Skip to main content

tv   Street Signs  CNBC  February 2, 2018 4:00am-5:00am EST

4:00 am
. welcome to "street signs." >> these are your headlines. >> third time unlucky for deutsche bank. shares take a steep dive after reporting a third consecutive annual loss, including a big hit from u.s. tax reform we will hear from john cryan later this morning. the wider banking sector falls with spanish bank shares sliding after weak earnings, but danske bank outperforms after fourth quarter profits beat estimates. we'll speak to the cfo later this hour.
4:01 am
and apple and amazon lead after-hours gains after the iphone maker beats expectations and the e-commerce giant beats record profits. and sony reports its best ever third quarter profit and forecasts a full record year the results come as the ceo, kazuo hirai announces he's stepping down. welcome. let's look at these markets. the stoxx 600 is on the defensive, sliding by 0.7% as you would expect, after the deutsche numbers, the banks are leading the losses here over in europe let's take you through deutsche bank very quickly. posting a net loss of 2.2 billion euros for the fourth quarter. much worse than expected the year-end number was really the issue here almost a a500 million euro loss.
4:02 am
the third consecutive loss for deutsche bank. let's look at individual european markets, this is how they look. broadly weaker as you would expect xetra dax is off by 1% cac off by almost 1% the ftse mib down by 160 points. the ftse 100 in terms of the overall picture is doing reasonably well. so the loss is limited at about 14 points or so. sectors. let's look at them as you would expect, banking is in focus, but oil and gas, let's look at some gainers, up by 0.4% for the sector basic resources is on the back foot, down by 2 or 3 points autos is a decliner, telecoms as well as healthcare
4:03 am
construction material down by 1% a fairly broad based weakness on the european markets let's not forget also the higher yield environment, that is really keeping an edge on some gains we've been seeing on wall street and also over here. we have to deal with higher yields, and also a stronger euro as well. that's an issue for the exporters, especially listed on the exporters-heavy dax. willem, back to you. one story we're following are shares of deutsche bank sharply lower. the bank reported its third consecutive annual loss. earnings suffered from declining revenues, challenging market conditions and the impact from u.s. tax reform. annette joins us from frankfurt with more details. this was not a surprise, but the scale of the losses was a little unexpected >> the expectations were already really low for the bank, but
4:04 am
deutsche bank still managed to miss those expectations. if you look at the revenue lines, the revenues for the first time in many, many years below the 6,000 or 6 billion threshold, so it's a seven-year low when it comes to revenues. investment banking is overall weak, especially the so-important fixed income trading, the so-called fic trading, fixed income and currency trading that's weak. overall the picture is dire when you look at deutsche bank and on top of that the costs are not coming down as fast or as much as analysts had predicted. that's the mix that's why investors are really not liking those results also looking ahead, people are questioning what can they do
4:05 am
better and how can they generate revenues in we have a benign economic climate in europe of course deutsche bank has a very good and strong position, but still they cannot benefit from a booming economy, from apparently so many ipos coming to the market. so the big question is whether john cryan and his management team can manage to actually turn around also the revenue generation story not only trying to restructure the bank >> couple questions, do they have to sell more assets is there anything else they are carrying that is not core to the central business number two, do you have any detail on the state of the derivatives book out in asia, there are a lot of concerns about that. >> that's actually very
4:06 am
interesting that you're saying that, that in asia there are many concerns about derivatives books. that could be a reason why asia pacific is especially weak in the fixed income trading on the fic business in the investment bank traditionally deutsche bank was generating a lot money, also in asia pacific this seems to be like the trouble spot currently for the bank that's not positive. the growth rates are stellar normally in asia pacific so there is not an overall concern about the derivative books. this is lingering for many years. there are loads of assets still which qualify as ts-free assets, which can't be quantified because they're missing some rivals to say how much they're worth. but they're building down that book on a tremendous basis that's not the strongest concern
4:07 am
when it comes to the bank. but still clients are holding back in the asia pacific region, which is a negative. to your second question, whether they can dispose of more assets, of course they can they are almost active in every single market in the world i think it's probably high time for them to say, okay, this market is important, that market is not as important as it was, because it does not make sense given the cost basis so, i was talking to some analysts before, and everybody is saying it's a shrinking story, they have to shrink faster in order to be more credible as they are doing it now, it doesn't really have the share price and the capital markets are not happy with it. the question is whether the management team can hold on to its power during the course of this year, or whether the pressure is mounting on them to go away. >> annette, thank you very much.
