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tv   Street Signs  CNBC  April 20, 2018 4:00am-5:00am EDT

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welcome to "street signs." i'm willem marx in london with steve sedgwick live from jeddah. >> eyes on the prize, not the price. saudi arabia's energy minister tells cnbc there's much work to be done to rebalance the oil market >> we have to be patient we shouldn't jump the gun. we shouldn't be complacent and listen to some of the noise that mission akccompliskoccomplisheds
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of that sort we have work ahead of us. russia's finance minister tells cnbc he's not in favor for tit-for-tat sanctions but says moscow will defend itself against further measures >> i very much hope these sanctions processes do not develop further. we need to talk. we need to find agreement. we need to look for ways out to solve problems, not by imposing sanctions but through political agreements. shares in ericsson are on course for their best day in almost ten years as the restructuring effort stems its latest quarterly losses. i'll speak to the chief executive in a few moments time. and uk financial regulators decide to fine barclays chief executive jeff staley in the whistle-blower case after an alleged breach of conduct, but they conclude he did not lack integrity. you can see on this summer
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morning it feel like in london that there's more heat on that map, a lot of red showing up there. the stoxx 600 down around a quarter of a percent to far this morning. we look at the individual markets behind some of those numbers, the ftse 100 up around a third of a percent in germany, the xetra dax strayedi i trading slightly down below the line same for the cac 40. tell low comecoms are doing pre. construction material up a third of a percent down at the bottom, interesting movement in energy stocks. oil and gas down nearly three quarters of a percent. the russian energy minister says the country is 99% in compliance with a global deal to cut oil
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output novak told an audience in jeddah, saudi arabia it would be 100% compliant in april. he said oil inventories in russia have fallen by almost 300 million barrels since the start of that agreement. saudi arabia's energy minister dismissed suggestions that riyadh is looking for $100 a barrel price he said that saudi authorities never have a price target, but he did say there is capacity to absorb higher oil prices steve sedgwick is at the opec and non-opec meeting in jeddah what can you tell us >> i can tell you this is supposed to be a compliance meeting as well, it's not like a full opec meeting. there's a lot of ministers here, a lot of non-opec ministers here as well, and it feels like a scaled-down opec meeting, and we just had the scrum as well where it was said the market has the
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ability to absorb these prices we are in the 70s for brent up from $40 a barrel since this declaration came into effect last year. they would not be drawn on opec looking for a certain price level as well. nobody thought this group could have good compliance, and they have as hannah wang was saying on "squawk box," they have had things working in their favor including abysmal volume from venezuela. they have had good compliance. they have the inventories down, and they have the price up it's four ticks so far for opec and non-opec allies. the question is what happens next are they where they need to be i spoke to the host of this meeting about that issue he said they're not there yet. let's listen in. >> the inventories have declined from the peak, but we have not established what is the
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appropriate level of inventories as we have seen repeatedly over the last few meetings. that work is in progress, that work identifying appropriate balance level is still in progress we intend to discuss it in june. we will draw on what the market thinks there will be experts and other participants in the opec seminar, which will be very important as usual but especially important this year as we calibrate what our target is for the remainder of 2018 so i don't want to jump to any conclusion i mentioned in my remarks that before the glut materialized, inventory levels were 2.6 billion. today they're still above 2.8%
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significantly above the peak in 2017 of 3.12, but still above the time when the glut started materializing. so my guidance to you all is to be patient to us also as producers we have to be patient. we shouldn't jump the gun. we shouldn't be complacent and listen to some noise that mission accomplished and things of that sort we still have work ahead of us the other thing to consider is that there are many variables that are at play, demand is uncertain. new supply is emerging at faster pace than we have anticipated in the short-term we've seen that from north
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america in particular. so we have to see post the low demand season early this year, we have to see how the market develops we have to calibrate our targets as i mentioned with appropriate metrics developed, and there will be more than one metric and we will decide in june and let you know >> that was the saudi energy minister and the chair of the jmmc talking to me in the scrum earlier. all the questions remained how long are all the participants of this, all 24 members, the key being saudi arabia and russia, how long are they committed to the current cut which are taking 1.8 million barrels off the table and getting global inventories down to the five-year average. are they going to change the parameters of the deal
