>> london. here are your headlines. >> u.s. lawmakers restart shutdown talks after rival bills to open the government fail in the senate .demands a down payment to fund his border wall. >> they sort of pay a prorated down palt for the wall, which i think people would agree that you need you need the wall.

the ceo of one of the world's largest steel distributors warns about a slowdown in the sector of the global trade tensions. >> automotive has slowed down last year, no doubt about in europe, also in the u.s. overall demand from industry is still good, and in europe and especially in north america. >> ericsson trades near the top after a smaller than 600 loss.

zbloinchts welcome to "street signs. i'm afraid it is more bad news coming out of the data front let me just repeat some of the major highlights from this report let's start off with the overall business climate that came in at 99.1 versus a forecast of 100.6. it's missed on the business climate. current conditions have come in at 104.3 that is versus a forecast of 104.2. pretty much in line with the forecast there current conditions are bang on expectations then this is the major surprise here the german ifo expectations index seems to me that a lot of the negative expression is being priced into the expectations part of this index the ifo have also just said now

that the german economy is experiencing a downturn. the december current conditions index was revised upwards, however, but overall, the german economy is experiencing a downturn, and i think the question on many people's minds is how severe is this downturn, and how long is it going to last for, and it's interesting that this is coming on the back of this he ecb conference we had yesterday. we spent a lot of time analyzing some of the language that came out of president draghi at the conference, and one of the key elements of yesterday's afternoon statements was the fact that he emphasized there are downside risks to the overall euro zone economy. don't forget that yesterday we also had pmi numbers coming out of europe. the composite pmi numbers now tracking a gdp of .5%. this is persistently below the ecb's own forecast, and a lot of that weakness seems to be coming from italy and germany as we're finding out this morning

we saw weakness on the manufacturing side, and it will be interesting to see whether or not there's a disparity there and whether or not that's going to continue. we'll be speaking shortly, in a little bit, to a representative from the ifo i want to get out to nancy because, nancy, i mean, a lot of the chat in davos here hasn't been about this global growth slowdown, and the information that has come out of europe this week has been very, very negative to that effect. even earlier on in the week, the imf, worry seeing that there are two major sources of worry right here that are china and also euro zone. these numbers are really not helping. >> well, that's right. you can say they are closely connected as well. i mean, when the if, the downgrade its global growth forecast, they, too, highlighted concerns around germany and the auto sector here of course, the auto sector is very much front and center as part of this trade tension with china, but i think you bring up an excellent point

the data we're seeing now really flagged europe as an area of concern. interesting on this business morale falling in january because what we've been talking about so often here with the leaders is the idea of the pessimism out there, but they're not always seeing it in the corporate fundamentals today the question does become when will that pessimism, the fear of what could come, manifest itself in the fundamentals. if we start to continue to see that in corporate earnings, i think that's going to raise concerns among leaders >> as you say, i mean, looking at the numbers here,the ifo expectations seem to be the big miss current climate came in line with expectations. people probably have come around to the view that perhaps the q3 blip we had in the german data was just that. it was a blip because of the auto effect. all eye on that q4 transfer in germany hasn't come out yet. we do have an overall picture for 2018, though that came in at 1.7% earlier today there was an article talking about that

there's a possibility the german finance ministry will be lowering their forecast for german gdp to as low as 1% for this year. that is a big, big drop from 2018, 2017, of course, down to this 1% level. obviously, below potential growth there obviously has -- we had started to see a little bit of wage pressure emerge in germany the question is whether or not that can be sustained when there is so much forward-looking pessimism being priced into some of the data. certainly this ifo number is disappointing, and it's the second day of disappointing data we've had in europe. it's something that draghi obviously referred to quite extensively yesterday. i'm happy to say the president of the ifo institute is with us. sir, you probably just heard me giving an overview of some of the numbers that came out. it seems to me that the most alarming element that came out of the ifo numbers this morning

