. welcome to "street signs." i'm joumanna bercetche >> i'm willem marx these are your headlines europe joins the global selloff as trade fears return and a flattening u.s. yield curve stokes concern about an economic slowdown. banks and tech are among the biggest decliners mirroring the action seen in the u.s. session yesterday. auto stocks drop after german carmakers meet with president trump and his administration weighs new

tariffs on foreign vehicles and foreign auto parts. shirer provides a bligright spot for europe as shareholders of takeda secure a $46 billion takeover of the firm good morning, everybody. lots to get through. first i want to start off by bringing you pmi data out of euro we got the final pmi services number for november, that came in at 52.7 versus the 52.4 flash. a bit higher for the final number crucially still lower than the october number which came in at 53.1 again, just to reiterate, these are the lowest numbers since september of 2016. the final composite future output pmi has come in slightly

higher than the flash, 59.5 versus the october number of 60.5 that's a picture for the final pmi numbers out of europe being reviewed a little bit higher but still much lower than october. let's get in and talk about some of the broader market action we've had over the last couple of -- 24 hours or so let's start off by looking at the european heat map. as you can see, i'm almost blending into it completely today. very little stocks trading in the green. about 85% of the heat map is trading in the red we had a heavy selling day in u.s. markets the dow down more than 800 points its worst day -- well actually, just since october a lot of volatility in u.s. markets and concern about the future of the trade talks between the u.s. and china we'll get into more of that

shortly. the picture is one of risk off overnight. stoxx 600 is down almost 1%. we're only one hour into trading. let's get into individual indices and talk about the picture for some of the individual bourses i want to talk about the ftse. a lot of action yesterday in parliament when it comes to the brexit discussions the expectation again is that the vote will not pass the house of commons next week, but then the question is really what parliament will do on the back of that. yesterday's amendment does give more power back to the parliament some pundits in the market are saying perhaps this removes more of the possibility of a hard brexit or no-deal brexit because there is not parliamentary support for that for the ftse 100, a bit of weakness down 70 points german index down 0.8% cac 40 down a similar amount ftse mib, italian index

outperforming today on some positive signs out of the government, perhaps a little revision of their spending deficit target for next year is in sight germany export heavy is one of the underperforming indices. let's get into sectors you can see pretty much every single sector in europe is trading in the red it's not a pretty day. almost all the stocks are trading in the red at the bottom, construction and material, 1.5% some weakness translating into cyclical stocks there. insurance down 1.5%. technology took a beating yesterday in the u.s. session. we're seeing that play out in europe some chipmakers, asml, semidialog also getting hit. oil and gas a focus. we have an opec meeting coming up, interestingly spot prices have come off a bit this morning.

there was speculation that there may be a cut coming up in the next couple of days, now there's some talk that they may delay that decision. that has not helped the spot price. pretty red across the board. i want to go back and talk about what's happening in the fixed income space when you think about the moves yesterday in u.s. markets, the big catalyst was some of the technical damage going on in yields this is the picture for yields u.s. ten-year is trading around 2.92 we rallied about 8 or 9 basis points in yesterday's session. once the u.s. ten-year yield broke to 3%, a lot of short coming was taking place. we'll talk more about the u.s. fixed income the picture for europe, a fixed income rally on the back of what happened in the u.s., 25 basis points for the ten-year bunds. some analystssay if we break through 25, the next is 22 and

then 20, then we'll be back to the lows of next year. ten-year gilt as well, i was talking about the price action in the ftse 100. gilts today, the only fixed income instrument coming off yields are moving higher in the gilt market today, perhaps pricing in more optimism about what these latest amendments coming out of parliament mean for the future of brexit interesting that gilts are the one market coming off. 10-year btp is rallying. that's the picture for european fixed income let's talk about stocks in asia. they also closed lower after the plunge on wall street. nancy joins us from singapore. >> hi, joumanna bercetche. you were basically blending in with the european stocks there, i have the opposite issue today. i'm standing in stark contrast to the asian market wall not a spot of green on this

