welcome to "street signs." >> these are your headlines. european equity markets follow asia higher on optimism the u.s. and china will reach a trade agreement after president trump said he could extend the t deadline for a deal. >> if we're close to a deal where we think we can make a real deal and it's going to get done, i could see myself letting that slide for a little while. generally speak, i'm not inclined to do that

it was let slip that theresa may could let m -- the prime minister says an agreement can be reached >> talks are at a crucial stage, and we all need to hold to get these changes this house requires and deliver brexit on time >> ab and amro share -- follows a 40% decline. clifford abraham tells cnbc his bank is resilient to volatility. >> when markets are down, we'll make a little less money in the private bank, but also skrol volatility is good for other parts of our bank, like our clearing business. we're fairly resilient to the volatile markets

it's that time of the month. the iea report, the oil report is out >> there's been a lot of focus on this from the investor community when thinking about the demand outlook in the future they have kept it at 1.4 million barrels a day. that is it for the demand side i think the interesting story here is on the supply side of things bhaets interesting is that they're saying that global supply of oil production has dropped to the tune of 1.4 million barrels per day. of course, a lot of that was on the back of the job and opec trucks u production. according can to the iea number opec is now at a four-year low it's dropped 930,000 barrel az day. close to one million barrels per day.

a big chink is obviously coming from opec and opec plus. the biggest countries that have dropped production are saudi arabia, kuwait, and the uae. not a big case for russia. not a big surprise, but there you have it. it's in the data that was released a couple of minutes ago. the overall supply forecast for the year is an increase of 12.8 million barrels a day. even though opec are cutting, we got evidence this morning that opec have been cutting to the tune of one mule barrels a day the outlook is a rot lot bigger to the tune of 1.8 million barrels a day bays of the extra supply that is coming out of the united states. that puts all of the picture together, and can you see that we're seeing a bit of an uptick in the price of oil this morning. we have crude trading up about 1% on the news it's up 1% as well we were trading up half a percent just before the iea

reports came out remember yesterday they had the report come out as well. they voted for the significant reduction on the poke side of things, but also they cut their demand outlook yesterday the opec did iea did not cut the demand outlook. here's the uptick we're seeing in the price of oil this morning. up 1% or so. still, a far cry from where we were back at october levels last year i want to get out it neil atkinson, the head of the oil market division at iea i want to get straight to the main point, which is the fact that you point out today that opec supply now is at a four-year low. we've dropped about 930,000 barrels per day. why do you think we're not seeing a bigger jump in prices >> well, although the opec output level has gone down quite dramatically, as you suggested, in saudi arabia so

what we see on the other side of the balance is that the supply in the united states is growing very strongly, and it seems to be growing a little more strongly than we thought just a few months ago the non-opec countries led by the united states are going up >> now, i want to talk to you about your comments on venezuela. you say that the u.s. sanctions on venezuela may create problems for crude quality, not quantity. the fall until exports from venezuela to the united states isn't a big issue. stocks have been rising globally, and there is plenty of spare production capacity out there. the quality of crude does matter because the crude oil from venezuela is relatively heavy, but we're also seeing reduction in supply of other heavier recruits from iran, example, because of sanctions.

we're seeing lower output from canada because fortunate steps taken by the governor of alberta, and most of the leading opec producers that have cut production significantly recently -- you mentioned saudi arabia and the uae and kuwait, they are also producers of predominantly heavier recruits within the overall crude balance we're seeing a fall in supply of heavier style recruits, and that has led to increases in prices for those kruds relative to the lighter crudes there is some action going on within the overall balance as we say, the quality of crude matters as much as the quantity. >> just to peck up as a quick follow-up to that, are you expecting then the wedge in the price divergence between the heavier forms of crude and lighter crude? >> if supply from opec does continue to go down and there is -- there are actual fall-offs in shipments of production from

venezuela, then it is possible that that change in the relationship we've seen recently will continue. we need to see how the venezuelan sanctions do play out, what happens with iran in the next few months, and the attitude of other opec producers. we're just pointing this out as a key factor that is in the market right now, and it's something we're watching very closely in the future. >> i want to mention compliance from the opec members stood at 86%. from non-opec members it was just 25% that's quite worrying, isn't it, moving ahead for 20 19d? they did say they would not be implementing production cuts in full immediately they would be moving towards their target during the period covered by the deal.

