Skip to main content

tv   Street Signs  CNBC  September 25, 2017 4:00am-5:00am EDT

4:00 am
a.b.b. buys the industrial solution business for $2 billion as they tell him he can breathe life back into the unit. good morning, everyone glad you're with us. it is the morning after the german elections we'll have plenty of coverage throughout the next hour first, let me get to some german macro economic data. it is quite fitting. we've got the german business index.
4:01 am
that has fallen slightly falling from 155.2 versus reuters of 116. remember, the 116 was the record level we hit back in july. once again, we have a slight bit of a dip but by and large this is not too much of a fall. by and large german businesses have been quite resilient to some of the geopolitical stocks we've seen i'll be speaking to the clemens fuest. angela merkel has won a fourth term as chancellor while support for the far right surged they won 33% of the vote and will remain the largest group in parliament but the result marks the conservative's worst since 1949. now the euro has slipped following the results as investors suggested the challenge that merkel faces to build a stable coalition government there you go
4:02 am
1.1902 they are close to section lows down 4%. it seems like the euro is down more against the pound sterling. you're seeing a little bit of nervousness around the task, very tricky task of perfeformint coalition and maybe less of a european coalition addressing supporters, merkel had said she had hoped for a better result but vows to work to build a coalition >> translator: the coming weeks will not be easy but cdu and csu are parties that recognize their responsibilities for the country, for the program, for that which is important to us and for the people and i am convinced we will master the coming weeks in that spirit. >> the social democrats led by martin schultz logged their worst results since 1933 and hold out a return for the grand coalition. >> translator: i say this here very clearly
4:03 am
this campaign we aim to replace the current government and chancellor therefore, it was only consequent and right as i have indicated to the spd party government to go into opposition >> the afd shocked the establishment becoming the first far right party to take parliament in more than half a century with almost 13% of the vote they sparked protests outside the party's headquarters in berlin the party's leadership vowed to use the new position to hold merkel's next government to account. >> translator: as we are clearly the first strongest party, the german government whichever way it is formed should dress warmly we will hunt them. we will hunt mrs. merkel or whoever and we will take our country and our people back again. >> let's get out to the story in berlin there's no way to sugar coat it. it is a slap in the face for angela merkel. the german newspaper is talking
4:04 am
about a quote nightmare victory. what's the rest of the press saying this morning? what's the reaction? >> reporter: yeah, that's essentially the summary of yesterday's election night i think it is a very dire situation for the traditional parties, for the cdu, the spd. i mean, the bottom line is that 25% of all voters have voted forex treemist parties to the right and to the left. so we have a certain segmentation of german society what that all means for a german coalition building and for the new government, i'm going to be joined by the co-chairman of the cd ur parliamentary group here in berlin. thank you very much for joining us they were saying it's a political nightmare. it's a political nightmare victory for angela merkel. would you agree with that? >> she's still the only one who
4:05 am
can form a coalition, who can be the chancellor there's no other choice than angela merkel but on the other hand, of course it's not a victory because we lost a lot of voters we have to analyze why we lost them also to afd, to the right wing party which i have my problems with >> of course the right wing party yesterday was more or less the only party with the liberals who were very happy about the results. what kind of mistakes have you done, have you not addressed people's concern about regression good enough >> definitely not. this is in part due to the refugee situation in germany which we did not really come up with proposals which our voters liked, but on the other hand, it's also a question of economy. liberal life and the economy
4:06 am
we did not really show up to watch. that's one of the reasons we lost to the liberals that's what they want from us and the spds they lost another 5% it's almost not a real big party anymore. >> let us talk about coalition talks because i think international investors are concerned about the perspective that we couldn't have a government until christmas potentially in germany how long are you thinking will those coalition talks take >> it will be like always. remember last time angela merkel has been elected on december 12th as chancellor so i guess it's going to be almost the same time, particularly since this is three parties now, four parties negotiating together it doesn't make it easy, at least two, three months is absolutely necessary it's been always like this.
