tv Street Signs CNBC January 25, 2016 4:00am-5:01am EST
♪ good morning. and welcome to "street signs." let's give you a check of how the european markets are playing. louisa, there was so much help with everyone taking a rally. it's a different story this monday morning. as you can see the stocks are 0.06 off, 0.65%. before we do that, we want to bring you breaking data we're getting out from the german index. it's falling with the ifo at
107.3. disappointing from the downside there, we look at the current conditions of the german ifo survey, it's about 112.5 and then from 112.8. overall, the climate from ifo is dipping below expectations. >> it's interesting, they're also saying stable supporting sentiments. just double-checking -- actually, scrap that. that's the last ifo. but the current one, you're absolutely right, the current one, we are seeing more weakness. business morale falling in january. that's basically the name of the game. >> and the comments that we've seen from mario draghi as the euro dollar there, up 1.083.
the let's get another look at how european equities are trading one by one. the ftse 100 up. and then the ftse mib up. and despite the strong rally we saw closing out last week. investors take their cue from the oil. we've seen oil prices moving lower throughout the morning here. after the sharp rally, we saw up some 10% on friday. again, it's reversing, you can see it's weighing on the equity side. >> up 4% in the price of oil. >> it's unbelievable. brent off by more than 3%. however, earlier there was a bit
of a balance on hopes that we were seeing a rebound in crude. again, that's not the story here. sri jegarajah is standing by in singapore. >> i have been trying to get my head around whether you save this rally or you chase it. and i've been of the opinion that you fade it. the volatility is not going away. this correlation between oil and the stock markets is still very tight and very strong. you'll see that play out in your markets. and i'll bet you it will play out negatively as well on all markets given the fact that oil has resumed its decline. the bearish fundamentals very much reasserting themselves. the fact here is a lost these major indices did not recapture key resistance areas. the hang seng did not move back
up. the shanghai is not back up. i think the writing was on the wall in terms of the duration and longevity of the rally that we saw today. but, let's not forget, it's all about central bank cutting back. we saw the reassuring messages from mario draghi last week. and it's always about the bank of japan as well, closer to our neighborhood. we do hear rhetoric, we do feel that the correlation between oil and the stops are very, very strong. this rally fades, back to you. sri, thank you very much. good to see you. >> hello, nancy. >> good morning. we'll be doing the show together. >> happy monday. >> we'll be doing the show together for the next long while. lovely stuff. as usual, you can get involved.
let us know what side of the fence you're on, sri talking about whether or not the rally is sustained or not. we're both on twitter. >> i'm @nancy cnbc. and i'm also there louisa bojesen. >> hello. what do you make of how fantastic everybody thought ahead of the session, we open in green? >> well it's no surprising, as he's said, the biggest two-day rally in many years. what i don't agree is how many markets are gent on the intermarkets. the index of the emerging markets, stocks, currencies, junk bond, other commodities,
they're practically identical to the oil price. so if you believe that the oil price is close and it will recover and the forecast of when it's going to recover, second half or earlier this year, then actually, it's quite bullish for markets generally. it's interesting, this morning, i don't know if you saw it, but they talked about getting back production. because they said what's the point producing. we're better off having one barrel at 50, than two at 30. >> but why are we following oil so closely, all of a sudden, as equity market investors? >> i've never seen this before. such a high correlation. i suppose what's happened is, when key metrics change gradually, then people can taper it. what's happened the oil price has capped by such an extent over the last months it's having
huge implications long term over sustainability of emerging markets. the junk bonds in the u.s. if it had been a gradual fall, these things would have kind of you know been able to be coped with. the drammatic fall of 75% blast in 12 months has left a dramatic effect. and, you know, we're always taught that the consumer benefits in low oil price but that seems to be a sharp reduction in so many different markets and it hasn't balanced. >> alan, you can't deny the correlation we've been seeing to the oil prices. but it's not just oil. there are other concerns. we look at the new year, despite that two-day rally, 9% to the dax and we've started to get reports out of europe last week. some of which were positive, a
