welcome to "street signed. europe's stock 600 hits its highest level since early november senior official tells cnbc there's no talk of lifting measures now president trump polls the u.s. delegation from the world economic forum in dave yoes saying it's out of consideration for american workers effected by the government shutdown. out of range telecom italia, the company

warns 2018 earnings will be lower than anticipated casino shares rise as the french supermarket operator weathers the gili protest to maintain its full year targets it's been a week of politics, but one country in particular we've been focussing on today isn't the u.k., but actually sweden. we've just got the results now of the parliamentary vote that was taking place there and has now confirmed that the incumbent prime minister has been selected to win the second term as prime minister just if you take a couple of steps back, if you remember back in september at the swedish elections had inconclusive results. it's taken all of this time to actually get together a coalition of sorts, and now we

do have a coalition. it has been confirmed between four parties in sweden at the parliamentary voting was just taking place, and we knew early on in the week that the left party would abstain from this vote which allowed for the incumbent prime minister to actually get re-elected to the second term and remove some of the political stalemate there. you can see there hasn't been that much of a reaction in the swedish to the news. at least for the foreseeable future remove some of the political uncertainty even though the bigger question is, of course, whether or not this coalition can actually hold it together given it is a patchwork of parties from the right and parties of the left. similar to what we saw in italy, actually >> it's one thing that we're seeing across europe not specific to sweden it will be interesting to see how it plays out across the broader region e region. >> we will be following the developments in sweden

in the early part of the year that is the pudding to the latest ie oil market report that has just come out. the agency also says u.s. crude outputs will probably be higher than the capacity of russia or saudi arabia by the middle of the year these are some of the highlights of this report the flashes have just come out now. just to reiterate some of the major points that we've got them up there on the hot boards, one set global demand growth they see unchanged for 2018 and 2019. remember, towards the end of last year when there was that negativity in the markets, there was a lot of concern about what the global demand outlook would

look like because of chinese slowdown, because of u.s. fears of growth as well. they don't have any such concerns on the demand side, but they also talked about supply, and this is interesting as well because we talk about oil in the context of how much excess capacity there is coming to the market they're officially still up 2.8 million barrel az day from one year ago yes, there has been a reduction at the end of the day there is still excess capacity in the market, and the report is saying this morning that unless the opec really follows through on these production cuts, then we are still rielk to see excess capacity for the first half of

this year. very interestingthe context of energy markets, a very interesting report there you can see a picture of some of the price action in oil markets this morning brent is trading slightly higher up at half a percentage point or so 61.50. wti at 52.40 there are some hopes between china and the u.s., but jilliana will break it down for us more.

a lot of this is on the back of reports that u.s. and china trade could be heading towards some sort of resolution. yesterday there was a report out from the "wall street journal" suggesting that u.s. officials were considering lifting tariffs on chinese imports to break this stalemate that has meerjed between the u.s. and china now, while some u.s. officials have tried to play down the prospect that any decision is imminent, seems to be sending a signal that we are inching towards some sort of resolution. there is certainly some desire to get a resolution sooner rather than later. now, of course, brexit looms large here in europe we are all focussing on what theresa may's plan b will look like in terms of sterling, we saw some strength yesterday and today we are seeing a little bit of a pullback in sterling, but it is still hovering above that 1.29 mark versus the dollar. a lot more talk around a possible second referendum no doubt, adding to support in sterling

that is obviously something very big looming large in the mind of european investors i want to get into the different regions. well, check on the ftse for sure we'll see how that pound strength is filtering into the ftse this morning. up about 08 basis points it is a green picture across the board. they are all higher. this follows a mixed day in europe yesterday we really saw stocks struggle for direction. some divergence in the regions, but all of the major indexes were struggling yesterday.

