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tv   Street Signs  CNBC  September 19, 2016 4:00am-5:01am EDT

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good morning, everybody. you're now watching "street signs." i'm louisa bojesen. despite a warning from the international settlement, they say investors are underrisking the markets. and an explosion in central manhattan injuries 29 people. and what say governor cuomo calls a clear act of terrorism.
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and delivering a blow to the german chancellor with the lowest number of votes in russian history. and it turns out the loyal opposition party to the crekrem did not make an impression at the ballot box. >> good morning, everybody. >> good morning. >> good weekend? >> hadriends in from denmark. always nice to show people around who don't know london. you? >> really good, quiet weekend, with the baby. so it was all good. it's the week of reckoning. we have the boj, we have the fed. a lot going on. >> i like to see the word reckoning, depending what we hear from the central bank, i'm not sure how much of a
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difference it will make in the near term, but no one expects a fed hike any longer. >> that's why the boj could be a bigger news story. let's talk about japan and get views on the yen in a bit. before that, the bomb squad in elizabeth, new jersey, detonated a device found in the early hours this morning. the suspicious backpack found near a train station appeared to contain a set of pipe bombs. law enforcement officials told nbc news of concerns of an active terrorism cell in the new york and new jersey area. >> this comes after three violent attacks in three states put the u.s. on high alert. on saturday nine were injured in a knife attack in minnesota as a pipe bomb exploded in new jersey along the route of a charity run. and another bomb was detonated in new york city. the explosion of a shrapnel-filled pressure cooker in the chelsea district injured 29 people. authorities called the blast
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intentional with new york's governor andrew cuomo says it was an act of terrorism. no suspect has been identified and investigators are searching for a motive and a possible link between the bombings. here in europe we have opened slightly to the up side. we are hanging on to slight gains across the board with most of europe's forces just pushing a bit higher. so that's what we're seeing by and large. we'll take a look at the main european equity markets with the fed and the bank of japan meeting with two-day meetings. the bank of japan may be off running this time around. you have also seen quite a few moves in some of the various commodities out there, like oil running higher by 1.5% in the last session, not really filtering through when looking at the sector moves, though, with the vast majority rejigging some of the selling we saw on
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friday. auto, oil and gas and basic resources are pulling out the most by 1.5 to 2.5%. the recent rally is giving a report into the insight of the central bankers stopping short of a bubble, but posing the question whether the markets fully presented a risk. we have the manager here to discuss with us from columbia threadneedle investments, maya b
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ba -- bhandari. japan has been at the forefront with the japanese bonds up 50 basis points. that is quite meaningful in six or seven weeks. >> they want that to happen to benefit some of the financials. the problem with the boj of late is that ever since the january announcement of the negative rates, sometimes communication has really backfired and the effectiveness of monetary policy has really hits limits. whatever they say this week, will it really make a difference? >> well, i think there is certainly a challenge for the bank of japan since january when they got into negative territory. you had a very aggressive, sharp, flat anything of the yield curve with financial stocks, if particular. so i think that policy
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experiment, it has proved challenging. i'm not sure i would prove monetary policy is off the back of that. one of the things we may well get this week from the bank of japan is another cut in terms of interest rates for the negative territory. but at the same time, and this is what is interesting for me coming out of the central bank in the last few weeks, we have a central bank explicitly stating something different which is unusual. and it will get anchored further into negative territory, but it will be interesting to see what they do to hold up the long end. one of the suggestions out there is that we have a little bit more commitment to fiscal support. so maybe not official recognition of helicopter money as such but something closer to that. and that, in turn, is giving japan both the short-term ease with short-term rates coming up,
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but also a steeper yield curve to help the financials, in particular. >> how do you think that's going to play out in terms of anticipated money flow? and how is it going to play out for the uk as well, if we do see the steepening in. >> frankly, where we sit today on monday with the next fed meeting in a couple days, it is quite uncertain what we get from the bank of japan. there's been a lot of divide on the board itself, which is complicated or propagated matters to make it harder to read. now in our portfolios we are long japanese equities, we see them slowly improving, but we also are watching corporate governors, all of that. so we like japanese equities, but we also have been watching the general alongside that
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position, which has been quite helpful. >> and that extraordinary run in the yen near 100, 125 or so -- >> and then all the way back down. >> yes. if we see a move from the fed and see dollar repositioning, is that trend going to start -- how much is that going to play against what the bank of japan is doing? >> the yen is really tricky to calm. because on the one hand you have a very cheap currency, you have an account surplus, both of which are helpful for the currency, but against that you have the prospect. and at the moment it's the prospect of a regime shift in japan and how japanese policy is run. and that is the support that is the opposite. the dollar/yen is up to 120 or 140 where you get official helicopter money. but i suppose our base fees stay closer to where we are near 100 and 102.
