welcome to "street signs." >> these are your headlines. >> shares are on track for their first shares in more than ten years after the u.k.'s competition watchdog raises big concerns over its take-over bid. >> its shares also spike as the british lender shrugs off brexit

fears, appeasing shareholders with a dividend rise of a 1.75 billion pound share buy-back fuel costs prove a drag on air france as they post a 20% drop in fourth quarter earnings, but vows to be more efficient as it tackles rising prices well, let's get right to our top corporate story of the day as you can see behind me, shares are currently down about 13% just over 12% in early trade, and i want to bring you the latest, and that is that the watchdog has said it could block sainsbury's take-over bid of wal-mart's own azda. they said it was concerned the supermarket tie-up could cut competition and negatively

impact shoppers. it also suggested the deal would require the sale of a number of stores or one of either company's subsidiary brands. sainsbury said it disagreed with the finding and said the regulate or had "moved the goal posts. as you just saw, shares opening sharply lower on the back of that news. let's get a look at the broader u.k. grocer space. this doesn't have it in isolation. it will have implications for the broader sector we are seeing tesco shares trade a touch hire on the news morrison trading down about 4% marks & spencer's up a touch as well at the moment the mass i reaction is mixing, and sainsbury, as one would expect to help make sense for what this means for sainsbury and the broader sector, very happy that we are joined this morning by bruno monteyne from bernstein

with retail food now, investors, obviously, taking this news very badly. we've seen more than 12% drop in sainsbury shares in early trade this morning sainsbury fired back with a punchy statement saying that the fundamentally disagree with the regulator. what specifically about the cma's findings is so much more negative than the investment community was expecting? >> well, clearly, the methodology of the cma have used is dwight different than what they expected and it's also very different than what has been used on a booker and in publications it isn't just about full disposals. they argued even on-line it would have to sell a brand issues in fuel and convenience stores.

>> there are limited chances of the deals we go through. we'll have to wait for the final ruling by the cma, which is the 30th of april. if it sticks closes to the current findings, we might try to go to board likely before christmas, but none of that looks like it's going to be a good deal for sainsbury in the short-term or any time soon. the deal is off completely at this moment. >> now, part of sainsbury's retort to the cma was that the regulator misunderstands how people shop in the u.k. and the intensity of the competition in the grocery market i just said that they may take the cma to court once again, but are they right about the way the regulator should be looking at the market >> sainsbury is right in the way they aredy discounter and impact the supermarket is way stronger

than it was before basically, if you try to put retail into two categories one is daily essentials. the kind of products you get at aldi at a good price and quality. you know, all supermarkets have to price relative to the discount there's no way to avoid it as a real competitor. they are also a big long range brand that they've done so, and actually, retailers have pricing in the u.k you can't just price it differently. the discounts effect if you have a good handle on limiting price in the u.k that would have been the same as sainsbury arguing their case that's clearly the way the competition looks at it, look at technical detail in the methodology. it really gives them very little impact at the high discount and being able to control that even on the example of convenience stores, only 51 convenience stores, which is very little in the u.k., and would have to sell them all, plus a few sainsbury

when -- they were t clearly, how the methodology has been done internally by the cma has given a very different result. >> looking at the broader u.k. grocer space, we've seen tesco shares go hire, and if -- what does this mean, the deal falling apart, for the broader space, and are these reactions we're seeing today the right ones? tesco higher, morrison's lower >> if you think about the shorter reaction, a lot of people were hoping that morrison's would be able to buy a lot of the store disposals that who make sense. sainsbury had to sell off 100, 150 stores morrison would take the lion's share of that and it would have been a big boost in relative terms to its erpgz the deal gets much as likely the kind of premium morrison has had. it has a shorter reaction. tesco is up slightly because

