tv Street Signs CNBC February 15, 2016 4:00am-5:01am EST
hi, everybody. good morning. happy monday, welcome into "street signs." i'm louisa bojesen, your headlines today, stocks in europe rallied after the nikkei closes more than 1,000 points higher. japanese investors brushing off the poor gdp dates, in a dramatic rebound from last week's loss. here to stay, hsbc chooses london over hong kong, following a ten-month review. nearly a deal. orange could launch a take
overas soon as tomorrow with sells in paris sharply higher. and a healthy beat. exceeding expectations thanks to stronger drug sales. hi, everybody, good morning to you all. very glad that you're with us, fresh start to the week. a whole lot of volatility last week. we saw a whole lot of our asset classes being sold significantly back. the banking stocks were under a lot of pressure. this morning, it seems we're reversing. the stocks up. higher by 2.6%. it's curious when we're no longer led by the data. every now and then when we say we don't want to be but we are. from asia, by and large feeding through europe today as well. we'll talk about asia in a second. i just want to show you the equity markets.
ftse posted higher 2%. dax up by 3%. italian market up by some 3% as well. we had a strong close in europe on friday. steady gains, the ftse mib up by 5% on friday's trades we're continuing to see the gains across the board. now, european banks, i just mentioned them a second ago because we saw atrocious selling last week, if you're long in the market, that is. if you're short, that's great. a lot of you feeling the pain with the banking stocks being sold back a lot. often, 10%, 15% from many of these banks. this morning, we're seeing buying from the banking sector across the board. deutsche bank is very much in focus. they've been buying back their own bonds again after worries about whether or not their cocoa bonds are sustainable. and these banks also being bought back up again. both higher by 12.89% equal. what is it you that say when two
things are the same, as a child -- i forget -- a jinx or whatever. i was talking japan the fourth quarter gdp shrinking, missing forecasts which adds to mounting pressure on domestic policymakers. markets, as i said, shrugging off this date, the nikkei bouncing back from the losses last week to log its biggest percentage gain since september. at the same time, chinese exports slumped by over 11% in january while imports fell as much as 18.8%. a huge drop. that's been driving china trade surplus to a record $63.3 billion. pointed to a slowdown in the world's second largest economy. dan murphy is in singapore. he joins us this morning to give us a run-through pipe don't think we've met before, dan. good to meet you. >> good to meet you as well, louisa. thank you for having me. as you were flagging really
interesting moves through the asian markets. the nikkei is definitely the focus. the core focus, the dropping 1.4% in year in q-4. but the nikkei outperformed rallied 7.71%. the index finishing at 16,022. today, the prime minister shinzo abe said he'll take appropriate action on fx as needed that makes it the best performer in japan today. the index, if you take a deep look into what drove the index higher, it was the banking space. top exports, toyota nissan and honda helping to move it higher. and louisa, we saw chinese markets resuming trade art chinese lunar holiday. the core focus of the day was in data as well.
saw indexes falling in january but that bad news was good news for markets more broadly. the hang seng actually closing up 3.23%. the shanghai comp modest losses losing 16 points, 2,647. and the also losing 2.6%. chinese markets are focusing on what was the latest commentary from the pboc governor across the weekend. policymakers in china say there's now no basis for a continuing depreciation of the yuan. and that also helped to cap some of the losses that we saw from the mainland chinese stocks. also didn't damper the food across asia as well. before we saw good gains for the asdx 200. and green on screen elsewhere as well. louisa to you. >> thank you very much for that.
kit jukes next to me. we crossed out from dan murphy. i was thinking of kitt. in the studio here. i end up saying what i see in front of me. why are we seeing this complete ignoring of the data out of japan? >> i think because we've come back, you'll remember, the chinese were off for a week. we've had these soothing words from the governor of the pboc. but we've also got too many people on one side the boat. the bouncing market started on friday. the thing i hate about mondays, i don't know whether we're looking forward to the week ahead, or we're just redoing friday's mood. a good end or good start.
