We showed objectives and we did it. Every dividend helps tesco restarts its shareholder payout after nearly three years of absence as the largest retailer in europe sees strong growth in sales and profit we looked at how we could become more competitive for customers. The volume increased that we could give suppliers, we changed some of the business shape and the costs. The eu is expected to slap amazon with hundreds of millions of euros in back taxes as it concludes its investigation into the tax arrangement with luxembourg good morning great to have you with us on the show once again. Just want to get through some data talking about the eurozone pmis for the month of september the pmi print came in at 55. 7. It seems according to market, the firms in the eurozone built up a big backlog of work, thats encouraging. We had a couple of individual pmis this morning from spain, for example, very interesting given the latest political woes in the country it was the september number, it didnt quite incorporate the events of the last one or two weeks that number at 56. 7. That was stronger than expected. The french number, 57 for the services side, that was punchy germany a sixmonth high, that was in line with expectations as well quick look at the heat map in europe the stoxx 600 is off by just a smidge off by 0. 1 . Let me show you what the markets are doing one by one youll see the ibex is underperforming quite a bit. Well show you that in a second. The ftse mib knin italy is off y 1 the cac is off by 0. 2 we are seeing green when it comes to germany vw is doing better given the constructive tone when it came to auto sales in the u. S tesco was initially higher, now hoe lower. First, the sectors, this is the picture. Banks, some of the cyclicals underw underperforming. This comes back to spain autos this is down to the strong u. S. Figures overnight, up by 0. 8 when it comes to spanish yields, the spanish tenyear bond yield at the highest level since march. Were now, if we can bring up those levels i think 1. 76 , thats for the tenyear 1. 785 up by quite a bit. Today youre seeing that spike when it comes to the ibex, we are down by 1. 7 we are now trading at the lowest, 1. 9 , the lowest levels in many, many months given the latest news flow this is as Spains King Felipe slammed Catalan Leaders for what he says is an illegal attempt to proclaim independence. In a rare intervention he condemned catalan authorities for breaki ining the law and creating division in society. Translator catalan Regional Government has broken democratic principles of law and undermined Catalan Society. They even divided it today Catalan Society is fractured and confronted these authorities despised the affections and solidarity feelings that will unite all spaniards. They can even jeopardize the economic and social stability of catalonia and spain. Lets give the country the government it needs. Thats what theresa may is expected to say later today in manchester the british Prime Minister will call for unity within her ranks, following calls to sack borery jo Boris Johnson for not toeing the line on brexit Boris Johnson has urged his party to let the lion roar, amid calls for his sacking, the British Foreign secretary rebuffed claims of cabinet disunity telling cabinet members he was fully behind theresa may theresa may won she won more votes than any party leader and took this party to the highest share of the vote in any election in the last 25 years. The whole country owes her a debt for her steadfastness in taking britain forward as she will to a great brexit deal based on that florence speech on whose every syllable i can tell you the whole cabinet is united. Lets get back to the top Corporate News tesco will pay its first dividend in almost three years first half numbers proved its turnaround plan was firmly on track. Profit for the period jumped 27 . Uk like for like sales were also up the co called the new dividend a significant milestone in the recovery of the business willem joins us on the set you talked to the cfo. Were off by 1. 6 at this time, early on we were up by 1 , 2 why do you think now that disappointment is setting in theres no clarity as to why thats dipping back down after such a positive initial reaction these Sales Numbers are very, very positive compared to previous ones. Like for like sales increasing they have seen a massive turn around since 2014 since they had that massive tuscandal. Right now the strategy seems to be one of keeping prices down. Thats the focus of my first question when i sat down with alan stewart, how are they doing that in the face of rising inflation . Lets listen to what he said about supplies in particular we looked at how we could improve profitability and increase operating margin and become more competitive for customers. We looked at three things. The volume increase that we could give our suppliers there was a mix benefit by changing the business shape and the costs. In terms of the specific focus on suppliers, inflation is something which weve really worked with our suppliers to mitigate as much as possible were running at about 100 basis points below our the rest of the markets that were not passing on as much inflation from a supply perspective, more than 100 of our suppliers have seen more than double volumes. So, as we have improved our business, so we see our suppliers benefiting well continue to work with them in terms of trying to mitigate inflation. As part of your costcutting drive, you have to look at overheads. Over the summer you made announcements about a couple thousand workers losing jobs is there still more room for improvement . Is there more cuts you can make . In terms of the office we finished with that we were clear on that. If we look at the 1. 