tv Street Signs CNBC April 11, 2016 4:00am-5:01am EDT
♪ good morning, everybody. welcome. on "street signs." i'm louisa bojesen. your headlines today, italian banks taking center stage. rome will be finalizing its bad bank plans according to reports, to clean up the bank's sector sheets and lifting into the green. >> clouds rolling in as the first quarter sales will be slower than previously expected. the bollore boost, vivendi
plans to buy a tv business. and the uk prime minister david cameron on the panama paper leaks creating a task force. good morning, everybody. glad that you're with us. we've got a fresh week ahead of us, it's monday, of course, the european equity markets just slightly treading water at the minute. a little bit higher. recalling friday we closed on positive territory. you saw banks in the main sectors on friday. basic resources pulling higher as well on friday's session. and we'll we'll see weeding out in terms of friday's trades and of course, we're looking ahead to the banking secretary to what's going on in italy. we'll talk about that later on. meantime, let's show you the european equity markets.
most of them trading positive. ftse high of 100%. but the ftse, the cac, pulling higher. some of the smaller markets, denmark and switzerland, for example. commodities, whoo, what a move on friday. we saw crude soaring by more than 6% on friday, today, just coming down a tad from those massive moves. it was up something like 8% on the week. the contract, we saw big drops coming through in u.s. stockpiles. dropping u.s. inventories, dropping drilling. we're back to the 2009 lows on these particular measures. spot gold, 1249 at the moment. copper also higher by 0.3 percentage point. we want just want to mention bonds as were el. german ten-year yields on the left-hand side of the screen
there, 0.38%. that means we're moving closer to that 0.5% low that we saw a while back. we got bond payments and coupon payments pushing costs lower. be aware of this. we were talking about this on friday as well, but that's seemingly looking to continue the yields heading lower. let's get back to italy, though. italy's small lenders are rallying the italian treasury. the central bank will reportedly meet with the largest lenders with funds to tack bad loans. according to route gers, bad banks will have a maximum capitalization of 5 million euros. and the state company. italy's bank faces 360 euros in
bad loans. again, we'll be talking about the bad banks and what's going on there. julia caught up with the think tank's managing partner and asd him about the sector's problems. >> actually, this year, the italian banking system has been by far highly overestimated. if you look into the gross amount of nonperforming ones, you have quite a nice figure. we have the worst in europe in comparison to lending. so, that is a fact. we are one-third higher than european average, that's bad. but then, if you're going to look at the net figures, all relevant banks that have already amortized those costs. those eventual risks. so that is one fact which is underestimated, underevaluated,
in my opinion. on the other, i would like to recall, that if you take the simple comparison of the uk to italy, italy in terms of saving the banks across the crisis, the astonishing figure of 4 billion. in england, you have much over 1 trillion euro. >> the italian government have injected more money into the italian banks earlier than gross would be stronger because lending would be stronger. and actually the banks, more the medium size banks would be supporting the economy better. do you think that's a valid point? >> no, i don't think so. the entire amount of lending that banks offer to the production system in this country is over 800 billion. one of the largest in europe. and that decreased by approximately 100 billion from 2008. so, you can say, ah, that say
credit crunch, but that is also not necessarily true. bus the manufacturing decreased, the gdp decreased as well. so it was a physiological decrease in the overall amount of money. the system gauge, the banking system gave, to the private corporate sectors which it's in line with the statistics. so nothing was done before which is completely false that the italian bank, not lending money to -- they're not giving money to the bad pat of the system. we have a problem of long-term system ability of small and medium enterprise, that is an issue, much worse than the actual solidity of the banking sector overall. >> i said, stay tuned for expert opinion on the italian banks. cnbc will be speaking to the ax
partners. switching beers, the bank of jap's kuroda won't hesitate to take further steps. and sri is in singapore. good to see you, sri, renewed young strength? >> yeah, that's right. it doesn't look disorderly, though. i think that's the saving grace for the ministry. we talk about this level of dollar yen, 105, that really brings that enter veengs smack down the strength that we've seen in the japanese yen. but i think it's really about the velocity of the decline in dollar/yen. conversely the velocity of ascent of the japanese currency if the dollar. that matters because right now we see low levels in volume
