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tv   Street Signs  CNBC  October 26, 2017 4:00am-5:00am EDT

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. hello. welcome to "street signs." i'm carolin roth these are your headlines. investment banking blues, barclays and deutsche bank shrink as investors steal frfeew volatility. a rally for sd micro electronics as they raise gin for the full year. nokia shares are set for their worst day in five years after the finnish company posts weaker than expected net profits
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and warns of further market declines next year. and ab imbef shar bshgb ind. good morning it's thursday, ecb day, the all-important day when we're hearing about the ecb's plans for tapering we have one other central bank that's come out with a report. not just the riksbank, but also the norges bank. i want to show you what's happening to the european markets. this is how we're looking. we're probably unchanged we can bring up the heat map there you go inching slightly to the upside dominated by earnings today.
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banks especially they're the biggest faller on the sector al basis let's show you how we're shaping up for the trading day these are the indices. we're pretty much all in the green, only with marginal increases to the upside. the ftse 100 up by 0.25% the xetra dax up by 0.2% still some caution ahead of that ecb meeting and no major positioning or risk taking in the markets. i mentioned the banks, they are underperforming. let's get to the biggest fallers when it comes to sector basis. banks, one of them to the down side on the upside, household goods and basic resources doing better. back to the banking sector shares in deutsche bank are down in early trading after the flagship german lender saw revenues fall as it undergoes
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restructuring and deals with a challenging market revenues up, bonds and currency market dropped amid decreased activity deutsche bank shaw third quarter net profit rise to 649 million euros. do stay tuned, we'll hear from the cfo on "street signs" at 10:45 cet. shares in barclays are among the worst performing in the stoxx 600 today after a weak performance in its investment banking division third quarter profits were well below expectations jes staley blamed the lackluster performance on low volumes santander reported a 14% drop in the fourth quarter citing restructuring costs excluding these costs, underlying profit was up 17%, boosted by solid performance in
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brazil santander also received a capital ratio topping 10%. sticking with the banking sector, cnbc has an exclusive interview with bank of america's chairman and ceo, brian moynihan happening at 6:00 cet today. let's come back to our top story. the euro climbed to a six-day high fueled by expectations that the ecb will lay out its plan to taper qe today the consensus forecast is for the bank to reduce its asset purchase program to 30 billion euros a month from 60 billion and extend it for nine months through september of next year ahead of that decision, let's look at yields bunds opened slightly weaker, but not too much of a change when it comes to the yield picture. german bund yields at 48 basis points will they make a run for 50? that's the key question. annette is in frankfurt and can tell us what to expect from the
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ecb meeting today. it will definitely be a balancing act for mario draghi >> yes, it will be definitely a balancing act for mario draghi what he does not want is a tightening of financial conditions and perhaps a rise in interest rates on the market, because that would dampen financial conditions in the eurozone for what to expect, i'm joined by the managing partner. let's talk about your expectations for today's meeting. >> i think the ecb will enter into more gradual tightening they will try to avoid the tapering that's been something draghi has been afraid of given that he's not exactly convinced that the economic recovery is sustained, and he will be, you know, quite a bit reluctant to call it a taper. >> what do you think we'll hear in terms of run rate per month
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and also length when it comes to the extension of the program >> i think it will be more gradual. probably from 60 billion a month current time to 40 billion, 30 billion for an additional year so an extended period of quantitative easing son te inin card. we see the euro appreciating ahead of the meeting why is that. >> i think it's because of the economic recovery. it's been holding back a little bit because of the political environment, namely the situation facing in spain. however, i don't think the ecb is completely separate the fed is on tightening track, and also bank of england is set to increase rates. so, ecb sooner or later will follow that path
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>> which markets do you think will be affected by the trading decision today >> my personal opinion is corporates don't need corporate bond buying. they have access to plenty of cash and therefore there's no need for the ecb to buy stuff. if there is tightening it, will be towards government bonds. i think corporate bonds will be less affected. >> we see some moves in the bund, so the german government bond market. do you think we'll see gradual tightening here? >> i think so. the ten-year bunds are trading around 50 basis points there were three attempts to try to see it break through the 50 basis points this time there's a move in excess of 50 basis points for some time. however, by historical matters,
