razak. .. an exit that is not negotiated with a backstop? >> no, a brexit has more chance of running if she can get an olive branch from brussels as well at some stage before the summit and before january 21st, her own self-imposed deadline. i'm just chucking this out as one scenario >> her leadership challenge doesn't change any of that, does it it doesn't heal brexit >> this is a no-confidence vote. the leadership chance would

take -- if she loses this, there will be no leadership challenge. that's it. she's gone >> christian, come back in you sat her and listened to theresa may speak what were your impressions? >> she's going to fight. she's not stepping down. that's something about her character that we learned that is very important. she will not step down and play politics she's going to fight it. you know, from everything that i hear today, it may well be that she wins the vote tonight, though it is a secret ballot of course everybody will be today rallying their troops. the ultimate problem for those starting this challenge is if there is a leadership challenge, it goes to the party that adds a degree of uncertainty. >> if she loses this, do the majority of conservative mps want mr. johnson as prime minister or mr. corbyn prime minister

that's how she clearly painted that with the latter scenario being painted there. so she's clearly making this distinction as her adviser would have told her between herself and a harder brexiteer in negotiations or mr. corbyn both of those. many conservative mps are unpalatable. >> our greatest strengths is our state of weakness and the complexity of the job she has to do as i said, there's no credible contender who stood up with a plan so many people will think carefully about this one tonight. they'll say what is the alternative we're facing she's rightly fighting this one in her speech earlier. if i may, i would like to add another point on the markets ten years ago when we were all sitting here, the big uncertainty we were faced with

was banks, central banks and what they were going to do in today's market, the big uncertainty we have around the world is government. what is mr. trump tweeting what is the deal that the uk will get with europe how the trade war between china and the u.s. will pan out. so we have to factor in for the years to come very different approaches from a macro standpoint then we have to decide how we position ourself from a macro edge almost, and then coming back to stocks, then which stories, companies, leaders, business leaders we buy into this is creating a very, very different market for all of us and advocating some kind of combination of macro and micro bottom up and top down

approach >> let's get out to willem who is down in westminster you would have heard his voice booming out with a question there to sir graham brady. just wrap it up for us where do we need to be focused in terms of who will vote against her and what likely contenders may emerge before the woodwork before this process runs its course. >> there will be a lot of people inside the parliamentary conservative party deciding over the next few hours whether they are in that camp of 115 mps who did not feel strongly about this issue that they would not submit a letter of no-confidence but see there is a need for leadership change. 115 is the difference between the 48, those who already submitted letters to trigger this process and the simple majority of the parliamentary members of the conservative

party required in order for theresa may to be demoted from leader of the conservative party. this does not mean she's suddenly out of a job as prime minister this process could continue for some time. it's only if there's a majority of votes against her within the conservative mps ranks that you would have other people coming out of the woodwork as potential challengers to her role as prime minister that process could go on for quite some time. only when that is whittled down to a field of two will that be sent out to members to vote via postal ballot. once those votes come back, probably well into the new year, at that point would we see a new prime minister being reinstated. willem, thank you very much for that i know you're staying there. we'll see you shortly on "street signs. willem will have more analysis shortly. christian, we have to say good-bye

christian shultz from citi research thank you for keeping us company here >> thank you >> that's it for "squawk box." more reaction on "street signs." plaque psoriasis can be relentless. tremfya® is for adults with moderate to severe plaque psoriasis. with tremfya®, you can get clearer. and stay clearer. in fact, most patients who saw 90% clearer skin at 28 weeks stayed clearer through 48 weeks. tremfya® works better than humira® at providing clearer skin, and more patients were symptom free with tremfya®. tremfya® may lower your ability to fight infections and may increase your risk of infections. before treatment, your doctor should check you for infections and tuberculosis. tell your doctor if you have an infection or have symptoms such as: fever, sweats, chills, muscle aches or cough. before starting tremfya® tell your doctor if you plan to or have recently received a vaccine. ask your doctor about tremfya®.

