tv Worldwide Exchange CNBC October 20, 2015 4:00am-5:01am EDT
a very good morning to you. welcome to worldwide exchange. i'm wilfred frost. >> i'm susan li live from buckingham palace. >> i'm louisa. these are your headlines from around the world. >> european stocks trade in the green. >> disappointing revenues sending shares lower after hours. >> chinese president on his first state visit to the u.k. where billions of pounds of
contracts are set to be signed. >> a big drop in watch exports to china. data shows the 6th month of declines. >> and canadian prime minister re-signs after suffering an election defeat to the liberal party delivering the country's first liberal leader in nearly a decade. >> we beat fear with hope. we beat cynicism with hope. we have a positive vision that brings canadians together. welcome to the show. let's get straight to european markets. yesterday we got out a little bit of a gain for continental europe although the ftse 100 was down and today it's a lackluster open with slight gains for some of the markets. ftse 100 up 0.2% and germany up
0.15 and france and italy both broadly flat. >> yeah, so a flat start this morning. a flat close last night when we were saying good-bye to the market trade. when looking at the u.s. markets and just seeing the indications and what we're seeing ourselves up for still a number of hours to go. but flat to slightly higher markets. we have had big names through reporting numbers. let's talk about one of them. imb came through falling in the region of 5% in after hours trade after the world's largest tech services company showed us a bigger than anticipated drop in their revenue. they did beat on an earnings per share revenue but that's not all that great and they cut their profit forecast. weakness scene in china and emerging markets as well. keep in mind this is the 14th quarter in a row that we've seen weaker revenue from ibm. they have been getting rid of
their lower margin businesses as well so they're trying to reposition themselves and especially when looking toward where the business is going. the business is going toward cloud computing and cloud storage. josh filed this report. take a listen. >> another quarter of falling revenue. that's what ibm just delivered to the street. reporting earnings per share of 334 on rev muy of $19.3 billion and that was a drop on the top line of 14%. looking ahead, ibm also lowered it's full year eps estimate to a range of 1475 to 1575 and expects free cash flow to be relatively flat. now moving through the major lines of business, one number that stood out to analysts, 5.1 billion. that's what ibm reported for its software revenue. a drop of 10% compared with the 3rd quarter of last year. analysts had been looking there for 5.2 billion. the bigger point here is that imb continues to have real
challenges adapting to this new era of corporate computing. ibm is putting a lot of time and money to work in building out it's portfolio shifting billions into it's cloud analytics mobile, social and security businesses. in fact, ibm said total cloud revenues jumped more than 45% year to date and 9.4 billion over trailing 12 months but investors remain skeptical ibm can move quickly enough. they're on track for the third straight year of declines. for cnbc, josh lipton in san francisco. >> yeah, so josh is giving us the details on imb. they're really moving. they have to move in the cloud storage, cloud computing. otherwise they'll be left by the wayside. >> absolutely. they've got this big transition in play for awhile and some people critical that it's taken too long. clearly there were struggles here. this disappointed the shares
today. highlighted by what you said at the top 14th quarter in a row. clearly this is a trend for the company that's been going for quite sometime and i'm not sure this is necessarily one that we should extrapolate out of for earnings season as a whole. >> absolutely. i mean, you say it's been disappointing but maybe not as disappointing as what some of the bears out there had been forecasting heading into earnings season and also looking at sap for example they're saying that they could please and out perform there but we still have how many weeks to go. >> this is a stocks specific stuff. so they're doing well in the area where they're suffering. morgan stanley disappointed in the banks as awhole aparts from wells fargo. most of the big banks are suffering and maybe not as bad
as some of the bears but these are on lowered expectations so i think relatively lackluster so far and we continue to watch as the other names come out this week. >> the banks will be an interesting one for next year. whether or not we see consolidation in europe and the next couple of years. the barclays ceo calling for consolidation or the investment banking parts of them. >> and there's so much change as well, as we all know. leadership and reviews and various european banks and more of those coming from credit suisse. >> thanks for getting me breakfast by the way this morning. i get up nice and early. >> well, i'm going to buy you a celebratory champagne lunch. >> good. >> the red carpet is being rolled out in the u. k. this week for the first official state visit of a chinese leader in ten years. president xi jinping and his
wife touched down in london last night and the pomp and ceremony gets underway today with a welcome. the couple is staying at buckingham palace with the queen who will be laying on a state banquet this evening. president xi is set to deliver a speech at the dinner as well as the house of commons this afternoon. tomorrow a meeting with the duke and duchess of cambridge is likely to steal the headlines. it will be a main focus of a visit to mansion house in the heart of the city. they'll meet with the u.k. prime minister and his wife. the chinese president asked for a traditional meal of fish and chips. i didn't know that. >> no, i have no idea. >> it should have been roast beef though. >> is that what you would ask for? >> no, it would be roast beef. but if he has asked for that -- >> what are the really big puffy potatoes called. >> well not roast potatoes.