people weren't expecting a big boost to tesco from the deal going through. they were able to pick april few stores, but some people would have been worried that it would have diminished somewhat the scale advantage. the deal being less likely is ail positive for tesco in the short-term in the medium to long-term, they would have argued that the deal would have been going through and it would have been a deal to the market duopolies are way more stable than having a market of full competitors. >> i can't help but notice the huge volume on it today. how much of that deal premier yul falling off? >> i mean, i think this is more than a deal premium because the shares sold off a lot already. it's been pre-christmas fight

for the cma. we would have estimated a 5% deal premium in there. the shares are hoping more than that is basically indicating that people are really looking hard at the call business, and there's police department of question marks if you look at the grocery business, it's trading momentum is the slowest of all the big four it's pricing especially on daily essentials that's worse than the other. on grocery, you have a soft position if you think about argo, the reason they position, the reason u.k. is going into possession, and clearly, argo will be most exposed. two of the core businesses will -- the other thing is that if the deal doesn't go through, people might start asking questions about the management team will they be able to stay? i think he should. that will be distracting last but not least, they've been a big stakeholder for a long while, and we know a few yoerz ago they tried to take it private before the deal. again, at which point are they going to run out of patience, and why is this suddenly a big block of shares available for

sale people getting much further than the deal premium falling out it becomes hard to invest in the short-term >> thanks so much for joining us this morning analyst of european food retailer bernstein stateside, shares of azda owner, wal-mart, the company posted better than expected fourth quarter earnings america's biggest retailer saw its largest jump in domestic sales for the holiday period in 15 years meanwhile, lloyd's banking group has announced a new 1.75 billion pound buy-back program it seems to shrug off brexit fears. however, it posted weaker than expected annual profit growth, and the company did book a rise for the year and it struck quite a bullish tone saying it remains resilient. talk about this and the broader banking sector.

>> lloyd's is really consumer lending focused bank and credit card lending we haven't seen that same level, but ultimately all the u.k. banks are showing similar things very benign pnl. mortgage competition continues net income growth is difficult, but it remains steady. losses have remained very low. even taking into account the top-off rdf's, and what's been put the last three quarters. they're not seeing anything coming through all future-related uncertainty depending on what kind of deal we get out of brexit, but ultimately lloyd's carries on. >> now, one of the bright points

in today's results is the share buy-back, and that was a key point for you coming into these results. what do you think of the buy-back program that they've announced? is it something that investors should be happy with >> ultimately, underlying value in the shares. that's the key point here. that cash is king in an environment where things are very, very uncertain people expected 1.2 billion of buy-backs. they came at 1 .75 billion what that does is underleebz the capital strength of the bank, which is kbred reply important in an environment where things could turn down at any point investors take a lot of confidence in this to actually lloyd's management, the regulator importantly are very comfortable on where the capital is given the uncertainty >> and given the fact that a lot of the risks that you just talked about are still just risks, it's not coming through and actually impacting the bottom line, do you see scope for more buy-backs as the year progresses >> i think both rbs is going very well this year, as has lloyd's, and i think that continues now. the cash potential of these

banks, they're very capital generative, cash generative, and that really will underline the value here, and that just continues now for the next two or three years >> another feature of the results today, we learned that the jb between lloyds and schroeder's will be called schroeder's personal wealth. what do you make of the decision to drop the lloyds brand and go with had schroeder's >> the u.k. bairngs have had a difficult decade, frankly. if you look at the other fees coming in, the u.k. banks have seen very little growth, and there's a whole host of reasons. that ppi has hindered the brand, so going with the schroeders brand, you're selling non-banking products is prudent at this time >> there is an upside, right >> yeah. >> certainly >> well, one of the up side possibilities if we do get a resolution around brexit is that

ultimately what that tells us is the headlines of brexit are dominating people's thoughts, and on the underlying economy, it's actually continuing to carry on growing low, but reasonably steady. if that was the case, the uncertainty was lifted, the housing market do you feel would come out an environment that's in right now consumer lending would improve as well. i think the p & l would start to improve, and the cash return potential is there from the big two domestic banks, and obviously lloyds they really are following sterling right now the up side is very clear. they're discounted shares for a tail risk. that is seemingly receding right

