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tv   Street Signs  CNBC  October 11, 2018 4:00am-5:00am EDT

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. welcome to "street signs." i'm joumanna bercetche >> i'm willem marx these are your headlines european stocks hit 20-month lows in a global rout after major u.s. equities sink and president trump once more attacks the fed. >> i think the fed is making a mistake. they're so tight i think the fed has gone crazy. imf managing director christine lagarde and bank of england governor mark carney say
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jerome powell knows exactly what he's doing >> i wouldn't associate jay powell with craziness, no. no he comes across and members of his board as extremely serious >> he's an individual who really understands the plumbing of the u.s. and global financial systems. that's an incredible advantage for the system at a time that the system is changing >> asian equities fall to 19-month lows with chinese blue chips closing out the worst session since february 2016 as volatility spikes on both sides of the atlantic. and dialog shares are super charged after apple takes a bite out of the chipmaker in a 6$600 million deal good morning there is a lot of volatility going on in the markets.
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that started with the u.s. overnight. just so you know, dow, s&p, nasdaq had the worst day since february, some significant amount of damage going on there with a lot of people expressing concern about the rising interest rate yields this is a theme we've been focused on we've seen the extent of the rout and the extent of the market damage by the end of the session, we saw a rebound in yields risk-off is the theme. that's what we saw in asia with some key indice there's trading as low as 5%, 6% weaker on the session. europe as a whole, down 360 points the heat map is pretty much all red. today is one of the ugliest days we've seen in the market for the good part of the year and since
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that big volatility selloff in february let's get into the individual bourses to get a better look at how it's broken down ftse down about 1.6% in trading. more than 100 points weaker. about to break through that 7,000 mark data in this environment takes a back seat to the technical damage that is going on, the sheer amount of selling on days like this. typically what you see is sectors highly positioned are the ones that get hit the hardest. cac 40, the frefrnch index down about 84 points. ftse mib having a similar beat to the rest of the indices, down 1.6% this is a highly sensitive market a focus for many investors because of budget discussions. it's not being spared the weakness this morning. german index on a day where everything else is down 1.6,
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relatively outperforming, down 1.3%, or 150 points. you would think on a day where trade is front and center of the narrative, that the german index would be underperforming, it is not, which tells me a big part of this move is technical in nature we've been talking about fixed income and what's happening in yield space. i want to turn your attention. every single fixed income market has rallied back overnight because of the sheer amount of selloff in equity stock markets. we have ten-year bunds at 46 basis -- excuse me, 50 basis points ten-year gilts at 1.67 there was a moment yesterday where equities were selling off and bond yields were rising. very we're correlation going on there. speaks of some algorithm and
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risk parity funds dumping longs in bonds and longs in equities we did see somewhat of a respite for fixed income italy is the only fixed income market today that have not recovered. this is a reflection of how people are thinking about the italian market in the next coming weeks let's get into some of the individual sectors here. tech had a bad day yesterday in the u.s. the nasdaq had its worst day since august 2011. the main underperformers were amazon, apple, microsoft f.a.n.g.s as a whole are 18% down from the peaks of earlier this year. this is the picture for european tech names, we have nokia, logitech, those names down 2% with the exception of dialogue
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semicon, there was a deal announced overnight with apple apple will buy a stake there, and we are seeing a positive reaction in the chipmaker this morning. they do make the chips for the batteries that go into the iphone one bit of positive in the broader chipmaker market in europe let's talk about the banks as well another highly sensitive and cyclical sector in europe, you can see the whole suite behind me is red. it's a negative day for the banking sector typically that would be the case, it's sensitive to market sentiment. all of these big names, deutsche bank, bnp paribas, down 2% to 3% banks are clearly a cyclical asset. one would have thought in a year where european economy is doing better that banks would see a lift that has not transpired. banks are one of the worst
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performing sectors in europe this year. today is no different. back across the other side of the atlantic, president trump ratcheted up his criticism of the federal reserve during yesterday's market selloff the central bank raised interest rates three times this year and trump made it clear he does not agree with the decisionmaking. >> i think the fed is making a mistake. they're so tight i think the fed has gone crazy you can say that's a lot of safety, it is a lot of safety and gives you margin, but i think the fed has gone crazy >> geoff cutmore is in bali. i'm sure this is a topic of conversation there did the fed find defenders in bali >> absolutely. there's been a spirited defense here on the ground at this imf world bank event i think there's a couple of issues there's a concern that there may