5 billion of cost savings that we targeted, were just under 500 million of that that we achieved. There are other areas, but much more do with the efficiency with which we run the business rather than Head Office Costs as we go forward. Credit suisse analysts think tesco will face a third of losses following the emerge sense of lidl, based on store location do you agree with that analysis . We have just under 30 market share today. What i guess if you assume that the german retailers will take some market share, that is just a straight pass through. From our perspective, we feel if we are more competitive and giving customers a better offer, whether in terms of quality, range, whether its in terms of price, then we would seek to do better than that in our large stores, our extras, we have seen a 1. 6 like for like increase. So what is clear is when we give customers the right price, they respond and they shop at tesco i also talked to him about things like brexit he is watching those negotiations closely they have seen with the weakening of the pound that that has impacted things. He pointed out with that and with things like the supply chain that a fall back on rules might have, that it is not just tesco, its all the supermarket chains in the same boat. Because of that, do they have to raise prices . He says no. He says the real point to focus on is with suppliers they improved so much, they are not so happy about keeping prices down 100 basis points above where other people are they feel comfortable with that. 100 basis points below where others are his argument is if they maintain this growth in volumes, suppliers wont complain much. One interesting thing there that we touched on and ive been reading analysis over the last couple of days thats fascinating is about the growth of lidl and aldi and what it meant for the big four in the uk, what the analysts very focus on is location of stores i dont know how you shop. I tend to go to which ever is closest. Increasingly online, to be honest outside of london, when you have to drive to your supermarket, proximity is important. Tesco at moment does not have a lot of aldis and little close by so one of the focuses at credit suisse, is aldi and lidl have room to grow in those areas. Another thing thats interesting is looking at market share and whether they will lose that, how that will impact the bottom line it is a concern for the major uk super markets. He does not think it will disproportionally affect tesco tesco not the only one dealing with that problem, sainsbury and the other big four as well. Email the show, streetsignseurope cnbc. Com you can also find us on twitter, streetsignseurope cnbc and carolincnbc is my handle. King salman has become the first energy monarch to visit russia as energy ties between the two countries owgr well look at that when we come back nge, causing a lack of sharpness, or even trouble with recall. Thankfully, the breakthrough in prevagen helps your brain 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. My friend susie cracks and hello sensitive bladder. Ring a bell . Then you have to try always discreet. I didnt think protection this thin could work. But the super absorbent core turns liquid to gel. For incredible protection. Thats surprisingly thin. So its out of sight. And out of mind. Always discreet. For bladder leaks. Also in liners. No, im scheduling time to go to the bank to get a mortgage. Ugh, youre using a vacation day to go to the bank . I know, right . Just go to lendingtree dot com. Get up to five loan offers to compare side by side for free. Wow, thats great. Wait, how did you get in my kitchen . Oh, i followed a raccoon in through your doggie door. [gasps] get a Better Mortgage on your schedule. Not the banks. Lendingtree. When banks compete, you win. Just think of em as a big cat. With rabies. Welcome back to the show want to remind you whats happening in spain given the tension over the referendum over the weekend, were seeing a further rise in borrowing costs for the spanish country. Were seeing the spanish tenyear bond yield inching higher to 1. 786 now trading at the highest levels since march. The spreads against germany also widening want to show you whats happening with the equity markets. Theyre continuing to sell off 2. 