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because the balance of other forces does support a yen stronger. and on the fed, if we are quite skeptical that you will get a rate hike this week from the fed, it will most likely happen in december, so i'm not sure you get the dollar leg supporting higher in the dollar/yen either. >> on friday goldman downgraded the equity bond to neutral, but specifically on europe, where do you stand? >> so we are neutral european equities overall. we favored european equities but in early july we downgraded equities overall. at the same time, we sort of reduced our regional seconds, we overweight the uk and pulled both of those back into the under emerging markets in the u.s. we are broadly neutral of
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european equities here, but some of the developments in the last few months are more positive for europe. and in particular, we have the central bank easing. but we also had a sharp contraction in fed with corporate borrowing costs. that could be quite helpful for european companies in the months ahead. so we're expecting earnings of about 5% to 10% next year in europe, which i believe is slightly ahead. >> maya, pleasure to speak to you. the multiasset manager at threadneedle investments. send us your e-mail, let us know what the big event is for you this week. do let us know. >> the address is on the screen right now if you want to use more than 140 characters. if you want to use more than@lo.
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we're going to a quick break, but coming up after the show, we'll bring you live to moscow after this short break. don't go away. announcer: they'll test you. try to break your will. but however loud the loudness gets. however many cheese puffs may fly. you're the driver. the one in control. [click] and move only when you hear the click that says they're buckled in for the drive. never give up till they buckle up.
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hi, everybody. welcome back to "street signs." good monday morning. in asia, the asian markets have been higher. there is this holiday in tokyo. let's cross that. here's more from sri joining us live. good morning, sri. >> hi. all the action seemed to be in the chinese equity space, so they returned after the mid-autumn festival breaks. they were closed thursday and friday, so there's a degree of demand here. some equities catching a bid today. and i think it was really the
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market in hong kong that really stole the headline. because we did see some momentum in property that was used in house prices. we are seeing a bubble in select corners of the markets, so that's a dilemma for policymakers that don't want to be too overzealous for fears of the economic recovery. overall, a fairly solid session out here. the markets are telling us that they are expecting a dovish and cautious outcome of the portfolio echo. and the more complex picture is the bank of japan, what they will do. everything seems to be on the table including the further negative rates and really it's going to really help inflation, expectations get to 2%. so the jury is still out on this one. back to you now. >> sri, thank you very much. now russia vote counting
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continues where early polling suggestions the united ruling party outlined vladimir putin has taken a comfortable lead in the parliamentary election. jeff is in moscow following this very closely. jeff, too early to say whether or not putin's going to be standing again, although a lot of people anticipate that definitely is the direction we're heading. >> reporter: yeah, and i think, louisa, that's the way most analysts look at the outcome of the polls. some former referendum on the stewardship of the company by president putin as we look rwar to the 2018 presidential election. and i think as we look at the results as they have come in here, we have in excess of 90% of the ballots counted now. and the ruling united russia party has increased its position
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in the ledger. so that would appear to suggest that there is a resounding endorsement of president putin's party and the leadership of the count country. many western politicians, i think, would be terribly surprised by this outcome given that the russian economy has been in recession for the last two years. and that the outlook from here has probably more to do with where the oil price goes than what action the russian government itself takes. so whether the central bank, indeed, will make any further cuts to interest rates from the current 10% level. so just to wrap it up here, the united russia party, president putin and clear ly going ahead s the ballots are counted, there's some talk in the decline in turnout, suggesting that some
