welcome to "street signs." i'm joumanna bercetche >> i'm willem marx these are your headlines this morning. luxury loses its shine richemont drags the sector into the red after failing achieve net profit and bad signal

telecom italia shares sink and ubs shares fall after the u.s. sues the bank over mortgage securities fraud dating back to the financial crisis and the swiss lender reportedly rejects a $2 billion settlement with the department of justice and the new ceo of alibaba tells cnbc exclusively how he designed the singles day phenomenon as it celebrates its tenth anniversary with record breaking expectations. >> it's more like a real reflection of the consumption growth, the growth of digital business good morning happy friday let's check in on how markets are doing. it doesn't seem like the midterm

rally in equities lasted that long we had weak momentum in the asian session. the chinese indices down about 1.5% in china we had some weaker macro data on the car sales front coming in lower than expectations also slightly softer ppi the picture in europe, as you can see behind me, 80% red, 20% green. overall the stoxx 600 is trading down about 0.7% already in this first hour of trading. not a good start to the day for european bourses a lot of the momentum we're seeing today in europe is not on the back of the macro story but more so on krid earniindividual. ftse 100 about 45 points weaker on the session 0.6% softer. xetra dax down 1%. cac 40 is a similar amount ftse mib, all eyes on the

november 13th deadline for the italian government to respond to the european commission about what their plans are, vis-a-vis the budget let's get into some of these sectors to see where leadership is coming from a handful of sectors trading up in the green food and beverages up. on the down side we have some heavy performance going on in basic resources. going down about 2.4%. autos continue to get hit. there we have macro story playing out and micro story with some names coming under focus. banks continued to underperform today. ubs is a stock we're looking at after the u.s. sued them for rnbs sales back in the crisis. bbva under pressure after the spanish government changed some mortgage laws there. oil and gas continues to underperform on the back of the

weakness on the spot oil price oil is about 20% lower than where it was at the highs. industrials, thyssenkrupp will be a big focus of the sector, down about 6%. this sector is one of the main underperformers. >> thyssenkrupp have issued a fresh profit warning net income for the full-year is expected to drop 63% to 100 million euros. the company said an ongoing berlin investigation into cartel-like behavior as well as problems at its automotive unit will impact earnings this is the second profit warning under the new ceo. he took over after a crisis-plagued summer. julianna tatelbaum joins us in the studio why are investors reacting so negatively given the risk from this investigation was already priced in to some extent >> investors did know that the investigation was ongoing. but this is the first time we

heard thyssenkrupp come out and set aside provisions for the investigation. so it does demonstrate that thyssenkrupp is taking the investigation seriously and they can't exclude the possibility that they see a substantial financial hit. as you said, this is the second profit warning we've seen from thyssenkrupp since july. so the company has been under a huge amount of pressure. we saw the new ceo come into the role permanently in september. here we are five weeks later, another profit warning it is a company that continues to be under a huge amount of pressure i want to take you through what we've seen over the last year driven by shareholders the activist has been vocal in thyssenkrupp we've had elliott through the last few months speaking out a huge amount of pressure coming through those shareholders in june this pressure escalated with the chairman and ceo resigning in quick succession. i want to highlight as well,

here we saw a jump in july that came not only on the back of the chairman's resignation but also on reports that major shareholders in thyssenkrupp held talks with major shareholders in the finnish shareholder kone and potentially merging those elevator businesses thyssenkrupp's elevator business is the most profitable unit within the company then in september when they came out with their new strategy, we saw a 17% jump in the stock on the back of this plans to separate into two businesses as you can see, shares have been underperforming since then investors are not completely convinced this strategy is the way forward. i think there's a couple different views out there on the market one, this could be a clean-up exercise for thyssenkrupp. but the second, maybe this is renewed pressure from shareholders to mush

