tv Worldwide Exchange CNBC September 15, 2015 4:00am-5:01am EDT
welcome to worldwide exchange. >> i'm wilfred frost. >> i'm susan li. these are your headlines from around the world. >> a fed rate hike would be positive for the economy. the bank of japan itself leaving policy unchanged while investors pause for breath ahead of the fomc meeting. >> stocks are going further into the red despite a crack down on illegal margin trading. >> we cannot coexist.
alexis tsipras and his new democracy rival rule out forming a coalition as they go head to head ahead of sunday's election. >> auto stocks are shifting up a gear as they rose for the 24th straight month. they are not concerned by china's slow down. >> i guess nobody really could predict this. >> we are not so much concerned because we did our homework and we have a very attractive portfolio. >> let's get straight to it. checking in on european auto stocks, out performers by the names of fiat and diamler. let's get straight to the frankfurt motor show. a close to 10% increase in car
sales in the month of august just below the average of its competitors and nancy just whole with the chairman and ceo of nissan and asked about the impact of a china slow down. >> well, you know, as ceo of renault which has no presence in china, the fact that the chinese market instead of growing at 8, 9% is forseen to be growing at 3 or 4% is no concern. for us, china is just an opportunity. no matter what the market will do. this is a market of 20 million cars on which we have no presence. so we cannot be worried about the market where we have no presence. however we're very optimistic because finally we'll be able to come with cars to compete on the
market. >> it's a different story. obviously we have never planned for a very strong growth on years to come. we know when the market was growing that double digit was just temporary and we'll be falling down where the growth is much more moderate. everybody loves the strong growth but practically the norm that we were foreseeing for the next year. now, 5%, 6% growth in the market of more than 20 million cars it's a substantial growth. >> nevertheless you have a plan in china, is that still on track for 2016. >> we have our capacities in place. obviously we will adapt our capacity to the rate of growth of the chinese market but today we're okay. we're not in a situation where
we have a lot of overcapacity and this market is going to grow per year. i'm talking about the market. >> does that mean you can delay the opening of this factory however? >> not at all. all the openings will be done in time. the launch will be tun in time. our plan is to continue to increase capacity in the future will have to follow the pace of growth. >> we have seen the chinese mainland manufacturers trying to pick up speed, could you foresee yourself ever exporting from china into europe. >> we have no plans to export from china today and we will, for the moment, we are dedicating all of our capacity to the chinese market. if the situation changes drastically we'll see but for the moment we have no plan. >> you've often seen a lot of growth in the u.s. but there's concerns that that market reached a plateau and that
growth is more to be desired. how concerned are you about a leveling out in the u.s. market? >> the u.s. market has been recovering very well. we are today above where we were in 2007. it's still going very well. we see a 2016, more into the 1 to 2% growth which is a very moderate growth. it's a healthy market and there's no reason for the moment to speculate that the u.s. markets are going to go sour. obviously we're not forecasting very strong growth from now on but 1 to 2% growth on a yearly basis is very healthy. >> so 1 to 2% growth but some say this could be as good as it gets in europe. you benefitted from the european recovery as well. and then the emerging market space. you have a presence in brazil. that's a market very close and dear to you. how concerned are you about latin america? >> it's a concern because not
only is brazil struggling but argentina is struggling. we're adapting to the situation. unfortunately we don't see a rebound soon. this is going to be a situation which seems to be lasting for two or three years to come. we're just adapting to the situation. just one of the sole points of the car market globally. you have from one side brazil and argentina, from the other side you have russia. you have japan also which is a sour point because japanese market is down so far this year but in front of this you still have, you know, a very healthy u.s., a very strong recovery in europe and india is growing at a very interesting pace and frankly i don't think, you know, the chinese market is a reason to worry too much. for those that predicted that
growth would be a double digit forever it's a concern but those that thought from the beginning that it is unsustainable and will be going on a much more sustainable growth, 5 or 6%, still one of the highest growths existing in the car market, i'm okay. >> all relative. >> more from the frankfurt motor show later. but let's get to our top story, susan, which is the rate debate and let's kick off with japan where the bank of japan met earlier today and of course recent weeks data out of japan was soft. was further easing going to be unleashed? the answer is not quite yet given that the october meeting comes with more economic releases. it would likely be when if it is indeed warranted. what about the commentary today? we're surprisingly upbeat on the domestic situation. the assessment remained optimistic emphasizing that business investment continue to
