tv Worldwide Exchange CNBC November 11, 2015 4:00am-5:01am EST
here are your headlines from around the world today. >> sab miller and ab inbev get serious over their $105 billion deal. they hope to complete the merger in the second half of 2016 as they outline $12 billion in asset disposals. >> carlsberg gets it's fizzle back. we'll speak to the ceo about the challenging it's still facing in russia and also in china.
>> a $10 billion day. china's single day shopping frenzy helps alibaba soar past last year's record. we hear from jack ma on squawk on the street. vivendi shares are slumping after the media company swings to a net loss in the third quarter. >> mark carney is due to speak at the forum here in london. he'll be focused on financial market regulation but mario draghi will also be taking the stage today. we'll bring you live coverage of that speech at 14:15 cet.
don't miss it. >> very busy today. let's talk about m&a activity. ab inbev finalized it's stakeover of sab miller in a deal worth around $108 billion. they paid 44 pounds in cash for existing sab miller shares and in order for the deal to past u.s. antitrust hurdles sab miller is selling it's stake in miller coors and it is being acquired for $12 billion. so the ab inbev sab miller tie up expected to complete in the 2nd half of 2016. >> now investors are cheering a restructuring plan sends shares in the danish brew giant to the top of the stoxx 600. organic operating profit could decline as well as unveiling a 1.4 billi 1.4 billion impairment charge on russia and china.
the company reported a loss for the period after the impairment charge was accounted for. we'll be speaking to the ceo of carlsberg at 11:30 cet. a number of analyst notes this morning say this is a new sense of realism at carlsberg because they have a new management team. all the impairments that they have taken on the u.k., russia, china, and there was a lot of surprise over the amount of impairments taken over china. obviously the company was way too optimistic. we have known the company facing problems there for such a long time. that really isn't anything new but china news is a bit of a surprise. >> also, i think we still have that china question when it comes to the big mega merger. sab, ab inbev. now that we're die vesting the miller coors part of the equation, maybe that will get
through the u.s. antitrust concerns but china with that tie up of ab inbev, sab controlling a big stake and big portion of the chinese markets. do they have to sell off brand there is? once you don't succeed. you try twice, three or four times. and in tough times in the brewing space you finally get the deal through. >> yeah. >> we still need the okay. >> we do. >> but sab is recommending that shareholders accept the offer on the table. >> it also begs the question what's going to happen to the likes of heineken and carlsberg. they were saying we're not looking at m&a and they can't because they don't have any cash available unless they want the company to be acquired but they can't be a very active acquirer out there. so they don't have much choice. >> how do you compete with a world with this in the brewing space. if you're a carlsberg or
heineken you would be worried. >> i think so. >> we'll put that question to him. 11:30 cet. >> let's talk about big numbers coming from china, a $10 billion day for china's singles day. that shopping frenzy that happens on november 11th soaring past last year's record with alibaba raking in half of that amount just the first 90 minutes alone. believe it or not, eunice yoon filed this report on the anti-valentine event. >> singles day got off on a solid start. the chinese post office expects 750 million packages to be shipped today. alibaba already exceeded the online sales around the u.s. thanksgiving day holiday, black friday as well as cyber monday. singles day is an antivalentine's day. it started with university students that got together and wanted to give themselves and
each other presents. then alibaba turned the day into a massive consumer shopping extravaganza. the event is normally headquaters but this year it's in beijing and there was a big gala last night where even daniel craig took the stage. the point of the event is to get chinese consumers spending and there's heavy discounts and deals for everyone. people could preorder the ipad pro or get a 50% discount on a cadillac sedan. now there's concerns going forward after today. people are worried there's irregularities within accounting and people are concerned about the fakes sold on its sigte. they also face the economic slow down in china and all the issues threaten it's global ambitions. still the chinese premiere got in on the action. his office called alibaba to wish them congratulations for
singles day. >> wow, 50% discount on a cadillac. that sounds like a deal. you can listen in to jack ma later on squawk on the street later on today. he is going to be in a first on cnbc interview that comes your way at 15:30 cet time. >> quick check of the european markets. we're higher this morning. let's take a quick glance. we're up by 0.9%. this is after we were higher by 0.2% in yesterday's trading session but down roughly 1% so far this week. carlsberg leading the markets higher. we'll be back in two.