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russians are unhappy about the direction the economy has taken, but anybody who looks at these results will see that united russia and president putin remain very popular at this stage. back to you. >> jeff, thank you so much for that. we'll stay with politics, german chancellor angela merkel has been defeated in berlin and forced out of the coalition after receiving only 18% of the vote. the anti-immigration amd party gained enough support to enter the legislation for the first time. we'll go out to annetta in berlin, this is the second blow in two weeks, how is angela merkel going to respond to this? >> reporter: well, because of her policies and berlin's specific reaction to the
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elections, the recent polls are showing 57% of those who voted against the cdu have voted against it because of angela merkel's policies. so she can't deny her responsibility for the poor showing of the cdu and that state election once again. it's the fifth state election in a row with the cdu having a very poor showing on angela merkel's policy. the biggest implication from that vote is once again that the rift between the cdu and the csu which is the sister party of the cdu is getting bigger and bigger. and they have to be united before going in next year when we see the federal election coming up for the whole of germany. if they are not united, the likelihood of them losing voters to support them is growing ever bigger. but, of course, people will ask
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themselves around the world whether these results already give us an indication for next year. the election results on the federal level are again something completely different. upon polls here are still showing that the cdu is the strongest party with angela merkel heading up that party. so back to you. >> thank you, that's, in part, because there is no other alternative to angela merkel at this point. thank you, annetta. tens of thousands of demonstrators took to the streets over the weekend to protest the transatlantic trade or ttp. an 180,000 people took part in trade deals with the u.s. and canada saying the deals would undermine democracy and lower food safety, environmental and labor standards. >> it is interesting, i was just in germany last week and was speaking to people who work in shops, things like that, everybody very supportive of merkel that i spoke to, i only spoke to a handful, but they
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were also saying they were quickly realizing how difficult it is to push anything from government without merkel. and she kind of makes everybody come together in some way to get the bigger issues pushed through. so that was the view of a couple germans. but the italian prime minister renzi has given a scathing account after being left out of a press conference with angela merkel and french president hollande. he said, quote, instead of the spirit of bratislava -- we spoke to the president about the inability to reach a deal. >> we cannot agree on exact measures, but the huge list of measures as road map, we'll
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negotiate and decide during the six months, near six months. and that is, of course, about security or challenges we are facing. changing gears, airbus is preparing to launch a new restructuring plan according to "the financial times." the chief editor is looking to reduce job cuts to help in overlaps between the group. they are looking to offset costs from the aircraft delays and minimize losses on the 380. and rolls royce says they are going to cut 200 more jobs after the company cut more jobs last may. most of the layoffs will be happening in the aircraft business to support airbus and boeing. out east, audi is suspending
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stefan knirsch after allegations show he was aware of cheating devices during commission tests. he became head of the development after his predecessor resigned due to his involvement in the same scandal. this after more than 80 institutional investors joined a lawsuit against vw on friday. nancy spoke to the head of global automotive research group who has a birating on volkswagen and asked if the latest legal action was already priced in. take a listen. >> i think it is mostly priced in. i'm less concerned regarding the accusations because we have seen in the volkswagen case it is very difficult to prove in germany that a company has deliberately misinformed vessels. >> nancy is joining us now onset along with jeremy marshal, chief officer at bentam europe.
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jeremy, thank you for joining us. what exactly are the allegations? >> essentially that the company knowingly withheld information from the market at the time that it knew it. as a consequence, investors were misled under a false premise. >> why are you filing this under a german court? and you want to refer to some $2 billion in a u.s. court. we know that these sums can be much, much higher. and maybe the chance of success is much higher versus a german court. what is the rationale here? >> it will be important to sue in the host country's forum. >> but just to clarify, you're not the lawyer, but you're acting on behalf of the shareholders who want to file? >> yeah. we are funding the litigation. our law firm is involve in the case both in the u.s. where they are bringing proceedings and also in germany.