>> just explained in great detail that iea report as just published is saying the oil price is sfilterring through to the oil and gas majors and the equity space down at the bottom, the only sector in the red, telecoms down just a touch it was down a lot more strongly later. we have more detail on that story there. >> thank you for breaking down markets for us of course, it has been a real risk-on session overnight. even though we don't have firm views as to whether or not this is a proper resolution in the u.s.-china tension, certainly markets are behaving that way.

at the moment it's more sort of speculation. you know, there's some talk obviously that there will be some alleviation, but we need to get confirmation it's not the consensus across the u.s. administration that we will get something it does seem like in general the trend is towards some kind of trade war. the trade war won't necessarily mean everything goes back to a more positive footing. >> just picking up on that point about china fundamentals, we found out earlier this week that china are going ahead and really pressing on this stimulus front, be it on the monetary policy side, and also on the fiscal stimulus side, they announced this week we heard from the vice premier who made those comments, and certainly that has also contributed some of the optimism that's playing out there do you think the stimulus

combined with a detante with it is u.s. will be enough to change the fortunes of how people are thinking about the investment opportunity there? >> i think there will be speculation at will, but it will take a bit longer than people thought -- in what people think. back in 2015, 2016 we saw an aggressive stimulus. i think this time it's much more cautious i think the crazy injections are linked more to the chinese new year some of the fiscal moves are quite moderate in the grand scheme of things >> just, you know, to pick up on that, another topic that we talk about a lot is not just when it comes to the current account balance and, you know, the trade war per se as it pertains to goods. i mean, at the end of the day it will be a victory for president trump if if china starts buying more u.s. goods, but the bigger issue and one that has really come to the forefront is that of cyber espionage, intellectual property rights, forced transfer of technology from u.s. companies to chinese companies, and perhaps that is the bigger issue that's unsettling

investors here my question to you is even if there is some resolution on the tariff front, what does that mean for the other issues as it pertains to the technology sector as well, and who is really driving the discussion there? that's going to remain >> one of the big debates that investors were having and then drove a lot of the -- in terms of how the next recession will compare to previous ones,

european crisis of 2012, the global financial crisis in 2008, the dot comcollapse, how will this one be different in particular because of the proliferation of algorithms? >> i mean, i think that we have to recognize whatever market recession we get next is often very different from the last one that we got, and i think at the moment lots of people are trying to argue for replay of 2008 in some form. my conjecture is this time around we're going to see a very different type of crisis, which will be much more linked to market liquidity events. the microstructure of the markets, the way markets are moving day to day, something is unstable there something is very fragile.

all of the narrative chances of recession, as juliana was staying, but perhaps the real issue is that of there not being enough liquidity in the system when the time comes and when there finally is that panic type sell-off in the market. we saw a bit of that, but things have recovered since then. >> i think it's important to separate the two there is a financial market crisis of some kind. you know, we have high periods of volatility, gapping market moves, and i think we need to separate the two >> right we can talk about the catalyst for that type of reaction later on in the show the head of international developed market strategy at nomura now, some corporate news for you. telecom italia forecast full year core earnings of around 8 billion euros. according to reuters, this would be a near 5% decline from the same period last year.

now, it was caught in a dispute between vivendi and elliott and that led to the ousting of the ceo. the company expects to release its full year results and a new business plan at the end of next month. it called disappointing. ryanair warned it could not -- and guidance if there were unexpected brexit or security developments >> and in france french supermarket operator casino says it will meet its 2018 profit targets despite reporting a slight fall in fourth quarter revenue. they say the protest cost the company around 50 million euros in lost revenue. brazil, however, proved to be a bright spot as sales beat forecasts. now, casinos currently in the midst of selling off assets as it bids to keep its debts under

control. we've already discussed a multitude of different topics early on in "street signs. we've talked about the swedish elections and the iea report and talked about china we've talked about -- >> telecom italia. >> so much in 15 minutes if you want to get involved in the conversation, follow us or tweet us on twitter @street signscnbc. will they or won't they? u.s. officials reportedly raised the possibility of softening tariffs on china we'll have the full story after the break. stay with us your brain is an amazing thing. but as you get older, it naturally begins to change, causing a lack of sharpness, or even trouble with recall. thankfully, the breakthrough in prevagen helps your brain and actually improves memory. the secret is an ingredient originally discovered... in jellyfish.