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saudi has been talking about a 10 to 20-year deal, the russians have been talking about a timeless deal. if they don't have details, will the market smell a rat on that one as well. lots of big questions. i don't think as of yet opec has answered those questions here today. as i say, this is supposed to be a compliance meeting this feels like a mini opec. the real opec in june we'll be there as well. >> is there any indication from your time there that there are differences emerging from the people involved in the deals >> some people have been saying that mr. novak is looking for an exit in every single conversation i had with mr. novak over the last six months or so, there's been four or five of those, he has
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denied he's under pressure from the russian oil majors to get out of this deal denied there's a difference at all between his view and saudi arabia's once again today they arrived together again showing how close they are but as i say, i will speak to mr. novak later on if i see any hint of the russians looking for an exit strategy, we'll bring that to our viewers around the world very interesting, looking forward to that novak interview to see if there's a difference of opinion between hill and saudi arabia >> if you're following the oil price closely, head to our website to find out why one economist thinks the latest price surge is artificial. russia's foreign ministry issued a statement saying president trump has invited president putin to the white
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house. lavrov said trump brought up the issue several times during a phone call between the two men and that trump would be happy to visit moscow in return lavr my colleague, joumanna bercetche has been speaking to the russian finance minister on the sidelines of the imf and world bank spring meetings in washington she asked about the latest mention of possible u.s. sanctions and the impact they might have on russia's economy >> translator: indeed sanctions of any sort have a negative impact on economies. during today's discussion, finance ministers talked about this very fact you're right to say the recent round of sanctions imposed on russian companies have had a negative effect on the financial and currency markets the ruble has weakened, the financial markets have become more volatile, and further
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restrictions against russian companies. this style of sanctions have hit public companies operating in global markets this is bad news for our investors. nevertheless the situation is stabilizing. we can see the ruble gaining back which is leading to the normalization of the financial markets as well. this is to do with the fact that we have robust finances. we are expecting a budget surplus this year. inflation is low interest rates are going down, and the economy is growing so, these restrictions, while on the one hand having a negative impact on investors mood cannot change the positive trend of affecting economic growth and normal relations >> so you won't be updating your growth forecasts on the back of these sanctions? >> translator: undoubtedly our economic growth and budgetary forecasts are prepared with an
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adoption of sanctions and that sanctions will continue. this is why we're not looking at any forecasts because of the sanctions, though there's no doubt that the sanctions will negatively impact the companies that found themselves hit by restrictions we will use government support for companies that employ a lot of people. the rusal company employs 170,000 workers. we initishall assist them with liquidity. >> some of the clearing houses have announced they're no settling or transacting with some securities affected by the sanctions. that's a problem not only for transactions but for liquidity within russian corporates. are you expecting this ill-liquidity to have a lasting impact, especially given none of the settlement companies right now are settling these bonds >> there is no doubt this is going to affect our companies. as i mentioned earlier, we're
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looking for sources of liquidity to support these companies, to provide government assistance to these companies in order to avoid putting a strain on the labor market or additional difficulties on the sale of goods. in any case, the government is preparing all necessary measures >> is retaliating against the sanctions an option? >> as i already mentioned, we're not in favor of sanction swapping nevertheless our mps drafted legislation that would allow us to introduce certain restrictions both on exported goods and goods imported into the country. still any sanctions have any negative effect on state of economies, not only in rush sharks but also economies of its partner economies who have well established, stable links with the companies targeted by the sanctions. i hope these sanctions processes do not develop further we need to talk, find agreements, look for ways out in
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order to solve problems, not by imposing sanctions but through political agreements >> that was the russian finance minister talking to joumanna bercetche recently you can get in touch with us on twitter if you have views on russia, sanctions or oil markets, we're @streetsignscnbc. coming up, ericsson exceeds expectations we'll speak to the chief executive, borje ekholm. that's after this ea polk county is one of the counties that you don't think about very much. it's really not very important. i was in the stone ages as much as technology wise. and i would say i had nothing. you become a school teacher for one reason, you love kids. and so you don't have the same tools, you don't always believe you have the same...