we mist wait and see whether the new compliance rate is low, whether that compliance rate does, in fact, improve in new data >> i want to ask you about the demand side of things, and this is the second month in a row you haven't changed your global demand outlook a bit surprise, especially in light of yesterday we saw opec adjust their demand outlook a little lower. >> how come your global dough manned is so sticky? >> it's not that different from the opec growth number when you look at the actual numbers the point we make is very simple in 2018 in the second half of the year when oil prices rose quite dramatically, many developing countries found very high dollar prices also, made more expensive in local terms by the depreciation

of their currencies. what we've seen since october is crude oil prices falling all the way from 86 in october down to 50 at christmas time and they've increased to around about 60 now. there's less visibility on future interest rate rises in the u.s., so the pressure from a stronger dollar is less than it was. developing countries, such as china and india, are feeling less headwinds than was the case in the later part of 2018. the other side of the balance you point out there are signs of weakness you mention those german numbers. we're certainly watching that. even in other parts of the developed world, the united states, which is the biggest single market in the world, has seen very resilient growth in 2018, and it's still going to be growing fairly strongly in 2019.

for the time being, we're sticking with the growth number, and, of course, we're watching the economic headwinds, watching the news we were hearing president trump talking about the china negotiations a few moments ago we're watching all of those things, and when the facts change, then so will our analysis >> thank you very much for that, and hopefully you're watching your news on cnbc. that is neil atkinson, the head of oil industry market division with the latest iea monthly report let's go over some of the market price action. yesterday we had a firm equity session. markets were up between 1.3% to 1.5% as we talked about, a lot more optimism when it comes to u.s.-sclooin trade discussions there. president trump seemed open to the possibility of perhaps extending that march 1 dead looirn we'll see what comes out of that a lot more discussions overnight about the shutdown, possibility of it being averted. unclear at this point generally speaking, though, it has been a very good session for asian equities as well we have the msci at a four-month

high stock euro 600, that is a picture up .4% we've also had a bufrm of earnings come out today as well. let's get into the individual forces the picture is green across the board. starting with ftse 100 we're up about 30 points about half a percentage point higher lots of political developments in half hour we will get the cpi number just on the political side of things, i want to point out that labour have now officially in the last 20, 15 minutes or so have officially endorsed this cooper amendment which would essentially remove the possibility of a no deal brexit if that does come to happen and if and when there is a vote on that, that could potentially be a possible impetus for the market we're keeping an eye on that cac up as well ftse, the italian index, also having a somewhat positive start to the day as well switching to the sectors, and let's check out the leaderboard here right up at the top we have good

interesting out of axle noble at the dutch paint maker. some interesting comments there. juliana was just tweeting about it i think their guidance when it comes to raw material costs is quite interesting. they said that they're expecting some of the inflationary cost pressures to subside axo-noble is one of the leaders in that pack this morning. basic resources also in line with some of the chinese equities also having a good day household goods up .7% on the down side, we've got the defensive sectors, utilities struggling a little bit. down .5% in media. overall, though, sentiment very positive u.s., aidsa, and europe at the start of the day jowlana. >> excellent well, let's get right to our top story of the day of course, brexit. theresa may will offer mp's a choice between her brexit deal and a delay. akrkd to our kmeef brexit negotiator in remarks overheard by an itv reporter political correspondent angus

robbins. he reported the civil servant said the e.u. would agree to extend negotiations in the end brexit secretary steven barkley rejected the idea saying it is not the government's position. meanwhile, the mp reports that theresa may told business executives that ek tending article 50 would serve no purpose. she made the comments to business leaders in a conference call after updating lawmakers on the progress of brexit talks one executive recordly told the prime minister that leaving the e.u. without a deal would be a "failure of duty." now, wilham joins us live from westminster, and i believe you have a special guest with you. a machine of tember of the cons party. right? >> i'm joined this morning by greg hands he is a conservative mp. we were just hearing some of the comments from ali robbins reported in brussels, and the focus of those, and the focus of what we're hearing from a lot of