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but we fund the case and indignify the investors in case of costs that go wrong. >> on behalf of the hedge fund, on behalf of management, right? >> they are behind bentham, yes. they are regulated under the scc, they have their own rules and regulations, it's up to them what they do, but i would be surprised if they do that. >> jeremy, just a few questions on the actual complaint that has been filed, one that affects volkswagen delaying this information, they could have come out with this information earlier, but the lawyers were hopeful to come to an agreement with the u.s. regulators and therefore it was not appropriate to announce it publicly because that would jeopardize such agreement. doesn't that have basis many the case? >> well, that is quite a lot, isn't it? why do they do that? and would they have said the same thing today in the knowledge that we just heard
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from mr. audi's situation. the information is coming out in such a drip-drip fashion that i think we're getting closer and closer to the reality. but actually don't yet know what it is. >> but you would have to prove that senior management knew about a defeat advice, isn't that the question at stake here? when you look at industry norms there, were several carmakers that learned of discrepancies between the lab tests and real world emissions. for volkswagen to say, yes, we are working to displace this discrepancy as long as management didn't have knowledge of these devices, they can't be found guilty. >> whether, they are looking into a negative operation. the defense is to say they are not negligent. we say it was a negligent system that allowed this to go on undetected so long. and for senior management not to be told or to find out. when you have investors looking that, they have serious questions as to the management in the circumstance. >> vw has several lawsuits going on, most of them civil, one
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criminal complaint by the doj, are you expecting that yours will be settled in a timely fashion? are you expecting the full 2 billion euros to be paid? because there will be a point when there are so many losses against vw that maybe their ability to pay out these claims will be limited. >> well, i think it was fair enough that vw waited to see the sort of invested community that was coming together and coale e coalescing around. they always deal with the u.s. dealers primarily because of the attack they are under from the u.s. judges. i think we hope the investors are treated fairly many the same way as everybody else. and it's only time now that we really get going just on the case to see how they react. >> yeah, i'm just wondering, because you're also acting on behalf of u.s. investors, too, right? >> the case that is being brought in the u.s. is much more sort of focused question on disclosure. so under the german system you can't get discovery in the same way as the u.s. court. the u.s. courts allow for
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discovery for u.s. claimants in the proceedings. and we will see that is going to be the key, because in fact, if we get the documents it could be a treasure-trove. >> nancy, you've been covering the story for a year now and it is actually now the one-year anniversary, shares are down some 30% since then, what are analysts saying about what the upside is to the shares? do you think we'll see the depressed level for a long time because effect i havely the brand is losing market shares in the biggest market of germany, what are they saying? >> they are losing shares but not by as much as when the crisis kicked off. when you look at the analyst ratings overall, the majority have a lot of the hold, a lot of them are bi-rating now, there's optimism that the worst is priced in when you take into the account of the market risks. many people think they'll have to go higher, but the litigation is a part of that. and getting the cost down remains to be the issue here.
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>> thank you very much. jeremy marshal, chief investment officer from bentham europe. now coming up after the break, we'll be heading back to london fashion week. the black eyed peas classic "where is the love" has been released in support of the refugee crisis. coming up after the break, i'll be talking to the global artist and entrepreneur will.i.am. what's the value of capital? what's critical thinking like? a basketball costs $14. what's team spirit worth? (cheers) what's it worth to talk to your mom? what's the value of a walk in the woods? the value of capital is to create, not just wealth, but things that matter. morgan stanley
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everyone thought i was crazy to open a hotel here. everyone said it's so hard to be a musician, but i can't imagine doing anything else. now that the train makes it easier to get here, the neighborhood is really changing. i'm always hopping on the train, running all over portland. i have to go wherever the work is. trains with innovative siemens technology help keep cities moving, so neighborhoods and businesses can prosper. i can book 3 or 4 gigs on a good weekend. i'm booked solid for weeks. it takes ingenuity to make it in the big city. welcome. you're watching "street signs." i'm carolin roth. >> i'm louisa bojesen. >> despite a warning from the bank of international settlement saying investors are underestimating the risk to
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markets. and new york city goes on high alert after an explosion in central manhattan injuries 29 people. the governor andrew cuomo calls it a clear act of terrorism. and a blow to angela merkel as the german chancellor sees support for the eu party falling to the lowest level since 1990. >> the ruling party looks to win over 50% of the election. it turns out the opposition party is not loyal to the kremlin failed to make an impression at the ballot box. a quick peek of u.s. futures. the s&p and ftse 100 are down 90 points. rising 2.3% on the week, much of that is down. technology stocks in apple rose
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by almost 12% for the week, the best week in four weeks thanks to the iphone 7's success. the dow jones and the s&p and the nasdaq were all lower in terms of friday's trading session. but hey, this week the big focus obviously will be on central banks, the boj and the fed. in terms of the markets, we are seeing them trend higher after the better-than-expected numbers on friday. the dalia is 101.75. all eyes are on the boj on wednesday. they could be cutting rates deeper into negative territory and see the yield go down even more. but the pound saw the third biggest drop since brexit in part because of the dollar's strength.