thyssenkrupp to reconsider what they do with that elevator business >> thanks for breaking it down for us all eyes on those shares, down 25 year-to-date. swiss luxury goods company richemont reported a fall in first half net profit. the company said consumer demand has been volatile and geopolitical uncertainties continue to impact sentiment richemont said it was confident it would achieve long-term ambitions. the under-performance of richemont is dragging on the luxury sector. lvmh, kering, swatch, all of them trading weaker. this is somewhat surprising given the strength of the numbers we've seen out of most of these luxury companies. it has been quite popular long as far as european equities and investments go we're seeing some trimming of those positions this morning richemont down 6%. chinese e-commerce giant

alibaba is preparing for its major sales day this sunday. arjun kharpal sat down with an exclusive interview with the incoming chairman. big question for any chinese business these days, how does alibaba plan to navigate the trade war? >> yeah, it's a very difficult time of course for alibaba it comes as they prepare for the singles day extravaganza it's a huge annual shopping day for european viewers, who may not be well aware of this event. it happens every year on november 11th. you see massive discounts across alibaba's e-commerce platform, similar to black friday in the u.s. but of course it comes at a time where there's a lot of concern about the strength of the chinese consumer you have stock markets on the mainland falling i caught up with the ceo of alibaba, he was talking about how he plans to make this singles day the largest ever a lot of that resolvesvolves ar

what he calls new retail you see a different consumer habit in china versus europe a lot of mobile shopping but also a lot of on-demand delivery, merging that picking up from physical stores, physically delivering it to consumers. that's a key part of the strategy behind alibaba. he said that would be a key focus for the company as it looks to break the record it set last year, which was over $25 billion worth of sales in a 24-hour period let's listen in to what he had to say >> it means a lot. in terms of the level of engagement of the customers, in terms of the participants, to be involved in this singles day i think this means a lot to both consumers as well as business people >> does that mean you're confident you could break that

record set last year frnlg>> i think it's most import that what we can offer to our customers together, and what we can achieve in terms of disruption and business innovation >> you spoke about new retail. you have spoken about new retail a lot over the past couple of years. there's lots of buzzwords around this, online and offline, investing in logistics networks, cloud computing. what does new retail mean for people watching this show? what does it mean for the company? >> well, when we talk about new retail we strongly believe that online commercial world and offline brick mortars are not two separate worlds. if you look at customers today, everybody is living on the internet if you have the same customer base, you must have the same commercial world it's about integrating online and offline to a digitalized

commercial world >> the trade war is of key concern. i had a chance to talk to daniel zhang about the steps they're taking >> nobody likes trade wars nobody likes the uncertainty of the economic condition what we always do is try to find opportunities in tough times if people have some points, this means some opportunities so how to help people in the tough time to get more business, and not only in china but also in the global markets. this is one example. we can explore that, one opportunity. and so i think for alibaba actually we always think about our mission, which is make it easy to do business where. this is more relevant today in

this condition >> there were two key points that zhang said that he thinks can help alibaba navigate this tough time he thinks this growing trend of e-commerce will only continue, and that won't slow down despite headwinds there will always be more people coming online secondly, another key part of what alibaba does is help foreign brands sell into china that's a unique selling point that zhang says of the company, where foreign banks try to crack the chinese market and they can't do it alone, so they partner with alibaba to sell products via e-commerce platforms. it's a difficult time for this company. shares are down 13% year to date investors will be watching closely on november 11th to see if alibaba can smash the record it set last year >> and probably doing a lot of shopping as well

arjun kharpal, thank you >> willem, $25 billion was spen on singles day last year guess how much was spent on black friday, the one day in the u.s. >> i'm going to guess the number is lower >> 7 billion 7 billion. >> wow >> just to put this into context. singles day in china is more than cybermonday and black friday in the u.s. combined. that gives you a sense for how big the consumption power of the chinese consumer is. >> you can catch arjun's full conversation with alibaba's group ceo daniel zhang tonight at 23:00 central european time if you don't know much about singles day, head online to cnbc.com where our colleague explains the history behind the world's largest shopping event >> the numbers are mind boggling the federal reserve highlighted a slowdown in business investment and a stronger labor market during its

