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tv   Worldwide Exchange  CNBC  November 23, 2015 4:00am-5:01am EST

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welcome to "worldwide exchange." >> we're live from london and brussels. here are your headlines. >> brussels remains under lockdown for a third day as late-night raids failed to find the paris attack gunman still at large. the belgian prime minister says schools in the metro will remain closed with the terror threat at the highest level. >> translator: we are fearing a similar attack to that which took place in paris for several individuals who might launch attacks at the same time. >> reporter: british prime
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minister david cameron looks to build supports for strikes against the islamic state in syria and beef up security spending here at home. >> i firmly support the action that president hollande has taken to strike isol in syria and it's my firm conviction brittain should do the same. the emerging pmi data from germany and france keeps pressure on the euro. >> faizer ee eer -- phaser and is trying for a major deal and it will curb tax inversions. so we've had french and german pmis already today. french a little bit disappointing. german pmis very high.
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three-month high for the manufacturing. let's have a look now. we've got the eurozone figures services at 54.6 ahead ever forecasts ahead of 54.0. manufacturing has come in at 52.8, that's ahead of forecasts of 52.3. the composite, that figure came in at 54.4 ahead of 54.0. the german data-an -- data half an hour ago brought it up. euro dollar as you can see, flat 106.34. the low 106 levels for the best part of last week as we're pretty much pricing in actions from both sides. >> 1.05 is the target. >> european equity markets, let's see how they're fairing this morning. they're not fairing too well.
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we're off for the ftse 100. the xetra dax trending lower. the cac 40 is off by 0.7%. the bulk of the selling you can see in the commodity and mining space. mining stocks are slumping on the back of the falls that we saw, asian trading session. want to show you what asian trading is doing. brent crude at 43.69. off by 2%. wti down by 3% holding at the 40.58. let's get back to the top story. brussels is waking up to the third day of lockdown. >> reporter: it's been a pretty
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dramatic 24 hours, to be honest. 22 raids in brussels in the surrounding areas. 16 suspects being held in custody. they can be held for 24 hours for questioning. of course, the main target we think of these raids was trying to locate the paris gunman that's believed to be at large here in belgium. the man called salah abdeslam. they didn't find him. the search will go on. what we're left with here is a significantly heightened security environment. the highest security level that can be achieved here in brussels. just looking around me, i've got, what, three soldiers on my right here. further solars and military police on my left. you can actually see behind me but there's three army trucks down at the bottom of this street. very well known shopping street here. not a lot of people around. a better sense of what we have is a lockdown, schools, universities, the metro stations. i think that's probably the most
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noticeable thing. we don't have people pouring out of that. as far as the security sweep is concerned, the prime minister made it very clear about what threats they're worried about. listen in. >> translator: i confirm as i was able to indicate yesterday that we are fearing a similar attack to that which took place in paris involving several individuals who might launch an attack on several different locations at the same time. we have information that leads us to believe that the potential targets are places which are regularly frequented. we are thinking of commercial areas or streets or the public transport system. >> reporter: guys, i have to say the overwhelming sense from being here in brussels since late last night is exactly what i got when i was in the region of brussels, mollenbeck. people are saying, look, we're okay. this is a bit of an
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overreaction. for all the criticism they've had for not doing as much in security and surveillance, they're now being criticized for overreaction and fear mongering among the population? >> what about the economic toll? i know brussels is quite a destination for travelers. we know shares are trading. is the country increasingly concerned about the longer lasting effects of the shutdown? >> reporter: well, it's difficult to say, isn't it, because we don't know how quickly they can lock down this broader threat. it's not just about this individual chasing here that's believed to still be at large in brussels. there's a christmas market. we don't know. we had shops in the center of brussels closing midday. bars and restaurants were being locked down at 6:00 p.m.
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that's clearly not only going to have an impact on confidence but it will have an impact on consumer behavior. the question is how much longer will this lockdown period go on because that is clearly going to have an impact on retail. back to you. u.k. prime minister david cameron has met with french president francois hollande. meanwhile, cameron is looking to get support from westminster to carry out airstrikes joining france, russia, and the u.s. let's go outside of parliament to hadley live. >> reporter: good morning, wilford. essentially what we've heard from the british prime minister is that it's time for this country to put its money where its mouth is. we're talking about 178 billion pounds of military spending. 12 million more pounds than they had originally anticipated.
