will change the world. that's the great thing about the future. you can predict all you want, but nobody really knows. thanks, you guys! [cheers and applause] thank you, thank you, thank you. hsbc shares could see the best in a decade after they upped it's stake in the bank putting the sector and broader european stocks higher siemens shares falling after it starts trading in frankfurt. the spin off will help the company focus on development in the sector. >> we're trying to convince

customers now of the steps in terms of turnaround. the applications of the energy technologies and at the same time we try to push to solutions. >> they block the white house from banning tiktok from app stores as they look to complete the deal with oracle and walmart and the nomination of amy coney barrett as supreme court justice creates a fresh battleground for democrats as president trump looked to rush through her confirmation ahead of the election. >> i understand that this is a momentous decision for the president and if the senate does me the honor of confirming me, i pledge to discharge the responsibilities of this job to the very best of my ability. lifting it's stake to just under

8% and reinforcing it's position as hsbc's largest shareholder. now the move comes after the share price dropped, similar margin to what you can see on the screen last year 25 year low last week. after being named in the media report alleging that large global banks flagged trillions of dollars of suspicious transfers. so this is what the shares are doing now. they're rallying by a similar margin to what they lost last year very interesting is this a dollar cost averaging trade? just underlining their position as you said, the largest shareholder in the company.

there's a lot going on here as well including the disclosures to the u.s. authorities about suspicious transactions. broader european markets though, as you can see, a very respectable rebound but it has to be said, the european indices took it again last week. the dax was down 4.9% and the cac down 5% and the ftse 100 down 2.7% last week. let's move on. a federal judge has granted social media platform tiktok a last minute temporary reprieve on being banned by the u.s. government without the injunction the trump administration would have forced companies such as apple and google to remove tiktok from their app stores last night.

given the injunction from the judge, it's still available. one of the interesting things is further restrictions set to come into effect on november 12th which would render the tiktok app unusual. they were set to argue that any infringes upon their rights. it claims that can be sent to beijing and used after the chinese government after the injunction the commerce department came out and said it would comply with the injunction but continue to defend the executive order from president trump claiming that it's consistent with the law and meanwhile tiktok was pleased about the decision and it would work toward a deal and that's the focus right now. what does this deal in the u.s.

look like cht? we know there's going to be an entity called tik tok global set up in the u.s. but we don't know what the share holding structure is going to look like. meanwhile, they'll have no ownership of this company. that's what we're waiting for now is a concrete term to the deal and will the u.s. approve it and will beijing approve it that's a lot of question marks given the negativity toward the deal in state edia this is something that you must

have been pondering for a long time this isn't about president xi and trump. this is about a long-term multigenerational issue. so is there something about the situation that our viewers are missing and they need to get a grip on? good morning, sir. >> thank you for having me on your show. this issue is big. it's unprecedented in so many ways it's unprecedented because u.s. trade policy being made by presidential executive orders rather than laws that already exist implemented by regulation authorities that are independent of the president but i think what's going on here is that there's a massive geopolitical shift in that the u.s. and china want to control three critical technologies artificial intelligence, 5-g, and semi-conductor technology. in the future you can add quantum computing to that list and they can be used for

civilian or military purposes and they have a national security aspect and tick tock is hugely popular 750 million global users outside of china it's gone from almost nothing to $100 million users in the u.s. that's almost a third of the u.s. population. and the issue is that the data might be transferred to the chinese government and might be used for surveillance or espiona espionage. >> will the division, the line between private sector and public sector interest be blurred further in this great battle you're talking about as well because we know the accusation from the u.s. to the chinese side is well there's very little division between the private

sector and the public sector, but will it be the same case stateside as well. will they be left to the private sector to find a way through or will there be greater state involvement? >> part of the problem is tech is unregulated in most countries. therefore there's no regulation in place to correct things it's dividing into the u.s. zone and the china zone they may have to split into two. and that's likely to continue even in a joe biden presidency.

