. welcome to "street signs." >> these are your headlines thi tuesday morning from london. >> the 2018 profit misses estimates as market weakness weighs on the forth quarter for hsbc the cfo tells cnbc the u.k. is a bigger worry than china. >> we're not seeing a dramatic slowdown at the moment as a result of the u.s.-china trade discussions. where we are i think is more in the u.k.

bhp weaker production earnings the ceo says he is not too concerned about a growth slowdown in china. >> a little bit of softening as we've seen in the chinese economy, but the chinese are responding as you would always do with somewhat looser credit terms to stimulate a bit of additional demand to make up for some of the uncertainties. ihg shares rise. they say the company is performing well in the u.k. despite brexit >> the devaluation of the pound -- they had a really strong fourth quarter increasing demand by international inbound tourism. honda said it will shut down its -- saying closure is part of its global restructure plans and not brexit-related

well, good morning, and welcome to "street signs." european markets have now been open just about one hour, and it looks like we are in for a slight more muted day. the stock 600 is currently down about seven basis points. wee digesting this from yesterday's news and labour mp's have resigned from that party. today a couple of earnings coming into the fold as well, and investors watching commentary from ceos around these issues that are weighing on markets let's get into the european markets and see how the split is unfolding. a little bit of divergence once

again in terms of the different regions, but the dax is the strong outperformer of the day up about 52 basis points the french index is also in positive territory not quite as strong as the german markets whereas the ftse 100 and the ftse me are looking at slightly slower starts to trade. let's go to corporate earnings in focus as well as in addition to the macrofactors. we have telecoms up 60 basis points at the bottom weave got banks. this is the clear underperformer of the day the index is down about 0.9% one of the big drags there is hsbc let's take a look at the hsbc share price chart. we saw this stock open lower this morning right now it is trading down nearly 3.5%. now, this comes after hsbc reported that they have missed 2018 profit forecasts. europe's largest bank laying

challenging market conditions. we've heard that before. that includes the impact of china's economic slowdown. pretax profit came in below expectations at just under $20 billion while the bank's ct ratio also dipped. as you can see, investors unimpressed by these results down 3.5% as we speak. now, cfo use been stevenson told cnbc that market conditions in the final months of 2018 grew particularly challenging for the firm listen in. >> we went in for a disappointment and we did commit to positive tours. we were very much hit by adverse markets in november and december, which meant that we saw readiness drop about $1 million frm relative to q3 costs were up 5.4% we had negative tours of just over one i think underneath that cost growth what you saw is a continuing commitment to invest very, very strongly into a combination of growth and digitaltransformation.

investment growth was up over 10% on the prior year. i do think as we go into 2019, you'll see it's continuing to invest heavily, but i think we are already starting to be a bit more cautiouson some of the head count growth we would have forecast >> stevenson also told cnbc that the u.k. posed a greater potential problem than china >> if you look at flows last year, continue to be very healthy. as i said earlier, both hong kong and mainland china is up 14% last year. international customer revenues up 7 we're not seeing a dramatic slowdown at the moment as a result of the u.s.-china trade discussions. where we are more cautious, i think, is in the u.k we have started to see some moves in credit. >> we are joined by the senior vice president of moody's. thank for being with us this

morning. missing revenues, they're citing weaker capital markets is in a realistic? >> fourth quarter results for hsbc was cut by weak revenues. it was a miss of around $1 billion. mostly driven by revenues in capital markets, but also in the issuance business. on the operating cost side, costs were brought in line with expectations where, now, for the full year the intangible he equity, which is the market which is targeted by the bank, was in the region of 9%. it was 8.6%. still an improvement when compared to the previous year. 106 business points. it's below the 1 1% return on tangible equity. >> we talk about that going forward, and they maintain -- based on the numbers you've seen here, do you think that's realistic? >> it is indeed a challenging economic environment also market environment. on one side you see volatility in capital markets, and that constrains the ability of banks to leave on the capital market business on the other side is a slowdown