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but also because of the finance minister mr. hammond said immigration restrictions may come at the cost of losing access to the single markets. so that spooked a lot of investors out there. the european markets look like this this morning, we are catching up a little bit at xetra dax at 0.80%. we are seeing gains in part because of basic resources in oil and gas are doing somewhat better on the bounce back in oil prices. plenty of focus also on algeria at the opec meeting. i want to come back to the deutsche bank. this is a notable exception to many of the bank stocks rising today. deutsche bank down 1.67%. credit suisse put an underperforming price on the stock at 13 euros on news of the very 14 billion u.s. fine continuing to put pressure on the shares that closed down over 8% on friday. now speaking to cnbc last week,
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the banks communication said they would appeal the penalty. take a listen. >> we know that this is a very high number. this was the case with other banks in the united states, but we saw the numbers go down significantly then. so we are very confident that we are able, that we will be able to negotiate the number significantly down. and we are sure that we will be treated fairly in this process. so we are quite optimistic that this number definitely won't be the final. i just want to give you more detail on the credit suisse did tail on deutsche bank. they feel the capital shortfall will lower dividend expectations and keep the shares under pressure with limited upside potential from further restructuring and risks from litigation settlement in the last one. that is the overriding factor for deutsche bank at this point.
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because they only have 5.5 billion euros in terms of litigation reserves that they have set aside. 14 billion would blow a hole into the litigation reserves. >> it definitely would. we are talking about the speculation of the mergers in the german banking scene, whether or not that will happen with the strategy on that front, so we definitely want to keep an eye out on that one. the u.s. presidential candidates hillary clinton and donald trump exchanging jabs over the weekend in their response to the saturday night bombing in manhattan's chelsea district that injured 29 people. speaking in colorado saturday night, trump took to the stage and announced the bombing to the crowd adding, quote, nobody knows exactly what is going on. asked by nbc news to respond, trump is also calling the explosion of the bombing saying it was too early to jump to conclusions. she later released a statement condemning the apparent terrorist attacks. edward lawrence of nbc news is in washington, d.c. and joins us
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now. edward, what is the latest? and what are people's responses, what have they been to differing initial comments by the presidential candidates? >> well, louisa, there's 50 days left until the election and folks have to decide who they want as president. both of the candidates are campaigning today and will be in battleground states. donald trump tweeted out trying to use the bombing attacks and the stabbing that happened to separate himself from hillary clinton. he tweeted out saying that the failed obama/clinton policies will not keep us safe. his campaign manager says that voters want to talk about issues like safety and security and move on from the birther controversy, which dominated the news on friday. now hillary clinton responded to the attacks also. she said that we have to support our first responders. clinton also saying we need to pray for the victims in this case, security is likely to become an issue this week in the campaigns. clinton's running mate senator tim kaine said that he called
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the comments from donald trump asking the secret service agents who protect hillary clinton to disarm themselves, dangerous. he said it shows indifference to violence that may occur to the candidate. now donald trump made those comments because of hillary clinton's stance on gun control. it's a very testy election. the polls are narrowing. in fact, clinton is losing ground among younger voters. for example, in michigan, the newest or latest polls show that clinton's lead is now just seven points over donald trump among voters under 35 years old. louisa, carolin. >> edward lawrence joining us live there out of washington. the director of political research at pew research center is joining us in the studio. good morning and welcome. the point that edward was just making through that the millenials that clinton seems to be losing support in that particular camp, you have done research as well on the 18 to 35-year-olds on how we think
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they'll vote, or do we know that yet? >> i think it is very unpredictable because you have this third-party option of gary johnson. and in our polling and in other national polls, he draws a significant measure of support from the under 35 voters. about one in five at this point. now, that may be inflated a little bit, this is still early in the campaign relatively, but that's a bad sign for hillary clinton given that 60%-plus of this group has voted democratic the last two elections. >> you say negative voting has increased. so a lot of your indications are that people are voting against something versus for something. >> exactly. >> is that going to continue or can something like that change when we compare to past presidential elections? >> it feels like the perceptions of these candidates, even among their support, is pretty baked in at this point. and so i would not expect that to change. this is a highly negative election. these candidates are not viewed