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comparable bundle, for less. call today. welcome back to "street signs. there are clouds on the horizon for the world economy according to the ubs chairman. he says global growth may look positive now but he worries the current economic expansion could end in the next couple of years. >> we shouldn't kid ourselves. we are at the end of a long recovery two to three years from now at the latest some of these risks will materialize
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the recession risks are increasing the next one should be okay, but then there are dark clouds on the horizon. >> they also said the risk of a trade war between the u.s. and china is unlikely and said he thinks the current dispute will prompt a large debate about global trade rules >> redefining the rules of engagement after china moved from an emerging market economy to being the second largest world economy, soon overtaking the u.s. to be first largest economy, the rules of engaging with china at that stage of development is clearly something that is rightly questioned whether those rules of engagement can be the same as the ones in place 20 years ago so i think renegotiating that has some merits. >> they also talked about some market volatility in recent months >> some more volatility in the market is a natural way to be. we should get used to it many investors -- that was a surprise to me -- have taken off this re-emergence of volatility
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almost without notice. so the resilience of markets is something that is really striking at the moment i think we should take comfort that financial markets are now more stable, banks are in a much better place, much better capital, better liquidity planning >> this morning ericsson shares surged to the top of the stoxx 600 after beating margin expectations following cost reductions they retorted a lower than expected operating loss in the first quarter citing positive momentum in north america. we're joined by borje ekholm, chief executive of ericsson. you ended up losing 300 million swedish krona, less than analysts were predicting and less than last year. you are relieved by this, but why are you still losing money >> no, we have put a plan in place, or a new strategy in
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place, our new focused strategy. we did that last year. that includes turning around the performance of the company we have guided for 2020 that we'll be at 10% operating margin or higher than 10% we're tracking well on that plan that's really what we're aiming at delivering right now. >> talking about getting to 10% as an operating margin right now you're at negative 0.7 why should investors believe you can achieve that >> what we have done in our focused strategy hinges on -- or builds upon two things the first one is, of course, we're investing -- increasing investments in r & d for technology leadership. we're investing in our portfolio, in our cloud solutions, automation, analytics, but also investing in making our 4g portfolio
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competitive and an attraction solution for customers that's one part. the other part is that we have to be more cost efficient. we are taking costs out in services delivery. costs out in sg & a. when you put those two together, we can see we're making visible progress on the pathtowards achieving the plan for 2020. this is, of course, showing -- we're taking an important step during the first quarter of really showing that we are on the right path but we have more to do clearly to reach the objective there's no question. that's what you're pointing to >> you talk about savings there. let's be frank you cut 10,000 jobs last calendar year. you have a total work force around 1 106,000. you're aiming to make more than $1 billion worth of cost savings by the mid point of this year, yet you have activist investors saying you need to cut more
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costs and do so quickly. why is it not possible to move quickly on those cost cutting measures >> our strategy, it's important to remember what are we doing? we're putting a plan in place aimed at creating a stronger ericsson five to ten years out we're working backwards. that's why you see us investing in r & d, increasing investments in r & d for technology leadership technology leadership allows us to have unique solutions for our customers to solve their needs but it also allows us to lower our costs. so an important part of the strategy is actually expanding our investments in r & d we believe that's the only way to create a long-term sustainable growth margin. and that's ultimately what is going to be the most important thing. so everything we do including the cost efficiencies we are pursuing aims at creating a stronger company five-year yeat
