welcome to "street signs" live from davos. here are your headlines. a sea of red across global stock markets as growth concerns top the list of key issues at the world economic forum with the ceo of abb telling this show that companies need to brace themselves >> our customers, our markets help them in these times of uncertainty. on the other hand, make sure they have the right scenarios for continued growth, but also, for global slowdown.

ubs falls sharply after the swiss bank sees outflows from its wealth management business hit nearly $8 billion, citing market declines in the fourth quarter. >> the convergence of fears on the market, economic front, geopolitical, geoeconomic. think about brexit and everything that goes on in the world, which compounded with the seasonality factors, which started as a consequence of that disagreement in november washington looks to step up its case against huawei as it looks to extradite the ceo eriksson says it won't create a divide >> the economics will speak in favor of a global standard that's what's going to bring device prices down it's going to bring price of connectivity down on a global basis. that will benefit everyone the chairman of roush says

he is extremely cautious of mega m&a in the pharma sector, but tells this show it's always on in the cards >> it's always a consideration in individual companies to be taken. in our company we will be extremely cautious to go that way and is obviously also depending on the need you have hello, and welcome to "street signs" brought to you from the economic forum in the swiss alps today the global economy is slowing. the imf has downgraded its growth forecast for this and next year. the funds managing director christine lagarde kicked off her appearance at the event by raising the alarm about the impact of trade tensions also citeding slowing growth in europe, china, and emerging markets. meanwhile, pwc has released a survey showing ceos have become

a lot more pessimistic with one-third of corporate bosses having a more bearish outlook compared to just 5% last year. well, many of the leaders we have spoken to here already in daf yoes have warned about the impact of trade tensions >> the stacking up of inventory and resources. they've not prepared quite as much as larger companies >> we were not looking at the long-term risks, and these long-term risks have accumulated. this year has been particularly bad in the long-term risks in international trade. the absence of international cooperation, the absence of china, the u.s., the yueuropean union, japan to sit around the table for international trade, and that has created uncertainty, and uncertainty now

is having a real impact on the real economy >> we are increasingly in a geopolitical recession, and we've spent the last ten years very focused on the quantitative aspects of growth. now we've got to deal with the personality aspects of growth, and when you look around the world led by trump, led by the personalities of brexit, led by the personalities of china, and some of those things you've got the knew new right wing leader of brazil here you've got a lot of geopolitical variables that, as you know, are much more -- they're harder to evaluate a lot of geopolitical variables. that's for sure. among the key risks hanging over business sentiment right here at davos. jumana, i want to bring you in here i'm sure you are cozy and warm back in the studio in london it's quite frosty here, as you can tell, and it does seem the mood is much more chilly in

davos this year than what was described in sentiment last year so many of these risks to growth are potential risks. business leaders here are waiting for an outcome of the china-u.s. trade talks, of course, and whether or not that does result in a big breakthrough could once again see a big shift in sentiment >> it's interesting that you say that, and talking about the frosty environment, not just the frosty environment when it comes to the weather, but also frosty environment when it comes to the outlook as well, and i think a lot of that was encapsulated by this imf report that came out overnight, and i think specifically there, if you drill down to some of the details, i mean, the two things that they cited as one concerns about the trade outlook, the slowing growth environment, but the second thing is the slowdown that is coming from europe specifically, and here i just want to pick up on a couple of points, the first thing that has struck me was the fact that they kept their outlook for the u.k. ung changed. relative good news there for the u.k. for 2018-2019

most of the weakness cited in europe has come from germany and italy, and there you've got italy technically pretty much in a recession to negative quarters of growth. we just had the numbers out of germany as well looking ahead. italy is forecasted to grow at only 0.6% this year. germany at 1.3%. all of these at negative headwinds seem to be building up in the continent, and it's interesting that the imf are placing that right at the focus point of one of the reasons why we could see a global slowdown when it comes to the economic outlook here i think when we look at it from our angle, it is an interesting setup for the ecb on thursday where dragi continues to insist that they're balanced and not really tilted towards the down side, but it's at odds of what the imf are telling us >> yes, and given these forecasts you are wonderin whether or not mr. dragi's own forecast for rate hikes could be