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this is low yields, that would reflect still an economic situation which is worse than i can see. >> if you had a question to mr. draghi what would be your question >> my question would be what does it take to remove this flooding of markets with money >> let's look at the potential scarcity issue the ecb says they don't see it and they're not acting because of scarcity. what's your opinion for 2018 there are numbers floating that there's 250 to 300 billion euro in bonds available >> that's the problem. i think it's not getting better. also germany is the most active buyer of the government bonds, and of course, you know, there is significant new issuance going ahead. but less so than many anticipated. so the scarcity of assets to buy will drive to a certain extent
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and force the hands of mr. draghi >> do you expect market moving elements out of the qe session today -- q&a, i should say >> i think so. i would expect, you know, there's a tendency of mr. draghi to kind of overpower and always try to smooth down the capital markets. therefore i think he'll be very afraid and reluctant to increase uncertainty. but i still think that a tapering, whether you call it or not, will still weigh on markets. >> so, to sum it up, you think wi shou we should be prepared for a dovish surprise? >> i think more dovish than most analysts expect. it's the start of a reverse in monetary policy. >> thank you very much >> thank you >> with that, i'm sending it back over to you we'll bring you an interview with the cfo of deutsche bank.
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i think that's in a half hour's time, quarter to 10:00 local time >> very busy day for you, annette in frankfurt >> we will also bring you the ecb decision and mario draghi's press conference live in our special at 13:30 cet i will host along with joumanna bercetche. in other central bank news, the riksbank held interest rates steady at high now 0.5%, adding that it does not expect to raise rates until the middle of next year they are prepared to implement further easing if necessary and that the purchase of government bond also continue until year-end in norway, there was an interest rate decision and not an exciting one. the gonorges bankleft the rate
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unchanged at 0.5, saying it was unanimous. all right. do e-mail the show let us know your guesses for what the taper will look like. nine months at 30 billion, whatever it will be. send in your guesses the address is streetsignseurope@cnbc.com find us on twitter, streetsignseurope@cnbc and tweet me at @carolincnbc we'll go for a quick break coming up on the show, we'll be live from riyadh where the founder and cfo of thrive global, arianna huffington will join us live for a first on cnbc hi, i'm the internet! you know what's difficult?
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welcome back saudi arabia is open for business well, that's the message from the country's finance minister as the oil-rich state presented its plans for economic reforms in front of an audience of big-name investors it includes an expansion of its
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sovereign wealth fund to 4$400 billion by 2020 and transforming into a high-tech business hub. three women engineers are suing uber for gender discrimination they say the compensation and workplace practices discriminate against women and people of color. the women claim this has resulted in them missing out on promotions and benefits. uber did not comment on the lawsuit. hadley is in riyadh where saudi leaders pledged to shed the kingdom's ultimate conservative image and deliver more opportunities for women hadley, take it away good morning i'm joined by the ceo and founder of thrive, air ran thria huffington people are wondering if softbank will demand a discount in terms of what they do next with uber,
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can you tell us about the timeline of the deal and when it will happen. >> we don't know yet masa son is hear, dara is here, the ceo of uber. there are ongoing conversations. i'm sure you will be hearing as soon as we hear at the board level. in terms of management style changing, you're right we recognized based on the data we collected, that the delusion that you need to burn out in order to succeed is incredibly costly to businesses because it affects healthcare costs, it affects productivity and engagement, retention and recruitment. more and more companies now, including here, we talked to a lot of executives at aramco, they are looking at how can they invest in the human capital as much as they're investing around
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technologies and automation and the future because the future of work is going to involve putting human beings at the center and recognizing that otherwise you' you're going to have a lot of disengaged, unproductive employees. even with all the incredible advances of technology, the most creative part of work is going to be left to human beings >> when we talk about those management structures, how badly was uber hurt with what we saw over the last several weeks inoo >> what's interesting is uber has kept growing through all the problems of the past six months. now with dara khosrowshahi, the new ceo in place, uber has already been making a lot of changes, both internally around
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culture, processes, training managers and externally in terms of relationships with drivers, riders so all of us at the board are optimistic about the future, all our riders, 65 million of them really love the product. and we want to make sure they love the brand and company as well >> you're not concerned that the -- basically the thoughts of these consumers surrounding what's happened at uber are going to impact your bottom line >> well, it hasn't happened. we had incredible results. growing in multiple cities had 5 billion rides. so clearly all the changes that have happened in the last few months have made it very clear to riders that we're serious
