welcome to "street signs." i'm jomana versace >> these are the headlines asos shares plunged 30%. the stock now on track for its worst day ever the asos warning rocks retail as the sector hits the lowest level since july 2016 with online rifles boohoo and zolando dropping sharply. not an isolated event.

european equities see red after u.s. stocks pulled off late friday. the power of the deal. abb sells its power division to japan's hitachi in $11 billion spinoff for restructuring. sweel' speak to abb's ceo later on this morning. well, our top story today asos has downgraded its annual growth forecast from margins and sales claiming weaker than expected trades in november. the online retailer said sales will be 10% lower than previous forecastst citing unseasonably warm weather and increased competition. asos's online rifles have also been plunging as well. it's not just asos shares that were down 40%, you have zalando down 15%, boohoo down 11%.

next down 4% boohoo put out a statement saying that their trading activity has been in line with expectations and remains strong so, thereby, trying counter some of the price action that we've seen today heavy moves across the retail sector in the u.k. this morning. i want to bring in stacey widlitz. good morning to you, stacey. are you surprised at, one, the extent of the profit warning that asos delivers this morning and the extent of the move that we're seeing in the share price, down almost 40%? >> yes good morning it's a retail red monday here. certainly we've had warnings in the market already we've heard from a number of retailers saying november is very tough very promotionally u.k you can name the list. we had certainly mike ashley last week, came out and gave us a little preview talking about how terrible the month of november is, and he wasn't

kidding. i think the interesting thing with asos is that actually the u.k. business held off it was heavy discounting, that was really the issue consumers are looking for cheaper products that is a trend that i don't think will change and i think most interesting is that when you look at this business, they had been raising cap exand now they're cutting it into weakness this creates a bit of a snowball effect. >> stacey, one of the things asos pointed to today was weakness in germany and france they pointed to external weakness as well how much of this is based on, as you mentioned, structural issues to do with the retail structure versus purely economic growth slowing down in the eurozone and consumer confidence in the u.k.? >> if you look at this, it's clearly global i pointed to germany and france really deteriorating it's not just the u.k. that's

commercially driven and germany is getting promotional so the market is changing if you look at the comments about the rest of the world really deteriorating, that's actually negative now. that's a higher margin market and it's also a market where the behavior is different and the returns aren't as significant as in other parts of the world. if that starts to change, then, you know, we have a much bigger issue here i think they're getting it from all ends. >> stacey, for a wild asos was seen as a golden child from the u.k. taking market share from the incumbents if asos can't make it in this world, what does it mean for other retailers who have been in more challenging times than asos >> well, i think, you know, everybody's been giving asos and other pure plays an extreme high premium and a pass on everything because they have been the highest growth in the market,

but i think what it shows you is that when there truly is a slowdown in the market, that their cost structure really unravels in a significant way. they're talking still about 15% sales growth and they're taking operating margins down by 200 basis points and cutting capex what if sales go flat? what if they go negative what does this model look like that is so intensive in terms of cost structure with free delivery and free returns? >> just on that point about whether or not we actually do see sales growth turn flat, what does this mean for 2019 in terms of the downgrades we're likely to see from analysts from an earnings and sales growth perspective? >> oh, i mean i think today you're going to see the entire world chasing asos down the hill that's probably what we need here is wipe the slate clean and reset expectations in a realistic place.

clearly 2019 is going to be tough and, you know, again, i think the bottom line is the real issue and also if we start cutting capex here, does that actually make things worse we're pushing the put on the brakes button in terms of our spending does that actually hurt the company and let others kind of come in and give them more competition in terms of the brick and mortar world. >> stacey, just to julianna's point, let's not forget we're right in the middle of a holiday season this should be time when people are out buying gifts and yet november was discussed as slightly weak. mike ashley said last week if these kind of feels continue that will smash retail, what does that mean for the quiet months, january, february, march? which names do you think are most vulnerable? >> yeah. this is the make it. this is the make it month here and ashley was clearly correct