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welcome to "street signs." i'm joumanna bercetche >> i'll julianna tatelbaum >> westminster in crisis theresa may says she will stay in london to fight the vote of no-confidence in her leadership set to take place tonight. >> i will contest that vote with everything i've got. a change of leadership in the conservative party now will put our country's future at risk and create uncertainty when we can least afford it. >> but leading back bench mp graham brady says he will remain strictly neutral on the leadership challenge ahead of the vote >> i'm here to run a process in a scrupulous way as i can. certainly i think it's

beneficial to resolve this matter as quickly and smoothly as possible. >> sterling jumps and the ten-year uk gilt hits a high as may says she will contest the vote with everything she has >> the ftse rises despite the political chaos as stocks across europe sit firmly in the green >> the new leader wouldn't have time to negotiate a withdrawal agreement and get legislation through parliament by the 29th of march one of their first acts would have to be extending or rescinding article 50, delaying or stopping brexit when people want us to get on with it. >> theresa may once again defiant, vowing to contest a no-confidence vote and to continue to serve the national interest by delivering brexit. this after the 1922 committee

has announced it has the votes to call a vote of no-confidence in the uk prime minister the ballot will be held today between 6:00 and 8:00 p.m. gmt just a quick look at the reaction in sterling we've seen it bounce a bit since the news 1.25 is the soft floor there now trading up at 1.2540 after this news and after key heavyweights when her cabinet came out in support of the prime minister, including germany hunt, michael govan. we did see a bounce in sterling after that >> in terms of the ftse 100, we're seeing a bounce in the stock market the ftse 100 is up about 65 basis points normally when we see sterling strength, this is taken as a negative for those dollar earners. we are seeing today overall the index is higher. the best performer is hsbc very diverse earnings there. it is a green picture for uk

stocks >> willem joins us live from outside westminster. silvia is in brussels. willem, the moment is finally here we've been speculate being a potential leadership challenge for 18 months. they finally got the 48 letters. two questions for you. one, the fact it took so long to get to the 48 hurdle s that a positive sign? second, we have heard from some this morning saying that they're going to support the prime minister for her, it is looking pretty good >> first question, the fact that we've taken this long in your words to get to this point doesn't necessarily indicate anything other than the fact that there's such a little amount of unity inside the parliamentary party of the conservatives in the uk. it could be certain factions wanted to try to oust theresa may at a certain point for certain reasons, now those

reasons are different for other members of the party in terms of the -- the important number to stress for today's vote is 115. that's the difference between the 48 who have already made it clear they're not happy with the situation, and the further number of 159, which would represent a majority of conservative mps willing to vote against the prime minister that's the number that's important to look at to see whether there is going to be a significant shift in the future of the british policy on brexit. in terms of the ministerial support that you outlined, people like jeremy hunt coming forward saying they back the prime minister 100%, that is often the case when it comes to leadership contests, if she's defeated they'll throw themselves behind another potential candidate. >> all of this is coming at a crucial time creating more uncertainty, when businesses, companies, investors, politic n

politicians need certainty on the path forward theresa may herself said it is creating uncertainty at a time when we can least afford it. what are the implications on the deal if she leadership contest goes through and she survives given that a big chunk of her own party are clearly against her. doesn't that lessen the odds of the deal going through further >> if she survives this challenge tonight by winning a simple majority of mps in the house of commons behind me, she can maintain the position of prime minister for 1 mon2 month as long as she wishes. there cannot be another leadership challenge to her position for 12 months that in some ways will strengthen her position. because the conservatives who may have voted against this deal won't see another option because there won't be another option as leader in terms of the meaningful vote happening, early this week she

indicated it could take as long as january 21st which is the deadline for that meaningful vote to happen it could be that this process, if she loses the leadership would drag on beyond that. we have to wait for conservative members to vote on a new leader via postal ballot, and sir graham brady, the man responsible for this process, says he can't be exact when it comes to timings but this could drag on for weeks. >> willem, can you walk us through the technicalities of what would happen if she loses the leadership vote today? what are the options ahead >> according to the constitutional law, she stays as prime minister until there is a new leader of the actual conservative party in terms of the process, once she has been ousted, if she is ousted by losing that simple majority vote this evening, any number of conservative mps can put their names into the hat, into the ring to say they would

like to run for the leadership contest. at that point, you will have a series of secret ballots of conservative parliamentary members who would decide who they would like to vote for. at each round of those secret ballots the person that receives the least number of votes will get taken off that list, until there is just two candidates left at that point the 1922 committee passes us out to the national vote and all conservative party members a s memb members, a much, much larger number would vote via postal ballot at that point, the person of those two who receives the most votes would become the new prime minister of the unitedwillem, t for that let's get out to brussels and silvia over the last 24 hours theresa may has been making the rounds