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this plays into the bigger story of how they plan to attack the islamic state, not just at home but abroad. >> the world is coming together to tackle this evil terrorist threat. that was clear on friday night when almost one week after the brutal terrorists murdered people here in paris and sought to divide us, the world united in new york. we've shown our firm resolve and together we will destroy this evil threat. >> reporter: now following his meeting with president hollande david cameron is going to head back to the u.k. he's going to be speaking later in london and talking about this new plan for security and defense. we're talking about two strong 5,000 fighter strike groups and readily deemployable. it will be interesting in how quickly mr. cameron sees support. this vote he hopes will be unanimous on strikes in syria. >> hadley, thanks very much for
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that. i suppose the question is whether it will be unanimous or not. certainly sentiment is starting to swing towards supporting his strategy, certainly more so in 2013 on that famous failed vote. the leader of the opposition, jeremy corbitt is unlikely to support it. do we have a sense of how likely a vote is to come? >> when you talk about certain people, germ my corbin, we have to remember, of course, the u.k. has been supporting other groups such as the french and united states as well in terms ever their airstrikes all along. this wouldn't be too big of a step for the military. it's a bigger step psychologically amongst the british people in terms of whether they're willing to commit thus far. that's the bigger question.
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how much have the events weighed on them and whether they feel they have the support of voters to do something. >> let's head back to one of our top corporate stories this morning. phizer's board room approved buying allergan. it's expected to be announced today. pfizer will pay 11.3 shares for each allergan share. pfizer will move its headquarters to ireland to secure a lower tax rate. brent saunders will take on a senior role. trade off 3/4 of 1%. allergan up 5.4%. it should be a slap in the face for the u.s. treasury department because they've been trying to crack down on the plan.
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allergan is buying pfizer even though pfizer shareholders will have the bigger shares. >> very much a slap in the face. allergan doing the buying is the one that's benefitting because of that structure and, you know, as inversion deals come, this is a huge deal. just in general of any deals. over $150 billion. abi sab, that's over 105. this is a massive deal. it's inversion. that's what they're trying to escape. it will really infuriate them. you can understand why these companies are trying to get this done before any meaningful tax reforms. >> $2.1 billion will be added to the bottom line of pfizer. if you take a look at the numbers 12,.5%, that's the tax rate in ireland. what is it in the u.s.? 35%.
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that gap, any condition, any ceo will want to take advantage of that. we need a narrowing of that break. we need a different tax code in the u.s. >> which is not going to happen any time soon. >> no. >> so management taking advantages of that. u.s.diebold is trying to create the largest atm maker. >> the deal values wincor at $1.5 million. electrolux has reached a settlement with the u.s. department of justice. electrolux says it will vigorously contest efforts by the d.o.j. on antitrust grounds. that follows an admission by the ceo that he made factual errors.
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we are going to go for a quick break. still to come on this show, we get under the hood of the folks vag gone sales report in the wake of the emissions scandal. should investors be worried? we'll find out after this short break. don't go away. when the flu hits, it's a the aches. the chills. the fever. an even bigger deal?
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volkswagen has denied a report in the german daily news that sales have slumped sips the emission scandal broke. volkswagen shares down 2.5%. nancy is joining us on the desk. why are shares down so much? >> we had this report saying sales as a result of the newer allegations, the admission from volkswagen that some petrol vehicles were affected. the last sales were in october. the admission about the c o2 goes from november 2nd. we haven't seen full officials results. they said sales have been dead as a door nail. one person told reuters, that's not true. you have the meeting with u.s. regulators and volkswagen that
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took place last week. volkswagen on friday smet a deadline to submit an initial report to fix the diesel engines, the root of the problem that started in the united states. during the meetings volkswagen admitted there are some cars affected when you talk about the larger 3.0 liter engines that affect audis and higher end models. when the diesel deif he is broke it was lower end. the total cars are 85,000. by the data it seems that the investigation, the probe is expanding. the more allegations we get, the more admissions we get. you're talking about further implications. >> can i bring in the german pmi this morning. there's an upside in the manufacturing data. apparently this volkswagen scandal hasn't been affecting the broader made in germany manufacturing sector? >> that's definitely good news
