welcome to "street signs." i'm karen tso. these are your headlines european equities defy the gloom pushing higher after steep declines in the u.s. and asia over peak iphone fears that hit apple shares. telecom italia announces the ceo, amos genish, will leave the company as a move vif vend day calls mean and cynical. vodafone jumps towards the top of the stock stock as new ceo, nick read, lays out an

ambitious cost cutting plan. and a lost loss in momentum of global activity has slowed the pace of economic growth according to peter praet we'll speak exclusively to him at 10:15 central european time let me take you to the market action in europe. after yesterday's losses on the benchmark, we closed down 1% and in correction territory, the stoxx 600 bouncing decently. a fair amount of green is splashing up on the heat map if you drill down to the major indices, you can see it's across the board. france is supported today. 0.6% even more on the german stock market, the dax, we've not seen this for a while the tax has been flat.

11,416 is thelevel we're at. the ftse making gains, which is curious, we're also seeing a bounce back in sterling today. the dollar was the key currency to trade overnight the sterling bounced back. going with it has been the uk stock market and italian stocks, too, ftse mib trading higher by 0.2% a little more cautious versus the rest of the markets. telecom italia with some key moves. we'll come back to that story. i want to tell you how sectors are performing industrials are strong telecoms on an update from vodafone, and that telecom story. travel and leisure, the oil price declining for 11 straight sessions that helped. a number of airline stocks have been warning about fuel bills. travel and leisure back in the game today

industrials are strong the big patch of red on the boards, oil and gas sector energy stocks declining on the back of that drop in oil despite the fact that the saudis in the past 24 hours are signaling they will reduce output, which should provide support to the markets the telecom italia story, the company confirmed that the ceo, amos gemish will step down. they will also hold a board meeting on the 18th of november to appoint his successor vivendi condemned the decisions branding the move as mean, cynical and deliberately planned in secrecy steve spoke to telecom italia's chairman about amos genish in italy back in september. steve asked if genish had the support of the board and if he was the right man to execute the job. >> he is the right man there is no such thing as a concern about his capability we need to see him deliver on

things our board activities should be addressing that point of the deliverables up until now they're not yet achieved but there are plenty of things we're now moving on. i'm sure this will be a positive result for the future. >> he's only human yes, he's there to execute, but if he feels people are briefing against him from within the company -- he did react to that, that's the wrong thing to do >> my role is to concentrate on the things that we have to deliver. that's something that all the board members are supporting me in >> geoff has been covering this story all morning. we've been covering it all year. elliot seizing control of the board, it seemed like there was still support for genish, but he was always vivendi's man were the daggers always out for him? >> this is the country that brought us machiavelli and

bourges, and this is another story where the knives were out. vivendi in charge, but telecom italia underperforming elliott comes into the picture, we need to resolve that. all sorts of divisions were struggling now elliott wrested control of the board here what happens vivendi gets it. that's why they're so upset. they figured that amos genish was the tough character who would come in and shape up the business the man is a former captain in the israeli army he knows something about strategy and being in a tight situation. even he struggled really to get to grips with the reasons why there is a structural challenge to making this business work again. enter stage left into this

drama, the populist italian government this is where i think this story could now get even more interesting. the italian government has its own ideas about how it wants to restructure the telecom sector, and what it hopes that telecom italia will do as part of that and they have their own version of corporate restructuring that pushes another business into telecom italia to streamline the company and make it more efficient. right now this is just a mess. >> i'm glad you went to the big picture. i had a look at the other asset that has been spoken about for the past week or so shg, open fr this business secured 3.5 billion euros just this year to build out this fiber network as we know, there's been a race globally towards 5g. we're not quite there yet. a lot of networks are trying to build it and fund it if you have an existing legacy business, how will you plan for