i don't know if i'm learning anything. the thing is here, a lot of bearish positions. now we're getting the snapback. >> what do we think of the yen? especially when we look at the mix and trying to define deflation? >> i'm curious to see how high the yen gets. economics makes the yen the cheapest by dragging it off to 120, close to 125. it's natural desire like anything is to pin back. we just pinned back very aggressively. now, the world stock is to see if we can get back to 120. the positioning is very long yen. if you wanted to intervene, now would be a good bet. >> i was looking over your notes that you sent. you talk about the good trades that you like at the moment. you talk about sticking with the
kiwi cad shorts for the time being? >> yes, i want to be short china. with all that we're talking about with china, the outgrowth and strength will remain. and the slowdown will continue. if i want to get optimistic in life, i think all will broaden out before the bounce and the canadian dollar will bounce before the australian one. the new zealand, too. >> you never know. stranger things have happened. you also talk about how and when to buy the russian ruble. when you look at some of the emerging markets and pressure that we've seen on the emerging russian currencies, isn't it way too early to get in, that we're dealing with all of this? >> in times of stress, i would like to why, ones where they don't have a huge currency deficit. now, the ruble is the one that's
falling pretty much the most in terms of value. so they're not gent on foreign capital inflow. we understand the problems of their relationship with the west. and, obviously, the very high correlation with oil prices. but, again, if i'm looking at why would i like to position early for oil prices forming a medium-term low around here and stable sizing, going up a bit, i'd rather buy the ruble than the mexican peso. yet it may be early but it's come down a long way. >> where does that leave us in euro dollar trade? >> euro is still messing around. i'm really hoping we get a closer look at 1.15 in euro to dollar. it will take a lot of data to refocus, the first question you asked me is when the fed's going
to raise rate, you'll have plenty of guests saying that's not going to happen ever. to get to that, for the euro to come down. this morning, the euro like the yen is a save haven currency. >> but if you think that the u.s. can avoid recession, why is it again that we're seeing the massive flattening of the euro curve? shouldn't we be reading more into that, should we be ignoring it to an extent? >> personally, euro curve tells me nothing that the bottom is affectered. in the sense that ten-year yields can go anywhere from 1% to 3%, as they move into the 3% range, 3% goes miles away. but when they fall, the very front can't keep up. so it keeps with the duration of the yield. i'm not sure that the yield curve itself tells me much, other than it's flatter because ten-year yields are falling
because of everything else going on. >> so, given that you're the first guest of the week on "street signs," if people are just tuning in, if they're weeks up very early in the u.s., what should people be watching for this week? what are you watching for? >> i'm watching before the stocks go down again, i'm watching to see concerns around financial stocks turn back. you know, i'm taking today's follow-on from friday's rally in risk, how far will that go, how excited we ed can we be about t. we've got gotten a lot of data. when we have data in the uk, if that breaks in the uk commonly, and is it slowing, and when will rates be cut, i want to be sure at that point. but mostly, i'm treating this bounce in risk sentiment with a huge degree of that. >> kit, thank you very much for joining us.
kit juckes, global strategy. now, in corporate news, the largest takeover of reed would be announced. shares in both companies trading higher. the telecon ceo recently said that the tieup with bouygues should shrewd by early march. shares in reccet benckiser, the tablet maker contributes to jump in sales. also says it expects revenue to grow by 4%, to 5%.
