tv Street Signs CNBC March 6, 2023 4:00am-5:00am EST
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>> i might head on down to their rake but they will probably have fun tonight. >> they are going to have a really good time. congratulations to eli and congratulations to hunter lawrence. what a ride the 250 in dominating finish. ♪ . good morning welcome to "street signs." i'm julianna tatelbaum >> i'm arabile gumede. these are your headlines >> european mining stocks fall as china lays out a modest growth target of 5% for the year during the national people's congress outgoing premier shows a tough economic back drop. >> the economy maintains stability in overcoming issues
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the chinese economy has shown strong resilience. credit suisse shares claw background after heavy losses as top shareholder sells remaining stake in the swiss lender amid doubts over the strategy of the overhaul. arm looks to raise $8 billion of valuation with $50 billion following the chip designer's decision to shun the uk in favor of the u.s. listing. wall street eyes a madodest start after last week's gains as the fed chair's testimony is expected to lawmakers. good morning warm welcome to "street signs.
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this morning in europe, we are digesting news from china. the country set a modest target of 5% growth this year after another covid curb this comes at the national people's congress which kicked ove off over the weekend the premier said they are still facing several headwinds >> translator: at present, many difficulties confront us global inflation remains high and foundation for stable growth domestically needs to be consolidated insufficient demand is a problem. >> china's parliament will vote on reforms to the cabinet and the lineup for the next five years. this includes a new premier. evelyn joins us from beijing as we unpack more
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what is actually happening here outside of the growth figure of 5% for 2023? even the reforms are set to be of key importance as well as we head into another day of the npc. >> thank you one of the next things we are waiting for as the two sessions, national people's congress gets way in beijing are details of the reform the schedule looks like we are going to get some initial draft out on tuesday and later in the week, there will be more discussion and a vote on friday morning in beijing so far, we don't know too much of what will be changed. some signals from state media and head of mpc havesaid there would be some discussion of finance and tech and the party presence in private non-state
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owned enterprise a lot of this is uncertainty for businesses in china. they've been looking for clarity, especially confidence as we emerge from the covid pressures of the last couple years and as we get into the new leadership not just for the party, but also for the chinese government so, it is all of these different factors hopefully will get more clarity in the next couple days. there are lots of questions on the changes and how they will be i mplemented because if you have more consolidation of the leadership, that will lead to more efficient rules there are also questions of the increased growth in the economy. people are waiting for signs of confidence for the year ahead.
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back to you. >> evelyn jiang in beijing thank you for joining us christian keller is the head of the economic research of barclays joins us. thank you so much for joining us in studio. the discussion point could be we have seen the end of the high growth era for china or the authorities are being cautious what's your take >> it is important to distinguish the element here and structure element. the 5% growth target shows the authorities acknowledged that structurally china is slowing. we had 5.5% growth target last year it massively undershot it was 3% eventually we will signal grow at 5, but don't expect stability for markets, the safety element is important if they reach 5 and have a chance to overshoot the government likes to give a
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target and grow more we have more than 200 basis points difference from last year to this year for markets at the moment, this is the relevant measure. >> could this be a level that is the baseline they are willing to reach and accept 5% and not lower? could this sort of be their middle ground if you want to call it that >> i think it is a floor they saet it low so they know they can reach it. i would be surprised if they don't reach 5 this year. we were not in the camp of 5.5 or 6 as some speculated. they can reach 5 they may overshoot this year >> what is that imply in terms of the stimulus we can expect from china if they hit 5 or modestly overshoot >> they don't need that much stimulus because of the low
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base gdp can the math and carryover they increased the fiscal deficit to 3%. they increased the special bond quota for local governments. they do a little bit on the monetary ide probably not cutting rates, but injecting liquidity and reserve requirements, et cetera. that with the stabilization and profit market with consumption coming back and i thought employment figure was interested they added more on the jobs they want to create that should revive consumption 5.4% growth. >> okay. what about the game plan when it comes to technology? we know china has been trying to ramp up self reliance with technology and there's a ton of shifting happening in the chip space. do we have detail how china will