a bit tweaked. i'm not sure we'll get any update in the meeting. of course, it's significant given that germany is the engine of growth for the water european bloc this also comes a year after europe anne growth momentum did slow across 2018 while the ecb ended its ultra loose monetary policy ceos at davos have somewhat differing views on the prospect for the economy. >> if we really get an economic slowdown in europe, i think the central banks and government from a monetary point of view have no ammunition to address it, so maybe there's a stimulus you can do to look to the u.s., but that's not very common i really hope that you will not really get into a problem because there are not many tools left >> the way forward for europe is to invest in competitiveness, digitalization and automation. they are keel pillars to drive in the future. europe anne competitiveness.

for us this is a very good market to be in. >> the leading countries, they are preoccupied with their own domestic things, like we definitely see that mrs. merkel who used to be leader of europe is now losing control probably to a certain extent, and there are many talks that she will step down later this year. well, for mow i'm pleased to say that i'm now joined by the ceo of ab and -- it's a pleasure to have you here in lovely davos. we've been talking quite a bit already about the concerns over europe's slowdown. very interesting the dsm ceo told me earlier this morning that he is worried that the ecb doesn't have a lot of ammunition for the next crisis. as a banker in europe, you've had to deal with low negative interest rates is this something that concerns you? >> well, definitely the low interest rates have helped in the beginning, but there is a moment in time, like you see in u.s. right now, that situation

should change, and as you know, the ecb is talking about it as well if there would be a new crisis today, indeed, they would not have a lot of ammunition, but i'm not overly pessimistic about the economy, but, you're right, at this moment in time it's all -- more or less. >> when you talk about not being overly pessimistic, do you think perhaps too much pessimism is hanging over markets, hanging over business sentiment today? >> it's quite gloomy compared to last year, and sometimes these things go from one end to another spectrum looking at the u.s., i think mr. trump, president trump, wants to be re-elected next year he will strike a deal somewhere down the road this year. china is deleveraging last year a lot, but they are putting a lot of effort now to have growth up again, and i think in europe last quarter was very bad. very much related to cars. 20% to 30% lower car production.

that i would say is not something i expect to continue this year. in that sense, i'm not -- lower growth, of course, this year, no doubt, but i'm not overly pessimistic in the sense of crisis >> what does this outlook mean for abn amro you have been positioning yourself away from international capital markets in light of all this headline risk out there that is effecting global risk sentiment. do you feel vindicated, or is there more work that needs to be done >> we're doing relatively well, but, of course, we are close to germany, so for it's a big exboarder. it's an important country that europe does well and germany does well. for our bank we have still the 10 to 13 returns we make during the crisis, even as a result with the low interest rates, we manage to deal with that >> you give investors a better idea of the dividend plan going forward then >> well, we're still 56% government-owned, so we have to

sell down further. the ministry of finance has to sell down further. indeed, dividends will be decided in the coming months >> are you optimistic you can sell down that stake further this year, and by how much >> well, the plan how much is something to decide at the ministry, but my hope and also actually my expectation is that we're going to further sell down in year. of course, if the stock exchange goes mad, then not, but that's not what i expect. >> speaking of government or perhaps more the central bank in your country, there's been more scrutiny around concerns about money laundering concerns after ing specifically that perhaps the sector is not doing enough are you confident that you are doing enough in this regard? >> well, we have around a bank of 20,000, 25,000 people 1,000 people are working on this we do our utmost it's always difficult with money laundering, but we do our utmost to look at all the transactions and look at all your clients because each issue license to operate we know that making money is nice, banking for better for the world is good, but if you lose your license to

operate, so you need to have this fixed >> let's talk about the other big political risk hanging over europe, and that is brexit some banks wrrks some multi-national operations have moved operations in your backyard does this make it more difficult when attracting talent >> no, it means you have to change your bank we find our strategy actually into the year for that with clients, with staff, to banking for better, and you know that millenials these days want to work for a company that does not only make money. that's very important. also, i.t. we're a bank we need a lot of i.t. advanced people 70% of my mortgages are sold on-line these days not via. skype conversation or what have you. we need those people in, and we do that also by modernizing our strategy as well >> given that brexit will have headwinds for the entire european block, sure it may be more concentrated in the u.k., but now that theresa may has presented this plan b going back to europe, trying to get more