anglo-american is planning to close its jobs. as it miner prepares to report its biggest ever loss. the ceo is facing pressure to leave a turnaround at the company. but he's been criticized by some for selling assets at a time when prices are so weak. today, they're not so weak. higher by some 4% on today's session alone. but last three month, down around 15% or so. we will be speaking to the ceo of anglo-american, that's taking place at 9:00 a.m. cet. the ratings release for rio tinto on standard and poor's. due to weakness in commodities. you can e-mail us street signs
europe@cnbc. also directly@twitter louisa bojesen. nancy is not here with me. feel free to send us both tweets. . you can find us on facebook. i do have a page right now. head on there as well. >> now, head into the break, leo's oscar hopes resurrected after the hit movie "the revenant" dominated. also, yesterday may have been valentine's day. but the presidential candidates they weren't feeling the love. we've got the latest from this weekend's war of words. and kanye west's finances seem to be heading south. find out why the controversial raerp could be falling on tough times. more to come on "street signs." good morning, everybody.
signs." the ceo of alliance trust kathryn garrett cox is to stand down next month by mutual agreement. chairman lloyd smith said that the trust is implementing changes which are designed to enhance share shoulder returns. in other news, hsbc shares they've been trading in the green after deciding to keep its shares in britain followed by a vote by the board. now it will be there to be relocated to but expectations have been weighing there over months partly because of a slowdown seen in china and worries of beijing's influence over hong kong. in a statement, london is daelly
positioned to be a home base for a global financial institution such as hsbc. but still want to stay in london. peter lassen is here from hong kong. peter, good to see you, i note what you've written in "breaking views" talking about how they risk pleasing nobody by staying in london. why do you say this? >> well it's really two things, louisa. first of all, we've had this ten-month review, incredibly detailed. lots of discussions, lots of speculation. they look sat 18 different cities begin with and narrowed down to five then finally settled on hong kong and london. at the end of it, they're staying. people in london will say, what was this, is this all just a game of bluff? that we find ourselves in a position that the bank was reduced the leverage that the bank was complaining about that they were never going to go
anyhow. at the same time, bank of china is saying, wait a minute, are you saying we're not good enough and a big snuff? yet, you still have your business in hong kong. so, there is a bit of a risk with this. there's a backlash on both sides of the world. >> peter, they only do something like 30% of their business in the uk. would it make a difference to them if we were to see a brexet? >> the brexet was one of the factor that was sort of raised as a possible concern when hsbc started this review. you might ask, well, that's still on the table, how can you be certain that you made the right choice now. actually, it's a bit of a complicated issue the issue for hsbc, the moment they can do business in europe as part of a single market and if britain
leaves europe, then they have to find somewhere else in the eu to do the business. they have to go to dublin or paris or something like that. in hsbc case, it probably would be paris. the discussion isn't about whether to put the headquarters in london or hong kong. even if they move the headquarters to hong kong, it doesn't really address the question of whether they view t the business in europe. even if brexet were to happen, it wouldn't affect the headquarters decision. >> then, we have the issue surrounding japan that we're seeing this morning where we've got this awesome rally in the nikkei. granted having been sold off as well last week. on the back of this data that was worse than expected. economics, do we believe in them any longer? >> is well, i think that's really what you've been seeing over the past couple of weeks in the markets that people have been questioning, the markets have been really stress-testing.
and today's rally, notwithstanding, i think there's really this question, especially,.two big achievements of ergonomics, if you like, to push it down which has helped in japan to boost its corporate profits. the hope is to lead to japanese workers getting higher pay rises in the future. although we're still waiting to see that come through. the and the other big thing to push up the stock market. they're looking at it as a barometer of confidence. hoping if the markets go up, you get the animal spirits going and you get investors in the bank moving it from out from under the sofa or wherever they're keeping it and putting it in the market. what you've seen the bank of japan was unable to keep the yen down and also the stock market crumbled. so, we're seeing a rally today.