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we are here to make sure ericsson is a successful company 5 to 10 years out. >> you mentioned time horizon and things you're doing. let's talk about things beyond your control how happy were you when zte got that seven-year ban from the u.s. administration? >> now we're in the process of analyzing what are the implications going to be here we need to work with our customers and see if they have issues, et cetera. so it's too early to say anything in reality we will win in the market with investments we do in r & d and solving customer needs. that's what we need to focus on. >> presumably this sounds like positive news for you guys >> you know, at the end of the day we should focus less on what our competitors do or what
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happens there. we need to win by investing in innovative solutions for the market >> you say you don't need to worry about competitors, but let's look at the pricing earn environment. you said the pricing environment was tough in china after the last quarter of results. has that improved over the last few months >> well, it is a very competitive market it's a competitive -- we have strong competitors no question. if we continue to invest in our product-leading portfolio, where we have a technology leadership in many areas, that's what is ultimately going to drive our success. here i would say ericsson as a company, it's all my colleagues in the company are showing the progress, and that we have an attractive portfolio today >> one final question. one big challenge remaining in your landscape, quite honestly telecoms companies have not been
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spending a huge amount of money on networks. when do you expect that capex environment, those decisions to start turning around from that transition of 4g to 5g >> we said we base our plan on the plan for 2020, on having no revenues from 5g that's not what we believe, but we think the traction with customers and discussion with customers will give us commercial revenues from g5g before 2020. all the efforts and plans we're doing doesn't include real upside from 5g we're taking all the costs in r & d. that's the prudent way to plan for us, you know, the way we operate, the plans we put in place doesn't assume a take up in the market. >> thank you very much for joining us seems like the market reacted favorably, your stock is up
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16.5% right now. that was borje ekholm. let's look at the chipmakers, a bit of a rout across the global tech sector, fears of the smartphone market. there are concerns that the global semiconductor sector may grow less than expected and the smartphone industry may have peaked talking of shares, those of reckitt benckiser are trading near the bottom of the stoxx 600. they reported lower than expected quarterly sales growth for the first quarter after further weakness in its foot care business. like for like sales grew 2% in the first quarter, lower than the 2.6% expected. and the company says it stands by its 2018 forecast of 13% to 14% revenue growth.
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shares in shire are also lower. they are down almost 4%. the company rejected a $63 billion offer from japan's takeda pharmaceutical. allergen said it was considering buying shire, but decided against it after pushback from shareholders ion group investment says it approached fidesso of a takeover share holds of the software company would be able to receive a full-year final and special dividend coming up on the show, more on barclays as british regulators conclude their investigation into the bank's boss, jeff staley. stay with us
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welcome back to "street signs.
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i'm willem marx. these are some of your headlines this morning >> eyes on the prize, not the price. saudi arabia's energy minister tells cnbc there's much work to be done to rebalance the oil market >> we have to be patient we shouldn't jump the gun. we shouldn't be complacent and listen to some of the noise that mission accomplished and things of that sort we have work ahead of us. russia's finance minister tells cnbc he's not in favor of tit-for-tat sanctions but says moscow will defend itself against further measures >> i very much hope these sanctions processes do not develop further. we need to talk. we need to find agreement. we need to look for ways out to solve problems, not by imposing sanctions but through political agreements. shares in ericsson are on course for their best day in almost ten years as the restructuring effort stems its latest quarterly losses.