your colleagues inside the house of parliament, is on time. that was very much the focus of the conversation yesterday i wonder if you could just provide us insight as to whether this timing that the prime minister is proposing is feasible >> i think it's a question of waiting to see what kind of move brussels will make the house of commons spoke clearly two weeks ago that we would pass a withdrawal agreement so long as alternative arrangements replace the backstop i've yet to hear anything from brussels really some kind of constructive proposal in response they said they would be waiting for months for a determined view from london. we've got that determined view i think theresa may is rightly asked for some more time to see if she can get a deal with brussels >> yet, the alternative arrangements as a term is relatively vague that's what critics say at least. there's obviously a working groo dpriep going on. when brussels say we want

concrete proposal from britain, and the likes of him say we haven't got those yet, don't they have a point? >> i think it is vague, and it should loy for a whole series of different things to be examined. i mean, i think there are various possibilities putting some sign of a sunset clause of a treaty break on the backstop having improving the arbitration, i think, would be another possibility. all these kind of things that i think would then be able to replace the backstop, alternative arrangements >> you think the onus is on brussels to propose those or on the british? >> i think the emphasis on brussels to actually come towards the british position and say, look, guys, you know, this overall withdrawal agreement is very favorable to brussels overall, which is why i voted against it three or four weeks ago. for brussels to poouf just a little bit in the u.k. direction in the spirit of compromise and find a new solution that will work >> 44 days until march 29th

deadline, at that point, unless something changes, the u.k. will exit the yourp even union with or without a deal. as we get closer to that date, a lot of people inside parliament here will be getting very concerned about no deal and what that means for jobs, for businesses, as many of them have made clear what do you think is the liablehood at this stage of that happening? >> well, i think the most likely outcome is still a deal. just not the current i think the current deal can be improved then i think the two sides will be able to come together in a reasonable spirit of skofrp miez it's still a possible outcome. i think that would be damaging to the u.k it would be damaging to other european countries as well there's a whole series of uncertainty in relation to that. i still think the most likely thing, if we get some movement from brussels, some spirited corporate meez coming out of brussels rather than the hard line attitude, then i think we

could be in business >> comments from the prime minister was holding your nerve and giving her more time, and we also heard the idea that, a, parliament would have a say in the future relationship, and, b, that she might seek to rush through the accompanying lijs las vegas once a deal is approved i want to ask you about the first point. is that something that mp's should welcome or something that should have happened beforehand? >> i think parliament was always going to be involved, and, by the way, i think there's something that those in brussels need to recognize that the u.k. parliament, the dole always had to pass through the european commission, the u.k. government, the yourp even parliament, and the house of commons the house of commons has always had a really important say in all of this. that is why the deal can't pass at the moment. i think that's stating the obvious. >> to come back the other point, it was a response to the

question, and the prime minister said, look, we will try to accelerate what would normally be 21 days of scrutiny if we need to in order to make the march 29 deadline. as a former minister and member of parliament, are you happy with that idea that you wouldn't have as much time as usual to look at some of this very, very significant legislation? >> i think the choice is between a deal that we've all reached and the compromise and brussel's ability to compromise shows itself, we get to a deal, then, of course, i'm willing to live with a reasonable amount of time to scrutinize that legislation, but let's not throw out the baby with the bath water. let's not be standing there on the 2 8th of march when the nex day there could be a no deal brexit i think commonsense will prevail at that point to be able to get the necessary legislation through. that strikes me as being sensible >> one final question, a lot of people -- you would extend the article 50 negotiating period. i wonder, do you think there's a majority potentially in the

commons for that to happen >> i don't think so. i don't think there is a majority to extend particularly, if the extension would interfere with things like european elections and the u.k. would have to run our own europe elections. i think that would be a bit absurd, and it's not obvious to me the e.u. 27 would want to extend unless there was a clear objective in mind. i think if there was a deal and a withdrawal agreement voted on approved on a meaningful vote in the house of commons, then i think it might be possible to extend, but i think without that, i don't see the point in extension. >> thank you so much for joining us this morning. i'm going to hand it back to the two of you in the london studio. >> thank you very much great insight there from gre hands. president trump says he is unhappy with the border deal, but will he sign it? we'll have more after the break. (client's voice) remember that degree you got in taxation? (danny) of course you don't because you didn't! your job isn't understanding tax code...

