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tv   Street Signs  CNBC  November 10, 2016 4:00am-5:01am EST

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good morning, everybody. welcome to "street signs." i'm louisa bojesen. >> i'm carolin roth. these are your headlines. >> the trump trade is in full effect in early european trade this morning. banks and basic resources leading the way higher after u.s. financials staged their biggest one-day gain in five years. protesters take to the streets across america in opposition to the election results with demonstrations in new york, los angeles, seattle and new orleans. the boss of siemens reacts to trump's victory saying geopolitical uncertainty remains
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the single biggest risk, after the german conglomerate beats expectations and unveils plans to list its healthcare business. >> i'm sure that the president and the government is always aware of that, that whatever sentiment comes from the united states will move the world. i'm very confident this will always be taken into consideration. shares in vivendi hit a high note as a strong performance in its music business helps the french media group beat expectations in the third quarter. good morning. welcome, everybody. if opec countries do not implement their algiers resolution, the resulting production cuts will see the market move from surplus to der. deficit quickly in 2017, according to the ia's latest market report.
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it adds that october's global oil supply rose by 0.8 million barrels a day year on year. joining us is neil atkinson at the ia. talk us through some of the highlights and how we should be understanding this message. it means we need to push through with some of these latest promises. >> well, the central message is that we're fairly clear where we stand as far as world oil demand growth is concerned next year. we're fairly clear about the picture for nonopec production. the missing piece of the jigsaw currently is what opec intens to do with its own low production. we have the upcoming meeting on november 30th in vienna where we will get our answer. essentially what the ia is saying is that unless opec does cut production at the vienna meeting, which it signaled it intends to do, or at the algiers meeting it intends to do, it's
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difficult to see how the oil market can balance in 2017. but if it were to cut production as it said it intended to do two months ago in algiers, the market could move back into deficit fairly early on in 2017. so we're waiting to see what decision opec takes. >> thank you very much. we have a packed show today. thanks for being with us at the top of the hour. neil atkinson head of the oil industry and markets division at the iea. glancing at european markets this morning, we have seen markets coming back into full force as we saw indication yesterday the rallies happening across the board with people buying back into stocks that had been sold off a session earlier. initially after we had the initial news of the election win, we saw the big selloff, and then ending out the session flat to slightly higher for many markets today this morning those
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gains continuing. looking at main european markets out there, many of them are up somewhere in the region of -- the ftse being the only market to close slightly yesterday, up by close to 2% today. you also note, we'll talk about this in a bit, the asian markets overnight very, very strong. the nikkei up by close to 7% having had that drop off of 5% initially on wednesday. the topix up by 6%. the sectors here in europe this morning taking a lot of those gains. banks trading higher. films one of the main trading sectors state side yesterday. insurers up. basic resources up by 3%. utilities, food and beverages and household goods a handful of sectors trading slightly lower. the u.s. stock market, we saw this dramatic turnaround after president-elect donald trump defied market expectations with his triumph over hillary clinton. the dow, s&p 500, nasdaq
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finishing the day more than a percent higher. financials in fact, they had their best day since 2011. leading the s&p 500 and the particular sector in there to close up 4%. biotech stocks leading gains in healthcare investors shedding their fears that clinton presidency could have put pressure on the pharma industries. big moves in the bond markets, treasury yields rising to the highest level since january the yield on the ten-year note experiencing its largest one-day jump in five years. we are back above the 2% level. we went from 1.8% to 2% immediately. donald trump promised to rebuild america giving renewed opmism to basic resources and those betting on higher infrastructure spending.