>> it's only going to get worse. the talk about other such acronyms on it that's going to stay, yeah >> i do. countries like the regimes in russia and china have a different view than regimes in russia and the u.s. and how the internet should be run and what access governments should have today at a these are going to be enormous technologies going forward so we'll have two completely different standards going forward if this follows the route that you're talking about there as well. that's the end of globalization, isn't it >> i think it's the start of the end of globalization unless world leaders come together and agree to new terms but again, i

stress, part of the problem is because tech is not properly regulated. the issue here is data who controls the data. now if we have a system where consumers control their own data, let's say, if i want to leave facebook or tick tok and this kind of thing would be less clear. in the absence of proper regulation, clear regulation, i think the world is going to split. >> so let's go down that route as well. is there any sign at all that a common regulatory standard can be signed? i fear that that might be a bridge too far at the moment

they want to break up u.s. tech companies and in order to be successful you have to be big and you have to have scale you can't do ai without lots of data and that means scale. so they're inherently conflicted in terms of the way they want to regulate tech. >> what should our viewers do to make money and take advantage of everything that you just said? >> i think semi-conductor companies are in a position now where the u.s. builds up toward china building up the chip industry and that's one of the places that i would be in. there was vague talk about purchase of ericsson from a form of u.s. buyer as well. what happens we search the european and u.s. champions? >> yeah. regardless of the suppliers, a

lot of the 5-g equipment in the world is made in china so it may not solve all the issues the key is the chips used in telecom equipment. but they make a lot of the chips that the u.s. uses a crunch point is taiwan taiwan's semi-conductor that makes a lot of the -- which is the biggest family in the world and makes a lot of these chips a lot could hinge on the geo politics of taiwan. >> we spent a lot of time looking at this as well but has this also been a catalyst for technological innovation as well in the areas we have been talking about as well. covid has been devastating in many years but it's created a revolution in how we live and how we go about our business as well what is done to the pursuit of

greater technological knowledge in the areas that you specialize in >> yeah, people are working at home more and cloud computing numbers have become stronger and also what covid has done is in the race for a vaccine and the race for a cure for covid is being used so while pharma companies are doing well because tech is moving faster and could mean that the tech violations are going up

and that was clearly done previously. >> i saw that. it's tempting isn't it cyrus, lovely to speak to you. always a pleasure to speak to you and get your views the head of thematic research at global data. shares in smic trading lower after the u.s. slapped china's biggest chip maker with export restrictions sam filed this report. >> companies will now reportedly need to apply for licenses to actually sell equipment to china's big chip maker so this move is said to be over concerns that the equipment could be used by the chinese military which is something that smic has reportedly denied but this could deal a significant blow to china's ambitions now to compete globally when it comes to this technology because beijing has been throwing a huge amount of support behind the home grown chinese tech companies to be more self-reliant in the face of this u.s. pressure and smic is widely

seen as playing a big part in all of this. so this is being seen as potentially threatening to cutoff the company from this critical equipment needed to go into these chips now earlier this month, the u.s. did say that it was weighing up potentially putting smic on a blacklist as it really ramps up this broader crack down on chinese tech companies over concerns that they pose a national security risk and of course we did see the wider restrictions imposed on huawei recently, further limiting it's access to chips including from smic so as expected, this has drawn a pretty angry response from chinese state media. the global times called the moves against huawei an all out seize to paralyze the high-tech industry and suggested that c y china may need to go it along saying the country needs to prepare for a new march which does play into this wider decoupling narrative between the two sides. while there has been a lot of

attention on the tiktok story, these moves against smic and huawei could be more significant from a global economic standpoint as though could take a hit to global supply chains. back to you. >> excellent they have put so much money in terms of r and d and capital into the design of its electric vehicles they will invest in china between 20 and 2024. double those in 2019 they weren't enormous in 2019 but doubling up is a good sign

for them especially given everything else going on in the world. 15 different electric models by 2025 and jac as well but as i say, they're looking at 15 different factory or plug in electric hybrid models in china by 2020 will the new boss satisfy the activist investors coming up next

