tv Street Signs CNBC November 24, 2016 4:00am-5:01am EST
>> 80 part of the u.s. customers are produced locally in the u.s. i believe we're in solid shape, and rather can benefit from the infrastructure program the newer government has announced going forwar forward. >> estate agents in a state. countrywide lowers its core earnings target, saying the brexit vote has led to a drop in transactions in the uk property market. shares in monte dei paschi lead italian banks higher as investors get set to approve a 5 billion euro capital hike at the lender's shareholder meeting. u.s. treasury yields rise, as the dollar index hits a fresh 13-year high. emerging markets hurt, with the malaysian ringgit falling to the lowest level sense the asian financial crisis. good morning. happy thanksgiving to our u.s. viewe
viewers. the german efo conditions came in at 1.056 for november versus a forecast for 1.15. slightly better than expected. ju once again, seeing the german level ifo index at 150.5, that is more or less in line with expectations. i'm looking at a forecast for 106. maybe a smidge below forecast. so a bit of a mix. this is after october where we hit a 2 1/2 year high when it came to the ifo index. we'll get more commentary on that. i guess i would say the ifo index is holding up steady given the concerns around trade after the trump election and also the brexit impact. we'll be talking to the ifo later in the show.
also the latest when it comes to the ecb financial stability report. the ecb saying the eurozone faces an uncertain impact from u.s. economic policy. the ecb warnings come in this biannual financial stability review vulnerabilities remain significant for eurozone banks. the ecb sees intensified risks of global asset price corrections and the impact of u.s. policy changes on the eurozone are highly uncertain. a major degree of uncertainty here coming from the ecb. a look at the euro/dollar, we see it close to the 1.05 level. not diverging far from it on the back of the ifo data. 1.0555 so flat on the day. yesterday we saw another record high for the dow, s&p and russell 2000. russell 2000 higher for the 14th
consecutive session. the dow up 0.3%, the s&p up was 0.1%. the nasdaq was off 0.1%. we had a slew of macro data. durable goods rose 4.8 versus 1.8%. that was the biggest jump in roughly a year. so, how is this feeding through to the trade in europe? let's have a quick look. not seeing record highs in europe. the stoxx 600 is holding on to the flat line. given that we have no u.s. trade today, it's going to be somewhat quieter. don't expect the big boost in volumes in the afternoon trading session. we have earnings that came through. thyssenkrupp more disappointing. want to come back to the story, the dollar strength is the story in the markets, the ftse 100 off
by 0.1% the xetra dax off by 0.40. now we talk about currencies. here's the dollar for you. yes, they're hitting another 13 1/2 year high. we're off those levels in today's trading session. volumes in the dollar will be lower given the thanksgiving holiday. u.s. dollar against the yen is at 1.1324, up by 0.7%. cable didn't move too much in response to the autumn statement. the u.s. dollar that posted another surge with the euro testing the 1.05 level for the first time in months. which stocks would benefit from the green back and what do they have to gate? let's break down holiday presents versus thanksgiving turkeys. some of the presents are national grid, prudential and
roche, with the united states accounting for over 40% of their revenue. on the turkey front, allianz, which is much more exposed to emerging markets. karen, how do currencies feature in your view? is it a big driver going into 2017? >> i think it is a big driver. you had the 40% fall in trade weighted currencies. hit that in january. started to recover, down a bit again. so we're talking about the fact that the little bounce we had year to date is helpful. if they keep falling from here, i think that's an issue for european companies. we have lived through four, five years of currency weakness already. >> the past couple days the talk of the town is the divergence
between u.s. stocks and european stocks. in the u.s. we're seeing record high after record high, we're not seeing that in europe at all. the dax and cac are down for the year. the ftse is only higher because of the brexit effect on the currency. why are we seeing that divergence? >> two things we expect to help. the political calendar should settle down by june. once we know the french outcome, the dutch outcome and the referendum outcome in germaital. we are seeing some banks boating, commodities beating, so we think you'll get your first year in seven years of profit growth next year and the political calendar will settle down. that will open up -- close the gap with the u.s. >> karen, we'll continue that discussion in a bit. do stay with us. we want to talk about the ifo.