the future something needs to get done at this point it seems. >> absolutely. not only do you have the issues around operating in the italian context with some challenges being able to hire and fire workers and restructure units as you would like because the government is always going to be involved and on your shoulder as another shareholder, but the whole industry has got structural problems. vodafone is another company that you'll no doubt focus on in the program. while they had a bounce this morning it's been a terrible five-year and one-year chart a lot of that is because the whole industry has got some structural challenges at a time, as you point out, when they are expected to drive back into their coffers and fund the expansion of a 5g program. i think it raises some interesting questions about how quickly we are going to move to

that 5g agenda here in europe. i think we have a market that is too competitive, if that can be a thing. there are too many telecom operators in the european context. so many of them are struggling to roll out the technology that governments would like them to implement to improve the overall productivity of workers. >> it sounds like there is a candidate lined up, there will be a board meeting on the weekend. it sounds like they already have someone standing in the wings ready for the board to vote on i guess that's the big next movement >> i will be dusting off my copy of the prints and trying to work out what happens next in this story. >> geoff, thank you very much. vodafone has swung to a six month net loss after the disposal of its indian business. the ceo said he saw the

strategic control of the company as important adjusted ebita growth is expected to be 3%. to the oil story, wti marked its longest losing streak in history after donald trump hit out at opec for plans to cut output next year the u.s. president took to twitter arguing that oil prices should be much lower based on supply pressure from cleaner fuels and electric vehicles on global oil demand is set to intense fi according to the international energy agency. the iea predicts demand for oil will fall until 2040, and peak at 106 million barrels per day the executive director of iea joins us today thank you so much for joining us today. talk us through some of the key takeaways as you see it in the

report today >> you started with the oil markets. we will look at the next few years, around mid 2020s, we see a serious challenge, to be frank with you on one hand we see a robust oil demand growth, driven by trucks, jets, ships, most importantly petrochemical industry on the other hand when we look at the investments, and the projects today, there's a serious gap between the demand growth and projects and the gap is serious many people think this gap can be filled by a shale oil we do expect shale oil will grow strongly, but in order to meet that gap, to fill that gap, u.s. shale oil, please be careful,

u.s. shale oil needs to grow between now and 2025 more than 10 million barrels per day u.s. needs to add one single russia in seven years of time in order to avoid a major tightening in the markets. this is a tall order this can happen, of course i don't disregard it completely, but it would be a small miracle in my view in the absence of new investments for the congressional projects in middle east, russia, america, north america, canada, latin america and elsewhere, we may well face major challenges in the oil markets mid 2020s. please let's do not look at only today. we have a lot of supply today.

let's take our steps accordingly seeing the risks coming mid 2020s as a result of still robust demand growth and fading away of new investments for oil. >> that's quite a stark warning as investsinvests -- investors e oil price. you're talking about the mid 20s in the next few years that we could face some supply crunch. on page 135 you are talking about another boom/bust commodity price cycle. when you flag that up to investors and energy players, you're not talking about tomorrow or today there could be a boom/bust situation, you're saying by mid 2020 we could face boom/bust again. >> very much so. in fact, before -- i'm sure before mid 2020s that we think it's a rather serious

challenging period to enter, we will see a lot of volatility we are entering into the oil markets a period of renewed uncertainties and volatilities and the watch word for the oil markets is the volatility today. and this is one of the reasons that the invest. s are not investments are not coming forward on top of that i'm worried to see the geopolitics of energy is becoming more of an important factor in the decisions of the investors, government is, and others the energy giant, geopolitics, they are more and more interwoven in a tighter way and complex way, which is a worry

for energy people like me. >> you mentioned the volatility. we know investors do not invest in a volatile environment. they are reluctant to make big upscale investments in a volatile a volatile market how hdo you feel about the u.s. president commenting on the oil supply and the market when there's already so much volatility >> it's not my job to comment the president of the united states when i look at the markets, my main worry is the following, less demand in october when the oil prices reached 86 dolla$86, let's be careful, we're entering