lot of companies are still citing concerns over the outlet. >> i think so far in the s&p 500, 78 companies reporting. 75% of the companies reporting have reported earnings ahead of estimate. you can say there's a lot of massaging in the u.s. they tend to get a massage down so they can always beat it. what's interesting, they're still beating the forecast. with the sale, it's been 50/50. the earnings have been okay and the sales, actually, have been disappointing. there's still month-by-month reductions worldwide even if you take out the oil and gas supply. so, for example, in europe and uk, the average forecast for next year is reduced by about 1.5% over the last month. >> you say when you strip out the oil and energy sector
earnings. but there's specifically on the s&p 500 just the negative sentiment coming out of the earnings if that has ripple effects on other sectors? >> well on the ftse 100 with the with oil and gas, which is why it's had huge downgrades. you see today, the forecast of dividends from the uk market will fall slightly against last year. >> it's a big week. we've got the fed, the bank of japan as well. and towards wednesday, when they wrap up the two-day meeting whether or not we get hints to hiking rates. >> yeah. >> and some feel the bank of japan could be putting more stimulus in places as well, right? >> yeah. >> do you think they're going to take the stick back to the market, are they the wins to
lead the market? >> copy the super mario effect and give a positive state to the markets. i think more than likely, the markets there's going to be full interest rises in the euro given what's happened in the last eight months. so the expectation is two, and it may well fall back to one after the meeting. >> okay. thank you very much, alan miller, cio from scndirect.com. millions of people are beginning to clear up the damage from storm jonas which challenged at least 30 lives across the u.s. miguel al men gear had this. >> reporter: first responders struggled to reach a sick child. two feet of snow blocking access
in and out of many communities. it take ace team to clear a path. when seconds matter, they're losing minutes. even fire trucks need help from neighbors to pull away. >> it's been a busy couple of days. >> reporter: with deep record snow slamming the east. firefighters who can't find buried hydrant, worried they'll lose homes and lives. some 30 dead across the region from new york, to maryland and virginia, roofs are caving in, unable to support all the snow. >> there was also a fire alarm going off. >> reporter: with many out of patience, tens of thousands are still without power. 2200 members of the national guard now deployed across 12 states. help is on the way, but even fema can't find gas. >> everybody is out of fuel, so, we drove, i think, 27 niles find gas tanks and fuel. >> reporter: and some spots, it hammered down for an historic 36 hours. there were thundersnow across
the east and flooding on the coast. the headlines summed it up. slammed, buried, walloped. but didn't tell it all, records in central park, baltimore and parts of virginia. chris again hart can't get out of his neighborhood or even see out of his window. >> our second floor window completely covered in snow. roads a mess ith and sidewalks a disaster, now comes the rush to get public transportation back on track. travel bands are lifted but getting out of the house much less to work won't be easy. have you ever seen it this bad? >> not this bad. this is the worst. >> reporter: with government buildings staying closed and many cancels classes tomorrow, today many are hitting the slopes on capitol hill or in their backyard. this monster storm is gone and won't soon be forgotten. >> to be a kid, huh? they just be super happy, no school, playing in the snow.
coming up, we'll be heading out to washington, d.c. to see live how the washington capital is dig out from the snow. more details. and more headlines. twitter, the executives are flying the coop. and adidas is basically cutting short its $8 million sponsorship deal with the athletic association. we'll have the latest on that. and rouhani begins his european tour as economic sanctions finally fall out. on the floor! everybody down! nobody move! on the floor! hey, do something! oh, i'm not a security guard. i'm a security monitor. i only notify people if there's a robbery. there's a robbery! why monitor a problem if you don't fix it? that's why lifelock does more than free credit monitoring
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statement, the heads of engineering, product, media and hr have chosen to leave the company with ceos taking over additional duties. shares, you may remember, are down around 50% since dorsey returned as key executive in july. criticisms at times about jack dorsey taking on as ceo since he has the other ceo position as well. we have to see what happens when the stock opens today, whether or not it will be perceived as positive change or one more hail mary to really get the company going. so far, the changes he's put in have not taken effect. >> keep in mind, when he did come over, one of the stipulations he stipulated that the entire board had to be replaced. he said that already. we knew there were bigger management changes that were going to be taking place. the board includes now, edge
