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tv   Street Signs  CNBC  August 25, 2017 4:00am-4:55am EDT

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rusal. good morning it is friday, we've got another jam packed show for you today. first off, let's kick things off with the efo business index out of germany it falls to 115.9 in the month of august versus a reuters consensus forecast for 150.5 despite that decline, a bit of a beat when it comes to the top line here. we're seeing the euro/dollar is taking the tiniest bit of a dip. off by 0.1%.
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1.1783 the efo has been hitting record highs for the past three months. so maybe this pullback was to be expected the german august efo expectations index came nat 107.9, with a forecast of 106.8. t let's get reaction from nicholas brooks the german economy seems to be firing on all cylinders. are you worrying about a dip in the efo index? >> not at all. we've seen strong data coming out of germany and europe as a whole. so one data point these numbers are volatile it's off maybe short-term traders will look at this but in the medium term, it means nothing. >> especially since the pmi data out of germany was strong.
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we saw that jump in the manufacturing pmi and across the board in europe we saw after a bit of leveling off last month, we saw a comeback. that makes a very clear picture, very good justification for the ecb to taper, doesn't it >> absolutely. that's what they need. the ecb needs to taper for technical reasons as well as economic reasons >> technical because of the scarcity issues? >> that's right. they're running out of bunds and other bonds to buy so they need to taper next year. so this is spois supportive, ths what they need to see. >> the issue is lack of inflation. this is a predicament some are in how does the ub explain to the governing council that, yes, we understand the hawks when it comes to the better than
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expected economic date tax but the doves go on about the lack of inflation what do they do? >> i think what they do is what they have been doing, focusing on the reeling back or tapering of the qe, but anchoring rates at a low level which is why market expectations, the ecb forecast as well is for rates to stay where they are into 2019. but it also, because of the good growth numbers, it allows them to start focusing on bringing that tapering in >> nicholas, we'll have plenty more discussion with you on jackson hole on the outlook for monetary policy and central banks in a little bit. nicholas brooks from intermediate capital group here's a quick look at the equity markets on this fairly quiet friday morning the stoxx 600 is trading at a session high, roughly one hour into the trading session we're up by 0.3% we're waiting for the speech coming from mario draghi that's happening at 8:00 p.m. uk time later on out of jackson hole today
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let's show you the markets one by one this is the picture. gains across the board ftse 100 up by 0.3%, despite the fact that the retail sector is under pressure the xetra dax is up by 0.3%. maybe thanks to that in line efo index that we got out of germany. the cac 40 showing similar percentage gains the sectors, it's the retail sector that is underperforming today off by 1%. this is as amazon yesterday announced that upon the completion of the acquisition of whole foods it will be cutting prices and that is sending shockwaves through the entire retail industry. especially those in europe that have some exposure to the u.s. such as ahold. let's get back to a top story. samsung's heir, jay y. lee has been sentenced to five years in prison for his role in a corruption scandal that rocked all of south korea
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chery kang is with us. five years is less than the 12 years the prosecution was recommending and hoping for. what's the reaction in seoul >> as far as the immediate reaction that we see, outside the court's complex, some protesters actually calling on the court to release jay y. lee. so certainly a divided sentiment here but i will have to note that's a small minority of south korean population so, yes, as far as samsung's reaction is concerned, samsung's lawyer or i should say jay w. lee's lawyers are saying that they are planning to appeal, saying they cannot accept today's verdict. this is a lower court's verdict. we'll have to see if this makes it to the higher court and the supreme court. so we could be looking at this case being prolonged, drawn out