board behind me. after the moves we saw on wall street, that was very much in lined with the expectation we should note we did see steeper losses in the session pair back by the end of the day for key markets such as the nikkei 225 not altogether terrible considering the news we got on wall street. the nikkei 225 did close off yesterdayer by more than 2%. the kospi is off as well in the session. all those names that get pushed higher when there's foreign investors coming in, global momentum, those were on the down side, names like samsung in south korea. in hong kong the real laggard was the taixex a lot of oil names were on the decline. energy stocks, given what we've seen in oil prices today since you were talking about banks being under pressure,

banks were under pressure on wall street and they were, too, in the japanese market those stocks in japan tend to be quite sensetiitive to a move lo in yields. >> thank you for that. i want to go back and recap what happened in the u.s. session u.s. markets are closed today in memory of president bush i want to talk about some of the price action that happened in yesterday's market we saw a spike in volatility 800 points lower for the dow down 3% for the board. clean sweep. very, very heavy losses. a lot of volatility there in terms of the dow, caterpillar, boeing and apple had the most impact on that index back in october, again, we had what people were calling a shocktober, which saw s&p down 7% f.a.n.g.s lost market cap of about $1 trillion. some of these fears are coming back into the market we thought we were out with the

more dovish powell and the trade truce, then you did get this technical damage that's because of what happened in yields. let's talk about yields and price action going on there. there are two things going on. on one hand we had a big rally so yeels moved lower we saw technical damage especially when the ten-year broke through 3% 2.92 is the number here. very quick to get through those levels people were talking about gamma covering in the market, short covering many outstanding short positions. a lot of that was technical damage a lot of algos getting involved, computer programs. the other element is the fact that the curve has been flattening the two-year is trading higher than the three-year. typically that means the market

has serious concern about where growth is headed typically an inverted yield curve precedes a recession by 12 to 18 months that's the concern in the u.s. markets. people were looking at this curve flattening saying it's not a good thing for stocks. not a good thing for growth stocks that's why equity markets came off so aggressively. the other sector that got hit is the tech sector. let's talk about the f.a.n.g. action back in october f.a.n.g.s lost 1 $1 trillion in market cap. yesterday was another heavy day. amazon down 5.8% alphabet down 5% heavy for the nasdaq broke its worst perform man since october. we had another bad day for the nasdaq back in october the other sector that got hit, u.s. banks some of the smaller banks, regional banks have a much

higher beta. when the curve flattens this much, the banks that get hit the most are the smaller regional banks that rely on longer-term lending. here's some of the bigger banks. you can see big names, bank of america down 5.5%. goldman down 3.8%. morgan stanley down 5% the other index that i have not mentioned is the small bank index down more than 5%, its worst day since june really heavy losses as we head into the last couple weeks of trading. so much for the santa rally. >> thank you very much for that look to make sense of some of this, we're joined by the managing director at liver moomore partn. david, i'm asking you to look into the brains of your fellow market participants here briefly. based on conversations you're having, what the heck is going on over the last 24 hours?

>> i think it's a combination of things if you look back the last couple of weeks, we had a lot of angst in the market, where the s&p was getting hit hard then you had this sharp rally with the views of a fed that looks like it might have blinked and it is pausing. at the same time you had this talk of trade and -- between china and the u.s. that gave a view of optimism suddenly within a 24-hour period or less, we saw things change. >> what are the top concerns, is it the fact that there may not be a solution to this trade tension or a slowdown in economic growth? >> i think it's all of the above. i think the key to look at today is that there is still a lot of uncertainty in the markets today. at the same time you have global growth that is starting to really slow.

