tv Street Signs CNBC October 12, 2016 4:00am-5:01am EDT
hi, everybody. welcome. you're watching "street signs." i'm louisa bojesen. your headlines, dialing declines. ericsson hitting the bottom of the stoxx 600 as it issues a third quarter profit warning, also driving nokia lower. samsung's guidance going up in flames lowering the third quarter profit outlook as it waves good bye to the galaxy note 7. premiere food shares tumbling, as the maker of mr. kiplings cakes lowers its output.
and analysts at credit suisse back uk stocks due to more weakness for the pound. hi everybody. good morning. middle of the week. middle of the week. looking at our european equity markets, very flat. similar to yesterday on our main stoxx 600 in europe. we are just a couple points lower. by in large just treading water by the looks of things. not to say it hasn't been a busy morning. it has. a lot of news flow out this morning. we have a lot of news flow coming through from the energy forum and opec and that meeting. we'll talk about that, a lot of news in the tech sector, too, on the back of that ericsson profit warning. slightly mixed here, still early hour into trade, but the ftse mib trading higher than some
counterparts out there. the ftse, xetra dax, and cac 40 trading off slightly. the italian banks doing well. and you have the likes of lufthansa, easyjet also trading higher. to the down side, ericsson and nokia on the loser list, being the main stocks to be hit very, very hard this morning in trade, which is why you're looking at technology off around 2%. let's get on to it, the ericsson story. ericsson shares trading sharply lower after the company issued a third quarter profit warning citing weak demand for mobile broadband. third quarter sales fell sharply by 14% as gross margins declined. the company said the results are "significantly lower than previously expected." now speaking with cnbc earlier, the senior technology analyst
said the announcement took all analysts by surprise. >> this is worse than everybody expected, including myself. i slashed my own outlook two weeks ago. some thought i was much too low than others. in parts of the world it's truly weak. so this trend is expected to continue, and at the conference call it would be interesting to listen about what they have to say about that. it's 30% below consensus of '17, so i have to adjust my estimates down. we'll see what's happened. >> julianne joins us more to chat about ericsson. coming up a of "squak" and continuing on here for a bit.
thank you. it seems to me there's a whole bunch of issues that are adding up to why we're seeing this profit warning from ericsson. not spending on 4g, the countries they thought they would be focusing on 4g, it's now 5g. it's a lot of things. >> there is an intensification of an ongoing crisis. this is their fifth quarter of earnings decline. one key issue here is it's not getting better any time soon. they are also indicate two to three more quarters of challenges. i said there's a number of issues here. one, they're not quick enough to keep up with technology. they pushed into things, like 5g, which you hope is okay at the moment. they're celebrating cost cutting, but for an analyst out there looking at this, they're like i don't see any bright spots. so many challenges they face. the ceo on the call today was saying things like these are the same issues we saw in the first
quarter and second. this is the network business, the coronet work business struggling. we saw sales decline there by 19%. some parts of this, despite the denouncements from the acting ceo are structural. nokia impacted as well. so there are questions about the broader environment here for these guys, competitors, too, in addition to what's going on here with ericsson. >> nokia took over alcatel-lucent, so they beefed up that muscle. you have the chinese players bringing a lot of competition to the forefront. >> particularly in europe. they are facing increasing competition. it's just a case they weren't moving quick enough. we saw former ceo hans vesberg leave in july. we have an acting ceo. if you put all this together, it's a real problem. having said that what we heard there from an analyst out there, they had already adjusted their expectations lower. this is a significant shock.