seems to be stuck in a range below 6,000. a massive week for brexit. i said it a few times over the years. june 24th, 2016 but we're in the

home straight now to see whether there will be a deal before the end of the year, whether the negotiators will get in some form as they call it for tense negotiations before october 15th in that meeting. we'll find out the french and the german markets both failed in terms of their blue chips up 5% last week they're clawing back up to half of that in terms of the dax up 2.4% 4.1% higher. shares though moving in negative territory down 3% as we speak. the head of german private banking as it's new eo

this is a huge challenge isn't it >> it is it's also an interesting choice to have the new ceo of commerce bank and he spent most of his professional career there and he showed that he is very good of restructuring insurance units such as the business in switzerland that was in bad shape before he took it on so i guess that's why they wanted to have him a, he's an outcider. apparently the major

shareholders and that's most likely needed because the old management and the chairman of the board were about to leave the company because they were calling it not ambitious enough most likely the new ceo who only will start the beginning of january will need to enact sweeping cost cuts in order to trim the bank into more profitable shape going forward and also will actually have a hard time coming up with a convincing strategy which also then will convince investors because you're seeing it right now that shares are close to record lows that are about four euro so i guess this will be the

crucial question whether they can manage to convince investors that there is a future for them. of course one could also ask you that that could again open the fantasy for more m&a action coming through the bank because clearly it's going to be in better shape it might be interesting to do that because their loan book is pretty big of course they will not be easy and now the power vacuum will last longer because it's another three months to go until the end of the year. >> one on the valuation of the stock, i've never seen a bank with a lower value

.18 and the second point and this is just a technical ssue they're not even earning their cost of capital for many years now and i don't remember when it was close to 8%. so i guess this is the crucial

thing. nobody sees the working business strategy they're not yielding a high dividend thank you very much for everything there's people in this building that haven't been on the planet 34 years most of them casino operators and caesars and british hill says they're in talks. they are looking to add it's sports betting business to its offerings. it has agreed to sell it's u.s.

assets for $1.4 billion. it will unlock significant value for shareholders the outlook for 2021 has improved after the first half of the year the company sited strength in the u.s. while easing coronavirus restrictions also benefitted levels. they're trading lower. not much the parent company also under pressure as they spun off and

failed the new eco said that the company is driving innovation and they'll ultimately decide how it remains in gas and perhaps ole and what do they want at the end. it's a decision of what we as a society have to do coming up, the threat of lock down reemerges. we'll have plenty more on street signs.

the spin off will help focus on the sector. >> we're trying to help in the steps of turnaround through the applications of energy technologies and at the same time we try to push through interim solutions. >> a timely intervention blocking the white house from banning tiktok from app stores as they look to complete the deal with oracle and walmart. >> plus the nomination of amy coney barrett creates a fresh battleground with democrats as president trump looks to rush through her confirmation ahead of the election. >> i fully understand that this is a momentous decision for a

president. opening up 30 points on the s&p. it was fascinating on the dow last week. ended the week down 1.8% but didn't have a good value on friday 359 points as well the nasdaq ended the week up on friday european markets are okay at the moment

look at that they reclaimed half of last week's losses. 1.4% up and trading 1.9% higher. european banks, let's just take a very quick look at where they are trading. as i said, hsbc 9% higher which is give or take what they lost last week, actually, a real concern about a whole host of issues not least past concerns about suspicious account activity shall we say. the banks and other banks to be fair say these are historic issues that have been rectified now. but a lot of the european banks finding a spring in their step today. so the spanish government is at odds over how to best tackle the second wave of coronavirus cases in madrid. they played 45 areas into

partial lock down but rejected calls for the spanish capital to be placed in limited confinement. they protest the spread of the virus in france's second largest city this is after one french leader called them unilateral, unfit and unfair so let's go through this we talk about infections but this is leading to concerns about the ability of icu units, opts and other facilities to cope with the rise of infections because infections is one thing but critical cases as we have learned is a completely different issue. >> you're right and that is the argument here for the spanish government and the french government in putting these restrictions and while the infection numbers in the death rate have not alarming, especially the death rate is the

