Transcripts For CNBC Street Signs 20170913

The market moved. I am incredibly hopeful that well get the done by the end of the year Jpmorgan Ceo Jamie Dimon takes aim at president trumps policies, saying the u. S. Economy would be growing much faster if the administration got its act together. Ask any of new this audience what have regulations done theyre crippling businesses Small Business formation in this country, the United States of america, is less in a major recovery by 500,000 businesses embrace new opportunities. Thats the message from European Commission president Jeanclaude Juncker as he strikes a bullish tone in his state of the Union Address. The wind is back in the sails. We have now a window of opportunity, but it will not stay open forever. Welcome, everyone. Lets look at the energy complex. The oil market has coped well with the busy Hurricane Season thats the message from the International Energy agency. In its new report, the iea said crude prices were settling after recent severe weather. It added that Investor Sentiment pointed towards tightening markets and an expectation that oil prices will rise modestly. Lets bring in neil atkinson, head of the oil industry and markets division at the iea. Lovely to see you. Hurricanes harvey and uirma, thy will hit oil demand in the u. S. In Third Quarter how bad will that hit be it wont be taking over the quarter as a whole it wont be a huge hit what we have noticed in previous hurricanes back in 2005 with katrina and gustav is that there is a very, very sharp, fast rebound because for one thing oil is used in some of the Recovery Efforts to get back on their feet after the hurricane so its a short dip. And then its a sharp rebound. So its not likely to have lasting effects on demand or, indeed, on refinery activity or on production. There is a oneoff hit for one month, then operations get back to normal. Once they do normalize, once the dust settled here, u. S. Export volumes are going to increase those barrels are increasingly coming to the asian markets and are going to challenge the gulf suppliers. Is there going to be a price war in the asian context i dont think the u. S. Export volumes, though they will grow, theres no question of that, will grow that fast, that soon u. S. Exports to the far east are still, if not quite a novelty, still a relatively new phenomenon the u. S. Is finding its feet in that market and the refiners in the far east are getting used to u. S. Crudes. It will take some time before the u. S. Solidifies its presence in asia and starts to grow it significantly. Youre right, in the medium term the u. S. Will be another major competitor in the far east market and the mideastern producers, some african producers who are already supplying oil to the far east will face another more competition. Thats good for consumers in the far east, of course. Lets stay on that topic, neil, after demand in the high growth asian markets what are signals telling you about the outlook going into 2018 we think demand is strong, chinas demand is strong so we dont see cause for concern. One of the key points we make in our report that we just published is that in 2017 global oil demand, the asian economies as well as the western economies, growth has been revised upwards. Were now seeing Oil Demand Going up by 1. 6 Million Barrels a day in 2017, which is strong carrying forward into 2018, we see growth slightly lower, but not that much. The data will change, and growth in 18 of 1. 4 Million Barrels a day. On the demand front growth is pretty robust. In asia and elsewhere. Neil f we can take a step back and look at the supply picture globalry, inventory normalization, at what point in the cycle do we see meaningful rebalancing or is that already happening . Is the opec strategy working it is underway. We saw in the Second Quarter there was a stock draw what were seeing in the Third Quarter is oil products, particularly oil products in the oecd economies, stocks are falling dramatically, very close to the fiveyear average were seeing the volumes of oil, which are kept on ships, that is falling. Volumes of oil that we know are at sea in transit is also falling rapidly. Theres lots of indicators on the dashboard which points to the fact that stocks are falling what were waiting to see is greater clarity as more data comes along to confirm that suspicion. But the market itself seems to reach that conclusion because after the dust has settled, after the hurricanes, we have seen brent prices rise in the last week or so. Theyve been fairly solid. And the market is in backwardation. Thats a signal that the market is tightening and firmer prices are on the way we must emphasize we are not forecasting price levels as such, but we think firmer prices are here, slightly higher than today, but not much more than that what are the implications for opec if rebalancing is underway . Do they need to extend or even deepen supply cuts is their strategy working . Whether they want to deepen or extend the cuts is a matter entirely for them. If you look at todays balances, based on the current level of opec production, you see the market is rebalancing. But it is rebalancing more slowly than most people expected thats a fair point to make. Of course there are other factors that will come along since the opec deal was signed, which have perhaps complicated the picture. What i mean by that is the rapid growth in production weve seen this