i think you look at these numbers, we're talking about a profit drop of 94%. i think you have to watch the -- you have to watch the dividend here. that's at risk. >> i think you're right. we say that a lot of analysts were caught by surprise. people were this morning. last week they did announce they're cutting something like 20% of the work force at home as part of this wider restructuring that is to happen globally. there's speculation about how many jobs will have to go global i were. a huge player in this particular area. so the restructuring is underway and has been for a long time. you mentioned hans vesper, i remember when he took over from the other ceo, it was a completely different company and environment. >> and the problem was he just didn't move quick enough to adjust for the changing environment. i think what we sawast week, as painful as it is, is a sign they're accelerating their transformation of the business, but the problem is this is pointing to those things won't
happen soon enough to support earnings. >> yeah. julia, thank you very much. you've been on set for a long time this morning. go take a rest. we'll chat soon. >> coffee. >> exactly. julia chatterley joining us there to talk about the ericsson drop, off by 18% almost. speaking of companies that are experiencing difficulties, samsung slashed third quarter profit guidance to 5.2 trillion after shares in the korean tech giant extended slides after a decision to permanently end sales of the fire-prone galaxy note 7 smartphones. >> reporter: samsung has officially announced the end of the note 7. this announcement was made after the market close yesterday evening in korea. and samsung is ending all sales and production of the note 7 globally. this is the biggest loss for samsung in corporate history. this did mean a very, very steep
loss for samsung in terms of market cap. almost $20 billion was cut off from the market cap since yesterday's trade. samsung already asked retail partners to stop sales and exchanges as of yesterday. samsung along with regulators in the u.s. and south korea have told users to turn off the note 7 phones and stop using the devices until they are all recalled and refunded by samsung electronics. what will happen going forward, given that this is happening just before thanksgiving and christmas shopping season, this is samsung's peak sales season. and analysts in korea are saying it's highly unlikely that samsung electronics will rush out with the next galaxy model, the s8, so samsung will probably come out with an upgraded hybrid
galaxy s7, which has some of the features of the galaxy note on the s7. and it's also expected to come in different colors. so th there could be losses of up to $3 billion. premiere food shares have seen their stock plummeting by 15%, 16% after the company reported a 5.4% decline in second quarter sales. the company blamed the lower than expected sales on warm weather, kept the full profit expectations unchanged. output guidance has been reaformed after a shiny set of third quarter numbers. fresnillo reported a rise on silver production along with a 21% rise in gold production. analysts at credit suisse struck a bullish tone on u.s.
stocks with exposure to continental european. it's upgraded the uk small caps to benchmark from an underweight and predicting further declines in sterling. here to talk about strategy this morning what type of market strategy you should be looking at is greg peters of prudential fixed income. good morning. >> good morning. >> we look at the market moves this morning, we look at our overall environment. we're thinking to ourselves this new normal of low yield also stay for the time being. larry summers was speaking recently about how we need to get used to a low environment staying but it's not for the better of things in the long-term. >> yeah. that's our view at pgim. but i fear most don't believe it. so they hear it, they kind of believe it, but no one wants to deep down embrace it. that's what we're going through now in the marketplace.
i think there's a real push back and a disbelief that central banks are in for the long haul. so the past week and a half there's been talk about tapering out of the boj, ecb, the b.o.e., and the fed. quite frankly i don't believe it. i think the central banks are here to stay. i don't think they're willing to give up. and this rise in yield over the past two weeks which has been pretty substantial and dramatic, i actually think presents a buying opportunity. >> why do you think they're here to stay in don't they want to get out of the situation they're in, especially with the left e looking at japan? >> i think they do, but i'm not convinced there's a natural way out. just giving up is not an option, so i think they're already all
the way in. given global growth and inflation, i don't think we're. there i think it's way too premature. >> you think it would be giving up? we look at some of the prints of the economic data, things do look better in patches. wouldn't we possibly be able to handle significant tapering? they did in the u.s. and are looking pretty good because of it now. >> it's been down so long it looks up. so, we're still stuck in this rut, i think, globally of subpar growth, disinflation type of forces. a quarter, a month, six months really doesn't change that trend. that's the important piece. so it's not so much about tapering, it's not so much about the u.s., the fed raising rates, it's about that path, that trajectory. if investors start to believe that the trajectory is a gentle one -- in the u.s., for example, the dot plot moving lower gives
investors comfort that the fed is not embarking on this tightening path like they have in the past. then i think the markets handle it better. i still believe it's too early to say central banks are tapering, giving up, whatever you want to call it. i think that's a mistake. >> i still disagree with you in terms of giving up. might be that's winning. >> that's what makes markets. >> i know. luckily. do you think we're in for a recession though? >> not yet. at some point clearly. this has been a very long expansion. it's been very tepid expansion. typically after a downturn, a shock, there's a mirror image where that growth comes back. what we've seen globally is a shock in the trend line. so the growth path that we were on we're now growing at a much trend line.