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bank of england governor is due to speak at the boe forum any minute now. his speech is focused on financial market regulation. the person who was just leaving the stage right now was the lord mayor of london and mark carney is just taking to the stage. let's listen in as soon as he starts speaking. keep in mind -- there we go. let's listen in. >> welcome to the open forum. i'd like to begin by thanking you lord mayor for your extraordinary service over the past year. almost the past year and the extraordinary service to come over the next 48 hours and to thank you for your gracious
hospitality today here in a building that started life in 1411 as a little cottage and which has become the place to bring people together whether it's businesses, traders, market makers, world leaders and citizens, this has been the place that brought together people to solve problems. today we're drawing inspiration from this great tradition by gathering representatives from across civil society to discuss how to build the real markets of tomorrow. now the bank of england is here as a convener. we have a statutory responsibility to protect and enhance the financial stability -- the stability of the financial system of the united kingdom. so even if we don't regulate all aspects of the financial market per say we have a close interest in working with others to create the markets that enjoy the trust of society while allocating
capital and risk and that's because markets are powerful drivers of prosperity and security for all. they create new opportunities for our businesses and investors. by transferring risks to those that are most willing and able to bear them. markets help against the unexpected. they're becoming ever more important as individuals bear increasing responsibility for financing their retirements and ensuring against risks. so it's vital that markets work well and vital that they are seen to do so. only real markets can deliver all of these benefits. they're resilient and they don't collapse when the going gets tough. real markets are fair.
participants that compete on merritt and don't collude online. they're an ends to themselves but a means to much greater ends. it's only the markets that tr s transapparently serve. many of our markets tint live up to these standards. at times some of the most important commodity markets prove tra jill, unfair, ineffective and unaccountable. so it's hardly surprising that only a third of people believe markets work in the interest of society and the more people see, the less they like. people tend to trust markets less with age. yet at the same time most people think that markets will become ever more important and they're right. as i wrote this week to g-20
leaders, the structure of the global financial system changed significantly since the crisis. virtually all of the net capital raised since the crisis has been through the capital markets and the size of assets under management increased to about $75 trillion. real markets don't just happen. they depend on the quality of infrastructure and determine the mechanics of markets and the soft infrastructure like standards and codes that define how market participants behave if we take it for granted that infrastructure won't keep pace as it failed to do in the run up
to the crisis and we all have an responsibility to prevent that from happening again. we're so delight sod many people are here today joining those that participanted in panels and those sharing their comments, ideas and thoughts and questions on social media. as lord mayor indicated we're bringing together people on all sides of markets so it's not just the bankers and central bankers and regulators and traders but the companies, the investors, the savers, the academics t judges and trade unionists and journalists. that's important because we all rely on markets and we're all effected by them. the good news is this process
has been underway for sometime. there's been a huge program of reform that's worked to fix the faultlines that lead to the crisis and build more resilient market based sources of finance to serve the real economy and the u.s. played a leading role consistent with the u.k.'s position as the global financial center. after all, 40% of global foreign exchange trading goes through london. half of all otc derivatives are traded in the u.k. 2-thirds of trading and international bond. more international banking activity is booked here than anywhere u.k. efforts made the system more resilient. the banks at the center of the system are safer. the capital requirements have been increased tenfold and the liquid assets on balance sheets have increased four times there's a new ratio that
protects the system from risks we think are low but are not. banks trading assets have fallen by a third since the crisis. their borrows have been cut in half and the banks newfound resilience has been demonstrated recently as they have dampened rather than amply identified significant market volatility. >> that was mark carney at the boe open forum in london. he was talking about fairness of open markets. we'll bring you the highlights in the show. meantime, mario draghi will be taking the stage today. we'll bring you that speech at 14:15 cet. and jeff is there and will be speaking to the chief economist of the bank of england. first on cnbc. tune into an extended edition of worldwide exchange at midday for that specific interview.