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support the technology sector and thinking about the strategy for the year ahead >> in the speech yesterday, we didn't get much details. we saw self reliance and self strengthening. markets did understand, but i emphasize the measures by the west on the ban on chips and exports is massive china had the goal of being a leader in a.i. the fact they are now being cut off of some of the chips they need to import is a big deal i expect we will hear more of it we heard earlier on some pleas in a way to the large businesses in china to come together and to work on new technology it will not be easy. it will take a few years >> i don't know if you want to go for it, but i was going to talk about the new leadership in place right now as well. i say new leadership, of course, at the top of it is still the
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same it is critical how that new leadership boosts the private sector confidence then could that be more important than fiscal or monetary policy at a time like this for them >> i think that is a very good point. a lot of the slowing of growth is not only due to what they did on the fiscal side, but regulatory space the messaging to the private sector over the last few years was to de-leverage and not prpro global the new leadership is not democratic, but leading shanghai and then expected to be a bit more magpragmatic. >> really interesting. i wonder to what extent that pragmatism filters to foreign
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investment a story circulating over the weekend, mark mobius is saying it is hard to get capital out of china, not because they officially made any push to impose capital control, but a lot of barriers to retrieve money he has in shanghai is it a safe environment to even v -- to invest in and can we afford pragmatism? >> it is interesting the speech showing they want to attract foreign investment at the same time, you hear the talk about increased defense spending and self reliance they clearly are acknowledging more political geo t-- geopolit
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tension. china is the next place to be structura structurally still growing more than the west on average now, i think, geopolitics plays a role and one can see it with the flow into china. >> christian, we have to leave the conversation there thank you for joining us and sharing your thoughts. christian keller from barclays for more on the china's people's congress, check out cnbc.com. coming up on the program, one of credit suisse's longest investor says enough is enough and ditches the entire stake we'll discuss after this has no idea she's sitting on a goldmine. well she doesn't know that if she owns a life insurance policy of $100,000 or more she can sell all or part of it to coventry for cash. even a term policy. even a term policy? even a term
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greatest roster ever assembled. the monster, the outlaw... and you can't forget about the boss. sometimes- you just want to eat your heroes. the subway series. the greatest menu of all time. welcome back to "street signs. let's get a choeck on the european trade the stoxx 600 is building on the gains last week when it rallied 1.4% the second positive week in the last three we are building on those garins. a lot of focus on china as we discussed after the break with
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the national people's congress with the growth target of 5% for this year. some say that shouldn't be disappointing, but a responsible move to target 5%. others saying it is not as ambitious as expected and the hope would be to provide more stimulus which would have implications for the broader global economy the ripple effects of china gr growth the regional split with the ftse 100 pulling back 0.1%. cac 40 is up .60 dax is up .30% swiss market around the flat lo line we are also seeing action in bond markets this morning. last week at the end of the week, we saw a retreat in treasury yields. yields moved lower after the sharp rise of the course of the week now in europe, yields are moving
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lower across the board a lot of the move lower is focus on the longer end of the curve 10-year and 30-year is moving. the 10-year bund at 1.76%. the largest weekly move higher this year. we are moving lower this morning, but after a move higher over the last seven days now in terms of sectors, interesting split. basic resources is under performer. that sector down 2%. we looked at the regional split. ftse 100 is moving lower in the basic resources names. travel is up 1%. retail and oil and gas holding up well. in terms of the miners,minors,
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broad based with the sector move and on the back of the china growth target which came out sensitive. the fact we are not going to get a flood of stimulus from chinese authorities weighing on the sector sticking with the china theme, let's look at chips trading higher decent bid for these names again, a lot of knfocus on what china will do. christian keller said they did not give enough detail on what they will do in the coming months we have green for the most part in the luxury sector. lvmh up 1% fairly strong start to trade for the luxury names
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arabile. one of credit suisse's longest shareholders difficult ve divested the entire stake. the move does leave the saudi national bank and qatar thi investment holding 17% of the bank between them. they expected to report a third straight year of losses. credit suisse stock was bought more than 20 years ago and doubled the money prior to the financial crisis harris bought before the stock again in 2009.