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to at least through the first half of next year. but as far as samsung electronics official statement is concerned, it won't come out with a statement other than the lawyers response if you think about it, when the court is recognizing the embezzlement allegation, which is one of the five allegations against jay y. lee here, samsung electronics is a victim of those -- of the embezzled money. so we could see samsung electronics distancing itself from this legal case some caution is detected on the pr front a lot of officials are tight-lipped about what kind of plans. is there any plan "b" with the scenario of prolonged leadership vacuum at samsung electronics. as far as what the ruling said, what the judge said in the verdict, i think the key point
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here is how this cozy relationship between political and corporate circles in the country has been ongoing for some time. which, by the way, the judge called shocking. >> i want to pick up on a point that you made there, the leadership vacuum from the leadership group, at the same time it has so many subdivisions with ceos. can we really talk about a leadership vacuum here it seems like the company overall is going from strength to strength in the mobile phone business but also the semiconductor business >> that's right. that's the consensus among analysts and people watching samsung group overall. it's a very well knitted company. they have separate ceos for each segment such as semiconductors and mobile at samsung electronics. on a daily business operation,
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as far as the daily business operation, until now and at least in the near-term, not a lot of people are concerned. but we're talking about who is going to be making a multibillion dollar key strategic decision overlooking -- overseeing the overall group under the name of samsung. eventually samsung electronics went for an acquisition of harmon, but that's a very expensive acquisition deal that maybe these career ceos are a little reluctant to make that kind of decision at this point >> thank you so much for the roundup of today's events in seoul. thailand's supreme court has issued an arrest warrant for former prime minister after failing to show up for jail. she said she could not attend
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court to an ear problem. the country's deputy prime minister said her whereabouts were unknown saying it was possible she had actually fled the country. in corporate news, as we mentioned before, amazon will slash prices on a range of goods once its takeover of whole foods is completed while also saying it plans to sell whole foods products on its side that sent shares of rival retailers lower, with ahold-delhaize falling fiat chrysler and volkswagen held talks about joint production of light utility vehicles talks are still in the early stages, but comes amid speculation over potential interest in jeep from great wall motors in a statement fiat declined to comment but says it evaluates potential strategic transactions from time to time. we'll talk more about fiat and
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the auto sector in under 30 minutes time with the managing director after jeffries. that's a conversation you do not want to miss wonder kon condor is eyeingf lufthansa's planes they are in the process of preparing a concrete offer lufthansa submitted a proposal to air berlin on wednesday, centering on the niki business another german newspaper has reported that easyjet is interested in up to 40 of air berlin's planes with slots in berlin and hamburg qantas shares hit a ten-year high in sydney after the australian carrier posted near record underlying profit for the year the ceo said it was proof that the three-year turnaround strategy is paying off and it aims to make another 3$350 million in savings each year
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qantas confirmed plans to offer the world's longest flight between sydney and london by 2022 i read this could be about 20 hours. i do not want to be on that plane unless it's first or business e-mail the show. let me know whether you want to be on that 20-hour journey the address is streetsignseurope@cnbc.com and of course you can find us on twitter, streetsignseurope@cnbc, that's the handle. tweet me directly @carolincnbc still coming up, kansas city fed president esther george says the central bank is well set up for a rate hike. we'll have plenty more from jackson hole and plenty of discussion in the studio after this short break
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ahead of a gathering of the world's top central bankers in jackson hole, wyoming. janet yellen will have a speech at 16:00 cet in what could be her last fed watchers have indicated her comments could outline a course-charting path for a possible successor with a focus on how the central bank plans to unwind its balance sheet ecb watchers are hoping for any sign from president mario draghi that the central bank could begin to taper he will be delivering his comments at 20:00 cet. steve liesman hat full story >> reporter: when the fed gathered a decade ago, they worried about a recession and glooming global crisis circumstances are different and somewhat bet their yebetter thi year but issues are still there.
