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tv   Worldwide Exchange  CNBC  December 7, 2015 4:00am-5:01am EST

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a very good morning to you. this is "worldwide exchange." i'm wilford frost. >> i'm caroline ross. these are your headlines around the world. president obama uses a rare speech from the oval office to hunt down terrorists and protect americans from a new phase of threat. >> after so much war many americans are asking whether we are confronted by a cancer that has no immediate cure. off the table, electrolux shares sink after general
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electric terminates a $3.3 billion deal costing them $175 million in break fees. big day for french local elections as the front nationale wins after a reaction to the paris attack. >> translator: the people expressed themselves and with the people we raise our head. there is an uneasy calm in financial markets. that's the warning from the bank of international settlements which says the fed rate hike could trigger rate hikes in emerging markets. good monday morning. i'm susan li. also coming up on the program today, nothing ventured, nothing gained. we'll be hearing from legendary tech investor sir michael moore on what's taking place right here in london. also, political sweeping changes
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in venezuela. we assess the implications of a new government after two decades with president meduro in power. and can climate talks in paris propel us towards a greener future. the ceo of vesta speaks to us later on in the program. welcome to the show. so we got a recovery in markets late on friday after the jobs number and also some sentiment from mario draghi which of clours slightly unwound that uncertainty from the ecb press conference on thursday. asian shares coming off those gains on friday to open positively today. that's carried through to european trade as you can see. everything in the green today. continental europe up very nicely indeed.
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france and germany up around 1.5%. the ftse up po.6%. surprising to get some reaction to the up side today. now r let's now focus in on electrolux because shares are trading lower you can see to the tune of 12.4% after general electric terminated its agreement to sell the appliances business to the swedish firm. ee electrolux says it scrapped the $3.3 billion deal but it's the u.s. department of justice that's been investigating the proposed sales since july and has rejected it made to gain approval. electrolux will pay ge a breakout fee of $175 million with the swedish company earning fourth quarter earnings will be impacted. susan and carol, shares up 32% in line with the 12.25% decline. >> still today is the worst day
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in years after ge called out that deal. more than 2.2 billion shares have been there. that's according to some stats that i'm seeing on thompson reuters here. also, monday slump wiping off the year to date gains in shares on track for a five-day losing streak of 6.3% year to date. the problem is why did electrolux want to buy this appliances business from ge? because they wanted a greater footprint in the u.s., because they wanted less exposure to europe where growth is obviously somewhat slower than it is in the u.s. so what happens now, now that they don't have this exposure? morgan stanley on the wires that this deal termination removes this opportunity for electrolux to strengthen its position in the u.s. and to meaning fll enhance its earnings profile. >> yeah, not good news. >> i think it's on anticompetitive bases. do you cook at all, will? >> occasionally.
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>> so if electrolux actually bought out the ge appliance business, they would be selling two out of every three ranges sold in the united states. you know, for those who want to own their kitchen, do they only want electrolux appliances? >> i think people care about the brand, though i'm not an expert on purchasing kitchen wear. >> tell us more. >> it all comes down to prices. does it see a boost in prices? interesting to read the writeup saying that the competition commission is expecting consumer prices to rise 5%. i'm not quite sure how they come to those figures. yes, it would have given a big u.s. market share. when the story broke weeks ago people seemed to think it was going to get approval. this turns out as a negative surprise and lots of costs attached for electrolux with breakup fees and the like. >> you have to wonder what it means for cross border mergers whether they're going to come in and discover any deal that would
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be perceived as having more pricing power for some of the rivals there. is that avenue still open for many of the europeans who want to get into the u.s. market but then are considered at risk of controlling it? >> ge says it's still up for sale, their appliance business. they're looking for a sale still, obviously a buyer. >> do you think a european buyer would come back in? because the d.o.j. would skufr that again? >> does it have to be a european buyer? why can't it be a chinese buyer or someone else. they'll wait for a suitable buyer. the u.s. president barack obama in the rare oval office address, only the third in his term. he vows that the u.s. will overcome a new phase of terrorism. on sunday night the president says that it's clear that the two shooters who killed 14 people in california last week were radicalized but there's no evidence that they were directed by a terror group overseas.