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when we talk about the broader manufacturing sector. we still don't know what the impact will be in terms of jobs at volkswagen. on friday jokvolkswagen said th were affecting cap ex. mattheus miller said they could revisit that. they're under pressure to maintain jobs. talking specifically about volkswagen, we haven't seen a job cuts toll there. good news. good news for the broader manufacturing sector as well. >> nancy, thank you very much. italy is looking to create a bad bank structure to deal with the financial structure's 330 million euros bad loans. the measure would be, quote, silver bullet to kick start the italian recovery but it's likely to face opposition from the eu which has rejected the treasury's plans thus far. meanwhile, there's a $3.6 billion rescue fund funded by
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the larger more secure banks. greece's piraeus bank has raised $3.4 million. it falls short of the capital demanded from the scenario which says it requires 4.93 million our rows. it's expected to be filled by issuing more shares and contingent convertible bonds. rwe may consider exiting brittain. this accord to go reuters. empire is struggling after significant customer losses. the vfo said it would take until at least 2017 for the company to return to profit. the shares plummeted more than 21% in the last three months to trade at a 24-year low. want to take you back to the mining story because as you can see here, many of the mining stocks are really falling quite
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heavily in london trade today. commodity prices are slumping. just to give you a snapshot, london nickel down 6%. the lowest since 2003. copper off. there's a six and a half year low. u.s. crude falling 3%. gold at a 6 1/2 year low. hard to pinpoint why we saw that decline in commodity prices. we didn't get any data out of china. we have the strengthening data. more and more concerns about china, whether we found the bottom or not. >> i think it's definitely the emerging market side of thing adding to the woes in the last few months. it looks like the economy will decline by a couple of percent this year. not sure how it gets any better in 2016. when you consider that factor and the fact that that weighs on these economies so heavily, i think that is self-fulfilling prophecy. the way mortgage-backed
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securities started to weigh on them, if the countries like brazil, for companies like petrobas, it's like a double whammy. russia has its own prizes. it's not surprising that they shut that, it got a lot of attention last week. >> you're right. i want to make a final point about china. what was interesting is the pboc faced the luan since the lowest rate since august 31st. a lot of people take this as a sign that more easing of the currency may be in the offing to counter what the fed might be doing in december. maybe that was a warning shot from the pboc overnight. this may have a lot to do. glen core finally fought heavily 2.1% as well. >> let's have an outlook at some of the other sectors in european trade. all of those declines weighing on the ftse 100 which given those declines in fact is holding up relatively well.
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it could be worse, of course. let's look at europe. germany, that's just below flat. relative for the broader markets today given that pmis were so strong. french pmis less strong. italy managing to eke out a slight gain. let's also just check in on the trade in asia today. sri is standing by for an update with us in singapore. sri. >> will, good to see you. fairly flat session all in all in asia. the trade volumes, let me remind you, not much more on the ground. you're not seeing any quotes for nikkei. that is because there is a national holiday in japan. so it's reducing liquidity, reducing volumes but the main drag really stronger dollar. and also its impact on the commodities. let me pick up the e.u. and how we're discussing. strangely enough, you would have thought the australian market would have been suffering.
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some of the market has been. the slack is being picked up by the banking stock. a lot of investors are starting to swoop on those higher yielding banking stocks. that's keeping the market afloat. incidentally we're up for the fifth straight session. back to the australian market is helping that the fact that woollies is doing well. it has takeover speculation. a bit of speculation. broadly is the stronger dollar environment is the commodities complex and the stresses that are keeping sentiment quite fragile over here. we're trying to get the prices in higher rate viern zblmts back to you in london. >> sri, thank you very much for that. let's recap the eurozone pmi data that showed business growth has reached highs not seen since 2011. in france it helped in the services sector. manufacturing improved.