in smashing to pieces is clearly correct. no, you go into january, february, march lull starting next year and if consumers aren't spending now, then you have to bring into question or they -- what does it look like, as you said, in a quiet period i would be quite concerned about that, some of the trends that you're seeing. again, people are spending less. they're looking for cheaper product and they're looking for discounts. in the quiet period, that is going to only become worse >> stacey, thank you very much for joining us this morning. stacey widlitz, sw advisors. i want to talk about the price options. s&p is the lowest level since april. the dow is lowest level since may. they have dropped 11% from the september high

they're again a grappling with issues about global growth let's not forget that the fed will be hiking, according to the fed's market interest rates expectations this week that. relies on that then also the market is potentially concerned about this as it shot down its funding goal not passed by friday overnight asian equities traded a little bit more positive this is the stostoxx 600 tradinn macro issues as well let's not forget that brexit is still very much on the back of people's trading calendars and thinking about whether or not we are going to get them any progress whatsoever on that front this week from a political standpoint more demonstrations going on in france as well this is the picture. 1/3 of a percentage point. zet ka dax and cac carant and

ftse mib down a tad. wednesday is when the european commission will be meeting so that is the picture across the boards let's look at the leadership board in terms of sectors. no surprise right at the bottom we've got retail we were just talking about it with stacey. asos down. we have boohoo also down everything from 10, 15%. very, very healthy moves travel leisure getting a little bit hit. up at the top we have a couple of patches of green. as i mentioned, the chinese stocks were trading in the green. that's having an impact on basic resources, up 1.2% and autos up a fraction last week was a heavy trading week down 3% of the week, autos.

it is a very big week for the u.k. as well lots of news over the weekend about what may or may not happen various permutations will there be a meaningful vote? will there be another no confidence motion coming up for the labor party? the move for the u.k. is mixed trading down weaker 3% the miners doing okay. we have rio tinto up 1.7%. ast stra zen neck ka is up .3% u.s. equities, weak performance of financials. the u.k. is not immune particularly as the market is punishing those with domestic exposure like loyd's and bark class. >> thank you jomana. now a second brexit referendum

would break faith. that's what theresa may will tell parliament later today amid reports that an increased number of lawmakers are pushing for a second vote to break current deadlock now willem is with us at westminster this morning good morning, willem in addition to mounting calls for a second referendum, this weekend brought heightened possibility of a test vote where ministers will be asked to vote on brexit currently on the table. what's the likelihood of this indicative vote taking place, willem >> reporter: downing street about that proposal, jomana. theresa may will tell parliament that she does not see a second referendum as a good idea. a number of her cabinet members lining up over the weekend talking about how divisive it would be and something she's very keen to avoid.

essentially they would allow members of parliament, specifically the house of parliament, to vote with their conscience to essentially say to the government, this is what we see as the best way forward. now those options would include essentially a second refr ren dem, they would include theresa may's deal they would include potentially a norway style arrangement with the e.u. and also potentially a no deal brexit where the u.k. would crash out of the european union without any kind of agreement. what they're looking to do if these votes took place would be to find where there is a governing majority for a way forward and that would in one way save number 10 downing street a great deal of time. the challenge for theresa may is if you pursue that and if a second referendum proves the most popular amongst british lawmakers, that provides a great deal of pressure on her to pursue that option that would require her to essentially break faith, in her

words, in order to break the deadlock now in terms of her vote, this is the plan she is pursuing. she is looking to get more concessions from the european union. she came back from brussels relatively empty handed but she would like to see a meaningful vote in the new year we got a bit more detail from one of them over the course of the weekend about the precise timing of that postponed vote. take a listen. >> it's very clear that the e.u. understands what the problem is and it's a question of the vote of the withdrawal agreement,ca we find a mechanism of operating the backstop in a way that removes those anxieties. it will happen over christmas. it won't happen this week. it will happen sometime in the new year. >> insisting that a meaningful vote on theresa may's proposals will not happen this week. labor, very keen to bring that to a vote as soon as possible. their argument is the sooner parliament gets a say on theresa