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he says the u.s. muslim community needs to be a partner in the fight against extremism, that the west is not in a fight against islam. >> our success won't depend on tough talk norah ban doning our values or giving in to fear. that's what groups like isol are hoping for. instead, we will prevail by being strong and smart, resilient and relentless, and by drawing upon every aspect of american power. >> president obama also calling on congress to make it harder for mass shooters to buy guns. he says the u.s. and allies are stepping up the fight against isis working to cut off the group's financing. the president also urging silicon valley, by the way, to address a threat of militants using social media sites to plan and promote future violence. meantime, british security services are treating a stabbing incident as a terror attack. two people were injured after a knife wielding man attacked and threatened a number of
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onlookers. witnesses reported hearing the alleged assailant cry out, this is for syria. the attack occurred days after the u.k. commenced airstrikes against isis in sir yeah local police armed with tasers subdued the attacker who has since been named as 29-year-old mohayden meyer. the head of google's venture capital arm says tech startups are waiting too long to go public. he tells the financial times some may roux their decisions to push for higher valuations than doing a hyper ipo. bill says they're setting the bar too high and many will be able to raise more cash or be forced to accept low valuations. let's get out to nancy at tech crunch disrupt. nancy. >> reporter: thanks for that, wilford. so much of that at the conference at disrupt is how to
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emulate the success models in silicon valley. my next is the chair of sequoia capitol. you've been in this industry for quite some time. you tally public valuation over $1 trillion. i want to get your thoughts on whether tech is facing a bubble environment. from where you sit in silicon valley that the appetite is waning? >> these things come in cycles. in the last 15 years or so about $2.1 trillion has been developed by companies that didn't exist in 2000. a lot of companies will fall by the way side, the next 10 or 15 years over that period should be pretty good. so our appetite for young startups is energetic as it's always been.
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>> but you still said as you mentioned some of these companies will fall by the way side. specifically, do you have any names that should be on the watch list? >> i'm not going to do that to anybody. i think it's way better to look at some of the really distinctive companies in today's era that will be wonderful, enduring companies, companies like uber or air bnb. i'm much more interested in looking at the future. >> looking in terms of future, another area of concern is the disconnect between the private valuations and what companies can achieve at the public level. is it fair to say that the ipo is the new down ground? >> that's a nice way of putting it. like everything, it's not a universal truth but the public and private markets have a way of adjusting and over time they'll come into equilibrium. some private companies obviously in their private valuations have been priced above where today's public investors are prepared to
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price them. >> is it fair to say that some of these conditions will compete for safety in the private world? >> it'll be both. it'll be whatever makes most sense for them. the companies that are profitable and -- or will very soon be profitable and poised to go public i would imagine will try and become public companies and those that still have got to shape their business and show that they have a sound and durable business will stay private. >> and one of these companies widely speculated on to be on that public trajectory is air bnb. you have been an early investor in air bnb. now over $25 billion, there is still some risk to this company, primarily being the regulatory risk. at the moment they're still facing some push back from new york city regulators. do you think they're properly discounting them? >> well, sequoia, as you mentioned, was the first major investor in air bnb.