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positively at all in historical terms. >> is this the most negative and most aggressive? because to us it certainly feels that way, or is it just being portrayed that way by the media? and is it really about candidate dissatisfaction or dissatisfaction with the political establishment overall? >> tell, with i think it's a little about both. but are you satisfied with both candidates? this is the lowest measure we have seen since 1992. so about a quarter of elections, voters are less satisfied with the electoral choices than at any point in the last 25 years. >> do the debates really change the needle here. >> it's hard to tell. often they don't in elections. sometimes they do in spectacular ways and game-changing ways. this will be a very interesting debate because you have donald trump, i think, will raise t level of kind of interest in this debate if nothing else.
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i think you'll see a lot of people tuning in to this debate. >> but as you also point out in your research, regardless of who comes in, regardless of who is the next leader, there is going to be a deep divide in the u.s., at least on the political project, that they're going to somehow have to try to get more together. or do we want to see people around that middle line again given the moves left and right? >> well, the left and right are pulling further and further apart. the next president will take a divided nation. and an unhappy one. and even the election results themselves may kind of be controversial depending on how close the election is, depending on who wins. so when it's over, it might not be over. so we'll see what happens. >> why are we not seeing support for the third parties? you said there was some support for gary johnson, but why are we not seeing someone like him participating many the debates? i know he's not allowed to but he should be allowed to, right?
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>> well, they want the third-party candidates to meet a certain threshhold of support at this point. and he doesn't meet the threshhold. perhaps this will raise the profile of third parties going forward. but in the past what we have seen is support for third parties, you know, it's kind of a protest, expression of dissatisfaction of the candidates goes down as we get closer to the election. we'll see if that happens. >> carol, director of political research at pew research center. a lot of people have an opinion on the u.s. politics. cnbc's tanya brewer caught up with will.i.am to ask the entrepreneur as he calls himself, asked him what concerns him about the 2016 election. >> the problem is that no one, a lot of people feel like no one talks to em this. because of that, they are not going to engage and go out and vote. these are first-time voters, these people are 22 years old
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and couldn't vote last time around. so then they don't know the stakes. it just really -- it's really scary from that perspective, they don't want to engage because there's nothing speaking to them. >> meanwhile, former florida governor and republican presidential candidate jeb bush made an appearance at last night's emmy awards helping host jimmy kimmel make it to the event on time. >> oh, thank you. you're a lifesaver, thank you. hey! >> yeah, i'm in between jobs right now. you know you can make $12 an hour driving for un uber? >> i did not know that but i have to get downtown to the emmys. >> are you nominated? >> yeah. >> wow, what's that like? >> it's nice. >> it's nice. moving on, sanofi filed a lawsuit against drugmaker merck
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over the lantus and solostar insulin pins. >> if britain is not finding to be part of the ema, that's a big deal for us because that means presumably there's going to be a new uk regulator in addition to the european regulator and that increase our regulatory complexity. if it stays part of it, that's a whole different situation. so for us our interest here is very technical, quite boring for lots of people, but super critical because of the government's manufacturing, it governs how our drugs are registered, all those things. now vince weidmann said the u.k. institutions will lose their passporting rights if they don't remain in the guarded
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economic area. he suspects some financial firms to reconsider moving their headquarters outside of britain. meanwhile, moody's said the rated banks could lose the passporting rights suggesting it is unlikely all permissions granted to u.k. firms would be lost. and mitie says declines were deferred in the wake of the vote to leave the eu and the expected increase in pricing cost measures would make the operating profit put very significantly lower. share miss the group are off by a whopping 23%. and microsoft reportedly said it's going to close skype's london headquarters putting at risk 400 jobs according to "the financial times." this has caused concern among the tech industry already battling to prove it won't be affected by the brexit process and the outcome. still coming up in the show,