latest meeting it did not change rates, but policymakers indicated that more rate rises are on the way. they say that is in reaction to the strong u.s. economy, jobs growth and rising inflation. steve liesman has more the federal reserve kept interest rates unchanged in its november meeting in the range of 2% to 2.25% and signaled rates will continued to rise another quarter rate hike could come as soon as december that probability is in excess of 80%. the fed had positive words to say about the u.s. economy, noting that the labor market continued to strengthen, that economic activity is rising at a stro strong rate and that the unemployment rate declined they took note that business investment moderated from its prior rapid pace the fed continues to see inflation near its 2% target all of this adds up to a fraught december meeting for the fed where markets expect the central

bank to hike but president trump has complained that the fed is moving too fast to slow down the economy and undoing the effects of the tax cuts to speed the economy up fed officials argue that the current rate is low enough to keep stimulating economic growth given the high rate of growth irt and the low level of unemployment those are questions for december, and for 2019 for november the fed took a pause. coming up, a whole new world. disney is set to take on netflix. find out how after the break (vo) 'twas the night before christmas and all through the house not a creature was stirring, but everywhere else... there are stores open late for shopping and fun as people seek gifts or even give some. not necessarily wrapped with paper and bows, but gifts of kind deeds, hard work and cold toes.

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see the grinch in theaters by saying... "get grinch tickets" into your xfinity x1 voice remote. [ laughs ] uh oh. [ laughs ] something in my throat. welcome back to the show disney shares rose in afterhours trade in the u.s the media giant's quarterly results beat estimates >> disney announcing fourth quarter earnings today and the company had strong numbers in its studio category.

the studio revenues coming in at 2.15 billion versus estimates of 1.78 billion that's a 50% increase year over year disney says that growth was fueled by, quote, exceptional performance of "black pantherpanther, panther," "star wars, the last jedi," avengers infinity war and incredibles 2. bob iger said the company is investing substantially in original content. >> we are winning ourselves third party listening which has started so the product appears on our service and not third party services we are investing substantially in original content, against what will be all of the brands but making "star wars" series and marvel series, and certainly disney series and pixar and original movies as well. and then thousands of hours of library product. >> disney is also making a big investment on director to consumer offering to compete with netflix and amazon. but iger said it's premature to

say whether the company would pursue acquiring the 40% of hulu it does not own. ubs said it would contest a civil complaint filed by the u.s. department of justice over the bank sale of mortgage backed securities in the run up to the financial crisis the doj has given no indications about the size of a penalty but the swiss bank says the claims are not supported by the facts or the law the bank could face a 3.7 billion euro fine from french prosecutors over a tax evasion allegation authorities in paris says ubs illegally solicited french clients and helped them place money in undeclared swiss accounts the bank denied the allegations and called the fine irrational. back in the u.s., we all know it's been an eventful week in washington, attention shifts to the ways in which a divided

congress could impact regulation, particularly in a space like agriculture we're joined by the ceo of false agro given the regulation in the u.s., with the states, federal agencies sometimes moving in different directions, have these results from the midterms changed the direction your company moves? >> it's clear american citizens made a choice. however when we talk about the regulation in agriculture it's an important issue we're talking about food security that's not only about the supply of this, but also ecological regulations and restrictions we have to be sure that all food

on our table is clean, ecological and healthy with that i would see further regulation not only in the united states but in europe. that it is more and more focused on hazard metals, heavy metals in the soils which may come into the roots and into the food. cadmium, for instance. in europe, restrictions are more stricter because it imposes health problems when it comes to your plate or to the plate of many people. >> what's interesting in europe is you have the european parliament, the european commission and the council of ministers, they all have different ideas about what that level of cadmium should be in the soil and when new thresholds should be introduced they're trying to develop a

unified plan in europe the con squsequences of that decision for you, the implications are huge for you guys in terms of market share. is this something you're welcoming not just on environmental grounds but also on business grounds? >> this is very good question, but we need to stress this type of ore, which has zero health benefits, there are many, many producers basically who produce and mine such an ore it is idea should not come to

phosagro or other companies because of this cadmium. it's not an issue which -- i think the major issue is to bring the ecological fertilizer to europe and basically also to the farmers. the main benefit out of this regulation is european citizens, people we are a beneficiary because we don't need to invest in the cleaning of the process. but the research which is

available says that it is not that expensive i think that's what europe is proposing is to have this regulation this regulation is already imposed in switzerland, norway, finland, in netherlands for many, many years today, at least, people and politics, they put some focus on it >> i want to ask a question about the industry as a whole. in the past you talked about dealmaking and consolidation being a good thing for the industry we have seen some big deals happen this year, bayer an monsanto is this an area where you continue to expect further consolidation? are you yourselves as a company perhaps with the view of more international expansion thinking about acquiring or partnering up with companies as well