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the germans shrugged off concerns around volkswagen. joining us to discuss this is rob dobson, senior economist at market. rob, very good morning to you. >> good morning. >> thanks for joining us. let's kick off with germany because real blowout in terms of the performance. much better than expected and coming off the back of this volkswagen scandal. >> exactly. these numbers suggest that germany has shrugged off everything with this scandal. manufacturing services was leading the recovery in that particular nation. that's not too surprising given some of the stimulus and being more focused with the domestic economy. new orders rising as well and it suggests growth will be going forward. that's increased timing and suggesting confidence is holding it well amongst manufacturers and service providers alike. >> on the french side of things, a little bit more disappointing. >> a little bit more disappointing. we're still seeing growth. we may be seeing earlier in the
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year. we're not going to see it top that what we saw in quarter three but given the back drop and how it's set, particularly the hospitality industry, the french number is weaker. i think it's on the back of that. >> we saw the coo of seamans shouting a warning on the back of the terror attacks. political risk is deafening investment. from the ecb speakers we very much got mixed messages. what do you think the net net might be if it stays like this? if we're not seeing any further terror attacks? could it actually dampen q3, q4 gdp? >> it could dampen q4. a lot of this comes down to sentiment. we're talking about how the attacks on paris have dented that confidence. we have service providers who set their one year outlook was a little less stronger than what it was before. if that continues that would obviously be a dampening effect. however, what we could see from
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our numbers on france, we've seen new orders rising as well. these are good forward looking indicators. again, we might see a bounce back in december. >> do you think the day-to-day changes affects mario draghi? >> it doesn't change the outlook for draghi. he was saying he was very disappointed. these numbers, yes. 4 1/2 year highs. only slightly above what we were seeing during the mid year phase. what we might see, it doesn't change it under growth fund. what we're seeing from a crisis indices. >> you could argue, in the third quarter we saw 0.3% growth for the eurozone. we didn't see any inflationary pressure. 0.3 is pretty good. it doesn't warrant more easing, does it? >> might not. what we need to look at. it looks incredibly good when we
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look at how we could be since the global financial crisis. it's still pretty weak. they might look at some of the back drop and think more stimulus is, you know, necessary to make sure grace is sustained. they might say, let's hold on. the december meeting will be very critical. >> rob, thank you so much for insight. rob dobson, senior economist at market. quick check of u.s. futures, let's see how they're fairing. coming off the best week for the s&p this year. the s&p 500 seemed pretty much flat. we'll be back in 2.
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brussels remains under lockdown for a third day as late-night raids failed to find the paris attack gunman still at large. the belgian prime minister says schools and the metro will remain closed with the terror threat at the highest level. >> translator: we are fearing a similar attack to that which took place in paris involving several individuals who might launch an attack on several different locations at the same time. u.k. prime minister david cameron looks to build support for strikes against isis and syria as he prepares to outline his defense strategy in parliament today.
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>> i firmly support the a beings that president hollande has taken to strike isol in syria and it's my firm conviction that brittain should do so, too. >> european markets see red led low by the minors among commodity while emerging pmi data in germany and france keeps pressure on the euro. pfizer and allergan set to talk about their deal and it's against the u.s. government's efforts to curb tax inversions. we're seeing softness across the board of european markets today. why? in part because of the mining slump. the ftse 100 down by roughly half of 1%. the xetra dax trending lower to the tune of .25%. the ftse eking out 1/4 of 1%.
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some softness in france. euro stocks 50 a gauge of how the biggest companies in europe are fairing. european markets are coming off the best week in a month. we're up by more than 3% last week. maybe there's also a little bit of profit taking in there. >> the yield on the german ten year was under 0.5%. it's still in negative territory. suggesting further easing by mario drag gee. it's a big move in the aussie dollar today off .86% on the back of the commodity price. now a major shakeup is taking hold in the european financial sector. stricter regulations and lower rates have led to a slew of
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regulations. they've all introduced fresh management with big ambitions. let's talk a little bit more about that. i'm delighted to say joining us is will davies, former chairman at standard charter. good morning. >> good morning. >> lots of changes in the european banking sphere. if you were still in a position of management of one of those banks, would you be wanting to ramp up european investment banks or close that down a bit? how can they really compete with the u.s. in that sphere? >> i think you've got a perform store a lot of the banks. you have a legacy issue which is significant. you've got financial disruption because the impact of technology and so i think that the returns are falling, the business model is under threat, so i think a lot of banks have to decide exactly what businesses they want to be in. and i think we're going to see more and more strategic decisions made by the big european banks. they either focus on investment banking or retail or wholesale and make some big calls.