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geoff spoke to the cfo in february and asked how he planned to deliver >> we are doing all of the credit suisse transformation we will see. the business strengthens our business and i'm convinced that is the important next step with a we layout for october. >> this is a blow to the credit suisse story that harris and associates was a business proper poe p proponent of the business. you saw the sell off we have come off the lowlows
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paring back gains. i point out the comments over the weekend. he said we have lots of other options to invest. rising interest rates is a lot of european finances are going in the other direction it doesn't seem worth the risk to invest in credit suisse when the others are offering good options. >> if you look at recent numbers, european banks enjoyed a stellaring fourth quarter. yielding around 15-year highs. a lot of value somewhere else. when they started investing in 2001 in credit suisse, they saw that share price rise to 60. now seeing where it is, as you said, giving up the fight and saying it is not worth it. european banks are cheap and more room to rally for them.
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perhaps looking elsewhere to try to move money. you saw the likes of unicredit shares up 35% at some stage. that is the volume they are looking at and i suppose credit suisse is not looking like a viable option. >> i think specifically with creditsuisse, harris cited the cost and lack of transparency with the deal is the frustration point. we feel the plan to restructure the investment bank is cumbersome and costly than they expected if this was happening during a time when the other european banks weren't benefitting from higher net interest income and interest rate environment, it may be worth their while with the higher interest rates and what it means for the sector, it isn't a great c
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comparison it benefitted from higher interest rates and will continue to do so, but there is a question circulating in the sector if we have seen peak net interest income in europe and if so, where is the next leg of income growth? m&a? fees those questions are tricky as we settle into the higher interest rate environment and face the down side of the higher interest rates which is higher credit risk and credit losses. >> with the uncertainty, my wonder is really just around whether saudi national bank feels they should still be within this bank coming on not long ago with the sense of where things are corruptly l currently set for them that will be interesting 4 billion swiss franc exposure they got into as well.
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is that enough will they get themselves out of it as we noted with the interview that geoff did with the ceo, how do you justify it will be an interesting one to look at and how that continues to go. we will give you the latest on the story as it comes up. on to other banking news, ubs' ralph hamers received more than $12 million in compensatio in 2022. it shows the change over time in any stock compensation back here in europe, one key mover in focus this morning is
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rheinmettal is joining the dax separately, it helps produce tanks and it is in talks to build in ukraine that deis significision could co months uk car registrations shot up 25% in february according to the numbers. it expects 500,000 electric vehicles to be added to the roads this year. one stock in the auto sector soaring this morning and on track for the biggest jump since 2022 is aston martin up 19%. we are looking into the detail of what is driving the stock higher we had an impact of the price target for the company, but a
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big mover. coming up on the show, the uk financial regulator faces blame fore arm's decision to lis in n yk.ewor we'll discuss more after this. ah, these bills are crazy. she has no idea she's sitting on a goldmine. well she doesn't know that if she owns a life insurance policy of $100,000 or more she can sell all or part of it to coventry for cash. even a term policy. even a term policy? even a term
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welcome to "street signs." i'm arabile gumede >> i'm julianna tatelbaum. these are your headlines. >> european mining stocks fall as the modest growth target of 5% for the year in china during the national people's congress the economy is showing re resilience among the tough back drop >> the main development tasks of the year were completed with the completion year. chinese economy has shown strong resilience credit suisse shares claw background after early losses after harris sells the remaining stake in the company.