a red zone, especially while growth momentum is weak. i appealed to major producers to bring more volume to the markets. i'm happy to see that they responded to our calls, the calls of others, the key producers like saudi arabia, emirates, iraq, russia brought new volumes to the markets now we have a lot of supply. but now i hear from different corners that now it is time to go back and cut the production and push prices up i would be careful to wish and see even from producers point of view, go back and up again and creating a serious challenge for the global economic frotgrowth global economic growth is slowing, especially in emerging countries like india, for

example, who is one of the major drivers of global oil demand growth today >> very good to have you on the show today thank you very much for setting up that report for us. >> thank you coming up, we speak exclusively to ecb executive board member peter praet that conversation coming your way next xfinity mobile is a new wireless network

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let's look at how the euro has been traveling in the trading session today, from some of the highs to some of the lows you see on the screen. the euro falling against the dollar after peter praet said he sees signs of a lowdown in the pace of global economic growth he also says significant monetary stimulus is still required let's get out to joumanna bercetche who joins us from the ubs european conference in london quite a stunning statement from praet today, when you consider it is the day that the italians are resubmitting budget

proposals to brussels. so much more stimulus is required, should it be monetary orifi fiscal? >> excellent questions, and i have the man of the hour with me, peter praet, chief economist from the ecb is with me. i want to pick up some comments you made in your keynote speech just now one line in particular has caught the market's attention. you said significant monetary policy is still needed can you explain that >> i don't think it's new. we always communicated that to reach this inflation path, close to 2% in the medium term, we needed a substantial degree of monetary accommodation when we announced that we anticipate to end the asset purchase program at the end of this year, we said that we still needed a substantial degree of

accommodation to support the base scenario. >> you say that, it's at odds with an ecb who are intent on ending asset purchases you also elualluded to growth, d people are wondering whether you are ending because of fundamental reasons or because you're running out of bonds to buy. >> no. what happened is we started the process of the normalization of the instruments. when we talk about normalization, in the u.s. it's clear. it's a gradual tightening of interest rates when we talk about normalization here, we recognize the monetary policy cycles are different between europe and the u.s we need a substantial degree of accommodation. i would talk more about normalization of the toolbox so we go from asset purchase to guidance on interest rates it's remarkable when in june we start to signal this rotation of instruments, the monetary conditions reflected in the

curve didn't change much, i think that's quite successful. >> yet growth is only around 2%. we're already seeing worrying signs that things will slow down you talked about it as well in your keynote speech. there's risks from ilt taly, frm protectionism, from brexit could you reactivate purchases again? >> you would need to have a substantial degree of change in the base scenario to go back to nonconventional measures i don't think this is a question today. we look through the noise that we have, a lot of noise in the data that we get you think about the automobile, emissions, disruptive effect on the productive side. so a number of things happen to makes the readable of tibl reaie

data difficult >> you talked about continuing to reinvest on a monthly basis are you planning on giving color to the market on how you plan to reinvest as far as maturity? >> that's a discussion for the next governing council in december when will we communicate more about the horizon of reinvestment that's the signal, i think i don't think we need to rush on this we progressively will decide when we do that. what is clear now, is that we are going to reinvest for an extended period of time. if you don't do that, the reinvestment, you will see the excess liquidity in the markets now will fall much in the coming years. so the reinvestment expectations for the markets are something like both between two and three years, we look a little bit about the noise -- through the noise in the data before we

clarify this so it's a bit premature now to say something about this >> let's talk about italy and typically the only way that the ecb would get involved is via, mt activation. at what point -- how much sovereign spread widening and financial instability do we need to see in order for thatated an step in and stabilize things >> the first thing we see is substantial tightening of financial conditions in italy. when you look at financial conditions in the euro area as a whole, you don't see that. there's little contagion or no contagion from italy to other countries. it's purely a localized problem, certainly for the time being so the asset purchase program is not destined to support the country. it's the monetary policy decision the omt has to be requested by the country. the conditions are clear so we all have to see, you know, how long, you know, it takes for