joining us is the president at the ifo economic institute. the german ifo business climate index pretty much unchanged in november what were the main topics for businesses in november? was it the concerns about trade or brexit? frnlg>> the key issue is what i future of trade. germany is an export-led economy, and then the u.s. elections. before the election there's wasn't a lot of debate about what the outcome would be and what would happen if donald trump was elected. now it seems that the companies are basically unfazed by the elections. so the index is unchanged. companies continue to be confident about the situation as well as the next months. >> that was also reflected in the very strong pmi print we saw yesterday, clemens, particularly on the services side, not so
much on the manufacturing side. gdp seems to be the low point for the year. do you expect an improvement for q4 in general? >> i would expect an improvement in q4 for germany certainly. the index is very strong. interestingly the boom we've had for some time now, the construction industry continues and is getting stronger. another interesting sign is an increased number of companies say they intend to raise prices in the future. this is a new development, and this reflects that the german economy is moving maybe not towards overheating but is really in the middle of a boom. >> for the full year we're expecting growth of 1.8% for the german economy. that's the strongest growth in five years who takes credit for that? the ecb? government, is it the currency?
>> it is the ecb, it is the currency. it is too low for the german economy and the oil pricer which continues to be lower. these three factors. you know, it is unclear whether these factors are unsustainable. as i said, the interest rates may change if prices increase which they will in the next year. >> just in the month of november, we've seen that sizable drop in the euro/dollar exchange rate in reaction to the trump victory. when do you think that would feed through to some of the exporters in germany? what sort of a lag are we looking at when it comes to the exchange rate? >> this will be feeding through next year, i would expect. it's not immediate. you know, this is about -- this is 5% or something, not huge, but significant. it looks like it will continue. a lot depends on what trump does. if he does increase the deficit, if he does cut taxes this will
have an immediate impact. if he focuses on infrastructure, this will take time. if he cuts taxes quickly, that will have an impact on german exporters into '17. >> we've repeatedly heard from german politics, primarily from the finance minister, mthat in germany we will not see an infrastructure package like we are seeing in the u.s. under trump. people are pushing for that because they say they need more spending, not so much the tax cuts germany is going for. do you think that will ever change in the current government? >> there has been an increase in germ germ german infrastructure spending, but we don't have the capacity and issuing with planning. if you want to build a new road in germany or change an existing one, the planning is complex and takes time.
so there is increase in spending, but the german economy is in the middle of a boom. we are operating at full capacity. it makes no sense at all for the german economy to start a fiscal program. we should do the opposite and cut back spending. clemens, thank you for your comments. let's get back to karen, you were listening to some of the comments here. we're hearing talk about germany overheating. that would be great for profitability. simply doesn't extend to the rest of the eurozone. >> it's a very domestic story. you don't have that in italy. german household growth the fastest in 20, 30 years, the spending in construction. it is domestic. you have to get through the political unrest in other countries. we should say spain is doing quite well, even without a
government, but in italy you have to get through the domestic uncertainty. >> let's get back to euro. there are four unique buy ideas, i want to start off with profits. you say for europe to avoid a japanese-like bubble burst, profits need to grow 45% in next five years. how will that happen? >> in 1989, germany had the bubble of all bubbles. those profits collapsed significantly, and 15 years later they got back to their peak, the '89 peak. europe peaked in '07. the u.s. is well past that peak now. europe ten years own is 30% below that peak. to do what japan did in 15 years, we need to grow by 45%
and then europe would be a serious buy if it did that. if it doesn't do that, it's quite astounding that our profits grow slower post-japan in '89. >> how would that happen? in europe, we have such a heavy weighting on financials, financials have not returned much. we've seen very little earnings growth from them. we don't have the tech firms, the amazon, and the googles that the u.s. has. >> the amazons, the googles, they have been the anti-crisis trade. if we're sitting on the start of a regime shift, however subtle it is, if it's not just a trump mirage and bond yields are up a bit, rates are up a bit, europe will start to turn. our energy, mining and construction earnings in europe are 5 to 10 times more relevant to europe than the u.s. banks capital has been cut. the banks balance sheets in the
eurozone -- banks cut their balance sheet by 50% of gdp in the eurozone. we think the regulators are relaxed now where capital as a whole sits. so improvements have been made and that just ended. >> we'll continued that discussion after this short break. you say dividends matter. while find out why. e-mail the show, the address is streetsignseurope@cnbc. you can also find us on twitter, tweet me directly at @carolincnbc. still coming up, soaring debt and brexit black holes. we'll look back at the uk chancellor's first and last autumn statement after this.
