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tv   Worldwide Exchange  CNBC  November 10, 2014 4:00am-6:01am EST

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on a broad range, whether it's stopping ebola or preventer proliferation or cleaning the energy partnership, combatting leadership change, as the two world's largest economies and two largest carbon emitters, we have a special responsibility to embrace. if china and the united states can work together, the world benefits. and that's something this audience is acutely interested in. [ applause ]
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welcome to "worldwide exchange." i'm wilfred frost. we are listening to president obama addressing the world summit in beijing. let's listen in. >> america's first trade mission visited china just a year after america's revolution ended. 230 years later we are two of the largest economies in the world. we have benefits of both of our countries. china is our fastest grower export market. chinese direct investment in the united states has risen six-fold over the past five years. chinese firms directly employ a rapidly growing number of americans. and all these things mean jobs for the american people and deepening these ties will mean more jobs and opportunities for both of our peoples. and that's why i'm very pleased
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to announce during think visit, the united states and chinese agreed to implement a new plan for visas to tourists and businesses large and small. under the current arangement, visas between the two countries last for only one year. under the new arrangements, student and exchange visas will be extended to five years. business and tourist visas will be extended to ten years. [ applause ] >> now, of course that will be good for the businessmen going back and forth all the time. but keep in mind last year 1.8 million chinese visitors to the united states contributed $21 billion to our economy and supported more than 100,000 american jobs. this agreement could help us more than quadruple those
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numbers. i've heard from american business leaders about how valuable this step will be. and we worked hard to achieve this outcome because it clearly serves the mutual interest of both of our countries. so i'm proud during my visit to china we'll mark this important breakthrough to benefit our economies, bring our people together. and i'm pleased that president chi has been a part of getting this done. very much appreciate his work on this. deepening our economic ties is why i also hope to make progress with president chi to a high-investment treaty to open up chinese economy to american investors. something to unlock progress and opportunity in both of our countries. we're also working to put -- in pursuit of the international
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agreement on the ita and will speak directly and candidly as we always do about specific actions china can do to help us to expand trade and investment, which many of the ceos i talk to raise in our discussions. we look to china to create a more level playing field on which foreign companies are treated fairly. so that they can compete fairly with chinese economies. a playing field with competition policy promotes the welfare of consumers and doesn't benefit one company over another. we look to china to become an innovative economy to value the intellectual property rights and reject cyber theft of trade secrets for commercial gape. we look to china to approve biotechnology advantages critical to feeding the growing planet on the same timeline as other countries.
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to move definitively toward a more market determined exchange rate. and yes to stand up for human rights and freedom of the press. we don't suggest these things because they are good for us, we suggest that china do these things for the sake of sustainable growth in china. and i look forward to discussing these ideas along with the concerns with president chi over the weekend. including reducing various trade and investment so companies like yours can grow, create jobs and create prosperity across the asia-pacific region. after all, asia's largest export market is the united states. that benefits american consumers
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because it's led to more affordable goods and services. six of america's top export markets are apec companies. and more than 60% of our exports, over $1 trillion worth of goods and services are purchased by apec economies. that supports millions of american jobs. the work done over the years has cut shipping costs and made it cheaper and faster to do business, and that supports good jobs in all of our nations. we have worked together to improve food supplies, encourage clean energy, promote education and deliver disaster relief and all of this has made a difference. but we can always do more. we can do more to reduce barriers to economic trade and growth. since 2006 we worked together toward the ultimate growth of the free-trade area of the asia
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pacific and apec has shown a number of pathways to make it a reality. and one of those ways is the transpacific partnership between the united states and 11 other nations. once complete, this partnership will bring nearly 40% of the global economy under an agreement that means increased trade, greater investment and more jobs for its member countries. a level playing field on which businesses can compete. high standards that protect workers. the environment and intellectual property. and i just met with several other members of the tpp to make this a reality. we'll keep on meeting to get it done, for we believe this is the model for trade in the 21st century. agreements like this will benefit our economies and people but also send a strong message. that what is important is not just whether our economies continue to grow but how they
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grow. it's what -- what is best for our people in the race to the bottom but a race to the top. obviously insuring the continued growth and stability of the asia-pacific requires more than a focus on growth on trade and investment. steady, sustainable growth also requires making it easier for small businesses to access capital and new markets. and when about one-third of small businesses many the region are run by women, then steady, sustainable growth requires every woman's ability to fully participate in the economy. that's true in the united states, that's true everywhere. steady, sustainable growth promotes policies and practices that keep the internet open and accessible. steady, sustainable growth requires a plan et where citizens can breathe clean air and drink clean water and eat safe food. and make a living fishing
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healthy oceans. steady, sustainable growth requires mobilizing the talents of all our people regardless of religion, color or creed. offering them the opportunity to participate in open and transparent and political economic systems. where we cast a harsh light on bribery and corruption and a well-deserved spotlight on those who strive to play by the rules. those are all some of the areas we'll be focused on in apec this weekend going forward. and obviously every country is different. no country is following the same model. but there are things that bind us together and despite our differences, we know there are certain standards and ideals to benefit all people. we know that if given a choice, our young people would demand more access to the world's information, not less. we know that if allowed to organize, our workers would
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demand better working conditions that don't injure them, that keep them safe. if they're looking for stronger labor and environmental safeguards, not weaker. we know that if given a voice, women wouldn't say give us less, they would speak up for more access to more markets, more access to capital, more seats in our legislature and boardrooms. so these are all key issues in growth as well. sometimes we focus just on trade and investment and dollars and cents, but these things are important as well. these ideals aren't just topics for state business, they are touch stones of the world that we'll leave to our children. the united states is not just here in asia to check a box. we're here because we believe our shared future is here in
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asia just as our shared past has been. we're looking to a future where a worker in any of our countries can afford to provide for his family. where his daughter can go to school and start a business and have a fair shot at success. where our fundamental rights are cherished and protected and not denied. and that future is one where our success is defined less by armies and less by bureaucrats and more by entrepreneurs and up have innovators and doers, by business leader who is focus as much on the workers than the power and prosperity they create. that's why we're here working so closely the past several years. and as long as i'm america's president, i'm going to be invested in your success because i believe it is essential to our success as well. thank you very much.