may's plans, the better. they gave her the chance, he says, to go to brussels last week she did not come back with anything serious and no sign there would be in the future what the corbyn's shadow government would like to do in terms of the future is either force that to a vote failing that, push forward a no confidence vote in the government they would require support from other opposition party then after that, only after that would they potentially pursue the option of that second referendum. >> willem, thank you very much for the excellent clarity. back in the studio, pleased to say we are joined by toby gibb from fidelity international. good morning >> good morning. >> now sentiment towards the u.k. and u.k. equities has been very poor. valuations are near multi-decade lows for many stocks now this morning we've just seen a profit warning from asos

dragging down the broader u.k. retail sector. is this vindication for the bears that have been calling for a downturn in u.k. consumer confidence >> i think -- well, i guess, sort of first of all on the s ho results, they have downgraded. i think interestingly the weakness has been not just in the u.k. it's been globally. actually, i think the u.k. has been reasonably okay for asos. i think what this shows is we saw very, very weak data from brittain retailers in november i think the expectations were these are purely a bricks and mortar focused weakness but actually this is showing that it's been more broad than that we are seeing some weakness. >> you mentioned that some of the valuations for u.k. were at 30 year lows

you would think of it from a purely valuation standpoint that perhaps we have reached peak pessimism and yet on a day like this yet again you get stocks like, you know, the growth stocks, the constant stocks down flig 10, 15, 20% this tells you that perhaps we are not fully at peak pessimism. things could still get worse it's a value trap. >> i'm not sure i entirely agree with that. in the u.k., as you say, valuations are exceptionally cheap. relative valuations are at 40 year lows and the dividend yield for the u.k. is 80% higher than the rest of the year valuations are exceptionally cheap. there are some areas of the market where valuations have held up well and some of the internet retailers are weaker than that. some of them are exceptionally cheap and global u.k. stocks trading at quite big discounts today. we're hearing from brokers that some of their u.s. plants, for

example, the u.k. listed the integrated oil company and that doesn't make a huge amount of sense because, you know, integrated oil company has costs in the u.k. but for very limited revenues. >> you would do that value play, the u.k. versus international? >> absolutely. absolutely >> by what process different sphere of stocks, quality stocks stand out as one of the key beneficiaries of the low rate environment seen over the last several years. they've rerated massively in several cases. as we see qe wind down are you expecting to see all of that re-rating fallaway is that whole trade going to unwind >> i think it's an area that could come under pressure. as you say, we've seen because of qe, because of the alternative and investors being pushed at the risk spectrum buy increasingly low rates sort of the quality growth of the markets have been major

beneficiaries. i think the question now as we move from quantitative easing to quantitative tightening and we move from monitoring easing to fiscal easing, you know, are the quality growth grade stocks are going to suffer in that. i think when you compare the performance and value stocks to growth stocks, the value stocks have under performed by 10 years now and in the u.s. it's about 100% outperformance in that period so i think valuation becomes increasingly important i think we have to focus more and more on valuation. i think investors have to be very confident that sort of the growth expectations for these companies will be met. >> it's a great environment as well. >> absolutely. >> thank you very much for joining us, toby gibb, multi-asset portfolio manager. coming up, find out why the

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welcome back to "street signs. a democratically controlled house of representatives may not be bad for a trump administration that is according to sean spicer he told cnbc that a democratic house gives republicans, quote, something to run against in upcoming elections now hadley joins us from qatar where she spoke exclusively with spicer at the annual forum hadley >> reporter: that's right, julianna it's really interesting that we got those comments from the former white house press secretary sean spicer. he was weighing in on the president's performance so far i asked him, what do you miss about the white house? he told me, absolutely nothing i told him would there be a potential if the president were to ask you to come back and join the white house staff, would you do it? he said, probably not. it's interesting to catch up with someone like sean spice ser

here in doho and talking about fake news. i asked him to give the president a grade a through d on how he's done so fafrmt. >> depends on what areas i think the marks are pretty high i think when you actually look at the results, as a republican, as a conservative, when you look at the agenda that he's driven, it's something that republicans and conservatives alike have talked about achieving in the judiciary, regulatory reform, va reform, economic reform and tax cuts all of those things are things that republicans and conservatives have championed and the president is getting the job done we'll stick with the a you have to give him a little room to go up. again, you've got to remember what this probe was all about. it basically comes down to two things one, did russia or any other