concessions, i mean, would you like to see european leaders, including those in your own country, perhaps, give the u.k. a little more to come to resolution >> i would very much like the u.k. to stay in europe, so that's first secondly, i would say i don't think that europe is going to move a lot, to be honest i also don't expect a hard brexit deal as a result in u. couple of as well. i don't think there's a majority for that yeah, we get a bit stuck, i would say. stuck in, yeah, some postponements together perhaps within your referendum, i don't know i don't think that europe can do a lot here, to be honest >> are you still worried about a no deal? >> we have prepared ourselves for the worst. we have clearing and the bank. last year everything is fixed for that i don't expect it. >> all right we'll have to leave it there it's been a pleasure having you on the show, keith that is the ceo of abn amro. much more for you coming up here from davos, and up next we'll be

asking carlsburg chairman fleming beseckenbacher how tariffs are affecting one of the world's largest beer producers plus, we'll be joined by the ceo of infosys coming up in a little while, as well as takeshi and jean sebastian you certainly don't want to miss that plus, you can also follow cnbc international across social media platforms. be sure to head to our website cnbc.com for the very latest coverage from right here in davos. and global ceos are increasingly pessimistic about the global economy. this comes according to a pwc survey the survey by the firm shows that one-third of corporate bosses have a bearish outlook compared to just 5% last year. speaking of cnbc earlier, more

wits addressed the issues that global executives are facing >> if you look at last year, we had a record number of optimism and a record jump. we've had just the reverse this time when we've had that increase in pessimism, both in terms of the perspectives on the global economy, but equal in pornt importance and perhaps more so, am i able to raise revenues in the next 12 months >> well, for more i'm pleased to say that i'm joined by fleming bessenbacher great to see you on the show thank you for joining us today are you growing more pessimistic about the global outlook >> no, i'm actually very optimistic >> that's demonstrate. kbhas driving that optimism at a time where many are saying, look, the imf has downgraded its own growth forecast. the survey we were talking about from pwc more reporters are reporting pessimism. why are you to optimist being? >> if you look at carlsburg,th ceo doing very well. our financial numbers are improving quarter by quarter and year by year, and also, i'm

mainly here this year to discuss all the climate issues here at davos. i was yesterday on a board for leadership within circle economy, and that's one of the topics i'm discussing here, and actually, also in carlsberg, we are putting that high on our agenda a sustainability program in that respect circle economy is very integrated part of that. >> congratulations that is a big topic here at davos. the issue of sustainability. do you find that your peers, your competitors even in the industry, are taking as many steps as you are to confront this challenge, or would you like to see the private sector step up a bit more >> i honestly believe today that if you are running a business, there is one key that is very important. that's p for profit. i also believe that p for the burp, p for people, p for the planet i do not believe you can run a business in twenty-first century not having that integrated in your agenda. if i look, i'm also a scientist, and i look at the climate panel

reports discussing the difference between 1.5 degree and 2 degree i really do believe we have to stand up and take responsibility for that also. >> are you concerned that in this environment of growing political risks, additional challenges to thebusiness outlook, that perhaps things like climate change might take a back seat? does that worry you? >> i'm actually seeing here first in davos and at the u.n. general assembly and see more and more ceos. i'm coming from the committee of chairman where we're discussing this issue here, and i see more chairman stepping up and saying we have to take responsibility for this because this is really the long-term how to secure our business in the long-term. >> now, when you talk about the cost implications here, because sometimes leaders say, okay, we have to balance both, as you mentioned. profit and doing what's right for our customers, for the environment. i mean, overall what is your outlook for the cost environment going forward this year when you look at an expected rise in input costs? >> i really do believe in investing in -- in carlsburg, i have a foundation, which is one