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appreciate it. [ applause ] that was president obama addressing the apec conference in beijing where he welcomed the rise of a peaceful and prosperous china. he said president xi was a partner and appreciated his work and he welcomed deepening economic ties with china as well as the other apec economies. he said, we can do more to reduce barriers to trade and he also said that he values i.p. rights and rejects cyber theft. i'm going to bring in hadley gamble, our correspondent, seems like significant progress being made here in china. >> very interesting point, but at the same time this is a really good time for president obama to be out in the u.s. he's on the world stage and got quite a kicking in the midterm elections as we saw, so it's a good time for him to be looking more strong on foreign policy. a little stronger saying there's
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room for all of us in terms of the global economy. the visas, that's interesting, but he did take a few shots talking about encouraging entrepreneurs and what's happening in hong kong, he didn't mention that directly, but that's on everyone's mind as well. >> hadley, it doesn't make a difference what he says, he's a lame duck president with two years left, would anyone care about what he's saying on the stage there? >> well, i think if you're sitting in china right now you might be interested in the fact he's encouraging saying we'll make it easier for you to come and do business, et cetera, but if we are talking about what's generally happening, they extended the iran nuclear talks another day. we know president putin is on the minds of everybody in washington. the national security council was mentioned in a statement overnight they are concerned with what's happening in ukraine. we also know as well that given what's happened with the midterms, you can see a great deal more pressure on the obama administration to at least have a conversation about sending more defensive weapons to
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ukraine as well. so that's never a good thing. so the tensions are there and the question of course becomes one of perception, mr. putin looks strong, president obama continues to look weak. >> on that note, we'll look at the other news from the apec summit. president vladimir putin says they will take the necessary steps to stabilize the rouble. and there's no slide in the speculation trades to come to an end. look at the rouble down 30% so far this year. right now the dollar/russian rouble trade is 2.5% down on the day. yeah, it is actually down and that's quite remarkable. the russian central bank this morning says it's abandoning the rouble trading ban and it's floating the rouble. meantime, susan lee caught up with the ceo at the apec summit in beijing to ask him about the
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impact of the weak rouble. >> i think it's a part of a problem on the russian financial system and the government must address this issue to develop a better debt market and reform the financial state. for years the russian economy, the main drive was in the estate banks. and it's time to develop the opportunity for a private bank and foreign investment sector. >> let's go back to hadley gamble, we saw a move in the rouble rising against the dollar for the first time in seven sessions, partly because russia signed this preliminary deal with china to supply gas from western siberia. where just russia stand on the world's stage right now? do they still have the strength they need and the cloud despite the fact that economic growth is tanking? >> well, this is the question. and the central bank is saying,
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you're going to have flat growth in 2015 but this doesn't stop mr. putin when it comes to being overtly aggressive in his stance and statements. and certainly that's something that is communicated very well to the russian public and it's something, when we see the flyovers in one day, 19 in one day, you have to wonder how much control does he have in the guys flying the plane. he's enjoying this national strategy working for him well in russia despite the country taking an economic hit. >> thank you, hadley, for that. we'll stick with russia and ukraine because sfifighting has intensified. pro-rubble forces have reinfo e reinforced tanks in the region. and he sent additional resources with a cease-fire in place since september 5th.
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let's update you on markets now. the u.s. finished in positive territory, that's three weeks of gains for the u.s. whereas europe has been struggling for direction so far in november. but today this morning we're up 9.35% and found impetus from somewhere. we'll dive into the individual markets, as you can see it is broad-based this rally today, but not too significant. the ftse 100 is up half a percent. germany is up 0.35%. and italy is up despite september production that we got out 15 minutes ago significantly weaker than expected. the month on month had been expected to decline 9.2%. in fact, it declined 9.4%. year on year down 2.9%. this doesn't bode well. the yields have come back 2.3%.
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the weaker than expected payroll numbers did see a risk of trade. bond-buying pulling yields down a bit. the economy moves in germany at 9.8% last week, now 9.2%. nothing significant. the ten-year in the u.k. is 2.2%. the dollar is giving up a little bit of its recent gains. it did hit a four-year high. the broader index on thursday. then it declined on friday and the broader index is up 0.4% today. because of the moves in the treasury market, the euro gained 20 basis points, 1.2477. against the yen, 114.09. the euro declined 0.4%. the cable is flat at 1.5893. gold has been fairly weak over the last few weeks down a half percent today to 1, 171.90.
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oil has bounced back, brent is at 84. on that note, back to you. thank you, wilfred. i have breaking news coming from btb, one of the russian banks in beijing. russia's btb's ceo says the company is looking at a wider corporation with chinese stock exchanges and this is the important bit, there is a possibility of delisting from the london stock exchange. obviously highly politicized comment there is. joining us is charles deeble, good morning to. you we'll focus on the italian industrial output numbers. nosediving 0.9% for the month of september. i thought that the periphery was supporting the current for a change, i'm talking about spain, for example, but what we're looking at in the eurozone is a highly fragmented space, isn't it?
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>> yes. and you have to remember that somewhere like italy is trying to go through the structural reform process and frankly hasn't had that much luck so far. so a lot -- you need to separate between what's happening in the macro economy and how the asset process is behaving because obviously the yield and the compression and all the actions by the ecb have succeeded in compressing yields and perhaps flatter in how the actual economy is behaving. i think the industrial production numbers highlight the the theongoing risks as a whole. >> let's talk about the market boost for the last couple of weeks. we had the rally, broad-based rally in october, everyone benefited from that, but since then the first few weeks of november have seen the u.s. up in comparison to the all-time highs are. markets now responding to
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fundamentals rather than policy? >> to a degree, the answer is yes. i think what is going on is the market behavior is becoming more ideocattic. in europe, you'll focus on what the ecb is going to do and whether we'll get sovereign qe and what further support we'll get. if we see that, it will support european assets about fixed income and equities. but without it, or with the timeframe certainty, unclear at this point in time, the market is much more cautious. in the u.s., we're seeing perhaps something of an old price benefit. you know, $10 decline in oil prices, increases global gdp by 1.2%, that's particularly helpful to the u.s. which is a large energy consumer. that kind of factor is good for growth, but it's also a response to the low demand story coming out of europe and china. so that's what i mean by this, different countries respond in
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different ways. i think that's why, for example, the u.s. is continuing to perform well. >> charlie, thank you very much for that. charles deeble, head of macro strategies. coming up, we ask the labor party's secretary if he thinks party leader ed milliband should step down and why the u.s. is better in the u.k. that the e.u. and how close are we to a football franchise in london? we discuss this with nfl executive mark waller. when change is in the air you see things in a whole new way.
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it's in this spirit that ing u.s. is becoming a new kind of company. ing u.s. is now voya. changing the way you think of retirement.
