tv Street Signs CNBC October 11, 2016 4:00am-5:01am EDT
good morning, everybody. welcome to "street signs". i'm louisa bojesen. >> i'm carolin roth. these are your headlines. >> european markets mixed this morning. the ftse 100 out performing once again as sterling falls back to close to an eight year low. >> champagne and perfume raise sales. switch off your phones. samsung stops the sale of galaxy note 7 with multiple media reports suggesting the halt could be permanent sending shares sharply lower.
going against the flow. one of russia's top oil bosses says no to a deal. the real works starts now. that's the iaea's decision on peck's decision to cut production. t they need to iron out the agreement on november 30th in vienna. although inventories are starting to decline the market may remain over supplied through the first half of next year. however if opec six to its new target rebalancing could be achieved faster it said. let's have a quick look at brent prices. 53.03. w trch ircti 51.31.
iaea echoing what goldman saying little chance of the oil market rebounding in 2017 because of higher production from nigeria and iraq. one year highs after putin said yes we're going to cut production too. >> we've got steve coming up on the show. he has some interviews for us as well. how much rebalancing is need and who is to blame then for not looking towards iran to be the ones to cut. does it matter if the big guys cut if the smaller guys don't. more to come on that front. we'll be discussing a lot more. glancing at our european equity markets we're flat as you can see. very flat this morning. and by and large when look at the sectors that's what you're seeing as well. our main european boards also indicating this flattish picture is due to this slight slump we're seeing in sterling once
again. let's glance at the sectors. here a lot of people still focusing on banks but also technology with this recall, the samsung recall, the ramifications of that we'll be talking about that. >> this is our top story. samsung is likely to permanent halt sales of galaxy note 7 according to several media reports. china's quality watchdog said samsung china plans to recall nearly 191,000 new phones sold on the mainland according to reuters. samsung shares came under heavy selling pressure after the korean conglomerate said it would halt sales. >> reporter: a global halt on sales of the note 7 phones. more user reports of replacemen phones catching on fire surfaced in korea, u.s. and taiwan and followin these reports samsung has asked consumers with either an original galaxy note 7 or
replacement galaxy note 7 device to turn off their phones and stop using the device. this morning korea's consumer safety administration has also come out with an official statement confirming a new defect in the new replacement note 7 phones that was not found in previous investigations. along with these findings administration has asked use towers stop using the note 7 and that new sales in korea should be stopped. privately the u.s. federal aviation administration had asked passengers to power down and not use or charge or stow any samsung galaxy note 7 devices. samsung asked all carriers and retailers to stop sales and exchanges but samsung has not confirmed if this means the note 7 sales will permanently be stopped or if they have found the actual cause of the fires in the new replacement phones. that's the latest that we have on the samsung note 7 situation
out of seoul. >> let's get out to global head of tmt research. neil thanks so much for joining us. is it fair to say we're looking at the worst case scenario for samsung where it will have to write off the entire galaxy note 7 line or is there any way they can still salvage this? >> good morning. i think it depends on what you describe as worse case scenario. in many respects, with regards to the note 7, the worse case situation would be that potentially the product line will be finished. they won't be able to restart production and suddenly there's an issue here with regards to what about a third iteration that comes into the market. there's implications for the company on a number of issues. firstly the financial implication. and the financial impact, if you think roughly 2.5 million phones
were shipped originally in the first recall, most estimates we suspect around 4.5 million of the note 7 were expected in the key critical q4 selling season as well. so we're talking 7 million units. the financial costs, if you think we probably estimate $300 material per device. so $2.1 million write off has to be reflected. the other issue is it's essential for samsung to limit reputational risk and not affect other products. samsung, for the note is say 4.5 million estimates for this inquiry before this issue. if we go back to q2 samsung has h the number one global share. they had 22% of that market. they shipped 77 million smartphones in q2.