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>> yet many of the u.s. banks are facing the same challenges and they seem to be weathering the storm better. now we're seeing the likes of goldman, morgan stanley for example, they're still the u.s. investment banking champions. in europe we still simply don't have that. deutsche bank wants to be that, but it's now cutting out so much there is not going to be a great return on equity. there isn't going to be a lot of profitability going for it. what has europe done wrong? >> i don't think we've done it wrong. i think america was very quick to take provisions and take big writeoffs so i think you could argue that the u.s. took drastic action faster than the european banks. i still believe that, you know, the european banks have a lot to go for. we've got some fantastic banks in europe. they have great businesses so i'm not as pessimistic as some about the european banks. what i do think is you've got some big calls to make as to where you put your capitol. a lot of businesses year end. i also think the impact of technology on a lot of
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businesses is profound and i think over the next few years that is going to be one of the big challenges for the banks. >> let's touch on hsbc and standard charter. do you think their exposure to asia will work against them in the next decade in a way that it hasn't done in the previous decade? >> i think if you looked at 7 billion people in the world, 1.5 billion people or thereabouts in china, massive population in india, i'm still very bullish about the prospects in asia and i think if you are a global bank, a great bank like hsbc or, indeed, standard charter, i think it's going to be a stretch. in the short term, china is slowing down and that does impact your profits in the short term and the outlook. but i think if you take the five, ten-year view, having a big presence in asia, that's a positive. >> well, against that back drop, there's been so much discussion about potentially moving headquarters away from u.k. for some of the u.k. banks to asia, for example, just because of the tax rate over there is a lot
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more advantageous. do you think there is danger that actually one of those banks will eventually make that stick? >> there's been lots of discussions, banks, et cetera have all made comments about it but none have gone yet. let's see what happens. i still believe that london as a financial center is, you know, arguably the capitol city of the world, dare i say, has got huge strengths going for it. so i'm still in the same way that i'm bullish about asia, i'm bullish about london as a financial center. i think the attitude of the government has fundamentally changed in the last few months and arguably since the election. financial services, very important part of the economy. i think we need to talk it up, not talk it down and i think that's a very important statement for politicians of all parties. financial services is a very important part of the economy. >> bullish on london in terms of its financial services you said there. does that bullishness increase
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or decrease if brittain were to leave the urp ron? >> increase. europe is our most important trading partner. it's a very important part of what we are. i think we are a gateway to investment in europe. i was a trade minister for a couple of years. if you look at the reason why people invest in the u.k., yes, we're -- we've got a huge and diverse economy, great strengths. we're also a great gateway to investing in europe. so i think it's very important that we stay as part of the e.u. and that we focus on building relationships across europe, not pulling out. >> of course we've got the awesome statement coming this week in the u.k. how do you measure the success of the current government on the economy? do you think the balance in the book targets, do they achieve more? >> no, i think it's a very tough set of, you know, choices that the government has in the next
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week. i think we've got to make sure that the rich/poor divide which i think is one of society's biggest challenges is cut. i think as we make cuts we have to make sure that we're not just cutting services to the disadvantaged. so i think that, you know, a difficult set of choices, i'm glad i'm not making them, but i think that we need a government and this government is trying its best to make sure that we're pro business, pro the city and that we build the economy. i think the economy in the u.k. is in pretty good shape. >> final question, can spurs beat arsenal this season? >> it's a very important question. nearly as important as the financial services. he played brilliantly. >> despite arsenal's loss we're still one place above you. >> not for long, thank you. >> former chairman of standard charter. still to come on this show, move over china. india's now the world's fastest
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growing major economy. we profile the investment opportunities. that's next on "worldwide exchange."
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a big moment for india as growth is set to exceed china's
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according to the world bank. momentum could stall if the government fails to deliver. we have the first report on the investing in india series. >> reporter: growth of 7.5%. the potential to become the world's third largest economy in ten years. there are many reasons to stay upbeat on india. a greek economy that continues to shine despite current turmoil in emerging markets. >> there is a 6, 7% growth rate is automatically there. there might be a euro, but there might be a blip. you might see the growth rate fall down to 6.5 or 6 or it might go to 8. we will be in the range. i think in that range our gdp will double in size in u.s. dollar terms. >> reporter: part of the optimism is centered on ind
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yachb prime minister nor ren doe mo modi. >> the prime minister made a commitment that accumulated sourcing over the next five years will be approximately $2 billion. so that way on an average it's about $400 million every year with the supply chain. >> mr. modi being so decisive, so clear about this agenda, i believe it's worth while to take another look at it. india has all the prerequisites to be an economic powerhouse in the world. demographics goes like this. it's democracy and it will be in india in the next years to come. >> reporter: many hurdles remain including india's infrastructure deficit which hampers transportation of goods and services and hurts company's
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bottom lines. it's not just the traffic, it's also miles and miles of red tape, layers upon layers of led tape in the often corrupt bureaucracy which makes india one of the hardest places in the world to do business. to its credit, india managed to move up 12 pospots in the world bank's ease of doing business to 130 out of 189 but that is far lower than china at 84. while there's talk that india could be the region's growth driver as china slow, india still has some ways to go to catch up, but analysts say the southeast nation can still win the economic race if they can would investment. martin soon, cnbc, india. joining us live from mumbai is the managing director at
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kotak asset management. thank you for joining us. in this package we heard a lot of reasons to be optimistic about investing. what about reasons to be pessimistic. weak public investment and we're seeing factories are running 30% below capacity. where do you stand? >> we think today we are in a far better position and all the problems in the future have already happened in the past and despite that they can deliver reasonably good growth rate. i want to present one story to your viewers. the parent company sends cars worldwide. it sells motors to suzuki. marupi doesn't give any benefits to suzuki.
