tv Street Signs CNBC January 17, 2017 4:00am-5:01am EST
globalization. business leaders in davos brace for a new world order under trump, with you the boss of wpp tells us it's a win some lose some situation. >> what you gain on the u.s. round-abouts you lose on the global swings. he is good for the u.s. economy. >> big business is not innocent. the bosses of alphabet, credit suisse, wpp telling cnbc that globalization must work for everyone amid a rise in inequality. >> the plan is to make sure that globalization works for everybody. >> we start with collaboration in our products but we also think about the importance of collaboration because we have to ensure everyone benefits from technology. welcome. you're watching "street signs." we're live once again from the
world economic forum in davos in the beautiful swiss alps. not quite as cold as yesterday, but throughout the day we'll get a lot of cool stuff for you. it's a jam packed day. a jam packed show for you, but we have it all covered for you. today we have the speech of the first ever chinese president attending davos, mr. xi jinping will hold his speech here in a few hours time and then the speech everyone has been waiting for, theresa may's brexit speech. she'll have 1 priori2 prioritiel lay out. it's the speech everyone is anticipating. around midday local time, uk prime minister theresa may is expected to say britain will prioritize border controls. the rise in populous politics, the growing anti-establishment sentiment and skepticism about the benefits of globalization, these are some of the dominant
themes emerging here at the world economic forum. ceos speaking to cnbc in davos admitted that big business bears responsibility in the rise of inequality. >> the promise of trickle down has not worked. the promises of davos, leave it to us, we will bring prosperity to all, has not worked. the davos gap has grown. we have seen market disparities in the environment, the market, now we are seeing failures. >> we start with collaboration embedded in our products but we also think of collaboration because we have a shared responsibility to make sure everyone benefits from technology. >> it isn't just business cos, it's you, the media, ngos, government and politicians. none of us is trusted. we have a job to do. clearly we have not communicated
those things that are important about the benefits of globalization of the benefits of technology. we have to address the issue that there are people who feel and have been left behind. >> we have seen across the world the benefits of globalization, we are direct beneficiaries of that, but also retentions, cracks in the system which then found a political translation because people feel the system is not working for them. that will find a political expression. >> so lots of leaders speaking already. we're so early into davos. we have the whole week ahead of us. we heard from the chairman of bt there talking about how everyone here is not trusted. he was saying there's a lot of work that has to be done to reestablish the trust. do you feel the tone at davos or peoples inflection looking in is
different to past years? >> look, i mean, this is a completely different year from what we saw in the past. last year at davos, no one would have believed that trump would become the next president of the u.s. no one would have believed that the uk would vote in favor of exiting the eu. it's a completely different mindset. a new era has broken dawn. and that's what we have to face up to. i would say that obviously donald trump, brexit, those are the symptoms of all these feelings of populism, anger against the establishment. the real underlying issue is the sense of inequality that people around the word are feeling, the mistrust in government, the mistrust in politics. i wanted to draw your attention to one study that pwc put out. they say cos are more skeptical of the benefits of globalization. so it's not just the elected that are skeptical of what the elite are doing and the benefits
of globalization, it's also the business community. let's push on. want to tell you what we have coming up from davos. we have several great guests coming up, including the eric olson, demetri cokostygin and takehiko nakao. investors bought into the firm amid hopes that the president-elect would launch a massive infrastructure program once in office. we will talk to the coo of lafarge in a moment. >> in the meantime, let me show all of you what wie e are doing a market perspective. equities off a half percent. that's what we've seen since the market opened. wall street was closed yesterday
in observance of martin luther king day. in asia overnight, the nikkei flirted with five-week lows, thereabouts. and the real talking point today in terms of the market talking point in britain at least is prime minister theresa may. she is set to lay out the 1 12-point plan for britain to leave the eu. so we could see volatility in the weeks to come. based on what theresa may gives us today. it's thought she will signal a hard brexit. nancy is out covering that. a lot of safe haven trades as well. and there are a few major deals that we are watching today. british american tobacco agreed to acquire the remaining 58% of reynolds it doesn't already own. they will pay $49 billion for that. the per share price represents a premium of more than 26% to reynolds closing price back on
october 20th. that was just the day before b.a.t.'s launched its public proposal. following on from the deal we were talking about yesterday, the people, all of us, were all digesting the news of a mega tie up between the eye arwearmaker, luxottica and essilor. also in an interview with an italian newspaper, he said as soon as his presence is not essential, he will step down from an executive role. i believe he's 81, 82. so some changes within the e eyewear groups. some other stocks we're watching today with a slate of earnings out. you have rio tinto hitting the middle of its targeted range for