pressure on hospitals and icu beds that is the concern in spain and madrid we have seen the hospital system being very much under pressure there. making them to shut from yesterday for the next two weeks to try to control the number of infections in that area. this of course got a lot of criticism locally. the mayor of the city saying it was unfair on how they couldn't worry about the economic impact that it would mean for the

second largest city in france. so we saw the french government try to communicate on this decision the health minister himself going on friday to discuss this. now we know that the president of the region is putting a legal challenge on this decision and again, something again, tensions we saw in spain and madrid the central government calling for the regional authority to put more restrictions in place it's the regions that have the power in spain to put the restrictions they put some restrictions in 45 areas of the madrid region and restricts movement and can only go for essential trouble at school or work saying this is serious for neighboring regions and while they tried to have a show of

unity with a joint press conference with the prime minister the criticism is coming into place and they need to put in place more estrictions. it's getting tougher in what looks like a second place. >> what goes in france as spain appears to go in germany as well merkel is being quoted and saying if things continue as they are with coronavirus, we will have -- this is over in germany -- we will have 19,200 infections a day as in other countries. she goes on to say we need to

quickly contain infections and intervene but we must also set priorities and keep the economy running for schools and kindergartens must be kept open. that's a mirror image of what we're hearing them say across the continent. so in the u.k., protestors have crashed with protestors of police thousands of demonstrators took to central london over the weekend as a growing number of regions faced local lock downs to curb the spread of the virus. >> let's get to our next guest that says the threat of new widespread lock downs is now the key risk facing the banking sector he is the managing director of banking and joins us now really good to speak to you today.

just tell us what your latest report says about the coronavirus and it's relationship at the banks. >> good morning. the first thing to say is that the banking system so far has weathered the crisis pretty well they have the highest in a generation and they worked them down and liquidity and funding metrics. the starting point was pretty favorable for banks. we do have negative outlooks now on about three quarters of the banking systems and over a quarter of our bank atings

and these restrictions are targeting social interaction and don't actually impact the economic recovery that much. so the risk to that scenario of course is that we lose control over the virus governments feel imposed to feel obliged to impose these big blanket lock downs and basically have marcha and april all over

again. and it seems to me that they're trying to find a new measure and evidence that negative rates don't hurt the banks but do help lending in the economy where do you guys stand on this? >> yeah, we just published a study on interest rates in the u.k. in fact, just last week and we do expect and what is important is the yield between 2 to 5 years on the curb because that's where they position their structure interest rate hedges and at the start of the year, those yields were about 50 now they're slightly negative. in fact, already we are seeing banks pass on some of that additional cost to depositors but it does create this rolling downward pressure on interest margins.

and we see this for banks to go below zero on deposit rates for retailer positives so in effect, your deposits become loss making and the other side actually is on the asset side, a key variable in interest margins in the u.k. and credit card balances that have high margins, they actually collapsed because people weren't spending money and that pushed margins down that will come back a bit as the economy recovers. >> let's circle back to your first answer with this answer in mind as well

do the actions of the central banks risk making the banks the problem. you talk about declining profitability. it's such risk making, deposit holding as well. does that put the viability of the banks at risk and make them part of the problem? >> i don't think we're at that point at all yet. part of it is just because the behavior of customers is changing so radically. and we have seen digitalization change the way that customers want to interact with the banks over the last few years. and banks have to transform their business models to adapt to the new way of working.