4:07 am
>> what are the tricky issues between those three or four parties? >> the greatest thing is we have cdu and csu, which is the bavarian part of our party and csu is not very much in love with the queen there might be some very difficult tasks to overcome and angela merkel has to organize a lot of compromises which is not too easy >> what do you think who will be at the helm of the finance ministry are you confident that the cdu is keeping that? >> i do hope so because i think mr. scheubel is the right person to run the finance ministry. germany is not having any new debt and we've had a balanced budget for four years in a row i would be very happy if he can make it again. that very moment and that very coalition hopefully he's going to run as finance minister
4:08 am
again. >> that's interesting. let's look at the alternative for germany. what does it mean that they are in parliament? can they shape the political debate or can they really make a political difference >> first of all, they are not the biggest party of parliament. there are other parties. i have a feeling we are having normal debates it's going to be maybe a little bit more opposition debates because in the last parliament we had almost 80% in the coalition. maybe this makes it a little more lively. >> thank you very much hopefully you're right guys, with that i'm sending it back over to you it's a political earthquake. that's what most of the commentators are saying here in germany. still, angela merkel will be the chancellor here in germany >> thank you very much
4:09 am
before we talk about the business climate index for september, which surprisingly fell a little bit away from the record conditions, i want to talk to you about the election results. a bruising result for the established parties. why are they in crisis is it because they didn't address the refugee issue or what else was it >> in my mind, it's clearly the refugees issue when angela merkel opened it, it was a shock for half of the population the majority in the end supported the policy there is a strong majority that is very upset and that's what explains the support for the a.p. and the declining support for angela merkel. >> how long do you think the coalition talks will last. the spd said we're going into opposition right away. now it looks like a jamaica coalition could take up to 100
4:10 am
days >> uncertainty is twofold. it will make a coalition and will it be stable. so if they succeed in creating a coalition, i think they will do so before the end of the year. so that's not the big issue, but then the question is, you know, will they agree and how stable will this coalition be. >> the index has dropped slightly in september. not a huge deal. was this a sort of, you know, harbinger for what was about to come was there nervousness among the business leaders about what this new coalition would look like or would you dismiss that >> i would dismiss that. i think that the companies are really taking a breather the german economy has been moving upwards more or less constantly you know, there are sectors, you know, really running at full capacity and i think, you know, it's just a breather it's not a turn around
4:11 am
>> have we hit the peaks over the summer do you think we can go back towards the peaks in the third quarter and fourth quarter potentially and how does the euro strength play into this we're a little bit weaker, 119 we're still at a level that might be a bit of a headache for many exports. >> i would say the strong euro is part of the good recovery in the eurozone i don't think it is a problem. most particularly german companies will be able to live with the euro. at par with the dollar will be 1.30 the euro is still relatively low. i think german companies can live with that very well. >> how optimistic are you about further integration from here and now? given that we might be looking at a jamaican coalition and the spd party has been opposed to your budget without any strings
4:12 am
attached, do you think we'll see what mr. macron was playing out? >> this will be very difficult the fdp has said very clearly there will not be a european budget of course, they'll discuss this. it's going to be very difficult. >> clemens, thank you for your thoughts this morning. e-mail the show. let us know what you think about this election. what the refugees did to the election you can e-mail us or find us on twitter. still coming up on the show, we're going to talk even more about the german elections yes, a weakened lang merkel faces tough coalition reform and they vow to hunt the chancellor. we'll be getting the view of goldman sachs when we come back. my name is jeff sheldon,
4:13 am
and i'm the founder of ugmonk.
4:14 am
before shipstation it was crazy. it's great when you see a hundred orders come in, a hundred orders come in, but then you realize i've got a hundred orders i have to ship out. shipstation streamlined that wh the order data, the weights of , everything is seamlessly put into shipstation, so when we print the shipping ll everything's pretty much done. it's so much easier so now, we're ready, bring on t. shipstation. the number one ch of online sellers. go to shipstation.com/tv and get two months free.
4:15 am
want sure!ck? alright, looks like we've got chips, popcorn, pretzels? pretzels! plain, sourdough, spicy, sesame, honey mustard, chocolate covered, peanut butter filled, this one's in german, it says, "reindfleisch?" plain. great. so what are we gonna watch? oh! show me fall tv. check out the best of the best hand-picked fall shows on xfinity x1, online, and the xfinity stream app. thirsty?