shares trading higher after the swiss based company published it's second quarter results. rose nearly 25% in the last quarter compared to last year. they now expect to post full year revenue of at least $645 million. >> great to have you this morning. >> pleasure. >> how difficult was it to overcome the challenging of operating in russia and ukraine at the height of the crisis there? >> well we started in russia and ukraine and we had the majority based on those two countries so it was a challenge but also an opportunity to change the business. so transfer the company from local to global and currently enjoying that. so actually think it was a good exercise. >> so the relocation worked
pretty smoothly but still a large part of the engineers or the programmers are still in ukraine and russia. >> about 50%. >> about 50%. >> so you're still benefitting from the fact that you're paying wages there and the costs are low but the revenues that you rake in are are from around the world and developed markets. >> that's true. >> so this is not the core of the business. it's in the quality of this stuff. the complexity of the job and the quality. >> you compete in a space with big names like ibm and people are concerned about ibm and where this stock is going, where this company is going because just in the past, what, two years or so they have been down. their revenues have been down for the last five quarters. sales are slowing each and every quarter during that time period.
what does that mean for the industry? and a new player like you? >> they have lots of legacy to carry on. for them to be nimble and reflect all of the changes which are happening today, all the technologies and the business needs it's a tough exercise. for companies like us, it's easier. we can move first. we see so many tuns a head of s us. >> and disruptive. that's what you're looking for. disruptive technology going forward and you mostly service telecoms, financials and the automotive industry. >> it's very big for us. it's growing. so we just saw there, you know report about the autonomous driving so quite a bit of that has been developed by luxoft. >> quite a rise in your stock
price this year. 81%. are you worried about any form of profit taking here on out? >> well, as long as the business delivers results we are here to stay for long and delivering the same quality of growth, i'm not worried about people taking profit. they deserve it. >> all right. talk to us about the biggest challenges for your business going forward as we head into 2016. the russia geo political problem will be bubbling on the surface even though it's not the headline grabber anymore. what other challenges are you seeing? >> the biggest challenge for a business like ours is keep the quality and keep the quality of the boutique style and scale. not many people can handle this challenge. >> thank you so much. luxoft shares up roughly 81% over the last 12 months.
ceo of luxoft. susan. >> hey. >> let's check in on the top stocks today across the european market and vivendi is one. they swung to a net loss of 200 million euros. struggling as a result of increased competitions. subscriber losses on going but the group has actually reaif i recalled it's target. despite that we're seeing declines of 7.5%. problems when it comes to grocers and in the aisle for sainsbury. it looks to keep one low cost competitors. despite this it has actually increased it's dividend by 20%. so you're getting 4 pence a piece. don't forget squawk box europe spoke with cfo john rogers in a first on cnbc interview and gave us his forecast for the upcoming festive season. >> we're very optimistic about christmas, generally speaking
sainsbury's tends to trade well. they look to treat themselves and clearly given the quality of our overall offer a lot of customers come to sainsbury for that quality offer. we're optimistic about christmas and planning for a good christmas but time will tell in six or so weeks time. >> christmas just around the corner. it has been a very busy earnings season, ahold missed expectations with close to 284 million euros but the super market group has confirmed it's full year guidance. now squawk also spoke with the ceo who says he sees considerable improvement in the company's performance state side. >> last year we had support of disruption of our major competitor in the new england market. 140 basis points. if he said we corrected for that we have 180 bases points on sales growth in the identical for the 3rd quarter.
