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tv   Street Signs  CNBC  November 14, 2016 4:00am-5:01am EST

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good morning, everybody. welcome. you're now watching "street signs." it's monday, i'm louisa bojesen. the european shares are lifted higher out of the gate with banks and resources leading the charge. donald trump begins to pick his team selecting washington insider and rnc chairman reince priebus as his chief of staff while tapping right-wing pundit steve bannon as his chief west wing strategist.
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and after the german power utility company has shares higher, the investors are sluggish off profits. and the tech market has an $8 million business acquisition to harman national. good morning, everybody. welcome. hope you had a fantastic weekend. were you reading all about the president-elect as i was, or were you putting it to one side saying you've had enough? we are looking at the european equity markets opening a little higher up by right around a percentage up point. by and large, most of the european equity markets are trading across the territory as seen here. and we see that reflect in the main european markets. with all of them trading in positive territory, some by 1.5% when it comes to the cac40.
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some of you are near 4.5%. when it comes to the sectors out there, basic resources are strong, 2.5% for financial services. they are higher by almost 2%. telecom's real estate and utilities there. if we are to see a loose anything of regulation, for example, in financial services as trump proposed, same for the pharmaceuticals, we could see these boost. let's just recap what type of markets we have been seeing over the last week or so. because the post-election stock rally in the u.s. was more subdued on friday. the dow gaining 40 points to close out the best week since 2011. industrials and transports outperform on the back of infrastructure spending from the president-elect while gold fell by more than 6% for the worst
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week since june. so the dow up by something like almost 5.4% with the best showing since 2011. and the s&p 500 seeing an almost 4% gain, 3.8% gain, the strongest in two years as well. meanwhile, speaking of cnbc on friday, jeff gunda shared his market news saying he likes financials at the moment but is avoiding something. take a listen. >> when we get the closes of 21/30, down nine days in a row, culminating in a crash overseas when the news was apparent that trump would win, that turned out to be a buying opportunity. but right now the market is in no man's land. you have the 2200 type of ceiling. if you look at the charts with a
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2100 type of floor, let it prove itself either way. all right. here at the top of the hour i'm joined by the ceo of hercules capital. how are you? >> good. >> happy monday. a new beginning after last week. >> i am shell shocked but yeah. >> some people are talking about how you're going to be looking at a business from now on. what does hercules do? >> we provide capital to growth companies by leading venture capitalists in the country. we have a portfolio that provides capital to technology and life sciences companies. >> so a debt provider. >> so we are a debt provider. >> now a lot of people would say investing in technology right now is not the way to go given
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that we have seen these massive runs in tech stocks before the election, only then to see a huge reversal because the thinking is he is not close to the trump or the trump administration. >> the question is that many folks in the silicone valley were against mr. trump, but the life sciences side has done quite well. we are seeing in our portfolio a significant resilience coming through the companies today. and some technology companies emerge as quite strong. you still need american technology to advance further. trump was against many of the backers that supported technology companies that didn't support him and supported hillary, but i think they will go to him just fine. >> you don't believe now is the time to focus back on kind of core old american stocks as opposed to all the new tech? >> well, clearly we have seen a rally going on in course talks like caterpillar.