we are talking about thyssenkrupp, this after the company's profit declined more than anticipated on a drop in annual sales and a slump in orders amid pricing pressures in the materials business. last week the eu imposed anti-dumping measures on chinese steel. earlier we spoke to the thyssenkrupp ceo and asked whether levees on chinese steel imports should be higher. >> here we have only 16% to 22%, we believe this level is far too low. we would rather see this needs to go up to 40% to 60%. so we would like to see how the eu commission will act on this one. >> many of these infrastructure plays around the world have benefited from the trump trade, i guess thyssenkrupp is one of them. do you think today there might be profit taking? >> it might be part of profit
taking what we're seeing but also disappointment looking also at the dividend, this was disappointingly low. people expected they would have -- get a high dividend, at least slightly higher, also guidance is on the cautious side. looking at shares, they started off with severe losses, more than 3%. now we are just a little bit -- a tad down by 0.2% currently. i think people are, again, concentrating more on that thyssenkrupp may be a bit cautious when it comes to the outlook. as you were rightly saying, thyssenkrupp is probably well positioned in the united states to benefit from a potential trump infrastructure program there, as they have big operations on the ground there. to say naturally edged also against potential tariffs. the new u.s. administration
might put in place. talking about tariffs, as we were hearing, he is in favor of higher tariffs against the cheap chinese products flooding the markets. he might be on the winning side here. looking at what the states are doing, they currently have a tariff of a whopping 266% in place against -- or on these imports from china. so the european union could also go a little bit higher here. ail in all, the biggest strategic questions are still not answered, what they're going to do with the steel business, because it is not part of their future strategy to produce steel. they want to sell it or combine it with someone else. but with whom, it's still not decided. back to you. >> thank you very much for that. thyssenkrupp saying they're paying a 15% dividend, lower
than what people were hoping for. let's talk more with dividends with karen olney still with us. let's talk about dividends, it's counter intuitive to go for dividend plays at the moment, they have to rival with the higher yields in the u.s., also potentially here in the u.s. why do you like different r dvi? >> it's a different type of play. between '07 and to date, you went for staples, low ball stocks with a bit of yield. you're in a phase now where if its a slight regime shift, you can't stick with the staples. yields have fallen and ratios are going up. financials make up 25% of the market yield, in the u.s. it's 12% and the pay out ratio is falling to a 20-year average.
so the banks dividends have fallen below beverages for the first time in months. go for slightly higher yield but avoid the highest, those are the stress cases. >> do you think dividends for banks will make a full comeback? i feel when they have higher capital, they go for surcharges. >> the regulators are feeling okay now. so the big hits are over. our banks team feels you will get a yield of at least 5% from the banks, it will be paid, and we have quite a conservative banks team. the cost cutting, the mpl normalization and the parrot ratios are healthy. we have to leave it here. i do appreciate your input. let's talk about the autumn
statement and everything brexit. britain made fewer cars last month for the first time in more than a year as brexit uncertainty hit domestic demand. output of british built models which were exported rose marginally, thanks to a 10.9% drop in output for british buyers it fell overall. the data highlights the need for the uk government to guarantee it would not become more expensive to sell british made cars abroad. britain's borrowing could rise over 122 billion pounds over the next five years, significantly more than expected. that's according to new figures published by the obr. philip hammond warned that brexit would burn a 59 billion pound hole in the uk pocket. >> in view of the uncertainty
facing the economy and in the face of slower growth forecasts, we no longer seek to deliver a surplus in 2019/'20. but the prime minister and i -- the prime minister and i, mr. speaker, remain firmly committed to seeing the public finances return to balance as soon as practical while leaving enough flexibili flexibility -- while leaving enough flexibility to support the economy in the near-term. >> geoff caught up with simon kirby after mr. hammond's speech who told him about the translore's plans to brexit-proof the economy. >> timportantly he has prioritized investment in
infrastructure, and in r&d, and also it's important to note he's balanced that with fiscal responsibility. we all have to live within our means. we want an economy that works for everyone. an economy where businesses are confident they can invest in great jobs, and i believe today the cans lore has done thchance that. >> a key announcement was the end of letting agent fees. the news sent shares slower for the estate agents yesterday. countrywide expects ebita to come in at the low end of expectations. look at countrywide, off by more than 10%. anthony cottling joins us now. this is the second profit warning for countrywide in a year. shares down 17% since the tuesday close. is this a buying opportunity?
