this is just automotive jewelry, isn't it? it's just beautiful. but there's one hard and fast rule about supercars. >> there's nothing about it that should be rational or practical. >> if you have to ask the price, you probably can't afford it. ♪ very warm welcome to "street signs. these are your headlines so banks and financial services are pull the european stock markets higher while u.s. futures point to a higher open amid ongoing stimulus hopes. the biggest gainers as the swiss asset manager sees profitability improve due to increased client activity.

>> philips beats expectations in the third quarter, sending shares higher in early trade this as the dutch health tech company also backs its outlook. >> the world needs more productive health technology, find new ways to connect patients to doctors, overcome the pandemic and philips is very well placed for the coming years to benefit from that. and china's gdp rises 4.9% in the third quarter as strong growth in retail sales and industrial production support the economy's rebound. but the data slightly misses expectations so, there are three parts if i can put it more -- sub sectors and ideas, one, what's going on

politically and economically and on a corporate front this week promises a lot of information on all of the above. maybe not conclusive information. as the u.s. elections. such as brexit we're getting to a very key crunch moment as well. because let's face it, we've got around 15 days until americans have their vote, they're already voting in droves by the way in the u.s. election. not much longer until we're on the crunch point on brexit a couple of key political issues will gain clarity over the next couple of weeks. on the economic front as well, you want more information, you're getting more information. a couple of those key piece of informations started on friday and carried on to this morning the u.s. retail sales were way better than expected way better than many of us had feared because of the concern

stuttering job creation. concern of lack of stimulus on the fiscal front so far. so, we have that information then we've got very strong data out of china on the retail front. on the gdp front on the fixed asset management front. apparently you were disappointed because the move on some of these individuals done 300%. elsewhere actually, there was quite positive reaction on a lot of the -- and that followed through on the european indices. although stuttering progress that was up, now given back a lot of that ground, is it because that old chestnut, the pound, and its rallying on the hope of what i can't trade uk ministers, if i

did i wouldn't because you got one saying one thing and boris saying another thing and the housing minister saying another thing so, do we've got talks or not? according to prime minister we're done there are talks about talks going on today are they talks or not talks? yeah, exactly. here we are, anyway. the pound rallies dutifully to that old axis point of 130 trading on some of these as well -- you've got a little bit of negativity. i'm modestly surprised about that the auto's data out of china were okay. you still see positivity for the sixth month in a row let's face it, way in advance of the pandemic, we saw zero sales

growth, now we're giving back a little bit of ground last week it was the biggest declining sector out of the state, down 3% here we go, financial services and insurers doing well. banks making a move to the upside i think all four of these are really interesting today in their own way. i'll try to open it as much as i can. improving profitability in 2020 after third-quarter results showed a continuation of its strong performance in its first half help the wealth manager grow, pushing net profit to jump 43% julius bahr said it would take a while for its struggle iining ia unit

around 1.3 price to book going forward. yes, this one already trades at premium. they have reported a rise in profit profit, boosted by -- they have increased demand for personal productive equipment that drove sales higher as well. what's very interesting, they do what they say, they're an investor, they're building up assets i spoke to the ceo and he told me how he views market valuations in the current climate. >> the developments that we have seen with the economy coming back, very low interests in

combination with of course hopes for pandemic, an expansion in the market, having said that, i must say that the valuation is different between companies and different sectors. irregardless of where the stock market is we're always trying to find opportunities >> who do you think the third biggest shareholder is in astrazeneca? yes, no clue could be interesting, lot of faith in them. i was speaking to the top man here, philips expected a better than expected jump in earnings high demand for hospital equipment during the pandemic which helped an increase in

sales. i spoke to the ceo earlier, the company is looking to update its growth targets in the next year. >> so, phillips is well positioned to benefit from trends in applying cloud technology, big data, connected care, getting to precision health, precision diagnosis and treatment. so we're at the right spot at the right time >> right spot at the right time. had to be. nine years this company the evolution of this company, all the gadgets that you still got in the loft, so he had to be in the right place at the right time. i think the numbers were good but the company had to deliver in the current climate digital healthcare, medical equipment, if they didn't do well in this current climate --