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ironically, smith and westin have gone down after trump came into office, but we still need technology if our every day lives. our mobile phones, big communication, big data analytics, that is all important of technology and part of our lifestyles we go to today. >> so including the political environment and putting it to one side for a second, there are those who say the run-up smells too much like 2000 and we need to see some type of an eveninging out in this run-up to technology. >> well, having lived through 2000 i would tell you -- >> i did, too. >> i would say the market is quite different between then and now. today evaluations are certainly higher in certain sectors, but we are seeing pull-back in other areas to make it attractive. we are still seeing good signs of adventure capital. so far we expect adventure capital in 2016 to be about $50
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billion, albeit down from $75,000 la$75 billion last year. >> you say technology, life sciences, clean and renewable technology, again an area where a lot of people would say trump is trying to loosen the regulation as indicated in the oil and gas sector. and that would be positive. the oil and gas stocks are negative with clean energy players out there. >> absolutely. we have a little bit of a pull-back. tesla's evaluation most recently is a threat of trump coming into the administration. but we also see other areas. we know we'll stand for just solar and other energies related to fossil fuels. one company we are very excited about that makes electric bus manufacturer. they are competitive. they make an electric bus to compete with the chinese
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manufacturer and is doing well. they are seeing a strong order. >> is this called proterra? >> proterra. listed as private and doing quite well. >> what should we anticipate over the next few days in the ipo market? >> unfortunately the ipo is not that exciting. i hate to say that to viewers of yours, but we are struck by how non-existent it is today. we are seeing very strong interest and continuing to acquire companies. it's been busy for us and we are excited about the m&a opportunity. >> let me just interrupt this for one second just to bring some flashes that we're just getting through from -- the ecb
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projections are predicted on the current portion of things persisting. he has an abnormal degree of uncertainty after bonds have gone nuts. the presidential stock is to be careful to draw conclusions from the market developments and the movements result from the fact that inflation forecasts are where the market is at the moment, especially stateside. he talks about how so far the development scene points to a u.s. rise in economic growth but in the context of an america first policy. not sure if that is to mean that protection is back on the table, but he's definitely indicated and says headline inflation is
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above 1% as of next spring. does this also mean given these inflation projections now that much higher we'll see a lot more aggressive wording from the fed heading into next year, regardless of whether we get a hike in december? >> well, the hike in december is now up for grabs. it's very clear now that trump has gone to office and trump's very strong views on the fed policy. and mrs. yellen, in his view, that the fed should be more controlled by the government. so it's supposed to be independent. we are prepared for the portfolio to be attractive. and we provide venture debt, which means it allows investors to get access to yield by paying our stock. we pay a 9% dividend stock as an example of that. >> right on. thank you very much for being with us. >> thank you. >> henricko is the ceo of
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hercules capital. siemens has agreed to buy mentor for $4.5 billion or $37.5 per share. they expect 100 million euros within four years and the transaction is expected to close in the second quarter of 2017. mentor's 8.1% shareholder elliott management has committed to support the siemens deal having said the shares are completely undervalued. and novartis is looking to sell their eye care division called alcon. the chairman said alcon has not developed as expected in the last two years. and samsung will arequire the auto supplies from harman
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for $8 billion. it will boost in developing automotive technologies. that's a big deal in the country. and greencore plans to buy peacock foods for $747 million. the irish food company announced a 2% rise in operating profit while the company's total dividend rose by 8.1%. speaking to cnbc earlier, the ceo discussed the merger in more detail. >> for five years now we have tried to build the scale in the u.k. and the u.s. and we have been looking for a number of years for the right way to scale up the u.s. business. unfortunately, we came across peacock foods back as early as march, actually, and we have been working with them on a bilateral basis to put in place the arrangement that we announced this morning.
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we'll end up post transaction about the same business in the u.k. >> and the operating profit rose by 7% thanks to cost-cutting measures and property sales in what has otherwise been a difficult period for the german utility. the cfo said the company is on track to meet the upper range of its full-year forecast raising the forecast by 300 million euros. and taylor wimpey is on track to improve profits this year despite smaller cans collations to 13% year to date. the u.k. home builder struck an upbeat tone as trading followed up with the eu referendum. you've been super active already this morning on twitter. good morning to you all. i'm glad to see that you are
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wide-eyed and bushy-tailed this monday morning. keep your questions and comments coming. i would love to use them throughout the show today. and you can tweet the directly as well @louisa bojesen. now in other news, a rare supermoon, it's actually the moon, but it's called a supermoon will be lighting up the sky as it orbits closer to earth than what it's done since 1948. the full moon will be at its biggest and brightest today -- look at that, quite extraordinary. the closest full moon to date in the 21st century according to nasa. don't worry if you miss it because apparently there's going to be another supermoon on the 14th of december. i'm told the one here in november today is going to be bigger than the one seen in december. so if you're feeling moody or strange this week, that might be why. also, if you're an avid sky watcher head to for more statistics. we'll be back just after this. we've got plenty more guests,
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lots of discussions coming up. so join us on "street signs" on the other side of the break.