4:16 am
welcome back to the show let's just show you what european equities are up to this morning. roughly one hour of trading. it's up by a smidgen up by 0.1%. we're not seeing a huge reaction it seems like right now it's going to cost coming to the length of the election the german index is doing, it is actually up by 0.1% but, again, there is some very cautious fear we're seeing the flat line and the ftse 100 is off by a quarter of 1%. there's very little to write home about when it comes to the individual movement here we did have some deal making happening between a.b.b. and one of the units at ge
4:17 am
that failed to spark a rally in abb this morning sectors, media household goods doing a little bit better. some of the cyclicals under performing this morning. despite the fact that the euro is a touch lower this morning and all of this came obviously on the back of lang merkel winning a fourth term as the chancellor while support for the far right asb surged the csu won 33% of the vote and will remain the largest group in parliament it creates a challenge for merkel as she creates a stable government i did tell you about the weakness that we're seeing i want to tell you what is happening in the government bond space and what we're seeing is we're seeing some spread widening specifically when it comes to the italian paper show you how nervous the market is not extremely nervous, a tiny
4:18 am
bit nervous about the length of the coalition and the fact that we're not going to be seeing more euro integration, at least not as much as initially planned. let's talk further about this very topic with the germany head at goldman sachs first of all, what do you make of the election results and how the markets are taking it? >> a large party is carrying the coalition and they're at record lows the second conclusion that you eluded to, the winners of the election are the ones that are most critical on further deepening of euro integration. >> what does this mean as a whole. we're seeing the dollar split a little bit do you think this will have a longer effect? how much trading are we going to be seeing over the next couple of months as we go through the very testy coalition costs >> it increases uncertainty. one of the things you mentioned is the green party, which is
4:19 am
quite pro euro and is also among the potential coalition partners in that sense, they haven't been the most outspoken under the issues of fiscal budget banking union, but they are certainly much more pro european than other coalition partners that has really shown itself yesterday. >> certainly seems like the sep, the liberals are going to be the most coalition partners to work with this is the party that they've been in coalition with before between 2009 and 2013. at that point they didn't have finance ministry this is something they want this time around. they had a poor showing in the 2013 elections i'm sure this time around the sep wants to make its mark and push through some of its proposals. how difficult is that going to be >> well, i mean, especially the analysis of the 2013 was that
4:20 am
they mainly were down so much because they didn't really achieve their goals. that will make them obviously much, much tougher in negotiating so that will be a big obstacle and agreement don't forget the other aspects, the party that angela merkel is facing a very tough regional election next year they actually lost more than the universal party. they will be quite tough negotiator negotiators. they have been a euro centric part of the deeper integration on fiscal and budget terms. >> what does it mean for a plan for a more deeply integrated europe lang merkel has been sipping from the same himalaymn sheet. listening to them yesterday and this morning, it seems like he wants very, very tough rules when it comes to that. is the macron plan dead before
4:21 am
it even came to life >> i would say it's much too early to evaluate that the coalition will be very long but certainly the fact that the more critical parties especially on the bank integration, they'll want that in a positive way, that will certainly make it much, much tougher to achieve those goals. >> what does it mean for european assets as a whole they've been loved by global investors. they've slightly under performed their u.s. peers it's been a pretty good year given the threat of populism we've seen some very good performance in the european assets is that now slowly coming to a halt >> i would be more glass half full if you see the market reaction this morning, if you look at the very substantial changes that we've had in the electoral vote in germany, yet markets are
4:22 am
still quite constructive on euro europe, we're seeing the in flows from noneuropean investors in europe, i don't expect to see that abate as a result of this election alone >> what would that have to be? is it tapering or is it a geopolitical complex >> i would say tapering is also very widely priced in, right the numbers, the amount of german government bonds that are available for purchase is limited. i think the market consensus is that tapering will happen already. >> when we take a closer look at germany we're seeing that unemployment is at 3.7%, lowest since the country's reunification. inflation pretty low, 1.5% we've read about phillips first being broken what is the underlying, fundamental issue in germany that's keeping wages from rising
4:23 am
>> first of all, the course the results of the election will bring much more attention to do we have to do more to distribute wealth and wage growth more equally. i mean, certainly the topics of immigration and alternatives to production in central europe have been pressures on the wage growth now the other side there is a broad consensus that the german economy and economic growth more stable, more domestic demand can be helpful on the fiscal and wage side. there will be -- there's likely to be action taken that further strengthens the demand for part of the equation. >> thank you so much for your thoughts appreciate it. germany co-head at goldman sachs. it's not only the euro taking a lecavalier down todg dy they're set to lock horns over the new zealand first party after forming a coalition.