recfo moderately while private consumption remained resilient so not exactly in mind with the latest data releases we've seen. the situation was down beat. exports had been more or less flat which in august were saying they were picking up. it's put down to emerging not developed economies. now from tokyo, when the bank may be pushed to change it's current stance. >> for the time being, though, they have maintained their 80 trillion yen asset purchase program and some are starting to wonder how much fire power that actually has and whether or not that's triggering a dry out of
liquidity in the market. for the day, bank of japan, had a little bit of a knock on effect on the dollar-yen pushing it toward 120 and shaving off a few on the nikkei 225. that's the latest from the bank of japan. >> it held it's very loose policy intact and the potential remains for them to add to that and not reduce it. >> so the boj governor talking about the possibility of a hike in interest rates of course in the united states and he says it's a good thing for the world because it shows that the u.s. economy is improving but we have investors and traders holding on the sidelines, holding their breath as to what the fed is going to do. now taking a look at the trading range, 120 point swing for u.s. market which is is the narrowest we've seen since august 18th. usually we've been trading at a
400 point trading range and there is no volume out there. no one is trading. we're looking at the lowest in a month's time. what's the probability of a hike in interest rates? right now rates futures are telling us there's a 28% probabili probability. we might not get a rate hike this year. we have been speaking to the chief economic advisor and he's talking about the volatility we're seeing ahead of the fed decision. >> we're in the midst of a change in the volatility par paradyme. it's too close to call and the big question is not whether they're going to hike or not. the big question is why are we so obsessing with a single hike? that says a lot about how
co-dependent markets and central banks have become. >> too close to call. we do have black rock saying it could be a 40% probability this week and maybe 15% in october. 20% in december. let's talk about japan because all other central bank versus to react to what the fed is going to do, what they're not going to do this year. let's get back to japan holding off on adding more stimulus but talking about a cut in their outlook when it comes to exports and outlook. we were rallying 2% before those results came out. there are calls now saying that we're going to get more stimulus and expansion of the balance sheet in october. >> let's talk through this and joining us around the hong kong -- >> hong kong. >> we're back in london. i'm waking up to reality. >> it's almost been a week now. >> chris good to see you today. head of economic research.
you're bringing me back to asia. boj, any surprises for you from the statements? >> you have to remember that he often likes to shock the market and that's why some people were thinking okay we don't expect it but maybe he will have a little rabbit to pull out of the hat. he didn't. and if you look at the detail of the text there's no surprises whatsoever. they decide shred two days before the fed meeting. if we were to surprise the market that would be a two day wonder. everybody will be looking at the fed after that and will have forgotten what we have done. they're waiting to see how things evolve between now and october and they'll wait and see although i don't think they'll be doing anything then either unless things turn really bad. >> let's talk about the commentary? did he blaze over the weakness domestically? the fundamental issues are still at home, aren't they? >> the recent domestic data flow is very disappointing.
no doubt about that but what he said is don't just look at the second quarter when gdp contracted and consumer spending was weak indeed. look at the past few quarters as a whole. q-1 was very strong in particular. it was pretty much just like we saw in q-1 last year ahead of the consumption tax hike when people brought forward spending. if you look at those as a whole there's still some positive trend there and that's what you might say he was clutching at straws. >> it's showing contraction. we've had runs of weak export numbers and weak household consumption, right? >> that's right. the consumer spending numbers have been very disappointing. on balance we think gdp probably broadly flat this quarter after the contraction in q-2. so that's a pretty bad middle of the year that we've seen in japan but you have to put them
aside. >> but will they have to expand the balance sheet and add more stimulus? >> if we see a negative print in the third quarter and underlying deflation deteriorate significantly and the nikkei shift down further to around 15,000. yeah they'll have their hands full but they don't want to do it because the ammunition they have left, certainly true for japan is its running out. they're not just thinking about the near term strategy but what they're going to be able to do in 2017. that tightening is is going to demand extra monetary stimulus then in 2017. if it uses up it's bullets now it's not going to be able to react then. it's saying let's see whether we can get through this period.
