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tv   Worldwide Exchange  CNBC  October 19, 2015 4:00am-5:01am EDT

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a very good morning to you. this is "worldwide exchange." i'm wilford frost. >> good morning day morning. i'm susan li. here are your headlines from around the world. >> it's not 7% but it's better than expected. chinese growth slows to a 6-year low with premiere xi jinping preparing for the first visit to the u.k. shares in deutsche bank clears the decks with a radical plan to split up the investment bank in two and show several key executives the door. sergio marchioni tells cnbc
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he's confident in the success of ferrari's ipo as it is about to be priced at 48 to $52 a share. japan post shows the ipo at a top end of the price range in a listing that creates a combined value of $65 billion. all right. so here we go. less than 7% but you know what, 6.8, not bad. 6.9 was better than 6.8% forecast in the world's second largest economy. the weakest read we've seen for chinese gdp in more than six years. you have to go back to the global financial crisis in 2009. however, a number of analysts and economists were forecasting 6.8, will. take the 6.9 and to the good with the bad. >> people surprised with the
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positivity there. overall, a series of down beat data has raised further support measures to prop up the economy. weak than than expected growth and fixed asset investment came in below forecast. retail sales, that was a bright spot rising slightly above expectations in september. let's get out to uneunice. she joins us live from beijing. >> reporter: thanks so much. the 6.9% is the slowest growth that we've seen in the past couple of quarters, especially, and at the same time though i think that the overall message that we're getting from the chinese leadership is that even though it's slowing down, this economy is still stable and strong. over the weekend the chinese premiere had said that it would be difficult for -- he said not easy for the country to meet its annual growth target of about 7%. at the same time, he did suggest
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that they are still closely watching and somewhat comfortable with the level of employment as well as wage growth. so in addition to that, the chinese president, xi jinping, who's traveling over your guys's way to the u.k., also spoke to reuters in a written interview in which he said that he was -- he expressed that there are concerns about the overall economy but that china would be able to weather the downturn. that is the official way that the leadership is painting things. the problem though, of course, is that there's been a growing -- growing concern among many economists here that the data, the quality of the data, the integrity of the data just isn't really up to par. this has been a problem that the country has seen, many economists have had a problem for quite some time. at the same time, it's getting
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worse. a lot of economists said that for political reasons they believe the leadership is starting to skew this data even further and that there is a widening disconnect between the headline figures as well as other data that they're all closely watching. and the problem with that is that that then creates a credibility gap between what the leadership wants to project over seas of a strong economy, a strong leadership in control and what is actually happening on the ground. guys? >> okay. eunice, thank you so much. eunice yoon in china, in beijing. ahead of a four-day state visit to brittain this week, chinese president xi jinping speaking to reuters saying that they look forward to engaging with the u.k., he says, in a wider range. he called brittain a, quote, visionary and strategic choice to strengthen strategic ties with china. one company already seeing the benefits of a possible deal is
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the chinese electric car manufacturer, byd. it's warren buffet backed. warren buffet owns shares. it is likely to cooperate with the u.k. passenger vehicle to manufacture an electric bus here in the u.k. let's talk about china and what this means for the rest of the world. david luben head of economic markets at citi is joining us. good morning. 6.9%. if you dig into the details, still slow when it comes to manufacturing, also foreign direct investment. i mean, you know, fixed asset, you name it. >> i think there are two main lessons from the data. the first is as you say, a sharp slowdown taking place in the industrial sector in china. 5.7 as you highlighted is the worst since february 2009 just at the height of the global financial crisis, but the other
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thing comes out of the data is the evidence that we see of a restructuring taking place in the chinese economy. this is something that chinese policy makers have been committing themselves to in the past couple of years, to increase the share in gdp that's worldwide services and consumption spending. the fact that the touristy sector accounted for over 90% of the gdp growth is an important side. >> here we are in the third quarter, 6.9%. they've outlined we're going to get to 7 in 2015. they haven't missed those gdp targets since at this naen min square. >> do you care about headline gdp anymore? >> it's important to put the gdp data in the context of all the other data we have to give us an idea of what's happening in china. i think for the rest of the