so you're at this crucial dynamic in the marketplace and the market is trying to figure out which way is up. >> doesn't the move yesterday speak to non-human players in this market? isn't this a lot of technical damage, algorithms hitting the button once twos and fives invert, the systems are programmed to start sending equities across the board? how much of yesterday's move is just technical factors and algorithms, computer programmers getting out of some of their positions? >> i think that plays a crucial part in today's market that's some of the issues i would say as far as an investor is concerned in reality you get both sides of that in the past ten days we had moves from the lows where the s&p gained 200 points. a lot of that was algorithm trading. >> in terms of when you're constructing your portfolio, i

know you pick individual stocks, we'll talk about that, how do you screen out the noise from days like this is there any way to protect yourself as an investor from the possibility of a day like this happening, the vix spiking up to 20, or do you have to embrace it, hang on to your positions and ride the storm >> for livermore, we're looking for specific opportunities again. in moments that there's high volatility, that creates opportunity. it's usually not opportunity that lasts 24 hours. it's opportunity over weeks, months, years. it creates a really good vacuum for an activist or an active mannima i manager looking for specific companies. the way to defend the market is really only in cash. >> makes sense david, stay with us. we'll talk more about your stock picks in a while

>> if you want to get involved and give us your views, tweet us at @streetsignscnbc. coming up, opec delegates arrive in vienna as oil prices move lower again will the world's oil producers agree to reduce output and will russia be on board we'll try to give you some of those answers after the break.

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welcome back to "street signs. takeda pharmaceutical won a $46 billion takeover bid for shire the shire board could approve the deal today if that happens it would be the largest overseas acquisition by a japanese company and takeda would become one of the top ten pharmaceutical firms deutsche bank shares hit another record low at the market open they traded down as far as 7.87 euros after a turbulent week for

the bank prosecutors raided the frankfurt headquarters over money laundering violations. let's switch gears we were talking about some moves in equity markets, i want to talk about some moves in energy markets ahead of the opec meeting. we're seeing weakness transfipie there as well. energy taking a beating on the back of analysts revisions, investor revisions for global growth economic outlook over the next year that would impact global demand. that's the picture for crude, down about 1%. wti also down a similar amount, trading at $53 a barrel. a bit of weakness again. and energy markets have not been immune to some disruption that's happened in equities switching on, let's talk briefly about some individual names. no surprise there that some of

the big majors, the big companies we look at are all trading in the red bp down 1.3% shell down 1.7%. rep s repsol down 1.47%. opec and its allies face increased pressure to cut oil output yesterday four sources reported that the output production could be cut by 1.4 million barrels a day. delegates have already started to arrive ahead of the meeting hadley gamble is on site as well have authorities in moscow made any comments about that potential reduction? other than the comments from mr. putin himself, not really. all eyes are on this powwow between the russian energy

minister and his saudi counterpart. they're expected to set a number and discuss, of course who will be making those cuts, will be 1.3 million barrels per day, will it be more? all of this against a back drop that has become increasingly political for saudi arabia over the last several days and over the last 24 hours. hearing a lot of noise from capitol hill, senators privy to this cia report considering the death and murder of jamal khashoggi, saying they see a direct link between mohammed bin salman and his death let's listen to what lindsey graham had to say yesterday. >> you have to be willfully blind not to come to the conclusion that this was organized under the command of mbs, and reports show that he was focusing on mr. khashoggi

for a very long time there's zero chance that this happened in such an organized fashion without the crown prince >> in the oil markets nothing happening here in a vacuum a lot of politics going on here behind the scenes. so much pressure from the united states on opec and its allies to keep prices lower, at the same time you hear this noise from capitol hill concerning saudi arabia's leadership. you also have to remember there are politics going on within opec as well a lot of concerns of opec members and this russia/saudi relationship has gotten too close. and facthe fact that qatar no longer wants to be a member of this group lots of questions about opec, and today it will all be about whether the russians and saudis will come to an agreement and what that agreement will look like >> hadley, thank you very much

we look forward to your coverage there. we're still joined by david. if you tune out the political conversations that hadley was referring to there, if you look at the energy sector as an investor, where do you see potential upside and why >> yes, at livermore we're still focusing on specific companies within energy we've been bullish on brent we've been tied to brent we like some real small cap companies, international explorers that are free cash flow generating. that's where we see over the next few years still the place to be. >> branching that out, i see in the commodity space you have exposure to gold based on what we were just discussing, the market disruption, the volatility, wouldn't you think that gold in spot price terms would have more of a bid from this flight to