year from libya, nigeria, which were both perhaps quicker than most people expected. Those increase in production from those two countries has to dilute the impact of the opec cuts but the opec cuts themselves, theyve complied with the deal by about 86 , nearly 90 since the deal was struck. The ten nonopec countries supporting opec have seen compliance increase recently thats now well over 100 . So theyre doing pretty well all they can theres not a great deal more they can do within the current agreement. But whether they decide to extend the deal or deepen the deal or amend it in some way, thats for them and well wait and see what they decide to do neil, well leave it there. Pleasure talking to you. Neil atkinson from the iea now, Hurricane Irma has destroyed a quarter of the homes in florida keys area the extent of the hurricanes damage is becoming clear as those who had been evacuated start to return to their homes search and rescue teams are moving through the worst affected areas with emergency supplies speaking at cnbcs delivering alpha conference, Steven Mnuchin said the government is prepared to provide whatever aid necessary the first payment is a down payment. Well see what we need to spend more, but the president will make sure that whatever the federal government needs to contribute to this, we will do so there clearly is going to be an impact on gdp in the short run we will make it up in the long run as we rebuild. That will help gdp lets look at european markets. The opening calls were suggesting a softer session. We are seeing some signs of stability creep into the markets with the exception of the ftse yesterday that did stumble because of the stronger pound, led higher because of the Inflation Numbers for the month of august. We are seeing an extension of those declines on the ftse off by 50 points so there are clear implications here for the bank of england, broadly speaking no change expected when they meet tomorrow to review policy apple suppliers, if you can pivot to the sectors are the ones under pressure today on reports that the iphone x may ship later than expected the miners are weaker as well or have been. And its a fairly broadbased selloff. Thats the board showing the damage report in the chipmakers as a result of concerns that the iphone x may ship later than expected josh lipton has the details on the big launch of the new apple products we do have one more thing. Reporter with that apple introduced the world to the iphone x tim cook borrowing a phrase from his brepredecessor. In the steve jobs theater on apples new spaceshiplike campus cook called at it biggest leap forward since the original iphone, along with a 999 price tag. Apple unveiled a slew of new features on the iphone x, including facial recognition, camera upgrades, and no more home button, plus wireless charging, a feature already offered by samsung and others. The flagship phone was shipped november 3rd, a little later than usual, leading to some concerns about supply chain constraints ahead of the holidays, although in line with apples previous guidance. Apple also introduced an iphone 8, an 8 plus, which will be available later this month the iphone is critical to apples business it represents about 60 of the companys revenue. Big contributor to the campus you see behind me which was built for a reported 5 billion. But the iphone wasnt the only new product announced today. Apple tv has changed the way we experience television now were at the next major Inflection Point one that has the most stunning visuals ever, that are ideal for the large tv screens that are coming into our living rooms this will bring cinematic quality to virtually everything that you watch reporter the watch is also breaking free, in a sense, as a new version of the watch will have a Cellular Connection built in, allowing you to untether from your iphone apples stock dipped slightly on todays event announcements, in a sentiment a bit more bullish only 105 shopping days until christmas. Well have more on the release of the iphone x with Daniel Gleason later on in the show now, are you buying the new iphone get your comments in to us and follow us on twitter as well streetsignseurope cnbc and tweet me directly coming up, volatility can be good and bad according to jpmorgans Ceo Jamie Dimon well bring you his take after the break. All right. We have some deal flow for you bayer cut its stake in plastics business covestro from 41 to 32 . The german drugmaker plans to fully severtise with them in the medium term. And seadrill is filing for chapter 11 bankruptcy. Under the plan they will inject 1 billion of fresh capital into the country. Seadrill will continue daytoday operations as normal. Richem oshont shales beat forecast they said a Strong Performance in its jewelry business helped to drive results the makerers s of cartier did nt nominate a success toor to its watchmaking business Jpmorgan Ceo Jamie Dimon has a warning for those yearning for the return of volatility he told cnbc at delivering alpha that it can cause market moves that are good and bad. Business itself t will have episodic things. Of course those episodic things will be driven by volatility sometimes volatility is good sometimes its bad so dont look at volatility when it goes up, somebodys going do be sitting here saying the reason we got killed is because volatility caused by surprise. You could be on the wrong side of the market. When people want to sell, they want to sell to you. Dimon spoke about growth in the u. S. Economy saying it would be better if washington got itself into gear go ask anyone what regulation has done if we did things right, we would be going to 3 this growth by the way we had over the last eight years averaged less than 2 . Its half of the nornm. Its a long recovery but half of a normal recovery. Also speaking at delivering alpha, bridgewater boss ray dalio said delays to trumps reform agenda dampened the Growth Outlook were probably in a 2. 