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world, the overall message that has been consistently delivered is that the period of rapid investment led chinese growth, which you can kind of date between 2002 and 2013, is totally there. that's irreversible in the chinese economy. that develops a nasty shock to other developing companies in emerging markets particularly for whom that period of rapid investment-led growth in china was a huge earlytive external shot. that's gone. it requires a big change in the growth model. >> who suffers? which other developing economies are suffering the most from this? >> well, the easiest way to kind of analyze that kind of vulnerability is to focus on commodity exporting countries, brazil, south africa, russia, all of which are either in recession or close to recession. and if you think that, you know, the two biggest kind of threats to emerging markets, financial and economic stability is
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coming, a, from china because of the slowdown and change in structure of the economy and, b, from the threat of higher u.s. interest rates over the next year or so, then you can really boil vulnerability down to countries that are commodity exporters but also have current account deficits because it's countries with current account deficits that are likely to suffer most when u.s. monetary policy tightens and therefore sucks capital. >> can i take this conversation in a different direction because, you know, in some ways the chinese economy has doubled in the last six years. 6% growth now, the catch on the chinese government has said it's the same to 10, 12% growth 10 years ago or 7 years ago. i'm just wondering how concerned are you that the chinese government is slowing down much worse than what the government expected and the impact globally? >> i think there is an endless debate about whether the gdp data properly reflect what's going on in the economy. i mean, i think this year there is a kind of suspicion for the
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first time, i think, that the gdp deflator is, you know, somewhat lower than it might be. i mean, that was true -- seemed to be true in the first quarter. it seems to be true dwat at that out today. the gdp deflator for q 3 was reported as minus .7%. we think it's probably closer to 1 1/2. so, you know, there is that weigh in toagelizing te inine i analyze data and don't just focus on gdp and that gives you proper reflection of what's really going on. i.e.,, there's a slowdown in an industrial reflector. >> david lubin, head of emerging markets and economics at citi. we have the chinese president xi jinping in town.
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the cme and china construction bank, ccb have signed a memorandum of understanding meaning that it will be the first time that off shore am futures contracts will be physically deliverable to london. the british capital has become the main site outside of asia. george osborne with the bboc on his recent trip last month to beijing. for more on the china story, head to our website where you can follow our live blog. this is real time analysis, market reaction. also more expert views for you. that's all on cnbc dotcom. right. lets vae a look at our other top story, deutsch bank. better controlled, lower cost and more focused bank. that is what ceo john grimes says he hopes to achieve after the radical overhaul of the bank's structure. he split it into two, global markets and another, the
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corporate and transaction banking operations. there will also be a new independent digital banking unit. other changes as well in terms of the head count. >> yeah, that's right. i think this has been kind of telustrated to the markets. you have a slashing of assets. a host of executives being shown the door and a host of new names being brought in to run new businesses as he seeks to distance the bank from the challenges associated with past misdemeanors and also poor performers. colin fan, stefan krause will be leaving. garth richie will head up the equities business. a woman will join for the first time on the executive board, sylvie matherat will become chief regulatory officer. the massive overhaul comes after
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deutsche bank warned of this close to 7 billion euro loss they will have to report in the third quarter. the bank due to unveil new details of a new five-year plan next week when it's also expected to announce thousands of job cuts. >> indeed. deutsche bank not the only one making changes. credit suisse will have changes this wednesday. reports say it could have cost cuts and sizeable capital cost plan. and it turns to numbers from barclays. november gets going with numbers from hsbc amid reports that it may not move its headquarters from the u.k. to hong kong. the third quarter scorecard, that comes the very next day when you see bill winters plans to slash staffing as it gravels with the emerging markets. we'll be talking more about what to expect with an annual flis a