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>> we are going to fix our inner cities and rebuild our highways, bridges, tunnels, schools, airports, hospitals. we will rebuild our infrastructure. which will become, by the way, second to none. we'll put millions of our people to work as we rebuild it. >> carolin is out in the city this morning. we talked yesterday about the short-term moves, how that could translate into the longer term moves. a lot of people trying to figure out what does this mean. words are words before they're put into action. i guess market moves could be short-term market moves potentially. >> yeah, absolutely. over the last 24 hours we've seen this exuberance in the markets which really surprised a lot of people. i was talking to traders who when they saw the futures in the u.s., the dow futures down at
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one point down by 800 points. they went short. then they were blind-sided by the fact that markets jumped in part because of donald trump's more conciliatory comments in its acceptance speech. a lot of people in the city were surprised by how things unfolded over the last 24 hours. now they're piling back into risky assets. we're seeing the trump trade in full force. pharma stocks, mining stocks, and banking stocks, and banking is at the heart of the business here in london. why? it's because of the steepening trade. the higher yields, they benefit the banks, but also donald trump's lower perceived stance on regulation. he will likely deregulate the financial industry. that could be another key positive for the banking sector at large. i was outside this morning. i was trying to gauge reaction from some of the people going
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into work, many of them are financials or financial experts. let's take a listen. >> it's interesting, i think he's pro business on a global saying. but in terms of what the implications are, everyone is very uncertain. that uncertainty is not good for investment in the short-term. >> my view is that it's too early to say. his acceptance speech seemed different from the way he was talking before. if that goes on, that continues, then i think we may be okay. >> are you happy to buy more into safe havens like gold or do you think it will be risk on from here? >> i think it stands aside quietly and see what happens. you have to be a serious gambler if you want to start playing in the markets at the moment. >> for us, what is quite important is how much he will invest with respect to fiscal policy. given senate and house, both are under republicans, we think that the future looks more brighter. and the market has very much
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given that green color to us. >> you get all kinds of responses when you talk to people. certainly there still is a sense of caution. that's also echoed by some of the brokers and the investment banks out there. jpmorgan says we are cautious on equities, even though we like mining and oil. but overall on equities, it depends on what the political landscape will look like in the future that could still be a fractured one and that could weigh on consumer and business investment and confidence. by no means are we out of the woods. by no means can we say we're continuing to see a risk-on rally. i guess we'll have to take it day by day. no one has ever seen a trump presidency. we don't know what his actual policies will look like. we don't know what his cabinet will look like. for now, yes, markets are exuberant and risk on, but this
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could all change quickly. >> it could. carlin, you're staying with us. caroline simmons is deputy head at ubs and is with us in the studio. good morning. >> good morning. >> what do you think it means? what do you think it means for markets in the short-term and longer term? >> we were risk on any way going into the election. a lot of the fundamentals are still there. clearly the focus now has returned to inflation, fiscal stimulus and what that does. the initial reaction is clearly positive towards growth and inflation, we've seen that yield curve steepening and those value stocks performing into that. there were sectors we liked any way. on financials, they do well. not only from the old curve steepening but also the potential that the fed does still hike rates in december, and that could be supportive as well for the u.s. financials.
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then there's also smaller element of how this infrastructure gets funded, and whether any of it is funded through the banking sector. >> on the yield curve steepening, we've gone from 1.8%, initially we saw a drop. by then from1.8% to just above 2%. at what point does this -- does this deflation is now gone, we're in an inflationary environment and we're looking at higher yields. at what point does that suppress the gains in equity markets? >> i think you can go quite a bit further for the bond yields before they effect the equity markets. historically it's 3%, 4% before it has a negative drag on equities. because we're coming from such a low base, we've seen the market reactions bigger than they would have been historically to move. we need to be sensitive to that. >> carolin? >> i'm surprised you keep your overweight when it comes to emerging market equities.
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why is that? if donald trump is going to rip up some of the trade agreements and he's groing to be ripping u trade agreements and looking at a more closed off u.s., how will that help equities? >> we think there will be weakness in the dollar, also the fundamentals within the emerging markets are good. so we'll see shifts in those trade agreements. nothing will change for a white if we learned something from brexit, it's that we have major events occurring, then it's actually business as usual for some time until things get implements. in the meanwhile the emerging markets can continue to benefit from that. >> you also remain overweight global stocks. yes, of course we're seeing a lot of risk asset buying in the last 24 hours, that may continue over the next couple days. how long of a honeymoon period does trump get? everyone is so focused on that
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infrastructure, lower tax trade, but how long until we want to see credible results from him, credible policies, and when does the market get inpatient? >> i think you're right. initially politics drives markets, but then over the medium term it is the fundamentals. it will come down to what gets implemented, what gets changed and what companies are reporting. we're in the middle of the earnings season. it's been overshadowed by much bigger events, it's a decent earning season for most regions. >> thank you very much caroline. caroline simmons, deputy head of the investment office for ubs. in regards to the tax cutters it's the top 0.1% that would get more tax relief than the bottom 60% of all tax payers combined in terms of how that he would translate through. e-mail the show. we'd love to hear from you what do you think?