difficult in dollar/yen, the decline in color/yen hasn't been disorderly. be that as it may, i think the really important story here is going to be what happens on april 28th. yes, mr. kuroda says they will not hesitate to introduce additional easing measures to bring about 2% inflation which has been proven very elusive. but let's not forget, bank of japan is running out of the road here. hsbc very interesting. the next step could be a very bold one. and that is could really escalate the level and scale up the level of outright equity purchases. they are calling for the current level, 3 trillion yen, on an annual basis to go up to 13. 1-3 -- 13 trillion yen. that would be unprecedented. broadly, it say very fragmented market. the inflation was quite in
demand in china, so that's given the market some sense to believe that the authorities have a little more room to maneuver, if they do need to bring about more policy support to consolidate growth. that's where we stand. back to you. >> sri, good to see you. >> good to see you, too. blackrock ceo larry fink has joined the big names warning on interest rates. not enough potential has been paid on the knock-on threats of the pose. he outlined how consumers might be forced to save more for retirement rather than boost that the central banks are hoping. the fund director has argued in a research paper that going below zero helps to stimulate extra stimulus and ease lending conditions. the other banks have adopted
these unorthodox policies. at the top of the hour, global research at hsbc, good morning. who do you think is right. blackrock and larry fink warning against spending and then you've got the. >> in 2012, the impact of living with negative yields how that was going to force people just like mr. fink is saying, that would force people to save more in the outlook of pension and the like. this looks to me to be the economic equivalent of the chocolate teapot. i think there's a number of different effects that i would highlight. not only does it -- not only does it have enormous impact in terms of funding and banks and
their ability to maintain the profits but also have impact on profits. i would argue that negative interest rates could easily be argued by deflationary policy and inflationary policy. >> should we be coming out of negative interest rates as quick as possible then? or because we've gone down this route is it too far to reverse and go back? >> this is the issue. this is like the intertemporal solution in terms of lower interest rates in order to bring up con sumption today. to say interest rates at 2%, 3%, the policy of getting there becomes very problematic. but focusing how do we get there. what you should focus on is where do you get rewarded for the type of risks that you're taking. i think that's a much easier question to answer, rather than how should we go about these
very difficult monetary policy discussions. >> i never thought about it as the equivaleconomic equivalent chocolate teapot. let's talk about the research notes that you put out and say the emerging market sentiment has improved over the past month. what's going on there, why do you think it's improving? >> so, i think there's a number of different factors. we've been arguing there's two places you want to add risks for six months or so and that's high yield money markets where you're adding on to your position. i think there are a few positions that have changed. first is yellen and the ability that they react towards the data. it's clearly much more -- there's much more less likelihood of a significant
dollar strength. and actually the dollar strength where you want to place your assets in emerging markets. and the fact that we've seen pickup in emerging market rates. but that has aloud consensus to move from a position that is deeply banished to something that where actually we need to take a risk. before i cut you off, what one thing that i think is interesting. so, i lot of people today are focusing on where do i get rewarded for this. so, just think about that. how much can yield to yield buy say, treasury markets compared to the variability of how much the yield is now. it's actually the market as a whole can only move about 0.35
standardization over the next year before you start losing market. in emerging market you have to move about 2. so it's a very different market risk premium or yield. >> okay. do you think germany is going to continue lowering the yields? going to revisit the 0.05 level of the low? >> so, actually last month, we took off our german ten-year position as we did the swedish. more than anything, we're moving into positions where we're getting appropriate levels of risk premium and that's in high yield and in emerging markets, rather than the developed market rates which don't necessarily strike you to be that defensive, as it is. >> okay. and last but not least, you've recently taken a position, gone long in japanese rates? yes? >> yes. i haven't been to a single
meeting this year without having a discussion about helicopter money. so, it's negative interests don't work, what's the next story? should we send out debit cards and allow people to spend whatever money is on those. whatever that may be in terms of helicopter money. and that discussion quickly goes over in terms of rise in expectation into japanese policymaking. that they're expected to be the trail blazers in terms of that type of policy. that should drive up real assets demand in japan. so taking a position in japanese rates, with the currency hedge, provides some level of hedge against expectation of policy. >> i'm feverishly scribbling as we speak. i'll tweet some of those comments. all of you out there, you can catch some of these on twitter.