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plus get $100 back when you buy an lg or moto phone. it's simple. easy. awesome. click, call or visit a store today. >> the move has been proposed as a way to calm markets and tempt china into economic reform a treasury spokesperson poured cold water on the report telling

cnbc neither the secretary or ambassador lighthizer had made my recommendation with regard to tariffs and the process is still ongoing. for more on how asian markets reacted, nancy joins us from sing more. >> confirmation that china will be going to washington at the end of the month certainly hasn't heard things. i think it's in a great deal of help for sentiment here across asia both closing up in the range of 1% and 1.4%. we saw a lot of strength in the hong kong market throughout the session as well closing up

higher by 1.25%. a crucial test for china's economy coming on monday with all eyes on just how bad the slowdown is in the domestic front. we'll get the gdp print coming monday for you certainly investors in the jap flees markets were encouraged by the performance overnight in the u.s., and we did see strength in japanese banks this week off the back of a strength in u.s. financials with earnings in focus there too. green arrows across the board. as i said, the south korean market higher by 0.8%, and the australian market finishing higher by 0.5% as well you can expect plenty of tests for investors out here in asia, though not just that gdp print from china on monday. we'll get key data out of south korea as well. you can expect some more headlines as always around those trade talks. guys, back to you.

>> the u.s. will not attend davos. in a statement press secretary sarah sanders cited the ongoing government shutdown. the u.s. president had already announced he would not attend. shortly before the house speaker was due to depart with a congressional delegation with belgium and afghanistan, he blocked the use of a military aircraft the president called the trip a public relations event.

the president's move came after pelosi called on trump to either delay his upcoming state of the union address or to deliver it in writing. not everyone's plain has been grounded by the shut dourn nbc news has confirmed that the first lady flew to florida onable air force jet shortly after pelosi's trip was postponed. head to cnbc.com for that story. skbro pretty much flat versus the dollar just under that 1.4 mark sterling over the course of this week reacting very strongly to any sign that we might see a second referendum or no deal ruled out. right now this morning it is holding above that 1.29 level.

the dollar yen, that's an interesting one. now, i want to bring the head of international develop market strategy at nomura into this conversation you've been a long-standing bear on the u.s. dollar since early 2017, if i understand correctly. it suggests that the trade discussion is a huge head wind in itself. if we see resolution, does that make you concerned about your bearish outlook on the dollar so far as it might cause the fed to return to their more hawkish substances >> i think in the short-term it does i think in the bigger scheme of things, i think what the fed has

learned is that if they were to reengage in fed hikes, then that would cause more market volatility i think there is an inflation story in the u.s. that is turning, but the signs of u.s. inflation accelerating, just aren't there right now i think at the moment it's partly because we aren't getting any data >> literally you aren't getting any data >> yeah. we aren't getting any data, and i think at this stage at the early stages of the shutdown, it only has a marginal impact on growth now, if this does expand into february, then you start to see a much bigger impact on u.s. growth as you start to see, you know, impacts on the transport system in the u.s. you start to see unemployment

numbers start to pick up if you drag into february, then the market gets much more concerned. >> short-term versus long-term we'll continue the conversation shortly. head of international develop market strategy at nomura. reminder, we'll be kicking off davos coverage live. do not miss our stacked line-up. also coming up on the show, as the prime minister looks for break-through in brexit, the e.u. says it is ready to act if the u.k. changes its red lines more when we come back

europe stock 600 hits its highest level since early december amid rumors the u.s. is considering easing tariffs on china, but a senior officials tells cnbc there's no talk of lifting measures now >> out of range. telecom italia shares sink after the company warns 2018 earnings will be lower than anticipated casino shares rise as the french supermarket operator

weathers the gilijohn protest to maintain its full year targets netflix beats on spriubscri growth a slight miss on revenue sends the stock falling in after hours trade. we've seen a lot of movement in markets in the last 24 hours, and let's not forget we're getting right into the heart of earnings season in the u.s a lot of banks supporting. yesterday we had a mixed bag morgan stanley results coming in weaker than expectations netflix also disappointed even though from a very high base i think what's interesting about netflix, and we'll get into that in a little bit more detail, is that since december 24th, the stock is still up 45%.