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if you're in the u.s. especially, your reaction. the address, streetsignseurope@cnbc you can also find us on twitter. you have had a day to digest what many are calling a new world order. in twitter find us at streetsigns@cnbc. you can find me at @louisabojesen. >> still coming up on the show, we'll go for a quick break. after the short break, we'll talk about france/u.s. relations. we'll speak to dominique de villepin right after this break.
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. hi, everybody. welcome back. you're still watching "street signs" this morning. zurich insurance posting a 342% jump in profits well ahead of
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analyst estimates. organizational changes drove profitability at the swiss insurer. zurich's cfo saying a turnaround is underway but that investors need to be patient. >> i don't think organization b that will emphasize above all else execution. that's where we need to significantly strengthen our game. the company knows what it had to do in the past, but hasn't quite achieved those goals. we have tried to put in a simpler organization, one closer to the customer and drive the firm's priorities. next week we'll cover a number of different topics, but execution is a theme. >> strong performance in its music business helped vivendi beat analyst expectations during q3. the strong results offsetting
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weakness in the french groups other media operations like pay tv units. checking in on the asian markets. pauline is in singapore. we're seen spectacular gains in your session. >> we have. we've seen a robust bounce back after that selloff yesterday, especially with the nikkei, which recovered all the losses from yesterday and then added some with the nikkei 225 closing up 6.7%. dollar/yen stabilizing at the 105 level. also shinzo abe planning to meet with president-elect trump in the u.s. next thursday to talk about closer cooperation between the u.s. and japan. the asx 200 saw its biggest one-day gain in five years closing up 3% as iron ore was hovering near two-year highs there. it was a similar story in shanghai where we saw copper producers rallying, two major
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producers reaching limit up. that's because metals having a good day because of the expectation of more physical stimulus and infrastructure spending coming out of the u.s. louisa? >> pauline, thank you very much. the leader of france's far right national party hailed donald trump's victory as an important step towards a new world order. opinion polls show that she is likely to make it to the second round of the french presidential elections which take place next april. francois hollande sent an open letter to donald trump asking to meet with the u.s. president-elect as soon as possible. the french president criticized the republican candidate in the lead up to the vote but hollande is saying now is the time for the two countries to work together to tackle issues and challenges they both face. pleased to say joining us now live from paris is dominique
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devillepin, the former french prime minister between '05 and '07. ca france has been quite critical and openly critical of the presidential race and of mr. trump as well. the headlines yesterday stating donald trump from clown to p. we heard president hollande has openly criticized trump as well. what do you think should be on the agenda between the french and the united states given this meeting that might be taking place? >> well, here the news of the election of donald trump came as a surprise and he's seen as fool. so i believe on top of the agenda is to know better the personality and the policies that donald trump might intechbd
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intend to apply. for the french people and for the french authorities, the future is full of unknown. so i believe the first step should be discover realities, what is going to be the policies what is going to be the action of this new administration. who is going to be in this next administration, and for francois hollande to meet with donald trump and talk directly and make their own judgment on how things could be done. i believe the relationship between france and the u.s. is a strong one. of course we should talk clearly and openly. but i'm not fearful at all about the future. i do believe that they might be really able to understand each other and understand what is going on in the u.s., why the fear and the -- in a way, the anger has been so strong in
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expressing such a vote. but i'm convinced that for the future we will be able to work together. >> sir, the leader of the far right national party stating that trump's victory is an important step towards a new world order. what do you think that means? and what do you think the french politicians should be focused on in the run-up to your next presidential election coming next april? >> well, i think that a force behind the vote for the national front as well as behind the vote for trump in the u.s., there is political passions. mainly fear and anger. so, you can, of course, make a parallel between the two situations. but you cannot compare the republican party and the national front. the republican party is an
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organized party with huge diversity. and i believe tomorrow the new administration will come up with, in many ways, different perspective than the one that has been presented during the campaign. here the national front is a very organized but xenophobic and on the side of french politics. i don't think we should compare the two realities what is going on in the u.s. and what might come up in france. for the national front there's a long way before they can think about winning the elections. it's a vote of people that want to say no, but i don't think that today there is a majority of the french people who are ready for this kind of populous adventure here in france. >> mr. devillepin, this is carolin roth from london. you say le pen won't have major
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chances of winning this election because of the reasons you outlined. what about nicholas solas sarko people say he is well equipped to tap into peoples anger. do you think he could ride on the back of what happened in the u.s.? >> he could try to capitalize in that direction. but we are talking here about the primaries. he's on the top of the fight with le pen who has a different personality and perspective, but i think people will think about the consequences. it's a little bit -- our situation is a bit like the day after the brexit. so, people now are thinking so what, is there going to be really a big change in the u.s. policy? does uk want anything after the brachial plex