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be undue political influence the fact that donald trump has gone out of his way to be very critical of the level of interest rates and i thinkthe other point her is about preserving the integrity of central banks and the perception that they are independent. so what we've seen here is a number of central bank governors and, of course, the imf chief herself, christine lagarde weighing into the debate when asked questions about donald trump's remarks. let's play a sequence of sound to you i want to start off with mark carney earlier on in the day i moderated a panel that was mainly about fintech and the direction we're headed in in terms of regulation. i used the opportunity to ask mark carney, the governor of the bank of england whether we should be concerned about the remarks that donald trump made let's hear what he said. >> he's an individual who really
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understands the plumbing of the u.s. and global financial systems. one example is the reforms going under way on libor for which he is one of the sponsors that's an incredible advantage for the system at a time the system is changing to have someone in his position who has that level of technocratic expertise >> he was talking about jay powell there a lot of the responses have focused on jay powell, the individual, as he's been running the federal reserve so far again, it was a similar type of response from christine lagarde, the managing director of the imf when i asked her about this issue of craziness and how she would respond to that. let's hear what she said about jay powell >> i wouldn't associate jay powell with craziness, no.
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no he comes across and members of his board as extremely serious, solid, and certainly keen to base decisions on actual information and decide to communicate that properly. that's what i have observed. >> the astonishing thing is if this was president erdogan in turkey, we would all be throwing our arms up and saying how can you interfere with central bank policymaking and intense apparently it's okay for a former casino operator to weigh in on the operations of the central bank now >> all over the world it's good principle to have independence of the central banks and of the central bank governor. certainly we have advocated that in countries the fed is no exception.
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>> christine lagarde speaking there. it's not the only topic that has been focused on here earlier in the week the imf talked about lower growth path for the global economy they downgraded their expectations, and they also talked about some of the rising risks around financial stability. i think one key point they're discussing here is what happens with the trade, will higher oil prices cause inflation and what is the expectation in terms of emerging market growth rate since we're seeing dollar funding costs go up. i spoke with the head of the world bank, jim yong kim about monetary policy and about how concerned he is about how that may impact growth rates and poverty reduction programs that the bank itself runs let's hear what he said. >> we're watching carefully
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what's happening with the u.s. dollar there are many developing countries that have very high dollar based debt. so what happens to the u.s. currency is extremely important for developing countries especially important in terms of access to the capital markets. you know, as a general rule we believe very much in the importance of independent central banks. so let me just stop there. >> the world bank president just talking about the impact of monetary policy changes on poverty reduction programs something just to flag up for the audience, tomorrow we will be talking to the u.s. treasury secretary, steve mnuchin here in bali we will bring you that interview on tomorrow's programming. i'll wrap it up for the time being and send it back to you guys >> excellent, geoff. look forward to that interview
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to join us and broaden out the discussion more is david riley from blue bay asset management there's a lot to get through today. >> yes >> i want to start off by talking about yesterday's market action the price action, what happened in the stock markets and ensuing damage across all asset classes. president trump has made a lot of waves overnight for inferring that the fed is behaving in a crazy manner by raising interest rates, however he also said this is a correction we've been waiting for for a long time. there is some validity to that statement. >> if you look at the way the s&p had been behaving in recent weeks, where you have seen quite a big rotation from sort of growth stocks into value into more defensives away from cyclicals, at the same time we're seeing more intraday volatility, i have to say that i've been surprised at just how
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resilient the s&p has been against the backdrop of the fed raising rates. there is a gradual tightening of financial conditions also stronger dollar that's going to hurt earnings into the s&p and of course the tensions around trade >> do you think the market was waiting for tangible evidence? this is the beginning of earnings season. we had a couple companies report, already they're citing rising cost pressures, a drop in demand from chinese consumers. do you think investors are waiting to see the first signs of this trade war beginning to bite before saying now we can start worrying about the stock market >> i think that's the case and i think two things have come through on the trade side. one is the market investors were too complacent, particularly in the u.s., positioning was heavy. basically the trade war wasn't going to help them it would help china. now is the realization that there will be a bit of pain. secondly more and more sense that actually the trade war is not necessarily going to be