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it's a wonderfully positioned company. they published a report last week showing that it's only a handful of abusers in new york city and it's a company that's been passively embraced by both sides of their equation, the hosts who are opening up their homes to people and consumers who just love the air bnb experience. so it's a very major company in the making. >> talking about some of the other companies you've experienced in your time in silicon valley, you've now written a book called meeting with sir alexander ferguson. if there was just one, who would you say is the most outstanding leader you've worked with? >> i'm not going to answer the just one question, but the remarkable thing about talking to sir alex and looking at the leaders of the really distinctive silicon valley companies is even though they're a world apart, all traffic
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matches from the united to silicon valley and technology. the distinctive hallmarks of the great leader are the same whether you're in coopertino or mountain view or manchester. >> bearing that in mind, you also were an early investor in the '90s in yahoo!. yahoo! arguably one of the companies in focus when it comes to leadership. is it time for marissa meyer to go? >> well, again, you're right, we were the very first investor. there were only three people in the company when we invested in it. i haven't been on the board of directors of yahoo! for a good, long time, and that's a decision the board's going to make, not pundants like you and me in this particular case. >> when it becomes such a public discourse here about the question of leadership, is it fair to say that it is -- >> the interesting thing is it's the same sort of speculation you
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get about companies -- companies in silicon valley as you do about the managers of some of the premier league football clubs who have had a few losing games here in england. >> and marissa meyer, of course, just one of many successful women who have risen to the top ranks of silicon valley. you've been caught up in a very emotional debate about the role of women in tech and you've argued, in your defense, that it's more of a supply issue than demand. we're talking about the lack of qualified women. what's the solution? >> you're exactly right. there is a -- there is a -- there is a big supply problem and it's a problem that the venture business has. the whole world of technology has. both would be a lot better off if there were more women in it. >> all right. let me get a question in from the studio from susan. >> sir michael, it's susan here in the studio. i want to broaden the discussion
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to talk internationally because you've found a real winner in nushun in sequoia capital, inbe vesting in j.d..com, sir michael, with this ongoing slowdown people think it will be hard to exit some of these names in china. >> china, as you've pointed out, has been a great place to be there. we've operated there for the last 13 or 14 years, and i'm delighted that we made that decision because one of the things that you didn't mention is that there are going to be more and more connections between u.s. technology companies and chinese companies with companies like air bnb, linked-in and others going to china. and the same thing is going to be true in china as in the u.s. if the businesses are really sound, there will be no issue having, you know, what you're calling exits. >> and, sir michael, if i could just follow up on that one. looking at the flow of sequoia,
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really questioning it for china and other venture capital firms, what would it take for sequoia to build up its presence in london? >> europe is much better positioned than it was 15 years ago. we have now several investments in europe in pretty interesting companies in connor, metta switch here in london, and it's all a question, we can only do so much so the more business that develops in europe, the more we'll be. >> do you see opening an office here in london? >> we'll have to wait and see. that's for sounder, more balanced minds. the people running sequoia day to day, that's for them to make up -- they need to make up their minds on that. >> thank you. there you have it, that is sir michael morris, chairman of sequoia capital. he was highlighting one of the success stories in the startup is clarna reaching the unicorn
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status. we'll be speaking to the ceo of clarna. we'll also speak to the ceo of snap fashion. >> nancy, thanks very much for that. you can head to the tech transformer special report page. that's on the website from all of the coverage from disrupt london and, indeed, plenty more from the world of tech. cnbc.com. still to come, french voters go to the polls for the first time since last month's deadly attacks in paris. we'll bring you the results after a short break.