4 now steepening those losses here after yesterday we actually closed flat. Its worth noting two months ago the ibex was the best performing benchmark in europe so far this year things have changed. I just want to bring you the latest coming from catalonia the leader there says he will declare independence once all official results are counted thats what he said in a bbc interview. He said the vote count will finish by the end of the week and the region will act over the weekend or early next week he said he has not spoken to the Spanish Government and the call for mediation has been ignored he said ber vintervention by th government would be a mistake. Thats mr. Puigdemont this morning. Lets get european perspective on ththis. Joining us now is the former italian Prime Minister thank you so much for giving us your time this morning theres two ways this conflict could go we go further into chaos or this could be mediated diplomatically and peacefully which way do you think it will go i think the second one is necessary to find a solution its clear that legally what happened and the referendum and even possible declaration of independence is out of the rule of law but its also true that its a necessity to have politics, a political solution this is why we all urge a solution, political solution, dialogue its clear that europe needs a solution and europe needs to avoid this we need really we strongly need to avoid this we were exiting, we were getting out from the main political problems in europe now this catalonian issue risks to bring a new virus, and this is why we urge a solution. Isnt it just Wishful Thinking at this point it seems theres a deadlock between the two sides, catalonia and the Central Government in madrid according to the catalonian leader this morning, he said he has not spoken for the Spanish Government, and that calls for mediation have been ignored. Why do you think it is europe has not been stepping in here. Why are they not taking an active lead or role now . Its clear that legally its an internal affairs of spain its impossible not to consider this problem as an internal problem. All the other European Countries risk to have exactly the same problem. In italy we face similar trends of seeking more autonomy or more independence its clear that it is an internal problem we need a political solution at the spanish level, and its unconceivable for pat locatalonn government to say they do not recognize the Spanish Government they are out of the rule of law for declaring independence what the king said yesterday evening was very clear at the same time the only legal voice, the only Legal Framework cant find the final solution. This is why i think its time for National Authorities and for the National Government to move and to find a peaceful solution. You talked before about not letting the virus back into europe it seems like now after a year of populist movement within europe, now with those ongoing protests in catalonia, we have not quite become the healthy patient again that we were hoping to be now it seems like germanys force has been weakened somewhat given the elections a week ago do you feel further integration, further stability of europe might be threatened . We are and we have unique window of opportunity in europe. After the french and the german elections, with this clear victory of macron in france and merkel in germany, this window of opportunity means theres clear moment, clear momentum to rule some of the main problems of europe, security migrations, the governance of europe and the completion of monetary union, Economic Union and banking union. It is time to go it is time to run these problems this is why catalonian backlash would be a disaster in this moment we need stability. We need to avoid to come back to a virus. This is why its really, really mostly urgent today to avoid this in catalonia and move towards peaceful solution. The next months will be decided for europe my thought is that if we miss this opportunity, the next months with merkel, macron so strong after the elections, with the populist defeated in france, can 13 in germany, but the opposition at the same time we have this opportunity. We cant miss this opportunity i think it is a shame if we miss this opportunity for the longest time the major source of worry in the eurozone was italy, given the high number of mpls, the dysfunctional politics that we saw there. Now two weeks ago we saw the Party Conference of the fivestar movement and a new candidate rising, who seems very moderate is there still a populist threat coming from italy . What do you make of a personality like his im more optimistic on italy for two reasons. The first is about economic figures. Italy was a problem at the beginning of the year for the financial problems and banking problems today we are optimistic on overcoming these problems. The figures on the economy is a good first step. Its not a victory but a first step that is important to recognize. Second, because five stars, that is Opposition Movement and i hope they will stay opposition, but at the same time they changed their thought on europe. Now theyre not more discussing on how to get out from the euro, how to destroy europe and the euro thats for what i think an important evolution, even if i hope that we will stay at the position at the next elections just want to get your thoughts on the u. S. President , mr. Trump. Its been a rocky first year for him, first nine months, i would say. It seems germany especially as the leader of the eurozone has tried to distance themselves from the u. S. , from donald trump. Can current pull its weight when it comes to Global Affairs trying to side step what mr. Trump is doing this is why i spoke and i said a window of opportunity for europe after 2016, in which brexit first and then trump were a threat to the european