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temporary, at least between the u.s. and china and could escalate >> before we talk about the trade war, you are a picked income expert. we spent a lot of time analyzing those treasuries when they got to 3.25, it seems like the market started panicking. where do you see ten-year treasuries going from here >> i think they've broken into a higher range i think we'll be range bound we have broken above 3%. i don't se, we do have a u.s. cpi number coming in later today. i think that's the one part of the narrative, if you'd like, around higher rates. we've not really seen the uptick in inflation we've seen an uptick in wages, not inflation. >> back to president trump's criticism of federal reserve policies given the tightness in u.s. labor markets, given the rate of economic growth in the u.s., given productivity levels, does
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the fed have any other option other than the rate path it's on >> no. >> no. it's a straightforward answer, isn't it >> i think it is through time they have signaled they are becoming more data dependent. in that sense they will become more reactive. i don't see them coming off this rate hiking path until the second half of 2019. i think donald trump is really -- president trump is saying i want the fed there. >> let's put this into context, the s&p is still up on the year. it's still up 4% we dropped 3% or so yesterday, but on the year it's up. from a financial conditions perspective, if they're watching asset prices there's not been a
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major rout yet it may have been an ugly day for investors yesterday, but as far as the broader market is concerned we're still in positive territory >> not enough pain for the fed to put the brakes on in terms of hikes. >> david, we'll leave it there for now. we'll come back to you in a few minutes. shares in dialog semiconductor soared after apple agreed to buy a slice of the business for 6$600 million apple will acquire patents, 300 engineers as part of the deal. this confirms apple's strength in europe after european chipmakers were concerned that apple would produce chips in-house. and a san francisco judge said she is considering whether to grant bayer's monsanto unit a retrial. an earlier court decision forced the firm to pay 2$250 million worth of punitive damages to a man who had claimed one of the company's weed killer products
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caused him to develop cancer both parties have until tomorrow to respond to the judge's ruling bayer requested the retrial and issued a statement that says it agrees with this tentative ruling let's take a quick look at how u.s. futures are looking and we'll discuss a lot more when we get back already it looks like it will be an ugly day. another ugly day for u.s. majors more when we come back x1 is here to help.
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welcome back to "street signs" on this very volatile day for equity markets and across all asset classes. the real catalyst was in u.s. equities yesterday with many indices behind me firmly in the red and exhibiting their worst day since february the dow trading around 25,600. that ended 830 points lower on the session yesterday. down more than 3%. this is the first time it's closed below the 50-day moving
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average since july the big underperformers there were boeing and apple. a lot of damage being done there. similar theme for s&p, down about 100 points yesterday in trading. down 3.3%. interesting stat here. two-thirds of the s&p index now, two-thirds of those names in the index are technically in correction territory 142 names are in bear market territory. that's more than 20% down from the highs. those include some big names like intel, facebook, twitter, netflix, oh, those are all tech names. the nasdaq ended the day down 4% weaker, 300 points or so f.a.n.g.s are now 18% down from the peak earlier in the year there's been a lot of technical damage illustrated in this technology sector. a lot of rout being done this is a picture of the s&p
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tech sector yesterday. this is the five-year picture, sorry, still many of these stocks have enjoyed a good rally this year. all of that has begun to change the last couple of weeks one, because of concerns about rising interest rates and two regulatory and further scrutiny going into some of these major names. that was the picture for the broader index. let's get into the individual names i've been talking about. you can see it is really not that pretty out there. netflix down 8.4%. intel down 3.8 twitter down 8.5%. just to reiterate the names in bear market territory, 20% drops from the highs, intel, facebook, twitter, netflix >> that seems to have spilled across to asia where shares closed sharply lower after the