>> yes. >> you don't know what they're called. how long have you lived here for? >> only 15 years. i just ask for puffy potatoes. >> but they're breathtakingly good. the state visit ends with a trip to manchester where xi will visit the football stadium and development complex in and around the stadium. susan is outside buckingham palace for us. susan, what can we expect? >> just for the record, fried potatoes are not just the u.k. thing. they fry potatoes in america, canada, and in china mind you. but that's a global delicacy. but the chinese president is here to enjoy his fish and chips, his roast and he'll be doing that at buckingham palace for much of the visit in london. we're awaiting his carriage ride where he will be staying for the rest of his trip. this morning they'll be escorted
by prince charles to buckingham palace. all the trade deals really. less about politics and more about investment and boosting ties in this golden era of relations between the u.k. and china but how much does the u. k. and the uk. public welcome the chinese and the chinese president? let's talk to the leading opinion pollsters out there. we're joined right here outside buckingham palace and lovely building isn't it? >> it sure is. >> we're talking about how comfortable it is. but anyways, freddie, so you tell me, what does the public think about china. >> we carried out a survey of people's general attitudes to china and the relationship. what's remarkable is that people are very pragmatic. they accept that china is a big economic power. they believe that power is going to increase. we asked people to think what's the world going to look like in 20 years time? the majority think that china will replace the eu as the
largest trading partner for the u. k. there's a bullish sense that china is on the up and that market wobble over the summer has not come through to the population at large. >> people have been making this comparison about how the u.k. public feel about china as well as the u.s. public. yes there was champagne and smiles but overall wouldn't you say the u.s. public is more wary of china than the u.k.? >> definitely. >> there's a sense of competition and uneasiness about rival super power which is the british public has gone over over the previous decades. >> why is that? >> the british public had the whole second half of the 20th century to get used to the idea that they're not the leading super power anymore. they accept we're a trading nation. we need to be dealing with a rising economy. so there's a lot of support out there for this kind of trading partnership when you look at the big picture. when you start digging into some
of the more specific questions people are much more nuisanced. >> and i assume they're over say human rights, right? we're seeing mostly a pro china crowd right now outside buckingham palace. >> for example, on the human rights question, people think that it should be raised. i think 71% of people do believe that the prime minister should raise it but they're happy for it to happen behind closed doors which seems to be the approach that the government is going for. so roughly the same percentage thinks raise it with the delegation and the president but no need to make a big speech about it at a public occasion if that's going to be insensitive. >> but how does the u.k. public feel about china and the chinese coming in to say push them out of property bids and property deals? you know, it's so expensive now living in london because of the money coming from foreign countries like china. >> well, the property crisis question, this is classic politics where one group wants
prices to go up, that's the people that have them and the other group want prices to go down. so at the moment we have a ervansve government. the group that votes conservative more are the group with property and of course older people and they tend to vote more. this is real devicive politics about house prices. >> now, i don't know but if you're getting closer to china is the u.k. and the u.k. people okay with getting further away from the u.s.? >> i don't feel it's a zero sum game like that. we don't get that sense. the big power block that is talked about at the moment is the european union. they are geographically close to us and with the on going discussions about the referendum there's a lot of talk about how close we should be to europe. there's a lot of affection for the united states. i wouldn't say there's the same affection for china but a practical sense that they are the growing super power.