thank you very much. have a lovely week. >> thank you. you, too. >> did you see the sunrise this morning in london? >> yes. >> pink all over it. quarter to 6:00. whoo, nice. vacation? >> no. >> say hi to the bears and lions -- not bears, lions. head of global assets at hsbc. you can find as you at twitter, @louisabojesen. on "street signs" europe. @cnbc.com. it's great to have you with us this morning. uk prime minister david cameron has become the first british leader to publish a summary of his tax returns. this follows protests over the weekend calling for his resignation in the wake of the
panama paper scandal. cameron will be addressing today on the steps he plans to take to investigate claims in the panama papers. this happening as he's admitted that he could have handled the affair better. >> facts are, i bought shares in a unit trust, shares that are like any other sorts of shares and pay taxing on them in exactly the same way. i sold those shares. in fact, i sold all the shares that i owned on becomine ing pr minister. and later on, i'll be publishing the information that goes into my tax return, not just for this year, but for years gone past, because i want to be completely transparent and open about these things. i'll be the first prime minister, the first leader of a major political party to do that. but i think it's the right thing to do. >> the european commission and v.p. he likens tax avoidance to
a cancer to be tackled. julia caught up with the finnish prime minister and asked him to comment. >> all of the production, especially if you're democratically elected leader or leader without democratic elections, you are a leader of the people, and you're playing with different rules than your own. even more damaging to the confidence. also at the same time, when it's a matter of confidence, it's a matter of fairness, it's a bad disease and a cancer of the market economy. a tool to create wealth and also the key positions of opportunity to distribute that in fair manner. but if there are different rules, if you're not willing to -- only willing to get the fruit, but you're not willing to take your life paying taxes,
then it's not fair and it's a cancer of the market. >> what about someone who appears to have lied to their people and say, look i don't have any association here and actually, i did make money from this? how should that person normally respond? >> i mean, there are legal procedures. and if you get caught on avoiding taxes, if so, there are legal procedures for this. but also, i think the public debate today will strengthen our moral, quote, in a sense to consider better work they are doing. and i think many countries are need of that policy. >> in the case of uk prime minister david cameron, if he's used a structure that helped him legally avoid taxes, should he resign as some people are
suggesting in the uk? >> i don't want to comment on any particular person because i don't know any cases that well. but more generally speaking, not only because of difficult economic time, but more generally speaking, we should consider more what is fair and what is right, not only what is legal. coming up on the show -- remember when we used to say do you yahoo!? well, do you yahoo!? maybe the daily mail does. find out why the uk paper might be eyeing a bid. also, failures during a financial crisis made risk management a likely area for disruptive companies offering alternatives. we'll be watching up with the co-founder and ceo of one of the fintech challengers we're on
hi, everybody, good morning. welcome back, i'm louisa bojesen. the uk's daily mail is considering making an offer to buy struggling internet business yahoo!. the newspaper's parent company told cnbc, quote, discussion, at a very early stage and there's no certainty any transaction will take place. shares in media set have been trading higher after vivendi agreed to buy the italian broadcaster, the deal at 800 million euros. on friday, vivendi agreed to take a half a million stake in the broadcaster. and a profit warning have
sent shares in s.a.p. in trade, citing a 13% drop in sales in its software license in the u.s. and in brazil as well. nancy is at the interne finance global summit in london. nancy, you're missing in the studio but great that you're there, i still think it could be called tech-fin, as opposed to fintech because it seems like the financial sector driving it. >> reporter: that's right, louisa, i often quote you across the tech circuit because more and more that is a trend that we're seeing, technology firms that are in fact disrupting the financial sector. when we talk about disruption, it's not just the banks that the tech firms are after. it's the whole host. joining me is the ceo is damian kilden. damian, tell me who you're
looking at looking for disrupt? >> we're not looking to disrupt any businesses. i think disruption implies a wi wi win-lose. >> does that mean you rely on the banks for your business then? >> some of the banks are customers, but businesses like credit suisse. >> what kind of due diligence does your company provide? >> it means intelligence. specifically for markets, deal and due diligence. >> you look at keys, perhaps if startups wanted to look at
potential clients for them on the one hand but you also do personal deals, as i understand. when you look at the moral uproar, the publicity around the panama papers this week, do you think your company could take on a role providing greater transparency, when it comes to individuals on the taxes? >> it's pretty cool because we actually were the first company to start this conversation back in 2011, we opened up all the general ownership is information of ftse 100 companies that led to the revelation of starbucks and google not paying tax. and it has snowballed into, you know, the opening up of the panama papers. >> so does this suggest, fine, we have starbucks, we have the corporates on the one hand having to come clean, if you will, more transparent on their tax information. do you think we'll see more demands going forward on the individuals as well? >> completely. i think more transparency all around is better for business.