4:08 am
coming up later, she'll be sitting down for an interview with john cryan. be sure to watch that. danske bank opened higher after reporting better than expected fourth quarter pretax profits. it also warned of a slightly lower net profit this year they said they are planning to increase the dividend payouts. let's bring in jacob eric anderson, cfo of danske bank why is the guidance for this year on the cautious side? >> i'm not sure it's on the cautious sigh. thanks for letting me come on. we're guiding for 18 to 20 billion of net income in '18 we note that our guidance is actually a billion higher than
4:09 am
at this stage last year. i think we're looking into -- we're in the beginning of february of 2018 we think it's a solid guidance we also, if you look at where consensus is, it's in line with where consensus is it's been a strong quarter, a strong year, and we're seeing that momentum continue i think it's a guidance that is ambitious but also shows confidence we don't view it as guiding lower. >> one potential benefit, as you found out, is by starting with low guidance, you can raise your outlook and get a warm reception. is that what you're dock with this year's guidance >> we try to guide as best we can. we are fully aware where we raised guidance last year, which we're pleased with, but there's no gaming going on, if that's what you're implying >> you're six years now into
4:10 am
negative rate environment in denmark. people are talking about a housi housing bubble developing there. given how strong you're saying these results with capital position is, why is your bank opposed to the idea of developing capital buffers >> when you look at -- we've been six years in negative rates now. it's been across our footprint we were fortunate to be the first large cap bank to be hit by negative rates. we have quite an experience with this it hits us on the income side. but on the other hand it gives the benign credit quality reflected in the property prices 50% of our footprint is in denmark where we have not seen the same property price increases as in sweden and norway i wouldn't say we're against capital buffers. there's been a debate in denmark around adding capital buffers at this stage when you look at credit growth in denmark, it's been modest for a number of years now.
4:11 am
not to the extent you've seen in sweden and norway, where you have counter cyclical buffers. that's where we express concern, it may be moving a bit too fast. when that is set, do remember we have a large excess capital position so we're comfortable with any buffer we have >> the clear and present danger in your market seems to come from the housing market. is it showing signs of stabilizing from your point of view >> the housing market is something we're choreography zacognizant around we've not seen that drop maybe more of a balancing out, but we have not seen those same type of price increases. we think sweden and norway is undergoing a healthy correction in house prices, but we don't see it as a major correction we are seeing a stabilization in
4:12 am
these countries as well at the moment i wouldn't say it's dramatic probably healthy for those markets they have gone up fast for a long period of time. when you look at the quality of our book in sweden and norway, especially where there is a small correction, we're pleased with what we're seeing less than 60% loan to valium in bo value in those books. >> your ceo constantly talks about investing in digitalization given that you're announcing 45% of profit going to dividends and a new share buyback program, could some of that money not be better invested in your business. >> we're trying to find a balance between all stakeholders in '18 it will be the highest i.t. investment we've seen it's not like we are letting off on the i.t. investment side. we invest heavily in digitalization and in regulatory implementation of the new regulation coming in
4:13 am
we're trying to find a balance we're in a fortunate position to have a strong capital position it's only natural for us to give that back to shareholders. at the same time investing quite heavily. there's no letting down on the investment agenda. >> we'll leave it there, sir thank you very much for your time today >> thank you sabo-el shares have slumped. spain's fifth largest lender said the boost was due to a one-off sale net profit for the period doubled to 147.7 million euros but below forecast full-year net profits missed estimates. shares in kcaixabank are alo sliding. the fall in profit came after a devaluation in the angola unit
4:14 am
off the portuguese business. the spanish lender set aside more than 100 million euros to cover missold mortgages. coming up, president trump travels to the gop retreat in west virginia to push the white house's plans for immigration reform and take a victory lap on tax reforms. we'll look at the policy change, is that could move markets after this break for your heart... your joints... or your digestion... so why wouldn't you take something for the most important part of you... your brain. with an ingredient originally found in jellyfish, prevagen is now the number one selling brain health supplement in drug stores nationwide. prevagen. the name to remember.