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i'll speak to the chief executive in a few moments time. and uk financial regulators decide to fine barclays chief executive jeff staley in the whistle-blower case after an alleged breach of conduct, but they conclude he did not lack integrity. just to bring you more details on that story about barclays, the regulatory authority concluded their investigations into jes staley the watchdogs alleged attempting to identify a whistle-blower broke a breach of individual conduct rule number two. both have concluded the barclays boss should pay a penalty and they are not alleging he acted with a lack of integrity or that he lacks fitness or propriety to fulfill his role
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the bank has unanimous confidence in staley and continue to recommend him as director of the company. barclay shares have opened over 1.5% higher, but have then pared gains over the last hour looking at the european markets. the ftse 100 into positive territory. in germany, the xetra dax trading slightly below the flat line the same in paris with the cac 40 and the ftse mib is down 0.10%. let's look at the currency markets. we can see the euro weaker slightly against the dollar. the dollar is stronger against the yen. the pound weaker against the dollar the dollar stronger against the swiss franc. a lot of movement upwards. mark carney damped expectations of a may rate hike from the bank of england there is now a 40% chance of a
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hike, down from 70% this past week the bank of england governor pointed out recent data has been mixed and he expects a difference of opinions from policymakers at the next meeting. uk government bond prices jumped on the news. two-year and ten-year gilt yields fell. my colleague, joumanna bercetche is in washington and spoke with the dutch finance minister about the future of the eurozone and french president emanuel macron's reform proposals. >> we are committed to the european union and to the you're yo euro. we would like to see changes and reforms on these topics, such as the banking union. at the same time it's much more
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important we do this in a right way and in the right forum than to do it quickly so we might be able to take a next step in june, but it also might take longer. >> where do you stand on a euro-wide deposit guarantee insurance? >> we always said and continue to say we're in favor of the banking union. the banking union is a good idea it means a guarantee for the whole ecosphere of european banks. it's like fire insurance we have to do this step by step. that means before we run into a deposit guarantee system, we have to make sure we have risk reduction first and then only move into risk mutualization >> you spoke before about a debt restructuring mechanism, but mr. dimero said that is a red line as far as the french are
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concerned. how will you bridge the divide between the two? >> he's a great colleague, we have many interactions on these important issues we think it is an important element to have. it will make the system more robust and help us to be more robust during the next crisis. we don't know when that will hit us, but at some point it will hit us and then we have to be prepared joumanna also spoke to norway's finance minister who gave his views on the threat of a trade war between the u.s. and china. >> we are concerned as i think many other countries are that has to do with the fact -- if you look at this in a historical perspective, we know free trade agreements have lifted so many millions of people out of poverty. i think we feel if we meet protectionism with more protectionism. the only way to go ahead is to stick to open markets, free trade agreements, of course
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norway has a smaller economy we depend on this. we heavily depend on import. if we end up in sort of a trade war or -- they're losers the biggest losers are the average citizen of the world >> joumanna also sat down with spain's new economy minister and asked whether catalonia's economy had recovered following last year's controversial independence referendum and snap election which has resulted in so far no winner >> in catalonia we saw the last quarter of last year clearly some -- i would say some interruption of the growth now we have data, we are in april. the first quarter is behind us, and we see a complete
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normalization of the economic situation, the financial situation in catalonia i think the latest poll shows catalonia is against this radicalism the spanish government took seriously the constitutional order in spain, and we are forming a new regional government and start working to recompose what we think is the way with respect to the law and constitutional law in that part of the country >> economically there's not been a hit but there's been a hit politically because it's been difficult to pass the budget for this year. what are you going to do to bridge the gap between the budget that you want to pass and to get the basque party on your side >> the government presented a couple weeks ago to the parliament is important for different reasons. first of all it provides for a major reduction in deficit that's the first priority.
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we aim to keep reducing the public deficit and the debt to gdp ratio and to strengthen the spanish economy against this debt situation we had from the past because the budget underpins a robust rate of growth, we have stated in the macro economic scenario that goes with the budget, 2.7 % rate of growth, that's still very high one of the highest if not the highest in the largest economy in europe, according to the imf. third, because i think the budget provides for extra care for some groups that were left behind because of the various financial and social crisis we had, particularly pensions, some groups in society that need this kind of support. for all these three elements, i think it's a good budget there's no reason for political parties not to support it, and we're confident at the end of
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the day that we will get the parliamentary approval there has not been substantial criticisms, and i think we will have an approval in a few weeks of this budget >> are you not concerned again coming back to the political repercussions of what happened in catalonia that the popularity of the government has gone down quite a lot in the polls, and that that could undermine efforts to take certain reforms, especially in light of elections next year. >> only valid poll is the real elections. when you're not close to the actual date of elections, they all have a limited validity. we are still far from elections. what i can tell you is the economy is growing jobs have been created that investment by businesses is robust so everybody seems to be