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pressure is mounting on ed milliband that 20 shadow ministers could be prepared to call for his resignation. this came as a poll showed 34% of those who voted labor at the last election believe mr. miliband is up to the job of prime minister. >> but as they try to focus this away on the british industry conference, he's expected to highlight the risks of the potential u.k. exit from the eu saying this move will put millions of jobs at risk. joining us is the shadow
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business secretary for the labor party. and he's the business editor as well. i just want to focus on the opinion poll collapse over the last few days from mr. miliband in one particular area. the poll over the weekend suggested 34% of people who voted labor at the last election believe mr. miliband is up to the job of prime minister. only a month ago that was 51%. what has led to the collapse over the last month? >> i'm not sure i accept collapse. everyone in politics know the polls go up and down but what matters is how people vote. and the last time we had a general election in may 2010, since then we have had different local and regional elections. and the labor party has been whipping back support and people are casting their votes. with the local counselors here in the u.k., we have put on over 2,000 new counselors importantly in those parts of the u.k. where
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we need to win back support to win. so that's very much what is at the forefront of my mind, but look, i make no bones about it. none of us do. this is going to be one of the closest elections in a generation in the u.k. we are living in quite unchartered times. in fact, across europe we see many of the established parties facing challenges from new parties like you keep here in the u.k. and usually we have two party politics. the labor party and conservative parties. similar in other parts of europe, but that's different. we are multi-party politics with a coalition government, which is an unusual thing. in that context we are looking to win back support. but i think my party went down to a historic defeat in 2010. it was the second worst ever that we've had. and yet now we are a serious prospect with government within touching distance of it. we still have six to seven months to go. long times ago we are determined to win back more support between now and then. >> given what the polls are showing right now, do you think ed miliband should step aside
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with a good shot of winning this election? >> absolutely not. the incumbent leader of the labor party, i believe he has the best ideas and would make a real difference to people in my constituency in parts of london. in some parts we have one in three children living in poverty. yes, unemployment has reduced which is a good thing, but people are actually earning a lot less now than four, five or six years ago. so we have big challenges. but generally why do we see in some parts of europe, in fact all of europe, discontentment with the established party, because the world is changing. look at this studio, the kind of technology you have here is extraordinary and that's changing jobs and destroying jobs of people in the generation. you would have had many more people in a studio like this ten years ago. exciting because it creates jobs but it destroys jobs done for ages. that's unsettling and makes
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people insecure. and our job as a government is to meet people's ambitions. i'm rambling now. >> you are deflecting attention from what the real issue is. it seems as though right now ed miliband is a liability to the party, not an asset to the party. you say he has a full report. >> i don't accept that because even if you speak to our political rivals in the conservative party, the kinds of quality that people contribute to ed miliband, he's an honest guy, sincere and trustworthy as a map of deep beliefs. i would like to say all the politicians attribute to the same policies, but we don't. we have somebody who everyone across the political perspective recognize this is strong position. the bottom line is the voters decide these things and they decide that by reference, what are where he with e going to do to insure younger generations in
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your family go on to do better than the older. we have to make sure this is a key to the market here in the city of london. and that's what we are going to be focusing on. the real issue is people's jobs. >> what makes or breaks the election is the party's take on the u.k. the telegraph saying you're the only mainstream politician with guts to take on u.k. are you the only one in the party to have the guts to do that? >> i don't think i'm the person at all, but i'm very clear. if you listen to the populist parties of the right, not just in the u.k. but in france and other places, thatly have the ability that all the problems in our countries are down to europe. everything is -- why do we have longer waits to go to the hospital? why is your wait stagnated and why do we have problems? it has nothing to do with domestic politicians. they have made mistakes over the decade. i think that is an absolute con.
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i think that is dishonest and i don't think it is being absolutely upfront with people about the challenges we face. i'm not saying europe is perfect. we need to reform the way the european union works, but i know that millions of jobs depend on our relationship with the european union here in the u.k. and the eu is the key to unlock the emerging market that is you guys report on every day because of the trade agreements, the weakened regions in the count industry with china at 1.3 billion people. we are much stronger sitting on the other side of the table to those guys with half a billion other people in the eu getting a good deal for our people. >> and we've heard where you stand today, but you're very young yourself, only 36, so one day would you consider standing for the labor issue? >> i'm not into -- i don't see politics as a way of mentioning in the forecast the westminster version of mtv celebrity "death match." you know what i mean? i want to do whatever i can to build a fair and equal society where everybody can reach their as pragss and dreams.
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i think in this job you start to focus on yourself and all the personality stuff, your feet leave the ground and you lose touch with reality. so i try to keep it real. >> thank you very much for joining us today. we appreciate it. still to come on this show n the face of tough opposition from madrid, 80% of the vote for independents in a symbolic referendum. so what is next for spain's northeast corner? we'll discuss that coming up on "worldwide exchange."
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these are your headlines. president obama steps up pressure at the apec summit calling for beijing to reduce barriers of trade. >> we look to china to create a more level playing field on which foreign companies are treated fairly. so that they can compete fairly with chinese companies. supporting the rouble? russian president vladimir putin tells leaders at the apec summit there's no reason for a slide in currency and says the government will work to stabilize it. >> a break through between china and japan, the leaders of both countries hold formal talks for
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the first time since taking office. and voting in calalonia suggest that they want freedom from spain as they pave the way for a formal referendum. a mixture of green and red. and the european markets as we look at things now, it was not the case 20 minutes ago but only green to a slight extent of the ftse 100 fractionally up. italy is now down half a percent led by production number that is came in down against expectations of 0.20%. carlsberg is suggesting q3 net
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profit falls 5%. russia is up 2.5%. asia is up 8.5% rallying after the energy group made its second oil discovery of the post senegal. we are seeing greece down just over 2%. the announcement anticipated as part of the u.k. strategic review in a bid to counter falling sales. the review is set to be unveiled later this week. meanwhile, test coast is fractionally in the green as the legal headaches mount in the wake of accounting errors revealing earlier. the american firm says they are in talks with european investors. so far, five companies are in a class-action lawsuit saying the u.k. market failed to disclose the truth regarding their financial conditions. back to karen. more than 2 million catalans
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have taken part in the vote with organizers saying 80% opted for independence. the non-binding vote is not backed by spain's government while the constitutional court suspended a formal referendum while it considers whether a vote is unconstitutional. speaking after a day of voting, catalonian president talked about what spurred on the move for independence. >> we deserve the the right vote in a definite referendum. and this is something that may be, maybe understood in madrid, maybe, but if it is not nu understood in madrid, our whether is to go on with this process and to go ahead. >> joining us now on the phone from madrid is david alandete, the managing editor of the "el
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pals" newspaper. are they disenchanted because this vote has no legal standing or are they still proud as they usually are? >> well, we have to distinguish what the political speech is right now from the reality. the reality is that 1.2 million catalans voted for independence. the populist census including everyone that can vote, we are talking about 25%. the vote that we just got from the catalan president are not entirely on the line of reality. if you think yesterday's vote for our political advancement and he announced what the next step is going to be, we should not forget that only 25% voted.