now. frankly, there's uncertainty that remains >> just to pick up on the list wrrks i thought it was interesting that the idea because a bank like lloyds has more exposure to the retail side of banking versus an hsbc, then not necessarily looking ahead to as much down side from brexit as the corporate lending. i'm just wondering, is that a reflection, do you think, of the way that we've not seen consumer confidence per se in the u.k. for quite as much as you might have expected two years ago based on some of the projecti s projections, but we are seeing businesses repeedatedly publicl saying this is a big worry for us >> most of the issues we've seen, the rbs and hsbc flag have been specific incidents rather than a kind of -- they use the word broad-based deterioration in the corporate environment those specific instances are more than likely or at least likely to be related to some of the very negative issues you had around the u.k. retailers, structural property market

it could actually not be necessarily brexit-related, but ultimately, it's very hard to associate brexit and what's happening in a corporate space i would agree with you there ultimately the moment the only issue we've seen are in the corporate space. whether those are structural or would have occurred even without brexit, you know, you never know the answer to that, but that could verile well be the case. >> thank you very much really appreciate it let's get a look at markets and see how things are trading markets have now been opened for about one hour, 15 minutes we are looking at a rebound for the stock 600. currently trading about 38 basis points higher. yesterday was a fairly soggy session, which saw that main index trade down to the tune of 0.2% yesterday the real underperformer was the ftse 100. the dax outperformed let's take a look at european markets and see how the regions are splitting out today. right now we are seeing a bounce back in that ftse 100 from yesterday. the dax continues to march

higher and continues to be the outperformer up with about 0.7%. a large part of that will be the auto space, which is rebounding quite strongly we'll get a look at the sectors momentarily. the cac is trading up as well, and the ftse mib underperforming by just a touch over in italy. a lot of the big themes remain unchanged from the last weeks. u.s.-china trade negotiations remain sharply in focus. later today we have the fed minutes, which will become quite an important event for the day brexit and as we have been flagging for the last few minutes, corporate stories are also a key feature of today's nar tiff let's get a look at the sectors. i had just mentioned autos strongly performing thork. up about 1.6%. in particular, those auto suppliers, maybe a bit of a short squeeze coming out the narrative seems to be becoming a little bit more bullish around u.s.-china trade, which, of course, would be quite strong fots auto sector, and we are seeing those stocks march higher at the bottom of the pile we've got real estate, retail, and telecos. the only three sectors in the

red as we look at an overall strong start to trade. >> thanks. well, china has demanded the united states respect its right to development and prosperity. a senior chinese government official, state council told a visiting u.s. delegation that china's development is in the interest of both the world and more specifically the united states he said both countries should meet halfway when it comes to trade discussions, and as a fresh round of talks kicked off in washington yesterday, president trump signalled once again that he was willing to postpone that march 1st deadline for raising tariffs on chinese products >> our group came back and now they're coming here. i can't tell you about timing, but the date is not a magical date a lot of things can happen the real question will be will we raise the tariffs because they automatically kick into 25% as of $200 billion worth of goods that they send, so i know

that china would like for that not to happen, so i think they're trying to move fast so that doesn't happen. i can say the only talks with china on trade have gone very, very well. >> kevin has et says europe has mistreated many u.s. exporters he said trump was serious about performing trade deals in order to "make sure they play fairly hasset also forecast 3% growth for the u.s. economy this year that would beat expectations for a second year running. new york fed president john

williams says there's no need to raise current interest rates, unless economic growth or inflation move higher. williams told reuters he was satisfied with current interest rate levels and said the fed would continue to reduce its bond portfolio well into next year the comments come ahead of the central bank's latest minutes, which are due to be released later today. coming up on the show, air france klm earnings add to what's been a turbulent 12 months for airlines. we discuss the numbers coming up next ♪ wake up sweetie. ♪ doctor dave. ♪ here's your order. applebee's to go. now that's eatin' good in the neighborhood. your digestive system has billions of bacteria, but life can throw them off balance. re-align yourself, with align probiotic. and try align gummies,