>> he spoinlts to stropoints to. growth reemerged. >> sounds like he's staying put for now. thank you for your time. head of economic research. let's move on to talk about chi china. the government looks to boost the second largest economy and it's the biggest injection since april according to the official data. meanwhile, beijing seized up to a trillion yuan of unspent local government budgets according to reuters sources. let's check in on asia. sri joins us from singapore. sri. >> hi there, yes. all of these efforts by beijing are not really registering on the breeoader market and there'a distinct lack of confidence because peel don't really know
whether beijing is cheer leading this market or trying to restrict the speculation. and there's a lot of uncertainty in term of the economic trajectory. we continue to see data consistent with growth. so mainland china equities extended their losses to roughly 6% off by almost 3.5%. 3,000 is looking very vulnerable. and the markets on the defensive here with the exception of the nikk nikkei. we did see the food sector, that bolstered the food stocks. very modest gains. up by 51 points. all eyes on the fed. fmc. what tone are they going to strike? will they go through with the fed rate hike or defer it until
october, december, or even 2016. that's where we stand. back to you. >> thank you, sri. coming up on the program, we're speaking to the ceo of general motors about the threat of strikes, mega m&a and of course china's slow down. plus we cannot coexist. find out why greek's syriza and new democracy parties are ruling out the possibility of a future coalition. >> and kick starting your business, we'll ask why crowd funding platforms could be the best way to put funds into the hands of budding entrepreneurs. we'll speak to indiy go go late on today.
country. >> there will be a govern. there will be no unnatural government because what he is calling upon me to form together is an unnatural coalition because the country will either have a progressive government or a conservative government. >> so what do we learn ahead of this election and latest development. i think steve hit the nail on the head this morning saying this is a far smaller short-term event than we had over the course of the year. three or four events in greece. the crucial thing between both sides, they can't agree on all things but one thing they will agree on is they will uphold the bailout terms. they have been through the worst of not doing that and realize it's the most important thing. in terms of financial markets in the short-term this election is not as big as the events we had earlier. >> i feel like the markets and everyone around the world has greek political fatigue at this point. >> sure. >> both parties though it is a dead heat they're looking at 31%
of the electorate vote which is much less than he came to power with. what do you do? this screams for a coalition government. >> which we're not going to get following the debate yesterday. what it highlights is there's very little to be positive about on greece because no one is going to get a clear mandate to govern whether they're from the left or the right but they need that to pass the reforms that will lead to long-term performance so i think, you know, this election in the short-term shouldn't be too bad but in the medium term we'll probably revisit this whole issue again. >> we'll be back here that. leads us to our poll question today. who would want to be greek prime minister besides those two gentlemen. do you want to take a look on our website, cnbc.com and get
updates on the vote set to take place in greek pretty soon. let's talk about germany. keeping one the pressure on eu countries. the interior minister saying that the block must find a way to relocate around 120,000 migrants and this after member states failed to agree on a mandatory quota system late last night. hungary is launching a crack down on its own boarders. they detained 16 migrants from breaching the razor wire fence. hadley has been watching the situation for us from brussels. hadley. >> good morning, susan. so for all of these eu ministers walking the red carpet last night in brussels not much action but there was quite a bit of talk. take a listen. >> we're not there yet so we'll continue. he's very committed to get everyone on board and we'll make sure that we achieve results.