4:15 am
4:16 am
you know what's not awesome? gig-speed internet. when only certain people can get it. let's fix that. let's give this guy gig- really? and these kids, and these guys, him, ah. oh hello. that lady, these houses! yes, yes and yes. and don't forget about them. uh huh, sure. still yes! xfinity delivers gig speed to more homes than anyone. now you can get it, too. welcome to the party.
4:17 am
. welcome back to "street signs. philips lighting has reported bett better-than-expected fourth quarter core earnings. operating profits came in at 207 million euros. net income came in below expectations, but the ceo said he is pleased with the results and confident in the company's growth >> the company did not only return to growth during the year, but the company is growing for the full-year at 0.5%, which
4:18 am
means that our l.e.d. systems and services business growth more than offset the decline of our conventional business. at the same time this growth is profitable as we have continued to improve on our profitability which stands at double at 10%. still delivering more than 400 million in free cash flow. so 2017 is a good year for us. and a major step in a transformational journey. astro zeneca shares down as the cost of launching new treatments could hit profits sales fell 5% last year, though revenue and core earnings came in ahead of expectations. bt reported q3 profits close to to expectations.
4:19 am
bt said it was confident about the year ahead and would maintain its outlook switching tact, president trump has urged republicans to back his plan for immigration reform which includes increased funding on a border wall and a limit on family-based migration. it would also provide citizenship to the 1.8 million people brought to the united states as children the president also praised republicans 2017 performance suggesting the year was unprecedented in the party's history. >> the republican party certainly hasn't qui hasn't quit if we did, we wouldn't be sitting here, we would be sitting home saying
4:20 am
this is one of the huffetoughest years. i don't think it's been done certainly not by much. we had a year that was almost, i would think, unlike any. >> nbc's blayne alexander has more on the story. >> reporter: in west virginia, president trump rallying republicans at their annual retreat. >> we have to get help from the other side, or we have to elect many more republicans. that's another way of doing it the president building energy around immigration reform linked to the latest spending deadline, the threat of yet another government shutdown now just one week away. >> we need the support of the democrats in order to do it. they might not want to do it they talk like they do, but i don't think they do. we'll find out soon. >> reporter: but those policy talks competing with a partisan battle, a gop memo that could go public within the next day related to the russia
4:21 am
investigation suggesting improper fbi surveillance of a trump transition aide. >> if american civil liberties were abused, that needs to come to light so that that doesn't happen again the issue pitting the gop against the fbi, the agency making repeated appeals for the memo to not be released. and democrats agree. >> the main concern is that most of the allegations in the memo are not true. >> reporter: now democrats are accusing their republican chair, devin nunes, of making changes to the document without notifying his committee. today top democrats are urging nunes to step down from leading the committee accusing him of working hand in hand with the white house. blayne alexander, nbc news, washington. we are joined by pippa morgan, a former adviser
4:22 am
to the younger president bush, also a founder of drpm group are you buying what they're saying about success and being unprecedented over the last 12 months >> i think many aspects are unprecedented. clearly having a president-elected who wasn't part of the traditional party structure was a profoundly different thing than we've seen before certainly the way he has managed the presidency is something nobody has seen before and separately he didn't mention it, but the economy has been firing on all engines. he takes credit for that i'm not sure he deserves the credit, but presidents are entit entitled to their luck he has an economy going well he's not wrong when he says it, even though he has many detractors >> there seems to be something of a change in his tone since the state of the union talking about a bipartisan approach seems to be more open to
4:23 am
compromise dare i say it, is there one eye on the midterms here >> it's interesting. he actually was open to compromise with the democrats and more interested in a bipartisan approach from the beginning. in the end it wasn't needed on a number of issues, though he did reach out on tax policy. so, again, he's not really a traditional republican i don't care how we do it, as long as we get it done is what he's like. i don't know that it's specifically for the midterms. frankly at this point the bar is so low if he doesn't swear or malign a minority group, that's considered a success he's created a low-bar environment. in politics that's not completely stupid. when expectations fall low, it's easy to fulfill them it's arguably a management tool. >> do you think democrats will make inroads in november >> i think so. >> will it affect the balance of congress >> i'm not sure if it will go