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about change, that we have accepted a lot of the mistakes of the past, and that all the work being done at the human resources level, at the management training level, they have made that very clear that the transformation is happening. >> you don't think this is going to affect your overall valuation? >> no. >> when you look at what's happening in saudi arabia in particular, you were on the board of uber with the head of the public investment fund and also the head of softbank, so many big names coming to this country, so much opportunity where do you see opportunity for thrive global? >> masa is not on the board of uber, they made a 3$3.5 billion investment in uber at the last
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valuation. but you had the opportunity to get very close with him. >> i think yasser has been incredible on the board and what he has built here, what he created with this conference has sent a powerful message that saudi is transforming. a lot of people who came from around the world are really serious about investing in the region very optimistic about the future including a lot of women entrepreneurs have been really excited to meet them here, and to see how they feel that the change, is that are happening are going to change their opportunities in the region. >> what we've seen over the last couple of months in terms of the big scandal in hollywood over harvey weinstein, you said over the last couple of days that saudi arabia has a moment in history here to avoid the mistakes that so many western companies have in terms of this corporate culture, changing the
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corporate culture and the corporate dynamic. are we at a watershed moment >> that's what we're working on with thrive global you asked earlier what we're doing. we believe when companies avoid the mistakes of so many western companies around burnout, around employees being always on, which leads to mistakes, which leads to loss of productivity, terrible health outcomes, et cetera, saudi arabia has the opportunity to avoid those mistakes at thrive global, we work with companies around the world to help them create thriving cultures where they can actually work on this connection between the well-being of employees and their performance. the two things are intimately tied together. while for decades in the west we thought that there was a tradeoff between them. you had to sacrifice one for the
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sake of the other. now with all the data that shows this is not the case they have an opportunity here to invest in human capital at the same time they're investing in other technologies of the future >> given what you've seen as a member of the board of uber, but also in terms of your work with the huffington post, do you think there's going to be more revelations like we've seen with harvey weinstein coming down the pike >> obviously a lot it coming into the light right now we're living through this period especially because of social media it's hard for companies and ceos to hide behind amazing advertising and public relations teams now whatever needs to come out into the light will come out into the light but that's not bad >> when you talk about not just
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the entertainment industry, the finance industry, big business, this is not just something that happens in hollywood, is it? >> absolutely. this has been very much across the board. it's just that for decades it was kept in the shadows. and now that's changing, which is becoming a catalyst for dramatic changes >> you said no more intelligent or brilliant jerks >> no more brilliant jerks there's been the cult of top performer, whoever was delivering results, they're allowed to get away with a lot of bad behavior. and i think there's no tolerance for that now >> arianna huffington, ceo of thrive global, thank you very much for joining us. carolin, back to you. andrew ross sorkin caught up with softbank's ceo, masa son and asked him what future of
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vehicle automation looks like. >> the usage of the vehicle is going to change. it was a premise that everybody has to own the car no we get rides on taxi, bus, train. to it just is extending with the power of internet a little more convenient, then later on, autonomous driving is going to happen >> final question, 2050, are robots going to be better investors than you >> in many of the subjects compared to the index and so on, they will be definitely smarter than us. however if you have to envision ten years, 30 years later some -- at least some human
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listen have a better imagination than them. so it's not the end. the power of brain has no limit. the imagination that we can have has no limit so we are also going to improve our imagination and our feeling, gut feeling. if you watch the "star wars" movie, don't just look at what you can see. listen to the force. let's come back to corporate earnings we had a whole lot of them this morning. munich re saying the impact of hurricane season in the u.s. will cost it 2.7 billion euros the insurer said it expects a third quarter loss of 1.4 billion euros. it does expect to generate a small profit for the full-year,
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shares up nicely to the tune of 2% in german trading. staying in germany, bayer shares are under pressure after the company posted third quarter earnings which fell short of expectations shares off 3.4%. weakness in the german pharma'sh top line. and b posting beats on the top and bottom lines the ceo said the industrial has also benefits from investment in robotics in china. >> china is the largest growth market in '16, '17, and probably '18. abb is number one in china our long-term investment that we started more than a decade ago in china is paying off we're fully iized in r&d.