integration and even to the european life, today we have to say brexit and trump were incredibly, i would say, paradoxically became a boost for european integration today europe is in good shape in comparison with last year. I think because of this threat, trump becomes a threat, and became a strong way for europe to discuss about how to survive. Brexit was the same. When we were discussing how to survive, we found reasons to be united again for the future. This is why today we need everything but this catalonian crisis, this spanish backlash. Who in the future will be calling the shots in europe . Do you think its still Angela Merkel do you think it could be mr. Macron who put forth his grand vision for europe . That might be hampered by the inflexibility of Angela Merkel and her coalition talks. What do you make of mr. Macron his popularity ratings have fallen somewhat. The honeymoon period is over somewhat do you think he has what it takes to integrate further. I think macrons speech last week was a very, very pro european concise, strong message full of hope and full of realism. Very pragmatic and full of hope. I think the couple, macron and merkel, if this couple works in an inclusive way, including italy, spain, other Founding Fathers of the European Union, if they work to avoid in an exclusive way, im optimistic for the future of europe i think they can have the strength and what jlegitimacy merkel is in her fourth term she knows she has to leave a legacy, and macron is strong in france with a large, clear majority what is very important, macron had a strong pro european mandate because the voters in france, in the second turn of elections against marine le pen, they voted for macron because they voted for france, pro european the pro european mandate is a great asset for macron and france and germany mr. Letta, thank you for your time the former Prime Minister of italy joining us. Still coming up, recovering from a giant quake we will speak to the head of the Quantitative InvestmentStrategies Group agoman t ld sachs Asset Management well im gone welcome back to street signs. Im carolin roth these are your headlines the spanish market underperforms for the third day in a row as catalonias leader said intervention by madrid would be a mistake, but the economy minister says Regional Bank ministers have nothing to fear. Pirelli shares sink to the bottom of the italian market as the tiremaker returns to the index after two years away it was our target we showed our partners objectives and we did it every dividend helps tesco restarts its shareholder payout after nearly three years of absence as the largest retailer in europe sees strong growth in sales and profit we looked at how we could increase profitabilities and become more competitive for customers. The volume increased that we could give suppliers, there was a mixed benefit with changing business shape and there was the costs. The eu is expected to slap amazon with hundreds of millions of euros in back taxes as it concludes its investigation into the tax arrangement with luxembourg want to show you the sterling dollar at this time hitting a days high of this is now 1. 3269 this is because of better than expected uk september services pmi. Also the manufacturing and the construction prints in the last three days were somewhat underwhelming. Sterling dollar coming to 1. 3272 european markets are slightly under market with the exception of the xetra dax, which is up 0. 14 . Thats because of automakers doing better than expected the ftse 100 off by five, six points tesco is not helping now, even though it resumed its dividend and first half numbers were better than expected shares have turned around in the morning session. They are off by 1. 5 to 2 were seeing red on the cac 40 and the ftse mib the deep underperformer, thats the spanish market were off by 2 . Seemingly thats the session lows today and just a couple weeks ago spain was still the best performer when it came to the pan european markets since weve seen that referendum and the heavy handed intervention coming from madrid. We have seen that market suffer, specifically the banking stocks doing door poorly all falling hard to 3 to 5 king felipe intervened overnight and we had the Catalan Leader saying that he will be calling for independence in the next few days thats very unsettling to spanish investors. Despite growing 17 over the past six years, quant investing still on the represents 7 of assets under management, thats according to morgan stanley. For some investors the transparency of quant has proven to be a hit for customers. The ceo of mangroup outlined what attracted him to the approach quant strategies are the most transparent thing out there. We know exactly and we can tell our clients exactly what computer ser doiis doing today d also tomorrow and the next day you know exactly what it will do its totally transparent the raeality is humans are hard to predict gemana joins us with a special guest. Take it away good morning im here with gary chropuvka, head of quantitative technologies welcome. Thanks for having me. One thing, theres been a big growth in the number of Quantitative Investment funds out there. Growing from 400 billion to 800 billion over the past five years, but returns are diminishing. Do you think were