more results even in the next couple of weeks. >> we need to convince everyone that we're going to try. they're not convinced this is the way further. let's clarify. let's convince. i mean, in june, nobody thought it possible for us to get an agreement of 40,000. we need to move beyond that. >> what's the next step? >> as i said, move beyond that so some of these eu member states still need convincing. there's questions on the horizon not just about border control but where they're going to place these refugees and migrants and what we heard is an agreement made previously that they'll begin to redistribute 40,000 of these folks. there's another expression of the willingness of the majority of the eu minister's meeting
overnight to do something about the 120,000 migrants. but of course as we know the numbers continue to grow and there's yet to be any kind of comprehensive or strategic plan to deal with these folks and there's what they're going to do in term of sending more aid to syria. they'll be meeting in the coming weeks but no strategy. >> thank you so much. hadley gamble in brussels. >> let's look in on the other asset classes in today's trade and mainly let's just focus on the u.s. bond yield. 2.17%. it's been between 2.15 and 2.2 for a little while. no real sign there to what the market expects when it comes to the fed. still 2.17% the u.s. dollar
against the yen. no further divergence allowing the yen to rally a little bit and not expecting the fed to hike. so some u.s. dollar weakness there. let's look at commodities as well. a little bit of stability the last two or three trading days. the moves much less pronounced. 44.3 on wti. 46.5 on brent. >> it's all electric at the frankfurt motor show but are you ready to give up the fossil fuels when it comes to your own car? you can e-mail us or get in touch @cnbcwex and our personal handles are on your screens. let's get opinions from a driver here in london. >> it comes down to performance, cost and ease and when all of those things come through then i
can care less how they're powered. i'm not going to be like the roar of the engine and all of that stuff. >> but you get that too. tesla has great electric cars that go from zero to 85. >> once they have those three factors which i don't think they have yet. they're still very expensive and the infrastructure is not there for purely electric cars yet but once that's in place we'll see the shift quickly. >> i have one question for you wilf, do you have the need? the need for speed? >> oh, gosh i do. particularly when talking about markets. >> exactly. let's get back to the markets and talk about corporate balance sheets. we'll talk about renault's august european sales after this.
a fed rate hike would be positive for the global economy. the bank of japan itself leaving policy unchanged while investors pause for breath ahead of thursday's fomc meeting. >> chinese stocks sinking further into the red despite another spike in physical spending and a crack down on illegal margin trading. >> we cannot coexist. alexis tsipras and his new democracy rival rule out forming a coalition as they go head to head in the final tv debate ahead of sunday's election. >> auto stocks are shifting up a
gear as european registrations rose for a 24th month. renault's ceo telling cnbc that china is still an opportunity for the car maker. >> we have our capacities in place. we will adapt to the rate of growth in the chinese market but today we're okay. >> let's bring you breaking u.s. data. u.s. inflation has slipped back to zero in august. particularly as the price of oil has weighed on it. we have got cpi year on year from 1%. that's down from the previous month. that was forecast and cpi month on month coming in at 0.2% so rising a little bit month on month. both of those numbers in line with expectation but it has
slipd back slipped back to zero. we have ppi as well. factory gate inflation is the lowest since january 2015. if we have a look at that august ppi down 2.4% on the month. it was forecast to be down 3% on the month so that fall slightly less than expected. it's down 13.8%. it was down 14% that was as expected. 15451. not significant moves off the back of this. >> let's check in on european markets and how they're performing ahead of the big fomc, federal reserve deciding on interest rates this week. we're looking at declines across the board after the session we saw last night on the asia market. so the ftse is down.
the cac not going anywhere. maybe lower than a fifth of 1%. let's check in on the stocks 50 and the 50 biggest companies around on this tuesday morning we're lower by a 5th of 1%. we'll be talking to a lot of these bosses. meantime, the united auto workers union says we'll keep negotiating with fiat chrysler on a new contract delaying a possible strike at the auto makers profitable u.s. operations. the decides agreed to extend their current contract which expires at midnight eastern time on an hour by hour basis and the move is a sign they're making progress when it comes to wage and benefit issues. fiat chrysler seeing an advance here -- a rally of 2% or so.