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it's becoming a key hub in our activities >> still coming up on shot, republican infighting is threatening a vote on budget plans seen as crucial to president trump's tax cuts plenty more from washington after this short break i just saved thousands on my loan at lendingtree.com. in less than a minute, i found out how much home i can afford. i like how you shop for loans the same way you shop for flights online. i didn't realize at lendingtree you can save money on almost any sort of loan.
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new always discreet boutique. hello. welcome back to "street signs. i'm carolin roth these are your headlines investment banking blues, barclays and deutsche bank shrink as revenues feel the pressure from volatility we speak to the ceo on "street signs" in a few minutes. a rally for sd micro electronics after they beat earnings expectations and raises guidance for the full year. nokia shares are set for their worst day in five years after the finnish company posted
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weaker than expected network profits and warns of further market declines next year. and ab inbev shares sink as the brewer reports a drop in volumes in its key brazilian market even while merger cost savings improve. good morning it is thursday, not just any thursday, it's ecb thursday. if you're just tuning in, let's show you what u.s. futures are up to. the picture is looking friendly. the dow jones seen up by 29 points after yesterday's sharp fall we were down by 112 points u.s. stocks having their worst day in two months yesterday. this is mainly because we had some weaker than expected corporate earnings boeing being the main culprit. there were also concerns about bond yields rising and that dampened sentiment for stocks. the s&p 500 een up seen up by 3.
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the nasdaq up by 11 points we're looking at a fairly bright picture for the european markets. the xetra dax is up by 0.2%. cac 40 rising by 0.3%. and we're also very much driven by what's happening on the earnings front today we'll get to that in a minute. i do want to tell you banks are underperforming today given the drag coming from barclays and deutsche bank. when it comes to the fx market, euro/dollar trading close to a one week high, 1.1814. we are waiting for that ecb meeting and that will fire the starting gun on tapering the big question is what will the composition be like and the duration be and what will forward guidance look like as well quick look at the dollar against the japanese yen unchanged as well. so at 113.69 the dollar taking maybe a little
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bit of a breather that recent rally yesterday. it was still supported by ten-year yields rising to a seven month high, but they've come down in trading speaking of yields, this is the picture i want to show you where the ten-year treasury yield is trading at we have it at 2.4281%. little move when it comes to bund prices and bund yields. we're at 47.9 basis points so very close to the 50 level. we'll see whether we can hit that on today's session. let's get back to the u.s. a vote in the u.s. house of representatives later today on a budget plan is set to close after some republicans vowed to oppose it in a bid to protect a popular tax break. the budget plan is seen as crucial to president trump's proposed tax cuts. the infighting in the republican party comes a day after the president declared that there was great unity in the party tracie potts is live for us in washington great unity, doesn't quite look
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like it, does it >> well, there are at least two republican senators who have been outspokenly critical of president trump. his take on this is that other than those two, it's, as he put t a lo it, a love fest going on others are now saying they're talking about things openly that have been discussed in private for a while. the big question is do the private concerns about president trump, concerns about his character, about how he's relating people here on the hill, do they translate into votes? maybe, maybe not we don't know. what's happening today, the house is expected to vote on this budget passed by the senate that leaves open 1$1.5 trillion for a tax cut. so two separate things the budget has to pass if it passes the house it can go to the president's desk for signature. next week, we start to get details of this tax plan that republicans are trying to put forth. not a lot of information out on