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arm looks to raise $8 billion and looking for $50 billion valuation for the u.s. listing. european equities search for direction as they await jay powell's testimony ahead to lawmakers. arm is reportedly aiming to raise $8 billion in the ipo this year according to the report citing sources which says the softbank owned chip designer is looking to deliver paper work in april. it named goldman sachs as one of the banks leading the offering the conduct authority has been blamed by uk officials and staff fore arm's decision not to pursu
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a dual listing political turmoil in the uk played a role. arabile, there are so many issues contributing to the decision you have the rules and listing and the political turmoil in the uk and uncertainty, but i blame the lack of strategy with the semiconductors plays a role. the focus on the biden administration which is openly trying to do more to support the sector and propel investment into the sector and country. you have europe coming out and pushing back against the u.s. plan which would imply europe is aiming to do something about it. the uk hasn't set a strategy or detailed any way to support the
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chip maker and industry. you have to think why arm would choose to list here. >> it all makes sense. you get a sense from some of the other interview i did as well. when regulation isn't as sure as it should be in certain areas and when the rest of the world moved in the direction and it becomes difficult for investors to really go into the market and arm is moving that they really are saying, as you said, no need to come into the uk, per se, in terms of th listing if it just is not clear how things will move perhaps the quicker the uk moves when it comes to regulations, perhaps that could help. the interesting thing is a lot of movement with regard to the semiconductor market where
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manufacturing will happen and is it moving away from the far east and moving west and if so, which region picking that out is significant and important. it brings us more to the next story around infineon is lookin to acquire the canadian systems worth $850 million that will help to strengthen the position in power systems. adam white spoke to myself about the deal and what it means for customs. >> first, yes, we are excited by this acquisition for the
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infineon team and to lead us to where we are today the wider portfolio will give us the ability to reinforce leadership in power systems. from our perspective, it will help us address the target applications through the incredible technology. >> increasing your understanding of power systems and the like as well what advancements are you looking toward some key elements that gan has gotten into is a future look at the ev market and that has obviously been topical of late is that of interest to you at infineon >> great question. we are actually targeting a number of applications where
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coupling with us, we target the power systems. the applications include ev as you suggested. for example, on the on-board charger. we are looking to bring better efficiency and bring down the size, meaning better density and overall offer customers cost savings in that application. on-board charger is one. we have other applications including the adapter chargers we are targeting service to support the green server topic that is hot at the moment in the industry so these are the types of applications, of course, coupled with residential >> it is interesting at a time like this, the chip market, semiconductor market, has been one that has faced a bit of headwinds and there's been relational gaps as well
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how much does this deal put you in a vital position to take advantageshortcomings with the trade war with the u.s. and china? >> of course, we had the mega trends within the semiconductor industry and, of course, with this acquisition, we've got some internal manufacturing capabilities through our own foun foundries. with the closing of the regulatory conditions, we are looking forward to working with foundry partners that gives us the ability to help bring up further manufacturing to scale regarding america and china, infineon enjoys and very much
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open to free market conditions and we are looking forward to, obviously, working with this technology with the target customers in the relevant regions. >> i suppose demand becomes the key factor to look out for here and considering it was a major player in the canadian sem semiconductor market some feel it hasn't reached its full potential, that being gan systems. how do you exploit that and it does reach the full potential although it is within infineon >> we are looking at the closing signs. gan systems has done a tremendous job we are the tipping point of what customers really understand the
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value. in single terms, it is not the replacement. it really needs our customer engineers to look at redesigns and policies to unleash the potential. with that, infineon takes a long-term perspective. while the revenue may be a little bit smaller than you would imagine with other technologies like silicon carbide, we believe all three will have a home to serve the customers and value proposition. >> i think, arabile, we will talk about the semiconductor industry for months and years to come to draw parallel to the conversation around gan systems and arm, so many companies, arm included, have relied on growth through the smartphone market and through the computer market. now we're at the point where the