that's a good number for the u.s. >> yeah, busy morning for us as well. yes, busy earnings season but a good look for henkel increasing it's forecast of 2015 after beating the street with a 12.3% increase when it comes to adjusted operating profits in the 3rd quarter. the earnings were boosted by strength when it comes to the german consumer goods firms landry business and the ceo giving us his outlook in a first on cnbc interview this morning. >> we continue to see china being very strong but overall very bullish in china also. we expect the contraction on the industrial size for the next two or three quarters and then return to normal. >> okay. a quick look at the currency markets and ahead of mario draghi's speech later on today, here's what the euro dollar is doing. we're back above the 107 level. we fell below that. 10744 is where we're currently
at. pound, sterling ahead of u.k. labor market data and wage data up by a third of 1%. 15154. but strong slide last week and the aussie dollar is actually quite a bit stronger up by 0.4%. i want to show you what's happening in the bond markets. keep in mind it is veteran's day. that means u.s. bond markets will be closed but i want to show you the portuguese yield. it's slightly higher at 2.822%. this on the back of political uncertainty in portugal where the prime minister was ousted just six weeks after his election win so that's rallying the bond markets there. the ten year bund yield at 63.9 basis points. european stock markets this morning, they are higher. we are up by roughly 0.8% for the stoxx 600. the ftse 100 0.8%. so recooping some of the losses
that we saw in the first part of the week and the ftse mib up by .1%. we did see the massive impairments in russia and china and the u.k. for example but analysts like the fact that this is kitchen sinking. >> still to come on the program, in the face of growing criticism at home, the indian prime minister is heading right here to the u.k. we'll preview the business deals likely to emerge from modi's visit to the united kingdom.
they outline $12 billion in asset disposals. >> carlsberg gets it's fizz back as investors cheer it's restructuring plan and we'll speak to the ceo about the challenging it's still facing when it comes to russia and in china. >> a $10 billion day. china's singles day shopg frenzy helps alibaba soar past last year's record. >> shares are slumping on the bottom of the european market today after the company swings to a net loss in the third quarter.
>> back to our top story. the world's largest brug company in a deal around $108 billion. they're paying 44 pounds in cash for existing shares in order for the deal to past u.s. antitrust hurdles sab miller is selling it's stake in miller coors. it's being acquired for $12 billion. it's expected to complete in the second half of 2016. >> let's get you some u.k. data. the jobless rate falling again but the wage growth is below forecasts. we're seeing that the unemployment rate is 5.3%. what we were looking for is a print around 5.4% but in terms
of the wage growth what we're looking for was actually around 3.2%. we're seeing the august average earnings at 2.8%. three months september average earnings 2.5%. so once again, wage growth is a little below expectations and on the back of that we're seeing sterling falling against the green back after that slightly disappointing labor market data. sterling dollar 15149 still up on the day but we saw even bigger gains just prior to the data. >> let's check in on earnings and yes we're getting through the bulk of it today. investors are cheering a restructuring plan sending shares to the top of the stoxx 600 on this wednesday. this despite the fact that the company has come out to warn of organic operating profit declining as well as unveiling a $1.4 billion impairment charge on the backs of weakness in russia, the u.k. and china.
the q-3 operating profit coming in above analyst estimates but the company reported a loss for the period. this is after the impairment charge which was accounted for during that period and we'll be speaking to the ceo at 11:30 cet time in a first on cnbc interview. >> modi is coming to the u.k. but first coming under fire from senior members of his own party following an election defeat. three party elders releasing a statement on tuesday calling for a thorough review into the election loss for the party. meantime prime minister modi scheduled to touchdown in london tomorrow for a three-day visit designed to expand trade talks between the two nations. joining us in studio today and here in london, managing editor, cnbc tv 18 here for the visit. good to see you. >> good to see you as well. >> it comes off of xi jinping's
state visit so i'm wondering if india feels overshadows. >> i don't know if india feels overshadows but at this point in time the expectations are not the same. i don't think we'll see big ticket announcements. we'd like to see some mous being signed. there's a large delegation coming with the prime minister. they'll be meeting with prime minister cameron as well as modi and the effort is going to be to try to build on the strategic partnership but i'm not sure if we're going to see big ticket headline announcements in terms of investment figures. $15 billion in terms of investment deals being done but those are rumored. >> 15 billion compared to the 50 billion china signed. doesn't it come at a tense time at home because he lost the elections in the state and has
them rethinking but how much, i guess, influence they're exuding still in india. >> it would be an overstatement to say that they have lost it's charm or the prime minister's image has taken a set back. i don't think that's the case at this point in time. it's been a set back and very significant one at that as far as the bjp is concerned but it has a lot to do with the local factors. trying to project local leaders into only the prime minister because at the end of the day people work for local leaders and don't necessarily work for prime ministers in local politics and those are some of the factors they'll need to contend with but outside of that, the government is trying to send out a message that india is open for business. that india wants to do business with foreign investors. in fact, just 24 hours ago we've seen a slew of announcements. some of them are meaningful but the effort is to send out a message that the reform agenda
is not going to be hid. that the reform progress that this government is hoping to move forward with is going to continue irrespective of the electoral set back. >> but how important is the u.k. specifically to india? mr. cameron has been there three times since he has taken office and mr. modi hasn't replicated that love to the same extent. i know that india is the third biggest source of foreign direct investment in the u.k. so you would think they're quite important. >> yes. it is an important relationship and i think that there has been talk about building on this bilateral trade in investment. but we haven't seen a lot tick off in terms of being able to build on the numbers. there's talk about doubling bilateral trade investment by 2015. we missed out on that but they're strategic partners and the effort will be from the indian side to say we're not just investing in the u.k. we're creating jobs in the u.k.