we're a trading nation. we're an island nation. we should be doing business with them. >> thank you for joining us today. we're going to get you so much more from buckingham palace as we wait for the carriage ride down the streets here and by the way just the area around buckingham palace has been shut off from 9:00 a.m. to 2:00 p.m. so we should expect xi jinping and the first lady sometime in that time area. back to you guys. >> thank you very much for that. >> now the slow down in china and the strong swiss franc are weighing on switzerland's top exporters. swatch group is trading lower. exports tell 9.9% on an annual basis to 1.8 billion swis swiss francs in real terms. china and hong kong recorded steep declines. last year they accounted for a quarter of swiss watch exports. >> well, coming up here on the
show, the force awakens but the site shuts down. find out how the new star wars film is breaking the internet. we'll be talking about that. i've got some facts for you as well. plus another day, another drama. how fat finger error almost cost $6 billion. and time to pay up, we learn more about the mega tax bills facing starbucks and fiat. you're watching worldwide exchange. good morning, everybody. hi watson. annabelle, your birthday is tomorrow. i'm turning seven. what did you ask for? a princess. and a pony. you like things that begin with p. i like pink frosting too. will you have a cake? yeah. i was too sick to have one last year. the data your doctor shared shows you are healthy. are you a doctor? no. i help doctors identify cancer treatments. i want to be a doctor someday. i can help with that too.
welcome back to worldwide exchange. canada's prime minister is re-signing after his party lost power in the elections. he held office for almost a decade. canada's liberal party won a shock victory in these elections gaining enough seats to form a majority government. the new leader says that the liberals owe their victory to their inclusive campaign message. >> there are a thousand stories i can share with you about this remarkable campaign but i want you to think about one in particular last week, she practices the muslim faith and
she made her way through the crowd and handed me her infant daughter. and as she leaned forward she said something that i will never forget. she said she's voting for us because she wants to make sure that her little girl has the right to make her own choices in life and that her government will protect those rights. >> well, the canadian dollar fell against the u.s. dollar after the liberal election victory was announced but the moves were relatively small. the canadian dollar fence regained and relatively flat in trade in the dollar. andrew is the global head and joins us. good morning, andrew. >> the fast ft take on the canadian elections yesterday, the very top line was meh. and we were looking at a meh
reaction in the canadian dollar dloo on the back of this win. >> bearing in mind that the market is focused on events. there was next to no premium at all. you've seen a little bit of a move as they say. >> he's committed. he's happy to move that lots of other governments around the world are warning against because of the potential pressure on their currency. is it disproving that fear? >> not really. what they're doing is telling you that the market is going to start looking at fundamentals against. canada, big oil commodity type trade so that's probably why you have seen a little bit in the move this morning. >> it's still very much commodity link and trade is on the table still. >> all of the above.