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it yet but the president tweeted that 401(k) retirement accounts are safe people wouldn't have to worry about them they would not be touched. however he now says that they may be up for negotiation. one of the things they're looking at is the idea of lowering tax-free contributions and the tax income that would come in for that could balance and pay for this tax cut >> i fwes there's soguess theree republicans who are not even interested in a compromise for the benefit of the american people because they have so much personal aversion to donald trump. do you think much of that is playing into what the tax bill will look like >> well, it could. don't forget democrats some of their votes may be needed democrats are saying if they don't have input on the tax bill, they're not going to vote on it. a lot of different moving parts here next week is when we'll actually for the first time expect to see the actual language, so we can see what republicans are
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proposal >> thank you very much for that. nike expects earnings per share to grow in the mid teens over the next five years boosted by digital revenues. online sales are expected to grow from 15% to 30% over that period speaking to cnbc, nike ceo mark parker pinpointed china as a major growth market. >> obviously china is a critical market, it's a big part of that growth potential we also see that in asia pacific, latin america, of course europe. china is the biggest if you look at the target population in china for nike, it's moving towards ten times that of what it is in the united states the appetite for nike is strong. it's a digitally based partner
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>> we just looked a the a chart of the china sales, which are still a bright spot within your report but they have slowed we're not seeing the 30% growth that we saw several quarters ago. can you get to that point or is it the size of the business that's not allowing that >> as we look long-term, our prognosis notice for growth in china is quite bullish we feel strongly about not only where we are in terms of the brand but in terms of the product. the connections we're making with the consumers throughout china. the other thing, the back drop factor there is that the population is a lot more active. we see 400 million people in china that are active at least
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a week and that's growing. comments from the saudi crown prince he says saudi aramco will be listed in 2018, details are under discussions. there's been back and forth on whether this ipo is on track and where it will be listed. he said the valuation could be more than $2 trillion, and that saudi aramco will prove itself on the ground. he also commented on the current state of the oil market saying that the kingdom is committed to work with all oil producers to balance the oil market supply and demand he says the oil market is absorbing excess shale, and we are gaining things again so quite an optimistic view from the saudi crown prince brent crude at 58.32, wti at 52.13. let's get back to earnings
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boeing raising its outlook for full-year earnings and cash guidance for the second time in six months it was not all good news for the aerospace and defense group as it also announced a further 3$39 million in charges on its kc 46 military tanker aircraft program. phil lebeau la the details >> reporter: strong execution from boeing helped the company beat the street on the top and bottom line for the third quarter with earning 20$2.72 a share. revenue of 24$24.3 billion. on the excuse front, the operating margin of 9.8% fueled in part because of record commercial deliveries. operating cash flow of 3.4 billion and free cash flow of 3 billion, both better than expected here's boeing ceo dennis muhlenberg on the company's performance heading into the
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fourth quarter >> airlines continue to report solid profit and traffic growth of 8% through august also cargo traffic is experiencing a healthy recovery with 10% freight traffic growth over the first eight months of the year >> boeing raising its full-year earnings guidance by a dime to $9.90 and 10.10 per share for the year that increase is die to a lower than expected tax rate the analyst expectation heading into today was for a full-year earnings of $10.06 phil lebeau, cnbc business news, chicago. we are going go for a quick break. still coming up, deutsche bank shares are under pressure after its investment banking division posted a double digit revenue decline in the third quarter we'll delve into the results with the company's cfo after this break for your heart...