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brexit? will they have much more difficulties? i think people will think twice before they just play against the system, just to say no to the system and going with just political passion without reason. nobody knows exactly what will be the effect of the day after. here the speech of donald trump, just after his election, saying i extend a hand towards hillary clinton, which is a very different type of wording than the one he's been using during the campaign. saying i want to put together america back again. it's very different language. so we've seen after the brexit that the people saying vote no to europe, there was nobody there to claim the victory in the uk. so, the complexity of politics is really screened here. and i don't think we can really imagine exactly what would be the consequences and who is
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going to win tomorrow in france and whether this trump wave might have a big impact in europe. the reality is, yes, we should address the discontent of the people. yes, we should address the suffering of the people in france as well as in europe where populism is growing. >> what exactly does france need? we know they need more jobs. we know we need more structural reforms. what are some key points that the next presidential candidate or next president in france will have to address most urgently? >> i think the parallel with the u.s. is quite strong. i always qualify the relationship between france and the u.s. as two twin countries. i think the reality here is a need of recognition coming from -- from the people in
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france. people who are losing their jobs. people who feel they are marginalized in their economy, social and political life. so recognition of their own identity. the recognition of their needs. their right to say no. the anti-system vote is quite strong. but i do believe that the political parties have to listen to these claims. they have to listen to this discontent. and try to -- to have an answer. one of the biggest problems we have is the incapacity of the government and the president to really listen to these voices in the last years. >> mr. devillepin, thank you very much for your time. very much appreciated. dominique devillepin, former french prime minister. now i want to come back to the question of brexit. so many people have been quick
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to draw comparisons between donald trump's election victory in the u.s. and the brexit vote in the uk. nigel faraj welcomed the republican election win saying the brexit movement and the trump campaign had succeeded in reengaging disaffected voters with the political process. we want to go to julia chatterley in westminster. there are so many comparisons, but you pointed out this morning there are many differences between the two events as well. >> yeah, i think so. i think you're totally right in that they both managed to tap into a public anger and a diskon te discontent with the ruling parties. i believe if this were a flashback at elitism then we would have seen republicans lose and congress as well. we didn't see that. in my mind this is also a push back on hillary clinton, president obama, a democratic party that didn't work for the people. i think the significant differences here, perhaps
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they'll play out in the coming months. but i also think for the uk, this has connotations, whether it's brexit negotiations, a hardened stance on the countries like france as you were hearing there who have to fight populism of their own. security challenges, with the push back on donald trump on nato, what does this mean for the uk and the military focus going forward. does it pull the europeans together in their defense consciousness and leave the uk not necessarily a key partner in nato or in a closer union in defense with an eu nation. the other thing, of course, the trade relationships. guys, i have more questions than answers here for you. >> i think a lot of people do. thank you very much. julia chatterley live outside of westminster. we have to take a quick break. check out our world markets live. we're all on twitter as well. julia, carolin and moist. you can also find us on
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streetsignseurope.com.
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welcome back to the show. yes, you're still watching "street signs" i'm carolin roth. >> and i'm louisa bojesen. these are your headlines. the trump trade is in full effect in early european trade. banks and basic resources lead the way higher after u.s. financials stage their biggest one day gain in five years. protesters take to the streets across america in opposition to the election results with demonstrations in new york, los angeles, seattle and new orleans. the boss of siemens reacts to trump's victory saying geopolitical uncertainty remains the single biggest risk, after the german conglomerate beats expectations and unveils plans to list its healthcare business.
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>> i'm sure that the president and the government is always aware of that, the sentiment from the united states will move the world. so, i'm confident that this will always be taken into consideration. shares in vivendi hit a high note as a strong performance in its music business helps the french media group beat expectations in the third quarter. hi everybody. welcome back. we're seeing a lot of market moves this morning, a lot of activity, a lot of volume as well. it should be noted on wall street yesterday we saw the highest trading volume since june. and we're seeing again a call for the impliied open today to e substantially higher. especially when looking at the
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dow jones index. the s&p and nasdaq also looking at some green there. when it comes to european markets, we opened in positive territory. we saw that initial drop off, the initial shock reaction in yesterday's trade. but managed to close out higher on many of these markets. not just in stocks, but also in other asset classes. here in europe, by in large buying across the board in the still relatively early trade. let's talk about the fx markets, we saw massive moves globally. the head of fx strategy at nomura is with us. we're looking here at what the prices are saying this morning. we had some huge moves, a four cent move overnight in the euro/dollar. a massive range trade in the dollar/yen. what are you focussing on this morning and how do you react to the massive moves we've seen over the last 24 hours?