she met with the dutch prime minister yesterday, she met with chancellor merkel. what does this mean for the eu and her stance in negotiations >> we heard from the president of the european council, donald dusk saying the eu 27 want to help theresa may, but the question is how. that's the question we all have. how is the eu 27 going to help theresa may when they said the deal will not be reopened. the backstop will remain the same we've heard the latest developments from london on the ground here there's been no reaction as of yet. there may be some comments around lunch time. at 12:00, that's when the european commission has its daily briefing the feeling here in brussels is they want to get on. they want to move on with the brexit process i fear, i suspect, i should say, that the official line later

today will be that what's happening in the uk is a matter for uk politicians to resolve and this side is willing to help the current prime minister of course let's wait for that critical vote later this evening to see whether or not the prime minister, theresa may, will be coming back to brussels tomorrow for the brexit summit. >> the other big question that people are asking is what this means for the timing of article 50 there seems to be disparity yet again between what the uk think can happen and what europeans are willing to offer can you spell out what the european stance is on postponing article 50, that march 29th deadline and is this one of the situations where they would consider it given that there's a leadership challenge taking place? >> well, the possibility of extending article 50 is on the table. it's legally possible. but it would require a unanimous

decision by the u27. they could actually agree to that they could actually say, okay, let's extend the article 50 negotiations but let's not forget we have european elections in may. so it's unlikely that the europeans would allow an extension that would go beyond that then we would have either issues such as will uk lawmakers also be part of the new european parliament there's a number of questions that would emerge. so extending article 50 beyond may seems unlikely. >> all right thank you. we will link back out to you shortly. thank you for the latest from brussels joining us on the show now is daniel dansix given what you just learned over

the last half hour or so, is it materially changing the way you're thinking about the trajectory of the currency from here onwards or are you just deciding to stay out because there's too many moving parts? >> i think what we've seen so far this morning has not really been that much of a surprise theresa may polled the vote. that showed she didn't have as much control as people thought the fact we have a no confidence vote is not shocking, but we have to look at this longer term the whole brexit negotiation will take time whether her version passes, which still means a lot of unknown, and a leadership challenge would also mean a lot of unknown for a period of time. so quite a lot is in flux. >> we've been hearing from market participants and politicians and business leaders that the up certainty is the big

drag here. isn't there the risk that that is short-termist in terms of being a driver of what happens now if we have uncertainty for the next several months? in the grand scheme of things, this is debating on what would happen to the fate of a nation >> we need to look much longer term whatever we proceed with with this brexit negotiation, this will take years to sort out. this is not going to be sorted out by the end of march. we have the details of how we'll move forward i think the unknowns, people want to know when they invest what regime are they investing in until we have more clarity on that, that will be difficult as soon as we know what the rails are, we have a vague idea of where we're going, people can deal with some uncertainty as long as they know the direction of travel. >> the bank of england published a report spelling out what would happen to the uk economy under various scenarios.

even under the soft brexit scenario, under the proposal that theresa may has come back with, they still growing at less than it would have than if the uk stayed in the eu when you think of investment, does that not make you think irrespective of what happens, investments will grow slower and the uk will not be growing as fast at a potential as in the past >> we could look at what would have been if we stayed in, where we are if we leave we are leaving, at least at the moment that's where it is. that's how you have to make investment decisions there are good investments the currency longer term is probably undervalued could we have a big drop if there's a no-deal brexit absolutely and gilt yields could decline significantly if we see a no-deal brexit >> if we broaden this

conversation out slightly, the uk, france, germany have all sort of long been viewed as the safe havens within the european bond space now if i look at all three of those countries, they're all facing political crises of their own that have come to light in a big way the last couple of weeks. where are the safe havens in europe >> i think germany is the ultimate safe haven. the fact that merkel said she is stepping down from the party we have a new leader of her party. that will take time. but this is an orderly transition this is normal what you would expect to happen france on the other hand, we think they probably have more challenges i think the latest developments there will see an increase in spending by the government the budget deficit will be higher we'll see weaker credit than what some people give them credit for i don't think france and germany should be in the same kind of group. i think it should be more france and spain.

