity about your future i'm wondering whether that publicly announced decision which seemed to reverse the views of the brazilian authorities, whether you think it worked. >> quite clearly to get back to 50% production was important for us, and that's important for the state of power for local

communities and local businesses and state revenues the most important part for us is to get the new deposit area and the new things up and running. that was the key part for us >> you're trying to return to full capacity. that's the aim of your firm. it's a big part of your business a big part of your profits it's a big part of the global market essentially i'm wondering, would you describe your relationship with brazilian authorities today, the dialogue between the two parties as positive? >> we still have good and open and constructive dialogue, both with the government as well as with the minister who we are negotiating with i think we are all working towards the same common goal in terms of getting back to 100% production >> a lot of critics looked to that decision at the beginning

of october to potentially shut down operations, that announcement, they said this comes with almost no warning you didn't give shareholders a massive heads up this would happen is there a reason they should trust what your executives say about the future of those operations given that maneuver at the beginning of the month? >> let me be clear on this this is not something we had known about for an extended period of time as soon as we got this information from the third party consultant we made the operational decision we needed to do as a responsible operating company. that was to take down production towards full shutdown. it's a pure operational decision on information we got very close to that decision >> mr. kallevik, thank you very much for joining us.

juventus has shown why they're a favorite in the champions league cristiano ronaldo had a rather happy return to his old club adam has more on this. that was a win they wanted, needed and presumably enjoyed. >> for various reasons, it's true i spoke on the show yesterday about how juventus have ambitions to become one of the biggest clubs in the world off the pitch. they're translating that on the pitch. manchester united leading the way and have done it from a footballing point of view for many years since a fall from grace, could this be the sign that batton is passing and manchester united's crown is slipping. we know they have record revenues and commercial deals, but juve juntus is trying to cl

that gap the signing of cristiano ronaldo was the start of that and he's paying some of that transfer e fee. juventus would dominant in the first half they played lovely football. ronaldo had two or three good chances. they could have been further ahead. we know that jose mourinho wanted to recruit a center back over the course of the summer. didn't get anyone through the door he has spent $85 million on defenders during his time at manchester united. but he still wants more. he was looking on enviously at what juventus had. bonucci who manchester united courted in the summer. they couldn't get him. he went back to juventus he and chiellini, mourinho, when it came to their performance last night he basically said they were as good as any university professor at defending. >> we played against one of the

biggest -- really biggest candidates to win the champions league mr. bonucci and mr. chiellini, they could go to some harvard university to give classes about how to be a center defender. fantastic. absolutely fantastic it's a team that has everything. >> we reached the halfway stage in the champions league. manchester united have to go to turin for their next game. they're still in second position in group "h. they want to avoid going into the europa league. they would see that as humiliation, plus the extra games it brings, the lack of prize money in that competition. this is probably the best opportunity they got to get into the champions league for next season because it's probably a better chance than they have at winning the premiere league. >> am i aging myself by remembering that last manchester united and juve game in 1999,

another incredible match you think of how much the world has changed since then in terms of uk sport and sxwrjuventus >> juventus were a powerhouse that we're and manchester united went on to win the treble that year they don't look like they're doing that this year but juve have a good chance coming up, find out why mohammed bin salman is calling davos in the desert a success. more after the break helped put a roof over the heads

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welcome to "street signs." i'm willem marx. these are your headlines this morning. the euro takes a hit after pmis fall to a two-year low but equities trade higher after the u.s. erases a 500-point decline as trading volumes soar. strong sales for gucci help kering beat expectations leading the sector higher. and deutsche bank in the doldrums trading revenues take a hit in the third quarter but the bank

says it will still be profitable for the year as it strengthens its capital base we'll speak to the cfo at 12:30 central european time. and brussels and rome face off over italy's spending plans as the eu rebuffs the populist government's proposals let's look at the european markets. you can see the ftse 100 is trading up 0.25% the xetra dax is up 0.10%. the kacaniklic ca cac in paris . the ftse mib is slightly higher than a half hour ago the euro is trading weaker

against the u.s. dollar after pmi numbers this morning many of them lower than the september numbers. that was the october flash pmis for the eurozone the dollar is stronger against the yen. the pound slipped. the dollar is stronger by 0.20 all three major indices in the united states are called to open lower. the dow jones down by 120 points the nasdaq implied open is down 56 points. it's worth pointing out that we had some pretty interesting days over the last few days in terms of the u.s. markets. let's talk about politics in the united states. president trump sounded a warning over a caravan of central american migrants heading north to the u.s./mexico border the move stoked anxiety over