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wall street selloff with the shanghai hitting the lowest level since late 2014. the hang seng was down 3.5%. david riley from blue bay asset management is still with us. one of the big potential reasons why people are nervous at the moment is trade tension between the u.s. and china steve mnuchin meeting with chinese officials this morning it does seem like the two sides are discussing differences, but do you anticipate thanks to the impact from tariffs imposed on both sides that things will essentially get worse before they get better? >> i do think we're more than likely to see escalation in the tensions between the u.s. and china, which i think are broader than trade discussions that colleagues have been having with policymakers and politicians on capitol hill
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is that it's broad based on both sides of the aisle support for taking on china. and that china has been abusing the global trading system, that it has been stealing technology, et cetera. though not everybody supports the way that trump has been pursuing this, we're more likely to get some escalation and steve mnuchin is one of the doves. i'm not sure he's driving -- i'm sure he's not driving the internal discussions i think within the white house the hawks still have the upper hand >> i want to ask what that means for the broader em sector. a lot of focus has been on the strength of the u.s. dollar. recently it's been on the weakness, the deprecating renminbi on the chinese side, whether or not that's a policy response we can discuss, but i'm more interested as the em sector as a whole
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the weakness in currencies is relating to other currencies it started off with argentina, turkey and now we're seeing it almost everywhere. as a fixed income investor are you looking at this saying now is the time to be brave an get back into the em markets or do you strictly stay out? >> i do think that you have to pick your spots within emerging markets. i think more broadly we've seen the ongoing sort of trade ten shup te tensions, and the tightening of external financial conditions. that means weaker currencies, higher local rates i do it think there is value in higher yielding names, some oil exposures, both the major oil companies, petrobras in brazil
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other country selection in nigeria. >> so you're going for hard currency rather than local currency dai david, we'll be back with you shortly. also coming up, we'll have an interview with ubs chairman axel weber stay with us today is the day you're going to get motivated... get stronger... get closer. start listening today to the world's largest selection of audiobooks on audible. and now, get more. for just $14.95 a month, you'll get a credit a month good for any audiobook, plus two audible originals exclusive titles you can't find anywhere else. if you don't like a book, you can exchange it any time, no questions asked. automatically roll your credits over to the next month if you don't use them. with the free audible app, you can listen anytime,
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welcome to "street signs." i'm joumanna bercetche >> i'm willem marx these are your headlines european stocks hit 20-month lows in a global rout after major u.s. equities sink and president trump once more attacks the fed. >> i think the fed is making a mistake. they're so tight i think the fed has gone crazy. imf managing director christine lagarde and bank of england governor mark carney say jerome powell knows exactly what he's doing >> i wouldn't associate jay powell with craziness, no. no
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he comes across and members of his board as extremely serious >> he's an individual who really understands the plumbing of the u.s. and global financial systems. that's an incredible advantage for the system at a time that the system is changing >> asian equities fall to 19-month lows with chinese blue chips closing out the worst session since february 2016 as volatility spikes on both sides of the atlantic. and dialog shares are super charged after apple takes a bite out of the chipmaker in a $600 million deal >> a lot of action in the markets. let's get to the european markets after an ugly session for chinese equities again the picture in europe is not prettier we have all of the major indices
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trading down to the tune of 1%, 1.5% that's the picture for european markets. u.s. futures, we had a bad day for the dow, s&p and the nasdaq. today doesn't look better. dow seen opening up about 300 points lower on the session, this after closing down about 800 points lower yesterday nasdaq also seen opening down about 70 points lower. a lot of technical damage going on there >> one person sanguine about this is jose vinals >> we should not overreact to market movements, even if those market movements are sizable second thing is i wanted to start realizing that some valuations were stretched to begin with and that in a context where
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interest rates are going up and where growth prospects are significantly revised downwards, this will take something off equity markets for the time being i would de-dramatize the situation and remember we have a global economy which is still growing strongly a u.s. economy which is growing strongly the expectation and the forecasts are that both the u.s. economic growth and the global economic growth are going to keep at good rates for this year and next >> so that's the assessment of one european bank chairman geoff cutmore is in bali with another one. no rest for the wicked, jeff >> you're talking about me or are you talking about axe axel weber, willem, because he'll come and have words with