the yen is back down again. the market is up. so i think there's this question of whether or not japan can control the markets the way they've been controlling it in the past couple years. what happen kind of expectations that has for the whole ergonomic portion. >> are we thinking that negative interest rates might not work. we're glancing at japan as many other central banks in other developed markets are cutting negatives? >> it's clear as a sort of shocking, you know, kind of waking everybody up and causing another selloff in the yen device, it doesn't work. i mean it worked for one day. and then everybody went back to the end. the specifically, the bank of japan is kind of pushing against stronger headwinds from the rest of the world. there is sort of this instinct that people buy the yen as a safe haven when things look bad in the rest of the world and
there's not much that the bank of japan can do. i think the interest rates in bank of japan has been an overreaction, particularly in the bank shares. really, the impact on bank profits is not as great as some of the sort of 20%, 30% fall in the bank shares that we've been seeing but i think what you can definitely say that as a tool for recessing expectations, for shocking the markets, for driving down the yen it definitely hasn't work. >> peter, before we let you go, you're based in asia. have been for a while now. what do you think is driving the market turmoil now. you talk about the banks shares being sold off. a lot of us questioning whether they're unjustly being sold down. what do you think? >> well, you know, since the beginning of the year, we've had any number of culpability. we started with china, people were looking at oil, then negative markets, negative
interest rates. the bank worries about bank exposure, et cetera, et cetera. it seems like there's any number of reasons for the selloff. from my perspective, it's hard to point to any one of those things and say this is the factor for the selloff or new information that causes the selloff. it seems the view from here, it seems like what's really happened, we've sort of reached this end of the qe period from the u.s. and that is make people reassess and look for turning points in markets. and it's very uncertain, really where that's going to go. there are things you want to worry about, there are lots of things to worry about. >> peter, thank you very much. peter thal larsen, the asia editor at reuters breaking views. you're writing in, a bunch of you on twitter. @louisabojesen. saying no in asia today.
hope to see you on facebook. cable companies. they need to get their act in order, get themselves in order so you can see us in beirut. bae systems has selected charles woodburn as ceo in a newly created role according to reports. the manager's appointment puts him in line for the top job when the current ceo retires in 18 months. we're seeing shares of bae systems higher than 2% in markets. uk's hammersen has reported a rise in oil. we spoke to david atkins on a first on cnbc earlier, we asked him. >> we sold 200 million pounds of property within the last couple of months at around 9%, 10%, above big values. so it shows you there's a demand
there. we're going to sell another 200 million pounds of property this year. guiding people that will fall to mid-30s. the european equity markets, we opened in positive territory. we're seeing a bit of a rally across the board. the ftse up by 1.5%. the rally goes through to the ftse mib 3.5%. indeed that's mirrored across europe. the european banks coming back with a vengeance. keeping in mind the selloff we saw last week, the deutsche bank. worries about their cocoa bonds. back up to 1.5%. and then shares down by 13% initially after that revelation last week. and this morning, they're also higher by some 4.5% or so as well. they say they're unlikely to meet their rae target of 10%
this year, that is what 93 announced at the end of last week. ahead on "street signs," australian police, they make the biggest meth seizure in the country's history. there's a little bit of a twist. we'll tell you why the smuggling will have you seeing the word bust in an entirely new light. see you in a second.
hi, everybody. welcome back. you're still watching "street signs." i'm louisa bojesen. let's get you your headlines this morning. word stocks in europe rallying after the nikkei closes more than 1,000 points higher. japanese investors brushing off the poor gdp dates and dramatic rebounds from last week's losses. here to stay, hsbc choosing london over hong kong after a ten-month review. and a spokesman for orange
in france denies french media reports that a takeover has been reached. telecon shares in paris sharply higher. and a healthy beat, rickitt benckiser exceeding expectations thanks to stronger drug sales. welcome back, everybody. saw a lot of green here behind me. if i move myself, you can see for yourself as well that we've got a whole bunch of european markets. all of them, in fact, trading in positive territory this morning. so, buying back some of what was sold off last week. the ftse 100 up by almost 2%. xetra dax up by 2.5%. and cac up. and ftse mib up by 3.5%. now, we're of course, watching all asset classes out there at the moment, agency the moves have been hefty, whether you
look at fixed income or oil and crude oil prices. they are slightly lower this morning after that very sharp rise we saw on friday's session of fresh talk of an opec cut. telling reuters that the group is moving towards a consensus on how to deal with the supply glut. that scene out there, that's driven prices to multiyear lows. now record plane orders placed by the southeastern carrier, at risk due to recent volatility, low profitability and increased consumption. this according to the international air transport association. they convene in singapore, sri took a look. >> reporter: being a stakeholder
in the asia market is a strong concern. a huge tailwind for the industry is jet fuel. that's cheaper by about 40% since the beginning of the last year. but that alone may not be enough to fend off looming cuts. >> everybody in asia, indeed around europe, has taken essentially a pay cut. airlines are not adding to their caps. instead, they're trimming the number of aircraft on order. i think that's go to be quite an observable factor in singapore. >> reporter: but even with the prospect of cap ex cuts on the cards they're looking to asia to pump it up. >> china is having aspirations, even india is having aspirations. the key is the demand is driven by asia, asia-pacific.