5 type of growth environment. The real question is to some extent whether you can unleash the productivity by some of the changes that a pro Business Environment can produce. I think there was more hope for that, for a pop in that productivity, structural changes. But i think now the problems of the conflicts have slowed all that down. So were looking at Something Like 2. 5 or 3 environment. But we have gotten past the worst of the whole deleveraging. Lets bring in mike bell, Global Market strategist now from jpmorgan Asset Management lovely to see you. First off, lets start with the u. S. Context the treasury secretarys comments about tax reform seem to give the green light to the market but it means valuations are even more stretched now how do we approach u. S. Equities i think the key thing, if you look at expectations for tax cuts, theyre not in analysts estimates. Theres been an assumption because 12month forward earnings have earnings, they are lower today than before the election what happened is time has passed so theyre looking at end of 18 estimates instead of 2017. If you dont get tax cuts delivered, theyre not factored in and they shouldnt have a negative effect. If they are delivered, it potentially delivers upside. If they cut tax to 25 for corporates that would add an extra 4 on top of u. S. Earnings, on temperature of what will already be healthy Earnings Growth the other key thing for u. S. Equities, if you look at the economic surprise indicator, its been in negative territory for quite some time. The direction of travel is upwards if that moves positive because expectations have come down, its easier to beat those expectations, once that turns positive, returns for the u. S. Equity market are positive were overweight u. S. Equities on that expectation. The growth expectations are low, but they can be beaten over the next few months. Are there some unintended consequences here of tax reform basically equating to late cycle economic stimulus, inflation may overshoot, the fed may have to act more aglegressiovely and th could chop off the recovery. We are firmly late cycle for the u. S. Economy so were positive on the outlook over the next 12 months. We think the probable of recession in the u. S. In the 12 month is low thats good for equities in the nearterm. Once you take that horizon out three, four years, the probability of recession looks higher i think its very much dependent on your time horizon in the nearterm, thats what matters to investors today, we think the outlook is higher. But we do think, as you say, particularly if you get fiscal stimulus at this point, its likely to boost the economy and that will start to mean that the fed do have to put Interest Rates up faster than the market is pricing but also wage growth will come through. Eventually those a combination of higher wages, higher Interest Rates weighs on corporate profitabilities, two, three years down the line that could cause a problem. Lets bring it back to monetary policy. Whats your baseline scenario for Balance Sheet normalization . Will it be announced and delivered at the fomc . Can we still talk about a december rate hike if we do see both of those, is the market ready for it . Will it be the catalyst for rerating . The market is ready for the Balance Sheet reduction announcement we know that will come so they will probably, as soon as october, start with a Balance Sheet reduction announcing in september. And then in terms of rate rises, we think that december is on the cards. It will depend on what happens with inflation if you look at the relationship between the ism Manufacturing Index and core inflation, you tend to see with about an 18month lag, you get a pick up in core inflation. Were at an Inflection Point where core inflation starts to rise if so, the fed will put rates up faster than the market can expect the market is pricing in one rate rise by the end of 2019 the fed is saying its more like seven. It may end up before somewhere in between closer to home, we have the bang of england, that policy review tomorrow. Inflation numbers for the month of august showed some acceleration will that sway the mpc or no changes is the consensus view still . I think theyre not going to raise rates this meeting and Going Forward from here it will be dependent on wage growth, not inflation. Higher inflation with out wage growth is deflationary t puts pressure on real income. So they wont view that as a reason to put Interest Rates up. However if you started to see companies reacting to higher inflation and putting wages up, not just well get the data out today on uk wage growth, if you start to see a sustained rise in wage pressure in the uk, then the bank of england would put rates up but we know rate rises this year, and then next year it will depend on what happens wage growth how constructive are you on the emerging markets we continue to see inflows into