anyway, that set the tone for u.s. equities overnight in asia. there's been a lot more optimism being priced in and potentially a resolution in sights when it comes to the tariffs between u.s. and china that's obviously having an impact in european markets as well. just ahead of the government's releasing their plan b on monday all eyes to see what that potential plan b is, and then, of course, the second meaningful vote on that plan. a lot of political uncertainty on the back drop, but certainly this week has been a week where

investors at least markets for the time being are assuming the best case scenario, and really pricing out the possibility of a hard brexit. whether or not that's right or wrong is debatable, but that is the picture for sterling this morning. trading slightly on the back foot, though dollar had somewhat of a bid this morning i also believe in the context of sterling we've just got some data >> absolutely, that's right. we just got u.k. december retail sales data a bit of a check on the economy. u.k. december retail sales volumes have come in below expectations on a month-on-month basis volumes were down 0.9%.

it's a slowdown from november. december retail sales. volume is up 3% in november. they were up 3.4%. now, worth noting, of course, november was boosted by black friday promotions, which continue to see that shifting pattern in consumer spending to sales occurring earlier in the year in november we also saw on-line sales as a proportion of all retailing exceeding 20% for the first time bearing that in mind, that is part of why we are seeing a slowdown in december versus november the big take-away here is they are worse than analysts were expecting. >> i think what's interesting about these numbers, juliana, is that for the most part in 2018 when we talked about u.k. data, there's been a lot of focus on the fact that there's been a notable lack of investment going into the u.k. on back of brexit concerns that something the bank of england talk about quite a lot. consumption did hold out for the big part of the year unless we start turning in a little deeper into some of the numbers that came out in the last quarter,

and, again, these numbers are no exception to that. it does show that some of the uncertainty that is weighing on businesses is also beginning to weigh on consumers as well, and certainly beginning to bite when it comes to spending spending activity. these retail sales numbers have started dropping off in the last couple of months as consumers start really preparing for the event of a brexit -- hard brexit, soft brexit, whatever it is, in a couple of months time that is the picture for sterling this morning now, speaking of the u.k., pressure is ramping up on the prime minister theresa may. to rule out a no deal brexit following the defeat of her plan earlier this week. she expressed her optimism -- she expressed her disappointment, rather, to opposition leader jeremy corbin over his refusal to meet and try to find a way to break the impasse where, wiham joins us in westminster. seem seemingly, she's been extremely

intransigent on the red lines. >> corbin is saying he is being similarly stubborn after that wednesday night vote where theresa may narrowly held on it her position by winning the no confidence motion, she said she would engage in conversations in a constructive spirit with the heads of opposition parties almost immediately jeremy corbin said i'm not going to talk to you one-on-one unless you take the option of no deal off the table. she said it would undermine the result and would be "wrong." jeremy corbin was campaigning essentially yesterday on the south coast of england talking to labour supporters and being

increasingly critical of the government's position. take a listen. >> the government may have survived a confidence vote for now. we have a government in name only the scale of the defeat on tuesday has shredded the last vestages of its authority. if the government had any confidence in itself, confidence in itself, it would go back to the people for a new mandate. he is insisting that this idea must be off the table, and he is pursuing his plan a, which is a general election now, for that to happen, either he has to win one of these no confidence motions in the house of commons, or theresa may has

to call on elections no indication she's willing to do that just yet for him to win that no confidence motion, he would need all the other opposition parties to back him. we've heard now from the liberal democrats, they're not prepared to do that in a future no confidence motion if he sticks to this precondition that there must be no deal taken off the table. let's switch to the european side to see how they're responding to all of these events, of course accident here in westminster we've heard late last night from the german foreign minister talking to jeremy hunt, the british foreign secretary here, and saying essentially after that conversation that it might be necessary for the europeans to reopen this discussion with britain over the withdrawal agreement if all 27 europe anne countries are agreed because of the strength of the rejection we saw on tuesday night michelle barnier speaking in portugal yesterday told portuguese lawmakers or mps that he thinks that there is a possibility that the europeans would quickly move towards some