fake actors attempt to undermine the integrity of the u.s. elections? the answer is clearly yes. the second is, was there any collusion within the campaign with russia or any official entities as someone who was there, i continue to say there was absolutely none. hadley, if you go back the narrative in september, october, november, we couldn't collude with ourselves we were disorganized, disparate in how we dealt with each other. it's a very interesting narrative that came up after the president won but as someone who was there during the campaign, transition into the first part of the white house, there was nothing that i saw that gave me any pause. >> reporter: it was actually really interesting as well, julianna, when you take a step back here and look at what the president's managed to achieve so far the fact that we do have a looming potential shutdown of the government in washington and whether or not nancy pelosi as speaker of the house works more

with the president than against him. think about this within the con toeks of the president's base. nancy pelosi has been a whipping boy for every problem that those folks have said is happening in washington really, even president trump himself seemed to be campaigning for her to become speaker of the house. when i asked sean spicer about that, he said, you know what, it does work more for the republicans, more for the president than against him an interesting and fun interview spicy at times with the former white house press secretary but certainly an interesting person to be sitting in doha talking about this. >> hadley, speaking about spicy, i know you spoke to the prime minister of turkey over the last 24 hours this is coming at a critical time for relations to end with respect to the khashoggi killing. what did they tell you. >> reporter: we got several headlines out of that. one of the things i asked him repeatedly whether he felt this was politically motivated

considering that turkey in terms of the press freedom and human rights does have a pretty dire record apparently according to one organization, they said they have closed over 140 organizations since 2016 they have potentially as many as 100 journalists in prison. i asked him when you talk about press freedom, does this mean that the president, president erdogan, is really milking this situation for political points he pushed back on that very, very strongly, this is about a criminal act, this is about a murder, this is about holding saudi arabia accountable he went back to the audio rord i recording. he made some headlines as well remembering a distant past that is in the united states. the united states so far has not allowed that to happen according to the turkish foreign minister president trump spoke at the g20 with president

erdogan about potential extradition back to turkey he talked about the fact that when syria, if there is a political solution, if there is an election and bashar al assad is re-elected there, that they would deal with him as a government a lot of news. a lot of headlines coming out of this the fact that you have the iranian foreign minister and the turkish foreign minister here at the doha forum speaking to the wider question when and if this crisis is going to end so a lot of open-ended questions, i think, but certainly very interesting to see who showed up over the weekend, including the former white house press secretary, guys. >> thank you for being on. that's the latest from qatar. for more from cnbc's coverage including exclusive interviews with the foreign ministers of qatar and turkey, head to our website, that's cnbc.com. coming up on the show, as

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welcome back to "street signs. i'm julianna tattlebaum. >> and i'm julianna versace. here are your headlines. asos cuts the failed growth guidance it's on track for its worst day ever >> the asos warning rocks retail as the sector hits the lowest level since july 2016 with online rivals boohoo and zalandos dropping sharply. not an isolated event. oeuropean equities see red. italy's coalition government agrees on budget figures in a bid to reach an e.u. deal. france in the spotlight as the prime minister admits paris will likely breach the deficit deal

next year. european markets are trading marginally lower this morning. no massive moves, but we are adding to some of that negative sentiment that began on friday which saw european stocks close out the week lower now today of course markets are digesting more developments over the weekend on brexit. still, a huge amount of uncertainty weighing on u.k. investor's minds this morning, and that is certainly having somewhat of an impact today as we look forward to the week ahead, the key event of the week, fair to say, is the federal reserve meeting on wednesday where we will learn what their latest rate decision was but more importantly what the outlook looks like from 2019 that will come sharply into focus later in the week. i want to take you to fx markets. a quick look at what we're seeing on the euro, we are seeing a little bit of strength against