of the main shareholders, and we are always focussing on the long-term at carlsberg here. we have to introduce different programs here. we have there's no water waste, and also, as you may have seen recently here, we are trying to cut down on the amount of plastic. previously we had the six-pack six cans in carlsberg wrapped in a lot of plastic that is now eliminated we're glug them together, and now we eliminate 60 million plastic bags here. that's an investment in the short-term, but it's good business for the long-term >> it does seem that there's been a sea change in awareness about plastics and just how harmful they are to the environment, to the oceans do you think more needs to be done, though, with the private and public sector working? >> absolutely. i'm also the deputy gm and danish inee vegass, and we announced a report how to reuse and recycle and up cycle plastic in our society i'm very worried about the plastic in our ocean, our land, and breaking down to microplastic ending up in fish

and so forth the forecast is saying if you're not doing anything, then in 2050 there will be as many plastic as fish in our mission e ocean. they're worried if they don't comply, the standards won't be the same as in developing countries like china china is making a big push in its own environmental agenda do you think they are making good on their promises >> i'm actually traveling a lot in china 14 china universities and also a member of the china academy of science, and i talk to china's leaders today, and they're well aware that they have paid a huge price for the environment, but they're investing heavily in that today actually, also talking about circle economy now they have an office in beijing with more than 500 people discussing circle economy. i actually see that they're stepping up tremendously >> on the issue of science, because i know you advise the china government on in that area

what do you see in their own advancements, their innovation is a big part of this competitive battle between the u.s. and china are they winning >> we'll see they're stepping up on the international ratings. i see many chinese who went to u.s. for -- now returning to china, bringing back all sorts of knowledge that they gained from the u.s. in doing that. i think also china now, they are focussing a lot of innovation on technology i think we have to haven aopen dialogue with china and have also collaboration with china. >> thank you for your time that is the chairman at carlsberg, and congratulations, again, on your award >> thank you very much >> after the break, we will be speaking to salil, the ceo and md of infosys and finding out how india's i.t. firms have been affected by the u.s. shutdown or if they have, and what the overall outlook is for the u.s. economy. stay with us for your heart...

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>> we announced results for the last quarter a few days ago. strong growth in the u.s., strong growth in financial services, across all of the sectors. of course, the work that's going on within the u.s. and the concern with the slowdown with the shutdown will result in some impact downstream if it's not addressed at one stage >> perhaps the concern is it's coming at a time where it's late stage growth in the united states people are worried that perhaps there won't be an instra structure plan because of the stalemate in washington. as it pertains to your business going forward, are you already seeing any wayning confidence from u.s. corporates, any dip in demand for your business services >> again, we not seen any dip in demand of course, this has been a long growth cycle.

>> do you there is a disconnect? >> it's difficult to say because in many ways the view is because it's gone on for so long, the expansion, it should come to some slowing, but when you talk to people, and especially on digital investments, we still see massive growth we had 30% growth in digital, and that's not something that's going to quickly disappear to zero in the coming years zhoo tell me more about what's happening in your home market because also part of that survey, they really mentioned that india was seen as a rising star for global companies looking for investment outside of their own countries have you been encouraged by the developments there any reason to be worried about a

pairback in reforms as we get closer to elections? >> the good news with the domestic market in india is the growth being sustained over the last several years at 7.4 to 7.8%, that's a strong growth on a fairly large economy now. the changes that are being put in place are all starting to support the growth especially the gsd, the goods and services stocks we had of course, the elections in the near future, but we don't see any change in the way the government is approaching business if anything, it will be more focused on making sure the business grows with the elections quickly done, i think the growth will continue on >> how are things at the company in terms of morale it was a very public feud between the former ceo, the founders, and that was made quite well known by people are you confident? do you feel better about morale today and the level of attrition? >> what we see now is we've got

a real focus with our clients in the market with that focus, clients are starting to see that we are more relevant for them. we've got good traction with clients. a lot of investment in digital a big move in reskilling our people all of those things are helping to calm things down. >>ing sir, it's been a pleasure having on you on show. thank you for your time. that is the ceo and md of infosys with me. still coming up here, we'll be speaking to takeshi, the ceo of suntory holdings how his business and japan more widely have been impacted in the u.s.-china trade war stay with cnbc ♪ hawaii is the first state in the u.s. to have a hundred percent renewable energy goal. if we don't make this move we're going to have changes in our environment, and have a negative impact to hawaii's economy. ♪