4:24 am
saturday's election failed to have an outright winner. >> reporter: there was no decisive victor in the weekend election here in new zealand, but that's not entirely uncommon under the mmp system of politics here in new zealand. we saw neither the national party or labor achieve enough votes or enough seats to be able to govern in their own right so they're now going to need to turn to minority parties in terms of the breakdown, the national party got 46% of the vote that was stronger than what they had been anticipating scoring 58 seats, they need 61 to be able to govern in their own right labor, 35.8%, 45 seats there they're going to be disappointed with that result we did see, of course, a lot of enthusiasm behind labor after they replaced the leader just seven weeks before the election. they mappinged to boost the labor vote by about 20 points in
4:25 am
the leadup to the election but didn't get enough to be able to get labor and the others aligned across the line. who now is emerging as the likely leader is winston peaters. he leads the new zealand first party. they had 7 1/2% of thevote whichever side of politics forms government, they're going to need his help. he said he's going to take his time to decide which side of politics he will back. special vote won't be known until october 17th he wants to wait and see the final outcome once all the votes are counted before he decides who he's going to back the latest from aukland on the new zealand elections. back to you. >> looks pretty windy there. quick look at the qe dollar feeling some of the chill off by 2/3 of 1% against the u.s. dollar. after the break, we'll be hearing from the new leader of
4:26 am
the five star movement and a weekend where they look to make a move to the ruling keen for a shot in the limelight once more. most american homeowners would be shocked if they knew just how rich they were. the average american home value has increased $40,000 over the last 5 years. but many don't know you can access that money without refinancing or selling your home. with a home equity loan, you can pull cash out of your house for anything you need- home improvement, college tuition, even finally getting out of credit card debt. come to lendingtree.com to shop and compare home equity loans right now. because at lendingtree, when banks compete, you win.
4:27 am
4:28 am
4:29 am
4:30 am
hello and welcome to "street signs. i'm carolyn ross and these are your headlines angela merkel wins a fourth term but her conservative line suffers its worst result since 1949 the amd becomes the first far right party in more than half a century. >> translator: cdu and csc fought together. we managed the best results but we recognize the shared responsibility we now have for the country and for the future. japanese prime minister shinzo abe unveiled a $17.8 billion stimulus package coming ahead of a rumored snap election. abb buys ge's industrial solution business for $2.6 billion. this is as the ceo tells us that he can blooift back into the unit. >> this is right in the sweet spot they bring a lot of oxygen to bring this business back to its
4:31 am
form that it once had. good morning, everyone european markets and investors are trying to come to terms with the elections that we saw overnight in germany to be honest, we didn't see huge market impact yes, we saw the euro falling in a little bit we'll come to that in a second the equity markets are not reacting a great deal. the xetra dax is up to the tune of 0.21. obviously what we're looking at is the worst showing for angela merkel's party since 1949 as you heard in the headlines the first far right party to do so since the 1960s this is a big shock to the political and business elite in germany and a lot of people are now wondering how long are the coalition talks going to take? what is the jamaica coalition going to look like when it comes to policies?
4:32 am
what does it all look like in europe that's why we're seeing nervousness. you have the euro down by roughly 0.4%. i should tell you that pound sterling has been quite resilient despite that credit rating downgrade we saw from moodies. that was incidentally after theresa may's election the new zealand dollar, off 0.7% after we didn't get clear results coming from that election either. but we also had italy to contend with with italy's five star movement has elected a new leader as it tends to transform from a protest party into one of national power the deputy speaker of the lower house has been groomed for the role has a more moderate voice.