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>> is there middle ground madrid could offer the catalans for them to accept and prevent the referendum vote to move forward together and have something they both agree on? >> yes, let's not forget the catalans are still spaniards. this starts with the other parties, so far the spanish government has offered only the loft. they suspended the vote because a private organization organized it, but starting today it's possible that the spanish government can offer some sort of political negotiation, which is what has happened so far. to today it was only the last. from today it can be a political
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institution. >> thank you so much for joining us, david alandete from "el pals" newspaper. and the shift will focus away from questions over his leadership today when he addresses the cop federation of british industry. he's expected to recommend banking reform to support financing per small businesses among other business proposals. we are joined now live from the cbi conference on what to expect and other headlines from the conference. julia? >> reporter: good morning. west of here, the chairman of the cbi is talking about the challenges that still face the u.k. despite us growing at over 3% a year. a lot of the debate as you were talking about is centered on immigration and europe of course, which we should be fostering support for europe, like they have pledged to do, or whether we push for more referendum reform as the government suggested to do ahead of the referendum. now to talk to one of the many
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businesses who are on that floor who have been represented by the cbi. i'm joined by angus, the founder of a delicious company. you are the type of people that the cbi represent. you have 81 shops across the world. here in the u.k. you started. tell me, what are you looking for out of government, especially coming up? >> looking for anything frankly that is going to drive the economy forward, build confidence but in a sustainable way. i think all business leaders are not looking for pebbles but they want to make sure we have a gentle land scale with increasing sales. >> specifically when we're talking about the economy and lots of attention on skills, whether people in this country have the right skillset, you are a chocolate company, surely the u.k. has the right skillset for
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your business. did that prove to be true? >> sadly not. 100 years ago we had great skills in manufacturing chocolate, but over the last few years it has completely disappe disappeared. so when we became a manufacturing company, we had to start our own apprentice skill-training program and literally have done it from the ground-up. however, that's a massive advantage because it means we have approached the market with completely a new approach that differentiated us against foreign capacities. >> what about europe? there's a lot of debate about whether business wants to have a referendum and have damaging or how damaging that could be in terms of trade do. you see that as a black mark against the current market having a referendum? >> i have to say honestly no. i think there is a big difference between an economic union and a free trading block. and a political and legal union. and as a business person, i'm
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more interested in just open markets in the largest possibility of the open market we can get. >> thank you very much, angus from hotel chocolat. a delicious company but one that says you've got to keep the trade lines open, like many businesses here today at the cbi annual conference. back to you. >> thank you very much. chinese's president xi jinping spoke after the landmark meeting saying to stabilize ties with japan are in interest of both nations and a common decision of both. this comes three days after the two nations said they are willing to put territorial islands and disputes on the back burner. the summit is set to secure a fifth of the supplies china needs by the end of the decade. the memorandum is the second deal this year between gas and
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the chinese national petroleum corporation and we'll see the supply from western siberia to china. speaking at the summit, xi jinping said these fears of the economy are not to be feared. >> reporter: the key step is to intensify the comprehensive deep anything reform. i said last year at the apec ceo summit that china had a difficult and crucial stage and we are there to take risks and there to deal with tough current problems. the highly anticipated hong kong stock exchange will start november 13th creating the third largest market. this will open china's market to foreigners and allow mainland investors to access the hong kong market. there's no word on how transactions will be taxed so it could be a slow start when the link kicks off a week from now, but it did drive higher in hong kong shares this morning. and the bigger question is what happens with china's economy?
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we got the trade data over the weekend, exports were actually better than initially feared. and we have the cpi numbers. cpi, 1.6% of the month of the five-year low that screens for more stimulus, doesn't it? but will we get more? i feel like right now it's approaching, it's an approach like the ecb is doing. >> i disagree altogether. the chinese economy is based on stimulus and that's what is the thing to fear. since april this year, they have turned the taps on and that's because they set these 7% to 7.5% targets. they have to hit the targets to keep people at home happy. and i think only because of stimulus is the economy continuing to go. we heard from president xi this morning saying even if growth is around 7%, we are among the best in world. but i don't think that's the argument, the argument is what is spurring on that 7%. for me it's not sustainable in the long-term. >> there's too much concern about the cooling economy.
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they are growing at 7.5%, that's double the u.s. economy, and there's still a big trading partner for many countries. it will be interesting to see what comes out with apec's summit with japan and china trying to establish their legal conclusion ship leading to further business between the two economies and markets which have a very challenging history when it comes to what's happened between the two. that will be interesting. and i was surprised by the tone that president obama used during his speech right now in talking a about the ties between china and the u.s., given the delicate relationship they have had. >> mark that down in two years. we'll test who is right. coming up on the show, there's an increase in the amount of business done through mobile devices, but are companies taking the necessary precautions? we find out how the win the online arms race, next. 9mrr
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prime minister david cameron is delivering a speech at the conference going on in london. let's listen. >> we managed to get out to about 2 million square foot of government buildings. that's enough for another 26 buckingham palaces. so we have made some good progress there, but again there's more to be done. we have gotten rid of 200 of
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these, but there's still more to do on this agenda of making government more efficient, getting the deficit down, living within our means. because everyone penny we spend is money that has to be raised from taxpayers. and we have seen some individual performances where we demonstrated something absolutely vital, which is you can if you work at it, and you all know this in business, you can get more for less in terms of the home office budget. we have reduced that budget by 20%. but actually crime has come down by 10% as we become more efficient and effective in fighting. so when i look to the future, i know we've still got a lot more to do. the deficit is too high. frankly, the next parliament is not a competition on who can spend your money better. the next parliament is still going to be a competition about who can make savings more effective and who can make sure the government spends your money wisely. that's whanchallenge number one. good progress. challenge number two, something
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i hold close to your hearts is to make sure this country or business -- >> david cameron, the prime minister of the u.k. talking at the cbi conference saying there's no outs of complacency in this government. he's outlining the challenges the government faces ahead of the next election. we'll bring you more from that speech as we get it. and in other news, the photo messaging app snapchat could be worth up to $12 billion according to evaluations as the openers of the site continue talks with a number of potential investors. reports suggest yahoo! is looking to take a stake in snapchat. the company has already rejected a $3 billion acquisition offer from facebook. $2 billion and more revenues, right? molg threats are growing fast accord on a new international study of 700 international firms to show 70% had a mobile incident to cost $250,000 to fix in the past year. joining us now, the president of checkpoint. thank you for joining us. clearly heightened concerns about the security of our data,
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specifically on the mobile phone, how are you trying to ensure you can fend off the cyber problems on the phone? >> it is not just a consumer problem but also a mobile phone problem. these are the new computers, but it's a different computer because we use this for personal usage and for business. and then you put your confident data, you let your kids play with that, you go to a different site, you download application that nobody looks at, and the idea was how to look at the devices and let you continue to do whatever you want and make it more secure. so we have come up with capsule and the idea behind that was that we will create some kind of environment inside your form that will be much her highly secure. that every trap that goes to your environment, it would be scanned somewhere in the cloud for you and clean it for you and all the data you have will be encrypted. so there are ways to look at
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mobile security and make it much more easy and simple to use. >> you offer all the solution but then the biggest companies in the world, like the jpmorgan, the home depots, they can fend off the hack attacks. if they can do it, how can consumers do it? is it a losing battle essentially? >> it's an ongoing battle. i would say it's a losing battle. when you put more security out there, you'll be more secure. when looking at the attacks, i would say 90% of the attacks are automatically and can are be prevented if you take the very basic thing that is you need to do out. again, the idea of scanning the reports before it gets to you, are you going to deploy this application. you'll be surprised how many applications are the right one. and there are technologies going on in your smartphones and mobile devices on oyour computes to help balance the way you work, the way you use the
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technology and security and that's the compromise you need to do. >> what are the things that have made this a battle is there's no clear moment when you know you've been hacked, for enterprises and individuals. it could have been going on for weeks and months. is there something to do that i'm not being hacked, my device is safe at any moment in time? >> well, it is usually much more worse than you think. for years people dent know about it. it's not like physical war. you can continue to do stuff out there but there are ways to check it. there are ways of monitoring the environment to see if something is abnormal behavior. >> the cost of the software is not cheap. we are going through a slowdown in the global economic recovery, do you think companies still have to prioritize security and make sure they can allocate capital using the services that checkpoint and other players offer? >> first we try to make the prices very affordable. second, we see security go up
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the change with more and more incidents. the outcome is ceos leaving the office and much more than that. the privacy of the individual being spread around. and no doubt, the security percentage goes up the chain with people giving it much more of a priority than before. >> how do you compete with the big ones out there? you face big competition from cisco in terms of pricing, volume, what do you do? >> first, we are the biggest on the market right now in terms of performance. we are the biggest one and have been in the industry for 22 years. the basic thing to do, you need to come out with a great rate product and great security. and i think that's the key. it's always difficult to explain what that means by great security, but we can show that. if you have better defenses, if people can use your product in an easier manner. then you identify in the market that everybody is playing there, means there's no demand so more giants are playing the same game. that's okay.