getting to the point where the market is becoming too saturated i would say i think some of the growth were seeing, some of the quant Investment Strategies is because performance has been strong we dont think performance is diminishing. Frankly i think the ability to merge Portfolio Management skills and Technology Acumen has created the ability to take advantage of this massive revolution going on around big data thats ban kreen a critical key how we employed technology to deliver strong results for clients. Big data revolutionizing how we navigate these markets. Where do you think the edge comes from nowadays in Quantitative Investment . Is it incorporating big elements of data and Machine Learning or other things as well the Machine Learning is very, very helpful to get at some of the sentiment and trends going in when you think about markets and investing, its always about good Quality Companies at a cheap price. Also trying to capture some of that sentiment in trends we have always been grounded by fundamentals thats been helpful. Over the last five years fundamentals have not worked so well so capitalizing on those trends in the market, looking at news, what Company Filings are saying in their words and Training Computers to help us read through that and create connections that a lot of investors cant see or not immediately. So moving from a model where youre telling the computer what to do to the computer making its own decisions, in a situation where things go wrong, who bears the blame . Its a great question we, as portfolio managers, are the ones that are fully accountable for everything that goes on. We use computers as tools and to help us guide. At the end of the day youre fully accountable in terms of being a portfolio manager. I think its so critical when you think about how you spend resources in terms of research, what problems youre asking computers to help you solve, and marrying that with events that take place, that computers have not been trained on things like natural disasters. You need market practitioner insights to navigate or risk manage when those situations occur. Thats very important in terms of usefulness of computers we had a long shatt wichat W Andrew Wilson about macro and inflection points. What are some of the signals that your own Quantitative Strategies are pointing to now over the last month weve seen a big reversal from kind of the growth to value trade that has been playing out some of which is related to some budget on the trump side were seeing less on the Technology Front more on the Consumer Staples the financial side has been seeing an interesting trend. Small cap to large cap has been an interesting trend finally, one last question. How quickly will quant funds start incorporating big data i know its a recent phenomenon. How easy is it to incorporate that infrastructure . I think it may be much easier for quant funds. Weve been doing it for many years in terms of coming up with the analytical platform to come up with that we incorporate new data every day. The hurdles are high in terms of if people want to be a quantmental or Fund Investor theres not only the understanding of how to be a quantitative investor but also making sure its in your culture. Were incorporating new sources of data every day. Thats why we think this is such an exciting field. Thank you very much that was gary chropuvka, head of Quantitative Investment strategies at gsam thats all from us for today back to you in the studio. Well see you again tomorrow thank you very much for that. Excellent interview. Shares in european automakers are trading higher after u. S. Car sales hit a 12year high in september as annualized sales topped 18. 6 million vehicles thats a gain of nearly 1 million from the year before dealers say the part of the shift higher came from Hurricane Harvey as drivers replaced storm damaged cars. Reporter with an estimated 800,000 to 1 million vehicles destroyed by hurricanes, automakers knew storm victims would be eager to buy replacement cars and trucks. That drove much stronger than expected sales in september for toyota, gm and ford. When Insurance Adjusters tallied up the number of totaled vehicles last month and started cutting claim checks for storm victims, much of that insurance money went towards down payments on bigger or expensive vehicles, primarily trucks and suvs. Thats one reason ford fseries sales surged 20 gm saw record demand for some of its crossover utility vehicles, and toyotas suv vesales popped overall, september was the strongest month this year for auto sales, which helped automakers bring down their inventories. The question now is whether there was a brief increase in demand spurred by the hurricanes, or if it shows more strength for the economy as a whole. With the Unemployment Rate near its lowest point in years, many believe car buyers should continue streaming into dealerships. There is one other factor that could keep auto dealers busy through the end of the year. Its strong consumer confidence. If it remains high, thats a good indication we could see solid auto sales through december staying in the u. S. , the u. S. Dollar has fallen back from a 1. 