4:24 am
that far one interesting issue here is the international observers always consider the views of the people on the coastlines of america, but the middle is what matters. i was in colorado and texas last week, overwhelming support remarkable overwhelming support for the president, in spite of some of the toxicity about how he speaks. they're willing to let that go for the substance of policy. >> i want to ask we've heard from president trump, he's keen to do a trade deal with the iuk seems supportive of brexit do you think he can make that happen as easy as he thinks he can? >> i spent my entire career working in trade policy. the way the american constitution is written, the power of trade is in the hands of congress. it's great if the president wants to do a trade deal, he still has to navigate it through a congressional process. is that impossible no, it can be done
4:25 am
it's not a simple thing you do with a stroke of a pen it will take some time i'm sure the british side understand that, it's a well-known fact about the american political system. it's very good that the one country that the u.s. wants to do a free trade deal with is the united kingdom >> i can't let you go without asking about the threat of protectionism. in asia there's a lot of markets, people concerned that the u.s. and china are inevitably going to butt heads is it going to go in that direction? will it get worse? could we get to a trade war? >> you have to remember, the way donald trump thinks, he's a property guy everything is negotiable everything is on the table i would argue that he and xi jinping are in a negotiation about how to handle north korea. one negotiating item on the table is if the chinese take care of that problem the americans would be willing to back off on trade policy or give
4:26 am
them a tpp type of trade deal. there's many things trump would do in exchange for removing that problem, but that's not how people think about it. they think the negotiations are only about trade policy. >> can i ask about the fed what in your mind would represent normalization of policy this year how many rate hikes are you expecting? >> the first thing to understand is their basic view is we've been below average on inflation so long, we should go above average for a period of time the rate hikes are not designed to stop inflation from rising. they're designed to show that they're beginning the process of normalizing. if they do two, that would do it if the economy is overwhelmingly strong and they did three that could do it as well. the key is they don't want to have a rate hike that causes the stock market to have a problem they want rate hikes followed by stock market rallies, just as we've had. i think they will get it >> thank you very much for being with us.
4:27 am
coming up, amazon unboxes monster numbers. we'll look at them and all the big tech earnings after a quick break. back in two.
4:28 am
4:29 am
4:30 am
welcome to "street signs." i'm willem marx. >> let's give you some headlines. >> third time unlucky for deutsche bank. shares take a steep dive after reporting a third consecutive annual loss, including a big hit from u.s. tax reform we will hear from john cryan later this morning. the wider banking sector falls with spanish bank shares sliding after weak earnings, but danske bank outperforms after fourth quarter profits beat estimates. and apple and amazon lead after-hours gains after the iphone maker beats expectations and the e-commerce giant beats record profits. and sony reports its best
4:31 am
ever third quarter profit and forecasts a full record year the results come as the ceo, kazuo hirai announces he's stepping down. >> let's give you some fresh numbers. uk pmi for construction, expecting them to fall to 52 from 52.2 in december. it looks like they are now at 50.2 so pretty much a significant worse than expected decline. the worst decline in 16 months for pmi construction numbers in the uk >> you have to wonder if there's a hit associated with carillion. >> down on cable also. we'll continue to watch that. let's look at forex markets.
4:32 am
dollar in focus today. as always we have to go beyond the headline and look at the average hourly earnings number we see some traction in wage inflation. that will have implications for the fed. it will have implications for yields, and the u.s. dollar. dollar/y dollar/yen, 109.80 so some traction as willem was noting earlier, sterling under pressure now after those uk construction numbers. still quite top heavy in terms of sterling. euro/dollar, 1.2481. backing away from the three-year highs we saw before. >> european markets, the earnings season broadly has been rolling out. the banks have been underperforming. that's dragging down a lot of sectors especially in germany.