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it will continue to monitor the market and "exercise call options" when they believe that the time is right. lots to unpack here, juliana obviously, there was a bit of a reaction in the bond price a couple of things that i want to point out the fact that it's callable means they have the right to call the bonds every quarter, every three months yes, they haven't called it now rkt but that doesn't mean they've removed the possibility completely they could also call it in three month's time the signal this sends to market usually would be one of, well, they haven't called it for a reason because they think that if they were to issue another bond right now, it would be in an unfavorable market condition, unfavorable market environment i think that was the initial signaling that the markets took away from this if you dig a little deeper and talk about whether or not this is a broad-based event, whether

as a santandar isolated event, there's lots of evidence to this being a singular santandar event. there are many bonds in that space, 81 bonds, that have indeed gotten called in the past year there haven't been a lot of warning signs apart from this one. second, let's not forget that santander has been undergoing a lot of changes there was the whole talk about mr. orcel coming and being the potential ceo. when you make a decision like this, it has to be done at a senior management level. perhaps the management are were waiting for the arrival of a new ceo to be making making a decision like that that plenty of moving parts there at the board level >> you know, the reaction actually this morning in the bond markets is one of brushing it off and we're seeing very limited reaction in equity space. as you can see, the stock is pretty much on the day, and some tier one bonds in the sector are rallying a little bit. for the time being this is an

isolated santander event from a credit market perspective, it is coming at an interesting time for the banking sector certainly they have to weigh that against the benefit of this potentially being a cheaper option i mean, is that being short-sighted of santander to go ahead with this move >> i think speaking to some analysts in the sector this morning, they have said that typically a santander are very diligent about their capital management and making decisions like msh e this purely economically rather than tactical or strategy eenlic. they were not thinking about the longer term image this is going to have on them and what's going to be reflected on the bank per se they have the option to call the bond they may still call it in three month's time they are not under dire condition. this is a bit similar to the case of deutsche bank in the middle of the crisis when a

similar thing happened and everyone panicked. today we are looking at a bank that has a good capital ratio. they're well capitalized, and they are increasing on the returns of tangible equity they are in a relatively good position when it comes to their capital structures in terms of does this send a massive alarm bell to the market, the answer, at least the reaction we've seen in terms of the bond reaction today, is no >> for the time being. certainly one to watch as we approach the next option they have >> absolutely. >> to call it. >> well, shifting gears to the beer sector, heineken shares are moving to the top of the stock 600 after the dutch firm forecasts 2019 profit growth at a similar rate to last year. the world's second largest brewer reported a 6.4% rise in 2018 core operating profit on a like for like basis that was just above forecasts with beer sales growing in all regions elsewhere, abn amro bottom of

the stock 6 machine after it had a -- the dutch bank's net profit fell 42% to 316 million euros due to higher impairment charges. cfo clifford abraham has told us earlier the quarter was otherwise good >> q4 was operationally solid and steady, but, you're right, we had a couple of specific items in q4. we had some expenses, incidental expenses, and elevated impairmen impairments. the year as a whole, the bank is in good shape, and you see we posted an roe of 11%, and we're confirming our guidance for 2019 >> and coming up in the show, let's not forget the macro the u.k. reports its latest inflation figures next looking for brexit impact. we'll bring you the data as soon as it breaks

welcome back to "street signs. these are your headlines zbliefrmgt european equity markets follow asia higher as optimism of the u.s. and china

will reach a trade deal. >> if we're close to a deal where we think we can make a real deal and it's going to get done, i could see myself letting that slide for a little while. generally speak, i'm not inclined to do that. u.k.'s chief brexit negotiator let slip in a brussels bar that theresa may could -- if mp's fail to back her deal she says a deal can be reached >> we need to hold to get the changes this house requires and deliver brexit on time heineken shares pop as the brewer delivers slightly better than expected 2018 core operating profit and forecast similar growth for the year ahead. abn amro shares jurp as a -- drives a 42% decline and fourth quarter net profit ceo tells this show that he is confident that the bank is resilient to volatility.