i think that is what is getting the world gravitating. >> reporter: and now battling it out for asia's attention are the two big boyce in the industry, airbus and boeing. they fly into the singapore air show with airbus leading but the american company is leading counterparts in deliveries. the big squareoff will be in theed me-based jet space. that's where asian manufacturers are making their presence felt. the chinese 919 and the regent jets will be competing against the russians, canadians and brazilians. but with the global economy heading towards store speed, they'll have to make sure they're producing maximum thrusts to make sure it takes flight. sri jegarajah. the nikkei's makita is
there. e're still seeing gains in the equity markets. >> exactly. and it was a bit of a surprise. we'll talk about that later. starting with government figures released today show that japan's gdp marketed negative growth of an annualized 1.4% during the october to december quarter last we're. that was, as you said, worse than the 1.3 contraction economists had forecast. the largest factor that led to the drop was sluggish domestic demands which accounts were around 6% of the gdp. the consumer sales fell and warmer weather hampered sales of clothing. and demand for tvs and computers was weak. even due to the weaker yen, it has yet to reach the pocket of the average worker and boost household spending. expert is another disappointment, falls 4.9% after
lacking growth in the quarter. shrinking demand 24 china and other markets are to blame. the whole near, 0.4% so there clearly is a clear way to go to reach the 2% target. however, it doesn't discourage investors as the tokyo stock market rallied with the nikkei index soaring more than 7%. the rebound suffered a sharp fall. and with the yen weakening it also helped with the share dropping 10%. overall, investors remain cautious, since even a surprise move with the bank of japan below zero faileded to boost the stock market which signals there's a limit as to what monetary policy can do. that's all from the nikkei, back to you. >> thank you very much. joining us from asia. let's talk about more about what the asian moves potentially are doing to the markets.
robin griffiths chief strategist at the asian group. let's talk about the dow. >> there's the oldest, most famous index on the planet. and it shows it rolled over into a bear market which is a pattern below falling 200-day average. and the even shorter term average made it a dead cross with the 200-day ones. most recent list, it's broken by support. so it's in a bad market. after seven years in a bull market which is very long. it's now in a bear market. furthermore, 93% of all world markets have done pretty much what the dow jones does. there is a "but" though. you get lots of rallies in bear markets. the rally is not just a one-day or one-week number. this rally is going to be much better than that because indices
are so pushed down recently, they're ahead of themselves. and can rally right back to where they were, the debt cross and 200-day averages. which is quite a decent rally. in a normal year, you rally up to, say, may. this one is not going to last that long. you ask when will the top be, the wednesday, the 23rd of march after lunch. >> wednesday the 23rd of march after lunch? >> yeah, but that's a long rally. >> so why is it wednesday, the 23rd of march that the rally will stop? >> well, by then, i think we will have got up to where massive overhead resistance is on most charts. not just on the dow. and we'll run into that. and furthermore, the rally is caused by firstly, hedge funds that are short for profits for their buyers. a third of all stocks are down between 30% and 40% to value investors for the yen.