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few minutes. susan, back to you. >> yeah, okay. let's tubing carolyn roth who has been watching deutsche bank and covering the bank for many years. carolyn, i feel like it's been telustrated to the markets. the former ceo said he was going to slash $171 billion in assets in trading. >> it's true, but that simply wasn't good enough for the market. so what we're seeing now is that john klein -- i hear that my mic has problems? >> indeed. let's have a look at the share price as well so far today. big changes, susan, that came out across that. not just the restructuring there but also the changes in the management. a lot of changes now such that five out of six of the main management of the previous team have gone up 3.5%. taken very well from the markets. >> also, you know, i want to
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point out that deutsche bank is separating the business of dealing with the institutional funding clients from private and retail wealth management which has kind of been what other banks have been doing as well since a lot of the misdemeanors go back to the trading, the institutional part of the bank. libor for instance. retail banking, like a lot of other banks, have actually been making a lot of money since in the u.s. people are taking out mortgages once again. carolyn, how do you see things? >> first of all, i have my microphone problem sorted. this was a bank that wants to simplify, that wants to become a lot more profit obl. john crine as opposed to jane can be the man who can deliver those changes. so as you eluded to before, we have already seen an announcement of a major strategy shift earlier this year. that was in april. it wasn't good enough. they didn't have the trust of regulators and investor. john cryan is the man on the job now. what we're seeing is that he's
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doing this drastic calling of the old guard, if you will. so anyone who had anything to do with that old strategy, with the old deutsche bank, that person has to go. so the strong message is anyone who thought that excessive risk taking was okay, that person is no longer at deutsche bank. but the big question is how many jobs are going to have to go? second question is, what's the precise scope, really, of the cost cutting. we know that 3 1/2 billion our rows have to be cut. but what stages are we going to see? most importantly, just how profitable will the bank be going forward and how do we get to that profitability? >> investment banking obviously being split up going forward, does that mean overall there's a proportion of the pie that investment banking will start to decline, do we think, or is there still a focus on investment banking but in a different way? >> what i think is really interesting is the fact that the trading business that has been separated from the transaction business and from the corporate
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finance desk, that potentially means there's been a little bit of speculation in the press over the weekend that maybe the trading business could be spun off. maybe if the regulatory capital that is needed to back these operations is excessively high, maybe this would be the easiest way to spin off that business. it's still a part of the business but we know this has caused a lot of problems for the bank. >> carolyn, thanks very much. coming up on the program on worldwide exchange, another day, another raid. vw is fighting fires on all front. we'll get you the analysis after this break. plus, amazon goes after the fakers. find out how they're going legal to preserve the integrity. burn, baby burn. "saturday night live" makes a bold prediction of the outcome of the presidential race. >> i'm been any sanders and come next november, i will be hillary clinton's vice president! can a business have a mind?
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welcome back. it was a nice little finish to end the trade last week with the s&p 500 after gains on thursday and friday managed to close out up 1/2 percent and the stoxx up
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1.43%. look at the individual markets. ftse 100 down a couple tenths of a percent. france up and italy up 0.7%. susan. >> in corporate news we have wincor nixdorf up. diebold's stock cash offer up. according to reports, the deal terms could be set to be finalized within the company fort night. speaking of ipo's, japan's biggest privatization in close to three decades has moved a step closer to completion. the bank and insurance divisions
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priced at the top end of the market range. this is part of a three-pronged ipo. the price of the parent company, japan host closings will take place on the 26th of october. basically splitting up the company into three different subsidiaries, post insurance and the parent company itself. >> ferrari has lined up the starter grid ahead of its eagerly anticipated ipo. speaking at an awards event in washington, the ceo said he was confident. we're pricing tomorrow? >> the books close tonight, pricing is expected tomorrow and listing tomorrow under the ticker race. very appropriate for the ferrari brand. they set it 48 upwards of $52 a share. that would give ferrari a $10 billion valuation. right in the ballpark of what the price their parent company