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there is an uneasy calm in financial markets according to the bank of international settlements, the b.i.s. the agency saying that investors are very sensitive to the actions of the world's major central banks and warns that a tightening cycle by the federal reserve could reverse the current situation and possibly expose vulnerabilities in emerging markets. this is dollar denominated debt rose to nearly $10 trillion in the second quarter which they say could trigger panic when it comes to e.m. borrowers. the ecb governing council intended to disrupt markets with its policy decision last week. according to a righters decision last week they felt that mario draghi raised the expectations
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too high coming into the meeting. the six-month extension to the qe program were therefore the best the ecb president could find consensus for. julia raised that point when she spoke to the ecb vice president last friday. however, he denied the governing council raised the expectations too much going into the meeting. >> one can never tell beforehand. it's very difficult to calibrate and fine tune that. what i can tell you is that what we decided yesterday was exactly what the board proposed to the governing council. so there was no change in what we proposed to the council. so we did what we intended to do. now we have to recognize that the markets got it wrong in forming their expectations, they did, indeed, add higher expectations that were there and that's why they reacted like
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they reacted. but that was not our intention. after our meeting in october we said that we would reassess the degree of accommodation. so we were talking about a recalibration of our measures. we were not talking about ever about new type of qe 2 or something like that. that's not what we were talking about. >> france's nationale has swept the voting. they're expected to win about 30% of the vote. let's get reaction to that from stefan. he's live in paris. stefan. >> reporter: good morning, wilford. they've been gaining gradually some support over the last five years with its anti-immigration
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and anti-europe policies. it obviously benefitted from the recent effects in paris with an increasing number of french people asking for more security and the hard line on immigration. speaking right after the election yesterday evening they claim that the political party was the only one able to defend the values of the french republic. >> translator: the national front is the only real national front because it is the only one to defend the national agency. it's the only one able to reconquer the lost territories. in clay we have retained 50% of the votes in the suburbs and it will honor the lost territories in the countryside. it, the national front, is the only party to defend an authentic french republic, a republic with only one vocation, the national interest, the development of french employment, the conservation of
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our way of life, the development of our tradition and the defense of all the french, especially the most vulnerable. >> and the second round of voting will take place at the end of this week. the front nationale is in position to take control of six regions out of 13 in france. it has never controlled any before. but for le pen, that's the ability to say that it can do it. that's two years ahead of the next presidential elections in the country. >> stefan, how good of a precursor are these? does one tend to follow another? slightly confusing this comes at a moment where president hollande's approval ratings have soared over the last couple of weeks to above 50% so is this a good lead indicator for what might happen in the presidential elections? >> reporter: there's no correlation systematically between the approval ratings of a politician in france and what he's able to get from them.
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for the first time since 2012 the approval ratings of francois hollande, and the attacks in paris. that's a good signal even if what we've seen in the regional election isn't nationally what we're going to see for the national presidential election. the fact that the front nationale is the largest political party in france is for sure a very positive expectation for le pen even if we can expect a republic can alliance to make sure that le pen will not rise to power. that will be in 2017. a lot of things can happen between now and the next presidential elections, wilford. >> what are the parties doing to block it, the republicans and socialists? what's their plans? >> reporter: the socialist party has said it will withdraw its
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candidates in the north of france and the south ever france where le pen are in a very good position to win this election. by withdrawing their candidates the socialist party wants to make sure that the left wing voters will choose the conservative party in order to block the front nationale from winning this morning. they're trying to have the same position in the field region but it has not been approved by the candidate in the east part ever france. nicholas sarkozy, because he's the leader of the party, he's counting this to win the election in the region. >> thank you so much for that, stefan. let's move to latin america and venezuela has voted in a new government. the country's opposition alliance has won a majority in
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venezuela's congress. they've been ousted after close to two decades in power and the power shift follows a deep recession in the country and a collapse in the venezuelan bulevar, the currency. we'll speak to the senior latin american analyst of ihs. that interview is coming your way at 11:10 a.m. central european time. still to come on the show, opec they say is like a tea bag. it only works in hot water. they're describing the international oil cartel. does it still ring true? we get the view of an oil industry expert. that's after the short break. don't go away. 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!