there are a lot investors thinking we're in a bull market and to prove it. once we get up to resist attentions, the hedge funds will be ready, willing and average to put shorts on and still in the bear market. and the final low of the bear market isn't even this year. it's next year. but this is a good rally. and i think it will surprise a lot of people. >> you say it has the potential to retrace half of the 2009 bull run? >> well, the high was -- yes, it does, absolutely. >> which would be a very strong rally, though? >> well no, the rally can retrace half of what we lost. and the bear market can retrace half of the market of the 2009. the longer term is it's a downside. but right now, it's quite a bit of upside. of course, as ait's a bear market rally what you should be doing with the rally is using it as a selling of opportunity.
and the sort of stocks that will hold out well are ones you can't live out. so, utilities, consumer staples, telecoms. and if you're to say with one of the big fang stocks withholding the market out, it's google. you absolutely cannot live without google. some of those other ones, the chance of telling you, you can live without them. they've got more downside risk. >> very interesting. gold. we need to talk about gold today. >> yes. >> i was completely caught off guard. you did this live facebook thing for the first time on the cnbc international facebook page last week, as i'm sitting there talking about markets, it's flying. >> flying. yes. the really big picture is from 2 250 an ounce, it's brought the base down almost 50%. but the short-term chart has
shown we've broken that downtrend. there's a base at just about $1,000. this current rally looks like it can at least get to $1,300. if we were to go above $1,450 i would immediately be predicting new all-time highs for gold. and i think eventually, you are going to get there. i think it's fair to say gold is not behaving like a commodity or pet rock. it's behaving much more like money than that. and people are buying it. because they're worried that it's being printed. >> i like that, expression of a pet rock. so, we think that gold is a little bit overbought then? >> the rally will go a lit higher. $1,300. then we'll see it pull back but not to battle low in other currency, it's already in a bull mark market. you just mentioned in the
chat that the bull market is bigger than normal? >> it's roughly double. the average bear market is a 25% fall fits into one year, frequently as short as eight months. but this time, we're collecting a seven-year bull market on steroids of qe interest rates. >> is there any reason to think that we couldn't potentially continue for another three years? >> well, the free market is holding up much better than the euro. japan, usa and india. those are the three that just might make a new high. but when i look at the u.s. inces, is not the dow jones and the s&p that could make a new high. they're old america. it's the indices which are new america, including stocks like google which have still got legs on them, basically. but just might make a new high. i wouldn't bet on it. i'd actually want to sell before
we get there. but a 10%, 15% rally is absolutely in the cards. i think we've started today. >> okay. so, if we go back to the dow jones industrial average then what's the most significant level that i should be looking at it? >> i don't think an exact level matters. but from there on out, up to 10% is with the resistance and the hedge funds will want to short again basically. >> very interesting. very interesting comments, robin. thank you. have you been sailing? >> i have, recently? >> well, in the south, south coast. >> very nice. nothing compared to all your transatlantic trips around the world? >> yeah, yeah. >> anyway, robin, thank you very much. rob robin griffiths chief stra
strategists. eight times across the atlantic? >> 11 times. a company spokesman has denied an agreement that says that tox are continuing. the french newspaper reported that orange could announce a take over of buoygues. you may have heard this, robin, he dropped his album but not the debt. the rapper entrepreneur, announced he's $50 million in debt. the man who once called himself god's vessel. has an idea, however, he's asked mark zuckerberg to invest $1 billion in his various ideas. i'd love for people to invest in my ideas. i've got loads of them. do you want to invest in my
ideas. i've got loads of ideas. k" "the revinent" have you seen this? >> yes. it's quite scary. >> the way i look at thing, i'm scared enough by the real world. i'm scared enough by wars and markets and things like that. i do not like to be scared by movies. but you liked? >> well, it was very realistic about how life would have been in the wild west. well, "the revenant" was the big winner at bafta last night. scooped up best film, best director and best actor award for leonardo dicaprio. now, if you haven't seen the movie, it is about survival, as
you say, robin. it portrays fur trapper hugh glass, who after being attacked by a bear is left for dead by his companions during an 1820s expedition, he then survives in harsh winter conditions and sets out for revenge. just something to watch before you go to bed on a tuesday night. another story that we're looking at, the australian police, is this pretty amazing. they've seized over 600 million pounds worth. 600 million pounds. is that like $1 billion u.s. dollars? worth of methamphetamine smuggled in brar smuggle ed in bra inserts and glue bottles. four chinese nationals they've been charged in their role in smuggling the 720-meter haul. people become very inventive when they smuggle stuff.