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welcome back. you are still watching cnbc's "street signs." i'm louisa boys en. two people have been killed following a 7.8 magnitude earthquake in new zealand. strong aftershocks continue to hit the region. nbc's lucy cavanaugh has more. >> reporter: we just heard from new zealand's prime minister who said two people lost their lives in this earthquake. 7.8 magnitude. they don't have indications that the death toll will rise, but they aren't ruling it out. >> at this point i want to give you precise information of what caused those fatalities, but as soon as we hear the information we'll come back to you. >> reporter: military helicopters are being sent to
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the village near the epicenter about 57 miles away from christchurch. the second largest city in new zealand. the earthquake struck just after midnight local time so people were in bed getting ready to go to sleep. >> the whole house was moving. >> it was creaking. >> it was creaking, moving, yeah, it was pretty -- it was a scary thing. >> reporter: it was felt 150 miles north in wellington, the country's capital. we saw roads cracked, a highway on-ramp collapse and the terrifying sounds of tsunami warnings surrounding telling people to move to higher ground. christchurch was devastated by a deadly quake in 2011. 185 people kill in that one. that was a 6.3 on the richter scale. this one 7.8, but it was deeper
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in the ground. there was slightly less destructive. but daylight is just breaking over there and emergency workers are still making their way to that coastal town. so it's going to be a while before we know the full impact. lucy cavanaugh, nbc news, london. now in business the korean yuan has weakened for the fourth straight day as the prosecutor's office said it would investigate corruption allegations against the president. deepening political crisis in south korea has prompted the finance minister to say that the government is ready to implement measures to stabilize financial markets if needed. the scandal has also led to public demonstrations across the country calling for the president's resignation. the chinese president xi jinping and president trump talk talked on the phone. xi jinping said cooperation is
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the only choice for relations going forward. trump's victory brings a new degree to uncertainty to the geopolitical relationship between the two largest economies. and china released a mixed set of data. the retail sales are mixing the forecast but investments edged up by 8.3% in the first nine months of the year. and the nikkei closing at its highest level since february on upbeat growth dates on a weakening yen. july to september real gdp rose by half a percent outpacing expectations for a 0.2% increase. and stock markets staged an impressive rally in the aftermath of president-elect donald trump's win. is this a trump trial for just the classic post-election boost? >> markets are up in the states after donald trump's election
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win. in the first two days, we saw the dow and s&p go up 2%. but here's the thing, the stock market always goes up between election day and inauguration day. back to 1952, 12 of the transition periods saw rises in the stock market. in fact, there was significant gains for the s&p 500 with a full 3.7%. that's a lot for just a few weeks. but after that, that's when things get interesting. and you realize the market was usually overreacting. in the first 50 trading days after inauguration, the market's average return was negative. and if you look further out, 100 to 150 trading days, we saw very small positive returns. there was actually zero correlation, and i mean exactly 0.00. between what happens now and what happens after the president takes office. and if you want to take it even one more step, just look at every year between early november and mid-january regardless of elections or not. the median return is 3.5% since
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1980. so maybe it is just a seasonal thing and nothing more. with all that said, be extra careful of using the short-term trends to predict what's coming next year. we really don't know. all we know is the markets like to move up this time of the year, elections do not. back to you. continuing our tech conversation, we are talking technology with a guest here, netflix is down by 6%. the under-performing tech stocks are linked to the fact that overseas profits could be tax-free under a trump presidency. the managing director of business associates is here with me this morning. good morning. >> good morning. >> do you think this is bad for technology? >> it is not necessarily going