and similarly as far as u.k. is concerned the likes of jcb, et cetera, have significant aspirations in india and they're looking to grow their business so even within the g-20 nations the u.k. is the largest contributor of foreign direct investment into india so both sides it would be mutually beneficial to try and build on this relationship. >> and also we're talking a lot about business and trade deals and that's all fine but what about the cultural aspect? the u.k. is home to one of the largest ones outside of india. it makes sense, this historical relationship the two have. >> 60,000 expected on friday. >> what are they going to do? >> i believe that's 250 dancers. 50 singers. there's going to be a bunch of other performances lined up and as prime minister cameron said he would be a miracle for him to be able to pull off 60,000 people at wimbley but you have
the modi buses rolling through london and there's been a lot of talk about whether it will be a dampener. i don't see that happening. there's enthusiasm and he's going to actually visit the u.k. in the last ten years. we need to build on the chemistry that you were talking about there and this is his best visit to the u.k. >> looking forward to it. managing editor at cnbc tv 18. >> modi is still a rock star it seems. let's move on to another rock star, mario draghi will also be taking the stage at the boe open forum today. we'll bring you live coverage of that speech at 14:15 cet and jeff is at the boe open forum and will be speaking first on cnbc. tune into that extended edition of this show at midday cet for
that interview. now i got the chance to catch up with the ubs chairman to talk side effects of unconventional monetary policies. take a listen. >> it's been clear in monetary policy. the ecb and bank of japan both still have a bias and mario draghi outlined that further action is needed we expect a basis point for the cut of interest rates at some point. most likely in december and we expect prolongation of the current purchase program but having said that it's a very large program already. it's been having an impact on markets and we expect that to impact on equity markets and if the consolation holds with promising or announcing further easing your exchange rate is going to start to weaken
relative to the dollars. they're going to strengthen across the board and that's an environment that will be favorable to europe but it's a by-product of their decision. >> would it have impact on deflation? core inflation has been trending up. headline inflation has been kept low because of the lack of commodity price pressure though. >> it's hard to imagine that central banks in europe or japan can drive inflation back to 2%. we're in a weak global growth environment and in that environment it's ambition to have 2% inflation. you rarely have that and in the
current scenario i think central banks should not be overly ambitious to drive inflation back to 2% within two years. that's probably going to need a lot of additional easing and that additional easing will not help the economies to grow much faster. a lot of the easing we have seen had major impact on asset prices and asset markets. much less on the real economy and unemployment. so what we're seeing in europe because it's been leading european equities being up on the year and that support is in the u.s. but it's there in europe and japan. >> is there not a risk of a bubble if we keep on easing too long? >> easy cyclical policy doesn't
give policy makers the right incentives to do the right thing in the long-term. what europe has is structural problems and needs structural policies to fix these issues. good access to easy funding in governments prevents the right policies to be done because central banks are providing governments with easy options of funding in the markets without doing the right reforms. long-term that's a negative. >> all right. just want to tell you that george osborne is now speaking. he says the bank of england will develop for challenger banks and is also talking about his discussions with the indian prime minister on how to develop offshore indian bonds. so as soon as we get more information from that we'll bring it to you of course. 15,000 are meeting this week.