>> now the auto sector has been driving sales higher. it's compared to a 9.5% rise in july according to the association of european car makers. gm's european division lead the way with a 14.1% increase while volkswagen lagged the market expansion with a 5.7% sales increase. nancy is live for us. >> it's a real shift to emerging markets and china but the auto makers are getting a bit of a boost however there is a fear that this is as good as it gets which raises more concerns for growth outside even as the u.s. growth which pulled the sector along for so much time now is starting to slow the growth there. we just spoke to the ceo and asked him how he was concerned about the chinese slow down.
here's what he had to say. we will adapt to the rate of growth in the chinese market. today we're okay. we're not in a situation with a lot of overcapacity. particularly taken into consideration that this market is going to grow per year. i'm talking about the car market. >> so carlos like many other ceos have been playing down the china situation. they continue to keep optimistic, especially on the long-term outlook however we give a lot of attention to demand issues given the economic slow down in china and the recent stock market volatility and depreciation of course but there are other real concerns about supply. issues of a price war going on. especially with the chinese mainland manufacturers as well and competition among the european players willing to cut prices to boost market share.
gm is another story of a u.s. auto maker that benefits from growth in china. europe just seeing a bit of a turnaround. so we spoke to the ceo mary bara and asked her what this means for gm forward. whether they would have to cut down production. >> we have a really strong position in china. i'm proud of the team because early on they started to see some changes. they worked on driving efficiency up and making sure that we're focussing on the right products. we have an suv doing well. so we're focused on products that they want. we're staying committed and invested in that market. >> that was the ceo of general motors trying to stay upbeat pointing to success with the buick model.
they have seen strong growth in china but there's no denying the facts. gm saw their figures drop in china for the worst five months last august so still plenty of reasons to be concerned. when we look globally, perhaps the auto makers are starting to look at other ways to boost revenues and increase their bottom line and one such topic is consolidation. we continue to talk about a potential merger with gm however the gm ceo doesn't seem quite interested. we'll have her reaction coming up later in the show. >> thank you very much for that. let's talk australia. malcolm has been sworn in as the 29th prime minister. speaking after his defeat abbott defended his record as the country's leader. >> yes i am proud of what the abbott government has achieved. we stayed focused. of course the government wasn't
perfect. we have been a government of men and women and not a government of gods upon the earth. few of us entirely measure up to expectations. >> although the rise to australia's highest office seems sudden, matt taylor explains that the change had listbeen in works for sometime. >> in the leadership, contested by malcolm turnbull and tony abbott, malcolm turnbull was successful on 54, abbott 44. >> with that, australia's 29th prime minister is announced. after months of persistent leadership speculation tony abbott's run as leader ends just two years into his term. malcolm turnbull becomes australia's fifth prime minister in five years and vowed to restore stability to the country's highest office.
>> this will be a thoroughly liberal government, committed to freedom, the individual and the market. it will be focused on ensuring that in the years ahead as the world becomes more and more competitive and greater opportunities arise, we are able to take advantage of that. >> they began to gather pace earlier in the afternoon with him calming for a leadership ballot saying a new style of leadership was needed after a series of very sub lick ones from tony abbott. she has been overwhelmingly elected deputy with 70 votes against just 34 her rival. >> he's tlihrilled at the prospt
to continue to serve the australian people as foreign minister. >> he is set to stay as treasurer. front run tore replace him is liberal party rising star scott morrison. >> he also announced that the public will vote on the status of same sex marriage after a general election next year following the same time line established by tony abbott. >> four prime ministers in two years. some are saying they're bringing him in for his experience from banking. usually popular in australia but yeah, you know, the economy could be at risk of falling into recession for the first time in 25 years. >> that's it as well. it's due a pull back although structurally it's perhaps a little overdone. it has very positive demographics. still has room to cut interest rates if it needs it. it's not monetized it's currency
so you think it's due a bit of a pull back. >> the problem is made in china. it's out of their hands. it's the lowest growth in four years. i don't think it matter who is is in charge of the economy or the country. >> consumption is a high portion of gdp. this is not something that long-term will suffer purely because of that. i agree, it's cyclical pull back but long-term bear cases on australia for me. >> it makes it more entertaining for us anyways. coming up after this break, we'll talk about kick starting your business and we'll talk about crowd funding plat forms. it could be the best way to put plans into the hands of entrepreneurs.
names two directors to the board. they rose more than 2% in after hours trading but is, in fact, lower today in german trade by 1.4%. >> jeff besos is bringing his dreams of launching rockets to outer space to the state of florida. the amazon founder is holding a press conference at 9:45 a.m. eastern time and the orlando sentinel, the newspaper reporting he'll announce plans to launch rockets from his own company blue origin at cape canaveral and set up processing or assembly operations in the state. spacex already launches rockets and space capsules there as well. blue origin aims to make equipment for scientific projects as well. the search for twitter's new ceo may take longer than expected.