i'd never have smuggle bras. i don't smuggle drugs. coming up on "street signs," yesterday may have been valentine's day -- did you get all romantic out there? the republican presidential candidates said they weren't feeling the love. we got the latest from the weekend's war of words after this. you're watching "street signs," everybody. @twitter, louisa bojesen. and your symptoms have left you with the same view, it may be time for a different perspective. if other treatments haven't worked well enough, ask your doctor about entyvio, the only biologic developed and approved just for uc and crohn's. entyvio works by focusing right in the gi-tract to help control damaging inflammation and is clinically proven to begin helping many patients achieve both symptom relief as well as remission. infusion and serious allergic reactions can happen during or after treatment. entyvio may increase risk of infection,
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and greek riot police used tear gas to break up the construction of a migrant screening center on costs deeming that it would detour tourists. the five screening centers will be operational by the 18th of february. a fire broke out in india, in mumbai, the flames spread quickly forcing a temporary cancelics. the make in india week is gamed at boosting foreign investors. hundreds of thousands of people gathered to hear pope francis hold mass in a mexico city suburb known for high levels of crime and poverty. the pope focused his homily on the danger imposed bit devil. and he urged mexicans to resist the temptations of wealth and corruption. all right, everybody. let's get back to business. european equity markets this morning, they are loving it. we're seeing a rally across the
board but by no stretch of the imagination, are we managing to gain back what was lost last week where we saw significant downturns in all of the equity markets. and closed on friday with steady gains. ftse up around 3%. we're just adding ton those gains last week, otherwise, again, we've seen a lot of selling led by the banking sector, in particular. the u.s. markets, important to mention they're closed today for presidents' day. f for viewers in the u.s., hoping that you're still awake to be with us, but hoping you're taking it a bit easy this morning. now a partisan turf war began developing in the hours following the death of u.s. supreme court justice antonin scalia. the conservative judge that died at the age of 79. jennifer johnson of nbc news filed this report.
>> reporter: hours after justice scalia's death, president obama made his intentions clear. >> i plan to fulfill my constitutional responsibilities to nominate a successor. >> reporter: but senate republicans including the two gunning for the white house, say any nominee from a lame duck president will fail. >> the president will nominate who he wants. but the senate is not going to act. ted cruz is warning of dire consequences. >> we will see unlimited abortion on demand throughout this country. martial birth abortion taxpayer funding. no parental notification. >> reporter: just as conservative scalia's views often balanced the views. >> i'd like to have the person tailored to be just like justice scalia. >> reporter: democrats say the person nominated need to act responsibly. >> barack obama is president of the united states until january 20th, 2017. that is a fact, my friends. whether the republicans like it or not.