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. claims 40 billion was transferred between said bank in the baltic in the year 2007, 2018 swedbank was active saying it needed to prevent money laundering adding it was "comfortable with its current system and processes." >> meanwhile, glencore has 2018 earnings posting a 41% fall in net profit it explained noncash and charges for operations in the kongo and zambia the miner launched a $2 billion buy-back and top it up as market conditions support >> one of the key corporate earnings in focus today, air france klm they reported that fourth quarter earnings spell by 20% as higher fuel costs and strike action proved a drag on the airline.

the company has vowed to improve efficiency while attempting to foster great inspiration we go around the desk with john strickland help us make sense of this the stock open lower investors seem to be really spookd by the unit revenue guidance, and they are guiding to passenger unit revenues below last year's q1 is that due to -- investors, nevertheless, seem to be disappointed what do you make of these results? >> i think what one sees and doesn't judge the whole year, and i think they're right to point out that they're used to coming later that always has an effect. other than that, it's hard to explain the risk they have lost some corporate -- the first half of last year, and it was absolutely -- that damaged a result

business trends watching, and they have traveling at klm >> when the ceo in september, ben smith, he was really faced with two overarching issues. one, around the discontent from unions, and the other around this big profitability gap between the dutch and the french segments in today's results, are we seeing any sign that it's going to close >> klm is a smaler player, both in size and in terms of business relationship it's really on the challenges that it needs in terms of labor agreements, changes in network and so on. air france has really lagged behind, and that's why ben smith came in when his predecessor resigned last year this really is the second in the

airline. it then could deliver the kind of revenue profit result that it should and then the airline group really should be an extra strong performer, but he is just getting started. he got good news yesterday when he announced a pilot who has been the biggest deal. that's a massive way to move things forward >> i'll try to stay neutral on this, but there are clearly cultural differences in terms of the strength of unions between the two countries. also, the back story to both of these airlines you mentioned that disparty and profitability despite air france being the bigger player. that has historically led to a huge amount of mutual resentment against the two partner airlines underneath the broader holding company. it's now much, much more than a decade since they came together.

>> you see the resentment, and the merger took plarks and you see it in the leading edge for the two major airlines it's a very benign side. the major leadership because of that has been -- the dutch have really resented that they've taken steps. now we have a non-french group ceo in ben smith, and it seems that's helping to get away from that cultural divide there's been a lot of questions about governance in the last week, whether he was

>> these clients have said, well, we're not -- -- to protect the freedom. that gave them even more uncertainty. undoubtedly, it was a big element of their fate. >> we'll leave it there. thank you so much. really appreciate the time that was john, director of jls

consulting greece's opposition leader has told cnbc the government has gone overboard with austerity. stay tuned to hear more about his plans if he becomes prime minister later this year >> i have committed myself to be able to take greece back to investment grade within 18 months

these are your headlines ten years after the u.k. competition watchdog raises big concerns over its azda take-over bid. >> glencore shares rise after the minor announces a $2 billion share buyback and vows to top it up if market conditions improve as core earnings jump. >> lloyds shares rise -- a 1.75 billion pound share buyback. >> fuel costs prove a drag on air france klm as the airline posts a 20% drop in fourth quarter earnings, but the

company vows to be more efficient as it tackles rising prices >> european markets are broadly hanging on to the early gains. >> investors continuing to watch for soundbytes around u.s.-china trade negotiations we are looking forward to the fomc minutes due later today theresa may moves into brussels and tries to negotiate further adjustments to her deal with jean claude juncker. we have a number of corporat earnings in focus. we've been discussing them all

morning. the single stocks are certainly driving a lot of the sector movement that we were seeing today. sainsbury, air france, glencore, a huge range of earnings coming out, and that is taking sharp focus. let's take a look at fx markets and see how currencies are moving the euro is currently strengthening about 0.1% versus the dollar at about that 1.35 level. coming over here to sterling, we are seeing a little bit of weakness in the pound. trading down about 0.2% versus the dollar hovering around that 130 mark. really a picture of stability if we look over the last few weeks as brexit remains a key uncertainty. let's take a look at u.s. futures. we are now a few hours away from the open it looks like a slightly muted start to u.s. trade. the s&p, the dow, and the nasdaq all looking at a slightly lower open we did see major indexes gain marginally yesterday, so maybe looking at giving back some of the gains. the picture may be very different later today when we have those fomc minutes.