>> a lot of mm rash mshg&a has already in the fertilizer company. we have the largest producer of phosphate, nitrogen, the largest in the world also we see m&a in some other areas. even because of that we see positive application on the price. the price rises this year from the previous about 30% >> do you see prices rising next year as well >> yeah. i think it's a positive trend. the whole industry went from high capex, new production, and today i think all new investments, they have already been done.

now i think we will have and we will see a positive trend. >> we have to leave it there thank you very much for joining us coming up on this program, shares in telecom italia sinks details on that when we come back

welcome back to "street signs. i'm willem marx. >> i'm joumanna bercetche. these are your headlines luxury loses its shine richemont drags the sector into the red after failing to mask a slide in net profit with the swiss group saying consumer demand is volatile thyssenkrupp shares hit their lowest level since july of 2016 as the german group issues a fresh profit warning and blames provisions it will need to make for its steel cartel investigation. bad signal telecom italia shares sink as

headwinds in italy and brazil weigh on nine-month results. and ubs shares fall after the u.s. sues the bank over mortgage securities fraud dating back to the financial crisis and the swiss lender reportedly rejects a $2 billion settlement with the department of justice >> we got a barrage of uk data the most important one is the gdp number that's come out for q3 q3 gdp 0.6%, quarter on quarter. that's versus a reuters poll of 0.6% as well this is the strongest calendar quarter since the fourth quarter of 2016. so actually the numbers are pretty strong and in line with expectations q3 on a year-on-year basis came in at 1.5%

that's in line with the poll at 1.5% the strongest calendar quarter since the third quarter of 2016. as i was saying. we also got the manufacturing numbers and industrial output numbers, those came in slightly stronger than expectations services output has come in slightly weaker. we are looking at a drop in services to the tune of negative 0.1% this is the first month on month drop in services output numbers since february, but still growing year-on-year the monthly gdp numbers were flat versus a poll of 0.1% i would say broadly speaking the

economy, uk economy does continue to exhibit rather strong growth in the third quarter of this year, but on a forward looking indicator, things like the service output, things are not looking as rosy i'm happy to bring in robert wood from bank of america merrill lynch to broaden this discussion >> we all knew q3 would be strong why was it strong, because it was warm put your hands up if you had a barbecue over this summer. it was warm, people were eating out, spending a lot on food. this is why gdp growth is strong you highlighted the key number, heading through into september and into the fourth quarter things look weaker that services number for me is really, really absolutely key. for month on month it is

volatile that shows strength is starting to come off. if you look at forward looking indicators, they are falling sharply because of brexit uncertainty. >> i was at the bank of england conference last week one of the points that kept coming up over and over again is that they're expecting to see this unleash of investment if we get the brexit deal at some point hopefully in the next couple of weeks. are you not expecting that you are not expecting a baseline uptick in data because of some brexit uncertainty being removed and a renewed amount of investment coming into the country? >> not in q4 we're halfway through november, we don't have that deal yet. these figures are for september. some of these pmis are very, very week. to answer your question, heading into next year, potentially you could have investment improve. but that said, what really strikes me about the uk economy over the past few years, it must strike everyone is that it held up better than expected.