illegal immigration as campaigning ahead of the midterm elections heats up kristen welker has more. >> reporter: i'm kristen welker at the white house tonight president trump is using the caravan as a critical midterm closing argument undeterred by fact checkers who questioned his claims, like saying criminals and unknown middle easterners are mixed in >> over the course of the year, over the course of a number of years, they've intercepted many people from the middle east. they've intercepted isis >> reporter: but today, this stunning acknowledgement when asked if there's any proof. >> there very well could be. >> reporter: but there's no proof? >> there's no proof of anything. there's no proof of anything, but they could very well be. >> reporter: a former senior intelligence official briefed on the caravan tells nbc news there is no evidence that any middle eastern terrorists are hiding in the caravan, and that middle eastern and african migrants accounted for just 0.7% of all border apprehensions last year

then, there's the president's claim blaming democrats for the caravan. >> i think the democrats had something to do with it, and now they're saying i think we made a big mistake, because people are seeing how bad it is, how pathetic it is, how bad our laws are. >> reporter: today, asking the vice president for backup -- >> and the democrats >> well, the -- [ laughter ] >> give me that pen back. >> reporter: democratic senators standing behind the president, trying to laugh it off there is no evidence the caravan is being led by anyone other than hondurans meanwhile, also today the president explain thing label he gave himself last night. >> you know what i am? a nationalist. >> reporter: there is a concern that you are sending coded language >> i never heard that theory about being a nationalist. i'm somebody that loves our country. saudi arabia's crown prince, mohammad bin salman hailed the

kingdom's future investment initiative as a success. the event going on ahead despite the absence of many prominent companies and executives who expressed concerns about the killing of jamal khashoggi hadley gamble is at the event in riyadh what's the latest this morning good morning as you can see behind me this second day of the so-called davos in the desert is packed. there has been talk about the murder of jamal khashoggi. we heard yesterday from the saudi energy minister. >> we are going through a crisis of sorts resulting from the very regrettable and abhorrent incident that took place in turkey nobody in the kingdom can justify it or explain it from the leadership on down, we

are very upset about what has happened of course the king made it clear there will be investigations, justice, retribution but the kingdom is in the midst of an historic transformation of unprecedented proportions. and the train has moved. it has moved tlib deliberately towards a transformation that will not be stopped. >> despite the outcry over the death of jamal khashoggi, some $55 billion were announced yesterday, and the crown prince was greeted really by a rock star welcome he was taking selfies with supporters, emphasizing that the saudi street are still behind mohammed bin salman.

we saw so many supporters, king abdullah was here yesterday. we saw the ruler of dubai. today we will hear from the lebanese prime minister. the question going forward is whether or not the support the saudis are receiving here will be echoed by the international community. and u.s. president donald trump weighing in once again on this saudi investigation and calling the whole thing utter chaos. let's listen in. >> very bad original concept it was carried out poorly. the cover up was one of the worst in the history of cover ups. bad deal, never should have been thought of somebody really messed up. they had the worst cover up ever and where it should have stopped is at the deal standpoint where they thought about it.

whoever thought of that idea i think is in big trouble. >> u.s. president donald trump weighing in on the murder of jamal khashoggi, calling this entire investigation chaos the narrative the and stories that have come out so far from the saudi government the secretary of state also weighed in canceling the visas for at least 21 saudi nationals thought to be involved >> we are taking appropriate actions which include revoking visas, entering visa lookouts and other measures we're also working with the treasury department to review the applicability of magnitsky sanctions to those individuals these penalties will not be the last word on this matter from the united states. we will continue to explore additional measures to hold those responsible accountable. >> so the trump administration there turning up the heat overnight on the saudi government to come out with another explanation or an actual

explanation of what exactly happened to jamal khashoggi. none of that seems to have impacted the level of investment in riyadh. that level of commitment from international companies, ceos and investors that was unquestionable given the last two weeks of all of this international media speculation as to mr. khashoggi's death. $55 billion of deals in oil and infrastructure announced yesterday. we expect to see mohammad bin salman speaking later today. we'll bring you all of that live >> thank you so much for your reporting there. mateo salvini says rome will not change its 2019 budget proposals. he said brussels can send as many letters as they want but italians come first. the eu economic affairs minister said he hopes to begin a