4:33 am
they will lead the party into parliamentary elections happening sometime next year we're joined from germany. there are a lot of questions about the 31-year-old lieder he doesn't have a whole lot of experience what's the word on the ground? >> reporter: yes i think let's go back and give it a little bit of context the 5 star movement was only founded in 2009. by 2013 they had secured 25% of the whole platform their platform is antiglobalist. a populist movement that was putting together an antieurope movement i wanted to see whether the principles are the principles that reflect the party today here's what he had to say? >> translator: we never said we want to leave the european union. the e.u. represents a big opportunity if it can change some fundamental rules, specifically some that impact
4:34 am
countries, including ours. we want to remain in thee.u. but we want to change some of the rules. i am thinking about the 3% rule. you can't make some investments that france and spain can make, stronger economic growth i am thinking about the fiscal impact there are a number of treaties that are damaging our agriculture like the treaty between the e.u. and morocco we want to form a different europe it's critical towards certain rules. merkel talks about changing the dublin treaty. we have a lot to do, but we know the original idea of the e.u. was a good one if the e.u. goes back to its founding principles, for us the e.u. should continue to exist. >> will you hold an e.u. referendum >> translator: we have separated the two. our monetary policies are some treaty we want to change
4:35 am
i am also referring to some policies from the ecb and such is their plan to help small companies. for us a referendum on the euro is a last resort if we want to sit down and have a last resort of what we want to change if the e.u. doesn't want to change anything, especially the ones that affect our economy, we'll ask the people if they want to remain in the european union. >> reporter: there you heard it. he's saying staying in the e.u. is a priority for them what they want to do is negotiate some treaties that don't work well. one thing he referred to them is that of the fiscal and growth compact that forces them adhere to the 3% budget deficit target. that's making them very uncompetitive versus other countries in the eurozone. if they are focused on it, it allows them to invest more and
4:36 am
snip a little bit out of the deficit guidelines the focus is to go to the eurozone countries try to have a conversation see if they have a little bit of leeway to renegotiate the treaties as a very last resort they would go to euro referendum. >> i wish them luck with trying to renegotiate some of the major worries around italy is certainly the growing debt 132% of gdp. that is the figure that people are worried about. how does aim to tackle that? >> reporter: one thing i think that's worth mentioning as well is obviously the angle of the total debt the third largest in all of the european union that is the banking sector the italian banking sector comes up time and time again there are non-performing loans to deal with if you remember back in december the government had to bail out
4:37 am
small banks. it costs about 20 billion euros, 1% of gdp. when i asked di maio what his deal was, he said that they had an issue with how the banks had been managed but that in principle they are supportive of nationalizing the banks. again, that poses a big question of how exactly they'regoing to fund this. already gdp is at 100% of gdp. it's going to raise it further and people in the markets have pointed to italian debt as being the next ticking bomb in the eurozone people are looking out for this. >> thank you for that. in the meantime, bring you some breaking news from the b.o.e. they will ask banks to hold an extra 10 billion sterling capital on consumer credit risks because obviously they're concerned about some of the rising unsecured consumer lending received in the economy.
4:38 am
they said it would tell banks by the end of the year how much extra capital they need to hold based on the risk of their individual lending 135.37 this morning. let's get you back to some of the other corporate news we're following you. canyon bridge is buying imagination technologies for 550 billion pounds it's a 42 premium. imagination said it is selling to tallwood venture capital for $65 million in a move which will help the deal avoid unturn at this lufthansa is reportedly set to pay $200 billion for air berlin
4:39 am
assets they're looking to buy the insolvent carrier's assets as reported before, abb is buying general electric's industrial solutions unit for $2.6 billion the swiss engineering company hopes to expand its presence into north america potential costs could be $200 billion a year they are expected to use the proceeds to refund the restructuring effort they're looking to cut costs and unilever has struck a deal to buy a majority steak in cosmetics firm car very korea. it's looking to bolster its position in north asian markets. they bought the steak in carver just last year joompt and disney has threatened to pull its
4:40 am
channels from the optimum cable packages if the two countries cannot agree on fees disney has asked for hundreds of millions of dollars of new fees during contract negotiations for optimum to carries channels like espn and disney. they remain committed to a deal. still coming up on the show, as another round of brexit negotiations kick off in brussels, labor says they are ready to be the grown ups in the room we'll be live from the party conference in brighton right after this short break don't go away.