so its essential for samsung to limit. >> thank you so much for walking us through the numbers. you talk about the knock on effects. what's the risk that android users will simply turn over to the apple operating system, the ios system where credit suisse points out loyalty rates are 95%. >> sure. i think, again, it raises a couple of questions and one of those will be the income in the west we think could be a slight advantage to apple given the issue that samsung faces but also i think we're perhaps risk of ignoring the greater threat which if you look to the chinese industry growing their market share aggressively. they could be the biggest gainers from this. allway looks to be number one in
smartphones. it's the chinese vendors that will benefit the most. yet there's potential for apple to enjoy a better competitive position in the western markets. >> neil, good morning. i'm trying to remember whether we've seen a recall of this magnitude from a supplier like this and if we haven't how long do you think it will take before samsung starts to regain trust from customers that their devices are okay or will they lose trust that people will be buying other items from samsung, but just take note of this particular recall? >> so, it's important now for samsung to get out the message in two things here. the first recall felt very much like a very rushed situation in terms of switching battery supplies, for example. what we now know or seems the evidence points to the fact the design itself may have been the
cause. so the battery is tightly packed into the package. so samsung really has to ensure that if they are going to continue this product which i think is questionable but if they do to ensure that they regain trust by being explicit to consumers in the message that the situation, the issues they had are in the past. but secondly and most importantly, to get across the messages purely to the design of one particular product and not other samsung products of which they've enjoyed tremendous growth in the past. they need to make a very clear line around this one product to prevent the brand risk to other products. >> neil, good seeing you this morning. thank you very much. neil campling. saudi arabia has set to embark on one of the largest debt sales. officials will be meeting
investors on wednesday, tomorrow with a view to selling five, ten, 30 year bonds. it could net the country in excess of $10 billion as the kingdom batles with soaring budget deficit thanks to lower oil prices. >> european central bank policymaker said the timeline on tapering asset purchase will be data dependent. he said he can learn from the experience of the federal reserve and is aware of the potential negative consequences of leaving rates too low for too long. the remarks come after the ecb flatly denied a media report last week that its rate setters were thinking of winding down its stimulus program. the former u.s. treasury secretary larry summers astound alarm on the new normal of extraordinarily low bond rates p.m. summers warned of an imbalance between demand for debt and equity. >> i do think there's a
structural issue which is that we seem to be in this era of extraordinarily low normal bond rates and that may be because of some imbalance between demands for debt securities and equity securities caused in part by all sorts of regulator requirements that push pension funds and other asset managers towards debt securities and there may be a case for finding some kind of offset to that. but i don't think that our salvation lies in indiscriminate qe. >> fixed income portfolio manager from jpmorgan asset management. good morning. what do you think about what mr. summers had to say about the struck stural issues than new normal of very low rates. >> when we look at the world we see a world of secular stagnation. a world where growth isn't picking up to levels that we previously saw. we cee lo inflation. and that means a world where
rates stay lower for longer. >> you talk about how it's possibly the end of the 35 year bond bull market. but it's also a good time to be in bonds. >> i'm not sure it's the end of the 35 year bond bull market. people have to either think harder where they put their fixed income allocation given the yields what you're getting what's called historically core markets. >> coming back to the ecb tapering reports they have been denied by the ecb. i wonder why they are so sticking to the market what we're seeing is the 30 year german bond now the highest since the brexit vote. why is it people sti want to sell the longer debt? >> i think there was just a perception. a bit like 2000 and '13. qe would go on forever.
central bank would buy government bonds. in reality that's not the case. at some point ecb is running out. they are running out of german government bonds and have to tweak the process. i think that's a pause for concern. think about the returns, fixed income investors have this year they have beaten everybody's expectations and some profit taking in the market right now. >> what are you doing? it is a buying opportunity or jumping on the band wagon? your selling that paper too? >> we think that long term yields will stay low. at the moment we see opportunities in the high yield markets both in the u.s. and europe and we're adding in to the emerging markets as we're seeing improvement there's and all three of those markets offer yields which are much more attractive. >> is that a play also on the fed hiking rates and i guess cushioning yourself against that higher dollar? >> the fed hiking rates is
pretty much in the product. most people expect the fed to be moving in december. what we're thinking the fed will be hard pushed to do much more than that. one out this year and one out next year. that should support emerging market currencies. so that's one of the reasons why we like those high yields. we're not too concerned about a currency sell off. >> why don't you think it would strengthen more? it might be. if we see rate hiking cycle start in the u.s. versus elsewhere wouldn't want to assume a dollar strength story might be one to follow. >> that's all based on u.s. actually out performing and we don't believe that's the case. we think they will grow at current pace. europe may grow faster than the u.s. this year. again that wasn't in people's expectations at the start of the year and we believe that the fed won't be able to raise rates that gravely. >> in need your take on gilds.