5 month high amid speculation that the next chair of the fed could be less hawkish than expected. According to a report in politico, Steven Mnuchin favors fed governor Jerome Powell over kevin warsh. Both were interviewed at the white house last week. Jeffrey gundlach thinks he knows who the next fed chair will be speaking in los angeles, he thinks Neel Kashkari will be President Trumps pick i have a nonconsensus point of view again. I think it will be Neel Kashkari who is kind of a not a trained ph. D. Economist, but the most easy money guy in the Federal Reserve system today, Neel Kashkari. Thats why i think he might win. He wrote an essay yesterday, that was published, basically talking about why we should have more easy money policies i think the president , if he has a chance of retaining his base, he needs to deliver something to the disaffected middle class a stronger dollar is not good for achieving that agenda. A weak dollar is positive. Easy money is more a friend of a weak dollar than tight money lets show you how the currency markets are reacting to that speculation about who the next fed chair will be or wont be the dollar is under pressure as we said before moving off those 1 1 2 month highs. Markets have largely priced in the fed rate hike in december. Everyone is focusing on the trajectory there after euro Dollar Holding Steady at 1. 1759 u. S. Futures look like this. This is after the dow hit another record high in yesterdays closing session. Fiveday winning streak now. The s p also finishing 0. 2 higher that was also a record close the dow jones seen extending that gain today to the tune of 24 points at the open. The s p 500 seen falling back by a smidge the nasdaq off by 2 points Airline Stocks doing well in yesterdays trading session. Also want to tell you whats happening with the Oil Price Brent crude and wti lower. Brent crude at 55. 53 after that spectacular rally that we saw in september. Wti crude around that 50 level saudi arabia is sending its largest ever delegation to russia it includes king salomon it signifies the increasingly close Strategic Partnership between the two states the two nations announced a 1 billion fund to invest in Energy Projects geoff is live from moscow where he has been speaking to the Hungarian Foreign minister geoff . Absolutely. Very interesting i had the opportunity to sit down with the foreign minister of hungary i asked him about the situation in catalonia ahead of the eu parliamentary debate his message double standards hungary, as we know, has been threatened with article seven, which would impose a freeze on voting rights. He argued that the eu has been much slower to condemn spanish action in catalonia. I went on to ask about why he is here inmoscow. Hungary has a relatively warm relationship with moss cocow compared to other former soviet bloc countries i asked him whether he was the closest country in europe to moscow he suggested there were double standards for other European Countries in their relationships with this country right now. Germany was the one that came to his mind lets have a listen to what he had to say you just have to put facts on the table. If you look at the list of companies which will be together with gazprom, not hungarian, not even Central European companies. This is a robust business to build such a pipeline. European commission and the European Court just approved that gazprom can take full advantage of the opal pipeline in germany or gazprom has booked all the capacities of the german czech and czech slovakiaen interconnectors. So theres a robust cooperation, but when theres political debates, they sometimes forget about that or try to forget about that but we, you know, were aware of that of course i also asked him about the effectiveness of sanctions currently given that europe continues to impose sanctions on russia over its actions in ukraine. Of course within the last few months weve seen the americans introduce another layer of sanctions on moscow. Lets hear what he had to say about the effectiveness of those sanctions. I would like to make one thing, once again, very clear. Hungary has never broke the european unity regarding sanctions, and we will never break european unity regarding sanctions. At the same time we have the opinion if you look at the issue and especially the impact and outcome of the sanctions in a rational way, no emotions, no politics, just rational, then you see that neither the political nor the economy goes, which has been attached to the sanctions by the European Union were successful. They were totally unsuccessful because russia is not only there because of economy, because of many harms to our own economies. Politically speaking we are no forward progress regarding the minsk agreement. Hungary has always stood for the integrity, sovereignty of ukraine. They made a change on their law and education, which is a shame, which is unacceptable, violates all International Obligations of the ukrainians and the bilateral treaties regardless of that, we have always been and will always be supportive to their territory integrity and sovereignty. But but the sanctions prove to be unsuccessful if we are rational enough. Once again, we will never break the unity when it comes to the decision about the rollover. Perhaps not surprising that the hungarians feel that sanctions have not been that effective given that theyre one of the members of the eu that has