iron ore shipments from australia in 216. in the latest quarterly production report, they maintained guidance for the current year of up to 340 million tons. next to it, alstom, underperforming the broader market, down by 3%. it's reported higher sales and orders for the first three months of 2017, and order intakes are up from 16% a year ago. still investors getting out of it. and zalando reporting a 25% rise in revenue in the holiday quarter to more than a billion euros. it was a miss on analyst estimates. last, casino has seen sales accelerate in the final quarter
for the company, especially at itself cash and carry stores. >> let's take a pulse of the business community here. i'm joined by eric olson from a lafarge. your shares did well on the back of the election victory by donald trump. this is a president in the u.s. who is promising a big boost to infrastructure spending. given that you are one of the biggest players in that field and the world, what's not to like about this? >> sure. we believe for many years that the u.s. needs a significant boost to infrastructure. if you look at bridges, roads, core infrastructure in the u.s. needs real investment. we're heartened to see that's coming. >> what is the risk that we'll be creating within this process? we'll be creating a raft of white elephants, not just
bridges, hospitals, roads, but more that the future generation doesn't really need. >> infrastructure investment pays off 2 1/2 times for what you do. you need to do smart infrastructure investment, but the needs of infrastructure and investment in the u.s. are so much that there's a whole long inventory of needed projects that should be ready to go. >> who controls that? who polices that? >> it's an interesting system that the u.s. has in place between federal funding and state funding. there's typically a matching that needs to happen. it's not just the federal funding, but the fact that the federal funding is there and matches with state funding. we expect a lot of projects to get started. probably more towards the second half of 2017 and into 2018. it takes time to get the engineering, design and planning done. >> one of the issues you and i talked about in the past is the issue of funding all these infrastructure projects. we talked about the need for.
ppp, public private partnerships. is that something that can happen in the u.s.? >> it hasn't been as widely done in the u.s., but it's something we're encouraging, and we believe there's an opportunity to look for private funding, private capital to help in the funding process. but there's some progress that needs to be made in the u.s. in that area. >> i want to come back to the sustainability of infrastructure. we're seeing this trend of globalization, urbanization, the rise in population. how do we make sure that everything that is being built is being built sustainably? >> that's the interesting thing about it. we need to get carbon pricing mechanisms right worldwide, not distort trade. that's one piece of the story. the other is governments have tremendous influence over infrastructure spending, how they source it. how they choose what the design is. and governments could be much more thoughtful in working closely early on in the stage,
designing infrastructure projects to make sure it's as sustainable as possible. >> for you, that means you need to work with the entire supply chain and value chain. >> for us, it's a core part of our strategy, which is to get in early in the design. if we're waiting to the end of the project, we can't do anything. if you can get our engineers and experts in early in the design of an infrastructure project, we can make a difference. >> let's put the u.s. aside for a moment. emerging markets could suffer as a result of the protectionism coming from donald trump. >> if you look around the world, in our business in particular, we're in a local business. so the global trade flows affecting us are not something can. it's the underlying growth in each individual economy. there are many factors affecting that. there's the energy markets, how the energy markets will help or
hinder in some economies. i don't see it as a major impact in our business. as industry markets come back, that's a boost for emerging markets. >> always a pleasure speaking with you. i know you have a busy day ahead of you. thank you very much. do stick around. we will be speaking about retail and russia after this break. we'll speak with the chairman of ulmart, dmitry kostygin. that's after this short break. take one.
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signs" live from davos. the russian foreign minister, sergey lavrov says u.s. diplomats have engaged in espionage in russia. he welcomes donald trump's administration to the upcoming peace talks in kazakhstan. the promise of a reset in relations between russia and america provides an opportunity to investors. speaking to cnbc earlier this morning, guryev is bullish on the russian economy in the near-term. >> today we see a huge inflow of russian markets, so i believe in particular for russia, in the short period, it's interesting and will bring opportunities for future growth. that is what russia needs today. >> very important question is,
is everyone as bullish about the reset of relations between the u.s. and russia and we've been talking to a number of russian executives on the ground. i want to talk to my next guest who is very active in the retail space in russia. very much dependent on the strength and the health of the consumer. that guest is dmitry kostygin, chairman of ulmart, russia's leading e-commerce economy. thank you so much for your time. what are you hoping for in this reset between the west and russia? do you think it's good for your business? >> absolutely. we see that there was quite a dramatic increase in the stock exchange indexes in russia in the past year. 80% up some companies. so the inflows of capital are quite positive. we see that ipos are more and more discussed, being proposed. so, if life is back to quite normal.