are those of the expectations. can you tell us more about what's going on there? >> yes, that's correct most companies say the current situation has deteriorated a little, but the method change is really in expectations or companies are increasingly worried. they are worried about brexit, of course, about the apparent inability of the political leadership to make sure that there will be no heard break the 29th of march is economy in italy, spain, france, and all of that leads to increasing pessimism. zoo said u.s. shutdown, the protest, you said italy. all l factors. what's going on within germany domestically as well >> so the domestic economy is relatively strong. we will have a record level of employment wages are growing at increasing

rates. consumption demand is strong germany has exposed reliance on exports. that's why its difficult in the world economy. this time it's really coming from the outside construction, for instance, continues to be strong the index decline this time. it's a very high level, so the difficultiesare really coming from the outside mostly. >> what are the reasons cited for the weak rns in q3 data in germany was that of the auto sales effect, and many people are saying that is a temporary effect and a temporary headwind that will -- is expected to subside. even mr. draghi talked about that yesterday is that your expectation as well that some of the weakness we had towards the end of last year in the auto sector will prove temporary? >> the question is how strong will the rebound be?

this is a anst we think there is an underlying trend towards declining demand for cars that is a structural problem for. there is a diesel issue which shows domestic decline it's going down, and we don't think the rebound will be as strong as expected by others we think there's an underlying problem in the car industry, and given jerl anne's strong emphasis on this industry, we have a challenge for the future here >> certainly something we'll be watching very closely. the president of the ifo institute, thank you for taking the time to speak to us today and to digest some of the numbers that just came out now president trump has discussed alternative funding methods for his border wall overnight, including "a sort prorated down payment. now, that's after the senate did block two bills that who have reopened the government and started fresh talks aimed at

finding a solution to the shutdown well, speaking in the cabinet room, trump insisted he had options. >> a meeting to see if they could work out something maybe on a temporary basis where we start we have a lot of alternatives here a lot of people that want this to happen. >> as the shutdown enters day 35 now, many furlowed federal workers will miss their second paycheck today commerce secretary wilbur ross was heavily criticized for suggesting in a cnbc interview that they take out loans >> the banks and the credit unions should be making credit available to them. when you think about it, these are basically government guaranteed loans because the government has committed these folks will get their back pay once this whole thing gets settled down there really is not a good excuse why there really should be a liquidity crisis. now, true, the people might have to pay a little bit of interest,

but the idea that it's paycheck or zero is not a really valid idea >> still to come here on the program, we'll be speaking to phosagro ceo, andrey jeff puts his davos audience and mark concerny on the spot about his second brexit referendum >> it is a bit of a tradition in this particular panel or it has been since george osborne was here in 2016, i think, to ask the audience, actually, to vote on brexit. i think there's no point in asking you whether the brits should be in or out because i think we've done that one, but maybe i could ask you a slightly different question there is a clamber here, i hear, for there to be a second referendum in the u.k. could i just maybe put this to an audience vote do you think there should be a second referendum in the u.k.

now that the brits have had a chance to see what this now means? put your hand up if you think there should be? >> you're not voting on this one, mark? >> i can assure you. >> put your hand up if you don't think there should be a second referendum okay i think it's pretty clear that the rumoom as a whole feel the brits should have another chance to vote on this. obviously, this process is winding forward, and we'll see what happens over the course of next week, which brings me to mark carney, the governor of the bank of england. ♪ (vo) here's a question. was it necessary to create a luxury car more teched out than silicon valley? with a cockpit fit for aspaceship. hang on. radar that senses things the human eye can't. busted.