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confident in the process of the spanish economy. private consumption by families, buying new houses, all of these elements are green so we still have time. i would not draw precise conclusions from any particular poll i think the government keeps clear its priorities let me say that the spanish economy is where it is today because of these reforms that have taken in the last few years. >> joumanna had a busy time in washington last night. she also spoke with the brazilian finance minister and asked him how political uncertainty was affecting brazil's economy >> brazil's economy is recovering we are in good shape we have growth and expectation around 3% this year. inflation is very low. we have interest rates at the lowest level we've seen in brazil the government is pretty much
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committed to le for ed tted to a we're confident the economy is moving in the right direction. it's true when we have elections, there are uncertainties, because we don't know who will win the election this can bring more volatility to the markets but my message is that brazil is very well prepared to deal with this scenario. we have strong international reserves, inflation under control, and we are moving in the right direction with the right policies >> it seems as though the international community has two concerns now one is the about the prospect of growth slowing down a bit. we're seeing it in some numbers for february the second thing is the state of the public finances, and recently there was an agency downgrade for brazil credited on the back of the public finances. what can you do between now and the elections to reassure international investors? >> we have to have in mind that
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brazil went through the worst recession we have seen gdp fell more than 7% between 2015 and 2016. last year we had 1% gdp growth and this year we are discussing whether the economy will grow 2.8% or 3% so that's the discussion today no one has doubted that the economy is recovering. when we look to the numbers, we see that all sectors are growing. investment is growing. so we are confident to say we're beginning to see a sustainable recovery so whether we are going to grow 3% or 2.8%, that's not the relevant issue the relevant issue is that the economy is growing and we see a sustainable growth that's what matters to me. with respect to the fiscal situation, we still have a lot of challenges ahead of us. we never denied that we are still running a primary deficit. so the key point is to -- and i
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think the rating agency understands that, as long as the country is committed to reforms. >> one of the big themes this year is the rise of protectionism and the possibility of potential trade war between the u.s. and not just china, but also other parts of the world one of the initial steps taken by the u.s. was applying extra tariffs on u.s. -- on chinese imports, the chinese came back with their own tariffs on soy coming from the u.s. given that brazil are the largest exporter of soy to china, for you is it a good thing these tariffs are applied? >> i look to the problem from a different perspective. brazil wants to become a more open economy we have to export more and import more. we have to increase our chain of commerce with the rest of the world. so for us, we think that having
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obstacles for having a free trade is not best way, the best bet. for us, though we could benefit from one specific situation, what we -- for an economy like brazil that wants to have more commercial relationship with other -- with the rest of the world, thprotectionism is not something we like. now, the gender pay gap in leading companies and female representation on company boards has dominated conversations over the last year. tanya breyer sat down with kate hudson and asked her what action she would like to see taken on the issue. >> i think it's all about action implementation now like anything you can have the idea. you can throw your fist in the air, keep fighting, keep marching
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at the end of the day you need to start implementing and actively put things forward. one of the things now for me in business, having a large business is women on boards. that's -- it's -- i get the chills when i think about it it does send a shiver up my spine. it makes me kind of angry that there are not women on -- enough women on boards. we do all these large companies that are in charge of very big decisions, and it's just a boys club with that you don't have an equal balance of understanding the culture inside of those businesses you know, that is where women are working. they need to be represented up at the top so to me it should be half and half, every board. even to get it to a quarter would be an achievement.
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i think that, you know, i'm also a great believer in our liberties, our freedom to choose so i would love to see these big companies start to implement those things you know, it will show something of integrity inside of your company. those are things to me that i would get behind and even inside of my own company. those are things that are -- we say you break the glass ceiling, the old cliche we're not even close so now it's action time, right it's fun it's an exciting time because so much of the vail has been lifted, so much has been revealed, it will continue to be revealed hopefully people will follow suit and support equality. >> you can watch the full-length
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cnbc conversation with kate hudson premiering tonight. we'll be back after this short break. crohn's disease. you're more than just a bathroom disease. you're a life of unpredictable symptoms. crohn's, you've tried to own us. but now it's our turn to take control with stelara® stelara® works differently for adults with moderately to severely active crohn's disease. studies showed relief and remission, with dosing every 8 weeks. stelara® may lower the ability of your immune system to fight infections and may increase your risk of infections and cancer. some serious infections require hospitalization. before treatment, get tested for tuberculosis. before or during treatment, always tell your doctor if you think you have an infection or have flu-like symptoms or sores, have had cancer, or develop any new skin growths, or if anyone in your house needs or recently had a vaccine. alert your doctor of new or worsening problems, including headaches, seizures, confusion, and vision problems. these may be signs of a rare, potentially fatal brain condition. some serious allergic reactions can occur.