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>> well, i have to say these moves were very large, in many ways unexpected. i think initially as the results were coming through, the market, most people in the market were expecting a brexit-type response. many people were putting risk off trades on, expecting dollar/yen to fall below 100, and the dollar to do well against emerging market currencies. but what surprised many, ourselves included, is how quickly the market moved away from risk aversion and priced in the chances of fiscal stimulus in the u.s., especially given that the republicans have a clean sweep of house, senate and the presidency. so we've had this risk-on move going on for the past 24 hours or so. as a result we're inclined to expect those moves to continue. we do think dollar strength will continue from here on with
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reducing risk generally doing well. there are still question marks emerging markets. some emerging markets given the uncertainty around president-elect's trump policies on trade policy. >> what would your favored trade be at the moment? where do you think there's the most upside if this will continue? >> in our view the biggest upside is in the dollar against the euro. we expect the dollar to do very well off the back of stronger expected growth, the fed timing policy. on the euro side, we think that euro now given the election calendar for europe over the next three to six months is now liable to have its own upset in terms of nonestablishment parties or policies coming into play. >> what is your target on the euro/dollar? >> we expect a move towards 105 by the end of this year but could easily see a move towards
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parity over the next 6, 12 months. >> bilal, is there some move for the yen, even the dollar to outperform over a short period of time over the next couple months? there's still a lot of uncertainty when it comes to mr. trump's cabinet and his policies. >> i think there will be uncertainty. i think the uncertainty now has moved on away from the surprise of trump and much more around fiscal policies. for me the key question is will the markets expectations or fiscal stimulus be met or not? if, for example, he makes appointments which go -- which make it less likely for a fiscal stimulus package to come through, if he has disagreements with paul ryan around his budget, we could have problems for markets.
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>> the elephant in the fx room. let's talk about the mexican peso, yesterday at one point it plummeted by 13%, slumping to a record low. yes, it did recover throughout the trading day. what did you do yesterday or what did you tell your clients? should you buy on the dip in the mexican peso? i guess it can't get much worse from here. >> our view with the mexican peso is that the worst is not over. it did see a large move yesterday. we don't think we'll see as big a percentage move. we do think we'll see further weakness in the mexican peso. in many ways for us, the mexican peso will trade much like the british pound did around brexit, where there was initial weakness, then the pound went sideways for a while. once we got clarification of dates around the uk's exit from the european union, then the pound saw another leg down. we think something similar will
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happen with the mexican peso. we saw the weakness yesterday. we have a period of uncertainty around whether and how trump will exit from nafta, if he does. and whether he will impose restrictions on remittances to mexico. once we get that clarification, that's where we could see another down leg in the mexican peso. for sure, we're not looking to buy the mexican peso, we're instead looking for the next move down. >> thank you very much for being with us, bilal hafeez from nomura. now, markets seemed to have turned around. people on the streets are not shrugging off the election result. protests have erupted across the u.s. including one gathering that has drawn thousands of people in new york outside trump towe tower. >> in the early hours of wednesday morning, hillary clinton called trump to concede the election. moments later donald trump addressed his supporters
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offering his promise to the world. >> i want to tell the world community that while we will always put america's interests first, we will deal fairly with everyone. with everyone. all people, all other nations. we will seek common ground, not hostility. partnership, not conflict. >> and in an unorthodox move, clinton addressed her supporters and the media the morning after. >> this is painful, and it will be for a long time. but i want you to remember this -- our campaign was never about one person or even one election. it was about the country we love and about building an america that is hopeful, inclusive, and big-hearted. we have seen that our nation is more deeply divided than we
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thought. but i still believe in america and i always will. and if you do, then we must accept this result and then look to the future. donald trump is going to be our president. we owe him an open mind and the chance to lead. >> let's get out to tracie potts from standing by in washington. good morning to you. i guess what we heard from hillary clinton and also from president obama were some very conciliatory tones. were you surprised by that? >> no, because donald trump said and some of his advisors and other republicans said all along, if he wins, the donald trump we see as a president will not be the donald trump that we saw as a candidate. he now has a mandate, but part of that mandate is to unify this deeply divided country. we will see him at the white house today, but we're also seeing protests coast to coast. on the east coast, the west coast, the midwest, at least 16
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cities that we've seen. clearly at least half the country with clinton having won the popular vote not thrilled about donald trump being in the white house. he has a mandate to unify. not surprised he came out and talked about that. the question is can he do it? will he come up with policies that will work for this country, that will produce growth, that will put people back to work. but also policies that will not completely alienate the other side so far. that process begins today. he goes to the white house, talking with president obama. mo l more logistically about the transition between the presidents. we understand -- the white house spokesman saying he will likely talk to trump lightly about his executive orders, immigration orders, climate change efforts that trump will likely change on
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day one. >> interesting handover. there was no love loss between the two gentlemen in the run-up to the election. thank you very much, tracie potts joining us there via nbc news. coming up, is trump's victory a win for big business? i think it's quite interesting with regard to the less intervention for setting drug prices where it might be seen as really good if you're an investor or in the market, but for the normal people out there, do you want drug prices to go higher? we'll have reaction after the break.