>> when markets are down, we'll make a little less money in the private bank and extra volatility is good for other parts of our bank -- >> there's inflation data pointed lowest rate. before we get into. >> a lot of other things like massive migrations due to climate change or something along those lines. i don't believe in the, you know, as much as i love elan and he is a great entrepreneur and a friend, his comic book vision of a future in which an artificial super intelligence takes over

everything is probably not where there are problems, i see huge opportunities i think that, you know, in many cases a problem is not a problem at all it's simply an industry or a sector in need of innovation, so you look at, for instance, health care life sciences. we spend -- in the u.s. we spend 18% of gdp every year on health care now, we're bearing a lot of the burden of developing drugs and stuff for the rest of the world, and we have a really messed up quasi-private-public health care system that's $3.5 trillion a year. that's a crazy amount of money.

>> has to change here. the good news is -- the good news in all of this is that we're on the cusp of a revolution in life sciences. it's being driven by, you know, sequencing the human genome is just the first step. we barely know what any of these genes do we know they code for proteins we don't know what those proteins do, and they may do one thing in the brain when you drink coffee, you're drinking caffeine, and it antagonizes that receptor and keeps you from falling asleep. nobody would have expected that that is also one of the chemicals that cancer uses to

prevent the system from attacking it it turns out, it shuts down t-cells. the enormous complexity is something that we're starting to ub tangle for the first time that is the perfect time to get into a market. if you think about semiconductors, semiconductor companies are valley valuable, but the things that semiconductors created, telecommunications, the internet, personal computing, cell phones. >> addiction to social media, on and on and, on are all biproducts of the fact that semiconductors got smaller, and you got more processor power from less money every 18 months. the same thing is happening in life sciences where you are getting more -- you are getting more innovation faster it now -- i talked to post docs

all the time at ucsf who tell me their grad students can do the work of a scientist who spent 30 yoerz of their career discovering a single protein and its fukds. there are catalyst innovations >> you are saying that with ai technology, the thing that's going to be the next big thing, you are looking to find some kind of growth so much volatility we're probably entering one of the volatile, certainly the last couple of years of the supreme court. we've seen this. we're entering a period of extraordinary volatility, and if pension funds and large institutional investors lose faith in the public equities market are we are going to be in an interesting situation where these, you know -- if you are a large pension, and you are trying to make your 10% or 15% a

year that you need to make in order to meet your obligations, where do you go for growth where are you going to find growth in a future where people don't necessarily believe in public equities to the degree that they have over the last decade the answer to this is the same answer it's always been for the last 150 years, and that's technology some of the technologies are going to be things like content. i mean, we went through the last ten years, and it was all about platforms. netflix, facebook, snapchat, air bnb. now are you sealing e seeing the resurgence of content. netflix and its competitors are literally going to spend $16 billion a year going to $20 billion plus a yoear over the next five years just buying conat any time you can say they're buying a lot of junk, and they're also making some really mazing content the total spend of the legacy movie studios is only $4 billion

a yoer that's a massive change. if that's where our spending is, i want to be the person spelling e selling as the investor. i want to be the person that's benefitting from that spending >> does that answer your question >> so with the panels they've done in the last three dies, the majority of them have focused on health care, mental health, focused on looking at how data can make our lives better and how collating that data can give us a clue as to what's going to happen next. one of the things i spoke to arianna huffington, a defriend of mine, i spoke to her about

our addiction to social media. literally this is all you see. >> the question i have for you is given your involvement in facebook as a founding member, do you have any regrets about this monster that you have created? >> i love it when i go et this question there's always a point in the interview that goes in this direction. >> hate to be a foregone conclusion >> i want to talk about christopher for a minute, but we can be -- i'll be brief on this one. very few people get a chance to build something that reaches population scale not just in her country. 2 billion users makes me the