the dollar up 17 basis points. above the 113 level. the pound is also trading slightly stronger versus the usc. just over 126. really holding on to that evolution will the pound seems to be range bound still as investors continue to wait for more concrete signs of progress on brexit as i say, the main event for the dollar is going to come around the federal reserve meeting on wednesday. let's have a look at u.s. futures and see how the u.s. market is looking to shape up. on friday we saw all three major indices close substantially lower more than 2% down across all three. here this morning, not a lot of movement judging by the futures. s&p 500 is set to open just two points higher. the dow just 5 points lower and the nasdaq 8 points lower. direction for u.s. markets, presumably a bit of caution ahead of the federal reserve. >> another big story here this week, italy's coalition government has agreed on the budget figures

a spokesperson for the ledo party said they have agreed on, quote, the numbers and content of a proposal to send to brussels rome has yet to reach a deal with the european coalition with year end deadline approaching but on wednesday we should get some more certainty on that one. meanwhile, france's prime minister expects the country's budget deficit to come in at 3.2% next year over shooting the e.u.'s limit of 3% gdp this comes after president emmanuel macron made confessions including wage increases and a pension tax cut which will create a tenure row billion hole in the budget. they previously forecasted it to be 20 poin 2 point upon -- 2.8%. the protests were smaller than in previous weeks

66,000 people took part. that is less than half the number that gathered a week ago as the terrorist attack and cold weather are thought to have limited the turnout. >> market turmoil could be the new normal in the latest quarterly review, institutions said rising rates, trade tensions and political uncertainty will mean sharp falloff and are probably the first of many to come. and speaking of which, the fed is widely expected to deliver another christmas hike this week. consensus for next year varies widely it's p trending less than one full basis point. >> we are joined by -- we'll introduce our guest shortly. for now aviva investors remain cautious as we begin to see

significant repricing spreads across sectors the company warns that credit markets will have to navigate through more uncertainty since the qe era has come to end now i'm very eager to introduce to you collin curdy of credit at aviva investors. thank you for joining us the market has become increasingly nervous about the% ris bei risk of a recession in the next two years. when will that catch up with corporate in terms of the credit market and which sectors are we likely to see crack first? >> that's a great question one we're devoting a lot of time to answer. companies with large debt stacks are being punished by the market as the market starts to price in tougher economic conditions, a slowdown to some degree albeit from a good position what that means is these companies might not be able to deleverage as much as they would like or as much as the market would like them to delever

the result is we're seeing quite widespread spread widening on a bit of fear around when the slowdown might come. we're probably a little bit bullish. we think this should be closer to 2 or 3. employment is fine the conditions are not too bad in terms of the cycle, companies need to be careful you need to be selective in terms of who you're investing your money with. >> in the sector perspective, are there particular sectors, oil and gas have built up their leverage that you're most concerned about? >> yes, we're certainly concerned about oil and gas. we're not the only ones. s&p came out and talked about oil and gas being the weak link in the market, in the high yield market the oil and gas sector is one that's traditionally been under a bit of pressure as oil prices

go down naturally. what we expect is them to come under pressure due to refinancing requirements that hasn't happened this year oil and gas will be part of it in a rising rate environment with an uncertain demand requirement for oil, with uncertain supply expectation for oil, we think some of these companies could come under pressure in the next few years. >> there are a lot of warning signs out there. what's been ironic about the credit markets is high yields have outperformed. >> yes. >> a big part of that is there hasn't been that much issuance in the space i was reading this morning saying that there hasn't been one high yield issuance yet for the month of december. the last time that happened was ten years ago.

certainly appetite and in order to get the debt into the market. is it a surprising statistic to some degree, yes. we're living in the post qe era now. the market will really pass an inflection point we've had a lot of global marketing. they're trying to navigate their way through that past. in 2018 we've seen all markets moving in one direction but now we're going to see more differentiation nkts the fact that the ecb are turning a little bit more dovish, does that make you more constructive about european credit versus u.s. credit? cash is trading at 2.5% 3rks%, that makes credit less appealing. europe is a couple of years behind that cycle. is that where you want to be >> to some degree, yes that's certainly the case. being followed behind in the