>> you say life is back to normal, so far donald trump is not each in office yet. we don't know what sort of policies he will enact, whether he will follow through with everything he's promised during the campaign. do you think that one man can single handedly reset the relations, the fractious relations between the u.s. and russia? are we hoping for too much? >> well, i mean, u.s. president is quite influential position. i'm not an expert on the u.s. internal politics. it seems that it wouldn't be wors worse. >> at the same time europe has still extended its sanctions in russia for another six months. so you're not out of the woods when it comes to ending those sanctions fully. what is the outlook? what is the outlook for 2017 and the health for the russian consumer. >> it's better and better.
i would say i'm somewhat gentlemanly hoping they will keep sanctions, russia is becoming more focused on itself and more producing by itself. agriculture is on the rise, food processing is on the rise, quite a few other manufacturing segments are up. so, you know, whatever doesn't kill us makes us stronger. so one of my favorite examples, if you cut the credit card of your children, then they become independent. >> i should try that with my daughter. what dose esn't kill you makes stronger. russian consumers have had a huge impact with the ruble and the oil prices. that has made a major comeback. what's more important to you, improving relations with the west or the fact that the oil prices are back to the 50 level, hopefully sustainably? >> the most important is to
produce more than you consume generally. that shouldn't be dependent on oil, grain or any commodity, but focused on the general creation power of the population of russia. >> you have postponed your ipo several times due to difficult market conditions in russia. when do you think it will finally happen? what sort of size are you looking at? >> we keep our hands on the pulse of the market. so we are ready. as soon as we feel it's becoming positive, within two quarters we are ready to move. >> what does it depend on? what exactly are you waiting for? >> well, it's a number of indicators. i think mostly the advice of our bankers, like jpmorgan and ubs. >> you have been driving this hybrid model, part ikea, part amazon for a number of years. that's what you are known for in russia. is there still a need for a
brick and mortar presence in russia? absolutely. ulmart builds a new generation model of internet retailing. i think we'll still dominate. >> all right. always a pleasure with you. thank you very much for that. dmitry kostygin the chairman of ulmart. back over to you from a chilly davos. i hope it's warmer in the studio. >> you were saying it's warmer where you are now compared to yesterday. with you the longer you stand out. you'll be standing out for quite awhile today. we have coverage this afternoon, as we did yesterday. stay warm. maybe do some hopping jacks. like hop-around while we talk in the studio for a second. we're looking at a couple stories making the rounds. rolls royce shares getting a boost on news that the enginemaker reached settlements with authorities in the u.s., uk and brazil relating to charges of bribery and corruption.
the series of payments will total 671 million pounds. in a statement, the company also upgraded its outlook for 2016 profits saying it would come ahead of expectations. in italy, mediaset shares have been trading lower after reports surfaced in the italian media suggesting regulators would block a takeover of the firm by vivendi. mediaset shares rallied after vivendi began beefing up its stake in the company in december. now we will be speaking to the vice chairman of blackstone, john studzinski. that's right after this break. much more out of davos. stay with us on this special "street signs."
. welcome, you're watching "street signs," we're live from davos. i'm carolin roth. >> i'm louisa bojesen. no half in and half out deal. theresa may will confirm that the uk plans to leave the eu single market in a brexit speech. the star of the show, xi jinping will be the headline of davos, where he is expected to defend
globalization and a swipe at u.s. protectionism. davos prepares for life under donald trump, with the boss of lafarge encouraged by the president-elect's economic plans. >> we believed for many years that the u.s. needs a significant boost to infrastructure. if you look at the status of bridges, roads, core infrastructure in the u.s. needs real investment. we're heartened to see that's coming. and big business is not innocent. the bosses of alphabet, credit suisse and wpp telling cnbc that globalization must work for everyone. >> the plan is to make sure that globalization for works for everyone. >> we have a shared responsibility to make sure everyone benefits from technology. good morning.
welcome back. if you're just joining us. we have a special show for you today brought to you from davos. carolyn is there. we will bring you loads of further interviews throughout the rest of the show. i wanted to draw your attention to some moves in sterling at the moment. cable, 12.2167, it's been on a tear since we lit the level of 1.1983. the lowest since october. this is ahead of theresa may's much-awaited speech on brexit. that takes place today. we're anticipating that she'll signal more of a hard brexit. so some buying into sterling. more safe haven buying into the yen as well. i want to bring you the data hitting wires. when looking at december core cpi for the uk, it was forecast at 1.5%. it came in plus half a percent on the month. plus 1.6% on the year.