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it's bring your own phone, not pony. so i could have taken the bus? yeah. bring your phone. switch your carrier. save hundreds a year with xfinity mobile. plus get $100 back when you bring in an eligible phone. call, click or visit a store today. isauto. welcome back it's harder for russia to find partners according to vtv president and chairman russian firms including vtb have been placed on a u.k., ukraine related sanctions list kostin said moscow should not expect a new strategy over the

next two years >> i've heard the opinion from american, for example, that we shouldn't expect for the next two years any change of heart on part of the american administration or american congress regarding russia or china. i'm afraid we have a couple of years ahead when we'll not number a position to change very much this trend. >> for more on the business environment in russia, i'm pleased to say i'm joined by andre, ceo of phosagro we will get into the details of what you are seeing in the fertilizer market, but given what andrey was saying, he doesn't think the strategy from the u.s. will change any time soon how worried are you when it comes to the per acceptings around russian corporates in general? >> i'm not sure what -- i read that somebody has speculated that we have already 62 or 64 different sanctions for putin's

russia basically lots of russian corporates thinks about it more rett orricly i think it's also the last five years have given a huge impulse for cost of production make it more efficient like we doubled on size. today it's one of the most profitable in my industry. the lowest cash cost producer. look what had happened with russian. today we focus on sales and so on the rest is several perceptions. particularly on some financial sanctions. >> sakes forced the russian agriculture system to expand and develop.

>> it's everything just to improve the rate, the efficiency >> if he is right, though, that he could be looking at another two years of these sanctions on the country in various companies, i mean, what does that mean in the way of looking outside? i mean, if you do want to expand internationally as i know you do, where do you see the biggest growth coming from >> first of all, as a company, we sell -- and, of course, for us there are three major markets. the first is growing domestic market, which is, like, really booming. taking into account that the russians should be becoming more and more efficient and growing on the size. >> that's the places where we continue to grow under the united states today we sell almost a million ton of fertilizer into united states, which is a great rate

agriculture country as well. the places where we want to be closer with our partners, with our corporateors, whether to find a distribution, some alliance >> you mentioned brazil being a strong area of growth. do you think you've seen increased growth there because of how china has had to divert some of their demand going to brazil as opposed to the u.s. for things like soy beans? >> yeah, it's a very good question about the soy bone. soybean was -- you get impulse from brazil and pharma just to by more, and this year was fantastic for them for one side of the currency, from outside it's a good price for soft commodities that's the impact of the trade wars that had started between china and the united states. >> i think this year we already

see a slowdown on the economy. you already see it in china and europe anyway. the states i don't believe that -- it's at five, i think, we already. >> can you give us a better idea of how the china market fertilizer is impacting markets globally. >> they're a great producer of fertilizer we used to compete with them particularly in areas like phosphate, fertilizer. since they have a a new five-year plan to implement on a spread action, he see that they shut down several nitrogen plants there's less and less volumes available in export markets. everybody has to keep up, like, with the proper sustainable

factories. >> yep >> i believe it's already brought an effect on the market. we have a good third quarter i believe we will have fantastic fourth quarter, which is 2019, and i'm quite sure about 2019. i believe they're doing a really good job >> despite the global slowdown andrey, thank you very much. ceo of phosagro. the risk of recession has loomed large over the world economic forum in davos, and jeff asked financial heavyweights how they think the system needs to be future-proofed to avoid another recession or crisis. they were quite quick todwrae that central banks were not the solution >> i think some of them are going to let mark discuss, a

and -- this is the time also to take the bittermedicine. how to bring through some reforms at least that are necessary. >> it is one of the few central bankers who have a little bit of space, and i would agree with sergio it would be very nice if the economies at large didn't have to rely on the central banks yet again in order to resist the next shop, which is why i think that policymakers have to really take the right cause affection when it comes to fiscal policies and it comes to completing the reforms that some of them have undertaken, but that some of them have only just touched. >> global potential was north of four, and in some respects even four and a half. that difference is not because of central bank policies

>> almost forced to address, of course, bres brexit. he told jeff recent data has born out central bank's earlier forecast that the leave vote would harm britain's economy currently added that the bank of england has been making preparings for a disorderly exit from the e.u. ever since then. >> gdp down by 8%. commercial real estate down by 50%. house prices down by one-third interest rates have to go up unemployment goes up to almost 9% to make sure that the banks have spent the last few years putting themselves in a position with enough capital to absorb those losses that would come with that situation.