em largely driven by benign dollar, benign yield environment. Will the em continue to outperform on that basis the key thing is emerging market earnings are coming off a low base you compare westernings in with earnings in the u. S. , emerging markets were battered throughout the period of 2011 to a year ago. Then you have seen this recovery since then coming off low base, they have potential to deliver further Earnings Growth. One thing we would say is chinese growth would slow. From around the 7 level weve seen it is more likely to head down to 6 level that may cause headlines about china hard landing slowdown. We think theyll be overdone were talking about a gradual deceleration in the rate of growth still a healthy growth level for china but thats just something that is in the forecast thats important to be aware of mike, well wrap it up there. Thank you very much for dropping by mike bell, Global Market strategies, jpmorgan Asset Management. The uk government has referred the 21st century fox bid for sky to the competition authorities it creates another delay in the 12 billion takeover process with both companies saying theyre disappointing how long the process has taken. Karen bradley said she felt she had no choice but to refer the deal over concerns about Media Standards and ownership. The chinese firm link Global Logistics is poised to submit a bid to acquire the solvent Airline Air Berlin link global is the latest in a list of companies to express an interest in buying the airlines assets however air berlins attempts to sell itself suffered a setback yesterday when a number of pilots failed to turn up for work coming up on the show, sterling has hit a oneyear high against the dollar ahead of the latest uk unemployment figures well bring you those key numbers after the break. Prevagen helps your brainough n and actually improves memory. The secret is an ingredient originally discovered. In jellyfish. In clinical trials, prevagen has been shown to improve shortterm memory. Prevagen. The name to remember. Chances are, the last time yoyou got robbed. An, i know i got a loan 20 years ago, and i got robbed. Thats why i started lendingtree the only place you can compare up to 5 real offers side by side, for free. Its like shopping for hotels online, but our average customer can save twenty thousand dollars. At lendingtree, you know youre getting the best deal. So take the power back and come to lendingtree. Com, because at lendingtree when banks compete, you win. Do i use a toothpaste that whitens my teeth or. One thats good for my teeth . Now i dont have to choose my dentist told me about new crest whitening therapy. So, i tried it from crest 3d white comes new whitening therapy. Its our best whitening technology. Plus, it has a fortifying formula to protect your enamel. Now i get a whiter smile and healthy teeth, all in one. The 3d white collection from crest. Healthy, beautiful smiles for life. You wont see these folks they have businesses to run. They have passions to pursue. How do they avoid trips to the post office . Stamps. Com mail letters, ship packages, all the services of the post office right on your computer. Get a 4 week trial, plus 100 in extras including postage and a digital scale. Go to stamps. Com tv and never go to the post office again. Welcome back to street signs. Here are your headlines. An apple delay keeps the invest away shares in the tech giants european supplier slump after the Company Reveals the new iphone x will ship later than expected embrace new opportunities. Thats the latest from Jeanclaude Juncker as he strikes a bullish tone in his state of the Union Address the wind is back in your sails. We have now a window of opportunity. But it will not stay open forever. Jpmorgan Ceo Jamie Dimon takes aim at president trumps policies, saying the u. S. Economy would be growing much faster if the administration got its act together. Skfrnlg a ask any of new this audience what has regulation done its crippling Small Businesses. Lets bring you up to speed with the uk august unemployment numbers. They are downbeat. Sterling giving back a lot of gains we saw after the august Inflation Numbers released yesterday. The jobless rate, here is the headline, falls to its lowest since 1975 as pay growth lags. If we can bring you some of the Weekly Earnings numbers for the month of august. Up 2. 1 yearonyear in three months to july the poll was looking for 2. 3 . So again, that is just one snapshot of the jobless numbers pardon me, the employment numbers where we are seeing weakly earnings still not really cutting it in terms of expectations. Sterling on the defensive, but not by a great deal. 1. 2377 for cable elsewhere, lets look at the others, the dollar slightly weaker against the japanese yen. Cable we talked about, 1. 3277. And the swiss franc slightly firmer against the u. S. Dollar euro once again knocking on the door of 1. 