>> let's move on and talk about china. and the visit to london. is them suffering r&b bonds in london a very serious endorsement that george osborne is going to be the city of choice? the western partner of choice for china? or is it a small step? >> it's a big deal. everyone is eluding to that. china is driving a lot of moves at the moment. so that's one thing and then china and growth and how the markets react into that is another for sure. >> we talk a lot about what the fed is doing. the ecb and the notion of whether or not we'll see more quantitative easing. speculation at this point. do we keep a short dollar or short euro position here in europe figuring that quantitative easing is going to be extended and figuring that
the fed is going to hike before this happens? >> it's not a question of if but when. the growth figures will fail to reach their targets. so you have to take a short euro view. in the short-term the market is focused this week so you might get a slightly better entry level so the view is to have a short position and then potentially add all eyes will be on what he says. they're not going to move but if the market views he moves in december he needs to give some indication that he'll be dovish. >> bank of japan rumored to extend their qe. i'd rather focus on china. is the pboc the central bank we should all be watching? if they decided to loosen policy further regardless of what it means long-term for their economy they have the most ammunition to do so. do you think we'll see much more severe devaluations than we have already seen? >> i think you will but not in the way we saw it in august obviously. if you look at the market reaction i don't think even they expected that.
they don't need that sort of global reaction. >> thank you for joining us today. much appreciated. global head of g-10 options flows. uni credit is trading higher as it mulls the sales of operations in europe. this according to austrian media but no decision has been made yet. a key contract for the vienna arm which controlled much of its cee business is set to expire last month. the italian bank ceo announced a major overhaul to rebuild revenues. >> they have declined to comment to cnbc after reports it will pay a billion dollar settlement to u.s. authorities. stefen is in paris with more of this. talk us through the details. how important is this? >> first of all, the timing, i
spoke this morning to a source close to the negotiations and the announcement is likely to come later today. it will be announced by the u.s. authorities and not by the french bank. according to media reports they're going to pay $787 million to settle a criminal case in the united states. they're accused of violating sanctions by moving money through the u.s. financial systems between 2003 and 2008. they also agreed on a different prosecution agreement which means they would face a closer monitoring in the united states for a limited period of time but it would not have to plead guilty unlike what they had to do last year. they declined to comment on a report that it was closed to a deal with the u. s. authorities and that a global resolution should be reached by the end of
this year. if the amount is confirmed that would be great news for the french bank because the market speculation was closer to $900 million. not 787 and the bank has set aside $1.6 billion to settle it's litigation cases including this one in the united states. that's explains why the market reaction is rather positive today. >> stefen, thank you very much for that. now a fat finger mistake meant deutsche bank paid $6 billion to a u.s. hedge fund client. the money was returned the next day but the fx desk blunder carried out by a junior employee raises questions about the bank's ability to manage certain trading risks. let's have a look at share price action. it's off 1.5% today. now off the back of this, we want to ask you, what's the worst mistake you have ever made at work? e-mail us email@example.com or
via twitter @cnbcwex. i have to say, when i used to be in investment management it used toer the identify me the idea of doing this type of thing. you always meticulously try to look over it but we said in the read there it questions risk controls internally but i don't think there's ever anything you can actually do to stop someone typing in the wrong detail. there's checks and there's checks but that can just happen. >> this was a junior guy. his boss was on holiday and he processed a gross figure instead of the net value that resulted in the trade having too many zeros. but billion, billion, not even like million. >> it was returned the following day. i would be like well, make them sweat a little bit. >> wait three days. >> over the weekend. >> i'm just joking. but i'm just saying like they could have made them sweat a bit. >> the worst mistake for me, i just started working at the board of trade as a runner and this was way back when
everything wasn't electronic, right? and nobody had explained to me that something is at market value that it has to be like immediate. like run. so i got this order. waltzed out as you do and gave it to the guy and came back and just lost a whole bunch of money basically. because i walked out. nobody told me, right. >> so it's not your fault then. so it's all right. >> i felt horrible. it was gut wrenching. first week or whatever and luckily my boss was like well you didn't realize. >> thankfully i never make any heavy trading errors when i used to do that job which was lucky but the worst one has to be is when you send an e-mail to most people rather than one person. you hit reply all by mistake. and you notice and die inside a little bit. >> yeah. >> get your views into us firstname.lastname@example.org. >> what was the question.