why would anyone want to own gilds at this point. seems the boe is at the end of the line. >> the boe is buying a lot of gilds. it's at 1%. if you look what happened to the uk next year we have to start discussing brexit. we haven't gotten there yet. uk is benefiting right now from the falling in sterling. when we get in the hard discussions and negotiations that's when people see the pain of the uk suffer and people might back into the gild markets. >> it might not be the end yet for gilts. >> interesting also that we still need to have this brexit body put in place in the uk. we don't have the bonds to deal
with all the different varieties of what will happen in the next two years. apparently they are trying to find government people to come and be willing to work on brexit and apparently i hear it's hard. >> moving off from brussels to london. >> i don't know if people want the job. you know it's difficult to sort this stuff out. you may choose to stay in your government position approximately >> e-mail the show to let us know whether you want the job or not. you can find us on twitter at "street signs" @cnbc. coming up here on the show we'll get the latest from luxemburg. guess what guys, i switched to sprint. sprint? i'm hearing good things about the network. all the networks are great now. we're talking within a 1% difference
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. we're pretty mixed in terms of european trade. let's check in on markets in asia. what's happening outside of samsung? >> reporter: outside of samsung it's really the oil moment. good morning to you. the oil momentum was able to carry through in the asian markets especially in the morning session in australia, china as well as japan but the energy sector wasn't ahead enough to lift asx 200 above the flat line there at the close. now the nikkei hit a five week high closing at up 1%. and the rise in oil that we saw was helping mining stocks in japan. weaker yen helped japan as well. take a look at the kospi. talking about samsung for a good part of the morning. the kospi down 1.2%. samsung the big heavyweight on the kospi closing down 8% a couple of big headlines coming
out today. samsung asking note 7 users to power down, not to use it until the investigation into the overheating batteries is finished and also asking its international carriers, telecoms partners and retailers to stop selling the note 7 and replacement and also the korean consumer safety administration has said a new defect has been found in the replacement devices so that was another headline that weighed on samsung which wiped out 13 policy 8 billion off its market cap. >> all right. thank you so much for that. meantime takata shares closed nearly 7.5% lower after a report by the "wall street journal" that said the embattled airbag maker is battling a lawsuit. they look for a sponsor to help i want deal with spiraling costs related to a global recall of millions of faulty airbags. takata released a statement denying it announced any such
plans. >> why do people call me caroline. >> we had a debate about this from guys in the gallery. you said caroline. you can say whatever you want. >> i know my name. >> can you come up with a symbol. other people have in the past. >> why should i get upset. it's just an e. >> i'm louisa. >> that's your new name. >> you can be whoever you want to be. to profit from deliberately cause failing lure of businesses during and after the financial crisis. shares ting government own lender or government own lender fell sharply on whistle blowing allegations. rbs said they should have done better for customers in certain areas but any issues that existed have been resolved.
>> deutsche bank helped the dax close over 1% higher as investors hope for a strong jeelds. it thread market and finished up over 3% despite opening down about 4% on worries over its derivatives book. the banks was rethinking some of its strategy to quicken the turn around and reduce loss make operations. >> lvmh picking up demand. perfume and cosmetics were its stronger division. the luxy conglomerate seen as a gauge for the wider sector. lvmh shares are up by 16% over the course of the last three months.