>> we have seen material under-performance in french bonds over the last couple of weeks or so, compared to austria, which is getting hit. when you think about the narrative for europe going forwards, not just with the uk leaving -- potentially leaving -- actually leaving, who knows, but also pressures coming from italy, the ongoing budget discussions, now we have fiscal slippage out of france who will be the stalwart for fiscal ostausterity, does it ext >> fiscal austerity in europe doesn't now exist. except germany >> germany are undergoing a fiscal easing for 2019 >> ever so slight. but their budget deficit can't run above a 3% budget deficit, only a slight budget deficit that's why you are seeing fewer

and fewer bunds. but the rest of europe will see an easing of fiscal deficits >> how do you play that? i should only own bunds even if it's only 25 basis points here, and sell everything else is that how you play it? >> we look at the reward versus the risk we have a fairly large position in italy we've been positive on italy we think there will be a negotiation on the budget. they'll bring it down to something both sides probably are not happy with we can talk more about that. what's happening in the italian polls, how the center right is growing. five star is declining and lega is staying firm. that could be a positive for italian bonds. >> convergence trade then. >> joumanna and i were talking about this before the show, how you think italian bonds are

poised to benefit from what you're expecting from the five-star movement can you outline more for viewers what you expect on that front? are you buying italian bonds here >> we do have italian bonds in our portfolio. we'll probably continue to hold them and look to buy more. we're seeing if you look at the polls, when the election happened back in march, five-star and lega had 50% of the vote now lega has done well the center right is doing better five-star is in decline. if we were to have an election, that would probably be positive because you would get a different government you would get le fwshga with a r right, which is a more fiscally responsible way of managing the country. >> it's interesting from a markets perspective that people are assuming that a righter government would be more bond friendly than what we have at the moment

david, thank you very much for joining us on this important day for the uk david szahn. inditex shares are set for their worst day since 2009 the spanish clothing giant reported a net profit of 2.4 billion euros over the last nine months but the group is maintaining sales and margin guidance for the rest of the year citing the benefits of expanding its online sales offerings. and sainsbury's and asda say they will appeal for more time for an investigation into a 15 billion pound merger between the two supermarket chains the current schedule for the tieup does not give them enough time to answer questions raised by the uk competition watchdogs. google on the hill find out why the search giant may be not ruling out a return to china

that's after the break stay with us

. welcome back to "street signs. i'm jewulianna tatelbaum. >> i'm joumanna bercetche. these are your headlines >> westminster in crisis theresa may says she will stay in london to fight the vote of no-confidence in her leadership set to take place tonight. >> i will contest that vote with everything i've got. a change of leadership in the conservative party now will put our country's future at risk and create uncertainty when we can least afford it. conservative mp graham brady says he will remain neutral on the leadership challenge ahead of the vote. >> i'm here to run a process in a scrupulous way as i can. certainly i think it's beneficial to resolve this matter as quickly and smoothly as possible. >> sterling jumps and the ten-year uk gilt hits a high as

may says she will contest the vote with everything she has >> the ftse rises despite the political chaos as stocks across europe sit firmly in the green >> european stocks this morning are building on yesterday's gains which saw the stoxx 600 end about 1.5% higher. here this morning the stoxx 600 is about 90 basis points higher so far this follows another wild roller coaster session stateside which saw negative and positive swings across all three major indices ultimately they ended the day little changed a couple of developments yesterday, we had china come out and offer to cut tariffs on u.s. auto imports from 40% to 50% offering the first concrete signs of tensions cooling between the u.s. and china now here today in europe the main story, the one that all investors are watching is

brexit as we will see shortly, so far the markets are reacting positively to this news. we have green across the board france is seeing the biggest gains, up 1.4% france has been in focus this week on the back of president macron's concessions to protesters raising questions around his political fate and how much of his agenda he can push forward so far french stocks reacting well today the ftse 100 off about 0.77% we have heard from ministers and strong voices within the uk government today who are backing theresa may. as we head into that no confidence vote later today, we are seeing markets react well to this news. we can't talk about brexit without talking about the

