we are back with steven englander. is this in the cards? steven: no.hey would like to currency to depreciate, but part of the deal they have at the chinese people is that they will keep stability and financial markets and, you know, just opening it up and making it there would be viewed as a tremendous setback for them in terms of what they are trying to look on list. scarlet: a big -- trying to accomplish. scarlet: a big part of that is a chinese leadership change. to makeng has incentive sure things are as stable as possible. what will the new front of capital controls look like heading into that leadership change? steven: you know, i think that they actually like what has happened it now because they have been able to depreciate against the dollar without looking as if they are doing the depreciation. they are moving with the basket. my expectation is that if -- the emerging market rallied, it would depreciate against everyone else. of, you know,ort keep the basket when the dollar is falling, depreciate against the basket, keep the basket when the d

steven englander of citi. >> now to the top corporate stories.ard schultz announcing that he will step down a' as ceo at starbucks. he wants to focus on new initiatives. kevin johnson will take the role. on a call last night, schultz said johnson is more equipped for the top job. >> i think kevin is better prepared to be the chief executive officer on a go-forward basis than i am in terms of his skill base capabilities, his understanding of technology and how that will be integrated into the customer experience and put starbucks once again reaffirming our leadership position in all things retail. >> don't miss both schultz and johnson on "squawk box" live at 7:30 a.m. eastern in a first on cnbc interview. >> plus worth pointing out shares were down about 12% initially when that news was announced. it's now down about 3%. and as thomas mohr was telling us, people got over the initial shock and now just focused on the question is he stepping down because he's done all that he can for what is a mature company. >> right, where is the growth that is l

coming up -- steven englander.athan: shares of hsbc have climbed 23% and avoiding the worst of the post-brexit stocks slide. europe's largest bank faces questions on the transition and what it means for business and trade. bloomberg francine lacqua second down with the douglas flint for an interview and asked what .orried how most about brexit -- him a most about brexit. mr. flint: you saw the markets reacted very well to events in 2016. one of the extraordinary features of the referendum in june was people went to bed that night with the markets, the condor tech. commentators, posters, vote makers predicting results and waking up in the morning and it was a different outcome. market volumes were six times normal, huge volatility and banking stocks predominately based in europe with the european bases suffered 20%-20 3% declines. -- 30% declines. everything worked, everything is. all of the trades could be at the -- executed. you stand back after it is done and a system that has been capable of withstanding unexpec

england. does mark carney have to look through inflation? steven: absolutely. two points. and has a clear history of doing this. 2011d cpi 5% in 2009 and and that then governor was happy to produce on a monthly basis to explain why inflation was high but there was no response. this is the case at the moment now. we know why inflation is high, fallout from the pound, growth is falling. he will look through the high inflation levels, keep policy where it is -- i don't did he needs to do much. francine: what happens? let's say impatient is much stickier. i don't know if it is trade towards -- trade wars are tariffs, if it becomes a different inflation does he have to deal with it? steven: i don't think so. the inflation he is worried about his wage inflation. similarly to the federal reserve , this is what they don't want to come in. if it is we'll related, currency related, it tends to be one off and he will focus on what leads the economy. we would highlight that we think growth slows next year in the u.k. with 1.1% growth. that is what he has to keep on his mind. highly unl