constructive dialogue with italy. yesterday the european commission asked for a revision to the draft plan. rome now has three weeks to submit a new proposal or italy could face disciplinary action those comments from salvini saying the government in rome would not back down on budget plans seems to indicate challenges ahead >> in regards to the exact nature of measures, we will help to do more in depth assessment, frankly we have certain concerns of some structural reforms implemented by previous governments being rolled back. this will now be a matter of the country report, which will be preparing later in our european semester at current stages of the

procedure, as i said, we're assessing the 2019 draft budgetary plan, but there will be later steps like country specific reports, recommendations where we will look at the broader set of macro economic policies of italy's government >> is it fair to assume you will raise this to the eu leader level as soon as november or december if the italians stick to their guns and stick to the budget of 2.4% for 2019? >> well in any case from european commission we are ready to follow the rules, the eu rules. we know european union and eurozone is also based on the mutual trust of the member states it's important that actually all member states follow the same rules. >> looking at italian bond yields, that ten-year is not in such bad shape

the yield is down from 3.6 to 3.54 you can see a bit of risk off in the environment now. there's more to be seen over the next few weeks worth watching those numbers as we follow that process another process worth following is here in the uk where the prime minister, theresa may, will address conservative party colleagues at a private meeting later on today as she looks to quell criticism of her brexit strategy pro brexit mps expressed concerns about a potential extension to the transition period they say the uk would become a subordinate state of the eu for a longer period of time. an extension to that implementation period has been proposed as one solution to the deadlock over northern ireland's border after brexit. the financial reporting council in the uk asked all of britain's listed companies for

further information about the impact brexit will have on their business the regulatory group has urged firms to disclose action they will take to manage risks. the british accounting watchdog called forev information to be published to help brexit be understood. and the government is preparing to import food and medicine in case of a no-deal brexit in march. the government would be divided over such a move supporters believe the english channel could be block by new customs controls forcing britain to find new ways of importing certain types of goods if you have a view about post-brexit, get in touch on twitter, @streetsignscnbc. still to come, they say you can't fight the fed. but donald trump seems to have put his gloves on once again the president slams the central bank and takes aim at jay powell find out more on that after this

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welcome back to "street signs. president trump ramped up his attack on jay powell and again described the tral bacentral ba the biggest risk to the u.s. economy. the u.s. president reiterated his concerns about the higher rates on debt and u.s. growth. he said powell was supposed to be a low interest rate guy and the atlanta fed there is little reason to keep our fed on the gas pedal. he said he is happy with the plan for more gradual rate hikes and said the data supports his view he also said growth is on a strong trajectory. in europe, equities are trading higher with retail leading them to that point after strong results from luxury house kering financials are on the back foot after deutsche bank posted some

mixed results. all of this after rebound on wall street. you can see the s&p, dow jones and nasdaq right now being called lower for this time of the morning. julianna tatelbaum joins me to explain why that might be. >> for one yesterday even though we saw a massive rebound in the second half of the day, all three major indices still closed in negative territory. the dow staged a massive comeback, at one point down 528 points, closed down 126 points but again it was down. in europe we have had positive earnings come out from kering and from barclays point, bbank, lot of these are european specific stories we also had disappointing flash pmis for the eurozone contributing to some concern we're seeing in the u.s.

we have the fed beige book due later today, which u.s. investors will be watching more corporate earnings as well. it's important to remember yesterday what exacerbated concerns early were comments from caterpillar and 3m, the two big industrial heavyweights in the u.s. and concern around hitting peak earnings already that is not something investors will forget about quickly and invariably that's what is contributing in part to the negative open that we are seeing according to the futures >> julianna, thank you very much for that to bring up one of the u.s. corporates that did announce earnings yesterday, mcdonald's shares surged after the restaurant group beat earnings forecasts on the top and bottom line kate rogers has the details. customers are loving it overseas sales were better than expected in macdonald's international markets, growth bolstered by restaurant renovations designed to modernize the golden arches