williams, one of the other big shareholders, so is there is speculation whether more people will be leaving the company. you're absolutely right, what needs to be done to turn it around. he also said it needs to be easier to use. some of the things he's done, they released things called moments. >> yes, i've seen the feature. i haven't used it. in fact when it appeared, i wondered what it was doing there. >> they changed the star to a heart. if you like a tweet. we hear the rumors that they're working on increasing 140 character 120s,000? >> yes. >> which part of me thinks, oh, that would be wonderful because it's so hard to write what you need to write in 140 characters. the other part to me is that that's the charm of twitter that you get things condensed. >> you have to know what it's meant. i think it means to give a
cleese message, but not just changes but who will be coming in to take over as well. and siemens has agreed to buy cd-adaptco. the deal is expected to be announced as soon as today. the acquisition is expected to be a clement to the siemens unit to focuses on software. a look there. a little bit lower. >> in the day, though, where the bottom market is now down 2.5%. not too bad from siemens. meanwhile, kingfisher shares targeting a 500 million pound increase in annual profits as part of its strategic review. kingfisher said the acquisition of the rival home base is there's no update. and manufacturer johnson controls is in advanced talk to
buy tyco national for up to $20 when. that's according to reports of the "wall street journal." johnson controls is looking to benefit from tax eversion after looking to relocate. now, adidas is ending its 11-year sponsorship deal with the athletic association. that's according to the bbc. the sports company is going to abandon it almost four years early. sources say that the deal was worth around $8 million per year. looking at it, again, an 11-year agreement. we're approximately 23 million pounds in total, it hasn't been confirmed yet. these are just reports so far. nothing is confirmed so bear that in mind. if it is confirmed, it's seen as
a huge setback for the iaaf. last year, the world anti-doping council put on a report that revealed widespread state doping in russia they said. last week, you also saw the iaaf accused a betting corruption at the very top. it just continues for them. >> and a big sponsor such as this proves that adidas is getting upset. but i also note how could that be adidas's component because they have other sponsorships like for fifa. given that the partnership did not bring in quite as much revenue as other areas. >> it's not like fifa hasn't been engulfed in scandal either. but the match fixing scandal rocking world tennis has taken another turn. and at the australian open,
sports bet said it saw heavy gambling take place on a relatively minor game and alerted police because of this. this comes as the former player pleaded guilty to match fixing charges. and hsbc announce whether it will be stay based in the united states. the board is expected to hold a two-day meeting in hong kong following a nine month review as to where the bank should be headquartered. sources say it's leaning strongly to remaining in the uk. let's look at how shares are trading off about 0.6% at this stage. and, louisa, we've been talking about this decision at hsbc for some time. there is a source that says they want to remain in the uk. but interesting to say just in davos said that the chance is they will be making a
last-minute appeal to hsbc to stay here in the uk. the government obviously still concerned however, you have to wonder if had hsbc got what they wanted out of this. a lot these do with taxes in making companies who have a large overseas business not quite as onerous. >> word is they put out an analysis, way too specific, move to asia to get lower taxes. it doesn't work that way. it has to do a whole lot with now income in britain is being taxed as well. bonuses, bonus structures, you know, the known benefits to that, according to where you live. it's a lot more complicated, actually if they do move, it may not be as beneficial for them as they initially thought. >> also, that may explain why some sources close to these talks say it might not just be the uk. it would likely be as onerous as
here in the uk. >> i wonder what the taxes will be when -- when i moved here 15 years ago, taxes -- it was beneficial to move here. it's no longer beneficial because of the other european countries. >> right. i think we'll be more standardized. >> probably. listen, just a quick heads-up, nancy, this next story stinks. i have to read the script very carefully. apparent list, carefully is -- yeah, what color -- it's a welsh cheese. >> i always think of the american wisconsin cheese. >> well, it's the residents of wisconsin, they just cambier it -- get it -- in germantown,
cheese has been stolen, the robbery comes three days after $90,000 worth of parmesan was pitched in a field. who could the culprits be? police think the latest incident was, quote, not a one or two person job. incidentally, what type of cheese does a small horse like. >> i don't know, louise, too early on a monday morning. >> mascarpone. >> oh. meanwhile, we'll have more on the cheese jokes, if you will, tweet us, bringing us your favorites on twitter. people are writing in about the storm. >> the storm, the big topic, we know especially in the u.s. coming up in the u.s. we'll get more details on the storm wreaking havoc. storm jonas, with cleanup details coming up.