4:41 am
4:42 am
4:43 am
now throughout the show we haven't talked about president donald trump yet so let's do that he has expanded u.s. travel restrictions adding chad, north korea and venezuela to the list. five other mostly muslim
4:44 am
countries remain on the list president trump tweeted that america will not admit those that enter a country we cannot trust. they're calling it government sanctioned discrimination. and a dispute between president trump and national football league players heated up over the weekend as more american football stars protested trump during the pregame playing of the national anthem nbc's dan schenn nemann has more. >> reporter: today many nfl players took a stand by taking a seat, locking arms during the national anthem. jaguars owner shah heed khan stood and locked arms with his players. some new orleans saints sat on the bench. in chicago the pittsburgh steelers stayed in the locker room but the u.s. army veteran stood at the tunnel with his hands over his heart >> we decided to sit it out, to not take the field, to remove
4:45 am
ourselves from it, to focus on playing it. >> tom brady was one of many players who remained standing. the protest began last year when colin kaepernick refused to stand in protest of the treatment of african-americans president trump weighed in on friday during a rally in alab a alabama. >> wouldn't you love to see one of these nfl owners when somebody disrespects our flag to say get that son of a [ bleep ] off the field right now. out. he's fired fired! >> reporter: before today's kickoff fans had strong feelings. >> president trump was absolutely right when he said that the players should stand for the national anthem. >> i think the sports players, the nfl to nba and major league baseball players are completely validated in their protests. >> reporter: on this nfl sunday what happened before kickoff stoked as much passion as what happened afterwards. uber's u.k. head of cities
4:46 am
fred jones said it is not clear what is concerning regulators in london jones made the comment after they decided not to renew uber's license. the ride handling company is willing to talk to cfl and the city's mayor but tom elvige added dialogue had not happened recently more than 700,000 people have signed a petition urmging them to have the petition overturned. yes, it was a weekend full of politics and also here in the u.k. we had the labor party's conference happening in brighton this is obviously a party, gemma, that has been trying to capitalize on that big resurgence in support after the snap elections how successful are they in keeping that lead? >> reporter: seem to be very successful this is apparently the highest turnout in seven years
4:47 am
part of that is the message they're sending out to resonate with supporters looking at the lives of ordinary working people, what can be done about wage growth, what can be done about other types of income and benefits universal income and a thought that's being debated here quite a lot. apart from all of that talk, it's inescapable the whole topic of brexit and where the party stands on that they've seen quite a lot of criticism that labor party has not clearly enunciated their view they've been sending messages that plays vocally there's a real focus on trying to get them to clarify that. some disappointment last night when it was decided that delegates will not be given a vote which they had been hoping for but nonetheless we expect to be strongly debated. with regards to brexit, what has been clear is that in recent weeks labor party has been edging towards a brexit stump. this has resonated very clearly with the city who has turned out
4:48 am
in droves. the highest business turnout for several years. it's not just because of common ground found on brexit but also because as you mentioned since the general election in june they had such a surprisingly strong showing people have begun to look at labor party as a credible governing alternative there are some that think a snap election may be held in the future jonathan reynolds, we asked him, do you think a snap election is in the cards let's listen in. >> not gaining anything at the minute this could run until 2022, that's possible. i think it could go earlier. a lot depends on the prime minister whether she can survive. they would want probably an earlier election i think the problem is now she can't call a snap election based on the fact that she's having 234i6 brexit deal. she's played that card already they know they can hold those
4:49 am
negotiations hostage it's not good to have three people thinking they can hold it it's embarrassing. there could be an earlier election it's not going up in the government >> not quite ready for election. would you be ready for election? >> yes the campaigns have said we're having to live with that you'll see some announcements this week addressing some quite relevant issues. we are in campaign mode. the people here are ready to go out and campaign again back in the election, some big steps can be taken there in terms of senior minister we're ready for it we want the election we want the chance to put it to the people again >> reporter: carolyn, let me close out by picking up on one
4:50 am
of the points that you made earlier. that's the mood here it is a mood of energy there's a lot of momentum here, not just amongst the grassroots and others that are coming in record numbers the party itself and the leaders of the party, remember a year ago jeremy corbin narrowly survived a no confidence vote. there was a lot of division in the party. we've really seen a lot more support around coalescing around them let me hand it back to you. >> thank you so much for that. staying with brexit. round four of brexit negotiations kirks often today they expect more concrete details from davis may said the u.k. would honor its financial obligations. we were expecting a game-changing moment from that but didn't quite get it.