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you if you talk to him about no rest for the wicked. let's talk to the chairman of ubs. thanks for joining us. can i start off, you have a central banking background, here we are discussing donald trump and whether it was inappropriate for him yet again to criticize his own central bank how do you feel about that do you think it has impact at all? >> central banks have a policy that's driven by what is right for the economy and as central banks we had to do that job under the permanent commentary of markets, policymakers, and central banks will do what's right for the economy, in particular the u.s. economy. the u.s. central bank is data driven the mood noise around the policy will not deter them. if you look at the strength of the u.s. economy at the moment their measured rate hikes are the right policy that the u.s. economy needs. inflation is on target
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they don't need to bring inflation down so they can take their time. they can stabilize inflation at the level where it is now. the kind of rate hikes they mapped out for the remainder of the year, one more, maybe three more next year looks roughly right for a former central banker like myself that seems to be on track, in line with how the u.s. economy is moving should there be a soft spot -- and there's quite a risk that the current trade discussion will lead to a soft spot in the u.s. economy in the fourth quarter, maybe going into the first quarter of next year, they will react to that weaker data i don't think they'll necessarily call off the rate hikes, it might have an impact on timing. so i think they'll be data dependent and do what is right for the u.s. economy >> here we are in bali at this imf meeting. we heard the imf and world bank knocking down growth forecasts, raising concerns about financial stability and we had a market
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event overnight with this selloff. that's starting to create this idea that we maybe in the last innings for this bull run. how do you see it? >> when i was in davos the mood in the market was overly optimistic i was one of the few saying the mood in the market is too good to be true the market corrected sizably since the early start of the year in davos. i think when i look at the markets now people are on the other side they are too pessimistic in my view we probably still will have a good year to two years for the global economy the u.s. economy is doing very strongly it's tracking at about 3.5% growth at this moment record employment levels, inflation on target. i think the earnings season will be more muted than maybe in the heydays of financial markets but the market has room to improve. we're still overweight equity. the worst thing you can do now
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is get out of the markets. you should be diversified. you should spread investments. certain market segments like emerging markets are correcting stronger than others so diversification is key of what you need to do, not a selloff. the market is too pessimistic about the short-term outlook medium to longer term the economy is in a fairly good spot i don't think we'll see a recession. we'll see a leveling off of growth we're in the late cycle. it's not going to lead to a major recession. it will lead to side ward movements at worst for the economy. the weaker spot at the moment is the emerging markets >> the emerging market story is fascinating here people reflect back to the greenspan era and we had a market event in the '90s, then greenspan reacted, then people now say okay maybe he fueled the dotcom bubble ultimately later they're asking is jerome powell
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the kind of fed governor who would pause in that rate cycle plan if we get increased external pressure from a drop in demand from emerging markets or as you point out a soft spot in the u.s. growth rates around trade. you feel jay powell would stay in and say, no, we'll miss the fourth quarter hike but we'll reflect and review running into 2019 >> it's a possibility. one of the things you will see is that unlike the fed at the time when groeenspan was there, the fed doesn't need to correct an overshoot of the target they need to stabilize around the target core inflation is lower because we have had an increase in oil prices that is showing headline figures. it will be washed out of headline figures the central bank can afford to take a slower tightening cycle
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than in the past because inflation does not threaten to overshoot target, but it is at target sta stabilizing at target is easier than bringing it back down again. in europe, inflation is not even at har testimontarget even if the u.s. continues to take measured steps towards normalizing monetary policy, monetary policy at the global level is as expansionary as it has been even in the u.s. financial market conditions are expansionary so i'm not concerned that monetary policy will derail the global economy this type of expansion doesn't die of old ge. they basically counter headwinds in the economy once there are headwinds i don't think this is forcing a gail storm. this will be a slowing down of growth momentum in a late cycle. it will not lead to a major kickback for the economy i sigh what markets are pricing
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and these are extreme scenarios that are not mapped in the data. most likely they will not materialize. >> there is a risk of former policy mistake here. we're at that time again where we're anticipating a report from the u.s. treasury. there is pressure on steve mnuchin to cite china as a currency ma lnipulatomanipulato. is there a likelihood of that happening next week and what do you think the ramifications would be on the chinese actually coming to the table on a trade deal >> the real question is is it in the data the u.s. dollar is strong because the u.s. economy is the strongest economy in the developed world. for most developing markets the u.s. economy is much stronger than the european economy. yes, europe is growing but there's major ramifications in europe around brexit that will impact the economy, the italian