hi, everybody. welcome back you're watching "street signs." i'm louisa bojesen. >> and i'm nancy hulgrave. these are your headlines. >> after the best two-day performance in seven years. senior executives at twitter fly the nest in a surprise shake up as ceo jack dorsey attempts to smooth the ruffle feathers. the cleanup continues after a monster storm drops record snow on the east coast leading to more than 12,000 cancelled u.s. fliekts. good morning. welcome to "street signs." well, if you are just waking up, we're going to give you a look at how u.s. markets are set to
open. there was so much optimism and enthusiasm closing out the week. the first positive week of the year for the u.s. and european markets yet, look at where we're at now. u.s. markets set to open lower with the dow jones industrial average, by about 80 points at this stage. and that comes as investors are taking their cue from the moves we've seen in europe here. we did get another strong set of gains but those have faded as oil prices continue to take a leg down here. let's take a look at the stocks here. the markets one by bun, the italian off 0.7%. the french off 0.4. similar to the main german market. the ftse 100 down 1.04% as well. the rebound expected but that is not the case today with gains anticipated after the two-day rally we saw after the week. a lot has to do with oil price. let's get a check of where we
are with brent and wti. we've seen losses on brent in the neighborhood of about 3%. that's a little better than we saw about 20 minutes ago. nevertheless, the oil prices continues to move lower. that's a similar star for wti, off about 2.67%. this after the weather ripping through the east coast gave oil price a boost. people looking at the fundamentals, not much has changed, we're back in the red. meanwhile, the fallout is gradually becoming visible in the norwegian economy. as you look at how the dollar is faring, up about 0.4%. louisa. >> nancy, thank you very much. iran marked its return from economic sanctions by entering into talks with europe's major plane makers in a bid. iran edging closer to dealing with airbus including eight super jumbo 8330s.
if confirmed the mega deal could be worth $20 billion. president rouhani is on his european tour in a bid to drum up trade. the board taking a trip to paris, and later on, also will be more in rome as well. nbc's claudio lavanga joins us. what do we open from this visit? >> reporter: well, louisa, the first stop four president rouhani will be right here behind me. about half an hour from now, he's expected to meet the italian president and the italian prime minister later on. but, of course, the most important meetings he will have apart from pope francis which is scheduled for tomorrow is with
business leaders. now, he is followed by the delegation of business leaders from iran, meeting with counterparts here doing a business forum at the hotel here in the center where they will try to discuss, and even start to sign deals for iran to going back and receiving foreign invests. rouhani himself said he needs $30 billion, to $50 billion in foreign investments. and now the sanctions have been lifted. and italy is the place that he's starting from. because italy was and still is one of the biggest trade partners in iran historically, before the sanctions they were doing great deals, of course. they have interchange and trade deals of $7. it's come down to $1 billion. but the big giants, they have relations going with iran hoping that the sanctions will be lifted. now, that they have, well, they hope to just go back to where they started -- where they left it from.