forexmfore forex markets and sterling sterling has jumped on this move it's unclear if that's reflective on a real change in fundamental view or short covering given positions we've seen on monday when the news came out that they would be delaying the parliament vote we saw the pound drop 1.5% on that day. we saw a plunge earlier. still hovering around the 1.25 mark, even though we are seeing gains this morning let's look at these u.s. futures and see how the markets are shaping up after yesterday's roller coaster ride. it's a positive start to trade all three majorindices indicating higher. the dow jones indicating a 200-point jump the big story yesterday was this progress on u.s./china trade tensions uk prime minister theresa

may struck a defiant tone after the conservative party's 1922 committee announced it has the numbers to call a vote of no-confidence. may vowed to contest the ballot saying a leadership battle could lead to a weaker government. >> weeks of tearing ourselves apart will only create more division just as we should be standing together to serve our country. none of that would be in the national interest. the only people whose interests would be served are jeremy corbyn and john mcdonald >> willem is outside westminster. i believe you had a few moments with graham brady who chairs that 1922 committee. >> i asked him what he said to that comment from theresa may. the idea that this internal division would only be beneficial for the likes of jeremy corbyn. he had this repeated message he's been saying all morning to

broadcasters, it's not for him to comment on these kinds of political implications >> it's not for me to criticize colleagues who have reached a particular conclusion either in triggering this process or make a judgment on how colleagues vote it's my duty to run a fair, straightforward and demonstrably scrupulous process >> also joined this morning by the head of the einstitute of economic affairs thank you for joining us i will ask you for instant analysis here what does a leadership contest mean for britain's approach to the brexit process and what does that, in turn, imply might happen down the road in terms of the economy? >> it's obviously not the ideal time but the only outcome that i can see if she loses the vote, gets

replaced by a different leader, that would have to be somebody who is more enthusiastic about brexit in that sense more palatable to the party. but i can't see that changing the economic outcomes of brexit. if that happens, that would be probably somebody who is more relaxed or even enthusiastic about a no-deal scenario if she cannot get this deal through parliament we're heading for a no-deal scenario the only question would be do you do this with somebody who has doing dragged into it kicking and screaming or do you do it with somebody who is more comfortable with that outcome. >> it's very difficult to ascribe probabilities at this stage, if her leadership contest continues, if she doesn't win tonight's vote and other people come out inside the conservative party and say they would like to be leader of the party and prime minister, that process drags on for quite some time and we get closer and closer to that march 29th deadline, at which point

one could only assume that the probability does increase of that no-deal how damaging is it do you think the bank of england, the treasury commitments to what that would mean to this country's economy are reasonable >> those are worst-case scenarios, but i think they're not completely wrong no-deal would trigger a recession and an economic contraction and probably take quite awhile for the country to recover. it would not mean armageddon those forecasts combine a variety of very pessimistic outlooks they are a worst-case. nonetheless, it would still be massively disruptive it would mean nobody would know what to do >> presumably what tonight's vote also means, the fact there is a leadership contest is continued uncertainty. that bedevilled investors when it comes to the uk economy for the best part of two, three years is that something you see

continuing to be a threat? >> yes that's the problem that's the reason why right from the start i thought we should go for an easier option for something like the norway option, or trying to have an arrangement similar to that of switzerland. some tried and tested solution so that you could signal to investors, to consumers, to everyone affected by that we have an idea of what we want the outcome to be like we're not trying to be too original we're going to copy something that already exists. that would calm nerves, i think. >> one theory being positive yesterday when it was clear that the prime minister pulled the vote, a meaningful vote on her plans for brexit or postpone them was the idea that this would mean that the europeans would have more time to potentially make some kind of cosmetic concession when it comes to the proposal on the table that would pass through the house of commons when you look at it through the

european perspective now, they won't necessarily be dealing with a partner at the summit this week who is necessarily going to be there as permanently as some of them might have liked what does that mean to the calculus when it comes to trying to preserve european interests, especially business interests to avoid that no-deal scenario. >> it doesn't look great at the international stage. but it doesn't have to affect negotiations what theresa may is trying to do now or has been trying until a couple minutes ago was to get reassurances that the uk can get out of the backstop unilaterally, even if the eu doesn't agree. and who knows, she might still secure that as a concession. if that's something the eu side could deal with that would make the deal more palatable. >> christian, thank you. just pointing out what could happen, of course, over the next