20 european markets on the defensive in line with the opening calls. They have been swinging in and out of positive and negative territory. Its really the chipmakers that are bringing european equities down today with the company shun of texcep mib. Lets give an idea of how wall street will open the session the implied open is suggesting some weakness for the major equity session and for the major indices, despite the fact that we did see a strong session in the day before given the fact that the u. S. Treasury secretary is talking about tax reform. He seems to be confident that will move forward and there is momentum also the jobs openings came in at a record high some investors are inclined to take some money off the table. Chipmakers, we talked about them they are down across europe on the back of the apple launch on tuesday. This is because of the later than expected shipping date of the iphone x set for november. Apple ceo tim cook launched the iphone alongside a range of new and updated apple products joining us is Daniel Gleason and arjun is around the table with us good to see you. Daniel, lets start with you apple runs the risk of osborning its own product range what do you mean by that well, osborning is is a term used in the Technology Industry where if somebody preannounces or prereleareleases the next bg product of theirs it will dampen demand for the existing range. In this case the iphone x will hamper and damage the sales of the new iphone 8, which was also announced yesterday. Thats a big risk. The iphone launch events in late september have been a big sales event for apple. They always helped perk up the late q3 numbers and led to strong q4s what youll see now is a q3 that is down substantially on what it should have been or what it might have been expected to be of course the reverse with a higher q4 on the other side. Thats the risk of cannibaliization but the iphone x looks transformational will customers go for it of course its a radical redesign for apple, and it needed to be there were questions whether apple could innovate again and bring new products to market that consumers will ike. It seems to have done that with this device. I fell like it had been lagging samsung in the features department, now it hascome bac and done that. The price tag, theres a lot of talk around the price tag. The iphone company starts around 999 if you look at the iphone 7 plus, the highest configuration of that was only 33 less. Its not a huge price jump given this phone is on contracts in the uk and many other western markets, there could be appetite for it its wait and see. Its a late shipping date, perhaps people, like daniel said, will wait out for this price point is the real issue here are the features worth the price . I think you end up with many of the key features as ar yun saarjun said have been with other phones, the larger screen, the big thing apple is pushing that has not been on apple products is this a. R. Functionality and the face recognition system on the iphone x thats what apple is banking on. Is it going to convince people to spend thatt much more money im unsure but its a nice look product the big product is supply constraints. Theres a lot of talk that all the displays that apple is using, its a new technology for them them, it doesnt have as much leeway so, they will be a victim of their own success . Possibly. This will create maybe some resentment among customers apple customers are used to having always the best technology and best phone on the market and then highly restricted product, a lot of apple customers may be disappointed lets take this to the asian market, arjun, and china in particular huge market for apple. Growing market for apple at this price point, is it going to cut it with chinese consumers . The number 8 in china is a lucky number apple will be hoping to get a lot of luck in china this is an expensive phone in that market. We have seen others take a stranglehold in that market and take a grip on it. Theyve been able to bring out high spec phones at much lower price points thats why apple has struggled these guys are bringing out topend products but at a more compelling price point this iphone x model seems to appeal to ans pirratieaspiratiol market so does this mean we have reached an Inflection Point in apples strategy whereby they are targeting a higher yielding audience as opposed to mass Market Penetration theres two prongs to apples approach the first is definitely that you have the premium Smartphone Market saturated, so the only way to boost growth is to raise prices and produce a more premium product. At the same time there was big price cuts to the iphone 7 and some other iphones on the market so now you have an iphone retailing in u. S. Dollars at less than 500, 350 to the iphone se. Thats a big deal for india and other emerging markets a lot of customers wont be able to afford the iphone x or other premium devices, and the apple brand is hugely strong its a huge status symbol in a huge number of countries having that cheaper iphone, even if its two, three years out of date is going to be a compelling proposition for many people. I got kids, as long as its tamper proof, water proof and shock proof, thats the main thing for me arjun thank you very much, daniel thank you for your time thank you all right. President trump met with senators from both parties to discuss future cooperation on taxes. Trump has been ramping up the campaign to build support for tax reform but no detailed plan has yet been proposed by the white house or republican leaders. Speaking at cnbcs delivers alpha conference, Steve Mnuchin said that tax reform was trumps number one priority and insisted it will get passed this year in january we had a plan that was lined out working with congress that we thought we could get tax reform done by august, and that was based upon doing healthcare first and doing healthcare fast. I think as you know, healthcare took longer than we