>> as a period of uncertainty at the moment following the autumn statement, we are not entirely sure how the tenant fees will play out. first there's green paper, the houses of commons, the houses of parliament and probably competing for air time with article 50. i don't think we'll see this come through quickly. when we know more how this will impact the agency sector it will be a better time to decide if it's a buying opportunity. >> is there a sense because the state agents will make lower fees on that given the statement yesterday, that actually we'll see more costs being pushed towards the tenant and landlords will raise the prices? >> that's interesting to see how it plays out. some of the fees are justified. for instance, credit checks, inventory checks, i don't think it's a push to say landlords
would be willing to take on those costs. whether landlords would be willing to take on what they view as high fees for arranging tenancy agreements. somewhere between take iing everything on and nothing on is there. half of the impact we think will be mitigated. >> at least that would be good news. let's talk about some home builders. they're down despite philip hammond announcing this housing infrastructure fund. is it too little or is it because the home builders have already had a good run? >> we are bullish on the uk house builders. there's a two-speed housing market at the moment. the new built sector which is helped, and then the secondhand market which doesn't have those benefits. it comes down to one issue. if you have a deposit, you can buy a house, if not, you can't. help to buy gives that deposit.
in the autumn statement yesterday there was no new news. they helped the smaller house builders rather than the listed pous builder house builders we follow. >> estate agents spend on marketing, still half of advertising revenue is spent offline. wes this zupla, they have the energy switching and a software company they acquired. >> anthony, thank you very much for that. are you renting or have you bought? check out world markets live. our trading blog. we'll be back in two.
not such a happy thanksgiving for thyssenkrupp. the german steel giant weighs on a quiet day as its full year profit forecast misses expectations, but the ceo tells cnbc donald trump could provide a lift. >> already 80% of u.s. customers are produced locally in the u.s. i believe we are in solid smap. and can benefit from the infrastructure program the new government announced going forward. >> estate agents in a state. countrywide lowers its core earnings target, saying the brexit vote has led to a drop in transactions in the uk property market. the u.s. treasury yields rise, as the dollar index hits a fresh 13-year high. in response, emerging markets hurt, with the malaysian ringgit falling to the lowest level sense the asian financial crisis. >> the fed minutes anticipate a rate hike, but some hurt holding
off could hurt their credibility. good morning. in europe, we're mixed. the xetra dax is up by 0.2%. some housing related stocks are under pressure given the autumn data yesterday. the ifo data, headlines may be weaker but not a major reaction in the stock market. the cac 40 is up by 0.2%. and the ftse mib is doing better because banking stocks, which have been weighed down because of ref rend rum concerns, but banca monte dei paschi is holding a meeting today to raise the capital hike. the dollar yesterday reaching a 14-year high. also helped higher by some rise in the yieldsthanksgiving day t
slowing things down, cable at 1.2433, unchanged on the day. euro/dollar did not have a major impact on the ifo data. want to tell you what's happening in the bond markets. we saw further yield spikes in the u.s. the two-year yields the highest since summer of 2010. maybe a bit of buying in bunds given that slightly weaker than expected ifo headline number. the fed has signaled a rate hike is further in the card. the fomc said it could become
appropriate to raise rates soon. they judged the risks to the economic outlook were roughly balanced ahead of trump's win. steve liesman has plenty more on this story. >> reporter: president-elect trump defied the odds so much that betting against him seems a quick way to the poor house. when it comes to his plans to enact a multi trillion tax cut and massive spending programs, the question is whether the dealmaker can take on one of the oldest foes in washington -- the national debt and the deficit. >> we're looking at the reality that the fiscal deficit will be 1 trillion to 1.5 trillion over the next five years. somebody has to buy that debt. >> reporter: politicians often switch sides when they're in