>> founding partner of libras investments, who will stay with me the rest of the show. i want to start off talking about u.k., obviously. many people come to the show and talk about the valuation opportunity in the u.k. visa vi other equity indexes not many people want to pull the trigger. where do you stand on the debate >> i stand on the not many people want to pull the trigger on that debate, and i with totally concur with that when markets were become sort of completely dislocated. you get opportunities such as that people i spoke to, not only have you got to wait until the vote takes place, but there's a response to stocks as a consequence.

currency marks have taken the view that it's lessened after the succession of the government defeats a couple of weeks ago. that is the view on the currency markets. we have sterling trading close to 131 now investors in that space seem to be buying into the story that we will somehow get to a positive outcome. why is that not the case in equity space why are equity investors so reluctant to get involved? >> i don't know. i think currency markets are more speculative the time horizon can be significantly shorter. the liquid widthty can be greater. i think there are opportunities in the short-term for short-term traders, but, you know, you have to bear in mind these are tak g taking -- you have single stocks that you look at is there any stock that you won't actually consider getting involved in in the u.k. here

>> i think that currently -- i mean, the sell-off that we saw in some of the tech stocks are in the presented opportunities we specifically sort of recommend buying into microfocus sage was another one we are talking about u.k. names. >> u. kmt for now. >> just in terms of u.k. names that was an opportunity one could take subsequently they rallied, and there was the take-over that you have seen. there's more defense e sectors now are looking pretty interesting too. diago would be a name to talk about. >> interesting you are taking the view on a global sector, say, a tech or mining sector and then expressing opposition in u.k. where i guess it's a little bit more attractive. >> yeah. >> all right okay you are staying with me, rob

also, coming up on the break dutch prime minister mark forecasts how euro's populist will fair in the upcoming e.u. elections. stay with us we'll be right back.

welcome back to "street signs" live from davos for the final day. >> here are your headlines u.s. lawmakers row start shutdown talks after rival bills to open the government fail in the senate as president trump demands a down payment to fund his border wall. >> one of the ideas suggested is they open it and pay sort of a pro rated down payment for the wall, which i think people would agree that you need. you need the wall. >> european and asian stocks rise despite trade fears as bill yn air george soros tells an audience that the u.s. and china are engaged in a cold war, branding the cheebz chinese president as dangerous to free

society. >> autos leading gains in europe for the ceo of one of the world's largest steel distributors warns about a slowdown in the sector amid global trade tensions >> automotive has sloan down last year. no doubt about europe also in the u.s., skps that overall demand from industry still good. >> ericsson jumps after reporting a less than -- its 5g are-out accelerates.

snoo the dow ended up with other indexes trading higher a big part of the boost came out of the tech sector there at nasdaq that was the main performer. with some of the semiconductors up 5% in yesterday's trading today the mood is pretty positive as well we've got s&p seen opening up eight points higher. dow seen opening up about 75 points higher. in terms of data to watch out for in the u.s. today, obviously we do get more earnings, but you also want to watch out for the durable orders that comes out at 1:30 as well as some of the export numbers as well that is a picture for the u.s. i want to talk about europe, though, and turn your attention there. let's start off by looking at the ftse 100 we're trading up about 21 points higher one-third of a percentage point higher here there's a little bit of optimism being priced in in both equity markets and sterling. i'll get to effects in a second after the sun newspaper reported that the dup are allegedly thinking about throwing their weight behind mrs. may's plan b so long as it includes a timestamped backstop for the

irish backstop we'll have to see how the discussions go that meaningful vote is scheduled for next tuesday all eye on that. that is the picture for ftse 100. in europe, big jump for dax today. 130 points again, this despite some of the weakness we've had on the macroside. we had very disappointing ifo numbers. we had disappointing pmi numbers yesterday krs the board. the tone that came out of the ecb meeting was one of further negativity, dovishness mr. draghi exleft every pliftly expressed some of the down side risk there, and, yet, yourp even equities seem to be doing okay that has been the reaction you can see also ftse mib enjoying some of the rally as up with up .6% let's also talk about some of the price action in euros and currencies as well