quali quality, the weakness of the dollar, the disruption in stock markets than what we got overnight? gold has not been enjoying much of a rally as of late despite these concerns >> yeah. i think that's a bit of a conundrum still for the market in the past year or two. a lot of that plays into the fact that gold will do well when the dollar is weak the dollar has been strong the past few years that's been some of the issue. plus em markets are tied to gold and demand as em markets have been falling, that's weakness for gold demand. the shift there and why we like specific companies within the gold sector is that the dynamics are lining up where the fed is pausingand the view with the inverted yield curve suggests that gold will be a safe haven in years to come as balance sheets of the fed and global central banks are stressed, they're going to need to figure out a way to reignite global growth with that, you know, gold becomes the place to be.

>> looking at your two picks, your gold and your energy exposure, a lot of that will be a function of what happens at the u.s. dollar next year. >> that is true. like you're seeing the yield curve inverting is looking at the objective that the fed may have been overshooting or may have overshot, and with that yields may fall in years to come >> one broader question on the energy sector, i'm sure many people are looking at this saying perhaps now is the time to start thinking about investing in the energy sector again. how are you differentiating between some of the blue chip, the larger cap companies versus the small, idiosyncratic opportunities there? >> we like the smaller cap space because they tend to be underfollowed, underresearched and underinvested in so jigstone energy which we are on the board of and have a 7% stake in that company, it's a

free cash flowing company with little debt. dna international, an explore, we like them even a bp or a shell, you're looking at yield and good free cash flow generation if brent stays in that range of 60 to 70, those are the places to be. is there anything you're seeing from the u.s. economic data that leads to this investor concern seeing things like the yield inversion? what is going on in the data making people concerned about the future of the u.s. economy >> i don't see it today per se i think the key is what the market is telling you, the market is a discounting mechanism. the market is telling you not so much about 2017 or 2018, they're talking about 2019, 2020 what are the drivers to growth, are the consumers going to be stretched? are interest rates going up? is the cost of capital rising?

those things are taking hold you have to focus on that from an investing standpoint. >> david, thank you very much for your time this morning also coming up, the french government bows in the face of massive protests against rising fuel prices. and also join us tomorrow as we hear from italy's finance minister, giovanni tria.

♪ lean on me, when you're not strong ♪ ♪ and i'll be your friend ♪ ♪ i'll help you carry on ♪ ♪ lean on me.

welcome back to "street signs. i'm willem marx. >> i'm joumanna bercetche. these are your headlines europe joins the global selloff as trade fears return and a flattening u.s. yield curve stokes concern about an economic slowdown. banks and tech are among the biggest decliners mirroring the action seen in the u.s. session yesterday. auto stocks drop after german carmakers meet with president trump as his administration weighs new tariffs on foreign vehicles and foreign auto parts.

shirer provides a bright spot for europe as shareholders of takeda secure a $46 billion pound takeover of the firm we had the european services pmi numbers a half hour ago. we just got the uk pmi services numbers. big drop there 50.4, versus 52.5. this is the weakest since july of 2016. more bad numbers the sector came in at 51 versus october's level of 52.2. we are not seeing that much of a reaction in sterling yet

it's still trading around the 1.2730 mark. let's check the price action in the last couple of sessions the dollar has weakened a tad. that's transpired versus other currency pairs we're seeing that in cable this morning. despite this slightly weaker services pmi numbers euro is trading softer i have to say in terms of currency exposure, it's interesting there has not been as much volatility in this space as we've seen in equity markets and fixed income markets the story is happening in other asset classes, even though the dollar is on the back foot let's switch on and talk about what has been happening in equity markets it's a weak day across the board for european bourses ftse 100 down 80 points. more than 1% already weak data is not helping the political backdrop as well xetra dax and cac 40 earlier we were talking about the french government and