the most public and strongest relationship with moscow at this point of course a significant consumer of gazprom gas just worth pointing out, the key issue here ultimately is the direction that the opec agreement goes in. And whether this recent rally in the oil price is sustainable we have a significant saudi presence here, including king salman, and that over the next 48 hours will be watched closely to see if we get indication that this opec agreement will be extended and the cuts deepened back to you. Thank you very much for that, geoff. Still coming up, a big tax bill for amazon. The ecommerce titan braces for a tough judgment from the European Competition commission. Well explain after this break 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. My friend susie cracks and hello sensitive bladder. Ring a bell . Then you have to try always discreet. I didnt think protection this thin could work. But the super absorbent core turns liquid to gel. For incredible protection. Thats surprisingly thin. So its out of sight. And out of mind. Always discreet. For bladder leaks. Also in liners. Now this could be making headlines today. Eu regulators are expected to order amazon to pay hundreds of millions of euros in back taxes to luxembourg. The competition commissioner is expected to make the announcement at a News Conference later this morning at 11 30 cet. A decision on the issue would end a threeyear investigation into whether amazon had an unfair advantage after a 2003 tax resulting. Last month we asked if there was a split between what ceos think is a fair Playing Field or what her perception is. Europe we have a rule book. That goes for me and the ceos of these companies. No matter what we think or feel, these are the rules. It is our job to make sure everyone plays by this rule book you can fly any flag you want. You can be private or publicly owned, big and small in the European Union in the Single Market we play by the same rulebook. Italian Tiremaker Pirelli started trading in milan the ipo values the company at 6. 5 billion euros, slightly less than the price it delisted back in 2015. Pirelli shares opened lower than the issue price. Were currently off by 1. 1 at 6. 43 claudio has been watching this ipo all morning long you talked to the ceo. That was somewhat of an underperforming start, wasnt it it was a bit of a tepid reception for the stock on the Italian Stock Exchange as you said, the company is once again listed after having delisted in 2015. Remember this company has been on the stock market since 1922 before that delisting. What happened then was that 65 of the capital of the company was bought by a chinese group. Today they are reducing their stake, putting part of that on the market 40 of the total Share Capital is going on the market here today. The value of that was 2. 3 billion. The stock price, as you said, 6. 5 at the start, a weak start what they are actually listing today is a Different Group than the one that was delisted. Part of the program was to actually spin off the industrial tires and just keep the consumer business which is a higher margin business, thats the part that was listed today. I did speak with the ceo of the group and has been since 1992. This is what he had to say my target, we showed our partners objectives, and we did it as far as the investor, chemchina, when they bought the 65 stake in 2015, the plan was always to come back to market. What is the relationship what do you expect the relationship will be in the future with pirelli after this listing and the reduction in stake . They remain the largest Financial Investor in pirelli. For them, its an important proof of their will to stay in the equity market, respecting best market practices. Its also in the bylaws. I think we fix the industrial business and support the growth of pirelli consumer. What are the most important factors you need to consider in the business of Tire Production . What are the biggest risks risks is execution. We have technologies, people, factories, we have to continue to compete with the same passion and we will continue to deliver. As far as your position is concerned, you have guaranteed your presence through 2020 as ceo. Who will follow . How do you expect perilpirelli managed after you leave . Someone in the team will drive the company. Im very confident because theyve been living with me a great adventure that will continue all right thank you very much for your coverage of that ipo this morning. Appreciate it. A quick look at the u. S. Futures. Looking somewhat mixed the dow up by 24 points. Seen extending its fiveday winning streak stocks closing at a record high in yesterdays trading session thats it for todays show im carolin roth Worldwide Exchange is up next. For your heart. Your joints. Or your digestion. So why wouldnt 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. Break out your rally caps. The dow, nasdaq and s p 500 are all sitting at record highs. We have your early Market Action straight ahead do you have a rally cap . I dont. Wipe it out, thats what President Trump says we should do with puerto ricos debt. And uber agreeing to big Board Changes as it looks in a mega locks in a Mega Investment from softbank its wednesday, october 4, 2017 Worldwide Exchange begins right now. I think you have