>> worst mistake you ever made to work. >> yeah. well, shares in actelion trading close to the stoxx 600. following a new drug to treat pulmonary hypertension. the ceo outlined why he's still cautious about acquisitions as a growth strategy. >> there's nothing worse than to do an acquisition for defense. it's stupid. it would be stupid because it would not defend us for number one and if it would not be justified by an operational business matter it would put us in a bad situation. this is why i can only tell you that we are very prudent and careful and every day looking if we can do a good business acquisition. >> well, still to come here on worldwide exchange.
u.s. futures point lower after ibm slashes it's profit forecast. >> chinese president xi jinping arrives in london for his first visit. >> a big drop in watch exports to china hit as they show the 6th month of declines. >> and steven harper re-signs delivering the country's first new leader in almost a decade. >> we beat fear with hope. we beat cynicism with hard work. we beat negative politics with a positive vision that brings canadians together. >> let's have a look at european trade and we're just above flat
or we softened in the last 20 minutes or so. we're now in the red having opened slightly positive for the day. we're now looking at the ftse 100 down 0.35%. germany, france, italy, all down a little bit more than that at the moment. so perhaps marking a change in sentiment of october which thus far has been very positive. >> well, listen when i drove by buckingham palace this morning, very early, a whole bunch of people already gathered outside waiting for president xi jinping. he arrived in london. this is the first time a chinese president paid a state visit to the u.k. over the last ten years. u.k. chancellor george osborne visited china last month and laid out some of the british projects that the u.k. trade delegation are seeking. that includes a 400 million pound gas storage site. the planned railway between london and the north estimated
in the region of 70 to 80 billion pounds and there's also the orbital road in leads and a piece of the science park in chesshire. susan joins us once again. good to see you. if viewers are just joining us. if they're just waking up, why is today so important? >> why is today so important? well, let's see. we have the second largest economy in the world, the leader of the second largest economy in the world here in the u.k. he is expected to sign lots and lots of deals. billions and billions of dollars have being thrown around. i'll forgive you for not picking me up and giving me a ride out here this morning but the numbers trickled in. thousands now awaiting the horse drawn car rage with the chinese president xi jinping inside and the first lady as they arrive for lunch with the queen and
then stay here for the rest of their london tour but yes it's mostly about business as politics as any controversial topics surrounding politics will probably play a very small role in this visit. it's all about the big deals. we're expecting a hundred of them to be signed. that includes a nuclear project. also we're expecting them to be included in this and london is said to be the pinnacle of it. that involves a lot of money. also we're hearing that maybe the exchanges will have some sort of cooperative agreement so they can clear these trades in the future but technology is also going to play front and center. last night there was a closed door discussion. alibaba's founder is here. he has been put on a special advisory board for david cameron, the u.k. prime minister and both of them held this
special dinner with a lot of tech titans in town and one of those in attendance is our next guest. we have duncan clark which consults a lot of big names. thanks for joining us out here. it's hard to get through to buckingham palace this morning but what did you learn last night? >> there's an open door to china, to the u.k. in every sector. the prime minister mentioned that even the nuclear thing is on the table. britain needs investment and it wants to be the leading recipient of chinese investment in europe which it is. it wants to dramatically boost it's own exports to china. it was a very welcoming message which is anything is possible. other discussions will be talked about by the politicians but this is a trade and investment focus. >> i think he features very prominently today because he's put on this special advisory group. a chinese internet tycoon.
you're close to him because you consulted him before alibaba became this. what are they trying to do in the u.k.? >> he said chinese companies don't need help from alibaba to export. but what they're trying to do is recruit brands in europe, in the u.s., and elsewhere to help them sell into china. china is shifting from a made in china model to a bought in china model. the chinese middle class is going from 300 million today to half a billion. so that's three times the u.s. middle class spending power. so it's all about that and the prime minister talked about this too. this is a reality check. >> what about this courtship that the u.k. is pursuing of china? it's in contrast to what you're getting in the u.s. xi jinping went to the united states last month on a state visit there. i would say the u.k. state visit much friendlier and warmer.