and that's just to do with the way that people do business and interact with their -- interact with companies and buy things and so on today. >> you're not an equity analysts you're a ratings expert as well. what's the best in class in europe in terms of names what is the worst? >> we do see quite a lot of regional variation and in reality we do see the differences between countries within the region. so for example, a lot of our focus has been on italian banks. it's one of the most affected countries economically speaking and the starting point going into the crisis was weaker than

most other european systems. and that means that it's more vulnerable than for example in the u.k. even though the u.k. is going to do almost as badly this year it's the starting point and it's much more favorable in the u.k. >> excellent thank you very much indeed for your time today. managing director at moody's something very exciting happening on brexit at the moment is he getting to that crunch point where something either will or won't happen and we'll know what's going on i don't know a fresh round are set to kick off on tuesday a lot of hard work remains before they could reach a deal ahead of the formal end of the

transition period on the 31st. i'm excited. she'll be bouncing off the walls. is something interesting happening silvia >> well, we have seen positive commenting the last few days, steve, essentially suggesting that they could indeed find this agreement between both sides but we still need to monitor and see where this process will go because the reality is despite the positive comments they're still on the table so one of them is happening today. and essentially if it's implemented it would override

parts of the agreement that's an issue the eu has with that internal market bill. they'll be discussing that today. let's see if there will be positive comments, whether these positive comments will carry on today. the second event is that this internal market will move to the house of lords on wednesday and there's a question mark as to whether the lords will ask for changes but amendments to this bill because that could perhaps ease, if not overcome the standoff that we have right now between the eu and the u.k. over this piece of legislation. and the big event this week is the trade negotiations they start on tuesday and are meant to last until friday in brussels in previous rounds they have come out and said there has been no significant process and the critical point here is that this is their final round that they have scheduled before that mid october deadline so let's see what will happen

this week there's a lot happening when it comes to the brexit front but by the end of this week we'll get some certainty about where this process is actually happening. >> we said that a few times. let's hope so. coming up on the show, president trump announces his supreme court nominee. more in the battle to confirm here after this break on street signs.

>> house democrats are proposing a $2.4 trillion package in an agreement with the white house besides the bill, far less than democrats had initially proposed but more than the trump administration said it will approve. president trump nominated amy coney barrett. she would become the third supreme court justice appointed by the president

tracie potts joins us live from washington tracie your job is so exciting this week. there's so much going on we haven't even mentioned about tax returns and presidential debates. you must be bouncing off walls of excitement this week. >> yes well, we're definitely going to be busy here in washington trying to keep you informed about all of this. so you mentioned amy coney barrett. let me start with that the president's supreme court nominee will be on capitol hill starting tomorrow throughout the rest of the week meeting with lawmakers anticipating her confirmation hearing two weeks from now which democrats don't seem to be able to stop although they continue to talk about it the big concern is with the conservative majority on the court they could get rid of the affordable care act and 20 million people would be without health insurance unless congress finds a way to replace it.

then the president's taxes the new york times is reporting the president paid zero in federal income taxes for 10 out of 15 years. they examined more than 20 years of his personal and business tax returns finding that in many years he claimed millions of dollars in losses and they're still due soon the senate was all fake news that he talked about the state taxes and other taxes but when it comes to the federal income taxes he paid $750 which is a whole lot more than a lot of americans did. and then the debate tomorrow night. a number of different things that they'll be talking about at that debate in cleveland including race, big issue here the integrity of the election, covid, the impact on our economy

and of course the president's supreme court nominee. >> i kid you not, tracy, we're all just so excited about what happens with this at the moment. i do will be looking at this it starts at 2:00 a.m. local time in the u.k. in cleveland. that's going to be a rubbish night's sleep. thank you for everything really exciting times. yeah, 2:00 a.m. local time 9:00 eastern time. that one in cleveland at the case western reserve university moderated by chris wallace an anchor at a place called fox news whatever that is we'll have a look at the european markets >> i'll do the u.s. first. we're higher on the u.s. futures. so much to look forward to i haven't even mentioned on the show the small matter of payroll data so enormous amounts still to come. the european indices, they look like this. the ftse 100 just giving it

back it's 146 as well i noticed that the euro versus the green back a very good week last week up around 1.8%. have i got times to show you the banks? i have let's do this. hsbc up 8.h4% and in europe, deutsche bank. that's it. that's it for worldwide exchange coming up next here on cnbc. ♪

house speaker nancy pelosi says a coronavirus stimulus deal is possible. a live report from d.c. coming up lots of deal news this morning including caesars and sports betting giant william hill and we heard from you on one of