in the macroeconomic scenario, and, therefore, we see pressure in the -- also, in the interrevenues. >> interesting comments from stevenson around the u.k. posing a bigger risk than china, and we just saw that they booked $165 million in credit losses related to u.k. macrouncertainty really. how concerned should we be specifically about the impact of what's going on in the u.k. specifically about brexit? >> it's just we see actually the second bank with provisions against brexit the first one was rbs doing the quarterly results. these are generic provisions they're not specific there's no deterioration insight at least in the short-term, but clearly the macroeconomic environment is deteriorating, and management is becoming more cautious >> better safe than sorry. let's book these now getland of the curve i wonder when you look at the scenarios over the next five or six weeks, do you think that

major bairngs, including those based in the u.k., have done enough already, or is that still work to be done? are they ahead of other sectors dramatically when it comes to preparing for no deal? >> i think there are two orders of impact coming from breck it it's really the loss passport, and in these respects, u.k. banks are well advanced. also because of requirements from the regulator most banks have now set up subsidiaries in the e.u. on the other side, the second order of impact is coming from the deteriorating macroeconomic environment, and, you know, the impact will depend very much on whether we're going to have soft brengs e brexit or hard brexit >> in terms of the preparedness, it seemsz like the global investment banks in the u.k. are largely prepared, but what about their clients and how much of the onus is actually on the clients, and how much are they relying on their clients to be prepared to actually take the steps that they have created for them to try to ease the burden of this, the brexit impact

>> the global investment banks have been preparing for brexit they have subsidiaries mostly in the continent, island, germany and france these are the usual countries for setting up these subsidiaries the business they have in the ex-u.k. for the large u.s. banks is not that significant. it's a single digit percentage when compared to the overall capital market business. >> just so i understand, it's really on the banks themselves they are not as reliant or dependent on what their clients are doing to insure smooth channels igs, if you will. >> yeah. the banks are ready, and the clients will need to change counter pass >> in terms of which europe fine global banks are most vulnerable in terms of the negative credit impact, can you give us any specifics? >> generally speaking, we like to stress the fact that our

ratings incorporate soft brexit. a withdrawal agreement, which replicates the current trade in place. now, in case of no deal brexit, which is also called a hard brexit, there are more implicatio implications, and these trade implications will be more severe for the u.k. >> when you look through the list of what both the u.k. and the e.u. side have done to mitigate against the potential hard brexit, you've got commissions being set up by the u.k. side and the subsidiaries being set up by the banks. you've got the e.u. allowing two years of securities deposit others you have a single year of derif tiffs clearly permitted. is there anything more that needs to be done, from your perspective, to guard against a negative impact outside of that credit macroenvironment you're talking about in the u.k. just in terms of the day to day logistics practicalities of banking across borderers >> both the u.k. and e.u. regulators have done whatever

they could to avert any major disruption in the capital markets. as you say, the second order of impact, which is one coming from weak macroeconomic environment is what is going to affect the banks. >> thanks so much for joining us this morning appreciate your time today talking to us there about the impact of brexit on european banks. well, meanwhile, honda has announced it will close a factory in british city of sw swindon in 2021. the ceo says it is zigts decision is part of a global restructuring strategy and is unrelated to brexit. the british entry said he was deeply disappointed by the move. he said it was based on unprecedented changes in the global market, and i'm just going to take the ceo of honda to task. he is not here for him to say this is unreeld to brexit as the head of the firm who two years ago said he

came out and publicly talk about the threat of a hard deal brexit is very difficult to reconcile i've reached out trying are to get an answer for that essentially, it seems to me they went around two years ago very publicly talking to lawmakers, talking to the government saying, look, this will have a dramatically negative impact on our swindon plant. this is the plant they've now announced they will close. we are less than six weeks away from that march 29th deadline with the possibility, let's be frank, of a hard brexit. significantly higher than it was six months ago, a year ago, certainly two years ago. >> officials have been warning about the impact of brexit, and also around the fact that the u.k. is not going to get a better deal, a better trade deal, than being in the european single market. they've been really foek e vocal about their views around what

kind of trade deal we can hope to get between the japanese and the u.k. also, worth mention, you're want be alone in making the decision to shift their production out of the u.k. we heard from nissan, their japanese rival, that they would no longer build their suvs in sunderland >> a lot of that comes down to the trade agreement. >>. if you want to weigh in on this news around honda or the hsbc earnings, anything we've discussed so far, remember, you can get in touch with us on twitter @street signscnbc, and tweet us directly at cnbc juliana and willes is at willem marks. we'll hear from andrew mckenzie coming up after the minor missed profit estimates that's coming up after the break. ♪ (butcher) we both know you're not just looking for pork chops.