4:33 am
xetra dax off by 1.2%. that's the rank underperformer today. ftse not doing too badly cac off by almost 1% let's look at u.s. futures as we gear up for payrolls they suggest some weakness for the major indices. remember we have been seeing a stumble towards the end of january, because of that higher yield environment. payrolls will be key if we see some traction with the average hourly earnings numbers, that may have something to do with the fact that inflation is starting to rear its ugly head again. >> to bring you more details on that, the company's ceo kazuo hirai is stepping down from a front-line executive role. he will be replaced by kenichiro yoshida on april 1st hirai will become chairman sony streamlined its business
4:34 am
cutting back in areas like pcs and tvs and focusing on smartphones and image sensors. yo she amazon posted the largest profits in its history with sales over christmas driving the income to over $2 billion shares surged off the back of results. >> reporter: another big earnings report from amazon driven by record holiday shopping season and continued growth of its cloud computing unit, aws. amazon also crediting the results to growth of its prime membership program it doesn't break out the total number of prime members, but amazon did say it saw more than 4 million sign-ups in one week alone last quarter revenue from subscription services, music video and other services, grew nearly 50% to 2 $3.2 billion it was the first full quarter from sales from whole foods
4:35 am
after its acquisition last year. sales came up to 4$4.5 billion amazon continues to grow sales and be profitable while spending big on newer businesses like video content, hardware, advertising and brick-and-mortar a lot of earnings coming out over the last few days last 24 hours in particular. shares in alphabet slipped in after-hours trading as the company missed profit forecasts for its fourth quarter increased spending on promotion of consumer gadgets and youtube saw gains of 27% profits of $7 billion were forecast, but they came in slightly lower at 6.8 billion. >> the earnings parade rumbles on shares in apple moved up after hours, stronger iphone selling prices and the prospect of cash returning to shareholders boosted investor hopes apple reported revenue for the
4:36 am
first quarter of 88$88.3 billio with earnings per share at $3 9 $3.89. revenue forecast of 60 billion to $62 billion for the second quarter was below expectations. the number of iphones sold in the first quarter was down compared to a year ago with 77.3 million iphones sold, but the hefty price tag helped the average selling price. let's talk with daniel gleason arjun also joins us around the desk daniel, it seems apple wants to offer a higher margin product and chase the mass market. can they do both >> an interesting thing about last night was itone did not grow margin, operating margin was on par with last year.
4:37 am
instead we see with the iphone 10, it's increasing revenues, driving that growth and keeping those high-encustomd customers engaged, so they'll keep spending money on services and content. and a lot of the innovations with the iphone x will become cheaper over time. >> one thing i find quite interesting is about the timings of these phones releases presumably you're struggling as a company to decide whether you will tread on the toes of your previous model or whether customers might go elsewhere while waiting. did they get it right? >> i think so. apple has had a consistent mode of when it releases phones consumers always knows there an event in september where they announce what will be coming out. so people are prepared that's why iphone sales always spike usually in q4. that's when the new iphones are announced and sold
4:38 am
a lot of competing phone companies avoid that time period for the same reason. they don't want to directly compete. you will see a lot of the new flagship devices announced later in the month in barcelona. so, the other companies will kind of get the rest of the year to push their products >> so essentially they crush the long trail ail on the iphone 8 y releasing the iphone x >> i think it hasn't really borne out. the iphone x, some calm lags cu say they sold 25 million units the iphone 8 is the second best selling after the iphone x that's what apple would want the highest priced unit is the top selling one and the 8 afterwards >> we had reports about production issues with the iphone x, delays in bring flag to market. do we expect an wrup tiuptick fr
4:39 am
iphone x sales going into the summer >> i wouldn't. the launch quarter, the christmas quarter, those are always huge quarters for consumer technology. i think we've seen reports that apple is curtailing some production for iphone x. it's caught up to demand that's the thing tim cook said, it's finally catching up to demand so you see some of those things, those production issues being scaled back to keep that in line >> facebook. is that something of a crossroads they want to prioritize meaningful content and put viral videos lower down on the feed. that seems to be a sure fire recipe to kill engagement and advertising eyeballs >> facebook is sort of this catch 22 situation, where it can try to push more advertising and
4:40 am
try to boost sales if it does that, then consumers get hugely turned off. that's one thing coming out from a lot of research focused on young people and teenagers, they see facebook as just being filled with ads so they're turning towards snapchat and instagram where there's fewer advertisements i think that's probably the catch 22 that facebook needs to try to find that correct balance between making sure there is the right content people want to see in their feed alongside some advertising. of course when it's mainly on mobile, it's hard to have them side by side on such a small screen it has to be in flow, which makes that balance hard to strike >> okay. daniel, thank you very much for that thanks for joining us. daniel gleason and arjun
4:41 am
karphul. >> bitcoin is under pressure again. falling under a key level of $9,000 this is after reports of increased regulation in india and allegations of price manipulation at a major exchange the cryptocurrency has recovered some ground in early trade head to to read about how the latest selloff has wiped out over 1$100 billion in global cryptocurrency value written by our man here arn and coming up on the show, super bowl lii takes place on sunday with the philadelphia eagles and the new england patriots set to battle it out. we'll look ahead to big business of the big game in a few moments.