more information that you have, the easier that it is to do business with counterparties. >> and just finally, you are an american here but running a uk-based company. when you talk about scaling your company, growing it, how concerned are you about the upcoming u.n. referendum? >> extremely, i think the brexit situation could be disastrous. one of the reasons the uk is such a great place to do business is because you can hire people from all over the world. and you really have extremely very -- you know, very easy country to do business in. >> all right. there you have it. co-founder and ceo of dudele. that is damian cammerran there. louisa, coming up we'll be speaking to the cio of rbis.
we'll talk about that. >> nancy, good to see. you. coming up here on the show, rise of the underdogs, bernie sanders and ted cruz both adding to their delegate counts over the weekend. more on the latest twists and turns in the u.s. presidential nomination race. that's coming up. keep your e-mails and tweets coming through. i'll read some of them out loud in a bit.
to "street signs." i'm louisa bojesen. your headlines today, italian banks taking center stage. rome will be finalizing its bad bank plan according to reports to clean up the sector's balance sheets lifting financials into the green. read all about it. the daily mail holding very early stage discussions regarding a potential tieup for yahoo!. but it's warning there's no certainty that a deal will take place. >> the clouds are rolling in for
sap. shares falling from the bigger warns the first quarter sales slower than expected. and uk prime minister david cameron citing to clear his paper in the panama papers link releases tax papers and creating a task force. but the scandal continues to widen. hi, everybody. welcome back. hope you had a nice weekend. we closed out our session on friday in positive territory across the board. u.s. markets today looking for a positive start, according to the implied open on the right-hand side of your screen. the dow up by just over 50 points or so. european markets this morning, recalled them higher. we're seeing most of the european indexes hanging on to the gains hanging on by 0.5%. the ftse 100 just losing a little steam within the half hour of trade. on friday, we saw very strong showing from the european equity
markets basically sources leading the way. and this morning, we're continuing to see the buying into the banks especially when looking at what's taking place in italy. italy's treasury and central bank will reportedly be meeting with the country's largest lenders today to discuss funds to tackle bad loans. according to reuters, the so-called bad bank will have a maximum capitalization of 5 billion uros. and the state holding company p pe perstitti.
i'm sitting next to an italian here. speaking to julia at the ambrosetti forum in italy, the prime minister said that the position on italy on its finances cannot be maintained long term. >> that's the reason why italy has good flexibility. and we have to assess the currentization this may warrant the situation but as i said, in general terms we cannot use most flexible year after year, because if you are not capable to put your public financing in order, then it's not a question of lack of flexibility. it's lack of effort. but i don't say that this is the case with italy. italy has done some significant changes, for instance, in labor markets, and they have started a public administration reform, civil justice reform. they are all the right things to
do. but there are still -- there are still true for maneuver, in order to stimulate the growth and business environment. >> david bend here is the managing partner of axiom investments you're actually not italian, you're french. but your italian is better than mine. let's put it that way. so what do you think of this potential for a fund for bad banks? i mean, is this the equivalent of the u.s. top? >> the u.s. top or what we see in spain for example which is the stakeholders which have been replaced to clean up the spanish banking sector. so, basic list, i mean, italy, the italian counterperformance has been undermined, one of the highest levels, around 20%. so it is clearly an issue for italy in pushing down this level
of lows. and within the reform of the italian banking sector which is essentially focused on concentration. because you have many, many banks in italy. and the market share is pretty low. with the italian landscape, clearly cleaning up the npo environment in italy. >> this is a better solution than forcing a fire sale of the nonperforming loans? some argue it's better just to get rid of them altogether. >> well, it's a very good question, the key issue for italy in the banking sector has been, i would say, the bankruptcy proceedings which are there are low in italy. in a way, it's not necessarily the fruit of the italian banks.