it's reviewing its growth target in the wake of pandemic it also posted a 2.5% sales due to the weak performance -- it trades at a significant discount to the sector, ran the slide rule again unilever, compared to procter and gamble the trades, significant discounts, of course, the shares are rallying today because they're looking at the portfolio and they're going to address some of these issues thanks very much, steve. i want to give you a look at u.s. futures and how we're poised to open up on wall street after a challenging week last week this morning, u.s. futures are pointing to a positive start to trade at the end of the last week we saw the s&p 500 and the dow manage to close slightly higher on friday after three

straight days of losses. and the tech-heavy nasdaq posted its first four-day losing streak since september. after some losses were incurred last week. investors keeping an eye on stimulus and the financial presidential debate coming up. a lot both on the political and the maco-economical front. asian markets, chinese data overnight, we've seen a mixed reaction chinese stocks have come under selling pressure outside of china the asian regions are rallying this morning. steve, i think you got the detail on what the data showed >> very interesting. i'll move quickly over here before i go back, look, this is the hashanghai composite

put this in context for you -- u.s. markets are still, what, 3%, 4% from their record highs as well. the chinese markets, plus 9% before today's move on the upside for the chinese markets a stunning performance in what has been a troubled year to say the least in global stock markets, giving back a little bit of ground, why there was a little bit of deflation on expectations as well. these are numbers behind me. chinese economic recovery from the pandemic has strengthened in the third quarter. just shy of expectations retail sales come in cement at their quickest pace since december 2019. yeah, rising 3.3%. chinese industrial production also improved its production a numberof guests spoke to cnb about the chinese data pointed to challenges earlier in the fourth quarter. >> if the coronavirus remains

under control, most likely, the first quarter we may see a continuation of the recovery but on the other hand i'd say we may have see the sharpest part of the future rebound as the economic activity approaches the potential level of the economy >> we have plenty of statements from the national bureau of statistics, about the economy, their biggest concern is employment, so employment will weak expectations, that will get fed back into weak consumer confidence and i do think the other country still have challenges the graduates all need job, how is that going to be generated? beijing still has its work cut out. >> steve and i are now joined by the chief economist from ubs, aaron capitan. we're just hearing there, some

initial reaction to the china data that was out overnight. your take on the data and perhaps the implications that you see for the rest of the world, what's the read across from this china data in growth in other parts of the world sf. >> yes, so, the data was fine, where the weakness is what we can't monitor which is services, all the high-frequency data is good at manufacturing but not really services. i think you know the unknown and uncertainty around our forecast is what's truly going on in segment of the economy that we're not monitoring number two, china has done less stimulus for the household sector than most countries part of the weakness, they haven't stimulated there their money have gone to corporates and properties. the margin, that's interesting, because everybody's obsessed is

what's going to happen in stimulus in the u.s. and elsewhere. for me, the final takeaway on the chinese data, there's now some weakening in inf infrastructure, the lever they were pulling to get things going. now, it may be that property's so strong that local governments don't feel the need to do something there. that's a little odd. by and large, i think it's a good set of data, they're probably going to print about 5% in q4 and the read across from china as long as you have the virus under control you'll continue to recover and normalize. >> aaron, you mentioned u.s. stimulus and the fact that investors are obsessed with watching the stimulus talks in washington, do you think that's

right? should investors be putting so much weight on further stimulus? >> yeah, i don't think they're expecting anything pre-election. there's a massive decline in government transfers and disposable incomes the fear was, it was going to hurt q3, and it didn't big lag between income decline and spending we'll probably see it in q4. next year that cliff is much bigger at some point you'll need new stimulus to be improved. for now, market's happy to wait if we don't get something in the lame duck, then we'll certainly get something in january if we get it sooner an upside. >> aaron, i love looking at your key issues and concerns about various issues, is a vaccine

priced in, it goes against conventional wisdom and what i think by and large, does a vaccine need to be priced in given success some countries are having albeit outside of u.s. and europe, having a vaccine in place, can we move beyond the state of argument that we need a vaccine to move to the next stage economically, but a vaccine is key in every assumption we're making going forward. >> 20% below normal. that last bit of normalization is why we're still stalling. the data, the layer markets, is because we're not having the vaccine. without a vaccine very difficult to see that part of the economy recover, and i think you raise another point is that the fact