i think what that means, given the economic stimulus we've seen, given the central bank, it just goes on for longer and longer. it's not as robust, but it goes on for a longer period of time. >> if we get a bit practical with regards to everything you've said, where do i invest now? where is the biggest value for your buck or your euro or pound? >> i think the u.s. market continues to do well. so around the brexit vote, it felt like the u.s. would be a clear beneficiary. i was somewhat wrong about that. everyone seemed to be a beneficiary. but i think that starts to suss out over time as investment dollars flow into the u.s. i still like yield. high yield is a place we value. ex-commodities and energy. a reach for yield globally. as money moves out of those
negative, low yielding jurisdictions into higher yielding jurisdictions, that's the trend. >> by all means, get involved. we have greg here for a bit of time. get involved at the top of the hour, find us on tw twitter, @louisabojesen is my twitter handle. we're also on e-mail for those of you who want to write longer. i will get to as many of your questions and comments as possible. cash. a lot of fixed income people say we like fixed income but we're also in cash at the same time. is there a place for cash? >> cash is expensive. i think that's why investors are moving out to higher yield. for all this talk about zero rates, the cash rate is even more negative. so central banks have really forced investors out of cash, rightly or wrongly. if you're holing cash, it is an extremely expensive proposition.
more expensive than we've ever seen. so that is a real expensive hiding place. there's other places to go instead. so, to me, it boils down to do you believe central banks are committed or not? if you don't believe, if you disagree with me, which you do. >> yes. >> then you have to construct a much more defensive portfolio. but that defensiveness, that sitting in cash is extraordinarily expensive. so i think you have to be right about that if you're that negative. >> i'm not negative. never negative. i just wonder about the other side always. greg, you're staying with us. that's a very good thing. keep your tweets comi coming @louisabojesen or e-mail street signs europe for any questions or comments that you might have. coming up on the show, have you ever dreamt of seeing your life story told in a movie starring an oscar nominated hollywood actor? our next guest has.
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hi everybody. welcome back. you're still watching "street signs." deutsche bank carried out an internal shakeup of its senior investment banking staff as it looks to boost profitability amid a bout of volatility. shares fell 30% in the first nine months of the year, lagging barclays. deutsche bank returned to the bond market yesterday raising another $1.5 billion after last year's 3 billion. this after it is revealed deutsche bank faces the highest borrowing costs among european peers. deutsche bank is the only bank to pay to borrow over a 9 to 12-month period of a group of 21
lenders, including the national bank of greece. top city of london bankers have warned that they could start moving staff abroad in early 2017 if the uk government fairs to clarify whether britain will retain access to the european single market. speaking at a conference in l d london, senior executives from top world financial institutions said the government's tough stance on immigration also risked harming their businesses and the uk economy. sterling recovering some of its losses. sterling recovering after a report by bloomberg saying theresa may saying parliament should be allowed to vote on a time brexit plan. greg peters is still with us. what do you think a brexit will do to not just fixed income but markets in general once it actually happens.
we have two years to go. >> the markets reacted very negatively to theresa may's comments last week. they reacted so negatively because it seemed like a shift. the markets were embracing this notion of a soft brexit, maybe there was some hope that it wouldn't actually come about. and a whole bunch of cold water was thrown on that earlier. so, there's a severe reaction around the sterling. but it's part of a broader issue that we're facing, i think from an investor community, that's this global political instability. you're seeing it here in brexit, in italy with the referendum, in the u.s. it's manifesting itself around trade. it's dampening global trade. so we're talking about this low growth trajectory already, dampening global trade makes
that more at risk and you're seeing it manifest in trade wars. so, from the apple tax situation to the deutsche bank doj fine, it seems like we're in a new era of looking inward, parochialism and trade wars. that's something that is most concerning as we look into 2017. mentioning all of those issues, i think of the u.s. presidential election as well. do you think we'll see big repositioning depending on who ends up running off with the top tick ticket? >> i think the markets have largely focused on a clinton win more than a trump win. i think the markets are focusing on what happens if there's a clean sweep on the democratic side. it's too earlier to tell. it's too early to tell how to position. the trade issue is not just a u.s. issue, it is a global issue that i think is something that
we'll be dealing with in a rolling crises type of environment over the next few years or so. so i think that's something i'm most focused on. >> we were talking about tapering before the break. all of this money that's been piled into various asset classes via central banks, via companies as well sitting on cash for so long. do you think we'll see a situation in a couple years where we have genuine bubbles? and we'll look back and think we shouldn't have had this type of loose money for so long? also, we look at the bond markets, we keep hearing we're in a bubble in the bond markets. a lot of people say that on this show, yet people still remain in bonds and like bonds. >> yes. i look at credit spreads. that's the risk premium you get in corporate debt as an example. other vehicles. risk premium, while compressed since february, it is by no means aggressively compressed. so i still think there's value
there. the overall yield environment has been pushed down by what central banks are doing. the risk premium still offers value. i think time will tell. when we look across the various parts of the globe, i don't necessarily see any clear bubbles. so you see some excesses here and there, maybe some in commercial real estate lending. but by in large, it's not a bubble environment in my mind. people have been too cynical and skeptical, so they're being forced into risk assets. that's the whole idea of qe. but it's not translating into overly aggressive valuations at this point in time. the real question is the longer this persists, what happens. i think we have some time to figure that out. >> i hope so. people are writing in. peter wants to know about periphery european markets. we've been focusing quite a bit on portugal.