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to be so good for technology shareholders if we're going to be playing around with the way taxes are treated and stuff like that. but one of the major reasons why tech stocks fell so badly last week was a lot of them have this image of being anti-trump. they were on the side of the democrats in the run-up to the election. and there is a fear that trump will do something to get his own back, so to speak. i think this is probably unreasonable. i don't think that is precisely how he's going to go about it, but his focus is on improving the situation for the people who voted for him, which is anybody other than that group, so to speak. they could get left behind. but i think that is where the problem lies and people are interested in coming to alcoa or caterpillar at the moment. >> and there are people in silicon valley are worried that the anti-immigration stance will
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prevent people from moving to silicon valley to work within this environment that tradition has brought a lot of people from other countries come in. >> you presume there will be a distinction between skilled and unskilled immigration. i would be surprised if there is that much of a problem in terms of skilled immigration, which is what the tech companies are interested in. >> i guess maybe it is a psychological impact, whether people would want to move to silicon valley or whether they try to find an alternative. >> you could work on that principle. i think in one sense it's overdone. but the other side was the path that tech stocks had performed fantastically well. and there is a degree of, you know, reasonable profit taking and this is just a catalyst. what we're looking at right now is not so much the situation where tech stocks in general are problematic, but within the tech
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sector there's a swing away from the sort of software consumer focused ones, which is the f&g stands for to more of the hardware companies in the supply change and on the equivalent side. >> i find it interesting you think that because it seems like a couple decades ago when i first started all the hype was precisely around hardware. and over the last decade especially, we have really seen technology being more and more defined by anything but the hardware. but you think we're heading back to that. >> i think so. we just had the acquisition today of the $8 billion acquisition. but this is a company heavily involved in all of technology going to smart cars and yet because it's established manufacturer is trading on point discount to the average p.e. now, that gives you an idea first of all of the value in
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that route. secondly, we see a pick up in global growth. china is not doing so badly, but it's the companies with cost such as manufacturers who tend to benefit the most. conversely, the software companies, they all upgrade to incredibly high margins and maybe they will enjoy the top line growth. >> and you talk about stocks and shares with skyworks and western digital. >> yes. i think a good place to start is in the chip area, in particular, the smartphone supply chain. we got hurt very badly in the first half of the year over concerns over apple. and i think now there are two things, samsung's created a situation where not just say apple can benefit, but also companies like sony are doing better than expected. secondly, these handsets have
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twice as much memory as the previous ones. we saw a shortage and i think this will come through in the short-te short-term. >> thank you very much. volkswagen confirmed that it's looking into emissions irregularities that audi cars are being reported to have. but it isn't yet clear whether this was an attempt to cheat regulatory tests. last week a german newspaper found cheating software in an older audi model. bentham europe plans to fund a $100 million claim after
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running a price cartel for the last 14 years. they will back truck buyers including volvo, daimler and volkswagen. they estimate 10 million trucks were sold in the period each overpriced by 10,500 euros. toyota agreed to settle a u.s. lawsuit for up to $3.4 billion. the federal class action that was brought in los angeles by suv and truck owners who claimed models of the largest carmaker had insufficient rust protection potentially damaging vehicle's structural integrity. the proposed settlement covers 1.5 million pickups and suvs. lovely to hear from you, barry writes in talking about eight years of qe, one, two, three, stimulus that doubled the u.s. national debt. is america going to launch qe 4
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for infrastructure repair? and qe 6 to slash taxation doubling the debt again? thank you for the point, barry. we'll continue the conversations with our upcoming guests. we have load more for you talking about the u.s. election. and we'll cross to saudi as well to get an update from maria. and we'll talk about the russia/u.s. relations in more detail. all that is coming up. while on your break, take a look at the world markets blog. it runs throughout the trading day with lots of good stuff on there. find me @louisabojesen or on e-mail. see you in a second.
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hi, everybody. good morning.