the spreads in italy to go down at some point because the situation of tightening of conditions that you have now are very difficult to sustain for an extend period of time. >> the viability of italian banks is closely connected to the ecb as well, about a third of the outstanding funding is from italian banks are you thinking about that when we get to that cliff >> as i say, it's very important to see that the measures that we have taken in general are monetary policy measures for the euro area as a whole if we build a case for a nthat, it's based on monetary arguments as a whole and not to help a specific part of the euro area so we look at the transmission of monetary policy, but these instruments are not destined to target particular countries and that's very clear from the beginning. >> now, you've also said on your monetary policy forward guidance

around summer of 2019 should be the expectations of perhaps the first interest rate hike are you planning on giving more clarity? your colleague proposed making a forward guidance rate path similar to that published by the fed and the bank of england. are the ecb thinking about being more explicit about the rates guidance >> i said the closer you get to the lift off rate, the more you have to communicate about the destination rate, the path of normalization of the rates what i said in the beginning is that this is premature to come up with this the rates are expected to remain at the present level through the summer of next year. so talking about what will happen after is premature. >> maybe we're jumping the gun i have to leave it there thank you very much for your time >> thank you peter praet with us. karen, back to you >> fantastic interview there thank you very much. clear insight on what has been a fairly big day for markets we had a selloff yesterday, a bounce back in europe today. all eyes on the central bank

i dare say it is the fed that many investors are focused on lately, concerned about this tightening program, but strong messages there from the ecb that the stimulus will continue in europe, which is quite key when you look at the dollar strength and the interest rate differentials. we will squeeze in a quick break here mre plenty coming up how is the engine of europe working with trade and brexit? we'll head to berlin to ndfi out. 300 miles an hour, that's where i feel normal. having an annuity tells me my retirement is protected. learn more at retire your risk dot org.

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welcome to "street signs. i'm karen tso. these are your headlines european equities defy the gloom pushing higher after steep declines in the u.s. and asia over peak iphone fears that hit apple shares. telecom italia announces the ceo, amos genish, will leave the company as a move vivendi calls mean and cynical. oil prices marking their longest losing streak on record

as president trump turns up the heat on opec saying producers should not cut production. the iea executive director says he agrees. >> i hear from different corners now it's time to go back and cut the production and push the production up. i would be very careful. the ecb's peter praet warns a loss of momentum in global activity has slowed the pace of economic growth adding significant monetary stimulus is still required >> all options are an opening, but you need a substantial degree of change in the scenario to go back to nonconventional measures i don't think this is the case today. we have some data crossing this is a read on the uk employment scene as we come up to the final stages of brexit. the numbers today, the unemployment rate for the month of september has crept up to

4.1% indications and consensus were for a number that was flatter around 4%. it has been a bit of a miss on that line. when it comes to the rate, it's 21,000 to 1.38 million people. that's the latest indication perhaps another element of weakness just flashing up around key uncertainty with this brexit deal that's still being negotiated let's get to the latest on that. significant hurdles remain in securing a brexit deal according to prime minister theresa may. negotiators worked overnight to break a deadlock over the irish border backstop, but the talks appear the fruitless speaking at the lord mayor's banquet, may said both sides are working hard to reach an agreement but warned britain would not sign up to a deal at any cost >> the negotiations for our

departure are now in the end game we're working extremely hard through the night to make progress on the remaining issues on the withdrawal agreement, which are significant. both sides want to reach an agreement, but what we are negotiating is immensely difficult. i do not shy away from that. the brexit talks are not about me or my personal fortunes they are about the national interest and that means making what i believe to be the right choices, not the easy ones. overwhelmingly the british people want us to get on with delivering brexit, and i'm determined to deliver for them >> britain's cabinet minister says he believes a brexit deal is possible in the next 24 to 48 hours. so stay tuned. speaking to bbc radio, he said he was cautiously optimistic but cautioned there's still work to be done. here's how european markets are traveling today around some of