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>> hi everybody. welcome back to "street signs." the ftse mib in italy was among
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the few european markets to close lower in the wake of donald trump's election victory. italian stocks dropped heavily at the market open, pared early losses to close down by 0.1%. also just this morning slightly outperforming, so coming back a bit more. we asked the ceo of intesa sao paulo for his reaction to trump's victory. >> now we have a president, we have to deal with the situation. in reality, usa is the country of big investors, so in the end what we consider important is the team who will support trump in managing usa. i think in the end from a macro point of view, you can have a de-valuation of dollar and postponement of interest rate rise from federal reserve. >> but i would suggest some of
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the bank bashing from mr. trump in the run-up, the concern about how he feels about global free trade, his relationship with some parts of the middle east are big questions. to say it's the end of the uncertainty, is that a bit premature? >> it is clear that from a trade point of view that there are some points to be checked in the future. so we have to see if in reality he will maintain what he told during the campaign. i think that in reality, it is not in the interest of the usa to take different position on these points. maintaining a fair relation with other countries is very important. so -- >> yeah, but many, many different authorities have said a lot of his promises, a lot of his spending priorities, they're unfunded. the concern about the size of the u.s. debt, which is months away from $20 trillion any way,
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surely this is just another big concern for the west. >> it is clear the position of the debt is something that has to be assessed with big attention. it's very important that the appointment of the treasury secretary in the future for the usa. because in the end, the debt to the usa is significant. if you focus attention on that, this could be something dangerous for the united states. in the end, i think, as i told you, in a country where we have the big players from an institutional point of view, it's difficult to underestimate these points. >> what do you think the implications are for both brussels and for the ecb at this point? now i think political masters in europe have something new to deal with as far as the united states are concerned. they will have to rethink their strategy here. >> i think this could be really a good opportunity for the european union.
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they can stop the strange game of working for austerity, for growth, i think that now it is time for them to work for a really european union that can work with something like a minister of economy of the eurozone, and work together, not leaving only to the ecb the task to work for growth and stability in the eurozone. i think they can do now really another very important point in the eurozone that can work. >> siemens intends to list its $15 billion healthcare unit to focus on core technology and automation businesses. the german group also warned that geopolitical uncertainty is denting orders. the firm said timing and size of the public offering will depend on market conditions. cnbc spoke to the ceo of siemens
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and asked about the impact of the u.s. election on his business. he told cnbc the u.s. election has far-reaching implications. >> i'm sure the president and the government is always aware of that, that whatever impulse and the sentiment that comes from the united states that will move the world. i'm confident this will always be taken into consideration. >> donald trump's surprise win sent shockwaves across the world with many wondering how the new leader will reshape america's foreign policy. richard engel has analyzed global reactions. >> donald trump is the president-elect of the united states. >> reporter: there were gasps around the world. headlines, trumpopoclyse, and echoes of the brexit vote against the european union establishment, deeper concerns tonight that the world's shining light of democracy has gone
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dark. >> you cannot look at president trump and call him the leader of the free world, because america has increasingly abdicated its legitimacy to that title. >> reporter: those welcoming the most were right-wing parties who rushed to embrace trump as their new hero. he's like me, joked the filipino president, accused of turning his police that anti-narco death squads. hungary's victor orban, who walled off his country to keep out refugees, called trump great news, and russia's vladimir putin. >> i think i would have a very, very good relationship with putin and a very, very good relationship with russia. >> reporter: putin said today he's ready to open a new chapter with the u.s. >> they see in mr. trump,