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ceo was looking for. back when the ipo plan was initially announced analysts suggested it might be in the neighborhood 56 to 7 billion. this is quite good news if they can get the upward target. there are other things to consider. the big part is to help fiat chrysler reduce the debt burden but in the ipo we're only talking about 10% of the company. earlier next year there are plans to offer 80%. the remaining 10% will stay within the ferrari family. a lot of excitement but some caution saying that the ipo market hasn't been very good. they say ferrari is bullet proof. >> they say 2007, 2008 they still sold 49er rar zblis there's a waiting list. they've always intentionally kept it around 7,000 units a
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year. now he's saying they can retain the exclusivity and increase it to 9,000 units to 10,000 units. >> one of those ipos that i feel we should have done deep dive research on. >> are you saying you haven't? >> real research. >> oh, you mean -- >> out, the actual product of the company. >> product testing? >> exactly. i don't know why that didn't happen. did you get to go? >> i have not. they're in new york. >> hyde park. 200 people came out. that was twice the number that they expected. there's a lot of interest to test drive, test the products. >> you likely will see ferraris lined up outside. let's check in on vw as well. we have shares in volkswagen trading lower today. this comes after the police raided the automaker's french headquarters as part of an ongoing investigation into the company's rigged diesel emissions test. it also took place at vw's
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lamborghini headquarters. they're part of a federal government investigation, nancy, so when you hear these headquarters, these offices continually being raided, doesn't set the stage for good pr. >> this is hitting home in how far this investigation stretches across europe but also how anxious people are awaiting the final results of the investigation that's being conducted because people want to know how many people will be held responsible and who actually knew about the defeat devices. there were some reports that there could have been several variations of the defeat device. if that is true we're talking about potentially more people involved in installing these. the lawsuits, we don't know the cost of the refittings. there are a lot of questions about what the costs will be. >> nancy, thank you very much for that. now the first of the rugby
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world cup finals kicks off on saturday. >> you were there. you were there. >> i was there for one of them, indeed, for the wales one. france was getting steam rolled by new zealand. nine tries, 62-13. a friend. time in disarray. >> 62-13? >> yeah, the favorites proving why, indeed, they are favorites. they absolutely destroyed it. here comes wales. they put in a spirited run against south africa. they secured a four-point victory. ireland sadly were outclassed by the argentina side. two of their tries were denied. ireland with the first trip to a
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world cup semi. the final game saw the nonhemisphere hopes, there was a late penalty from bernard foley. the semifinal lineup is all southern hemisphere for the first time in the history of competition. an epic weekend of rugby. they followed england's lead. they all did better than england. >> england led, i guess, the defeats. what a close game that was. >> stellar game. >> so your call? now that you've got the -- >> france. i think africa -- i think the winner of that semi-final will win. >> who will play in the finals? >> probably australia. the aussies probably. >> all right. so let's talk about banking once again. one of our top stories.
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dramatic disruptions at deutsche bank. the new boss breaks up the bank in a bid to boost business. the details coming up next. orri. orri. my company's entire network went down, and i was home in bed, unaware. but that would never happen. comcast business monitors my company's network 24 hours a day and calls and e-mails me if something, like this scary storm, takes it offline. so i can rest easy. what. you don't have a desk bed? don't be left in the dark. get proactive alerts 24/7. comcast business. built for business.
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6.9% but more than expected.
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xi jinping blaming growing pains. shares in deutsche bank are higher after ceo john cryan clears the deck to split the investment bank into two and show several key executives the door. sergio marchionni says he's confident in the price of the ipo. it's set to be between 48 and $52 a share. japan post sets a price for the bank and insurance ipos in a listing that creates a combined entity of $65 billion. good monday morning. let's check in on the european benchmarks and how they're performing on the first day of trading. a mixed picture for you with a ftse 100 falling by around .18%.