4:51 am
it leaves us longing for more, doesn't it >> it may leave you longing for more you seem energetic and enthused. a lot of people participating are less so. this is the fourth round of talks. we really need a break through in getting towards a quote, unquote, progress if that progress is made, then of course they will be willing, the european leaders in theory, to move on. that, of course, is a priority for theresa may. she was hoping the speech would restart, reignite and sort of end this amount of stalled talks people are calling them. from what michelle barner said, from what some of the german lawmakers involved in europe have said they're not expecting that based on what she's talked about. it seems that this number crunching is going to be a key point this week, agreeing on the methodology for calculating how
4:52 am
much brittain will owe when it leaves now what's interesting is the comments that they will make sure neither the european companies have to pay more money or receive less money as a result of leaving. that number comes to around 20 billion euros. that's calculated based on it and the rough estimate of how much she says she's willing to pay. you and i were talking now whether that's the same. >> seems like the 20 billion euro, that's simply not going to be enough, the divorce or the pay for the access to the common markets. >> this is the challenge, of course all of it has to be appeared by european leaders she seems to be appealing to them by saying, look, we want to make sure you don't have to pay more money and you get what you are expecting. she has to face her critics. she is essentially being held hostages she can't call a snap election she can't say, you know what,
4:53 am
i'm going to test all of these and i'm going to call another election have it work she doesn't have that many options. she has to try and find a middle ground between apiecing her own party, her own cabinet as well as european. it may be that down the road the europeans are willing according to some people to try and hide some of this money, try and make it less obvious. it may be one day that we never get a final figure. >> it is a pretty difficult task for her. i don't think we should feel sorry. she put herself in that position by calling the snap election it seems like slowly maybe she is sipping from the same hymn sheet. finally she's facing up to reality. yes, there were certain concessions that have to be made. >> that's reality. the europeans have said if opposition is how we're going to negotiate, like it or not, if you don't do it, you won't get
4:54 am
anywhere near -- >> she's accepting that? >> she's having to she's seen it. unless she does what they require of her, she won't get to move on so she has to talk them into saying, no, no, we have our own independence on this. >> that makes you wonder, will she have to make concessions in the future she has conceded we are going to need that. the labor party says it might have to be a four-year transition period. >> all the british civil servants i've talked to have said that at the commission, at parliament and they say, look, they have ten times more experience and manpower. they are being very rigid. we have to move to that position because there's no other way it's going to happen if they want to make the negotiations work, they will have to make more. >> i think from a -- realism is kicking in what were they talking about
4:55 am
some fantasy, imagination. >> creativity, boldness, those are the adjectives. phillip, thank you so much for that really appreciate that. let's recap our top story for you. angela merkel has won a fourth term as chancellor while support for the far right has surged they won 33% of the vote but the results marked the conservative's who and creates a challenge as she tries to build a stable coalition movement given that the task of building that is going stwhoob more difficult. let's show you what the u.s. futures are up to? the s&p 500 up by .62 points friday we had an uninspiring session.
4:56 am
the dow was off by 9 points. the s&p was up by 0.1% not a whole lot to get excited about. that's it for today's show i'm carolyn ross "worldwide exchange" is up next. we'll see you same time, same place tomorrow bye-bye.
4:57 am
4:58 am
4:59 am
5:00 am
. washington in focus. wall street set to digest lots of political news from a new travel ban to a revised health care bill. the nfl versus trump the president calls for a football boycott as more players take a knee during the national anthem. plus, global politics. germany votes to re-elect angela merkel while japan's shinzo abe calls for a snap election. we'll talk market reaction on monday, september 25th, 2017 and "worldwide exchange" begins right now. ♪ ♪

11 Views

info Stream Only

Uploaded by TV Archive on