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welcome back to "street signs. large internet companies could face further scrutiny from users after a data sharing scandal that rocked social media giant facebook that is according to a colleague at darktrace she's been speaking to akiko in hong kong. >> i think we're at a tipping point based on facebook. up until now the internet has been the wild, wild west it has not been regulated. now social media has shown us democracy itself can be called in question. people are starting to finally ask tough questions of the big internet companies that has not happened until recently i think now the internet is part of our every-day life.
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we have to see regulation. overall it's a good thing. >> the thinking is if the regulation doesn't follow over to the u.s., more companies will take the threat of cybercrime sears usely. we have a situation in europe where gdpr is about to take effect in a month, but i'm surprised by how many studies that aredone saying companies are not prepared yet >> it is almost like companies don't know where to start. so not necessarily a cost issue. >> let's take one part of gdpr you have to report a breach within 72 hours. most breaches we've been seeing have taken over a year to detect and report how do you get something like that down to 72 hours? >> let's talk about the evolving threat
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how has the use of cryptocurrencies changed the threat that people have to deal with >> i think cryptocurrencies are interesting. there's a lot of focus on how safe blockchain is, and blockchain itself has been secure then there's a new trend that we see employees using their own company's infrastructure to actually make a profit off of cryptocurrency in order to get in the game of cryptocurrency, you have to have access to a lot of computer servers. you'll see employees in a bank who work in the i.t. department take over some of the bank servers. third them in the floor boards of the data center so they can start crypto mining. >> you are in the business of
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providing solutions. we're talking about evolving threats. every time we catch up you talk about a new threat emerging. that requires investments about a company which requires more money. how do you balance the need to consistently stay ahead of the threat and keep investments going with also the need for profitab profitabilit profitability. >> the area of artificial intelligence is a game changer we have an artificial intelligence research lab that works with machine learning, mathematical algorithms, that's where we put the investment. that investment shows that it pays off most of our investments have been adding more people, opening more offices just to keep up with the demand around cybersecurity we have over 1,000 customers deployed, but that adds to more losses as well as you move forward, right >> it doesn't in the near-term, but if we wanted to stop that growth we could become
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profitable this market is such an important one to make an investment in and the growth we're seeing and the momentum we have experienced just keeps continuing. >> now u.s. president donald trump has hired former new york city mayor rudy giuliani as part of the legal team representing him in the russia investigation. mr. julianne -- mr. giuliani's career as a federal prosecutor means he has a long-standing relationship with the president and the special counsel, robert mueller who is overseeing that investigation. and leaked private memos written by james comey have revealed just days after taking office president trump raised concerns about his former u.s. national -- adviser, i should say, mike flynn. tracie potts is in washington for us this morning. anything you have seen in these
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memos that has been released presumably by members of congress over the last 24 hours that show fresh detail other than what we heard from james comey in his testimony and in his memoir last week >> all these interviews he's decision doing with his book tour as well there seemed to be an intense focus and concern about michael flynn in the early white house we learned that the president, according to comey, said that flynn had a serious judgment issue, and that the then chief of staff, reince priebus questioned whether or not there was surveillance happening on michael flynn at that time >> "worldwide exchange" is coming up next mr. stevens? this is your new name. this is your new house. and a perfectly inconspicuous suv. you must become invisible.
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oil front and center as the biggest oil ministers meet in saudi arabia we're headed there live. exodus at mike more high-level departures to report as the company tries to clean up its culture. and the ceo of america's biggest steel producer says the clock is ticking on tariffs. we'll bring you his exclusive comments this friday, april 20, 2018 "worldwide exchange" begins now.

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