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the xetra dax and cac 40 and smi up. >> we see autos doing nicely. telecomes doing well. autos doing well despite volkswagen under performing. the worst performers, basic resources propping up the pile as you can see. only one other sector in the red, that's construction and materials. shares in deutsch bank are trading high this morning in a positive reaction to the announcement of a major structural review of the organization. john cryan says it will be split into two sectors. he has a reshuffle of the top management and new arrivals. chris skinner joins us at the desk. very good morning to you. >> good morning. >> thank you for joining us. let's touch on the deutsche bank
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restructure. is it perhaps more sweeping? >> no, if anything it's about on track. deutsche bank has been stagnating in terms of stagnating, not structuring fast enough. john cryan has come in and made a positive move to show that they can turn around the bank. they have to turn around the bank because it's, as i say, been flat lining for quite some time. >> if we look at the european banking spaces, a fair number of new ceos, a fair number of strategy reviews going on at the moment. who has the hardest job, barclays, credit suisse? >> i think to a large exsent it's a reflection of the last seven years. we've been through a massive soul searching since the crisis hit. everything is more optimistic. people are seeing growth back in the markets. the real challenge there is hsbc, barclays and the banks where there is a bit of restructuring to go on. if you think of ibs and lloyds,
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they've been going through that restructuring for a while. hsbc hasn't done a cost cutting. it's going through that process. bark class is from jpmorgan and they've had three years of the wrong chief executive. they have quite a bit of work on their hands. >> the wrong chief executive? >> anthony jenkins is not an investment banker. >> that's interesting. in some ways deutsche bank is going into retailing. the bank trading business might be siphoned off. isn't being boring in retail the way to go? >> not necessarily the way to go. it's far easier if you've had a career investment banking to pick up the retail operations because it's a consumer operation, easier to understand. if you look at the consumer side you try to understand commercial finance, trade finance and trade in advancing commodities. far more difficult than ever before. >> what about deutsch as a strategy of splitting up the
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institutional client funds with the retail banking, retail private banking. >> whether they're going to have a long-term viable investment banking structure. with the hiring from jpmorgan to barclays, they're saying we're going to bring back a strong investment bank. they couldn't do that when bob diamond left three years ago. that would have been the wrong thing to do according to media, pr, the fact that he had made such a mess of things. it's saying bring barclays back. one of the things about deutsch's restructuring is global restructuring and corporate finance is moving farther into the retail space. >> you said hsbc has a lot of cost cutting and restructuring to do. when you take valuation into account, is that something that you're attracted to at home? >> i am. they've been tarnished by the china slowdown. you just mentioned 6.9%.
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that's been reflected in hsbc share prices which has crashed 1/5. it's devalued. on a price to earnings ratio of 10, it's going to bounce back. really as you've seen the cost cutting kick here next year i think we'll see hsbc share price go up from 25 to 50%. >> if you touch on lloyds and rbs, they have done large amounts of their restructuring, government's ongoing sale of those shares, which of those two is more attractive? >> rbs and goldman sachs and morgan stanley is saying its price will double. i won't be quite as bullish. they have gone from being the largest world bank to being the largest u.k. bank. that's their strategy. >> right. let's talk about the u.s. banks. we're in the midst of earnings season, right? db news comes off and comes on the day when morgan stanley is going to report in a few hours' time. morgan stanley will go pretty much in line with gs and the