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instead of buying assets and cutting interest rates, the fed is hiking and nearing a decision to sell assets perhaps as soon as september >> you saw the minutes of the last meeting markets are expecting any time now looking at september and out. that is always a function of what issues are going on when we meet to make that decision but i think the setup is there describing how that would happen and the approach that the committee would take. >> reporter: but there's still considerable uncertainty complicated the outlook is a potential government shutdown next month that could give the fed pause if it really happens president trump has not decided who he will pick to head the central bank so this could be janet yellen's last meeting as fed chair unless she's reappointed. also unclear is whether congress and the president will succeed at delivering fiscal stimulus in the form of tax cuts or infrastructure spending. and the fed is debating why it continues to miss its inflation target and whether it should
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hold off raising interest rates until it gets to the 2% inflation target >> the issue is about inflation, trying to way the conflict between the cyclical factors which could be creating more inflation with a lag and structural factors, like technology that are muting pricing power of businesses. i'm not saying that we won't act by the end of the year i just want to be -- i think we have the ability to be patient here and see more -- see how these forces unfold. >> european central bank president mario draghi will speak friday as markets speculate whether he will announce plans to reduce stimulus on the continent next year it's the same majestic mountains, but a new set of issues, global growth rather than recession exiting easy monetary policy rather than launching it and potentially new leadership on the way at the federal reserve the symposium pits fomc hawks including esther george
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and loretta mester against many centrists and doves. let's get back to nicholas brooks can we expect any surprises from the ecbgiven the reuters leak couple days ago saying mario draghi won't be speaking about monetary policy? or should we expect fireworks from the fed >> i would think mario draghi will be careful. the ecb's meeting in just under two weeks. if they want to make big statements about tapering, i suspect it would be more likely there. though one never knows in terms of monetary policy, again, i think he'll be careful. we've seen a range of mixed data, as we were talking about earlier, strong growth data, but weak inflation data. i don't know if there's anything new for him to say today on that i suspect with mario draghi on the monetary front, it will be relatively calm. yellen could be more interesting. there are a number of key issues floating around.
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she has used the jackson hole symposium to make major statements before. but i think are a couple restraining issues one is the debt ceiling deadline coming up at the end of september, mid-october that could disrupt markets i don't know if you want to make strong statements going into that so i suspect she's more likely to focus on what the topic of her speech is, which is financial stability and perhaps -- what i'll be interested to see is whether she weighs in on this debate of deregulation of financial institutions, which the trump administration is starting to push that clearly has big implications for the fed >> would that be a major mover for the dollar the market is waiting for further clues when it comes to the reduction of the balance sheet or another rate hike in december currently the market is pricing in 42% when it comes to the december hike. financial deregulation doesn't sound as sexy as the reduction
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of the balance sheet does it >> no. no absolutely so i suspect, you know, if she's focusing on the financial stability issues, the impact on the dollar is unlikely to be significant. the only way that it could have a decent impact would be if she's implying that deregulation might cause them, the fed, to be more active in tightening. that would be the only area. i suspect she won't be too strong on that what is your view on the dollar? in the run up to jackson hole this week, we've seen repositioning. investors squaring their position the dollar they've been previously short, maybe excessively short and squaring those positions in the lead up to joel. do you think this could be a turning point for the dollar we've been there many times before we thought the last jobs report would be a turning point it wasn't quite. was do you think >> i think it's possible, but relatively unlikely.
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you know, we've seen the dollar index actually come back a little bit since the beginning of august. we've seen the euro come off a bit which is interesting if i look at the medium term fundamentals, i suspect that ultimately the dollar will remain relatively weak, and that the pressure, it will be on further weakness on the dollar >> i guess as long as ten-year treasury yields stay stuck below 2.2%, the dollar is going to be staying weak as well, as long as we have this uncertainty about policy coming from the trump administration what else could push the dollar higher >> i think the main thing that would push the dollar higher is if we continue to see relatively robust cyclical indicators it's going to be a -- if you're looking at euro/dollar it will be growth in europe versus growth in the u.s. and where do we go from here. >> so it's the relative trade, i guess. nicholas, do stick around for the time pg&e.