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expectations missed examinations there's production disruptions and a fallen commodity price bhp sold most of its onshore sales assets to bp in a deal worth $10 billion during the period in request he the company also maintained its interim dividend at 55 cents per share. that was the same as last year now, our colleague karen cho just spoke to the company's ceo and joins us around the desk with details karen, were these results disappointing for investors? >> i think they were if you look at a number of different metrics. if you look at the underlying attributable profit, that was a miss down 8% the revenue was flat for six months the underlying earnings has been pointing us to take a look at, they were down 3%. low expectations when it comes to net debt, that was also higher than the lower level of the market had been looking for. the upside was really around the free cash flow that hit a 3.6 billion dollars about the 2.8 billion expected this was the real up side. there were so many problems that happened in the six months.

zbliefrmgt there was a fatality. we talk about the fatality in mining that triggers fresh esg concerns all those pension funds out there that are trying to invest along principles they step back and say is this the right to come to invest in then you throw something else in the mix that is down that was related to -- > wire going to get into

china and trade. you had a china slowdown that's taken place. there's been trade issues globally around demand for iron ore. i asked andrew mckenzie, the ceo about how complicating those effects are and whether they're having a dampening effect. >> there's a little bit of so muching as we've seen in the chinese economy, but the chinese are responding with -- as you would always do with somewhat looser credit terms to stimulate a bit of additional demand to make up for some of the uncertainties in the trade environment. iron ore we produce goes into china is turning into goods that are sold within china, sold within asia, so they're not

directly effected by if you like arguments across the pacific that organize umt has more of a longer term dampening effect on what we think will be world economic growth, and that will effect everyone's business tloo let's talk about the cash because that's what investors are looking for. cash returns this is a business that's paid out a truck load of cash in recent times after the sale of the u.s. on shore oil assets to bp they returned about $10.4 billion to investors there was through off market share buyback and dividend the question this time around is it zwrus going to be what you are seeing, what they're flagging up. they pay -- that was broadly aligned. some expectations were for higher what happens if you don't use that tax credit effectively. the tax office pays out a cash

rebate to you. it's a huge amount of money you get back if your income is not high enough to off set that di dend, that frank dividend. the lanure government has pledgeled away to do away with the cash rebate. take a listen to his comment >> that's not my -- that's not something i would want to do we have no plans to do the sorts of things that you are talking about at the moment, but we'll wait and see i would just remind people that, you know, this has been a phenomenal year in terms of cash back to shareholders $13 billion. that's a record for the half of course, that was enabled by our very successful sale of our onshore u.s. business where we made $10.8 billion as a sales price.

we already just paid a special dividend of $5.2 billion, and that was a dollar and two cents a share. >> i thought that was somewhat of a defensive reaction about the money already paid out to shareholders like there's been plenty there, and there's a lot of pressure. elliott is sitting on the share register, and. >> it's a big iev for the mining sector after what's transpired with valet, and you may recall that the new president of brazil was in davos talking about throwing open the gate to mining ventures, welcoming in partners

to maximize the resources, and the next minute he is flying back to brazil to have a massive cleanup operation. lots of fatalities around this disaster effectively another dam has had issues it's triggered concerns about the entire infrastructure being redone around some of the dams, and that could have record hurdles for bhp, which owns its mine 120 kilometers down the road wr wrrn. >> the focus is very much on this terrible human tragedy. you know -- what that means is far too early to speculate we are making a lot of progress.

we've made strong -- done strong work in doling with the environmental recovery and resettling people and paying people compensation for loss of income, and before this disaster we were obviously -- and continued to discuss, you know, the final elements of the claims that are outstanding >> very same issue there as you can see, what those cost claims settlements could be. the regulatory process of getting the mine back open again, whether that's now being pushed out, because it's hard to see where the scenario can maintain his friendship with the mining company, gin there's a huge backlash on the ground as far as deaths. fatalities wrrks also environmental concerns.