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president-elect trump somebody that they can do business with. there will be a honeymoon period for sure. >> reporter: on foreign affairs, trump is seen unpredictable, and that his presidency could usher in global instability. questions are mounting on whether donald trump will loner the current administration's nuclear deal with iran, which he has criticized in his campaign. legal experts say the new leader could overturn parts of the agreement. according to state media, however, iran's president said that resolution could not be changed by a single government. want to get out to hadley gamble in dubai. is that true? the iran agreement has never been ratified by u.s. lawmakers. >> it is true that it's possible that the president-elect might be able to make some changes. of course we've heard over the
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last 24 hours from tehran that basically said that no changes should be made or can be made. so you can expect this conversation to be one that continues. the big question here in the gcc is whether or not any changes to the iran nuclear agreement would impact iran's ability to produce their oil and how that would impact prices. other questions range from what saudi arabia plans to do next. they were hoping for a clinton victory here, so they could return to a more traditional foreign policy arrangement with the united states. they know the clinton folks or the folks she would be bringing in would be people she was working with from riyadh, and how that would impact relations with iran, syria and the broader regions. and questions going forward for the relationship with israel, prime minister benjamin netanyahu weighing in sounding
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thrilled that he would have another friend in the white house once again. and the other big question going forward, whether or not these arab countries will feel like they have a partner in washington going forward. over the last eight years there's been questions surrounding that relationship with president obama after what happened in 2011 with hosni mubarak, a lot of disappointment in the region. a lot of questions but no panicking yet. >> thank you very much. hadley joining us live out of dubai. while you were talking, some flashes hitting our wire from the european commission president in berlin, he says we need clarity from mr. trump on trade and climate change. juncker saying they do not expect a trade deal in the mnex two years. the euro/dollar around 108. brian klass is a fellow in
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comparative politics. he's with us this morning. good morning. >> good morning. >> so juncker saying we need more clarity on trade, climate change. he made a lot of promises about what he would put up front in the first 100 days of office. he will be renegotiating nafta, putting on tariffs on goods from mexico and china? >> we had an irrational reaction, and people are saying maybe what he said isn't what he would do. it's strange to think that way. he would be selling out his base then that put him in the white house. there are political constraint s that are put on him now, and this man values loyalty. he will put a lot of his allies in the white house with him. his chief advisers in the
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campaign were yes men and his sons. so those make it clear to me he will not back down on some of these promises. >> i was reading data earlier, with regard to the tax cuts, that the top 0.1% through the tax cuts that he said he would implement, they would get more tax relief, the top rich people. the bottom 60% of taxpayers combined. doou think we'll have to go through this whole realization of a lot of people from the middle to lower classes in the u.s. that don't have a lot of money, that he might not be having their backs. and that a lot of things said, that he's not going to stick to them as we saw with promising to return 350 million pounds to the nhs, the healthcare system here per week if we voted to leave the eu, and the day after we voted to leave, they said, it ws a mistake. >> we'll see a lot of people
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deeply disappointed. the trump promises were unrealistic. if you're a coal miner in west virginia expecting this job to come back. it's not going to. in the meantime, trump will make good on his promises to pull money on climate change funding. he previously called it a hoax invented by the chinese. this is a deeply worrying problem. i think the populous rhetoric of the campaign is undleliverable. >> brian, thank you very much. brian klass from the lsc. that's it from carolin and myself. we'll see you tomorrow for another "street signs." take care. rsuit of healthier. it begins from the second we're born. because, healthier doesn't happen all by itself. it needs to be earned every day. using wellness to keep away illness. and believing a single life can be made better by millions of others. as a health services and innovation company
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good morning. stocks rally around the world and u.s. futures are pointing to a positive start at home. new this morning, an iea report says opec production has hit an all-time high. and mr. trump heads to washington. the president-elect and his wife will meet with the obamas at the white house today. it's thursday november 10, 2016. "worldwide exchange" begins right now. ♪ good morning. welcome to "worldwide exchange" on cnbc. i'm sara eisen. >> i'm wilfred frost. good morning to you from me as well.

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