that within age bracket, death rates have gone down so much, why governments are still despite the surge in virus, the restrictions, that's the biggest risk all this focus on the election and the stimulus, as of last week, the net number of countries that increased mobility restrictions was riding at the highest level since april. if you run the regressions on what explains the year to date outcome it's all about variable. if you go back to the mini-lockdowns in a bunch of countries in europe suddenly you're not talking about positive growth in q4, you potentially have a negative number and you double dip. we've had a decent recovery in the labor market, but we're now stalling

and we're now right at the point where governments are struggling to hold the line and not reimpose those restrictions that got us into trouble in the first place. i think we need a vaccine. >> again, very thought provoking for small amount of words. u.s. elections and fear of a trade war as well, i personally don't see how u.s. elections will change those longer-term fears about a trade war given the pressure is on the democratic president and democratic establishment still as they are in a republican administration. >> that's fair in the sense you're not going to see a rollback of tariffs whether it's biden or trump, there's no rollback of tariffs, is that we under a democratic presidency is more of a multinational

approach so, in that sense, you get that potentially with the biden presidency what we fear under a trump presidency we go back to renewed escalation and a lot of the same things we saw in 2018, 2019, so, you know, we're just recovering on the global trade side, it's going to take a good chunk out of global trade growth and a good chunk out of investment globally, people will be less confident that demand is going to hold up, that's the fear, we've been in these calmer waters now for close to, i guess, coming up a year, since the phase 1 trade deal the moment we get a new administration and if it's trump then we escalate that range is quite large. people focus on the fiscal outcome range but the trade

outcome matters economically >> thank you, aaron, the chief economist at ubs coming up on the show, italy, france and germany see new daily virus cases hit record highs this weekend as the second wave starts.

♪ trading in all cash has been halted due to a technical issue. halted in all products until further notice, before any trading resumption pre-opening phase of at least 15 minutes let's move on, italian prime minister conte unveiled stricter covid-19 restrictions on sunday. mayors will be required to close public spaces and squares from 9:00 p.m. while many public events will be suspended conte said the country can't

wait waste time but will be a far cry from the total lockdown in the spring. the total number of infections to over 720,000, this comes as london as well as other regions including essex and york move to stricter measurements over the weekend. the opposition leader has called for a three-week circuit breaker to bring the rise in cases under control. spanish authorities have ordered bars and restaurants to shut for 15 days in catalonia. officials have placed new travel restrictions on cities with high infection rates including madrid and salamanca. france, 20 million french residents living in paris spent

their first nights under curfew this weekend as new daily cases reached over 32,000. an update on what's happening in france, charlotte, not only were residents dealing with these new restrictions this weekend but also dealing with the fallout from the tragic murder of a schoolteacher outside of paris >> that's right, two marquee events, contrasting efblgtss this weekend, you had this curfew, the first night of curfew on saturday night, the lockdown in nine cities including the capital of paris, everything shut down from 9:00 p.m. to 6:00 p.m. a at least for the next four weeks. a third of the country the country is trying to tackle this second wave of infections, a new record of 32,000 new covid cases on saturday alone, so the government trying to tackle this, trying to strike the balance with keeping the economy

going, people going to work, at least two, three days a week, as well as working from home, keeping schools and shops open as they try to handle this you new wave parties, et cetera, is when people let their guard down. try to strike this balance by putting this curfew in place for the next few weeks and at the same time, we had this on saturday, on sunday, you had this gathering across the country, tens of thousands of people getting together to pay tribute to the professor that was beheaded on friday night in a suspected terrorist attack, a deeply shocking event for the country and there was this contrast between the curfew and gatherings protests aren't banned in the country during this shg, they'ro

banned because they're considered a key of a democracy. a national tribute will be held on wednesday after this very tragic event so france as you said, facing these two very big threats in the country, second wave of covid and this terrorist threat very much present in the country. >> charlotte, thank you so much for reporting for us let's shift gears and talk about what's going on in germany, chancellor merkel has warned of tough days ahead as she urged people to stay home to stop the spread of the virus in country. another daily record of new cases on saturday despite tougher measures announced just last week. let's get out the annetta. what was angela merkel's message to the country >> well, the message is quite clear, people should stay where