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other banks. jpm reporting tough times in their trading business. >> tough times in the u.s. banks. i don't expect to see any benefit from the governments. it's difficult trading times. not seeing the returns on the commodities, bonds and earnings we expect. >> since the u.s. retail banking exposure instead of investment banking exposure? >> to an extent. wells fargo is still outperforming. what you see is the u.s. markets, domestic markets are still very strong. global markets are weakening in uncertain uncertainty. trading a lot of difficulty. >> chris, thanks very much for joining us today. much appreciated. chris skinner, ceo of bilatra. >> let's talk about alley baba. the big a lobbying to stay off the u.s. trade black list which outlines notorious markets for counterfeit goods according to a
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reuters report. it was removed in 2011. the taubau company was taken off just recently. the public input process in september, the u.s. trade representative received complaints from at least three industry bodies about fake goods being sold on alibaba. meantime, amazon has set its sights on fake reviewers. the ecommerce group has filed a complaint in a seattle court accusing over 1,000 individuals of misleading customers by selling fake product reviews. this isn't the first time that amazon has taken legal action against the sort of deception. in april the company sued four firms which pay people to produce reviews that appear on its sites. amazon share price has been a stellar performer over the past 12 months. we are up some, wow, close to 90% over the past year. but how do other customer comments really influence your own decisions? join the conversation on
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"worldwide exchange." get in touch with us on e-mail or twitter @cnbc. do you listen for customer reviews, personal experiences or the critical acclaim that products and stuff get. is that something you pay attention to? >> i do. i'm actually quite shocked that people get paid for the reviews. >> you mean like traditional -- you mean consumers or traditional critics? >> there are review sites that get paid to post reviews. to me that's a little disappointing. how can you trust their opinion? you know, that's what all trip advisor is based on, right? the opinions of your fellow travelers. if that's being paid for that would be a little disturbing. >> yeah, i can agree with that. i think crucial to get down the sort of counter fit. >> you don't care what other people think? >> no, i think you might do it if it's expert opinion. i think generic people, this was great, this was bad.
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it's always a mix. >> i take the aggregate and look at the percentages. if 80% think this hotel's great, there must be something to it. >> well, i usually just go with my own experience and don't go back. >> i'm going to will for all my travel advice in the future. let's talk about "saturday night live." did you watch "saturday night live"? >> i didn't. i didn't. but i've seen the twitter following of what happened. >> yeah. so comedian larry david, love him, best known probably for his work on curb your enthusiasm. one of the founders of "seinfeld" is earning rave reviews for his spot on impersonation of bernie sanders, democratic presidential candidate. he did it on saturday night. >> we're doomed! we need a revolution. millions of people on the streets and we've got to do something and we've got to do it now!
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ah. i'm bernie sanders and come next november i will be hillary clinton's vice president! >> what do you think? >> it's a great -- it's a great impression. got a lot of attention. i have to say though, he's probably of all the other democratic candidates, which "saturday night live" did a full sketch on, he's probably the easiest to impersonate, don't you think? >> no. jim webb was played by alec baldwin. >> he was great. >> jim webb i think would have been easier. because it's alec baldwin, you just turn it on. chaffee was also impersonated. how much do you love hillary? i love the impersonation of hillary. larry david stole the limelight on saturday. >> interesting other things coming out of the weekend about who's winning the money race. bernie sanders has raised almost as much as hillary clinton which is quite impressive, 26348.
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>> -- >> 26 million. >> that's pretty standout. jeb bush who was way ahead. bed karen is a new candidate we've just invented there. i need to update that. my apologies. >> i hear he's a great neurosurgeon. >> what's a weekend without talking about the donald though? >> absolutely right. let's talk about donald trump and jeb bush continue to spar over whether bush's brother, former president george w. bush, carry some blame for the 9/11 attacks. nbc's kristen welker reports. >> reporter: the war of words between donald trump and jeb bush is heating up today. trump, using 9/11 and the former president george w. bush to again jab at jeb. >> i don't want jeb bush to say my brother kept us safe because september 11th was one of the worst days in the history of this country.