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busted. and the ability to make a thousand decisions before you even make one. was all this, really necessary? what do you think? ♪ welcome back to i street signs" life from davos i'm nancy hungerford >> and i'm jumani in lopd. here are your headlines. a sea of red across global stock markets as growth concerns top the list of key issues at

the world economic forum with the ceo of abb telling this show that companies need to brace themselves >> we need to stay close to our customers, our markets, help them in these times of uncertainty. on the other hand, make sure we have the right scenario in the drawer for continued growth, but also, for our global slowdown. >> it started as a consequence of that. it's been in november. washington looks set to step up its case against huawei as it readies its case to extradite the executive. the fall-out won't create a

technological divide >> the economics will speak in favor of a global standard that's what's going to bring device prices down it's going to bring he tells this show it's always on the cards. >> it's always a consideration of the individual companies to be taken in our company. we will be extreatmently cautious to go that way, and obviously, also depending on the need you have. >> well, u.s. markets were closed yesterday for trading for marte back foot we've got s&p seen opening up 14 points lower dow about 120 points lower as well triple digit losses. again, this plays into some of the negative sentiment witnessed

overnight in asian ek kwirkts and also at the beginning of the european session this morning. just switching over and talking about the price action already, we're about an hour and a half into the yurp even trading session. you can see all of the majors behind me are trading on the back foot this morning ftse is down about 18 points a quarter of a percentage point. as investors there come to terms with mrs. may's plan b some people are saying that it's too similar to plan a to really have made any significant difference to the initial proposal, which, of course, was voted down last week almost all of these are -- as the market comes to terms with the global growth concerns as nancy and i were just chatting early on in the show, partially on back of that imf updated world economic forecast where

they've cited down side risk from trade uncertainty and from europe as well here you can see that we aren't seeing a lot of movement, but euro is trading around that 113.60 mark. let's not forget it is a big week as well for europe. we've got the ecb meeting coming up at just in a couple of days time it's interesting to see whether the language changes there when it comes to the risk to the down side dollar yen seeing a bit of yen safe haven flow there. we're trading about .2% stronger 109.50 is the mark then cable hanging in around the 129 mark again, today we're playing on some of the inverse correlation. ftse trading weaker. the pound is trading a little bit firmer as the market digests the plan b, which is very similar to prime minister's plan a. all eyes on the next meaningful vote on january 29th one of the top stories as well that we've been looking at today in europe is that in the banking

sector shares in swiss bank ubs are lower today after reported nearly $8 billion in wealth management outflows during the fourth quarter, and it says lower invested assets will affect recurring revenues in that division. net profit grows 25% to 4.9 billion dollars in 2018. despite missing expectations on the fourth quarter the bank is now targeting a share buy back of up to $1 billion this year and raising its dividends. ubs sergio moti cited challenging market conditions in the final three months of the year >> it's quite extraordinary, and the big component of this negative performancewas coming from q4, so you had a convergence of fears on the macroeconomic front, geopolitical, geoeconomic. think about brexit, think about everything that goes on in the world which compounded with the

seasonality factors which started as a consequence of that basically in november. contributing to a very challenging market condition now, from our point of view i have to say that the strategy choices we made in the past and our diversified business makes allowed us to have a resilient quarter. we are up 2% year-on-year. still, you know, not diluting the very strong results we had in the first nine months >> if you look at the divisions the investment bank was clearly very weak. also, compared to u.s. peers what's -- why is that? >> well, if i look at the u.s. peers, actually work performance was up 14%, and everybody else was down double digits if i look at our returns for the year in the a.b., up 20% with a strong return on allocated capital, in this kind of environment we want our a.b. to not be dilutive to our french

allies and continue to serve clients and do what they did in an excellent way i'm very pleased with the outcome because it's exactly what we expect to do in such very tense and very challenging conditions >> chinese vice premier is due in washington d.c. next week as the u.s. and china look to diffuse trade tensions speaking to cnbc, business leaders have urged both sides to resolve their differences. >> what matters now is changing the two of them coming together to change the rules of international trade. it's not enough to buy from each other. if changing the rulings, so that the rules are made fair, and the rules aremade more in tune wit the digital realities of our world. >> there has not been once in the country in the last 200 years that has been successful protectionism. you can succeed alone. the problems of the world are so large that you only can do that with all of them together, and whoever dreams that if you get that control, you will lose