they live, they should stay at home clearly the virus is currently spreading at an accelerated pace and some people are already saying this is exponential growth that we're seeing right now and that needs to be stopped. early on last week, angela merkel was saying that she's monitoring with the situation with restrictions in place for another two weeks and if the pace of infections is not going down there will be tougher restrictions compared to other european countries, the restrictions are not very, very strict here in germany. so take a listen to what she said about how she's concerned is about the virus spreading faster than in the summer. >> translator: the pandemic is spreading rapidly again, even faster than at the beginning more than a half a year ago, the comparatively relaxed summer is

behind us. how our winter, christmas will be decided in the coming weeks and it will be decided by our behavior >> so currently it's more like when it comes to regulation in germany, cities that have surpassed the value of 50 infections per 1,000 are considered high-risk regions, in those restaurants have to close at ten or 11, until 6:00 in the morning and also, a private meeting should be restricted to ten people and to households, but that's not the whole of germany. it depends on where you live and also we had some travel restrictions in place, lodging ban for people coming from high-risk regions but currently that's appealed by many courts

here in germany, because clearly that's quite patchy and for some people causes lot of problem also when it comes to business travel so for now, not so many restrictions like for example in france, but i think we're on the way to get more of them. back to you. >> all right, excellent work thank you for that. coming up -- we'll speak with the siemens energy ceo. as the firm is set to kick off a virtual conference on sustainable energy

♪ these are your headlines banks and financial services stocks pull european markets higher as stronger than expected earnings boost sentiment while u.s. futures point to a higher open amid ongoing stimulus hopes julius baer among the

biggest gainers, thanks to increased clients activity. >> more than 30% spike in earnings in the third quarter sending shares higher in early trade this as the dutch health tech company also banks its outlook. >> the world needs more productive health technology, find new ways to connect patients to doctors. overcome the pandemic. get to precision medicine and philips is very well placed for the coming years to benefit from that >> china's gdp rises 4.9 .strong growth in retail sales, support the economy's rebound but the data slightly misses the expectations out there let's get a check on european markets, an hour and a half into the fresh trading sessions and stocks are moving

higher, a rebound from last week when it dropped about 8/10th of a percent breaking a two-week win streak, this morning we got green across the board, leading the gains in terms of the regions, last week, the ftse was the key underperforming region in europe. restrictions a focal point for investors. the final presidential debate in the u.s. and earnings season getting in full swing let's talk about oil, we got the opec meeting where they're expected to discuss the weaken oil demand steve? filmmakers and business leaders from the middle east and africa, are set to discuss

sustainable in their region. hosted by siemens energy this event comes less than a month after the company's spin-off from siemens. delighted to welcome to the show christian bruch. christian, always a pleasure speaking with you, sir is is there a sense that a virtual conference on sustainability and sustainable energy has to encompass the realism about the limitations that sustainable energy can give us as a developed economy in the short term as well, i don't think we get a sensible conversation about what's really achievable on sustainable energy, sir. >> thank you very much for having me. yeah, it was interesting, i think it came with a lot of really good questions, lot of good details, exactly around

what you were just indicating in terms of what is all the differences that we need, i think the discussion shows that people understand that we'll have a diversity of solutions, not only renewable, it's interim solutions and it's also driving efficiency and this is something that i was pleased to say when we kicked off the conference this was discussed in th eed an driving the different solutions that we'll require over the next couple of years to change things because things won't come overnight. >> studying and discussing energy with some of the top people as well is the middle east, one could add say sha, i want your expertise, there's a difference in attitude with global energy supplies, what's achievable and what's desirable from middle east and asian

investors compared to your western investor, do you see a similar -- >> i think what we definitely see, you'll have areas, heavily dependent on coal and oil at the same time have to supply growth somewhat in terms of electricity market which will require solutions which are much more -- interim solutions like natural gas so you'll see a bigger shift in natural gas than in areas like europe. at the same time, the picture is diverse in all the regions that i'm talking about. renewable will play a key role the question is, what can we do in type of regions to change the underlying fundamentals of the energy world, which if you take asia for example, 50% based on