when looking at some of the broader luxury shares today many of them out performing. some are up by more than 3%. most of the stocks here on the screen are much higher. >> you called me caroline again. >> i said carolin. >> are we coming to the end of the hong kong and chinese weakness. the companies have had very little visibility on that. >> they have. we always hear that the asian consumer will become stronger and weather whatever is happening elsewhere. greece has cleared a hurdle towards the next round of its bail out. eurozone finance ministers in luxembourg agreed to disperse 1.1 billion in loans but decline signing off a 1.7 billion pay out later this month. greece's finance minister was
positive on the progress made. >> it was a very good eurogroup for greece. it was decided that greece completed the milestone so we can proceed the 1.1 billion dispersement. there was an agreement that greece had done very well in clearing its arears in july and august but for technical reasons we don't have figures for september. when those figures are collected and are available the dispersement for the 1.8 million for arears will be made. >> they need to sign off on the 1.7 billion. is this a fruitful meeting for greece? >> reporter: i think it's considered a victory or at least a climbing of a hurdle for greece as you heard from the greek finance minister. he welcomed the decision that came here after the meeting last
night and foingt the fact that it's a technicality. it's considered a success but plenty of risk still on the horizon for greece not the least of which is the lingering question whether imf will sign on to papg. a lot of voices say how crucial that element is when it comes to credibility. but for once the finance ministers meeting here in luxembourg can say greece is not the top of their concern. they won't say brexit is on the official agenda here now that the entire eco ministers are meeting but it's on their mind because they are talking about growth projections. they are talking about completion of a european banking union and, of course, they are all reflecting on what came out of the meetings in washington, imf and world bank meetings and talk of some considerable growth head winds coming from the brexit effect and the uncertainty over exactly what those head winds will be because
we don't know the course of negotiations. yes there's some confidence and optimism among european finance ministers that a date has been set for triggering article 50 but still not a lot of decisions here have been made on what exactly the separation will look like and as you know both investors market watchers and some politicians have been concerned by what they have viewed as hard brexit rhetoric coming both from theresa may's camp but from some european leaders with the like of french president francois hollande spooking markets last week. i had a chance to speak to the eu commissioner and i asked him whether or not it was time to pare back some of the hard brexit rhetoric. here's what he had to say. >> negotiations are never simple. very important decisions. but they are to be fair and they are to be fair between partners who we respect each other, knowing that our recent past, our present and our future are
whatever happens. >> are we seeing posturing for negotiation purposes of what eventual happens in brexit won't be here. >> let's wait and see because time for negotiation has not opened as theresa may has said and it's for march of 2017, the moment when great britain will launch procedure by raising so-called article 50. so i think we should really think, prepare and have a reflex based on principles and on friendship. >> so that word friendship you wantered by the commissioner suggests some people are taking the time though i maybe cooler heads should prevail when it comes to negotiating standpoint but still a lot of uncertainty here not just on the brexit factor but of course lingering concerns about financial stability when you look at uncertainty at deutsche bank. >> thank you.
welcome and good morning. you're watching "street signs". i'm carolin roth. >> i'm louisa bojesen. your headlines today. european markets are mixed in early trade but the ftse 100 outperforming as sterling falls back to an eight year low. >> raise a glarks champagne and perfume boosting sales for lvmh. sweet smell of success raising
shares. >> switch off your phone. samsung stops the sale of galaxy note 7 with multiple media reports suggesting the halt could be permanent sending shares lower in korean trade. going against the flow. one of russia's top oil bosses says that no is the answer to an output deal. also pouring cold water on hopes that other top producer will cut their production. good morning, everyone. if you're just tuning in let me show you where u.s. futures are. we're a couple of hours away from the u.s. open. the dow jones set to fall by 14 and the nasdaq set to drop by three points. this is after the nasdaq 100 hit a record high in yesterday's session, the nasdaq had second highest close ever, apple of
course helping whatever, samsung's demise the apple's gain. i want to show you in terms of the european trading session, the cap 40 and dax are showing some very modest gains. outperformer is the ftse 100 but just by a small margin. that's thanks to the sterling weakness and a little bit later on in the show we get the survey out of germany and expecting further improvement in that for the move october. speak of currencies. here's a quick check and a infuriate slide for cable. that's a pound against the u.s. dollar crashing below that 1.23 level, 1.22.4. dollar adding an 11 week high. we are, indeed in other news the ceo of saudi aramco said 2018 will be the right time to list the company. the boss of the saudi oil
company said he'll be quote more than theep share the financial details with investors once the company is publicly traded. he pledged to invest $300 billion over the next decade with a focus on gas assets. and crude prices trading slightly off of yesterday's highs as goldman sachs warns an oil production cut by russia and saudi arabia would not be enough to rebalance the market. the investment bank says growing output from libya, nigeria and iraq would mitigate the impact of a production deal. the ceo of russian energy has told reuters that his company will not cut oil production as a part on a possible output deal. his comments come after russian president vladimir putin yesterday pledged to work with opec numbers to curb oil supply. speaking to cnbc earlier at the world energy congress, ge's president and ceo said that the oil and gas industry was still far from economical. >> remember that this industry is still highly inefficient. when you look at the oil and gas
industry versus some of the other industries two to three times more inefficient. you look at the unplanned cost, 150 million dollars of costs that could be avoid by being more efficient. that's what we're going after. it's good for the industry. i want also allows us to differentiate in the industry. steve joins us out of istanbul. so we're hearing steve that cuts from the saudis that it's not enough even if they manage to cut alongside the russians. >> reporter: let's just say there's a lot of conversation about that at the moment and i think it's an absolutely fascinating playing field and will be up until 23406th. that's the date for all energy watchers, that's when we find out whether opec can actually -- fantastic to see you. i want to ask you a different kind of question.