since then you sort of held the ground and we're trading .2% firmer versus the dollar here. 113.30 seems to be the mark, and europe has been holding at a tight range. 113, 140 you want to talk about sterling here a bit of positivity being priced in in both equity space and in currency space as well. right here we've had the chance to talk to a number of finance ministers about growing political risks this week. the views are mixed. >> part of this growth is coming from increased internationalization of spanish businesses they have been very dynamic and competitive. they have found and grown in international markets. indeed, the spanish economy is

more open. we cannot be isolated from developments in europe and elsewhere. >> i think we are insufficiently prepared for the next crisis there is much more that the countries in the euro zone and the country as a whole need to do to be prepared for the next crisis on a national level, so making they balance the budgets and push through reforms, and also at the european level, there is more we need to do >> the brexit, if it is uncontrolled, could have some impact the u.k. is the fourth largest trading partner, and the first customer for service is particularly tour i feel >> pop lichl is a big theme that has dominated davos once again this year. jeff did catch up with dutch prime minister mark and asked him to forecast just how

populist parties will fair in european elections coming up in may. >> the problem is the turnout is low. it will be difficult to use debt as a measurement of the popularity of the extreme left or the extreme -- or the he extreme right. the populist parties >> i think we will across the board see some gains being made by the more populist parties, but i still think, and i have tremendous trust in the judgment of the voters and the people in europe that most people will still vote for parties who are really trying to explain that it is all about tradeoffs and that you cannot do everything you cannot have lower prices and higher wages have you to do everything at the same time.

>> many people look at the organization of nato and on the commission, and they're angry about that as i read you on this, you said dutch approximate white wine sipping elite who have criticized u.s. president donald trump should recognize that there are actually some arrows in the number of the international organizations and the way they operate that's quite a swipe at a constituency in europe that maybe doesn't agree with that perspective. >> we don't -- the united states has voted, and trump is the president, and maybe he will be re-elected, so that is the given. i think he is an opportunity to milwaukee changes to some of the organizations with whom we hold dealer the wto is not -- many issues to solve in the u.n take the european union. many issue to solve. my point would be instead of thinking, oh, we would have

liked hillary clinton to win or if obama was still there well, guys, trump is president make use of his presidency and his critique of the international organizations is d >> the wto is in a spot. the way it is dealing with trade dispute, of course, the u.s. itself has some responsibility for that they have to appoint certain people in certain boetsz bodies. there's a lot we need to do, and if we could get donald trump on board in saying, hey, we are not fighting you on multilateralism. let's forget that debate whether you are pro or against multi-lateralism we are interconnected in this world. let's make sure that the organizations deliver for the people >> and speaking of yurp even plekz, france's yellow vests are launching a european election birth bid.

the movement has named ten candidates for the parliamentary elections in may, and plans to expand the list to 79. it follows op sfwligs from italian prime minister who has called on voters to reject macron's party >> we see a decrease of demonstrations you have today the group it's 50,000 people it's want big, but i think fumgtsly we cannot accept that 50,000 people could put into question the democratic institution of the country >> what we see in france is this opposition between preparing the future, continuing the reform, and people who are talking about the daily issues, and i think it was summarizing the sentence,

which i think is interesting the president is portraiting the future and talking about the end of the world we have to talk about the end of the month. >> we are actually worried i think when it comes to economic policy, at least, it has not shown to be very performance. we have to stay away from that kind of approach. ga. >> the spanish pop lichl generally is using the balanced approach >> karen caught up with france's labor minister for an exclusive interview last night and asking. >> we all regret the decision,