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the peace climate accord has been ratified by the u.s. and china. we'll discuss the winners and losers of the deal coming up after this break. don't go away. narrator: adventure can be found anywhere but the best place to start is in the forest. kubo: i spy something beginning with..."s" beetle: snow. kubo: no. beetle: snow covered trees. monkey: nothing to do with snow. narrator: head outside to discover incredible animals and beautiful plants that come together to create an unforgettable adventure. kubo: wow! narrator: so grab your loved ones monkey: don't even. narrator: and explore a world of possibilities. kubo: come on, this way. narrator: visit discovertheforest.org to find the closest forest or park to you.
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the u.s. is on high alert after violent attacks across three states over the weekend. while investigators hunt for links between bombings in new york and new jersey. cnbc's morgan brennan is in new york. morgan? >> reporter: good morning. yes, it was certainly a weekend of terror after multiple bombs exploded here in new york city as well as new jersey. now here's the latest. just hours ago a backpack containing as many as five pipe bombs detonated. that was after police responded to a call about a suspicious package in a garbage can in the
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elizabeth, new mexico, train station. that exploded while a robot was cutting the wires in the beginning of a controlled detonation. but this was not the only incident in new jersey. saturday morning a bomb explode in a garbage can at a 5k run for marines in seaside parks. no one was injured. and here in the chelsea neighborhood on 23rd street, a separate incident involving another bomb explosion saturday night sent 29 people to the hospital. all have since been released. just four blocks away from here, a second device, what authorities are describing as a pressure cooker device similar to the one use in the 2013 boston marathon bombing was discovered. police led a controlled explosion of that device last night. authorities have not connected all the different incidents but are saying at least three have similarities, mainly the involvement of old-style mobile flip phones. as far as suspects, the fbi says
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five individuals have been detained for questioning in relation to the new york city bombing here. and nbc news reporting that according to surveillance of this area, what looks like the same person was at both of these manhattan sites. now, all of that in addition to a knife attack at a mall in minnesota this weekend, that injured nine people. isis is already claiming credit for that. and so all of this, all of these investigations are very much ongoing. a lot is expected to change. more details are expected to come out, but meantime here in new york city, security which had already been stronger than usual, is being dramatically boosted because guys, remember, the united nations general assembly is also kicking off here in new york city today. back over to you. >> thank you so much for that, morgan brennan, for cnbc. now the commodities sector and the moving we have seen there, you would have noted a slight move upwards in the price of oil in the last trading session. we are now in the region of $44
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a barrel for wti. brent is up $46. there's speculation of the non-opec deal being struck according to reports. supposedly they e saying there is something to be announced by the end of this month, but it is all hearsay at this month. nothing confirmed. and we have the increase in fighting in libya as well involving two particular oil ports that led to additional buying there. but the u.s. and china have recently ratified the landmark u.n. climate change accord to limit rising global temperatures. our next guest expects that this deal will help to establish carbon as the single largest trading commodity. kevin mcginney is with us this morning. explain to us how is this is going to work. >> well, globally per capita, we consume just under 1 ton of
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food. we utilize 2 tons of crude equivalent, but are responsible for more than 6 tons per capita of carbon dioxide emissions and other greenhouse gases. the creation of markets across the globe to apply cap and traded methodologies for reducing emissions will kickoff many different carbon markets in different jurisdictions. >> we have seen temps like this in the past when the trading market was supposed to take off. and a lot of trading houses were putting measures in place to benefit from some type of carbon trade and it didn't happen. a lot of people closed again. and some of us wondered what happened, where did carbon trading and credits go? why is it different this time? >> i think there is more of the realization when the government regulator creates the carbon credits, they create a digital green currency.