how are you sneelg you just signed whais massive deal for your company, for your country, for the british country as well and i think i want has so many ramifications. are you elated? are you nervous? >> certainly not nervous but i have to say relieved and excited. we're leading because it's been many years with a lot of work for many people in the uk also in france and china, you know this is a partnership between the united kingdom and china and france so we're relieved we have been able to get this decision behind us and that we're excited because everybody has been watching how we can build this hugely performing nuclear project with the highest safety standards with the best performance and we have more than nine years to deliver first unit. very exciting challenge. >> reporter: it is. you mentioned it's the biggest construction project in europe. it will provide the uk with 7% of its athletic try it is.
-- electricity. >> epr technology very sound. the number one reactor will be delivered at the end of next year. and then another at the end of 2018. we have not made a decision without being extremely, extremely detailed analysis of where we are today in the currency technology and where we're going. and we're assured that we have all it takes to deliver on time and on cost on hinkley point. >> do you expect the political ramifications to carry on. it was about the relations between the uk and i'll put uk
and europe because we're still in europe as well and china as well and chinese investment in european power infrastructure and key stewart infrastructure as well because that's the contentious issue. >> what i'm interested in is the way the british government, the new british government with mrs. may have made their decision and what they have publicized, there's a very interesting document called value for money. value for money is what it shows from the british ministry of energy and industry and they say we have value for money and they explain in great many details why this is a valuable project for the british people, for the british consumer and to me it's the number one rationale for that project that's most important to all of us that the project gives value for money for the british consumers. >> reporter: but you know how it works in france and about security of infrastructure, security of industrial assets as
well. do you think the same kind of deal with the chinese could and will happen elsewhere in europe and especially in your home country? >> i have no doubt that the experts in the security of information systems have all the tools they need to make sure that the power systems, whether it's in the uk, whether it's in france, anywhere that these systems will work and that there is no risk to national security because there are expert agencies in this field and i have no doubt that these people know their job. >> you talked about the new technologies. that's really a bit of a buzz word. sfishs. digitization. is there a danger those the costs that you and british government and the british consumer locked into are just going to look archaic and stunningly expensive in five to ten years time if other technologies take off. >> may i refer you to that public document from the british
government saying why hinckley point is good value for british consumers. yes maybe some cheaper solutions but with sovereignty and carbon emissions and all in all what the british government has decided and this document is very vocal about it to say we have value for money. and also we have a good profitable business with a lot of industrial challenges and that's what we like to do and we'll do it. >> how much is it your position putting edf at risk as well. people say this will damage the finances of edf, damage the ability for other projects, big infrastructure projects. do you see risk? >> the situation that edf is very clear. our wholesale market prices dropped in the winter of 2015 to
2016 so we have to reconsider the way we organize our balance sheet, the way we finance our investment. that includes hinckley point. it's 10% of our cap ex. 90% goes to many other investments in nuclear and renewables and decentralized energy. we looked at this, okay, how can we live through this period where we have a lot of investment and we have design a new financial trajectory which is in place which includes savings, divestitures, crease the equity of edf and all together it works and we have a southern company and i'm glad to be running it. >> it's nice that the british are on the same page as the french and slightly against the germans. do you think the debate goes on about the role of nuclear. germany said no they like the
ele electtricity from it. >> these people who are hesitant with what they should do with current nuclear fleet will look at it twice. the british and french. the british and french are going to want a new generation of nuclear reactors. why shouldn't we? we have benefits of nuclear today. should we drop it like the germans and germans have huge problems today. they are very late in their carbon emission targets. way behind what they had announced. all these countries that have nuclear da third generation of nuclear reactors. >> we want to talk about germany. looks like article 50 will be enacted in the spring. does it have any relevance to edf working in the united kingdom? >> i would say certainly not in the short term. in the long run we'll see what will be the new balance of things between the united
kingdom and the rest of europe and we'll address. i'm sure that business driven relationships between britain and the rest of europe will remain very solid and we count on britain to make the right decisions in that respect. >> reporter: we're counting on france to do the same thing. thank you very much. always a pleasure. jean-bernard levy ceo of edf taking pertinent questions on hinckley point. back to you. >> thank you very much, steve joining us live out of istanbul. just switching gears from istanbul to south africa. it seems that the south african finance minister has now been issued with a formal summons for fraud. according to local eyewitness news service reported by reuters. we're hearing via reuters that at some point he'll be summoned to appear in court on the 2nd of november. his lawyers say they will issue a statement in a very short while. he was not at the home or at his house when the summons came but