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debt saga. there are real reasons why in europe the momentum is lower than in the u.s. if you have such a strong u.s. economy with two more years to run on the back of fiscal stimulus, a tech reduction that is strong and now only showing up in corporate earnings, there's a good reason why the dollar is appreciating on the flip side, china is running into trouble and the chinese central bank is stimulating the economy. for six months now the renminbi has been falling, but it coincides with more expansionary policy and fiscal policy if you look at the two, you have a hard time of making the argument that a weaker renminbi and a stronger dollar is not in line with these fundamentals in my view that is the case. it is in line and the chinese are doing the rightthing the economy this year will
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likely grow at 3.5%. there's a risk it slows down to 6% next year the central bank is using expansionary monetary policy to help credit origination, that means rates will go down monetary conditions will ease and the renminbi will trade down they let the market drive the renminbi more and more, so it's not just a one directional bet anymore. the market will move the renminbi up and down i think it's market forces that do that. i saw the governor of the central bank recently, it's clear he's reacting to the state of the chinese economy rather than doing something to aid at the trade balance. >> 6.3 this year, possibly 6 next year, so a modest slowdown. a final question about how things are at ubs at this point. >> right >> in particular when it comes to confidence and certainty surrounding what customers are
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doing in regards to the trade war story. the uncertainty it's generating. the message here is that we're starting to see business people hold back on decisions to expand capex because they're worried. is that showing up at all in any of the activity with your clients? >> there is a lot of money sitting on the sidelines because of uncertainty when you talk to clients they have an unwavering belief that the u.s. is a place they want to be invested in there's a lot of investment flows going into the u.s. for tax reasons and others you can see that because it's producing some fallout in emerging markets at this point in the cycle with the u.s. economy still strong, that is the kind of thing you see. you also see chinese economy,
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medium to long-term is a bigger part of the global economy we're seeing chinese investments become a real opportunity and desire for our clients so being long china is something you don't find in most portfolios most clients are underinvested in china ubs is a strong player on the equity markets. we're roughly 25% of the northbound traffic on the hong kong/china stock exchange. a lot of clients are increasing exposure because as the economy is at a low point as there is monetary stimulus and fiscal stimulus the future looks brighter so people are pouring china investments in and diversifying. at this point in time you need to be diversified. there is the risk that trade war or other developments might have an impact on the global economy and diversification will help you stabilize portfolios
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staying on the sideline won't help you our clients have a desire to invest, but at the moment they see a huge amount of uncertainty. a lot of uncertainty is policy induced. the best thing for the global economy is for policymakers to be more long-term oriented and stop producing noise that spooks investors. i think investors have been too spooked. i believe the selloff we saw is an overreaction to policy noise, but policy noise is always short-term medium to long-term we have mileage to go. this economy is in a late cycle but not at the end i'm positive for the next year or two >> terrific. lovely to see you. thank you for stopping by. jouman joumanna, back to you in london. >> thanks for that salient points there from axel weber, particularly with respect to the u.s. being the place that most people want to
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be invested. germany's finance minister has lashed out saying rome should be responsible for its own public debt and italy should not outsource problems to other european countries this is the picture for italian stocks red across the board as we've seen with other european equity markets. david riley is still with us in the midst of the dramatics that's happening, italy is the one story that continues to pop up we've been following this closely. willem following the political noises out of there. are you beginning to think that perhaps too much bearishness is priced in at this point? people are coming around to the view that rating agencies will
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be expected to downgrade the credit and therefore it may be a buying opportunity >> i think btb spreads are too wide, and there's scope for them to rally they're trading wide to brazil, the italian credit is. it's getting close to the level of greece. i think italy is better than th that what the market is pricing in is a risk of italian exit in the near-term. so italy exiting the euro. i don't think there's any appetite in italy for that so there's opportunities in italian credit and fixed incomeful. >> political leaders say they will not budge on the budget,