>> we don't have the pope visiting. but i think there is actually a more receptive audience and this is not new in a way. they're a major player in the u.k. the u. k. intelligent services actually test their equipment. in the u.s. there's a whispering game to never buy from them. so companies were excluded completely. so there's a lot of critics in washington about what london is doing but there's critics here also about what washington has done on the asia infrastructure bank. u.k. was the first european member to join that. >> yeah. >> so i think it's between the two but the u. k. is a trading economy. >> pragmatic. >> pragmatic would be a polite way. london, i think of hon don as the second moon that circulates the planet. people from all around the world live and invest here. there's 130 chinese students in the u.k.
the u.k. is a smaller population so there's a high concentration of chinese investment and people coming into u.k. universities. >> technology is your forte. let me ask you about cyber hacking. that was one of the major sticking points visiting the u.s. here in the u.k. not so much. >> no. some multinationals have also allegedly been hacked. if you talked to multinational ceos they say their systems are being assaulted every day from all over the world. china is a part of that. some people use the chinese networks to attack. use the internet in china to attack these multinationals so i don't think it's as much of a bilateral issue as it is in the u.s. we have an intelligence community alert to this. some say they're being naive and others say pragmatic. the approach here is test. work with the chinese vendors for example to test that there's no back doors. >> since you sit on the door at
the china britain business council. i'm just wondering is there criticism because some are saying that the u.k. is pursuing economic interests at the cost of i guess moral hazard in some ways. they're pushing aside these issues about human rights and not pursuing them and talking about trade deals instead. do you think that's a fair criticism? >> well, the argument from the government standpoint is they're actually having those discussions but not doing it in such a way that they will break down. it's an important debate to have about what is the right balance. from the u.k. standpoint the idea is engaging with the rising power and making them part of international system and becoming part of their international world view is a better way to go than excluding them. frankly there's going to be more issues that crop up in the coming five or ten years from now but the u.k. has always been more of an open trading economy so that filters into poll sinchts okay. duncan, thank you for joining
us. we also have the u.k. china piz summit taking place tomorrow as well. that should be interesting with a lot of corporate ceos from both countries in attendance. on that note back to you guys in studio. >> great to see you. we'll be checking back with susan in a bit and as london plays host to president xi jinping one of china's biggest corporates is looking to the u. k. as the portal for european expansion plans. find out how alibaba is with it's european growth strategy. >> the japanese government announced plans to make major cuts to import tariffs as part of the transpacific partnership agreement. let's get out to the nikkei with more on the story. >> yes. japan will scrap tariffs on 95% of imported products. the japanese government announced the details of
measures to be taken under the deal which reached broad agreement two weeks ago. it will eliminate tariffs on 95% of the 9,000 items covered by the agreement which is the highest rate among all free trade agreements signed in the past but the number is low compared with the 11 nations that agreed to remove tariffs on 99 to 100% of the listed products. a break down shows that all factory made imports to japan will become tariff free. among agriculture product which is had been the sticking point only 81% of the items are to have tariffs removed which is also the lowest among member nations and tariffs will be eliminated in general but key items such as rice, meats and dairy products have been excluded from the list. meanwhile tariffs on japanese exports will be scrapped immediately for 87% of all industrial products and will eventually reach 99.9%. even so, there's still deep
concern over the agreement. especially in the agriculture sector and japan's economy minister stressed in a press n conference today that sufficient protection was given to poor agriculture products. >> thank you for that. now switching focus, star wars fans rushing to buy tickets for the newest film overwhelmed ticket websites around the world. u.s. tickets did not go on sale until the latest trailer day debuted. they were able to sell tickets earlier in the day and all reported technical difficulties. fandango and movie tickets.com both reported issues once tickets became available in the states. this film is not coming out until december. one trailer was released and tickets went on sale and various sites around the world crash. it shows the power of the
franchise. >> maybe the film isn't halfway done yet. >> if it's coming out in december it must be kind of close. >> i figure that much. listen i found fantastic facts as we're looking at these pictures. the now legendary sound designer got his start on star wars fresh out of film school and then they had him come up with an entirely new organic soundscape which was in the middle of when everything was supposed to be electronic or futuristic. the first sound effect he created was chewbacca's voice. so guess what the sounds were? i'll give you a hint. animals. what do you think is in his voice? >> probably a polar bear or something. >> what did you say adam in my ear. >> ewok. >> what's the answer? >> the answer is bear.