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and the integrity of the green currency has to be at par with actual currency. there are very successful examples in the united states. the rens market, the market in california and others being created. mexico is launching a carbon system, i think we will learn from the mistakes of the old systems and put in place something much more successful. >> kevin, we may never get to that point. what is trump is leblelected to president, then paris is dead in the water? >> it does appear that he's an old fashioned climater. there's a single demographic that continues to deny climate change. and that is middle class, middle-aged white men. now, this is a grouping that sadly i know too much about. but even my brethren are changing their views. and now over 90% of the population in the united states recognize climate change as an imminent or current issue. >> talk to us a little bit about
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the policy differences on climate change between donald trump and clinton. we just heard about donald trump, what about clinton? what is her stance? >> she would like -- hillary clinton would like to make the united states a clean economy pow powerhouse in the 21st century. she would like to create a moment where she brings the whole country together and sets it on a path to deal with climate change once and for all. her constituents, her polling on the area is very, very strong. and it's the exact flip for donald trump. >> so which of the two is better for your business? >> well, donald trump is a huge advocate of ethanol and biodiesel, which are our core businesses. we have been growing 10% each year on those businesses, and he would be very strong in those areas. for the new markets, the carbon
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markets we're talking about, that would require a hillary clinton presidency or a complete flip-flop from donald trump, which is possible. >> kevin, thank you so much for that. kevin mcginney, ceo at sb group. socks with sandals? >> what. >> baggy jeans and velvet blazers is what you should be wearing if you want to be on trend showcased at london week so far. tanya briar spent the weekend there catching up. i don't think you're wearing socks with the shoes. >> note yet. remember, for spring/summer 2017, but louisa is right on trend. you've got it right. there was a lot of orange, a lot of mango. there was a beautiful show put on yesterday. very modern in a space with a huge circle. but all her models were under the spaceship feel. she's celebrated 30 years in the
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business. has maybe 48 stores worldwide. 28 million turnover. and i caught up with her after the show. >> truthfully, i think what made me excited about this fashion is the prettiness of it. it's a slightly space age way that are quite modern. and the techniques look like clothes but they are made of leather. so it is an odd beauty. so i wanted to play with the prettiness in a slightly odd way to make it modern. >> this is a massive business. and seemingly it keeps growing, especially when you include the online part of it as well. how are these business leaders reacting and designers as well to the possibility of a real brexit? >> what is interesting, i did talk about it, and also caroline roth from the ceo council, and they said the british industry was repapers and there was quite
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a shock for them. so they are uneasy about brexit. the message is that london is open for business. and they said the manufacturers are quite worried, but the positive is because the prices will be cheaper, you have more people buying the products as well. you can see the models there all with the different trends and colors you'll be seeing for spring and summer. but what they're saying really is that brexit will affect the market. of course, it was 28 billion as part of the fashion industry and the whole economy. so they are slightly worried about it. and they were saying they did not want to come out of the single market as well. so they are seeing some kind of reverberations from it, but they are trying to look at the positive. and london fashion was buzzing. all the international buyers were there, the editors, the atmosphere really was quite
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eclectic. they are saying we are open for business. that's the message they want to project. tanya, thank you for that. a quick look at the equity markets. the color of choice is green today bouncing back from last week's losses. the xetra dax is up by .70%. the cac 40 up by 1.2%. the u.s. futures indicating a slight bit of a bounce on the open as well. the dow jones being called up by 100 on the implied open. so keep your eyes glued to cnbc. more to come here on the channel. that's it for today's show. i'm lousea bojesen. >> i'm carolin roth. "worldwide exchange" is up next. bye-bye.
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breaking ovnight, another device is found in new jersey. and could the fed be a game changer this week? we're counting you down to the big decision. plus the emmy goes to -- big wins for "veep" and "game of tl thrones." september 19 is the day today. welcome to "worldwide exchange."

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