i've been looking at portugal lately because we have one of the main four rating agencies that needs to give its opinion on portugal on the 21st of this month, if i'm right. is there risk that portugal could be in trouble and might not be eligible continuously for the ecb's measures? >> i think that's a risk, clearly a risk, but it's a remote risk at this point. once again it goes back to this theme, our central banks, the ecb fully engaged and fully -- i believe they are. there is also tacid approval around fiscal restraint. so the fiscal restraint put in the last couple years seems to be more lax. that gives countries such as portugal, greece, others more wiggle room. but the programs are here to stay.
i don't see any measurable change there. i think we still like the peripheral part of the bond market. i think that continues. >> okay. guys, keep your e-mail and twitter questions coming in. it's always nice to include you on the show as well. either @louisabojesen or e-mail us @streetsignseurope. we need to take a very short break. check out world markets live if you haven't already. it's our blog that runs throughout the european trading day. they're keeping it up to date. lots of good stuff on there. we'll be back after the break, much more to come from istanbul on energy, russia and biotech.
hi, everybody. welcome. you're watching "street signs." i'm louisa bojesen. your headlines, dialing declines. ericsson hitting the bottom of the stoxx 600 as it issues a third quarter profit warning, also dragging nokia lower. samsung's guidance going up in flames lowering the third quarter profit outlook as it waves good bye to the galaxy note 7. premiere food shares tumbling, as the maker of mr. kiplings cakes lowers its full year outlook following weaker than expected sales. and sterling regains ground after a sharp four-day selloff after analysts at credit suisse back uk stocks due to more weakness for the pound. hi everybody. good to see you this morning. it is half past the top of the hour. to show you where u.s. futures are indicating a market open stateside, the implied open, a couple points higher. opposite picture of yesterday. i would say it's a flat call. by in large, people are focusing on earnings season, which is
starting once again. alcoa off by 12% yesterday. illumina off as well. the s&p 500 down by almost 1.5%, close to a one-month low, below the 100-day moving average. major support line out there. that's an important thing. in europe, mixed markets. the ftse mib bucking the trend a bit. italian banks are doing well. you have the ftse, xetra dax, the cac trading lower. the likes of lufthansa, easy jet doing well. ericsson a big story warning on profits as demand dries up. they see a severe slowdown out there. essentially what they're looking at is a 31% -- $31.5 billi
billion kona wiped off its value. looking at some other asset classes out there. the euro/dollar, 1.10. the pound against the green back, 1.22. maybe we can throw up an ericsson share price for a second. we were talking about how mobile equipment now is looking at a 19% decline in sales of their core mobile equipment unit. a lot of projects finished last year in 4g, nobody is really spending on 4g any longer, but it's too early to get the revenues from 5g. keep an eye on the tech sector and ericsson. the oil markets, you have brent, you have wti, both trading
higher. $52 $52, $51. opec will hold talks later today in a bid to thrash out a production deal. key decisionmakers including the saudi arabian oil minister have not scheduled to attend the talks. steve joins us once again. steve, why won't he be there if he's so important? >> there's a whole host of meetings going on this will build up to vienna on the 28th and the opec meeting on the 30th of november. the man who will be here today, is the uae oil minister. i know you're being asked the impossible question constantly here at this conference and about the substance of those meetings. let me ask you a broader question. how do you feel about the process?