the brexit news. the ftse at 7,085. about 0.40% higher some fading optimism about brexit is starting to weaken that a bit clawing back some moves in the early part of the session. the dax is still holding on to 0.6% of a gain france up 0.40%. and the italian market today resubmitting proposals after all the angst around the spending proposals. we have a bit of a cautious equity market in italy we had the data on the unemployment scene in the uk, sterling at 0.40 up. the euro is gaining to the

dollar it was a story of dollar strength overnight the dollar holding up to the yen. that's a story around risk optimism, risk sentiment the dollar gaining versus the yen. risk on is also supporting some of those trades. but you can see euro and sterling certainly getting a foothold today >> u.s. futures important to the sentiment in europe today. you can see the implied open suggesting a bounce for those european markets after a fairly weak day yesterday we saw reversal where the markets closed around some of the session lows the major averages suffering their worst day in about two weeks. we're looking for an improvement in trade when u.s. markets reopen today. members of president trump's trade team will consider auto tariffs at a weekly meeting

today. the white house launched the probe in may, but european commission president jean-claude juncker issued a stay with president trump in july. cecilia malstrom will meet her u.s. counterpart in d.c. tomorrow. trade tensions and ongoing brexit negotiations are among the issues that could weigh heavily on the german economy. the country's top business leaders are meeting at an economic summit in berlin amid warnings that europe's largest economy could slow dramatically this year. let's get out to annette live in berlin at every turn we're questioning whether there will be tariffs for german autos whether it's down to digital taxes, from president trump and a trade spat what are the concerns when we talk about the powerhouse german economy? >> well, you see a direct reaction on the markets every time the topic of tariffs on cars is coming up again.

you see also how important the industry is for the german economy as such in the third quarter gdp numbers which are due to be out tomorrow the preliminary reading. but we already have the analyst estimates, of course and it is probably a contraction in the third quarter the car industry had severe problems because of new testing rules, et cetera that tells you the story, how important the german car industry is for german gdp so it's huge having said that, we are here discussing also whether the third quarter weakness is just a temporary blip or whether it's here to stay, or what we can make out of all of these risks which are threatening the economic outlook for germany i had the chance to catch up with one of the wise men, a member of the german economic councilyesterday on the ground here, mr. schmit, the head of

the rwi. listen to what he said concerning all these risks >> the major risks are long-term in nature. in the short-term everything looks quite okay in the international environment the trade conflicts, the upcoming brexit, possible problems in the euro area, these are international -- elements of the international environment that are disturbing, and disconcerting in the domestic realm, especially with demographic change we already have shortages of skilled workers. more than half of the expansion of employment last year has been coming from migration. so we need more migration in the future we also need to take care that we make more out of our own labor force potentially. that means more market economy

also in the labor market in germany. not more distribution, redistribution, but more efficiency would be in order >> clearly we've seen a worsening of the sentiment indicators for the german economy. as such given all the risks, brexit, the trade talks, but also the future of italy is kind of also weighing on the sentiment. nobody really knows how that situation will develop i also spoke to the president of the cew yesterday about what he thinks is the direction of sentiment for the german economy. >> we are measuring economic sentiment in germany with our financial experts, we've seen last month a severe drop in the prognosis for the german economy. for me there are two risks one is a political risk.

so brexit is not decided italy makes markets nervous, and we see protectionism, particularly in u.s. and china which is our german exported oriented economy, that would be a potential risk >> in addition to these external factors, clearly the german economy is undergoing huge structural changes or the various industries are undergoing huge structural changes. i was pointing out how important the car industry is to germany this industry is stressed from all factors. we have clearly the electrification push, we have clearly the fact that we're talking about tariffs situation, and this is not something which is very helpful for the german economy as such. the volkswagen ceo was saying his industry is in danger. if there's no support also from