expected, we then got into the august recess, thats what pushed back tax reform the market moved, im now incredibly hopeful were going to get this done by the end of the year discussing the relationship between the Trump Administration and businesses, blackstone cofounder Steve Schwarzman explained the pressure he and other ceos came under in the wake of charlottesville. Virtually Anyone Running a Public Company on that group could not deal with the pressure and so, basically said, well, it seems pretty clear, you know, that really didnt want to have a melting ice cube type thing. People were under legitimate astonishing pressure seeing the emails that i got tell me you know, i was accused by people of being a nazi im jewish it struck you as absurd, right . It was absurd yeah. And i got hundreds of these things and so it was pretty clear that the country itself felt like it was going out of control we had a logical meeting, and decided that there was just too much pressure for too many people all running public companies. Speculation over gary cohns future in the Trump Administration was a top topic at the delivering alpha conference ray dalio said his departure would upset markets. If he was to leave, it would be terrible. Because it would be terrible in two dimensions it would undermine the future progress of economic reform and so on, and it would also represent a challenge in putting together administration. Hundreds of thousands of protesters have taken to the streets of france to campaign against president macrons plans to overhaul the labor code the demonstrations were largely nonviolent with the exception of a few minor incidents Frances Union says they will continue to stage protests throughout the autumn as the centrist Government Works to pass its labor market reform bill two of the biggest unions have distanced themselves from the action the wind is back in europes sails. That was the message from Jeanclaude Juncker during his state of the Union Address European Commission president used his speech to set out proposal force reforming the eurozone economy he said the eu plans to introduce new tougher antitrust rules in a move that could make it harder for foreign firms to buy european assets. Juncker backed president macrons call for the appointment of the eurozone finance minister. The European Commission president s did not mention brexit until the end of his speech, commenting on the Divorce Proceedings he said europe would con to prosper after the uk departs from the block. He added britons would reget their decision to leave the eu. Coming up, traces of radioactive gas have been found after north koreas latest nuclear test well have the latest on that story after the break. Theres a denture adhesive that holds strong until evening. Fixodent plus adhesives. Just one application gives you superior hold even at the end of the day fixodent. Strong more like natural teeth. Self driving cars and electric vehicles have been grabbing the attention at the frankfurt motor shows. And the ceo of bentley talked about the strength of consumer demand for low emission luxury vehicles heres what he to say. We are a company that serves the leaders of the world customers in our portfolio are achievers, through achievers in life they dont want to be outlaws. They want to be recognized and socially accepted. For this reason we have on the one side powerful engines like the w12, but we are also delivering in the future starting with the bentega a plugin hybrid car and in Strong Development of an all electric car. Which means bentley in the future will define the segment will it be difficult given the weight of the vehicle to have something Strong Enough to power the vehicle for a certain range . Technology is moving on the batteries are getting more compact and also a bit more lightweight. And we have a lot of possibilities inside Bentley Motors for lightweight design. So we think we find a good compromise for our customers as our customers have a lot of cars in the car park, a bentley customer owns eight cars we are sure we will satisfy them with an allelectric car that is exactly on his demand. Lets continue with kristoff. When you look around this motor show who has the most commercially viable strategy for electric cars, and one day will they rival tesla well, i think tesla has been the pioneer, and i think we all tip our hats to their courage, but its not the big guys, its the empire striking back wherever you look, you look at the big guys because theyre getting their stuff ready and rolling out portfolios so i think theyre pretty much picking up the pace now. Just give us a sense of what the german Auto Industry is doing on the ev front, and are they best of breed in terms of the new developments in Innovation Technology . Theyre not quite as strength in the market, but that also has to do with the German Market we did Market Research on innovation keenness of the german public, and theyre very, very September Cal when you look at the u. S. , when you look at china, they much more want the new stuff. When you look at the portfolio, the way the german manufacturers are integrating electricity, theyre rolling it out across the entire portfolio you can have an electric vegs of just about every car very, very soo soon is it worth talking about the carmakers that did not attend the motor show volvo, fiat pulled out this year why . They pulled out because in frankfurt you cant sell