power, so democrats could become deficit hawks, and republicans, even tea party members may become doves. >> when a president comes into office, they have political capital. that will be enough to erase deficit fears for a year or two. once you get to a midterm election, get into the latter part of a president's term, the opposition to some of this will rear its ugly head. >> reporter: there are already signs that some republicans could balk at massive spending and leave entitlement spending untouched. >> if you want to deal with the debt and deficit, you have to de deal with entitlement reform. >> and the fed has given mixed reviews to ramping up the deficit. janet yellen said it could lead to inflation and higher interest rates, but stanley fischer was more welcoming. >> certain fiscal policies,
particularly those that increase productivity could increase the potential of the economy and help confront some of our longer term economic challenges. >> the fed could put the brakes on the economy if it feels the president is moving too fast and stoking inflation. markets have driven up treasury yields in anticipation of more inflation, more growth and bigger deficits from the president. markets have a way of letting presidents know when they've gone too far on the debt. that is deficits, they often don't matter until markets say they do. steve liesman, cnbc business news. >> let's continue the discussion around the fed and further rate hikes with the macro fund manager at mag investments. the december rate hike is baked into the cake. how many hikes will we see next year? >> i think more than priced into
the fed funs futures. the market has the fed going to 1% by the end of next year, that's conservative. >> that would be two hikes? one to two hikes. i think we could get more than tha that. >> one thing being ignored here is the momentum in the economy, no matter what you think about trump. if you look atlanta fed now has 3.6 for q4. it may be a situation that there's momentum behind the u.s. economy. >> you're saying the market has to price in a much faster pace of tightening soon. that means a further selloff in bonds. >> the longer end of the yield curve has steepens. the 30-year part of the curve, you're approach g approaching ae
there is tightening. what does it mean for the dollar, people say the dollar run will continue. other says it looks expensive and overbought what does the faster pace of tightening mean for the dollar? >> it's tricky. if you looked at most parts of the global economy, you would say the u.s. is the least requires fiscal stimulus. yet it is most likely to get fiscal stimulus. if overgettiyou're getting tighd fiscal stimulus in the united states, you can get extreme moves. >> for years the fed was the only game in change.
now you're seeing with trump more infrastructure spending, fiscal spending, does that mean for 2017 the central banks can sit back and relax? >> i don't think so. this is still unproven whether we will get fiscal easing. you are already seeing some uncertainty about this. if you look at what's happened in the uk, we saw with the autumn statement you're seeing a backtracking. i personally think the central banks should be encouraging them to do more. part of the way to get higher rates is through loser fiscal policy. >> at the end of the day with so much unsecertainty left on the
table what are you buying? >> parts of the value spectrum. we had a predisposition to global financials. you had the earlier speak their morning talk about european financials. you've seen phenomenal price response in u.s. and japanese financials. it makes sense to look at parts of the european equity market. >> do you want to chase this equity market rally specifically in the u.s. to year-end? people want to see the christmas rally and now the trump rally on top of that. >> there's been quite a big shift in the equity risk premium in the u.s. the irony is we've been observed for three, four years quite a considerable equity risk premium. i think global equities on a diversified basis are a more compelling proposition.