couple of days in brussels as theresa may and her 27 european counterparts meet there for the latest brexit saga summit as some people might want to call it >> crucial 48 hours there, willem thank you for bringing us the latest france raised its security threat level after a gunman opened fire near a christmas market killing two people. the french interior minister said a manhunt is under way for the gunman around 350 security agents are searching for the suspect. >> reporter: panicked screams, people fleeing, a deadly terror attack tonight near a christmas market one victim on the street, another shot nearby. further away, two more the gunman struck around 8:00 in the evening. the victims apparently random. witnesses report a dozen shots fired in bursts. >> i was walking to the christmas market

i heard some shots, six or seven shots. and then i saw two people on the ground and many people, of course, screaming and starting to run >> reporter: armed police poured in, but the gunman was on the loose. the historic strasburg market is visited by millions every year and heavily guarded. the attack was just 400 yards away authorities placed the city center on lockdown, warning people to stay indoors soon, they knew who he was he had a criminal record, but not where he was stores and restaurants were ordered closed, customers inside at the nearby european parliament, lawmakers were locked in. >> the whole parliament has been locked >> reporter: also locked in a restaurant, this euro news correspondent. >> they cannot give us a time. it could be ten minutes. it could be one hour that we should stay indoors. >> reporter: authorities say this is terrorism by a lone gunman

two years ago, a truck was driven into a christmas market in berlin killing 11 and injuring dozens. france is still on terror alert since a wave of islamist attacks killed more than 200 people. tonight in one of its major cities, mourning families and a manhunt. ♪ call on me brother ♪ when you need a hand ♪ lean on me, when you're not strong ♪

♪ and i'll be your friend ♪ ♪ i'll help you carry on ♪ ♪ lean on me ♪ mmm... ♪ lean on me... ♪ mmm... ♪ lean on me.

the google ceo sundar pichai says the tech company is looking to relaunch its search engine in china. google previously left china 2010 declaring it was no longer willing to allow its search engine to be censored in the country. pichai did not rule out a future return to china but stopped short of defining any current strategy >> right now we have no plans to launch in hina we don't have a search product there. our core mission is to provide users access to information, and getting access to information is an important human right

we are always compelled across the world to try hard to provide that information but right now there are no plans to launch search in china. >> we are joined by two expert voices in the tech space we have tim mulligan and elizabeth, our tech reporter first, i want to start with you. what did you make of the hearing yesterday? >> it was a measured response to a need to provide clarity for one of the most significant companies in the digital economy today and in the wider economy as well. this comes at a time when there are heightened tensions not just around tech or big business but fundamental geopolitical questions about the relationship between u.s. companies and the chinese economy. >> did you get any answers did you get any factual evidence

of what they'll do apart from what elizabeth was saying earlier, political posturing >> there was no clarity there. did we expect there to be a definitive explanation google has been called the black box of data in the past. this was almost a verbalization of that position >> when we look at 2018, for me this is the year of really where regulators started honing in on these big tech companies we saw it with facebook because of cambridge analytica but since then the microscope has been on these tech companies. going forward there's no signs of it abating. the language coming out of the senators yesterday was incendiary isn't there an almost of there will always be scrutiny on these companies because they're so big and they amassed such a big, critical mass that they will be up the eye of the regulators because they have access to so much user information that many

people willingly give up in the first place? >> absolutely. this is the start of this process. we're not reaching peak regulation, we're at the start of this process. right now, the general public is not cognizant of the implications of having their data monetized for free by these big multinational corporations right now it's regulators who are struggling to dwraunderstane ramifications themselves when they become more aware of that we'll see greater scrutiny of these big, indispensable companies. >> elizabeth, it's not just user data privacy concerns, it's filtering out misinformation, bad content and what they're approach is to really attacking it from an algorithm perspective. this is one issue that came up with the google search function in china what is your take on the testimony yesterday when it comes to those aspects >> the hearing yesterday was focused on this issue of transparency and political bias.