control. >> what we see now in the world is a lot of conflict between the different countries, between the different trade. in the area of trade, economy, and just conflict inside the country like we see the growing division in the united states, for example, and continuing conflict between the senate and congress and the president well, i'm pleased to say that i'm now joined by takeshi, ceo of suntury holdings. great to have you on the show. thank you for your time. the headline here continues to be really around the u.s.-china trade tensions and what that is doing to business confidence you have really been impacted by the u.s.-european trade tensions and the tariff front there just how much damage has that already done >> well, very close to $22 million, $25 million

we put a lot of inventory in before these sanctions started it's not the huge, huge impact yet, but we expect that we would get hard if this continues they have the weaker pound we decided to raise the prices and take price, but it's really hard for us to pursue a price hike >> is that challenge exacerbated by the fact that many are expecting comty prices to rise as well, and that will feed into input kotsds going higher? >> exactly for example, distribution costs are rising, and a lot of factors show we have to raise prices

however, consumer mind is i think weaker and weaker. considering the current momentum of consumption, we have to be very careful to take price >> when you consider your overall business, both in beverages and then the consumer packaged goods as well, what are you seeing in the way of consumer appetite, consumer spending is the same pessimism we're hearing from the sea suite level in stock markets as well trickling down into the consumer spending habits? >> well, take a look at aging population everywhere going on in japan even china i think there is a chance for us to go to the aging population always asking for health claim products we have this strong science to launch the health products, soft drink, and other products like supplement i think we can have a great

opportunity to affect the great news in the aging pop laegs. >> you've had concerns with europe and the tariffs there they've but on u.s. goods too. do you think -- are you confident that the bigger u.s.-tried ip china trade fight is nearing a resolution? >> that's a good question. well, because we are neighboring countries of china, i'm optimistic because both have the strong leadership, and japan has, as a matter of fact, playing a key role because japan is very close to now china i say the best time in now history in terms of relation with china, and, you know, our leader, prime minister, is very close to the administration, so we can work together to bridge between china and the u.s. in terms of alleviating the attention. >> do you think the relations, though, between the u.s. and japan were hurt in any way by the stance the u.s. took with

its own trade concerns with japan? there's still the threat of auto tariffs lingering there. would they have been better off had they gone to japan, first, and said let's work together on china? >> i think definitely it's with united states. it's apparent because of the national security. having said that, if you ask if there's too much global import to japan, i mean, export to japan, i think that would create the kind of bad momentum among japanese consumers we are working on resolving the issue of the trade deficit with the united states giving some other ideas, like agriculture. i think we don't want to be stuck in the middle, but leveraging the good relation with china, we have to talk with china so that china has to accept the global standard, such

as protection for the license and i pi i think they have to work on leveraging the grant, working with japan >> sir, i've got to ask you one question about corporate japan more broadly, because one of the biggest figures coming to in corporate japan carlos ghosn is absent this year many sitting outside of japan have noted what they consider the unusual legal circumstances around this case i think it's caught many business leaders outside of japan by surprise. do you worry that the incident, the ongoing legal case with nissan, that is, is any way giving corporate japan a bad name overseas? >> well, i thinkthere would be

more companies like nissan we have to upgrade its effectiveness of corporate governance of japan, such as we have to bring more independe unt for the members who take care of the compensation, and appointment of ceos. i have to say that we have to upgrade japan's corporate governance model would this be a welcome wakeup call >> that's right. because they didn't have the good level of the corporate governance though japan started to upgrade its corporate governance over six years ago, it's been progressing. we have to review. what is their importance its effectiveness? we tended to work on kind of

formality, we have to make it effective for shareholders coming up next, we'll look at how political uncertainty in the u.k. and europe is impacting the world's largest advertisers. we'll be live with jean-sebastian, the member of the economictive board at jcdecaux after this (client's voice) remember that degree you got in taxation?