>> thank you so much for your time. a group of u.s. lawmakers is warning that donald trump could provide protection for deutsche bank. some house democrats say he will have ample opportunity to influence policy decisions including the justice department's proposed $14 billion fine. in a letter sent to financial watchdogs, lawmakers claim deutsche bank is the only major wall street bank that has continued to lend to trump inc. donald trump is trying to add diversity to his cabinet selections. kristen welker reports. >> >> reporter: president trump with a thanksgiving message for the nation. >> it's my prayer that on this thanksgiving we begin to heal our divisions and move forward as one country. >> comes as he tries to diversify his cabinet tapping two women including 44-year-old
south carolina governor neck ik haley to serve as ambassador to the u.n. haley is a rising star in the republican party, she was sharply critical of trump during the primary. >> i will not stop until we fight a man that chooses not to disavow the kkk. >> but taking a more measured tone after meeting with the president-elect last week. >> i did vote for him. i was absolutely thrilled to see him win. >> haley earned national praise for leading the call to take down the confederate flag in south carolina in the wake of the emanuel ame church massacre. while she opposed trump's muslim ban, she opposed syrian refugees from entering her state. governor haley made eight international trips but lacks foreign policy experience. >> she'll have to navigate this role. it involves a realm of knowledge
she doesn't quite have. >> reporter: if confirmed, haley could strengthen trump's hand. trump would have a political edge then in a key southern state. a transition official disputing that was part of the decision. mr. trump's second pick, betsy devosa billionaire republican donor and school choice activist, who wants to expand school voucher programs. the move was praised by jeb bush and decried by the largest teachers union. a 2 million vote leagd, hillary clinton's popular count is increasing with 62.2 million votes for tdemocrat. this has prompted for a recall in certain battleground states. a group of academics and
lawmakers point to evidence that she did worse in counties that use electronic voting machines instead of paper ballots. the clinton campaign has gave no signs it will join for calls for a recount. jill stein has launched a campaign to crowd fund election recounts. it reached its $2.5 million goal this morning to fund recounts in wisconsin, michigan and pennsylvania and has now extended its fund-raising target to $4.5 million. stein said the recount is not to help hillary clinton but is part of an election integrity movement. if you're looking for reasons to quit smoking, make this next story will help you. dramatic footage showing the moment an e-cigarette exploded inside a man's pocket.
not the samsung galaxy 7, it is an e-cigarette. he was working behind the counter as sharks shot out from his pockets. he was taken to the hospital and treated for minor burns. we hope he's okay, maybe he will quit smoking once and for all. >> it is happy thanksgiving day as two turkeys called tater and tot pay a special holiday visit to the rose garden. we bring you the president's last joke-filled presidential address from the white house. i might have the toughest gig today. i'm here in central london, where thanksgiving is also being celebrated. in just over two hours time, the first plate of the thanksgiving day feast will be served to guests upstairs. i'm here in the dessert part of the kitchen, downstairs everybody is working super hard. you're making pecan pies?
>> yes. >> just the last bits that you're putting on here. how many of these would you make? >> 300. >> 300? over how long? >> three, four days. >> that's nuts. i might have to try. i might have to try one, roosevelt, if one happens to drop on the floor, i might catch it. we'll be back after the break. i'll talk to the head chef with more.
welcome back to the show. president obama pardoned two turkeys as he took part in the tradition for the last time. tater and tot, both 18 weeks old, 40-pound turkeys were spared by the president in a joke-filled ceremony in the rose garden. >> i wanted to take a moment to recognize the brave turkeys who weren't so lucky. who didn't get to ride the gravy train to freedom. who met their fate with courage and sacrifice and proved they weren't chicken. >> obama also struck a more serious tone taking a moment to thank the american people for their trust and kindness over the last eight years as he also reflected on family life after the white house. >> thanksgiving is a family holiday as much as a national one. malia and sasha are thankful this is my last presidential
turkey pardon. what i haven't told them yet is that we're going to do this every year from now on. no cameras, just us, every year. no way i'm cutting this habit cold turkey. >> i didn't think that was a serious tone after all. i guess the two kids will have to enjoy this tradition for years to come. in new york preparations are underway for another tradition, the macy's thanksgiving day parade. over 3.5 million people are expected to line the route to watch the parade later today. nbc news jay gray is in new york. how are the preparations going? >> hi, caroline. it's the final hours before the 90th annual thanksgiving day parade. the balloons were aired up, inflated last night, adding a little helium this morning to make sure everything is ready to go. the floats are lined up on the