>> dan nonhave promised higher sales and profits despite weaker chinese demand for baby formula products and a boycott of its products in morocco. the french food company beat fourth quarter sales estimates thanks in part to cost cuts and a focus on healthy eating trends danone said it's well on track to deliver on its 2020 objectives meanwhile, into. >> that came despite a slight growth dip in revenue per available room one of its key metrics ceo keith bar told cnbc early this morning the company had seen strong performance in the u.k. despite brexit-related uncertainty.

>> what's been interesting is u.k. has performed quite well. london had a really strong fourth quarter and increasing demand from international inbound tourism. however, the uncertainty of brexit is something that all businesses are trying to ask government to resolve quite quickly. >> coming up on the show, six months on from greece's exit from its third bailout program cnbc seeks to answer this question is the country completely back from the brink do i use a toothpaste that whitens my teeth? or one that's good for my teeth? now i don't have to choose. from crest 3d white. the whitening therapy collection. now with charcoal or coconut oil. it gently whitens. plus, it has a fortifying formula to protect your enamel. crest. healthy, beautiful smiles for life. unpredictable crohn's symptoms following you? for adults with moderately to severely active crohn's disease, stelara® works differently. studies showed relief and remission, with dosing every 8 weeks. stelara® may lower your ability to fight infections

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welcome back to "street signs. >> these are your headlines. hsbc's 2018 profit misses estimates as market weakness weighs in the fourth quarter sending shares lower cfo tells cnbc the u.k. is a bigger worry than china. >> we're not seeing a dramatic slowdown at the moment as a result of the u.s.-china trade discussions. where we are more cautious is in the u.k. >> bhp shares slide after the

minor misses first half underlying profit forecasts on weaker earnings and on production outages adam mckenzie says he is not concerned about a growth slowdown in china. >> there is a little bit of softening as we've seen in the chinese economy, but they are responding with -- as you would always do with somewhat looser credit terms to stit late a bit of additional demand to make up for some of the uncertainties. >> european banking and auto stocks slide while u.s. futures point to a lower open as another round of u.s.-china trade talks get set to begin later today >> and honda says it will close its swindon plant within three years in the u.k. saying the closure is part of its global restructuring plans and not related to brexit. we've got some u.k. employment data out for the

month of december. just to bring you some tasters from that. the claimant count is up 14.2% month-on-month that's just above 1.01 million the average weekly earnings in real term dropped 1.3% in the three months that's the biggest rise since three months going back to november 2016. can you stee the u.k. outlook per hour has fallen year-on-year in the fourth quarter.

14,200 that is 2.8 work force and that december unemployment number -- i'm happy to say we're joined by memorandum any baker you expected disappointing employment numbers -- >> what happened to full-time employment thaegts a really good gauge of what's happening to job growth, underlying job growth. if it's not this month, next month, the month after, you would expect to see perhaps a bit of caution coming in to firms hire iing. you would expect to see a little bit of loss of momentum coming through. >> yet, we're seeing those wage growth numbers matching that ten-year high. we're not far from march 29th. how do you interpret that?

>>. >> the unemployment rate at 4%, that's a really low number for the u.k. everything from what you have told me suggestions that it still looks tight. it's not surprising we're seeing higher wage growth, and you are right. the real earnings number is good news it's good underlying news for the consumer here. the strong wage growth >> it's a bit of a chicken and egg, and the bank of england looked at future net migration it was using os numbers for that it said that that might be subdued in the u.s., and that is in part because net migration is falling thanks to brexit see, then if you end up with lower mai high grags numbers potentially, you end up with the bank says at least the u.k. economy not performing that well if that's the karks this idea of os moses whereby people leave one country where the economy is not performing well to another one where it is performing better, if the u.k. is not performing better relative to some of the countries, that net