actually giving in to some demands from the yellow vest we are seeing an impact on this index. not immune to some of the price action happening overnight ftse mib, the relative out-performer, down 0.2% let's talk about fixed income and what's happening in that space. a lot of scrutiny from the investor community on fixed income and the flattening of the yield curve we had in the u.s. ten-year yields broke through 3% got to 2.92. twos and fives flattened, threes and fives flattened. even two-year and three-year slightly inverted. typically what happens is the yield curve tends to be a good indicator of recession so people are looking at that. i would just argue that perhaps some of this is technical damage let's not forget that the central bank community have injected a lot of liquidity into the system, which is distorting the way we look at the yield curves european fixed income also

catching a bid ten-year buns around 26 basis points watch technical levels there some people saying if we break through 22, we'll get to 20. gilts, ten-year gilts are the only fixed income coming off today. up 1.32. so perhaps a bit of a relief selloff there. that's the picture for the fixed income market. of course we have been very much focused on what that means for overall equities and equities are pricing into that. this is a picture of the yield cuf curve across the board a lot of scrutiny then in the differential between two-year, ten-year, twos fives, twos and threes economic slowdown may have rattled markets. but the ceo of wells fargo and bank of america told cnbc that the u.s. economy actually is still performing well.

>> i was a history major in college. i believe in history i believe in cycles. we've been in a long economic recovery it's been a little bit more muted than prior economic recoveries that may mean it's going to last a bit longer but i think we need to be very wary of the fact that at some point we're going to have a cycle what we see today in the economy, what we're seeing from our customers is generally a positive and so we're not overly concerned. >> if the reason rates are going up because the economy is growing, that's a good thing expectation, a few rate rises next year, great debate how fast or slow. watch the fed, they're data dependent. they told you that the reality is the underlying economy is growing risk for inflation is not high, inflation is growing wage growth is stronger, unemployment you expect normalization in the rate path, normally move is up 3, 3.25.

here are the stocks under the microsoft, the european carmakers. some of the top executives of these companies meeting with executives in the white house over the last 24 hours u.s. officials pushing to meet directly with company executives rather than dealing with the european commission when it comes to avoiding potential tariffs on some of these company's products bmw and daimler both bouncing back after significant losses earlier yesterday. looking across the board, it's a negative picture for some of these equities with ferrari and fiat chrysler down 1%. while we're talking about trade, let's talk about president trump. he's threatened to impose more

tariffs on china if washington and beijing can't reach a real deal in a series of tweets trump seemed optimistic that his administration could reach an agreement, but he labeled himself a tariff man but warned he would restart the trade war if talks fall apart. chinese authorities said they are confident about a deal with the u.s the commerce ministry said bilat wa -- bilateral talks were successful president xi jinping says he wants to deepen cooperation with the european union on a visit to portugal he said he hoped the hart geportuguese d benefit from the belt and road initiative that is a central pillar of china's foreign policy and growth strategy. >> as china prepares to once

more ramp up imports of u.s. agricultural goods, investors can expect fresh tweaks to global trade traffic the sector's own index has seen its highest average year-to-date performance since 2011 someone who follows that closely is john who joins us here. essentially it seems to me your industry will benefit from what's happened over in buenos aires the last 48, 72 hours. is that the case >> i think it is what you have to keep in perspective is the tariff situation has affected 2% of dry bulk shipping. what people are focused on is that u.s. soybean trade, soybean going to china china is buying more out of brazil so we've been shipping more soybeans on our ships from brazil to china. if the u.s. comes back in january, that's going to be a

benefit. what's interesting is world trade in general has been very strong so even in the atlantic basin we have still seen a lot of scrap steel, a lot brazilian soybeans. all of those trade flows have been strong a strong cement trade. these are leading indicators and we see it first before anyone else >> if you look at all the numbers, you look at china export numbers, german export numbers, even the u.s. deficit, all of that shows that trading -- the trading activity from the exporter slide is beginning to slow significantly. why is that not translated into shipping >> look at our three largest commodi commodities, it's iron ore it's been growing this year and it will again in 2019 and 2020 we've seen growth in the coal