that core cpi data coming in stronger than anticipated. uk cpi was forecast 0.3% on the month. 1.4% on the year. and again, according to dow jones, you have cpi of a half percent on the month. 1.6% on the year. producer input prices, 15.8% year on year, which means we're slightly higher than the poll had been anticipating on a year on year level. the highest since september of 2011. sterling hitting a day high after this uk inflation data. 1.2187 is the print we're looking at at the moment. a bit of a spike. it's the speech that everyone is waiting for today. around midday local time here in the uk, the prime minister, theresa may, is going to be setting out her 12-point plan for what a brexit means.
nancy is outside westminster and is looking towards what theresa may will be telling us. there have been some leaks, i think it's fair to say, on what we think she'll be saying? >> that's right. the big headline for investors on expectations for theresa may's biggest speech since she took office in the wake of the june referendum is leaving the single market. we expect the prime minister to make that loud and clear in her speech kicking off just around noon at lancaster house down the road. expect investors to be eyeing more details on what that means in principle. yes, it wasn't a huge surprise that we would eventually have to leave the single market if the government wanted to prioritize immigration control. that's very much the big message we expect to hear today, still up certainties over what the trade deals with europe and the rest of the world will look like once britain is outside the single market.
will they strike an alternative deal as the kind we've seen with canada or the kind of situation you see with norway. will britain have to pay into the eu when it comes to certain membership rules. what kind of rules will they have to follow. these are key questions investors are looking at when it comes to the next direction of sterling and other uk equities. we saw a bit of a dip in the uk banks yesterday on fresh fears over final pass porting and whether or not those rights would be lost as well when you talk about the uk sitting outside the single market. plenty of questions to be answered. when you talk about the bounce in sterling, several strategists said this could be the case because we have been hearing lots of speculation about leaving the single market. so you could get a bit of selling on the rumor, buying on the actual speech today. we will bring you details of that speech coming up at 12:00. back to you for now. >> all right. let me pick it up from here. it will be very interesting to see what sort of reception theresa may will be getting here
at the world economic forum in davos when she arrives at the swiss mountain resort this week. a major focus at the conference has been climate change. cos speaking to us in davos have mixed views on how urgent the issue is. >> a lot of stakeholders are taking steps in order to improve the footprint therefore, yes, we are in the rigt direction. moving in the right direction. the question is is the velocity of this move strong enough or rapid enough. for the time being we are still slow. >> but you always speak about renewable, because media likes those headlines. the biggest potential is efficiency. efficient based on two to three years going straight into your pocket. >> there's a real risk a few
years down the line of an oil price shock. the world economic forum global risks number two on the list of risks of all the cos survey was energy shock, not climate chang change. >> let's talk about some other big issues that are facing investors and policymakers around the world being talked about here in davos. i'm now joined by very frequent visitor of the world economic forum, what is the biggest issue to you, china, theresa may, or trump? >> i think it's -- what i characterize as a new world order or perhaps a new world disorder. it's all changed in terms of global leadership. i think president xi kicking off the forum is a strong statement about china's commitment to a
long-term role, serious role, important policy role on the world stage. i think the next thing you'll see is china playing a much bigger role in the security council in the u.n. as well. >> let's stick with china. isn't it quite ironic how the chinese president, who is the first chinese president to attend the world economic forum today in a speech is expected to defend free trade, globalization, when in the u.s. we're seeing a move against free trade and a move towards protectionism? . i think this is probably the beginning of a debate. you talk about free trade, protectionism. you are also going to talk about climate control. because the chinese are going to be the poster children or the poster child for, you know, major environmental policies. they had to as a domestic matter. big policies tend to emanate from domestic problems and issues. the chinese have had to deal with the environment because
many problems domestically, and they take it seriously. i think they'll emerge as a global leader. >> is the paris agreement dead in the water given that donald trump has called climate change a hoax? >> i think the paris agreement will always have to be rethought. whether it's dead in the water, that's a good journalist expressi expression, don't know if you could say that today. >> no one knows what theresa may will say today, even though we have the leaked documents, but we have the 12-point plan, some of her priorities, will some of that have to be watered down? the starting point she what is a hard brexit stance. will some of that have to be watered down in the process of negotiating with the eu? >> it's predicated on how she's tiering her one, two, and three issues. theresa may is a very