mr. bakinder said there is a consensus for a deal. is that how you see it? >> i'm optimistic about a commitment from the oil members. the fact we're here also, and russia is committed to work with us, is also encouraging. the biggest worry is the level of investment in this important commodity is going down, and that worries everyone, not object the producers, but the suppliers to a great extent. >> do you feel the mileage that opec has had out of the post-al jee giers move, do you feel at $53 we have come as far as we can go? >> what's important is this sustainability at this time. the market needs to see a
sustainable price that encouraging the investors to put in more investments. if we are going to 50, then 40, that's not encouraging to investors and won't change the picture. the market overall, the glut in the market is reducing. but the time it takes to do that will be longer if more countries are pumping more oil and growing production, even though commercially this is not a very viable option. >> those countries producing more have had hard times. we talk about iran, nigeria, libya. they need to get production up, revenues up to get their countries back in order. do you understand the view from those countries that want to produce more? >> i think it's understood it's more the timing. no one is not acknowledging the right of every country to reach their required level of production. the matter is when do you do that? do you do that now or do you
wait? do you wait a little bit and give the market time to stabilize? this whole debate is about that. it's the timing we give the market to stabilize and to reach a level of price that is sustainable and then from there moving forward. i'm optimistic, as i told you, we need time to see what the higher level committee discusses and what scenarios they bring to us. most of the countries, i've seen them in algeria, they are committed. they are engaged. everyone wants to contribute to something that helps the market. >> how hopeful are you that russia will get involved? you have seen the comments, comments from the kremlin saying that statements were misconstrued. do you believe russia can kit production? >> i believe most countries have
reached their level of production. there are the commercial constraints of the price. now it's either going to be freezing that production, which means if you freeze the production, it actually means reducing the production because you have the natural decline, or you are increasing. i don't see many countries can increase at the current oil prices and fluctuation. i think russia is committed. i respect the fact that they have been working with us for several meetings, all of the vibes we get from russia are positive. i'm more hopeful that russia will commit. >> i know you're being asked questions about the meeting this afternoon, it's part of a process, there's a long-term process, october 28th, a key date. anything in particular you want to hear or a point, you want to make at the meeting? i know the market may be looking too much at conclusion for this meeting, but is there a general
theme you want to address and point, you want to get out of it? >> what i'm expecting and looking for in this meeting is the fact that the process we agreed is working. the committee is set. when are they meeting what will they be discussing? what is the scope? those are the things we'll discuss. it's premature to talk about scenarios of production or to agree on something in this meeting because we just agreed in algeria less than ten days ago. >> finally sir, wac 2019, the uae will be hosting this as well. do you think the same volatility will be blighting us? >> no, i think 2019 we will see greener forms of energy, competition among the different forms of energy to reduce the
cost and price , and we have sen a remarkable decrease in the united arab emirates to more than 80%, 90% from what it was five years ago. we reached a level where it's lower than natural gas to generate a kilowatt hour by solar. the only issue is the batteries and the commercial solution of storage. i'm hopeful by 2019 we'll have positive surprises. we will have a remarkable event and welcome everyone to 2019. >> looking forward to seeing new vienna. ank you very much for your time. that was the uae oil minister confirming his optimism for the meetings today and the process within opec and of course with
russia as well. back to you. >> steve, thank you very much. steve sedgwick joining us live out of istanbul. a lot going on. neil passmore is with us. good morning. what did you greet of what was just said with regards to opec's role, with regard to oil output at the moment? >> look, i think on the face of it, it sounds positive. the markets are clearly enjoying the last two days of extremely constructive, very warm sounding rhetoric from opec and russia, key non-opec, one of thek key non-opec producers. >> i was reading a piece about the problem being that opec is not very well organized. that they get together, they all