trades, not just in china but going from the u.s. to india, particularly to support their steel industry which has been growing. on the grain side continued increased flows. the thing about dry bulk shipping, we have good visibility for the next two years in terms of the supply side or the number of ships delivered. we are only expecting 2% to 3% growth on the supply side. you only need a 3% to 4% demand growth in terms of commodities to continue the recovery that started in 2017. >> i want to go back to the u.s./china relationship when it comes to trade if you're a soybean farmer in iowa, you may have had a tough few months, but you're saying your industry had new routes open up. you've been shipping from one place to another place instead of >> exactly right this is centered around the soybean trade. we shipped more out of brazil over a longer season than what we have seen in years past

now going forward, the most important thing, brazil is planting more. argentina probably won't have a drought this year, so you will see more soybeans flowing out of those areas. that's a longer ton mile trade for us so it is better. >> so that's all dry bulk, what about wet bulk we have this important opec meeting coming up. i'm curious what's going on in tanker space as we head into this oil meeting and on the back of iran sanctions. have you detected a change of direction in terms of where these oil tankers are headed based on the political developments >> to be honest with you, we do not ship oil we're only shipping dry bulk goods. from a day-to-day basis, that's not something that i focus on. though having said that one of the biggest discussion items now is the imo 2020 program and the changeover for fuel for all ships. where the sulfur content in terms of what we're able to fuel

our ships with is coming down from 3.5% all the way down to 0.5% that's a pretty significant change in the industry >> in terms of demand, of course, for that type of energy as well. >> yes in terms of that type of product. >> john, thank you very much for joining us today >> now the french government is suspending plans to hike fuel taxes for at least six months. the move comes after paris this weekend saw some of the most violent protests in over a decade the decision marks the first major u-turn of emanuel macron's presidency as his approval rating hits another all-time low. announcing the move, the president said no tax is worth jeopardizing the unity of the nation he said the government would look at ways to help the working poor and rural population who rely on vehicles >> translator: having listened

to the demands expressed by all parties during these moeetings, i'm suspending these tax measurements for six months. we want within this time frame to identify and implement fair and effective support measures if we can't agree on them, we will deal with consequences. coming up, uk prime minister theresa may suffers an embarrassing defeat in parliament, actually three of them as lawmakers debate ahead of the crucial brexit vote next week we'll get a view from peter mandelson next

♪ lean on me, when you're not strong ♪ ♪ and i'll be your friend ♪ ♪ i'll help you carry on ♪ ♪ lean on me.

welcome back to "street signs. giuseppe conte says his government is ready to reduce the impact of some economic measures in the 2019 budget but insisted that a decision to make small changes would not mean the government had backtracked on

reforms. the eu budget commissioner says he hopes to get italy's amended draft budget later today he told a german radiotation th - radio station that the levels of debt were dangerous. and tbritish mps voted to hold members in contempt of parliament, then lawmakers agreed to give a greater say in the process if theresa may's deal is voted down >> don't let anyone here think that there's a better deal to be won by shouting louder don't imagine that if we vote this down a different deal will appear the alternative is uncertainty and risk the risk that brexit could be stopped. the risk we could crash out with

no deal. and the only certainty would be uncertainty. bad for our economy and bad for our standing in the world. that's not in the national interest >> opposition labor leader germager jeremy corbyn responded. >> the deal on the table could make us worse off. taken together with a withdrawal agreement and the future partnership they represent a huge and damaging failure for britain. the prime minister says this is a good deal. she is so confident of that that she attempted to refuse to publish the government's legal advice she was force the d to publish y votes in this house today. assessments indicate this is actually a bad deal. >> geoff cutmore joins us live from italy i believe you may have a guest with you who with shed more light on what will happen with

the uk government over the next couple of weeks. >> yes, i will do that in just a moment i wanted to play you another little bit of sound. we spoke with enrique leta, i want to play a clip of the former italian prime minister, and he thinks things have been robust let's listen to what he had to say. >> we have to consider that european union showed a great resilience this year in the final part of the year on two subjects one was italy. the second one is uk on these two subjects, the eurozone and the european union, it showed the fact that it's more resilient that we can imagine from abroad. the big problem is we have to push competitiveness we have to have reforms at