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we'll have more coverage from joel today cleveland fed president loretta mester will speak to cet at 14:30 cet it we'll also hear from imf chief economist maurice obstfeld at 22:30 cet. britain's foreign secretary, boris johnson, says though the uk has to meet legal obligations during eu talks, some figures touted for the brexit bill seem too high in an interview with the bbc, johnson added that britain would not pay a pen any more than is required nicholas, that sounds like classic boris johnson. should we expect any other language from him than this? >> no from what we've seen historically, with boris johnson, he will play both sides to some degree i think that they're trying to
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convince those that voted for brexit that, you know, we're not -- the uk will not pay a lot of money for it. it's clear from the europeans they're sticking to their guns, and they will insist on some form of payment. until these issues are worked out, the uk and europe are not able to move on to the important issue which is what the new relationship might look like >> nicholas, looking at what happened in the markets this week, we have the pound against the dollar add a two-month low the likes of dixons carphone warehouse coming out with a profit warning because the brexit impact is too difficult for their business do you think that finally the cracks are starting to appear behind this brexit wall? where we thought it had dodged the recession? >> i think so. we have seen relatively weak data coming out of the uk in recent months. we've been building in that direction for some time with real income stagnating, consumption is 60% of the
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economy, what happens on that front matters much the one positive is that earnings growth around the world has been decent. that can help soupport investmen growth i think consumer spending will likely remain under pressure this uncertainty is building unfortunately, because of negotiations moving at such a glacial pace, it's hard to see that uncertainty disappearing any time soon, which implies that we will see subpar growth in the uk going forward. >> at least today sterling/dollar is making a comeback just up above the 1.28 handle. it doesn't have major upside from here. do you think >> i don't think so. on a structural medium term basis it's hard to get bullish on steriling in the ing sterli. >> nicholas, thank you very much for your time. shares of adidas are under pressure after the ceo kasper
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rorsted down played expectations following a record performancece way of stacks reform. >> you need to clean out the old garbage of the tax code that primes us for the 21st century so that we can be in good competiti competition. good morning if you're just tuning in this friday morning, let's give you a quick look at the premarket action in u.s. trading the s&p 500, dow jones and nasdaq seem marginally higher. the dow seen up by 31 points after stocks slipped lower for the second straight session yesterday. but retail stocks actually rising quite sharply as earnings from some of the names were simply not as bad as feared. the major averages are on track for the first positive week in three. at least that applies to the dow and s&p. as far as european markets are concerned, the ftse 100 is up by 0.3%, despite pressure on
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retailer stocks. this from the fact that amazon said it will be cutting prices after it completes the takeover of whole foods ahold in the nether lands is falling hard on this the xetra dax is up by 0.3%. the ifo fell a touch in the month of august but came in ahead of expectations. the euro/dollar is now flat. 1.1797, largely unmoved after that ifo data came out the u.s. dollar is making little headway against the yen. i guess we're all waiting and watching to see what comes out of the jackson hole symposium with the big speeches from janet yellen and mario draghi happening later on today first let's turn our attention back to what's happening in washington house speaker paul ryan has insisted the united states will raise the debt ceiling in time echoing majority leader mitch mcconnell's comments earlier in the week both men attracted the ire of president trump over the issue he says they have created a
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mess shrugging off the president's criticissed on the republicans push for tax reform speaking exclusively to cnbc, the house speaker said the system in the u.s. is out of date >> we have a tax system written in 1986 for th 20th century and well into the 21st century and rest of the world is passing us by we're really -- we have such an antiquated tax system that dropping rates without fixing the actual system would not be nearly as growth producing system that cuts works for workers and families and businesses >> the battle inside the white house is heating up over trump's threat to shut down the government if he does not get funding for a border wall with mexico the president met resistance from fellow republicans and in true fashion has taken to social media to vent his frustration. kristen welker has more.