willem japanese exports have had their biggest fall in more than two years on the back of weak chinese demand the nikkei's -- has more details. >> japan's finance ministry said japanese exports in january had fallen 8.4% from a year earlier to around $50 billion, which was a steeper decline than economists had expected. it was the sharpest drop since their 10 measures fall in october 2016 now, exports to china who is japan's largest trading partner in asia, plunged more than 17% to less than $9 billion dragging down the overall figure. shipments of electrical machinery and semiconductor manufacturing equipment were the hardest hit. now, economists say the fall was due to a combination of weakness in china's domestic economy and uncertainty over the u.s. trade war -- u.s.-china trade war. meanwhile, japan's imports fell a modest 0.6% in january

widening the trade deficit to around $13 billion it was the fourth consecutive month of overall trade falling into the red however, tokyo markets shrugged off any concerns over the data with a nikkei index finishing at a two-month high investors seemed optimistic focussing on signs of progress in the u.s.-china trade talks, and snapped up exporter shares honda was up over 2% during the trading day after announcing it was closing its production sites in the u.k. and turkey that's all from the nikkei back to you. the italian prime minister said it wob a good idea for it is -- to join the same group during the european parliamentary elections, but he told an italian radio station he is not yet considered the formation of a single group. he also said he wants to use those european parliamentary elections in may as an opportunity to build a powerful euro skeptic block inside the e.u.'s legislature

greek opposition leader has told cnbc that the country's government has gone overboard with austerity he has told cnbc in an exclusive interview that he would renegotiate greece's primary surplus targets if elected as prime minister sylvia amaro joins us live from greece with more sylvia, what more can you tell us about the exclusive interview? >> well, julia, it seems that greece is in campaign mode the government ends its mandate in september, and so if not before we have a general election in october. according to the latest polls, it is the opposition party, the new democracy, that will win the election i sat down with the leader of the opposition, kirakos yesterday, and i asked about his plans for the next government. he told me that if if -- he will

reduce corporate tax he will also push for a growth rate of 4%. >> the biggest surplus than was actually requested because we wanted to use this primary surplus to distribute it in the form of electoral hand-outs. this is the wrong policy we should stick to our targets, and if the fiscal space, we should reduce taxes. simple as that by the way, reducing taxes is also going to improve tax compliance in an economy that has sort of a tendency to move

towards tax evasion. now, we agreed to primary surpluses of 3.5% until 2022 i think this is a very strict -- a very strict target i've said from the beginning that i respect the agreements made by the current deposit, but i have also told my european partners that should we be able to deliver real reforms, we should be rewarded with smaller primary services at least in 2021 and 2022. 2020 is, you know, the budget is too close to probably people to make change for the 2020 budget. what i ask is very specific. give me 12 months to convince our creditors, international capital markets that we actually mean business, that greece can actually change, that we take full ownership of the reform agenda, that we don't just do reforms because they are in a program, and somebody is telling

us to do them because we actually believe in the reforms that we have proposed. they would promote growth. should this happen, let's have a discussion again 12 months later to renegotiate the primary surpluses. >> that's what i was going to ask you. after first year in office, you will want to renegotiate this 3.5% target. >> i will in good faith, i will talk to my european creditors. >> how do you intend to approach those discussions? >> with -- always in a very cooperative spirit this is not about confrontation. at the end of the day, whether we have a primary surplus, let's say, in 2021 of 3% or 2.5%, it's not going to make a big difference in terms of our overall debt sustainability. symbolically, it would be a reward for a country that is actually engaging in meaningful reforms. also, i have committed myself

that whatever fiscal space i can negotiate, 80% of it is going to be redirected into tax cuts. >> so this is very important because greece last year agreed with its creditors to reach primary budget surplus of 3.5% until 2022 this is in exchange for some debt relief measures if greece doesn't deliver on that fiscal target, then that debt relief is compromised i also ask that he is from a very privileged background that he is quite distant from reality. i asked him how he intends to overcome this criticism ahead of general election >> i know there are always going to be people who may think that my privileged background is a barrier. i'll try to convince them.