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>> thank you very much for that. that was the president of checkpoint. you can see the share price is up around 25% over the last 12 months. done very well. and let's have a look at u.s. futures. in a couple hours we'll get the start of the trading day in the u.s. on this monday morning. we saw mixed reaction to the jobs report last week. we'll look at the s&p as we are expecting a slightly lower open with the nasdaq seeming slightly higher. nevermind the taper tantrum, the next guest says the end of qe did not bring up the volatility many fears but is further volatility to come. we'll discuss that next on "worldwide exchange."
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hi, everyone. welcome to "worldwide exchange." i'm seema mody. president obama is calling on beijing to reduce barriers to trade. >> we look to china to create a more level playing field on which foreign companies are treated fairly. so that they can compete fairly with chinese companies. >> supporting the rouble. russian president vladimir putin tells leaders of the apec summit there's no reason for slide in currency since the government will work to stabilize it. transocean posted a third
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quarter loss after delaying the earnings report from friday due to a nearly $3 billion charge. troubles continue to mount for brazil's petrobras as the company faces a bribery probe by u.s. authorities. >> you're watching "worldwide exchange," bringing you business news from around the globe. and i'm care rolyn roth. still to come on the show, how close are we to a football franchise in london? we discuss the state of play with nfl executive mark waller. and the u.s. markets close with record gains, are the good times here to stay? we'll cross the country for reaction. and can you get to "sesame street"? oscar the grouch and big bird celebrate 45 years in business.
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>> you're watching "worldwide exchange," bringing you business news from around the globe. we're going to get ready for a big market week with the gdp news later today as well as the chinese inflation coming in at a five-year low. growth concerns when it comes to china's economy are overstated. at the end of the day, that i are still growing at 7.3%. >> what is driving the growth? i think it's leading more to the growth with the clear fundamentals driving the markets upwards. and hitting the targets, that can't be good for the growth in the long term. >> president obama did talk about the new deal and partnership with china. we'll have to see what amounts from that. we'll also take a look at the premarket trade right now futures pointing to a slightly higher open for the dow jones industrial and the nasdaq. but the s&p 500 trading slightly down just fractionally today on
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monday morning. we'll also take a look at the ftse global index. chinese numbers came in at a five-year low. retail sales are lower than that in china as well as the u.s. that can be a market mover for traders. be sure to watch out for that. but diving into the european markets, last week we did hear from mario draghi of the ecb policy meeting saying he was going to reassure investors to stimulate the global economy. in response the european market moved higher. on monday it's a green day. we're looking at the ftse 100 up 21 points, the xetra dax up as well. germany is expected to see the increase of .10% in growth. france will see an increase of 1.2%. the cac40 is up 20 points and the italian markets are down on the back of disappointing earnings. and we'll look at spain as well as the catalan vote.
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>> it was an overwhelming vote. 80% of the people voted for end pen denindependence. the yield is dropping today with the prices going up. by and large, the investors are shrugging off the news we got this overwhelming independence vote even though again it has no significance as far as the central government is concerned. elsewhere, we're seeing prices rise across the board. and remember, last week was an interesting one where we saw yields rising, but mostly throughout the week. then we did see this snap back on friday on the back of the mixed unemployment report. we saw the treasury yields down two basis points over the week with the bond yield down three basis points. no surprise with the falling yield on friday, we saw some profit taking in the dollar as well. and that is seeming to be the case with softness across the dollar. the dollar is lower against the
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japanese yen by 0 .45%. the euro/dollar on 1.24%. thank you, carolyn. joining us is david stubbs, the ceo of asset management. good morning to you. three weeks of gains hitting all-time highs, does that surprise you, particularly when we consider that quantitative easing is gone? >> it doesn't surprise me because this expansion on the u.s. economy is real, and it is broadening out. we are seeing now expectations of the capex cycle coming in with household formation in quarters years to provide another tail wind. the markets are expecting the economy to grow as corporate profits continue to expand. i think i'm surprised that we didn't get more volatility in the markets with qe, but that's probably a good thing. >> you mentioned the wage growth as something you expect to see
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the coming quarter. that's a big concern as we see unemployment rates come down but no increase in the wage growth. some analysts say that weighs on profit margins. is that not good on earnings season? >> this is a massive debate. when we get wage growth, it will trigger reaction from the federal reserve. higher policy rates. we have seen some evidence of that in two strong quarters out of the performance index, that's the best measure to look at. but it is still neflat in the mixed signal report. in the last quarters, that will pick up with the federal reserve tightening. will it affect profit margins? yes, essentially. in the late '90s hen we increased profit margins, when that happened, it will be a warning sign for the market. we are not quite there yet. >> david, stagnant wage growth, that does doesn't just afflict
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the u.s. but the rest of the world and the u.k. we get the inflation report later this week. based on the data we'll get, the inflation and growth outlook, when do you expect rates to rise because now it is being pushed out to august and september, maybe november of next year. >> you also get the labor market this year as well as in the u.k. which is the crucial issue. i don't think rates will rise because the labor market is tight enough. the way i see things, the u.k.'s market is further away than what i would like to see in the u.s. because we are seeing real wage declines in the u.s. when will they rise? absolutely it's being pushed to the end of next year. you have global inflation very strong. worries about the eurozone growth, markets cooling, so i wouldn't see rates rise until the first of next year. >> volatility. we saw a high level in the markets in the early part of october. janet yellin on friday said
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monetary policies could lead to higher volatility in the markets. do you think that's the case? >> absolutely that's the case. they are trying to tighten policies in the short rate while having a large balance sheet. they have new talks to do that. and there's going to be communication challenges. of course there's going to be volatility as they work through the process. where we'll see it? probably the treasury market more than anything else i would imagine because of the direct impacts there from the rate increases, but ultimately the feds say they have part of the end of qe as much as one would expect. if there are further increases in wages, the beginning of next year we'll talk about the u.s. pushing this up. >> the volatility is not enough to keep you on the sidelines, correct? >> you have to have exposure to risk assets here in the united states and a little bit of volatilecy a good sign that the market is weighing the risk and is uncertain about the market, but broadly uncertain about the
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process in the u.s. >> we'll leave it there. thank you, david. we'll give you a rundown of what to watch this trading day. no economic data but look for reports on retail sales and consumer sentiment. the boston fed president eric rosengren is going to be speaking later today. and we'll look at 3d systems, dean foods, sotheby's and caesars entertainment in earning this is week. the sec is conducting a civil agreement. petrobas is facing several corruption problems at home. many of those issues occurred when the president dilusa ran the company. they are trading up today so far in the frankfurt adr. berkshire's hathaways profit
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has seen their profit fall in third quarter by 9%. we have the u.k. retailer of test coast falling by $780 million. warren buffett said the tesco deal was a mistake. warren buffett says that was a mistake. vladimir putin says russia will intervene in the rouble if it continues to slide. we'll have more on his comments out of the apex summit in beijing after the break.