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they kept trending in india. it's more than suzuki. even though sue zuk key ones half of marupee. they're in talks with their parent suzuki. we believe what marupee has done to suzuksuzuki, it's similar to others have done. if you stick it out, you will make enough return. >> but wait a second, you said all of the bad news has been priced in. well, we haven't seen the worst of the news come yet. that is the first rate hike. what happens when the fed finally moves? >> definitely u.s. fed rate hike is an important factor. fortunately u.s. fed has talked
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about its intent for quite some time, hence, my feeling is markets have reasonably factored in that rate hike. we have seen that in quantitative easing where the action of quantitative easing did not impact indian market or emerging markets but the speculation in mid 2013 created more adverse impact. so to a great extent fed rate hike is priced in and the u.s. fed is looking to raise interest rates far more speedier. i don't think the market will be at risk. >> are you concerned about the way that modi is losing support in some of the key regional elections recently? >> we are into election results which have gone against the ruling party. in the second election it was
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one party over the rest of the opposition put together. the prime minister still increased work share by 8%. it's very difficult to predict politics in a diverse country like india. what we believe the agenda for all elections are becoming let's make growth. i think if you focus on this developmental agenda as an outcome of all of this election, then you're far more comfortable. >> thank you so much for joining us this morning. managing director at kota kotak mahindra asset management. switching focus. maybe adele should take off four more years between every album. the album "25" is likely to sell 2.5 million copies in the u.s. that would break n-sync's record for "no strings attached."
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her album went on sale on friday. she was on "saturday night live" this weekend and will be on the ""tonight show"" this weekend. adele at the bbc. >> i did watch it, it was great. i do like her music as well. she's just such a likeable and genuine seeming artist which you don't always get with pop stars. >> most importantly she has a great voice, doesn't she? it's real interesting the statement she made by not releasing her album "25" on apple music or spotify, that's a very, very strong statement. taylor swift made a similar one last year. you can only do that if you're as powerful as adele. >> absolutely right. i would imagine keep it like this for a month or two or whatever and then put it on those services. maximize the sales first and clearly day one and two went pretty well on that front. >> absolutely. this may not be the farewell catness aberdeen. "making jay part 2" took in $101
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million below estimates of $120 million. worldwide the movie has earned $247 million less than the $275 million part 1 enjoyed last year. lions gate spent nearly $200 million to make and market the film. investors reacted negatively to reports friday the movie would miss projections. lions gate fell 3%. the 24 hour fitness chain anytime fitness is planning to open its 3,000th gym near england. it's present in more than 20 countries and boasts 3 million members. joining us is the ceo chuck runion. very good morning to you. >> good morning. >> thank you for joining us. 3,000 clubs. how quickly have you done all of this? it was pretty quick movement? >> just over 13 years. since may of 2002 we started in
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the u.s. now you mentioned, 20 countries. very proud of that growth. >> how would you define anytime fit snns what does it represent in the sphere of fitness? >> convenience. near where a person works or lives. personal staff. we take the time to work with members to help them achieve results through personalization, education and motivation. >> pretty competitive market. so many gyms out there. virgin active is one of the leading ones. how do you compete with those? i know that gym spending in the u.k. has gone up. in large part for unbudgeted gyms. >> i think there's plenty of upside. 13% of u.k. members are part of a fitness center. if you look at this country and globally, consumer wellness is projected to grow as well. i think there's plenty of room for all of us. i think people are looking for a convenient club that fits their lifestyle, a place to work out and get a quick look and get on the rest of your life. >> where do you want to grow, is it london or outside of london?