thoughtful, structured, disciplined leader. she doesn't do things -- the press is trying to create an image that she's approaching brexit like she doesn't know how to negotiation. she's actually -- if you look at how she ran the home office, she ran the home office with a great deal of detailed, hands-on acc acum acumen. what she's doing in the short term is lay out a platform and first and foremost try to understand what type of trade agreement the uk and north america, mainly between theresa may and donald trump can be developed over the next month or two. >> you say she's had a good plan all along? >> i think the press has to separate her mindset and her team's mindset in terms of what they wanted to accomplish from how they implement it. i think they're muddling them. i think she probably has a clear view as to what she wants to accomplish. on the other hand you and i both
know you can't negotiate a serious agreement in public. >> all right. what are you seeing in the business community? what are you seeing amongst your own clients? how much uncertainty is there around future business decisions, about investments given the political uncertainty about what mr. trump will do about future trade links? >> if you look at the stock market in the united states since the election -- >> there's euphoria. >> the market has spoken. people are excited, historically since 2008 there was a good international concerted effort at solving the problem, the great recession done heavily will y through monetary policy. we're going through a cocktail of monetary, fiscal and structural. you'll see this cocktail at monetary, fiscal and structural really c really influenced by what the trump administration does. the market sees that for the
emergence of new businesses, lower tax rates, further economic stimulus. >> what will happen to all the cash that will be freed up by the tax cuts, by the repatriation of cash from overseas? will it go into deal making or share buybacks to flatter some share prices? is it about making major deals or capital investment? >> you know, i think we can get you on as an adviser, because i would guess that two-thirds of the cash will go back to share buybacks, and extraordinary dividends. so i think one of the things that is disconnected now is this notion that all the money will go towards building plansing createding jobs. i think some of it will go to rnd, but a large portion, if i were to line up 20 ceos and you should ask them over the next couple of days, the majority will say more than 40%, 60% of the cash will be used for share
buybacks. >> i don't know if i can take up your offer as an adviser to the firm, because i like this job, even though it's freezing cold here in davos. >> it's one of the coldest. though we got the sun today. >> jonathan studzinski, vice chairman of blackstone. we'll go for a quick break. after this break, i'll be joined by the president of the asian development bank. stick around for that.
highly anticipated brexit speech. that will happen in a few hours time. here at the forum, all eyes are on president xi jinping who will hold the opening planary address in a few minutes time. keep an eye on that. want to talk about hyundai. the company set to boost its investment in the u.s. by 50% in the next few years, this as president-elect trump threatened to impose a 30% tax on vehicles imported from mexico. the south korean automotive group said it could open a new plant in the united states creating thousands of jobs. i'm joined by takehiko nakao, the president of the asian development bank. thank you for joining us at the world economic forum. everyone is waiting for this speech by the chinese president. the first chinese president to attend the world economic forum what he's expected to say is basically a defense of free trade and globalization.
that's a theme that you must be welcom welcoming. >> free trade is one of the most important reasons for high growth in asia. china is still growing at a base of 6.4%, that would be for this year. but for that, and for asia to con to grow, it's important to keep free trade. >> in that context, how worried are you about some of the rhetoric coming from the trump administration when it comes to protectionist measures? the tpp, that's already been ripped up. it may be replaced by a more asian deal with some countries in asia dealing with each other. the big tpp, that's dead. >> yeah. we must still see what the outcome of policies of the president trump's inauguration. again, free trade is the essence
of successful asia. and i hope that united states will continue to protect it, because it's also to the interest of america overall. though we must pay more attention to people not benefiting as much as others from globalization. we must pay attention. we cannot return to protectionistic import subsidies kind of regimes. >> is not just protectionism coming from the u.s., but increasingly from china as they are dealing with downside pressure on the yuan, rising capital outflows, and now the chinese government has heavily restricted glows out of china, also in the form of outbound investment when it comes to m&a. remember you equally worried about that sort of protectionism? >> i would not call it protecti protectionism. >> they have tried to keep the
value of the renminbi. >> how important is a stable yuan for the rest of asia? >> for any currency, it's important to keep stability. if a certain currency keeps depreed deprecating, it will invite further outflow. it is better to keep stablibili for any country. >> there's so many challenges in 2017, protectionism, also the fed has announced it will hike interest rates in the u.s. three times with 75 basis points most
likely. that means more capital outflows from emerging markets. >> of course there are many challenges, but we expect that it initial continue to grow at pace of 5 opinion 7% this year. up by 0.1% from the previous year. but it is including korea, hong kong, china, taipei, singapore, which are more diverse economy. excluding those more advanced economies, we are still dprgrow at the pace of 6%. india's growth can be stronger. china will keep solid growth. cambodia, myanmar, bangladesh, those countries are gathering more growth momentum. they also continue to make efforts for structure reforms. so i'm optimistic.