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nokia shares are slumping after the finnish company posted
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weaker than expected quarterly earnings network sales fell 9%. operating profit dropped 23% nokia said the gear market has become a lot more challenging and warned of further weaknesses next year. shares off by almost 14% shares in sc micro hit their highest level in 13 years after the chipmaker posted better than expected third quarter earnings and raised its guidance for the final quarter of 2017. strong performance from its internet of things, smartphone, industrial and automotive segments saw sales increase by 19% year-on-year to 2$2.1 billion. shares up by 5.3%. shares in ab imbef are tra bshb lower after the company reported a decline in third quarter volumes. the largest beermaker increased its cost savings target and saw profit s rise in brazil for the
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first time in two years. shares in deutsche bank are down in early trade after the flagship german lender saw revenues fall after it undergoes restructuring and dealing with a challenging market shares off by 2.2% the only thing that missed was revenues everything else beat still investors did not look past the difficult environment that we saw for the bank in the third quarter. annette spoke to the cfo, james von moltke and asked when revenues would pick up >> the capital markets environment has been weak the last several quarters. we look for that to pick up. it depends on events and investor engagement. until that time we need to manage costs carefully you see declines in adjusted cost base, but also significant declines in total expenses reflecting reductions in severance and litigation costs >> let's look at investment
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banking revenues compared to wall street banks, there was really astonishing weak with the drop in 60% in equity revenues, and i think even more when it comes to fixed income why is that? why are the others so much stronger >> fixed income markets, we performed in line with our peers. revenue performance was down 24%. if you take the same segment take as our peers have, which is fixed income sales and trading and the financial segment, so 24% reflects the market environment we're in in equities, you're correct, we had a weaker quarter than some of our peers that reflects the idiosyncratic environment we found ourselves in, particularly in prime finance which has been a lagging indicator as we rebuild margins. we think we're seeing progress there. that leads to some confidence about the future >> the weakness in corporate
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finance or advisory fees, is that also because of the lack of confidence from the -- the blow to the business last year or another reason for that? >> we see that also as a lagging. those are two businesses where the lacking indicator is what we would see. in origination and advisory, that reflects mandates awarded in the fourth quarter of last year that went to negotiation, signing and closing. the fee event is on the closing. we're seeing that weakness we would expect to see. some leading indicators give us more confidence about the future for example, our announced m&a backlog, if you'd like, deals that we represented clients on that are now announced is up 20% versus last year that creates then revenues in future quarters. >> that sounds promising let's look at the ecb withdrawing monetary stimulus. i think you're saying you're
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positively exposed to a rise in interest rates that's somewhere in the future would you also feel positive impact from a withdrawal of the monetary stimulus? >> so, two parts to that question first the interest rates and how it impacts our business. in our retail and commercial businesses what you see is a headwind from interest rates as old interest rate hedges, fall off we have an ongoing head wind, th that will turn at some point where we see successes is the ability of our businesses to offset that revenue impact with fee and commission income. so we're pleased with that performance. at some point that will turn a corner and we'll see growth. the stimulus is a much more complicated question it depends on how successfully the central banks remove the stimulus as you see in the u.s the u.s. federal reserve has been successful in signaling to the market how it is they'll remove that stimulus
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that still is to come in the ecb. so there's uncertainty as to how that will play out that uncertainty could help our businesses, because again we're talking about volatility being low in the market. that's been a damper on revenues let's get out to annette standing by in frankfurt one issue that usually pops up with deutsche bank is, unfortunately, still litigation. overnight they settled another case with the u.s. of 250 million. that's small compared to the big one two years ago. where do we stand on litigation when it comes to deutsche bank we have multiple cases outstanding. but is there light at the end of the tunnel, if you will? >> yeah. i think there's light at the end of the tunnel. one phrase in the statement today on the letter to share holders from john cryan is saying out of those 20 big litigation cases he inherited, or which was there at beginning
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of 2016, they have solved more than 13. so another 7 are outstanding i think they're making good progress when it comes to getting rid of the litigation problem that the bank is having. of course it's not over yet. one big case, the settlement with russia is still outstanding. having said that, i would say, yes, that's a big problem for the bank another bigger problem is the revenue line other banks are hit as well, but not as bad as deutsche bank. there's also pointing criticism that john cryan may not be the right person to revive revenue at the bank. especially within the investment bank that's what i'm hearing from analysts his character is humble. he's not as flamboyant as other guys on wall street. this might ab problbe a problemg forward. look at the share price where