kind of compromise if the brits put forward a softer line. >> translator: with these red lines they shut the doors themselves, but if they move, as i said in parliament yesterday morning, if the british red lines move, we'll also move immediately. >> where does this leave us this morning? well, the prime minister spokesperson telling journalists yesterday they expected more meetings between back bench labour mps and the government even though jeremy corbin has instructed his labour mps not to meet with the conservatives without that precondition being met. then, of course, the weekend, the prime minister will be at her country retreat at a place called checkers. she'll come back to the commons on monday, required to present some kind of plan b, and that would then be voted on if the house of commons agrees on the 29th a huge amount of moving parts. that's where we could see amendments being added to a preliminary motion put forward by the government and those

amendments could include a reversal of the entire process they could also include an extension of the article 50 process. >> we are certainly no amendment experts. thank you for bringing us the latest, and we look forward to getting more color from you throughout the day as well that was wilham live in westminster giving us the latest on some of the developments going on in the u.k. some corporate news for you now. shares are trading sharply higher after the russian energy firm said it has direct and indirect ownership interest in the company will be cut to below. some of the russian billionaire's companies are subject to u.s. sanctions which could be relaxed by the treasury however, the u.s. house of representative has voted overwhelmingly against the plan to lift sanctions. in other corporate news, former nissan chairman carlos ghosn improperly received almost

8 million euros through a nissan joint venture. according to both companies. nissan says it considers the payments a result of misconduct, and that it would consider seeking repayment from ghosn embattled auto tycoon has been detained since last november and has been indicted on financial crimes he denies those allegations. meanwhile, in the sports world the nba has been here in london this week promoting the game of basketball and also staging its annual game in the capital. now, our sports reporter adam joins us in the studio this morning. adam, what is the end game here for the nr ba? are they considering putting some teams in place here in the u.k. >> it's always a talking point when the american teams come over here, whether it's the nfl or the nba they've got very different stances when it comes to this. the nfl looking as everyone

knows to maybe put a franchise in place by 2022, but the nba say for that to work for them, they would have to put at least four teams in and around this part of the world because of just the way their season works out. a lot more games happening in the nba. as far as the nba goes in london, this time around there was a thriller last night. the washington wizards against the new york knicks. it came down to the last second literally the last second. the washington wizards were trailing by 99 points to 100 just as time looked like it was running out, thomas brian, his shot, well, it didn't go in, but it was blocked for goaltending goaltending when the ball is coming down over the rim the cylinder rim, and it was tipped away by the opposition. now, a penalty was given two points after much liberation was given to the wizards, and they came away with a win, which boosts their playoff chances a very successful business trip overall we would say for the washington wizards they came to london to do a job,

to keep their playoff chances alive. the knicks are having a bit of a tougher time of it themselves. obviously, a famed franchise from down the years and years gone by. this time around they are struggling now, it has been a business trip, as i mentioned they were in london all week doing all sorts of pr opportunities. not least fulfilling some obligation with some of their sponsors in london a local tailor is getting some london suits as the wizards were a lot of material needed to give a basketball player the amount of suits that they would need because of their obvious longer limbs. they had some tailoring going on i was also lucky enough to catch up with the washington wizards owner tom. he told me that despite the fact that they've got a huge following in america, the idea of expanding the game in the u.k. and in the far east is a

big, big importance to them. >> we're about an $8 billion a year industry, and we want to continue to grow our e-sports endeavors, all the work that we're doing in digital and in streaming. i think it's certainly doing well in china. india is a growing market. we believe africa will be a really important market for the nba, and, obviously, europe. this is a perfect holding for nba games. it sold out again. it's our seventh year here as the league we sell out every yoear. we're welcomed with open arms, and it's an exciting time to be a basketball fan here in the united kingdom >> they were very pleased to be in london and promote the nba, but it's china that they see huge growth at the moment, and they're going to use the fact that they've got this huge base in china to expand into other parts of asia, and india is a very key market then and very competitive, of course, because cricket is very well