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president obama uses a rare speech from the oval office to vow to hunt down terrorists and protect america from a new phase of threat. >> i know that after so much war many americans are asking whether we are confronted by a cancer that has no immediate cure. >> off the table, electrolux shares sink after general electric terminates a $3.3 billion deal to sell its appliance business costing the swedish firm $175 million in break fees. big gains for the far right in french local elections as the front nationale wins in six out
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of 13 regions in what is seen as a victory after the paris attacks. >> translator: the people expressed themselves and with the people france raises its head. there is an uneasy calm in financial markets, that's the warning from the bank of international settlements which says a fed rate hike could trigger renewed panic in emerging markets. so we're coming off the best rally for the s&p and the dow since early september, so that's two months and counting. and this off a better than expected jobs numbers for the month of november. let's check in on europe and how european markets are kicking off this new trading week. as you see, we are up across the board really following the gains we saw led by new york on friday. let's have a look at forex markets. 105.5 is where it stopped. it peaked at 109.6. we've settled down a little bit
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from 1.096. we're at 1.0816. the euro softening by 16%. still markedly higher than it was this time last week. elsewhere, a bit of a movement in the aussie dollar softening by half a percent against the u.s. dollar. moving on. in a rare speech from the oval office, president obama sought to calm americans. >> as we've become better at preventing complex, multi-fas city setted attacks like 9/11, terrorists turn to the mass shootings that are all too common in our society. it is this type of attack that we saw at fort hood in 2009, in chattanooga earlier this year and now in san bernardino. and as groups like isol grew stronger amidst the chaos of war in iraq and syria and as the internet erases the distance
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between countries, we see growing efforts by terrorists to poison the minds of people like the boston marathon bombers and the san bernardino killers. >> for reaction let's get out to washington where nbc's tracie potts joins us with more. tracie. >> reporter: hey, good morning, wilford. we're already hearing from republicans and democrats. from republicans here on capitol hill, house speaker paul ryan says that the president's speech was disappointing and half hearted, as he put it, that there was no new strategy here. we're hearing from people like -- from the campaign trail, we're hearing from lindsey graham and from rand paul talking about some of the points that the president made in his speech. lindsey graham saying the president needs to change strategy here, that the strategy he outlined isn't working. rand paul says the gun laws that he wants congress to pass were in place for california but did not prevent this tragedy last
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week from happening. and so quite a bit of push back from republicans. really there was nothing new from the president in this speech. it was designed to reassure americans after that shooting in california which he now clearly calls an act of terror. >> yeah, that's right. paul ryan saying this is not a new plan. there's nothing new being reoffered. it's a rejig and a half-hearted attempt to defend the current tracie, what about the republicans, what are they offering? anything new? >> reporter: one of the things they're working on this week is the visa waiver program which the president mistakenly said was how tashfeen malik, one of the shooters, got into the country. it was a different visa program and the white house corrected that. there's been a lot of talk about the visa waiver program that allows people from 38 different countries to come into the united states without a visa. should there be more scrutiny? that's something the house plans to vote on probably before the week is out we're told.
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>> tracie, we'll check in next hour. tracie potts, in d.c. let's talk about oil prices. crude prices under pressure with wti below $30. there was no mention of a new production ceiling. steve sedgwick joins us from paris. you were at that meeting on friday in vienna. does it matter that we didn't get a production ceiling? that's a farce anyways. no one sticks to it. >> the fact that they dropped it, carolyn, has to be significant. i agree with you, it was farcical. you say you're producing at 30 billion, you've been producing at 31.5 million. you've been overproducing. suddenly you drop t. you don't talk about a level. you say we are producing what we are. it's semantics to say what it is. that's what the opec president said to me when we spoke to him
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exclusively on friday evening. it was a rancorous meeting. dreadful meeting. supposed to be four hours, it turned out to be seven hours. the wires got themselves all in a tizzy because they thought they had one bit of sourced information but it turned out to be the part of a much bigger bit of information. it was a farce in many ways. the net net is that they have carte blanche to pretty much produce what they want and that is potentially damaging for the down side for those guys trying to hold the price up and yet, and yet i think there are a few reasons not to necessarily go gung ho. and with opec producing full tilt and they're hoping to come back in full fashion in 2016. these are all negative factors. to give the other side of the coin, the opec strike is working in some ways. shell grew 1.2 to 1.5 million barrels per day between 2012 and 2015. it's stagnating at best.
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demand has picked up a little bit as well. so far year to date they're saying after the end of october chinese is up. shell production has halted. i think it's going to be lower for longer, low price recovery and they've pulled $200 billion worth of investment out. that's got to affect prices. the technical factor. we have a lot of shorts. it takes moderate news on the up side to get a bit of a short squeeze going on there. there are some potential issues. i'm not trying to gild the lily so to speak, but i want to even out. it was due to dreadful but there are a few factors that are stabilizing the price where it is now around 39.60. back to you. >> steve, thank you very much for that. as ever we discuss oil prices forever, mike rothman is founder of corner stone analytics. mike, very good morning for you.