4:42 am
4:43 am
4:44 am
welcome back coming up later, tanya breyer
4:45 am
spoke with queen rania who weighed in on donald trump's decision to move the embassy to jerusalem. >> when it comes to the embassy, we felt that was a decision that was all about sending the right kind of signals. moving the embassy, it should come with peace between the israeli and the palestinians, and a state. that prejudges the decision, and it renders the united states a biased broker. that's not the perception we want to create while working towards a final status solution.
4:46 am
>> you can watch tanya's full interview with queen rania of jordan tonight. i'm told -- i'm told there's a big american football gail on this sunday. it's the super bowl. it pits the philadelphia eagles against the new england patriots ticket prices for the game have apparently hit new highs stub hub says this year's showdown will be the most expensive in history the cheapest price on the company's website is around $3200. the most expensive sold is $22,000. >> that's got to be the corporate box seat >> you would think can they expense it? >> some champagne there as well. >> i'm happy to say we're joined by wendy worford in minneapolis. how are things looking there in
4:47 am
terms of preparations? this is a massive undertaking for the city they're presumably happy to have these fans coming for the weeken weekend. >> i know what, willem and sri, good morning to you. this city is ready they call it the bold north, not to be confused with cold north which it is. that doesn't seem to be damping their warm spirits here in minneapolis at all we're at the super bowl experience that gives anyone who comes here a real taste of all things football i was kind of surprised to see how big an actual game ball is it takes two hands for me to hold it i won't even bothe throwing it for you. i would embarrass myself i also realized this is so much more than a football game. like you said, the whole city is waiting and ready for super bowl lii. but it's also a huge show to be undertaken by nbc sports team
4:48 am
crews. we want to show you by the numbers, at least 100 million people are expecting to watch this show on sunday evening. more than 100 million people that's a lot of eyes focused on one channel. about 100 men and women from the nbc sports teams have been working tirelessly to make this happen they manned 14 tv trucks, more than 100 cameras, and it's all tied together with 50 miles of cable. they've been rehearsing behind the scenes to make sure everything goes right. guess who else has been rehearsing half time headliner justin timberlake that's a huge draw for the show. even if you don't like football, who doesn't like justin timberlake he won't give away any of the details. he met with the media yesterday about what the show will contain. he will give us a hint it's all things about nothing that's been
4:49 am
done before. we will get a surprise with his show tomorrow, i should say on sunday but we're all excited to see him and he isn't talki ing about a special guest who is rumored to join him on sunday you mentioned ticket prices. we heard the most expensive ticket was $27,000 yes, you were right, that involved the suite i don't know if it's a royal suite, but it's a suite with all of the trimmings but if you're still planning to come to super bowl 52, you cliin expect to pay $3,000 live in minneapolis, i'm wendy wilfor, back to you. >> i will possibly watch the highlights the following day it may be a bit late, past my bedtime. joining us from new york this morning, reginald wilkes
4:50 am
will be joining us shortly a former linebacker. from my perspective, it's always been about the snacks. i lived in the states for some time, my wife is american, every super bowl sunday it was hours of preparation >> i thought you were talking about how the hot dogs were thrown from that dude selling them throwing them right to you >> they have a great arm >> throwing right to the back of the stores or the audience >> there was a moment of irony where she talked about the size of the game ball tom brady famously was accused and found guilty of getting one of the guys on his team to deflate the footballs. deflategate. >> ball tampering. i thought that was only happening in cricket >> one of the guys on the support staff was found guilty of having tampered with them let a little bit of air out of
4:51 am