cycle does provide us with some comfort. europe has its own idiosyncrasies it has to deal with brexit, what's happening in italy is important at the same time as well we think that in europe it doesn't look too bad european high yields underperformed the u.s. high yield is quite attractive when you pull in some of the other factors that you mentioned. >> are we likely to see some financials this year >> we think so financials are not in a bad position at all. there are a couple of reasons behind that. first of all, from a fundamental perspective, these companies don't look too bad at all. if you go back to the global financial crisis, the loss absorbing was in the region of 4% nowadays it's 12% and upwards. banks are in a much safer position from that perspective when you look at the risk

appetite, banks are taking less risk from a credit investors position that's not bad. >> clearly there's no overturn on equity. >> i have to leave it there. thank you very much for joining us also coming up on cnbc our colleagues state side will speak with doubleline capital ceo jeffrey gundlach that is at 1800. european markets have been open for two hours this is a down day a down start to the week the stoxx 600 is down. we've got a keen focus on retail this morning that is after asos profits warns. i want to take you to the retail sector asos is down more than 40% this morning. this is driving a huge selloff across the real tail space

zalando down, boohoo and next down as well this is driving questions about consumer confidence not just in the u.k. but around europe asos cited talks about what's going on outside of the u.k. this is about the retail space >> speaking of retailers, swedish retailer h&m has a 6.5% increase they're due to publish the fourth quarter earnings in january did not comment on the numbers. they are on track for the third year of profits as the company struggles to keep up with online competition. more bad news from the retail sector. now meanwhile abb has reached a deal to sell the majority of its power grid

division to japan's hitachi. the swiss engineering group said it will send over an 80% mistake. it will be announced the restructuring of the remaining businesses which it hopes will cut costs by $500 million annually we'll be speaking with the abb ceo after this show. remember, if you have any thoughts around what we are doing here on this show, feel free to tweet us you can all follow us on twitter @streetsignscnbc now coming up on the show, from the bench to a deflected double we'll take a look at the latest clash in one of sports greatest rivalries.

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

theresa may ras huld route a meaningful vote on her brexit deal before the end of the year. willem is at westminster

as we just said, theresa may has been resistant to calls for a second referendum. what is likely to happen now pressure just continues to mount. >> reporter: it's essentially what's really interesting. when you look at theresa may's position in the last month or so since the text of the withdrawal agreement. she will not really engage with what happens next if her deal is voted down last week she postponed the vote she said, i'm going to go to brussels and try to get the concessions i need having listened to you folks who disagree with me trying to get the concessions from the northern ireland back stop and when we're confident with enough votes we're going to have this vote on my proposals she has not talked about what happens if that fails. now a number of her cabinet colleagues are acknowledging there needs to be a plan b and

that could involve what's known as an indicative vote. essentially mps in the house of commons behind me will be given freedom across all parties in theory to vote on the solution that they find most palatable. that could include no deal at all. that could include theresa may's proposals. that could include the norway style arrangement and it could include reversing brexit potentially by offering up a second referendum. the prime minister has been very adamant that is not an option she would like it seems clear they would be open to t. labor wants to see a meaningful vote on theresa may's proposal so they can see if it has significant vote if it fails they would trigger a no confidence vote in the house of commons barring that, they said they

would pursue alternatives such as a second referendum a lack of clarity heading into christmas. >> interestingly this morning i was looking at a poll that had labor three points ahead of conservative party thank you for spelling it out. i want to bring in the chief executive from the london chamber of commerce. we spent a lot of time talking about tariffs, goods, exchange of goods what people often forget is 80% of the british economy comes from the service admin n-- ministry how do you think of it from a services perspective did you get enough assurances that london and u.k. services will be protected and will continue to have access to e.u. markets after brexit >> we haven't had any certainty on anything. you're right