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welcome back. we'll give you headlines. president obama falls on china to create a level playing field to operate within its borders. and russia's government says it will put an end to the slide of the rouble if that continues. and the u.s. is looking the bribery probe at petrobas. as we just mentioned, president obama took the stage at the apec summit in beijing in the last hour sending a direct message to his chinese counterpart to get series about trade reform hinting at the use of the anti competitive practices. >> deepening our economic ties is why i also hope to make
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progress with president xi toward an ambitious high standard bilateral investment treaty that opens up china's economy to american investors. we look to china to create a more level playing field on which foreign companies are treated fairly so that they can compete fairly with chinese counters. a playing field where competition policy promotes the welfare of consumers and doesn't benefit just one set of companies over another. we look to china to become an innovative economy that values international protection rights and objects trade values for commercial gain. >> i have to say, i was quite surprise bid the cheery tone used by president obama. he said the u.s. is welcoming the rise of a prosperous, peaceful china and is appreciative of the work by xi jinping and what he has done.
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hadley, tell us about the cheery tone president obama used in response to the disappointing midterm election that took place last week. >> i think he would be cheery to get out of the u.s. for a couple days. it's been a bad couple of weeks or months for him. he's talking about something he knows, his first trip to asia has been in 2009. he's been working on the pivot with questionable results possibly, but certainly he's in a sphere where he feels more comfortab comfortable. as we know, other things are happening with mr. putin over ukraine. they are not meeting at the summit but will meet next week. and frankly what's happening in amman. the nuclear talks have been extended a day because they are not where they want to be to reach an agreement in the coming weeks. so a lot is happening with the president. >> now we had other leaders speaking from the summit. president vladimir putin also speaking from apec says russia has no plans for capital
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controls and will take the necessary steps to stabilize the rouble. he also said there's no economic reason for the slide in the nation's currency and hopes speculative trades come to an end. in fact, we are seeing a jump in the rouble today against the u.s. dollar. take a look at it up by 3% today. also, we are seeing a rally in the equity markets today in part because the russian central bank has abandoned the rouble trading ban today and it's floating the rouble. hadley, now they are blaming speculators but take a look at the fundamentals and the plunging oil price and the zero percent forecast. >> interesting. i find it funny when these leaders with questionable democratic values come out and blame speculators, it's what the president has done in turkey as well. that's a bit amusing. at the same point, we talk about the oil price. i was actually reading president reagan's -- michael reagan, one of president reagan's kids, came out to say on the heels of the gorbachev companies and said, we're entering the cold war.
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this is how we whipped the soviets in the first place, we worked with the saudis and tampered with the oil price and suddenly russia was bankrupt. it's interesting as part of the conversation as well how big of a hit they will take off the fact that the oil prices are low and possibly will remain so low for a while. >> thank you, hadley. now we'll take a look at today's other top stories. american airlines's flight attendants rejected a five-year contract by 16 votes. the move forces the world's largest carrier in the union into binding arbitration. the contracts roughly affect 24,000 workers. this also integrates the merger with us airways that occurred last year. it could be a blue christmas for workerson wall street. a new survey by johnson and associates finds year-end bonuses for trading funds and hedge funds could drop by 10%. on the bright side, investment bankers of private equity workers could see their payouts
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rise by 10% to 15%. asset managers may also see a bigger year-end paycheck. and still to come on the show, football fans get ready. the nfl makes its biggest push into the u.k. so is the franchise headed to the end zone here in london? we disthausz with the international vice president after the break.
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and welcome back. take a look at the u.s. futures pointing to a higher open for the dow jones industrial and the nasdaq up 2.5% in market trade. but the s&p is indicating a slightly lower open after the industrial sector hit a new record high. now when the stayed gym played host to the third nfl game on sunday, this time it features america's team, the dallas cowboys who took on the jacksonville jaguars. denell robinson went into the end zone for a touchdown. then dallas snapped their two-game losing streak throwing two touchdown passes. the cowboys won 31-17 to improve to 7-3. now, joining us is mark from the
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nfl. i love the idea of british people like myself who love soccer and rugby into the u.k. after loving american football. but this seems insurmountable. it's a long flight from the east coast and longer from the west. is it possible to have a u.s. nfl team based in london? >> definitely possible. if you go back 50 years, i suspect it was contemplated it would be impossible to have a seattle team play a miami team, for example. and we've overcome that. so definitely possible but it has logistic difficulties that need to be solved. >> i'm sure it would be hard on the players spending the time traveling. also relocating their families for a couple months at a time just to play in the nfl here in london. how would you mitigate that risk? >> well, first of all, we're lucky in that our season is essentially we play only one game a week. so that all adds for greater ability to travel. and also i think we would be able to schedule in a way that you could potentially play two
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or three games in the u.k. and then travel over to the states and play two or three games in the states. while in the states, we could create a training camp center that they would be based on while playing in the states. so these are all things we can do to mitigate the tune for the backwards and forwards. much as the east coast as the west coast. >> i'm curious about the higher taxes players have to play in the u.k., so the teams in london, what would they get in terms of a salary pack? >> there's an alternative to that, maybe we'll be able to find a way to work here and have a structure that wouldn't penalize us here in the u.s. and just spending a period of time here while they were playing. so there's probably two or three different ways to approach it that we're studying at the moment. >> is the fan base big enough?
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three times a year you're able to easily fill wimbley stadium, but for eight games a year, would that work? >> all the work we have done so far suggests it will. we have about 3 million avid fans who watch and then another 8 million casual fans. both of the numbers growing. and on sky sports, which is kind of where the home of the nfl is, we are now the fifth most watched sport on sky and we are averaging as much as european rugby. so we are confident that the demand is there for us. >> the teams playing last night have been touted as one of the possible teams to possibly move to london because their owner owns a soccer team here in london. what would the fans in jacksonville think that. surely there would be uproar? >> they would not want their team to be moved to london. and to be honest, we are not
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focused on which team would move and when we'll move the team. we are focused on do we have a large enough fan base and can you solve the logistics of it. that's something we have to be able to answer to our ownership before we can start a conversation about which team. >> aside from london, are there other international cities the nfl is looking to expand to? >> i think we'll start to look at germany with a great fan base in germany. always have been. and great stadium there is as well. another market that's appealing to us is brazil where obviously they put a lot of infrastructure into their stadiums. and that has the benefit of being on the same time zones as the u.s. so that would definitely be one to look at. >> exciting stuff. >> mark, i hope you get over the barriers because it would be a great thing to have in london. mark waller, vice president for international at the nfl. with. >> doe want to hear from you on this topic? how likely is the nfl franchise in london? with logistics issues like family, traveling and scouting,
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it could be a long way down the road. john tweeted, my question is, what are they going to name them? the royal cowboys, perhaps? and josh says, if the nfl does this, it will prove how little they care about their fans in the u.s. get in touch with us at worldwide@cnbc.com. you can use our personal handle as well. what about the names? i thought about the london lions. >> i like it. but before we heard the classification for the fan base, either you're a casual or avid fan. what would you be? obviously, you say you would be swept away by this. >> i don't think i would be swept away but i would definitely get sucked into it. >> more of the casual fan then. >> not if there's a team in your own city. i have been a casual fan in the states because i don't have a allegiance, but i think if there was a fan here -- >> more than avid then. >> deciding factor would be sunday arsenal game up and the nfl cowboys up.