companies have responded less than everyone thought to uncertainty. so i find it puzzling to imagine that relieving that uncertainty that people have not responded to will lead them to respond by spending loads more. what we published this morning away from investments and on the consumer side, we run a proprietary consumer survey at bank of america, do you think a deal is likely or not, and we find people don't say they would spend more money if there's a deal again for the very reason i've given you. >> it's not really a consumption matter, it's an investment matter >> investment is only 10% of gdp, it's growing zero at the minute, if it accelerates to 5%, that's 50 basis points the bank of england is forecasting 0.4, 0.5% growth next year, we could have zero in the fourth quarter they need that acceleration to get back to where they were. >> i take your point that

businesses have not necessarily responded to this uncertainty as much as we were told they would two years ago. if there is some uncertainty, and that may be one cause for relatively sluggish numbers, is it possible come march 29th, even if you get a deal that means we avoided the cliff edge? so, you know, so that's a good thing? we still don't have a lot of certainty over the trading relationship you have another 18, 20 months beyond that where we'll have, again, presumably whipsawing in the currency on the back of every briefing coming out of some minister's office, surely that uncertainty, if there is some of it, it will continue long into the future >> absolutely. you hit the nail on the head there. there's two types of uncertainty here one is will we fall off a cliff in march i don't think any business has been seriously reacting to that, until recently, just now

most of the weak growth through this year is about the other risk what happens two years down the line we will learn nothing about that next march so for business investment, no, i do worry that it's not going to pick up you can resolve uncertainty by telling everyone that you're certain things will be great, or telling everyone that you're certain things will be terrible. we're not in the single market anymore, it's difficult for services, even for goods this loose light relationship is one more towards the negative end of the spectrum. >> just very quickly, do you see the bank of england hiking next year >> i do because they say they're going to if someone says they're doing something, you have to trust them i have a hike in may philip hammond unleashes more fiscal stimulus next year, you

might lean to two. >> robert, thank you very much for joining us be sure to tune in on monday when the bank of england deputy governor, ben broadbent joins us in the studio for an exclusive interview at 10:00 cet. let's check in on how european markets are doing the picture is not that pretty overnight we had some weakness in asian equities. that has continued into european time as well we have ftse 100 about a half percentage point weaker despite stronger gdp data. perhaps people are looking at forward looking indicators xetra dax is also pulled down by weaker earnings. thyssenkrupp is a focus there. cac 40, richemont is an underperforming name in that sector, that index ftse mib, all eyes on the italian response to the european commission

switching on to foreign exchange, today we get a picture of a stronger u.s. dollar versus the euro we're trading a tad weaker we have cable at a third of a pe percentage point weaker. stronger against the renminbi, which is around that 6.95 level, and some say we may get to 7.00 by the end of the year. the european commission disputed italy's deficit forecast and warned that rome could breach the 3% eu deficit limit by 2020. giovanni tria says the brussels forecast are based on careless and partial analysis of his plans. he also confirmed the government is committed to respected a 2.4% spending cap in 2019 in fact one of the men involved in this very closely, prime

minister luigi dimaio has been saying the government will cut at least 200 useless laws to try to cut spending. and giuseppe conte was slated to be the deregulation czar for the five-star to cut some of those laws they're hoping they can drop calls to leave the euro because of perceived changing equilibrium in europe. he says they will not exceed the 2.4% deficit call in 2019. he says the government wants to do expansionary measures to lower public debt. we've heard this over the last few months that by spending more money they will grow, and by growing they will reduce the deficit. that's an argument not well received by anyone else in europe >> we had the european commission forecast come out yesterday, the bottom two, who

are they italy and the uk, both growing at 1.2%. the weaker growth means they will find it difficult to meet that 2.4% dif seeficit goal. >> what's the impact on yields >> let's take a look ten-year btp up about 0.5 basis points all of this ahead of that november 30th deadline we continue to see volatility in italian banking sectors as well. all eyes on that over the next couple of days also in italy, an adverse domestic environment weighed on telecom italia in the first nine months of the year the company says it won't meet the net debt to core earnings target blaming headwinds in italy and a weakening exchange rat rate in brazil vivendi, which earlier this year