but that's freedom of democracy to leave european union. i think we see more and more it's a lose-lose situation where british people will lose and europe also maybe less >> we are getting jobs after that, that, of course, we are getting job a lot. >> the protesting and there is an uncertainty in france >> when you see the asset of france access to human capital, high qualification, tax credit, tax credit for research, infrastructure the asset has not changed the last two months. and the way i think we handle things, we have discussed a lot of that. a few days ago the president macron gather 150 investors, in versailles, and the tonality was it's a difficulty, but it's taking into account the question of the opinion of the people, and the reform will go on, and

the asset of france are always there. they have not been destroyed i'm quite confident that this will not -- will not get a problem. >> okay. the founding partner of lieber investment services is still with me. rob, i want totalk about markets, and just looking at the year-to-date performance for some of the european equities, we've got stocks up 55%. dax up 50% all of the indexes are starting off the year well despite the negative macrodata we've got going on in the back drop. the growth back drop is definitely slowing, and that european equities seem to be doing just fine. what do you make of that >> i think it depends on where you start and where we started at the beginning of this year, where we start at the end of this year. that was the last time i was on. you know, i had a chart there, which showed where the market was trading in relation to what we call intrinsic value, which is sort of future value. at that moment in time across

allthe indexes, major indexes across the globe, you had effectively a free call. now, people actually didn't take that opportunity you only have to imagine how much fear was being priced in. now as things -- they've come back into the beginning of this year that's a hell of a gap to make up that is a -- that was essentially a free option. yes, they've moved you have to remember the extent of the degree to which risk was being priced in in the first place. >> it's also being dragged along with other markets as well again, i mean, i've noticed this just from doing the market and the market coverage every single day. on days when china has done well, nine times out of ten you're going to see german index up as well there's that very, very strong beat because of the export effect, because of demand effect the past couple of days we've seen a bit of a bounce in the tech sector in the u.s do you think there are good opportunities in the european tech sector as well? is there still value there >> i think there is. we've had a couple of tech

stocks within our sort of best ideas list ams and st micro sd micro, we have a policy of not owning stocks over results that's a policy we have. you can see that, again, the level of des appointment that is priced in, if companies expect expectations, those are the moves you can have you can close that value gap >> isn't that just a little bit of luck as well in the sense that the past couple of weeks the macronarrative has changed, and we know that the tone at least between the two sides between china and u.s. save for wilbur ross's comments yesterday, has been a little warmer, and we know that the vice premier is heading to the u.s. at the end of this month to engage in talks. i mean, you can't invest in these chipmakers stocks with global supply chains without taking into consideration the u.s.-china narrative

>> do you think about hedging that >> i think you can invest at certain times. that level of uncertainty becomes so great i think investing with a view to a positive outcome on that is probably a little fool-hardy nobody knows i think you just have to take your opportunities and recognize kbh you are trading a value extreme. i think if you have good companies, you can be buying >> we'll talk about the companies. also coming up in the program, find out why some of the market's biggest players at davos are upbeat despite lingering slowdown fears he u.s.

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cirquesson has -- adding

that it is on track to reach its financial targets. sales for the period also increased by 10% beating expectations the swedish telecom firm said it waejed on quarters, but it will help to strengthen the business and a long-term. vodafone shares are trending lower after a weaker than expected third quarter they cited price competition in spain and italy as well as the slowdown in south africa the world's second biggest mobile firm, however, said customer trends are improving and backed et cetera full year guidance >> the u.s. is trying to contain china's rise as extremely unfair and very politically motived trade war tactics. they said that trade tensions have fueled anti-china

sentiment. market volatility and global growth concerns have been key topics right here in davos all week we have been speaking with market players who remain quite bullish, though, about the global economy >> one level the economy is rocking. we have more good growth we'll have more good growth this year, and, of course, you've got, you know, the mitigation of that growth against brexit, the trade war, foreign exchange issues, rates. that's on people's mind. it is not dominant >> my view on the u.s. economy has always been a very long-term view, and you know the u.s. economy has always gone through periods where there have been naysayers talking about imminent erosion of the economy having studied in the u.s. and lived there for a while, i have seen firsthand the quality of resilience america always manages somehow

to pick itself up, dust itself off, and get back on the road. >> not everyone agrees,though. others are more pessimistic warning of more trouble ahead. >> certainly we're in a worse place than a year ago. even though economist -- the supreme courts are telling us something completely different they are a good forward indicator. >> there's a feeling abroad that the stock market might be due for some deflating where, now, obviously, it's been a long time, and we've seen some hints of it. we haven't seen the real deflation yet. and the economy as well.