established. >> we'll look to see if the wizards will work their magic. does that work >> clever names. >> an eclectic crowd i saw michael mcintire, arsenal players. >> definitely an eclectic crowd. adam, thank you for bringing us the latest for more on plans for global expansion and the first episode of our new series "the score." that is coming up at 18:00 cet also, coming up downstream netflix ends in the red after mixed earnings stay with us ♪ did you know you can save money by using dish soap to clean grease on more than dishes? using multiple cleaners on grease can be expensive, and sometimes ineffective. for better value, tackle grease with dawn ultra. dawn is for more than just dishes. it provides 3x more grease cleaning power per drop, which cuts through tough kitchen messes, pre-treats laundry stains, and even tackles grease build-up on car rims.

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who did warn about weak results for 2018 early on in the session. we were looking at telecom italia shares. indeed, earlier down 9%. we're just hearing now from vivendi. the spokesperson has now said that they are reiterating that the company reserves the right

to call another shareholder meeting at telecom italia if the results don't improve significantly. it's concerned that the elliott controlled board at telecom italia is wasting time, has no plan, is only blaming previous management for poor results. ongoing battle there between vivendi. now control the board of telecome italia. netflix shares fell 4% despite a beat on profits and subscriber growth and only a marginal revenue expectations. after the disappointment of last quarter, the streaming giant switched to reporting only paid subscriber growth finishing the year with a total of 139 million paying members, and i'm happy to bring in anthony ginsberg, the co-founder, who is along with other correspondent, elizabeth we were talking about the preview yesterday, and you said that the focus, as ever, will be on that subscriber growth. what can you tell us more about

what came out last night autothat's right when it come ltz to subscriber growth, it was a positive report for netflix. as you mentioned, 139 million global paying subscribers. that's a mass i number of people who subscribe to netflix every month. it added a record 8.8 global paid memberships just last quarter. that's 34% increase year on year there's big growth in subscribers. that lends to big growth in revenues even if it was a slight miss this quarter. bird box had 80 million viewers. pretty significant numbers there. there are, of course, some negatives in this report the cash burn remains an issue for netflix. operating margins are getting smaller. the company has spent $3 billion burn cash last year. that's on its new original content as it tries to keep up with increasing competition in this space even though we saw a little bit of a pullback in the stock in after hours, down 4%, the stock is still up 50% or so, 45%

since late december. anthony, also, when you look at the valuations here, it is extremely expensive stock. it trades at 105 price earnings. 63 times ebida >> all my friends in california cutting their cable. more and more of them are not using regular tvas they're going to hulu or the likes of netflix it's an 18% increase that they're charging on subscription fees it's actually a positive it will help drive earnings. even a dollar pound extra fee is not a big problem. it seems like it's manageable. the other two reasons is the international growth elizabeth has touched on 8.8 million, but 7.3 million, i was born in south africa, and even a far-away place like south africa has a million subscribers coming through. the fact that they're increasing their fee and hollywood is running scared living in l.a., i can tell you they are one of the bigger hirers roma and bird box are both getting oscar buzz, and i wouldn't be surprised if one of

them gets a major oscar win. >> hollywood must be getting nervous. one of the big questions moving forward is how these subscription services, including netflix, fair in a downturn. we really haven't seen consumer behavior when it comes to switching and substituting will people treat netflix like a luxury good, and, therefore, reduce the number of subscriptions they have when we see a downturn, or will we maybe see subscriptions actually benefit when people trade down from going to the cinema >> especially when the recently announced price hikes as well. >> they would be very smart. i think bird box, sandra bullock has a blind fold over her eyes i have to say that they haven't actually got blind folds actually, a dollar here or dollar there is not a big deal it looks to me like it's price incentives a dollar here or dollar there, and amazon and the others, like hulu, are not competing effectively in my opinion with netflix globally globally disney and some of the other services can't compete netflix almost -- it's