lost a shareholder battle to control the company is blaming elliott for the lackluster performance. vivendi described the writedown as sudden, unusual and destabilizing. andrea cabrini has the latest on this story >> basically, as we speak, telecom italia shares are trading at five-year lows and losing ground after a long, tense, and troubled meteting of the board. on one hand we have this devaluation on the italian asset, devaluation of the italian domestic network due to less confidence that is forecast the expected cash flow that will be able to sustain this value. on the other hand the company announced that they will not be able to confirm the ratio of 2.7 between net debt and ebta,

between net financial position and net operating margin this is one of the most sensible indicators that investors look at to understand if the company is in condition to repay its debt in the time which is expected telecom italia debt is at 25.1 billion euros. all of this is questioning for the market the ability of the management and of the ceo to deliver the targets, the results, the benefits of the industrial plan announced. if you wanted to look contrarian this morning, you can assume that in terms of the domestic revenues of the mobile sector, telecom italia is better than the other operators. in a few months they got more than 2 million subscribers in italy with an aggressive price war. on the other hand there are talks about a commercial agreement between telecom italia and open fiber, which is the state-backed operator which is building a fiber to the home

network in italy this is just a commercial agreement to share capacity, to lease capacity to each other at the same time, according to some analysts, it might be the anticipation of eventually a tie up of the two companies. in any case, the market is concerned that the governments that you were mentioning, the shareholders of telecom italia is creating an instability situation. vivendi is saying that the activist fund elliott is responsible for the disorganization, the failure of the government but it is said this government is too fragile to allow telecom italia to put the seeds of recovery in place. the challenges are not just domestic there are industrial challenges all over europe but here in italy, again, they need more clarity to look ahead to the future. >> andrea, thank you for

bringing us the latest on telecom italia. coming up, find out why president trump's acting attorney general faces scrutiny. more on that after the break your brain is an amazing thing. but as you get older, it naturally begins to change, causing a lack of sharpness, or even trouble with recall. thankfully, the breakthrough in prevagen helps your brain and actually improves memory. the secret is an ingredient originally discovered... in jellyfish. in clinical trials, prevagen has been shown to improve short-term memory. prevagen. healthier brain. better life.

welcome back. an attack in melbourne has been confirmed by australian police as a terror incident a man stabbed and killed one person and injured two more before being shot dead by police officials say a counterterroism investigation is under way those are live pictures of australian police giving a press conference as we speak a group of democrats are calling for an emergency hearing into the appointment of matthew whitaker as acting attorney general. pete williams has more on the story. >> reporter: before matt whitaker became the chief of staff for jeff sessions a year ago, he was a conservative commentator. he said special counsel robert mueller's team should not cross

some red lines >> it would be a fishing expedition if they start looking into essentially all of trump's finances >> reporter: and whitaker said a year and a half ago he saw no proof of russian collusion with the trump campaign >> the truth is, there was no collusion with the russians in the trump campaign there was interference by the russians into the election, but that is not collusion with the campaign >> reporter: some in congress say that makes him unqualified to oversee the russia investigation. >> we know he was chosen for the wrong reasons, because of his views on the russia probe. >> reporter: but even some who question the appointment say whitaker may see it differently now. >> bob mueller is going to come in and brief him on the details of the investigation, and you are in a different place at that point. >> reporter: and today, the husband of white house adviser kellyanne conway, george conway, co-writes a column with former solicitor general neil katyal,

saying under the constitution, the president can't just make anyone acting attorney general. >> principal officers, like heads of departments, have to be senate confirmed, and our founders put that in for a reason, because you don't want the president's lackey to be serving in such an important role. >> reporter: justice department ethics lawyers will now advise whitaker on whether he should recuse from the russia investigation, but there's no sign that he intends to. pete williams, nbc news, washington. fitch says the u.s. midterm election results could slow deregulation efforts by the trump administration president trump has already rolled back some aspects of the dodd-frank financial restrictions, but a democratic house could stall further changes to that. we're joined by the former uk ambassador to the u.s. there are obviously going to be areas of contention between president trump and a democrat controlled house as there were between john boehner and president obama. do you think there's areas of policymaking where they could find common ground things like drug pricing like infrastructure spending