i mean, the situation is not a necessity to put it this way. so some renzi has pushed the reform of the bankruptcy proceedings in italy which now has been done to upon implemented. so if this reform takes place, it's going to change completely the way italian banks will operate from that perspective. so i would say, the way they're pushing currently, the reform and setting up this bad bank, in a way, it's something that is news. it will endanger much less your detailing banking sector having a one off, i'd say. >> the fire sale. >> yeah. >> how long do you think something like this would take? just glancing at the losses we've seen over the last year in the italian banks, many of them down by 50%, 58%, bmps.
the list goes on. before you have this restructuring in the regulatory reforms, are we going to have to see more selling? is this the time to step in and say well, we are seeing the sector being cleaned up, we could find value within the next one, two, three, five years? >> well, i think that's exactly the question. there are really two ways to do it. either the fire sale you were talking about, which would mean clearly additional capital increase. the way they're the nonperforming loans are accurately marked in the books of detailing banks would have eventually lower prices so capital increase, very clearly. right now, the way it takes place, it's really, i would say, a smoother process, which will protect value for italian banks, i think. and it will, clearly, when you look at banks today, it's very
low. so if the process is going properly and smoothly, i think we're going to get value in italian banks pretty soon. in terms of italy's performance, it's probably in the path of doing something good. >> do you think the government is doing a good job at protecting the retail investor? >> that's the last topic of mr. renzi, of course. well, if you see the way that the italian bank, the shelving of the italian bank, i think it's a main political issue and mr. renzi has no choice, really. the banks which are going to be under ipo, and they have clearly a lot of retail issues around that. very clearly, if mr. renzi doesn't reassure i would say retail and retail shareholding, it's going to be very difficult
to have the ipo, first. and secondly, there's a lot of savings in the transition to be, i would be a shoulder of these banks. >> so what do you think? do we buy the italian banks now? do we stay away until the ts are crossed and the is are dotted and the details have been laid out? is it too early to get back in? >> well, it depends which bank, clearly. we've always been very happy to be in some. and i think it might be the moment to step back in italian banks. >> presstiti. thank you, david, manager of
investors. thank you. negotiations from the ecb, imf and european commission have once again been burning the midnight oil and talks in the bailout until the early morning hours. athens is looking to lockout more aid. more importantly is the discussion over debt relief. the minister schauble says this is not an option. in the u.s., the race to the white house, well, bernie sanders came out on top at the wyoming democratic caucus on saturday, extending out his recent winning streak. on the republican side, ted cruz closed the gap on donald trump, after sweeping victory in colorado. meanwhile, t"the boston globe" has criticized trump by publishing a satirical cover. it prompted the gop hopeful to
hit back at the newspaper calling it, quote, make believe. tracie potts is in washington, the question being there, wisconsin, the little primary will it undo the republicans' lock on nomination, are we going to see any changes now? >> well, they're very focused after wisconsin, louisa, on new york, we're going to see almost all of the candidates today except for ted cruz. he's pulling third after john kasich in new york. so cruz has decided to move and focus on california which is the next big state. but donald trump and kasich are going to be in new york today. and trump is saying that the system is stacked against him after what happened in colorado. cruz swept all of the delegates in colorado including more than a dozen more over the weekend. donald trump insists that if he gets knocked out of the nomination that he should get it outright. he believes he should be able to do that. he tweeted that it's totally
unfair. meantime, you mentioned the democrats, hillary clinton, and bernie sanders both siting for new york. both claiming it as their home state. sanders has a new ad out now. really trying to focus on the fact that he was born and raised in brooklyn, new york. he's also now questioning hillary clinton's judgment, remember last week, was about whether she was qualified. now he says she has the experience but the questioned her judgment. meantime, hillary clinton has gotten backing from president obama on the fbi investigation of her e-mails. he says that the justice department investigation will be fair. she will not get a free pass but he thinks she will not have done anything to endanger the country. we'll see if that comes up at the democratic debate on thursday. >> what's the thought about paul ryan potentially becoming the republican nominee? >> kind of a long shot. at this point it seems like it's going to be a fight at the