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thank you for joining us. let's kick off opec and the opec meeting, was it indeed farcical? >> no, it was very similar. it was like a year ago. no agreement on ceilings. as most people should know, it's a saudi move to try to pressure other producers into agreeing on cuts. their idea is they can outlast everybody. no, the meeting was uneventful. >> does opec have far less ability to outlast people? >> the price of oil will go 25%. i would be very careful on saying opec is irrelevant or they don't matter. it's different in real regard to talk about, you know, the old days, the '80s where they could cut or dump oil in the market. at this point they don't have the ability to dump oil in the market. it's more about the up side risk that they cut. >> if they do have that power to move prices by 20% with a 3% production cut as you suggest, why haven't they done that?
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is the tactic they're pursuing the right one or is it the right one for saudi? >> it's ubrus. in terms of the saudis, they made a cut a year ago. this is when the great unwind started in the summer. when they went to other producers to contribute to those cuts in september, they were rebuffed. all of a sudden it became almost a personal attack on them where they're not going to do this all on their own. so it really has to do with them trying to get other producers to fall in line. the strategy from a year ago on their part, they thought would play out by spring. they never expected oil prices to stay this low for this long. they're kind of stuck in a corner. very to let the market self-correct so to speak. >> what tells you that is actually going to work in 2016 or 2017? if they were too optimistic going into 2015 hoping that it would work by march or by april but it clearly didn't, what tells you it's going to be different? >> so the way the oil markets
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work if you take everything and try to boil it down simply for people, there's three oil prices. there's a price that will destroy supply, there's a price that will destroy demand and there's a price that someone's willing to work for. cash operating costs for the industry are somewhere around $40 give or take. we've been at that level. the cap excuts and operating expenditure cuts that you've been hearing about have effects. it's an industry you can't star of capital and expect it to operate. next year, 2016, will be the first time i think in eight years that non-opec production will contract. talking about slower growth. i mean an actual decline year over year. in the meantime global demand has been robust. you have two lines that are crossing. now this is a general show and it's not meant to just be speaking to people who focus on supply and demand, but if you run the numbers, opec next year needs to somehow raise its production about 1 million barrels a day just to satisfy market requirements, which we don't think is going to happen. >> why is there an oil glut if
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that's the case? if you're saying there isn't enough supply from being -- basically being pumped by opec? it's only down 3% from the peaks in april. >> shale production is down more. the total production is down 300,000 a day but you've had growth in on shore, you've had a fairly significant decline in shale. data people don't look at. >> the u.s. is saying 9.3 barrels. >> total output. >> that's 3% from the april level. >> you said shale so we were talking about shale -- >> oil. the american numbers. >> other on shore, the gulf of mexico. shale production is down pretty significantly. you can't, again, starve an industry of capitol, well permits, not going to be in effect. the issue of having high inventories today boils down to what's happened over the last continue months which is opec produced 800,000 a day.