including self-order kiosks and table service. well while business was strong overseas thanks to the modernization efforts it was weaker than wekt o expected in the u.s. as the competitive landscape in the fast foods remains stiff. mcdonald's is aggressively renovating u.s. locations updating 1,000 restaurants per quarter and investing about 6 billion dollars to modernize units by 2020. >> i think we see the benefits of the experience of the future and the companies other velocity accelerators such as delivery and mobile order not only in international markets but also in the u.s. if you take away and look at it at a high level, they're seeing benefits from that that's helping to offset some promotional activity within the category >> but the changes have come with pushback from u.s. franchisees hundreds of whom recently met in florida claiming the changes coupled with menu innovations aren't paying off quickly enough ceo steve easterbroo acknowledged on the conference call that franchisees are taking on a lot at once but reaffirmed

the company's vision for change. >> at current pace, by the end of 2019, expect to complet over 12,000 restaurants with our future initiative making it the largest construction projects in our history. we have hard work ahead but we are seeing encouraging response from customers in restaurants where many improvements are already completed. >> easterbrook als said the company is looking to refocus on breakfast and rolling out more deals to bring diners back to restaurants as the value wars continue. kate rogers, cnbc business news. tesla shares increased the short sellers said the model 3 is a proven hit and said many warnings around elon musk have been false alarms. there was a lawsuit filed against musk and tesla saying musk threatened to take the

company private to burn some of the short sellers. apple's ceo, tim cook, called for comprehensive u.s. federal privacy legislation. he urged the u.s. to follow the european union's league. elizabeth is in brussels this morning. i want to ask you what is the message from tim cook? >> the message from tim cook is we need to start adopting privacy laws, not just in the eu but in the u.s. as well. he specifically called out federal regulators in the u.s. saying it's time to have comprehensive privacy laws this is something that apple fully backs. you can hear what he said and there was applause after those remarks. >> we should celebrate the transformative work of the european institutions tasked with the successful implementation of the gdpr we also celebrate the new steps

taken, not only here in europe, but around the world, in singapore, japan, brazil, new zealand, and many more nations relaters are asking tough questions and crafting effective reforms. it is time for the rest of the world, including my home country, to follow your lead we at apple are in full support of a comprehensive federal privacy law in the united states >> so tim cook praising europe's general data protection regulation there that was a sweeping set of data privacy rules that went into affect across the eu earlier this year saying it's been a framework of other nations trying to protect user data. he had strong words about what happens when we don't protect data, saying this is precious

cargo. companies are not taking surveillance serious enough and this has serious implications that need to be sought out now so the message strong here from tim cook, taking a stance in the eu which has been the lead when it comes to some of this tech regulation, and he was certainly applauding the efforts here. >> thank you very much it will be interesting to see what some of his counterparts will say over the course of the day. let's recap some of the bigger corporate stories barkleys says it is on track to hit full-year targets despite concerns from macro uncertainty and brexit the bank reported a better-than-expected cet 1 ratio of 13.2% deutsche bank saw a 65% decline in net profit but it beat expectations for the third quarter.

the bank also announced it will strengthen its tier 1 capital ratio. join us at cnbc at 12:30 when we will hear from james von moltke. strong gucci sales helped kering beat expectations that's been a major factor in the french and european markets. they pulled in 3.4 billion euros during the most recent quarter the ceo said there was no sign of a slowdown in china despite higher trade tensions. let's look at some of the luxury stocks in europe all of those trading significantly higher kering is up nearly 8% on the back of those numbers. moncler up as well as lvmh the ftse 100 is trading higher

by a quarter of a percent. in paris, the cac 40 is trading higher, 0.28%. the dax is down very slightly. the ftse mib down 0.10%. looking at the currencies, the euro is weaker against the u.s. dollar weaker than a few minutes ago. that's on the back of those poor pmi numbers. the pound trading weaker against the u.s. dollar. brexit continuing to weigh in on that currency there. that's it for today's program here in london i'm willem marx. "worldwide exchange" is coming up right now

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it is 5:00 a.m after yesterday's wild session, futures now making a comeback today. we are down 200 points the reason and some advice for you all ahead. president trump stepping up his attacks on the federal reserve. is he right that rates should stay put in europe, tim cook wrapping up a big speech on your privacy we'll take you there live. oil continues to drop. a two-month low. we're drilling down on why and if you were hoping to win the biggest jackpot in american history, well, it's not you unless you're on