>> all right. well, claudio for that report. we look forward to the developments and announcements on trade deals that may be coming out of this visit. meanwhile, iran's oil minister said an emergency opec compheegt hit the oil market if no change is taken. tackling falling prices could have an opposite effect if there, quote, no intention for change. that's according to the iranian oil minister. we are back in the red quite significantly with brent crude and wti off about 2.7 and 2.8%. this is off a quick strong rally. we have optimism, but now we are seeing the gains retreat somewhat. joining us now for more on the news in the region is an economist from the middle east and north africa at barclays. alia, pleasure to have you this morning. we now have the iranian
president making his grand tour across europe, when we talk about oil specifically coming from the lifting of sanctions, what is the real deal? because there seems to be a lot of confusion over just how much oil is set for the market and what impact that will. >> well, of course, everybody, the in fact of much earlier than expected and the more impact that the authorities have been taking basically to ramp up production, it's been a major factor, basically weighing on markets. obviously iran's ability to pump more than announced 500,000 will be the key issue that we will be looking for. having said that, the other area that impacts that directly is from the ministry's message that you just mentioned, and that is the ability of key members and in that case, in particular, saudi arabia and iran to move their way forward in opec
meeting in political tension and heightened escalation of animosity between those two sort of oil giants, that that does not bode well for such an agreement anytime soon. that leads for more downward pressure in the absence of that. >> how much more downward pressure, though? haven't we already priced some of this expense, some of the geopolitical tension from the members already? >> that is partly the case in that the sense that downward pressures, we're still expecting that, as we're looking at an average price effect to $70 a barrel. but we see some of this pressure dissipating later in the year. but again, i think essentially, it will depend most on the
balance of supply and demand. and how much, in fact all if any of the major players will budge on the stance. it's very clear, in particular, saudi arabia, in particular, the geopolitical and economic context in the kingdom is already maximizization. >> you just heard them say they expect to recover in 2016, even if 93 keep production high, do you think that's in the cards? will we be able to see a real recovery in the price of oil even with saudi productions being at these high levels? >> i'm not an oil specialist, i'm a geopolitical analyst. but obviously, as we stand now, supply/demand balances is what is driving. and in the glut, that is what is preventing oil price revert. but also, the prolonged of the
pricing will hurt long-term production. and that is something that the oil marks are looking at for the meantime. >> alia, you've been taking a closer leak at what oil prices have translated into the economy. what do you expect, particularly, when you talk about the reforms due to be announced at the end of the month? >> i think what you have seen in saudi arabia, it's something that has surprised us all, most in terms of the boldness and the speed. and in particular, basically, the lifting of prices of energy product and looking for even the introduction of some refuvenue generating measures. and the nature of that in saudi arabia. having said that, saudi arabia has a huge untapped potential, basically, that could allow much
growth for the private sector that is not there. announced basically the attention to realize more than 26 sectors mainly in the infrastructure and social sector also could attract significant factors. but i guess, now what markets are looking at, particularly if you look at credit spreads and see some of it. basically markets are looking for actions, not talks. what matters is not the willingness to do it, because that's a must. but what matters is more the ability to implement these reforms. and markets have just enough patience to see how far saudi and other mineral exporters will advance on this. >> alia, thank you very much. economist for the middle east and north africa for barclays. i just want to bring you up to date with a couple flashes that we're just getting through.
the french president hollande is saying, this is by reuters, that they're prepared to strike against isis this time and again. that is coming through on the wires as well. the indian president and the french president speaking in new delhi where the comments were made. millions of people are beginning to clear up the damage from storm jonas which claimed at least 30 lives across the u.s. the stock market is expected to open as normal. a bit later, edward norris from nbc news joining us with the latest. edward, how are the cleanup proceedings faring, obviously, i see it behind you, but what is expected for the next couple of hours? >> reporter: well, the next couple of hours, i'm calling this the big dig. tens of thousands of people are dealing with the snow around the