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stocks didn't build. the question is what happens when you go forward? what's going to happen in 2016? the way it looks to us is you will be short. literally the market will be in deficit next year. very unpopular forecast. certainly not consensus. it has to do literally with two things. total growth in demand and noneffect supply. >> do you think that could be the bigger effect than lack of supply? >> it has been, even people this year experts in the oil market they would have told you oil demand this year, 2015, will grow 700,000, 800,000. now they'll tell you it's growing 1.5 to 8 million a day. the number is closer to 8 million a day. >> your forecast for iran next year? >> iran, depending when sanctions get removed, which may not happen until the end of the year, we're not sure they can produce more than a couple or 300,000 barrels a day. very thick. we expect there has been damage to their reservoirs. if you were doing this in the early '80s you would have seen
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it after they had shut down their system for five months. they lost about 25% of their capacity. >> very interesting, mike. your average price target is what? >> don't have an average price. within 12 months we think oil will be at $12 a barrel. >> extremely bullish. >> thank you very much, mike. great to have you with us. japan's securities watchdog is recommending a financial regulators impose a record fine against car maker toshiba in response to an accounting scandal at the firm. let's get up to tokyo. we're joined with the latest. >> reporter: yes, toshiba's accounting scandal has recommended a record fine of $60 million against the firm and toshiba just held a press conference and accepted the penalty. the securities and exchange surveillance commission who had been investigating the scandal
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concluded that investors were misguided by toshiba's padded earnings. they put off the booking of past losses and ended up revising down its earnings by a total of over $1.8 million over seven years. the fine will be the largest ever to be imposed on a firm for an accounting-related violation in japan, but it's expected to have minimal impact on toshiba's earnings since the company has already set aside some $70 million for the penalty. unlike the case of olympus which faced criminal charges after padding its books in a management led accounting firm, many people think they will not take such actions against toshiba since it is likely to be difficult to prove the management team was behind the book cooking. even soto she be ba's woes aren't over and today 50 individual shareholders sued the firm in tokyo seeking $2.5 million in damages due to plunge in stock prices following the scandal. a similar lawsuit has been filed in the u.s. and more are to
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follow in japan and that's all from the nikkei. back to you. >> thank you so much for that. still to come on the show, google's head of venture capital says many tech startups are taking too long to go public. across the tech front conference in london for a direct response. that's coming up in a few minutes. 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. watson, i like you.
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the head of google's venture capital arm says they're waiting too long to go public. it may destroy private markets going public rather than doing an ipo. let's get a report from the tech front disrupt concert. nancy is there now. >> reporter: thanks for that, will. a big focus on what the successful startups do once they reach that level of exit, whether or not they stay private and attract additional funding or turn to public markets. there's a bigger debate trying to find early stage disrupters. everything from finn tech to wearables and fashion. jenny griffeth is ceo and founder at snap fashion. thank you for joining us. fashion is a very hot area,
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perhaps a bit crowded. why don't you walk us through exactly what snap fashion does and how it differentiates itself from other suppliers. >> snap fashion is a visual search engine. imagine you're walking past a window, you love something, get out your mobile phone and take a photo and we find similar things to find online. you match your shoes to your dress, match your bag and we go down that organic discovery route. licenses, technology and other players as well. >> some licensing out your technology to other players. talk to me about how crucial partnerships are when you look at scale and growth. >> yeah, i'm a big believer that partnerships are one of the biggest things you can invest your time on. for snap we license out technology to retailers, publications and we basically let them monetize their editorial content letting them use the tech. it gives us the scale annual gives us the benefit of the technology. >> you mentioned time, inc., recently investing in your
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company. when this happens automatically people start to think of potentially a buyout down the road. where are you in terms of how forward thinking you are in the exit plan? >> yeah, sure, i think running a startup is surreal. this is quite a big deal. it makes you take a step back as a founder what you really want. i think there will be a crossroads at some point for a lot of us where we decide do we want to grow the next big brand or do we actually want to sell and see the great potential in the startup under another company. >> under another company and how crucial is it for you to get this growth elsewhere in the united states, for instance? >> obviously great. you have that little window of time to disrupt everything and get your brand as big as possible. i think lots of us are quite objective. you have to put your ego to the side and see what's best for the company. >> when do you expect to be in the u.s.? >> we're launching one next year. >> how do you fend off competition from the establishment, let's say, retailers whether it's amazon or