close. lion. walrus. a good walrus thrown in there. and badger localizations. >> there you go. >> there you go. >> that is pretty amazing. >> isn't is it. >> r2d2's voice -- >> you're more of a star wars fan than i am. >> i haven't watched a single movie. >> but you know all of these characters pretty well. >> well i have a brother and you play barbie and star wars together, right? but r2d2's voice was made using loops matched with beeps and bops modelled after baby coo performed by burt himself. >> they're fascinating bits of information. >> i have more. guess how they recorded
darth vadar's breathing? >> they came around to my house when i had an infamous hang over. >> is that how you sound when you sleep? they put a microphone inside a regulator on a scuba tank. so you just think scuba. >> exactly. there we go. i'll have to see this film now. i'm not a massive star wars fan but i think i'm going to watch this one now. got to. >> but you played with the figures and stuff like that. >> not really. never one for that. i'm also more excited by a film that comes out next week as well. >> which is what? >> james bond. we talked about james bond. >> that's the english in you. >> absolutely. >> i'm going to watch star wars. >> i'll go watch it too. december. right, still to come here on the show, a decade in the making. reports say china could be set for a hefty stake in the u.k.'s first new nuclear power plant in 20 years. we'll discuss that after the break.
multiple media reports suggest beijing and the bosses of edf which is building and leading the project signed the pack ahead of the chinese president's visit to the u.k. the investment is seen as the commercial centerpiece of the trip and is expected to be announced tomorrow. they could deliver 7%. joining us to discuss this is david, a professor. great to have you with us. a very good morning to you. but before we get specifically to this deal, is nuclear the right choice for the u.k.? is it a sensible option? however they're funded? >> so it's very exciting hast happening with china at the moment. the deals between china and the u.k. the question about the nuclear deal is its a very significant long-term commitment. it's 45 years, ten years to build it and then 35 years when the u.k. bill payer sort of agrees a fixed price for the
nuclear. so the question is, is it an expensive deal? nuclear does give us low carbon energy and that helps toward sustainability issues and we need to replace the old ones we have at the moment but it is an expensive deal. >> let's talk about that price. the operators are guaranteed a price of roughly double what the current price is today. is that normal to have that level of guarentee or is it far and beyond what you might expect? >> so the issue at the moment is there hasn't been much investment in the energy infrastructure for several decades so they needed to encourage people to invest some of the big sums of money that are needed. so that's why we have this rather unusual situation at the moment where the government is
offering these fixed price deals that says we will guarentee a price for a long time so that you can invest here in the u. k. >> i remember a number of years ago there was speculation about china taking stakes in mobile operators globally and the come back was no we can't have that for security reasons and i'm quite surprised that now it seems that a lot of the thinking has changed where we're inviting china in to take a 33% stake in u.k. energy. has there been a change of the way we view china and doing deals with china? >> it's quite exciting. you look at the deals across the board. financial sector, trading here in london. i work at university where we have a lot of really great chinese students who study with us. i'm off teaching in shanghai next month. so you do see a change where china is now moving on from its
sort of going out policy to a more collaborative policy with countries around the world. there's a change in the u.k. and security risks which people are debating at the moment but it's also a change in the u.k.'s attitude to work with china and china's attitude to working with other countries. >> do you think this also has to do with the potential for the u.k. leaving the eu? we're trying to beef you have large deals elsewhere? >> i don't think one can read a lot into this deal in terms of the eu relationship. there's a french company leading the project and the really interesting question is would this lead to china's building their own design here in the u.k. not for the current one but down the line. >> but even the current one is also majority owned and lead by edf the french company with now, we think, a third financing from china. so is our own industry, our own