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yet they have made some concessions. do you assume that there will be further alterations to their spending and borrowing plans if we see this continued pressure from financial markets >> i think they will start sending more positive signals. what set the market off wasn't so much the deficit target for 2019 was 2.4% rather than 2% that's giving too much nuance to the spread what it was is that the signaling around that was we don't care about the medium term fiscal and budget outlook. we will take on europe >> fixed income traders took it personally >> yes we don't like that much. and the bond vigilantes woke up and are saying, fine, if you want to -- we just want the path
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and the signaling to be consistent with broadly speaking keeping the debt certainly stable and ideally on a downward path i think that's where they'll end up they have to change the mood music. no sign of that in the near-term. >> we have find a buyer, willem, finally. one exists. coming up, french president emanuel macron delays a cabinet reshuffle over fresh doubts over his leadership more after the break can be relentless. tremfya® is for adults with moderate to severe plaque psoriasis. with tremfya®, you can get clearer. and stay clearer. in fact, most patients who saw 90% clearer skin at 28 weeks stayed clearer through 48 weeks. tremfya® works better than humira® at providing clearer skin, and more patients were symptom free with tremfya®. tremfya® may lower your ability to fight infections
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welcome back emanuel macron seems to have delayed a cabinet reshuffle. it could take place after he returns from armenia on friday the reshuffle is in part because his interior minister resign and challenged mr. macron's authority and his reform program. to talk about this i'm joined by charlotte reid we have a professor live from
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paris and david riley is still here as well charlotte, how have we ended up with this situation? >> it was a public spat with the interior minister. which was surprising because he was always seen as a quiet, placid presence in the government for mr. macron. one of the first supporters of macron's presidential run. so the public spat came as mr. macron is trying to reboot his presidency he had gone and said i will change my methods, i will observe, listen and hear the french public. now this reshuffle has been delayed. it was expected monday, then tuesday, then wednesday. then mr. macron traveled now it might happen tomorrow that gives a bit of an impression of chaos at the top >> thank you bruno, you're in paris how have the french press been reacting and how has the french public been reacting to mr. macron's missteps over the last
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few days and months? >> the situation is tricky you can see the popularity of emanuel macron went down over the last month so the popularity was rich at some stage, but his popularity has been damaged quite a lot already, long before the reshuffle started. it started, i would say, six months ago maybe eight months ago. and all the different affairs, also the feeling by many french that emanuel macron has lost the path where do we go exactly we've seen an amazing agenda of reform and the french have lost a bit the direction where exactly emanuel macron wants france to go that's the big question that the french are asking now to emanuel macron >> bruno, looking at his
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domestic approval ratings, he has 66% disapproval rating as far as domestics are concern i want to ask about his broader european risk perception he had huge plans for europe and further integration within europe that has not managed to be delivered. how do you think the outside world are perceiving the president at this point in time given these big promises he has yet to deliver on. >> i think for the outside, for the other eu leaders, there is probably a question mark about emanuel macron we've seen in the beginning of his presidency such big ambitions for the european level. but at the same time many leaders now are probably saying let's weight let's see how emanuel macron is going to cut at the time of the european election, if the movement of emanuel macron doesn't win the election in france, probably that will stop
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the big ambition of emanuel macron towards reforming the eu. i would say many leaders, particularly the germans are probably waiting to see what's happening in france with emanuel macron and if emanuel macron can reboot his popularity. >> we'll keep a close eye on how this unfolds thank you very much. we have to thank also david riley who joined us for a full hour on "street signs" today and charlotte for bringing us the latest our coverage of the imf world bank in bali continues tomorrow catch an interview with steve ucmnhin at 12:00 cet thank you very much for watching to make sure that we get there safely, and that we leave that scene safely and go home at night, is train. and we train all the time in the fire service. no matter how much we train, the last thing you want in a disaster is to lose communications. without communications,
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. this is cnbc breaking news, market selloff stocks slammed as a major wall street selloff goes global. it's a sea of red now from asia to europe to here right here in the u.s. front and center as we gear up for a new trading day, what should you be doing right now and more importantly is your money actually safe? we'll get answers to all of those important questions. it is thursday, october 11, 2018 this special selloff edition of "worldwide exchange" begins

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