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welcome back to "street signs." i'm louisa bojesen. europe is lifted higher out of the gate with bank resources leading the charge. the nikkei closing at the nine-month high on the upstate to the gdp print and a weaker yen. donald trump beginning to pick his team selecting washington insider and rnc chairman reince priebus as his chief of staff while tapping the right-wing pundit steve bannon as his west wing strategist. and now shares are higher after the german utility company predicts upper earnings helping investors to shrug off a slump in quarterly profits. and samsung electronics steering towards the connected car tech market with an $8 billion acquisition of harman international. hi, everybody. welcome back. you're still watching "street signs" here on cnbc. i want to recap what type of
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markets we're looking at in europe. we have green across the screens. when it comes to u.s. futures and how we're setting ourselves up stateside, look at the right-hand side of the screen in the green. we should be seeing green at this stage. we are still five hours away from the u.s. market open, but the dow jones is up 100 points or so as we saw there. in europe we're hanging on to the gains up by .5% to 1.5% with out performance taking place there. and a strong showing last week following on from the presidential election in the u.s. recapping the fx markets here at this relatively early hour here in europe, the euro/dollar at $1.0750. just a little lower in today's morning trade. the same for sterling against the dollar. so you're seeing a little bit of a lower trade there. the dollar/yen still around that 17 to 108 level. we saw huge moves yet in
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currencies, but the dollar/yen was definitely on the run. and the u.s. against the mexican peso also just a little bit higher on the right-hand side of the screen. we'll continue to talk about the fx markets and what we're seeing in terms of business and trade. peg reid is the ceo of ford's development corporate and is joining us this morning. good morning, peg. >> good morning. >> first of all, what do you do? who is 4x development corporation? >> we are a b2b business helping businesses get into the space, new or companies that want to expand their business globally primarily outside the u.s. >> and you're seeing a pick yup as of late? >> we are seeing a pickup as of late outside the u.s., yes. as a result of dodd-frank it is dead in this particular area, but places like eastern europe, asia, russia are very good to visit. >> it is almost like we're taking the place of these --
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>> yes. >> donald trump will do away with parts of dodd-frank as of what we understand right now? >> yes, mehe'll try to pick the best pieces out of it. it has created a strain on the u.s. economy. so the treasurer secretary is the one that wants to abolish dot-frank. there will be a change. >> it's interesting because a couple months ago, even, at least a couple years ago as well, the vast majority of the people were yelling that we need regulation to be put on bankers especially or on the financial institutions to prevent another financial crisis from taking place. and now we're against that. you know, i mean, the tables have turned real quickly. >> i'm not so sure the people in america are against that. the man on the street i'm not so sure is against that, but it
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looks like the washington insiders and the republican party are definitely going to change that up. and unfortunately one of trump's potential treasury secretaries had much to do with the 2008 crisis in the world with mortgage-backed securities. so that is a bit uncomfortable for people, but he doesn't care. if he makes people unhappy, he's fine. >> yeah. in terms of business that you're seeing in the u.k. after our brexit vote here, what are the changes you have seen? >> quite a bit of concern over where one should be regulated because of the eu now part of the whole mix. so i think you'll continue to see the pound weaken. i think you're going to continue to see e agencies look to move their businesses, either to ireland or to germany or to france. and i think it's going to create volatility in the market, between what has happened in the
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u.s. with the presidential elections and what happened here on the vote, i think volatility is here to stay for the next 18 months, which is great for the currency markets. >> so the trade is called long dollar? >> i think long dollar initially. when you look at the past republican presidents, reagan and bush, the dollar came out strong initially. so that will probably continue for a good three to six months. additionally, you'll see a more hawkish federal reserve. they have been very careful about raising rates, but donald trump feels that is the direction we should go. so given that you'll see a spike in the u.s. dollar. >> do you fear that if trump doesn't wash the way that he speaks, that we would be looking at the international community interpretinging what he's saying to be a current trade war scenario. em. >> yes. between mex cohn and china next week, you'll have that issue
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present itself. for the currency markets, this is perfect in terms of volatility and it's what they love, right? the stock market doesn't particularly like that, but the currency market actually enjoys it. i think we'll be seeing a lot of statements that we'll be trading around in office. and i think we have to keep a close eye on china and mexico in terms of how things progress. less on the yen, more on china and mexico. >> we had a guest on yesterday with regards to the euro dollar who said we were heading to 1.05. do you think we'll see that scenario? >> we could see that. we need to continue the look at growth in the company and see where that is going. however, you'll have a lot of infrastructure brought back to the u.s. if dodd-frank gets repealed. you'll have the u.s. market start to take off again. from that perspective, that's another positive for the
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economy. >> peg, thank you very much for being with us. peg reid there. and donald trump made his first appointments to his white house administration. reince priebus will be the white house chief of staff while his campaign chairman, a man who was the former head of the right wing news outlet breitbart steve bannon will be leading as chief strategist and senior counsel. now priebus with close ties to the congressional republicans including the house speaker of paul ryan will be playing an important role in advancing trump's policies through congress. bannon, meanwhile, has been an outspoken critic of gop party members. critics have accused him of anti-semitic and one viewed their feelings in the past.