>> it seems there are bright spots for asia for 2017. we have to leave it here. takehiko nakao, the president of the asian development bank. i have to say you are one of the bravest guests we've had out here this morning. you're not wearing a coat. >> yeah, yeah. it was my mistake. >> next time do bring a coat and a scarf. >> thank you very much. on a programming note, you can watch xi's speech here on cnbc in a few minutes time at 11 cet. back over to you. >> i have people writing in here in the warm studio, asking whether or not it is -- the whole thing is a fake. if it's a fake set. actually you're standing behind the pillar back here or something. >> no. frmg it's not a fake set. it's real know behind you. >> it is definitely real snow. definitely real cold. now, it's chilling. it gets to your bones after 25 minutes or so.
yeah. i'm looking forward to that hot tea. >> it's all real. it takes a lot to get davos put together. everybody is actually there. let's continue. the fourth industrial revolution was the theme of the davos economic reform back in 2016. the impact of disruptive technologies remains a maker talking point at davos this year. we've been speaking to business leaders at the forum about how they're using technology to boost their competitive advantage. >> it's renewable, future price has been divided in the past six years, about storage, also digitalization. a revolution in terms of energy and consumption, making sure the two are connected. you know what you're doing with your energy. you adapt to the conditions.
>> we have been beneficiaries as an industry of growing things cheaper. that's no longer enough. with automation, with the need for automation that businesses around the world have, we need to step it up and accelerate the rate at which we can bring new ideas to life for customers, bring automation to improve the efficiency of the work we do. >> it is a new generation model of the internet retailing. we are brick-and-mortar. i think we will still dominate. >> now, along with our platform position outside, we're also live at the cnbc sanctuary. we'll be discussing the future of healthcare, technological disruption, asset management as well. julia is in there at a not fake set as well. >> i cannot tell you how nice it is to hear you talking about how
freezing cold it looks out there, when i'm in the cnbc sanctuary and it's toasty in here. as you rightly said, we have an incredible program coming up over the next few days. i will be talking about the future of the asset management industry. i have the ceo of allianz talking about what the industry will mean going forward, and whether or not it's such a critical point in the industry, whether or not 2017 is different and they can make more money given all the things they've been talking about. monetary policy shifts, donald trump has been a topic at davos already. we also have tanya talking to forest whitaker, reactnowned ac and humanitarian. and she will talk to arianna huffington. back to you. >> take notes. take notes. everybody in the studio wants to hear more. we'll be watching as well.
thanks. don't miss our afternoon show. that takes place as well in davos. carolyn, that's at:00 in t 4:00 afternoon? >> that's right. i'll also do a panel at the sanctuary, talking about the future of healthcare, the intersection of healthcare and technology. talking about the new buzzword in the industry, precision medicine. stay tuned for that. you were talking about the afternoon show. we have got a great guest lineup once again. we will be talking to none other than the executive director of the iea, getting some reaction to theresa may's brexit speech with carolyn fairburn. plenty of reaction to all that's going on this afternoon. >> again, i hope we answered the
question on whether or not it is a fake set to david and the other people writing in thinking we're just pretending that you're standing in davos. you're actually there on the ground. it is also interesting that we have theresa may's brexit speech taking place at midday, too. it's anticipating she could be signaling harder brexit than some people have been hoping for. a lot of viewers have been writing in saying why not do a hard brexit. either we're in or out. not all this in between stuff. the pound has been on a tear. over the last couple of hours actually, since hitting this multi-month low into the session yesterday. we have sterling currently 1.2166 on cable. higher by a percent on the
anticipation of this speech. you never know, you may be surprised on that one. we have full coverage of that. that takes place at midday london time. do stay tuned for that as well. carolin will be back this afternoon with much more from davos. get warm in between now and then. >> i will. i'll do my very best. that's it from me here at davos for now. for the time being. i'm carolin roth. "worldwide exchange" is next.
good morning from davos, switzerland. happening now, chinese president xi jinping set to defend globalization before the world economic forum. a developing story, the global market cautious as british prime minister theresa may prepared to lay out her brexit plans. the expected headline, no half in and half out deal. and the trump effect. general motors set to invest a billion dollars and add 1,000 jobs in the u.s. following an