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new industries are emerging. electric vehicles and a.i. and automotive in the new way. all of the servers involved and data centers involved in developing these high-speed chips and power a.i. in the future when it comes to arm's valuation, what do investors believe how they dominate in the markets, like the smartphone ma market, into the new field >> overall, with the boost of the capital market at all if anything let's remember we have had a stagnate market since covid. with the russian invasion of ukraine adding to that uncertainty. we did see the likes of next tracker come on board in china and the group that listed in the
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u.s. a little bit more than that. investors very tentative in the space. particularly to new stocks and what it means to them. arm list in the u.s. >> if a successful listing boosts the rest of the ipo market or it is a standalone i believe it is a special asset. i wonder if all of the money we have seen come out of the u.s. tech as we adjusted to the higher rate environment and if that will redirect into arm, if and when it comes to market. >> it will be interesting to take note of that. we will look at that semiconductor market for some time. coming up on the show, cnbc kicks off the week-long coverage ahead of international women's day. and investors shrug off the china growth target ahead of the crucial week for the u.s
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w we will dig into the key u.s. data points. what to look out for when we come back. hi. i'm wolfgang puck when i started my online store wolfgang puck home i knew there would be a lot of orders to fill and i wanted them to ship out fast that's why i chose shipstation shipstation helps manage orders reduce shipping costs and print out shipping labels it's my secret ingredient shipstation the number 1 choice of online sellers and wolfgang puck go to shipstation.com/tv and get 2 months free
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welcome back to the program. it is international women's day on wednesday cnbc will devote the week to conversations with leaders in business, education and arts and politics the world economic forum gender gap found it takes more than 130 years to close the gap between men and women. this week, we bring you interview was women like karren brady to julia gilliard. what a lineup. i cannot wait to hear the conce conversations to play out. tanya is leading our coverage this week. that is a staggering figure. 130 years. >> shocking, isn't it? why can't we do it in five years or ten years why over 100 years that is really quite something
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when you think about all of the progress that we've made there has been some progress as you said, i'm talking to different women from different industries i caught up with shercherie blar and asked about her foundation >> i'm a woman myself in the legal world. i realized when my husband was at 10 downing street to travel around the world i met the amazing entrepreneurs. i realized there is so much they could do they were doing great things they were suffering from the barriers -- barriers we see here in europe, but even more barriers, i think, in lower and middle income countries. that basic idea that really
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business isn't for women this is a man's world. we know very clearly that actually it is not true. >> what progress have you seen over the years through the foundation and the work that you do >> what we have seen is women really seizing their opportunities and standing up and actually proving that they are not only meant to be in the business world, but actually they are really very good at it. there are structural obstacles to women's progress. sexist assumptions that women are not good at science. the stereotypes of the women are still in the home. that is prevalent around the world. the reality is across the world, women are engaging in business
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many in the formal economy many of them also in the formal economy and yet the structures of the way business is conducted acts as an exception rather than the rule. >> what support are they needing? >> the women we surveyed and publishing it now. we spoke to 700 women in 50 different countries. we asked them about the obstacles they were experiencing not surprising to find, a lot of that is about access to child care we also see women are suffering from the gender assumptions about what a woman's role is and lack of access to finance is another big issue which really comes, i think, out of this gender stereotyping that women
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aren't good at money >> to you, yourself, grew up and saw the challenges ahead of you in the profession you wanted to enter and you overcame them. what were some of the biggest hurdles you had to overcome to achieve the success in the legal profession >> one of the ones was actually lack of role models when i joined the law which 10% were women. today, my daughter is a lawyer and 50% of the people -- more than 50% of the people in law school are women a huge progress now. that's why i say this is not about one person or one organization that's why our business and strategy of 1 million more women evntrepreneurs is not just about the cherie blair foundation, but it is working with the
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government partners and partners with the private sector and ngos on the ground who work in the same area and doing this as a campaign otherwise, we are still going to find that women are getting more equality in health and education. when it comes to money that makes the world go round, they are still behind that is not acceptable we will do something about it. >> of course, cherie blair saying it is not acceptable. everyone chahas to do somethingo close the gap and all of the work her foundation is helping women entrepreneurs around the world. i talked to different leaders and industries we move to sports now where i caught up with karren brady. 30 years ago, at the age of 23, she was the first woman to run a football club.