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which game would you watch? >> no question about it, the arsenal. it was an impressive weekend for two new out-of-this-world movie. disney's topping the office with "big hero 6." and paramounts "interstellar" each topped $50 million in their debuts. and still going strong. "sesame street" is now the longest running kid show in u.s. history and is broadcast in more than 140 countries. "sesame street" has updated with the times. now half the viewers watch big bird, kermit, grover and oscar the grouch in digital formats. >> american children grew up on "sesame street" and big bird,
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did you watch it? >> i did watch "sesame street." >> interesting. we'll look at the u.s. futures trading ahead of the open on wall street, a mixed day with the dow and s&p 500 slightly high we are the nasdaq slightly lower, oh, it just turned positive.
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5:30 a.m. in new york. welcome to "worldwide exchange." i'm seemamody. >> i'm wilfred frost. and president obama is at the apec summit calling on the reduction to barriers of trade. >> we look to china to create a more level playing field on which foreign companies are treated fairly. so that they can compete fairly with chinese counters. >> supporting the rouble. the rush president vladimir putin says there's no reason for the slide in currency and says the government will work to stabilize it. transocean posted a huge third quarter loss after delaying the earnings report front friday due to nearly $3 billion in charges. and troubles begin to brew for petrobras as they face a probe by u.s. authorities. you're watching "worldwide exchange," bringing you business news from around the globe.
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and if you're just tuning in, thank you for joining us on "worldwide exchange." a quick look at the futures pointing to a higher open on the back of stocks hitting record highs on friday. in fact, the dow jones industrial crossing the 17,500 mark today or friday for the first time ever. we also saw seven out of s&p sectors ending up on the day lifted by energy and industrial needs. in fact, the energy sector continues to move higher as the price of oil continues to move lower. one of the outperformers right now looking at the dow jones industrial up 15 points in premarket trade. now, diving into the european markets we do have a eurozone gdp number due later this week. we expect to see growth in germany and france with the xetra dax up here. we'll see if this translates to a higher open for wall street. looking at the euro stocks, this is a good gauge across the eurozone up 17 points or half a percent on the day.
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guys, back over to you. we saw a three-week winning streak for the u.s. markets last week, but also on friday we saw bonds moving higher. once again, it's all about buying the dips. not just in the equity markets but the bond markets. it's safe to say this could be persisting this week with a whole lot of macroeconomic data on the docket with retail sales later this week. gdp numbers out of europe. why shouldn't you be buying the dips? whatever asset class you're in also with regards to the dollar? >> well, i don't know if that's exactly across all regions when we look at the equity markets per se. that's been the case the last three weeks in the u.s., but not so much in europe, particularly through november. of course, everything benefited from the second or third week of october. but since then europe has been struggling for direction. and i do think it's quite interesting, the u.s. has three weeks of strong gapes despite the fact that qe ended. the earnings growth are coming through with the market responding. that's positive for the long-term fundamentals of the
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market if they are responding to fundamentals rather than policy. and this has come in better than expected. profit margins have grown to record levels at 10.1% of sales. keep in mind, we hear from the biggest retailer this is week. nordstrom and macy's, we'll see when they play catch-up if the economy continues to show strength. >> we still have the hack attacks and discounting. and a consumer that, you know, you can't consider the consumer healthy because wages is not rise. unemployment is down 5.5% but wages are not increasing as they should be. president obama took the stage at the apec summit in beijing in the last hour sending a direct message to his chinese counterpart to get serious about trade reform hinting at the u.s. of anti-performance practices.
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>> i also hope to make progress with president xi toward an ambitious, bilateral investment treaty to open up china's economy to american investors. we look to china to create a more level playing field on which foreign companies are treated fairly so that they can compete fairly with chinese counters. a playing field where competition policy promotes the welfare of consumers and doesn't benefit just one set of companies over another. we look to china to become an innovative economy that values the intellectual property rights and rejects cyber theft of trade secrets for commercial gain. meanwhile, speaking at the start of the summit, xi jinping says the risks feared by the chinese economy are not to be feared. >> translator: the key step is
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to look into comprehensive deepening reforms. i said last year at the summit that we are there to crack hot nuts, dare to take risks and deal with tough problems. >> ann lee is the professor of economics and author of "what the u.s. can learn from china." good to see you. i suppose one of the key factors on the agenda are some of the anti-trust probes we are seeing from china into foreign companies. only 15 years ago china was welcoming all forms of foreign investment companies, but over the last few years that seems to be changing. is that a meaningful change or temporary blip? >> i believe it's going to be meaningful. at lo of people doubted xi jinping when they first announced they were going to do the anti-corruption reforms. so far people have been really surprised because the number of people they have cracked down on and the scope of the reforms
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have been much broader than anyone ever expected. and he seems to be extremely serious about really changing the business culture in china. and so i think that this is going to have a lasting effect. of course, things aren't going to happen overnight. these changes take a while for it to really sink in, but i do think that is going to be noticeable. >> and would you say, some of these, as you say, the anti-corruption probes he's pushing for, are groundbreaking, not the least of focusing on past members of the standing committee. is president xi the most powerful chinese leader since jaeping? >> yes, i believe that he is proving himself to be extremely strong there. he's prosecuted more than double the party officials than previous years in just the first six months alone. and so this is definitely a
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completely different track that he's taking compared to say the previous administration. and so he's also announced that he's going after folks who are fleeing china to hide their sources of elicit wealth in other countries and have created treaties to make sure the countries will cooperate with china in this regard. >> ann, a complicated relationship between the u.s. and china over the past couple years, but an hour back president obama said a bilateral investment treaty could come to fruition to strengthen china's business up to the u.s. what do you think the likelihood is of this coming together? >> well, i would probably give it a 50/50 chance because there are certainly many members of congress who probably are very set on thwarting anything on the obama agenda these days, after
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the strong win. and the american public is focused on other things, there are so many issues like immigration reform and other big topics that it might difficult for obama to push this through. of course, the tpp, which originally excluded china is still on the back burner, and so like up said, it's sounding great but politically it might difficult given there's so much anti-china rhetoric in the u.s. >> we'll leave it there. ann lee, professor of economics and finance leader of the university. and president obama did have to face up to the pummeling over the midterm elections, he took the blame for the democrats rouging by republicans. in an interview with cbs's face the nation before leaving for
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the summit, he acknowledged that his party has struggled to persuade the other side. >> i think there are times, no doubt about it, where we have not been successful in going out there and letting people know what it is that we're trying to do and why this is the right direction. so there is a failure of politic there is that we've got to improve on. >> and the president says he plans to push ahead with immigration reform before the end of the year bypassing a gridlocked congress. but republican leaders have warned president obama he will damage already tenuous relationships with them if he takes y takes unilateral action. and the president says he hopes the senate will approve loretta lynch to be the next
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u.s. attorney general. she will cover long island and queens. and coming up, facing scrutiny in the u.s. adding to a list of allegation that is could shine a hard light on president yousef's government. we'll discuss this after the break. at wvalues matter.ket, so we're transparent about the fresh wild seafood we sell. and the species we don't. independently rated for sustainability. traceable from dock to store. sent fresh from over 50 u.s fisheries with responsible fishing practices. like bornstein seafoods because to us, value is inseparable from values. whole foods market
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america's healthiest grocery store.