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>> look, my brother responded to a crisis and he did it as you would hope a president would do. united the country. >> reporter: the fight got started friday when trump threw the first punch. >> when you talk about george bush, i mean, say what you want, the world trade center came down during his time. >> hold on. you can't blame george bush for that. >> he was president, okay? don't blame him or don't blame him but he was president. >> reporter: today the front-runners seemed to double down arguing his immigration policies would have prevented the attack. >> i believe that if i were running things i doubt those families would have -- i doubt that those people would have been in the country. >> reporter: but bush hit back. >> looks as though he's an actor playing the role as a candidate. mr. trump talks about things as though he's still on "the apprentice." >> reporter: trump wanted the last word tweeting jeb, why did your brother attack and destabilize the middle east by attacking iraq where there were
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no weapons of mass destruction. trump still leads but dr. ben carson is catching up. trump gets 24% of republican primary voters while carson gets 23. so will trump's comments about september 11th be the controversy that resonates? >> he can say things that would get any other politician or a regular politician in a lot of trouble and yet it doesn't seem to affect him. >> reporter: meanwhile, for democrats and front-runner hillary clinton, it's a waiting game to see if vice president joe biden will enter the race. saturday night biden accepted a human rights award in new york where he made no mention of the topic on everyone's mind, even as some audience members shouted, run, joe, run. biden did raise his late son beau who had urged him to run for president. >> as my son beau used to say, just keep moving forward. >> reporter: tonight he headed to mass in delaware perhaps looking for guidance.
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there have been a number of signs that biden is leaning towards yes. he's reaching out to key constituents, organizers and union leaders to assess his level of support. sources close to him say a decision is imminent. if he wants to get in, he has to announce soon. big ben needs 40 million pounds to keep it ticking like clockwork by the commerce committee. the great clock of westminster is in need of serious repairs. the cfc has set out a plan to fix it while a full refurbishment would cost 40 million pounds. expected down time would be 4 months. that would be the longest stoppage in over the 150 year history. >> wow. >> unbelievably expensive to fix a clocks. >> 40 million pounds. since the u.k., the budget deficit is 3%, which is smaller, compared to what they've experienced over the years. do they have 40 million pounds
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on an iconic part of the sclien? >> i'm not sure a lot of people will think 40 million pounds can be better spent. i'd like to see it spent. >> that will be ridiculous. that will be like the eiffel tower not getting a refurbishment. >> exactly. but there are still priorities. >> i don't know. i say spend it. spend the 40 million pounds. come on. still to come on the program, looking at the north sea. they'll be facing a fresh round of job cuts but is it all doom and gloom for the oil majors. bob deli doesn't think so. see what exactly bob deli is thinking. well, right now you can get 15 gigs for the price of 10. that's 5 extra gigs for the same price. so five more gigs for the same price? yea, allow me to demonstrate. you like that pretzel? yea.
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crude hasn't been helped by the iranian oil ministry. he doesn't expect a change. oil industry experts are predicting another 10,000 jobs will be lost in the north sea as they're struggling to recover according to a report from the financial times. since last year 50% have been
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cut. they expect the figures to triple. there's been another big casual at this because of the oil price slump this morning. shares in vienna based omv group in the red after the energy giant says it's taking a 1 billion euro charge in the third quarter. the austrian group says lower oil prices, quote, significantly burden its performance in the quarter and added that it has revised down its prices. it sees brent crude at $65 a barrel. average $70 a barrel they say in 2017. now steve sedgwick attended the oil and gas climate initiative in paris where he spoke to the heads of pg group and eni and asked them what the lower prices were having on management strategies and future projects? >> i think in the current circumstances i think industry has to look for any sort of opportunity to run their companies more ee fish ebfficie.