>> in theory, yes. i think it's a good start that the president congratulated knonancy pelosi who could be th new speaker of the house america's infrastructure is crumbling, does need money, and it got stuck during gridlock previously that's not impossible. but on an awful lot of other things it won't be easy. this is a president who has been polarizing, critical to democrats, and there are lots of democrats, especially committee chairs now in the house who will be holding hearings into what his administration has been up to donald trump has already said if you start investigating me, then you can kiss good-bye to any idea of bipartisan ship. >> do you think that will have an impact on this america first policy that president trump has introduced, in the sense that he will have to be more diverted on whatever is happening domestically if there are various subpoenas, but also in

terms of restraint, in terms of what he can achieve now, there is a counterweight to whatever he wants to put through legislatively? >> there is a counterweight, even during his first two years he didn't get much done. he got a tax cut based stimulus package through. the main achievement was getting two of his people on to the supreme court. he didn't get much else through. he didn't succeed in getting new legislation through on healthcare that is a bit different. america first i think will be here to stay as long as that president is here. is a unilateralist rather than a multilateralist. >> one thing that's interesting is the idea of trade policy. that's something controlled by the executive branch, by the president and his cabinet in terms of pursuing possible options. treaties need to be signed by congress when you look at the relationship between the u.s. and china, the democrats are not fans of the chinese when it

comes to things like intellectual property, is that another area where you could see further tightening or tensions between the two parties? >> i think there could be doctoribdocto considerable difficulty down the track. hillary clinton was for free trade until she became against it because it is mixed up with globalization, automation, job insecurity and a sense that the chinese don't play by the same rules as everybody else. i think that is an area where he could get a degree of support for tougher measures on the other hand the democrats think trade wars are not wise and can cost jobs. >> sir, how do you see the special relationship between the uk and the u.s. today especially after that trump visit to the uk >> it's still important to the british government but also important for the united kingdom to have a relationship with the united states of america it's very important.

of course for theresa may the fact that trump is pro brexit and says there will be a nice free trade agreement as soon as we do brexit, that has been important, but it is becoming less and less realistic as time passes it's important it's in pretty good shape. the chemistry seems to be okay despite the problems we had during donald trump's visit. it remains fundamentally important for the uk to have a good relationship with the u.s >> one thing we know for sure about president trump is that he's a tough negotiator. everyone seems to be under the assumption that come brexit it will be easy to sign a free trade deal with the u.s. are you of that view >> no. i dealt with trade negotiations with the united states of america. i dealt with the transatlantic negotiations, americans play hardball they defend their own interests. they are going to drive a tough bargain. what worries people like me is that we are in a weaker position on our own than conducting those

negotiations as one of a block of 28 nations. >> you said brexit first, i have to ask you in terms of a quick answer, is there going to be a resolution over the next few weeks? if so, what does that mean for the future >> i think there will be something over the next few weeks, but it's either bad or very bad for national interests. there is no good brexit option out there left now >> you wanted a quick answer >> that suited my purposes well. appreciate you coming in i'd love to see what happens over the next few weeks. i don't think a government has faced such a multi-pronged challenge politically and in terms of technical details as well you yourself have been in these negotiations this is an extraordinary to find yourself in, isn't it? >> it will be extraordinarily difficult. i worry that the deal that looks as if theresa may may get it will not be very good north give the brexiteers or remainders anything they want

whereas crashing out with no deal, it's so destructive, the country is not ready for that. >> thank you very much for joining us on the show today before we head out, let's look quickly at u.s. futures and see what the mood is like. in line with some price action we had in asian equities and the weakness in europe, it looks like it will be a weaker day for u.s. equities as well. dow seen opening up 60 points lower. nasdaq about 42 points lower that's it for today's show i'm joumanna bercetche >> i'm willem marx "worldwide exchange" is coming up been jimmy's longest.

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it is 5:00 a.m. on cnbc. oil falling deeper into a bear market down again this morning. asian markets tumbling overnight. hong kong taking a big hit disney reporting a record quarterly profit you'll hear from the ceo tough times in cincinnati as p&g announce amakjor reorganization and alibaba hoping to smash some records. we'll bring you alibaba's