coal the first target for these regions very often is just to make sure that the supply is there and in this regard i think the discussion is around can we have the supply available and then at the second step, can we make it also sustainable >> let me ask you about your progress when it comes to hyd hydrogen is the future when it comes to energy supply, but it's quite difficult, right >> well, we invest in hydrogen every year, we just deployed the next project into china there, based on our technology, we're discussing new projects outside of europe from renewable to a

mo molecule it will take time when hydrogen is available on a commercial base i expect after 2025 we have to be aware where we demonstrate pilot cases that we can do this but the conditions in the energy market have to change to make green hydrogen viable. today it's too expensive in terms of the operation in particular, lot of things still have to have happen, even so, we continually demonstrate new projects the applications of green hydrogen. >> christian, in terms of operational performance, investors seem keen to see profit margin improvement now that you've spun out from siemens, what do you expect to be able to deliver in terms of market >> we indicated that we want 2023 to show 8% of margin before

special items, a significant uprise in terms of our profitability. at the same time, having spoken to really hundreds of investors over the past couple of months, i think investors expect two things from us, one, an uprise in profitability, the second piece is also how to drive a portfolio to a future state. how do we invest in service? something we're trying to push at the same time. >> in terms of your overall push into renewables i certainly take your point about a more realistic time frame for transitioning away from traditional fuel services, it looks like you're involved in generating 1/6th of the world's -- when you would expect the shift to come where

renewables account for a lion's share of your revenues. >> three things in our revenue, electricity generation, we expect to grow proportionally and the third revenue stream the improvement of existing assets, making processes more efficient, electrifying, automating processes in industries and through digital solutions make these existing assets more efficient. so we're always going to see these going forward and i would count all of these obviously relating to renewable, today more than 50% of our revenue is somewhere between renewable and transmission

i expect really going over the next decade to tremendously change in many areas, changing around portfolio and how the energy market is changing and christian, thank you chatting with you again we look forward to hearing some more headlines out of your three-day virtual conference, christian. virtual discussions today over post-brexit trade the door is still ajar for further talks, sylvia, are these talks about talks or they are talks going on at the moment >> i'm afraid they're talks about talks. "the call" that will happen today between the uk and the eu chief dpoesht or the, what they described the structure of their talks.

if indeed both sides still want to have further negotiations, because the reality is that there's this fresh impasse, we're not really sure at this stage how these trade negotiations will unfold on friday the prime minister told the uk businesses to prepare for a no trade agreement, starting in 2021, but of course, different head of states across the eu have made it clear they'd like trade negotiations to continue in the coming weeks, they believe there's still that window of opportunity to bridge their outstanding differences. at this stage, what we're witnessing is the uk saying it's up to the eu to make proposals at the same time the eu has also called on the uk to change its position and to change its approach in the negotiations in this context these remarks yesterday to sky news repeating

this statement from the uk government that indeed it's up to the eu to change its approach if it is to reach an agreement. >> the ball is in his court. we made clear that we need to change an approach from the european union i know that he'll be calling david frost over the course of the next few days, let's see if the european union appreciate the importance of reaching a deal and the importance of moving ground. >> the reality, though, is that when you look at the specific language from both sides, none of them have actually said that this is it, there will be no trade negotiations, so that's giving some hope to those out there that a trade agreement will be achieved we can't forget at the same time, steve, they're there's still impass over the internal market eu has made it clear they won't change any new trade agreement

with the uk while that legislation is not corrected >> so, let's go on the worst case scenario for those people who want a trade deal, so let's say that there isn't a deal between them, there will be lots of mini-deals, so everything's off the table, lot of deals on transportation, on aviation, if there's a final no, there will be mini-deals? >> we're not really sure so the expectation is that that could actually be one of the possibilities, so in order to avoid chaos and okay economic collapse from both sides, they could come up with some smaller deals on different issues but that's not what they're talking about right now, that's not their stance, because when we look at their remarks throughout this process, they always say that nothing is agreed until everything is agreed so they want to really bridge