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now in his first interview, listen to this. >> they are talking about building a fence. would you accept a part fence? >> yeah, there could be some fencing. >> what about the pledge to deport millions and millions of up documented immigrants? >> what we are going to do is get the people that are criminal and have criminal records, gang members, drug dealers, we have a lot of these people. probably 2 to 3 million, but we're getting them out of the country. >> tracie potts is here from
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washington. we're learning more about the appointments. and just starting with the appointment of stephen bannon. he's anti-semitic and muslim. he was charged in '96 with domestic violence and battery as well. he's going to be one of the main supporters, one of the main aides to donald trump now. >> reporter: and what this tells us is that donald trump is relying on people that he already knows. that he's keeping things close. steve bannon, the ceo, rooieinc priebus, you saw him come up during the victory speech when he talked glowingly about rooeie priebus. kellyanne conway said he's keeping it close to the vest. just a few close advisors in the
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white house. the other thing you mentioned was immigration. that he made a big point about this during the campaign, but now he's step up back to check about insurance policy. he's not completely scrapping obamacare as he talked about during the campaign. he says he'll appoint pro-life judges, but when it comes to same sex marriage, trump said he's okay with that because it's already settled law. remember all the chants of "locker up!" . he's still thinking about a special prosecutor, but we are clearly not hearing the type of rhetoric he used to win the election. >> tracey if, hang on for a second. the u.k. leader is meeting with
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trump after claiming that teresa may's conservative government needed to, quote, mend fences with the upcoming u.s. president. the brexit campaigner previously made an appearance with trump on the campaign trail. trac tracey, do you think, because there's a lot of speculation, do you think that donald trump would know that nigel farage is not a member of the u.k. and doesn't represent the u.k. in all terms of government position. >> certainly he would know that, but he's also aligned himself with the breitbart movement. but as in president, teresa may
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congratulated him and said they want to continue to work together as partners. donald trump seemed open to that. does he know he's not an official member? yes. >> but he doesn't always take the official route, so to speak, and that is probably evident by the meetings being held over the last few days. >> tracie potts joining us live via nbc news. the leader of france's national front party praised donald trump's victory saying it was a milestone in the bilgd of quote/unquote a new world. >> translator: clearly donald trump's victory is an additional stone in the building of a new world december tinned to replace the old one. obviously, we have to compare this victory with the rejection of the european constitution by the french people.
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of course, with the brexit vote and the emergence of movements devoted to the nation, patriotic movements, all these are essentially referendum against unfettered globalization imposed upon us. that has been imposed phenomenon peop people. >> donald trump, as i have said before, is a deal maker. and i think that could be a good thing for britain, but it could also be a good thing for europe. that's what we need to focus on today. >> now teresa may is expected to outline britain's position as a champion of free trade and a speech this evening at the lord mayor's banquet in the city of london. the u.k. prime minister will say, quote, change is in the air following donald trump's presidential victory and britain will seize this historic
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opportunity to play a leading goal in revamping civilization so no one is left behind. the bataclan theater reopened one week after the terror attacks. the french minister called for a moment of silence iowa and said we will nleave you with this an see you after the break.
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hi, everyone. welcome back. you're watching "street signs." i'm louisa bojesen. the saudi king is telling donald trump not to scrap the iran deal. quite a few people have been surprised by this, hadley. >> reporter: well, you have to report that he was the former head of the country's internal security service and has been a diplomat serving in washington and london and working all over the world for the saudi government in conjunction with u.s. authorities for many years now until his retirement a few years ago. so this is someone quite familiar with just how dangerous the middle east could be if nuclear weapons really became part of this conversation. of course, that is one of the big worries about what could happen if the u.s. president-elect donald trump were to change anything with the current status of that deal.