handed a summons at his house by a brigadier. the revenue situation is more tedious as tax departments focus on controversy around setting up an alleged spy unit. it's thought this is a formal summoning for potential of fraud so that's one thing we'll don't watch and we're seeing some reaction in the south african government. >> political commentators will add this is probably a political play on the part of amc to get gordon out of the treasury to get full control of the finances. so fraud may just be a prerequisite to a much bigger motivation here. >> we've seen similar speculation in the past, though, with other members of the political sphere as well. still coming up in the show we'll take a look at the latest on twitter's potential takeover. anyone ready to make an offer stay tuned to find out. wele
show. let's talk u.s. politics. democratic candidate hillary clinton's lead over rival republican nominee donald trump has wideened into double digits. this after the release of a video from 2005 in which the republican hopeful made vulgar comments about groping women. according to the latest nbc news "wall street journal" poll trump now holds support from only 38% of likely voters. support for hillary clinton meanwhile has risen to some 52%. the poll was conducted over the weekend after the tapes friday's release and completed before sunday's presidential debate. the widening lead for clinton amplified discord within the republican party with less than a month to go before
election day. >> reporter: tonight abandonment and astonishment as the country's top republican walks away from the top of his ticket. house speaker paul ryan telling his colleagues on a conference called won't defend donald trump any more. won't campaign for him. essentially conceding trump won't win. sources on the call revealing ryan was forced to reiterate he won't unendorse trump after facing backlash from angry house members. >> we came away pretty united. >> how do you talk about unity when the house speaker won't defend the party's nominee. >> he's endorsing him. paul ryan is trying to make the best of a very difficult situation. >> reporter: ryan is making firm what he appeared to be doing all along to concussion on saving control of gop control of congress even though trump tweeted ryan shouldn't waste his time on fighting the republican nominee. senator richard burr up for
re-election in north carolina won't betting its better to stick by trump's side. >> if we don't allow somebody to be forgiven who will forgive us. >> reporter: all of us demonstrating the gop dilemma, go against trump and risk the wrath of his base or hope to hang on if loses now growing fears it's not just the senate in danger but the house too. >> it's time for troebs think it panic button because trump could drag them into the political base. >> reporter: the republican political committee silent. outside of its headquarters a graphic display of the gop divide april at a small protest a reference to trump grabbing women's genitals. >> each candidate is running for themselves. that may include embracing donald trump or not. >> reporter: ryan's republicans and trump's a coalition crumbling. our polling show more vote are
want democrats to control congress by the widest margin since 2013. the republican party is still standing by its nominee. late tonight nbc news learned privately reassuring members ifrpts great relationship with team trump. >> despite the exodus, trump kept one key ally on his side. carl icahn defended trump's comments on the 2005 tapes saying it's amazing people or outraged by something everybody knows is going on in every locker room in the country. he further reiterated his assertion that the republican nominee is the best choice to protect u.s. businesses. the billionaire investor warren buffett stwruk back at the gop nominee trump over the presidential candidate's claim that he like trump has taken a massive deduction to avoid paying federal income taxes. he said he paid $1.85 million in taxes back in 2015 and had no
problem releasing his tax information to the public. let's bring in deputy head of political risk. john, what is it for trump? >> a bad week for him. horrible week for him. if you look at where these polls are going, you saw that nbc poll down 14 points, 11 points. so these are hard things to make up. doesn't mean it's point. what he's doing is he's realizing it will be difficult for him to be a moderate and win this election. it's going to be a base election. he's doubling down on really the philosophy he had before which is let's be as boifterro boiste can. >> can hillary clinton hold that lead throughout the next three, four weeks because there's concern those voters turning away from trump are not necessarily turning towards clinton because they don't like
her either. >> there's a realization in the clinton camp this lead is not going to last. certainly not going digits for the next three or four weeks. they are basically waiting this out. again when you have race like this where boston candidates are extremely unpopular any time your opponent is in the news it's a good day four. >> what do you think about paul ryan and other gop members, their strategy right now? should they do quite well in focusing their efforts on the house and congress >> he realizes when you look at public polls and private polls as well it's beginning, the race is beginning to shift. doesn't mean it can't turn back but with that in mind especially if you're looking at the senate, we're looking at razor edge between democrats and republicans, i think in some respects they say play what works four. if it helps you, embrace it. if not break away. in the house it lookslike they are in pretty decent shape.