one point that republican lawmakers made time and time again is that google is manipulating search results to stifle opinion pichai saying these are algorithms that are out of human control when they're programmed. but there's concern about how much google controls when it comes to ail go llgorithalgorits the lawmakers don't seem to have expertise in this field, they're out there to get their own voices heard, that's the main point versus getting information about the policy that is happening. >> cnbc just held the east west conference a few weeks ago we heard there if you're not a major presence in china, you won't be a dominant force in the new world, but once again we

heard the pressure google is facingi inrelaunching in china so how do you be a tech player in china and play within their rules. either of you can weigh in >> i would make the observation, competing in china is like boxing with one hand tied behind your back. it's not a level playing field for non-chinese operators. and chinese operators have to be cognizant of the severe regulatory framework they work in it's a huge market difficult to ignore but extremely challenging for non-chinese tech players to play in >> tum, thank you very much. we'll leave it there now, elsewhere president trump threatened a government shutdown on tuesday. he held a fiery debate with democrats in the oval office in front of tv cameras. originally intended as a discussion on government funding, it descended into an argument over trump's proposed plans for a wall on the border with mexico.

>> one thing we should agree on is we shouldn't shut down the government over a dispute and you want to shut it down >> no, no, you shut it down. >> 20 times you called for i will shut down the government if i don't get my way you said it >> you want to put that out there, i'll take it. >> good. >> you know what i'll say? yes, if we don't get what we want, one way or the other, whether it's through you, through military, through anything you want to call, i will shut down the government. >> fair enough we disagree. >> i'm proud i am proud to shut down the government for border security, chuck. because the people of this country don't want criminals and people that have lots of problems and drugs pouring into our country. so i will take the mantle. i will be the one who shut it down i won't blame you for it the last time you shut it down it didn't work i'll take the mantle of shutting it down. >> good. >> i'll shut it down for border security >> we believe you shouldn't shut it down.

>> nbc's tracie potts joins us from washington. how seriously should we be worrying about a shutdown at this point >> well, what you saw was supposed to be the negotiation that developed into a bitter partisan feud playing out in front of cameras if that's what happened in front of cameras, you have to imagine what happened behind closed doors. though president trump came out afterwards and said it was a friendly meeting the white house said it was constructive with agreement on some other areas but the area that they have to work out now is this budget. they only have nine days to do it we could be looking at not only several government agencies closing, places where people need services like housing and transportation but also homeland security more than 500,000 federal workers with paychecks in jeopardy so do they need to work this out?

yes. but president trump has now owned the fact he's willing to shut down the government and take the heat for that if there is any because he thinks border security is not only an issue that he feels that strongly about but he thinks the american people feel strongly enough about it, the majority of them, to want to shut down the government and put those services and paychecks on hold it's not clear where we go at this point the other thing that was interesting about that was that a foreshadowing of what we're looking at in january? the two people you saw sitting there with president trump, the two democratic leaders, one of them, nancy pelosi, will be in charge of half of congress come january. the big question was left, is this how they're going to get things done in 2019. >> absolutely. setting the stage for us there it's not the first or last time we talk about a golvernment shutdown >> thank you. our top story today, the uk conservative's party 1922 committee has announced it has

the votes to call a vote of no-confidence on theresa may the ballot will be held between 1900 cet and 2100 cet. theresa may has vowed to fight the vote and keep delivering on brexit we're seeing a bounce in cable this morning, up bv above 1.25, this after some of her key supporters, key cabinet ministers mentioned they would be supporting her and voting for her. some of the key heavyweights and some gilts rallying a tad. all of the focus has been on that currency pair switching to ftse, the equity reaction, and in line with most other equities in europe today, we are seeing a bounce for the major index up 1%, 70 points higher, breaking that trend

versus the currency. because the currency is trading firmer, you can see the banks are enjoying some of the bounce this morning all of this could change in the next 48 hours. finally let's look at u.s. futures and see how this positive sentiment in europe is feeding through to the u.s. this is coming off of a roller coaster day yesterday stateside. massive swings across all three major indices. ultimately all three ended the day little changed the only one in marginally positive territory was the nasdaq >> lots of volatility in markets and politics as well i'm joumanna bercetche >> i'm julianna tatelbaum. "worldwide exchange" is up next. this isn't just any moving day.

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. it is 5:00 a.m. on cnbc. breaking brexit news, british prime minister theresa may now fighting to save her job as her own party moves to vote her out of leadership. countdown to shutdown here president trump vowing to close the government if the border wall is not funded stocks are not fazed everything everywhere is higher now. huawei's cfo released from a canadian jail. the high stakes battle fa fror m view >> and how the china/u.s. beef is not stopping one