the board didn't choose anyone at their meeting next week and the process could stretch from october maybe even to november closer to the company's earnings report. square ceo jack dorsey is the leading candidate although reports say there's at least one serious outside contender for the job. he appeared at a deutsche bank conference on wednesday. declines of 2.5%. forbes is feeling bullish in a new article citing the main reasons why it will become key for marketeers. among that, the main players. millennials are getting involved in this economy model.
all in a good cause as our coverage continues we're focussing on the business of crowd funding and financing for good causes. our colleagues in asia caught one the founder and ceo to ask why people choose to use these services. >> people can crowd fund for anything. so most people on our website will crowd fund to help a friend who will help a family so that might be helping with relocation costs if they have to move to the city for treatment. you know, help the family if one of the breadwinners can't be working for whatever reason. all the friends getting together. it's the same concept as it's always been in the past. nowadays you don't drop off a casserole. you crowd fund and help with money which might go to relocation expenses or alternative treatments. it might go to treatments overseas. >> so if you want to go and crowd fund how do you get your message out there? what are the big things you can do to get your message out?
>> it depends on what campaign it is. if you're crowd funding to compete in a tournament that's brilliant. you will raise money but you're not going to raise an extraordinary amount of money. if you're unwell and the story is heart wrenching you will raise more money but it's all about your crowd. that's why the word crowd funding is so important. it's who are your crowd? so your first crowd are your friends and family and they're going to support you. that's where you always go first. after that it's friends of friends. friends of friends of friends and if you're really lucky it might be people that you don't know at all so the general public but that's quite unusual. to get the general public to donate to another person is unusual. >> are there any tips a person can do to get their message out there? >> you have to have a compelling
campaign page. nice images. a video is a good idea if you can. you have to have a great story. it has to be authentic and true. we do verify everything but it's really all about who you're reaching out to and at the end of the day it's about extending your crowd. perhaps it's your football club or what have you. but it's not a magic bullet. just because it's online doesn't mean that suddenly you'll make millions of dollars. if you pop up a campaign saying i'm poor, it's not going to work. >> let's talk more about crowd funding. joining us now in studio in london, director of european technology and design at indy go go. >> good morning. >> thank you for joining us. >> this rise we've seen in crowd fund as good that driven by new technology that actually enables it to happen or is this a total new desire from consumers and lenders to want to start bypassing traditional means of financing. >> so crowd funding as a concept isn't new. the base of the statue of
liberty was crowd funded back in the late 1800s by his form of a platform was his newspaper. what indy go go did was use technology to really bring that concept to the mainstream and make it accessible for anybody all over the world. people are crowd funding their ideas and we're connecting people with great ideas with people that really want to fund them. >> what stage are we at compared to traditional means of financing crowd funding is still a tiny proportion. >> we're extremely young. 2008 is very, very young and immature in the finance business but it's moving at a very, very rapid rate and that's because the appetite on both sides is great. we were founded during the recession when banks weren't lending and investors are pretty hard to come by so it was an alternative access to capital and now we see backed companies and big brands leveraging the crowd and it's not really about the money anymore. so it's something that isn't necessarily going to go away
just because there is capital out there. >> and 9 million people visit on a monthly basis. >> 16. >> wow, okay. that went up from my statistics from my notes then. >> we just doubled. >> i like the campaign that you launched from the greek bailout. that was something that they were a part of. you would pay $20 into the bailout fund but even though this does two to good causes, you still charge a fee on these donations. you get 5% of the contributions. >> we do. we take 5%. we also have another platform called indiegogo life which is personal fund-raisers and there's no fee there. >> if it's for the greater good why charge a fee? we're a business and we're bringing a technology and enabling people to raise money all over the world. we have raised over 500 million for great ideas, great start ups, creative campaigns and really good causes. >> so that's crowd funding. you want to move more toward
equity funding going forward? what is that? >> at some point i think indiegogo will look at equity crowd funding. originally we were trying to get access to capital. so they created this perks model which is where you would fund somebody and exchange you would get a thing. equity crowd funding you'll get a share of a company but that's awhile away because the third phase of the jobs act hasn't been passed yet. >> thank you for joining us. much appreciated. director of european technology and design at indiegogo. >> de turtsche bank rallies. cuts will come from its back operations and by spinning off it's post bank addition. seeing minimal declines outperforming the broader benchmarks i would say. >> uni credit is planning to cut
around 10,000 jobs according to a banking source speaking to reuters. they're expected to be concentrated in italy, germany and austria and include the lay offs already announced. shares have fallen around 9% in the past three months. as you can see they're in positive territory so far today by a quarter of a percent. >> a number of media reports suggesting that credit suisse has reached a tentative agreement to pay around $85 million to new york and federal authorities to resolve these allegations of wrong doing when it comes to its so-called dark pool operations. the settlement may be announced by the end of september. credit suisse shares are up just over 1% over the past 12 months. so nothing to write home about. >> aeroports de paris. they report the best ever month in terms of traffic.