>> the economists pointed out when politicians in developing countries when they threaten to lock up their rivals as trump did during the debate that american diplomats denounce them and now we're seeing this type of rhetoric. a ari flesher said you don't threaten individuals. do you think there's anything trump can do now to save the position that he's got himself in? >> it really just depends on how many of his supporter earned up going to follows. if they go out in record numbers he can pull this out. that's approach he's taken. on your average electoral cycle, apologize. get really voters that might be inclined to vote for him that are not hillary clinton supporters. that doesn't seem to be the tact. he's got to get them coming out in record numbers.
>> people say this is the worse crisis for the republican party since watergate. would you agree and can the party recover? there's got to be a lot of soul searching. >> watergate was a disastrous time for the party. they had a tough time in 2006. i wouldn't say this is the worst time ever. for them a lot of soul searching if donald trump loses this thing which direction does this party want to go. does got it in the direction of what trump is espousing. how can they bring these divides back together. >> big question. john, thank you so much for joining us. just want to let you know i'm looking at a flashing of surrounding mr. putin, putin will not come to paris on october 19th after declining france's offer to meet french president francois hollande just for syria talks according to a french source.
let's talk all things tech. shares of yahoo! and verizon higher in after hours. an investigation into the yahoo! data breach was nearing completion. speaking to julie boorstin he added he saw value in the asset and laughed off the suggestion he was looking for a big discounts of the internet company due to the hacking scandal. >> you're referring to what is it the "new york post" article which is as we all know is a bas the ion of financial information. i didn't actually read the recall -- >> you saw the headline. billion dollar price cut. >> from what i one those that read the article they got one thing right and that was our closing stock price on the day of the article. >> excuse me. twitter shares losing flight in monday's session as the prospects of a take over bid for the company continued to lose
steam. the initial front runners suggest none are looking to make an off federal republic ceo jack dorsey has tried to rally his staff with an internal memo emphasizing his strategy to turn around stalling revenue. we have more. a minute ago everybody wanted to buy twitter. what happened? >> this seems to be a bunch of silicone. valley's biggest technology giants run their eyes over to books of twitter and they don't like what they see. seems to be the message here. there was a lot of talk about why twitter would be acquired, the data the real-time information about its users happening there and then and put itself out there as a social media platform known for its immediacy. that was one of the biggest selling points something that ceo jack dorsey was keen to push. seems like none of the tech companies found a fit for twitter in their currents
business models. >> are they holding out for a lower price. >> that's the point. next year we'll see a shake up of valuations in the tech industry around the first quarter and see twitter price dip below $10. at that point we might see some buyers. >> i've seen a lot of people speculate whether this is the same of 199 in terms of valuation. wasn't twitter supposed to have that magic video element and streaming that a lot of these bigger companies could benefit from >> definitely. that's why they bought periscope, live streaming app and pushing very heavily on live sports as well and signed a deal with the national football league in the u.s. to show some of their games on a thursday night. that's a place that jack dorsey is hoping is going to see a lot of growth. at the moment we haven't seenmo.
>> thank you for that. quick look at u.s. futures. >> yep. u.s. futures and how we're set ourselves up for trade. we're not is the answer in terms. we're looking at the implied open being a bit lower. on the right-hand side of your screen, opposite picture to what we were looking at yesterday. that's it for today. i'm louisa bojesen. >> i'm carolin roth. "worldwide exchange" is up next. see you tomorrow. bye-bye. guess what guys, i switched to sprint. sprint? i'm hearing good things about the network. all the networks are great now. we're talking within a 1% difference in reliability of each other. and, sprint saves you 50% on most current national carrier rates. save money on your phone bill, invest it in your small business. wouldn't you love more customers?
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good morning. earning season is ready for play. oil prices have been pushing stocks higher but today's test for the market comes on the corporate front. >> samsung shutdown. smartphone maker halting sales of galaxy 7 and telling customers to shut off their phones. >> a new poll gives hillary clinton a double digit lead. it's tuesday, october 11th, 2016 and "worldwide exchange" begins right now. ♪ good morning and welcome to "worldwide exchange" on cnbc.