>> rob, founding partner from lieber investment services still with me, and there's been a lot of talk about the growth slowdown you and i were just talking about that as well in the context of europe and the fact that the data has been slowing, you said to me that you will look for opportunities that would provide steady growth rather than exciting growth. tell us a little bit more about what you are looking at in europe >> i think that would be on the basis that you've got to be investing in equities. i think if you didn't have to be -- you didn't have to be investing in equities and came into this year, and people said to me, you know, should i be buying the answer is, well, do you have to not at this stage. i think -- on the basis that one has to, you would be coming back, i think, and looking for as steady growth as you can get, and there's a reason why the lower beater sectors, the health care, food and beverage, and then we're seeing the telecom

resurgence as well these have come back into vote not very recently because there's been a rotation, and it's excessively cheap. >> interest rates sht going anywhere neither is european growth that's not good. from the work we do, which is, you know, we look at analyst expectations, data, and we create a fair value from that. okay the work that we do has seen european markets, and those sectors be derated over the past year that's the back drop can you invest in those sectors on that basis? no, you can't. again, they got excessively cheap. some people in the auto sectors last time i hear, people are talking about pes of five kprks they're exceptionally cheap. we would have said so too in

relation to where the value was at the time. there should have been a rotation into higher data. it was a trade that's all it was. >> right >> you know, some of the other lower beater stocks maybe have got too expensive. >> robert, it's nancy here in davos, the world economic forum. i do wonder, though, if there are risks out there to getting too defensive. we have talked a lot about pessimism here at the conference, but it's coming from a very high base many of the ceos we've been speaking to say, sure, things are slowing. sure, we're less confident there's little grounds to be getting optimistic, and there's obviously the pack robach drop that we were talking about just now, and i'm not an expert on

that actually, what it comes down to is, again, this idea of where is future value here? what is happening? what are the trends? i just say this point in time, there isn't sufficient alpha available to investors in european equities. maybe not in u.s. equities at all, to actually justify or be optimistic about buying for the future >> just last year, obviously, there was a big -- it was a big year for share buybacks in the u.s. because of the tax cuts that were introduced at the beginning of the year that impacted many stock returns. this year in europe we're hearing more and more companies actually go down the share buyback route. they want to reward their investors somehow. are there any means that jump out to you when it comes to the steady income that you get from potential share buybacks >> there's a lot of stocks out there. you know, with paying

substantial dividends, and some of the teleco stocks a lot of those telecom stocks. european telecom stocks and utility stocks and food and beverage there's 5%, 6%, 7% yields. >> thank you very much for staying with me for this almost full hour. founding partner of libra investment services. thank you for joining us >> our final day of coverage from davos r ews forward to seeing you and ouvierin london for a few days next week have a great week. zroo bye-bye thank you for watching for aspaceship. kpit fit hang on. radar that senses things the human eye can't. busted. and the ability to make a thousand decisions before you even make one. was all this, really necessary? what do you think? ♪

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>> it's 5:00 a.m cnbc global headquarters 5:00 a.m. also in the nation's capital where some 800,000 federal workers are waking up this morning without another paycheck frustration growing. the government shutdown now in its 35th day we are live in washington. whether there is any impasse that is going to break is straight ahead breaking news out of venezuela the state department ordering all non-emergency personnel out of the country political tensions on the rise we have got the latest on this rapidly unfolding situation. intel shares are down big this morning, and it has a lot to do with china we'll explain. big banks headed to the hill o