them a bit more grip around the ball. they are enormous when you see them it's a big game for the u.s., a big game for nbc sports. yeah you know, a lot to watch for on sunday we'll catch it mostly on monday morning. >> i wonder how many people will stay indoors temperatures freezing there. >> not a warm weather sport. >> super sick monday >> going to cost the u.s. economy a lot. let's move on. north korea's delegation has landed in pyeongchang, south korea for the winter olympics. athletes from north and south korea will march together at the opening ceremony and field a joint team in women's ice hockey >> setting foot in south korea, tonight these north korean olympians are making history
4:52 am
>> i was wondering what they look like, how they speak. we can now see them with our eyes >> reporter: north and south will march together una yuder a unified flag competing as teammates and rivals in all, 22 athletes from the north are here, including 12 added to the south's women's hockey team. sparking a backlash among the public and the players americansarah murray is their coach. >> it is a tough situation to have our team be used for political reasons. it's something that's bigger than ourselves right now. >> reporter: the north and south korean teams will be staying here at athletes village with olympians from around the world. but they won't be living together they'll be staying in separate buildings. the olympic spirit is about bringing countries together.
4:53 am
now the stage is set forrivals to become partners if only for a few days miguel almaguer, nbc news, pyeongchang. >> we were talking about minneapolis being cold that looks chilly >> those winter olympics go well beyond the sport so much at stake here. if this is a defining moment and aunifying moment for north and south korea through the perspective of sport, it could be something very, very significant in terms of reconciliation >> was that a big surprise to people when the announcement came through that they would be sending joint teams together >> i think it was. i think this was the hats-off moment to the administration in south korea for moving this forward. but, you know, sport diplomacy has been successful before you look at the ping-pong diplomacy between the u.s. and china, being instrumental in thawing relations there.
4:54 am
perhaps the sport can do the same around this type with timee north and the south. at the end of the day this could really be something that moves forward, that moves both countries forward in terms of reconciliation and toning down the atmosphere and the temperatures that are quite hot. >> you go back six months, you were hearing such bellicose rhetoric coming out of pyongyang,not just against the united states but against south korea. i wonder how these people react to they're our worst enemy, we will crush them, to actually we'll send a few people to join the women's ice hockey team. it is such an extraordinary change >> it is a small step in the right direction. i don't want to tempt fate, when you consider the soldier who
4:55 am
defected quite dramatically across the dmz, it has happened before in history, in olympic games and else whewhere. there is the remote possibility that some of these sports people from the north could very well defect >> and that could backfire >> that could fray nerves further and be counter productive so highly charged, highly politicized, but it could be unifying in the long-term. >> do you have a favorite winter olympics event is it curling? >> it is not really curling. i found it bizarre sweeping that module in front of you i found tobogganing fast and furious. especially with the jamaican bobsledding team these complete underdog there's a come out of nowhere, it's not something of their country but who can forget eddie the
4:56 am
eagle, of course it's a good crack. >> i look forward to watching some of it myself. a quick look at u.s. futures wheel we're ta while we're talking about the u.s. and north korea the dow jones with a negative start to the day implied open down more than 215 points right now the nasdaq and s&p 500 also looking like bad starts to the day. that's it for today's show i'm willem marx. >> i'm sri jegarajah thanks for watching. have a great weekend
4:57 am
4:58 am
4:59 am
5:00 am
apple's ceo tim cook speaking to cnbc after his company reported results those comments straight ahead. stocks pointing to a lower open on wall street following yesterday's slide. dow futures down more than 200 points and stepping down. the ceo of sony announcing his departure from the global giant. it's friday, february 2, 2018. "worldwide exchange" begins right now. ♪ good morning a warm welcome to "worldwide exchange" on


info Stream Only

Uploaded by TV Archive on