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that's through self-help to become more efficient. i think the companies will assess asset portfolios and i think from time to time you will see company transactions. >> what is the appetite to invest? we heard from mark carney talking about huge potential losses for investors if there is cohesive action on climate change be as well. we've got a low oil price at the moment. people are cutting back a fwres civilly. do you feel there is going to be an investment draw the? >> the constant strap on gas has been there for decades, decades, decades. i think that the industry today is evidence of that. we'll adapt also to new climate regulations so that we are not wasting capital to projects that are not too sustainable over the long time. >> the high price oil price means more capital to invest also in the diversification of our investment. also in our case, we are a huge
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amount of investment in gas project. they are not all linked. it may be on the outside of the oil but they don't have their down side. i think you have to consider a scenario contest that is more compressed than what you can think looking at the oil price only. >> steve also spoke with the ceos of bp and total of how the current price environment is affecting industry's investment gaps. >> the fact that prices rose higher is back to the behavior of consumers. that's part of the problem. we are producing energy. we are offering energy to give affordable energy for most people. the behavior of people has to be controlled. we are part of the solution so i'm convinced that we need
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strategy. >> people say with the price of oil it's not going to occur renewables, but you look at what's happening around the world which is very good for the initiative. subsidies are taking off for petroleum products all over the world. india's made some big steps. it's not all bad news. >> this morning total announced the sale of a further 15% interest in the crop field in the norwegian north sea. it's part of the ongoing sale of assets. in august they sold $900 million worth of north sea assets. the shares of metro group are trading higher after confirming full year profit guidance. the german food maker reported fourth quarter sales down 1.1% for the year which is pretty much in line with market forecasts. it said it's in the market to make acquisitions. that follows the sale of its
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department store chain which brought in a bigger than expected net cash inflow. >> danone reported a 4.6% increase. shares are up 2.2%. they received an 11% revenue boost. it says it's on track to reach full year revenue and profit targets. the ceo of air france klm says the job cuts that it has proposed for 2017 could be negotiable in a sign that the carrier might be scaling back on its controversial plans. db liking the news, deutsche bank raising the target price to 6.70 euros apiece. let's bring in stefan pedrosi. what's with the change of heart? >> france is still feeling the job cuts next year. we are talking about 1,000 job cuts. the ceo believes that the most painful part of the plan can still be avoided as the legalization resumes two weeks
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ago with the main union of fighters. speaking yesterday to rpm, the ceo says that the most painful part of the plan could be avoided if they erase it by the end of this year. this would put the strategy plan, the original one, back on track. 2020 france resumed it after announcing almost 3,000 job cuts and reduction of 10% of its long hold network according to analysts, the rate structuring plan was not addressing the key issue as air france had, which is the lack of the documents. the pilots include costs on average 20% more than -- 25% more than the european colleagues. they are also worth 22% less. this is something air france
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needs. >> airlines around the world, not just in france, are experiencing problems. thank you so much, stefan. let's talk about u.s. drone operators. they will have to register their aircraft to be announced later on today. anthony fox and the head of the faa will share details during an announcement at the department of transportation. nbc news understands the plan will require anyone buying the unmanned aircraft to register the device with the d.o.t. it stems from concerns over recent close calls between drones and commercial airliners. let's check in on u.s. futures and how they are staging the open for this monday as we are kicking off a new week here. coming off three streets of gains across wall street. s&p 500 the implied open, looking for a flat start, down 1/3 of 1%. dow jones industrials, a loss of 20%. the nasdaq has gains of 6 points
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or so. let's have a look at european trade which is in positive territory. ftse 100 just about flat. germany is up 0.7. it follows a just positive week, thursday and friday. positive trade in europe and that took us into the green late friday. started off at least in a positive fashion. let's quickly check in on asian trade where we're looking at mixed performance off the back of chinese trade earlier today. we've got that gdp number coming at 6.9, better than expected. various industrial indicators was worse than expected. a mixed picture in market influences. you can see the shanghai, shenzhen and hang seng flat. >> you know, we're going to talk about amazon a lot today because
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amazon has set its sights on fake reviewers. yeah. there's such a thing. the ecommerce group has filed a complaint in a seattle court accusing over 1,000 individuals misleading customers by selling fake product reviews. this isn't the first time that amazon has taken legal action against this sort of deception. in april the company sued four firms which paid people to produce reviews. our question to you is what do you think of the story and fake reviews? >> get in touch with us worldwide @cnbc.com. we'll be picking up with that. >> china gdp. stay with us.
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good monday morning. welcome to "worldwide exchange." >> it's not 7%, but it's better than expected. chinese growth slowing to a six-year low with premiere and president xi jinping blaming growing pains as he prepares for his first state visit to the u.k. shares in deutsche bank higher after ceo john cryan clears the decks with a radical plan to split it in two and shows executes

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