convention between donald trump and ted cruz. paul ryan has backed off the idea of wanting to jump in and getting involved here. if we get to this convention and it's so split that they can't get a consensus behind anyone, certainly anyone including paul ryan could show up. >> tracie, thank you very much for being with us. tracie potts joining us live very early from washington. now, heading into break, the duke and duchess of cambridge, they've kicked off a tour of india. the royal couple played cricket with the sporting legend sasha in mumbai park. last night, prince william and kate they spent time with bollywood stars including a ashwararyan. and in sports, danny willett became the second englishman as jordan spieth suffered a
collapse on the back nine. the 22-year-old reigning champion spieth led the 80th masters field for over three days but a disastrous final stretch handed the win to willett who pocketed $1.8 million in prize money. that's one of these very strange switches at the very end where we saw the underdog becoming the overdog. on top of that, he had to surprise his wife on the phone and tell her that he'd won the masters, mr. willett. she gave birth just ten days ago apparently wasn't even going to go to the masters with the timing that it was supposed to happen and things like that. congratulations to him. coming out, out with the pinstripes in with the pin codes. pin tech is big business. find out why london is getting a big piece of the pie. we're live from the internet forum. you can find us on twitter @louisabojesen and
hi, everybody. welcome back. lots of you writing in this morning. keep your e-mails coming in. it's always nice to hear from you, "street signs" @cnbc.com. at twitter @louisabojesen. we've got what would be the implications be if opec decides to take the world market by surprise and a 1% output? i don't know, i'll ask our next oil guest here during the week. we did see a massive rally in the price of oil heading out of last week with the contract in in the states, up 8% keep an eye out on oil. when we have the next important oil meeting coming up. now, the ukrainian prime
minister has announced his resignation, blaming the president's party for failing to bring about, quote, real change. >> the terrorists behind brussels attack may originally have planned to strike france, that was according to the belgium prosecutor this weekend. thousands of migrants and refugees have broken through the fence between greece and macedonia with the release of tear gas by macedonia police. greece has controlled the measures used to control the crowds. at least 110 people have died and 350 remain injured after a fire broke out at fireworks display at a temple in southern india sunday. now, back to markets news. vedanta resources have more resources. it was reviewing its assets in
light of ongoing commodity price weakness. it was a big week for u.s. earns, alcoa officially kicking off earnings. is it earnings season again? we finally get through one and it's another. we've got a wrath later on this week. wilfred joins us from cnbc headquarters state side. alcoa once again on us, wilfred? >> that's right, we're back in the thick of it, kicking off with alcoa. late of focus as the banks join the earnings party. they've seen their earnings forecast downgraded almost unanimously during the first quarter which has led to the banks being the worst performing s&p 500 sector to date. down 7.6% compared to the broader market return of just positive 0.2%. there are two main areas of concerns, energy, capital markets and interest rates. the first is energy and what it
does to credit writedowns, give the start of the year that the energy sector has had, investors are much more focused on nonperforming loans than the final crisis. citi surprised negatively in november. and an expert said that wells fargo may be more exposed to this than you might expect for the more retail banking exposed name. the second area is capital markets and it's the biggest reason for downgrades this quarter. the absolute numbers will be pulled banks will be guide as much. with up to 20% declines already expected within this area of the bank's energies. third is the impact on retail and focus on interest rates. so the quarter itself will see a boost earnings.
25 basis point hike alone from december, adds to around $2 billion of incremental income for the full year. the fed hike is a positive for the quarter earnings but clearly analysts have reduced expectations for the full-year expectations. so those are the areas to watch in banks earning. we kick off with jpmorgan on wednesday and bank of america, wells fargo and citigroup later in the week. >> did you follow the golf over the weekend, wilfred, danny willett? >> i caught the last hour to see the brit come through to win it which is fantastic. >> you believe it. i mean, apparently, he learned to play golf in a sheep field. >> well, there we go. well, there we go. much more than i even did by going to golf courses. >> unbelievable for this guy. how old is he? he's 28, right?