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>> reporter: tonight, a clash of the political titans president trump is digging in on his threat to congressional leaders. fund the border wall or he'll force a government shutdown. a warning he unleashed earlier this week. >> believe me. if we have to close down our government, we're building that wall >> reporter: the president attacking gop leaders by name. taking direct aim at house speaker paul ryan and senate majority leader mitch mcconnell on twitter the white house publicly downplaying the tensions >> i think the relationships are fine >> reporter: but behind the scenes, so white house officials privately worry the attacks could hurt the president's agenda and one top republican senator calling the ultimatum disruptive still one senior administration official tells nbc news mr. trump sees his tough tweets as a tactic to hold lawmakers' feet to the fire. now republicans are firing back. >> i don't think a government shutdown in necessary and i don't think most people want to see a government shutdown. ourselves included >> it would be completely counterproductive. >> reporter: and tonight, more
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tough questions for the white house after the president promised mexico would pay for the wall >> who's going to pay for the wall >> mexico! >> who >> mexico! >> reporter: so will mexico still foot the bill? >> how is that not a concession from the white house that mexico is not actually going to pay for the wall and american taxpayers will >> this is something the president is committed to. >> reporter: in border states they're watching the battle closely, texas republican congressman will hurd's district is along the border. he insists the wall is the wrong move. >> we should be using technology and manpower in order to secure the 2,000 miles of our border. that's a fraction of the cost of building a concrete structure. >> reporter: a fierce debate among landowners and ranchers. with rising concerns about drugs and crime. >> if we can stop it, if we can do a partial stoppage with a wall, why not? >> it's a very misguided use of taxpayer money, of resources >> that was kristen welker
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tropical storm harvey intensified into a category 2 hurricane on thursday as it hurdled towards texas. meteorologists forecast the storm could be a category 3 major hurricane when it makes landfall late friday or iearly saturday fears the storm could disrupt oil and gas production in the region have sent oil and gas futures higher a quick look at oil prices this morning. we're seeing them move to the upside to no surprise here as we expect supply disruptions across the gulf of mexico where the refinery activity is so heavy. brent crude up 0.9%, 52.50 wti crude at 37.82 up by 0.8% worth noting that according to one frequent viewer, this is the
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first hurricane to hit the u.s. refineries since the u.s. became a make procedure duct expomajorr let's get out to sargalvest texas for an update. what's the latest? >> the rains have officially started azhar i has harvey barrs towards the coast of texas it's been more than a decade since this area has seen a major hurricane with winds topping 110 miles per hour harvey is shaping up to be just that ahead of landfall, the governor of texas has declared an emergency in 30 counties seven counties under maintondat evacuations as conditions worsen here in texas. part of the problem is that
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harvey is expected, once it makes landfall, to actually linger over the inland area, bringing with it up to two feet of rain among already saturated areas. i mentioned people beginning to evacuate evacuating all last night. for those choosing to stay, officials are urging them to be prepared, not only for the hurricane but the days after and already stores are seeing shortages of food, fuel and water. back to you guys >> sara, thank you very much for that i want to say as of yesterday midday, just under 10% of the off-shore u.s. gulf of mexico crude output capacity and nearly 15% of natural gas production was halted i guess those percentages will go up significantly throughout the day as the hurricane makes landfall. still coming up on the show, another string to your bow we'll discuss how antique instruments can help diversify your investment portfolio. don't want to miss that.
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we'll be back. welcome back w
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gamestop shares fell over 7% in afterhours trade after they posted a narrow miss on corporate profit expectations. the company has been trying to enhance technology brand units which include at&t and apple authorized stores in an effort to combat falling video game sales. despite reporting a 7% rise, the retail units failed to live up to analyst forecasts thousands of gamers will descend upon cologne in germany, that's for the video game trades fair gamescom. elizabeth shultz grabbed a controller and investigated the rapidly growing games industry
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>> reporter: germany's video gaming market is the biggest in europe the country is home to an estimated 34 million gamers, or about half the population above the age of 14. so it was fitting that german chancellor angela merkel opened the gamescon fair in cologne, touting the economic influence of the gaming industry gamescon has been a hot spot for gaming technology since it launched in 2009 but this year's event is highlighting the growing influence of casual gaming social and casual gaming global revenues will surpass traditional gaming revenues for the first time this year >> there's so many people that are interested in gaming now that you can't say that it's going any one direction, like some people love casual games on their phones other people are trying to get the most awesome hard core game