agree to cut output, then spend time trying to ensure the different members that they don't increase output or produce more than each individual level country has promised to stand by. >> i think you're right. the next month is incredibly important. that rhetoric is important, sounds constructive and better organized. it shows you how jumpy and volatile markets are at the moment in that balance between undersupply and oversupply that they reacted so warmly. having said that, history teaches us that opec, if one is honest, does not have good, proven demonstrable form in seeing through such plans. as you rightly say, the challenge is coordination within members. a fundamental problem is that opec is good on carrots, but when the discussions are
difficult it's hard to see them through to where they pledged to reach. >> a number of years ago, in the '70s, they used to be responsible for 50% of output, opec. now they're responsible for 30% of output because demand has gone up so much, despite the fact that opec producers are producing at higher levels. so even if they do cut production, because of the change in demand since the '70s, it won swing the price needle enough to make a difference. >> i think that's right and it's reflective of three issues. firstly, as you say, the role of opec. the global -- the share of global production that opec is responsible for what fallen. second, it's a more dispirate,
diverse base. and thirdly, the concentration of those two big swing prodicers outside of opec for the standing of the u.s. and russia at the moment means they have a very significant weight in the market, too. >> neil, thank you very much for your time. neil passmore. now, russia does not seem unified in view of the summit. a break through seems unlikely according to a number of people out there. we'll discuss this during the next couple of days. let's talk about the biotechs. biotech stocks have taken a beating in u.s. trading on worries that a democratic congress would put restrains on drug prices. investors see donald trump's
chances of being elected slimming down after the leak of an embarrassing recording targeting women last week. we'll talk about the biotechs and more with the ceo of amacos therapeutics, the company focuses on research and treatment of rare diseases. earlier this year rolled out a therapy for fibroid disease in europe. the ceo of amicus, john crowley, is with thus morning. good morning. >> good morning. great to be with you. >> tell us about amicus. >> amicus focuses on the field of rare and orphan diseases. it's about a decade old. came together with a couple
entrepreneurs and scientists to found the company. if you think about designing the company from the perspective of a patient living with one of these diseases or a parent of a patient with one of these diseases, what would you want it to look like? what would you want it to do? that's the core of amicus, focused on great science and a patient focus perspective. >> how many diseases do you focus on or potential cures or treatments in. >> so we have three lead programs in the rare diseases, there are many rare diseases. over 7,000 rare diseases that together just in europe affect more than 30 million people. we focus on three. we focus on fabray disease, p pompay disease and another which we call eb. >> how do you go about getting funding in how do the financials stack up and also with regards to coming out with new possible
treatments that still have to be approved, the approval process which can be sticky at times. how does that work? >> we were founded as a private company. initial funding coming from venture capital investors. we became public about nine years ago. now we've been accessing the public markets to provide capital. as you elude to, these are programs that require massive investments, even with the rare diseases, it has to be driven by data. our lead drug for fabray disease which was approved in the eu was a decade in development. >> we're looking at a lot of biotech stocks of late, having come down quite a bit in trade. some people fear a full democratic control of congress and that that could lead to lower drug costs. is that something you think would make a big difference to your company? do you fear a scenario like that? >> i don't think so. for amicus we have always been focused on diseases with
extraordinary unmet medical need. we tried to marry that with great science. we believe if we provide medicines driven by great science, that address diseases that are rare that have devastating consequences, and as long as we're helping to fundamentally transform those diseases, we think if we price the drugs again fairly and provide broad access, i think we'll be responsible in that field. >> how about the approval scenario? if you are dealing with rare diseases, does that mean you then need to take bigger chances with the drugs in terms of testing them and in terms of control groups? >> drug development for any disease is fraught with risk. >> it takes a number of less risk now than decades back. decades back, if you came out with a new drug t was acceptable to take a risk with the population, and today we're not looking at it in a similar way.