>> he's 28. and he's had his first baby as well. he's had a pretty big week. >> his wife gave birth, a c-section ten days ago, he apparently was supposed to miss the masters because of, you know, the baby. he can't tell his wife i've got to go play golf while giving birth. then she had the c-section, and he gets back. >> look at that. he's 28, he's achieved a lot more than me. he's making me feel very old, louisa. >> that goes for all of us. wilfred, thank you very much. good to see you this morning. have a good show coming up which is starting about eight minutes in the states. now london has emerged as a key in the fintech sector. 60,000 working in the space alone. according to the group, $19 billion pooring through in
investment. and that's not a low number, 60,000. >> and right here at the global summit, they are celebrating the achievements but when we talk about the success among the disrupters it of course raises the question are they a friend or foe to the traditional banks? well, if you look at the banking executives, they'll tell you they don't want to eat our lunch, they want a seat at the table. i want to introduce patrick alfred tasked with over seeing the drive at rbs. sir, it's a pleasure to see you here at this event. is the financing sector here having an uber moment? >> not quite. financial services is a lot more complex, more varied. what we want to to do is, as you said, have a seat at the table
to oversee any number of moments that impact business. but for improve our services for the benefit of our kicustomers quickly as we can. >> does that mean you're looking at these partnerships and acquisitions? >> it's absolutely both. building up our agile skills, our engineering practices, ecosystems, improve a cycle fund so we can partner more effectively with the fintech partners, bring the technology in, invest in to me. invest in them liar entrepreneurial spark. >> it has some advantages, that includes scale and expertise. but on the other side, the disrupters, the startups say they have more trust in the post crisis world. some took a hit during that software upgrade that left a lot of customers disenchanted, if you will. how hard has that been for you
to overcome that episode? >> it's been a significant amount of the money invested year on year to continue to improve in the future for the customers. there's nothing more important than that. >> and on security it hasn't been lost, in the uk papers this week, certainly when we talk about security concerns tied to the panama papers here. of course, there's more implications to be debated but there also raises the issue of privacy and protecting privacy in financial accounts. what percentage of your span would you say is devoted to that? >> just as much as it take. you spoke about trust a moment ago, it's very hard, one, too easy to lose. saw the information security, technical security of all types is important to us. we have deep expertise in this. it's also a big focus in the
fintech arena, where a lot of companies are looking to improve security and make good security easier to use and we're looking to pull that. as we did for apple, a slightly larger fintech disrupter, to make banking much more easier to use. >> and it's difficult to go to these fintech conferences and not mention the word block chain. are you feeling the block chain hype? >> yeah, we're studying did deep by. we think it will be a powerful cause for change across the industry. it's very hard to look farther than a few years out at this point but i think it will be emerge. outside of five years, it will be simply be the new way of doing things. >> finally, you can give us an idea in your role, there are any discussions about specific measures to put in place should the eu force a brexit?
>> we said we had spoken publicly about brexit and not able to add to them today. >> you there have. the cio of rbs saying not quite yes are we able to declare an uber moment for financial sectors but the bank nonetheless taking notice of the disrupters here. >> nancy, thank you very much. we'll see you back in the studio. that is it for today's show. let's check in u.s. futures before we go. the implied open slightly higher in the states as europe as holding ton slight gains. we're only two hours into trade this morning, so we've got more or less full day to go. that's it for today's show. i'm louisa bojesen. "worldwide exchange" is up next. we'll see you tomorrow morning for "street signs."
good morning. let's make a deal. the uk's daily mail reportedly in early talks on a yahoo! bid. new this morning -- blackrock ceo larry fink warns negative rates for saving and spending. we'll bring you the highlights from his letter to shareholders. and the meltdown at the masters. englishman danny willett wins the masters after jordan spieth fall as part on the back nine. it's monday, april 11th, 2016, as "worldwide exchange" begins now. ♪ welcome to my house a very good morning to you a and a