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they can find. >> barriers to enter the online and casual gaming market are lower than in some other higher tech products. this has crowded the market for some game developers, but has also opened up new jobs. >> programmers, artists, musicians, you know. it takes all kinds to do games >> dream jobs for a lot of workers and gamers here. >> what i really love to do is play games >> that's a dream for many people out there not for me necessarily, but any ways back to our top story. the world's top central bankers are gathering in jackson hole for the kansas city fed's economics symposium. investors are waiting for chair janet yellen's speech at 16:00 cet, in what could be her last at jackson hole as head of the federal reserve. they're not expecting significant shift in policy, fed watchers have indicated her
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comments could outline a course-charting path for a possible successor with a focus on how the central bank plans to unwind its balance sheet ecb watchers are hoping for a sign from president mario draghi that the central bank could begin to taper cnbc spoke with esther george, a vocal hawk on the committee who said the central bank was well set up for a rate hike in coming months >> you saw the minutes of the last meeting markets are expecting any time now looking at september and out. that is always a function of what issues are going on when we meet to make that decision i think the setup is there describing how that would happen and the approach that the committee would take >> dallas fed president robert kaplan expressed a more dovish tone highlighting inflation as a cause for concern for the committee. >> the issue is about inflation. i think we're really trying to weigh the conflict between the cyclical factors which should be
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creating more inflation, though with a lag, and structural factor facto factors like globalization and technology that are muting pricing power of businesses i'm not saying that we won't act by the end of the year i just want to be -- i think we have the ability to be patient here and see more -- see how these forces unfold. >> the symposium pitts fomc hawks against the committee's many centrists and doves ♪ all this week we've been talking about alternative investments. how gold, wine, art and bitcoin can help boost a portfolio now we look at how antique musical instruments have become an attractive alternative asset. here to explain is nigel brown, founder of the stradivari trust. thank you very much for coming on the show. explain what you do. what is the stradivari trust >> the stradivari trust is the
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administrative center of what i do the main business of that is putting syndicates of people together to buy very expensive instruments for top string players, mainly based in this country to play and use. >> so basically any person, any investor out there can commit a chunk of their money into the musical instruments and then hope for a return? it's not -- is it like a loan? how does this work. >> no. no the idea is that when we are going to get an instrument, we create a number of notional shares so if it's a 500,000 pound instrument we create day one 500,001 shares people can put in not less than 500,000 pounds to acquire some shares this sounds like structured finance for musical instruments. i guess there's no bubble here
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who typically invests in this? >> anybody who is interested in music really otherwise you wouldn't get to know about it. it's people interested in music. and didn't know that they could actually own a bit of the instrument >> was the minimum contribution or investment would have to make >> 5,000 pounds. >> not too bad sounds like crowd funding and structural financing for musical instruments at the same time when we talk about alternative investments, this is often for the lgtong-term we talked about collect ball watches the other day. what's the time frame for this investment >> i set up these trusts over 20 years. so it's 20 years but the musician hat right to buy out the shareholders over the life of the trust. the only snag for the musician is they have to pate going rate. so the instruments are revalued
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each year. if the share price having started at 1 pound has gone up, then the musician will have to pay a higher price >> what's the average rate of return from your past purchases or -- >> 8% to 10% >> not too bad you have ever had a major default where an artist wasn't able to buy back an instrument >> yes, under those circumstances we sell the instrument >> do you think there's plenty of demand from the musicians themselves because they're struggling so much it's not possible for them to find the financing? do you think there would be more demand for similar financing structures or that this is a niche idea >> well, it's a niche idea, and i don't think there's much else out there. you know, occasionally you hear of somebody having bought a strad for somebody so you get individuals who will buy one instrument but the sort of thing i'm doing,
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no and a musician couldn't go to a bank and get the bank to put the money up because they couldn't afford to pay the bank back. >> yeah. how did you come up with this idea looking at your background you worked in finance, you worked at the stocks exchange, i guess yu had a love for the instrument, for violins? >> yes, i do but my motivation is to help the musician. it was my belief that musicians ought to have the opportunity to own the instrument that they play in the bad old days, golden age, most musicians would have owned some special instruments if you go back to maybe the 1960s, top players in orchestras in this country would definitely be playing some very, very classy instruments i'm not saying some of them don't today, but it's not the same musicians don't earn very much money. >> no. what i'm able to do is through the syndication idea, to give