migration can completely be falling. >> as people potentially leave the u.k., if you are right that prospects for the u.k. come turn down and decide to leave, it does depend. that could have an impact on the unemployment rate. the result could be an even tighter labor market it does make with other countries. in terms of britain's trade agreements, how realistic is it that they will actually get trade deals, enough trade deals in time for this deadline? >> there has been -- it's worth asking that question there have been worrying headlines about how the trade deals have been rolled over. jeremy has to be cautious. we know that trade deals generally take a long time to negotiate. i think it's absolutely the right question to ask. >> when does that actually get

factored into people's expectations, do you think the concern around these trade agreements it's really a longstanding issue we don't need to worry about right now. >> if you are thinking about a no deal brexit and there's still a probability of that, absolutely it's a concern. i think that is some of what you are seeing factored into the firm's level of kauks caution right now. >> we saw that back in december, and i am responding whether you think there are any signs that the trend will reverse in the next few weeks when we get the next set of numbers. >> it's impossible we know generally that the u.k. economy is struggling a bit here, and it's not just that december contraction we've seen the pmi business survey suggest that the economy is close to stagnation you're right month-on-month that data can be quite volatile what would be required to change that dynamic >> i think you're right. the business investment will drag a bit more. again, that's the firm caution dragging down.

four consecutive quarters. i don't think that's where you would expect to see immediate turnaround we could have a positive contribution for ibt if i. we know that firms have been building stocks. look at the consumer the consumer has been surprisingly robust throughout >> i want to pick up the point about the consumer last week we had the jan retail salsz data come in stronger than expectations, so how do you interpret that strength against a back drop of all the other weakness we just mentioned >> well, i think coming back to one of your earlier points, one of the important things that's happening in the back drom for the consumers here is good real walk growth. that real income story is a real positive i just worry that we know the consumer confidence is looking quite fragile in the u.k how long can the wage growth offset the concerns that consumers will have around the external factors that are weighing on the u.k. economy how long can it actually support them >> that's the big question, right?

we don't know. i think everyone expects -- you remember for the referendum everyone kbpd that caution to overrule everything and recall consumer spending down, and we didn't see a response in the consumer until prices started to really jump up actually weerks not seeing that in the u.k. at the moment. a lot of that will depend on what happens with the sterling, i think. >> what will the bank of england be looking at? >> they'll be looking at all aspects of that report >> is there something that will be a focus for them based on these numbers? >> average i mean, the pay grade numbers are clearly very important here and how tight generally is the market their inflation, tight labor market rising pay growth those are things that you will want to keep >> look at that. >> excellent that was melanie beaker, senior economist royal london asset management i want to give you an update on where things stand in terms of european markets right now we are just over one with and a half hours into trade. it continues to be a mixed picture. the dax is still the bright point -- the bright spot among

the different regions, although we are seeing some of the gains paired back. it's just a touch above the flat line right now the worst performer of the bunch are the italian stocks the ftse mib is down about 80 basis points at the moment the ftse 100 is down about 47 basis points that, of course, we've got u.k. investors digesting that latest employment data that we just flagged moments ago. now, let's go to fx markets and get a check on currencies. we are seeing some weakness in the euro down about two basis points versus the dollar. right around that 113 mark the pound also pulling back slightly versus the dollar around that 129 mark really a picture of stability in terms of storlg. let's take a look at u.s. futures. president's day meant that u.s. markets were closed. we are looking at a marginally weaker start for the major indexes there. no major moves, remember this is coming off of quite a strong week last week. quite a strong finish to the week last week that positive momentum seems to

be pausing for the time being. the big overarching narrative remains u.s.-china trade negotiations, so investors will keep a close eye on any headlines that emerge over the coming days. >> meanwhile, the european commission president jean claude juncker. he also said he had no specific time frame in mind for how long the negotiations could be extended the greek economy, well, it's in the best shape in more than a decade it's attracting foreign investment that remains a key challenge for the greeks that's according to the chief executive. greece's largest lender by assets he spoke exclusively to our colleagues commenting on reports that some greek banks don't want to see an end to capital controls >> they went about $90 billion of deposits that have left the

greek banking system during the many years of the crisis out of those $90 billion, about 22 have returned into the banks. we are now in a position where a large number of the capital controls have been lifted. whereas for example, there is free movement of capital between banks in the local system. the enterprises are in a position to do a lot more transactions and much bigger size than they used to do. there is a limited number of actual controls that are in place right now. these should be gradually lifted as normalization is returning into the market and liquidities