>> apparently, they believe that the constitution does not allow a democratic president to bring forth a nominee to replace justice scalia. >> reporter: democrats are also concerned the high court could be paralyzed with just eight members. jennifer johnson, nbc news, washington. >> now, nbc news reports the possible nominees to replace justice scalia include patricia millett and paul watford of california. the south republican primary is less than a week away. the latest gop debate was more vitriolic than ever. candidates took shots on each other. nbc's gabe gutierrez has a
report. >> reporter: after a moment of silence for justice scalia came the most contentious gop debate so far. >> they lied. telling lies. >> liar, liar, liar. >> reporter: the words liar or some variation were used at least 22 times. 13 of those by front-runner donald trump. and yet -- >> i didn't call anyone a liar. >> reporter: trump slammed by jeb bush over foreign policy and trying to fight isis in syria. >> it's light cuss to suggest that russia could be a partner that this. >> jeb is so wrong. >> while donald trump was building a reality tv show, my brother was building a security apparatus to keep us safe. >> world trade center came down. >> reporter: marco rubio trying to rebound from his last debate came to bush's defense, today blaming 9/11 on bill clinton's decision not to take out osama bin laden. >> that's what allowed al qaeda to grow and prosper. >> reporter: but the florida
senator slashed with ted cruz over immigration. at one point, cruz took issue with something rubio said in a spanish language interview. >> first of all i don't know what i said on univision because he didn't speak spanish. [ speaking in spanish ] >> reporter: cruz also pounced on trump for what he called the liberal's past positions. >> you probably are worse than jeb bush. you are the single biggest liar. >> donald has this weird pattern. when you point to his own record, he screams liar, liar, liar. >> reporter: striking a different tone. john kasich. >> i've got to tell you, is this just crazy, huh? this is just nuts. okay. geez oh man. i think we're fixing to lose the election to hillary clinton if we don't stop this. >> reporter: but tonight, there seems to be no stopping trump. >> i think it was probably my best performance. >> reporter: in a state where politics is a contact sport.
well, almost a third of british and german companies operating in the uk would consider leaving britain in the event of a brexet. that's according to a survey. the findings are expecting to ramp up the pressure on david cameron who is at this weekend's summit. with the policy on europe. hi, nina. >> hi. >> good to see you. we're hearing that a third of british and german companies operating in the uk that they will consider packing up and leaves if we were to see a brexit. it's become more real for companies. >> well, certainly, all the polls show that the lead campaign is certainly doing much better than expected. for these companies, they have to make contingency plans. nobody really knows what will happen. having said that, i will add the caveat, it's a german foundation, any foundation where
they find findings like this might be slightly skewed. >> that's very true. what do you think is going to happen at the upcoming summit? are we going to see cameron push rege forms? >> cameron's already laid out reforms that have circulated that he's got something in each of those baskets. now, the question remains what are the details going to mean. i think eu leaders know that it's serious. they're doing everything to try to give cameron something because they know the next chance for him is selling that package at home. >> i spoke to the former tellian prime minister last week michael let that. do you think there's a risk that they become confused. >> the whole intra-eu crisis is
confused with the crisis. i think the fear is people want to remain. another summer like the one we saw last week which looks likely to happen could shift public opinion to leaving here in the uk. >> nina, thank you very much for being here. policy analyst from open europe. thank you very much for all of your correspondence. lovely hearing from you. we are on twitter @louisabojesen. on facebook. that's the new thing and e-mail too. that's it for today's show, i'm louisa bojesen. "worldwide exchange" is not up any longer. we've got "street signs" up for you tomorrow, same time, same place. we're handing you over to the u.s. for continued coverage. we'll see you very soon again. the future. reflexes faster than the speed of thought. can a business have a spirit?
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the president and ceo of checkers and rally's, the world's largest double drive-thru chain, poses as a failed business owner, competing to win a fast food franchise. - i'm alex garcia. - all right. announcer: by working on the front lines, he'll see what it really takes to make food fast. - you can't leave those people on hold for that long. they waiting on you. [horn honking] - pow! - mark, how do i do five chicken bite boxes? [laughs] i am dying. announcer: and for the first time ever, a boss will be forced to do something so drastic... - right here, right now, we're gonna shut the restaurant down. announcer: ...his company will never be the same. - [crying] i just wanted to work. i just need a job. - so we're losing our jobs? - [crying]