the political level here in berlin, this can also play out very badly for germany as such we are going to talk here on the ground about the future of the german economy, about regulation in two exclusive interviews. one with olaf scholz, the finance minister we will talk about his vision for europe, and then another one with the economy minister, peter altmaier about his take for what has to be done in terms of reforms for germany to keep it up to speed with the competitors out there. back to you. >> thank you very much for that. looking forward to those conversations. you mentioned the german finance minister, he expressed optimism over the budget row

between italy and the european commission he said rome will take steps to solve tensions with european authorities. speaking to cnbc he described italy's debt situation as unfortunate. >> the commissioner and the european council of finance ministers treated the question i think very moderate. they started to discuss about necessities for the futures, and they looked at the situation of the public debt, which is important. we are quite optimistic in the end that would be a good solution the italian government has until today to send a new budget proposal to the european commission willem sat down with five-star movement mp lorenzo fiormonti and asked if rome will make any changes to the current budget. >> i don't expect the government to make any substantial revisions. i think there may be a dialogue

around some potential second steps, but the bulk of the core of what was proposed will remain the same if that happens f thshgshappenst acquiesce to the demands from the european commission, what does that mean >> i think it means we're sending a message that europe needs to rethink the way in which he conceived of economic development over the past few decades. the italian society is on the brink of collapse. we have increasing absolute poverty. we have a lot of people that are sick and tired of this kind of life and they're voting for parties that are commonly considered populist. i would say there is an element of populism, but also certainly an element of popularity, trying to listen to popular demands this is why these two parties will not change their approach even the elections will not give

a different outcome. it is important that europe comes to the realization that having a founding member in such a level of distress requires a collective effort to change. plenty coming up on the show you can get involved in the conversation as well a lot of big stories today @streetsignscnbc is the qutwitt handle. coming up, sergio moti claims consolidation in the banking system will be inevitable we'll talk with the vice president of the european banking federation in an exclusive interview nextre was s not necessarily wrapped with paper and bows, but gifts of kind deeds, hard work and cold toes. there's magic in the air, on this day, at this time. the world's very much alive

at 11:59.

welcome back you're watching "street signs. we saw markets weather a selloff in technology yesterday. a lot of this down to apple. you may recall recently that the tech company decided it would not update investors on unit numbers for its ix phoiphones w triggered more volatility in the company. we had a key supplier out overnight which lowered its guidance for the second quarter.

this company does not name its key supplier is apple, but investors know it supplies the lasers used by the iphone xr and xs from the camera which powers facial recognition so the lower guidance triggered fresh concerns about demand for some of the key iphones that apple has on the market. it wasn't just this supplier but other suppliers, too warning about guidance this has caused a reversal in the stock price of apple, down 32% for one of the suppliers let's look at how u.s. technology fared in the session yesterday. it was a downbeat day for a number of big technology names steeper falls by stock names, nvidia, 7.8% south twitter down 6%. and amazon falling 4.4%. questions being raised as to whether this tech selloff is just part of the market, a feature of the market where you have a lot of noise, heat coming

out of technology or whether it's part of an overall reversal for the bull market we're seeing on the u.s. stock market in recent times shares in goldman sachs fell over 7% amid mounting pressure over the 1 mddb scandal. goldman arranged three bond deals between 2012 and 2013 to fund that raising 6$6.5 billion to attract foreign investment. the bank also faces significant fines from a doj investigation into the scandal the tool which takes into account key economic data as well as the yield curve and the stock evaluations is at a rare 73% level, the highest since the

late 1960s and early 1970s on a different note, spain will make banks responsible for paying some mortgage stamp duties, reversing a haven't court decision that said home buyers should pay the tacks. an lurs alysts say this could ce spanish bank sector 6$640 millin a year let's get out to joumanna for more you were talking to an ecb board member about the outlook on monetary policy, but still challenges around consolidation european banks >> absolutely. joining me is the president of the spanish banking association to pick up on some of those topics talking about the volatility and the macro environment but also the pressures ahead for the banking sector as a whole in terms of consolidation let's talk about the spanish