improve. this is more or less the position of the greek banks. gradual lifting of the capital controls the last few remaining as normalization is returning into the system >> and what would be the consequences of a snap election in greece? would this be a good thing for greek banks or not >> look, we all know it's an election year, so the effect of elections depends a lot on the result we have to wait and see what happens in terms of a result however, the economy has already got quite a lot of growth coming, so we don't expect that it will be significantly hindered by what would be a year

where some uncertainties are goingto be introduced because of the election. >> cnbc's coverage from greece will continue tomorrow our colleagues in athens will be talking to the president of the new democracy party and the head of the country's position. president trump has nicolas maduro or lose everything. speaking before a crowd of mostly venezuelan and cuban immigrants in miami, trump called on maduro's troops to allow food and medicine into the country. u.s. aid is currently being stockpiled at the border with columbia the u.s. is among the first countries to recognize opposition leader juan guido as venezuela's interim president. i want to remind you, if you have any thoughts and want to weigh into the conversation, willem and i would love to hear from you follow exiter @street signs @cnbc.com or follow us directly.

coming up on the show, president trump is being sued again. this time it's not as a wisconsinman it's as head of state. find out more coming up next ♪ wake up sweetie. ♪ doctor dave. ♪ here's your order. applebee's to go. now that's eatin' good in the neighborhood. (danny) after a long day of hard work... ...you have to do more work? (vo) automatically sort your expenses and save over 40 hours a month. (danny) every day you're nearly fried to a crisp, professionally! (vo) you earned it, we're here to make sure you get it. quickbooks. backing you.

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china says the united states is trying to block its industrial development by claiming huawei is a cyber security threat. the comments come amid reports that the u.k.'s cyber security

watchdog found the risk posed by the company can be managed a spokesperson for china's foreign ministry said the u.s. had engaged in "hip critical, immoral, and unfair bullying." huawei's found ter saer said tht of his daughter was "politically motivated. in an interview with the bbc he said huawei would never undertaking spying activities pledging to shut the company down if it did a group of 16 u.s. states are suing president trump. over the administration's decision to declare a state of emergency in order to obtain extra funding for a border wall on the mexican-u.s. border the states say the order would cause them to lose millions of dollars that's allocated for national guard units and military construction projects trump's emergency decree would give an additional $6.7 billion on top of the $1.4 billion

already allocated by congress towards border fencing nbc news filed this report on these developments >> reporter: from los angeles to denver and just outside the white house. >> is there an emergency so. >> reporter: backlash boiling over to the president's national emergency declaration. the president planning to go around congress to get more money for his border wall, including declaring an emergency to divert $3.6 billion from military construction projects >> we had certain funds that are being used at the discretion of generals and the military. some haven't been allocated yet, and some of the generals think that this is more important. >> but now california will become the first state to sue joining several advocacy groups who have already gone to court >> no one is surprised that donald trump is acting beyond

his authority, and this is just another example. this is just a very egregious example where he is testing the constitution and separation of powers >> the state's attorney general says their case is strengthened by this comment friday >> i didn't need to do this, but i would rather do it much faster >> it's tough for him to sustain his declaration of emergency when he himself said he didn't have to do this. >> congressional democrats are planning to take legislative action to block the president and even republicans are divided. >> that is not a tool that the president needs in order to solve this problem >> the congress is locked down and will not give him what we've given past presidents, so, unfortunately, he has to do it on his own >> and wal-mart is holding its own against amazon when it reports earnings today according to analysts, the big box retailer is targeting a 40% bump in on-line sales growth from last year, and a 2.9% same store sales increase is being

forecast >> you can see that nancy pelosi there is about to start speaking in brussels en route to another part of the world. we can bring you now nancy pelosi live talking inside brussels >> members of the senate, all of them here reaffirming our commitment to the trans-atlantic alliance, our commitment to nato, our respect for the european union and our ability and desire for us all to work together to strengthen the alliance and all of are our institutions connected there within munich. we had the opportunity to meet with the nato supreme allied commander, with german and canadian foreign officials, with the president of afghanistan because that, of course, is a nato connection for all of us.