their differences, they want to include all of these mini-deals that you mentioned on transportation, on security, in one broad agreement, that's why this process is so difficult but that's what they're still talking about their aim at this stage. if that doesn't happen, though, a range of possibilities are possible, are out there, and that of course includes the so-called mini-deals but ultimately both could actually decide to postpone this framework that we have right now where the uk is still complying with european rules, if that's what they want to avoid as some sort of collapse indeed and certainty in 2021 if they don't want that as well the most likely outcome is to trade -- that will of course mean higher tariffs and barriers for exporters on both sides compared to what they have right

now which is zero tariff agreement of course because the uk is still a member of the eu single market. lot of question marks will be open there if they didn't reach a trade agreement. >> one thing is clear, if there isn't a trade there will be a lot of fish. new zealand's jacinda ardern won in a landslide the new zealander leader pledged to govern for all citizens and improve the pace of recover xwr covid-19. coming up, we'll speak stimulus house speaker pelosi says she's optimistic on a pre-election deal

♪ the u.s. has reported more than 69,000 new cases over the weekend the highest number since late july. the total number of infections in the country is now well over

8 million. infectious disease experts have warned of a substantial third wave that could become more severe in the winter months. dr. fauci said it was not too late for americans to accept widespread public health measures, wearing masks and maintaining social distancing. >> how speaker nancy pelosi has given the white house 48 hours ending tuesday to strike a deal on the next coronavirus relief package the speaker said she's optimistic a deal can still be pushed through before election day, the democrats are sticking to their point $2.2 trillion relief plan as opposed to the $1.8 trillion proposal put forward by the white house last week president donald trump has once again blamed the democrats for refusing to accept the white house-backed stimulus plan but said negotiations may still

yield result and we're talking about it nancy pelosi may be coming along. they want to do it, i want to do it >> the u.s. senate is set to vote on the republican party's proposal of $500 billion narrow stimulus plan on wednesday the democrats had rejected the same proposal last month saying the so-called skinny bills wouldn't be enough to stimulate the economy. senate majority leader mitch mcconnell said the republican plan would deliver urgent help to families amid stalling. >> tracie potts is live in washington, d.c., a big week for d.c. not only are we eyeing the stimulus talks very, very closely, also we've got the financial presidential debate

and now just over two weeks away from election day, where are the two candidates going to be focusing their efforts >> reporter: well, on battleground states, those swing states where we know either the polls are tight or historically their votes are make or break for this election. we saw it over the weekend with president trump in nevada, he was courting latino voters there, he was defending his coronavirus response and other things he said on the campaign trail. we saw it with joe biden in north carolina, another battleground state, attacking the president on his coronavirus response, covid-19 has become a big issue at these campaign rallies, now today the president is headed to arizona, joe biden we're told is going to scale back his travel back a bit in preparation for this final debate on thursday we expect it to happen and not

get cancelled. word that president may back off a bit, not interrupt and give him some leeway to explain some things about whether or not he wants to expand the size of the u.s. supreme court that's what our week is shaping up to look like. biden is rolling out a number of new battleground state ads this week, that advertising the result of the extra money that he brought in in the last month. we're now 15 days away, just over two weeks, as you note td, from election day. >> tracie, thank you so much for keeping us up to speed on the latest look forward to your continued coverage throughout the week. let's get a check on u.s. futures and how we're poised to open up after a choppy week last week we got green on the board. a rebound for u.s. stocks and at the end of last week, we saw the s&p 500 and the dow close slightly higher on friday after three straight days of losses,

so it looks like that positive momentum will continue and okay investors suggesting that fresh data out of china overnight shows that the recovery continues. steve. >> that's it for today's show. worldwide exchange is up next. we'll be back soame time, same place tomorrow ♪ you can go your own way

♪ go your own way your wireless. your rules. only xfinity mobile lets you choose shared data,

unlimited or a mix of each. and switch anytime so you only pay for the data you need. switch and save up to $400 a year on your wireless bill. with the carrier rated #1 in customer satisfaction. call, click, or visit your local xfinity store today.

it's 5:00 a.m. at cnbc. ready to run stocks set to keep october's win streak going futures are higher >> maybe because in washington optimism around the latest leg of taxpayer spending, even as speaker pelosi sets a hard new deadline. new comments out of the uk about its covid vaccine. bringing boeing back what one airline is saying about the grounded 737 max and its plans for holiday travel have you