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they are they have not budged a lot when it comes to price development. so john cryan will face a tough time next year in case the share price has not recovered until the agm in may of 2018 having said that the bottom line is the positive sides is that they have done a good job when it comes to cost reduction that was a huge problem with the bank for all these years none of these ceos managed to reduce costs at the investment bank they had always cost income ratios far higher than the competition. that's a positive they managed to cut them now. >> annette, i want to come back to the speculation about the future of john cryan and who will be sitting at the helm of the company. is there a viable alternative now to john cryan? we know that he's in the middle
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of this restructuring drive. would it make sense to remove him from that position, even though the company, yes, it is struggling when it comes to some league tables, would it be rise to disrupt him in that restructuring drive? >> i personally would say no he's actually the first one who really restructures the bank and cuts costs ever since i've been covering that bank and that's been many years. you have to give him credit for some years going forward he just said in an interview he wants to stay on for another three years to get -- to fulfill his mandate and get the job done in that letter to shareholders i was referring to earlier, which is posted on deutsche bank's ho home page, he also said that never promised that restructuring deutsche bank, a huge bank, will not take quarters, it will take years in order to really restructure the bank, to put them on a solid footing, also for the future
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of course there are problems the bank cannot solveitself. that is the low volatility in the market, and that is most likely also induced by the ultra loss monetary policy stance by so many central banks, especially the ecb one can also argue once they are starting to exit their ultra loose monetary policy stance that could make life a bit easier for the banks back to you. >> thank you very much for that analysis appreciate that. thank you for bringing that interview with the cfo. breaking news from the cloud software company, s.a.p., it's making sweeping changes to sale practices in countries around the world after the company revealed its the subject of a u.s. corruption probe tied to business dealings in south africa, relating to the guptill family and it is said to be an ongoing
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investigation into corrupt sales practices related to south african government practices, and that led it to take disciplinary actions against three top managers. kobe steel which has been accused of fabricating product quality data said today an external investigation found some of its products breached industrial standards makiko utsuda has more >> yes the scandal faced by japan's third largest steel maker has continued to grow since the firm confirmed falsifying data earlier this month data for its core steel products were found to be fraudulent and today the kobe steel ceo held a press conference and confirmed an investigation by japan quality assurance organization had found that products made at the plant near tokyo did not meet industrial standards set
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under national law they have lost certification and the move could hurt kobe's business further as some customers are looking to switch orders to other steelmakers. kobe steel had been told by the japanese industry ministry to disclose the results of safety checks by thursday so far 525 customers had received products whose data had been tampered with, and over 400 confirmed there was no safety risk at the moment due to kobe's products kobe steel said it will set up an external investigation committee to conduct a thorough outside probe. that's all from the nikkei, back to you before we wrap up the show, let's recap how some of europe's biggest banks are trading after reporting earnings we heard from deutsche bank before, shares are down there. shares in barclays are down, among the worst performing stocks in the stoxx 600 after a weak performance in its investment banking division. this impacted the third quarter
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pretax profits which were well below expectations at 1.1 billion pounds jeff staley blamed the lackluster performance on low volumes and muted volatility santander in spain reported a 14% drop in net profit in the third quarter citing restructuring costs. underlying profit was up 17% boosted by solid performance in brazil quick look at u.s. futures last time we checked they were looking quite bright there you go the dow jones seen up by 17 or 18 points after yesterday's big drop that's it for today's show i'm carolin roth "worldwide exchange" is up next. tune in to decision time at 12:30. my "business" was going nowhere... so i built this kickin' new website with godaddy. building a website in under an hour is easy! 68% of people... ...who have built their website using gocentral, did it in...
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earnings, earnings, earnings, that's the key word today as we await a flood of corporate results. big tech in focus. alphabet, amazon, intel and microsoft all among the major companies reporting results today. we'll tell you what to look for. and we're serving up an order of beer and wings for breakfast. it's thursday, october 26, 2017, "worldwide exchange" begins right now. ♪

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