street just down the way. we'll see marching bands, we will see clowns, we will see just about everything you would expect when it comes to this parade. it's become a tradition here. this year they'll also celebrate by bringing back a replica of one of the first ever floats part of this parade. felix the cat will be one of those marching along with charlie brown and the rest of the floats. should be fun. there is concern over security. there is every year. a multi layered approach this year with federal agents, terrorism task force and 3,000 police officers on the ground to make sure things stay safe. that's the latest live from new york along the parade route. back to you. >> thank you very much for that. enjoy the parade. tomorrow you'll be up early again to talk to us about black friday, the other post thanksgiving day tradition. thank you again. >> you bet. an estimated 46 million
turkeys are eaten by americans each year as they celebrate thanksgiving, but not just americans at home and abroad are celebrating thanksgiving today. louisa is in london at balthazar. i'm trying to decide who got the better gig today. i think you win. >> my mouth is watering. are you more pecan pie or pumpkin? >> i'll have both any time, really. >> look at this. take a look. thanksgiving has also come to europe. we know that by now. you have restaurants. i'm here at balthazar. it's a huge day for them. we have pecan pies, pumpkin pies, they make dozens of these for people who order them. you have cheesecake pumpkin pies. an intimate mix here. as we walk backwards, we have cornbread being made. everybody is really, really busy. trying to stay out of their way. as said, it is one of the most
busiest days of the year. careful. very slippery here. let me find the head chef, rob, who is working super hard in here, in the kitchen. we have all the prep going on. we have around 500 plates of the turkey feast, anticipated to happen today. rob, if i could grab you for one second. i know you're super busy. we spoke last hour, all the prep is well underway. the first serving goes out at noon? >> noon. 12:00. >> is it basically for lunch or dinner? >> lunch is smaller service. dinner is the main event. >> you're saying it's still turkey people want. what is the key to getting the perfect turkey? >> the way we do it, we soak it in brian overnight, leave it for a day to dry out. slow roast it until it hits an optimum temperature, core temperature. then we allow it to rest and cool.
then we carve it. >> slow roast is four hours? 3 1/2 hours? >> about four hours. >> so you're saying it's about 500 plates you anticipate to go out. in terms of the desserts as well, are they equally as possible? it's really an american thing. >> pumpkin pie, pecan pie, that's what everyone is out for. >> you have a full house upstairs? can my colleagues still find a table? >> i'm sure if they are lucky, walk in and ask for a table they might get something. >> do you think the britts and europeans, our taste buds are different to what people want statewide? sometimes in the states you hear they want more sugar and salt, here we are more basic. do you find that? >> yeah. on the european side, they like to have less sugar in their food. over here, the americans seem to enjoy more sweet things.
but they have strong tastes over there. but i think people here are adapting to it. they want the thrill and the excitement and a big taste and a big experience. >> so you're saying -- the key to the turkey is to let it sit a bit, give it time. is that the same when it comes to the pies? what's the trick to a perfect pie? >> take your time. have everything in order. great pastry, great ingredients. just enough time to get things done. >> excellent. rob, thank you very much. i know you guys are super busy. thank you very much for letting us come into your kitchen. this is a completely different environment than we're usually in. super busy. i hope we're whetting your taste buds for a nice turkey lunch? >> i would like to join you for a nice turkey lunch. final question to you, food
price inflation, because the depreciation of the pound, is that an issue? >> no, rob was saying they still go for the typical ingredients, that they would regardless of what the food prices are at the moment. also because the things they tend to use now, they tend to stay stable, the actual ingredients. for now it's all right. >> thank you very much for that. we'll have to go for a quick break. coming up on the show, we'll hear more about thyssenkrupp. (my hero zero by lemonheads)
get zero down, zero deposit, zero due at signing, and zero first month's payment on select volkswagen models. this black friday at the volkswagen sign then drive event. welcome to an extended "street signs." i'm carolin roth. these are your headlines. not such a happy thanksgiving for thyssenkrupp. the german steel giant weighs on a quiet day as its full year profit forecast misses expectations, but the ceo tells cnbc donald trump could provide a lift. >> 80% of the u.s. customers are produced locally in the u.s. i believe we're in solid shape, and rather can benefit from the infrastructure program the newer government has announced going forward. >> estate ag