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be birmingham city football club. she had to overcome so many challenges in her field. i asked her what she felt are the issues at the forefront that women are facing international women's day 2023 >> i think there are still lots of issues around violence against women. it is on the rise. lots of women are feeling unsafe walking around the streets that is a big topic of conversation we have conversations about the gender pay gap for every pound a man makes, a woman is making 86 p we have big issues in the career high quality affordable child care women give birth to every taxpayer on the planet women need to carry on with their careers. you have the issue which i think
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is led by that of lots of industries not having women at the highest level in finance where sometimes that pay gap could be as high as 40%. encouraging women up the chain and helping with child care and keeping them safe are the issues that should be at forefront of mind >> how do you feel the governments and private sector should address the issues? what is the best way forward >> i think in relation to violence against women, keeping the streets safe and taking issues that women report seriously. training more officers in knowing how to deal with domestic violence. those things are very important. in relation to the gender pay gap, i think women should know their worth and have the confidence and p ask for it they should not be embarrassed for asking for higher pay. >> of course, you are a champion of women and you have inspired a
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lot of executives into the boardroom. do you feel that quotas are right? >> i don't like quotas although -- actually a lot has been done 30 years ago of the quotas would have helped now ten years ago, no ftse 100 company had a woman on the board or woman ceo you have lots now. i think quotas can sometimes lead to the wrong people having the wrong job for the wrong reasons. i think what is more important is embrace and have a desire to champion women one of the things that really bothers me is it is not about having more non-execs on the board to look like you are diverse, but it is important more than taking women from the organization and getting them up the ladder to join the board we talk about role models.
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we look at people like oprah or hillary clinton and say they are wonderful women. we will never know them or work with them. what women need is role models in their own organizations sitting on the boards and show it is the most professional to have a family and career and reach the top of your ladder that is the real role model and they are right in the organization and you know it is possible. >> what has it taken for you to get there? what advice would you give >> you need courage. courage to try something and do something. courage is nothing without determination and keep doing it. the toughest thing about being a success is you have to keep on being a success. having that drive and enthusiasm comes from having a job you love and feel passionate about. all of my ambitions are rolled up in my businesses. i feel passionate about that i think you have to have
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integrity. i think you have to have persistence. i think you have to have a good network. you also have to have great culture. if you have those things, you won't go far wrong >> there we hear from karren brady with grit and determination to get where she is considering 30 years ago at the first press conference, i shoshook -- shocked both of you. karren, what are your vital sta c -- statistics >> to being a female leader to navigate that question and environment with no peers is really remarkable what she has done. >> at least the progress you made, no one would ask that question now. >> we were speaking about the report that comes out that it
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would take 150 years to close the gap between men and women. consider the conversation with barroness brady and where we were 30 years ago and now. do you feel she has seen a change that 150 years and i can see why that is the case, but it shouldn't be >> to have that slow progress. we have to quicken the pace. we have the chance tomorrow morning, we are joined live here by australia's first female and only female prime minister >> amazing these conversations are part of what will quicken that progress. tanya, thank you for the in inte interviews you can find more on cnbc's equity on cnbc.com. another big week with key comments from the fed chair this week and jobs and cpi data due
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out and the fmoc decision. tomorrow, jay powell starts the testimony to lawmakers on capitol hill the latest beige book is due coming out on thursday before the february jobs report which is set for friday. next week, we have cpi data head of the fed policy decision let's look at u.s. futures and how the the wall street session is poised to open. we have fairly muted start for wall street after a strong week last week and strong finish with the s&p and nasdaq and dow all gaining more than 1% on friday the nasdaq actually gained around 2%. looking at tech specifically, there is one name to catch today. appl apple. goldman sachs has a target price of $199. you see we are indicated to open slightly higher in that stock. the price target represents an
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over 30% upside to apple's last close. in terms of european markets, we are trading for the most part higher, but we have even a steeper down attturn in ftse 100 with the basic resources. on the back of china's 5% growth target for this year, what many are calling modest and some saying responsible we will see how u.s. markets react out of the news from china and economic data to come this week that is it for "street signs." i'm julianna tatelbaum. >> i'm arabile gumede. "worldwide exchange" is up next. stay tuned hi. i'm shannon storms bador. when we started selling my health products online our shipping process was painfully slow. then we found shipstation. now we're shipping out orders 5 times faster
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