european level, strengthening the euro area tools. last night we had some small steps, results in the euro group, but the direction is the direction of how to strengthen competitiveness tools and how to have a european union with really effective tools to push for competitiveness. >> the former italian prime minister there let's get to a former uk cabinet minister, former eu trade commissioner, now chairman of global counsel, lord peter mandelson. thank you for joining us can i ask, the votes that we saw in the house of commons, clearly they have now made theresa may's life more difficult. we'll get publication of the legal opinion. we also see parliament stepping

in and getting more involved in the process. in terms of the math, do you think this makes it more unlikely that theresa may can get her bill passed and does it bring the prospect of fresh general elections in the uk closer >> i think the vote in the house of commons yesterday indicates that mrs. may is heading for a serious defeat when she takes her brexit deal to the house of commons next tuesday i personally don't regret that i think it's a rotten deal the one thing that leavers and remainers are united on is that the british government has taken a disastrous approach to this negotiation. they demonstrated stunning naivety. they thought if they just huffed and puffed enough the whole european house would fall down

and we could carry off anything that we wanted as we left the european union of course the opposite has been the case the european union displayed strength, university, great decisiveness it is britain that's been seen off, not the european union, exactly as many of us warned would be the case if the government approached this negotiation in the way that they did. >> so you find yourself in the company of mervin king, the former bank of england governor, who has effectively described this as an appeasement deal? >> i do share his view that the deal is completely unacceptable. it's completely inappropriate for a country and an economy of britain's size and standing. i don't -- as it happens, mervin king was the governor of the bank of england and in some peoples view slightly asleep at the wheel when the global

financial crisis and the banking crisis occurred ten years ago, i don't think he's in a great position to be lecturing his success as governor. but the point is simply this what we have discovered after two years of this negotiation is that britain cannot leave the european union and its trade in europe and at the same time take control of its borders, its money and it's law it was always going to be the case, as many of us pointed out, that if we put trade first, vital for our economy and for jobs and livelihoods in britain, we would have to continue to follow europe peep rulan rules,t is the point of leaving the european union because as a result we don't have a say or

vote in those rules. there's something absolutely contco contradictory and rotten at the heart of this here's my criticism of theresa may and her government, they never tried to inform or educate the british public about these choices, about the tradeoffs you have to make in leaving the european union. they always pretended that we could have our cake and eat it they always pretended that we could go into a negotiation with these absolute red lines and then somehow come out with everything we wanted it was always nonsense from the beginning. in my view it's the height of political irresponsibility to allow the british people to be led around and around the garden in this way only at the 11th hour to discover that what they were promised and led to expect is simply impossible to achieve. >> the ecj is likely to follow

up on the suggestion that article 50 could be effectively revoked, and britain could fall back into its previous status as a full member. do you think that that is likely at this point and how does that change again the likely encase scenario here? we were talking about the potential for another referendum, or the possibility of a hard brexit if there was no agreement. this now throws another counter on the table >> i think what the votes in the house of commons have shown so far, next week's will confirm further, is that there is no majority in parliament, either for a hard brexit deal, one that really pays an enormous colossal economic price in leaving, nor is there a parliamentary majority for no deal those are off the table now in my view.

that leaves us with two other options in effect. >> very briefly. >> one is to get the softest brexit we can lay our hands on, but leaving us without a say in the rules, or taking it back to the people to help us dig ourselves out of the hole that we have got ourselves inves into >> let me send it back to you guys in the studio >> excellent the prime minister's brexit deal may not be getting much love in parliament but several analysts say the groemt suagreement suit parties involved to see why, head to cnbc.com >> i'm joumanna bercetche. >> i'm willem marx u.s. markets are closed for the funeral of former president george h.w. bush place, the xfinity xfi gateway.

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breaking market news. a major wall street selloff goes global it is a sea of red from asia to europe u.s. markets are closed today as the nation mourns the passing of president george h.w. bush we will have full coverage of that global slide. it is wednesday, december 5th, "worldwide exchange" begins right now. ♪ good morning i'm dominic