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smaller retailers creating a product that rifles net fashion. >> i think competition is healthy. i try to stay focused on the end product. if you end up kind of copying what your competitors are up to it can be easy to get sidetracked. stay stubborn is my advice. >> in a lot of tech conferences we see women in tech or lack thereof. we were speaking to michael about this. in your experience do you think women are at a disadvantage trying to make progress in this world? >> i think you can look at it in two ways. i'm a female scientist so i'm quite rare. in that respect you can feel a little bit held back, like you have to deal with people's preconceived ideas about you and you have to break through that barrier. having said that, there are lots of opportunities so people can get to know you and your brand quickly. that's a huge advantage in the tech world. >> one more on the brand, you've been diversifying outside of some traditional areas in
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fashion. automatically you're targeting women and now you're thinking about men. tell us what you plan to achieve? >> we are launching men's wear. men share more than women. that's interesting to see. i think it's a nice market that hasn't been disrupted to date. hopefully we can make an impact there. >> that's jenny grace. all those styles you've been watching on the catwalk, you can now use snap fashion to find out where they are on the high street. guys, in a little bit we'll be talking ecommerce with clarna. >> nancy, both carolyn and i have been checking o you the the website. >> did you see anything that you liked or fit? >> too much that i liked. too much. >> was it the lace? >> particularly the floor length gowns. >> that's what you've been doing during the show? >> exactly. it's research. research. i'm shopping for my saturday nights. anyway, you can head to our tech
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transformer special report page on our website for all our coverage from disrupt london, possibly also some photos. no, i'm joking. cnbc.com. >> keep those photos come joog volkswagen has denied a press report suggesting qatar's government wants to have their union. vw says it's not on the agenda. meanwhile, vw is expected to release results from it's missions probe on thursday. shares in the company currently off by 1.8% in german trade. renault is drafting a proposal to reduce its power over nissan in the future in a move that could put it on a collision course with the french government. so the two car makers and the french states have been in a power struggle since economy minister used public cash to increase its stake.
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this would end the tieup if the french government holds too much sway and influence. the standoff is set to come to a head this friday when renault's board is supposed to decide on a response to the french government. checking in on renault's shares, we are up close to 2%. >> the french shipping company cma cgm has $1.61 billion. the privately held firm is an investment company 67% stake. the deal values it at $2.4 billion. nol shares have risen by more than 45% this year. they're up 1.6% to date. there is an uneasy calm in financial markets according to the bank of international settlements or bis for short. the agency is saying that investors are very sensitive to the actions of the world's major central banks and warns that a tightening cycle by the federal
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reserve could hurt the current cycle. the dollar denominated debt rose to $10 trillion. steve leaseman set this report on how economic conditions are changing ahead of next week's federal meeting. it has economists thinking that not only a december rate hike is in the bag but starting to think when the next rate hike will come. john riding of rdq economics says we think it locks them into a rate hike december 16th and another one in march. non-farm payrolls up 211,000. september and october revised up by 35,000. october now near 300,000 jobs. unemployment rate unchanged at 5%. average hourly wages up 0.2%.
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labor force participation rate up 2.5%. construction growth up 46,000. sign of strong housing growth. leisure and hospitality up 39,000. retail up 31,000. a second strong month in a row. and allaying fears that it grew 31,000 in retail. temporary help services declined 12,000 and mining down 11,000, a sign of the drag of lower u.s. oil prices on the economy. jpmorgan writing after a december 15th liftoff the fed will deliver four more hikes next year, but jeffries disagreed saying the combination of the diversions between ecb and fed policy along with the ongoing commodity price conundrum argues for a slow normalization process thereafter. so potential note, the labor force has grown by a large half a million workers with no change in the unemployment rate. this potentially backs up fed chair janet yellen who says there is a considerable labor
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market slack out there in the economy and would argue for gradual rate hikes. back to you. let's have a look at u.s. futures and see what we expect for the trade in the u.s. do you think they're up or down? i expect them to be up. asia was up and europe was up. bouncing back from the decline late last thursday. there they are, they're up 3.8 points expected for the s&p. >> you were right for once. >> even though it was a 50-50 chance. >> i know. still to come, how they want to tackle climate change at cop 21. we will be back and so will he.
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hi, everyone. good monday morning. welcome to "worldwide exchange." i'm susan li. >> i'm wilford frost. here are your headlines from around the world. u.s. president barack obama uses a rare speech from the oval office to vow to hunt down terrorists and protect america from a new phase of threats. >> i know that after so much war many americans are asking whether we are confronted by a cancer that has no immediate cure. off the table, electrolux shares sink after general electric terminates a $3.3 billion deal to sell its appliance business costing the

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