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french president emmanuel macron is one of the most notable absentees. at home he has been plagued by weeks of unrest with the yellow vest movement morphing into a protest over his leadership. as his popularity rating sinks executives from several multi-national companies attended the gala where macron highlighted reforms aimed at wooing more foreign investment

in france. well, for more i'm pleased to say that i'm joined now by jean-sebastian who is a member of the executive board at jcdaceaux. >> essential there are no shortage of political risks skpvgs your company has a global footprint. let's talk about france first. i was covering the french elections when there was so much enthusiasm over emmanuel macron's promises to refor the purpose the economy and make quite difficult changes. he has obviously faced quite a lot of pushback here how much of a concern is this for you as a large employer in the country? >> i think as a global business, we are very clean on mr. macron's effort and program basically to change the pace of france the visibility of france basically, the measure that we have taken for the corporate world has been very positive and we felt it in our business,and with our clients in france at least we can say that basically it needs now to work on the second leg, and to make

progress on basically bringing people together and explaining to the little towns and part of the population in france that what he is doing for the big corporate businesses will at some point benefit and is necessary as well for the french population and as well for the people living in remote areas, which is hard for them to understand and to perceive how those changes and how -- what could be difficult to us will be for them as well >> the french political risk is just one element of what's happening more broadly speaking in europe. the imf seemds quite concerned about the european growth outlook. are you seeing any slowdown in terms of what you see advertising demand, coming from the corporates obviously, u.k. and brexit is an issue, and basically there is less uncertainty and more for

the environment which we work with it will have an impact, obviously. among all those issues, basically for the time being, we don't see any -- on our numbers and the pacing of the positive space, including in europe we have global challenges, but for the time being, we are facing as far as a basic concern. >> let's talk more about the u.s. i understand that asia, in fact, is a huge market for you now china, the largest market. the push has always been how can you become bigger in the united states are you optimistic you might be able to secure a deal this year when it comes to potential takeover of your u.s. firm >> thaur for the question. i think it's been an ongoing question for the last years. we always say we look at an

opportunity that could be a transforming opportunity for our business as well as for the industry our main competitor, which is the second largest group in the world, is big leverage probably the companion, which is the process will come to an end and the debt will be transformed into equities by the main today, which is the parent company. whether leverage of debt that is very acceptable and very reasonable reason why we are on a good position. the other opportunity that we are waiting for the next 24

months is out the second largest player in the states >> just quickly, you mentioned brazil being a key market. a lot of mixed pains around the scenario some people don't like the opinions he has expressed, but others are quite optimistic about the economic change. are you seeing any of that optimism from your business in brazil yet how it will be transformed into clear measures, and this is something to be seen in the next coming months. >> all right we look forward to the speech right here in davos. it's been a pleasure having on you on shot. thank you so much. jean-sebastian, member of the executive board at jcdacoux. well, speaking of, we were just talking about the brazilian president. he will be taking the stage later today.

he will look to sell his economic reform agenda to delegates here as well as attract foreign investment after brazil's bench mark index did hit record highs jumana, this is fascinating because you'll remember in the election, a lot of controversy over some of the comments, the rather un-pc comments that he said he earned a name tag as brazil's donald trump. i've been speaking to many people who live and work in brazil, and they have quite encouraged by the economy and the finance ministers tapping what he may bring in the world of economic reforms because, remember, this comes after so much frustration in brazil over corruption and what that has done to investment. >> i think he will actually

spell out to investors what they have to do one of the big pressing ieshsz right now in brazil is that of the bulging fiscal deficits at 8% debt to gdp is set to be almost 100% by 2022. they have to do something to bring the finances back in order. investors are certainly giving him the benefit of the doubt when it comes to the economic agenda with that, nancy, i guess we'll be catching up a little later. that wraps up "street signs" foot time being, doesn't it? ♪

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it is 5:00 a.m. here at cnbc is 1:00 a.m. here your top five at 5:00 sounding the alarm while global growth we are going to hear from the imf's managing director christine lagarde straight ahead. beijing blasting the u.s. on reports that washington will formally now seek extradition of huawei ceo we are live in china with the fall-out europe slapping google with a major fine over data privacy former nissan chairman carlos ghosn denied bail again in japan, and one of europe's biggest banks tumbling this morning after missing expectations we will run you through all the numbers on this tuesday, january 22nd, as