representative of effectively the largest company in the world. i get -- i'm very concerned about something that we put in place very early, which is this -- it comes from an understanding of human psychology and the need for social validation, the need for feedback from your friends we understood this intuitively, and we made it explicit in our product design the idea of being that if we're a content company that we're relying on you to give us content, we need to give you feedback we need to give you a little dopamine hit we need to give you a hit as frequently as we can snoo you were constantly getting feedback you posted content you are getting likes and

comments on that content we're getting better and better at figuring outwhich of your friends are going to like a comment. you are actually getting routed and showing up on the feeds of the people who are are month likely to like a comment we're increasing the amount of social validation or feedback that you are getting, and that feedback loop is getting tie tighter, and you are getting more addicted. the product was designed to be addictive, but it was designed to be addictive in a world where, you know, you -- >> people had something else going on >> you were only allowed to do drugs in your bedroom at home. now it's sort of pervasive it's every -- you are taking it with you everywhere. >> there's serious concern about the ability of social platforms to influence people, how they vote, how they actually think. that's something that's becoming increasingly concerning really for voters in the united states and certainly on capitol hill.

do you believe it's at a point where the department of justice is going to have to get involved >> on the privacy front, you are opting in or choosing to disclose your private information. i don't mean to pivot off of facebook it will come across that way, but i worry more about companies like amazon because they're doing -- you know, facebook is something you use type ofly. instagram is something you use actively you're choosing to post content, and you aunderstand that ads may be amazon alexa is listening to everything yousay. literally everything you say you don't have to say, hey, alexa. i mean, the microphone is on it's recording if you need any evidence of this, just look at all the subpoenas that am zbron has received from law enforcement agencies because there was a

domestic violence dispute, and alexa recorded a husband and wife screaming at each other, and that's out there if you are having a conversation in front of an alexa-enabled device, amazon is not guaranteeing you any privacy you -- your conversation is being recorded, and amazon happens to also own aws, so they have more cloud storage than anybody in the world, and they're going to -- you know, there's no limit to how much of your -- what you believe are private conversations are being stored >> i mean, it's ultimately against these companies' own financial interests to police themselves you do have to wonder why amazon, for instance, would try to extract the incremental

benefit of everything you say. that feels like a bad business decision once the public realizes that's happening, they probably won't buy alexa devices. hopefully, you know, the public dialogue will have -- will play a role here because if the public dialogue doesn't change these companies' behavior, then, to your point, it becomes a government issue >> sean parker, thank you for joining us >> we didn't talk about crisper, though >> we have three minutes you can go right ahead >> k on. so the -- back to the point of our life sciences. i think the thing that we're really missing as a society, bill gates tweeted out the other day that the number one public policy debate that we're not having is the implications of g net. just last year the most underreported story of the year was that a chinese scientist

named hei john ku -- i might be mispronouncing his name. he said he had g-netted a set of twins with minimal parental consent, and then abruptly disappeared and has not been heard from since we don't know where he is. are it did confirm something that we should be worried about, which is that the chinese have had secret programs, g-netting babies for a while if you think about all the hereditary diseases, which include severe debilitating diseases like muscular dystrophy or auto immune diseases that are incredibly debilitating or diseases that will cause your children to lead a life of suffering and difficulty, and if you as a parent are told based

on a routine genetic test that you are going to give birth to a child that is going to suffer, you really have -- you are going to have three options. one is, you know, let them all be part and face the consequences terminate the pregnancy, which may not be allowable in some cultures or simply make that g-net. i know we're in a darkened room, but, like, i would love to see a show of hands. if you are told that your child has a debilitating genetic disease that would cause them to have a permanent handicap, would you remove that g-net. i would. nobody else would? that's okay. >> that begs the question. >> then there's the question of, well, where do you go from there. if you are told that your child is going to be -- your young boy is going to be 4'5" or have dwarfism or something, they could have a somewhat normal life, but it's not going to be

ideal. how many people would choose to correct that genetic you could satisfy defect or that particular characteristic. where does that lead are designer babies okay can you change their hair color? what if you are told your child has behavioral problems, and you start doing things that could affect their behavior, their attention span, their learning these are really deep plorl and ethical questions that aren't -- we're going to have to face these questions in the next ten or 20 years. we're not having a conversation as a society about those questions. this is happening. it is technology is incredibly easy scientists could be doing it they're choosing not to for