they're hoping to raise capital to develop their business and we sent nancy there. you have a very interesting guest waiting in the wings. >> that's right carolyn. i have one of the top tech investors in europe. that's the co-founder of skype but also ceo and co-founder looking to help and build this funding gap and capital gap and help support these firms in europe as european tech looks to take on competition from the west coast in california and also from china. so joining me now, thank you for being here. i want to talk about this report looking at the state of european tech. the companies have proven that they can reach that 1 billion mark but what does europe need to do to get more companies into that 10 billion yield. >> that's just a matter of time and today we have so many fantastic companies here in europe but i'd like to see companies continue to grow and
become really big and companies with tens of billion of valuations but also thousands of people and companies that cannot acquire other smaller companies. that's one of the next steps we need to see in the european tech ecosystem. >> and one hurdle is to encourage more capital to come to europe. you really benefitted from this capital. are you seeing a shift in higher levels of capital coming here. perhaps higher funding? >> we are pretty much impair tif with the u.s. but if it comes to the growth finance, we don't have a gap here. in europe that's one of the gaps we're trying to address because these companies need a lot of capital to scale all around the world. >> there's been a lot of discussion that the various tech hubs need to connect more.
how do you get them to come together? does it need to come from the government as well? >> one of the things we learned in our research is poor interconnectivity between the hubs. i travel around these hubs all the time and we try to bring people together but this is going to come organically from the ecosystem and investors and entrepreneurs getting together and people like organizing this are getting together. so it's one of the things being addressed but we need to have patience. >> a bit more patience. you could say we need more patience on the exit front as well. europe did see a rise in ipos this year over last however some signs of concern. we have seen a few. hello fresh has now been pulled what is your outlook currently. >> the private market continue
to thrive. specifically here in europe is doing very well. so i think that, you know, seems like they're just waiting for a better public market situation but reality is that last year, you know, here in europe we had more tech ipos than u.s. and these companies raised more money. so we started to have a good ipo market but it's nothing close to the opportunities that you still have in the private market. >> can it be concern that this talking so much about unicorns doesn't have staying power when it comes to going public? >> you need to separate companies from companies and the reality is while there is a boom of so many companies beings started, there's not that many companies that have the quality to become truly sustainable companies and this is something here in europe, entrepreneurs
are trying harder to build sustainable businesses. so in a way i think that the lack of capital is building somehow more sustainable companies. >> let's talk about your experience with skype specifically. it's quite a story. you sold the company not once but twice. first to ebay and then to microsoft. what was the rational behind that and what lessons do you offer to the companies you invest in? >> we started skype. we had a clear vision to build a company that could last the test of times to be a leader in communications. we did not have an ambition to sell the company. great companies get acquired and this is one of the things we try to tell companies we're working with tonight don't look for selling your company. just try to build a great company and someone will come around to acquire it. >> keep building on the quality. not that multibillion dollar evaluation. is that fair? >> it's also about fwroeing gro
steady pace. if you are growing that's a bit of pain for company. being there for the long run and not just trying to take advantage of a hot market. >> thank you so much. we'll have much more for you coming up later in the day bachblth to you. >> looking forward to it. we'll be back. nancy, sit tight. still to come on the program, the more people see of markets the less they like them according to mark carney who has been speaking about financial regulation this morning. we'll bring you the highlights of his speech right after this short break.