we've had opportunities to share our views, ask our questions, and make some observations which you're going to hear from. i'll just close by saying now that we're all gathered that when president truman signed the nato agreement 70 years ago, he spoke of, and a quote, "long step towards permanent peace in the whole world. that was quite an ambitious undertaking, and 70 years later we celebrate it, and we support it as we go into the future for peace in the whole world with that i'm pleased to yield to the distinguished -- well, he will introduce himself we're going to be as brisk as possible so we can get to your questions. >> thank you, madam speaker, wriem elliott angel engel, chairman of the house foreign affairs committee. we are all here speaking with

one voice led by our speaker to say that the alliance, the atlantic alliance, is strong and long and doing well, and we all feel very, very strongly about it , you know, in a family, like in a family, there are ups and downs, and disagreements and whatever we are of the same family. we have shared the same world view we have shared the same views, and we have, as our speaker has point the out, very large percentage of that >> that is congressman elliott there speaking in brussels along side nancy pelosi, the speaker of the house of representatives. from brussels now to emergency new jersey we're joined by the managing director of the strategic resource group. sfliefrmt we're expecting wal-mart numbers to be good and

see growth in onlean sales, and, three, to expand their worldwide dominance in on-line retail and start in these next two years to become one of amazon's worst nightmares >> for many years analysts have said that wal-mart has been behind the curve in terms of building a competitive on-line presence do you think that's now changing? wal-mart has been able to attract the best and brightest to make amazon weaker. wal-mart has recorded cap-ex they're saying wal-mart.com gaining and amazon is loeg e slowing down and going sideways. >> are you expecting to hear

anything on the merger and what are wal-mart's options if this merger falls through >> we are expecting to get some guidance, but given that it's still under review, not expecting to hear anything definitive if it falls through wal-mart will always reset. there's so many opportunities for wal-mart across the americas where it's doing exceptionally well as well as asia, and wal-mart foresaw the down shift in growth in the u.k. scotland, and ireland by selling its operations to js or jay sansbury after previously exiting the european union to steer clear f of -- and steer clear of all the -- wal-mart is winning everywhere by becoming the low priced leader and reinvesting in price, where amazon is asking the vendors for more gross

margin support and more markdown support. whenever that happens, it's a clear sign that wal-mart is winning with a vendor world and reinvesting in better prices to beat amazon in the shopper world. >> i take it the negative data we heard last week on the u.s. retail sales front doesn't concern you when it comes to wal-mart >> it doesn't concern me relative to wal-mart because even if wal-mart slightly is soft on revenue, that's good news because it shows wal-mart continues to reinvest in price to become the low price leader again for the first time since its legendary founder mr. sam walton died in 1992. in our pricing studies, we're finding wal-mart is steady with the low price leader in the u.s., and beating amazon on a lot of key metrics, and wal-mart's $11.99 store in colorado, it's an ideal idea of

click and collect. as mark laurie said on cnbc on december 21st, within two years wal-mart will be able to reach 90% of u.s. customers by delivering at home again, amazon's worst nights mare coming around the corner with wal-mart. >> excellent thank you very much for that burt, managing director of strategic resource group let's take a look at u.s. futures before we hand you over to our colleague stateside looking at a negative start for u.s. trade that's it for today's show i'm juliana. >> i'm willem. worldwide exchange is coming up in a few moments time. oriasis. with tremfya®, you can get clearer. and stay clearer. in fact, most patients who saw 90% clearer skin at 28 weeks stayed clearer through 48 weeks. tremfya® works better than humira® at providing clearer skin... ...and more patients were symptom free with tremfya®. tremfya® may lower your ability to fight infections and may

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>> e.u. says it will react swiftly. u.s. trade talks with china, meantime, continue today in d.c. we are breaking down what's at stake with a report from beijing on what the chinese want to make a deal 16 states are now suing president trump over his declaration of a national emergency to allocate money for a border wall. the crisis in caracas continues. president trump turning up the heat on venezuela and making a threat for the venezuelan military hitting new highs for the year that's what oi