i'll do my best. hopefully i'll convince them after the election, should i win. i know there are people who are not going to vote for me this election because they're still hesita hesitant. if you look at the latest opinion polls, he is expected to win the election with only 37% of the votes that's far from a majority later on, i'll be speaking with the finance minister of greece i'll be bringing you that exclusive interview tomorrow morning. >> sylvia, thank you so much for bringing us those interviews and all your reporting there in athens now, separately here in the u.k., the prime minister theresa may is planning her return to

brussels later today that's where she hopes to win some legal assurances that will help herbrexit agreement to pass through the british parliament perhaps as soon as next week. may will meet with european commission president jean claude juncker in an attempt to -- the irish backstop part of that effort from british cabinet ministers to find a way through the current deadlock he said in the last few minutes the key element for the u.k. government is to find a way for the attorney general, jeffrey cox, to be able to change his current legal advice that current legal advice essentially says the u.k. will not be able to leave that so-called backstop circumstances. it's essentially a uks k.-wide customs union on its own, and just to bring you more of his comments from the last few minutes, it he is saying that changing that backstop is the only way through the situation also, that the british government has to honor the referendum result on brexit. they are confident, he says, both prime minister and the british government they can resolve this issue if the backstop is solved and also,

quite interestingly, saying that the 29th of march, that is the current deadline for the u.k. to depart from the european union is important as a deadline for brexit and is also legally binding. yesterday jean claude juncker said in the german ci-- >> translator: if britain doesn't leave on the 29th of march, but later, no one will stand in their way, but britain will still have to run in the european parliament elections if they're still members at that time >> and across the pond, bernie sanders has joined the list of democrats seeking the party's nomination -- sanders said he would tackle the same issues that spurred his 2016 campaign, such as universal health care and higher taxes on the wealthy. he also didn't hold back on attacking president trump. >> our campaign is not only about defeating donald trump

the most dangerous president in modern american history. it is not only about winning the democratic nomination and the general election our campaign is about transforming our country and creating a government based on the principles of economic, social, racial, and environmental justice. our campaign is about taking on the powerful special interests that dominate our economic and political life >> and iconic fashion ziern carl lagerfeld has died in paris at the age of 85. lagerfeld, who was the creative director for chanel and fedi died after a long illness. the designer sat down with cnbc to discuss his six-decade career here's a piece of that interview. lagerfeld begins by discussing the difference between him and current fashion designers.

>> in the younger designers are not that young they go after the show and make believe they did it all. it's the way every studio is organized today, but not mine. >> you think sometimes they take themselves too seriously >> beyond. beyond they don't give you names because it wouldn't be nice. >> there are none that you can actually name, karl? >> no, no, because -- the list is not that short. >> i just would like to ask you if you don't mind, a little bit about your childhood -- >> my childhood is very simple i only wanted one thing. to get out of there and to be grownup. i hated to be a child. that's why i could speak english and french when i was 6. i had a nice childhood it appears when the world was not that great nothing i can say against.

i'm not still recovering from an unhappy childhood. no everything was perfect i never played with children i only was sketching and reading. >> could you think you could achieve all this >> in a way, yes i remember as a child one day, i said in -- i said to myself, it's very ridiculous, i think i will become a legion i saw myself as a kind of fairy tale i mean, it's very strange, but i remember the moment. >> and do you ever think about your legacy? >> no. what for i will not be around for that, so who cares, huh? >> but you have given and still give so much to -- >> i don't repeat myself that is okay i laugh about myself i am my best cartoon >> that was lagerfeld talking to