cars, you can only show cars thats one of the rules of the game but the ceos are all here. In the first couple of days, on the press days, on the specialist days, theyre all here so the industry gathering is 100 complete. Its just not everybody has the cars here. Im based in asia, so im fascinated to know what you think the japanese automakers, the likes of nissan and honda, et cetera, are bringing to the table in terms of evs and innovation on that score certainly toyota is ahead of the pack they have the situation in japan running on a Different Energy grid for them a fuel cell is a much more rational choice than for anybody based in europe or in the u. S. Honda has shown some very, very neat show cars over the last couple of years. I think theyre pretty much with it, theyre still working on the economics, and im quite sure they wont fall behind what did the good old british brands have to offer we played some tape from bentley earlier on there the Bentley Continental g. E. T. Drew a big crowd what did the brits bring to the table. Jaguar rand rover has been the most fascinating recovery story of the Automotive Industry as of late their show is really, really good and were looking at really beautiful cars, advanced technologies you can absolutely see the move. I like bentleys idea of going electric in super luxury so i think theyre really with it and spending lots of money on new markets. And we cant ignore the politics, and the car industry in Continental Europe has a lot of skin in the game in terms of the uk market what that offers still a lot of uncertainty amongst the european and japanese carmakers about the entire Brexit Process and what the end game is there. Did you get any clarity at all from them . Yes, we got clarity that they see the uncertainty. Uncertainty is absolutely poisonous. When youre uncertain you do not take billion dollar investment decisions. So the longer the uncertainty will be, the longer the negotiations will drag on, the higher the risk is that someone will make a rash, drastic move at one point you cant drag it out much longer we know there are feverish talks on how to handle the situation well leave it there, sir thank you very much for your time today south korean Officials Say traces of radioactive gas are confirmed to be from a nuclear test earlier this month. The south Korean Nuclear Safety Commission could not confirm the test was for a Hydrogen Bomb as pyongyang claims this as the u. N. Security council steps up sanctions after the regime conducted a sixth nuclear test earlier this month. Speaking at delivering alpha conference in new york, top executives commented on the Korean Peninsula crisis. I think this can have geopolitical implications. In other words, what korea can reshape what the whole asian region is like countries in that region think who am i going to be affiliated with how does that work so this will have implications all through the region the relationship with the north koreans is not good, and it has not been good for a very long time. So america feels theyre close allies i do not believe thats true at all. The chinese do not want to nuclearize the Korean Peninsula. Theyre serious about that they also dont want to have a shooting war occur and have 20 million refugees from north korea going to china so, it is complicated for them as to what to do lets look at european markets. Just review the session broadly. We are seeing some softness with the exception of the ftse mib. I think the store i have about the apple suppliers and technology they are weaker today. Reports that the iphone x may ship later than expected lets talk about the ftse 100 as well sterling is on the back foot retreating from the oneyear high and there was a miss on uk wage growth. Sterling on the defensive as a result of that and all of this will have implications for the bank of england and the inflation forecast, especially given the fact that august Inflation Numbers were quite sticky, were quite strong. That could be some food for thought and could well divide the folks on the mpc broadly consensus is for no change lets look at u. S. Futures it was a strong session overnight. Treasury secretary mnuchin sounded confident about getting tax reform through jolts were strong as well. And i think this will be about the data we got state side cpi coming up later on this week and implications for the fomc. Thats it for the show im sri jegarajah. Worldwide exchange is up next. My name is jeff sheldon, and im the founder of ugmonk. Before shipstation it was crazy. Its great when you see a hundred orders come in, a hundred orders come in, but then you realize ive got a hundred orders i have to ship out. Shipstation streamlined that wh the order data, the weights of , everything is seamlessly put into shipstation, so when we print the shipping ll everythings pretty much done. Its so much easier so now, were ready, bring on t. Shipstation. The number one ch of online sellers. Go to shipstation. Com tv and get two months free. A rally triple play. The dow, nasdaq and s p 500 all setting new records. A look at whats behind those big moves straight ahead x marks the spot. Apple unveiling the i phone 10, the products redesign if a decade will the 11,000 price tag deter buyers and jamie dimon sounds off on washington, bit cocoin and much more highlights from the delivering alpha conference coming up its wednesday, september 13, 2017, Worldwide Exchange begins now