quintupled they went to 30 million new subscribers this past year from about 20 million last year it's basically a one-third increase you have a fair point, but if you cut your cable in america, i have friends saying we are saving $50, $60, $70 a month cutting our cable, so they're maybe not watching other channels $15 or $13 on netflix a month is not a really big deal for them >> they've got $30 extra to spare. >> and you just get a preview of what you expect this netflix report could say about the future tech earnings coming out in the next few weeks. good sign? bad sign what do you think? >> we think it's been tough on them today, but they've risen so much already it's not a surprise on the 4% pullback honestly, amazon we're even more positive on. be think of amazon rated the same way that microsoft will be rated. amazon making 60% of their earnings in aws right in their cloud technology it's actually not rated as highly at the moment on the pe we actually look at social media exploding. i mean, kids in california don't

even surf the web. they look at us as dinosaurs they have a three or four instagram and other web sites, and that's all they look at, my kids many of them don't realize instagram is even part of facebook social media continuing with ad spend, and we believe adding spend will be 60% in social media and digital versus analog or traditional >> all right hans, thank you. well, anthony, thank you for bringing us your views and obviously, cloud is a very important space. we've been spending a lot of time talking about that, and how the market is favoring the software companies and hardware companies in tech space. thanks for bringing us your views. anthony ginsburg now, moving on to the continent. stephan has been re-elected as swedish prime minister breaking a political deadlock that has lasted for over four months. during this period sweden's stock market has lost ever 8% of its value.

lofven lost a vote of no confidence after inconclusive general elections. neither of the country's two largest blocks, the social democrats and the moderates, gained enough seats to win a majority without the backing of the far right swedish democrats. all parties rule out this option after a number of failed attempts at forming a government, lofven announced last week that he has gained enough support to form a minority government. now, he has formed a coalition with the center, the greens, and the liberal parties. i'm happy to bring in andreas, the speaker of the swedish parliament thank you for taking the time to chat to us this morning. big day for your country i have to ask you this this minority government that was announced today is a patchwork of four different parties. it's going to be very difficult to get the consensus on major policy announcements do you actually see longevity in this government? >> well, that's really not up to

me to give such a prognosis at this time. my job is to find the prime minister who can be tolerated by the parliament, and that task had been completed today with the election, and his government will consist of two parties. the social democrats and the greens, and they have a deal with the liberals and the center party on 73 different issues that's the basis for this to put new government, and it will, of course, be a rough ride in uncertain waters for the new government, but in a will be for the future to tell >> what do you i think the implications are going to be on policy, though again, we know that the right parties expected to join this coalition after pushing for some concessions that would fit more of a right agenda, including cutting income taxes, for example. do you think that this is the beginning of a shift in sweden towards the right?

>> well, if you look at the results of the general elections, you could argue that there was a shift towards the right in the outcome of the election as a speaker, i'm politically neutral, so i'm not going to say whether that is good or bad, but it's an observation, and i guess that is now reflected in this deal to form a new government. >> what do you think this political instability, this phase of political instability that we've just come out of means for the economy and means for the business community in sweden >> well, sweden is a stable democracy with stable institutions, and i heard that although the public has lost some confidence in the leading politicians during this difficult period, i do think that the swedish democracy and the swedish society is a very

stable one, and i think that -- and i hope that the politicians and the parties will be able to restore this confidence in the years ahead. my hope is that it will -- >> all right sir, going to have to leave it there. thank you for joining us on the line this morning on this historic day for sweden. the speaker of the swedish parliament there just before we head out, a quick look at u.s. futures markets are seen opening up further as far as some of the optimism on china-u.s. trade talks. i'm joanna >> i'm juliana worldwide exchange is up next. hey, darryl. would you choose the network rated #1 in the nation by the experts, or the one awarded by the people? uh... correct! you don't have to choose, 'cause, uh... oh! (vo) switch to the network awarded by rootmetrics and j.d. power. buy one of our best phones,

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stokt getting a lift on conflicting tariff headlines we'll sort them out for you straight ahead the bird box bounce. netflix reporting a big build in new subscribers, but it's what the company said about competition that's getting a lot of attention ditching davos president trump pulling the plug on his delegation's trip to the world economic forum as the government shutdown enters its 28th day it is friday, january 18th, and worldwide exchange begins right now.