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we're watching the russian president vladimir putin delivering his annual state of the nation address to the country's federal assembly dmitri medvedev in the front row there, and he has been talking primarily about the economy. you remember last year this was the presentation moment where he showed a video strike on miami as an example of russia's military might, but today based on what i'm seeing on the headlines here, he seems much more focused on bureaucracy and the economy. well another event we are closely watching is samsung's new launch they are launching three new phones at an event in new york and london later today all eyes are on whether it can pull off a foldable phone.

the korean company teased a proto type with a flexible korean at an event in november of last year now, willem and i are joined by francisco engineer onmow, senior research director for european dree vices at idc. francisco, thank you for joining us today what are you expecting from samsung today at this launch, and will we be -- are we in for real innovation? >> that's a very important day for samsung today. it marks the ternt anniversary of their successful galaxy series they sold over 2.2 billion smartphones of this special category over the last ten years, and today there are rumors they will introduce three new phones, so the s-10, s-10 plus, and the s-10e. the big question is whether they will bring this innovative factor with flexible display, the foldable phone, and there are plenty of rumors saying they will that's the biggest question for

tonight. >> i can't speak for juliana because she grew up outside of the bund, but i am old enough to remember when samsung had a flip phone back in 2001, 2002 what is so great about a foldable phone why are they going to invest all this time, energy, and marketing money on this product, and do you think consumers are going to be interested? >> yeah, that's -- this is a completely different form factor the previous foldable -- they were not foldable. they are the flip phones basically half of the phone will be the screen. the other half will be the keyboard with the foldable phones, we are talking about the full phone being a screen the screen that we can use to consume, to create content is much bigger. if we unfold it, we'll be able to get a much larger screen. that's the biggest innovation that we can have today phones and smartphones in particular, they are getting bigger and bigger, but at the

same time we need even bigger screens because we consume a lot more media, so that is the biggest ini don't he vegas, and that's why it may be appealing to consumers in the long-term. not necessarily in the short because the price point is expected to be quite high and quite prohibitive to many consumers, but as prices start to decline, we expect foldable devices to become really a mass market product in the next years. >> that's really helpful clarity on what the appeal, what the innovation really is behind the foldable phone because that was a question that, you know, i had heard many had who don't look at this market super closely. i'm thinking about samsung in their position relative to apple and huawei at the high end they are really facing stiff competition from apple. they haven't been able to really prove that they can compete and gain share then at the midrange they are losing share to huawei if we do see them come out with a foldable phone, is this going to be enough for them to actually take on apple and huawei >> that's a big question and an

important point. samsung has been able to hold their market share over the last years, but huawei, the chinese vendor and other vendors are growing extremely fast, and they are about to overtake apple. huawei's last year in the second and third quarter, they became the second biggest smartphone maker, and we expect that by the end of this year or early next year, huawei will take on samsung and will become the biggest smartphone maker it's important for samsung that they bring something innovative that resonates in the minds of consumers and in the overall market, samsung has done extremely well 2.2 billion devices off the galaxy series. that's extremely successful franchise, but at the same time they are still far away in the height and of the market where apple continues to hold the 70% market share, and in the lower and midrange of the market, huawei and other chinese venders

are really growing very fast samsung is in the middle of a battle between the very high end and the midrange where other vendors are taking shares. it's important they bring something innovative that really grabs attention of consumers >> excellent well, thank you so much for that we'll look forward to this launch event francisco, senior research director for european devices, idc. now, let's take a quick look at u.s. futures we are a few hours away from the open there looking at a slightly negative start to u.s. trade. this is coming after a marginally positive day yesterday. well, that's it for today's show i'm juliana at that timelebaum >> worldwide exchange is coming up very, very shortly. chops. you're searching for something more... ...red-blooded. right this way. you thirst for adrenaline, you hunger for raw power.

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