ethical reasons, but as we start to better understand which gene has caused which, you know, severe diseases, we're going on have really interesting moral decisions that we have to grapple with >> sean parker, thank you for joining us thank you all. >> all right that was hadley at the milkin institute conference in abu dhabi. speaking to sean parker, the former president of facebook and tech entrepreneur as well. for the time being, juliana will break down the price action in the european markets today >> well, the global rally continues here in europe we are seeing equity markets hold on to the early gains as you can see beside me, the four major sbeks here in europe are marching higher. that optimism are around u.s.-china trade talks, that provided a boost to wall street yesterday, and also in the overnight session in asia, continues to support european equities now, i want to take you to the

fx markets we just had some weak u.k. inflation data that was mentioned. just briefly there taking a look at the pound this morning, no huge moves versus the dollar holding just under that 129 mark that, of course, comes after u.k. gdp data out earlier this week the euro also flat versus the dollar 113. we have u.s. cpi data to look forward to in the afternoon session in the u.s certainly keep an eye on the dollar moves later today now, a quick look at u.s. futures. this is a global rally we are seeing it take shape yesterday. a very strong day state-side where the s&p, the dow, and the nasdaq all ended more than 1% high higher we're looking at another strong day with all three of though indexes pointing to a more positive open. >> coming up, president trump says he is unhappy with the border deal, but will he sign it we'll have more on the negotiations on capitol hill

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u.s. president donald trump says he is not happy with the deal on boarder security, but stopped short of outright rejecting it it provides 1.37 billion for border sfensing, rather than the 5.7 billion president trump wanted for a wall on the border with mexico. the u.s. president said he did not expect another deposit shutdown president trump says he could also think about extending the march 1st deadline for trade agreement with china for "a little while" if it appears a deal is on the cards however, he told reporters he prefers not to let the deadline slide and again expects to meet with xi jing ping soon to finalize an agreement. a u.s. delegation including steve mnuchin and trade representative robert lightheizer are currently in banaling for talks with officials. let's get back on over to the u.k. inflation has fallen to a two-year low with cpi coming in at 1.8%. that is below the bank of

england's target. >> 1.8%. we heard from a very dovish carney last week and she says she's slashing inflation numbers that are not there it seems they'll do anything -- given all the uncertainties. >> i doubt they'll do anything ahead of brexit. if there were to be a no deal brexit, it's possible the bank of england might be cutting later in the year. the normal circumstances would be expected to rise at this point. the pay growth numbers have been stronger than inflation numbers. bank of england suggested for a while rsh that would be one of its key markets for deciding to raise rates furthered.

the bank is expecting it to grow a little faster. i would have thought that under normal circumstances, you would expect rates to be rising. if there's no deal, then i think all bets are off, and i think we're going to in a complete different scenario one of the changes for banking is that it stays contingent and it's hard to make policy -- >> what do you think an article 50 extension means we've already seen uncertainty and it's not been good for businesses and not been good for investments. if article 50 ends up getting postponed by another three months, six months, what does that mean for the economy? >> i think it's quite bad for the economy in the sense of being -- creating additional uncertainty. it, of course, avoids the disruption that you would get from the no deal scenario, if you look -- basically it's a cost between no dole and extension at this point. you would avoid that three months considerable disruption on the other hand, i think we're into a whole different set of

disruption there if you have an article 50 extension, it's quite likely that the conservative party would just rupture in half i think you'll be likely to see a general election later in the year. that is it for today's show. >> worldwide exchange is coming up next. stay with the channel.

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>> here's your top five at 5:00. a big breakthrough maybe. xi jing ping plans to meet with secretary mnuchin and robert lightheizer this week. we will go live to china with more the shutdown showdown rolls on lawmakers urging the president to sign a deal that would keep the government open, but the president says he doesn't like it america's initial debt swirling to another record high, and we have got some scary stats on how big the numbers are getting. theresa may asking for more times, but the clock ticking