stefan joins us live from paris. >> good morning, wilfred. we're going to look at the sector not only because of the traffic but also because the french government is going to launch the privatization process for two main french airports. one located in niece by the french riviera close to the french border. they're targeting a high valuation. we're talked about 18 times it. that's what the government got from the privatization a few months ago. in practical terms the government would like to raise 2.4 billion euros. niece is the largest in the country with almost 12 million passengers last year. it is widely seen as a trophy asset because it's not facing any competition from high speed train and it's located by the sea. on the negative side it has very limited possibilities of extension because it's just by
the sea. leon airports have 8.5 million passengers last year. it's well located but it's facing a very tough competition from high speed train and also the competition from geneva airport in switzerland. the government is counting on a strong demand to get good price for its 60% stake in both airports. plenty of potential candidates are expected to make an effort. but this time the government has said very strong conditions for the potential bidders. it doesn't want to repeat the mistakes that were made just a few months ago. the airport has been sold to a chinese company which according to the news website was a shale company with only 10,000 euros of capital and the ceo of this chinese company disappeared shortly after the operation so that's definitely a scenario that the government doesn't want to reproduce. it's going to announce -- the government is going to announce
the selection of the banks which are going to handle the operation and that would be the starting process of the privatization. back to you guys. >> thank you very much for that as ever. let's just check in on markets again for you and start with bonds. the yield on the u.s. ten year 2.18%. not really telling us much about what the market expects from the fed this week but we'll look at forex because it's telling quite an interesting story. strengthening against the dollar because the yen didn't increase it's easing this morning and no tightening is expected to come this week from the fed allowing the yen to rally. 11955 so far today. >> something tells me you can go on and on about bonds, couldn't you? >> just on and on. >> i kept it short there. you could have made that accusation and rightfully so if i had bored everyone for ages. >> i would agree. let's talk about u.s. futures. >> i'll make a point of it. >> this is what i asked for.
let's talk about u.s. futures, shall we? we are looking at pretty low volume. the lowest in a month and also we have the narrowest trading range so that tells us everyone is on the sidelines waiting for this fomc decision this week on what they're going to do with interest rates. fair value telling us we're going to be down again. not much movement priced into the open. the s&p 500 down one point or so. the dow jones implied open lower by 16 points. nasdaq, right now we're looking at 6.5 points down. so we're going to go to break. still to come on worldwide exchange, fighting talk. our next guest says the fed is trying to sound tough but will the fomc's actions match it's words. we'll take a look ahead to thursday's rate decision. an a network and the cloud. it's reliable uptime. and multi-layered security. it's how you stay connected to each other and to your customers. with centurylink you get advanced technology solutions, including an industry leading broadband network,
good tuesday morning. welcome to world tps wide exchange. i'm susan li. >> i'm wilfred frost. here are your headlines from around the world. >> a fed rate hike would be positive for the global economy. leaving policy unchanged. investors are pausing for breath ahead of thursday's fomc meet. >> auto stocks shift up a gear as european registrations rise for the 24th month in frankfurt. gm ceo says a fiat chrysle