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and let's take a look at a big mover in today's trade. transocean said it would take in 20.7 billion against third quarter earnings against the drop of oil we saw. it released its figures showing that oil futures are dabbling in oil exploration. shares are up today but down just about 40% so far this year. tough year for transocean. absolutely. the major oils are digging to cut back in capex is not helping the likes of transocean. and petrobras is coming under fierce scrutiny from the u.s. hampton pierce is joining us with more. >> reporter: the u.s. is
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investigating whether petrobras was paid in bribes. the fastball times say a criminal probe was entered into the oil company whose adr trades on the new york stock exchange. the sec is examining where the company, middlemen or contractors violated the u.s. foreign corruption practices app to make it illegal to bribe foreign officials to retain business. petrobras says they overinflated costs and acquisitions and paid the money to others. now the ft says specific transactions under scrutiny include the purchase of a refinery in the u.s. and a few in brazil. this may concentrate on the
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quality of the petrobras business. this is one of the biggest controversies in history. petrobras is trading down nearly 21% this year as the u.s. regulators have brought charges against several companies in the past two years. just this year alone, there have been settlements involving h hewlett-packard and alcoa. we'll take a look at today's top stories with the american airline flight attendants rejecting the five-year contract by just 16 votes. the move forces the world's largest carrier and the union into binding arbitration. the contract affects roughly 24,000 workers.
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the reduction also complicates the merger with us airways from last year. and half a million replacement ignition switches were ordered last year two months before alerting the u.s. regulators about the massive recall. the wall street journal says e-mails between gm and the parts supplier show the company placed an you are jeurgent order after meeting with top officials. switching focus, it could be a blue christmas for some workers on wall street. a new survey by johnson associates finds year-end bonuses for hedge funds once major profit engines could drop by 10%.
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on the bright side, private equity workers could see their payouts rise by 10% to 15%. asset managers may also see a bigger year end paycheck. as if they department make enough money, right? >> come on. if you're making money and if you're delivering profits, the hedge fund industry certainly hasn't done that this year, but the m&a bankers have. and so have the pe firms taking the companies to the exchanges. why shouldn't they be paid off for that and be rewarded? >> i agree. as long as it is paid out in equity and that there's some kind of -- some kind of way in making sure the top are paid in relation to the lower down in the economy. but sometimes the profits show they deserve to be paid for it. >> i wonder if the crack down on the inversion deals will lead to fewer deals resulting in the bonuses being weighed on. >> could be.
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>> the journalists here, it doesn't bother us. president obama always on china to create a level playing field for foreign firms. russia's vladimir putin says the government will put an end to the rouble slide if it continues and u.s. authorities reportedly drill down to brazil's petrobras in a bribery probe.
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now the u.s. has had three straight weeks of gapes, but that hospital been the case in europe with november much more range-bound. we have slight positivity but not too significant. the ftse 100 is up a quarter of a percent. france is up and italy is down with september industrial
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production out earlier which was down 9.9% month on month expected to have been down 9.2%. does not bode well for the gdp news we expect later out this week. that will be the market mover in europe. and the u.s. traders say it's about the retail sales number due on friday. economists expect to show a headline gain of 0.2%. and a 0.4% gain in retail control which excludes autos, gas leap and building materials. so retail sales later this week will give us a better indication of the strength of the u.s. economy, especially after getting the better that expected jobs report on friday. right now futures point to a higher open. the dow broke 17,500 last week. right now indicating a gain of 5 points in premarket trade. carolyn? here's a run down of what to watch this trading day. no economic data but retail sales and consumer president later this week. and the boston fed president eric rosengren is speaking.
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and we'll look for openings reports from 3d systems, dean foods, sotheby's, and caesars entertainment. the absence of major economic data points on friday, until we get the retail sales data, does this work because we are sort of left in limbo after the jobs report on friday? >> oh, it does work. and this is the type of trading day to start the week. we are fundamentally going to see how the market really sets the tone for the next week or two as we start to get near year-end. for the reasons, i really believe at least in the stock index specifically, the s&p 500, the market is set up to buy the dips. the problem is you're not going to see the pull-backs with the volatility coming through, but at least the 20 to 30-point moves lower in the s&p are probably few and far between. i think actually down days in the s&p right now are only going to be a couple moves at all as
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far as a couple ticks lower. but the market is setting up very positive. >> michael, it's still the defensive leaders leading the market higher. can we play catch-up in this market especially if the u.s. market is strengthening? >> well, as you mentioned earlier, i think to end the week with retail sales, those are the type of scenarios where if you get something well above .2%, it's setting up well for the confirmation many are looking for. but again, the struggling sectors, specifically the ones you just mentioned, are not really hurting specifically very badly. i think more importantly i think what they are doing is just lagging. and in those lagging scenarios, the weakness right now or the weaker sectors are the ones that look to perform the best looking into year-end. right now they don't look to clearly lead the entire market. they will probably just come along and look for somewhere between 3% to 5% moves forward. >> bear with us for a second,
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the wimbley stadium featured the cowboys and the jacksonville jagua jaguars. it was all the cowboys with quarterback tony romo returning from a back injury to snap the two-game losing streak throwing three touch down passes winning 31-17 to improve their season numbers. michael, i want to bring you in on the debate, do you think it's the right thing or should they be playing abroad, the u.s. nfl teams? >> absolutely they should be playing abroad. as a fan, i can understand why they are widely accepted. i'm not surprised there's not a house for the nfl but they will continue to pick it up as far as more games being played. the ratings here are excellent.
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people want to watch more and more football in the nfl here. and when the games start earlier in the states, it's more to view on a sunday. i think frequently continue, but an actual team in london would be a major disadvantage just clearly because of the travel concerns. and then, of course, if they did make the playoffs, that would be a quandary and nightmare in one, but the nfl has a great recipe here. the teams don't mind to be followed by a by week because of rest, but you can tell it's been very well received and it will not stop. >> michael, on the soccer front, i'm glad your team lost this weekend. sadly, my team arsenal did as well. thank you very much, michael gerka, president of brewing hill partners. we have had tweets in on the thoughts of bringing football to london, i certainly would embrace football here in london. i'm wilfred frost. >> i'm carolyn roth.
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>> i'm seema mody. thank you for watching. " squawk box" is next.
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welcome to "squawk box." president obama got out of dodge in china immediating with the world's leaders saying they are working on a trade deal that could be, in his words, historic. stocks continue on a hot streak. the bulls looking to continue their charge with the dow and s&p trading at new highs. and a couple of heroes at the box office. one that is out of this world. two new films hitting the $50 million mark. i kicked in $70 for one of them. on the same day weekend, this is the fourth time ever that's happened. it's monday, november 10th,
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2014. "squawk box" begins right now. good morning, welcome to "squawk box" here on cnbc. i'm andrew ross sorkin along with joe quick and becky quick is off today so we have maria carusa cabrera in. the big story this morning, general motors ordered half a million replacement ignition switches and did that two months before the recall of millions of vehicles publicly. the wall street journal citing e-mails between gm and its supplier delphi. >> and gasoline prices have dropped 18 cents with the latest li

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