nation's capitol. some places are dealing with 30 inches of snow. they have not yet been dug out yet. in fact, freezing temperatures is what we're dealing with here in the nation's capital. that's hampering some efforts here. they've had roofs collapse. the maryland governor has said hair in recovery mode trying to get the streets cleared. there are many areas from the suburb of washington, d.c. to the outskirts of new york city that have not been cleared. in fact, emergency crews are having to respond to 2 feet of snow at some points. in fact, yesterday, there was one crew that had to be dug out, one fire truck had to be dug out responding to an emergency. in the eastern shore of new jersey it's not the snow they're feeling with, but flooding. they have waist-high deep flooding in some of the neighborhoods as the storm on on during the surge for the
weekend. they're waiting for snow to be removed. so it is a slow effort, there's absolutely no timetable, according to all of the elected officials as to when all the streets will be cleared. reporting live in washington, edward lawrence. back to you. >> edward, thank you very much. edward is there live in washington. we were just talking about oil. again, we're seeing a dig drop in brent and wti. we're getting more from opec saying it's crucial that opec and non-opec members with talks to solve the oil problems. the iranian minister saying it wouldn't be help to have an emergency meeting unless they change. but they're saying that it's really crucial for the opec and non-opec members to come together and market. the market situation is jeopardizing investment in new
supply. down the road we could actually get into a problem where there's a lack of supply and see oil price go up. so with the comments, they want to see establishment in the markets. >> we've been talking about the storm as well. >> that's right. >> and alaska will be more than happy to take some of that east coast snow. i thought they had snow in alaska? >> maybe not. >> very late snowfall here in the alps in europe, right? >> yes. they would take some of that snow as well. we're talking about there's still a big cleanup, of course. but also finding room for fun, louisa. 36 inches of snow did bring smiles to some people's faces as you can see in washington. so-called snowmageddon, or snow
villa, means there's time for kids taking time to capitol hill. snowball fights. we didn't get any senators across the aisle there throwing snowballs. the snowball fight association even organized an official "star wars" theme called "snow wars: the snowball strikes back." >> it would be fantastic that every time it snowed they had to go out and play? >> oh, yeah, that's inevitable. with michigan weather, snow days were the best. >> i mean grown-ups. everybody go out and play. it might be healthier. speaking of happy, the happiest washington, d.c. resident apparently after the snowfall, chen chen. the giant panda living at the smithsonian national zoo. the pictures are phenomenal. the video posted on the zoo's facebook page shows the 18-year-old bear rolling around in the snow having an absolute
snowball. my goodness. it makes your heart melt. wilfred, this is a hard one to follow. the cutest factor, overload in looking at that panda and now you. so, talk about the fallout, wilfred. >> i'm glad you played my video earlier snowboarding behind the car in downtown times square. i have to say this time last week, i was skeptical that can would be quite as bad, people rushing to buy bottled water and canned goods. i would say it wasn't quite as cold as people said. it kind of felt like you were in a ski resort. new york city itself not quite as bad as some of the areas. travel chaos certainly has been in play for the last four days. get this number, 13,000 flight cancellations over the last four days. still a lot of the main airports closed again today.
new york city's main three did open yesterday. washington's opened today. but from massachusetts right down to georgia, it remains a lot of airports closed. and clearly, that has caused a great degree of disruption for travel. but, it was a lot of fun, overall, i have to say. please, week back to work today. people seem to be moving around the city again. perhaps the travel delays lift up. on the programming note, on "worldwide exchange" we've got thomas leftowitz. he downgraded it at the market turn. we'll explain those residence. and in particular, he says focus on the oil price for equity markets has become too obsessive. so, on a day when oil prices are rebounded -- or the last few days where they've rebounded, i wonder if it has any impact on
his output. guys, back to you. >> you're jinxing us now, all the snow from new york is going to come to us now. >> i don't know. thank you, wilfred, we look forward to that interview on "worldwide exchange." meanwhile, the denver broncos and carolina panthers have booked their tickets to super bowl 50. the broncos have won over the patriots. and the panthers won over the cardinals. paint manning will become the oldest quarterback to play in the super bowl. exciting times there, louisa. i bet you can't wait for your great super bowl party. i've got a good chile recipe for you. >> really. >> we were talking about this cheese story, the extraordinary amount of cheese stolen. you've been writing in saying
things like, sorry, simply too cheesy to talk about this. and george sending in some cheese jokes as well. what's what's the most religious cheese? >> you got me there. >> swiss cheese. because it's holy. how do you coax a bear down from a tree? you're not supposed to tell her? >> what does a cheese say when it looks in the mirror? >> hello, handsome. >> close. enough of that already. let us hear your favorite cheese jokes. e-mail us @"street signs" cnbc. also on twitter streetsigns @cnbc.