people talk about wto and what the rules are but they don't talk about our businesses, which is most of my members are in the services industry. and so what we need is a bit more clarity on that now truth is we're only going to get to that clarity when we get through the withdrawal stage of this the withdrawal agreement is the gateway to the real negotiati s negotiations, which is the trade treaty hopefully in that trade treaty we'll have far more understanding about how service companies are going to be able to operate in the coming years that's going to take a number of years to conclude but at least if we got to that stage where we're really talking about things that really interest the service industries, the trade talks, trade pieces, our final relationship with e.u., that's when we'll see clarity. >> in terms of brexit considerations, we know that there's support for the deal in

parliament we don't know what the alternative is we might under up with them not agreeing on anything are they prepared for a brexit >> big businesses are. they make up a majority of the companies in london. our recent survey that we published last week showed 75% have no brexit preparation we have politicians saying it's outrageous companies should be preparing for it if you're a small company, you're worried about your survival tomorrow. >> right. >> you're worried. you will start preparing when you know what it will be it sounds like a broken record it sounds like a cliche, but it's true. businesses before they start spending money, making plans, they need certainty. you're absolutely right.

the things that could happen, the truth is there's no majority for any of those solutions what we need is politicians to come together. every time we talk about politicians coming together, they laugh at us basically at this stage, this is really serious stuff. they need to come together and come up with a plan that they can agree with, even if they disagree with all the details and come up with a plan which gives us some certainty. if not, we could well fall off the edge of a cliff. >> we hear optimists talk about an investment rebound but how realistic is that? if the uncertainty continues into march, possibly beyond march? >> we get delegations from

around the world and they say, well, wait a minute. why would you invest at this stage? what's the point if you don't know what's going to happen and finally as i come back to the point about the trade deal, which is the key thing, until we know what the basis of that trade deal is, the details of the trade deal, why would you want to make investment? >> how important would you say is regulatory equivalence? this is a big sticking point because on one hand you do want to have that equivalence so you can continue operating within the e.u. or with the e.u. but on the other hand people don't want to see that go along with it as well. >> i know. regulatory equivalence is the frame. i suspect when it comes down to it, if you want to distance yourself, if you're with the e.u., you will find something in the rules and regulations here and now that you will be able to do it. what we need is an agreement

that's why the trade deal is important. we're going to work together because we have to work together if that doesn't come to an overall deal, let's forget about the details, let's get to the 20, 30, 40, 50 things you need to lay out that we all agree on and then we work together. >> time is running out thank you so much for joining us collin sandbridge, chief executive from the london chamber of commerce. now liverpool returned to the top of the premier league after it inflicted a painful defeat on rivals manchester united adam reed joins us now i was reading the front page of the sports as i do every day there's a caption saying the special one because obviously, you know, back in the day he called himself a special one special one doesn't seem to be special anymore. >> what they're starting to say, joma jomana

whether or not the methods have changed, he may be getting it done a new breed of managers are coming through his powers may have diminished he's been at manchester united for three seasons. they seem to be way off. 19 points behind liverpool at the top of the table obviously behind all of their main rivals. they're actually closer to the bottom of the league at the moment than they are to the top of the premier league. that's not where you'd expect manchester united to be. >> is his job at risk, do you think? >> absolutely. not challenging. always going to be at risk considering what has happened. >> more or less than theresa may? >> i think brexit is easier to sort out than manchester may

quite expensive to sack him midway through the season. you don't necessarily get the manager you want manager of the caliber they want and with the track record that they want. they're out of work. whether they would fancy the idea of a new manager coming in. a quick look at u.s. trades as we head out a mixed picture, dow slightly in the red. nasdaq slightly up this is on the weak close of the week that is it for today's show. i'm jomana versace >> i'm julianna tattlebaum "worldwide exchange" is up ♪ there's no place like home ♪

argh! i'm trying... ♪ yippiekiyay. ♪ mom. ♪

it is 5:00 a.m. here at cnbc here's your five at 5. breaking news, malaysia filing criminal charges against goldman sachs. more on this developing story in minutes. despite that, wall street pointing to a higher open. traders gearing up for the final full trade of the year. d.c. drama heating up. the clock ticking towards another government shutdown. that deadline now just five days away why today marks a major milestone for bitcoin and it is holiday crunch time and we are live at a fedex facility with just eight shopping days left to go until christmas it is monday, december 1