>> i think it depends on the disease. with rare diseases, we can't apply the same perspectives that we would do from a risk benefit stand poechbt th standpoint where you would for a disease with a larger population. in rare diseases, where many of them have devastating consequences, oftentimes fatal diseases, we need to do rigorous clinical studies. these drugs need to be proven to be safe and effective. but i think it has to be individually tailored to each drug, each disease. >> thank you very much, john, for being with us. >> pleasure being here. >> john crowley ceo of amicus therapeutic sglos coir purapeutc therapeutics. coming up next, kirill
. hi everybody, welcome back. you're watching "street signs," i'm louisa bojesen. hillary clinton is maintaining her edge over donald trump in the latest national polls since the second presidential debates this past sunday. trump holds the support of 40% of likely voters edging up slightly from 38%, this after the release of a tape friday in which he made vulgar remarks about groping women. clinton maintains a double digit lead over the gop nominee with 50% of likely voters. donald trump took to twitter to attack u.s. speaker of the house paul ryan for being disloyal after the congressman criticized the gop nominee. he tweeted our very weak and ineffective leader paul ryan had a bad conference call where
members went wild at his disloyalty. yet he seemed to be embracing the distance from the republican party adding it is so nice that the shackles have been taken off of me and i can fight for america the way i want to. as i've been saying, i'm super interested in your comments on the presidential race. by all means keep your tweets coming through on that front. president obama offering his first comments on trump's comments video. he claimed trump is not fit for the presidency. >> he doesn't have the temperament or the judgment or the knowledge or apparently the desire to obtain the knowledge or the basic honesty that a president needs to have. and that was true even before we heard about his attitudes towards women. >> obama added that trump couldn't land a job at convenience store chain 7-eleven
saying the guy says stuff that nobody would find tolerable if they were applying for a job at 7-eleven. >> the white house proposed to give a response to russia's suspected hacking of democratic national committee e-mails. the press secretary said president obama is considering a range of responses. russian authorities denied being behind the cyberattacks. hillary clinton's campaign chairman, john podesta, said russian intelligence is behind the hack of his personal e-mail account. >> i was contacted by the fbi, they are investigating the matter. it is a criminal breach under our federal statutes to hack into my private e-mail account. we're -- beyond that, i don't know the circumstances other than we did hear from law enforcement authorities that they confirmed that it was part of the ongoing investigation of
russian hacking into democratic organizations. the ceo of the russian bank, vtb capital, says they are keeping a close eye on the brexit negotiations and are looking to explore a variety of options, including moving headquarters away from london. it was said they were not pulling out of london just yet. let's get straight out to geoff cutmore in moscow at this event. good to see you again. >> thank you very much for that. i'm pleased to have with me kirill dmitriev, who runs rdif, the big russian direct investment fund. he cane giv us a good sense of business conditions at the moment. kirill, nice to see you. let's start with that the imf said they saw some positive
signs of the economy improving. how is that assisting you in what you're doing, building strategic deals and investing on behalf of the state? >> sure. we built a russian economy that went through some difficult times. from the beginning of the year, we expect the growth to resume even at the end of this year, early next year. we are still producing positive dollar returns. all of our investment partners produce positive investment returns. we see a big opportunity for russia. our stock market is up 40% in dollar terms from the beginning of the year. >> we hear from turkey positive news about a freeze or a cut in the oil output which is helping lift prices. how do you see that affecting the economy? >> well, we feel that the message of president putin in turkey was strong and positive about us considering joining
opec cut and this is very important because russian economy still is quite depend dominguez dependent on oil prices. so we feel oil prices will remain stable. >> what is your biggest opportunity running into 2017? sanctions are still being imposed on this economy. the government and you have done quite well working around them. what do you think 2017 brings for you? >> we continue focusing on large transactions. so we will be investing in a major airport in st. petersburg, today we announced a big deal, first deal of briggs bank, funding some hydro power. this is the first briggs launch in the world. so we will be focused on
infrastructure, producing positive dollar results to our investors. >> what opportunities might there be in western europe at it stage for you? clearly there are some challenge s geopolitically and now concerns about brexit. >> we confirmed our investment to arc international, producing glassware all over the world, and we're looking to do production in italy and other countries. i just met with the minister economy of france, he said it pays to stay away from politics. we would like to continue to play an important role to have economic bridges between russia and europe. >> you don't think some of the hotter language with washington at the moment will stop that? >> again, lots of language because of the elections in the u.s. which we have observed has
some interesting comments, but at the end of the day we hope that real politics will prevail and people will understand that russia needs to be taken into account and russia is hope to all major players in the world. >> kirill dmitriev then joining me from rdif. i will wrap it up for the time being from here. still to come, president putin's keynote address. back to you. >> good to see you. great stuff. thanks for all of your comments and questions today. keep your e-mails and tweets coming. we'll see you tomorrow. bye. guess what guys, i switched to sprint. sprint? i'm hearing good things about the network. all the networks are great now. we're talking within a 1% difference in reliability of each other. and, sprint saves you 50% on most current national carrier rates. save money on your phone bill, invest it in your small business.
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good morning. markets now, the bulls look to battle back after the major u.s. indices dropped by more than a percent yesterday. profit warnings, ericsson shares plunging after demand for mobile broadband is weak. samsung is slashing its guidance due to the galaxy note crisis. and the cubs have a huge rally in the ninth inning to move on to the nlcs. "worldwide exchange" exchange begins right now. ♪