>> we'll get back to the market action in just a bit. a lot of disappointment with the red arrows on the board. also to come, we're looking at the latest in the big election race in the u.s. donald trump's money, has it met its match? we'll tell you what other big new york city mayor is considering a run for the white house right after this. with aches, chills, and fever, there's no such thing as a little flu. and it needs a big solution: an antiviral. so when the flu hits, call your doctor right away and up the ante with antiviral tamiflu. prescription tamiflu is an antiviral that attacks the flu virus at its source and helps stop it from spreading in the body. tamiflu is fda approved to treat the flu in people two weeks of age and older whose flu symptoms started within the last two days. before taking tamiflu, tell your doctor if you're pregnant, nursing, have serious health conditions,
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the protest left to one of the pivotal moments in arab spring. and michael bloomberg has considered a bid for the white house. a course close to the former new york may early said bloomberg will throw his hat into the ring if donald trump or ted cruz are named the republican nominee and bernie sanders becomes the democratic candidate. and hillary clinton and marco rubio have picked up the key endorsement. all right. as mentioned twitter is getting to replace four top executives. the according to tweeted statement, the heads of
engineering, product, media, hr, they've all chosen to leave the company. ceo adam bain and adam messenger taking over additional duties in the interim. shares in the company off by 50% since jack dorsey returned as ceo in july. the german lifting a bit lower. and tech firms apple and google are making surprisingly good progress in their bid for smart cars. daimler ceo said apple and google have made more change in economic progress than assumed. and one of the attendees about how tech is disrupting the financial sector. >> sea change and the risk at fintech. banks have saying with the regular industry with the
paranoid that companies can be left for much for the business. everyone wants to party with the new kids to get access, to get access to their intelligence and the staff. so i think it's down the corner at davos. >> fin financial services is a service that has to be delivered. the sorts of industries being disrupted by digital and technology, financial services would be high on their list. >> in davos, we all have of the news about the stock market and sometimes, in the long term, there's a lot of opportunity, tech, energy and the markets as well. a very interesting time. >> well, here in the studio, we're joined by michael tressco. good morning. glad to have you with us. >> thank you.
>> just comments about fintech, what do you think the main drivers are to fintech? is it simply traditional banks as we see them. do we think they're not doing well enough? or stumped by the red tape? or being driven by technology or all the technology including financials? >> i think it's as you mentioned, on the one hand there's lack of confidence in financial institutions following a financial crisis. which creates an opening for new companies. and on the other hand, you have emerging technologies around big analytics and of course, the problems of mobile that really creates a new breed of consumer that is asking for that existing to get over it. >> so, michael, we have the wholed in of disruption from the fintech company having the threat from the established banks but at what point has this become an opportunity for the established banks?
or do you see it as the banks look at the fintech players at somebody they want to team up with? >> the banks are looking at the threat and realize that their customers are asking for something different. the convenience, the speed via which they communicate with customers they're looking at ways to develop these capabilities. one of the ways is that process they struggle with. natural way is to partner with startups. the uk is a good example, it's a platform for s&p loans. and there are ways for customers to be thinking about that. >> precisely that point, when you hear about fintech, and i've spoken in that particular industry where they started an alternative bank, but they're not listed, there's a big difference between putting your
money with hsbc or seeking a loan and going with much smaller tech startups which is essentially what they are, they're not financials, they're tech startups? >> for sure. that's the opportunity for established institutions to build with these trusted bankers like you're talking about. but at the same time, startups want to acquire economies just prefer the advantages of the newer technologies, versus saying we're going with the establishments. so as they can get more customers they overi am do create the same brands. >> and when you talk about these companies, the fintech startups, what is the broader specter, is it payments, the robo advisers or car -- what is the most attractive from an investor perspective? >> the interesting part, as you
said, one, sort of a collection of subarticles. so payments and management are very different. and, two, these are all really big industries. so from a startup perspective, you're saying it's a larger opportunity. the way we think about it, a lot of these are exciting. as you mentioned the around the block chain which is a recent development because it creates a new technology market. we also look at increasing things like insurance that thus far have not been affected by this technological revolution. and coming understand pressure from really the same factors as the banks. >> michael, good seeing you this morning. michael treskow from about session partners. and we'll give you an
update, opec secretary calling on opec and non-opec members to solve the oil stocks. and we could see actually an underestimate issue going down the road as companies continue to cut back. meanwhile, we're getting comments from the ne ceo, the italian maker, he said if it persists, it will be extremely damaged. another concern where are around $31 a barrel. >> we'll be back right and teller. that's it for today. from nancy and myself. smart de. cloud is up. analytics is up. seems like everything is up except your budget. introducing comcast business enterprise solutions.
good morning. let's make a deal. johnson controls reportedly in advanced talks to buy tyco. the price tag could reach $20 billion. >> the big cleanup, the east coast digging out, airlines trying to get back on schedule. this after the second biggest storm in new york city history. and super bowl 50 is set. broncos and panthers will take lehigh stadium. it's monday, january 25th, "worldwide exchange" begins now. good morning, welcome to "worldwide exchange." on