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could we see a ramping up or build-up of weapons? that is the big question. but i want to get to comments we heard last week from a very prominent saudi, prince ali said he had major investments in the u.s. and hear what he said about the u.s./saudi relationship. >> i believe this is the deal of many people in the world, whether china, greece or so on. and i think we're headed in the right direction. and i believe once he takes the reins in january, we'll see all the misunderstandings to be put behind us. >> reporter: his royal highness expressing optimism in terms of the business community and in
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terms of what president-elect trump will say when he comes out to talk about his foreign policy, talks about opportunities to work with his mideast partners and a lot of optimism from saudi arabia despite the pressures internally on the government right now. there is some optimism, guys. >> hadley, thank you very much. good to see you, hadley gamble joining us live out of riyadh. now nato warned donald trump going it alone is not an option for the united states or europe. in an op-ed the secretary general of nato said that the west faces its greatest security challenges in the generation and it's not the time to question the value of the partnership between europe and the u.s. now, the russian deputy foreign minister has said that moscow knows little about donald trump's plans but there is an intention to swiftly begin work to restore u.s./russia relations. speaking less than an hour ago,
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he went on to talk about trump's foreign policy and said campaign promises and real policies are different things. now meanwhile u.s. and russian leaders have never had such similar positions on global politics as donald trump and vladimir putin. that's according to the speaker of russia's parliament. speaking to russia's mtv channel, the duma speaker added although they share views, it was too hard to tell what kind of president donald trump will be. charles hecker is the global research director from control risks and is with us this morning. good morning, charles. >> good morning. >> many people are saying, it is a love affair between putin and trump, although the critics or the people who are the doubters outz there, they might argue that this is a very divided u.s. and the divided u.s. could play into the hands, their hands.
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>> he's measuring the difference in rhetoric between trump the candidate and trump the president-elect and trying to find some way to measure what his feelings are about foreign policy. this much we know. president-elect trump said that president putin is somebody that he can work open off. he sees someone he can do business with. so what you're seeing is probably a little bit of the rhetoric coming out of the relationship between washington and moscow. you know, you won't hear the white house, at least, banging on about errors that it thinks russia is making in human rights and foreign policy. and in ukraine and other parts of the world. that hot air will probably come out of the as well as ship between the white house and the kremlin. going forward, we'll have to see what happens. >> and i guess syria is a main sticking point. >> yeah, it's a test case for
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washington and moscow. clearly, both sides have already said they want to work together on anti-terrorism activities. but then we'll see whether they disagree on the militant pressure. there are still areas of significant disagreement. >> the pen is also quoted as saying there's no reason to fear trump. some might argue it's not fearing him but it's fearing his lack of knowledge on the foreign policy fronts given that he is very green and didn't realize that the entire west wing has to be replaced coming into this position. and there are a lot of things you wouldn't know unless you have been in government for many years. >> that's right. the one thing that everybody does fear, and it's understandable, this slightly irrational fear is uncertainty. and instability.
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at some point, president-elect trump will appoint a secretary of state. that's an important step towards clarifying where his and the state department's positions could come closer to the important policy direction. but right now most people are concerned about the guesswork and trying to understand where in foreign policy the united states is headed. >> if trump sides with putin and decides to back assad, could that be seen as, in a sense, not declaring direct war but indirect war on other westerner allies just as the opposite would let you? >> the president has quite a bit of latitude in what he can do for the foreign affairs. don't forget we've got a congress whose nature has changed a little bit as a result of the elections. which still has fairly strong anti-assad feelings without
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syria. and there is always going to be an art of compromise in striking and it could be difficult given the rest of the foreign policy establishment and the track with the u.s. foreign policy investment with the world. >> putin has said in the past, well, it is not our fault that we're not closer with the u.s. we have wanted to be closer to the u.s. but they are keeping us at bay in terms of cooperation. do you think that the u.s. will want to get closer -- will trump move closer if he wanted to? >> i think he's going to want to engage. he's going to make that first step. and i think importantly the first step is going to have to come from washington. and i think that there will be that effort and there will be that initiative. we all wonder where president trump will make his foreign trip. we wonder if it will be moscow
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or london, it could be a place like moscow. then he's taking the first overtures trying to resolve the problems between washington and moscow. >> thank you very much, global research director for control risks. glancing at u.s. futures, we are 4 1/2 hours from the markets opening stateside. we are green despite the fact that we are open. still hanging onto the gains with the -- we will now say good-bye and see you back tomorrow.
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good morning. green arrows around the world. the stocks rally to start the week. let's make a deal. two multibillion tie-ups. details straight ahead. and donald trump is putting together a white house team. the president-elect selecting reince priebus as his joint chief of staff. "worldwide exchange" begins right now. a very good morning and warm


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