technology massively behind? are are we reliant on foreign investment for our energy dependency in the future? >> that's the debate. the financial times, u.k.'s economics and business journal said a month ago this is a big expensive deal and asked for a more transparent look at the deal because there are alternatives. there's developing energy in the u.k. and other sources of energy. there is a debate which is is this the best deal? it commits the u.k. customers for paying a high sum for a long time so there's a very active debate in terms of the energy we need for the future. what the right mix is. how does that involve companies from france and china and this is going to be a landmark in that process but it's quite an expensive landmark. >> thank you for joining us
today. now the world's biggest lock manufacturer says the chinese market continues to be challenging. despite the comments the group posted a rise in third quarter operating profit on the back of strong u.s. sales growth. it's trading near the top of the stoxx 600 today. up 3.3%. the first apple music subscriber numbers are coming in. ceo tim cook told recode there's 6.5 million paying subscribers. apple launched it's streaming music service june 30th. rival spotify said it had 20 million paying customers. apple stock is up marginally since the beginning of the year. it's flat. but down over the last three months. >> christmas is coming as well and amazon is planning on hiring 20,000 additional seasonal workers this year compared to last year. it's creating a hundred thousand jobs for the holiday season.
100,000 to meet increased customer demand. it's been on a tear. it's up by 90% over the last year alone. and united continental has named general council brett hart as acting ceo four days after the chief executive suffered a heart attack. the airline says it's too soon to know when he may come back. the news marks the second ceo shake up at the airline since early september and that's when the predecessor re-signed amid an internal and federal probe into united's relationship with the port authority in new york and new jersey. they reported quarterly numbers on thursday. the stock down more than 15% since the first of january. >> starbucks and fiat could be the first companies to face the wrath of the european commission over their tax dealings tomorrow. this happening according to various media outlets. the commission's competition arm has been looking to crack down on what have become known as
sweetheart deals. the cases lead by the e.u. competition commission who is expected to rule tomorrow that starbucks and fiat benefitted from favorable tax treatment in the netherlands. the investigation is likely to result in the payment of back taxes with with estimates of between 20 to 30 million euros and fiat likely on the hook for considerably more. so they are crack down on these sweetheart deals, right? >> so it seems. this has been something that's been rumored for a long time and it's an on going debate, particularly state side about is the eu being overprotective? and it's the out look in other places and there's gaps in that at the moment. someone is going to close them out. >> they are. unfortunately it means that the taxization system becomes that much more complicated than in terms of closing loopholes that aren't supposed to be used in the first place but end up being used. it's a lot more complicated. >> exactly. >> what's your twitter handle
again? >> @wilfredfrost. >> that's where you can find us. you have been writing in and telling us what the worst mistakes are that you made at work. we'd love to hear more of that and we'll read out some of your e-mails and your tweets later on because a fat finger mistake meant that deutsche bank paid $6 billion to a hedge fund client. the money was returned the next day but the desk blunder raises questions about the banks ability to manage certain trading risks. >> indeed. that's why we have been asking what's the worst mistake you made at work. we'll discuss more on that topic and much more here at worldwide exchange after the break.
hi, everybody, welcome back. you're still watching worldwide exchange. >> here are your headlines from around the world. >> well, u.s. futures pointing lower after imb slashes it's profit forecast on disappointing revenues sending shares lower in after hours trade. >> we're awaiting chinese president xi jinping and his horse drawn carriage here to arrive at buckingham palace. meantime china and the u.s. are set to sign billions of dollars wort