welcome back. sterling fell against the u.s. dollar after wage growth came in below forecast for the three months at t the end of september. average weekly earnings grew 3% but were expected to grow marginally higher at 3.2%. the employment rate is at the highest on record touching 73.7%. the unemployment rate fell to 5.3%. sterling dollar at 15144 still up on the day but off the session highs. now can the governor of the bank of england improve the reputation of the city? speaking in london, mark carney
said authorities are improving accountabili accountability. >> this heads i win, tales you lose capitalism is drawing to a close. authorities are also working in the ethical drift. benchmarks have been formed to end abuse and market participants are being made more accountable for their actions. misconduct is being met with genuine penalties and authorities are ending the age of irresponsibility. >> okay. let's get out to jeff at the bank of england open forum down the street in london. jeff, your takeaways yes and this is about a bit of stock take. what has been done since the
global financial crisis and you heard mr. carney talking about how he believes that we are coming close to the end of irresponsibility as far as banking is concerned and osborne, the chancellor in his speech pointed out that the u.k. launched the largest banking bailout in history and now hopefully we're getting back to a point where the banks are lending to the real economy but they are also doing it where there is less risk and we're close to the end of too big to fail here so the forum continues but of course we have a great opportunity here to catch up with people in the city and speak about the direction of markets and interest rates and i'm pleased to have with me the ceo of hermes investment management. can i start off by asking you
it's a rough world at the moment for investors. talk to us about where you think there's opportunities in this world of low growth and returns. >> the biggest opportunity is that there's consensus. the world is slowing and there's no recovery. if we look more carefully you'll find the world is decoupling. the united states is strengthening and you'll begin to see some increasing interest rates there we're not going to see an increase for sometime and china is growing less strongly but still growing and you can pick up specific companies been emerging markets. particularly within china and even within europe even though the financial markets are not doing that well and there's the global economic cycle which decoupled and the financial markets still going in the same
directionality but there's massive market consensus that creates opportunity. >> we learned today that the portuguese are going to have to go through another round of structuring a government. we have problems with greece still and we know that many of the core european economies are still struggling to meet their budget deficit targets. do we have paralysis when it comes to investment in europe at this point because few people can see beyond the political problems? >> you differentiate between europe as in the markets you can invest in. our team finds lots of opportunities and europe theoretically has economic block. european debt is probably problematic at this stage and people are seeing enough austerity. that's the message that came out of greece and the message out of portugal today. it doesn't mean that you can't find opportunity. the chancellor mentioned how much money we have pumped into our system. if you add in also quantity
easing trillion pounds that's 15,000 pounds of debt for every single citizen of this country to try to get it going again. the europeans pumped some money in but mr. draghi needs to do more of that and they're import a work force she hopes will boost the economy in the long-term. >> do you think mr. carney has been unfairly given a hard time for raising this issue when clearly you feel passionately about it? >> i think mr. carney said exactly the right thing and has shown leadership. we passed the 1 degree warming yesterday this is about the valuation of assets and he understands that the failure of 2008 was that investors did not take into account all the risks inherent within the system. we know there is environmental
risk. are we taking it into account and asking companies to think and are we as investors factoring that into our investment models? >> we have still to come mario draghi. what would you like to hear? there's still confusion as to where we're going on interest rate policy and also on further monetary easing. >> mr. draghi has to say if he wants the markets to be sustainable that he's willing to ease more and pump in more liquidity. in some ways the u.s. is finished. here in the u.s. we're almost done but not quite. they need to do a lot more in europe to get them out of the myer they're in and maybe some structure of reform. it's not all about austerity. >> nice to see you. thank you for stopping by. with us from hermes investment management. >> meantime the euro is trading out a six month low against the green back ahead of a speech by mario draghi that jeff was just
talking with his guest about in london where he could signal further easing. draghi will take the podium at the open forum at 14:15 cet or 8:15 a.m. eastern and we'll also be speaking to the chief economist of the bank of england first on cnbc. tune in to an extended edition of worldwide exchange at midday cet for that interview. lots coming up. >> lots coming up on the program. we're going into the next hour of worldwide exchange and the biggest shopping event of the year. can singles day provide a much needed boost for china's economy? we'll discuss right after this. it's easy to buy insurance and forget about it. but the more you learn about your coverage, the more gaps you might find. like how you thought you were covered for all this... when you're really only covered for this. hot dog? or how you may think you're covered for this... but not for this... whoa! no, no, oh , oh!
these are your headlines from around the world. >> a $10 billion day. china's singles day shopg frenzy helps alibaba soar past last year's record. we'll be hearing from jack ma on squawk on the street later on today. >> hold your bets. new york's attorney general bans draft kings and fan dual saying their operations amount to illegal gambling. sab miller and ab inbev getting serious about t