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them the opportunity to buy in over a period of time at a price they can afford. >> is there a better rate of return for certain instruments let's say violins for exam s? cellos and brass instruments >> don't do brass instruments. >> you don't why not? >> because you could buy the best trumpet in the world, i'm not sure what the prices are, 20,000 that doesn't buy you a decent bow these days violins, violas and cellos are hugely more expensive. i guess violins are slightly easier to deal with than violas and cellos because there's a bigger market. what about the idea of buying an instrument outright as an investor not participating in your trust as such, but by buying a stradivari itself. is that a good investment, too >> yes, but the question is who do you go to how do you know that you're going to somebody that you can trust? i'm not saying dealers are untrustworthy, but a dealer is a
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dealer you can go to an auction house, but do you know what you're buying >> probably not. thank you. thank you very much for presenting that idea nigel brown from the stradivari trust. i've got a bit of a cold, as you may have noticed, i am coughing quite a bit so let's play you what mr. ryan had to say exclusively to cnbc about how the u.s. tax reform will have to be reformed ylan mui has the story. >> reporter: house speaker paul ryan taking the case for tax reform on the road he was here in washington touring a boeing factory and talking with employees and the company's ceo dennis muhlenberg. but president trump threw a wrench in the tax reform message with a tweet that blamed ryan and senate majority leader mitch mcconnell for making a mess of the debt ceiling fight i sat down with speaker ryan for an exclusive interview and got
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his reaction to president trump's comments >> i don't take it as going after me that's an option we were looking at the va deadline came up, we were not able to do that then i'm really not that worried about this we have plenty of options ahead of us. we will pay our debts. make the debt limit, hit the increase before is penetrated, meaning we'll pass a debt limit increase, plenty of options. that one wasn't available. >> do those options include a clean hike of the debt ceiling >> there's a bunch of options in front of us. i'm not going to negotiate t the media but we have a lot of options in front of us not worried about getting this done, we will pass the increase before he hit the debt limit. >> reporter: tax reform is republicans signature issue, and ryan wants to rewrite the tax code to simplify it. but that could mean taking on some popular deductions like the mortgage interest deduction. >> we recognize, acknowledge and believe you need to maintain the mortgage interest deduction, whether it could be improved and
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how it works, that's discussion we'll have and that's what th ways and means committee has their process for. the point being we'll maintain those critical things because we think they are really important. homeownership, charitable giving, these are things everybody needs to do and wants to do in conjunction with dramatically simplified tax code >> reporter: ryan acknowledges that tax reform will involve some tough tradeoffs and every household and every business has to be willing to give up goodies if they within a lower rates across the board for nightly business report, i'm ylan mui in washington state. let's look at european markets and the ftse 100 is up by 0.3%. the xetra dax is showing similar percentage gains we saw that slight dip in the ifo for august, that's to be expected still the headline number was a small beat the ftse 100 is up by 0.3% despite the fact that many grocery names like sainsburies and tesco, they're falling hard
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on the back of the amazon news amazon saying upon the completion of the whole foods deal it will be cutting prices obviously there's plenty of fear of another round of the price war going on in the grocery sector when it comes to the sectors, that's where the story is playing out. retail is off by 1 %, exactly because of the store i told you about. ahold-delhaize is falling hard this is a business that has a sizable exposure to the u.s. business that's why it is under so much pressure today basic resources on the other side of the ledger doing well today. up by 1.3% along with financial services and autos we're waiting with bated breath for what's coming out of the jackson hole symposium and mario draghi's speech. that will be happening at 9:00 p.m. later on today. we're going to stay -- sit on the sidelines until then condor is reportedly eyeing some of air berlin's planes, heating up the raise for the carrier's assets
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the german unit of thomas cook is interested in a double digit number of planes and is in the process of preparing a concrete offer. lufthansa submitted its proposal to air berlin on wednesday centering on the airline's niki business another german newspaper reported that easyjet is interested in up to 40 of air berlin's planes with slots in berlin and hamburg quauantas shares have hit n ten-year high in sydney. the ceo said the result was proof that the airline's three-year turnaround strategy is paying off and that it now aims to make another 3$315 million in savings each year qantas confirmed plans to offer the longest flight between sydney and london by 2020. before we wrap up the show, here's a quick look at u.s. futures. they're looking quite green. the dow jones seen up by 30
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points the nasdaq seen up by 9. the s&p 500 seen just fractionally higher. that's after we saw another down day yesterday. that's it for today's show i'm carolin roth "worldwide exchange" is up next.
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i have ta as harvey takes aim on the gulf. and wall street will be keeping an eye on harvey as well as janet yellen's big speech today in jackson hole, wyoming it's august 25, 2017, "worldwide exchange" begins

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