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the london market is pretty saturated. >> in london but throughout europe, yes. we're well built for these secondary tertiary markets. >> when we think of the fitness crazes of the last couple of years, certainly in central london i would say that it's much more about classes rather than ongoing memberships. it's like soul cycle and core gyms, those sorts of gyms. does that threaten your model or can you benefit from that as well? >> i think the more awareness the better. we also have one on one training with our boot camps. look, i think the more people work out, the better. you know, fit ness will grow. >> i'm going to ask you about the ipo market. do you think that's because pricing was too optimistic? is there an inherent fault somewhere in the pricing of the u.s. gym market? >> i think people are leery of the competition. we also know we have an
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attrition problem. if you look at public markets forfeitness, it's been a very soft year over the last decade. i think there has to be a brand at that comes out and raises the profile of the industry. >> finally, does the demand of fitness things for the gyms, does that change with economic cycles or is it something that you see pretty strong throughout? do you have to alter your pricing during down times? >> not much. over the last 30 years we've shown some resilience. we have continued to grow here even in fairly economic turbulent gliems great stuff. we'll leave it there. congratulations on the 3,000th gym. chuck runion, ceo of any time fitness. mark zuckerberg will take two months paternity leave. he says this is a very personal
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decision. studies show when working parents take time to be with their newborns outcomes are better. silicon valley has been extending parental leave. facebook allows employees to take up to four months. he did not say who would run facebook. it's likely coo cheryl sanberg would step in. i'm sure he could be managing while changing diapers and giving bottles. >> i can't imagine he'll totally drop his phone or tablet. he'll still be in touch. >> certainly. maybe he'll come into the office, maybe bring the painy to the office every once in a while. i can't believe that he's just going to check out for four months -- two months rather. >> it could be two months spread over a long period as well. >> that's true. >> we don't know. nice call from him. certainly attracts attention. absolutely. meantime, let's check in on european equity markets which are slightly under water. why? in part because. mining stocks. we really saw very rapid falls in the asian trading session. the ftse 100 off by 0.67%.
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the xetra dax off by 0.4. cac 40 close to 1%. in the mining space, here's the picture. we're seeing glen core down by a little more than 2%. rio tinto falling. copper at six year lows. gold at six year lows. not looking pretty. >> not at all. i have to say given it's down in the u.k. in fact means that the ftse 100 has declined to 0.5% is not that pronounced given the way that that sector is wearing. it always weighs particularly on the ftse 100 because of the high weighting of those names. let's also have a quick look at the euro dollar which has remained in the low 1.06 level for well over a week now. it's seemingly not bouncing back from recent declines. of course, that very much looking ahead to december's central bank meetings on both sides of the bargain.
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euro of coarse expected to see more easing from the ecb and on the dollar side the tightening. lots of analysts wondering whether we can test the lows of march this year in and around 1.05. let's round things off in terms of the market update. look at oil prices because very much a part of that commodity route that carolyn mentioned earlier, then you have wti down 3.2% today. can it test 40 dsz? we've been in a trading range of 40 to 50 for some time. if we did fall below 40, that would be a significant moment indeed. >> brent did rebound quite a bit. we're down 2.4%. much of it hinges on how strong the dollar is. if we're seeing the dollar at seven-month highs, no surprise commodity prices are getting knocked down. we are going to take a look at u.s. futures before we go for a quick break.
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the s&p 500 down 0.56 points. the dow jones off by 21 points. nasdaq off by 3 points. we're coming off the best week for the s&p 500 this year. it was up by more than 3% last week. really shrugging off the paris terror attacks, really shrugging off the fact that we're going to see that rate hike in december. >> absolutely right. another reason european markets are soft today. they, too, were strong. still coming on the show, we are ape talking about the man who's talking about taking las vegas by storm one nightclub at a time. neil moffitt is live. don't want to miss it.
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welcome. you're watching "worldwide exchange." i'm carolyn ross. >> i'm wilford frost. here are your headlines around the world. brussels remains under lockdown for the third day with the paris attack gunman still at large. meanwhile, u.k. prime minister david cameron urges lawmakers at home to sign off on airstrikes in syria. >> i firmly support the action that president hollande has taken to strike isol in syria and it's my firm conviction that brittain should do so, too. pfizer and allergan are

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