banking sector we're coming on the back of the stress tests that were released last week. that showed the spanish banking system is a lot more resilient than it used to be >> absolutely. the restructuring we went through, we went from 45 banks to 12 banks more or less, the fact that we have a commercial based banking model that tends to be more resilient shows all of this is paying off. we came out pretty well in the european stress tests. >> do you think there will be more of an impetus for this consolidation drive because of rising costs and regulation, compliance with regulation, mandatory issuance, all of this is heading a headwind on spanish banks. there is thought that there is ample room for consolidation with spanish banks not just spanish banks, but european banks and banking in

general. consolidation helps to improve profitability. we have three headwinds that will push forward that even more we have regulation, a complex regulation so the size of the bank helps to deal with that we have, i would say, digital transformation, and the third one that is not yet included is sustainable finance. all these three elements push the greater size of the european banking sector generally speaking, which is, you know, compared to the u.s. banking sector, it is relatively small even the big banks >> banking union, is that still going to happen? is there hope that the banking union may happen within the eurozone is it just put on the back burner >> i think that we have made a lot of progress in terms of putting in place the banking union. we have the single supervisor, we have the board, we have case studies of how it's working in reality. i think a lot of progress has

been done. having said that, is it perfect? not at all we need to make further progress the type of protectionism that we've seen in some european member states. if it's not perfect, it's not worth it it's fine that we made a lot of progress, but in the next five years we have to complete it if we want what we want, which is finalizing the financial loop. >> do you think there's potential for countries within the eurozone to get together on this it seems like there are one or two nations that are specifically pushing back on this drive for further consolidation, or for the integration within the eurozone banking system >> i think that the european union has won great advantage, that is during crisis time we respond, we respond aggressively but for the same reasons, when

there's no pressure we tend to relax. that's a bit of the situation that we are now in i would say that going forward, there's an understanding that we need to go further the speed of that progress is what is being discussed. i think we need to understand also the reluctance of some countries given the political situation in some european countries to go faster so we have to understand we have to adjust this base. at the same time we can't forget what remains to be done. >> talking about changing political circumstances. in spain we had a changing government how has that impacted activities on the ground within the banking sector >> terms of politics they're a mainstream government in terms of complying with the european union objectives, targets. so it's like that. what we are observing is that the very fragmented political landscape we have in spain now compared to ten years ago, what is creating this is a lot of

volatility and uncertainty not so much because of the measures being taken but because of the noise being generated in these permanent political debates. if you have an increasing volatility, that affects the asset prices this is not positive i think generally it's pot ynot unique to spain. it's not too much what is happening, but what is being discussed creates this volatility and uncertainty >> one quick question for you. the decision from the supreme court to charge customers with the stamp duty payments, are you confident that decision will not be overruled in the future >> yes i think that that is very clear. some people say and talk about the european court of justice, we are talking about here tax matters. tax matters pertain to the member states. in particular this tax, stamp duty that is not european tax, it's a local tax in most countries that exists.

in the countries where it exists, it's paid by the client. i don't think this will change going forward. >> sir, we have to leave it there. >> thank you very much >> that was the president of the spanish banking association. karen, back to you >> thank you very much, joumanna a conversation on the key banks in europe which have not kept pace with the u.s. counter parts on profitabilities and payouts to shareholders. slightly firmer on wall street we had a spike in futures. that's all for today's show. i'm karen tso. for our european viewers, stay tuned for an interview with the european trade executive that cinyo'somg ur way next.

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here's your top five at 5:00 can we bounce back futures pointing to a jump at the open after yesterday's 600-point free fall on the dow don't say we dent tell you amazon set to name northern virginia along with new york city as the home for its h q2. california remains on high alert as a string of deadly wildfires tear through the state. crude oil down again now on its longest losing streak ever and the keebler elves evicted. kellogg looking to